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tv   Nightly Business Report  PBS  April 3, 2014 1:00am-1:31am PDT

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report" with tyler mathisen and spring ahead. the private sector added more than 190,000 jobs last month. will that translate into a strong employment report on friday? frustration on the hill. senators push general motors ceo for answers only to come up short. what will it take to get more answers? cost of overtrading. a new study adds to the controversy over the value of mammograms. is more testing always better and at what price? all that and more tonight on "nightly business report" for wednesday, april 2nd. good evening, everyone. it was another day of records on wall street. that's thanks to encouraging reports about jobs and u.s. manufacturing. payroll firm adp says almost
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200,000 private sector jobs were added to the economy in march. that's much better than the numbers we've seen over the past few months, and it comes just two days ahead of the labor department's critical employment report. also factory orders for february showing the biggest gain in seven months. that put investors in the buying mood. the dow rose 40 points ending just three points short of an all-time closing high. the nasdaq was up 8 and the s&p added 5 points. and it did close at a record close for the second day in a row. what does all this positive economic news mean for that friday jobs report? hampton pearson takes a look. >> new data on hiring in the private sector shows there could be a springtime recovery from what has been a brutal winter. while the addition of less than 200,000 private sector jobs in march was below forecast, there was a big upward revision in february data. nearly 40,000 more jobs added than previously reported. that's according to payroll
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processor adp. leading the way, construction hiring. up 20,000. the best move in the last three months. financial firms added 5,000 more employees, the biggest move in five months. >> one of the good things about the job gain in march was thought was broad-based. it was broad-based by size of firm, small, medium and large firms all added jobs in aggregate. and also it was broad-based by industry. >> reporter: other parts of the economy are showing signs of life. auto sales rose 6% last month, topping 1.5 million vehicles, the biggest monthly gain since last november. and a closer watch manufacturing barometer grew at a faster pace, rebounding from shutdowns caused by severe winter weather. it all points to stronger hiring when we get the government jobs report on friday. >> given the growth in the labor force, which is slowing for demographic reasons including
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aging of the population, 200,000 jobs a month will bring the unemployment rate down significantly. >> the springtime constructions season begins in earnest if friday's job reports meets this thoroughbred hold it would be the biggest monthly gain in jobs since last november. for "nightly business report," i'm hampton pearson in washington. two influential members of the fed with slightly different timetables on when the central bank may decide to raise a key interest rate. dennis lockhart, president of the atlanta federal reserve bank, predicted today if the economy grows at a rate of around 3% over the next year, the federal funds rate could see its first hike in years during the second half of 2015. meantime, in an interview today james bullard, the president of the st. louis fed, said that hike could come as early as the first yacquarter of next year. >> a major ruling from the supreme court today that goes right to the role of money in
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american politics. in a 5-4 ruling, the court struck down a key part of the federal campaign finance law saying that it's okay for individual wealthy donors to give as much as $6 million to political candidates and parties. john harwood joins us now from washington with more on today's ruling. so john, this sounds a lot like this decision is a replay of citizens united. what do you think? >> reporter: it's a little bit different in the citizens united allowed people to spend unlimited sums outside of political parties and campaigns. this affects the aggregate limit that people can give to donations, and it could actually end up strengthening political parties. >> does this affect businesses and their pacs or their interest groups that are donating? >> reporter: it's not about businesses per se. it's about individuals. and what it says is, right now under existing law we believe that individuals could donate no more than $123,000 per election
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cycle in chunks of $2600 per candidate. this ruling says no limit you can girlfriend as many candidates you want at 2600 a pop and you can give unlimited sums to parties themselves. >> and speaking of those political parties, what does it do to strengthening the role of political parties? >> reporter: one thing, susie, that political parties have been concerned about is at citizens united the growth of those superpacs moved a lot of money away from campaigns to independent sources which could help a candidate but hurt if they were out of step with the candidate's message. if this makes it easier for some of that money to go into parties, it may strengthen them and strengthen candidates and allow them to have a more coordinated mainstream message to voters. >> john harwood, thank you very much. john in washington tonight. day two of mary barra's testimony to lawmakers on capitol hill. tuesday it was the house, today a senate panel grilling the general motors chief executive on how the automaker bungled a recall of 2.5 million faulty
