chrysler upgraded fiat to a triple b minus. this weakness is potentially because there are reports fiat chrysler may bid for exeter financial, which is a unit of blackstone. a financial company. it does have some stake in subprime auto loans. potentially fiat chrysler may bid for that company. there's also a lot of news in point is there is. trade takes the spotlight. for more on what's happening we are joined by michael mckee, bloomberg's international policy and economics correspondent. so far we had most if not all the leaders, with the exception of one join. merkel cominga late because she had airplane problems. got on a commercial flight from the dreaded to buenos aires. president trump was supposed to meet with her this afternoon and said they would meet tomorrow. it has been a day to talk about trade. the potential for a trade deal with china is on everyone's mind. this morning the president joined with the prime minister of canada, justin trudeau, and the president of mexico, at least for the next 12 hours, and they sig

announcements where fiat chrysler stopped making the dodge start.ord saying it will get rid of all cars they produce in north america, with the exception of the mustang. this is something detroit carmakers have been up against able torms of being make sedans able to make sedans profitably that can compete with the japanese and the koreans and there waving the white flag at this point rather than continuing to try that fight. vonnie: we do have a response from the canadian prime minister, who says gm workers were the heart and soul of the city where the gm plant had been for years. the expect -- expressed deep disappointment in the gm ceo. let's check in on the first word news. courtney: president trump says the u.s. will close its border with mexico permanently. teargas wasfter shot at migrants trying to cross the border fence. he says many migrants are stone cold criminals. there was dramatic renewal tensions between russia and ukraine. russian forces fired on three ukrainian navy ships. the attack took place near crimea, which russian president vl

i'm showing you this because remember two and a half years ago when then ceo of fiat chrysler said i'm throwing in the towel on sedans, nobody is buying them, they're low profit margin, get rid of them and everybody said smart move. since then fiat chrysler up 84%, general motors up 2.2% melissa, i find it ironic that for years covering this company i would hear from people saying they're slow they're plodding, they never make the moves when they need to to remain lean and that caused them to go into bankruptcy here's mary barra trying to get ahead of 2 curves saying nobody is buying these sedans and they're getting skewered from the white house down to politicians in michigan and ohio which issurprising given the fact they're cutting 15,000 jobs. >> the president saying they better open up something else in ohio, are there other vehicles that could be reassigned to those plants to appease the administration >> well, there are vehicles that could be reassigned. they won't do that because you have to retool the plants and that is extra cost what are you going to do, move something from

is following a road paved by fiat, chrysler and ford. lester? >> ann thompson tonight, thank you. >>> to the big storm socking thle of the country quickly asoving onto the northet, fueling frustration at the airport. nightmare delays and cancellations for families that want to get home. nbc's matt bradley is in chicago >> reporter: chaotic conditions. standstill trucks flying off the road. >> i saved it from hitting a guard rail because it would be more damage. >> reporter: power knocked out throughout chicago and nightmare travel with more than 0 flights out of chicago's o'hare airport cancelled. >> originally, they said i would be on 8:20 a.m. and then turned around and said i would be 8:20 p.m. >> hopefully get on tampa and go via tampa to phoenix, arizona. i tried to fly through dallas and that was also completely booked. >> i want to get back home. >> reporter: the storm is now racing for new england where it's expected to bring snow, highv winds, and even more headaches this week matt bradley, nbc news, chicago. >>> presidump is defending

in turning away from passenger cars, gm is following a road already paved by fiat-chrysler and ford. lester? >>> thank you, anne. now to the big storm socking the middle of the country quickly moving to the northeast, fuelling frustration at the airport. nightmare delays and cancellations and a lot of families who just want to get home. nbc's matt bradley is in chicago. >> reporter: chaotic conditions after a heavy helping of early winter in the midmidwest. standstill traffic with trucks flying off the road due to hidden ice. >> i saved it from hitting the guardrail. it would have been more damage than it is now. >> reporter: power knocked out throughout chicago. a nightmare in travel with more than a thousand flights out of chicago's o'hare airport cancelled. >> origin nallily said 8:20 a.m., then 8:20 p.m. >> hopefully get on at tampa and go to phoenix. >> i tried to fly through dallas. that was also completely booked. >> i want to get back home. >> reporter: the storm is now racing for new england where it is pected to bring winds, and even more headaches this week. matt bradley,

