>> this is n.b.r. >> tom: good evening, i'm tom hudson. from europe to china, central banks around the globe take action to boost their sagging economies. should more be done in the u.s.? >> susie: i'm susie gharib. getting new medicines to market faster. speeding up the government's drug approval process. why investors and patients are on board. >> tom: and "made in america" tonight, a craft beer company brewing up a national expansion. >> susie: that and more tonight on "n.b.r."! >> susie: the global economy was the hot topic in markets around the world today. central banks in europe, the u.k., and china announced moves to boost growth. the european central bank lowered interest rates to an all-time low. china cut several key interest rates for the second time in a

month. and the bank of england held its rates steady, but said it will pump billions of dollars into its economy through a new round of bond buying. here in the u.s., some hopeful signs for the weak job market. private employers added 176,000 new workers to their payrolls in june, stronger than the previous month. and the labor department said the number of people filing for unemployment benefits dropped by 14,000 in the past week. both reports bode well for tomorrow's monthly employment report. and many economists raised their estimates on the number of people getting new jobs in june. despite these positive developments, stock markets were mixed. european markets closed lower, and here on wall street, investors held off from making any big commitments. the dow fell 47 points, the nasdaq barely budged, and the s&p lost six points.

"nightly business report" is brought to you by: captioning sponsored by wpbt >> tom: more now on our top story: alarm bells sounding around the world about the global economy. suzanne pratt takes a closer look at whether the u.s. can keep cool, as europe's troubles heat up. >> reporter: central bankers from europe, england, and china moved to give their respective economies a boost on the same day, within the same hour. and, don't forget just a few weeks ago, ben bernanke and company moved to keep long-term rates low longer. so, investors are now wondering whether all of the action suggests world leaders finally have a grand plan to rescue the global economy or, could it be the slowdown is worse than we originally thought? economists say it's probably a

bit of both. >> there is a big problem. it's why we see central bankers around the world putting stimulus in place. i think there's a recognition certainly in europe that action needs to be taken. so, that's a good thing. >> reporter: after the european central bank trimmed rates today, e.c.b. president mario draghi raised the economic red flag, noting the downturn was spreading. he said "we can genuinely say that this measure is addressed to the whole of the euro area and not only specific countries." against a back drop of weakening global economies is it even possible for the u.s. to avoid a recession? some experts say absolutely, as trade with europe accounts for only a small part of our nation's g.d.p. >> we've been saying all along that europe's recession will be a drag on u.s. economic growth and the u.s. seems to be growing around 2%, that's below trend.

but, to argue that a recession in europe or a slowdown in china is a prescription for a recession in the u.s. is to me just absolutely wrong. >> reporter: others don't disagree with that assessment, but put the chances of a u.s. recession much higher. >> i'd say the risk of recession is probably 25%, which is relatively high. the good news is that policymakers are doing a lot to try and combat that. >> reporter: for many economists, however, the bigger threat for america's economy is not europe, but washington. they warn failure to address the looming fiscal cliff could result in a recession next year, no matter what happens across the pond. suzanne pratt, "n.b.r.," new york. >> let's get more on the global economy with joel prakken chairman of macroeconomic add viertsz and amaya global market strategist. joel, let me begin with you.

you heard our report. so these actions from central bank get people to wonder, maybe things are worse than we thought. how bad are things in the global economy? >> today's actions i think make clear that policy makers around the globe realize that problems coming out of europe but not exclusively out of europe are serious enough to warrant these kind of coordinated actions. i'm not sure there's any new information about the severity of the threat in today's actions but there's certainly the reaffirmation that the threat is there. >> u andred, what do you think,o you agree with that. >> it's of to talk about what this actually means to the market. the fact that utb cutting rates sends the market lower reminds us everything is really about what's happening in europe. we've got to remember the issue in europe is not that interest rates were too high, they're near zero as it is. the structure of issues are really more about bank integration, fiscal integration and political integration we think that's going to take a