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cars that have been linked to at least 13 crash-related deaths. but it wasn't easy today. eamon javers was there, has the story for us. >> why not just come clean and say, we're going to do justice here? >> that is incredibly frustrating to me. oh, you can't even talk to that. you don't know anything about anything. >> reporter: it was another tough day on capitol hill for g.m. ceo mary barra who continued to frustrate lawmakers looking for new information about g.m.'s ignition switch failures. but barra explained she couldn't provide answers until g.m. finishes its own investigation of the problem which has spawned widespread litigation. >> what litigation began after that deposition? >> that is part of the investigation. >> so you don't know whether or not anything happened after that investigation. >> i don't have the complete facts to share with you today. >> reporter: the defects in the ignition systems on chevy cobalts and other models caused cars to turn off while drivers
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were on the road. that's led to at least 13 deaths and a recall of 2.6 million cars. again today, barra apologized for g. mchl's handling the issue. >> today's g.m. will do the right thing. this begins with my sincere apologies to everyone who's been affected by this recall, especially to the families and friends of those who lost lives or were injured. i'm deeply sorry, and the men and women of general motors are deeply sorry. >> reporter: senators also wanted to know if the vehicles still on the road are safe. >> if i were to have a recalled chevrolet cobalt, would you recommend that i drive home in it tonight? >> if you take all the keys off the ring except the ignition key or just use the ignition key, our engineering team has done extensive analysis to say that it's safe to drive. >> i suspect that cobalt drivers
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would not take comfort in that advice, knowing what has come up. >> and senators were also flummoxed because it appears that no one at g.m. has been fired as a result of the problem. some senators wondering whether those problems were swept under the rug because g.m. was teetering on the veg of bankrupt verge of bankruptcy at the time it happened. senators on the committee saying they want to hold followup hearings where they bring in lower level employees who were closer to decision making at the time. for "nightly business report" i'm eamon vjavers in washington amidst the uproar about g.m.'s ignition switch recall they hired what they hope will be a voice of calm and reason. g.m. has tapped attorney ken feinberg, the government's pay czar during the financial crisis and hired to oversee payments of families of victims killed or injured in accidents linked to those faulty switches. mary thompson looks at the man who's become the go to guy in times of crisis.
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>> i have no comments. i've read the newspapers. >> reporter: being in the center of a media storm is familiar territory for kenneth feinberg. >> if you're a company caught in the deepening of a quick stand of a media scandal, he can keep you from sinking deeper. >> reporter: the latest to call on his services, general motors. feinberg's role, be a mediator between the automaker and families of victims whose deaths and accidents were linked to a faulty ignition switch. >> i am sure this committee knows mr. feinberg is highly qualified and very experienced in handling matters such as this. >> reporter: general motors ceo mary barra making the announcement when testifying b congress about the flawed switches. they're blamed for 13 deaths and 31 accidents. it's not an unfamiliar role for feinberg. he made a name for himself 30 years ago, quickly settling a long-running dispute between makers of the defolian agent
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orange and a quarter of a million vietnam veterans. he's served as the government's pay czar determining compensation paid out to companies. and victims of the aurora, colorado and virginia tech shooters, boston marathon bombings and families of 9/11. during his three years in this role, feinberg's empathetic and practical approach to a seemingly unsolved problem brought him praise. >> he'll have meetings, try to reach out. he does it in a way that's fundamentally therapeutic. he's not someone who uses a mathematical formula. he doesn't attempt complete decision >> reporter: he isn't above reproach as overseer for victims fund for b.p.'s deep water horizon oil spill, the critics krit said he held his company's interests above theirs in a statement feinberg said he'd draw on past experience. experience that's focused on answering the thorny question of
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what a life is worth. for "nightly business report," i'm mary thompson. >> still ahead, nearly 26 million u.s. children and adults have diabetes. and today a promising new drug to fight and to control it. it sent shares of one company up 70%. many of us already use to buy things we use in the kitchen, bathroom, bedroom. now the online retailer is taking direct aim at your living room, unveiling a new device that will stream movies, shows, music and more right to your tv set. jon fortt has more on firetv. >> introducing amazon firetv.
