Consolidation weve seen over the last 15, 20 years. Reporter but the mergers ecnomoic payoff for Anheuser Busch is largely about what happens outside the united states. They believe there are great efficiencies to be had in mexico and in other markets in the world where corona is underdeveloped. So the primary focus of the deal for their 20 billion is what they can make in mexico and what they can do outside the u. S. Reporter Anheuserbusch Inbev offered to sell of its interest in an importing arm to Constellation Brands and make the company the sole importer of corona beer for ten years. But the Justice Department says that solution does not go far enough. Darren gersh, n. B. R. , washington. Susie on wall street today, stocks finished lower on mixed news about the economy, and worries about tomorrows important jobs report. Jobless claims rose by 38,000, more than expected. Consumer spending rose slightly in december, as personal income climbed 2. 6 , the highest increase in eight years, on this last trading day of january, the dow lost almost 50 points, the nasdaq was unchanged, and the s p fell about four points. Despite the sell off today, january was a strong month for stocks. The dow surged 6 , its best january since 1994. A 4 gain on the nasdaq, and the s p jumped 5 . On wall street, they say a big january for stocks usually means a big year as well, its called the january barometer. If stocks follow history, they could be up by 20 or more. Will that hold true in 2013 . Joining us with his thoughts on that, scott wren, senior equity strategist, wells fargo advisors. So scott, are you changing any of your forecasts for this year based on this strong january . Well, susie, really january has been stronger than what we thought. Weve had a 15, 25, year entarget out there for the s p 500. And were certainly reassessing that. We want to look at the fundamentals. We want to look at our models. And just see what we think is going to happen. But i do think you said in the intro 20 , i think thats extreme. Weve been looking for about a 10 year including dividends. Maybe were a little conservative. But i dont think were going to see a 20 year in the stock market this year. As you reassess things, one of the things that comes up usually you get these stock market rallies when you have a robust economy. We dont have a robust economy. So does it make sense that well get a doubledigit rally in this environment . You know, based on the work that were doing right now, no. But saying that, i think stocks can do well in a modest growth, modest inflation environment. Weve been in that type of an environment. I think pers going to be in it at least through 2013. So stocks can do okay. Especially stocks i think that have a lot of International Exposure which the s p 500, about 50 of those revenues come from overseas. So thats where the growth is were going to continue to see the growth there. So i think the stock market can do okay, so to expect a 20 year in this slowgrowth environment i dont think its going to happen right now. I would like to ask you a little bit about a gloomy assessment that came out from bill gross, the bond guru from pimco. His february letter, he is saying hes to the buying into the bull market, telling investors that stocks pose too much of a risk for too little return. He says buy something you can sink your teeth in, commodities like gold. He also recommends to go out the u. S. And buy global stocks and currencies from countries like the ones he mentioned, australia, brazil, mexico and canada. What do you think of that bill growth assessment . Well, you know n my opinion, and really for our clients here as wells fargo advisors, i mean i still firmly believe that one of the best way force people to build wealth over time, build wealth for retirement is building to be by owning equities. I certainly think they need to own a good chunk of u. S. Equities. Now saying that, the growth, we have hundreds of millions of people around the world that are coming into the middle class. Their wages are rise. They want cars, washing machine, all the things we take for granted that is where the growth is going to be. Were in a mature economy. Our population is only growing 1 . Japans declining, a lot of western europe is declining. So i agree that you need to invest internationally to take advantage of that growth. But i disagree that you cannot find some favorable returns in the u. S. I think our companies here especially those in the s p 500 know how to make money overseas. They have been doing it they are going to continue to do it an at 50 of revenues that come from overseas that number is only going to get bigger in coming years. Okay. Scott, were going have to leave it there. Thank you so much for coming on the program. Scott wren, equity strategist at wells fargo advisors. Tom still ahead, the first few weeks of january 2013 have been explosive. Theres no other adjective other than explosive. The Building Confidence leading one Small Business to create new jobs. Susie an intense day on capitol hill for defense secretary nominee chuck hagel. The former republican senator from nebraska took a grilling at his confirmation hearing. Lawmakers from both sides of the aisle questioned him about his controversial views on gay rights, sanctions for iran, and