longer time to actually happen. >> actually to that point, a lot of the reaction today by analysts and economists was that we know we already have low interest rates and it's not doing much for growth and they were expecting for something more creative or more imaginative to become policy makers. what are your thoughts on that andres? >> well, i think it's okay to save some bullets in case others things develop in europe. it was prudent to just lower interest rates for now, and i think the market was expecting for more because that's what we've gotten in the past. having said that i don't think it was the wrong move to lower interest rates this time around. >> joel, do you think this will spur the fed to shift its thinking? >> not necessarily. the fed has made it clear, chairman bernanke has made it clear if they under perform the fed's current forecast that the fed the fed is prepared for

additional moves and feels it has ammunition to shoot at the problem of the u.s. economy, we'll have to see how they adjust down their forecast in light of the data of late before we know for sure whether there is additional stimulus supplied by the fed. it is of though to note that in the united states as in europe, fiscal policy is pretty much off the table in terms of expansion. so it's up to the monetary authorities to do what they can do to help. >> and then the other question for everyone in this country, whether you're a business owner or you work for a company is that can the u.s. somehow decouple itself from all of these problems around the rest of the world or are we all in the same kind of boat. joel, what do you think? i with would like your reaction. >> i heard a little earlier that one of your guests saying that a recession in europe itself can't pull the u.s. down. i think that's true what you're thinking just about the trade aspect of it. but in a financial crises, financial markets move together

in concert and the financial can spread to the u.s. great dramatically. our sense is there's a lehman type event in europe, it can probably rob all the growth from the u.s. that we otherwise see over the next two or three quarters probably can cause a mild recession here or something untoward financially happens in europe. >> i agree with one aspect of that. i think the u.s. economy has been resilient is not immune to what's happening in europe and i think you hit it right on top which is basically the banking mechanism is really the way that it could transfer what's happening in europe to here in the united states. one thing i will say is there was some progress done there last week at the european summit in brussels about a discussion of having regulation from the european perspective instead of each country. that's some steps that are going in the right direction. >> susie: let me just jump in. we have less than 340 seconds. i want to get your feedback both of you on tomorrow's big of jobs report. do you think it's going to show a strong growth in hiring.

>> i think it's going to be better than the last few months probably a little bit more than 100,000 jobs created but that's a tepid number and we're in a deep hole and it will take more than that climbing towards the top. >> susie: andres last worth, do you agree with that. >> we're looking at 100,000 tomorrow i think it takes up to 140 to see the market react positively. >> susie: thank you so much. joel prakken and andres garcia amaya. thank you again. test test >> tom: the nation's retailers

experienced a june swoon, as sales slowed last month. stores targeting middle income shoppers fared the worst, while both discount and luxury stores were among the strongest. ruben ramirez reports. >> reporter: weak consumer confidence and lingering concerns about the jobs picture kept a lot of consumers from opening their pocketbooks in june. costco, macy's, kohl's, and target all posted disappointing sales. >> there's still a lot of uncertainty for that consumer base. unemployment is not where people want it to be. consumer confidence is not where 00010001 test test ces have comen over the last week or two, they haven't come off to the point where people are really comfortable with just opening their wallets and spending frivolously on apparel. >> reporter: analysts expected the top retail chains to report a modest 2.4% gain in june, less than a third of the growth rate in june of last year. despite many consumers tightening their pocketbooks, two sectors fared well in june, the high end and the low-end.

upscale chains, saks and nordstrom reported sales that were better than expected. >> saks and nordstrom keep doing well at the high end and the trend in spending there is holding up pretty well, but at the same time they do have this outlet strategy that is getting in that middle to lower income consumer that will come in and shop and it's really doing well for them. >> reporter: discounters t.j. maxx and ross stores reported some of the largest sales gains. both also raised their second- quarter profit forecasts. even as consumers continue to hunt for bargains at so called off-price retailers, feldman says it will be late august when back to school sales peak, that we'll see just how much cash shoppers are willing to spend. ruben ramirez, "n.b.r.," new york.

