>> welcome to bloomberg markets. >> let's get a quick check of the markets. we have a lot of superlatives. the s&p 500 down across the board today. it is down 1.2%. the 10 year yield is up one basis point at 4.54%. that's the highest going back 16

years. we are seeing the dollar at fresh highs of the year. consumer confidence hit a four-year low in data out of the states today. crude may be factoring into that. wti crude north of $90 per barrel once again. jon: i'm glad you mentioned the energy trade because when you look at sectors, it's hard to find gainers. we see names hanging onto marginal advances like occidental petroleum. he also had stories of companies with reasonably strong results like a uniform maker but the stock is down 4%, it feels like the growth outlook seems to be the concern among some analysts. moving along to tech or the future of vehicles, we did see shares of biscuit moving higher today on encouraging delivery

news but we have seen amazon moving lower. the market still digesting the latest headlines on the ftc antitrust suit targeting the company specifically its marketplace. and with the president joining uaw workers on the picket line, we are watching what's happening with the automobile stocks. we will look at ford, gm, and stellantis. they are all down for the day. kailey: moments ago, president biden was in michigan alongside uaw workers including the president of the union. here are some of what president biden had to say. pres. biden: you guys saved the automobile industry in 2008 and before. you made a lot of sacrifices, you gave up a lot. the companies were in trouble. now, they're doing incredibly well and guess what, you should be doing incredible he will

also. kailey: our guest joins me now in our d.c. studio. he covers the white house for us. this is a biden administration and a president who has specifically said he is the most pro union president of all time and now he becomes the first president of all of u.s. history to join workers at the picket line. how significant is this moment? guest: it's important for the uaw and for joe biden. he has campaigned on being the most pro union president. there's an election coming up next year and those union workers will be crucial for his reelection chances in a key state like michigan. the uaw has yet to endorse him so you heard the leader say the president is standing up for working people so this could be big in the relations between the president and that union before his reelection push. jon: beyond that, what can the president do?

in terms of legal intervention, this is a different situation than what we saw in the rail industry. guest: not to get too wonky, but freight rails are governed by separate law been auto strike. the president does not have a lot of levers to pull. one thing he can do is use his pulpit he did today, go out to the picket line, say to the auto companies you should pay these workers what they are asking to try to bring this to conclusion. the president getting up there today getting behind the union demands, but this is not a president who wants a prolonged strike. he understands the economic damage it can inflict on the broader u.s. economy and also the key midwest region. even though he is standing with the union today, this is a white house that wants to see the situation resolved.

>> this is also a white house that wants to transition to a clean energy future. the president has pushed heavily the electric vehicle agenda. you take what former president trump said on truth social, he said the only thing joe biden could say today is to announce an immediate termination of his ridiculous ev mandate. guest: it's a real conflict for joe biden and it's more complicated than donald trump makes it out to be. the union isn't necessarily against the ev transition. what they want is a transition with union jobs and high pay. the industry is facing a lot of competition from chinese companies, companies like tesla don't have a unionized workforce. the president has a conundrum. the harder he pushes on union demands, does that make the automakers less competitive in that ev space? this has been a juggling act for the president and that's why him

going out there today was significant because he needs those companies to get what he wants in terms of clean energy. jon: thank you very much. watching the situation unfolding on the picket line. we want to get more perspective from the echo did -- acting executive director at collaborative. i guess we will start with the conundrum for the president. what has been your observation of his actions today? guest: i do think it's important to understand that this administration's approach on clean energy, the climate, and worker rights is a change in how we think about it talk about the economy. the example of moving to a clean energy future is an important one. president biden understands and uaw workers understand that we will not build a resilient clean energy economy that delivers for

