U. S. Officials say there is a lot to be done if the two sides are to reach a deal. Some of the biggest backers of Softbanks Vision Fund appear to be having second thoughts. We are live in san francisco. Shery lets get you started with a quick check of how wti crude is starting to trade at the moment. We are seeing a little bit of pressure, down 1. 7 . Still above the 60 a barrel level. This coming up to the biggest gain since february of 2009. 13 jump after those drone attacks on Saudi Arabia Oil facilities. Also at a time where we saw a decline last week of 3 . We continue to see this demand picture not so clear for the oil markets given the ongoing chinau. S. Trade tensions and the ongoing slow down of the Global Economy. At the moment, we are seeing a little bit of pressure from wti, down 1. 7 . In two hours, we will get you an update on how brent starts trading. We will take a look at how the saudi attacks are playing out of the oil market. Nasdaq Corporate Solutions director of energy and utility talks us joins us now. Great to have you with us. What a week it has been for the oil market. What i keep hearing from analysts is that inventories are fine. That saudi aramco has facility storage all of the world. Why have we seen such a dramatic move in reaction to the market . Guest the supply is not a problem in the shortterm, to your point about the inventories. There are other levers. The big question is how long does this facility remain offline . If it remains offline for several months, it will be very hard to find additional barrels to make up for 5 million to 7 Million Barrels a day. The real critical question in terms of sustainability is what is the reaction . Whether it is from the u. S. , saudi or globally. What kind of reaction do we have . Do we have a counter reaction . That is what the market is focused on because we did know vulnerablessets were to attack as they have proven to be. Shery especially this precise attacks by drones which changes the geopolitical picture. Tamar it does because we have known saudi has invested billions in the defense of their asset. This particular asset is the single most important asset on the planet. It was intact back in 2006. Since then, saudi has invested tremendously into defending it, but mainly from conventional warfare like ballistics missiles, not from drones. This underscores the degree to which saudi assets and other assets in the middle east are open to attack in a way that was under appreciated by the market up until this weekend. Shery from the reaction coming globally, we have heard from President Trump who says he does not want a war with anybody but the military is ready. Also saying it looks like iran was behind these oil attacks. Does this make it more possible or less possible that the rouhanit president on the sidelines of the assembly we have seen these overtures coming from the president. Tamar that is why old pictures fell about 3 last week because the departure of bolton from the u. S. Administration. We felt like that was a bit of an overturned towards iran and the possibility of diffusing the situation. I think that is off the table but we have seen trumps instinct is to pull back and shy away from direct military conflict in the least. I think the rhetoric will continue to ratchet up, but whether or not there is a direct military response is what we will have to see. Of filling the supply gap, how closely will you be watching the baker count . Tamar that is a critical question because Oil Producers in the u. S. Have been demonstrating a lot of restraint. That rig count has been coming down. They are answerable to shareholders. A lot of people have said, well, there is no big deal about losing saudi because we have the shale guys in the u. S. The shale guys are responsible to shareholders. They cannot slip on production with a flip of a switch of way saudi arabia can. If they do try to take advantage of the uptick in prices, that will be something that we will want to watch. I think the more likely response from the shale producers in the u. S. Is to hedge production and lock in some of these price gains. That should force the oil curve to be more. The gains we will see in prices means will be in the front end of the curve and the latter end of the curve will start to flatten as producers lock in gains for the future. Shery hold on a second because we have breaking news. We are hearing from dow jones that the wework ipo is likely to be delayed until october at the earliest. The we company is not expected to begin the roadshow this week. We have seen many questions surrounding this ipo of this office space Leasing Company with valuations being questioned. We are now hearing from the dow jones that the ipo has likely been delayed until october at the earliest. Paul . Paul tamar, i want to return to that point you were making about how the u. S. Cannot flip a switch and make up for any supply deficit. What are your expectations around the next opec plus meeting in terms of the supplied endemic . Dynamic. Tamar they are not going to add more production. They have sufficient production, not including saudi arabia. Opec has about one Million Barrels a day of production. That is another lever for the market to pull, but i think they will really monitor the situation