Transcripts For CNBC On The Money 20160827

On the money starts right now. Books and backpacks and binders, it is backtoschool for millions of American Kids and teachers but should there be a thing. Is a twomonth vacation an idea whose time passed and should we break tradition and look at yearround education. That is our cover story this week. For some students, school is never out. Classes are in session all year long. 3700 schools are on a yearround school in 2011 and 2012, most recent available said that is 4 of public schools. Instead of a long summer off, the 180 Day School Year is being reorganized with Shorter Breaks throughout the year. Proponents say yearround school is designed to stem Summer Learning loss. Most students lose math schools and low income children lose reading schools. Another advantages include reducing student and children burnout and for low income families access to health care and free and low price meals but it creates scheduling problems for family. It is hard to find childcare during the breaks in the spring and the fall, with multiple children, with not all schools in the district having the same calendar, families have to juggle conflicting sked yuchlts and with classes in the hot summer months, many schools dont have airconditioning. That adds to the price tag. Changing the calendar year is a big challenge for any school but does the switch really improve learning . Joining us now are david hornak of the National Association for year round education and christine campbell, the president of the West Virginia chapter of the American Federation of teachers. David, you have a couple of schools in your district on the year round schedule, why are you such a fan of this approach. We know benefits firsthand to the benefits of the calendar. Students and staff that operate on the calendar are able to take breaks more frequently and when students are actively engaging in learning, they are more prepared to navigate the curriculum moving forward. Couple that with the fact that we have our faculty that are able to be reflective practitioners and able to look back at where theyve been and look forward to where they are going with periodic breaks. We find it is a great match. Christine, you guys also have schools in your district on year round calendars, is it a good approach and a good fit for everybody and what are some of the downsides . We do have a couple of schools in one district that are on a balanced calendar. We have a couple of schools that were and have gone back to the traditional calendar based on the fact that is it is too the logistics of it really dont work for multiple districts, for changing from one to the other, with all of the things that we have to coordinate statewide. It is interesting, david, that the argument over this approach really seems to be more about logistics than learning. Evidence on the learning is actually pretty mixed right. This has been debated for years. It is not clear that yearround school helps outcome. The Newest Research is very, very clear. Outcomes for the students that are operating on a balanced School Calendar are outperforming the students on the traditional calendar. On average, a teacher on the traditional calendar is required to reteach between four and eight weeks annually after the summer intermission. If you were to combine that over time, you find that students entering high school to be a year to a year and a half behind counterparts on the balanced School Calendar and just wonder why do we keep having the debate regarding adult issues in many cases. Christine, is the evidence clear in your view . Or is the jury still out . Well, aside from the logistical problems, there are so many other things that actually also improve student achievement, and those are some of the things that were working on in West Virginia. And that is providing Wraparound Services through community schools, it is an opportunity to for the summer programs that we used to have, that improve literacy and actually connect College Students to Elementary School students are federally funded. In the summer, they are an opportunity for federal funded programs, but in the intercessions, it falls down on the locals. And so the resources that it takes to provide some of those programs, we dont necessarily have in our rural areas. That is the final element of this, david. The cost issue. You guys yourself have had budget challenges. Is yearround schooling more expensive . The reality behind this is, yes, we have a lot of resources that are being directed at our schools. I just wonder if we would be able to repurpose those resources in another way if we didnt continually be challenged by the summer slider, that Summer Learning loss that occurs annually. And would wager that if we could repurpose the funds that were putting into closing those learning gaps that we are in fact creating by operating on the traditional calendar, i just wonder what education would look like in the future. For now, most people are headed back to school. Thank you so much for joining us. It has been a pleasure. Thank you. Now here is a look at what is making news as we head into a new week on the money. Americas economy continues to grow at a sluggish pace. The Gross Domestic Product grew an annual rate of 1. 1 for the second quarter, about what was expected. It is down a little bit from the last reading of the gdp. Most Analysts Expect it to pick up in the second half of the year. It was a sleepy week for the markets. The dow and s p 500 posting the lowest close on thursday. The nasdaq had its first back to back losses in two months but stocks are mixed on friday. Signs of strength in americas housing market, new home sales climb to the best levels since 2007. They jumped more than 12 last month to an annual rate of 654,000. The best in nine years. Low Interest Rates and a strong jobs market are helping boost the numbers. And if you think the roads are more crowded these days. You are right. U. S. Driver logged a Record Number of miles in the First Six Months of the year. 1. 5 trillion miles exactly. That is up 3. 3 over last year. Falling fuel prices and more efficient cars and Unemployment Rate factor in. Think of cleveland and you think of a river whose caught on fire in the 1960s, but think again. Cleveland does back and in a big way and Startup Companies are a huge part of the rebirth. Kate rogers has more. With a historic nba championship win for the cavaliers and the recent National Convention under its belt, cleveland is proving it is ready for the national spotlight. Now the citys startup scene, rebuilt ar after being torn down by two recessions is fighting for a shot of its own. Tom licks, founder of cleveland whiskey, launched his business in 2013 after selling his Software Company in boston. The startup uses new technology to accelerate the distilling process from years today, something that may not have been easy to build in a crowded city. Jumpstart is starting and have invested 35 million into 80 companies that have gone on to generate 2 billion. 