Transcripts For KQEH Nightly Business Report 20150206 : comp

Transcripts For KQEH Nightly Business Report 20150206

Rose more than 200 points its fourth straight day of substantial gains. More on that in a moment. We begin tonight, meanwhile, with a massive data breach. Anthem. The nations second largest insurer, accessing information. The breach hit all of the businesses possibly touching individual policy holders, customers at large employers and Medicaid Managed Care plans. Shares of anthem formerly known as well point fell on the news. Bertha coombs has more now on the breach whos at risk the information that was accessed and what makes this one different. Reporter anthem said it discovered the breach a week ago, quickly contained it and notified the fbi but the damage could be devastating for the insurers past and current customers. In a letter to anthem members posted on a dedicated site joseph apologized. Saying no medical data stolen personal information up to 80 million current and former anthem members and employees was compromised including birthdays Social Security numbers, street addresses, email addresses and employment information. Analysts say its important that the company win back trust. Clearly, it is a crisis. They have to manage this properly. They have to assure their Customer Base that they are taking this very seriously. Reporter anthem is the nations largest blue cross operator with more than 37 million current members across 13 states accounting for the scale of the attack. The company will pay for credit monitoring for those exposed. Much of that cost picked up by insurance, nearly half of Health Care Firms boosted coverage and systems to meet Cyber Threats at a higher rate than other industries according to Marcia Mcclellan but its a race with no end. We have to constantly evolve so theres a technological solution to some of these aspects. Greater degrees of enkripgs two factor authentication for enhanced password protection and detonation software to try to fight off the spear fishing campaigns. Reporter anthems data was not encrypted but a spokesperson said the hackers were able to compromise the administrators credentials. At that point, enkripgs would not have thwarted the attack. Bertha coombs nightly Business Report, new york. A lot of value on the black market. Eamon javers has b looking into that and joining us from washington. Eamon, if that hack attack was done by cyber criminals, in general, what could this information be worth . Reporter Health Information is more valuable on the internet black market than even credit card information. Ive been talking to Cyber Security experts today who say you can sell Health Records online on the black market between 25 and 250 each. That compares to credit card numbers that go on the black market between 1 and 5. A lot more and insent vises the hackers to go out and get just this kind of data. When you say health info what are you talking about here . Are you talking about my cholesterol count or my medical history or the personal information that is attached to those files . Reporter its all that personal information you use in a medical record that you file an insurance claim. A lot whats happening here tyler, is they file false insurance claims and thats where the profit comes in for the criminals. Theyre out there filing totally bogus claims or selling the information to foreigners who then come to the United States and get Actual Health care paid for by these phony cards or out there buying Health Equipment like oxygen generators and other things and then reselling those on the black market and getting insurance reimbursement for that all fraudulent. Wow. What happens now . Whats the next step eamon . Reporter one of the interesting questions here among the people who look at this black market for information is whether or not the massive amount of information from this hack that could become available on the black market is going to drive the price down following the Old Fashioned law of supply and demand in the black market. Will those Health Records now be sold for a lot less than they were sold for before now so much more potentially coming to the black market . That could be unintended consequence for the people who actually did the hack if they try to sell it. Eamon, thank you very much. Eamon javers in washington. The bulls were out in force today. The benchmark index now positive for the year as oil prices rebounded. Earnings, decent and phi sor entered into a 7 billion deal. Well tell you about that in a moment. Dow jones tacked on 211 points. Finished at 18,884. Nasdaq up 8 points and s p higher by 21. As for oil, many traders expect the volatility to continue. Today, prices rose about 2 to settle above 50 a barrel. Brent also climbed. Now more on that pfizer deal. The drug company said it will buy hospira that makes injectable drugs for 70 million. Pfizer gained 3 and hosphira for 5 billion. Meg tirrell has details. Reporter pfizer said purchase will immediately add to earnings and strengthen what it calls its global established products unit. The the u. S. Largest maker of injectable drugs. Which are primarily drugs in the hospital the majority of those are things like antiinif he canfekct tants, an el jesices. Reporter also in biosimilars, generic versions of drugs from living cells. Like for cancer and rheumatoid arthritis. Pfizer said thats an area it plans to grow. The u. S. Finalizes around their path to market. Estimates off the size of our market for the next ten years vary all the way from 2 billion and 20 billion. It will depend primarily which drugs make it to the market and when and more interestly what will be the price of the drugs. Reporter pfizer analysts applauded the deal. The drug company dealing with generic