Searching for direction. The latest round of trade talks between the u. S. And china are going to be hanging over o this market all week just days before higher tariffs are scheduled to take effect. Investors are trying to gauge what if anything are going to come out of these talks and so far theyrefa getting some mixe messages and that caused the push and pull that we saw today ending with the dow down 95 points to 26,478. The nasdaq was down 26. The s p slid by 13. Kayla tausche starts us off tonight from washington. Reporter roundnd3 of u. S. China trade talks kicked off in washington today. Lower level officials meeting to figure out a menu of items for cabinetlevel negotiators and potentially President Trump to take up later this week. With tariffs escalating in days, a potential meeting between trump and president xi in weeks and critical election primaries in months. Heres President Trump today. I think that well just have to see what happens. I would much prefer a big deal and i think thatshat were shooting for. Can something happen . Maybe. Who knows. I think its probablyro unlikel reporter white house advisors are hedging their bets. Larry kudlow, open minded. We are waiting for the chinese offer. We are open to almost anything. Reporter Peter Navarro said any deal will have to be t comprehensive with new laws to combat Technology Theft something chinese officials are signaling theyre unwilling to offer. Thats been a deal breaker for the white house in the past. U. S. Officials want to avoid anymore selfinflicted economic wounds. The u. S. Will have a hard time completely rolling back tariffs now. The predent is going to get much less out of this thanf was advertised originally and so hes going to have to say that hes going to keep some powder dry in case commitments are not made or in case we dont move forward. Reporter the next round of tariffs will hit Consumer Electronics like isos and laptops. Giving an advantage to foreign competitors like samsung who dont assembl products in chi and driving up prices for those that are. For nightly business report, im Kayla Tausche in washington. So what is the market hoping to hear from the trade meetings at the end of the week . Were joint by david leboits from jpmorgan asset management. Welcome back. Thanks for having me. What does the market anticipate or want to hear at this juncture . So i think that the market is operating under an assumption that eventually at some point we do get some sort of deal. I think in terms what the markets wants to see with respect to this week and the next couple of months is the tariffs that are on the cusp of going into effect, seeing that can get kicked, seeinin no escalation in terms of where things currently stand. I dont think the market is expecting this to go away but maintaining the two steps forward, one step backypef narrative that weve seen in play for the past 18 months is what the market is pricing in. There was a survey of the economists that make up the National Association of business economics. A majority of them said they feel like the u. S. Could dip into recessi next year largely because of the tariff situation, the trade war. So our question is what would keep us out of recession . Prritize some of the issues that they are going to be negotiating this week. Is it something to do with the consumer . Manufacturing is already in recession at this point. Is there something they could do to pull that out at this point . What do you think . I think mufacturing is in a a tough spot, and what happens with manufacturing activity, not just in the u. S. But around the worldoing forward, is going to be beholden to how trade talks develop. In terms of our view on where the u. S. Economy is headed, it really all comes down to the consumer. Manufacturing goes through many cycles every 18 to 24 months. Weve seen a couplpl of them through the course of this expansion. The consumer has been able to offset that weakness. They are actively offsetting that during the current episode. The question you need to ask yourself, we look at last weeks job report. We see the pace of job growth slowing down. The consumer isnt headed off of a cliff but consumption is obviously a function of whatha goes on in the labor market and youre seeing companies begin to pull back a little bit. So thats something that we need to keep an eye on as we gauge the longevity of this expansion. Very quickly, if these new tariffs go in, they are going to hit a lot of consumer electronic products. Yes. Which could have aampening effect. Absolutely. Thats why this final round of tariffs is so scary. Up until this point people dont buy washing machines every year but they do buy phones every year so we need to think about, you know, what is in this set . Its morelltive to the way the consumer spends their money. Thank you as always. Thanks for having me. As weve been reporting for months now, farmers here in the u. S. Have been hit with a onetwo punch, the trade wars weather. Now that in turn is hitting demand for farm equipment. We sent frankolland to e moline, illinois, to see how that industry is fairing right now. Reporter farming is cyclical. A time to plant, aa time to harvest and a time to buy new equipment. Im being very conservative about large equipment purchases. Reporter bill foreis a sixth generation farmer planted fairly early may so theres seed beans in those pods. Reporter hes one of many farmers who say theyve been directly impacted this season by floods and rain in the midwest as well as the ongoing trade war reducing demand for soy beans. The farmer in the u. S. Is obviously in a worse position than they were a few years back to be buying combines and tractors. Im