captning sponsored by wpbt ( willie nelson singing ) >> ♪ on throad again. just can't wait to get on th♪ ♪ road ain. >> paul: no more waing for general tors. the american icon is on e road again, emeing from bankruptcy after just 40 days. >> at the new g.m.e need to makehe customer the center of everything. and we're gog to be obsessed th this. because we don't get this right. noing else is going to work. it's that simple. >> susieg.m. c.e.o. fritz heerson tells us about the automaker's second cnce. and what american consums can expect frothe new g.m. >> pau tonight's market monitor says thetimulus package is finally startg to goose the economy. he's roberdrach, editor of the drach weekly research repo. >> susie: en, wall street's gearing up for a flood of earnings from the nation biggest banks. coming u a preview of what to exct, and what investors should look for.

>> paul: i paul kangas. >> susie: and i'm susie arib. this is "nhtly business rert" for friday, july 10. "nightly business report" is made possibley: this pgram was made possible by contributions to ur pbs station from viewe like you. thk you. 7//& >> susie: od evening everyone. "business as usual iover at general tors". that's what c.e.o. fritz henderson promised tod as he annound g.m.'s official exit from bankruptcy. he also vowed the remped company will focus oessively on customers responding to tir

needs mo quickly than the old g.m. that's the reason r some new initiaves unveiled today. new partnership with ebay th will let custome buy g.m. cars onne. the rern of bob lutz: the legendary auto executi will postpone retiremento take charge of the crtive development of procts and customerelations. the launch oa "tell fritz" weite where the public can email qutions directly to the c.e.o.. and the compy also expects to repay the $50 billion in government loans ahead of th deadline in 2015 when i tald with henderson is morning, i began by askin him what's his pn to get consumers shopng again in g.m. owrooms. >> we're verenthused about thept the products that wee launching toda areinning, vehicles like -- and we' got ek win knocks, we ve a lot of products getting rdy to come in. but it's aut the culture of this gm -- in the future about

cars, stomers and culture and in this case it's about taking those vecle launches and then supporng them the very best ve in some of the marketing and brand advertisg and franklyeliving asuch punch as we can inthe mart to let custers come back oking at it siez south you says the customer is the cent of everything. your words. how are you going to convince people that it makes sense to buy a car made by general motors? >> well, we have to -- this iabr words. but r actions and who we do every day to satisfy customers. it aboutelivering the very best qlity we can at -- when we launch a vehicle, customer buying it, the rig sort of perience with our dears. we're ry confident that our dealer body can provide the bt experience, the sales expeence for our stomernd service. so i thi we have the quality vehicle and we have beautully signed, highly fuel-effient vehies for customers to buy today. starts with that, having great

dealers and putting the st marketg we can behind them. >>usie: the chevy bolt, howdoes. it's the car to jumpstart general mors. is that still true? >>e don't have that much time,s. the bolt will launc into next year. we're not ended in wait -- intested in waiting ound to win in the mket marketpce unl the end of next yea the car itse, we' driving validationehicles as we spe. we're very excited about the bolted. we'll launch at the e of next year into the showroom. t it's about winni in the owroom in 2009 and the first part of 20 and the bolt i think isoing to be auperb vehicle. it a great-looking vicle. it is a -- it is a si of the tenological owess we have as aompany, but y know, we're not going to wait around for the bo to reinven our business. >> susie: nce you went intobanke higher a your sales have plunged 30%. is it possible to make money at

a time li this well, i don't know thatanyby i. our viality plan in the reructuring action that we've gone there were intended to allows us to operate our busine at new york america at a break-even milli about an 18% market sre. we hav't arrived y at tt cost strture, t we're we very confident by nextear we will. we're down about $23 million, which allows us to run our busiss at a break-even. it's tough for anyby to make money in the auto industry. susie: youold me that gmdzwoul. are you still telling me you have to breakthat? >> we ven't targets and we'renoo view was onn earnings interest -- ebuilt, that we would be able to orate above

break ev next year in our rth american business and we anticipate we can dohat. we have a bod of directors and we're gog to take it through the fincial projections. but we haven't upded anything from when we last prided that sort of information and there's nothing i would noteoday that would suggesthat things have chand. >> if gm doesn't make sales, ano this, but will you be forced to go back to the government to ask for more money? >> we n't believe.this is a rar. it's a second chce we had. it's a precious second chance. weave to take advantage of it. there are no 30hances. >> susiedo you have a plan? >> we think we can run thebusesr eak-even point down to a point where we're not hemorrhaging even in tough environmen it gives us annormous opportunity for improvement en the business does start to improve. i think the key is tory to run our businessven in a difficult market. have to get our cost tohe that point in 201

but th government has provided stro liquidi itself for us, our t sheet is snificantly improved. the air isuch cleaner. over blacking poi will be much lower which will a -- breakin point wi be much ler, which wi allow us to gethrough a fficult piod. >> susie: u know you have at tha whirlwind, but when do we expect gm to be onhetock market agn? >> we have -- will be themost i think in the world. it's our anticipation that nex year we'll be prepare and be able to see public nextyear. viously we have to see, but thats our wpecation today. >> susie -- our expectoday. >> susie: mrhenderson, thankyous tonight. >> thank you, susie. >> paul: a number ofegatives had walltreet under selling pressure today. among th, a drop in world markets, an earnings warning from chevron, a cline in june consumer sentimentnd growing unrtainty overhe upcoming slewf corporate earnings reports.

the dow clined steadily to post an 84 point losat mid-day with t nasdaq off 12 points. but e market stabilized in slow afternoon tradi and turned mixedy the final bell.

