General motors negotiations resuming next hour. The strike coming as gm faces declining sales and is closing plants with uaw leadership while facing an fbi corruption probe. Have news on vaping, opioids and chinas economy as well but im david asman in for stuart today. Good monday morning with varney co. Start right now. David lets get right to oil. Studies have shut down 5 of the production after two drone attacks. West texas crude and brent crude surging on that news over 10 . Here are dow components exxon and chevron free markets. They are unchanged but those situations could change dramatically when you have the opening bell. Stocks are a big along with the entire Energy Sector of the orbit here is President Trumps latest tweet on the subject because we have done so well with energy over the last few years, thank you mr. President , we are a Net Energy Exporter and now the Number One Energy producer in the world and we dont need middle eastern oil and gas and in fact, we have very few tankers but we will help our allies. Joining me now is analyst carl larry. Should we be concerned with the oil supply . We should be concerned with were not just talking saudi arabia supply but a lengthy supply from iran and venezuela so theres a lot going on here but President Trump is right. We do have a lot of supply and we can out to make up for that market share. David over the past year we are seeing the premarket activity when the bell opens things could change dramatically but its already over 10 rise because of what happened on the weekend. Treating over 60. 50 a barrel we been in a range between about 50 and 65 a barrel for the past year so could we go about that 65dollar range . Absolutely. The point here is that we have to start making it a risk premium but theres a tax on the saudis and they have be seen as a couple months ago and we could see it again. That makes the difference here but we have to start worrying about that and if it escalates we have to start thinking about that also because there is a big push Going Forward that we need to figure out something soon and start putting. David what makes a difference is something that the president alluded to, our Oil Production because of the re energization of our fossil Fuels Energy Industry at large is really buffering the effects of whats happening overseas like ive never seen it. Yeah, absolutely. Two great things here about american oil. Its one the best qualities are there for all the refiners and number two, biggest and most important, safest and most accurate if we say we will deliver it it will get delivered. That makes the difference here it makes our oil the premium right now. David carl, thank you. Look at stock futures. We open lower but this is a muted reaction into whats going on in the oil market. Joining us is jack with behrens. Jack, when you heard about these attacks over the weekend you thought maybe 200300 points down but 100 points is not a lot right now. Yeah, study say they can bring a third of both capacity online in a day and that they have 30 days worth of supply to make up for whats been interrupted, as you rightly point out, the u. S. Is a major force in Oil Production so its this is not the 1970s anymore. Were in a resilient position. David could western Oil Production get a boost . It will be a temporary rise as you suggested, but im wondering but not only u. S. Production but canada. Yeah, higher prices with think there be an increase in production, especially if some of it with us, with this price increase. Maybe some of this will be a risk premium on top of the price of oil and people think the text and this might become more likely Going Forward but i would not expect all this increased to stick with us but maybe some of the will and it might boost production. David just imagine what happened at the democrat green plans came online to rule out fossil Energy Production in this country within the next ten years. Imagine what would happen with an oil shock from the middle east . I dont want to come between the president and giving himself a pat on the back roads going on but i will credit Oil Companies and technology. A couple decades of tracking technology that was part of [inaudible conversations] no one would put a stop to that. David jack, stay with us. Other big story we are watching. Gm workers on strike, were at the gm hamtramck Detroit Assembly plant. Grady. Reporter relatively small group out here this morning but seems like this are plane out across the country as a 49,000 uaw workers for gm are on strike for the First Time Since the recession and what they are fighting for they say is better wages, job security and better benefits, specifically healthcare but we are at this specific plan because its in the heart of the Auto Industry but also because this is set to close in january of 2020 so many workers will be leaving their jobs if they dont get a deal that includes keeping this specific facility open. The unit is remaining tightlipped about what they are negotiating but it sounds like theres an ocean between General Motors and Union Officials when it comes to this contract which is a failure to present tentatively agreed on a dm, for its part, in an unprecedented move but out what it offered to the union over the weekend and said it 7 billion worth of investments for employees, adding 5,000 jobs more than 5,000 jobs and this comes as there are record profits for gm, almost 12 billion in 2018. Talks are starting at 10 00 oclock this morning, a few miles from here, this negotiation is that the tone for the two other fca and ford in the detroit three because this will be likely used as a template Going Forward. We will be sure to keep you posted that the morning and throughout the day as long as this goes on for david. David very busy morning rady, thank you. Lets stay on gm and get back to jack. Jack, precisely at a time when auto sales are not doing spectacularly well you have the Union Meeting for more money so how will that work . Its not just the normal cyclicality of auto sales but at the gradual longterm shift we look at the future of the electric vehicles and you have to be prepared for that. Its also changing tapered overnight america decided no one wants to drive city and Everyone Wants to drive pickup trucks and suvs so automakers have had to respond to those changing in pace. I think management gm is about the best it has ever been. They done a lot to preserve jobs and put it in a prosperous place. The workers here will get support and these are voters in the swing states and get support from the public the politicians but. David by the way, one figure and operate gm pays 63 per hour in wages and benefits compared with 50 an hour at the foreign owned factories. They want to think that the viper will they be able to do it connect. I think gm but offers on the table and my understanding is put them on for better wages but they also paper the well but with the closures theyre talking about plans to keep them open in some fashion in the future so again i hope this is short lived. With the competitive state of auto you cannot afford to have a long interruption. David i dont want to disparage the auto workers in any way but they got a pretty good deal with insurance and paid 4 outofpocket for their very good Insurance Programs and compare that with 34 which is what the average worker pays out of pocket for their insurance. Now we want to go to china, latest numbers so chinas economy is losing steam. Latest example of that is production coming in at 4. 