and really look at where is there demand . To sherys point, in the shortterm, saudi export commitments will be able to be fulfilled based on the existing levels of inventory. Shery so what are we expected to see in terms of demand . Does this change the picture at all if we continue to see prices gaining ground . Does that change the demand outlook . Tamar this is not good for demand if Oil Prices Move too far, too fast. Theaw that in china and weekend. Some negative Economic Data that got overshadowed by these headlines. The demand picture is not great. In the context of oil prices surging, that is something we have to watch as the Global Economy is on fragile footing. Paul i know you say there may be an opportunity in terms of u. S. China trade, in terms of china potentially looking to remove tariffs on u. S. Soil. Can you ask lynn your reasoning . Tamar one of the things we thought was interesting coming out of this event is that the spread between brent and wti would narrow because brent is more exposed to the global wti is moreude and landlocked. It is because we dont export as much. One of the recent curtailment on exports is tariffs put on place by china on u. S. Crude oil. China is very focused on securing supply. They have a lot in inventory, but they are more supply focused than price focus. Being veryext of much dependent on outside countries further oil supply, there is a chance they might reduce or remove that tariff on u. S. Crude oil just because they need to source their own supply. Shery thank you so much for that. Nasdaq Corporate Solutions director of energy and utilities. Lets see how things are shaping up for the asian markets. Sophie first i want to check in on crude because we have wti hovering around the 62 handle after the record day we saw. Earlier, just now, tamar saying it is not good if oil goes to high. Checking in on gold, holding onto the rally. While u. S. Futures are moving slightly higher. Now checking in on how asias markets may set up this morning. Japan will be playing catchup. Watching for names that may rally after the surge we saw an Energy Shares on monday. Australian futures are halting a fourday gain. We are keeping and i on the reaction from moodys downgrading hong kong. You can see we are waiting on jobless numbers from hong kong which is piling up on that data. We have reports from singapore. Home price figures from australia as well as china. Paul thanks. Just want to get to across a story on the bloomberg terminal at the moment. It could be a big win for wall street. May get a 40 billion reprieve from regulators who may opposed to scrap key margin requirements. Acording to sources, meeting will be held on tuesday to propose eliminate the marching requirements, according to two people familiar with the plan. Other agencies like the Federal Reserve and the office for the control of currency may recommend scrapping that rule. Well have more details on that to come. That may be a 40 billion reprieve for wall street from regulators. Lets check in on the first word news. Ritika thanks. Greece is asking is European Union creditors to approve the early repayment of part of its bailout loan to the imf. The government says paying ahead of schedule would reduce debt servicing costs by more than 70 million euros. It adds the annual Interest Rate of the load is 4. 9 and greece can borrow money much more cheaply elsewhere in the market. U. K. Prime minister Boris Johnson says he is still optimistic about striking a deal on brexit, even if a trip to luxembourg to into he met Jeanclaude Juncker and skipped a press conference with his counterpart amid nosy chance from mainly british expat protesters. The u. K. Had offered nothing new and a no deal brexit would be a nightmare. Details cutting the outlook from hong kong cutting it from stable to negative because of the growing threat of street protests, as the Global Financial and business up. The unrest may hurt the government more than originally thought and damage hong kongs credit fundamentals. Moodys reaffirmed its rating. Global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more tha 120 countries. Shery still ahead in Bloomberg Technology global link, with the huawei connect conference kicking off this week, what is the companys ambition to be the worlds top smartphone maker by the end of this year . This is bloomberg. Paul you are watching daybreak australia. The u. S. And china are expected to resume trade negotiations in washington by the end of next week. Thomas donahue says he is optimistic but a complete deal is next ordinary challenge. Lets bring in our Economic Policy editor, sarah mcgregor. An x ordinary challenge to get a complete deal so what are realistic expectations . Sarah what we are hearing now is sort of the first dribs and drabs of what the sides are talking about. The latest is that china is willing to buy more u. S. Farming goods. If this sounds like something familiar, a promise you heard before, its because throughout these negotiations and even as talks broke out in may over an agreement that was almost completed, china has repeatedly promised to buy these farming goods. It hasnt really happened. Why is an important . Live with the u. S. Want to see . Of course, u. S. Farmers, the big support base for trump. Hes