caioning sponsored by wpbt ( willie nelson singin ) >> ♪ on e road again. just can't wait to get on e ♪ ♪ roaagain. >> paul: no more wting for generamotors. the american icon is othe road again, erging from bankruptcy after just 40 days. >> at the new g. we need to ma the customer the center of everything. and we're ing to be obsessed with this. becausif we don't get this right. thing else is going to work. it's that simple. >> sus: g.m. c.e.o. fritz nderson tells us about the automaker's secondhance. and what american consers can expect fm the new g.m. >> pl: tonight's market monitor says t stimulus package is finally staing to goose the economy. he's robert drh, editor of the ach weekly research report. >> susie: thenwall street's geing up for a flood of earnings from the nation's biggest banks. coming up, areview of what to expectand what investors should look for.

>> paul: i'm pl kangas. >> susie: and i'm susie ghar. this is "night business reportfor friday, july 10. "nhtly business report" is made possible by: thisrogram was made possible by contributions tyour pbs station from viers like you. ank you. 7//& >> susiegood evening everyone. "business as usuals over at generamotors". that's what c.e.o. fritz henderson promised tay as he annoced g.m.'s official exit from bankruptcy. he also vowed the vamped company will focusbsessively on customers responding toheir

needs re quickly than the old g.m. that's the reasofor some new inittives unveiled today. a new partnership with ebay at will let custors buy g.m. cars line. the turn of bob lutz: the legendary auto execuve will postpone retiremt to take charge of the eative development of pducts and custom relations. the launchf a "tell fritz" bsite where the public can email estions directly to the c.e.o.. and the coany also expects to repay the $50 billion in gornment loans ahead of the deadline in 2015. when i talked th henderson thisorning, i began by asking him what's hislan to get consumers shping again in g.m. showrooms. >> we're vy enthused about thept the products that 're launching toy are winning, vehicles like and wve got ek win knocks, wehave a lot of products gettingeady to come in. but it'sbout the cultu of this gm -- in the future about

carscustomers and culture and in this case it's about taking those hicle launches and then suppting them the very beswe have in some of the marketing and brand adverting and frankly delivering as much punch as we can in the mket to let cuomers come backlooking at it swdz south you say the customer is the ceer of everything. your words. how are you going to convince people that it makes sense to buy a car made by gener motors? >> well, we have to -- thissabor words. buour actions and w we do every day satisfy customers. 's about delivering the very bestuality we can at -- when we launch a vehicle, customs buying it, the rht sort of experience with our dlers. we'rvery confident that our dealer body c provide theest experience, the sales exrience for oucustomer and service so i tnk we have the qualit vehicle and we have beaifully designed, highly fuel-efcient vecles for customers to buy today. starts with that, having great dealers and putting thebest

marking we can behind them. susie: the chevy bolt, howdoes. it's the car to jumpsta generalotors. is that still true? we don't have that much time,s. the bolt will lauh into next year. we're no ended in wait -- inrested in waitinaround to win in thearket markelace til the end of next yr. the car itlf, wre driving validati vehicles as we sak. we're very excit about the bolted. we'll launch at thend of next year into th showroom. but it's about winng in the showroom in 2009 and t first part of010 and the bolt think going to be a superb vehicle. 's a great-lookingehicle. it is a -- it is a gn of the chnologicalprowess we have as a company, butou know, we're not going wait around for the lt to reinvt our busines >> susiesince you went intobanke highernd your sales have plunged 30%. is it possible to make money at

a time ke th? >> well, i don't know thatanody. our vbility plan the structuring action that we've gone there wer intended to allows us to operate o busiss at new york america at a break-even milon about an 18% markethare. we hen't arrivedet athat cost sucture,but we're we very confident by next year we wil we're down about $23 million, whic allows us t run our buness at a break-even. it's tough for anody to make money in the auto industry. >> susie: you told me that gmdz. are you still telling me you have to break that? >> whaven't targets and we'renor view was on an earnings interest -- ebuilt, that we would be able toperate above

break en next year in ou north american busines and anticipate we can that. we have a ard of directors and we're ing to take it through the nancial projections. but we haven't uated anythin from when we last ovided that sort of information and there's nothing i would note today that would suggt that things have chged. >> if gm doesn't make sales, ano this, but will you be forced to go back to the government to ask for more money? >> wdon't believe.this is a rar. it's a second ance we had. it's a precious second chance. have to take advantage it. there are 30 chances. >> sus: do you have a plan b? >> we think we can run thebinesr break-even point down to a point where we're not hemorrhagin even ia tough environmt. it gives us an enormous opportunity for improvemenwhen the business does start to improv i think the key is to try to run our busine even in a difficult market. we have to get our cost the that point in 20. but e government has provided

stng liquidi itself f us, oubat sheet isignificantly improved. the air is much cleaner. ov blacking pnt will be much lower which will a -- breakg point ll be muchower, which ll allow us to g through a difficulteriod. >> susieyou know you have alot a whirlwind, but when do we expe gm to be o the stock market again? >> we have -- we willehemost puy think in the world. it's our aicipation that next year we'll be preparednd be le to see public next ye. obvisly we have to see, but that is r wcation today. >> susie: -our expect tod. >> susie: mr. heerson, thankyous tonight. thank you, susie. >> paul: a number of negives had wall strt under selling essure today. among them, drop in world maets, an earnings warning from chevron, a decle in june consumer sentiment androwing uncertainty over thepcoming slew of rporate earnings ports.

the dow decled steadily to post an 84 point loss atid-day with the ndaq off 12 points. but the rket stabilized in slow afternoon trading a turned mixed by e final bell.

