And thats where a new government report comes in on the prices something near and dear to all of us, egg prices. The department of agriculture reports the prices are at an alltime high following the worst outbreak of bird flu in decades. Its basic classic supply and demand, fewer eggs, higher prices. And as we report, the shortage not just for eggs may be far from over. Reporter avian flu, officials now call it the worst animal Virus Outbreak in u. S. History. Its been more than two months since the last case was detected but the damage is done. 48 million chicken and turkeys had to be destroyed and they are finally lifting the quarantines and some farmers are starting to restock. The first had in iowa is brad me whose farm became infected in may. It was a huge relief no question about it. Reporter the turkeys will begin hitting the market later this fall. Farms in minnesota are beginning to repopulate as well and so far its turkey operations and not yet egg facilities which suffered the steepest losses. Well anticipate there will be birds back in barns as early as september in some cases. Certainly ramping up through the end of this year and really strong egg production coming back on the start of 2016. Reporter still it will take about 12 to 18 months for u. S. Production to return to normal. In the meantime, egg prices have soared. With the wholesale price for a dozen midwest large eggs up more than 140 since april. Analysts expect prices to remain elevated into 2016. But even as farmers begin to get back to business, the entire industry is bracing for more bird flu this fall when waterfowl carrying the virus fly south. Producers, state officials and the usda are scrambling to prepare. We are preparing for the fall and spring. Weve got a lot of planning going on within usda but also within the states themselves. Especially all of the major poultry producing states and with the industry. Reporter farmers are beefing up biosecurity and performing routine tests on flocks and in many poultry producing states including georgia and North Carolina which havent been hit by bird flu response drills. The usda says it will also have a vaccine ready if the need arises. But its not just farmers and consumers feeling the impact of bird flu. The ripple effects extend here to the iowa state fair. Which normally has 1,000 poultry exhibits. Because of bird flu, fairs across the u. S. Are banning live birds and instead filling the space with pictures and educational displays. For nightly Business Report im Morgan Brennan in des moines, iowa. We referred to a moment or so ago the number of u. S. Workers filing new applications for jobless benefits rose slightly in the past week but at a level consistent with a strengthening labor market. Jobless claims increased 5,000 to a seasonally adjusted 274,000 the average for the past month fell to its lowest level in 15 years. Retail sales rebounded in july suggesting the economy is growing solidly in the third quarter. Junes retail steals were also revised higher to unchanged from its original 0. 3 drop. The strong sales were due to increased purchases of everything from automobiles to furniture. Change of pace on wall street today after numerous triple digit moves. Stocks ended basically near flat. A drop in Energy Shares did offset the positive Economic News we just mentioned and those strongerthanexpected results from cisco we told you about last night. By the closing bell the Dow Jones Industrial average was up five points to 17,408, nasdaq lost 10, the s p 500 fell 2. The big story was in the oil pits today. The price of crude tumbled to a 6 1 2year low midday on a big rise in u. S. Stockpiles. By the settle crude was off 2 1 2 percent to 42. 23. Eight banks have reportedly agreed to pay a lawsuit that they rigged the security market. It includes barclay, bank of america, citigroup and soldman sachs and others. Speak of Goldman Sachs the firm will pay 250 million to settle a mortrelated lawsuit. The suit claimed the bank defrauded investors about the safety of mortgagebacked securities purchased in 2007 and 2008. That time, of course, leading up to the financial crisis. As part of the agreement, Court Papers Show that goldman denied liability. The Brokerage Firm edward jones will pay 20 million to settle claims it overcharged muni bond customers. The settlement was made with the s. E. C. Which said that edward jones didnt offer new bonds at the initial offering price and instead took the bonds into their own inventory and then sold them at a higher price. The agency also described this settlement as the first of its kind. Authorities have reportedly launched an investigation into the former chairman of dean foods the countrys largest milk processor. As reported by the wall street journal theyre looking in to whether thomas davis leaked inside information to a professional gambler who then may have tipped off golfer Phil Mickelson. Kate kelly is here. Shes been following the story for us all along. Can you explain briefly, kate, what this is all about . Sue, just simply put Insider Trading involves an individual using nonpublic and material information, information that actually could move a stock once its out and trading upon it at a time when most other people other than company, Board Members and so on dont have the information. Its illegal