20 Episode results for "Jeffrey Cleveland"
Hawaii is no paradise for teachers
"Platform enables you to build operate optimize at scale as the open source leader Aqua gives customers around the world the freedom to build tomorrow on their terms learn more aqua dot com this marketplace podcast is brought to you by aqua the open source digital experience company brands often struggle to find a comprehensive solution to power their DRUBEL websites and applications aqueous morning manufacturing the industrial side has has weakened due to in part tighter interest rates from the Fed but also the trade war on the other hand the consumer into its marketplace's Justin Ho thank you very much the stock market is open for the day and the Dow Jones Industrial Average is down forty five points durables doesn't look so good durables can be a monthly you know noisy series so that is something to keep in mind however we do I think projects is becoming a mass market automaker and a lot of that means focusing more on it's cheaper models like the model three sedan in fact CEO Elon Musk on a conference call still holding up we saw initial claims this morning did initial jobless claims they're down a little bit fewer people signing up for the first time for unemployment benefits right and we watched that because we programs with paychecks they work with you the way you want to work learn more at paychecks dot com slash marketplace tesla made money last quarter ahead line in itself I'm David Brancaccio in New York the Electric Car Company Tesla has delighted it's investors with news late yesterday it did not lose money after all the summer to fall quarter while Tesla's performance can be volatile it's the first prophet in a year the stock is up about seventeen percent right now marketplace's Justin hope goal to the New York Bureau today's normally in Los Angeles good to see you great to see you David we did get orders for expensive long lasting goods in America percent the European Central Bank sat tight today leaving interest rates alone to give more time for stimulus to prod along the faltering euro-zone economy in the US it's about two tenths percent the S. and P. Five hundred up ten percent Nasdaq is up six tenths percent the benchmark ten year interest rate at the moment down at one point seven four or for sentimental reasons than anything else they're really of minor importance to future still all that depends on whether consumer demand keeps up analysts was following this today yeah this is the first quarter since two thousand eighteen that tesla earnings releases showed profits instead of losses Teza lost over a billion in the layoffs are still low so that's good news for the US consumer at the chief economist at paid in Regal in Los Angeles. Jeffrey Cleveland thank you thank you these suggested demand for new vehicles in the US and China is showing signs of weakness and also here in the US the federal tax credit for electric vehicles will go away next year and that could hurt the yesterday said the Model S. an ex cars which run from eighty to a hundred grand are pretty niche and not the company's focus right now we're continuing to make them ready to go it wants to build another one in Europe and Tesla's also working on a crossover SUV and the semi truck and has plans for an electric pickup to one of its biggest caution light when it comes to durable goods orders in September which fell half a percent more than expected to explain. That's welcome Jeffrey Cleveland the chief economist at paid in in Re troll keeping expenses down yeah being a cost the company's been working on some grand if not grandiose project right a big factory in China which Tesla says now first half the year the last quarter of the company has a lot of its success had to do with record vehicle deliveries that's basically vehicles that are sold and then delivered to customers also cost would have a dichotomy a two-speed economy as we've talked about before on the one hand business investment is we can has been weak and that's what we see I think reflected in the data this is it as a proxy for layoffs and we don't WanNa see layoffs creeping up if layoffs creep up that's usually a sign that the economy is about to take a turn for the worse we don't see that right now purity's and Exchange Commission in Washington has started an investigation into India's second largest company Infosys is the software giant that does a lot of work outsource from the West a whistleblower complaint alleges unethical accounting practices the BBC's Jug Deep Cheema has more from Mumbai this comes after an anonymous group called implies complained to the company's board and the US Securities and Exchange Commission alleging accounting and management misconduct to boost short-term revenues and profits doc it regulator the Securities and Exchange board of India is also looking into the matter Infosys stock is down fifteen percent this week this marketplace podcast is supported the complaint centered around the firm CEO Salaries Parak- allegedly rushing through launch deals before they receive the required authorizations India's earn more I pay checks paychecks makes it simple for businesses of all sizes to pay and manage their employees they make payroll easy and automatic and they handled benefits programs paychecks guide businesses through their human resources challenges by keeping them up to date with ever changing laws and regulations online and mobile over the phone in person or any combination of the above with paychecks they work with you the way you WanNa work learn more at paychecks dot com slash marketplace teachers in Hawaii are the worst paid public educator eight hundred thousand dollars which is tough on teachers pay their contract negotiations in the fall. Hawaii public radio's Ryan Finnerty reports from Honolulu around forty teachers squeezed into a classroom at Honolulu's McKinley high school many were wearing red the color worn by teachers around the country demanding better pay and benefits in America this is when Hawaii's high costs of living are taken to an account taken into account the median or typical price of a single family home in the Honolulu area eight the teachers union the US Department of Housing and Urban Development considers a single person in the Honolulu area earning less than sixty seven thousand dollars to be low income the starting salary for a certified teacher in Hawaii is around forty
More support for small business loans
"America's central bank is putting more juice behind emergency loans to help small businesses. I'm David Brancaccio. I hope if you're listening you're doing okay. Yesterday the Dow went up seven and three quarters percent more than sixteen hundred points today in early trading. The Dow is up seven hundred fourteen points. Two point eight percent. The NASDAQ UP TWO POINT. Three percent at the moment the SNP is up. Two point. Seven percent which remains down that index nearly sixteen percent for the year so far this despite new data this morning about the misery of Americans smaller businesses. Jeffrey Cleveland is chief economist. At payden in Regal in Los Angeles the average small business has less than a month worth of cash on hand to meet needs You know in shutdown. So it's no surprise that the small business optimism index slumped the biggest one month. Drop since one thousand nine hundred eighty six with the data going back to nineteen eighty six but at the same time the Fed and the Treasury are working in concert to help so the Fed announced yesterday afternoon. They're going to lend against loans. That banks make too small businesses as a way to more quickly route capital where it is so dearly needed investors by and large. You're looking for a peak in the global number of cases early hints of. That of course will be if you see improvement in places like Italy and Spain. In my view it's probably a bit premature to conclude that You know we have the all clear. Sign here an understatement. There from economist. Jeffrey Cleveland Payden in Regal. Let's get more on that Federal Reserve announcement that the central bank is finding new ways for it to finance the loans that commercial banks are being told to write to small businesses. This is to help. Keep people on payrolls marketplace's Mariel Sagarra is on the line Marielle. I want to know more. About what the. Fed is doing here a couple of weeks ago. Congress passed this stimulus plan. It authorizes the government to guarantee three hundred fifty billion dollars in loans to small businesses to help them make payroll loans. That can be forgiven. But even though those loans would be guaranteed by the small business administration. You still need banks to actually issue the money and banks especially small community. Ones only have so much cash on hand to lend so now. The Fed is stepping in and it's creating a blending facility to keep things running smoothly lending facility means what the Fed hasn't given a ton of information yet but it might mean buying the loans from banks so they have more room on their balance sheets to make more loans or it could be lending money to the banks directly and we're seeing a crushing demand for these loans. Yeah and it hasn't been easy to get them either. Banks have been quickly overwhelmed by applications The Small Business Administration's loan processing system actually stopped working yesterday for several hours and look small. Businesses like restaurants and bars in stores have been forced to close their basically making no money. Many of them can't pay their workers and the Fed is stepping in here. Because that's the last thing. The economy needs that means more people unemployed which means people will spend even less and it just spirals from their marketplaces Mariel. Zegarra thank you now. You can get more stories like this in our daily newsletter. Help unpack what is happening in the covert economy right now and what it could mean for you subscribe at marketplace dot org slash newsletters The Wellcome Trust a charitable research foundation is pushing corporations far and wide to donate a combined. Eight billion dollars to fight Kovic nineteen by the end of this month. The campaign has called Cova Zero to fund research and Development Vaccines Treatments and testing. Here's marketplace's Kristen Schwab. They're big names tied to this. It's partially funded by the bill and Melinda Gates Foundation and Mastercard and Madonna has already contributed okay so first question. Why eight billion dollars. That's the gap in funding medical research for this pandemic according to the Global Preparedness Monitoring Board. It's an independent. Group assembled by the World Health Organization and the World Bank second question. Why would companies want to donate the welcome groups? Plead to wealthy individuals and corporations is that they should deal with a long term solution to the problem instead of only dealing with the immediate economic fallout. The research group says waiting will cost more lives and more money in the end. What a long term solution looks like. Welcome says it's not just finding a vaccine but managing the global logistics of it that includes dealing with regulatory approval in different regions large scale manufacturing and distribution and actually paying for treatment for people in countries. That can't afford it. I'm Kristen Schwab for marketplace of going to say let's zoom in now to one of so many industries dealing with the pandemic today commercial fishing. Those men and women are trying to find new ways to sell their catch. Brad Rossinot from San Diego's I knew source explains once called the tuna capital of the world. San Diego is home to some one hundred and thirty commercial fisherman who bring in millions of pounds of fish each year the restaurants that by the vast majority of their catch have close to contain the pandemic San Diego's fishermen have never lived through anything quite like this Tim. Jones captain of the Gutsy Lady said he's decided to shut down and wait out the storm. It's GonNa hurt but I'm sure we'll get through. Still Fish. Markets in California are considered essential and are allowed to remain open during the state's. Stay at home order. So the Saturday fish market on San Diego Bay is the fleet's main way to reach customers. I've never I've never seen it like this. No not this. Not This bad David Hayworth. A San Diego Commercial Fisherman. He says the fish market helps some. But while it's relatively easy for a fisherman to offload a few hundred pounds to the public on a Saturday if hard win If you catch thousands of pounds of fish to sell to a consumer the resilience of commercial fishing in the US has been tested before overfishing environmental restrictions foreign competition and other factors devastated this once thriving sector of the economy beginning in the twentieth century today. Less than ten percent of the seafood consumed in the US is domestic. I visited San Diego's opener. Fish market curious whether anyone would show downtown was mostly empty. But along the docks hundreds of people lined up to buy fish though. Police were on hand to ensure that they stood six feet. Apart and volunteers staggered the number of customers coming onto the Pier Hayworth and most of the other vendors sold out within a few hours commercial fishing a slice of San Diego's original economy determined to survive the world's latest disruption in San Diego. I'm Brad Rossinot for marketplace and it was one of those innocuous seeming moves last year that could add up to a big hassle. Now did you ask for your income tax refund to be sent right into your bank account last year or did you set it up to get a paper check. Snail Mail with the government saying many people could get their twelve hundred dollar covert nineteen money in the next two weeks. That's by direct deposit based in most cases on the Info the IRS has from your last tax return but the government reportedly is not starting the paper checks by mail until May NBC News reported. It could take twenty weeks for all of us to get out to people that mean. Some paper checks might not get to people until late August early. September I'm David Brancaccio with the marketplace morning from APM American public media.
A powerful but not omnipotent central bank
"Our Central Bank is powerful but not omnipotent. I'm David. Brancaccio every Thursday. It's the readout on layoffs. As expressed by the number of people signing up for state unemployment benefits. In the last week there is news today that one and a half million more people just filed for benefits. The pandemic total for layoffs looked at this way is now more than forty three million people, Jeffrey Cleveland is the chief economist at Payden in Regal in Los Angeles. We've seen initial. Initial claims fall. They remain alarmingly high, and I also think the figure to watch is continuing claims, which is just over twenty million right now that also probably peaked out a couple of weeks ago, and it's starting to come down, but still too high so I. Think the lesson here is the worst for the Labor. Market was probably in the April period, and we're starting to see improvement, but it's slow improvement. Economist Jeffrey Cleveland at Peyton and Regal checking the markets in early trading, the Dow is down ninety points three tenths percent, the S. and P. Five hundred is down just slightly. The Nasdaq is up two tenths percent. Two days of testimony I in the Senate then in the House from the Federal Reserve Chair Jerome Powell. Yes, the key word is accommodative. The Fed is trying to be as nurturing as it can to the economy and the pandemic making credit easier to get interest rates low market smooth now. He said it before warning and said it again Karen. Petro is managing partner at Federal. Financial Analytics Good Morning Good Morning David. Absorbed every syllable of this two day testimony extravaganza. Are you any the wiser about when we will dig ourselves out of this coronavirus whole? I wish I were obviously I think maybe it's not so obvious because everybody really looks to the Fed for these days for salvation, but fed isn't the Archangel. The Fed can only do so much, and within the economy struggling even before did with significant structural problems like economic inequality and now with the pandemic. Whose future is. Uncertain, the Fed is essentially hanging by its fingernails. Now that chair Paul Wants Congress to do its part. The term of art is fiscal policy. This is what government spending through borrowing. That's right. It's a sharp reversal for the Fed which is historically preferred a balanced budget, but he is certainly. Within the boundaries of Fed Etiquette calling on Congress to throw everything. It's got at the economy because again. The Fed can only do so much. All Right Karen Petrou is managing partner federal financial analytics always good to talk to you. Thanks David Pleasure. Sometimes. A small change can have a big effect when it comes to the problem of economic inequality. That's one strand of marketplace's documentary podcast. The uncertain our in their latest season, called the history of now with the final installment. Joining us as the podcasts host and senior correspondent, my colleague Kristie Clark I David. You're episode this week. It some big heavy questions broadly wear economic inequality might be headed in a post corona virus world. But you start with a case study of something, Mundane, tangible and familiar, the price, a boneless skinless chicken breast. Yes, as you know earlier this season, we took a close look at the working. Conditions at chicken plants in Mississippi counties with chicken plants have emerged hotspots, corona virus, and the conditions at these plants can be tough. Here's chicken industry watchdog minor sinclair with Oxfam, working cold and crowded conditions for low wages, and under a lot of duress. So if you look at those conditions say that's in part why chicken is so cheap. And so one thoughtful listener wrote in asking us. How much might the price of chicken go up? If the workers got paid better, so my colleague Caitlin tried a little thought experiment. Would you come up with? Well I. Do have to decide of course what better pay means in Mississippi poultry workers who are mostly people of color generally earn between about twelve and fourteen dollars an hour. They usually don't get paid sick leave. Sometimes, they don't get any health insurance. So what if you bumped up their wages to say twenty dollars an hour enough for one adult worker, supporting one child to cover basic expenses, and then add sick leave and better benefits, and if you did that, what might that do the price of the chicken? We'll take a product like boneless skinless chicken breasts, lots of people by those they can cost about two dollars a pound on average one industry analyst we talked to estimated about ten to fifteen cents of that reflects plant. Labor, so if you bumped up wages to twenty dollars, an hour plus better benefits that might add another ten cents to the cost meaning that chicken might cost about two dollars and ten cents a pound, so not a big difference, not a big difference. Now you're episode transitions from a small chicken breasts on a plate to a discussion that really spans the ages. There are these two moments that really jumped out. These rare eras where economic inequality fell for decades and one of them in Italy starts in the thirteen hundred's right after the plague another in parts of Western Europe starts in nineteen eighteen right after the flu pandemic, and of course there were lots of other things going on peasant revolts, world wars, but after each of those two pandemics, workers wages started to rise, and concentrated wealth fell, and it's made me wonder if this might be another inflection point when historians look back at us, someday host of the uncertain, our Chrissy Clark. Thank you. Thanks so much David. All the episodes, her latest podcast season are now available wherever you get your podcasts. Hi I'm David Brancaccio you're you're listening to the marketplace morning report? From APM American public media.