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>> reporter: tech geeks have expected this for awhile, and it'skd some cost half as much. amazon's firetv costs more because it can do more the company says. that's the gamble. >> i think it's too high a price. i think it doesn't do what the gamers would want. the serious gamers will go towards x-box or something like that. i don't think it makes enough sense to solve enough consumer problems so this is off the
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shelf obvious christmas gift later this year >> reporter: this particular move to bring streaming video to the living room comes at an interesting time. apple ceo tim cook said a few weeks ago, apple tv became a $1 billion business last year for the first time. and tech watchers now expect the company to make an even bigger tv play later this year. amazon itself just hiked the price of its prime subscription service that includes streaming video to $99 from 79. even as it's spending millions of dollars to get exclusive streaming rights to shows like "downton abby" and "24" the crunch time in october and november when apple's latest tv offering will make its debut and google will have its own refreshed android software in media store. we'll see then whether amazon's firetv has what it takes to win the holidays. for "nightly business report," i'm jon fortt in new york. >> google is set to split its stock in an unusual way. these where we begin tonight's market focus. the search giant will award
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shareholders with two additional shares for the company for every one they own. but there's a twist. investors who own class a shares will receive two shares of the newly created class c shares. these new c shares have no voting rights, meaning the company's founders will maintain control. google shares rose a fraction to $1135. microsoft made some big announcements at its so-called build conference today. the company unveiled a voice assistant called cortana a rival to apple's siri. it will give away its apples operating system to members of phones and tablets. shares fell to 41.35. >> t-mobile won't be selling blackberries anymore. blackberry ended its licensing deal with t mobile saying the companies no longer have complementary strategies after recent scuffle between the two companies when t-mobile e-mailed blackberry customers with a promotion to switch to a kpeesing device. shares of blackberry were up 1%
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to 8.21. shares of t-mobile up a fraction to 33.49. glaxosmithkline halted a lung cancer vaccine. it didn't increase survival rates. it continues the trial despite the initial trail kwur and tried to find a subgroup of patients that might benefit from the treatment but that wasn't successful. shares down a fraction to $53 a share. >> but it was a spectacular day for shareholders of another drugmaker, mankind. shares surged an astounding 74% after a fda panel recommended the approval of its ex personaliti experimental diabetes drug which you inhale to get insulin. >> reporter: nearly 26 million children and adults in the united states have diabetes, most of whom inject insulin on a daily basis to regulate the
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disease. eli lily and novonortis ring up $5 billion annually. soon enough there may be an alternative to needles. afreza, an inhalable diabetes treatment developed by california-based mankind got backing from a fda panel for type one and type two diabetes today. the inhaler, which can fit in your palm, is meant to be a more convenient, less painful alternative to injections. >> we heard over and over again how difficult the times diabetics have controlling their disease. and why we need new tools and better tools. >> reporter: despite today's win, afreza still has a way to go before becoming available to patients. the treatment still needs fda approval and a partner to commercially launch the drug. perhaps most importantly, it still needs to win over patients and doctors. >> in the treatment of diabetes and obesity, what we see is a market that is built on years of foundation. because of that it can be very
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difficult to move. there's a lot of inertia in the practices. >> reporter: afreza isn't the first to develop an inhalable version of insulin. pfizer released its own version no in 2006. critics say the inhaler was bulky there were concerns about dosing requirements and marketing wasn't enough. >> having a different tool in their tool box to help them maximize their treatment will be an advantage. >> reporter: potentially a new solution to the nearly 2 million americans diagnosed with diabetes every year. for "nightly business report," i'm sheila dharmarajan. shares of the company up 11% after the centers for medicare and medicaid services updated
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reimbursements rates for its popular breast cancer test. while the announced cut was substantial, it was much small than the market expected sending shares to a multiyear high. another study, another controversy about mammograms. researcher's at boston's brigham and women's hospital say the benefits of having a mammogram are substantial, especially for those at high risk for breast cancer. but the potential risk for many middle-aged women to get a false pof reading for cancer is high, the study says that often results in unnecessary and costly surgery, chemotherapy or radiation treatment. >> what is the value of mammograms and are we overtesting when it comes to screening for cancer? with us now dr. nancy snyderman, chief medical editor of nbc news and dr. gilbert welch director for medicine at -- in common language, what did the study say and what should women do? >> the study looked at the last
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15 years of medical research looking at mammography. the researchers concluded that we overstate the benefits and understate the potential harm of screening. five years ago a u.s. task force suggested that routine mammography in women ages 40 to 50, women with no risk factors was poorly spent money, unwarranted and leads to all kinds of problems because of overscreening and we should start screening at 50. this big chunk of data really sort of underscored that again and drove home the point that every woman should look at her individual risk factors and then sit down and have a very smart conversation with her physician. >> what do you think of what nancy's just said? is there any harm for having the test anyway just to be sure? >> oh, absolutely. there are harms associated with mammography. i think this is just one study that's part of a growing recognition that we've overstated the benefits of screening mammography and
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understated its harms. i think it's very important to start, though, by saying this is about screening mammography, not diagnostic mammography. none of us debate about the value of having a mammogram if a woman becomes aware of a new breast lump. that's a very important test we all agree about that. the problem is with screening mammography. and whenever we try to get ahead of problems, we end up causing some problems. the two problems with screening mammograms are first false alarms, which are devastately common. about half of women in the united states will experience a false alarm somewhere during a course of annual mammography for ten years. then the other problem less familiar but the problem of overdiagnosis, that is finding a cancer that will ultimately never matter to the patient except we as doctors don't know which once they are so we end up treating everyone. so that means some women are being treated unnecessarily for breast cancer. so it's a very vexing problem.
