Nightly Business Report for monday, may 5th. Good evening, everyone. We begin tonight with a change at the top at target, the nations number three retailer. Gregg steinhafel, the companys chairman and ceo stepped down today five months after a massive data breach that put at risk personal and Financial Information belonging to millions of customers. The resignation is effective immediately. Steinhafel had been with target, 35 years and is arguably the first Major Company ceo to lose his job to a cyber crime. The the news rattled investors, target shares fell 2. 5 , one of the biggest decliners in the s p 500. So whats next for target and will it change in the Corner Office restore trust in the company after it put so many customers at risk. Courtney raying ann after todays ouster and the search for a new leader. As time goes on well get down to the bottom of this. We are not going to rest until we understand what happened and how that happened. Clearly, were accountable and were responsible, but were going to come out at the end of this a Better Company and were going to make significant changes. Thats what target ceo Gregg Steinhafel said in january about the hol will day data breach. Perhaps foreshadowing his own firing and a note to the companys board, stein half says the last several months has tested target in unprecedented ways with several key milestones behind us, now is the right time for new leadership at target. Target cfo John Mulligan is stepping up as interim ceo while the retailer undergo a search for a permanent chief executive. Steinhafels departure itself wasnt entirely unexpected though the timing took analysts by surprise. The holiday seasons data breach has been a huge black eye for target, the retailers last Earnings Release and subsequent updates suggested it was mostly in the rearview mirror, hinting behind the ceos firing go beyond the data breach. Targets expansion into canada has been disappointing. Sales and traffic has weakened and the company was late to the ecommerce game likely costing it market share. The abruptness makes it seem like something really devastating like an interchange in the board or catastrophic information and we see the drop on this news rather the sort of pop bee often see. Target has a history of promoting ceos from within company ranks. Wall street thinks it has to be an outsider with a fresh perspective that takes over. The big question is who . There arent a lot of strong retail ceos available. A problem for a retailer in need of a leader. For nightly Business Report, im courtney reagan. The target management shakeup raises the question how vulnerable are ceos when things go wrong . They advise companies in crisis. Shes ceo of a Crisis Management firm, 10man and company. Is target ceo responsible for this data breach . Some people would say that, you know, it was an accident and he shouldnt be held responsible as ceo. Susie, i think that we now know that data breaches will happen all of the time. They have happened all of the time and they probably will continue to. I think the thing thats at issue here is how quickly he responded and what that response looks like as soon as they knew about it and that was way too long. It took too long to let people know, so i actually think that the issue is not a data breach, but a breach of trust. Octavia, i dont mean to strain the parallels too much, but why does mr. Steinhafel lose his job as a victim of potentially largely of a cyber crime and jamie dimon get to keep his when that company has paid billions, tens of billions in settlements, fines and other judgments . You know, tyler. So i dont work with either of these two firm, but i can tell you that it must have to do with the internal equity that they both have built up and in the internal ways that they have dealt with this, not only the the external ways theyve dealt with it, but i will say that i think dimon actually fessed up, came forward, started some solutions with far more e lack riddy than steinhafel did and thats the real issue is how quickly in this transparent age can you step up to it . Right. So, david, where do ceos get training for this . Who is a role model ceo who has done it right . There arent that many people that have done it completely right, susie, because the situation is changing even as were sitting here. News moves at the speed of an electron, as you guys know and it takes on more and more power as it goes over social media, so i think everybody is wanting to catch up. I actually think that mary berra as a brand new ceo is doing quite well in how shes been stepping up to something that was not done on her watch. She was lucky it was not done on her watch and therefore she can be part of the solution. For the current target ceo it was done on his watch so its harder for him to be part of the solution. It took them five or ten days to really come to grips with what was going on, it seems to me. Your argument here, da vshg ia is in the era of social media, executives do not have several days. They may not have several hours to fess up to a problem. Thats exactly right. You know, usually they say that tylenol is the best case for Crisis Management. If that were done today it would be a dismal failure because they waited five full days. Today, i think you have to Say Something within an hour and you cant say that you know everything, but you can say this is what we know. We will keep you updated and we will keep you safe to the best of our ability and we are on it. Right. Davia, we have half a minute. Very quickly to this. If you were advising target on who they would be recruiting for this new job, what would you tell the board . A grand communicator who can build trust. That was a short answer. We have another 20 seconds, davia. And how about that . Okay, great. And stocks got off to a weak start today. The dow was down 135 points on jitters about escalating violence in ukraine and disappointing manufacturing from china, but the markets rebounded after a pickup in activity in the Services Sector of the u. S. Economy in march. It grew at the fastest pace since last august after an up and down session the dow ended 17 points higher and the nasdaq up 14 and the s p 500 added three. The yield on the tenyear treasury note rebounded a little bit today after hitting a 2014 low on friday. Now the biggest decliner in the dow today pfizer on disappointing Quarterly Earnings and revenues. Shares fell 2. 