A deal tonight that touches the live of every single American Health care. Anthem says its buying rival cigna for 250 million. The deal comes just weeks after aetna says it wants to buy humana quickly altering the landscape to five major insurance carriers to just three, assuming the announced deals get regulatory approval. Both anthem and cigna saw their shares lower in trading. The wave of consolidation is raising a number of questions about the power of these companies, competition and costs per patient. Reporter anthem and cigna say together theyll be able to cut out more than 2 billion in overhead costs and ultimately that will be good for consumers. It will improve our ability to serve customers across commercial medicaid medicare and International Markets and create greater efficiencies and affordability for our customers. Reporter the sheer scale of the 54 billion merger will attract regulatory scrutiny. The combined company will have more than 50 million members, covering 1 in 5 americans. But theyll likely look at the alleged cigna deal with humana which will limit five big players to three players, including humana health. It looks like well have a ford, chrysler gm situation in the world market. Reporter california where anthem is already a world leader its market share would increase by 19 . Insurers argue getting bigger helps them get better prices from large hospital operators. They say that could help the overall market. Based on research that wiieve done they dont substantially reduce the competitive detail in markets. Youre creating more Competitive Companies but youre not necessarily reducing the competitive situation in a market. Consumer groups think fewer choices will just mean higher prices for individuals, employers and in medicare advantage. Antitrust Companies Say the companies have to make a strong case to regulators that it wont. They can, in fact become more efficient and they should be able to lower the rate of increase of their prices. But as you know in the hospital sector to some degree and in other mergers, we frequently see price increases. Reporter while anthem and cigna express confidence their deal will be approved it could take well over a year and they have included a breakup fee in their agreement. Bertha cuns nightly Business Report. Lets talk about what the Health Care Industry will mean to you. Hes a Health Economist at Yale University. Thanks for joining us. Thank you. Another big merger in the insurance space and were looking at what it all will mean for the consumer. What will it mean . I think its history for any guide that the merger lower prices if anything it will raise them. There was a merger in 1999 between aetna and prudential. That raised prices for consumers by 20 . The areas that are more competitive have lower prices for consumers. So i just dont think this is going to be something thats particularly good for our consumers. You heard all those executives better efficiency more affordability, serve customers better lower rates of increase. Youre not buying any of it. I think its pretty clear why they want to merge. These private insurers are playing a much much larger role in health care in the u. S. And medicare and medicaid and the federal program. And the reason they really want to push for these mergers is that provider markets are becoming much much more competitive. Its just not clear that as these Insurance Companies are getting bigger that theyll pass on any savings theyll make to consumers. What about prior investors. Will they really agree to this merger another one in its space. Well only have three Insurance Companies out there. Is that enough competition . What will they say . The doj will be having a hard look. To the extent these companies have overlapping markets in certain areas is what theyll be looking at. To a certain extent they do. You can look at new hampshire, and they do have a significant amount of overlap. We can also look at some recent precedent from the come tascast time warner deal that fell apart where they said big purchases are not an organist for these types of mergers. I think well see a divestiture. The thing is these insurers need to have the bulk to deal with the Big Health Care institutions the hospitals, the medical practices, so that they in the same sense, and i dont mean to overstate the analogy, like walmart can effectively dictate the price to the vendor. Have i got that right . Youve got that totally right and thats where the complexity really comes in. These insurers want to be bigger players at the negotiating table, but at some level the argument theyll make to the doj is look were not getting bigger in the same market. The argument is this gives us more power. This allows us to negotiate. At the same time they cant argue they dont have overlapping markets. The government has a lot to look into. Zach cooper with Yale University thanks for joining us. The food and Drug Administration has approved the first of a new generation of cholesterol drugs. The fda did, however, limit the drugs use to patients whose cholesterol problems stem from hereditary issues. The drug made by regeneron, will be about 14,000 a year. Thats more than i pay for mine. The pressured shares closed down 2. 