trying to ttoe a wait and see attitude, maintain the old equipment and then if times improve well roll into some newer tractors or combines. Weve backed off of any capital purchases of anything very high dollar. Weredo going to ptpone anything in the future for probably a full year, possibly two years out and just maintain the line that we now have. The income just isnt there to justify a new high dollar purchase. Reporter major manufacturers seeing the uncertainty of farmers hitting their bottom line. Farming equipment shipments are down 18 year to date from a peak in 2014. John deere wil layoff 160 workers later this month and in november after reporting a 6 decline in salesor its Agriculture Division last quarter. Agco reporting sales of tractors down 2 . Combines down 3 in the first half of the year. John deere is the regions largest employer and people who live hearsay they have a mixed outlook on downturns and layoffs. I believe the farming industry moves in cycles. I see that, you know, we have layoffs and shutdowns for a while but it seems like they always call people back. It hurts everybody. I mean, its just like a downfall, you know . Machinery costs go up, people se their jobs and its really bad. Reporter with trade talks resuming on thursday, farmers say theyre hoping for a new deal that will give them the confidence to buy new equipment. Here in east moline, illinois, frank holland, nightly businesi report. Meanwhile, americans slowed theiei pace of borrowing slighty in august. According to the federal reserve, Credit Card Debt actually fell but auto and Student Loans saw their biggest jump in three years. Economists, of course, are watching the consumer for any signs that households may be pulling back on that you aeir s. And the health of the consumer is key to the housing market. But a funny thing is happening. A new survey shows Consumer Confidence in housing is weakening just as homes are becoming more affordable. Diana olick explains the disconnect. Reporter lower Mortgage Rates are making home buying more affordable, but concerns about personal financing are eating into overall confidence in housing. Consumer sentiment in housing fell in september from its august high according to a monthly survey from fannie mae. Why . Well, because more americans said they are concerned about losing their jobs. That was the secondastraight month that componentf this rvey rose. This as Mortgage Rates now sit at the lowest level in over a month and are significantly lower than they were a year ago. The average rate on the 30 year fixed mortgage is around 3. 64 . That means that about 21 of the National Median income is required to make the monthly principle and Interest Payments on the average price home. This is the second best affordability rate in nearly two years. It also adds about 46,000 in purchasing power. Thats boosting home sales and mortgage refinances as current homeowners take advantage of potential savings. Id say most of the folks out there today should think about getting a refinance because these rates a now at historic lows. And, in fact, were actually seeing the purchase market pick up. September was a very, very strong month for us from a purchase perspective. I think Interest Rates help that as well. Reporter so far lower rates seem to be outweighing weaker confidence fueling the markets and values. If home prices overheat again and rates turn higher, the scale could easily tip in the other direction. For nightly business report, im diana olick in washington. Time to take a look at some of days upgrades and downgrades. Shares of uber were upgraded to buy from neutral at citi with the analyst saying the Third Quarter results may help investor sentiment. The results will be released next month. Price target, 45. The stock rose 2 today to 30. 37. Etrade was upgraded to buy from neutral at ubs. The analyst says etradeas the most value of anyny of the onli brokerages. Price target, 41. That stock gained 2 to 37. 22. Wendys was downgrad from market perform to over perform at cowan. The push into brek nast could be costly. The price target is 20. The stock finished just about at that level at 20. 11. Carnival cruise line was downgraded from hold to buy at hsbc. They cite the potential for alaker bookings in 2020. The price torgt 33. The stock fell to 40. 91. Still ahead, a foul has been called on the nba in china and now the league is in crisis mode. General electric is freezing its pension plan for 20,000 employees. The decision is designed to reduce ges pension deficit and shore up its balance sheet. About 100,000 former ge employees who havent started receiving pension benefits will be offered a limited time lump su payment. No changes will be made for retired employees. The stock was down a fraction in todays trading session. General motors is temporarily laying off another 415 workers, this time in mexico, due to the strike here in the u. S. Company had to halt production at a v8 engine and transmission plant in mexico because of a shortage of parts. Todays layoffs are in addition to the 6,000 temporary layoffs announced last week. Meantime, over the weekend United Auto Workers officials said the talks with the company had taken a turn for the worse. The striwo is now in its fourth week. Many agree that the consumer is in good shape and that bodes well for restaurant stocks which begin reporting earnings in the coming days. But the consumer isnt the only thing driving business in tha industry. Kate rogers takes a look at the sector and what to watch when earnings are released. Reporter is it time for vestors to dion restaurant stalks . . The next few weeks could hold the answer. It used to be that the strength of