Than a year. More on that in just a moment but first the big story of the day, jobs. The january employment report was strong. Employers hired, wage growth was visible and more people reentered the labor market a sign that many are confident about their job prospects. The economy created 270,000 jobs last month. More than economists expected and in your opinions for november and december were revised sharply higher. The Unemployment Rate rose to 5. 7 . One of the most encouraging numbers may have been the increase in average Hourly Earnings by half a percent. It doesnt sound like much perhaps, but it was the biggest monthly gain in more than six years and all of this positive news has wall street and main street looking to the federal ree a its timetable for hiking rates. Hampton pearson has more. Reporter the robust hiring in january also included the biggest onemonth gain in average Hourly Earnings in six years. To just under 25 an hour. And there were blockbuster revisions boosting the jobs numbers for november and december up 414,000 in november. The biggest monthly gain in 17 years. Decembers total was revised up to 329,000. Philadelphia fed president charles plasser is among the policy makers taking notice. This is extraordinary in many wies and another signal the economy is functioning in a fairly normal fashion and i think thats Important Message to get across and that we stop thinking about our economy as something in some kind of perpetual crisis. Reporter a june rate hike could be back in play if sustained wage growth is over the next few months. They certainly wont say its bad news. They want to see much more wage growth. They want to see 3 wage growth sustained to get to 2 target on inflation, so were still well below that. Reporter job growth was widespread. The Retail Sector led the way adding 46,000 new workers with Construction Health care manufacturing, and restaurants making similar gains. Prices right there on the corner. Reporter in the greater washington, d. C. Area chef mikist bell la opened a half dozen restaurants and hired 300 employees in the last three years and on a fast track to open three more locations and hire another 150 workers in the next year. The biggest challenge, hiring and keeping skilled employees like pastry chef ryan westover. On the job just two weeks after he was hired away from one of washingtons finest fivestar restaurants. I definitely think that the economy is very strong right now. There are a lot of jobs out there. Its almost hard to get people to work because there are so many jobs. You know and again, i just think were in a very good time right now from a financial standpoint. Repor more than 3. 2 million americans are earning paychecks than this time last year and now we need to show cash show up for Consumer Spending more economic growth. For nightly Business Report, im Hampton Pearson in washington. Well theres a relatively new industry that could see big job growth over the coming years and that is drones. When it does get going big time it will need a lot of manpower to build and run and design those unmanned vehicles. Mary thompson reports from Daytona Beach with the latest installment of our series where the jobs are. Reporter for 20yearold marko schoener its not just a hobby, its part of his education. Ive flown robotics since i was 9 years old. All my life i decided to do this. Reporter at Aeronautical University in Daytona Beach florida, one of a small number of growing colleges in Unmanned Aerial Systems or drones. We started three years ago with 11 students and that grew has grown to about 230 students. Reporter professor alex maratz said the school launched the program anticipating growing for engineers to build and operators to run drones. Why . By september, the faa will propose rules allowing drones to be used commercially. In fields like agriculture, moviemaking security and maybe even delivery services. Some people think that the commercial market for Aircraft Systems could be much bigger than the military market. Steve getlan is of aeroenvironment, sold mostly to the military bracing for a pickup in demand and hiring 100 workers this fiscal year to meet it. Once for commercial use, the National Association of unmanned Vehicles Systems international estimates it could grow to 13 billion in the u. S. And rise to 80 billion by 2025 adding over 103,000 new jobs along the way. The salaries are usually tied to the difficulty and the qualification level of the individual but anywhere from 50,000 statecide side and if theyre willing to take overseas engagement higher than 25,000. Reporter thats good news for senior Jessica Brown who abandoned plans to be a pilot to concentrate on Unmanned Aerial Vehicles or uavs. If i could do anything with uavs, i would love to do it whether the actual pilot or sensor operating working the cameras and stuff like that. Reporter stuff no longer part of Science Fiction but an industry with strong Growth Potential in the real world. In Daytona Beach, florida, im Mary Thompson for nightly Business Report. The president of the Atlanta Federal Reserve Bank said the u. S. Economy is strong and that growth is healthy enough to justify an initial Interest Rate hike later this year. Dennis lockhart also expects the economy to grow 3 in 2015 and 2016. Sue, we may get more insight into the Federal Reserves thinking when chair janet yellin testifies in front of the Banking Committee on the 24th. Monetary policy and appear the next day in front of the House Financial Services committee. It will be her first appearance before the senate Banking Committee since the republicans took control earlier this year. Now back to the markets. The Dow Jones Industrial average snapping its fourday winning streak in part because it could support the Federal Reserve to hike rates by the end of the year. Dropped 60 points to 17,824. Nasdaq fell 20 and s p 500 fell 7 points. But the dow still managed to log a very healthy gain for the week up nearly 4 . It best week in more than a year. Nasdaq more than 2 higher on the week and the s p 500 up 3 that jobs report caused treasury yields to rise however and crude rose again today to 51. 