5 . On wall street the blue chip dow index finished the week on triple decline on concerns after china and the ozone introduced lower data. The dow jones fell 163 points to 17,568. The nasdaq dropped 57 points way down by shares of viogen which saw a double digit decline. Well have more on that in the program. And the s p 500 sank 22 points. For the week all the major averages fell more than 2 . It was the largest weekly drop for the s p 500 and the nasdaq since march. Amazon shares was easily the Top Performing stock today after it reported an unexpected profit and a blowout quarter which we told you about last night. The stock jumped nearly 10 paerls tonight10 tonight, as you see there, and that brought the gains for the year to about 47 . We talk about whats driving amazons success and if it can continue to stay in the black. Amazon is known for delivering all kinds of items, but investors got a surprise package this week profit. After two weeks of watching amazon are we seeing the beginning of a new consistently profitable era . Dont count on it. The ceo is known to show earnings now and then perhaps just to remind investors that he can. Meanwhile, hes already set his sights on some expensive new frontiers, interstate ecommerce growth in countries like italy, spain, and the use of the cloud which sees amf buying and computing managing resources and renting them out to customers. Theyre definitely investing in future gloetrowth areas, but we like the fact that theyre investing in the marketplace opportunity. Theyre not investing in Driverless Cars or rocket ships, theyre investing in the prime business. Amazon saulsis also spending big money by making tv shows like golden winner transparent. Those production costs a ninefigure expense will appear this quarter. So dont expect them to schedule a profit delivery every quarter. For nightly Business Report, im john ford. American airlines said it had its most profitable quarter ever. They felt their earnings nearly double as cheaper fuel helped lower cost and off set a decline in revenue. But passengers paid less per mile in the Second Quarter than they did last summer and they expect that trend to continue. That outlook pressure shares which fell 27 . U. S. Airlines under investigation now for possible price gouging. The Transportation Department is looking into whether delta, american jet blue and united raised fares while Train Service between new york and washington was disabled following that deadly amtrak crash in philadelphia in may. The northeast corridor is one of the most heavily traveled areas by train or plane. There is a second investigation into the airlines one by the Justice Department examining whether the airlines worked together to illegally keep fares high. And Fiat Chrysler issues a major safety recall to block its vehicles from hackers. It follows 100 million automobiles and follows the revelation that moving jeep vehicles can be controlled remotely. Heres more on what may be the first of its kind recall for the industry. Reporter the video is startling. A driver losing control of his 2014 Jeep Cherokee while a hacker uses his computer to tell the vehicle what to do. It was a planned hacking exposing a flaw in the software of jeep infotainment systems. Now chrysler is recalling 114 models built between 2014 and 2015. The owners will receive a usb device and can update their Vehicle Software without visiting a dealership. Fiat chrysler says that aside from the hacking, there have been no cases of models being hacked remotely. One of the persons that exposed the jeep Software Flaw says the odds of the cars being hacked is still incredibly low. Weve spent the last three years of our life doing this research and a year on the jeep alone. So its not easy to do. Im more afraid of someone textingtext ing and driving and running into me than i am about somebody hacking my car. Concerns are growing automakers have not done enough to make sure strangers cannot gain Remote Control of those cars. Thats why Cyber Security is rapidly becoming a primary focus for automakers and regulators who want to make sure hackers cannot get control of millions of vehicles out on the road. Phil lebeau nightly Business Report chicago. The Highway Traffic Safety Administration said it encouraged Fiat Chrysler to examine those vehicles and it will look into the effect of the supposed antihacking fix. It was a big month for earnings and were not done yet. Next week looks to be an interesting one as well and well hear from the new york stock exchange. Reporter the focus will again be on earnings next week but as always a small number of companies will be in focus. There is a lot riding on facebook which reports wednesday, because the stock is up 20 in the last month on expectations of a strong report. Investors have put a lot of money into a small group of big tech names. Good newsramatically boosted amazon and google but even the smallest disappointment hurt apple. Traders will also be scrutinizing big, National Companies for the impact t of the strong dollar. Procter gamble for example, gets 65 of its business outside the u. S. Theyll be reporting thursday. Other multinationals that have already reported have noticed a Significant Impact on the strong dollar. The two internet Companies Say exxon mobil and chevron will be reporting at the end of next week. Chevrons earnings will probably be down 55 , but estimates have been coming up a bit for them and theyll be