the consumer would make or break the quarter but not anymore. The industry has gone through a big transformation, including the growth of delivery services. Americans spent some 10 billion on Third Party Delivery last year alone. Mention these companies by major restaurant playersaveeeee on the rid in recent years. Its been a big boost for brands like chipotle and mcdonalds as they expand their reach. Dominos admits its being pressured. If you look at the trends over the last roughly 12 to 18 months or so, off premiseales have been the biggest driver any sales growth for the industry and a principle part of that is delivery. You know, dominos certainly has felt the surge in Third Party Delivery providers. Reporter then theres the restaurant itself. Upgrades and new technology, things like kiosks and mobile order and pay are attracting new customers. Bothtarbucks and chipotle have continued to esize new offerings and have seen Loyalty Programs increase as a result. If you look at where the real success has been in sales growth related to technology, certainly mcdonalds is one of largest. Es chipotle has been very, very successful. Starbucks has been very successful. All of those companies are, i think, you know, great examples within the industry where economies of size and scale and the ability to invest in the business is really making a differen in their sales trends versus a lot of the smaller operators. Reporter and finally analysts will be looking out to hear how value is playing among consumers as recession chatter continues and how new menu itemn like plantbased meat at places like burger king and dunkin are performing. For nightly business rort,or im kate rogers. Harleydavidsons ebike may be stuck in neutral and thats where we begin tonights market focus. Reuters says that the Motorcycle Company is seeing weak demand for its newew line of electric bikes that are called live wire duo a nearly 30,000 price tag and a lack of interest from younger and more environmentally friendly riders. Harley shares fell about 3. 5 on that news to 34. 11. Lavongo health has won a government contract allowing thcompanys Diabetes Management Program to now be offered to federal employees who either have type one or type two diabetes. Lavongo says it will increase revenue up to 60 million and bring up to 45,000 new customers over the next few years. Shares jumped big time to 20. 50. Conocophillips is hiking the dividend 40 to 42 cents per share. They announced a 3 billion shareuy back next year. Conoco rose 2 to 54. 60. Dicks Sporting Goods is looking to hire up to 8,000 Seasonal Workers for the upcomi holiday season. Next wee they wbe hosting the Second AnnualNational Signing day. Dicks hired ir5,000 employees that job event last year. Shares were basically off more than 2 today to finish at 37. 94. The nba finds itself in the middle of a political crisis. One of the teams most popular with fans in china now finds itself in hot water all bause of one tweet. And as eric chemey reports, there are billions of dollars at stake for the league which has spent years growing a massive audience in that country. Reporter Houston Rockets generara manager tweeting on friday night an image saying fight for freedofrtand with hong kong. That led to an immense backlash from the Chinese Government and some of the nbas maj chinese partners. The nba releasing its own tweet calling the tweet regrettable while Tillman Fertitta disstatad himself. E fallout has put the relationship with chi on thin ice, a relationship that the league has been carefully nurturing for decades. The China Division is worth more than 4 billion or 133 milli per team. While the league has allowed players and coaches to be vocal on domestic political issues, it has taken a different issue with china. They have boasted about the 300 million basketball players in china and the 500 Million People who tuned into an nba game last year. Over 2 Million People watched game 6 of the nba finals. The leagues media deal with chinas ten cent is over 1. 5 billion. Ten cent has already said it would not show rockets mes. That comes as a slew of other chinese sponsors have cut ties with the rockets. That is a twist because the rockets are perhaps the most popular nba team in china due to yaw ming who played for the ckets. Yao is now the chairman of the Chinese National basketball associati association. They will play in china this week as part of the preseason global tour. Joe tsai is a cofounder of alibaba and issued a lengthy statementem connecting it to foreign interference and the threats to its territorial integrity and sovereignty. At stake is a business thain ha been notching double digit growth in china since 2008 and internet viewership on ten cent just four years. For nightly business report, im eric chemey. So with billions of dollars at stake for the nba in china, the league clearly is in damage control right now. Joining us tonight with some thoughts on that, dean crutchfield is with us. Good to see you. Welcome back. Thank you ver vmuch. Commissioner adam silver is going to be in china as part of the exhibition games. Hes gng to hold a news conference. What do you think he should say . I think hes got to be very direct about his message. You know, hes got to be, yes, apologetic to china for the upset its caused them. He has to defend american principles. We have to show leadership. Thats what makes america great. Theres billions of dollars as we know at stake here so its a very sensitive issue. Hes basically going to be skipping through the rain drops figuring out howo manage it ve delicately. What he does need to do is respond boldly. What can that mean . Can mean dferent things. Most importantly it