and fb lauren: it is 5:00 a.m. here are your top stories at this hour. talking trade, american and chinese officials set to meet this week to try to put an end to the trade dispute. will a major sticking point sink p any chance of the deal. cheryl: the chinese government is taking aim at american pop culture, at south park, the animated show, and the nba, china's latest retaliation breaking overnight. lauren: mayhem on capitol hill as president trump announces his plans to pull troops from syria, all while the democrats keep up their impeachment push. cheryl: a commuting nightmare you will not believe. how much time americans are spending just to get to work. it's tuesday, it's october 8th and "fbn: a.m." starts right now.

♪ ♪ sweet caroline. ♪ good times never seemed to so good. ♪ i've been inclined. ♪ to believe they never would. ♪ but now i -- cheryl: welcome to "fbn: a.m.." good morning, everybody. i'm cheryl casone. lauren: good morning, i'm lauren simonetti. cheryl: once again, we do have red arrows. investors really focused on china and the trade talks. it's been months of negotiations. dow is down 21, s&p down 2 and three quarters, nasdaq down 4. lauren: markets are china are back open after a week long celebrating communist rule. the nikkei is up 1%.

cheryl: in europe this is another trade sensitive story, there is brand-new news on brexit we're going of to get to in this hour. the ftse barely higher, the cac and dax are lower. well, trade, once again front and center this morning. high level talks are set to kick off later this week as deputies are trying to work on a deal between china and the united states. but there is a major sticking point that could hold up this entire negotiation process. lauren: for more on this, let's go to edward lawrence, he has details from washington. >> reporter: good morning. trade talks with the chinese deputy level delegation begins later on this morning at this building behind me. the trade team arrived yesterday in two busloads. they went into the building to talk with the u.s. side. the chinese commerce industry says they stand ready to strike a deal on things both sides agree upon. one of the wants by the u.s. is

not on the table and that is changes to chinese law. the commerce ministry telling us that china will not change their laws to protect intellectual property but saying they will do that through administrative regulations to hand he del any sort of intellectual property protection. the president said last week he prefers a complete deal. righyesterday, they indicate thy could accept a partial deal. it depends. listen. >> let's see what they bring. i will add to this, we are open to a number of ideas, some may be short-term, some may be long-term. it's a essential that the structural issues we talked about for two years, since i've been around, the ip theft, the forced transfers of technology, the cyberspace hacking, the espionage, the trade tariffs and the nontariff barriers, that stuff's got to get solved. >> they want to keep their people working. i understand that very well. but i think that we just have to

see what happens. i would much prefer a big deal and i think that's what we're shooting for. can something happen? i guess, who knows. >> reporter: this marks the second deputy level talks since the last time the two heads of the trade teams met. the last time the deputies met was four weeks ago, september 19th. thursday we'll see exactly if there is progress towards a trade deal or not. on thursday is when the primary level meetings will happen with the u.s. trade team and the chinese trade delegation. it could come at a price if they do take a partial deal on this, depends on if china would want to have tariffs rolled back, possibly removed from the currency manipulator list. we'll have to see what happens. thursday is the big day to find out. back to you. cheryl: new overnight, china state television is suspending the broadcast arrangements for the nba preseason games, all of this while nba commissioner adam silver is playing defense over

the how ton rockets' general manager's tweet that backed the protests in hong kong which started the controversy. silver said his organization supports freedom of expression. well, the nba is resisting beijing's pressure to punish rockets general manager. the league was criticized over an earlier statement that said it regretted maury's remarks. we'll be listening for a press conference for th from the nba commissioner. lauren: the creators in south park have issued a tongue in cheek apology to china after the show was banned. >> look, for this movie to really make money we need to make sure it clears the chinese censors, we want those viewers. s there's things to talk about, what kind of things were you into when you were younger. >> i like wi winnie the pooh.