5 after the worlds biggest drugmaker reported a 15 drop in profits that stung by cheaper generic medications and the loss of its patent on viagra overseas. Revenues tumbled 8. 5 . J. P. Morgan chase was another blue chip decliner today shares fell 2. 5 after a late friday regulatory firing and the bond and stock trading revenue to drop 20 . The bank won preliminary approval from a federal judge to settle claims for 280 million over misleading investors about the the risks of billions of dollars worth of mortgagebacked securities that later went bad. Despite that deal the Justice Department announced its pursuing a criminal investigation into some of the worlds biggest banks for their roles in the financial crisis saying no bank is too big to jail. In a video release, attorney general eric holder says hes personally monitoring ongoing investigations into big Financial Institutions and hes resolved to see those probes through. There is no such thing as too big to jail. Some have used that phrase to describe the theory that certain Financial Institutions, even if they engage in criminal misconduct should be considered immune from prosecution due to their sheer size and their influence on the economy. That view is mistaken. And it is a view that has been rejected by the department of justice. And late today there are reports that Credit Suisse is close to settling with the Justice Department for aiding tax evasion. The amount, according to dow jones, is expected to exceed 1 billion. Good news for burned investors who lost money to the swindler bernie madoff. The latest announced payoff it to victims from the winddown of the ponzi schemers Investment Firm is 350 million, that according to irving pick art, the courtappointing trustee liquidating madoffs holdings. That means a total of about 6 billion have been given back to more than 2,000 madoff victims. Still ahead on nightly Business Report, could an unlikely Corporate Alliance shaning the video Game Industry and trade the market for consoles . That story is next. Amazon. Com is teaming up with twitter to make it easier than ever to buy things online. A new Service Called amazon cart lets customers add products they see on tweets right into their amazon. Com shopping carts without ever leaving twitter. That could mean downloading a song from a performer you follow on twitter, buying a movie a friend saw or ordering some clothing a celebrity like susie is tweeting about. Well see about that. The consumer battle over which is the best video gaming console may finally be settled and the winner will be sonys playstation, the nintendo wii or microsofts xbox. Morgan brennan reports. Defend, attack, score a potential new agreement could shake up the video Game Industry disrupting the way video games are purchased and played. The unlikely culprit, comcast corporation. The cable giant is in talks with gamemaker Electronic Arts to bring popular titles like madden nfl and fifa soccer to comcast x1 cable box system. After two years of testing a deal is to be struck in the coming months. Theyre able to download a selection to eas games in much the same way youd order a payperview movie. More casual, familyfriendly fare will be offered including fifa, madden, monopoly and plants versus zombies. This would create a new distribution model allowing a company to not only compete in space dominated by Tech Companies like sony, microsoft, apple and amazon. Com, but bypass their devices altogether. Its also a big step for Electronic Arts. If ea can get an extra couple hundred,000 people to spend money, their average revenue per user is probably around ten bucks a month for the people who spend money. A couple thousand people is a couple hundred bucks enhancement to the game revenue. They have apps, Voice Control and Cloud Storage has been a bright spot for the cable company, fueling video subscriber growth in recent quarters after years of declines and if its merger with Time Warner Cable goes through, as many as 30 million households can have access to x1. Still, there are drawbacks. Tens of millions of living rooms already stream video gaming consoles and competition is fierce. Comcast, amazon and microsoft are slugging it out and im waiting for apple to come up with something and they will, too. Everybody wants to own the living room and comcast subscribers will use smart tablls as controllers. Convenient, perhaps, for casual users and sure to keep the more serious gamers away. For nightly Business Report im Morgan Brennan in los angeles. Comcast is the Parent Company of cnbc which produces this program. Aig posted earnings that trumped estimates, but revenue missed and thats where we begin tonights market focus. The insurer says higher catastrophe losses at the property and Casualty Insurance businesses hurt its quarterly profit. Benmosche says hes focused on the long term. Were in here for the long haul. We want to make sure that over time we continue to do better and if you cut a corner or not worried about some of the risks that youre taking on now, you can get yourself in trouble down the road and we just dont want to do that. Aig shares fell initially after hour, but during the regular session the stock was up a fraction to 52. 