Transcript: Nightly Business Report – September 26, 2019

ANNOUNCER:  This is NIGHTLY BUSINESS REPORT with Sue Herera and Bill  Griffeth.


BILL GRIFFETH, NIGHTLY BUSINESS REPORT ANCHOR:  On edge.  Impeachment talk  and trade concerns loom over the market as investors closely watch  developments in Washington.  


SUE HERERA, NIGHTLY BUSINESS REPORT ANCHOR:  On the menu.  Beyond Meat  partners with the maker of the Big Mac in a big test that reshape the faux  meat industry.  


GRIFFETH:  Safeguarding your money.  Older Americans with trillions of  dollars in assets are the perfect talk for fraudsters, but there are steps  that you can take to protect your wealth.  


Those stories and much more tonight on NIGHTLY BUSINESS REPORT for  Thursday, September 26th.  


HERERA:  Good evening, everyone.  And welcome.  
We begin tonight with the stock market, which has been laser focused on our  nation`s capitol.  Trade has been a looming source of uncertainty and this  week, a cloudy political outlook was thrown into the mix.  
Today, the two combined.  Stocks lifted lower after release of a whistle- blower complaint that has sparked impeachment inquiry against President  Trump.  Then came a report that the U.S. is unlikely to extend a temporary  waiver that allows U.S. companies to sell supplies to the Chinese telecom  giant Huawei.  


So, by the close, the Dow Jones Industrial Average fell 79 points to  26,891.  The Nasdaq was down 46.  And the S&P 500 slipped seven.  
GRIFFETH:  Traders did spend much of the day watching the developments on  Capitol Hill.  The acting director of national intelligence testified about  that whistle-blower complaint that alleges President Trump abused the power  of his office.  
Ylan Mui has our story from Washington.  
(BEGIN VIDEOTAPE)


YLAN MUI, NIGHTLY BUSINESS REPORT CORRESPONDENT:  It was another dramatic  day in Washington, as the acting director of national intelligence  testified before lawmakers amid dramatic new allegations surrounding  President Trump`s phone call to with the leader of Ukraine.  


REP. ADAM SCHIFF (D-CA (NASDAQ:CA)):  Our president sacrificed our national  security and our Constitution for his personal political benefit.  
MUI:  Just minutes before the hearing began, the House Intelligence  Committee released a redacted version of the whistle-blower complaint at  the center of the controversy.  It said that White House aides were deeply  disturbed by the call and moved to lock down an electronic transcript in a  special server with code word level security.  It also said administration  officials in Ukraine worked with that country`s leaders on navigating the  president`s request.  


Lawmakers then spent about three hours grilling Acting DNI Joseph Maguire  over why it took him so long to hand over the complaint.  Maguire argued  the law didn`t allow him to.  


JOSEPH MAGUIRE, ACTING NATIONAL INTELLIGENCE DIRECTOR:  I realized the  importance of the matter that is before us this morning.  And I thought  that it would be prudent for me to ensure that in, in fact, it met the  statute before I sent it forward in compliance with the Whistleblower  Protection Act.  


MUI:  President Trump lashed out over Twitter.  Calling the allegations a  Democratic scam, a fantasy and another witch hunt.  
On Capitol Hill, meanwhile, Republicans dismissed the allegations.  
SEN. LINDSEY GRAHAM (R-SC):  It was a nothingburger for me.  
MUI:  While Democrats had tough talk of their own.  
REP. NANCY PELOSI (D-CA (NASDAQ:CA)):  This is a cover-up.  
MUI:  One thing both parties can agree on, they want to hear directly from  the whistleblower.  
For NIGHTLY BUSINESS REPORT, Ylan Mui, in Washington.
(END VIDEOTAPE)


HERERA:  House Speaker Nancy Pelosi today also said that the impeachment  inquiry will not derail work on other issues, such as legislation to lower  drug prices as well as trade.  Pelosi said the House is moving ahead on the  new NAFTA, otherwise known as USMCA.  
In the Senate, lawmakers passed a short-term funding measure, that vote  averts a government shutdown after the end of the month.  The House passed  the stopgap bill last week, keeping the government open through November  21st.  That legislation now goes to the president for his signature.  


