>> susie: from your car's tailpipe to your wallet the government moves toward the first federal limits on greenhouse gases. what the declaration means ahead of a global climate change summit this week. >> jeff: the greenback backs off a five week high, after its best rally in months. but could that dollar bounce spell trouble for stocks? >> there appears to be almost a desire to see the dark side. there isn't one. there's a white side. it is happening now. >> susie: chrysler's new c.e.o. sergio marchionne says don't count detroit out. coming up, our exclusive interview. >> jeff: sesame street is saying so long to long-time partner mattel. we'll tell you who big bird's new toymaker will be in tonight's stocks in the news. >> susie: i'm susie gharib.

>> jeff: and i'm jeff yastine. paul kangas is on special assignment. this is nightly business report for monday, december 7. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you.

thank you. captioning sponsored by wpbt >> susie: good evening everyone. greenhouse gas emissions are hazardous to your health. that's the bold statement today from the environmental protection agency. the e.p.a. said carbon and five other gas emissions are the primary driver of climate change and they are a public health threat. that endangerment finding lays the foundation for new regulations under the "clean air act" just as world leaders meet in copenhagen this week to begin talks on global climate change. stephanie dhue reports. >> reporter: the environmental protection agency today declared that greenhouse gases emissions endanger public health. e.p.a. administrator lisa jackson says today's endangerment finding means her agency is now authorized to cut greenhouse gas emissions. >> we arrive at the climate talks in copenhagen with a clear demonstration of our commitment to facing this global challenge.

the e.p.a.'s move may help qwell the controversy surrounding hacked emails of scientists questioning climate change. >> reporter: the epa's finding has no immediate regulatory effect. but it paves the way for proposed regation of emissions from cars and trucks to be finalized this spring and take effect for 2012 models. >> first and foremost, it's going to affect the automotive industry, through the increased improvement in efficiency, because there's no other way to-- there's no technology that takes carbon dioxide out of a hydro carbon fuel. >> reporter: after that the epa will require power plants and factories to use the best available methods for controlling greenhouse gas emissions. legislation to regulate greenhouse gas emissions has stalled on capitol hill. but e.p.a. administrator says legislation is a better approach since it can address the entire economy. >> i believe it's not either or. i don't want anyone to leave here thinking that because we continue our work, that i don't stand firm in my belief that we need legislation. >> reporter: business groups worry the e.p.a.'s move could bring new construction to a standstill as firms must apply

for new permits. marlo lewis of the competitive enterprise institute says his group will file suit to overturn the epa action. >> it will trigger a regulatory chain reaction that potentially is economically disastrous and it is based on science that is called into question by the climategate scandal. >> reporter: environmental groups say the e.p.a.s announcement should serve as a wake up call to congress to take action that reduces global warming and expands clean energy. stephanie dhue, "nightly business report", washington. >> susie: the weakening dollar has been another wake-up call of sorts sparking fear foreigners could bail out of u.s. securities. and today the u.s. dollar lost ground against the euro, after fed chairman ben bernanke confirmed his commitment to keeping interest rates low. but some experts warn a rapidly rising dollar would also be a negative for financial markets. erika miller has details.

>> reporter: natural disasters and acts of terrorism are unpredictable events that can cause turmoil in financial markets. but experts warn even something as simple as an improvement in the economic outlook could pack a powerful punch by pushing the dollar sharply higher. that's because a small group of hedge funds and other sophisticated investors are using a strategy called the dollar carry trade. here's how it works: they borrow u.s. dollars at low rates, selling the dollars short. they then using the funds to invest in higher yielding assets like stocks, gold, and oil. you don't have to understand exactly how it works. to know that if those traders have a sudden change of heart, there could be big trouble. that's the way investment strategist jeffrey saut sees it. >> the things that have been rallying sharply and that would be some of the emerging and frontier markets. precious metals. some of the base metals. >> reporter: he predicts there could also be a major sell-off for the u.s. stock market. because it has also benefitted from the dollar carry trade. but, before you get panicked. it is important to point out

some reasons why this scenario might not happen. first, if the rise in the dollar is gradual, the carry-trade could unwind slowly and experts say there would likely be minimal impact. in addition, currency strategist bob lynch thinks the dollar could fall further. >> fed policy is going to say ultra-accommodative. the fiscal position in the us is bad and is not going to improve anytime soon. if anything, it's likely to deteriorate further. before it improves. and i think that's going to be quite some time from now. >> reporter: there's no easy way for investors to protect themselves from a sudden carry trade unwinding. the best that most people can hope for is that the change happens gradually. reducing the risk for financial markets. erika miller, "nightly business report", new york. >> jeff: the dollar was higher again today, but not much impact to the stock market. the dow rose about 50 points in the first half of the session. investors were comforted by a midday speech from fed chairman bernanke.