former president george w. Bushs policies in iraq. But in spite of the turmoil, hagel is expected to get confirmed by a narrow margin. Tom an update on failed Futures Brokerage Firm peregrine financial, its founder, Russell Wassendorf senior was sentenced to 50 years behind bars. He received the maximum sentence after admitting to engaging in fraudulent activity and misleading regulators for almost two decades. Wassendorf also was ordered to pay 215 million, the amount prosecutors say he cost clients. The 64yearold said he is very sorry. Tom a couple of media giants today highlighted the challenges of an industry undergoing great changes. Business at viacom slowed down at the end of last year. Advertising at the companys cable t. V. Networks like nickelodeon, and mtv fell for the Third Quarter in a row. And it expects ad sales to be flat this quarter. A bright spot was subscription fees, what Cable Operators pay viacom to carry channels like nickelodeon and mtv, allowing viacom to report better than expected profits. One of those Cable Companies, Time Warner Cable saw its expenses go up in the Fourth Quarter. While it lost 129,000 cable t. V. Subscribers, something the Company Called disappointing. Still, earnings were stronger than anticipated thanks to Broadband Internet customers. Porter bibb is the managing parter at mediatech capital partners. Porter a lot going on in this industry. What do these two companies tell you about what is happening first of all with media content like the vie comes of the world . Well, viacom really has a lock on content, and the big loss that you referred to that they suffered in the Fourth Quarter was a breakdown in nickelodeon versus the disney channel. They also dont have jersey shore any more but today they announced that they are setting up cc studios, a Production Unit to create new content like catfish, the online dataing show that they hope will be another jersey shore. Content remains the king and as time warner found out they report Time Warner Cable had to report depressed revenues and depressed profits because of some purchases and content namely sports that they made. They bought the rights to the la lakers and la dodgers for an aggregate of something close to 10 billion over the next five years. Tom you got those distributors having to pay some hefty dollars for the content to be able to put it through those pipes be it either internet, broadband or cable watch. Are the Cable Companies doing right when it comes to distribution, are they doing anything wrong . Well, they have been particularly Time Warner Cable but comcast and the other major cable msoes are committed to what they call ott, over the Top Television, getting out to multiple screens. The problem that they have is that theyre battling amazon and google and sony and apple all of whom have Different Solutions that dont involve cable or the cable subscription fees to offer over the Top Television on any kind of screen, whether its a smart phone, a tablet or whatever. And youre going to see a lot of frowns on the cable industry executives later this year when apple comes out with a userfriendly device that will be the replacement for the settop box and the remote control. A lot of frowns on those shareholders of those cable stocks as well. Speaking of competition, you mentioned netflix, we have to mention netflix, big disrupter not only the distribution side which it has been for years but also on content, new series house of cards all 13 yep soweds out online, is this a significant building risk . Well, it certainly makes netflix look itself like a house of cards. Because Reid Hastings is betting 100 million on this greek new content that hes creating. And this is just the first of many series that hes hoping will attract attract new subscribers. The real issue though with netflix is the costs that they are paying for this content. And its higher than any network or Cable Company has to pay. Investing 100 million in house of cards the series, you can buy, after friday when they premier the series tomorrow, you can buy the whole series, all 13 episodes for one month, 7. 99 and then drop out of netflix so im not sure that strategy going to work. Well have to find out if that return on investments is there for its shareholders, porter bibb with mediatech capital parter . S. Susie one theme this earnings season the impact of currencies on american corporate profits, especially for companies doing business in japan, where the u. S. Dollar soared 11 against the japanese yen. That meant less business for many u. S. Firms doing business there. It also meant less money after translating japanese earnings into dollars. Erika miller reports. Reporter japan is a key market for luxury goods maker coach. But when the dollar rose sharply against the yen in the Fourth Quarter, the companys merchandise became less affordable for japanese consumers. To put it more bluntly japanese sales in dollars plunged 7 in the period. Coach is just one of Many Companies that took a currency hit from the weak yen in the Fourth Quarter. Mcdonalds, harley davidson, columbia sportswear, and aflac were also affected. So why did the yen fall so precipitously . That happened because the new government there under premier abe, came in there and said we need to very quickly depreciate our currency to become more competitive globally. Reporter he estimates s p 500 firms could lose more than 22. 