69 a barrel a gain of more than 7 for the week its best weekly gain in four years. Consumers increased their borrowing in december. The Federal Reserve reports that borrowing rose by nearly 15 billion to 3. 3 trillion. Credit card use rose the most a sign of growing Consumer Confidence and probably christ auto loans and student debt. A bit of a setback at west coast port. Unloading and loading operations suspended this weekend. The Pacific Maritime association, the group that represents the shippers said the temporary suspension is due to the labor slowdown. In a statement late today, they said Member Companies will no longer to continue to give workers premium pay for diminished productivity. Yard work and gate operations will be at the discretion at the operators. Standard and poors cut Sovereign Rating into territory. Citing greeces growing cash constraints and late today, reuters reported that greece must now apply for a bailout extension by february 16th to keep its euro zone financial banking. A few days before that deadline the greek government will have a chance to present its reform plan to euro zone finance ministers. Still ahead, spies on wall street and why one of the most powerful officials at the Justice Department warns they are out there lurking. A warning for wall street today from the Justice Department. Spies are actively trying to access the u. S. Financial system. The alert comes after last weeks arrest of alleged russian spies operating in new york. Our eamon javers spoke with the assistant attorney general for the National Security and joining us from washington with details on that. Good evening, eamon. Reporter good evening, sue. I spoke to john carlin at the expect department of justice earlier today. The message for wall street is that spies are out there and that multiple Foreign Intelligence Services are operating intelligence operations on wall street right now. I asked him what theyre trying to gain by all of this. Heres what he had to say. They want to figure out if there are ways in the shortterm it may be individuals who work with an Intel Service but have a private motive and want to make money off what they learn from the Stock Exchange like regular crooks. Could be theyre mapping it out. In the event one of the nations as a conflict with the u. S. They could disrupt what we value greatly, our financial sector. Its security. And third, just be general intelligence to inform the strategies of our adversaries. Reporter and sue, carlin also said he wants wall street ceos to work with the fbi and the department of justice if they have suspicions that anybody on their team is working with a foreign intelligence agency. Eamon, did he give you any indication of how many countries may be running spies on wall street . Reporter he wouldnt give a hard and fast number but not just russians. Multiple Foreign Intelligence Services running intelligence operations on wall street today and something executives need to be aware of. He wouldnt name names beyond the russians would he . Reporter no. You could draw up a laundry list in your mind but he would not do that. He said wall street firms need to not necessarily go after anybody in their organization who comes from one ethnic or religious background because the weak links, the people who might leak the information could be anybody. What could American Companies do and how do these spies gather that information . Reporter well its interesting. He talked about some of the oldest techniques in the spy book. Said those are happening now on wall street. Things like sex using attractive young women to approach wall street sources for information, using greed of the people theyre approaching, Old Fashioned bribery. And then revenge. He said that spies look for people who are disgruntled employees who have something against their employer and might want to sell some information in order to get back at them. Eamon javers in washington. Eamon, thanks. You bet the breach at anthem bringing into question how much the Health Care Industry spends on Cyber Security and whether its enough. According to one report its significantly less than in other industries. Joining us now to discuss this is adam meyer, a former director of Information Assurance for the naval air warfare center. Hes currently chief security strategist at the cyber risk firm surf watch labs. Welcome. Good to have you with us adam. Thank you for having me. Are these cyber criminals targeting the Health Care Companies because, one, theyre targetrich environments to borrow the military phrase two, theyre so easy to break into or three, because other places like retailers and banks have gotten harder and smarter to break into . All three, actually. As we saw in 2014 we saw quite a bit of breaches across Retail Consumer goods, home depot, target sony and as those sectors increase their spending and become a harder target if you will for