jacqu ♪ >> announcer: this is "nightly businene report" with b sl griffeth a herera. ♪ deal day. a pair of agreements. one raises hop that the uk can leave the , andhe other, the uaw reaches a deal with gm. but the strike isn over yet. now what? the recen that youing of tensions over trade and brexit ha some worning what this means forheed a the future of interest rates. and mightyht minerals, how e rare earths are playing a ucial rolen the world todayan tomorrow. all those stories and much more tonight on nightlyre business rt for thursday, october 17th. and we bidd you gevening, everybody and welcome. yes,s,t was a day of deals that learly onted the stock market

but it wasn't bigorporate mergers thato put inv in a buying mood, rather a pair of tentative anteementsha might signal resolution to thorny issues hanging over the wemarke. e talking about an agreement on brexit which wall street has kept an eye several years now and possible end of the strike at general motors. more on those in a moment. t firsthile stocks started strong in the endndng it modera wiwi dow raising 24. nasdaq climbed 32. s&p a>>ed 8. first up brexit. stocks initially got a the lift afteafsh prime minister boris johnson said he hadd great new deal with t eu. the eu president then tweeted d eal was fair and bal villa marks has more from brussels. >> reporter: it was boris johnson's short walk to what he described as freedomsh the bririme minister in brussels hoping to take britain out of a the eu wi dwroemt.

>> it means the uk leaves whole and entire and october 31st. and it means that northern ireland and every or part of the can take part not just in free trade deals ofrpg our tariffxporting goods around the world. together as a single united kingdom decisionsbout our future, about our laws, borders, our money and how we want to run the uk. >> johnson helped drive the 2016 brexit campawn. no three years later as premier, he is charged with hetransforming referendum vote into reality. his efforts have frequently face a criticismcross europe. but today he won some congratulations how begrudging from counterparents. >> in agreement seemed today to be a good compromise answering all object he was.

>> translator: my personal opinion is that an agreement like t t one on thele is a good solution when you accept that britain is leaving the european union. >> reporter: but europ reserving the highest praise for each other andti plarly the irish prime minister. have workeds closely.y. and without him h it would note have possible to reach agreement today. >> butemespite the iles, hand shakes and applause here in brussels, the british prime minister faces plenty of obstacles and opponents in the uk. together t ty could once again pro long brexit or even potentially prevent it. >> order. >> inestminster meanwhile lawmakers agreed to mt saturday to review the agreement. parliament first wntkend legislates since 1982. in a can crucial vote they decided to keep open the option for a breret extension or even seco referendum. >> the motion a amended be

agreed to, as manyn favor say aye. >> the as have it. johnson's allying must begin the tough tas off trying to magic up a parliamentary majority after expulsion, defections and suspensions outside the government's control of the house of common's chaer. and all northern irish party the. duplicative owe up that might have helped said they can't ew agreement. >> i hope my friends in the dup will also find what it does for the wholef the united kingdom is something over which have comfort and support. >> johnson may find the unexpectedyomfort offered fellow europea will not guarantee the support of his countrymen back at home. for "nightly business report," i'm villa marks in brussels. ry the other big s we told you last night that general autos and the united workers reached as ten active deal but today things didn'e go

ay you mht expect. jane wells is in detroit. and i guess the heaine is that the strike technically is not over t, is it. >>, we wen't really sure what was going to happen today. for over 6 and a half hours, the union negotiating team was discussing, debating pitching ta ouple hundred union lders from chapters around the country to say yeah take that deal and extend it to rank and file.gr finally theyd to take the deal but decided that workers are not to come back to workl unll the votes are unte and that may not be a week until that would be atheek where the people are off the jobs job not getting paid ande a str which the center for automotive research estimates case case costing the gm and workers half llion per week. what arerehey getting in this deal? a record 11,000-dollar ratification bonus that will more than make up for rots wages on strike. also raises.

important point. permanent temporary workers 7% of the gm workforce have a permanent workers beginning january. the cap lifted on profit sharing. they get to at maintain g health care which they only pay about 3% of the costs. however, gm wins three u.s. plants will remain closed. that could be aeal breaker especially in lordstown, ohio. it's not a gmlant anymore. also jobs inexico will stay in mexico. finally, there wre something weird that happene the uaw put out a summary of t deal today. out o it were claims that gm made earlier they were investing billions in plants retain or add 9,000 jobs. that wasn't in the uaw summary. during the press conference, the uaw waswressed about that how come you're n mentioning that? he hedged a bit saying that's outside the contract. he didn't have a good answer. itas an odd omission. guys. >> jane, is there any feeling how the ran and file might accept this or not accept this?