>> susie: a new twist in the countrywide financial saga, a report issued today by the house of representatives says countrywide, once the nation's largest lender, bought influence in congress by issuing sweetheart loans to lawmakers and other government employees. the so-called "v.i.p. loan program" was known by insiders as "friends of angelo", named after the company's former c.e.o. angelo mozilo. but mozilo denied using the loans to curry favor. countrywide's risky mortgage products, and loose loan approval standards are blamed for a wave of foreclosures that triggered the housing crisis. >> tom: more central bank help from europe and china didn't do much for u.s. stocks, with the major indices finishing mixed. the s&p 500 hit its lowest level of the day less than an hour

after the opening bell. the index spent the entire session in the red ahead of tomorrow's june employment report. volume was light. 681 million on the big board. 1.4 billion on the nasdaq. financials led the sector losers, falling 1.5%. the energy sector was down 1.4%. j.p. morgan's troubles continue. a federal judge ordered the bank to explain why it hasn't released internal emails to the federal energy regulatory commission. the agency wants the emails in its investigation into allegations of manipulation of the electricity market. shares of j.p. morgan fell 4.2%. this probe is looking into the bank's bidding techniques for electric power. the bank reports second quarter earnings a week from tomorrow, with the big question being how much money did its corporate bond derivatives trading strategy lose? the bank first estimated the loss at $2 billion, but warned it could grow. other big bank stocks fell with global economic growth worries front and center.

morgan stanley dropped 4%. bank of america and citigroup shed 3%. today's lackluster retail sales figures from several chains didn't help the market tone. but one retailer selling big ticket items saw shares pop. auto retailer auto nation jumped 3% to its highest price since last fall. new vehicle sales volumes jumped 38% led by a big increase in toyota sales. the line between t.v. and the internet continues blurring. netflix said its customers streamed a record, over one one analyst said that would make netflix the most-watched t.v. channel, surpassing any traditional broadcast or cable outlet. shares jumped 13.4%, closing over $80 for the first time since early may. c.e.o. reid hastings predicted his company will stream even more videos when it releases original content, instead of movies and t.v. shows from those more traditional t.v. and cable channels.

despite today's bounce, netflix stock is down 70% over the past year thanks to more competition and strategy missteps. traditional cable provider stocks were weaker. time warner cable fell 2.4%. cablevision was off 1.8%. comcast dropped 1.8%. comcast was at an all-time high earlier this week. the hot weather across much of the country continues to push up grain prices. corn futures rallied to a contract high, settling at $7.68 per bushel, up about 40% in the past three weeks. soybeans sit at their highest price since 2008, over $15 per bushel. four of the five most actively traded exchange traded funds ended lower. only the fund tracking the nasdaq 100 index finished with a small gain. and that's tonight's "market focus."

>> susie: president obama is soon expected to sign into law a major overhaul of the rules governing drug development. the goal is to speed up approval for drugs targeting life- threatening diseases when no other treatment is available. as darren gersh reports, this is welcome relief to investors and patients. >> reporter: the f.d.a.'s accelerated approval process was designed for companies like alnylam pharmaceuticals. researchers here are working on a treatment for a rare genetic disorder called transthyretin amyloidosis. the deadly disease causes toxic proteins to build up in the body. alnylam pharmaceuticals believes it has developed a promising new treatment, just the kind of innovation that would benefit from accelerated f.d.a. approval. >> i think we can see in this modernization of accelerated approval important new medicine for these type of genetic diseases getting to patients quite a bit faster, years faster than what existed before. >> reporter: it can take a 0001 >>

least medical professionals can purchase for under 20 buck. >> well you know, this is the same product that's been used in the professional market for the last ten years. we've done extensive market research with consumers that's uncovered what we believe is a significant demand for this product. unfortunately today, tom, there's still about 1.2 million people infected with h.i.v. and

