>> welcome to bloomberg markets. matt: let's get a quick check on what is going on in markets. a little bit of a reversal in terms of equity indexes. the s&p 500 is in the green, 1/10 of 1%. the 10-year yield is rising and we are looking at 4.5191. it is the highest level that we have seen since 2007 on 10 year treasuries, the dollar index showing real strength.

the bloomberg dollar index at 1262. nymex crude coming down. maybe that has something to do with the turnaround in equities. u.s. equities are weighed heavily upon -- nymex crude is hanging under $90 a barrel. jon: going under the hood to individual movers, i want to start with tech names getting attention and first of all with the end in sight for the hollywood writers strike. netflix shares are higher and amazon has all the weight -- a hollywood connection. we will watch it. as we have been covering all day and on bloomberg technology, that made her investment in -- pushing push into the ai sector by amazon which could feed into amazon web services. we are watching names tied to corporate news and analyst news.

in the case of corporate news, a surprised abrupt co change -- ceo change and nike shares upgraded by jeffries on consumer -- downgraded by jeffries on consumer consumes. matt: one is the uaw strike that we will talk about and focus on this program and the other is a government shutdown that we expect people saying it is almost inevitable happening this weekend. moody's, the ratings agency coming out and saying that would be a credit negative for the u.s. and we have already had a downgrade from fitch. we have seen in the past s&p so this will be one more move from the they grading -- rating and -- agencies on u.s. financing if we have a shutdown. let's get to ed harris right now and find out what this means in terms of a negative.

if we get the shutdown, does that mean moody's downgrades u.s. that? ed: no, we have one more step. what we are looking at is a two step progress -- process. one is where the agency -- the rating agency says this is negative for your negative -- rating. then they would most likely move to the next step which is to put the u.s. on a ratings watch negative. then would come the downgrades of this is not as far as fitch went a week before the shutdown. they place the u.s. on a rating watch negative. this is likely before that. matt: what do we think would be the result of ratings watch negative, if they even went that far? the last time i saw an actual downgrade of the u.s. long-term debt profile, people piled into

treasuries. >> the interesting bit is, we have seen different reactions this time then we have in the past, if you think about the fitch move in, th was right in the middle of the channel upward in yields, both on the real yields side and the nominal yields side -- side, since april we have drive tires since the svb situation has been resolved. 10 year yields have been hired so it has no impact longer-term in terms of the direction of yields and in your case, the direction would have been down. jon: i was talking to long time washington strategist -- he feels we will see the shutdown and it could last for a period of time and i guess the other factor that other people are watching, what does that mean for a central bank like the fed, in part because they are trying

to figure out where the economy goes from there in their monetary policy actions not to mention the fact this will complicate the ability to have retired -- real-time data to make the assessments. ed: the last time he talk about is difficult with real-time data especially in regards to inflation, getting a handle on that and tips market in terms of understanding what kind of inflation data were looking at so that is difficult but' the feds --but the fed's hands are tied in terms of inflation, they don't know what number they will get to -- i think at the margin, this is not going to do anything unless it really weakens the u.s. economy severely. matt: thanks for joining us. bloomberg's ed harrison talking about the latest story on moody's saying a government shutdown would be a negative for the u.s. credit picture.

president biden is going to be joining striking uaw members on the picket lines in michigan tomorrow, which will be a first certainly for a modern president. here with an update on the negotiation is bloomberg's detroit bureau chief, david welsh. what do we know about how negotiations are going? david: we are getting closer to a deal between ford and the uaw. they were talking at the end of last week, they liked a lot of what fort was putting out there in terms of economics and they said they were quite done but a 20% raise, a lot of paid time if workers get laid off and another one reinstating the cost of living allowance -- protection from inflation, getting that back in those are big things -- and those are big things and if

i had to predict, i think we could probably get a deal with ford by the end of the week and the union will use that to tell general motors and stellantis, here is far --par. you have to hit this if you hit a deal -- to get a deal. jon: not that we are having the conversation about the risk of a government shutdown with the ongoing strike, what do we know about the economic impacts so far tied to the strike action we have seen and based on the timing of getting these updated deals done? david: the impact so far is in great and you are talking a total of three assembly plants and a bunt -- bunch of plants that are warehouses that feed dealers with replacement parts. when general motors, they lost $3.6 billion in a total strike for one company but the economic impact only through michigan into a brief recession and terms of the state's gdp.

at only get -- the bigger inconvenience, it hits earnings which pushes pressures on countries -- the companies. that cuts into dealer profit so they pressure the company and it makes because some -- consumers angry because if you cannot get a replace in part, you can guess your car cannot get fixed and that is -- your car cannot get fixed and you are waiting longer. it is not an economic -- economic impact. if gm and stellantis do not get a deal and ford does and gm and stellantis refused to sign out on that same deal, the union could move to a national strike and that is when you see bigger numbers come up. >> a lot to watch. great to get your perspective. bloomberg's david welsh joining us. this is bloomberg. ♪

