Families find new ways to pick up the tab, turning to crowd sourcing to pay your way through school. All that and more for this thursday evening, august the 29th. Good evening everyone im susie gharib here with my colleague bill griffeth. Tyler is off tonight. Good news was really good news again for investors today with stocks edging higher and new signs of strength in the economy. Investors brushed off fears about a possible military strike against syria and focused on a positive development right here at home. The nations Gross Domestic Product or gdp grew at a stronger rate of 2. 5 during the spring quarter and that prompted investors to put more money into stocks. Hampton pearson takes a closer look at the encouraging trends behind that surprisingly robust number. Reporter it now appears that a big jump in exports helped the economy grow at a bigger rate in the spring than reported. When you go inside the numbers, the news is even better and could cushion the markets from concerns about syria. Private sector growth grew 3. 3 in the Second Quarter. Its up almost 3 year to date. Its just too good to allow the stocks to fall, but its hard to get really excited to step up and take a buy right here when you got all this uncertainty and now youll face in the next 60 days. Reporter and more signs of perhaps faster highing in august. Weekly first time claims for Unemployment Benefits are at a fiveyear low down to 331,000 last week according to the labor department. The combination of Stronger Economic growth are some market watchers believe enough to move to taper the economic stimulus when Monetary Policy makers meet in september. When they look at the payroll report, is the unemployment coming down and are wages creeping up . I think as they are that means the Federal Reserve will go ahead and reduce bond purpose chases starting in september. What could be the final key day to point for the fed, the august jobs report gets released one week from tomorrow here at the labor department. For nightly Business Report, im Hampton Pearson in washington. Now even with the economy growing and stocks inching higher, the possibility of a u. S. Led attack on syria over its use of chemical weapons continues to hang over the market. In the United Kingdom lawmakers were voting this evening to authorize to use british troops or weaponry against Syrian Military targets. Earlier today Prime Minister today said David Cameron said it was legal and just for his country to take action against syria. We must not let the sector of previous mistakes paralyze our ability to stand up for what is right. We must not be so afraid of doing anything that we end up doing nothing. Let me repeat again, there will be no action without a further vote in this house of commons but on this issue, britain should not stand aside. Meanwhile on wall street, investors were relieved the prospect of u. S. Military action against syria is not imminent so stocks got a lift from that encouraging gdp number we told you about, and the dip in first time jobless claims. Also helping, verizon, it was the biggest gainer in the dow, up more than 2. 5 on conformation its in renewed talks to buyout the 45 of Verizon Wireless that it doesnt already own from its partner in the carrier, britains vote a phone. That could be worth 130 billion. By the closing bell, the dow added 16 and the nasdaq up 30 on strength of text stocks and the s p 500 tacked on three points. Joining us tonight to analyze this, we are happy to have with us an old friend robert who left his post in the state department where he was under secretary for economic and energy affairs. Welcome. Good to be back with you. Nice to see you again. On syria, oil prices have gone skyrocketing at this point, what do you make of that development, and if this drags on, how much higher does oil go do you think . As we know in the middle east, thats an area we see unintended consequence ps of various types of actions, and if we do take some action against the Syrian Regime for what they have done by use of chemical weapons, there is likely to be a series of repercussions. Very hard to predict. It will depend on the duration of the american involvement and extent. If its very quick and markets perceive its a onetime thing i suspect well see few repercussio repercussions. If it looks sustained, there will be more. Its hard to predict the middle east and make predictions about what hasballah will do and other countries is extremely difficult, therefore, there is uncertainty in the markets and in the minds of legislators in the u. S. And as we see in the urksz uk. How will these developments affect fed policy with the strong economic report on the gdp . A lot of people feel like this is a green light the Federal Reserve needs to begin the tapering process of the stimulus plans in the economy. Does syria change all of that . I think these numbers are very encouraging with respect to growth and the job spector. That should tip the balance to a greater degree in favor of those who want to taper soon. If on the other hand we see actions in the middle east against syria and repercussions in the region, i expect well see a lot of people who would otherwise favor tapering hesitate