Swooned 8 1 2 its biggest one day dive in more than eight years. While you may not own any chinese stocks the continued volatility does matter to investors like you. Its reigniting fears in the worlds second largest economy. A number of big u. S. Companies from caterpillar to whirlpool express concern about the slowdown in change in a, there are new worries about the effectiveness of beijings efforts to prop up the market. By the close, the Dow Jones Industrial average suffered its first fiveday losing streak since january falling 127 points to 17,440. The nasdaq dropped 48 and the s p sank 12. What triggered the big global selloff. Mainland china stock markets equities plunged more than 8 . Thats on signs that beijing may be backing away from supporting the market while concerns over Economic Health soured sentiments even further. The largest list of companies, fell 8. 6 . While the shanghai composite lost 8 1 2 as you see here the drops were the biggest since february 27th 2007. Investors have been hit by the data showing that chinas industrial firms dropped 3 10 of a from a year ago. Index heavyweights including bank of communications petra china, all slumped to their daily downward limits of 10 . Thats where we stand, back to you. The route in china also knocked the price of some key commodities today, oil already under pressure from supply concerns and a strong dollar fell to a fourmonth low, settling down about 1 1 2 to 47. 39. Copper which relies on china to drive demand fell to a 6year low. Gold rose. The Federal Reserve is watching china and Commodity Prices very closely as it considers when and whether to hike Interest Rates in more than a decade. Policy makers cant ignore whats happening in the worlds second largest economy. Most fed watchers think the three biggest factors are the Unemployment Rate which at 5. 3 is at or very near where the fed wants it to be. Inflation, which is still well below the feds 2 target rate. And the health of the global economy, specifically and most critically china. How much of a fed factor is china . In a word big. It is after all the worlds second largest economy and home to one of its most volatile closely watched stock markets. A market that took its biggest drop in eight years monday. That 8 1 2 slide has some analysts worried. This is not a good situation. The markets are reflecting the fact that were in a Global Economic slowdown and any hope that china was going to lead us out is gone. Others say dont read too much into the stock market action. The Chinese Market underperformed Global Economic recovery for years and years and years. While their economy is going very well theyre stock market did nothing. Their economy starts slowing down, and the stock market takes off. It tells you something, its completely divorced from fundamentals. Its all driven by policy out of beijing. The feds policy makers cant ignore the Economic Impact of that huge country. It affects every market sector. The s p 500 companies with the highest revenue exposure to china are sky works solutions. Semiconductors which does two thirds of its business in china. Qualcomm almost half. Broaden things out to greater asia and beyond the tech sector say, and look at energy. Schlumberger and Conoco Phillips do more than 20 of their business in asia. Boeing logs a quarter of their sales there. Abbott labs does more than 30 of its sales in asia. Get the picture . Its hard to ignore. China, that is. And fed chair janet yellin has acknowledged in the careful phrasing of a central banker that developments overseas will affect the timing of any decision by the Federal Reserve to raise Interest Rates here at home. Were we to judge that these developments did create substantial risks or werent changing the outlook in some notable way. Then a change in the outlook is something that would affect monetary policy. What she said. When will the fed begin to raise rates . Few believe its going to happen at the meeting this week since theres no post Meeting Press conference we wont know the tenor of the discussion until the minutes are released in three weeks. Global growth concerns overshadowed positive Economic Data here. Durable goods, toasters and jetliners that are expected to last three years or more jumped from a month earlier. Much of that was due to aircraft orders. The report prompted j. P. Morgan to raise its estimate to 2. 4 . The government releases its second read on thursday. A Massive Health care deal to tell you about, teva has agreed to buy allergens generics unit. The deal will make teva one of the top ranked drug makers globally. Shares of allergen rose 6 . Teva up 16 . What drove the tieup and why there could be more in the works . Drug deals are continuing at their record clip todays purchase by teva marks a rapid pivot by the israeli drug maker which had been pursuing unsolicited bids. The deal puts teva in the top ten pharmaceutical Companies Worldwide and allergen is free to pursue more purchases. Consolidation among Health Insurers and policies in part shows a reasoning nor the sale. You look at how dynamic this industry is many we want to lead that change i dont want to follow that change. I think a lot of that will impact the generics business what it does for the brangded business it says innovate. If you innovate youre going to get reimbursed. Saunders has been referred to as the chuck norris of m a. Purchased allergen and changes his companys name all amounting to more than 100 billion of deal activity. Now, investors wonder whether his next move is as buyer or target. He said the word acquisition and transformational about half a dozen times in the period of a half hour. Which is telling everyone, im gogel fant hunting. Bernstein analyst says abvee, amgen and bioagain may be on the list. Each has a market valuation of 70 billion. Allergen sls to a Bigger Company like pfizer which was unsuccessful last year in its more than 120 billion bid to bias electra zeneca. Where does this leave mylan, no longer a target for teva. It only intensifies to buy rival parago a deal that so far parago has rebuffed. The consolidation frenzy is a rise Rising Health of costs. Drug companies in turn must buy in order to get a bigger piece of the pie. For nightly Business Report im meg terrell. A record find for phi at chrysler over mishandling safety recalls. Its part of a settlement which has been highly critical of how