GRIFFETH:  A new report says that the U.S. economy grew at a modest 2  percent rate in the second quarter.  That was in line with estimates.   Consumer spending as we know was strong but business investment contracted  more sharply, marking the steepest decline since the end of 2015.   Corporate profit growth was also tepid over that period of time.  
So, economists say the weak business spending and profit growth could raise  doubts eventually about whether consumer spending can continue at its  current pace.  


HERERA:  Homebuyers are back in the market signs contracts to buy existing  homes.  Pending home sales rebounded in August, rising 1.6 percent.  The  gain reversed a slump in July and was likely fueled by falling mortgage  rates.  A separate report shows that the labor market remains robust  despite the marginal rise in weekly jobless claims.  Jobless claims are a  measure of the number of Americans filing applications for unemployment  benefits and remain historically low.  


GRIFFETH:  The vice chair of the Federal Reserve said today that inflation  expectations are right where they should be.  Economists are interpreting  the remarks from Richard Clarida to mean he does not see a pressing need to  cut rates further in order to stimulate the economy.  As you know policy  makers cut rates last week and at their July meeting.  
Fed Chair Jerome Powell has characterized those cuts as insurance against  the risks to the economy.  


HERERA:  A month-long federal investigation into the two crashes of the  Boeing (NYSE:BA) 737 MAX plane has called into question some of the  assumptions used by Boeing (NYSE:BA) and by regulators.  
Phil LeBeau is in Chicago with an update on this ongoing story for us.  
So, Phil, what exactly did the NTSB say in its report?  


PHIL LEBEAU, NIGHTLY BUSINESS REPORT CORRESPONDENT:  Well, they had two  things, Sue.  They first had their report on the accident.  And that`s  where the assumptions come in.  When they look at the two accidents  involving Boeing (NYSE:BA) 737 MAX, they found basically the pilots were in  a state of chaos as the planes were pitching up and down, the pilots  thought they were reacting a certain way.  


In the report, the NTSB says the crews did not react in the ways Boeing  (NYSE:BA) and the FAA assumed they would, meaning that Boeing (NYSE:BA) and  the FAA assumed that when the airplane would react with the MCAS software,  that the pilots would react concurrently a different way.  And that did not  happen.  So, as a result, they have made several recommendations that`s the  second part of these recommendations that they make changes in the future  in terms of how pilots are interacting or made aware of things through  alerts in the cockpit.  


GRIFFETH:  Does this report in any way alter the timeline of when we get  the 737 MAX back in the air?  
LEBEAU:  Good question.  I`m not sure it does.  At this point, Boeing  (NYSE:BA) is maintaining that it expects to have the MAX flying by the end  of the year.  But, Bill, we`re already almost into the fourth quarter.  
GRIFFETH:  Right.


LEBEAU:  And that means you`ve got to get recertification, you got to get  not only FAA, but other regulators around the world to sign off on it.  And  then you`ve got to get these planes back up in the air, which is not  something you can do overnight.  That`s going to take at least 20 to 40  days and that`s if they`re really moving fast.  


HERERA:  The other big story you`ve been following for us, the General  Motors (NYSE:GM) and UAW strike.  
LEBEAU:  Right.  


HERERA:  There were a lot of reports late yesterday that the two sides were  getting closer to a tentative deal.  But what are you hearing?  


LEBEAU:  Well, it`s not imminent.  That`s the bottom line.  Are they making  progress?  You bet.  They are at the negotiating table, the main table.   This is where they`re hashing out the big issues that are at the heart of  this.  


And we`re talking about job guarantees, the use of temporary workers.  So,  they are making progress, Sue.  But to call it imminent that we will see a  deal, let`s see, by the end of tonight, everybody I talk to has said, no,  relax.  It may be that we don`t see something until perhaps the end of the  weekend.  


GRIFFETH:  Quickly.  Are we at the point now where we`re going to start to  see this at the dealerships hurting sales or anything like that?  


LEBEAU:  No, we haven`t seen it yet.  We compared sells.  We went to LMC  Automotive.  Sales for the first week of the strike with the same week in  September last year, they actually were slightly higher.
HERERA:  Phil, thank you so much.  Phil LeBeau in Chicago.  
LEBEAU:  You bet.  