has to be done in bold steps forward and done with the view that america is good. But it is a fine line, is it not, because the league is getting criticism from players and from politiciansut bowing down to china. How does he walk that fine line . How does the league and the player sz walk that line . What you need to do is look at whats the bestessage to put forward . Marketing is a great way of unifying peopleo and whats needed in this crisis right now is going to be a lot of marketing coming out over the next days and weeks because that can unify. Brands are meant to bring people together. Sport has many unifying points of view. This is about a sport. They can use the sport as a platform, as a mantle to communicate a essage of how to unite peoples points of vieww arnd celebrating sport. So basically what he needs to do is defend the position they took. He needs to deny that there was anythingngbout sovereignty or any imposition towards china and he needs to deflect the respspsibility of the situation to darryl moray who made the statement and did the tweet. Thats what they need to do. So defend what they said, delay the ultimate response, deflect the responsibility to moray and basically defend their position. Absolutely critical. Along those lines, should rockets owner Tillman Fertitta fire the general managhe who tweeted this . Look, if this is another business he would be fired for this. This is a breach of conduct. This is a situation where youve made a statement you should have known shouldnt have been sent. You didnt seek permission. In a corporation this is a fireable offense. I think thehe ultimate thing th need to do is they have to get rid o o moray to show they mean business. Going to be interesting to see what adam silver does say. Dean utchfield with crutchfield and partners. Thank you for joining us. Thank you. Coming up, want to let your car do the driving . Experts say, not so fast. About 1 4 of Health Care Spending here in the u. S. Can be classified as wasteful. Ats according to a new study from humana plished in the journal of the american medical association. Complex administrative structure accounted for most of the waste followll by things like failure of care delivery, failurere of care coordination a overtreatment. The study estimates that roughly half of all wasteful Health Care Spending could be avoided. Well, elon musk and others are promising the arrival of selfdriving cars within the next couple of years, theres a growing number of executives in the auto and Tech Industries who are pumpinghe brakes on thosehe expectations. They say it will likely be many years beforeou see Driverless Cars zipping around your city. Phil lileau has momo. Reporter from autonomous mini vans in arizona to selfdriving cars on the streets of san francisco, the auto and Tech Industries are getting close to putting Driverless Cars out on the road in large numbers, but experts say slow down. Theyre not ready for primetime yet. Theres a lot of development that has to take place. Reporter dr. Mark rosekind and the team at zooks are designing an Autonomous Vehicle. He and others admit t Technology Still has a ways to go. Were still very much at the learn, put it out there, understand how people are going to use the technology and then build a business around that. Reporter his company, aurora, which develops Autonomous VehicleTechnology Says the potential benefits for freight companies, meal or Package Delivery firms, even ride share operators is enormous but still unproven. Thats not stopping Tesla Ceo Elon musk from phing his p companys auto pilot techn togy as the next step of letting the car do the driving but fender benders and close calls with driverless teslas have some wondering if e public is ready to accept this move. The publics going to have to trust these. If we dont have new safety metrics, transparency and experience with people, were not going to see the Widespread Adoption thats going to make this truly transformative. Reporter which brings us back to chris ermson. As a leader of ogles selfdriving car project, he talked about the future oe autonomous cars. Our teams goal is thaty 12yearold son wont have to get his drivers license because he can get places. He turned 16 about two weeks ago. And so he can get his drivers license. Hens hasnt yet gone to go get so we are i think when we looked forward from five years ago about this technology, i thinkkerhaps were a little bit more optimistic about how quickly we cover the ground. Reporter the bototm line, the Technology DrivingAutonomous Vehicles is coming along quickly but most in the industry are now more realistic about predicting when we will see large numbers of selfdriving vehicles out on the road. In fact, many believe that wont happen until well into the next decade. Phil lebeau, nightly businegh report, chicago. And finally tonight, the joker had the last laugh over the weekend. They had the biggest october opening of all time raking in 96 million at the domestic box office. That figure beats the previous record held by the spider man spinoff venomom for the Warner Brothers studios, it was its biggest debut in two years. Before we go, heres a look at the days final numbers on wall street. The dow fell 95 points. Nasdaq was down 26. S p 500 slid 13. That is nightly busibuss reportss tonight. Im sue herera. Thanks forthoining us. m bill griffeth. Thanks for joining us. See you tomorrow. Woman this is bbc world news america. Is made possible by. The freeman foundation; by judy and peter blumumovler foundation, pursuing s sutions for americas neglected needs; and by contronutions to this pbs station from viewers like you. Thank you. Laura this is bbc world news america