>> susie: they say you would never eat sausage agaiif you saw how itas made. now ply that principle to capitol hill and the wraling that goes on behind e scenes to get lislation passed. in this case, the sausagis regulatory reform, a huge fort thatill have a huge impact on our financial system as stephanie dhue ports, day's hearings focused on reforming hoderivatives are ndled. >> reporter: today'searing was mostlybout process. and it promises to be long one. policynalyst andy laperriere expects regulatory reforto take at least year, maybe two. >> what you ha here is, you have series of bills that in and themselves would be pretty major legislati, and to try to put iall together in one rge bill, re-regulating the financiasystem is a hercean task. >> reporter: it'a task filled wi political turf wars,

despite what house fincial services chairmabarney frank says about a btle between his committee and the agculture committeover derivatives. >> i begin with anpology to our friends in theedia, there is no fight to cov between these two committees, know at's an easier topic than th complexity of how actual to do something. >> reporter: he's why those twcommittees are battling over who will design derivative regulation. the serities and exchange commissions overseen by the house financial rvices mmittee, while the commodity futures tradincommission is overseen by the agricultur committee. wh asked how the two would ke from overlapping regulation, the trsury secretary dia verbal tapdance. >> i don't wt to get ahead of the delicate, careful procs we're trying to work thrgh with those twogencies. >> reporr: derivatives are just one issue in e complex task ooverhauling the nancial regulatory system. there's also expanng the role of the federal reserve, ging new inveor protection powers to the securities anexchange

mmission and creating a new consumer agency to regule financial prodts. securities industry lobbyist scott defe says lawmakers are feeling their way. >> the financial services seor and so of the issues that are being diussed in here, devatives regulation, securitition are fairly complex topics that most fol understand really n't want leslate too prescriptively. >> reporter:hile the financial isis has given momentum to reform legislati, it has also madeome lawmakers cautious. they don't want to a too ickly or do anything that could make matters wse. stephae dhue, "nightly siness report", washington.

>> pau now let's take a look at some stocks in the ne tonight.

and those are thstocks in the ne tonight, susie. >> susie: ul, fasten your atbelts, it's goi to be a bumpy week next week when it comes to earnings from the tion's big banks. the embattd banking sector is trying to claw back from t fincial meltdown and expectations are low. as scott gurvey explai, if you're an instor looking to interpret bank results, u need to look athe fine print. >> reporter: goldman sac will behe first out of the block when t big banks begin reportg second quarter earngs on tuesday. it may well set the toneor the week. ll street prognosticators ha been upping forecasts r goldman's second quarter. althoughxpectations for ldman and others are low on historical basis goldman shares have in 10% in the la three months. ashwani ul says a goldman disappointment could upsethe entirearket.

>> it's kind of an infction point, like, show us what yo have now. and i ink if financial really disappoint extremely tthe down side thequity markets are at vere risk, especially financial stocks. financial stks, especially in the last three month some of them arep 200%, 300%, 400%. >> reporter:ut each individual bank will have its own story this quarter, dependinon which took or id back tarp funds, and how they raised capita banks with aive trading operions are expected to profit from market volatily. those with capal market exposure will benefifrom the stp yield curve. commcial real estate banks with lots of retail custers could face lses because those customers are defaulting on credit car and mortgages. regionalanks may suffer from exposure to the commeral real estate marke investor expectationfor the second quarter he actually been falling even as many ofhe financial stocks pricehave risen. standard a poor's stuart plesser says that'because the compies are expected to toss everything they n into the write-down category to gethem oftheir books. >> i thi the more interesting quarter isown the line in the

four quarter when the pectations are that charge- offs will continue to rise b at single digit pace. and if that doesn't occur th the whole question of capil levels will likelyome to the fore-front again. >> reporter: alsin the mix this quarter, a ontime charge agait many banks. imposed to shore uthe insurance syem that covers all banks. scott guey, "nightly business report", new york. >> paul:onday, strategist joe battipaglia gives us his forecast for stock now that econom green shoots appear to be drying up. >> susie: continental airlin is flying high ithe "star allian" group. the transportation dartment today apoved the move, which ves continental, united, us air and other carrrs some immunityrom anti-trust law. that's critica because the allice shares pricing, scheduli, and other information among thairlines in the gup. opponts argued the decision would stifle competition, an harm consumers wh higher fares. >>aul: walgreen's is now 50, for 50.

the drug sto chain will open s first store in alaska this weekend giving ia presence in evy state in the union. the stor there will have unique, special atures to handle frigid weather, inclung heat sidewalks and drive- throughs. thfirst store is slated for governor sarah palin'sometown of wasilla, community walgens says has great growth potential.