Downtown Hotlanta isnt so hot these days
"This marketplace podcast is brought to you by four x dot com committed to empowering and helping traders seize opportunities and the foreign exchange markets learn more at four x dot com four x dot com. It's your world trade it for X.. Trading involves significant risk of loss this marketplace podcast is brought to you by Alliance for lifetime income for P. M American public media alway on global sentiment and meanwhile the hard data things like actual employment actual hiring actual retail sales housing starts they held up pretty well and actually retail sales in the US and housing has improved in recent months so hard good morning how are you Well I mean you tell me what's behind this IMF Slowdown in growth global economic data has well organizations would call up a purchasing manager at a large manufacturing outfit and say are you expanding or you contracting it educating and raising awareness about how annuities can solve retirement income needs find out if making annuities a vital component of your portfolio is the right choice for you learn more at risk higher your risk dot org the IMF is the most pessimistic about global growth it's been since the great recession from marketplace in New York activity are you hiring or not hiring and they are heavily influenced by global sentiment and the trade the tariffs story the Brexit story students the concern is if you see a decline in talent flowing into the US then that's going to have negative longterm implications he says these students fear leaders from the country's top business schools have a message for the president current immigration policies and rhetoric could hurt the US economy in the longterm fifty liters of prominent business schools made that argument in an open letter to president trump they say the US does not have enough of the high skilled workers gas for next year down by a tenth of percent growth expected to be lower everywhere except Brazil this year. Let's bring in Jeffrey Cleveland Chief Economist with Payden and Regal Good Morning Weaker for pretty much for the last eighteen months and led primarily by slow down and global manufacturing what's driving it well on Brexit and if we get progress on the trade and tariff debacle all right Jeffrey Cleveland Chief Economist with Payden and Regal thank you have a great week there's still holding up many of the soft data points especially globally I think in the next few months will start to improve as well if we get progress on this marketplace podcast is brought to you by Cronos Cronos knows that hiring and retaining a modern workforce of salaried our education but Ron Hereof Howard University says the system has been abused by some companies firms have replaced US workers with H.. One BS directly makes the case that business schools or training the next
Grocery shopping is taking an extra bite out of our paychecks
"Was that small business optimism and enduring beacon or a quick flash? I'm David Brancaccio there has been a spike in consumer inflation with the consumer price index out today up six tenths of one percent in June, gas prices, going from super-low too low as part of this, but have you gone out foraging for stuff to cook lately Jeffrey. Cleveland is the chief economist at Payden in Regal in Los Angeles Good Morning to you good morning David Arts inflation not dead at least this month. You see it in the grocery store. You do we are looking in particular at the food at home index. It increased five point six percent over the last twelve months through June, which is the largest twelve month increase in about nine years since two thousand eleven. We could break that down further for you if you would like your palate. desires, meat, poultry, fish, and eggs portion of that food. Food at home, an index clocking in at plus twelve point seven percent year over year. In June, David that is the largest increase that I see on this chart dating back to the late nineteen seventies, so while central bankers will tell you that inflation is low looking at the X. Food, ex. Energy core indices I can tell you that where it matters most. For my pocket book I, I am seeing price increases. You know confirms what we see when we go in there. A lot of this is corona virus disruptions right at the meat, packing plants and general shortages. Sure so some of this may work. Out The course of the year as we work through, some of the bottlenecks, says production comes back online etcetera, but for now it is I. Think is taken a an extra by out of people's paychecks. Jeffrey Cleveland at Payden and Regal thank you very much have a good week. You have a mixed stock market. At the moment, the Dow is down fifty seven points, two-tenths percent S. and P.. Five hundred is down eight tenths percent. The Nasdaq is down now one point six percent, so no longer, mixed but down. The. Optimism of those who run small businesses jumped in June. According to the latest survey from the National Federation of Independent Business and if I be yet, timing can be everything marketplace's Mariel Sagarra joins us. What can we learn from this survey every month? The NFL I be asked small business owners questions like in the next three months. Do you plan to hire more? More people, or do you think it'll be a good time to expand or in the next six months? Do you expect the economy to improve and the number of business owners who said Yes to these kinds of questions increased in June for the most part, but unfortunately there are a lot of reasons to think that this optimism will be a blip because the. The pandemic has taken a turn for the worse since June right. Yeah! In most states, covid cases are going up in some Florida Arizona California Texas case. Numbers are exploding, and that affects businesses. The Governor of Texas recently closed the state's bars and put more restrictions on restaurants California just announced that it's GonNa shut down almost everything again. Zoos movie theaters bars indoor dining. Dining and on top of that a lot of small businesses that were able to get federal loans in the spring that money's running out and early in this pandemic Congress, added an extra six hundred dollars a week to unemployment benefits that goes away at the end of July, which does mean people who are unemployed. We'll have less money to spend at these businesses. Marielle, thank you. Social, distancing and we mean it in Cornwall. England pub Saint. Justice run electric, fence along the length of the bar. It's a clever ploy. The electric fences and actually turned on. Here's here's Johnny McFadden. The pubs landlord as they call them there. I didn't know what to do to keep people back from the bar. We live in a rural area. Everybody knows what an electric fences so. Put one in the bar. People are like she works for the shape of the people. You'll catch off more puzzle to. My solution was to two and a half gallons of my own English bitter during lockdown, and simply drink alone here in the basement me and my thoughts, no electric fence. The California State Senate passed a bill that would make workplace safety rules apply to domestic workers. The occupational safety and health bill is now in the state assembly right now. Many workplace rules don't apply to Nannies House. Cleaners caregivers for the elderly reporter. POLINA VELASCO has been following a coalition of domestic workers pushing this along. Over a hundred members of the California, domestic worker coalition are zoom rally to support a bill that would include domestic workers in cal Osha protections. That's the state agency in charge of ensuring workplace safety. This is back in May when workers called into a Senate Labor. Committee hearing the. Slowly thank yeah. SORTA, yeah, so Corre Diaz belongs to the Grayton Day. Labor Center in Sonoma's county where she works as a house cleaner. In two thousand eighteen s was hired to clean a house that had been affected by local wildfires. It was covered in ash me, so it missed. I'm on my eyes started tearing up. I felt them burning. Skin was also burning, but she was not protected under cal Osha. The agency has guidelines for working in wildfire zones. Employers have to warn employees about health hazards and depending on air quality provide protective gear, and workers can file complaints about unsafe working conditions. Household domestic workers are excluded from these protections. Now there are about two million households in California that employ domestic workers as childcare providers caregivers. Maids that touchy situation that we have here is that these are private homes that. The. Department of Industrial Relations will be entering that state Senator Shannon, Grove, who voted against the measure speaking on the Senate floor, she and other critics of the change object to regulating what goes on in people's homes. Megan Ortiz the director of. An organization in Los Angeles that advocates for domestic workers. She spoke at a hearing on the bill. To point out. There are steps that come before Osha comes knocking on people's doors. This really is about. How do we issue guidance? To employers what they have those tools to understand obligations, the measure would create an advisory committee to Taylor cal. Osha regulations to domestic work in Los, Angeles I'm pulling Velasco for marketplace. Now to a moment of ECON. Extra credit as Amazon removes an economic incentive for workers, not to wash their hands amid covid Bloomberg. News got a hold of a message Amazon sent to warehouse employees. Saying time spent washing hands will not be counted against the workers productivity quota Amazon is being sued by some employees at a Staten Island New York warehouse, claiming that its policies endanger workers especially with the pandemic something, the company denies. I'm David Brancaccio. This is marketplace morning report. From APM American public media.
The states relaxing COVID-19 restrictions
"Take my oil please. Crude oil is nearly free for the taking. We will explain. I'm David Brancaccio. Good morning the sheltering in place world here is using radically less oil and the glut may soon Philip Storage tanks around the world given the pandemic. The price of crude oil for May delivery fell to negative thirty four dollars a barrel at one point over the last day negative means holders of oil are paying people to take the wretched stuff off their hands. It's about demand but also about finding room to store the overflow with storage. That is running out. Jeffrey Cleveland is chief economist at Payden and Regal in Los Angeles either David. There's the demand part of this given up pandemic but there's also a storage story a place to put the oil. We don't have much more room. We're running out of room estimates David or that. We have four to six weeks of oil left here in the US before. They're tapped out if you will. We're also continuing to produce oil all over the world so it's not easy to turn off you know an oil drill and shut it all down and some countries as David have been reluctant to even cut their production until very recently so we're producing still more and we don't have the demand for it and hence prices plummet. You know the analogy I was thinking of was a bit like you purchased an expensive couch but you move to a new apartment and it doesn't fit there. You can't just put it in the hallway. The landlord won't let you. You have to get rid of it. You end up paying someone to move your expensive couch. Jeffrey Cleveland is the chief economist Dependent Regal. Thank you thanks David. Bizarre oil world continues this morning with crude now up a hundred and five percent to two dollars a barrel. This is crude oil for May delivery but those contracts will soon move onto June delivery where the price is expected to bounce up sharply for even longer term implications. Let's turn to Robert. Johnston managing director for Energy and climate policy at the political risk consultancy the Eurasia Group. I think this is part of a larger trend towards structurally weaker prices in the US and global oil markets that we think will probably continue into twenty twenty one and probably into twenty twenty two you'd think producers would now have the political will to radically cut production to boost the price. You don't see that. So I do see OPEC producers committing to nine point seven million barrels a day of cuts which is about ten percent of global supply countries like Saudi Arabia and their partners in Russia. The problem I see beyond that is that in the. Us and Canada were relying on the free market to shut in production. Which is happening. But it's very hard for the market. Get visibility on how quickly where and by how much that productions being shot in. And that's adding to the volatility markets. No oil producer in any country can go forever with negative oil prices with the US domestic the domestic energy producers in places like North Dakota Montana Texas. They make oil the cost quite a bit to produce. Are they going to survive this? I think the US shale industry as a whole will survive. But it'll be a smaller industry in two thousand nine hundred nine. The industry's producing thirteen million barrels. A day I think by the end of twenty twenty. It could be down below eleven million barrels a day so some of the smaller producers with higher costs and weaker balance sheets will not be here anymore. Mr Johnson I just checked. I haven't put gas in my car for about a month about you. Same I would say. Yeah well that's the problem. I guess it's US causing this. Yeah I would say global oil markets one third of the demand is gasoline and Jet Fuel. That demand is not coming back anytime soon. So until we see any kind of normalcy in those markets Think crude will stay under pressure in that will put pressure on those oil-producing states in the US and around the World Robert Johnston managing director for energy and climate policy at the Eurasia Group. Thank you so much pleasure. We're also covering a new plan today from the Rockefeller Foundation calling for a corona virus tests to be to be deployed with a speed and a scale like into World War. Two airplane production with testing capacity at about a million a week. Now Rockefeller has developed this plan to get to thirty million a week to allow the US economy to function again and to avoid a full-blown economic depression the foundation sharing its plan with the trump administration. It's estimated to cost one hundred billion dollars. Meanwhile the Senate today could approve another three hundred billion dollars to help smaller businesses. Keep people on the payroll into the summer Some states going ahead and reopening parts of their economies though large scale testing for this virus as we just said is not available. Marketplace's Nancy Marshall Genzer joins me now. Nancy which states for example. Well David South Carolina let certain retailers open yesterday including furniture stores department stores flea markets and Florus on Friday Tattoo and massage parlours hair and nail salons gyms and bowling alleys can reopen and Georgia and most businesses in eighty nine of Tennessee's ninety five counties can open again on. May I may I other any limits on how these businesses can operate? Yes in South Carolina stores will have to limit customers to no more than five per thousand feet of retail space and Texas is only allowing pickup and delivery at the stores its reopening most some pushback though definitely Atlanta mayor. Kisha bottom says she's extremely concerned about the reopenings in Georgia. Georgia never banned in person. Church services in the mayor says the state's biggest outbreak of the novel Corona Virus came from two funerals and Texas Democrats. Say It's premature to start reopening businesses when testing levels. There are still low. Nancy thank you and back to the price of oil which just went from a negative to a positive number now at two dollars a barrel up one hundred six percent from its trough of the last day hats off to alleviate knocks the Sirius. Xm DC correspondent suggesting on twitter that all these cheap barrels of oil set for. May delivery might make oh splendid gift for mother's Day. I'm David Brancaccio marketplace morning from APM American public media.