4 billion in the Fourth Quarter, due to currency impact. Yes, Currency Exchange rates are beyond any companys control. But there are strategies firms can use to minimize that exposure. When they understand their exposure, they could do operationally things differently. They could, for example, change contract denominations. I dont want to get paid in yen anymore, i want to get paid in dollars. Reporter firms can also move money from Japanese Bank accounts holding yen, to u. S. Banks holding dollars. The last resort is hedging which is buying a derivatives contract to directly manage currency risk. Koester advises investors to avoid investing in companies that do not adequately manage their currency exposure. So how can you tell if the company you invest in does that . Thats where its hard. Its difficult first to figure out what the currency translation charge was, and its also difficult to realize where the earnings or sales are coming from. Because companies technically dont have to break it down by region. Reporter to be clear no one is saying avoid all companies with significant exposure to japan. Yahoo, google, pfizer and merck all do big business there, but koester says theyre all doing a good job of managing their yen risk. There are still two months left in the first quarter, so its hard to know how companies will be affected by currency fluctuations. To make things more confusing, many large multinationals do business in over a hundred countries. Erika miller, n. B. R. , new york. Tom lets get going with tonights market focus. Tom the major stock indices limped into the closing bell, finishing out a very strong january. The s p 500 spent most of the day in the red, uninspired by the increase in personal incomes and savings. It was another narrow trading range of just seven points, with the index finishing down by 0. 3 . Trading volume picked up to end the month. 932 million shares traded on the big board. 2. 2 billion moved on the nasdaq. The materials sector was the weakest, falling 0. 9 . The energy and Consumer Discretionary sectors dropped 0. 5 each. Dow chemical was in focus among material stocks. It wants to save two and a half billion dollars as it wrestles with weak demand out of europe, and a slowdown in revenues across all its divisions except for its ag business. Stripping out the restructuring costs and onetme items, earnings per share were up from last year, but a penny less than estimates. The steepest revenue drop came in dows Performance Materials business, producing solvents and polyurethanes. The stock fell 7 on heavy volume. This is its lowest price since late december. While the company is cautious, it said chinese demand is improving, and it sees encouraging trends with its u. S. Customers. Murphy oils disappointing outlook hit its stock today, sending shares down from an 11 month high. The stock fell 5. 3 . Murphy is in the midst of splitting off its oil refining and distribution business in order to concentrate on exploration and production. As darren reported at the beginning of the broadcast, the u. S. Government is moving to block budweisers buyout of grupo modelo. Constellation brands is a Third Company involved. As part of the deal, constellation wants to buyout Grupo Modelos share of a joint venture the two have. Shares fell hard, down 17. 4 . Its buyout of the joint venture would double its revenues, something at risk now. Facebook shares were heavily traded today after last nights earnings results. But after an early selloff, the stock was able to erase most of todays losses to end down 0. 8 . At least four analysts downgraded the stock after the Company Reported a big jump in expenses, pinching its profit margins. Research in motion also saw big volume, as shares sank 5. 8 . It was the second session in a row of selling as the company unveiled its delayed blackberry 10, its newest smartphone device. There was disappointment though the product wont be available in the u. S. Until the middle of march. Speaking of smartphones, Wireless SemiconductorCompany Qualcomm rallied 3. 9 after a strong earnings report, and a better than expected outlook. Qualcomm has benefited from demand for fourth Generation Wireless Technology called l. T. E. After initially having trouble meeting demand for chips, it said thats behind it. Shipping giant United Parcel service failed to deliver in the Fourth Quarter. While earnings per share were up from last year, they came in six Cents Per Share shy of estimates, and it warned it expects a below trend, economic recovery this year. Despite offering to buy back more stock after its deal to buy a dutch Delivery Company was stopped by european regulators, shares fell 2. 4 . Three of the five most actively traded Exchange Traded products were higher, led by the russell 2000 tracking fund, up 0. 