GRIFFETH:  Time to look at today`s “Upgrades and Downgrades”.  
We start with shares of Whirlpool (NYSE:WHR).  They were upgraded to  overweight from neutral at JPMorgan (NYSE:JPM).  The analyst expects  shipments to show modest growth over the next year.  Price target now,  $172.  That stock rose 3 percent today to $154.84.  


Square was upgraded to outperform from market perform at Wells Fargo  (NYSE:WFC).  The analyst element cited strong fundamentals.  He called the  stock`s valuation attractive at these levels.  Price target is now $80.   That stock was up nearly 4 percent to $60.80.  


HERERA:  Boston Beer (NYSE:SAM) was upgraded to outperform from market  perform at BMO Capital Markets.  The analyst cites strong demand for the  company`s hard seltzer product called Truly.  The price target is $410.   The shares gained more than 4 percent to $363.93.

And Target (NYSE:TGT) was named a top pick at Cowen.  The stock is up more  than 60 percent this year.  And the analyst says it could go even higher.   The price target is $130.  Shares fell a fraction, though, to $106.29.  
GRIFFETH:  5G as you may know is in the next generation wireless network.   It`s also considered the next big thing for the technology industry because  it promises to bring much faster download speeds and better communication  between connected devices, and in everything from smart cars to smart  factories.  


But how long is it going to take to bring 5G to you?  
Three of the biggest players in that industry give an update on that today.  
Here`s Josh Lipton.  
(BEGIN VIDEOTAPE)


JOSH LIPTON, NIGHTLY BUSINESS REPORT CORRESPONDENT:  5G, the next  generation of cellular technology is coming, promising to bring superfast  wireless speeds to people, delivering data ten times or even faster than  4G.  5G also cuts down the lag time when data is sent or received.  That  will improve the reaction time of cutting edge technologies like self- driving cars.  


Technology executives see 5G used to improve a number of industries.  
GINNI ROMETTY, IBM CEO:  My mom was recently in the hospital.  Try — I  spent a week coordinating moving big files from each health care provider  or you go to a remote surgery.  


Internet 4.0, picture walk in a factory and it`s wireless.  Think of all  the wires and cable cables and what it could mean to safety and  maintenance.  That`s one they are working on.  


A retail store.  OK, if I could look at all the video real time, I could  stock shelves differently.  


LIPTON:  5G is so critical, that it`s now become the subject of intense  national interest.  And one question frequently raised, is China ahead of  the U.S. in this 5G race?  Qualcomm`s CEO acknowledges that the Chinese are  moving fast.  


STEVE MOLLENKOPF, QUALCOMM (NASDAQ:QCOM) CEO:  They`re going at it with a  lot of intensity.  What`s different this time around is the speed to which  the Chinese are deploying relative to the leadership that may be  established other places.  For example, in traditionally in cellular, it  would launch in Verizon (NYSE:VZ) or maybe Japan, and then it might be  several years before you get a tremendous amount of intensity with  deployment in China.  Not the case this time.  You`re seeing a lot of  deployment intensity early on.  


LIPTON:  Here in the U.S., a 5G rollout will be gradual for companies and  consumers.  Analyst estimate mass market adoption of 5G mobile devices  doesn`t come until 2021.  One reason why Verizon (NYSE:VZ) CEO says that he  doesn`t think his company will realize significant revenue from 5G until  2022.  


For NIGHTLY BUSINESS REPORT, I`m Josh Lipton, San Francisco.  
(END VIDEOTAPE)


HERERA:  Still ahead, C-suite shuffle.  Does the CEO exit create  opportunity for investors?  
(MUSIC)


GRIFFETH:  Micron Technology (NASDAQ:MU) today warned that first quarter  profits are going to fall below Wall Street targets.  The chip maker said  despite a pickup in memory chip demand, trade uncertainty is an issue  especially after the Trump administration blocked access to Huawei,  something that we mentioned at the top of the broadcast.  Huawei as you  know is the world`s largest telecom equipment maker and Micron`s single  largest customer.  Shares fell after-hours tonight in this earnings report  in the initial afterhours trading.  