a bit because they want to see the implications, particularly with respect to the Energy Markets and respect to the general stability of the region. Were getting late word, bob, David Cameron lost that early vote in the house of commons to get approval for the strike on syria. Diplomatically, this must keep this coalition together as we move toward some sort of action here. It certainly does because one of the arguments that the president makes correctly is that what the assad regime did was to violate International Norms and therefore, if the United States goes in alone and doesnt have its major ally that it normally relies on in these areas, which is the uk, it makes it somewhat harder to justify because if its International Norms, you want your allies to be there supporting the International Norms, as well. So it complicates his position substantially and will make it more difficult for the other europeans to do something, as well. There is going to be a lot of discussion and debate about this new development tomorrow on wall street trying to assess, what is the timeline of what the u. S. Does or doesnt do. What are your thoughts on this . Well, i think that Congress Wants to be consulted and of course, weve got to bring allies around. Its difficult to do these things unlat terly. I would guess the timing probably, although its very hard to predict, will be delayed somewhat until we bolster support among allies and make sure we have a firm due level of support in the United States and that require complaining to the American People what the nature of the mission is. Right. And the duration and extent of american involvement down the road. These things need to be done to get americans to understand and we need broader International Support and i think it will give markets greater confidence now. Now former under secretary of state for economics. If youre in the market to buy a home, we got good news about mortgage rates. They fell a bit this week. Freddie mac says the average rate dropped to 4. 51 . And the average on a 15year fixed mortgage dipped to 3. 54 . Rates bottomed out back in may, but started rising when the Federal Reserve hinted at tapering back on a stimulus plan sometime this year. And stop me if youve heard this one before, the u. S. Banking industry netted a profit of 42. 2 billion during the Second Quarter as income from trading jumped and lenders set aside less money for bad loans. The fdic, the federal agency that insures Bank Deposits said earnings rose in the spring quarter rising by nearly 8 billion and the number of socalled problem banks fell sharply over that same threemonth period. Some new rules for married samesex couples. The u. S. Treasury and irs as issued new regulations that allow legally married gay couples to be treated as married and file joint federal income tax returns no matter what state they currently live in. Well, the city of detroit could be getting much needed financing. The emergency manager for the bankrupt city issued requests for propels totaling 350 million in loans, socalled debt tore in possession financing. Most of the money would be used to pay Merrill Lynch to end a complicated swaps deal related to bonds it once issueed to finance pensions for retired city workers. Its very complicated. The rest will pay bills to keep the City Services operating. A lot of detroit area workers getting a shot in the arm today. Ford began making the topselling fusion sedan in the u. S. For the first time ever. Its adding 1,400 new jobs to a plant in michigan just outside the motor city. The ceo moved production there from a factory in mexico saying the new plant will turn out more carps and help the company meet rising demand. Well, we dont have a lot of capacity left but pretty much sized to what will be longer term. We think right now the u. S. Will come in around 16 million units, maybe 17 but the pin up demand because the average age of vehicles is nearly 11 years old. We have room on the second and third shift around the United States to meet that demand. Phil was at that plant and got an up close look at manufacturing, leaner and more efficient companies. Reporter fords plant south of detroit, it is day one of production of the fusion said d sedan. It is bringing it here to detroit. Ford in 2013 is far Different Company than it was back in 2007 when it was restructured. They are getting greater profitability and sales despite the fact the company has fewer plants, brands and workers. One reason why, greater efficiency. Half of the models built by ford and sold by ford in the United States are coming from plants that are running three shift as day, and many of the workers hired at those plants in the last couple of years have been brought in at a lower starting wage rate than longtime uaw workers. Meanwhile, on the sales side of the equation for ford, it is doing better competing with its asian rivals, in fact, the fusion is now the sixth bestselling car in the United States, nipping at the heels of the corolla. Thats story here in flat rock, michigan, where ford added 1400 workers to expand production of the fusion models. For nightly Business Report, im phil lebeaux. Google here in the giets, Research Firm ihs is