heading into reelection. They have arguably been one of the hardest hit groups in the u. S. By retaliation by china in this trade war. Any deal on farming goods would be a good news message for the trumpet administration. Shery we are seeing the latest headlines that President Trump is saying the u. S. Is going to enter a trade pact with japan in the coming weeks. We had heard some talk that the president wanted some sort of deal on the sidelines of the u. N. General assembly. What have we seen so far in terms of progress between the u. S. And japan . Sarah what our sources are telling us is they are really trying to finalize this deal which was announced in a bit of a hurry by trump a couple of weeks ago. It will amount to a limited trade deal. It will not be a full comprehensive trade deal with japan. It will involve more Market Access to each others economy, including japans farming access for the u. S. Sort of akin to what they would have received under the tpp agreement that trump pulled out of. It definitely is a step forward. Some people might argue it is a positive trade deal from the u. S. Side but it will not be a comprehensive trade deal and there are questions being raised about whether the second phase will ever come to fruition. Paul we are just getting a white house statement as well that the trumpet administration notified congress it intends to initiate these trade negotiations with japan. It will also include a packed on digital trade as well. Can you tell us anything about that . Sarah yes. So, of course, digital trade brings into the modern era what a lot of trade pacts from the past have not. A digital trade element from the tpp and the Trump Administration pulled out of that. One of trumps first acts in office. I think there is some sort of agreement to modernize these trade deals, a Digital Service element. Considering services is a large part of the u. S. Economy. I think that will be seen as a positive for the administration to forward that in a trade pact with japan. Shery thank you so much for the latest on this trade relations between the u. S. And china and japan. Plenty more to come from daybreak australia, including details on huaweis connect conference. This is bloomberg. Shery this is Bloomberg Technology global link. Im shery ahn, alongside paul allen in sydney and taylor riggs in san francisco. Lets take a look at the top global tech stories of the day. Taylor most analysts watching apple saying the new iphone 11 appears to be generally strong. Data over the weekend implies interest over the device which is off to a good start although it words extrapolating too much from the early numbers. Even so, current demand seems to be ahead of similar iphone launches last year. Qualcomm has paid over 1 billion to buy the rest of a partnership they have with japans tdk corporation. The firms set up there rf350 holdings to design radiofrequency components which are a part of smartphone design. Qualcomm says the deal will help it sell more chips for phone supporting the latest 5g wireless standard. Hsbc is buying the ticket to ride with uber and lyft, upgrading the stalling ridehailers as recent stock plunges have made them attractive investments. They have lost more than a quarter of their value since the ipo. Lyft has fallen about 15 over the same period. Hsbc says both companies are on the road to profitability and the price is right to take a ride. Those of top global tech stories i am watching. Paul . Paul thanks. Embattled chinese telco huawei is set to kick off a three day bash in shanghai. It will showcase new technology, knitting and the release of the companys latest smartphone. Where huawei goes goes the shadow of the trade war. Now from chicago. Thank you for joining us. Lets start with the huawei connect event. We are expecting a number of announcements possibly around ai, the cloud. What are you looking out for . Guest thanks. Year, theawei, this connect conference indicates that huawei has the ability to launch other products outside of telecom and smartphone segments. Their a. I. Product supports some of the huawei new smart phones and Smart Home Solutions which indicates huawei and after the band from the u. S. Government, huawei is trying to expand their Product Portfolio to other segments. If you look at last year, huawei billion which is ranked number five globally. They have 100,000. With total capability, i think huawei is able to launch a lot of new products, such as a. I. And cloud service. I think with the trade war, that view asianhuawei to supply chain is equal system. This year, the connect conference, we found that huawei starts doing a lot of partnerships and coat efforts with local suppliers instead of working with just suppliers. Paul one of the things we might hear about, as i mentioned in the introduction, is possibly a new smart phone. With android support at the moment scheduled to end on november 19, it will leave them a little high and dry, considering the problem App Developers had around the harmony os . Jun i think a Huawei Smartphone, the hardware is not a big issue. They have already shipped from the europe supply chain to the asia supply chain. Hardware is not a problem. Launcheve huawei will this weekend in germany. They will launch their smartphone in china i the end