HERERA:  McDonald`s (NYSE:MCD) is known for its burgers.  But it may soon  be known for its plant-based meat.  The world`s largest fast food chain is  partnering with Beyond Meat to test the new product.  That sent shares of  Beyond Meat soaring 11 percent, while McDonald`s (NYSE:MCD) was pretty much  flat.  And this get-together really could be a game changer for the faux  meat market.  
Kate Rogers (NYSE:ROG) explains.  
(BEGIN VIDEOTAPE)


KATE ROGERS, NIGHTLY BUSINESS REPORT CORRESPONDENT:  As consumers continue  to clamor for alternative meat options, the biggest player in the game is  getting in on the action.  McDonald`s (NYSE:MCD) announced it will be  testing a PLT, a plant lettuce tomato burger, at 28 restaurants in Canada  over the next 12 weeks.  


The burger will be made with a Beyond Meat plant-based patty.  Beyond Meat  also has partnerships with Dunkin, Tim Hortons (NYSE:THI) and KFC locations  in the U.S. and Canada.


Analysts say it could take sometime before McDonald`s (NYSE:MCD) attempts  to tackle a nationwide rollout for one major reason: supply chain capacity.   In fact, one analyst from Stevens said an alternative chicken product in  the U.S. will be a more likely nationwide launch in the next two years.  


Beyond Meat CEO Ethan Brown said earlier in the summer, the brand has  learned from past supply chain hiccups.  


ETHAN BROWN, BEYOND MEAT:  We went through a tough supply situation two  years ago over, and a little bit of the last summer where consumers really  surprised us with the level of interest in plant based meat that we`re  creating, but we learned from that and we learned to invest not only in  facilities but people.  


ROGERS:  But customers are hungry for the option.  One online petition at  change.org has more than 225,000 signatures, urging McDonald`s (NYSE:MCD)  to bring on a meatless menu edition.  
CEO Steve Easterbrook has said the company is watching the space closely  and analyzing what adding a plant-based option would mean for restaurants.  


STEVE EASTERBROOK, MCDONALD`S CEO:  You`ve got to obviously segregate the  tools you use and the grills from beef products because some people, you  know, clearly are purchasing it because they are not beef eaters.  So, we  know there`s complexity.  


The question is, will the demand make it worth absorbing the complexity  because it will drive the business?  I mean, we had a similar discussion  maybe four years ago around all-day breakfast where it certainly adds  complexity to the operation, but the demand was sufficient that, you know,  we want to find a way to absorb that.  So, you know, it`s something we`re  certainly taking a good look at.  


ROGERS:  In the meantime, McDonald`s (NYSE:MCD) vice president of global  menu strategy said this test allows us to learn more about real world  complications of serving the PLT, including customer demand and impact on  restaurant operations.  
For NIGHTLY BUSINESS REPORT, I`m Kate Rogers (NYSE:ROG).  
(END VIDEOTAPE)


GRIFFETH:  Peloton hits resistance in the Wall Street debut and that`s  where we begin tonight`s “Market Focus”, with the home fitness company  opening for trading at $27 a share.  That was below the IPO price of $29.   Peloton has a market value of nearly $7.5 billion.  The CEO said it`s all  about growing right now.  

(BEGIN VIDEO CLIP)

JOHN FOLEY, PELOTON CEO:  We are investing and we`re in investment mode and  prioritizing growth over profitability right now.  We are hiring  instructors, we`re opening the stores, we`re doing logistics, all of that  is expenses out in front of revenue.  So, we call it investment stage.  And  we think it`s disciplined investing.  
(END VIDEO CLIP)


GRIFFETH:  But it was a rough opening for those shares.  They close down 11  percent today to $25.76.  
Meanwhile, cruise line operator Carnival (NYSE:CCL) beat earning estimates  but gave weaker than expected guidance due to a jump in fuel prices.  The  company says there were a lot of factors at work.  