in many cases, although its a bit of a gray area in terms of u. S. Case law. The allegation being investigated here, and we dont know what really happened, we dont even know if a case will be brought, is whether or not this board member who was nonexecutive chairman for a time, passed on information ultimately to the golfer Phil Mickelson about what was in 2012 a deal the company was doing and whether or not mickelson who got the information ostensibly second hand from a middle man, this professional gambler was able to trade upon that and we dont know if he even traded for a profit, thats what they looking into, the s. E. C. And the justice department. A couple of quick questions. What do we know about the former nonexecutive chairman and mr. Mickelson . How did mickelson get the information . Two mickelson had to have known both the guy and that the information was protected . To be guilty of any charges or to face some kind of charge . Great questions. So, thomas davis from based on what ive read did know this gambler Billy Walters and there was some, i dont know whether it was a friendship, a business relationship, some relationship there according to the newspaper. And walters knows Phil Mickelson. So, it isnt clear whether or not davis and mickelson directly know each other, and that could potentially be a problem if the feds try to bring an Insider Trading case. Why . To make a long story short, recent judges decisions have suggested that there has to be if you will a quid pro quo between the provider of the information and the person who uses it, which in this case is davis and mickelson. Some understanding on the providers part, on davis part, that hes benefiting mickelson and vice versa. That isnt there, it could be difficult to bring a case. What about the average investor . Does this case have implications for the average investor or programs no perhaps not . The thing about Insider Trading it makes the markets unfair for the other investors, its an uneven playing field. So what the government has tried hard to do in recent years is to root out some of these cases to serve as deterrents to people who might do it in thefurt. Again, its early days on this case but if the facts are proven and its a classic Insider Trading case the idea would be that someone like Phil Mickelson perhaps had an unfair information advantage make due to his connections and wealth that average investors didnt have and that moved the stock in a way that may have disadvantaged others. Others, right. Kate, thank you very much. Thank you. Keep following the story for us. Will do. Days after an epaled team accidently released 3 million gallons of toxic sludge from an abandoned mine into the Colorado River the economic damage is just starting to be tallied and as scott cohn reports from durango, colorado, there are thousands of mines just like that throughout the west. Reporter to look at it, it seems like things are back to normal. The sickening orange sludge has dissipated but the Economic Impact along the animas river has not. The river is still closed to recreation because officials are worried about people picking up the sediment left in the riverbed and the rocks and thats the start of the Economic Impact here in the thick of the tourist season. Downstream in new mexico, the epa is trucking in Emergency Water supplies for irrigation and feeding livestock. And its also reinvigorated the controversy about tens of thousands of abandoned mines throughout the west. The Navajo Nation which says that this still has affected its very way of life says it is suing the epa and says that this site should be designated a superfund site freeing up millions of delorollars of clea money. The problem with an area heavily dependent on tourism is designated this as a superfund site. Theres always been a delicate balance between politics, science and the economy. This spill may have shifted that balance somewhat and, again, revived the debate. Scott cohn, nightly Business Report, durango, colorado. Still ahead, cuba is one of the least connected countries in the world, so why is air bnb which relies on the internet making a big push into the island nation . Earlier in the program we told you about the rise of retail sales in july, one item people are buying more of is denim. Thats good news for apparel retailers since theres a lot of money in jeans. Just last year global jeans market was worth more than 1 billion by some estimates and as Courtney Reagan tells us the fashion trend is picking up steam right before the key backtoschool shopping season. Reporter hardium targets backtoschool messages insists denim is a School Supply and this year the retailer might be right. While the backtoschool season is historically one of the most important for denim, last year sales of jeans wear dropped dramatically as athletic wear sales soared leading many to declare the death of denim but now theres signs that denim isnt so dead at all. Investment bank fdr conducted an Online Search survey and found the number of consumers searching for denim online increased 5 compared to a drop last year. And analysts say its because manufacturers have reinvented the backtoschool staple. This is denims way of fighting back. Theyre adding more innovation. Theyre adding more Synthetic Fibers and fabrics to the denim not just cotton, and