20% are unaware of there infection. what we're hoping this product to do is encourage more people to test who today aren't testing in a professional setting and those people who are test in a doctor's office or public health clinic they want to stay in tune with their h.i.v. status. this gives them the opportunity to test more frequently in the privacy of their home. >> tom: the share price is very strong up to a new 52 week high. when do you expect to report a profit. company's still been losing money. >> well obviously there's a lot of investment still to go with this product. one of the biggest costs in introducing any kind of consumer product is spending to communicate with the consumer. we'll see how that plays out over the remainder of this year and into 2013. we haven't given any projections when we'll return back to profitability but we expect this product to be a strong contributor to growth and profit. >> tom: that was the ceo of

technologies. >> susie: u.s. beer sales fell slightly last year, but a small part of the industry continues growing: craft brewing. these are small, often regional brewers. as a group, volumes were up 13% last year. in tonight's "made in america", mike hegedus visits one on the verge of going national. >> reporter: it is the face of success illuminated by a welders torch. a german engineered expansion assembled with bavarian precision; a $10 million project to increase production of; roll out the barrels baby, it's beer.

this is the lagunitas brewing company operation in petaluma, california, on the edge of bucolic sonoma county pasture land. lagunitas, with 150 employees, is in the sweet spot of the u.s. beer industry. sales by small, regional craft brewers making up for sagging national brand sales. >> it's about people who are alternative thinkers. who just are looking for their own experiences in life they don't want to be fed from a t.v. commercial what to put in their bodies. beer is one of those ancient personal relationships people will have. this over here, this is malt that comes from alberta, canada, that's foundation of beer, if this were wine these are grapes that we squeeze. >> reporter: tony magee is the c.e.o. of lagunitas. formerly in commercial printing, he started the brand in 1994; made a little home brew and was hooked. today, so are a lot of other people. lagunitas, the name of the

little nearby town where magee lived, has a cult personality that includes brews like harry eye ball, i.p.a., cappuccino stout, and brown shugga. it does just short of $40 million in sales; will produce close to 240,000 barrels of beer in 2012, and be available in all 50 states by the end of the summer. a summer that will see bands playing at its brewery-based performance venue. >> what you find is that every craft brewery has its own unique culture and its almost like a giant family. >> reporter: jeremy marshall is the head brewer, a job that will get a lot bigger soon. by the fall of 2013, this petaluma expansion will be matched by a bigger project, a second lagunitas brewery in chicago, employing about 100. it will jump the company from being the 17th largest craft brewer in the u.s. to number 2, right behind boston brewing and sam adams. >> fourteen times a week a semi-

truck leaves loaded with beer headed for either denver, chicago, new york, maine. so now instead of that beer leaving in trucks, it'll leave from chicago. so the difference in freight, times 14 trucks, times 52 weeks covers the debt service on the entire brewery twice over. this is new territory right now; the idea that, you know, that you can grow and keep your soul, if anybody can pull it off we can. >> reporter: the lagunitas brewing company, a little "sumpin" wild for everybody. >> in the evening, i know that while i'm going to bed, there are hundreds and hundreds of these all around the country, people are having communion with our business, right then and there, taking it into their body. what other product besides maybe a cigarette or a communion wafers besides a beer, sight unseen will you just take right in you know, so, to that. >> reporter: indeed. mike hegedus, "n.b.r.," petaluma, california.

>> tom: tomorrow on "n.b.r." in a word: jobs. tomorrow's june report on employment is critical for everyone from washington to wall street to main street. we'll ask economist mark zandi, what employment says about the u.s. economy. then tomorrow's "market monitor" guest thinks it's time to buy in europe. we'll talk to janney montgomery scotts, mark luschini. >> susie: that's nightly business report for thursday july 5. have a great evening everyone, you too tom. >> tom: good night susie and everyone. we'll see you online at: www.nbr.com and back here tomorrow night. "nightly business report" is brought to you by: captioning sponsored by wpbt

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