>> that's illegal, because some chinese student said he looked like the chinese president. >> that's ridiculous. lauren: the official south park twitter says we welcome the chinese censors into our homes and hearts. we like freedom more than democracy. xi doesn't look like winnie the pooh at all. long live the great communist party of china. may your sorgum harvest be plentiful. we good now, china? cheryl: let's now move to what's going on with japan and the united states. there's progress on the trade front with the two countries. the u.s. signed limited agreements with japan on farm goods and digital trade. this will restore benefits that farmers lost when the u.s. withdrew from the transes pacific partnership three days

after president trump's election. it also lowers trade barriers to digital media and software. >> these two deals represent a tremendous victory for both of our nationses. nations. they will create countless jobs, reduce the trade deficit substantially, promote fairness and reciprocity and unlock last opportunities for growth. cheryl: the new agreements do not settle differences between the u.s. and japan on autos, which could face import taxes from the trump administration. lauren: president trump's decision to withdraw from syria met with swift backlash as leaders on both sides of the aisle accuse him of abandoning the syrian kurds. the president said he's following through on a campaign promise. cheryl: we have todd piro joining us with reaction. >> reporter: good morning. the president pushing back against criticism of the move ahead of a planned invasion by turkey as both democrats and some republicans express concern that the withdrawal could lead

to the genocide of our kurdish allies and a rise of isis in the region. >> syria was supposed to be a short-term hit, just a very shower and thunderstor--very sh. that was many years ago. we want to bring our troops back home and i got elected on that. >> reporter: some republicans including senators rand paul and mike lee support the decision, others, like representative adam kikinsinger spoke out against i. >> we have certainly not won the war against isis. we've made gains. this is an endless war that the terrorists decided to do against us. >> reporter: normally divided congressional leadership came together to denounce the president's decision, albeit in drastically different ways p. mitch mcconnell said the move would only benefit russia, iran and the assad regime and urged

the president to keep the coalition together to defeat isis. nancy pelosi accused the president of attempting to appease an authoritarian strongman. a senior administration official tells fox news the decision was discussed with top brass at the state department and the pentagon. back to you. cheryl: todd, thank you. well, more trouble for dow component boeing over the grounded 737 max. southwest airlines pilots' union is suing southwest for lost compensation, claiming its nearly 10,000 pilots are losing millions of dollars a month. the union says they're suing boeing, that boeing moved to quickly to market the 737 max before making sure it's safe to fly. the plane has been grounded since march following two deadly crashes. this adds to boeing's legal problems. lauren: a deal to create one of

the world's biggest financial exchanges is officially dead. cheryl: big breaking news on this one. a lot of doubts on this deal initially. tracee: the hong kong stock exchange pulled $36 billion for the london stock exchange. officials at the hong kong exchange saying they're london counterparts wouldn't even consider the offer. the acquisition would have created a $70 billion company but the london exchange citing concerns about the hong kong exchange's tie toss the chinese government. the rejection frees up the london exchange to buy refinitiv. samsung electronics said profits in the last quarter will fall by more than half from a year earlier, putting the blame on weak demand for computer chips. the quarter could have been worse but strong sales of the galaxy 10 helped the company beat analyst estimates. wendy's plan to serve breakfast

next year is going to cost a lot of money. an analyst estimates the chain will have to spend $250 million to launch the national breakfast program. that's significantly more than the $20 million wendy's said it planned to invest when it announced the plan last month. and all rise, here comes judge barbie. mattel introducing the latest career move for the iconic doll. this barbie is available online for $13 many she comes with a black robe, a gavel and lacey collar, likely inspired by justice rout ruth bader ginsbur. cheryl: thank you very much. lauren: we had selling yesterday and dow under a little bit of pressure this morning. down about 18 points. the s&p and nasdaq each down 2 in the premarket. still ahead, rough road for facebook, the company settling one lawsuit, now accused of putting people's data in danger.