(BEGIN VIDEO CLIP)


ARNOLD DONALD, CARNIVAL CORPORATION CEO:  A number of noise things.  We had  hurricane short-term disruptions and itineraries.  We have Arabian Gulf  disruption and some plan itineraries. We had to, you know, cancel people,  and rebook them in shorter periods and so on.  
And so, a number of noise factors that led us to primarily because of the  spike of fuel prices to lower guidance a little bit.  
(END VIDEO CLIP)


GRIFFETH:  Carnival (NYSE:CCL) shares fell 8.5 percent to $43.95.  
And it`s been a bumpy road for Uber and investors after going public a few  months ago.  But the CEO today said that he believes the company is  expanding services has it on the right road.  


(BEGIN VIDEO CLIP)


DARA KHOSROWSHAHI, UBER CEO:  We take a hard critical look at what we are  doing.  We think that the rides business and the environment around the  rides business globally is constructive.  We think we can grow.  But we do  think that we can take cost out of the business both on the rides and on  the eat side and build for the long term but build responsibly.  
(END VIDEO CLIP)


GRIFFETH:  Uber was down a fraction today to $31.57.  


HERERA:  Conagra beat analyst`s expectations, thanks to a strong showing  from its recent acquisition of the packaged food company Pinnacle Foods.   Conagra also saw strong demand for its Slim-Jim snacks and the company`s  frozen food brands like Banquet and Healthy Choice.  So, the shares rose  more than 3.5 percent to $31 even.  
Discovery is teaming up with Amazon (NASDAQ:AMZN) by launching a new  streaming app called Food Network Kitchen, offering viewers live and on- demand cooking classes with celebrity chefs.  It`s part of the Discovery`s  strategy focusing its streaming content on viewers passionate about  cooking.  


(BEGIN VIDEO CLIP)


DAVID ZASLAV, DISCOVERY CEO:  What this is, this is not an entertainment  service.  It`s a functional product.  No one needs to be alone in the  kitchen anymore.  Live cooking classes every day, almost 1,000 classes on  demand.  Martha Stewart, Ina, Bobby Flay — everyone that`s on our network  is doing cooking classes.  They`re super excited about it.  And we have  over 150 other chefs.  
(END VIDEO CLIP)


HERERA:  Discovery was off about 1 percent to $26.46.  Amazon (NASDAQ:AMZN)  dropped 1.5 percent to $1,739.84.  
And as pressure mounts on the vaping and e-cigarette industry, the CEO of  Philip Morris said he believes nicotine products must be regulated through  the FDA, and that vaping will be regulated within the next two to three  years.  


(BEGIN VIDEO CLIP)


ANDRE CALANTZOPOULOS, PHILIP MORRIS CEO:  It is a very emotional issue as  we know, because it involves using — use by teenagers and vaping.  And  this is — should be the priority by everybody to address, because this is  a serious issue, say end of `21, `22.  I think what we will see is higher  regulated in terms of product, marketing and other restrictions category.  
(END VIDEO CLIP)


HERERA:  Philip Morris was up a penny to $75.29.  


GRIFFETH:  Well, it`s been a rough week in the C suites.  The CEOs of  WeWork, eBay (NASDAQ:EBAY) and Juul all stepped down just this week and  they join more than 1,000 other U.S.-based CEOs who had departed this year.   Is that good or bad for investors though?  Are CEO departures a red flag or  can they represent opportunity for those investors?  
Joining us with his thoughts tonight, David Nelson.  He`s chief strategist  at Belpointe Asset Management.  
Great to see you.  Welcome back.  


DAVID NELSON, BELPOINTE ASSET MANAGEMENT:  Thanks for having me.  


GRIFFETH:  I know you are an avoid numbers cruncher. 
NELSON:  Yes.


GRIFFETH:  But how much does the person sitting in the corner office affect  your decisions.  


NELSON:  Well, it`s certainly a big part of it.  But sometimes you can`t  avoid making the investment.  Certainly, Mark Zuckerberg was certainly  under fire for Cambridge Analytica and other issues as well that I have.  
But when I look at the numbers, this is a company that`s top line that`s  growing at 20 percent.  Forward P/E around 20, ratio of around 1.  Hard to  avoid, not often you`re going to find.  So, sometimes you have to take that  into consideration, watch the CEO, watch what happens, but sometimes you  can`t avoid being in the name.  