he sees an improving economy. stocks sold off at midday as bernanke indicated the fed would keep rates low for an extended period of time highlighting the challenges to the economy. the dow finished. >> susie: we are not planning miracles at chrysler that's the message today from the automaker's new ceo sergio marchionne. in a speech in washington, marchionne said his team will

deliver on its promises. but he warned the auto industry is plagued by overcapacity and has destroyed value over time. washington bureau chief darren gersh spoke with marchionne earlier today and asked why he still sees value in the chrysler brand. >> i think people underestimate the historical roots of the chrysler brand and the fact that it has been for a long period of time a large protagonist in the u.s. car markets. for a variety of reasons including the negative issues associated with it, the financial difficulties going into bankruptcy and coming out it's an incredibly well known brand. i think it represents a number of values from an he can quity standpoint that i think we can market. we're going to do that. >> reporter: one of the concerns about the company is it's been hollowed out over the years with the various owners and also that fiat runs very lean. one of the key questions i've heard from analysts is do you have the people, the management skill intact, to turn the company around.

>> i think we found a sufficient level of know-how and commitment inside chrysler already. you need to understand that this commitment is a corporate- commitment by fee -- fiat. there's between 50-75 people at any time helping chrysler making the transition. these are above and beyond the agreements we've taken in terms of providing assistance. this is a big issue for us. we're taking advantage of it seriously. every ounce of resources that i have certainly and certainly the organization has are committed to make this turn around. it's difficult. and i understand the level of skepticism of the public. i think you need to give us the time. they're building a new future. >> one of the biggest concerns every american has is jobs. there's huge overcapacity in the auto industry. >> not in detroit. >> you still have about 17

million capacity to produce 17 million units and you're selling about ten. >> we don't. >> here's the question though. when will you be able to... when do you think the auto industry will get back to actually creating jobs and when do you think.... >> we're doing it now. i'm hiring engineers in chrysler. we're hiring people to extend capacity in the u.s. there's a huge amount of activity going on in the car industry in detroit but people don't pay attention to it. there appears to be almost sort of a desire to see the dark side. there isn't one. there's a light side that's happening now. >> is detroit going to get back to hiring thousands of people? >> i don't know about thousands. certainly we're hiring thousands. not very much thousands but thousands. >> all right. you're here in washington. one of the issues that came up today is that the environmental protection agency is going to regulate greenhouse gases as a pollutant, as a threat to human health. what might that mean for the auto industry and for chrysler. >> i think it has to adjust to

a new way of life. fiat has embraced change on the ecological front long ago. in 2004 when i arrived, we are now the lowest emiters of co-2s in europe and will continue to do so going forward. i think that chrysler can learn from that experience. it's do-able. >> you're going up to the hill. are you going to talk about that? and also what will you tell members of congress about when you might pay the government back? >> as i said, it will be before 2014. we'll pay them back. >> all of it? >> all of it. >> all right. last question. you said culture is the game. >> it is. >> in turning around the company. does that mean you have to basically spend all of your time in detroit to work on the culture? >> i spend a lot of time in detroit. not all of it. think i, you know, i'm only an instrument of change. don't look at me as anything else. you know, that instrument doesn't have to play every day of the week. it has to be there for a

sufficient long period of time to make sure ha happens. >> you're talking about the future of the auto industry here. what's the bottom line? >> i think it's a great future. i just think you need to be patient. i think americans are, you know, i love this country dearly. i grew up across the border. canadians have got the same problem. we're looking for instant gratification. this is an industrial turn- around. you need to go back and fix the nuts and bolts and the basic hardware of the system. we're doing it. the fact that we can do a car here in 18 months, that's never happened in the history of chrysler. given time they'll prove them tefls. they're good good kids. >> thank you for your time. >> looks like buyers are back in the art >> jeff: it looks like buyers are back in the art market. shows and galleries are seeing crowds and buyers appear interested again after being scared off by the credit crisis and recession. it's a welcome change, although no one's expecting a return to the pre-bust 'good old days' anytime soon. >> reporter: whether the art is painted on canvas, or sculpted in wood, collectors are once again opening up their checkbooks.

just ask sheldon and myrna palley. >> this is an early chihuly. and this is the first piece we donated to the museum. >> jeff: they've collected glass sculptures since the 1980s, and still haunt workshops and galleries in the us and europe. >> last year was very bad for the galleries and for the artists. this year it's a little bit better. it's coming back but its nothing like it was several years ago. >> jeff: for gallery owners it's a little bit better too. the large crowds returning to shows like art basel miami beach are buying. sales were up an estimated 15%. lucy mitchell-innes sees the change in attitude among the people who visit her manhattan galleries. >> it's not so much that the economy has completely rebounded. but people have adapted to it. and they also feel they can now budget and work things out.

and also if you're really devoted to collecting the art. there's only so long you're going to sit on the sidelines. the temptation is just too great. >> jeff: of course, art is in the eye of the beholder. a napoleonic michael jackson. and sculptural commentaries on the s.u.v.. aren't always on the top of everyone's buy list. but collector and money manager marshall front says the fact that people are buying again. is a good sign. >> it does give an indication i think that people are beginning to "come out of their shells". you've seen it in the equity market. the junk bond market. now the art market. collectibles. gold so forth and so on. people are moving toward a riskier trade compared to ten months or a year ago. >> jeff: and marshall front thinks that will help lead to a durable recovery in the art market and the overall economy.