7 . And thats tonights market focus. Susie heres an interesting statistic every minute, a business owned by women opens up. And here in the u. S. , new female entrepreneurs are expected to help the job recovery. Ruben ramirez looks at why women are finding it easier today to start a business. Reporter hewlettpackard may have gotten its start in a garage. But here in new york, this new business was born in the kitchen. This is pastry chef jenny mccoy and her Business Partner diana lovett. Jenny had her background in the kitchen and wanted to make things accessible to the home cook. I had my background in the non profit world and really wanted to have a socially responsible supply chain. Reporter cisse makes mixes for products like hot cocoa, cookies and cakes. They use allnatural products and fairtrade cocoa. Thats cocoa that comes from farmers who use fair labor practices, and sustainable pricing. Its been a busy year, the two went from concept to prototype in four months and hit store shelves in september, the products are available in whole foods and other grocery chains along the east coast. I certainly think that with a line of baking mixes i think that a womanowned business sort of makes sense to the consumer. Reporter women owned businesses are expected to lead the u. S. Economic rebound, according to women lead author tracey wilen gaugenti. She says crowdfunding is leveling the playing field. Crowdfunding is really a great opportunity for people to push there idea out there and work with others to get some funds in so it is increasingly very popular. Reporter mccoy and lovett used the crowdfunding website kickstarter to raise their first 20,000 for their first production run. One trend thats helped cisse, more people looking to cut costs and eat at home, it seemed like a perfect time to get their baking mixes on store shelves. Cisses plans to get it its products in move stores this year, and add employees. You will see more small and mediumsized businesses being started by women and what i hope is that these women will continue to invigorate other women to start businesses. Reporter perhaps spurring more women to turn a passion into a new business venture. Ruben ramirez, n. B. R. , new york. Susie tomorrow on n. B. R. Health care reform is one of the biggest issues facing u. S. Lawmakers, tomorrow well talk with two people who have been on the front lines of Rising Health care costs, donna shalala, former health and Human Services secretary, and former senator tom daschle. Also tomorrow, a look at Super Bowl Ads, ahead of the big game this weekend. Ever wonder what goes into making the perfect Super Bowl Ad . Our partners at Harvard Business school. Say when it comes to making an effective commercial, theres such thing as being too entertaining. To find out why, visit, nbr. Com and look for the nbru tab. Tom the door business could be a window into the job market. As the economy has swung from recession to slow growth, Specialty Companies attached to the Real Estate Market have seen Business Opportunities open again. Dash door and closer service is one of those. The company has been around for 58 years working on Automatic Doors. Its clients are commercial builders and building managers. For instance, the company is fixing this pump that came from an Automatic Door at Miami International airport. It is one of dozens dash Door Services at the airport, and business is picking up. The first few weeks of january 2013 have been explosive. Theres no other adjective other than explosive. Reporter steve sanko tells us after a couple of years of flat sales, and rising raw material costs like aluminum and copper, hes more confident in his business, seeing more projects to go after. If i had two or three more estimators at this time we would be pumping out more goods, and hopefully win those bids. So thats very encouraging from the stand point of a Specialty Contractor such as ourselves. After the real estate bust and surviving those times, dash door, like a lot of companies relying on that market wasnt looking to add to their employee ranks. It didnt fire anybody during the dark days of the real estate bust but it wasnt adding to payroll either. Now it sees Business Opportunities in the months ahead. Dash door is looking to hire two employees. Theyve advertised nationally for these two new positions, generating more than 100 applicants. Reporter when i saw the resumes coming in i thought the flow would stop after 10. But they came in a steady flow. We had people calling us saying where do i stand . I would say were still receiving resumes. I had to do our Due Diligence and look at every resume that had came in. Tom sanko is trying out one person now before making a permanent decision. He says the job candidates dont seem focused on pay, but what theyre really interested in is a stable job. Tom and tomorrow we will see how many jobs were created nation wide in january. Well talk about it with white house economist alan krueger. Well be covering that as well, so have a great evening, everyone. Thanks for wachx nightly business report, see you tomorrow night, right here. Captioning sponsored by wpbt captioned by Media Access Group at wgbh access. Wgbh. Org join us anytime at nbr. Com. There, youll find full episodes of the program, complete show transcripts and all the market stats. Also follows us on our Facebook Page at bizrpt. And on twitter bizrpt. The following kqed production was produced in high definition. And something that i have yet to find anywhere else. My house for dinner. Breaded and fried and gooey and lovely. In the words of Arnold Schwarzenegger ill be back. Youve heard of the connoisseur, im a common sewer. You might