>> susie: here's look at what's hpening next week: >> paul: my guest arket monitor" tonight is rort drh, editor of the "drach weekly report" in taassee, florida. and welcome back to "nhtly business rept, bob. >> paul: you werconcernedabout s moneinto the economy. are you still concerned about that? >> no.no -- >> paul: snow? >> it'beginning to trickle in.t.

it's a very straightforward situation. >> pau so you're seeing realprre boos will eventual help the stock maet? >> yeah.but you ought to be seee beginning of it. it changes things fdamentally. oncet start it doesn't stop. it's aassive, massi amot. worldwide. it goes on to 2015. >> paul: what's yo time frameine economy? >> it will pick up its pace int. it's hu. it's massive. this creates a technic conditiooo,hat inial lows, the confusi cycle, e very hand. came uphe march lows and they're never revised. >> paul: so at was the bottom? >> yesthat's your bottom andthe. >> paul: so no need for anotherg about? >> that doesn't me you won'tget. >> pl: no, b -- >> you e all the consequences. >> paul: but no need for one in?

>> no. >> paul:hat about the sotimeplun the road? >> absolutely.you get inflion at productity. paul: productivity.that's d go. >> it's money supped.it only hao go. so you've got to get inflation, you've got t get productivity. both. >> pl: you're bullish on theork? >> you have to own thepructive . otherwis it killsyou. >> paul: okay.bob,ou've been rue nightl business report mol portfolio since its incepti waback in 199 let's seehowit's doing versus the standard & poors 500. look at tt. the drach model portfolio up 98% comped to 69% for the intpz. i -- s&p 500. i congratulate you on e great jo >> it will get better. >> paul: let's hope so.in janua, you recommended three stocks. let'see how theyerformed.

mahewsnternational, which is in the funeral biness, i unrstand, down with its -- strang down almost 21%. do you still like it? >> yeah.think anything in qualit the's a big divergence quality in this market. qualy scks underperform lower quality. >> paul: so it's theirurn tocom? >> yeah. >> paul:etro canada areatbig wi. dn't that get a big winner? >> yes, norps.it's still up. >> paul: that willo day today. >>eah. >> paul: andhere was a thirdrec. and we all know ts one -- >> oh,eah. >> paul: poor old ge can't find. that's representative of thequ. big divergency. >> paul: how aboutome newrecomm? >> tonight we'll stay withpaul l player and i think caterpillar >> paul: the it is.onhe big boa.

>> you want them depressed andh. >>aul: that stock isown. >> yeah.that's the way you luk . >> and then int world fuelserce. >> paul: aviationuel? >> yeah. >> worldwide. >> paul: int is the symbol >> yes.and nike. >> paul: let get nike upthere. onhe big board. >>ell, they sell ses alloverhe . internationastimulus. erybody is makinmoney. >> paul: right. >> as fast as they can. >> paul: so you're aboutsbuish a number of years. >> in the 30 years we' beentalks the most dramac i've er seen. and the core is additional money. >> pau money supplygoing tobe b. >> and inflati andproductivity. >> paul: okay.incidental, stocku mentioned, do you n those personally or -- >> no, we us these on thwebsite. >> pau so it's part of themodel. >> right.

>> paul: bob, as always, i wttou though with us. >> gd to see you, paul. >> paul: my guest rert dchof thh report. >> susie: recapping day's market actn, the dow ends the week in the red with a losof 36 points. the nasdaq gained thre and to learn morabout the storiein tonight's broadcast, to watch our streamingideo and to take rt in our daily blog, go to "nhtly business report" on pbs.org. you can so email us at nbpbs.org. >> susie: and filly tonight, hot rs will be the norm this weekend at the nascar ces at the chicagand speedway in liet, illinois. but for one car, being hot ia big problem. that's because it's made of chocolate! an artist has crted a full- size replica of thcar driven by defending chaion kyle busch. it's chocolate, cocoa d cocoa butter, set a toyota camry frame and it'll be on dilay on the track. well, not on the track. actually, in an aiconditioned tent at's because, paul, as we al know, the st thing you want happening in the middle of a race, is for your r to melt.

>> paul:t's tough to windraggind tent alon >> susie: th chocolate on theca. >>aul: kind of sticky. >> susie: that's "nightl business report"or friday, july 1 i'm susie gharib gonight everyone. d good night to you paul. >> paul: goodnight sie. i'm paul kans wishing all ofou the best of good buys. "night business report" is made possible by: this programas made possible by contributions to your p station fromiewers like you. thank you. captioni sponsored by wpbt

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