72. The french government has opposed general electrics 13. 5 million bid for alstom. Ge maintains a proposal is good for everyone involved and is open to further discussions. Ge shares fell slightly to 26. 58. Shares of tyson foods tumbled after the company came up short in its latest earnings report. The nations biggest meat producer gave a cautious fullyear outlook because of a virus sweeping hog farms and may cut pork production. The stock fell 10 to 38. 44 making it the biggest decliner in the s p 500 today. Orbitz worldwide posted a firstquarter loss blaming it on a charge from an income tax provision. The Online Travel agency did see higher overall bookings and an increase in revenue from a recent acquisition. It also forecast revenue for the Current Quarter above analyst estimates, but investors couldnt ignore that loss and shares fell almost 2. 5 to 7. 24. An engineer at General Motors retired in the wake of the company delayed ignition recall. The retirement has nothing to do with the switch debacle which has been linked to 15 deaths. Shares of gm off slightly today 34. 75 is where they finished and walgreens saw samestorr sales rise more than 7. 5 in april and lifted by an early easter holiday. And new generic drugs. Shares were up 1. 5 to 61. 8537 humana, wellpoint and monsanto all got a lift after Larry Robbins said the stock was well placed for growth. Robbins whose hedge fund is over 7 billion said at the annual Conference Today that humana could see 30 to 40 growth. He was also excited about monsanto saying that stock is cheap. All three of those names are up more than 1 . Humana was up 10. 10. And monsanto at 114. 85. Shares of Berkshire Hathaway were down today despite a meeting with Warren Buffett over the weekend. They were just one of many topics buffett talked about with some 40,000 shareholders who converged on omaha to hear the latest words of wisdom from the billionaire investor. Warren buffett doesnt appear to be slowing down much. At 83, hes one of the fortune 500s oldest ceos, but that doesnt stop him from outpacing throngs of female reporters. No, just Healthy Eating and lots of exercise. With his usual Boundless Energy he made the rounds at Berkshire Hathaways annual meeting sampling his berkshire treats. This is like clark kent going into a telephone booth when this happens. Plague games with his buddy, bill gates. Okay, bill. My house against your house oh hanging out with a supermodel doing something he could cheer about. Challenging his partner Charlie Munger to a faceoff. 2 for the buffett bottle of ketchup 1. 60 for charlies. Charlie, onethird and youre winning it in a landslide so far. Notify me even posing for oneselfie after another, but it turns out the super human buffett may actually be mortal particularly when it comes to investing since 2009, buffetts beloved berkshire has yushdz performed the Broader Market suggest the investment god may finally be losing his midas touch. In four of the last five calendar years hes lagged his favorite benchmark, the s p 500 by significant margins and this is the first time in his 50year investment career that hes logged such a lengthy losing streak. What happened . In the last five years weve done pretty well, but weave been in an up market and we do better in down markets we do in up market, but weve done well in the up market. Still, few shareholders question buffetts track record. I dont think hes lost his touch. I think things happen in cycles and you have to stay committed to the investment for the long term. Berkshire shares at 180,000 when theyre worth 230,000 thats a great opportunity for me. Professional Money Managers feel the same way. It continues to be anybody that sold it for the last four years, it was dumb and dumber because it underperformed. Buffetts winning streak is far from over. I still think theres a lot of great opportunity for upside and berkshire shares. No one seemed betrayed by recently disclosed news that buffett has advised his wife to invest in a lowcost index fund after hes gone. If youre lucky enough to find a Warren Buffett and invest in his career you can do a lot better, but its probably pretty sound advice. At every turn, buffett was giving lots of advice. That means in a generation, if theres 1 population growth that means in a generation it is 20 better than you do. Tips on buying a home. When you live in omaha for ten years, i would buy a house today. And how General Motors new ceo is handling the recall. I had lunch with mary barra just about a week ago and shes dynamite. You couldnt have a better executive. Buffett answered 65 questions from shareholders for more than five hours. The first one was the most controversial. Why buffett didnt vote against cocacolas lavish executive compensation plan. As cokes largest investor, buffett said, quote, going to war over the plan would not have been productive. Shareholders seemed satisfied. Most corporate annual meetings are poorly attended but this one is a massive lovefest. About 40,000 people came this year. Its a well orchestrated event designed for berkshire fans to bask in the glow of the oracle of omaha. There may be critics of berkshire and buffett, but you wont find them here. Buffett tried to get what he called a c