>> $11,000 is hard11o walk away with, there were a lot of lordstown supporters here. and i don't know how representative ty are. but they were adamant without lordstow they were votingin no. and there is no i lordstown. they are going to sellordstown they are building a battery shop nearby. outside the sco of the contct. whether that's enough to get people to vote yes we know buywa from tomorrow. >> very qckly before you go, what happens with the doj instigation into union leadership? where does that stand right now? do we know? >> well it's ongoing. you know, some of the current former leaders are suspected of using you know due's payer funds for things. i asked the uayon members t does that bother you? boy told me we'll talk about later. today we are one uaw. >> jane wells in detrogh to thank you, jane.

so let's turn now toarl broward to talk more about the tentative agreement between gm and the uaw and wt it mig a mean potentially impact the transformation that the auto industry isundergoing. he is the executive publisherubt kelly blue book and auto trader. carl nice to have you >>here. reat to beatn with you. >> we gotot some of the details from jane. given whaha you have been able o hear and find out about this deal, what do you thk of it? >> well, i think you have seen some great movement on both sides, right? you have seen the workers get increased wages and benefits for both themselves and new temporary workers. it takes to get to the full payment. full pay scale which is wha they wanted and of course they continue to have a g gat medical would love right now. and gm is supposed to get to be ablele to close three plants th they want to close to maintain

profitability and maintntn kind of the lean appach that mary barra is increasingly taken over the last five plus years where she wants the compa to be profitable. both of them have moved and t gotten tos point where neck actually get a v e out there. >> right. but also as netted there is pushback on the plant in ohio. and theres pushback upon a plant in mexico that built the new blazer frinz. it'sot a done deal. >> and now ford and fiat chsler will use in i as a blueprint for thin their own negotiations. does in ctract as you kww about it p at this poipare the u.s. auto industry forhe transformation they're going through right now, fewer sedans ld a lot for suvs and the coming of electrified vehicles? >> you know i think this negotiation process andontract proves it's possible to get through these transition as they're happening but also proves how tough it can be.

this was a long strike and cost gm a lot of money and production. and i don't think it's going to get easier. i don't think the deal snifies things are easter going forward necessarily. especially sinces there so much transition to go on. we are seeing more like trify indication of vehicles andn mor sesales, the new normal we live in. that could drag on because there is going to have to be give and takes t industry transitions for both union as and auto >> doesn't you thinknk both the union and the companies know thathey have to go throuhrhe transitions, right? that's inevitable. >> yeah and it makes nse, right, they're going to both face this. th d're veryendent on each other. and if they can't come together on these things it's bad for both of them. ten years, rit, this wawa one t of the most successful time frames in the u.s. auto industry history. and i don't think there was any avoiding this kind of serious t

negotiation unions who rightfully expected more. they wanted more out off the companies that have done so well. but it's ironic tst now we get to kind of the next cycle and we know it these go in psychs where there might be shrinkings,sa transition to different vehies. and right nowowhey are asking for more moneyonnd better benefits when the auto makers fivably see a tougher next years than the last 10 that they have experienced. >> all right, carl. thank you so mu for your presks. carl brower with kellylu book. >> as deals are reached wn the china trade truce o brexit or gp strike getting closer to .ssolutions. tensions on the economy with easing everr so slightly. what toes it mean for the fed's next moves? steve mali has some thoughts. >> reporter: a pause in federal reserve rate cut is increasingly likely either at the upcoming october meekt or one more cut according to comments from overal fed officials. what theed does will depend

critically on upcoming economic data in the several weeks before that october 29th me ding. positielopments in trade talks with china and the apparent brexit breakthroughed repohis morning could argue in favor of a near-term pause. spore for that pause even one that could happen inme october from comments this week from chicago fed president charles evans wab a strong backer of the recent rate cuts. but he said he didn't see additional cutshis year. dallas fed president robt cap lan ss he is agnostign about ash cuts. and jay powell was careful to say zipgss are made meeting by meetingnd the fed would only act as appropriate. the fed could cut in october or insteaf in decembe it pauses once. but recent fed c cments suggest the market pricing of an 83% probability of rate cut in october that could be too high. fed officials believe they've already provided considerable economic stimulus in three formng