30 of the investments are in women and minorityrun businesses. A decade ago, polices like cleveland places like cleveland didnt have this but now they believe it is the future of the economy. Nationally the Cleveland Metro ranks number 12 for Small Business growth according to the Kaufman Foundation with 1100 Small Businesses for every 10,000 residents in the area. Local groups like the detroit shore Group Community Development Organization have helped raise 30 million to revitalize once troubled neighborhoods like the Gordon Square Arts District. Neighbors are Getting Better stronger and people are moving back into the city from the suburbs and outer cities and there is a strong desire to be here. And people are moving here quickly. Downtown is being revitalized with billions of dollars in new construction and influx of new residents. Since the early 2000s theyve seen a jump of 80 in population and a 70 increase in millennials. And more people means more business and they are leaning on the support of locals to start to grow. The best part is being part of a revitalization and being part of that growth. What i was most impressed with the hustle and the drive the Small Businesses had and the support system from consumers to nonprofits to the mainstream businesses there, they are all so invested, kelly, in making sure that cleveland continues to succeed. It is clear to see. And is it spreading throughout the whole city. Absolutely. There is about 3 billion approved in Construction Projects to go towards that Downtown Revitalization in 2016. That is a huge number. There is another area called the Gordon Square Arts District where old city soda is based and theyve undergone 30 million worth of revitalization over the past decade. Its taken a longer time, but you can see that spreading out block by block. And it is inspiring and a great trip. Thank you for bringing it to us. Kate rogers. Up next, on the money, the ocean breezes could keep you cool and could do Something Else to give you a step closer to reality. If living abroad is on your retirement checklist, we have some affordable destinations for you. And as we go to break, take a look at how the stock market ended the week. In the search for Clean Renewable Energy to power the planet, one possible alternative solution is wind power. Jackie deangelis takes us to block island off the coast of rhode island where the countrys first offshore wind farm is just weeks away from pouring on. It costs 300 million to build. 300 miles south of block island, construction of the first u. S. Offshore wind farm is nairly complete. When operational in early fall, this 30 mega watt project will provide energy to roughly 17,000 homes. That covers the island and a little more. The project is the first of its kind in United States. Estimates suggest it will reduce Consumer Power costs here by roughly 30 , important to this community where energy costs are among the highest in the nation. Deep water wind, the Company Behind the construction of this fiveturbine wind farm used pro vat funds to construct it and will receive a government subsidy in the form of a 30 tax credit. The wind turbine under construction behind me is almost 600 feet tall. Its about three miles off the southern most important of block island. Why this project is so important is because people say it lays the blueprint for projects to come. Its the first offshore wind farm in the United States. Deep water is using that blueprint to plan its next project, an offshore wind farm between block island and ma thats vineyard that would generate 1,000 megawatts of power power. In the next decade well see a much, much larger opportunity. We have an enormous offshore wind resource. Nearly 16,000 megawatts of offshore wind projects are in various stages of development. Analysts think growth will be high. These projects have their critics. Some say theyre an eyesore that will hurt Property Values. Thats one of the huge concerns t Property Values could be a lot worse because you have these structures youre looking at instead of a beautiful view of the ocean. While this brings down energy costs on the island, the rates that have been locked in are double what homes on the mainland pay. Deep water says the energy cost also come down as Technology Gets cheaper and the projects continue to scale up. Of course, for now its this project thats getting all of the attention and its literally fueling the future of the debate around offshore wind projects in the United States. Kelly . Jackie, thank you. Our jackie deangelis. Up next were on the money. If you want to stretch your retirement dollar, you can live even cheaper aboard than stateside. From yoga in the air to flashy arcadestyle jims, how the fitness world is mixing it up to get you in the door. Ll th. Ding, flies, meow febreze air effects heavy duty has up to. Two times the odoreliminating power to. Remove odors youve done noseblind to [inhales] mmm. Use febreze air effects, till its fresh and try febreze small spaces. To continuously eliminate up to two times the odors. For 30 days febreze small spaces and air effects, two more ways. [inhale exhale mnemonic] to breathe happy. If you are ready to stop working but want to move on to a new adventure, you could retire to another country. Would a new lifestyle be a permanent vacation or are there kathleen pettycourt is publisher of live and invest overseas. Thank you for joining us. And how many people are considering making a move like this . A lot. Many more than you might imagine and more all of the time. Today it is an increasingly common mainid yeah idea. You have three destinations. Lets start with portugal. It is a wonderful country and has so much to offer the retiree. It has great weather. Very affordable cost of real estate and affordable real estate and beautiful beaches and medieval old towns and culture. It is the best of the old world and very affordable and in fact very welcoming of foreign retirees right now. Your other two locations closer to home in mexico and belize. What makes these places attractive to retirees . Mexico and Central America