>> susie: they say you wld never eat sausage ain if you saw hoit was made. w apply that principle to capitol hill and therangling that goes on behd the scenes to g legislation passed. in this case, the saage is regulatory reform, a he effort at will have a huge impact o our financial syem. as stephanie de reports, today's hearings focused on reforminhow derivatives are handled. >> reporter: tod's hearing was moly about process. and it promises toe a long one. pocy analyst andy laperriere expects regulatory rorm to take at let a year, maybe two. >> what yohave here is, you ve a series of bills that in d of themselves would be pretty major legistion, and to try to p it all together in e large bill, re-regulating the financial stem is a herculn task. >> reporter: it's task filled witholitical turf wars,

despite what house finanal services chairman rney frank says about a bate between his committee and the agrilture committee er derivatives. >> i begin with an alogy to our friends in the mia, there is no fight to coveretween these two committees, i ow th's an easier topic than the complexity of how actuallyo do something. >> reporter: hers why those two mmittees are battling over who will design derivatives regulation. the secuties and exchange commission ioverseen by the house financial seices coittee, while the commodity futures trading mmission is overseen by the agriculture committee. whensked how the two would keeprom overlapping regulation, the treary secretary did verbal tapdance. >> i don't wanto get ahead of the delicate, careful proces we're trying to work throu with those two ancies. >> reporte derivatives are just one issue in thcomplex task of erhauling the fincial regulatory system. there's also expandi the role of the federal reserve, givi new invest protection powers to the securities and change

coission and creating a new consumer agency to regulat financial produc. curities industry lobbyist scott defi says lawmakers are feeling their way. the financial services sect and somef the issues that are being discsed in here, deritives regulation, securitizaon are fairly mplex topics that most folks understand really dot want legiate too prescriptively. >> reporter: wle the financial cris has given momentum to reform legislationit has also made se lawmakers cautious. they don't want to actoo qukly or do anything that could make matters wor. stephanidhue, "nightly buness report", washington.

>> paul:ow let's take a look at some stocks in the news tonight.

and those arthe stocks in the news tonight, susie. >> sus: paul, fasten your seatbelts, it'soing to be a bumpy week next week when it cometo earnings from e nation's big bas. the emttled banking sector is trying to claw back fr the financial meltdown and expectations are low. as scott gurvey exains, if you're ainvestor looking to interpret bank results, yoneed to look at t fine print. >> reporter: goldman sachsill be t first out of the block when theig banks begin reportinsecond quarter earnin on tuesday. it may well set the ne for the week. wall street prognosticatorhave been upping forecas for goldman's second quarter althgh expectations for goldman and others are lown a historical bis. goldman shares he gain 10% in thlast three months. ashwi kaul says a goldman disappointment could uet the enre market.

>> it's kind of annflection point, like, show us whayou have now. ani think if financial really disappoint extreme to the down sidehe equity markets are at sere risk, especially financial stocks. financial stoc, especially in the last three months,ome of them are u200%, 300%, 400%. >> reporter: b each individual nk will have its own story this quarter, depending which took or pa back tarp funds, and how they raised capital. banks with acte trading operatns are expected to profit from market volatilit those with capit market exposure will benefit om the steeyield curve. commeral real estate banks with lots of retail customs could face loss because those stomers are defaulting on credit cardsnd mortgages. regional bks may suffer from exposure to the commerci real estate market. investor expectations r the second quarter havactually en falling even as many of t financial stocks pces have risen. standa and poor's stuart plesser says tt's because the mpanies are expected to toss everything ty can into the write-down category toet them off their books. >> ihink the more interesting quarteis down the line in the

urth quarter when the expectations are that char- offs will continue to ri but at a single digit pace. and if that doesn't occuthen the whole question of pital levels will likely ce to the fore-front again. >> reporter: also the mix this quarter, a one-me charge againsmany banks. imposed to shore up e insurance syst that covers all nks. scott gurv, "nightly business report", new york. >> paul: mday, strategist joe battipaglia gives us his forecast for stocks,ow that economicreen shoots appear to be drying up. susie: continental airlines is flying high in e "star alliancegroup. the transportation deptment today appred the move, which gis continental, united, us air and other carrie some immunity fm anti-trust law. that's critical,ecause the allian shares pricing, schedulingand other information among the rlines in the gro. oppones argued the decision uld stifle competition, and harm consumers withigher fares. >> pl: walgreen's is now 50, for 50.

the drug storehain will open itfirst store in alaska this weekend giving it presence in everstate in the union. the storeshere will have unique, special feures to ndle frigid weather, includi heatedidewalks and drive- throughs. the rst store is slated for governor sarah palin's hetown of wasilla, a mmunity walgres says has great growth potential.