first, bacff planned rate hikes this year. second stopped reducing the bala and third they cut rates twice that stimulus in the pipeline is why many fedffials insist policy quote is in the right place. meaning it may haventicipated rrent weakness, like yesterday'ssu slowdown in conmer spending. but if it, hasn't fed officials have been clear they will do more but a pause would give the fed time to see how existing stimulus in the pipeline affect thenomy. adding support to the idea of a pause, the fed is div dedth ove next move. the pause could give time for data and developments to clarify the right interest policy is. and f t fed t develop a consensus. for nightly business report, i't e esman. >> luke tilly join u to tal w more aboutt he thinks the fed will do. he is theio s economistcond strategist as wilmington trust. fce to have you here. >> thank y having me. >> you think we have another cut from theyo fed. point to a slowdown in

capital capital spending is that correct. >> that's correct. most likely in two weeks at the october meeting. as steve suggested ifot then then probably in december. so i think bill said it right when he set it up. saying maybe the tensions eased ber so slightly. it really hn slilit. the fed has been cutting rates and basically they id for two reasons. one because of the trade tensions. and second becae of the global slowdown in ecomic growth. so we have had a little bit of easing on the trade tenon was the ttative dealith the chinz from last we can. but we are stillng loot the other risks still present. we have the global slowdown. we know thatan ouracturing sector has slowed cocoiderably. it's really been hurt. s an wll are slated -- unless there is a solid trade thedor and sig we still have slated to get more tariffs either the ones that were ptped a little bit -- supposed to go into effect two days ago and another set for dember 15. those risks are still around and

enough reason i think forfe the to be lowering rates one more ime this year. >> and then the retail salesay number yeste that were negative actuallyor the month of september. was that an outliar in your view or something elsng gn there. >> the retail sales number was weak on month over month basis, bill, as youoint out. they had been strong in the months before. they can pounce around a b. really tuestion for the fed is whether the slowdown in manufacturing -- and there is also a little bit owd a sn in hiring -- whether it continuing to bleed into the rvicesector. the services sector has been holding up okay. weould expect the retail sales toalesume growth in the months coming ahead. bu if the risks persist and if you continue to get the slowdown, if you get the tarif that would really behe worry that it woul bleed more into consumer spending and services. >> are you one who thinks that we are in a slowdown or are you one who thinks that there i a recession looming? >> well, our baselele ousook

for a continued slowdown in gdp going forward probabl ass low as 1.5% going forward. and that is basedn the idea that the trade tensions don't get any worse from here.we don't get anymore tariffs. we think that if the tariffs that are turrently scheduled go into place do come that that wod end up pushing us lower and possiy into a recession. but at the same time a lot of in slowdown is becse of the existing tariffs and also business uncertainty abo whether t down the pike.ing the possibility of upside is stro. if you had a deal that removed the existing tariffs or even skrus convinced businesses that there re no more cominin t you would get stronger cap x we believe and stronger growth numbers. >> quicy, for you, trade is the biggest issue facingg the fd right now? >> yeah it is because it'sg play directly into the economic icta. and of urse the economic data d economic growth and inflation is what they're basing rate moves on. o >> luke, thank you so much. luke tilley with wilmington

trust. >> thank you. we are watching in the news s these days. vice president pence todayai that turkey has agreedo a 12hour cease fire to give kurdish forepersons time to withdraw from an area of northernyria. he also announced the creation of a safe zone. >> the united states andat turk have both mutuay committed to a peaceful resolution and future for the safe zone. rking on an international basis to ensure that peace and security defines this border rereon of syria. >> elsewhere, the white house said today tha next year's g 7 summit will be held at president trump's national doral golf resort near miami. o acting chistaff mick mulvaney said the property was the best possible location for the summit. and he insis that the president would not profit from the event because servicesill be offered at cost.

coming up, prices are on tri cigarettes.rands of and we'll tell you why. ♪ ♪ ♪ juul said today it's immediately suspending sales of et fruit flafed e-cigaciesing. gett ahead of looming white house policy expected to take all flafed e-cigarettes off the market amid a teen vaping idemic and a vaping related lung disease. juul plans toin sell and nthol flavor. meanwhile shares of foek giant philliphe morris rose after beating analyst expectations

thanks to big gains of shipmen of smokeless heated tobacco toduct. >> as comes as altria raises prices. shares rose more than 1% on the news. frank holland has more. >> marshal borro maker altria is increasing prices on combustible cigarettes. the company says packs cost 8 cents more, toki% increase effect next weeks according to wells fargo and the third price thnz this year. is as the t momentum towards vaping appears to be slowing over increasing health concerns. thcdc are elsing new da data showing vaping deaths increased to 3and lung injuries increased to 1re00. cie sales have been on steady decline in recent years but aerktdd to wells fargo analyst other companies are expectseto hike prices a well. she writes, we expect tobacco stocks will react favorably though this lis price increas ie nc affirms the industry's