competition, like lipitor and celebrex and said its considering a split of its businesses within the next few years. Analysts say this seal bolsters its unit of older products to better stand alone. The 17 billion is a lot, pfizer has cash to spend. Ceo ian reed said the Company Looks for Business Development opportunities and the hospere will not be a distraction. Pfizer has the appetite for a lot more. For nightly Business Report, im meg tirrell. Call it debt diplomacy, the finance minister of the new greek government met today with counterpart in germany in an effort to renegotiate the big bailout. But germany isnt budging. Ed vesta reports from berlin. Reporter there was no agreement between greek and german finance minister at the meeting in berlin. While mr. Shribler the minister insists the new greek government is working together with the European Union and troyca and sticking to the terms of the bailout. The new greek finance minister insists his government is not going to accept the terms of the current bailout and also what they want is a Bridge Program until the end of may so they can have debt talks and think about Broader Reform Program for their economy. The bottom line from the meeting here in berlin is that germany has not moved a centimeter and the pressure is ever so high for greece to really present viable program for their economy and also for their society. For nightly Business Report, im annette in berlin. And now julia chatherly with the reaction. Reporter returned to athens with the defiant message that hes given the greek people their voice back. Now changed the narrative in europe a way from austerity. For european leaders, that message was already filtering through in the past month, but theres one or two people behind me that agree with the message there. You can see what i think for the first time in all the times ive been here in athens and that is a show of support for the government here. There are peop blowing whistles waving greek flags, chanting their support of the government and the message they take in and across europe in the last two days. I have to admit, it worries me because it makes a comedown or a climbdown by this government very difficult to achieve. What weve already heard them say is were not going to argue the debt right now. Theyve got the message as far as wages and pension raising. Its concerns but can they do enough to appease european leaders a get what they want . Theyre going to announce their program on saturday and have a confident vote in the government on monday. That is then what they will take to european leaders next week and thats going to be crunch time for greece and the future of this country because the clock is ticking to work out just what can be done for greece going forward. For nightly Business Report, im julia chathly in athens. In denmark, that countrys Central Bank Cut its benchmark Interest Rates again. The fourth cut in less than three weeks. The move designed to protect its currency pay to the euro which has been stranded since the European Central bank announced its stimulus program. Still ahead, twitters earnings were better than expected but there was one number that investors are focusi. More fallout from the big hack at Sony Pictures. Amy pascal cochair of Sony Pictures entertainment and the executive oversaw is controversial film the interview will now step down. The cyber attack as you recall was one of the biggest in corporate history leaking thousands of emails, many of them embarrassing. Pascal will leave her post in may. After the close of trading, twitter surprised investors with its Fourth Quarter results. The company earning 12 cents a share doubling wall street estimates. Revenue was about 480 million easily topped consensus as well. Shares surged initially in after hours trading. Julia boorstin has the one big takeaway from twitters results. Reporter twitter is making a lot more money even if its not adding a lot more users. The company finishing the quarter with 288 million monthly active users up 20 from a year earlier but means it added 4 million users over the quarter, fewer than wall street expected. That means twitter is making a lot more money on its existing user base with the amount twitter makes for every timeline views growing 60 over the past year. Bolsters ad business by giving tools to mobile users in particular. Those mobile users now represent 80 of twitters audience and 88 of its advertising revenue. For nightly Business Report, im Julia Boorstin in los angeles. Well as you know twitter has garnered a lot of attention since it went public both positive and negative and its taken investors on a wild ride. November 2013. Twitter officially becomes a public company. The social network that allows people to post messages in 140 characters or less priced at 26 a share in what was the most anticipated tech ipo since facebook. And soon after trading began, investors clam mored for a piece of the company. The stock surged closing its first day as a public outfit at 41. 65 a gain of 60 . And by the end of the following month, december 2013 twitter reaches its alltime high of 74 74. 73 but then a proverbial tweet storm. Demanders with more and more innovation and when they dont get it, they sell. Shares stumble and today, the stock is about 44 below that alltime high. And that is nothing to tweet home about. Linked in reports a huge jump in quarterly revenue and thats where we begin the market focus. Saw sales rise as more use service to find job candidates and expansion in International Markets like china also helped link post to beat. Much higher shares initially but before up 2. 5 to 237. 