the automaker handled defects. That pressured the stock which fell nearly 5 . The agreement comes just days after chrysler recalled more than a million cars to block hackers from taking control of the vehicles. Will that recall impact sales . Phil lebeau has the surprising answer. Its a whopper of a penalty for fee at chrysler the auto maker will pay 105 million to the federal government for manage handling recalls of more than 11 million vehicles including 70 million in cash 20 million to improve how it handles future recalls, and 15 million if there are future violations. An independent auditor will monitor how fda handles safety issues over the next three years, but what really stands out is Fiat Chrysler, must offer to buy back almost 200,000 ram trucks with faulty suspensions, while owners of more than 1 million jeeps prone to catching fire will get offers to trade in their vehicles for above the market value or get an incentive to get the model fixed with a protective trailer hitch. I think it is the right type of penalty, and its the right type of rehabilitation thats being used by our team at nitsa. Fiat chrysler is paying the price for years of fighting the federal government over whether or not to recall vehicles for a variety of issues tired of pushing the automaker to do more the national Highway Traffic Safety Administration recently took the unusual step of holding a public hearing about Fiat Chrysler being slow to act, within the last few weeks, the ceo said its time for the automaker to change its attitude. Were not perfect. We need to continue to work with the agency to sort of mutt us on the right path. Fiat chryslers quality is being slammed, buyers dont seem to care. This years sales are going faster than the industry overall the jeep brand, its sales are up 20 this year. Nightly Business Report chicago. Still ahead, place your bets the very real money behind the growing business of Fantasy Sports. More trouble for puerto rico the commonwealth just doesnt have enough cash to make an august first payment. The government looking to raise as much as 500 million by a Financing Deal backed by petroleum products. Theres no longer a market to raise the 3 billion originally planned. Congresss long august recess within reach, lawmakers have a number of issues to tackle before that break starts. On the agenda funding for the Highway Trust Fund and reauthorization of the import export bank. Ayman, why has this battle to reauthorize the import export bank really split republicans so dramatically on capitol hill . There are two factions at play here one is a group of republicans you can call chamber of commerce republicans, thats the group that really supports reauthorizing the Export Import Bank which has been around for 81 years, but theres another group of republicans who you can think of as the club for growth group, those guys think the Export Import Bank is a relic, its all about crony capitalism these projects are worthwhile at all, private banks can step in and finance them. Where are the democrats on this are they all for it . Democrats are for it and you see a lot of Big Companies that benefit from Export Import Bank loans, including big names like boeing and caterpillar, theyre for it and they have a pretty big lobbying effort for it to get reauthorized the state is hanging by a string here in washington. What about the battle about overseas lending and how its connected to funding here for the highway bill . Yeah. One of the interesting maneuvers weve seen over the recent days is this connection of the import export bank that was a maneuver done in the senate its classic washington. You attach it to a must pass bill and the highway bill is popular in a lot of congressional districts across the country. Thats what theyve done in the senate but in the house side republicans say theyre not moved by what the senators did, theyre not necessarily going to take up that bill theyre proposing a short Term Extension to the highway bill just for a couple months maybe to the end of the year that would not include an extension of the Export Import Bank at this point, its very unlikely the Export Import Bank will be reauthorized this week. We have a standoff between House Republicans and Senate Republican leaders. Thank you very much. Ayman jaffers on the case. Twitter reports today, facebook reports on wednesday. And the companies seem to be going in very different directions. Julia borsten explains why. Reporter its a tale of two very different social stocks. Facebook shares up about 16 in the past three months while twitter lost 34 . Facebook soaring to around an all time high as the Company Continues to grow users and ad revenue. On optimism about the potential to make money from the companys other fast growing apps. Messenger, instagram and whats app and their new video apps. One of the important things is the sense is facebook is slowly grabbing attention from advertisers away from google in video in particular. In contrast twitter is in the midst of an awkward transition on the hunt for a new permanent ceo called project lightning which wont launch until this fall. While investors are bullish in the potential to use human curators we wont see the impact for several quarters. Its a project that twitter sorely needs. Its one thats supposed to make it easier for new users to come in and understand what it is. A lot of regular folks dont get what twitter is or what the purpose is. One other challenge for twitter, two areas where it used to dominate sharing news and following public figures, facebook has been investing heavily. To keep users within its ecosystem rather than swiping over to twitter. Julia borsten in los angeles. We begin with merger activity mcgrawhill financial announced a deal to buy snl financial for more than 2 billion. Snl specializes in data and Analytic Services for the financial industry which will expand mcgraws offerings, mcgraw tumbled almost 6 today. Norfolk southern reported a big plunge in Second Quarter profit declining revenue from coal and crude oil will pressure results for the rest of the year. The firm has seen coal shipments drop off as people turn to cheaper options. Delta will pay a half a billion dollars to buy a stake in chinas eastern airlines. The boards of both firms still need to give the okay on the deal. Delta was off a fraction to 49. 93. China eastern slid 6 1 2 to 34. 