continued strong pricing power. icing will remain a critical growth.of revenue and earnings ia shares down 10% year to date. one drag on the stock, altria juul.5ake in e-cigarette maker for nightly business report, frank holland. mixed results f honeywell ere we bin the market foc tonight with the conglomerate reporting better than expecteds profhanks to strong results fromou aviation know. but falling short on revenue you. executives said that honey well has not been impacted by the grounding of bogey 737 max. shares rose 6% to 157.52. bell ring brands debutwood the ipo priced at $14 a hair. makes the power bar branded snacks and powerful debut as shares jumped 18% to 16.50. tesla has received agr nlight from chinese

regulators to start carla production in china. th ao makak was already buililng a $2 billi factory in shanghai. according to reports, the plan is to build half a million electric vehicles aic year at tt faci tty. shares ola were up a u fraction today to 261.97. and ford is partnering with volkswagen and amazon inid prg a new public charging network for its electric car cuoomers. the aaker says that the network will allow ford otos hare volkswagen's charging s well as various home charging w optioh the help from azon. >>rd up a fraction today to 9.11. united rentals topped wall street estimates driven by s growth acr the core construction mechanic. ae equipment rtal pop lowered full-ieruidanc it sees higher operating costs ahead. shares rose me than to 127.90. after the bell e-trade beat expectations. coming after the discount zererage company moved to

commissions which the chief executive called a meaningful shift for the industry. shares were volatile in the afr hours trading a they closed thehe regular session up just a fraction to 39.04. morgan stanley topped expectations driven by strength in bond trading. the company's chairman and ceo said it was a strong quarter despite the volatile markets and a summer slowdown. shares rose about 1.5% to 43.44. up coming animal, vegetable or mineral. >> coming up we tell you why a mineral in this rock may hold the key to a hi-tech future. that's next on "nightly business report ♪ ♪

♪ last night, brian shufflen told us why the so-called re earthinerals aren important player in the trade war with china. t simply, china is a major producer. . the u.s. is a major consumer. tonight he is in a newly reopened mind in california with more on what's being done too breathe life into a nearly dormant industry in the u.s. and why these minerals might bh the key to the future. >>o much of the latestnd greatest high technology gear or anything from tablets to teslas to mri machines and even missile deeks and defense systems require a very old school way of doing business. andanhat is mining. we areut here at the empty materials mountainn passare earth minerals mine. you probably heard about rare earth even on this show. but what exactly are they and why do we care? take this rock. inside this rock is a rare eth

mineral called neodimium andth powers eveg from the tesla motor to important magin nets ke evething running. we used to have a vibrant industry in the uted states. but that mine went bankrupt a number of years ago after the chinese flooded the market a prices collapsed. well now a new brand of reviveeneur is hopingo that mine. to resuscitate the rare earth minerals business in the united states so that we are not completely reliant on china. >> wre investors and i want not oft99life you can buy a world class asset as substantial discount to replacement cost that happens to be leved t one of the economic themes over the next 20 years. >> rare earth played a part in the trade war because the president issued executive order stating that these rocks and these minerals are so critical to hhigh-t that they're of national and economic security importance. and relying on china ultimately could be a dus longtime play. but get going out of the ground is just one part of thetory. after you crush the rock they

ill send it to china to be rf refined but they hope tooix that the refinery on-site hoping to open itr. next y still a long way to rebuild the industry and one analyst we talked to said eve if we hit the ground running full steam now it cld be a long time before the supply chains are finished. >> for us to have a vertilly integrated supply chain you're looking at five to seven-year ldeavor at the early yertiest. i mean there are of issues surrounding permitting and environmental issues and so on and so forth.g >> however l it it may take there is new attention both in the private marketsnd with the federal government around in industry because relying on chinfor all ohe high-tech gear is viewed by many asng a ous long-term proposition. the bottom line is this with all the new gear we want wt willilt require a very old school way of getting key components but an industry that many suggt may be ready to explode for nightl business report, brian sullivan mountain pass,

california. befor we o, one last lk are look at wall street. feels like a wait andee market still. the uaw agreement still to be tified. the brexit deal still to be voted on. the dow rose 2points today. the nasdaq clied 32. the s&p added 8. and that is nightly busoress report tonight i'm bill griffeth. thanksor watching. i'm sue herera. have a great eve we'll see you tomoow. ♪ ♪ ♪ ♪

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