>> susie: here's aook at what's hapning next week: >> paul: my guest "market nitor" tonight is robert drach, edir of the "drach weekly report" in tallsee, florida. and welcome back to "nigly business repor bob. >> paul: you were ncernedabout s money to the economy. e you still concerned about that? >> no.no -- >> paul: snow? >> it's ginning to trickle in.t.

it's a very straightforward tuation. >> paul:o you're seeing realproe boostwill eventually help the stock mark? yeah.but you ought to be seeine beginning oft. it changes things funmentally. once istart it doesn't stop. it's a msive, massive amoun worldwide. it goes on to 2015. >> paul: what's yourime frameine economy? it will pick upits pace inthe . it's huge it's massive. this creates a technical condition, t, tt initl ws, the consion cycle, are very hand. i came up the march lowsnd they're never risited. >> paul:o that was the bottom? >>es, that's your bottom dthe m. >> paul: so need for anotherstg abt? >> that doesn'mean you won'tget. >> pau no, but- >> you endll the consequences. >> paul: but no need for one in?

>> no. >> paul: wt about the somemeplun the road? >> absolutely.you get inflatn at productivi. >>aul: productivity.that's dido. >> it's money suppli.it only hao go. so you've got to get inflation, you've got to get productivity. both. >> pau you're bullish on thestk? >> you have to own theprodtive . otherwise,t kills u. >> paul: okay.bob, y've been rue nightly business report mode portfolio since its inception way ck in 1995. let's see w 's doingersus e standard & poors 500. look at tha. the drach model portfolio up 98% compar to 69% for the intpz. i -- s&p 500. i congratulate you on th great job. >> it will get better. >> paul: let's hope so.in janua, youecommended three stocks. let's e how they pformed.

mattws iernational, which is in the funeral busess, i undetand, down with its -- strange,own almost 21%. do you still like it? >> yeah.i ink anything in quali. thers a big divergence in quality in this market. qualit stos underperform lower quality. >> paul: so it's their tn tocom? yeah. >> paul: mro canada a gatbig wi. di't that get a big winner? >> yes, su cps.it's still up. >> paul: that will gday today. >> yh. >> paul: and tre was a thirdrec. and we all know thi one -- >> oh, yh. paul: poor old ge can't findar. >>hat's representative of thequ. big divergency. >> paul: how about se newrecomm? tonight we'll stay withpaul --l player and ithink caterpillar. >> paul: theret is.on t big boa.

>> you wanthem depressed andhig. >> pl: that stock is dn. >> yeah.hat's the way you luke . and then intworld fuelservis. >> paul: aviationuel? >> yeah. >> worldwide. >> paul: int is the symbol? >> yes.and nike. >> paul: let'set nike upthere. on t big board. >> wl, they sell sho allover t . international imulus. evybody is making ney. >> paul: right. >> as fast as they can. >> paul: so you're about abullha number of years. inhe 30 years we've beentalkins the most dramati i've ev en. d the core is additional money. >>aul: money supply going tobe . >> a inflationndproductivity. paul: okay.incidentally stocksu mentioned, do you ow those personally or -- >> no, we use these on the bsit. >> paul:o it's part of themodel.

>> right. >> paul: bob, as always, i wantr thoughtsith us. >> gooto see you, paul. >> paul: my guest robt draof thh report. >> susie: recapping toy's market actio the dow ends the week in the red with a loss 36 points. the nasdaq gained three. and to learn more out the stories tonight's broadcast, to watch our streaming veo and to take pa in our daily blog, go to "nigly business report" on pbs.org. you n also email us at nbr@pbs.org. >> susie: anfinally tonight, t cars will be the norm this weekend at the nasr races at the chagoland speedway in joliet, illinois. but for one car, being h is a big probm. that's because it's madef chocolate! an artist hacreated a full- size replica othe car driven by defendinghampion kyle busc it's chocolate, coa and cocoa butter, t on a toyota camry frame and it'll be odisplay on the trk. well, not on the tra. actually, in aair conditioned nt. that's because, paul, as wall know, e last thing you want happening in the middle a

race, is for yr car to melt. >> pl: it's tough to windraggind tent ong. >> susiethat chocolate on ecar. >> paul: kind of sticky. >> susie: that's "nightly business report" f friday, july 10. i'm susie gharib goodght everyone. angood night to you paul. >> paul: goodnight sus. i'm paul kangawishing all of y the best of good buys. "nightlyusiness report" is made possible by: this program w made possible by contributions to your pbs station from vwers like you. thank you. captioningponsored by wpbt

captioned by media access group at bh access.wgborg we are pbs.