HERERA:  Now, when you look at a stock, you say sometimes you canned can`t  avoid the name.  But how much does the CEO`s performance if there is a  crisis or issue, how much does his or her performance influence your  decision to either buy or not buy a stock.  


NELSON:  Well, certainly, the CEO can make or break the company.   Obviously, you know, we say that.  But not everybody is going to be a Steve  Jobs.  Those are pretty rare events.  


So, in the end, I do come back to the numbers, but what I look for is red  flags in a CEO.  To me, a red flag is buybacks.  You know, constant — 


GRIFFETH:  You`re not a big fan of those, are you?

NELSON:  I`m not a big fan.  Certainly, some companies like an Apple  (NASDAQ:AAPL) which have so much money, maybe they have to buy back stock.   But for most CEOs, it`s code that they`re just run out of the ideas, and  it`s the best way to make their bonus.  


GRIFFETH:  Bob Iger is very popular as the CEO of Disney (NYSE:DIS), but  you fault him for those buybacks that they do.


NELSON:  I — you know, if he go back to a certain time when they realized  they had the problem with streaming, I think they spent over the next  several years, they spend about $26 billion in buying back stock.  Back  then, they could have probably bought Netflix (NASDAQ:NFLX) for that same  money.  Here they are trying to get into the streaming business, so maybe  that wasn`t use an official use of capital.  


He eventually got it and they have — they are into streaming right now and  they`re probably be a formidable competitor.


HERERA:  What about the incoming CEO?  For instance, you know, we saw some  CEOs step down this week.  Are you influenced in buying a stock depending  on who is put in the new position?  


NELSON:  I need some food on my plate.  I need to watch what happens.  I  need to see what they`re going to do with the company.  I`m not going to  buy just a personality.  


I`ll probably wait a quarter or two, see what they`re going to do, how  they`re going to shake up the industry, how they`re going to shake up the  company, and do they actually fix the problems? 


A lot of the problems are often in the board, because they`re the ones that  sign these guys on in the first place.  


GRIFFETH:  You mentioned Mark Zuckerberg, current — one of the founders of  Facebook (NASDAQ:FB) who has continued to be the CEO.  
Adam Neumann, who was the cofounder WeWork, just had to step down this.  


You know, the issue of an entrepreneur who then continues to try to run the  company, the Google (NASDAQ:GOOG) boys.  


NELSON:  Yes.  
GRIFFETH:  You know, they even had to bring somebody in to run the company  for a time.  Are you a fan of an entrepreneur, an Elon Musk, for example,  who founds a company and then remains as CEO?  


NELSON:  Look, I`m the fan of the vision.  And I think there is a role  there.  But at some point, it`s an operating entity.  And you just had on  the CEO of Peloton, it`s probably endemic of what`s going on in IPOs right  now, the focus on growth at the expense of profitability.  


Right now, Wall Street is saying no to that.  They want to see some food on  the plate.  


GRIFFETH:  That`s for sure.  


David Nelson with Belpointe Asset Management, always good to see you.   Thanks.  


NELSON:  Hey, thanks for having me.  
GRIFFETH:  See.
And coming up, older Americans are becoming more vulnerable to financial  abuse.  But there are steps that you can take to stop it.  
(MUSIC)


HERERA:  Here`s a look at what to watch for tomorrow.  
Reports on personal income and spending and consumer sentiment are due out.   Consumer spending has been a driving force behind the economy.  


Durable goods orders will be released, giving us a peek into spending and  on expensive and longer lasting items.  
And a number of Fed officials will be speaking on the economy.  So, lots to  watch for on Friday.  


GRIFFETH:  Six Democratic senators today urged retailers Walmart,  Walgreen`s, Rite-Aide and Dollar General (NYSE:DG) to stop selling all  tobacco products.  The senators in their letters cited the current epidemic  of e-cigarette use by teens and recent outbreak of vaping-related illnesses  and deaths. 


And speaking of which, the Centers for Disease Control just today said a  12th person had now died and the number of vaping-related cases has risen  to more than 800.  