How to flip a house in Texas
"Ahead of China's Lunar New Year celebrations concern about a deadly virus. Hit Asia's financial markets today. I'm David Brancaccio show. At least six people are dead and about three hundred confirmed sick in the Chinese city of Wuhan with the spread of a new strain of SARS like virus the World Health Organization his gathering tomorrow to decide whether to declare an international health emergency. All this says large numbers of people in Asia or set to travel for a big holiday marketplace colleague League the BBC's Victoria. Craig is following this for us from London so normally people take money out of the market ahead of this holiday but today that China's Shanghai Composite Index ended down one point four percent while the currency the yuan fell about half a percent. That's the biggest daily decline since August. If we drill down into the details I was just a bit shares of drug makers and companies that make facemasks rose by ten percent hitting the daily limit in China. Now there's not currently a treatment or vaccine for this virus Irish so people are buying up supplies to protect themselves against the spread Shares of Chinese Entertainment Company is those casinos movie theaters even luxury brands. Those is there also falling today and again looking at the calendar the Lunar New Year holiday starts Saturday. How might all that travel that comes with with those celebrations further? Play into this This is the busiest travel season for Asia and very important spending period. So forbid of comparison I can hear about one hundred and sixteen million people travel across the US for Thanksgiving and Christmas. Every year estimates though in Asia are for three billion trips to to be made across the region in the next week for Lunar New Year. So if you think about it if health concerns caused people to cancel flights travel plans altogether. That means they're not spending money money. In the towns and the cities they visit and so that could have a broader economic impact on the continent all right and US airports have begun screening for this corona virus as well marketplace colleague the BBC's Victoria Craig in London. Thank you thank you. Meanwhile with the impeachment trial opening in earnest in the Senate today president trump is in the mountains of Switzerland after delivering business and political leaders at Davos bullish assessment of the US economy. He called the US today. Quote a roaring geyser of of opportunity given lower taxes and the lowest unemployment rate in about a half a century growing income inequality in the US. He did not address directly and despite the exalted altered state of the US economy. The president today took a firm Swipe at the US Central Bank saying the Fed raised rates too quickly. And have they've been too slow to bring them back down. Jeffrey Cleveland is the Chief Economist. At payden and Regal in Los Angeles I think the Federal Reserve is an easy punching bag bolt for those on the right and those on on the left. I you know I think. The president wants Easier monetary policy obviously in an election year. Any president would want easier. Monetary policy to to boost is the boost the economy My personal opinion is appropriate. Setting for the federal funds rate has been reached. We we have easy policy in the US us the economy is doing fine. And we have growth Right around two percent and unemployment rate. That's lowest it's been fifty years. So how much more could you really really want out of the Central Bank. Now you do have this indicator for world trade that you'd like to share with us. It's out of South Korea and even though this is a brand new year here we have some twenty twenty data. Well David as you know. Most data is stale but this data point in particular attracts the first twenty days of South Korean Exports Sports and we just passed January twentieth and the data was week all throughout twenty nineteen as we saw weak global economic data We global trade volumes. But the data was down point two percents that's crean exports down point two percent versus eight year ago. It's a sign of a bottoming mean out in global economic activity. Jeffrey Cleveland is the chief economist at Payden and Regal. Thank you so much. Thank you now. The International Monetary Fund today slightly lowered its global economic forecast for this year UH netflix quarterly profits revenues and sign up rates. Come out after. The markets closed today this at a time of new streaming competition petition from Disney plus apple plus peacock soon. Hbo Max in the Spring. Here's marketplace's Kristen Schwab. Many of our budgets are overwhelmed by subscriptions descriptions and are is. They're overwhelmed to at some point we're going to reach platform overload. And we're going to just long for the days when all we had to do is turn turn on the television. Jennifer Holt. Is a media studies professor at UC Santa Barbara. She says consumers have endless choices. What they want is high quality content? Obviously obviously the way of making that content though attractive is to start cooking major stars and directors netflix Scott The memo and twenty four Oscar nominations last week but Deloitte's Kevin Westcott says he need more than star power to hold onto customers. I'm starting to see the largest platforms aggregating. We're getting more and more content so that you can become the one stop shop. Viewers want the Irishman and the office. And that gets expensive. So as Scott says we may see a new model. It'll were customers. Pay A base streaming price an extra for premium content which sounds a bit like good old cable. TV I'm Kristen. Schwab for Marketplace Texas assists has had one party Republican rule for nearly two decades but Texas Democrats are becoming more competitive in this year. That means more outside campaign. Money is coming into the state. Here's Houston public. Media's Andrew Schneider Democrats are with a nine seats of winning control of the Texas House of Representatives and that's not the only prize if the Democrats win that could mean they'd have more power over congressional redistricting after the two thousand twenty senses. It's looking like Texas is going to get at least three three more seats in the US Congress so How those seats are drawn? And how those maps drawn is going to be very very influential not just in Texas says politics but on national politics. Tracy Marshall Is Director of the nonprofit transparency. Texas Marshall says in two thousand eighteen the most closely contested Texas House. Races cost more than four hundred thousand dollars this year Marshall estimates that could surpass half a million we might see for the first time in a longtime more outside money coming into Texas than Texas money going out Texas already has the second largest bloc of congressional seats in the country after her California that congressional price has drawn. The attention of national figures. Like House Speaker Nancy Pelosi and legendary. Gop Strategist Karl. Rove State Representative Salia. Israel has the Texas House Democratic Campaign Committee in my mind. This is a tremendous opportunity for us to raise millions and millions of dollars. Republicans are going after the big money as well state representative. Charlie Geren Co leads. The Political Action Committee leading Texas forward. Pack Jack We're setting up some fundraising events in different locations around the state and solicit donations from across the board thous dollar donations or one hundred thousand dollars with so much at stake Texas often an ATM for national candidates who look to raise money here may a very well become an investment target for out of state donors in Houston. I'm Andrew Schneider for marketplace. And in this moment your public radio station station is doing the work to provide you with the real time political coverage that is shaping our country here at marketplace. We're doing our thing to working to raise the economic intelligence of the country country with special impeachment coverage happening throughout the day today. If you don't hear marketplace with Kai Ryssdal on your radio during its usual afternoon evening spot know that you can always listen it. Marketplace Dot Org are producers. Are Rose Common Victoria. Craig Meredith Garretson candace Miller Case Renan Daniel Shin. I'm David Brancaccio. This is marketplace morning report from A._P._M.. American public media.
Americans are moving because of the pandemic
"The. Almost a quarter of adults moved because of coronavirus or know someone who has. From marketplace in New, York I'm refinish in for David Brancaccio more on moving in just a SEC. I, we are about to get the answer to a question, did us. Companies start to post more jobs in May than they did in April. Or did those postings continue to climb in just a few minutes? The Labor Department is going to release its latest monthly job openings and labor turnover survey for May Jeffrey Cleveland is chief economist at paid and Regal and joins US Good Morning Jeffrey Good Morning. How are you? I'm good. So what do you expect to see in the numbers of job openings back in May well. We know the US. Economy shed millions of jobs in. In April and then started to add back jobs in May and then June in large size, which is great news, so we want to see though that we're also a rebound in demand for labor, so job openings I think we are going to find out that job openings bounce back as people you know went back to work and went back on payrolls in the May period, and then in June period, but we'll see. The data will prove be right or wrong. Right this data, there's quite a lag right I mean. This is back from May. Can we tell anything about what might be happening now from that I? Think that's the big problem here. Everyone is looking at daily data on virus. Case counts daily data that they can get their hands on so more real time, and this is not that data. This data report is for the month of May so it comes out with a bit of a lag, but still it will help us get a sense of the shape of the economic recovery, all right Jeffrey Cleveland Communist paid in Regal. Thank you so much have a good week. The pandemic has changed how we work how we live and according to a new survey from the Pew Research Center. For many people. It is changing where we live. Marketplace's Kimberly. Adams has more from Washington. Ran A survey and June and found about twenty two percent of adults in the US either moved because of the pandemic or know someone who has many left to reduce their risk of catching the virus, or because of financial reasons like job losses actor Tracy Stevens was touring with the political comedy troupe that had all it shows canceled when the pandemic started, I just had to make a choice. Where either I stay in DC paying. Paying crazy rent with no job or do I pack things up and just sit and wait it out, but better to sit out and wait with family. Stevens ended her Leeson. Send moved in with her parents in Atlanta where she's finding some work. More than sixty percent of the people who told Pew they moved because of the pandemic moved in with family, primarily their parents, or their in laws in Washington. I'm Kimberly Adams for marketplace. We remember the most staggering unemployment numbers of this pandemic. More than twenty million people lost their jobs back in April, and yes, jobs have been added back, but the unemployment rate is still soaring at eleven percent. Thing is that didn't happen everywhere in the world the United Kingdom? For example has been able to keep its unemployment rate from skyrocketing during the crisis companies. They're kept their staff on payroll. Even if their doors were shut from London, the BBC's Victoria Craig reports on. How did that back in March when the coronavirus pandemic forced British shops restaurants pubs to close, the government stepped in with unprecedented support, it announced billions of dollars in loans and grants for businesses and self-employed workers and allowed companies to apply for. For a furlough program that would cover eighty percent of an employee's wages so far that's meant. Businesses have avoided laying off nine point. Three million workers nevermind George owner of the Lucia. La Cafe in the northern English city of Leeds, says those programs were essential for her businesses survival to allow us to pay the off with a fertile. Oh, that was really a huge help. It was vital for their own survival and for us as a company. We have the same stuff so when we start again our. Our training only on the new procedures, but she's not out of the woods yet. The cost of these programs according to the UK's Office of budget responsibility is set to cost the government more than three hundred seventy one billion dollars this fiscal year to try and limit ballooning debt, starting in August employers will pay national insurance and pension contributions, and from September, they'll pay ten percent of their furloughed employees salaries with it rising to twenty percent in October to accommodate the change. Never mind is weighing the need. Need to reduce working hours for her employees the stuff I've supporting and actually get messages. Thank you for doing this for us. was like is the government to helping else more than me, but I'm trying to work smartly to make everything work together, but with more financial responsibilities shifting to employers now Tony Wilson Director of the Institute for Employment Studies says that could lead to more layoffs as businesses try to cut costs later on, he says job losses could total four or five million by early next year. The government's is going to have to shift towards helping people out of work to find new jobs, and that often mean retraining to help people find jobs in growing industries, but it also mean giving people the tools in the help to look for work prepare for work and apply for new jobs for nermine of Chalet. It's one day at a time. Yes, we rely on the government, but we. We have to be resilient and finding solution of how to survive. We might have to change location. We might have to change the models to be online chump, and to be offering for now. She and her team are keeping busy with local afternoon tea in Delhi deliveries until as she says, the cafe can come back with a Big Bang in London I'm the BBC's Victoria Craig for marketplace. And in New York I'm Benesch sure with the marketplace morning report. From APM American public media.
