a small sized settlement with -- tied to inaccurate trade data that had been sent to the sec over a decade. we are also looking at u.s. steel. this group that a deal with the canadian steelmaker possibly making a bid for u.s. steel. they need a lot of muscle financially to do that so there could be a partner that comes along. u.s. steel shares are up in the news today. then we continue to watch what's happening with the automakers. we are seeing the big three moving in different directions. on the one hand, you have ford higher, gm and stellantis have been trending lawyer which --

have been trending lower which feeds into the story that the strike has expanded them at the walkout has expanded but ford arguably being spared based on some of the encouraging contract talks that they have had with the uaw. >> they are still striking bronco plant. in michigan where they also make the ranger. they are not expanding the strike according to the uaw president. he spoke earlier about the expansion at the other plants. guest: we can and will go all out if our national leadership decides companies are not willing to move. stellantis and gm will need serious pushing. all the parts distribution facilities at gm and stellantis are being called to stand up and strike. we will be striking 38 locations across 20 states across all nine regions of the uaw.

jon: let's bring in detroit's bureau chief for more perspective on how things been playing out. what has been a reaction to the fact that you have or strategy from the head of uaw here when it comes to this additional strike action and as we were just talking about, the fact that work for now spared at least in terms of more lockouts? guest: ford gave in on cost-of-living allowances. they didn't give us the exact number, but it sounds like they reinstated what was taken away in 2009. in addition to the raise date agreed to, also get whatever inflation is negative built and. what gm has wanted to do and this is the fundamental this agreement and probably why they

have parts plants going out on strike, gm believes the way to handle inflation is to give them income protection. give them a big raise then on top of that if inflation is high, they would protect the workers with lump-sum payments or some sort of formula that gives them money if inflation is in excess. the workers don't want that, they want both. epic that's what one of the big fights is over. the other is how they handle temporary workers. gm and stellantis aren't there were the union wants them. they are probably in striking distance. matt: there is an interesting balancing act for the administration. on the one hand, president biden claims to be incredibly prounion. on the other hand, he is trying to push through this green transition for which the federal government has already given out billions of dollars in subsidies. i think fortis industry because

they seem very committed to battery electric vehicles yet they seem to be swinging back toward hybrids a little bit. how is that balancing act work out and what does the uaw want to see? guest: i think fortis seen that -- ford has seen that they see the growth in db -- ev's slowing. they are seeing growth in hybrid sales so they are going in that direction. that is kind of what the union wants to see. they want to make sure the workers who work in engine and transmission plants are protected. we get into this interim hybrid area last hunger -- last longer, that means engine and transmission jobs will be secure for longer someday they are going away and anyone who works

at battery pay once -- a battery plant wants the same pay as an engine transmission worker. that's why the union wants a product in every plant that exists right now that means those workers will be employed. matt: excellent to get coverage from you. here to discuss further is a cornell university director of labor education researcher. you explain something to me last time which i thought was interesting. we talk about the wages issue a lot. we talk about the pension demands as well as shorter workweek. they also want to get rid of this tiered system. are they getting anywhere on that because that's one of the pieces we don't hear about often. guest: the companies have moved on that issue but not far enough

for the unions. it for the union, it's a huge issue for the rank-and-file members. the idea of not working next to someone doing a similar job for much less pay. i don't want workers and components to be making different pay then workers and the other parts of the plant. they don't want to have workers that were hired later having the same pension and health care benefits. they believe this strongly because it hurts morale, it hurts productivity and it hurts union solidarity to have workers making different amount of money working side-by-side. jon: i will ask you what i was active -- asking david, the fact that you have what began as a different approach by the uaw do not have a target automaker but

to be talking with all of them i guess should we be surprised to see the expansion of the strike itself in many ways be pitting different automakers against each other? guest: the union is moving a very strong strategy. the companies don't know what will happen next. they can't prepare and say you will get striker replacements in this place or that place. they don't know what the union will target. the union is rewarding ford for moving and they are saying to stellantis and gm if you don't want to move, we will keep pushing you harder. we've expanded to 38 different sites today and the places they have expanded to our parts production facilities they get the consumers much more engaged because the consumers can't get parts, they will be blaming the company and pushing the company to settle. but also gm and stellantis don't

know what's happening next and ford knows that if they don't keep moving, the union will hit them as well. jon: how do you balance concerns about labor and the organizational impact that they have in terms of raising wages and improving the quality of life are all their workers and the climate? right now it seems the two are at odds in terms of the green transition and these workers being able to earn a living wage and have some kind of job security. guest: we have to do with the climate crisis, there is no question that has to be done. i don't think the autoworkers are saying they don't want the country to deal with it but they don't wanted to be at their expense. not just at their expense, but

the workers who are in the new green economy, they don't want them to have bad jobs with lower benefits and no pay. if the ev sector ends up with poor paint job and fewer benefits, it will undercut all of the workers not in that sector and undermine the union so they want to make sure the transition happens in a way that the workers are fairly compensated, protected from self and -- health and safety issues. the ev is a new industry, there are new health and safety issues. they want to make sure the jobs are safe, compensated well, and it is done fairly. matt: great to get more context from you. coming up, negotiations resume for the other strike we are following.