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we've been the brand leader for over 75 years. when i finally could hear for the first time, i could hear everything. try miracle-ear hearing aids with no commitment during our limited time sounds of autumn event. call 1-800-miracle now. jon: time for our stock of the hour segment and we have been tracking the auto stocks. stellantis weaker and ford and gm higher on the day and we talked about the road ahead and let's get more perspective. george byers kauffman joining us. matt: george kauffman, executive vice president and oh -- owner of byers automotive. we want to get the dealer's perspective on how these rights are affecting your business or how they will affect the business and you are one of the

biggest auto deals -- dealers in the state of ohio. what are you seeing with problems on the ground? george: we are not seeing any major effects and the fear is what to -- what is to come and my biggest concern is with the customers, with the uaw deciding to have strikes in the parts distributions centers, that will have a immediate effect for us as far as taking care of our customers. the domestic brands and a lot of other automakers have struggled since the pandemic to fully recover and i don't think we are fully there. my big fear is that we are in a position to be hurt more than we normally would just because of the pandemic and we have supply chain issues, we still have issues of vehicles being delivered, we have hundreds of vehicles all over the country that are built at a loss.

i am hoping the strikes can be resolved quickly but now, it is reassuring are customers and the consumer and -- that we will be able to supply you with products and will be able to repair your car's. the initial strike -- thought of the strike before it happened, has caused uncertainty but consumers with these brands and can they get them with -- in a timely matter. i think the customers are waiting. matt: the inflation concerns are front and center and during the pandemic, i am sure your inventory thinned out on the lot to operate and you have dealerships for 40, general motors and stellantis as well as a lot of the foreign brands. what is your inventory look like now? george: in typical times, the domestic brands one around a 45-60 day surprise -- supply and right now we are at 90 but that is due to last month's sales

have dipped and i don't know if it is uncertainty in the market because of the strike but there has been a pullback on sales of those vehicles. jon: what is the outlook? if the strike goes on, how do you inspect -- expect inventory to deplete and how do you expect sales for the fourth quarter? george: the fact is, it is going to go down and you will have less vehicles to sell. the consumer is going to struggle as whether or not to buy a domestic brand. it will be tough. i am hoping they are able to come to some sort of resolution quickly but i am prepared that if it does prolong, of what we will be able to do. jon: we will have to be watching closely. george byers kauffman of byers automotive joining us. nikki haley speaking with alix

steel at the american energy and security summit. let's listen in. >> we have to start focusing on cutting the spending, and the way you do that is, i put out my economic plan, we will focus on the middle class and reduce the taxes for the middle class and collapse the bracket so they have more cash in their pocket and we will cut the federal gas and diesel tax. we know right now, the small portion that comes to the federal government also pays for hiking trails and bike trails and everything else. we need to make sure we look at an infrastructure plan that is 20, 30, 40 years out, not from the old, archaic system we have always used and let's go to the row-based budgeting -- let's go to zero based budgeting. build up, instead of what you talking -- you are talking about, you just assume everything we paid last year, we

will add more to it. alix: you need to start from zero. nikki haley: let's prioritize what we need to have an there are a lot of problems we have and when we do that and let's look at, you are seeing a government shutdown conversation happening right now. it is a fault -- false narrative to save the freedom caucus is holding things hostage because they want to cut or do you allow the government to go forward? first of all, you cut and you allow the government to go forward. you can have both, not either/or. think about this, congress has proposed a budget on time, four times in four years. four times in 40 years. we have to go back to no budget, no pay, if congress cannot produce a budget, congress does not get paid. we should not be in this scenario but because they wait and they don't work and they don't produce results, we end up

in this is -- situation. alix: it has been shown that remission don't hurt both parties, heavy talk to leadership at all -- have you talked to leadership at all? nikki haley: i have talked to all of congress saying it is irresponsible and in as usual that you have let government shutdown and it is errors on school and inexcusable to not cut all the spending, they are using our budget and keeping it in a pandemic spending. we are no longer in a pandemic. why are they spending at those levels? alix: what is their response when you say get it together? nikki haley: they need to get into a room and figure it out. we will find out. alix: do you worried this will harm the party? nikki haley: this will harm taxpayers. taxpayers cannot afford groceries and gas and they cannot afford buying a home or buying a car and now you are going to say, we cannot figure it out, we will shut down government?