of this month. A little bit of trouble in china because the Chinese Consumer does not use google systems. That is light in china, huawei sharesl able to gain in with the local ecosystem. Outside of china, especially in the european markets, huawei is not able to preinstall google play and google apps. Consumers can still Download Apple play, google play and google apps by themselves. In some markets, there will be some impact, especially in the european markets. Overall, we think huawei is gaining shares in china and losing shares outside of china. Summarize, Huawei Smartphone is still able to grow yearoveryear. Taylor we cannot talk about huawei without also folding in the trade fight conversation. What has been the impacts on huaweis bottom line given the export ban . Jun i think originally, the huawei ceo had an interview with a tv program. He mentioned huawei increased rn day this year. That result in some of the declining of profits in the recent quarter. Also, i think during the position, the u. S. Supply chain so the asia supply chain, temporarily, the cost to buy some components will increase. That will also reduce some of the growth margins for some products like smartphones and some other products. I think there will be some impacts in the nearterm, but topline, it will continue to grow. They launched in huawei connect. There will be a lot of new products so that will help huawei. Taylor talk to me about the significance of 5g. Apple just released their new iphone 11 with no 5g. Samsung phones and huawei phones have 5g give abilitys. How much of that is a tailwind for the companys . Jun huawei will be really big next year especially in asian markets. South korea, they have launched service earlier this year. 5 consumers migrated to the 5g networks. China started to deploy 5g networks in the middle of this year. We believe china will be the largest 5g market next year. With 5g networks deployed and the coverage increased, a lot of consumers will migrate to 5g. With a 5g smartphone being launched in the coming quarters, i think especially the chinese 400, thattarget will help them grow the market share. Especially in china, if you look at apple market share, they not only have market share in high end, but a lot of middle and consumers. We believe with a 5g launch, huawei and other oems will gain share in the middleend market from apple. You forn zhang, thank joining us. Shery that was Bloomberg Technology global link. Dont miss Bloomberg Technology 7 00 a. M. In sydney, 5 a. M. In hong kong. Coming up, we will be speaking to anne barry of cornell capital. This is bloomberg. Devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. We will have some pretty good having some strong studies done but it is certainly looking that way at this moment. We will let you know. As soon as we find out definitively, we will let you know but it does look that way. Shery President Trump saying there is strong evidence iran is behind the saudi attacks. A busy day for crude traders. Wti crude now coming back under a little bit of pressure at the moment, down 1. 7 . Still holding about 60 a barrel, but this after the 13 jump we saw on the previous session, the biggest gain since february 2009 after those drone attacks on saudi arabias oil facilities. Take a look at this chart on the bloomberg, also showing how contracts for over five billion barrels of crude changed hands in the last session. That is a real record high as investors were just reacting to the latest headlines as geopolitical risk rises in the middle east. An alert weo recap, have had in the last few minutes. President trump claiming the u. S. Has reached an initial trade agreement with japan. He says the administration will enter into the agreement in the coming weeks, according to a statement from the white house to congress. The president also saying i will be entering into an executive agreement with china regarding digital trade. Some news of an initial trade agreement between the u. S. And japan. You can see some of the reaction. Futures for the s p and nikkei. Lets check in on the first word news. Ritika President Trump says it is unlikely he will accept an invitation to travel to north korea to meet kim jongun. Kim asked the president to visit for what would be that third summit. The white house has not confirmed the invitation, saying it is not appropriate to comment on a private letter. The president set he probably wont be traveling to north korea, although he said kim might fly to the u. S. Former italian Prime Minister matteo renzi is leaving the Democratic Party to found his own movement, although he maintain support. He may announce his plans later on tuesday, but he will not threaten the latest fragile government. Renzi Health Office between 2014 and 2016 but resign after voters rejected a proposed overhaul of the constitution. Israel heads to the ballot box on tuesday with Prime Minister Benjamin Netanyahu vowing to annex also him its in the west bank, including a jewish enclave. Hours before, he told army radio that if he wins, he intends to extend sovereignty over all settlements in palestinian ter y territory. Nick coalitionin after the vote. China praised it has faced over its bid over the london stock exchange. Also commended for its existing tie up with the