attackers to compromise that data theyre naturally going to pivot to a new sector where theres a commodityrich environment and thats going to be the health care sector. One thing we see with this breach thats concerning to me is a lot of people focus on the quantity of data with the large numbers of accounts and records compromised and really got to also look at it from a qualitative standpoint. Credit cards, email addresses are easy to replace, pretty changeable, not much risk on the consumer. Here you have your name your Social Security number your address. Those are things that are pretty static. Theyre not going to change and they can do quite a bit of harm. I think most people are kind of asking in this day and age and in this environment why Health Care Companies are spending so little on this kind of issue. Well, the perception that i have is that Health Care Companies are focused on the regulatory environments. So you have the hipa regulatory. If youre complying, youre secure. In todays world, compliant does not mean youre secure. So i think theres a cultural problem where the health care organizations, and this is in multiple sectors where you have insurance companies, you have pharmaceuticals, you have Health Care Patient providers, really have to up their game quite a bit to make sure that the spending is applied to the proper places. So theyre spending what i. T. Dollars they have on compliance and on Document Management i suppose, and not enough on security. Do you think this event at anthem is going to get the attention of the big health insurancers, Hospital Systems and the like and could be a Pivotal Moment . It should. I think its going to have a very similar effect that target and home depot had in the Retail Sectors, if the board room is smart, theyre going to sit back and look at their current posture and find out where they have gaps and make sure that they have resources applyied to those gaps. One of the problems ive seen in Many Companies is they treat this as a Pure Technology problem. Theyre throwing tools at it and its got to get out of the i. T. Department and get into the c suite. Cyber touches everything we do. Brand reputation financial infrastructure supply chain. Its all applied and organizations have to make the culture change to stop treating it like technology. Treat it as a Business Resilience issue. Thats the last point thats really critical. Its a Risk Management problem. We have to leave it there, alas adam. More than a i. T. Problem. With surf watch labs. Thank you for having me. The oil used craters. Weekly rig count declined by more than 80 last week as it struggles with the plunging price of oil. In the companys recent Earnings Announcement said it would cut 7,000 jobs because of the downturn. Still, shares rose a fraction to finish at 62. 67. Two defense appliers announce theyre merging together. Harris corporation will buy defense and Aerospace Company excelus in a deal valued nearly 5 billion. The consolidation comes after years of declining defense budgets. Shares of excelus surged to 20. 13. Harris rose more than 9 to 76. 18. Shares of Madison Square garden rallied after new york knicker bockers. Driven by better sales in the entertainment and sports unit not more win bis the knicks. The stock up 2 to 78. Activist fund sandel taking aim at brookdale senior living. Sent a letter to brookdale calling for it to separate the real estate portfolio into a re. And shareholder value. Shares up more than 6. 5 at brookdale to 36. 88. Lets get right to our market monitor and his stock picks. Joining us now, jason pride at glenn mead and Asset Management firm. Thank you, jason, nice to have you here. Thanks for having me too. You say its important to have a healthy waiting in the u. S. But twist defensively over modest valuation. Labs makes the list. Why . We try to keep stability in the u. S. While taking some risk abroad. We recognize if you take risk abroad its stomach churning particularly with whats going on in greece right now. So finding stability in the u. S. Is the key piece. That means you have to focus on Health Care Services and supply companies. Abbott fits right into the profile of a stable Business Model, decent dividend yield and a company thats able because of excess returns on capital, just churn out the incremental Earnings Growth even when the economy is just pumping around 2, 2. 5 with a moderate growth rate. Your second pick into the model of emphasizing return investment capital. 19. 6 roa and accencure. A decent valuation again and the Company Returns are investor capital. The difference in this franchise in the Health Care Space and the Largest International i. T. Consulting firms available with a great steady Business Model and theyre pushing right into the asian markets and getting a good amount of market share there. You like mettronnic the irish domicile, covidion is why you like it. Its been a little bit of a controversial issue given how Many Companies are pushing into the International Trend trying to use the International Cash without bringing it back on shore. Here we find a very reasonable company, again, steady Business Model. Very focused on that supply area of Health Care Provisions but with a nice dividend yield, decent valuation and a Good Business strategy for how to do something with the cash just sitting overseas and not able to come back across the borders. Quick thought on the markets. I know you dont pay a ton of attention to the big macropicture of the jobs report but must have a thought on