saying that assembling the motox smart phone at a plant in texas does not cost any more than making it outside the United States. The moto x is the first smart phone to have a made in the usa label although labor costs are herer here than compared to asia. You can work up quite an p appetite making cars or phones but if they were in the mood for burgers or fries, they may have been out of luck. Thousands of fast food workers walked off the job demanding higher wages and the right to form a union. Jackie deangelis as the story. Reporter from coasttocoast, fast food workers have taken to the street. The reason we deserve 15 is because we work too hard. Everything is going up but my pay. My rent is going up, groceries going up, clothes going up, but my pay is still where its at. Reporter fast food workers walked off the job today demanding two things, a raise in wages and the right to unionize. Not just here but 50 cities across the country. Mcdonalds, burger king, wendys are saying 7. 25 is not number to survive. We had a reorganization of the economy where workers wages are driven down and profits and salaries at the top for executives go up and up and up. Reporter here in new york city there are more than 50,000 fast food workers that make on average 8. 89, slightly higher than the National Average but according to an mit study an adult with one kid needs 29. 64 to make it. Its not right for folks to work long, hard hours and at the end of the day have to be on food stamps for public assistance. Reporter mcdonalds aims to have competitive pay and benefits and wendys says were proud to provide a place where thousands of people come to us asking for a job can enter the work force at a starting wage, advance with us or move on to something else. The workers seem determined to bring about change. They will continue to fight until they listen. I hope justice is served. I hope we get our 15. If not, well be here every day until they hear us. I feel like thats what we deserve. Reporter some people feel this is an attack on business. New york city mayoral candidate said the government cannot keep piling expensive mandates on businesses and expect them to remain resilient. Double salaries, many who are part time with skyrocketing healthcare, taxes will mean fewer jobs. For nightly Business Report, im jackie danglo. Coming up the Bernie Madoff of china and later, teen retailers took it on the chin this season. What did they get wrong . Well try to get answer ps but first here is a look how the International Market faired today. Investors could be on cloud nine now and that kicks off tonights market focus. The cloud based manufacturer said sales rose 31 to nearly a billion dollars. The company is raising the revenue guidance for the year. Shares closed at 43. 65. Less stellar news for kay jewellers and jared miss the Second Quarterest mitts and issued a weak outlook. Part of it was an 8 drop in sales in the uk stores. Shares fell 4 to 67. Investors in campbells soup werent saying mmm, mmm good after revenue came in short of expectations at the core u. S. Businesses as they cooled down. As a result, shares were off by 3 to 43. 33. And google is losing one of its top executives to a chinese smart phone maker. Vice president of googles platform android is going to chinas which makes, you guessed it, android based phones. Shares were up to 855. 43 a share. Leading the United States for a job in china presents many challenges to say the least, but for a convicted financer in china known as chinas Bernie Madoff the punishment for defrauding investors in a ponzi scheme is more severe. Its raising questions about chinas criminal justice system. Reporter this machine is known as the Bernie Madoff of china. He was found guilty of defrauding investors. He was executed by firing squad. His death is raising questions. Was he a perpetrator of flaw of a Financial System thats a threat to china and the world . The sector has been long controlled with the government with Companies Getting cash whatever and private companies cuff off. Small Companies Need financing, you have shadow banking developmenting, simple at that. Reporter she built 57 developments using money borrowed from the community, a common practice in china. All of these buildings were built by him. He was such a figure in this town, this road is supported to be named after him. He offered returns after 24 to 80 attracting investors like this retired math teacher who didnt want to show his fair for fear of reprisal by government authorities. Translator more than 90 of families were engaged. You would be a fool not to. People here have no way to invest. Reporter his lawyer admits to pay out the returns he used Income Investor money while waiting real estate to bare fruit. He intended to pay everyone back in full. In 2008 he says new officials took over and ordered a crackdown on shadow finance. He was accused of defrauding investors out of half a billion dollars, was jailed, assets sold off. This summer he was executed. His family not informed until he was dead. Translator it seems as though hes still alive. I never saw the body. Reporter his daughter begged an uproar. Wow, coming up, in life, in business, who you associate with