HERERA:  According to a survey released today by insurer AIG, nearly half  of older Americans are managing their own finances.  But doing so could be  putting them at risk for financial abuse.  


Joining us now to discuss that is our senior personal finance correspondent  Sharon Epperson.  
Sharon, it`s always great to have you on the program with us.  
How widespread is this problem?


SHARON EPPERSON, NIGHTLY BUSINESS REPORT SENIOR PERSONAL FINANCE  CORRESPONDENT:  This is a serious issue.  As we see a rise in older  Americans, we`re seeing a rise in incidents of elder financial abuse, 3.5  million incidents are happening every year.  And when you think of the cost  of at least $3 billion, according to some studies, others say up to $36  billion when you look at all the different fraud and scams that are out  there, and the average older adult loses about $34,000.


If they know the person who was involved, it could be as much as $50,000. 

 
HERERA:  Wow.  


GRIFFETH:  Wow.  So, what do they do?  What can they do to protect  themselves?


EPPERSON:  Well, one of the first things, because they`re not consulting  with anyone in terms of their finances, is to designate a power of  attorney.  So many people let alone seniors do not have a power of  attorney.  That`s an important person to have.


If you don`t have that yet, start finding someone that you trust that could  get copies of bank statements and important financial documents.  So you  have someone that`s doing a double check on what you have.  And then don`t  add that person though as a joint owner to the account, because as long as  you`re capable to handle finances you can do it.  Having a power of  attorney doesn`t mean that you are not going to take care of your own  financial responsibility.  


But if you have a join owner on the account that person can go into the  bank and say I`d like all the money taken out.  


What about the scams out there is this?  I know there are some we hear  about all the time.  And there are others people are not aware of that are  scams.  


EPPERSON:  Well, here is one thing.  A lot of seniors believe — 81 percent  according the study believe that someone they know would never hurt them  financially.  The reality is many of the financial schemes that come out of  there are from someone that you know, someone you think you trust.  


So, one of the first things is to think about people who come to you,  family members might ask you to change your information on an account,  family members that come out of the blue.  When was the last time you saw  them and now they want to help you.  Or there is a pressure from a family  member or someone that you know to be the power of attorney.  


So, those are some of the red flags but what I found interesting in the AIG  report were some of the popular scams that I hadn`t thought of, and that is  someone calling to say, that they`re the grandchild and so now they want to  have that money.  The lottery scam, you need to pay taxes you just won the  lottery.  


But here`s what one I wasn`t familiar online dating.  


GRIFFETH:  Uh-huh.  


EPPERSON:  Online dating scams of seniors on the rise.  And people getting  involved in these relationships.  


HERERA:  Really?  


EPPERSON:  Yes, and are taken advantage of financially.  
So, really interesting stuff in this AIG report.  Very sobering and scary  stuff too.  But the bottom line, have — have the money conversation that`s  what we always talk about.  


HERERA:  That`s exaxtly right.
EPPERSON:  And definitely have that with someone you trust.  
HERERA:  Thanks, Sharon, as always.  
EPPERSON:  Sure.
HERERA:  Sharon Epperson.  
EPPERSON:  My pleasure.


HERERA:  And that is NIGHTLY BUSINESS REPORT tonight.  I`m Sue Herera.   Thanks for joining us.  


GRIFFETH:  I`m Bill Griffeth.  See you tomorrow.


END
Nightly Business Report transcripts and video are available on-line post  broadcast at http://nbr.com. The program is transcribed by ASC Services II  Media, LLC. Updates may be posted at a later date. The views of our guests  and commentators are their own and do not necessarily represent the views  of Nightly Business Report, or CNBC, Inc. Information presented on Nightly  Business Report is not and should not be considered as investment advice.  (c) 2019 CNBC, Inc.


<Copy: Content and programming copyright 2019 CNBC, Inc. Copyright 2019 ASC  Services II Media, LLC. All materials herein are protected by United States  copyright law and may not be reproduced, distributed, transmitted,  displayed, published or broadcast without the prior written permission of  ASC Services II Media, LLC. You may not alter or remove any trademark,  copyright or other notice from copies of the content.>

This entry was posted in Transcripts. Bookmark the permalink.

Leave a Reply