scrutinized for any indication of when the oil slide will stop. Its not so much the earnings its the guidance for the Third Quarter that really matters. Earnings growth is expected to be positive in the second half of the year. But the expectations for the Third Quarter are now also expected to be down. Thats a problem. Thats one reason the markets had so much trouble this week. Whats the problem . Youve heard about it slow growth in china, slow growth in latin america, but also the Dollar Strength and weak oil has continued into the Third Quarter. The fed told us a strong dollar and weak o might be transitory. That hasnt been the case. The bottom line growth is proving to be very elusive this year. For nitghtly Business Report, im a the new york stock exchange. What president ial candidate Hillary Clinton has planned for your money asknd your taxes. The federal Communications Commission has cleared the way for apts 49 billion acquisition of directv. The deal will pay one of the largest tv providers in the country and limit one of the biggest hurdles that had been standing in the way of the merger. Last week we reported the end was near. Directv finished the day with gains. Newly built singlefamily homes fell last week. They reported a decline of 6. 8 taking sales to their lowest level in seven months. Home builders however, came under pressure falling into todays session, as you see there. President ial candidate Hillary Clinton has a plan for the economy. Shes asking businesses to focus on longterm investments rather than shortterm profits. In a speech today in new york, she outlined a series of policy proposals that could impact your investment returns. John harwood was there. Reporter last week Hillary Clinton laid out her plans for more Profit Sharing to benefit average workers. Today she came to the nyu school of business to push back what she called quarterly capitalism and encourage longer term investment. Her centerpiece proposal, a shift in Capital Gains taxation to have higher rates for investments head forld for a shorter period of time. As president i would move to a sixyear sliding scale that provides real incentives for longterm investments. For taxpayers in the top bracket, families earning more than 465,000 a year any gains from selling stock in the first two years would be taxed just like ordinary income. Then the rate would decrease each year until it returns to the current rate. This means that from the moment investors buy into a company, theyll be more focused on its future Growth Strategy than its immediate profits. The Capital Gains proposal was just one of the ideas Hillary Clinton offered to encourage longterm investment. She also said she wants to discourage some activist investors for pushing for shortterm profits through means such as stock buyback. She also wants to make sure that incentives for executive compensation are not tilted toward short term stock options. Im all for rewarding the ceos as well when their companies prosper, and their employees also share in the reward. But there is something wrong when Senior Executives get rich while companies stutter and employees struggle. Reporter as expected the republicans critique of Hillary Clintons plan was on the short term increase in Capital Gains tax rates. One potential rival, marco rubio of florida, called it an old style tax increase straight out of the 20th century. For nightly Business Report, im john harwood in new york. Clintons speech came after an investigation of highly classified emails while she served as secretary of state. Shares were sent way down the biotech giant limiting its forecasts for years of sales because it just does not suspect it would sell as well as hoped. Total sales fell short of the consensus. Shares as a result tumbled 22 to 303. 03. That made them the worst performer in the s p 500. Positive news on the other hand for glox oeaxo smith klein. They got approval for the first malaria vaccine ever. Shares off 1. 5 . They finished at 4. 9. They saw their revenue topple in the Second Quarter as current fluctuations and the firms Document Technology business dragged down results. Its earnings outlook also came in at the lower end of the expected range. Still, shares rose 1 to 10. 94. And the fcorp easily beating wall streets estimates on both the top and bottom line. The maker of north face wrangler and other apparell outlook went down. The market monitor who found opportunity in blue chip stocks he said should be in your portfolio for the long term a couple financials hes going to talk about. The last time he was with us was december 2014. He recommended exxonmobil down 10 , schlumberger basically where it was. Welcome down chief executive officer at haverford investments. I dont mean to bring up painful memories but two of the three didnt do so well. Has it not just been very good for energy . No it hasnt, but i like how you emphasized for long term investors, and at least they got paid a wellpaying dividend and chevron over 4. 