97. A totally different story for pandora. The streaming Music Service reported revenue widely missed expectations as mobile advertising growth slowed. The bad news didnt stop there either. It gave revenue guidance for its Current Quarter that also trailed consensus. Shares got slammed initially in after hours trading and before the close, shares were off just slightly to 18. 41. Strong holiday demand for its skin care and Makeup Products estee lauder posted better than expected results. The Beauty Company warn full year sales fall more than expected because of the stronger dollar but shrugged that off. 78. 40. Tough day for shares of dunkin donuts. A lot of people like the coffee and donut chain but profits trailed estimates and cut its full year outlook blaming consumer challenges and competition in the breakfast environment. The company did raise Quarterly Dividend to around 26 cents a share for yield of about 2 and all the sugar you can entail. Shares fell to 46. 03. Shares for sprint in the meantime set its quarterly revenue fell less than expected. The wireless provider attracted more by cutting prices offering big promotions. Shares up more than 5 , finished at 4. 82. Same time, verizon wheeling and dealing, selling to Frontier Communications 10 billion on that one. Dow component also selling cell towers to American Tower for 5 billion. Going to use some of the proceeds to buy back about 5 billion of verizon stock. Look at the shares moving higher initially after the bell. Before the close, the stock was up a fraction to 47. 86. And now to the economy. And the trade deficit which jumped in december to the highest level in more years. The Commerce Department reports the deficit rose 17 to more than 76 billion as exports fell and imports climbed to a record level. And economists expect the deficit to widen even further. Trade deals have been a key focus in washington particularly because many there think an ambitious pacific trade pact could be an area where both parties come to get a deal done. Raise gdp by half a percentage point. John harwood spoke with michael froe man and joins us now from washington. John . Reporter trade deals a h to get through congress. This one will be no exception. The majority of republicans dont like president obama. Democrats dont like trade deals because they think they may be bad for labor and the environment but mike fro man said it will be good for wall street and workers alike. This is core to middle class economics in terms of creating jobs supporting jobs here improving wages and so i think theres an interest on both sides coming out of the election of november to find areas they can Work Together on in order to help strengthen the u. S. Recovery. And ive heard from a lot of investors, a lot of companies that are looking to determine where they should put their next fact. With these trade graemts the u. S. Will be at the center of a web of agreements giving unfettered access to twothirds of the u. S. Economy and that makes the u. S. An attractive place for investment. But if this goes through, it wont be because of big public demand for it tyler. In a recent nbc news wall street journal poll when respondents were asked to list the areas they want wall street to focus on trade agreements dead last. For the deal to go through, do these deals go through unscathed or do they get pecked at like a duck . Reporter well there are three elements that have to go through if it will get through unscathed. First of all, congress has to grant the president trade Promotion Authority to gives him the right to trade on the up and down vote with no amendments. Thats one agreement and then the asian counterparts. Big disagreements with japan with agriculture and autos and finally with the final deal they have to take it back to congress and pass both houses. Usually easy in the senate but not so easy in the house of representatives. Need about 180 republicans and about 40 democrats. So it sounds as though i know you said at the top of your report that it was going to be a tough sell but could you put odds on whether or not it will . Reporter i think its likely. This is difficult, but its not impossible and since both sides dont have much they can agree on theyve got a lot of incentive to do at least one thing and this is it. John thank you very much. John harwood in washington. Much of the trade between the u. S. And asia goes through the west coast ports and all that Economic Activity could take a big hit if a deal isnt reached soon between dock workers and as weve been reporting, the slowdown has been going on for months now but as jane wells reports, a complete standstill could be just days away. Reporter it has gotten so bad at west coast ports, the company say some ships wait over a week for a parking space and ships that used to take four days to unload are now taking 15. The Group Representing shippers and contract negotiations with dock workers warn the system could collapse on itself in five to ten days. Now the pma must decide how much longer we pay workers to work slowly. Its the same result as workers strike except workers still get a paycheck. Reporter in a rare move the Pacific Maritime association or pma has gone public with the contract it is offering dock workers after nine months of negotiations. The pma said the average dock workers on the west coast earns 147,000 a year and raises over the next five years will boost that pay to 160 grand. It has offered to continue fully funding all health care with no deductibles, premiums or copays and also raising pensions 11 and giving dock workers jurisdiction over the maintenance of trailers used by trucks for cargo at the ports. Apparently this is not enough. Concluded the latest offer is far as we can go at this point. Reporter the union said both sides are extremely close to a resolution and to shut the po

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