we will have the latest for you on the hollywood strike which may be nearing an end. this is bloomberg. ♪

jon: this is bloomberg markets. get to the stock of our. studios have been slumping. they have been in their most significant round of discussions since the walkout months ago. try to make the right bet on when a deal might ultimately been in place has been tough for investors. matt: even difficult for actors,

guild leadership and studio leadership as well. it has not been an easy thing to forecast. we still don't know. earned media analyst joins us now. -- our media analyst joins us now. guest: this is a unique time in the industry. you have dual strikes happening in hollywood right now. obviously, it is good news they are back at the table but the longer and longer the strikes drag on, it's difficult for everybody. we have seen some companies like warner bros. discovery take down their earnings expectations for this year. they reduced it because they said not having fresh content will affect advertising. as the strikes drag on possibly into 2024, that could become a

real problem for their bottom lines. jon: at the same time, your team put together some data on what the free cash flow picture looks like in light of the strike and how long this has been playing out. guest: because there is no production happening right now, obviously there are no content costs that these media companies have to pay out so they have all taken up their cash flow protections for this year so netflix had a projection 3.5 billion dollars. they took it up to almost 40% to $5 billion. disney reduced its cash budget. in the short-term, yes it artificially boost cash flow but in the long term, cash flow will be lumpy next year. this is not a good situation from an earnings perspective and

long-term earnings growth. matt: what is the bottom line for the streamers? the head of the actors you told paul sweeney -- ahead of the actors union told paul sweeney that she thinks the streamers make $30 billion per year in pure profit. is that business model such a strong one? guest: unfortunately, it is not. yes, they generate some revenue but it is not translating into the bottom line at all. at this point of time, the only company that is profitable is netflix and they will generate about $6.5 billion in profits this year. all of the other streamers including disney, paramount, warner bros. discovery, there all losing money. they will lose a combined $9 billion this year. streaming still has to establish itself in terms of generating long-term profits.

that's one of the reasons why they are were -- they are reluctant to consent to what the actors are asking for. jon: thank you for breaking down the hollywood math. coming up, the company building a solar powered cobalt plant that could create one million ev batteries per year. this is bloomberg. ♪

♪ explore endless design possibilities. to find your personal style. endless hardie® siding colors. textures and styles. it's possible. with james hardie™. jon: this is bloomberg markets. jon:the uaw strike is being politicized in washington as a concern over the biden administration's aggressive clean energy spending. here's what mike pence told us last week. >> what i am hearing around the country is that autoworkers are very concerned about joe biden's green new deal heavy-handed

effort to use taxpayer dollars to drive these automotive companies into electric vehicle production. you have 145,000 workers out there many of them build a lifetime making gasoline powered cars. jon: our next guest company is about to build america's first solar powered cobalt processing plant at its roughly 80% of critical minerals needed for ev batteries are sourced from china. the fact that not only you are building a solar panel -- solar powered field facility but one of the key components to making ev batteries i would imagine it's the kind of story in this environment to green transition that is gotten a lot of attention. what would you say about the

government support you have received from this big push? guest: i think the government support really helps us but we were going to do this project anyway even without the government support. within planning said do this for over four years. that was well before the inflation reduction act and the bipartisan infrastructure law came into effect. you have $90 per barrel crude oil right now and that is the main driver for eb uptake. -- ev uptake. if people can't afford to fill their gas tanks, they will switch to electric vehicles. matt: to me, the interesting story isn't how the green transition will be used as a piñata by the presidential candidates, but the story is we need to move this production to america because all of the cobalt or the lion's share comes from the congo then goes to china where it is processed.

anybody building batteries whether it's the germans or the chinese or the americans, they all have to buy the processed cobalt from the chinese. as far as i understand it, the first cobalt processing factory in north america. will we start seeing real volume come and when? guest: yes, absolutely. there is no cobalt line -- mine in china yet they have 30 processing facilities while we have zero. it's important that we bring this material directly from africa to the united states then we process it here and sell it into the new factories that have been announced in canada and the united states gm, lg, ford, samsung. there's hundreds of billions of dollars being spent on the ev transition to bring in these new

factories, higher u.s. workers, give them new training on the technology of the future. matt: i know that yuma county in arizona estimated this will generate $330 million for the local economy. that's not what you are paying your workers, that's what it will create around there. i imagine that's the kind of thing that even the republicans want. to generate more money for americans. will you be able to get preferred status when ford and gm or tesla are looking to buy cobalt? will they buy it from you instead of the chinese? guest: we hope so. that is a good benefit from the inflation reduction act that we should be able to be a preferred supplier because we are qualified under the act and we aren't using any materials from china.

that should work in our favor. we are helping the local community. we are solar powered, so we are selling back some of our excess solar power at cost to the local farmers who have been losing hydropower from the lower levels on the colorado river. it's a win-win all around. jon: matt was talking about tesla. am i correct that in terms of the location where this plant will be based is close enough to california that you think that first generation of electric vehicles or the demand for new batteries that being physically there is a net benefit to your business? guest: yes, in the long run we intend to recycle ev batteries. being here right on the border of california will help us get the first generation of ev's that have run through their lifecycle we will be able to get

those batteries to recycle that cobalt. we are also planning on building a cobalt metal strategic reserve for the u.s. government. the administration has identified cobalt as a critical material that is used in hypersonic missiles and stealth bombers. with the world today, we really need to have this type of material on shore. jon: i think it's a really interesting story and we will have you back on when you build this plant. matt: thank you so much for coming on the program. talking to us about his new cobalt processing plant in yuma, arizona. we are thinking about very slight gains. even as we finish a little bit deeper in the green today, we are still looking at the worst week for equities since march. at least you see the yields coming back down from 4.5.

crude is under $90 per barrel. this is bloomberg. ♪

romaine: markets struggling to rebate -- regain their composure. katie: counting down to the closing bell in the u.s., we're looking at green but just barely. the s&p 500 up less than .1%. big tech faring better. the nasdaq 100 up by .4%. helped by what we are seeing in the bond space. 10-year gilts got as high as -- yields got