jon: i'm jon erlichman and welcome to bloomberg markets. matt: i am matt miller. let's get a check on the market. you will see a lot of down arrows. the s&p 500 is down, right at zero. 40 to 53. the 10-year yield is down about

six basis points to 4.9222. we do see the bloomberg dollar index down about zero point 1271 or 1272. crude is down, to $89.13. a down day to end the week. jon: staying on that theme, this general oil story has taken a bite out of a number of sector stocks, including the airlines, which are having their tough instructions 2021. we have seen some carriers talk about cautious outlooks in part because of jet fuel prices and names like american. the profit outlook from hewlett-packard enterprise is not inspiring investors. that name is down 5.5 percent at this hour. let's continue to track what is happening in the auto sector.

we have headlines around general motors. it has seen the most substantial uaw offer today. where you could potentially see the majority of workers getting more than $40 per hour. we have to continue to see how things play out. a mixed performance right now. stellantis is down. gm is up zero point -- 1.6%. matt: uaw is negotiating into each company has its own story. david welch is across all of them. let's kick it off with what we know s far as the best and most recent offer. is it general motors? david: they have a 23 percent pain increase which matches ford. this is not different from gm but get them to where the union is right now is that enough to get a deal done? we will see.

with the four :00 p.m. address scheduled by uaw president shawn fain, the companies are trying to do whatever they can to keep them from expanding the strike. if getting higher in paid gets the part of the way there, that is what they will do. there are still issues. pensions are one. i don't think the union will get a defined benefit pension but they are negotiating for a bigger package and payouts for the plans of people can retire comfortably. the other one handing out there is the future of workers at battery plants that do not exist yet. that issue because they love stress on both sides. i do not think we will see a settlement today but we might see an of done where they do not expand it. but shawn fain is unpredictable. we will find out in a few hours. jon: that is why would ask you about. you are writing a little about the unpredictable nature of the head of the uaw and the strike

actions with -- we have seen. if there are big changes on the table, can we expect there may be a change in any specific action taken or are we still going to be left about what happens on the front? david: we will have to wait. one thing shawn fain has done as we saw him at a ford plant. he calls it as a surprise move in the middle of the week. he can do anything. even if the companies are close to a deal in the union wants to apply more pressure to get one last demand in there or get something over the line. they can walk out on another plant just to ramp up the pressure. just because they are getting closer and have made progress in our coming together, does not mean it will not be more intuitive if that is what they need to get over the line.

matt: what is the story with stellantis? i saw a couple headlines that they would cancel their plans for the l.a. auto show. obviously no one else will go to the l.a. auto show but sema is like dodges deal and where jeep shows is a big sync debt products. i feel like that show is made for stellantis. what is the story? david: i am not sure but i will hazard one guest. all their distribution plants send out parts which include performance parts. they are on strike. they are not sending parts out. do you want to create a bunch of hype at so when that is going on? the companies are all counting paperclips and pennies because it is not a companywide strike where they are burning billions, but they are still taking a hit on profits. it will be worse in the fourth quarter than it was in the third when we only had two weeks worth

of strikes. for both reasons, i could see them canceling some shows. jon: just looking at what has been happening -- we highlighted gm shares this hour. in terms of the market views on automaker stocks recently, does this create a certain pressure at this point the longer it goes on? david: it does not help that stocks are clearly longer this goes on. there are two pressure points for the companies. the market is not crazy about the fact this will be a pretty rich agreement for workers. at least a 23% pay raise, plus cost of living, plus more retiree expenses, and job security guarantees. which means the companies cannot just move everything to mexico because they will be guaranteeing the future security of plants in the u.s. this will be a costly agreement

and investors will not like it either way. they will like it more as the stock -- the strike is soon. but going forward, it raises everyone's cost. masco david welch in detroit where he is bureau chief, watching over the big three and uaw negotiations. we will hear from shawn fain, the uaw president later today, to see how he feels. let's get to crypto. bitcoins has $30,000 earlier today. it is the second time it hit that level this week. investigators are awaiting a ruling on grayscale's and etf application, plus the sec asked the federal judge to dismiss its case against ripple executives. let's discuss with senior litigation analyst elliott stein. thank you for joining us. the grayscale conversion is something that a lot of people