Shanghai Stock Exchange as its preferred access to china. Lse already rejected the bid. The u. K. Financial conduct authority says it is watching the situation. We are in listening mode. Anybody who implies any view is quite wide of the mark. We are obviously very keen to hear all the proposals in terms of standards but that is as far as goes. Ritika global news 20 for hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts. This is bloomberg. Paul lets jump back into u. S. Market action behind the closing numbers. We continue to see sector rotation taking place. Hitting the sell button on this years big winners. Also, the stocks with low p. E. Ratios are back in favor. Su keenan joins us back with more. What are the highlights . Su particulate with the surgeon oil prices, we are continuing to see rotations and heavily shorted stocks. Oil stocks were among what you could call the most hated. A lot of these Energy Stocks bounced back up. So you have those making bearish bets running to buy them back. Lets look at the market snapshot and you will notice the big standout is the biggest gainer in the s p 500, the Energy Equipment and services. We go into the big movers, you can see how investors were buying it as a lot of the bearish bets have to buy those positions back to get outside gains. Halliburton,a few, overstock. Com is its own story. The departing cl put out some news that cause them to buy back but now the shorts are pounding the stock once again. The rotation is continuing beneath the closing numbers. Shery lets take a look at the specific stocks. How jarring has some of the breakdowns been . Su in technology, they are significant. If we run through a couple of the stocks, really seeing heavy selloffs last week. Restaurant stocks and retails such as starbucks. Starbucks was down 5. 5 last week. We saw a little bit of a bounce back but not much in the session. Lets take a look at mcdonalds. Another food stock that was down almost 5 last week. Take a look at, i think weve got aaa and some others chipotle and some others. Software plunge last week. It was a significant fell off. Without that also the cybersecurity cyberspace. That along with its rivals have been heavily hit. One more bloomberg chart. The fastestgrowing u. S. Companies have become too extensive for their own good, according to one of the head strategists at ubs. He is saying they are pretty much set up for more of a selloff too costly to ignore for this chart. Shery thank you so much for the latest on the markets. For a closer look at the macro forces guiding markets, lets bring in anne berry from cornell capital. Always great having you with us. We continue to see this rotation into value stocks, and away from those growth stocks. Is this a trend we could see continue over the longterm or is this a temporary shift . Guest it is a trend as you would inspect a seat as the geopolitical landscape becomes increasingly uncertain. It is reminiscent of the private equity space. Trying to drown out the noise of the shortterm volatility. One of the really stable, longterm Business Models that can be somewhat insulated from these shortterm movements. I think it is an interesting shift in terms of where to finding pockets of value. Shery how do you feel about Energy Stocks and the Energy Sector in general, especially the saudi attacks and oil surging . Ann i think with the oil sector, the volatility does make it particularly difficult to make a longterm perspective rather than making shorterterm plays. What we saw earlier this summer is there was a movement in the political arena that led to a very steep spike in oil prices but it corrected relatively quickly afterwards. The president said we are locked and loaded but in the same breath going to wait until we pull the trigger. I think with less clarity, it is hard to see where it moves. Paul how significant was that attack we saw over the weekend . We have heard talk before about the risk of drones swarms and finally we had one. Is this the oil markets pearl harbor moment . Ann i think what has been an evolution of news over the last couple of days has been the shift in trying to understand how much of that production will come back online. The initial reaction was 100 would come back quickly. Now the outlook will be much more conservative. It is less about what are the technological aspects, it is a lot more about how quickly we can see that production stabilize and what it means for the outlook in oil prices over the next week or so. Paul in terms of the outlook, we have been talking a lot about recession indicators. One of the ones that has been missing is this one. We have a chart that illustrates. Riselly, oil prices sharply before a recession. That has not happened yet. There is potentially this attack and risk premiums going forward. Is this kind of thing that might see that taken the other direction . Ann so many indicators coming out this week. You look at other traditional indicators, the inverted yield curve for example, the jury is out on whether that is the prognosticator used to be. As we move into this weeks news where the Oil Price Spike could be interesting is what it mean for core inflation for the u. S. . What does it mean for the Federal Reserves decision on rates tomorrow . I think the markets today, there