thats making it, you know, more softer, more stretch, and also theyre adding new washes in denim, too, to just make it more appealing, Something Different so the consumer doesnt feel like theyre buying the same thing. Reporter new demand is particularly good for retailers benefiting from back to school. Millennials is the largest dollar segment and they are showing renewed interest of denim with skinny jeans beings it denim trend retailers like American Eagle and abercrombie are turning to a new style. They are trying to bring back the wideleg denim. I think they tried to bring it back a couple years now but the consumer hasnt accepted it but it feels like this could be the year and they are stocking it in much bigger prejudices. Reporter on its Earnings Call ralph lauren execs said it had a terrific response across all of its brand tiers. While macys results were mostly disappointing the Department Stores cfo called for a resurgence in denim a strong point for the quarter. Vs corp the company that owns wrangler, lee, and seven for all mankind said global revenues were up 6 in the most recent quarter and up mid Single Digits in the americas, signaling challenges in the midtier u. S. Denim market have begun to abate. They think its a lifestyle switch than just a fad the denim resurgence may be more short lived. For nightly Business Report, im Courtney Reagan. We begin tonights market focus with a late earnings beat from nordstroms. Announcing an increase in Quarterly Sales thanks partly to a recent acquisition and its Canadian Stores performance and the company raising its annual sales growth guidance. Sales were initially higher in afterhours trading. In the regular session the stock was off a fraction to 74. 92. A disappointing quarter from El Pollo Loco they missed on the top line and earnings were pretty much in line with forecasts. Shares slid initially after the close. During the regular trading session the stocks up 3 to 18. 36. Stuff day for shares of kohls the retailer missing earnings and revenues estimates it blamed a late backtoschool start. And shares tumbled almost 9 to finish at 56. 11. Mixed quarterlies from dillards it beat on the bottom line and revenue missed analysts mates and weakness came from furniture categories and shoe sales were strong. The stock rose 2 to 97. 03. A Boutique Investment Bank is making its wall street debut and shares priced a dollar below the firms range at 21 apiece. They raised 220 million in that offering. Those shares up more than 6. 5 . A management reboot at cocacola, the dow component names james quincy president and chief operating officer today. That spurred speculation that the Longtime Company veteran could take the top spot at the soda maker one day. The stock fell a fraction today to 41. 10. Samsung hopes sleeker sells. The company introducing a host of products to fend off the gains being made by apple. And its not just a new device that samsung is banking on but a new way to pay for things creating a direct challenge to applepay. But is it enough to dominate that industry . Jon fortt reports. Reporter samsung today in new york city with three pretty big announcements. One was phones. We were expecting the galaxy note 5 and we got it, but we also got a version thats current. Its not called the note as the galaxy s6 plus edge but a 5. 7inch screen and same display quality which is independently judged to be at the top of the industry and the screen. Of course, samsung had trouble delivering those screens early in the year. That caused some problems with revenue at the company. But ceo j. K. Shin here dumbling down on his bet on that. Of course, that comes ahead of an expected iphone launch next month. Samsung getting out ahead of that trying to hold down its ecosystem and they also announced samsung pay. Its like apple pay being able to use your phone for Contactless Payments at various retailers but this uses a Magnetic Field technology instead of what apple uses called nfc and that means this Payment System should work everywhere you can swipe a credit card. We spoke to mastercard and visa today, both of them say it is secure. Of course, hackers are sure to attack this because its able to be used many more places, but samsung taking a bold step here in payments. Along with phones. And then finally also Live Streaming something that they taked out. You heard of periscope, they are doing Live Streaming through youtube with these new phones as well. The older phones being able to do some of this as well with software updates, but samsung making a mark in the u. S. Now ahead of apples launch thats expected next month the smartphone season and the competition is heating up. For nightly Business Report im john fort. Coming up now 96 million little black balls can help combat californias record drought. And heres a look at what to watch for tomorrow. The Producer Price index is out and that, of course, is an important measure of inflation. A read on Industrial Production as well. And also on the data front a check on the health of the consumer with the Consumer Sentiment report and that is what to watch for friday. Secretary of state john kerry will be in havana tomorrow to raise the American Flag and formally reopen a u. S. Embassy in cuba another step to normalize diplomatic and economic ties between the two countries