Giving thanks, even when tragedy strikes your business
"This marketplace podcast is sponsored by merrill with merrill guided investing. You have the option to work with an adviser at a low cost and minimum get started at merrill edge dot com slash investing goals merrill lynch pierce fenner and smith incorporated both a registered broker dealer and investment advisor member. Sipc as a nonprofit news organization. We count on our marketplace investors to keep independent journalism strong thanks to these dedicated listeners. Who have stepped up to support trustworthy. Fact-based news were able to help make people smarter about the economy and help folks make better decisions about their own personal economies so thanks to each and every one of you who donated in the last year. We couldn't do this important work without you giving. Thanks even though your business was ruined in a flash. I'm david brancaccio as we've been covering this morning the word is that a seasoned hand will be tapped as by joe biden as treasury secretary. Janet yellen former chair the federal reserve a one. Time chair of president. Clinton's council of economic advisers. Jeffrey cleveland the chief economist at payden and regal says this choice will have immediate bearing on prospects for economic stimulus. The thing that the fed has been complaining about is that they can only lend. They can't spend so having a helpful. Advocate at treasury pushing spending programs through congress. Is the key here. That's the key factor to consider. I have to say though david. There is still a major impediment in this story. Which is congress itself in particular the senate. So it's not smooth sailing right out. The gates stimulus yellen is set to become the first woman to run treasury with her time at the fed yellen will then have held the two most powerful economic policy positions in the country if not the world markets dow up three hundred and three points one percent. S&p up seven. Tenths percent nasdaq up slightly with the political. Winds shifting. general motors changed. Its mind and will no longer push back against california's clean air car standards marketplace's nova sophos been following this. Yeah this is a fight. That pits trump administration against the state of california and it's really about how quickly car companies can electrify their fleets. The trump administration has set more relaxed vehicle emissions rules. The state of california has its own tougher standards. And what's to keep those the way it's done since the nineteen sixties while there's a lawsuit seeking to stop the trump administration from imposing its standards on california. Gm was among the carmakers citing with the trump administration in that legal fight. Now gm says it sees a path to compromise with the incoming biden administration. And it's pulling out of that legal battle how does gm's move here fit with other automakers who also have big stakes in this well ford honda and volkswagen among others reached a deal with california last year to meet. Its tougher standards. Gm was in a group with toyota fiat chrysler and others in opposing california's rules. What happens now. Gm's ceo mary barra in a letter. Said she's encouraging the other automakers to also drop their opposition. This apparently caught some of those. Other automakers off guard. We heard from toyota in a statement. It said it's assessing the changing circumstances. David nova thank you this marketplace podcast to support it by guideline with a guideline borough one k. You and your employees can save money while saving for retirement. There are no separate setup. Costs no added. Investment fees and monthly fees. Started only thirty nine dollars. Plus eight dollars for each employee for a limited time if you go to guideline dot com slash marketplace and tell them you came from marketplace morning report. You can get a one hundred dollar gift card if you do not currently offer a 401k. Plan for your employees when you start your 401k plan with guideline that's guideline dot com slash marketplace tell the marketplace morning report sent you every november semi trucks from ups lineup. As far as the eye can see in tyler. Texas to pick up tens of thousands of smoked turkeys from greenberg's a family business since nineteen thirty eight. These birds are so smote they keep in transit. But this thanksgiving there no greenberg turkeys. It's cold storage facility caught fire and blew up the other night. Some kind of malfunction. The smoker was untouched. But it's too late to rescue the season the owner sam greenberg joins us. How are you are you normally get. I don't know about two hundred thousand turkeys to people every year. But it's just not gonna happen this year. Now it's not going to happen friday. Two weeks ago on the six november we had a catastrophic fire that wiped out our entire smoked turkey inventory all the turkeys that had been smoked up to that time just a little under ninety thousand turkeys and then wiped out all of our shipping room. It also wiped out All my inventory of boxes and bags and paper bags and poly bags. And even if i got bags i didn't have a place to store the turkeys even if i got the storage i don't have a place to ship them so i was in a mess. We just Basically had to call off the two thousand twenty season so now what you thinking about. Twenty twenty one. That is exactly what we're doing. I let me back up and say something. This company was built on the best customers in the world. The outpouring of support that we have had in the last two weeks is unimaginable. By anybody's means would be concerned especially a seasonal business that if you weren't in operation for a year that people would forget about you but i'm telling you with the outpouring of support that we've had. I'm so engaged so so happy about what's going to happen going forward. We're going to have a better facility and our customers are gonna. I think they will come back in droves let says a lot right you have these loyal customers so then i just going to look up. Some of you know not just going to buy ham and forget about you moving forward. You think that if you can rebuild it they will come back. I think that's exactly what's going to happen. Because our customers are that loyal and the proven it by what they're doing right now. We of course had presold about sixty thousand turkeys for thanksgiving and christmas and in refunding that money we the droves of emails and calls that we got. Don't telling us not to refund their money. They wanted us to keep it. So we could use it to rebuild it was. It's unbelievable especially in this day and age of of everything a feeling so divisive. This was actually just the most heart warming thing you could ever imagine. Sam what it about twenty twenty year. Well let's Let's hope it's this way that We're getting everything bad out of our system at one time. Also know that as bad as it looked on the evening of november. Sixth as horrible. As i felt. I know that there's always tomorrow and You just have to fight through it with the best. Use all your resources you have and go forward. You can't keep looking back sam. Greenberg of greenberg smoke turkeys tyler. Texas thank you very much and good luck. Thank you sir. It's a pleasure talking to you and happy holidays and healthy holidays to you and your listeners. And to be clear. Sam insisted on refunding everyone. I'm david brancaccio. Marketplace morning report from apm american public media. Hey everyone. I'm eddie method as host of the marketplace podcast. This is uncomfortable. Talking about money with friends can be hard for him and a lot of my other punk friends. Saying i came into like four hundred. Fifty thousand dollars would be like saying. I came into a million jillion dollars. How one man hit a huge windfall from his friends like the dirty little secret until he no longer. Could you can catch this. Episode of this is uncomfortable wherever you get your podcasts.
Black-owned businesses still face uphill financial battle during the pandemic
"I'm just in Ho with marketplace, the economy is changing so fast it's hard to keep up. So our latest podcast is here to help it's called the marketplace minute give us just sixty seconds and we'll bring you the latest on what's happening in the economy three times a day market updates business news in how the numbers affect your personal economy. We'll tell you what you need to know why it matters. Just ask your smart speaker to play the marketplace minute or find it wherever you get your podcasts. Technology stocks are continuing to melt in the heat. I'M DAVID BRANCACCIO technology stocks flying high until last Thursday or having another day in the red bright red looking at my screens right now the Nasdaq composite index in early trading here is down another three point six percent meaning it's down about nine and a quarter percent since Thursday morning Tesla, the electric car company until Wednesday. A Darling of the stock market is down eighteen percent today alone. Let's get some insight here from Jeffrey. Cleveland the chief economist at paid in Regal in Los. Angeles Good Morning. Good, morning. Morning, do you see much of a connection between the sudden selling of technology stocks, Tesla Apple and beyond and whether the underlying US economies up down or sideways? David in a word. No. I think maybe a loose connection and perhaps profit-taking after a very good run for tech stocks. But other than that I, don't see a strong connection. Before the weekend we got that unemployment report down to eight point four percent the White House economic adviser Larry Cudlow g see he suggested on Bloomberg News that the economy is now strong enough and could do without Congress agreeing on new stimulus economies that strong in your view. Well David I think you have to go back ninety days and you have to look at how people thought the economy would evolve. I think it's safe to say we are much better footing than we were. Then the consensus for Bloomberg had a ten percent unemployment rate by year end where at eight point four percent on the unemployment rate as of August. So that's great news, the Bad News David the number that I'm tracking. That I'm most worried about is the number of permanent job losers. It's also a line. You can check in the jobs report that we got on Friday that crept up in. August up to three point four, million people on permanent job losses. So firms that have permanently shutdown people that have been laid off on a permanent basis, and they're not coming back I. think that's the most worrisome aspect of the underlying economy right now. Economist Jeffrey Cleveland Back to the stock market, the Dow is down five, hundred, forty, one points one point, nine percent, the S. and P. Five hundred is down two point three percent. Over the weekend, there was confirmation that a deal has been reached to avoid a funding lapse that would cause the federal government to shut down this fall but congress has additional fish to fry. Here's marketplace's Kimberly Adams. There are two big things Congress needs to get done this fall I they need to work to make sure that the government does not shut down at the end of September that means funding the government says, Tamra he'll at the on budget and policy priorities. But. Then they also need to address the virus health and economic pandemic that we're seeing and need to work on a relief package to help struggling households and businesses. The November election is looming over all of this neither party wants a shutdown that will make it look like they can't govern effectively, but there's also not much incentive to compromise in this political environment. Ravi Perry teaches political science at Howard, university. All of these issues are conflating and what they Austin knows that. Congress is essentially paralyzed until the election and depending on how the election turns out. Maybe even afterwards in Washington I'm Kimberly Adams for marketplace. Is there any business not affected by the pandemic? There's data showing among the hardest hit or minority owned small businesses especially black owned small businesses marketplace's senior economic contributor. Chris, Farrell continues to monitor this morning to you Chris Good Morning David. Many factors here. What are the academic thing? So I looked as analysis by these economists at the Federal, Reserve Bank of New York, and what they found is that black owned firms or more likely to be located in Covid nineteen hotspots. White owned firms are less likely to be in the most affected areas. So let me give you a number for this roughly forty percent of receipts from black owned businesses are concentrated in just thirty counties and roughly two-thirds of those counties are in areas with high numbers. Of covid nineteen cases I mean think the Bronx tweet. So that was one factor. The other was the paycheck protection program. You know the one that you've talked about PPP that's what is better known as. That was the government's signature relief program for small business. Well, hardly any of that money reached black owned businesses. We also know right the black owned businesses overall on average ten to start out with far less capital than white owned businesses and have less access to borrowing. and. This has been a longstanding problem. There's lots of studies I took one from the Brookings Institution based on two thousand eighteen data, and it found that large banks approve around sixty percent alone sought by white small business owners in just twenty nine percent of those sought by black small business owners. All right. But as a matter of policy what could be done. So I think it's incredibly important to acknowledge that look the cornerstone of our neighborhoods are small businesses, and that's especially true with black owned businesses and what we see with covid nineteen, just how critical these small businesses are. So policy-makers need to pay a lot more attention to these small business owners and the ingrained bias by Financial Institutions David. It's just not tolerable. We put it to you this way. It's great. It's wonderful to have these Filkin Valley type UNICORNS but eliminating these embedded inequalities in support the kind of business that underpin resilient neighborhoods. Now, that is progress especially black owned businesses. Chris Farrell marketplace, a senior economic contributor speaking from Saint Paul. Thank you. Thank you. Back to the abrupt deflation of tech stocks in recent days rechecking the Nasdaq here. It's now down three percent apple is down four point eight percent of the moment down thirteen percent in a week. Even the crafts marketplace at is down one point six percent. This morning, it had been on track for a little jump today after work came Friday, the stock would be added to the S. and P. Five hundred index means everyone who owns the popular SNP five hundred will soon own a little. Oetzi but that's not helping much today. Our producers are Meredith Garretson candidates, Monroe Ren Danielson and Erica Soderstrom. I'm David Brancaccio. This is the marketplace morning before it. From APM American public media.
What to do about fading local news
"This marketplace podcast is supported by we work today takes new ways of working new measures toward health and safety flexible terms for how you work spaces designed with your purpose. It takes a we work office to take your business where you wanted to be we work. That's how tomorrow works visit we work dot com slash tomorrow. Hey All Face host of the marketplace podcast. This is uncomfortable. Halloween is coming up and what better way to celebrate than with stories about financial decisions that still haunt you. Like say that time your mom caught you over drafting your bank account on adult sites and I suddenly realized that one of these things is Mr Skin, dot com and thirty dollars a mud. New episode of this is uncomfortable drops. Thursday, you can listen wherever you get podcasts. What is to be done about fading local news I'm David Brancaccio tomorrow the chief executives of facebook twitter and Google will testify for a Senate Committee Today the Democrats in that committee are focusing on how big tech treats local news media marketplaces Nova Safa joins us here local news as in many cases gotten clobbered by digital summer thinking about a different funding model. Right. So Senate Democrats are calling for something akin to how cable companies operate they pay local TV stations for their content. That's an important part of local TV revenues and the report by Democrat says similar framework should be created for newspapers around the country and how their content is used online. For example, right now, Google can put up a headline and excerpts from a story. While paying little or nothing for that content and Democrats say that another practices are essentially stealing. They say that's part of why there are steep losses in the newspaper. Industry revenues are down seventy percent compared to fifteen years ago, and the pandemic has made matters worse more ad revenue declines as for the big tech companies they have not publicly responded yet to the Senate Democrats report. So some of these Senate Democrats want local newspapers to get a bigger piece of the digital ad Pie. What about Republicans? Well Senate Republicans, who of course are in charge of the hearing tomorrow are expected to focus on how social media platforms, moderate speech. But just last week, the trump administration's justice department filed a landmark antitrust case against Google. So the issue of how to address the dominance of big tech in general does appear to have bipartisan interest how that plays out likely, the outcome of the election will have something to say about that. Marketplace's Novo. SAPPHO, there. Thank you. The Salt Lake Tribune has announced that after one hundred and fifty years it'll stop printing a daily newspaper. There will be online and printed weekly instead, it's keeping its news staff but one hundred, sixty people who do printing and delivery will lose their jobs. The paper was purchased by the wealthy huntsmen family in two thousand sixteen and converted to a nonprofit last year competition from digital and the pandemic or being blamed. Home prices in the twenty biggest metro areas are up more than five percent in a year. That's very strong showing and especially striking during a pandemic prices in Phoenix or up nearly ten percent a year San Diego up seven point six percent Seattle up eight and a half percent. Note that this data is the year through August. Let's consult Jeffrey Cleveland the Chief Economist at the Investment Company Payden and Regal in Los Angeles. Up, we're seeing that in the case Schiller home price index sound we're all seeing. We're also seeing data in the housing sector up across the board and not just to pre cove it levels. David. But to pre great recession levels one, for example that we've seen the existing home sales date is the highest April of two, thousand and six. Long as nobody mentions pandemic and second wave, which is weighing down the stock market Italy's yesterday. Or fiscal stimulus or the lack thereof. Jeffrey Cleveland. Chief. Economist paid in Regal. Thank you so much have a great week. Some credit cards dangled travel perks American Express with its big annual fees is going for the stomach with money off on Uber eats marketplace's Justin Ho has more on cards during pandemic American Express Platinum card offers generous rewards for flights and hotel bookings. It also caused five hundred fifty dollars a year Robin Sax Frankel at Forbes Advisers says Amex end other card issuers are worried that people can't justify that fee when they're stuck at home you know everything is just come grinding to a halt for most people the Prestige Card from city, which costs four, hundred and ninety five. Dollars a year. Now let's user spin their travel credit on takeout in groceries chase increase the redemption value of rewards spent on food home improvement and more credit card issuers are trying to make their cards more enticing by offering benefits that are more closely aligned to how consumer spending today spending on everyday needs says, Matt Schulz with Linden, tree with delivery and takeout taking priority over dine in these days, issuers have had to adjust to where things are. Now Shield says the risk for credit card companies is if customers ended up canceling their cards, I'm Justin Ho for marketplace. This marketplace podcast is supported by we work as a business. You know today takes new ways of working in new measures toward health and safety flexible terms for where when and how you work spaces designed with your purpose. In mind it takes innovation of a we work office to take your business where you want it to be visit we dot co slash future to learn more. We've been monitoring meat packing plant hit hard by COVID critic say government health oversight has been lax. One place this is played out is in central Washington's Yakima Valley with packing plants, and they're mostly Latino Workers Cova led to production delays and health concerns led to strikes marketplace's Mitchell Hartman reports. Harvest is in full swing in the irrigated orchards of central Washington's prime apple growing region cosmic crispin. Grape. Varieties are still until mid November Mike. Gambler heads up the Washington growers. League and he says, it was a rough summer Yakima suffered the worst covert outbreak in the state workers went on strike over lack of PPI and crowded conditions. Gambler says growers had to reengineer. They're packing plants and slow down production to spread workers out along the lines. He says, plants are running full tilt now but costs are. Likely, up ten to fifteen percent, people just spent the money if they had it to stay in business because if they had an outbreak or if the state came in and inspected a full of violations, it shut them down the growers leak had to modify the housing. It runs for hundreds of mostly Latino X. Migrant farm workers and guestworkers. Gambler showed me around one dormitory surrounded by orchards near the Columbia River. Each floor has his twenty four workers. They share bathrooms, showers kitchen. Now with plastic partitions between the stoves using bunk beds really did not provide adequate separation. So bunk beds were disallowed cut our housing capacity in half Wendy Lopez runs the site and is also a city councillor in the small farm worker town of Madura. Just up the hill she says most residents are wearing masks and keeping distant now but the beginning it was a little bit hard. People didn't really believe that it was true and once you see like a family member get sick when the local priests to get sick that hit pretty hard and that's when people started. Getting serious in the wake of the summer strikes activists are trying to organize a union in the packing plants attorney island via Malone, is with Yakima based workers united for Justice in players now are giving masks, but they're all still working shoulder to shoulder the lines are super tough meaning that like they're throwing a lot a lot of fruit down the lines and she says Cova D- around and it's not really going away maybe it's gone down percentage wise but I'm still seeing people get sick and via Malone says many low wage immigrant workers can't afford or afraid to take time off when they feel sick I'm Mitchell Hartman for marketplace. By the way Latino is a gender neutral alternative for Latino Latina. I'm David. Brancaccio this is marketplace morning report. From Apm American. Public. Media. I'm Justin Ho with marketplace, the economy is changing so fast it's hard to keep up to our latest podcast is here to help it's called the marketplace minute gives us just sixty seconds and we'll bring you the latest on what's happening in the economy three times a day market updates business news in how the numbers of your personal economy. We'll tell you what you need to know why it matters. Just ask your smart speaker to play the marketplace minute for find it wherever you get your podcasts.