have been really the most popular destinations for this idea for a long time because they are so nearby, so accessible. Their sunny and sunshine and good weather is a top priority for retirees generally. As well as affordable, for cost of living and real estate if you want to buy a home of your own and both belize and puerto vallerta, mexico, in particular, offer all of those things. And another thing that both of these places, cayo belize in particular and mexico offer is a established ex pat communities. And one of the biggest risks has to be health care. How does that work if you retire and move overseas . The truth is the standard in quality of health care in many places and in these three countries in particular could be as good or better than in the United States. And it is definitely going to be more affordable. Health care is more expensive in the United States than anywhere else in the world. And you could find very International Standard hospitals and other facilities, English Speaking doctors to get good care but the thing to understand is your u. S. Health insurance wont travel with you or cover you overseas. Do you recommend that people rent a home or is buying one the better decision . I strongly recommend renting first generally, because this isnt for everyone, frankly. Not everyone is going to be happy in this new life. And the first place you decide to settle, maybe that is not ideal for you and you want to move. If you bought a home, then it is more complicated. You have to resell and it is expensive and maybe you cant find a buyer. I really strongly recommend rent for six to 12 months at first, to make sure that the place youve chosen is the place you want to be and that the idea works for you in general. I have a feeling ill hear from my parents whose interest you have probably piqued here, kathleen. It is fascinating that more people are considering this and going ahead with that. Thank you for joining us. Thank you very much. Kathleen peddicord. Up next on the money, a look at the news for the week ahead. And these new workouts are anything but boring. Well run through how some gyms are amping up the fun in your fitness routine. Here are the stories coming up that may impact your money. On monday we get a look at the health of the consumer. Tuesday well see if home prices are going up or down when the caseshiller home price index comes out. Warren buff let turns 86 years young. On thursday well get auto sales for the month of august. On friday the closely watched employment report comes out. Well find out how many jobs were created in august. And the competition in fitness is fierce and studios are going all out to get you crazy fit. Diane oleic is here to show us the ropes, literally, i guess, from washington. Well, kelly, it started at small boutique Fitness Studios but national places like crunch are offering new ways to work the same old body and taking fitness to new heights. It actually feels really good. Whether you are hanging for the ceiling or bouncing off the wall, you are definitely not bored and that is the strategy behind new fitness offerings in a space that is getting increasingly crowded. How important is it to really mix it up . Oh, so important. I think nowadays, the students are getting much smarter. They are getting much more educated about fitness and wellness and the different offerings so it is important as a business to constantly innovate. At spark yoga in arlington, virginia drop your toes towards the floor, point your toes and then coming in to vampire. They are taking your downward dog up in the air, strengthening core and grip and decompressing your spine. But more than that, they are attracting people who just want something new. There is so much you could do between cycle and bar and aerial yoga and everything and so i just try and keep switching it up to stay active and not get bored with anything. Impossible to get bored at ag six on manhattans upper east side, it is Something Like a human video game where you follow the lights on the floors and walls, working both body and brain. It is ridiculous. I have never sweat so much, worked out so hard and felt so tired when i was done. The technology is by a Spanish Company povva gym, they started in flooring but put in 30 workout studios across europe and they tell me they will double that in the next year. We fielded a ton of calls. A lot of people are really interested in the technology and now it is up to them to head over and check it out for themselves or come here and make the investment. The system costs over 100,000, but the payoff could be big. Because in fitness today, if you build it, and flash it up, they will come. Now not only are the Fitness Studios benefiting from the crazier workouts, but the companies behind the crazy products are doing just as well, from Companies Like paffa gym to boxes and balls and kettle bells an boxing gloves and i could go on and on and it amazing the growth in this sector. So you have sampled a bunch of new crazy and upside down workouts and how did you like them . Well, i wont report on it if i havent done it. I thought the upside down aerial thing yoga is but when you are hanging upside down, your back is amazing. As for the other pin ball thing, it was fun, i dont know how long i would do it, if i would get the month long membership. But it was definitely fun for a group of people or bring your fans or as a destination. Diana, thank you. Diana olick again, trying all of this out for us. Telling us about the newest trends in fitness. That is the show for today. Im kelly evans. Becky quick will be back next week. Thanks for joining us. Next week dolly pardon. Each week keep it right here. Were on the money. Have a great one and well see you next weekend. Hole room are you kidding . Wash it . Lets wash it with febreze. For all the things you cant wash, use febreze. Fabric refresher whoa hey mrs. Walker inhales hey, it smells nice in here and try pluggable febreze, with up to 4 times the freshness. In one refill. Pluggable febreze and fabric refresher. [inhale exhale mnemonic]. Two more ways to breathe happy we are back and joined by a special guest. The one and only guy adami. Here is whats coming up on the show. Im mad as hell and im not going take this anymore. Thats one one of our traders is saying about the health carouseloff this week. And hell tell ewe why now could be the perfect time to get back in. Plus that pretty much sums up the move in bonds today after janet yellen hinted at a september rate hike. Well tell you how much worse it could get and jump around