in both crypto and the etf world are fascinated by. what do we need to know about how seen this can happen? elliott co. -- elliott: you say there is a rolling, it is not really a going but a procedural formality. they called a three-judge panel that ruled against the sec at the end of august and vacated the sec's rejection of grayscale's application to convert chatgpt to bitcoin etf. they have the opportunity until last week to seek further review of that but the sec did not take the opportunity. what happens today is the court issues a mandate. all this does is take the jurisdiction of the court off the table. the cases out of this jurisdiction and the issue goes back to the sec. the sec does have the opportunity to ask the supreme court for review.

the end of november is the deadline. i do not see them doing that so it is back in the sec's court, so to speak. it is a discussion between the sec and grayscale. jon: i noticed some research you have been doing. you talked about the keyword of "clarity" and the market is closely watching this. are there degrees of clarity? he a few different things -- you laid out a few different things. elliotts: the big issue for clarity in crypto right now is what kind of digital assets are securities and which are commodity. that is not with the grayscale case is about. that is the ripple case, the coinbase case, and the issue is percolating in a lot of different cases. matt: they lost the ripple case. elliott: neither side lost

really because they could collect up to -- dollars. that is the case for how much ripple has to disclose. masco to me, that is more of a procedural role. whatever they did in the institutional sales procedure was wrong. but they still are not considered. ripple coins are not considered security by this judge as they were by the sec. to me, that is a win for reporter:. elliott: it is a win for ripple because the court -- is a win for the industry because the court rejected the sec's views. you have to differentiate between the underline of the asset and in which the asset is sold. xrp, the digital assets that

ripple issue, it self is not a security. but when it was sold to institutional people directly, you apply the tests and four factors, then it met the elements of security. but for grammatic sales, they met those elements. you have to look at those assets and it does not mean --. matt: but the sec will not push this any further? elliott: no. what this meant for individuals is they can now push of the timeline for appealing these things. i would expect an appeal on the grammatic sales and an appeal by ripple on the institutional sales. but first, they have to find out how much ripple will pay the sec. masco --matt: you should join us

on the crypto show in kailey leinz. elliott stein talking to us about crypto cases. coming up, gm says it is nearing a deal with the uaw. tesla has its worst week of the year on wall street. this is bloomberg. ♪

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jon: this is bloomberg markets. i am jon erlichman with matt miller. time for our stock of the hour segment. you were talking about auto names like gm as we await more details on what uaw will think. it is such a busy week for auto related stocks.

we have seen tesla shareholders witnessing their worst week of the year. we have concerns about the margins and now elon musk with a somewhat conservative outlook we shared. and then you have china continuing curve graphite exports which is a key component with electric vehicle batteries to the u.s. china tensions are front and center. so that is opening the front door to the ev market. that is what is happening in detroit. matt: the most interesting thing so far this week has been the tesla analyst call in which elon musk said he is still dealing with ptsd from the great financial isis. he is worried about rates and wars right as dampening demand. plus, they are back in production held with the cyber truck that is already years late and thousands of people are still waiting but they do not expect to ramp up real

production until into next year. to bring in jess caldwell, executive director there. if this proves anything, it is that tesla is a carmaker and not a tech company. what do you see as the problems ems faces in the kind of growth we are expecting for the company? jessica: definitely a different, downplayed, and some elon musk this week. not generally his jovial stuff -- his jovial self. going back to basic issues everyone in the car industry is facing. he kept harping on interest rate. that is a big one because cars are one of the biggest purchases people will make. interest rates being high will prevent people from buying a new vehicle. the average amount someone would pay on a line -- a low last month was only $9,000. you can imagine as he is trying to roll out his higher-priced