and as relations thaw Many Companies are looking to do business in cuba. As michelle karcaruso cabrera reports no company has been more aggressive than airbnb the online room rental site. Reporter these four women are visiting cuba from oakland, california, as a Birthday Celebration for one of them when they tried to book a hotel, they found there was a problem. You cant really use your credit card to book online at hotels so that was the major challenge. Reporter u. S. Credit cards still dont work in cuba so enter californiabased airbnb an Online Booking site that allows people to rent private homes and apartments. The women chose to stay at this neyo classical home costing them 100 a night and they paid in advance on their credit card on airbnb. Airbnb launched in cuba last april and within two months had more than 1,000 homes listed. Including apartments like this one. It turns out cubans have been rebelli in renting rooms in their homes for decades because it was one of the only private sector activities permitted by the communist government. When fidel castro seized power he quickly took over every business so there was plenty of supply for people who wanted to make extra money legally. What marta likes she gets paid no matter what even if the client doesnt show up which used to happen a lot in the past. To airbnb its like a miracle. Reporter this is the airbnb executive in charge of cuba. Airbnb is based on the internet. This is a country with hardly any internet. How do you overcome that hurdle . Cubans are entrepreneurs and they have [ inaudible ] and for those that dont have internet, they have found ways to leverage local connections to represent many. Reporter here in cuba theres a sort of gray market for internet access. Those lucky few that do have a legal connection to the internet manage the airbnb listings for those who dont. Airbnb says cubans who have rented out their homes have received on average 90 for each day. A huge amount of money in a country where the average salary is only 20 per month. Im Michelle Caruso cabrera in havana. In droughtstricken california reservoirs have turned black and officials want them that way, black plastic balls are covering water sources in the Los Angeles Area as a way to preserve that precious resource. Jane wells has our story tonight. Three, two, one. Balls away reporter in californias epic drought no idea is too crazy. Not even releasing into l. A. Reservoirs plastic balls you might find at a mcdonalds play area. We started putting shade balls on here about 2 1 2 years ago. Reporter this week the l. A. Department of water and power released the last of 96 million socalled shade balls on top of open reservoirs. Originally the drought wasnt the reason for the balls. The epa ordered open reservoirs covered to improve Water Quality by avoiding bad chemical reactions and algae from direct sunlight on the water. But along the way the dwp discovered the shade balls also keep 300 million gallons water a year from evaporating. Thats equivalent for us about 2,700 average homes here in los angeles. Thats enough water to fill almost five rose bowls full of water every year, so its a dramatic amount of water. Reporter the idea of the shade balls came from a department biologist who saw them being used at airports in between runways where water was puddled to cover the water and keep the birds away and its a lot cheaper than the original idea for this reservoir to buy the Worlds Largest pool cover which would have cost hundreds of millions of dollars and would have required the building of a temporary reservoir while this one was fitted. This idea is almost 90 cheaper. We came up with the idea of putting these balls manufactured here locally shade balls, 96 million of them at a cost of just 35 million. Reporter california is mandating other changes to save water like lowflow showerheads but nothing has gotten as much attention as the shade balls which are supposed to last a decade. Will the rains return by then . Maybe sooner. El nino is coming and new images from nasa show the warming pacific in red and white ahead of the drenching el nino of 1997 so strong theyre giving the new one a nickname godzilla. For nightly Business Report, jane wells, los angeles. And finally tonight, a story brought to you by the letters h, b, and o. The Pay Tv Network owned by time warner has agreed to a fiveyear partnership with the nonprofit behind the Childrens Television program sesame street. Starting this fall new episodes will air first on hbo. Before appearing on pbs nine months later. The deal allows sesame work schomm shop to double the programs. And its so competitive, that particular niche. Its growing by leaps and bounds. Cookie monster. Cookie monster going to hbo. Thank you for watching nightly Business Report. We want to remind you this is the time of year your Public Television stations seek your report. Thanks for your support and thanks for watching. Have a great evening, everybody. Well see you tomorrow. Announcer the following kqed production was produced in high definition. Must have soup the pancake is to die for it was a gutbomb, but i liked it. I actually fantasize in private moments about the food i had. I didnt like it. You didnt like it . Dining here makes me feel rich. And what about dessert . Pecan pie . Sweet potato pie