a 25een a price in of basis point cut. Now that we have seen the oil prices, that is reversing the anticipation a little bit. Nothing in this landscape where we have so many traditional macro indicators moving in unexpected ways, the traditional ones are not shaking out how you would expect. Shery the new york fed factory survey, we are seeing at slump to the lowest level since 2016 when it comes to Capital Spending excitations. We continue to see this from manufacturing and consumers. How will this affect the outlook for the fed . Does this factor into their calculations . Ann great question. If you look at the data from the empire state report today, it is pointing to optimism is falling. Confidence is falling in the manufacturing side which ties them to the actual data we have seen. It has been slowing down over the last two quarters. Consumer Spending Continues to stay relatively robust. Whether that actually continues to be the case as a Tariff Program continues to kick in, come late october, i dont know. But it will create real complexity around the decision jay powell will have to make. Paul i know you closely watched the progress of brexit negotiations. Boris johnson comparing himself to the incredible hulk over the weekend. Can he get away with usual Collateral Damage related with hulk diplomacy . Ann hulk diplomacy seem to have gone from outdoors to endorse today. Indoors today. He tried to avoid antibrexit protesters which was happening. I think that continues to be a lot of noise. I think what is very interesting is what you are seeing in the u. K. And the moment which is a series of defections away from the conservative party who have openly said if there is a general election, they will run on a platform of revoking article 50. They will stand on the basis that there will be a revoking of the brexit move. I think the next couple of weeks until midoctober are going to be critical, not so much around what boris is doing, but around domestically what coalitions we are going to see that can really stand in the way of the no deal brexit he seems pretty focused on continuing to deliver. Shery always great having you with us. Thank you. Weworkss bet on problematic ipo could have adverse implications. Why some macros are rethinking their commitment. This is bloomberg. Im paul allen. Im paul allen. Shery im shery ahn. You are watching daybreak australia. More troubles for weworks possible ipo. The dow jones reporting the startup is delaying its public debut until october at the earliest. Sarah frier joins us. We have heard lots of speculation about what is happening with wework. What do we know so far . Sarah so far, it looks like at the very least they are discussing postponing the ipo until october. That would mean the soonest is the end of october because they would need to have the results for the september 30 quarter to share with investors. It looks likely that they will push it to at least the end of october. Shery what does it mean for fundraising for the vision fund . Had hadell, the vision fund actually been encouraging wework to delay its ipo. The last thing that the vision fund needs while it is out trying to raise money for vision fund two is yet another poorly performing ipo under its belt. The vision fund was a big backer in uber which went public and ipo has traded under its valuation for some time. If that were to happen again with wework, it would be difficult to fund raise in that environment. Paul how about relations with saudi arabia, because we have been hearing reports on bloomberg that saudi arabia, abu dhabi both reconsidering how deeply they want to get involved in Softbanks Vision Fund two . Sarah the saudi arabia and Public Investment fund had can 45 million to the first 45 million to the first fund. Another 15 billion. Now, they are saying they want to cut their commitment. The saudis are saying they will returnan to invest their for vision fund one into vision fund two. Consider a year ago when after the return for vision khashoggi murder, the journalist, the saudi journalist who was killed and many people wonder how involved the Saudi Crown Prince was everybody was racing to distance themselves from saudi arabia. Now, it is almost a reversal where it will be a big blow to the vision fund if they dont have a significant saudi involvement. Also, you could look at it from the saudi perspective. A lot of the money for the new vision fund was going to come from the ipo of aramco. That, especially with the fire over the weekend, is looking much less certain than it looked a year ago. Mcbride, right, sara thank you for joining us. The union strike against General Motors could cost the company about 50 million a day in pretax earnings, according to Credit Suisse. 