>> susie: a new job for the man who was in charge of running the treasury's bank-rescue program. neel kashkari will join the pacific investment management company or pimco the world's largest bond fund. the 36-year-old will head up pimco's new investment initiatives. pimco founder bill gross says kashkari will be part of the firm's expansion into active equities. as you recall jeff kashkari helped direct the government's $700-billion bailout program known as tarp. >> jeff: susie, i understand kashkari starts at pimco next monday. now let's take a look at our stocks in the news tonight.

tom, what are you watching for tomorrow? >> tom: who is going to be the new top guy at the biggest bank in america? the bank of america board of directors meets tomorrow and one of its most pressing issues is who will replace ceo ken lewis who retires at the end of the year. tomorrow's meeting comes just days after bank of america repaid the $45 billion bailout from u.s. taxpayers. that frees it from executive compensation limits, which may make it easier to attract a new boss. while the new honcho at bank of america won't be saddled with uncle sam's say on pay, he or she will have to do the basic banking blocking and tackling. under ken lewis' leadership, bank of america grew by acquisitions, topped off by

picking off countrywide financial and merrill lynch as both were collapsing. but now, banking analysts say whoever takes over at b of a will need to quickly work toward integrating all the various systems at the bank and get its units working together, with the goal of creating a financial supermarket. and a big benefit of this integration work would be a firmer handle on systemic risk bank-wide. >> susie: tomorrow president obama talks about the economy, >> susie: home depot will start selling a martha stewart line of paint next year as well as cleaning supplies bearing the domestic diva's name. the paints will replace home depot's line of ralph lauren paint. the new products join martha stewart home decor and closet organization lines announced by home depot in september. stewart's home goods deal with kmart, which spanned more than a decade, ends in january.

>> jeff: one of the most public responses to the enron scandal may be threatened. the u.s. supreme court heard arguments today over how members of the public company accounting oversight board are chosen. that board is a key provision of the 2002 sarbanes-oxley corporate governance law. two groups claim the way the board appoints members is unconstitutional because they are not named by the president. a ruling is expected in the spring. e]qwwó

>> susie: as we head toward the end of the year, now is the time to start preparing your 2009 taxes. here to help all this week is our tax guru, kevin mccormally. he's editorial director at kiplinger's personal finance. kevin kicks off our year-end tax tips with some potential help for victims of layoffs and furloughs. >> as we struggle to find a silver lining for investors in the market meltdown that accompanied the great recession, i think i've found one. if your income has taken a beating in 2009 you might for once in your life have a chance for tax-free capital gains. you see there's a special rule this year that says that taxpayers in the 10% and the 15% tax brackets will owe 0% tax on long-term gains realized this year. i know many "nightly business report" viewers are usually in higher tax brackets.

but if a layoff or furloughs or pay cuts have driven down your income, you just might qualify for tax-free gains. the top of the 15% bracket and thus the end of the line for 0% gains is $33,950 if you file a single return or $67,900 if you're married and file jointly. that may sound low, but remember, that's after all your deductions. if your taxable income will be under the limit, consider selling profitable stocks or mutual funds to realize enough profit to rise to the ceiling. long-term gains you squeeze into the 15% bracket will be tax- free. any profits that push your income above the top of the bracket will be taxed at 15%. the 0% gain gambit may also offer an opportunity for young adults age 24 and older and thus are no longer subject to the kiddie tax but who are starting out with lower salaries. if you own stock or mutual funds maybe that you received as gifts when you were much younger consider whether you should sell now if the gains will be tax free. if you like the stocks or funds, you can buy them back right away.

then you'll only be taxed on appreciation from this point forward. i'm kevin mccormally. >> susie: tomorrow, kevin mccormally has the latest on the realities of required minimum distributions as we continue our year-end tax tips. and finally tonight a very special honor for two very special people and nightly business report. the national academy of television arts and sciences presented paul kangas and linda o'bryon with lifetime achievement emmies. the ceremony here in new york city this afternoon honored paul and linda for being the founders of the original team that began this program more than 30 years ago and has kept it going strong every since. linda left n.b.r. two years ago, and is now the chief content officer for northern california public television in san francisco. paul will be leaving us at the end of this month, stepping away from the anchor desk. both received their emmy awards for the consistent high quality of their work and their commitment to excellent coverage of business news over the years.

so to paul and linda, from all of us at nightly business report, congratulations on a job very well done. jeff, i was there at the ceremony. it was really fantastic. you know in this business, shows come and shows go. to be in the business for more than 30 years that's a lifetime achievement. >> long overdue recognition. that's nightly business report for monday, december 7. i'm jeff yastine goodnight, everyone. and good night to you, susie. >> susie: goodnight jeff. i'm susie gharib. we hope to see all of you again tomorrow evening. "nightly business report" is made possible by:

this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org