Marketplace Morning Report
Start your day with an up-to-the-minute report on the world of business and finance with host David Brancaccio.
Turkey's prime minister was elected president of the country last night.The presidency will tack another five years onto Erdogan's 12 years in power, as Prime Minister. Erdogan has been a politically controversial figure in Turkey, sometimes compared to Vladimir Putin for some of his authoritarian political stances. A closer look at this victory and what it means for Turkey's economy. Plus, with tech companies hoping "wearables" will become a part of consumers' everyday lives, they first have to convince people to buy smart watches, fitness trackers and, yes, Google Glass. That's got Apple, Intel and others looking for new partners in the fashion industry. And with problems with drought growing around the country -- parts of Texas and California have had record-breaking shortages the last few years -- Dayton, Ohio is trying to use water to lure businesses.
Malaysia Airlines has lost two airliners this year with 537 people gone. The company's been burning through its cash and now the Malaysian government is stepping in ahead of some kind of restructuring. Plus, the broadcast TV network with the most viewers these days is CBS, which revealed better than expected profits after the market closed yesterday. CBS has the NCIS franchise, Big Bang Theory and all of the Showtime cable channels. We're now most-of-the-way through corporate-earnings season for the second quarter now, with Bloomberg News calculating that profits at S&P 500 companies will be up around 9-and-a-half percent. More on what this growth means. Also, the Obama Administration is forcing states to cut greenhouse-gas emissions from power plants. The rules, which came out in June, leave some states with tougher assignments than others. For instance, Kentucky's targets for cutting emissions seem comparatively lenient. But Kentucky relies almost exclusively on coal to make electricity, and that presents a special challenge.
First up, Moscow is retaliating against the new round of economic sanctions imposed by Europe and the U.S. for Russia's role in Ukraine and its response to the downing of the Malaysian jetliner. President Putin says agricultural and food imports will be targeted. Also, one-third of the counties analyzed in a new report have surpassed their historical averages for income-to-price affordability percentages since 2000 - making them less affordable now than they have been on average over the last 14 years. Why are homes so unaffordable now? And will that change? Also, we take a closer look at a Fortune Magazine from 1948, which includes a photo essay about a hotel under construction in Cincinnati that might have been America's first boutique or hipster hotel; a mid-century triumph of art meets business, it said. Why an article in this 66 year-old Fortune magazine entitled "Business and Ethics" is both quaint and prescient.
First up, more on the news that Walgreens has abandoned the idea of moving its tax headquarters from the US to Switzerland. This would have been a huge example of what are called "inversions": controversial, but presently legal, maneuvers to lower US tax bills. Walgreens is, however, going ahead with a $10 billion dollar deal to buy full control of the pharmacy chain Boot's, which has a real headquarters in Britain but a tax headquarters in Switzerland. Plus, marketers know where we've been and what we're buying. The NSA -- and Google -- may be reading our email. But what about our kids, and the data gathered by their schools, the states, and the educational tech companies clamoring to get into the digital classroom? Some parents are unnerved. Politicians are reacting.
The World Bank is pulling together 200 million dollars to bolster the overburdened health care systems and quarantine efforts in West Africa as troops and medical personnell work to contain the outbreak of deadly Ebola. Plus, Missouri voters are headed to the ballot booth today to decide whether to increase sales tax. Money raised would be used to fund roads and bridges. More on why your state might be next. And Detroit, Chicago, Baltimore and other cities across the country have their share of vacant or abandoned buildings and are struggling to figure out what to do with them. Fix them up or tear them down, is typically the binary choice. But now there's a third option: paint 'em and wait.
Leaders from across Africa are in Washington for the next few days to talk about trade, economic development, and combating poverty. Trade between the US and Africa is down, as demand for one of the region's prime export commodities, crude oil, is lower in the US. The summit also comes at a time that China has been working to be sub-Saharan Africa's best friend. Plus, how are things the Monday after the worst week for the stock market in about two years? Also, flight delays and cancellations cost airlines billions of dollars a year and since our time is also worth something, it costs passengers enormous amounts as well. But what if better weather data -- info gathered by planes themselves -- could mitigate delays?