50,000 workers nationwide blocked off the job yesterday. Lets go to detroit with keith norton. What is the latest . Keith they are still talking but we are told by the union that they remain far apart. It is really unclear how long this strike will last. Shery what do we know about gm . How catastrophic would it be if they strike last for a long time . Keith as you said, Credit Suisse sees the 50 million a day issue. They have built up inventory of cars and trucks that allows them for a while. Most of the analysts are saying if it doesnt end for two weeks, it would be a big problem. Shery help us understand why the uaw is not taking gms offer at this point . Keith the way they see it, gm is coming off years of record profits. We just had record expansion in the u. S. Auto industry over the past four years. The unions point of view is they helped gm survive they see in 2009 and now it is time for gm to return the favor. Of course, gm is worried about the coming downturn in the u. S. We are seeing a slowdown in sales. They are spending billions on new technologies like self driving cars and electric vehicles so they are trying to balance that with the needs of the union. Shery will President Trumps constant attacks on Gm Management sway the leadership at all at this point . Keith President Trump had gms Ceo Mary Barra in for a visit to the white house the week before last. They talked about the negotiation. He has tweeted and commented on this impasse. Hes encouraged both sides to get together. He has not been too harsh about either side. He says lots of auto workers voted for him and like him. He feels like he has a kinship to the labor vote. Hows the issue with temporary workers . Keith that is a big one for the union. They feel like auto companies, all three of them, overuse temporary workers and those workers are paid less, have fewer benefits, and fewer protections against dismissal. They would like to see less use of those lowcost workers. They also want workers who are new to the company to grow into the top rate quicker. Right now, it takes eight years to grow to the 30 an hour rate that you get at the top of the uaw scale. They would like that reduced to four years. Shery we have seen the uaw distracted by a federal Corruption Case against its leaders. How has that played into the negotiations, if at all . Keith it really looms over the negotiations, this corruption scandal. The latest turn with a Union Regional direction director being arrested last week. Then Union President gary jones being implicated. That has caused a real backlash among the rankandfile. Theres a lot of unhappiness with their leadership. Gary jones has not been seen around for a few days, although he remains the president. He was not at the press conference yesterday to announce the strike against General Motors. Gm, interesting, it is going over the heads of the uaw leaders in making the details of its offering known directly to the membership and public. That is a highly unusual move. It seems to be that gm thinks that the leadership has weakened. Paul keith in detroit, thank you for joining us. You can watch us live and see the past interviews on our interactive tv function, tv. You can dive into any of the securities or functions we talk about. You can become part of the conversation by sending us instant messages. This is for bloomberg subscribers only. You can check it out. This is bloomberg. Shery im shery ahn in new york. Paul im paul allen in sydney. You are watching daybreak australia. Lets get a quick check of the latest business flash headlines. U. S. Prosecutors closing in on jp morgan and an investigation into price ringing precious metals. Two current and former trader were charged with manipulating markets in what is described as a racketeering conspiracy run out of the bank. Some traders have already pleaded guilty and said it was routine and sanctioned by managers. Shery charter says it cannot explain how some of the wealthier clients made money and launched a review into hundreds of accounts on the private bank. A twoyearold regulatory review has been made public and found the bank did not have documentation to show the source of some clients wealth and in some cases lacked basic data on current client contact details. Paul blackstone is said to be in advanced talks to buy the iconic bellagio and mgm grand casinos in las vegas. A deal may still not happen. Mgm resorts has been a flooring the idea of selling and leasing back the property to free up cash. The bellagio and mgm grand have more than 10,000 rooms and 315,000 square feet of casino space. F a muted open with japan reopening to some good news. Trump indicated the u. S. Has reached an additional trade we are seeing u. S. Futures not higher. The yen is looking little changed. Wti hovering around 62 a barrel, taking a breather after a very busy day for crude traders as we have investors assessing the heightened geopolitical risk. Shery thank you for that. Coming up in the next hour, the stakes are high for the Federal Reserves meeting this week. Next, our guest is calling it a make it or break it moment. We will hear from john. Join us tomorrow and we have an exclusive interview with the executive vice chairman of the Worlds Largest alternative asset manager, blackstones tommy james joins us live from sydney on wednesday. Paul good morning. I am paul allen in sydney. We are under one hour away from the market open in australia, japan, and south korea. Shery good evening. I am shery ahn. Sophie i am Sophie Kamaruddin in hong kong. Welcome to daybreak asia. Paul our top stories this tuesday, President Trump blames iran for the aramco attack. Forould be weeks or months Saudi Oil Production returns to normal. The president says the u. S. Reached a trade deal with japan
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