44. Restaurant brands inter2345gsal, posted a stronger Second Quarter profit. Both burger king and tim hortons recorded the same sales growth because of new product launches. In the meantime wendys is testing antibiotic free chicken items in test markets. Theyre moving away from antibiotics in meat as consumers grow more concerned before how food is produced. Shares at wentdywendys off slightly. Earnings and revenue topped consensus late today. Shares dropped off initially after the close. Before the bell the stock was off by 4 to 197. 68. Two companies are steps closer to becoming public companies. Budget fitness chain Planet Fitness said its looking to raise more than 200 million in its initial Public Offering which would then value that company at 1 1 2 billion. Separately Television Maker vizio filed preliminary documents for an ipo, the company is known for its low priced televisions and it plans to raise about 170 million. Money is pouring in to legal Online Sports betting. Fantasy sports site draft kings, which lets users bet on actual professional and College Sports is getting another 300 million round of funding. The latest round is being led by fox networks group. Draft kings and fan dool are valued at a billion dollars a piece. How much are people spending on Fantasy Sports . In the last year the average fantasy player spent roughly 465 compared to just 95 a couple years ago. Adam krajicek is managing director of gaming and he joins us now. Do either of these dominant players, draft kings or fandool make any money and if not, why not . Thanks for having me on. Right now, neither fandool or draft kings are profitable they are experiencing tremendous revenue in top line growth. At this point what kind of percentage of user do they have. How big is their audience . Is it a large percentage of people that are using it . Or is there a lot of room for growth there . Sure so the daily market is fairly nacant right now, theres a lot of sports fans notice u. S. And in terms of traditional or season long fantasy, the Sports Trade Association has that at over 50 million season long players. But in the daily space last year at its peak there was just around 1. 5 million unique daily players. On that basis, you know were still very early in terms of the user base and the market opportunity. So they dont make any money. How would they propose that they will make money when they start to make money. And wheres all this revenue going . Sure so the biggest cost and expense for the Major Players is Customer Acquisition, and theyre spending very aggressively right now to acquire players and users, its essentially a land grab. And theyre spending more on the Customer Acquisition side than theyre obviously bringing in. Advertised . Yeah advertising. The biggest winners present day are the media companies, the espns, the fox, of the world, that being said the individual lifetime value of the players, the players itself if they were to cut advertising today, fandool would certainly be profitable and draft kings would be as well this year its really its on the advertising spin that is causing the cash burn. What about the regulatory issues if there are any. Some people liken it to gambling others say its harmless its just fun. Its a complex and highly contentious issue right now. We would say, you know the positives that this industry has goingforward right now is some of the Strategic Investors that are have participated in this latest rounds for example fox into draft kings, you had turner and google into fanningdool, you have major media corporations as well as the sports leagues themselves. To have their support we think is a big vote of confidence and endorsement, not to say there wont be regulatory risks or challenges we feel better having the support of some of these major entities and powerful allies. Well see how it all plays out as the saying goes. Thank you very much. Coming up the pentagon is about to award a massive government contract. But not to any of the companies that you might think. Earnings from dow to report. A report on Consumer Confidence comes out. Some big name corporations are backing president obamas Climate Change goals. The white house announce edd 13 Companies Made antipollution commitments adding up to 140 billion. That money will be spent on investing and low carbon. The pentagon is planning to reward a highly coveted multibillion dollar contract to modernize the Electronic Health records in what will be the biggest upgrade of Health Records in this country. Winning would be a big deal for some very Big Companies. The Defense Department wants to overhaul its Health Records so doctors treating a serviceman or woman on the front linings willing have a full picture of their medical history. Instead of taping paper records to the gurneys as our heroes are being brought back from the theaters of war to receive medical care in germany, or back here in the United States that this will all be conveyed electronically. Its called the Defense HealthCare Management modernization project. Its more like a big enchilada. They maintain records for 10 million military records and facilities around the world. Its going to be a nice keynote win for whoever becomes the hr vendor of choice. Three teams are vig for the contract. Privately held epic which has provided electronic records for the Kaiser Health system along with ibm. Serner has teamed with latos and allscripps aligned with hp and Computer Sciences seen as a longshot. Michael tourney thinks epic will win. There will be a host of other Replacement Opportunities that are coming up in the market where serner will be viewed as the best provider to capitalize on the replacement ss. The former chief of the va worried the new records wont be compatible with the va system or other civilian records. Many of these systems are proprietary, the vendors kept that data siloed and segregated and even sometimes charged their hospital clients or charged their provider clinician clients money to get access to the data. The Defense Department expected to announce the contract winner later this week. To learn more about this multibillion dollar defense project, head to our website nbr. Com. That does it for nightly Business Report for tonight. Thanks for joining us. Have a great evening, everybody, well see you back here tomorrow. Announcer imagemakers is made possible by the members of kqed