5 . So youre still happy owning those companies . That is correct, we still own them in our portfolios and were buying them for new clients as well. Happy might not be the exact word that you would use, but youre certainly satisfied owning them. We are. Again, we have a longterm perspective, and over many decades, regardless of where the price of oil has been names like exxon and chevron have delivered total shareholder returns. But now you think investors should be looking at financials as well, and what are the names that you like . We like the two highest quality banks in the United States if not the world, wells fargo and jp morgan. Theyre poised to do well in a rising Interest Rate environment that will help their net interest margins. Also particularly with jp morgan it looks like the headwind of legal and massive fees is starting to dissipate and will be much less so on a goforward basis. The companies are returning money to shareholders in the form of dividend increases, so you have a 2. 5 dividend yield with both of those companies, and you can expect annual increases each year and theyre valued quite reasonably at these levels. Yeah youve certainly chosen best of breed in that area. Utx, United Technologies a company thats been in the news this week theyre selling off their helicopters. They had a little bit of an earning stumble, if i recall correctly, but you see this decline in the stock as a buying opportunity. Its almost a bare market type decline of about 20 . Theyre in great businesses. Otis elevators, Pratton Whitney jet engines, the carrier building facilities that have wonderful recurring revenues. There is some temporary headwinds, the stronger dollar a concern over china slowing, but we think this is a good buying opportunity. And to take a Warren Buffettlike viewpoint, with the proceeds from sikorsky theyll be able to buy much more shares than previously at these lower prices so we think that will be good. All right, hank thanks very much. I appreciate your longterm perspective. Hank smith with haverford investments. Coming up how cuban interns are learning how to be entrepreneurs the american way. Ri a major case today, a california judge ruling that the city wanting to lower the pension shortfalls is unconstitutional. The overhaul which was previously approved by lawmakers, sought to eliminate nearly 10 billion in unfunded pension liability by cutting benefits and increasing contributions. It would have affected more than 60,000 City Employees and retirees. Chicago has the worst funded Pension System of any major u. S. City. Tyler, a wideranging tariff deal announced today by the world trade organization. Dozens of countries have agreed to get rid of duties on more than 200 Information Technology products from video game consoles to gps devices. This is the first tariff cutting deal announce bid the wfto in almost 20 years. The world federal trade Organization Says it will affect 60,000 world jobs. When they want to start a Small Business the research at hand is virtually endless. In cuba its a whole different story. Kate rogers tells us about a new program that gives young cubans the chance to become entrepreneurs. Have you ever had so much wifi band width in your life . Reporter for these cuban students, the answer is no. But as the u. S. Has resumed diplomatic relations with cuba a program is bringing four cuban interns to new york city for several weeks this summer to learn about entrepreneurship the american way. Miles spencer, tech entrepreneur and angel is funding the program through his nonprofit taa. The students are shadowing science, Technology Computer and math startups. Our vision for the program is have these four kids learn about innovation here and return to cuba to solve problems in cuba for cuban people. But also to serve as the core for an incubator in havana where other likeminded innovators that are already in touch with these four can gather, get access get mentoring and learn to solve those same problems. The program came to be thanks in part to John Coffield former governor of havana who got students interested to learn. Ar it would be topping new hurdles in the Communication System among people broad band width. The Company Takes food data and personalizes it for consumers. I personally have lived abroad and did internships myself when i was younger. I lived in bolivia for a year which was a very impactful experience for me so im very happy to be able to give somebody else an experience. For some like robert pereira, the technology alone is something to marvel at. All the i couldnt have lasted in havana so i will love to see and learn and. Others like gabrielle or rodriguez, will help prepare her to one day run a business of her own. We hope we get the chance to start our new company, and if it happens to me ill be ready. Thats nightly Business Report for tonight. Im sharon epperson. Thanks so much for watching. And im tyler matheson. Have a great week. Well see you monday. Gwen the weeks political merrygoround, donald trump and the republican party, Hillary Clinton and her emails. Tonight on washington week. Donald im a republican. Im a conservative. Im in first place. Gwen forget about health care, highway funding and even immigration reform. The summertime campaign is all about donald trump. Hes a war hero because he was captured. I like people that werent captured, ok . Gwen as he dominates every headline, and forces every other candidate to push back or be pushed. I think donald trump is a political car wreck. And people slow down and look at the wreck but they eventually move on. Ive seen your senator. What a stiff. What a stiff. Lindsey graham. Gwen while established senators governors and