Sometimes let your conscience be your guide
"This marketplace podcast is brought to you by Sino an enterprise e signature solution create custom workflows and get documents like signed from any device, save thousands of dollars on paperwork closed deals up to four times faster and enjoy seamless integration. With the cloud platforms. You already use? Visit sign now dot com slash marketplace. And get a free thirty day trial and by alliance for lifetime income and organization dedicated to educating and raising awareness about how annuities Consol retirement income needs because income planning that includes protected monthly income solutions helps ensure you'll never outlive your money in retirement. Find out if making annuities of vital component of your portfolio is the right choice for you. Learn more at retire your risk dot org. Lower global growth. But should we really care all that much? In New York. I'm Sabri Benesch short in for David Brancaccio who's on assignment markets. Look like they're getting off to a sad start today. It may be related to the IMF lowering its forecast for global growth, citing sluggishness in Europe. Jeffrey Cleveland is chief economist at payden and regal. Good morning. Jeffrey, good morning, the IMF, downgraded global growth is hereby really just two tenths of a percent. It's not huge. And they didn't say that. There was anything majorly wrong with the US economy is this really that alarming. You know, not in my view. I don't think that is alarming. I mean, there's a joke that the use of decimal points, by communists proves that. They have a sense of humor. So you know on the margin. It's a little bit slower growth, and it was expected in the fall. But I mean, I think what probably is weighing most on markets is the list of risks to the future growth. So you've the tariff situation, unresolved Brexit unresolved the kind of weakness that we've seen out of Germany and Italy will that linger will it become more pronounced. So it's the ET uncertainty listed in the report that perhaps is having a bigger effect than the actual number change. Jeffrey Cleveland is chief economist with Peyton and regal. Thank you so much for speaking with us. My pleasure France, or specifically the French data protection authority has find Google the equivalent of fifty seven million dollars for violating new data privacy law adopted last year in Europe. This is the biggest fine yet. Under the rule known as GDP are the BBC's technology correspondent Rory. Kathleen Jones has more on this hierarchy high that so what was Google doing? Specifically that led to this fine. People use Google may get targeted ads based on data collected to personalize those ads and the regulators saying people are not sufficiently informed. Google hadn't attain clear consent to process data. They said basically there was information that people were given, but it was spread across several different documents. And people have had to go for an awful lot of steps to actually understand. What was going on? That wasn't good enough. It is clearly big fine in the biggest under the GP are the herbs new privacy law. But it's not really that big. If you compare it to other finds that have been imposed on Google from different. European regulators for example, over smartphone antitrust allegations that there was one point five billion dollars. You think Google is gonna feel this one of just five? Fifty-seven million? I mean, not to be a huge fine for it to really rock Google. But I think it's the reputational damage that this does these are very big fines compared with what was possible before. This new law came in the fines, then were were pretty poultry. So is being touted as a record. And I think it will worry goop because they and other big technology companies looked at this new law thought that they prepared for it years in advance, and it now appears they didn't prepare well enough. Is there a basic incompatibility between Europe's new privacy laws, and the basic business model of some of these large companies like Google, I mean are they threatened in any material way by these laws year or so ago when when this was being mooted there was a big pushback, particularly from American companies saying this will make it impossible for us to operate in Europe, the mood is change because frankly of the revelations about. Facebook status scandals and companies have beginning to say we're going to have to work with this. And indeed the European days. Low may turn out to be a template for others around the world, particularly in the in the United States, Rory. Kathleen Jones is the BBC's technology. Correspondent thank you so much for speaking with us. Thank you. That's marketplace podcast is brought to you by with Sabi. Hot cloud storage. If your company's thinking about moving data storage to the cloud, check out the company. That's rethinking cloud storage with Sabi is less expensive than just the maintenance on your current on premises storage. Plus, it's eighty percent cheaper and six times faster than Amazon S three with no egress fees. Experience. It for yourself with free unlimited storage for a month. Go to Asaba dot com. Click free trial and use the offer code with Sabi there is investing in. Then there's what you might call moral investing. Maybe you don't want to invest in fossil fuels or maybe you don't want your money to go into some country whose policies you disagree with. Well, the word for this is SR is sustainable responsible and impact investing, and it has risen thirty eight percent in the past two years a quarter of all US investment falls into this category. According to the forum for sustainable and responsible investment. Lisa wall is CEO there and joins us. Good morning. Thanks for having me today. What are people's issues? What are they so concerned about that? They are letting it director money the way that I think about sustainable investment is so many consumers look at what they buy and its impact on sweatshops, and, you know, their efforts to recycle and buy hybrids and organics it's all about how do you use your ability as a consumer to force companies to kinda Dopp as practice investment is kind of the flip side of that coin. It's another opportunity for retail, investors and high net worth investors and institutional investors to use their investment dollars to address important environmental social governance issues. There must be a trade-off somehow. Right. I mean, if you're doing anything that is not put my money where it will grow the fastest by definition. There must be a trade off. Well, there really isn't you know, at any given moment. All investors have to use some do Diller. Agence, and what we found, and what data has found is that looking at risks actually helps make a better investment because you're looking at getting rid of practices and policies that could put a company endanger just think about Volkswagen and their emission som-, which I just had to sell my car back. You know, that's a major governance risk right there. Right. If an investor had known about that, they probably would have thought differently about investing in Volkswagen. Is there any evidence that this kind of pressure causes companies to change their behavior, or if it's on a particular issue like climate or get more green or some or would a political actor change its behavior. Absolutely. We did a report several years ago called the impact of sustainable and responsible investment. There's an entire chapter on how shareholder engagement has changed the way companies do business because the reality is you can bring a successful proposal about what you want to be able to do is two or three years out. See how? How how policies have changed? And so on issues like say on pace and executive pay diversity trying to put more women on boards. We've seen big changes in companies. And we think it's been an incredibly important way to influence companies and management to be better actors. Lisa wall, CEO of US Sieff, the forum for sustainable and responsible investment. Thanks so much. Thank you in New York. I'm Sabrina sure. With the marketplace morning report. From A P, m American public media. This marketplace podcast is brought to you by the United States postal service. Every day. We talk about how innovative companies are reinventing the way business happens. But none of that's possible without the right people to enable it people who get packages to over one hundred and fifty million delivery points affordably and on time with the latest technology and expertise. So who can help you deliver the future of commerce, the United States postal service? See why they deliver more ecommerce packages to homes than anyone in the country at USPS dot com slash future.
The other BTS craze
"This marketplace podcast is brought to you by indeed. Are you hiring with indeed. You can post a job in minutes set up screener questions than zero in on your shortlist qualified candidates using an online dashboard and get started today and indeed dot com slash marketplace. That's indeed dot com slash marketplace and by reset retirement. Are you tired of the same old retirement advice. That's difficult to follow and makes you feel worse about saving listen to reset retirement a new podcast the chairs real stories of retirement here from people of all ages about what it's like to save a a system that only works for the privileged few learn how we can create a system that works for real people listen at subscribe to reset retirement today available wherever you get your podcasts stock prices turned back up to start the trading day. I'm david brancaccio in new york after the deepest surged downward on u._s. Stock markets this year. The dow fell seven hundred sixty seven points two point nine percent on monday. Let's see where things stand on this tuesday. The dow jones industrial average just up one hundred forty points five tenths percent the s&p five hundred up six tenths percent. The nasdaq is up just under one percent the benchmark for u._s. Interest rates the ten year yield. The yield is up at one point seven six percent but why given trade dens given the u._s. labeling china as an official currency manipulator why our stock stock prices up david the answer is seven. It's it's really the answer to everything. Apparently the meaning of life in fact <hes> the number seven jeffrey cleveland is chief economist at they then wriggle in los angeles the central bank fixed the arm be exchange rate just below seven at the last fixing so six point nine and and change and that level by the global financial markets is seen as very important line in the sand if if you will <hes> slipping above seven was a weaker chinese currency which was viewed yesterday by some to be assigned that the global trade trade war is accelerating so a little less uncertainty this morning for those trying to make buying decisions but still a lot of uncertainty out there. I mean there's still trade war well. I think the message is at the people's bank of china stepped in and is willing to put a floor under the currency to keep heap. It's stronger than it otherwise would be that sent a strong signal to global investors that perhaps you know we're not going to be in this accelerating trade war. There'll be at least a momentary truce. If you will our jeffrey cleveland he's a senior economist at payden and regal in los angeles. Thank you have a good day so the fix or the goal for the yuan or r. n. B. or renminbi has been placed at just under seven to the dollar yet. Its value has drifted lower on markets a u._s. Dollar cost seven point zero two yuan at the moment now back to the u._s. Treasury designating china currency manipulator. That's the administration's view. Let's consult salts c fred bergsten the founding director of the peterson institute for international economics dr brixton good morning good morning so there we have it in the u._s. View china is now officially a currency manipulator. You're an expert on such things is china manipulating. Its currency to get a trade advantage or to counteract u._s. Tariffs harris or something no china is not manipulating. It's currency market. Forces are pushing the chinese currency down. China china has been hit by the u._s. Tariffs weakening its economy weakening straight balance and then as always happens market forces bush is currency down the white house chief economic adviser. Larry cudlow said a little over a week ago. He said the u._s. is not going to start pushing down on the u._s. Dollar now that was then you think that is a rising possibility now some folks including the president reportedly would like to push the our down the response to that has been a. There's really no way effectively. Do it and be if you tried to do it. You'd be operating against against the huge forces of the private markets. Now we can hear this in your voice. You don't like currency manipulation whether or not it's happening on china's side whether or not we're considering considering it on the u._s. Side what are you worried about. I hate currency manipulation and it's very disruptive to the world economy. China china was a massive manipulator for about ten years but they stopped about five or six years ago and you think introduces distortions that <hes> <hes> that are harmful to the world economy. The whole idea of flexible exchange rates is for currencies to reflect underlying economic values and economic fundamentals when you intervene or manipulate or try to distort it as administration is now doing you disrupt all that in the current context you're exacerbating the trade wars which have already distorted the world economy the big way by introducing juicing government interventions new new trade controls <hes> new investment controls all that is beginning to badly distort the world economy economy. That's what's got the markets and economic forecasters so on edge c fred bergsten is the founding director of the peterson institute for international economics. Thank you very much my pleasure and in the last hour of the president's economic adviser kudlow told reporters several things including that the administration quote cannot cannot tolerate depreciation of the yuan but he also said the administration is not currently considering any other steps regarding china's currency moves it. This marketplace podcast cast is brought to you by indeed when it comes to hiring. You don't have time to waste. You need help getting your shortlist qualified candidates fast. That's why you need indeed. Dot com post a job in minutes. It's set up screener questions than zero in qualified candidates using an intuitive online dashboard and when you need to hire fast accelerate your results with sponsored jobs new users can try for free the at indeed dot com slash marketplace. That's indeed dot com slash marketplace terms conditions and quality standards apply back to school. Shopping is happening whether the school school district is one of those early august start ones or post labor day. Ones you know from all the ads that money is changing hands but listen to the scale families spent twenty eight billion billion dollars on this kind of stuff and online back to school shopping was up fourteen percent last year marketplace's erica. Has that one big reason for the growth in online on sales amazon prime day. July's says andrew lipson with emarketer amazon is really leaning into the full season and ramping up a lot of their marketing marketing and advertising efforts ads like this one full of kids and backpacks and all the stuff that goes in them and parents are clicking king says roadsides retail analyst with deloitte. I think a lot of it comes back to convenience consumers looking to save time but lost in the clicking the big shopping trip. Alan adamson is a business professor at n._y._u. It does diminish the experiential dimension which is an important part of getting kids out of the beach mode and into the classroom mode so parents may still parcel out what they buy online like school supplies and what they buy in store store that all important first day outfit america barris for marketplace the ride service zuber and lift report quarterly results tomorrow with both companies companies struggling to impress investors since they became publicly traded stocks marketplace tech hosts mali would is here with some insights. It's hard to even imagine that uber can accomplish bush. The kind of growth that investors are going to want or that. We might usually see from a company. That's recently gone public and in fact the way it's getting to growth on the ride side died which is its core. Business is to spend a lot of money on promotions discounts and incentives to get drivers to sign up and sticking with uber for a minute it is is a big sprawling company with lots of other elements like uber eats uber freight. Lift is a little more focused on rides. It's increased prices for riders so it's not so oh reliant on big discounts for growth but of course in the midst of this conversation about labor in the tech economy drivers are still uber and lifts biggest costs by far are and that means that if more worker protections get past for gig workers that could really increase the cost for these companies marketplace tech host molly wood and a university of north carolina journalism professor penny abernathy calculates that twenty one hundred newspapers have shut down in america in the last fifteen years. That's the backdrop for this merger. Mergers story gatehouse media located outside rochester new york is merging with gannett the virginia based publisher of u._s._a. Today together they become the publisher of the most newspapers newspapers in america about two hundred sixty of them coast to coast in new york. I'm david brancaccio with the marketplace morning report from a._p._m. American public media.