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>> nancy, react to what dr. welch just said. do you agree, disagree, agree in part? >> we're in total harmony. the interesting thing is, not all breast cancers are alike. if you take 100, 100-year-old women and check them at the time of their death, almost all of them are going to have some kind of breast cancer. because age is still the number one determining factor. some breast cancers may come and go away. others are more aggressive. so while we talk about higher resolution mammography and lower dose mammography, maybe the best mouse trap we have right now. but we're talking about detecting cancers and noteally going to the source of the problem and preventing them. we really haven't had the hard conversation in this country about how to spend our money, how to screen wisely. and i know it's like people don't like the message and they sometimes blame the mess enger, but how we access our health care system and how we spend our money wisely, screen prudently,
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this is all part of really good medicine. doing the same scatter shot stuff to everybody is just not very smart. >> nancy and gilbert, i want to ask both of you real quickly, most of us think that it's a good thing, a healthy thing to do to be tested for everything. but it seems like both of you are saying that there's some daneses dangers to be overtesting. >> it's dumb to be overtesting. we're all walking around with some little shadow on a lung scan or brain scan. don't go looking for trouble. but if you find yourself with something, then you go and have diagnostic tests. going to have a screening test from head to toe, i just think it's really stupid. >> gilbert, you get the last word. >> well, i just want to be clear that it's very hard for us to make well people any better. but it isn't that hard for us to make them a little worse. >> i agree. >> you have to be a little careful about entering the health care system when you're well. when you're sick, please come
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see us. we can do a lot for you. >> all right, folks, thank you very much. vigorous agreement. we thank you for helping us with this one tonight. nancy snyderman, chief medical editor with nbc news, gilbert belch profess director of medic at dartmouth institute. high frequency trading, what is it, how does it work, and does ultra-fast trading impact you, the long-term investor? that's next. high-speed trading -- this comes amid a storm of controversy surrounding the industry as we told you yesterday, michael lewis's new book "flash boys" has reignited
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a debate about the practice and recently fbi said it will investigate whether these firms engage in insider trading. >> so what exactly is high frequency trading? and how would some firms benefit from the advantage of knowing about trades millie seconds before the rest. >> opponents of high frequency trading say the market is set up to give an unfair advantage to some but not all participants. in essence, here's what they're saying. imagine a race with three contestants. the first is the scooter, the second your standard or compact or mid-sized car, the other a state-of-the-art f state-of-the-art ferrari. no contest the ferrari's going to win. here's how it happens in the stock market. an investor wants to buy a share of stock say worth $10. the light turns green and the race begins. the ferrari is so much faster
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that it gets there first and gets that share of stock for $10. the slower cars will end up paying a higher price for their stock. but here's the twist. the ferrari that won the stock can turn around and sell that stock to the slower vespa and compact for a profit. the ferrari owner didn't really want to only stock in the first place. he just wanted to get there first and jack up the price for you. now, it may just be fractions of a penny but those add up over time. and the debate still raging about what this ultimately means for the individual investor. for "nightly business report," i'm dominic chu. >> a debate that is getting hotter and hotter. finally tonight, wouldn't nation's best known and best-loved restaurants, tavern on the green, is reopening after four years. if you've never been to the eatery located inside new york city's central park, you may know pretty movies like "ghost busters" or "mr. popper's
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penguins." the tavern was closed in 2010. after a multimillion dollar renovation it will reopen for dinner in three weeks and start serving its popular brunch on mother's day. make your reservations now. >> i hope my husband and kids are listening to this. i love that restaurant. that's "nightly business report" for tonight. i'm susie gharib. thanks for joining us. >> and i'm tyler mathisen. have a great evening, everybody. thanks for watching. we'll see you tomorrow.
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sethi: coming up on "quest," a new kind of hybrid hits the streets... cotter: it is electric -- solar electric -- and it is incredibly fun. sethi: then, can bugs help to feed our growing population? man: insects are one of the most efficient converters of raw materials on the planet. sethi: and a fashion trend is cultivated in a corn field. man #2: if we use land to grow more fibers, we will have less land to grow food. announcer: major funding for "quest" is provided by the national science foundation. sethi: this invention lab


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