everyone in this country on the backs of labor exportation here and in other countries. building toward that future of clean resilient affordable energy will require workers to be paid their fair share. that's what the uaw is standing up for and that's why the president is all in on supporting the workers. kailey: can he do anything to support them other than optically joining them on the picket line? what part does the and restoration serve in this? guest: in some ways, showing up as the most important thing because what we are all saying is that we support powering workers to bargain for themselves. oftentimes, it gets portrayed as consumers versus autoworkers and what will we do about a prolonged strike but this strike

is the way uaw show concretely that people built these cars that we all by and drive. without people without workers without bringing workers along, we can't have an economy that delivers. i also want to point out that there are things moving in congress that have a direct bearing on the ability of workers to organize. the national labor relations board is funded by congress and currently we are approaching a shutdown potentially because you have radicals in the house trying to pass appropriations bills that would dramatically cut the budget for the national labor relations board just as workers across the country are banding together and organizing to show they have power and they deserve to be paid some of the record profits for corporations have earned. there are a lot of policy levers especially over the long term.

it's important not to see this strike in isolation. kailey: to that point about not seeing it in isolation, this is just one in a series of economic risks. you have striking workers, the government shutdown, student loan payments resuming for the first time in years. higher oil prices as well. that adds up to what could be an -- difficult economic cocktail. how long will they be able to tolerate that pain? >> there are some things in that cocktail that we can't control like oil prices although it's important to again think about the long run. how we will have clean affordable energy so we are constantly at the whims of the oil market when thinking about whether people can put gas in their car and food in their tables.

we are facing a dangerous situation with one small faction of one house of congress willing to hold the economy and workers and families hostage in order to extract unpopular and counterproductive cuts to important programs. those are all big risks but they administration understands that the biggest risk is failing to invest in people, failing to invest in workers, failing to allow workers to organize and band together to demand their fair share. what that means for the longer-term or even medium-term, will workers see their wages rise at the end of this inflation? or will we go back to profits?

i don't think that's the record to head. jon: the president today acknowledged auto companies doing well, telling the strikers you should be doing just as well. how much of uaw message does president want to be a part of when other consideration is on corporate strategy being impacted by the uaw calling out for the big stock buybacks we have seen in the case of automakers. do you think the president's ok being part of that message as well? guest: i think the president has been pretty clear brought his time as a candidate and president with his budgets. he thinks that corporations should invest in their workers, we should have tax and economic policy that encourages

corporations to invest in people and manufacturing. rather than engaging in massive shareholder payouts. this is a message that fits cleanly with this administration's view of what builds a strong economy. jon: good to hear your perspective. we continue to monitor the comments from the president coming up. coming up, we dig further into the strike situation, we get industry consumer sales perspective. the strike adds to recession risk. earlier today, we heard from chicago fed economic advisor who discussed the state of the economy. guest: by 2024, inflation will get near target while there will

be no recession. it's important to keep in mind in this forecast, they are taking into account data only up to july 2023 so they don't account for more ck in the economy. ♪

jon: this is bloomberg markets. time for our stock of our segment. an eu investigation may have found tesla unfairly benefited from subsidies in china that could mean finds to level the playing field with the eu auto industry. we were covering president biden

strip to the uaw picket line. we are joined by the executive director of industry analysis at edmonds. on the consumer side, a lot of people have been curious about at what point pricing of vehicles would start to change. what can you tell us about how that party of the start -- part of the story is playing out? guest: so far, we are looking at vehicles affected the strikes. i think the first thing we will start to see fall is incentives, advertising programs on these vehicles. but in terms of pricing, we have not seen any moves yet. there is still a pretty good stock built up. i think the question is when it hits or if it does hit, larger vehicle segments like full-size trucks, full-size suvs that are popular as the weather gets colder, what will that affect? that could be more detrimental to the automakers.