whether its more likely the fed will raise Interest Rates later this year. Quick thought . It makes it more likely. Were in the camp of a september rate hike being the best approach. Theyve been communicating june up until now. You know the fact is theyll probably stick with the june rate increase but have a very slow trajectory over their course of rate hikes after that in order to compensate for earlier hike. Jason, thanks so much. Have a great weekend. Thanks for having me. With glen mead. Ty . A hightech Business Solution to a common problem. Food waste and how one company is giving discarded but fresh food to people who need it. Our latest bright ideas. Turbo tax customers could not file their state tax return because of suspicious activity. Intuit is now investigating criminal attempts to use stolen data to claim refunds after hearing concerns from a handful of states. The tax Software Maker said its working with state governments to resolve those issues. Falsifying forms, misusing Company Property all sure fire ways to get terminated youd think but according to a new the irs hired back hundreds of employees who misbehaved. A watchdog found the Government Agency reinstated workers even after they accessed taxpayer information they werent allowed to or had offduty legal issues and in many cases the report also found that that misconduct cropped up again. Anyone whos worked in or around the Food Service Industry has seen good food go to waste and offquote 2012 report by the National Resources Defense Council said americans throw out 165 billion worth of food every year. Thats why the three people youre about to meet make their business to bridge the gap between our nations Food Distribution system and the nonprofits that depend on their donations. Roughly 40 of all the food in the United States goes uneaten. Most end up in a landfill. Barbara cohen and rogers brother richard are doing something about it. Richard is a trucker and sometimes had a shipment rejected by the receiver because the eggplants were too dark or the carrots werent straight enough what have you. Hed call me and id look for a church or food bank to take it. Reporter he didnt find many takers though. Richard gordon has been driving big rigs for 30 years. He spoke to us from his truck in virginia via skype. Lifelong keep it moving. Reporter there isnt much time when fresh food becomes available and many truckers offload in the wee hours. Restaurants close up late at night when most nonprofits are closed. We start to think, well if you could build an app to get people to food maybe you could build an app to help food find people. Their app called food cowboy gives forprofit food distributors a way to communicate with nonprofits looking to help the needy and vice versa. Were right on the frontier. Were doing something that hasnt really been done. Reporter barbara cohens expertise in Public Health and hunger issues help the gordons craft a big style app thats pa latable to nonprofits. Food cowboy is an air Traffic Control system for food that is coming in from a donor and going out to a recipient charity. Business Community Holds the food. So creating a system the charities can use that replicates the way they think creates a better match. Can we get an 18 wheeler into your parking lot . Reporter recipients pay food cowboy less than 10 cents a, donors get a Tax Deduction but smaller businesses like family farmers and restaurants can fewer guaranteed incentives. To grow food cowboy is depending on changes to the tax code. Try to explain to a farmer section 3 of the tax code and may grandfather you in. Thats not enough to create a permanent change in behavior. Changing behavior takes time. But it happens. Recycling turns gordon says more than a thousand truckers downloaded the app. Going up and can finally with 50 mile radius instead of driving it into another state or another city. Newer nonprofits like nourish now in marylands Montgomery County are bringing change to the system. Fresh food with its own refrigeration unit and warming up to a more businesslike approach. You get the text the phone call the application work you go ahead and rescue the food. The food goes back get it soon enough. If food cowboy is successful, the days of too late to donate could be numbered. The idea is to grow this the solution. Try to change the way two systems do it. The food cowboy folks talk about changing behavior. Theyre hoping to see a day where the kids at school and also transport some cafeteria leftovers say to a food bank that could pass on your way home. Doing well by doing good. Absolutely. We should all do Something Like that. That does it for nightly Business Report tonight. Im sue herera. Thanks for watching. Thanks from me as well. Im tyler mathisen. Have a great weekend everyone. See you back here on monday. Gwen on the Foreign Policy front we go to ceia, jordan, ukraine and russia. On the domestic front we explore economic breakthroughs in 2015 tripups tonight on washington week. No god condones terror. No grievance justifies the taking of innocent lives. Gwen but another innocent life reportedly taken today, this time of an american hostage races the ante for american involvement involved against Islamic State terrorists. Plus in Eastern Ukraine the president is reviewing all of his options. Among those is options obviously is the possibility of providinging defensive defensive assistance to ukraine. Gwen back home, wages are up, employers are adding workers and
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