Moonshine enters the mainstream
"This. Marketplace podcast is brought to you by aqua. The open source digital experience company. Brands, often struggled to find a comprehensive solution to power their troop websites and applications aqueous platform. Abel's you to build operate in optimize at scale as the open source leader. Aqua gives customers around the world the freedom to build tomorrow on their terms. Learn more aqua dot com and by alliance for lifetime income an organization dedicated to educating and raising awareness about how nudity Consol retirement income needs because income planning that includes protected monthly income solutions helps ensure you'll never outlive your money in retirement. Find out if making it's vital component of your portfolio is the right choice for you. Learn more at retire your risk dot org. Markets might just be shutting their pessimism in New York. I'm Sabrina short in for David Brancaccio. Markets are looking up in our way up compared with the start of the first quarterback in January, the S and P five hundred for example, is up fifteen percent since the start of January. Jeffrey Cleveland is chief economist at payden and regal good morning. Good morning. So you've said the pessimism with which markets entered this first quarter of two thousand nineteen was overdone. Why there's been a lot of concern not only about slower US growth, but slower European growth and a global slowdown. But I think perhaps we're getting news. That's the first quarter wasn't as bad as everyone thought. And so that as a tendency to make investors upgrade their narratives, the head of the F over the weekend said that the global economy is in a delicate position this was after they downgraded their current estimates for growth in two thousand eighteen and. And also said that things would pick up at the end of the year. Would you not agree we've seen global data flow over the last six to nine months, and I think the s economic growth forecast is has followed that monthly PM? I'd ADA, but in the last couple of weeks, we've actually seen better services and my readings out of Europe in places like Italy and Spain, and so we're seeing hints that perhaps the the global economy is bottoming, and we'll pick up over the rest of the year Cleveland chief economist with payden and regal. Thanks very much. Thank you. We got US industrial production data out just a few moments ago. This is a measure of industrial output in the US at fell point one percent in March but had been expected to rise slightly still it's up about three percent from last year. And without let us do the numbers. The Dow Jones industrial average is up one hundred and forty points. That is a half a percent, the S and P five hundred is up three tenths of percent. The NASDAQ also up three tenths of a percent in the ten year treasury treasury yield is it two point five seven percent. Bank of America reported a better than expected rise in quarterly profit this morning. The Bank said loans to consumers rose three percent and loans to businesses rose four percent in the first quarter that plus cost cutting the Bank said made up for a drop in revenue from investment banking. It has been a rough decade for shopping malls. They don't call it the retail apocalypse for nothing department stores lost almost a half a million jobs between two thousand two and two thousand seventeen. For example, some malls have tried hard to lure customers off their phones and computers and into shopping centers by offering what's known as experiential shopping. Well, bad news that strategy doesn't seem to be working all that. Well, marketplace's Ben Bradford has more. Come the grove in. Los Angeles is the kind of shopping center that draws street performers and tourists we've heard of it. I heard of it from extra. I think they used to film here. Whatever Thomas vodka, Nick and Jenny ca south stopped by on a trip from New Mexico to visit a reality TV stars jewelry store. Kristen cavalry's pop up shop malls used to rely on huge department stores, but they're struggling so many malls are now trying to be more like the grove drawing customers with experiences particularly high end interactive shops like apple stores and Italian marketplace easily. So how's that strategy working the data? It's not John Collins with data analytics firm Thassos has a new study. That finds these malls aren't getting noticeably more visitors. I think we may not have found the right mix of experience tends yet over he suggests the typical shopping mall may have to do more after all. All most still lacked the groves trolley and dancing fountain. I'm Ben Bradford for marketplace. James in Bridgewater. New Jersey wrote to express his appreciation for the way that marketplace presents business and economic news at the every man and every woman level and offers insights, not provided by other news outlets. Now if you agree with James, please join him as a marketplace investor by donating online at marketplace dot ORG. Thanks to James, and everyone who makes our work possible. This. Marketplace podcast is brought to you by with Sabi. Hot cloud storage, thinking about moving your data storage to the cloud was obvious enterprise. Class cloud storage at one fifth the price of Amazon S three and up to six times faster with no hidden fees for egress or a p requests was obvious low cost high speed fully secure storage blows away the competition, including Google and Microsoft disruption starts here. Do the math for yourself and start a free trial. I was Sabi dot com. Who ruckus juice white lightning? Tiger spit moonshine has many names, it is known for being strong and illegal and days gone by but today distillers are making it legally and Irena jor of reports that marketing it can get personal Brian call is the seventh generation distiller. He makes his moonshine totally legally in a warehouse in wilkspur, North Carolina. It's open to the public a family recipe of moonshine starter fizzes in huge wooden vats. They look like one thousand gallon hot tubs. So what's in? Here. We go corn Lille barley mall crack, we a little boost should. Yep. What he'd done? My might mine Shah. His dad was a bootlegger he made hooch in the woods a lot of jobs around here. Wiltz county has that story is as important as the recipe, and that's true for a lot of legal moonshine producers, the packaging and sit and selling moonshine really depends upon a selling of kind of a narrative author Matt Bonder wrote the wettest county in the world about his own family's moon shining passed a rebellious outlaw distinctly southern figure Bandra and says the narrative is especially important because moonshine is not likely to impress you. When you first taste it. What you've got is just an extremely high content corn whiskey with a very sort of flat flavor. Profile smells, just like rotten corn and inva- burn. You all the way down. There's not a whole lot going for it in the past decade. The number of moonshine brands and flavors has grown rapidly nationwide. The amount of shine. Sold is about sixteen times what it was a decade ago. You see it lined up on store. Shelves often an old timey square, Mason jars or jugs with little handles and labels printed with ramshackle homesteads on the call family label the patriarchs face looks back at you. Bryan, calls wife, Laura takes it a step further. She tells his story during moonshine tastings by love heaven, a family member, give them a tour and talk about it. She's hung up. Her father-in-law's overalls by the entrance and park. The handsome cars he holds shining out back to see the actual moonshine cars is very thrill in for people because you know, moonshine even when people still sit the moonshine it's almost like a we're doing something. We shouldn't be doing visitors can also take their own mug shots with the backdrop she printed as the moonshine market matures some brands have corporate backing and celebrity sponsors. Call says, what her distillery has is a real. Story of humble family members that brand moonshine to make ends meets I'm arena Giora for marketplace. Story. First aired on the gravy podcast production of the southern food ways. Alliance. I'm Sabrina short with the marketplace morning report. From A P, m American public media.
Stock market investors try to look beyond the pandemic
"This marketplace podcast is supported by and global market intelligence delivering the essential environmental social and corporate governance intelligence firms need to pinpoint risks build resilience and find new opportunities in the transition to a low-carbon sustainable future. Smp global market intelligence see what matters and bhai equity multiple a modern real estate investing platform for the self directed investor join thousands of individual investors across the country who are creating stronger more diversified portfolios with commercial real estate invest in professionally managed rigorously vetted assets received cash distributions direct to your bank account visit equity multiple dot com and get started with as little as ten thousand dollars when stock market investors. Try to look beyond pandemic. i'm david brancaccio. Some referred to it as the pandemic trade buying stocks of companies likely to do well during this cove life amazon with its shop from home. Zoom with its business meeting in schooling from home but some big money has been shifting this week with a view to a hoped-for world that is less bound up by covid marketplace's nova safa reports. It took a glimpse of hope coming from pfizer announcing its covid vaccine is showing ninety percent efficacy to send investors back to stocks. They've been largely avoiding travel and oil companies commercial retail firms. Their stock price declines have made them attractive to some investors. Yesterday they started buying shares in the cruise operator. Carnival rose almost forty percent shopping mall and office building owners saw gains in the thirty percent. Range conversely stay at home stocks slid bike purveyor. Polygon fell twenty percent zoom. Yes that one. Lost seventeen percent and a lot of big tech firms apple netflix's microsoft and amazon suffered losses. I'm nova safa for marketplace. Turning to jeffrey cleveland the chief economist at the investment firm payden and regal in los angeles. Good morning. good morning david. So are you looking forward to the post. Covid future here or is this a little premature. Well david giving the events of the last several weeks. I think we should just pause and soak up the optimism for a second. So i think it's It's good that there are some light at the end of the tunnel for for the world and for investors with regard to this pandemic. You'd think you'd see that more in interest rates which if happy days are soon to be here again in terms of the covert economy They would be higher. They are a bit higher. I think interest rates and in particular. The ten year treasury yield might be the barometer to watch a treasury yields rose sharply yesterday but the ten year yield has been below one percent more or less the entire time since tom hanks announced his but nineteen positive test back in march so low interest rates have been a key driver of a lot of investment decisions. If you think about it. Investors were convinced rates would stay low for a long long period of time so they were going around the world looking for yield or they were buying up momentum growth stocks because that's where they felt there was Some upside gain for them. So keep an eye on ten year yield still below one percent but creeping higher jeffrey cleveland chief economist paid in regal the investment firm. Thank you so much week This marketplace podcast disappointed by smp global market intelligence climate change is increasingly visible and disruptive yet for most corporations financial institutions. Climate risk is a blind spot. Smp global climate intelligence helps firms uncover the future physical impacts of climate change on global business operations supply chains and multi asset investment portfolios revealing new market opportunities to help you get ahead in the low carbon transition. Smp global market intelligence as global dot com slash market intelligence. See what matters as of yesterday. The number of confirmed covid cases in america surpassed ten million rest on that for a second which brings us back to the scientific nationwide survey. We did in the weeks. Prior to the election among the many findings was this showstopper. We asked people how much they worried about. Covid nineteen a little or not at all the marketplace edison research poll found that seventeen percent of people said they don't worry about the virus. At all marketplace's kristen schwab spoke to people who feel this way. Gina in southside tennessee is starting to avoid her. Tv especially the news. Sometimes i hear it. And i just turn it because it's just like okay. Get over it already. She means get over covid like every day all day. That's what you hear. Huffing admits she's a bit of a media skeptic though she's not a virus skeptic she wears a mask in public and takes precautions at work but she says she's relaxed a lot. She's even traveled to visit her kids. She's not so worried anymore. I guess faith is reason. I feel that way if god wants me. He's taking me like huff. Lots of people are finding ways to cope and worry a little less about the virus because after months of information overload closings and reopenings a recession and so much death covid nineteen has given way to covid. Fatigue says shannon sue. She's a health. Sciences professor at uc davis and it speaks to an issue with human physiology that we can only stay on alert for so long and these sort of poop out suo says at the beginning of the pandemic people were running on adrenaline. Hyper aware of anything. That could put them at risk. But we're not wired to stay in a state of fight or flight for this long so the complacency is real but the complacency is dangerous and the key to this is moderation because this is a marathon arguably it's an ultra marathon. Suo says it's important to stay. Vigilant about the key things masks handwashing and social distancing tony burdette who's sixty four and lives in sealy texas. Has that down. We will outside mask on wash our hands. we got all the chemicals and everything else loves. We didn't go around people that we felt. Were taking chances. Burdett and his wife have formed a social bubble with friends and he says he's not worried about getting the virus even though he knows seven people who've died from it because he says he knows more now about how to protect himself than he did in march plus. He's armed with something. He says he picked up during his military career I've learned to have patience and given where things are headed. He's going to need it. I'm kristen schwab for marketplace and listen to all the brands that are really corporation in disguise. Dicky's timberland the north face. Not just in sport but also east pack and more now. Vf will also be the skateboarder brand. Supreme pf is paying two point one billion dollars for supreme which started in a small new york skate shop now. Vf started as pennsylvania's reading glove and mitten manufacturing company in the eighteen nineties. The things you learn on public radio. I'm david brancaccio. Marketplace morning report from apm american public media wnba. Legend subert spent a decade playing basketball abroad in russia. The life of a woman's basketball player is juggling playing in the wnba and going overseas as well. Because that's where you can get a lot of money just to be blunt. I'm afraid as host of the marketplace podcast. This is uncomfortable this week on the show. We talked to wnba players about their fight. Not only for better pay. But for social justice. The new episode drops thursday. Wherever you get your podcasts.