is always important but when it comes to paying for college, the right crowd could make a very big difference. Well explain coming up. First how commodities, currencies and treasuries faired today. We know this earning season was rough for retail and the teen more. With the important back to School Season winding down thats dangerous for companies so while retailers had difficulty getting into the heads of teen crowd, courtney re regan gave it a shot. Reporter they said spending will be lower this year compared to 2012 and the teen retailers with the blunt of the pain. I joined eighteen agers to figure out what is hot and not for back to school. What an education it was. None of the eighteens bought any clothing or shoes for back to school yet. Wait and see what people are wearing in school and i adjust to that. Yeah. Reporter so its a wait. You want to see what everybody else is wearing . If everybody waits . There is always somebody that starts the trend. Reporter they are aware of value. When they start shopping, they want their money to stretch. Its a great price range. The gap, they have nice products. Im commuting back and forth to school, so ill be buying gap, stuff like that so i got to make sure i have money to get back and forth to school first before i by new clothes. The clothes i have will do. Reporter which of you guy wills spend your own money . Nearly everyone is throwing in some earnings from babysitting or chores. My parents pay for what i need and if there is something i really want but i dont necessarily need it or its in the budget, if i really want it, ill get it. Reporter the boys have sights set on the latest sneakers but say the spending limit is 100. At the end of the day, it comes down to the brand imlating their favorite celebrities. We like the kendall and kylie line by the kardashians. Its about brand and what everybody else is wearing. You dont want a bad label across your chest. Thats so hard. Reporter the teens may be keeping up with the kardashians but keeping up with the ever changing taste of teens has proven to be a difficult task for many retailers. For nightly Business Report, im Courtney Regan in new jersey. And then when those teens are ready for college, they may be looking for alternative ways to pay for college. As marry thompson tells us in the second part of our series, one way to pay may be as easy as following the crowd. Reporter there are some in the College Crowd turning to crowd funding to pay their way through school. I raised 20,000. Reporter the 20,000 coming from investors jennifer convinced to put their money to work in her. After i graduate with my bachelors degree i plan on attending graduate school to be an occupational therapist. Reporter school craft founded her, a platform where approved applicants who need funds to finish school or start a company can pitch their potential who get a cut of their future income. Here is justin mitchell. It aligns interests entirely between backers and prospects. A bet aeroprospect does, the better the backer does. Reporter six months after graduating, students start returning a negotiated percentage to investors. It varies like loan size and profession and cant exceed 10 of the students income and the payments continue for ten years. The funding comes with no Strings Attached in terms of things the prospect must do. They can take whatever job they want and ideally thats what they will do, is follow the things they are interested in. Reporter the risk for investors they may not get all the money back, the reward, they could get more. The program is only a year more but estimates the return on these invest mments should be 5o 8 a year. It makes money through up front and annual servicing fees. Paid funding 19 people. A sign it may take a crowd, not a village to get a student through college. For nightly Business Report, im mary thompson. The Business World spent this past week figuring out who will replace steve balmer . Now someone is taking bets. Of course its a british bookmaker and who could be the next to run the company. The top ten picks are current or former microsoft executives. No kia ceo is the favorite at 51 followed by current chief operating officer kevin turner. Here are the interesting names, netflix Ceo Reed Hastings 161 and Marissa Mayer and cheryl sand berg at 331, bill gates 501 and tim cook at apple, 1001 right now. It will be somebody from disney or something. I think it will be. Thats nightly Business Report for tonight. Im susie gharib have a great night. Im bill griffeth. See you tomorrow. Nightly Business Report, has been brought to you by. Sailing through the heart of historic cities and landscapes on a river, you get close to iconic landmarks, to local life, to cultural treasures. Viking river cruises, exploring the world in comfort. Female announcer research now shows that your brain has tremendous power over your health. The Scientific Data proves that your thoughts, beliefs, and feelings affect the physiology of your body more profoundly than you may realize. Announcer join physician dr. Lissa rankin as she teaches scientifically proven techniques to train your mind to heal your body. 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