4 in august year over year. Thats the slowest pace of growth since february 2002 and slowest in more than 17 years but we also found out the value of industrial exports are down 4. 3 which shows the tariffs are having an impact. Weve already been a swamp and auto in retail soils, Industrial Investment has continued to slump but all in all its a broadbased slowdown in the chinese economy. Question becomes what do they do with more stimulus and maybe as soon as tomorrow they may try to cut the rates of the medium Term Loan Facility but the problem with that for china is the rising debts. All in all this is the economy that certainly is hurting. David lets check the features. To put this in perspective, imagine how times have changed things wouldve been different for the problems in china and the problem we have with mideast oil, gms general strike in the futures are down just a fraction of a percent. 100 points out of a 27,000 Dow Jones Industrial future but Purdue Pharma filing for bankruptcy as part of a major settlement over its role in the Opioid Crisis but we are on that but also trump economy is going strong with thousands of jobs added each month and africanamerican on the planet at its lowest level ever but a new survey showing for Small Business owners 18 democrat to win the white house in 2020. What is up with that . Bernie sanders unveiling another trillion dollar plan with a 2. 5 trillion affordable, socalled, housing plan. At this to his brain deal, medicare for all and for giving stated that it goes on and on so how will you pay for over 50 trillion of new programs . Arthel flapper is up on next. Bernie company is just getting started. 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Shipsticks. Com saves you Liberty Mutual customizes your car insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. David opioid maker, Purdue Pharma, filing for bankruptcy as part of the billiondollar element with the state and local governments. Susan lee has the details. This is a person deal, 10 Million Contract into three halfling dollars in settlements of Purdue Pharma going to bankruptcy. This was expected because they were excited to file on sunday but the Purdue Pharma will continue to operate and be under trustees so the fact that there is no longer [inaudible] but we still have over two dozen states that have not settled in this so you can expect litigation which we have over 2,000 cases still whether its civil or federal with the doj looking into criminal complaints as well against Purdue Pharma and even the family members have been listed as well. This is oxycontin playing blame for sparking the Opioid Epidemic which has killed over 400,000 lives. David but a multibilliondollar loss for the company. Heres a number. If you think 1 billion is a lot what about two and half trillion dollars. Thats the price tag for Bernie Sanders housing plan for turning us is former reagan economist art flapper. Art, he began to add up this trillion dollar and you get into real money here. I just put together a list where we will get to 5 trillion for housing and 3540 trillion for socialized medicine and in 16 trillion for his green plan and then theres a student loan forgiveness et cetera. You are talking doubling or at least doubling of our federal budget but what does that do to the private sector in this country human. It will mean we raise tax rates to well over one 100 on everyone who works sorry time you go into the office instead of getting a check you get a bill and then will be able to pay twice the gdp in these silly people dont realize by raising tax rates they will reduce revenues, not increase revenues, cause a depression. They will get low Housing Prices because everyone will be on unemployed, no income and Housing Price will be really affordable for the one guy who works. David to talk about these silly people. They are running for the president of the United States and its not simply Bernie Sanders the socialist but liz warren has signed off on almost all of these programs and even joe biden is for killing off fossil fuels so its not just anybody. These people have a shot at the presidency of the United States. What happens if they went . I dont think thats true. Harold ran seven times, George Mcgovern and ray well, john George Mcgovern was and [inaudible conversations] he got one state, massachusetts. Thats what will happen here. [inaudible conversations] he may have gotten puerto rico, too. I didnt look at that or the Virgin Islands or guam but he did not he only got one state, massachusetts because of the silliness. Bernie sanders is running and is the nominee i think trump will win 54 states out of 50. David again, its not just Bernie Sanders but if in fact liz warren with all her programs are saying this could happen to this country are you saying theres a 0 of the democrat nominee will become the president . Zero is probably a little high. No, im kidding. Im not saying that your plan but trump would do something horrible to let the wind with these types of policies. Unless you dont believe in economics and if you think it Something Else than maybe they can win but its not and is john James Carlson with clinton if the economy whatever, stupid. David so quickly, why then if theres a 0 possibility of a democratic went with a new poll so that Small Business owners say they prefer democrat over President Trump . I read that article, too. Their poll was of three businesses but no, 700 businesses in 50 states and the other pole larger poll showed just the opposite. These polls are silly. They extrapolate to get new story running on this and Small Businesses think trump will do very well and especially when it comes to for them to vote. You can do all the polls and hypotheticals you want and theres one folder matters and that is on the second tuesday or first tuesday after the second monday of november. When that happened that is the poll that matters right now i think trump has got a huge lead on that poll. David art laffer, wonderful to see if it have a great week, art. Hey, you too. Thank you. David President Trump just tweeting out in here it is remember when i ran shut down a drone saying knowingly that it was in their quote, airspace, when in fact it was number clo close . They stuck strongly to that story knowing it was a very big lie and now they say they had nothing to do with the attack on saudi arabia. We will see. Heres a look at futures they are down a little more than they were in nothing like a lot of people thought they were after that attack in saudi arabia but we will see what happens when the opening bell rings and well be right back. Imagine a world where nothing gets in the way of doing great work. Where an American Icon uses the latest hr tools to stay true to the family recipe. Where a music studio spends less time on hr and payroll, and more time crafting that perfect sound. Where the nations Biggest Party store can staff up quickly as soon as its time for fun. 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