On a dream, undeterred
"This marketplace podcast is brought to you by four x dot com committed to empowering and helping traders seize opportunities and the foreign exchange markets learn more at four x dot com four x dot com. It's your world trade it for X.. Trading involves significant risk of loss and by the Michigan Economic Development Corporation. Evan Lyle Rush Jenner. Prizes is a big fan of Michigan as he put it the future of mobility is going to be decided right here in the state visit planet Dot Com to find out why that's p. l. a. n. net 'em dot com the daca immigration cases before the Supreme Court. Today I'm David Brancaccio in New York. These Supreme Court today. We'll hear oral arguments in a case that some parties argue could have a significant economic impact. It's about whether eligible children of people who came to the US ece legally can stay. The trump administration declared what's called the DACA program illegal if that position is upheld about seven hundred thousand people who grew up in the US S. could be deported Washington Post reporter Robert. Barnes has been following this case Mr Barnes. Thanks for joining us. Pleasure many of the briefs filed in this case. UH support keeping the DACA rules in place but a lot of those briefs. Don't really turn on issues of law do they. They don't you know it's a it's a strange case and outweigh. The trump administration is trying to end this program and yet he has sent very mixed signals. He says that you know no one wants to deport art. All of these. Hundreds of thousands of young people You know by very definition they only Can Be eligible for this program breath. They are been in the country for a while if they have committed no serious crimes. Ninety percent of them are employed. Nearly fifty percent percent of them are students and yet There is been no action by Congress by the White House that they could agree. Agree on to come up with a permanent solution for this problem. So have briefs in support of keeping the DACA rules in place from places like the the Tech Company. Microsoft saying we employ scores of Dhaka people. Yeah Microsoft says that it has sixty six employees who are talk recipients scipion and that they wanNA keep them there is another brief From hundred and forty businesses both large and small saying these are our our employees. We don't want to lose them And also that they are not taking jobs that Americans might fill but that they or jobs that would go unfilled if they weren't there to do them and implied or maybe specific in some cases is there will be economic harm to the United States. If the DACA rules rules are replaced in these circumstances does the Supreme Court respond to economic arguments. And it's not the Federal Reserve after all the argument here is is that the trump administration didn't come up with the proper legal reasoning for getting rid of this program. It didn't say why I now was the time to end it. What harm to the country would come from this and so what lower courts have found is? It's not enough enough to say that this program is unlawful. You have to have some sort of reasons that courts and the public can examine or else getting rid of it is arbitrary and capricious. We'll see what happens as this case evolves Washington Post reporter. Robert Barnes. Thank thank you my pleasure. Thanks for having me much of the anxiety about the declining health of the global economy. This summer was focused on Germany where the economy had been contracting today. A key index of the sentiment of investors in Germany stopped its precipitous decline. It's the zoo. Surveys Spelled Z.. W. I I just spoke to Jeffrey Cleveland. The chief economist at Payden and Regal in Los Angeles sentiment out of Germany improved Pretty much to a six-month high. Hi So have you asked German investors how they expect the economy and various other indicators to shape up over the next six months or so the optimistic stick Members of the survey have grown in number. If you will and news looking pretty bad there say August August was particularly bad bad reading. And you know that that is coincident with Stock Market Sell Offs Globally and also a huge swoon in global government bond yield in a few hours. President trump will be speaking at the Economic Club of New York. We know he wants to talk about tariffs and trade. I assume you'll be monitoring. Well David we We'll have to watch. It could be market moving. We just don't know what he's going to say so theme there. Jeffrey Cleveland Chief Economist. PAYDEN and Regal. Thank you so much aggregrate week. This marketplace podcast is supported by bear. When we challenge what hasn't been done we discover? The science is behind. What's yet to come? That's what drives bear to find even better answers to today's best agriculture solutions. They're working with farmers to shape. What's next farms? were all life goes together crops that can help raise communities out of poverty tools that help plants and farmers use less water bear science for a better life. Regulators in New York are investigating the new Apple Goldman Sachs credit card to see if it favors men over women. This after some husbands noted the card gave their wives much smaller color credit lines even if their scores were as good or better critics. Say This is just the latest example of bias in the algorithms that power so many financial decisions. Marketplace's Amy Scott looks at the case of mortgage lending even when you sit down with a banker and person algorithms still likely affect whether you get a mortgage and how much interest you'll pay. Adair Morris is a professor at UC Berkeley and studies the bias in those algorithms. She says they may thousands of variables including where you went to school. So the name of your high school is correlated with wealth but it may over penalized particular ethnic groups particular racial groups. Moore's found that discrimination nation directly from people but also from those computer models costs African Americans and Latinos an extra seven hundred sixty five million dollars a year in interest interest Nikita. Bailey is executive vice president with the Center for responsible lending what these studies tell us that algorithms are not immune from discriminatory are- actions or create and clearly discriminatory outcomes. The good news. More senator colleagues found that lenders using just algorithms discriminate forty eighty percent less than loan officers who make decisions face to face. I'm Amy Scott for marketplace and attention model airplane and Wind Turbine Linux enthusiasts the Financial Times. Today's reporting on a shortage of lightweight Balsa wood prices doubling in the last year these a lot of lightweight Balsa inside the huge each blades of wind generators and there are a lot of wind turbines coming online in New York. I'm David Brancaccio with the marketplace morning report from A._P._M.. American public media.
How far a vaccine executive order could actually go
"This marketplace podcast is sponsored by merrill with merrill guided investing. You have the option to work with an adviser at a low cost and minimum get started at merrill edge dot com slash investing goals merrill lynch pierce fenner and smith inc. older registered broker dealer and investment advisor members. Sipc this marketplace. Podcast is supported by. We work today. Takes new ways of working new measures toward health and safety flexible terms for how you work spaces designed with your purpose. It takes so we work office to take your business where you wanted to be we work. That's how tomorrow works visit. We work dot com slash tomorrow. New data on what income inequality takes from people's paychecks. I'm david brancaccio. President trump is expected to sign an executive order today directing federal agencies to prioritize vaccines to americans over people from other countries at a time that available doses will be limited but there are questions about the practical effect of this marketplace's nova sappho is here. President trump is expected to sign the order during a white house summit today being held to explain vaccine distribution plans per one official the order would lead federal agencies to develop guidelines for when they can help other countries get vaccines after demand in the. Us is met. That's not expected to happen soon. Pfizer's vaccine is first to the finish line. The fda expected to granted emergency use authorization as early as the end of this week but pfizer is having supply chain issues. David it says it will have enough vaccine only for twenty five million people globally by the end of this year and vaccine companies already did their contracts with various countries kanter presidential order. Do much while. There's conjecture as to whether this is more of a symbolic measure. The manufacturing process is faster for modern marini based vaccines such as the ones madeira and pfizer have developed so the us has deals for one hundred million doses from both companies. That will come at some point. The timeline stretches next year remember. We also have logistical challenges. So that's all coming probably sometime by mid next summer is what. Us officials are expecting thanking of pfizer. Stock is up eight tenths of a percent with news this morning from the fda that the pfizer beyond tech vaccine human testing data has met the criteria for success as nova mentioned formal approval for this. First of the vaccines could come late this week. Beyond tech's stock is up about two percent yet. The dow is down a bit thirty points. Tenth percent the s. and p. Five hundred down two tenths percent. The nasdaq down three tenths percent. A cautious stance makes some sense here. The chief economist at the investment company paid in regal. Jeffrey cleveland sees it this way. I think there are a lot of things to worry about david. Chief among them the lack of progress out of washington on additional fiscal stimulus. I don't think the market likes that. There's concerns across the pond with regards to the brexit. Negotiations does have some looming uncertainty here in a week. Which as you know is the week after the all important jobs report and generally speaking. That's a week of light or lighter. Economic data that doesn't give us a real clear signal either so markets here. A bit of a holding pattern economists. Jeffrey cleveland this. Marketplace podcast is supported by global market intelligence. Climate change is increasingly visible and disruptive yet for most corporations and financial institutions. Climate risk is a blind spot. Smp global climate intelligence helps firms uncover the future physical impacts of climate change on global business operations supply chains and multi asset investment portfolios revealing new market opportunities to help you get ahead in the low carbon transition as global market intelligence as global dot com slash market intelligence. See what matters. Pandemic cocooning is produced a golden age for video game companies but with people downloading games instead of buying a little boxes. What does that mean for retailers. Like gain stop which reports. It's quarterly results. Today here's andy euler. More and more buying a new video game is kinda like renting or buying a movie on your tv wanna title comes out. You can download it to your console and play it immediately. But michael packer wedbush securities says. There are still a lot of people who buy the physical product. Some people actually don't have internet access on their consoles having a basement or attic. Some people like to Give their disarray. When they're done some people like to take them to their friends house and play with their friends and some people sell games back to game. Stop to recoup some cost us fan drinan at nyu says stores like game stop. Have benefited from being kind of showroom for new consoles new games which publishers and manufacturers love but he says that model is getting old. If you continue to pretend that the internet isn't a real components to the business and a class where people learn about content and emily try it and want to spend on it. You're going to see your business model shrink. He says game manufacturers are now equipping their systems with more memory so the players can download new titles and bypass the store. I made for marketplace. Today we're talking to a rand. Corporation mathematician who crunched the inequality numbers and found that the typical or median full-time worker is getting short by forty two thousand dollars a year. As the most affluent thrived since the mid nineteen seventies. think the decline of unions. Think but now one of the people who funded this rand research. Nick hanauer is a venture capitalist and entrepreneur turned progressive campaigner. I mean i think the study is really transformational because for the first time we can sort of see what happened to working people at every level of the economy from the very bottom to the very top and the median. Full-time worker in america today earns about fifty thousand dollars a year. If they had been held harmless by the last forty five years of liberal economic policy they would earn between ninety two and one hundred thousand dollars a year. I think that gap is the most important socio economic fact of our time because it explains not every pathology in our society but a huge proportion of them from our budget deficits to our surreally polarized politics. If income inequality had not widen starting in the mid nineteen seventies. someone who brings in fifty thousand a year now would be making almost double correct. We basically went from a society where one earner could support a family to a society where to earners are required to support a family but for the majority of citizens we doubled the number of earners in the in the households but went economically backwards right and the other really shocking thing about the data is that even if you're earning a hundred and thirty three thousand dollars a year instead of earning one hundred thirty three year during one hundred sixty eight thousand literally. The only people who won over the last forty years are people largely in the top one percent one tenth of one percent one one hundred percent. Everybody fell behind except the richest which explains why everyone is so angry. Are your venture capitalists. What happened to you. why are you talking this way. The wealth of the country is is increasingly captured by tiny minority of people at the very tippy top including myself. It's just absolutely mathematically certain that the society will collapse economically and it will collapse politically and it will collapse civically. If we are not prepared to address this problem at the scale of the problem no one has a bigger stake in our future success than people like me like. I would like to live in a high functioning society where everyone is thriving. It's just good for business nick. Hanauer venture capitalist entrepreneur. And host of the podcast pitchfork economics. Thank you very much super fun to be here. Thank you david. Among remedies a higher minimum wage is often mentioned right and less talked about hanauer says making more people eligible for overtime pay could have a bigger effect than you might think. Raising compensation or encouraging employers to hire more people reimagining. The economy is our ongoing. Look at ways to go beyond repairing what the pandemic has done to the economy. Our coverage is collecting it marketplace dot. Org i'm david brancaccio. This is marketplace morning report from apm american public media as a marketplace listener. You already make fact based independent journalism part of your daily routine now bring even more marketplace into your everyday with our new liquid assets mug. Get it yours today when you donate just sixty dollars or five dollars a month sip from your new mug with the satisfaction of knowing that you have helped sustain the nonprofit news that you rely on give now if you could marketplace dot org slash donate.