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lauren: new york's attorney general meeting with officials at the department of justice and federal trade commission to talk about the anti-trust probe involving facebook. ag latisha james is leading the campaign and is soliciting support from other states. she says roughly 40 state attorneys general plan to take part. cheryl: you know those videos on facebook that pop up on your feed. sometimes you watch them, sometimes you don't. facebook reached a settlement over how it measures video views and how the data goes to advertisers. advertisers sued the company, they said facebook incorrectly calculated how long people were watching videos on the platform, in particular those advertisements. the company has paid $40 million to settle this latest lawsuit against it. lauren: deputy level trade talks between the u.s. and china resume today, setting the stage for the high level talks that liu he will lead on thursday and

friday. expectations for a major breakthrough are low as china refuses to budge on major sticking points, including intellectual property theft. mitch rochell joins me now. good morning. >> good morning. lauren: it's interesting, because the administration is saying why should we accept a narrow deal. we're not going to do that. and they're adding fuel to the fire by blacklisting chinese firms for human rights violations and then you see what's going on with the nba, the lawmakers responding to the chinese criticism. and that whole angle. so i feel like this china story has really grown and how do we get out of it. >> not to mention cartman from south park weighing in on china as well. lauren: yeah. >> here's what's going to likely happen. i think doing something overly ambitious is not likely going to happen before the election. so i think this signals where they're trying to tier everything. tier 1 would be agriculture and oil, on the expectation that oil was up yesterday. number two is the sticky thing

which is ip theft and forced transfer of intellectual property. the last thing is tariff. the thing they're trying to signal is we'll relieve the tariffs when we have other things going. there are cross current that could interfere with it all but if they stick with something that's doable like agriculture and oil, maybe we can make progress down the rise. lauren: we hope. tariffs are expected to rise, some of them next week to 30%. we have companies reporting their earnings for the last quarter, we get levi strauss and dominoes today, the banks next week. we're expecting earnings to decline, all-in. >> earnings' big picture may be an under-promise, over-thriver se r natur -- over-deliver scen. the banks are the ones to look at. you've got the consumer and business side of the bank. on the consumer side, if like in the last several quarters the

consumer side of the bank tends to be strong, that's an indication that the economy's going to be strong because people are bore he rowing. the business side, we're going to see if two rate cuts meant anything. lauren: and the chance of a rate cut in october is now 72%. >> exactly. when you say a rate cut, is it 25 basis points. lauren: that was at 25 basis points. >> it will be interesting to see if businesses are starting to r borrow more now that rates are lower. that was the goal to get businesses to start borrowing more. consumers are fine. we're trying to motivate the businesses. lauren: how long do you think the consumer is going to be fine. the national retail federation very optimistic for retail shopping. we continue to see warnings a that maybe the consumer is pulling back. they're saving more. when you're saving it, putting it in the bank or under your mattress, you're not putting it into the economy. >> i think what happens is the more we use the "r" word in the media, the consumer starts seeing that and saying wait a second, oh, my god, a he

recession's coming, we're going to start tightening up. the christmas season will be very important. we are op optimistic that they'l spend more this year than last year across most demographics. if it doesn't happen, that could be a bad sign. right now, there's enough positive momentum, net tail winds that this holiday season will be strong. why are we talking about the holidays in october. i haven't even bought my candy corn yet. lauren: my mother was texting me yesterday, asking what he she should get everybody for christmas. i said mom, i'm not ready for this. cheryl: i already know what i want for christmas. now i have to figure out everybody else's gift. let's take a look at futures this morning. what i'd like to see is green arrows. we have a slight selloff going on in the markets, dow down 28, s&p down 3 and-a-half, nasdaq down 4 and-a-half. it's china and trade and kind of where we're at right now. also still ahead, we're going to take a look at the brand-new

corvette stingray but could union troubles, you know that walkout, keep that car out of your driveway? and as the vaping crisis gets worse across the country, two more retail chains say they're quitting. -cigarettes. keep it -- quitting e-cigarettes. keep it here, "fbn: a.m." ♪ you better get, get, get, get away. ♪ from everything you every knew. ♪

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save up to $400 a year on your wireless bill. plus get $250 back when you buy an eligible phone. call, click, or visit a store today. cheryl: a new study has found that half of millennials have left the job over mental health reasons. that's a lot higher than the 20% overall that left a job for the same reason, this is according to a new study from the harvard business review. experts there say there are

several issues that are hitting millennials in particular, a rise in depression, higher living costs and burnout. lauren: it's a very mindful generation.