gm's chief executive, fritz henderson said the u.s.ar market should see modest improvement next year. and massachusetts governor, deval patrick has named party chairman paul kirk to temporarily fill the late senator edward kennedy's seat. we're first in business worldwide, cnbc, i'm courtney reagan. >>> i was beginning to think that the stock market only went up. what happened? >> think again. >> welcome to "power lunch," i'm bill griffith. stocks have been falling following yesterday's late selloff. procter & gamble leading the dow at this hour. and another treasury auction, at this time, $29 billion of seven-year notes, the result next hour on "power lunch." >> and we have a cnbc exclusive, general motors's ceo fritz henderson about his plan to boost sales through gm's money-back offer. >>> and goldman sachs, $16 billion dilemma. new reports say the firm is set to have another blockbuster year for bonuses. the question is -- how does goldman keep employees happy without causing backlash in washington? . >>> and google, getting ready

fritz henderson says sales have been way down. car shopping web site edmonds.com forecasts a 23% decline from a year ago, and j.d. power and associates sees a 29% drop. auto makers release their september sales numbers next thursday. >> paul: wal-mart is paying $3 million to massachusetts to settle claims it shortchanged workers by denying lunch breaks. the state said forcing employees to work without breaks violated labor laws. the giant retailer has faced similar complaints in other states. last year, wal-mart paid $640 million dollars to settle similar suits. the company says it's pleased to have resolved the matter. >> suzanne: here's a look at what's happening tomorrow: the august reports on durable goods and new home sales are released. we'll also see quarterly results from k.b. home. when it comes to the recession and america's debt levels, do we have too much or not enough? tonight's "two ways to play" says it depends on how you see it. here's kevin depew of minyanville, and minyanville's kevin depew. >> everywhere we turn

fritz henderson and other top managers won't see their pay restored. their salaries are limited because of the terms g.m. agreed to whe accepted loans from the government. >> paul: monday, we kick off our special series "lessons from lehman." we look back at the bank's failure, and ahead to what's next for the financial sector. >> susie: u.s. clinical trials show a single dose of swine flu vaccine is enough to protect healthy adults. the finding could double anticipated vaccine stockpiles this fall and lead to more people getting immunized faster. world health officials had thought two shots would be necessary to protect against the h1n1 virus. sanofi aventis glaxosmithkline and novartis are among the firms making the vaccine. >> paul: the first liability case involving merck's osteoporosis drug fosamax ended in a mistrial today. jurors said deliberations had grown ugly and they couldn't reach a verdict. in the new york trial, a florida woman claimed the drug caused dental and jaw problems. no word yet on a retrial. merck faces 900 suits related to fos

cnbc's phil lebeau joins us now with more. >> fritz henderson joining us from orlando. fritz, i know you're down there talking with some dealers as you're pushing this money-back, may the best car win offer with consumers. what's the response been in a little under two weeks you've been rolling out this promotion? >> the response has been good, phil. the response in the show room has generated a lot of interest. certainly it's generated the buzz we were looking for in terms of sending a powerful signal that we'll put our money where our mouth is. and finally with the dealers, we're back to, we're happy to be back in business, actually and want to go back on the offense. this is a pretty good spirit. >> you want to go back on the offense. but i talked to people at some of the search sites, like edmonds.com. who are indicating that the people going over to toyota, the conquest buys have not been there with this program. what's your early take in. >> phil, first of all it's a program that's intended to -- we just launched the program. it's about consideration-building, sta

. >> fritz henderson said yesterday he thought in 2010, car sales might reach 11.5 to 12 million vehiclesnews. aren't those the magic numbers, exactly what the industry needs to be profitable? >> it is, but keep in mind, he also said when asked about 2011 he said 13 to 13 1/2 million we asked him about this. mulally from ford said the other day in india, he think it is going to be perhaps as high as 14.5 million. regardless if this industry gets up over 13 million in terms of annual sales, definitely going to see better times for all of the automakers. >> that would be huge. okay, guys. >> let's not -- >> okay. >> let's not forget gm has to get a good percentage of those sales. >> yes. without question. all right, thanks for joining us, guys. trish? >> okay. here we are. what is the level there, 9693. what do you think, down 9,000? 10,000, which one comes next? we will discuss how to invest despite all this market uncertainty. larry? >>> all right, dissension within the federal veer of, how to implement an exit strategy. will slow and steady went race or do we need aggressive action now?

young had been part of a small team put together by fritz henderson lately to put together key strategy decisions. gm has decided what to do with its opel decision and will discuss the decision with german officials today in berlin and a news conference is scheduled for 1430 cet. christine. >>> mike, capital spending remains low in japan. economists are now concerned that capital spending will probably not recover for the rest of this fiscal year. wholesale prices also slid 8.5% in august. analysts say deepening deflation could force the bank of japan to keep its ultra money management easing in place for a long time to come. south korea's central bank held interest rates study at a record low of 2% for a seventh consecutive month. the bank of korea sent a strong signal that it would hike rates if the property boom continues, even if the means moving before other major central banks. meanwhile, no change in interest rates for the reserve bank of new zealand, either. the bank says it is more inclined to keep rates unchanged at 2.5% until late 2010 saying a recovery is patchy and the grow