it is not ok and you do not get to do that. instead, you cut what you spend. why is it everybody in this room balances a budget? i've balanced a budget as government -- governor of south carolina. why is congress only group that refuses to balance a budget. it is the reason why we have to have term limits any congress but it is the reason why they need to start doing their job. the government has to starship -- start working for taxpayers. alix: governor desantis talk about pledging to get gasoline prices to two dollars. you talked about scrapping that gas and diesel taxes, do you think we can get to two dollars a gallon. nikki haley: i didn't propose that. alix: he did but would you match that? nikki haley: i don't support what he proposes. alix: that is something you would not do. nikki haley: no, what we do is focus on the taxpayers, how do we get more cash in the

taxpayer's pocket, let's eliminate the federal gas and diesel tax and come up with an infrastructure plan that commends what we need in that's what we need in the next decades going forward. i will focus on strengthening the middle class. you're watching an america where the poor are getting poorer and the rich are getting richer and we are losing that middle class. we will focus on the middle class. alix: two dollars gasoline mean to $40 oil and everyone here is happy you support that. you talked about china as -- the crux of china becoming the economic policy. how do you manage that? if we will eventually transition into cleaner fuel, how do we collect our muscle in china and india to get them to also reduce it? nikki haley: by winning. i will tell you the first thing we need to do in terms of where china and russia is we -- let's take india, they have millions

of people right now without electricity. they need clean, cheap electricity that they can start doing with their country. they have doubled the number of coal producing plants they have which is a problem and that is why we need to do more in america and we need to export as much liquefied natural gas as we can and india will be a friend of ours. india is worried about china and they gave themselves $1 billion stimulus to become less dependent on china and let's partner with them so not only are we exporting liquefied natural gas to europeans, let's do it to india. it is a win-win. let's share it and that is the goal and that is how we handle india come up with china, you beat them and what i saw with the u.s. -- united nations, there are two things are enemies never wanted us to have, they never wanted us to have a strong military and to be energy dependent. alix: what energy dominance,

what of the energy mix? nikki haley: i think we should be all of the above energy while also focusing on innovation that allows us to be cleaner and safer in the process will stop when you pick the kinds of energy, that is when you are picking winners and losers. i want us to be energy dominant and i don't want us to ever to lean on an enemy or have to be dependent on a foreign country for our energy needs. now when we are this blessed. alix: you are one of the only ones out there who talked about actual climate change. you are a proponent of wind and solar. what is a good energy mix for you? nikki haley: i do think that climate change is real and we have to acknowledge that but i don't think we go so extreme that we have to do all these things by x year. that is where the partnership in this room comes, they know innovation better than anywhere else.

we know what we can do to find ways of capturing carbon, making sure we do the fusion so we can start getting a net energy plus in the process. yes, i believe in wind and solar and all of those things because i think all of those are part of how we become healthier as an environment and healthier in teaching countries around the world what else we are doing. alix: at the end of the first term, how much of the energy mix is renewables. nikki haley: i don't think that is for me to decide. that is for the industry to decide. we have to say what can we do that is safe and clean and affordable that helps taxpayers. the problem is you need to have a president that understands you have to have an energy community that is going to say, this is what we can do or we can propose this or less -- let's pull this innovation in. right now, you are treating them like second-class. citizens. they are experts.

we need to use the experts and if i say this is how we produce emissions, how do we get there? this is the group that tells us how we get there, not government bureaucrats or regulators. they will just squeeze you to the point that you don't have energy to start with. alix: you got a lot of attention there when you said that. when you take a look at unleashing be energy dominance -- the energy dominance libra is a problem. even if you wanted to innovate and pump a lot of money into stuff, you can't. how do you get there? how do you get skilled, quality labor to this industry. nikki haley: in south carolina, we went from a state that was making textiles that went overseas and we had to get used too, when i recruited in, we were building planes and cars and tires and we had to retrain our workforce in -- and the way

we did that is we worked through the technical schools to focus on the new jobs that we had and how we can get them back on track and we need to make sure that we are filling the jobs we need. you do that by reskilling. you look at the fact that while we are looking to close the border and we need to close it because there is more lawlessness we have seen in a long time, you look at legal immigration and when you look at legal immigration, we have to stop the way we do quotas based on numbers. we will take x number this year and x number next year and say what do our industries need that they cannot fill? big -- think construction and farming and tourism and energy production and bring it eight -- based on merit. that is when you book of the economy, instead of just focusing of what -- on what quoted you deal with. alix: i wanted to ask you about your path. we have a second debate coming

this week. what is your path? if i what doesn't go your way, what is the nikki haley path now and in 2028? nikki haley: you are assuming it will not go my way. alix: i am not, you have to have lots of plans. nikki haley: i have one plan. [laughter] we have done 80 five events in iowa, new hampshire and we continue to do big events in south carolina and the momentum is real, we are pushing hard and raising money and we are putting ourselves out there in the debate. the support is strong and are goal is to have a strong showing in iowa and new hampshire -- jon: that was u.s. presidential candidate nikki haley speaking without seal -- alix steel in new york city. for jon erlichman, i am matt miller. this is bloomberg. ♪

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>> the pain trade was the squeeze on stock and bolland investors alike. live from the headquarters in new york, i romaine bostick. kaylee: and i'm kaylee greifeld. stocks are higher on both the s&p 500 and the nasdaq 100. the s&p 500 of west office worst week since march last week, rebounding a little bit today, about .3%, and that is even as