How the pandemic is creating an odd boom in real estate
"This marketplace podcast is supported by MD Anderson Cancer Center offering lymphoma patients groundbreaking clinical trials like Kay, therapy in pursuit of making cancer history MD Anderson will do whatever it takes more at MD Anderson Lymphoma. Dot Com. Hey. It's Kim host of million zillion the new podcast for kids from marketplace and brains on. Talking about money can be tough, which is why we're here to answer all the weird and awkward questions that you and your kids have about money and don't worry. We keep it fun. Wasn't a million Brazilian a show that helps dollars make more sense subscribe wherever you get your podcasts. The pandemic is creating this odd boom in real estate. I'm David Brancaccio people lucky enough to keep their jobs during this pandemic seemed to be pondering their living situations a lot. The quarterly sales reporter by home. Depot today were up twenty five percent year-on-year increase double what was expected, and there's news that builders started work on a lot of new single family homes. Last month up twenty three percent Jeffrey Cleveland is the chief economist at the Investment Company Payden and Regal in Los. Angeles Good Morning Good Morning, David I mean you look at this new home data and you want a statistic. Leading Economic Indicators. Which sometimes, it is during normal times. But how much can we draw about the wider economy? What kind of conclusions can we draw about the wider economy based on construction of new homes? The reason why that tells us a lot about the economy is because housing is tied in to the web of the economy. So you know intimately there's employment they're spending the goes into a new home activity, and so you tend to see good sales data as well. I think in part that's why we are seeing retail sales bounce in recent months in sympathy with the housing data. Also things like spending at Home Depot, which we're hearing was topping expectations here for the second quarter. There's an inequality angle though because if you're have the wherewithal during pandemic to think about buying a new house so that the developers get all excited about building new homes. I mean, that's some people in this economy, but others are renters and the living more tenuously. WELL WE S-. We saw yesterday data on mortgage delinquencies switcher starting to creep up. But I am worried David that one of the things fueling all this. It's made this recession unique is the federal. Relief payments that went out really through the months of April May June July big chunk of that ended in. July and as yet it's unclear how or when that will be extended and I and I think that you know leaves question marks for the durability of this recovery. Jeffrey Cleveland at Payden and Regal in Los Angeles Chief Economist there. Thank you. My pleasure. Sales at Walmart stores were up nine percent last quarter and online sales doubled their the fact that new government economic stimulus is taking a long time to come together could hurt results ahead that stock is down four tenths percent now. Just in Ho with marketplace, the economy is changing so fast it's hard to keep up. So our latest podcast is here to help it's called the marketplace minute give us just sixty seconds and we'll bring you the latest on what's happening in the economy three times a day market updates business news in hell the numbers affected your personal economy. We'll tell you what you need to know and why it matters just ask your smart speaker to play the marketplace minute or wherever you get your podcasts. We continue to talk to a range of people about reimagining the economy to get the economy. We want not just the one we had Mara Yen is a professor of management at the Wharton School and author of a new book with the Title Twenty Thirty out today's biggest trends will collide and reshape the future of everything. Thanks for joining us. Thank you for having me. David. Is there a case that the range of focus on economic policies has widened in this year of pandemic and the new energy we're seeing in the Social Justice Movement? Yes. Absolutely I think there's more people not just experts, but just in general more people willing to consider. You know the government's growing it's mountain of debt in order to save the economy. I think there's also more of an understanding about the role that the Federal Reserve Place in terms of implementing very loose monetary policy, and I also believe that there is a renewed interest in schemes such as universal basic income. This notion of universal basic income in Alaska had version of it with proceeds from the states oil revenues. It's been talked about as one way to address when technology takes the jobs of human beings away but. Typically. We're talking about it in a theoretical sense yet. There is one now the twelve hundred dollar checks government sent out too many Americans that's universal basic income temporary, but there is. Yes, absolutely a universal payment in this universal meaning for people under a certain income and I think the idea off Let me drop the universal power. For moment basic income is really good. You see the Alaska experimented with the oil royalties I think problematic because everyone regardless of their income or wealth gets that check in Alaska sometimes he can be as high as one, thousand, six, hundred dollars for the year you see real people then. Save that money but people at the lower end of the economic scale? What they do is spend the money. So he tends to broaden inequality in the longer term but I do believe that because of the problems that you pointed out kicking the logical employment I think perhaps this is an idea whose time has come and see Elon. Musk. Recently said that maybe we have no alternative but to actually implement some kind of a basic income. Yeah I. Mean Elon Musk at Tesla you know he's probably gonNA come up with vehicles that replace a lot of truck drivers someday wants to know what happens to the human truck drivers in the fullness of time that is true. But at the same time also remember he's creating a lot of manufacturing jobs here in the United States in an industry that is not going away. It's not a declining industry is not one that needs money and I'm not talking about the automobile industry. I'm talking about the electric automobile industry. And we are as you very well know in a consumer economy, two thirds of GDP. Consumption and these people don't have money in their pockets then these type of economy that we have count work. Mara Yan is a professor of management at the Wharton School of business. He's author of the New Book Twenty Thirty Today's biggest trends will collide and reshape the future of everything that again. Thank you. Baby. Thank you so much as always. and. We cordially invite you to our one hour special report the economy reimagined on my many public radio stations nationwide. It's in the coming days weeks as an option at marketplace dot org you could click on the prominent specials button and we have our specials will appear I'm David Brancaccio. This is marketplace morning report. From APM. American. Public Media.
How raising the minimum wage would affect the U.S. economy
"This marketplace podcast is supported by deloitte private offering business insight and strategies tailored to the needs of privately held companies to help them navigate. Today's uncertainty and build resilience online at deloitte dot com slash. us slash cova d- and buy out systems the application platform that enables every company to innovate through software. Out systems accelerates the development of business critical cloud applications build the difference without systems for more information. Visit out systems dot com. Politics is the art of apportioning resources. For instance the minimum wage. I'm david brancaccio. First among the fears and the working population is that pandemic could mean no job or food on the table. Among the fears of those living off assets including some retirees. That new stimulus in this recovery could become a third yeager. Meister i e too much. Let's get a read from jeffrey cleveland. Chief economist at the investment firm. Payden and regal. Well david investors are very curious right now because will you can call it. Run it hot economics or you can call it. Overshooting or perhaps overheating but investors are worried that an economy. That's on the mend. We'll get another round of stimulus and that will be too much to handle boosting demand and then pushing up inflation and then that could push interest rates and maybe change. The outlook from the federal reserve and all of that together would be a catalyst for the stock market to sell off all right. So that's the hypothesis. Do you buy it david for a couple of reasons number one. The economy is not running hot at presence. Inflation by all measures is still very low We've been hearing this. I think for decades that the economy was on the cusp of overheating and that would lead to higher inflation. And we haven't seen that inflation that worrisome inflation materialize. So i think perhaps down the road these are issues. That people should wrestle with but fears of overshooting. Overheating are premature jeffrey cleveland. He's the chief economist at paid in regal. Thank you so much advocate week. Raising the federal minimum wage to fifteen dollars as president biden. Wants would help a lot of people. But at a cost to many others. Marketplace's nancy marshall genzer in washington has more on a new government analysis. What it's from the nonpartisan congressional budget office and the cbo study says a fifteen dollars an hour. Minimum wage would boost the earnings of seventeen million workers and pulled nine hundred thousand people out of poverty yet. Drop the other shoe here ray. This is where those trade offs come in the cbo report also says almost one and a half million people. We'd lose their jobs because of the fifteen dollars. An hour minimum wage higher wages would increase the cost of doing business so companies raise prices producing fewer goods and services and laying off some workers. The report says the higher prices and wages would also cost the government and raise the budget deficit. How have supporters of the fifteen dollar minimum reacted to the study. Well we talked to heidi sheer hold. She's a labor economist at the economic policy institute and she agrees with a lot of the cbo report but she says the cpo overstates what a higher minimum wage would cost the government that said even if you take their numbers at face value. They still find that for a very relatively low price to the federal government. You'd get a minimum wage increase. That did really important things for the us. Economy pulling people out of poverty reducing inequality getting more income to low income people. So david her argument is even if there are trade-offs they're worth it all right nancy. Thank you this marketplace. Podcast is supported by moody's topics podcasts. Do you want the sharpest insights into the forces shaping. Our future for expert views on. What's next for the economy. Emerging markets healthcare and more check out. Moody's talks podcasts. It explores the issues and trends that matter most from climate change attack to politics finance credit and more head to moody's dot com slash morning or search. Your favorite podcast platform for moody's talks a high school in tennessee that had closed down at shop during pandemic is switching gears to keep a student car repair program running. It's part about getting more women into the auto repair field damon mitchell of wpn in nashville reports jacqueline nannies performing a vehicle. Check in virtual autoshop during online simulator. Is no engine light on or nothing. So we'll try to keep our car running the simulator essentially pushed the and of an automobile onto the computer screen. There's a gas pedal a key. Fob and when something needs to be fixed it even mimics the noise of a broken down vehicle. Nanny has seen the inside of a classroom about ten months. She's a senior at high school in nashville tennessee. And one of three young women in the class of twenty four. She says she's motivated to show. Their women are strong enough to be mechanics. You'll see a lot of women working on cars physically. This is where i picked because like some people have their own opinion on why some women shouldn't work on cars. According to the us labor department fewer than two percent of auto mechanics are women. Chuck bowls region manager at automotive company. Bridgestone which partners with maplewood high school. He says there's a shortage of mechanic so there are many opportunities for women to earn good money. There's such a short number of folks in our field or the pool so we to provide that Ultimate pay as well as benefit package to bowls says entry level workers can start at about fifteen dollars per hour and on the high end workers can bring in six figures. This comes with vacation days and pay lee time. Still many women who do work in the field aren't working on. Cars says tj williams maple woods auto instructor if you look around the dealerships. You say women but you'll see them. Doing the service. Writing bart williams has been mechanic for forty years. Says she hopes training program will help. That in nashville. I'm jay mitchell for marketplace and in pinellas county florida say somebody used remote electronic access to get into the control system of a water treatment plant and turn up the amount of sodium hydroxide. That's lie to dangerous levels. None of the tainted water got to residents. The sheriff says oldsmar florida population. Fifteen thousand is not clear. Who did this. Experts have been calling for years to harden infrastructure to cyber attacks. I'm david brancaccio with the marketplace morning report from apm american public media this marketplace podcast is sponsored by merrill as you manage life merrill guided investing professionals manage your financial goals work with an adviser who can help you build monitor and rebalance your portfolio get started at merrill edge dot com slash investing goals merrill lynch pierce fenner and smith incorporated both a registered broker dealer and investment advisor member sipc.
Impeachment weighed against Bidens economic agenda
"This marketplace podcast is supported by equifax as the world's digital infrastructure company equinox enables you to access all the right places partners impossibilities to accelerate your digital advantage together. We can transform your business and changed. The world learn more at equinox dot com and by out systems the application platform that enables every company to innovate through software out. Systems accelerates the development of business critical cloud applications build the difference without systems for more information visit dot. Com impeachment weighed against the biden economic agenda. I'm david brancaccio. The house could vote as soon as tomorrow to impeach president trump next would be a trial in the senate but their concerns. The timing of a trial could distract from the passing of president. Elect joe biden's exothermic agenda and this has been a concern this week. Among financial market players and stock indicators are just turn negative. actually this last moment marketplace's. Nancy marshall genzer joins us from washington. Nancy what's being talked about among democrats. Now well they wanna hold president trump accountable for inciting the attack on the capital last week but they also want to give the biden administration a strong start by needs the senate to confirm his nominees and to pass another relief bill. He wants to boost direct payments to two thousand dollars for most americans extend federal unemployment benefits and send billions in aid to state and local governments. And what our options for democrats. There's talk of the house waiting one hundred days after it's impeachment. Vote to send the articles of impeachment to the senate at the idea. Here is biden. Could use those hundred days to focus on his agenda but biden told reporters yesterday. The senate could handle everything at once by spending habits day on impeachment and half on nominations and the vote on that relief package but there are concerns that a trial would just overshadow everything else and remember david. This senate will be split. Fifty fifty between republicans and democrats with vice president-elect kamala harris voting to break ties so biden could need republican support. What's the time line looking like in the senate to thing. Senate majority leader mitch. Mcconnell does not appear willing to move on impeachment until january nineteenth the day before biden's inauguration and democrats won't take over the senate until inauguration day. Nancy thank you twenty twenty one as a young year and among many other things it's become the year of higher interest rates which have moved off their near-zero pandemic lows of the bulk of last year. Bankrate.com today fines thirty year fixed mortgages moving up to two point. Eight five while from two point. Eight five to two point nine three percent since last week and the benchmark interest rate the yield on the ten year treasury is up at one point one seven percent now still in the long sweep of history but the highest since pandemic shoring began. Jeffrey cleveland is the chief economist at the investment firm payden and regal in los angeles. The interpretation at least from my perspective is the prospect for better economic news in the year ahead and perhaps more fiscal relief. Think that's what you're seeing. Reflected in higher treasury yields today. More fiscal relief. That's washington spending more to get us out of the recession given democrats in control of both houses of congress. That is correct. David the expectation is that households. We'll see more relief so we've already had a six hundred dollar check here recently and that could be up sized in the immediate aftermath of the biden inauguration and that should help bolster consumer income. And as you know so much of the. Us economy is driven by consumer spending all right. Jeffrey cleveland chief. Economist paid in regal in los angeles. Thank you avid. Great week this marketplace podcast is sponsored by merrill with personalized planning tools and insights merrill edge. Self directed offers timely. investing ideas. to help you find answers like how are your investments. Doing what is the market doing put investing within reach and get started at merrill edge dot com slash within reach merrill lynch pierce fenner and smith inc. registered broker dealer member. Sipc this is the week. A new round of paycheck protection program loans become available for pandemic ravaged businesses. These are really grants if rules are matt right now. It's for first time. Applicants and the application has to go through community banking organizations. No big banks for now. At least marketplace's justin how reports the way this round of the p. b. p. is rolling out is designed to help business owners like teradata walker am basically hoping that i won't have to my business walker runs a home healthcare business new orleans. It didn't get a ppp loan. The first time around. And i'm just hoping praying that everything right this time around in the first round of p back in the spring applications from black owned businesses were two and a half times more likely to be rejected than those submitted by white owned businesses according to reporting in box the community banking organizations that were given the monopoly on taking in applications at the start of this round. Didn't want that to happen again. So we're a little bit anxious about making sure that the technology is in place to make sure everyone gets served. That's dominic neon. Ceo of south carolina's black owned optus bank. We update our phone systems. We've hired more. People i mean we've we've done everything possible to make sure we don't miss an opportunity to help someone last year. During the first rollout the small business administration's online system crashed. Bankers had the resubmit applications over and over and robert james. The second at the black owned carver state bank in georgia was worried. There would be technical glitches again. The problem that we have is that there's a brand new technology system that we're supposed to use to submit those applications to the spa and and we didn't get that information until late last night by monday afternoon. Dominic martin's optus bank in south carolina had taken in twenty-five applications. Five have been completed many of the new apple against were new customers. What i'm pleased about. Just looking at the businesses and talk with a lot of our bond oriented businesses and they are finding out from out of area which was precisely the point of giving community banks first dibs at processing the earliest applications for this new round of ppp loans. I'm justin how for marketplace much will happen throughout the day with this epoch. Mix of politics in the economic agenda these days. Listen for my colleague. Rizzo host of marketplace on many public radio stations or stream mobile marketplace dot org are producers are meredith garretson stephen ryan danielson and erica soderstrom. I'm david brancaccio. You're listening to the morning report from. Apm american public media just in with marketplace. The economy is changing so fast. It's hard to keep up to our latest. Podcast is here to help. It's called the marketplace minute. Give us just sixty seconds and we'll bring you the latest on what's happening in the economy three times a day market news in how the numbers affect your personal economy. We'll tell you what you need to know and why it matters. Just ask your smart speaker to play the marketplace minute or. Find it wherever you get your podcasts.