vehicles and wanting people to pay extra for electric vehicles, this will be a big roadblock. matt: elon musk and tesla had rates -- margins that were the envy of the industry. the cool thing about this is they are able to eat into them and lowered their margins, lowering the price consumers pay and take away market share from others or stop them from coming into the market. do they still have this as a lever they can pull? jessica: they definitely do. i say the challenge for them moving forward, and i think elon musk alluded to this in the call, is they pass early adoptions days. they are moving to the top market. the people are not tesla fan boys so trying to sell them on an he and all this entails -- on an ev and all this entails, plus

higher interest rates. right now, the most -- the karst selling the most are compact cars. they are in fashion again because people need a low monthly payment. this is what elon musk kept stressing. they buy by a monthly payment. if he keeps his vehicles in that range, that will be a problem. he has done a good job this year with price cuts but eventually, where you go from here? jon: let me ask this question from the context of the entire industry. we watched traditional players and the players and everyone wanted to be a part of streaming but economics did not look great. then we saw some retooling. the fact we are waiting to see what happens with traditional carmakers in detroit and labor conversations, but then they have to get back to the transition they too are focused

on, getting people into electric vehicles -- if they are not focused on this, what do they do? do they go back on their traditional business or commit to this with consumer demand going forward? jessica: the long-term goal as we know right now is we will eventually have electric vehicles. however, how long it takes to get there is a question. i think this may be some stuff we are seeing right now dialing back on some of the intense and some of the, let me just get my products out there as soon as possible. that sentiment seems to be summering down a bit. the transition will not be easy. sometime it looks promising. this is moving faster than anyone thought. this year, it feels like a sour note. i think this plays a role in any new technology. it is tough to get on board

moving forward. i think automakers, as much as they tend to be excited about the new technology, in the back of their minds, they know this. they cannot make as much money with the combustion engines right now and they are making as much profit as they can which is probably a good short-term goal. jon: a final quick question. if there is a focus on the bottom line, our friend matt miller has made his way too many an auto show over year which is an exciting thing to promote new products. as every automaker going to be committed to getting out in a big way if the market is cooling? jessica: auto shows, as fun as they are -- i love them myself. i think things have been a bit cooler over the past few years, obviously with industry crossed last year due to the semiconductors.

even to have an auto show has been an issue. it is a great way to get consumers to look at your view was especially as we transition to ev's and consumers know less about you. this is cool but automakers have to be concerned about where they are spending their money, especially marketing money. this could be affected moving forward. but it is a good place to get in front of consumers. a lot of folks do not buy what they don't know. jon: i appreciate it. we will see you and matt at some upcoming auto show in the world. jessica caldwell from edmunds joining us. when we come back, we will stick with the energy sector and the increase in cost to generate offshore power. this is bloomberg. ♪

matt miller --matt: this is bloomberg markets. i am matt miller with jon erlichman. cost to produce offshore wind energy is making the 2030 old look further than ever. bloomberg new energy finance is pared back their outlook by 29 percent as building costs for wind climbs to 48%. bloomberg's renewable energy lead joins us on set. i guess inflation has come back to bite even the biden administration's plans to grow wind energy. >> when joe biden came into office, he made it clear that climate would his big goal. he set out a really ambitious target of having three -- 30 gigabytes of offshore wind capacity but it is clear he will not get there. the latest forecast looks like

it will be around 16 gigabytes, just about half. jon: big costs and big right down some players. will: the cost have gone up. still is more expensive. interest rates are higher. it costs more to finance these very expensive projects. we have seen companies take three expensive write-downs as it has become clear they will not reach their targets. mats: has the white house push their targets back? will: no. i am not sure i am as optimistic as they are. matt: i don't understand what could happen between now and then. there is still a lot of years between now and 2030. will: yes but these projects are big, the ones between --. it takes a lot of time to get

these projects going. matt: you cannot just get it done in a few months. it takes years of financing. thank you for coming on the program. bloomberg's will wade talking to us about the rising costs of power. helping to stymie the goal. this is bloomberg. ♪

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♪ >> the s&p breaching the 200 day moving average for the first time since march. live from studio to ed bloomberg headquarters in new york i'm romaine bostick. katie: i'm katie greifeld. it's not too pretty as we get to the end of this friday with the s&p 500 off about .6% off session lows a little bit of good news.