>> on the subject of inventories, it's noteworthy to me that the strike is playing out publicly. we are getting public updates on the negotiations. the president just went to join workers at the pickup lines that could draw more media attention to this. is there consumer perception that there may be a shortage, we should go out and buy more? guest: yes, we have seen that. i wouldn't say it's widespread, but we do hear things that consumers are rushing out to buy brands that -- brands that are even affected by the strike. i think there is also that faction. the thing that is holding back consumers are high interest rates. interest rates are over 7% on new cars on average. i think that's giving consumers pause, they want to look into it more and think this isn't affecting all vehicles, there is a trickle-down effect but it's

not necessarily as detrimental as one might think right now. the strike is only a week and half old. jon: in terms of the vehicle pricing for the detroit players, what should we be getting ready for? we had the head of buyers automotive on the program yesterday who suggested if we are looking at sizable changes on the wages front at a time when companies are spending a lot of money on eb transition, that prices could be moving higher for longer and that could make them less competitive versus ford or tesla that is committed to cutting prices recently. guest: i think that is a major concern because we are transitioning to an ev future but also transitioning to autonomous vehicles. that's a big expenditure that these companies are putting money into. we are seeing the transportation finally change significantly for the first time in decades.

cars changed a little bit, but not compared to cell phones or computer technology. we are seeing expensive changes in the next 10-15 years. will these companies be able to continue with changes still be competitive and that is tough because i think what we are seeing right now especially in the short-term, consumers are feeling the pinch from the macro economic environment. they're looking for smaller or an expense of vehicles because they cannot afford large suvs and trucks that have been selling quite well when things were better and interest rates were lower. that's why the detroit automakers, that's where they make the most money and that's what we are seeing consumers struggle to afford right now. kailey: how should we be thinking about the consideration that parts strip eaters -- parts distributors are what was targeted? if you are showing up at the dealer getting her car fixed, could we be looking at a

situation where fixing your car gets more expensive? guest: yes and this was a strategic move by the uaw. not only are they stopping production on certain vehicles, but they are hitting dealerships and consumers because what automakers don't want is dealers calling them 24/7 because dealers aren't shy about doing that. if they aren't making money in-service, they aren't happy because that is a big source of revenue. not having the parts available will be detrimental and they won't be shy about calling to complain and talking to the automakers saying you have to fix this. also consumers, i don't want to buy a new vehicle if they already have one that can get fixed. then you have consumers and dealers brought into the strike when maybe they just targeted production facilities, it's not necessarily as widespread. jon: before we let you go, before we started this segment we highlighted bloomberg

reporting on possible eu findings on subsidies in china. i want to talk about china and reference the fact they have been aggressive in price cuts this year. we are waiting for -- what do you think we will find in terms of the market share breakdown for those who can't afford ev's on who is getting the market share? guest: it needs to expand beyond the early adopter and hit the mass markets. that means lower prices. mass-market shoppers are not spending $100,000 plus on a vehicle. tesla lowering prices and keeping that message alive and in the news about dropping prices, they will get more casual consumers. the segment needs that to grow share.

it's an interesting strategy and reveille hitting at a good time when people think it seems like there are a lot of issues with the other guys, maybe i will get a tesla, it's the name i know. jon: good to see you. we will keep tabs on the auto sector but we also want to talk about e-commerce where amazon shares are under pressure as a major antitrust lawsuit, we will dig into details next. this is bloomberg. ♪

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marketplace accusing them of stifling competition. we saw the shares under pressure on the news. the suit could mean fewer products and higher prices on its platform. later today, the ftc chair is speaking to us with a fireside chat at 3:00 p.m. new york time. this is the fourth suit we have seen this year from the ftc involving amazon. kailey: this is as you say a multitude of cases against amazon that has been her focus for some time. this goes far beyond that. the ftc challenged microsoft related to the activision deal. same goes for meta. it will be interesting to see

what she has to tell us about the idea of courts trying to stymie her efforts. i'm looking forward to this conversation. jon: the tech stocks themselves are under pressure today. this is bloomberg. ♪

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romaine: summer -- consumer confidence installs, home prices hit record prices. katie: kicking you off here in the u.s., the much different picture than this time yesterday. we saw a relief rally yesterday, maybe a rebound but it faded this morning.