"customer safety is paramount at fiat chrysler u.s." >> there definitely should have been a recall. >atter of people who don't know this can happen to them. >> we wondered how many chryslers, dodges and jeeps have these headrests. the cole wouldn't tell us. tally, the lawyer, believes it's millions. we also asked the national highway traffic safety administration if it's investigated all those plants it complaints it's gotten but we did not receive a response. >> i'd never heard of this. >> those videos on youtube really opened our eyes. >> thank you, chris. if you have a headrest problem in your car, let us know. go to nbc bay area.com/responds. chris and his team want to hear from you. you can also call them at 1-888-996-tips. >>> let's bring in chief meteorologist jeff ranieri. i was just asking you this question when we were off camera. why the livermore valley? is it because there's no wind? why is that area being impacted so severely? >> it's a one-two effect. we're seeing the very light winds. it's very calm right now. is the first thing. and because it's like a valley, it's li

and in turning away from passenger cars, gm is following a road already paved by fiat/chrysler and ford. phillip? >> ann, thank you. >> a major development in the robert mueller investigation regarding former trump campaign chairman paul manafort. federal prosecutors now say manafort repeatedly lied to federal investigators, breaking his plea deal. in court documents filed monday evening, prosecutors said after signing the plea agreement, manafort committed federal crimes by lying to the bureau of investigation and the special counsel's office on a variety of subject matters which constitute breaches of the agreement. but manafort's lawyers are disputing the government's claim with a broken plea deal bringing potentially serious consequence. nbc's tracie potts has the very latest from washington. tracie, good morning. >> reporter: hi, marlie, good morning. serious consequence could mean ten years behind bars and half a million dollars in fines just for the two counts that he pleaded guilty to. those two counts that were involved in the plea deal. there are ten other counts that were not

they're not completely getting out of building cars but we saw that announcement from fiat chrysler they this direction. then you heard the news that ford would start going in this direction. those moves are in the process of taking place and now gm has finally said look we have too much capacity out there. especially at plants that are building sedans and cars we can better utilize that capacity in the future for autonomous vehicles, electric vehicles but who knows if that will take off the way the company is expecting so thereafter fiat, chrysler and ford in terms of making this mov move. >> why aren't people buying cars anymore? >> utility there's better utility and more options when you look at crossovers and lower gas rices that plays a factor here as well when you have gas well under $3 a gallon, in some parts of the country close to $2 a gallon, people want more utility, more space. they like sitting up higher in a crossover utility vehicle and don't discount the transition we're seeing in the middle of america towards pickup trucks. especially mid-sized we are a country that enjo

. >> we have numbers from ford, fiat, chrysler and toyota. are comparisons for a strong october last year. ford down 3.9%. that is a little bit better than the estimate of decline of 5%. the car business continues to be down 17% last month. fiat chrysler, an increase of 15.7%, much better than the expectation which called for increase of 9.2%. ram trucks best october ever up 14%. toyota up 1.4%, a little weaker than the estimate of up 2.3%. the bottom line is this, we will be seeing pretty strong numbers in terms of october auto sales probably in the range for a sales rate between 17.2 or 17.3 or 17.4 million. anything over 17 million is strong. guys, back to you. >> we'll see what mary bar tells the deal book. >>> let's get to the bond pits. good morning, rick. >> one week of 30s. we extended up to 341. let's zoom out the chart to july of 2014. 30-year bond extending the cycle high originally at 340. that is based on a close. what i'm really trying to show is how the curve has moved. if you look at the two-year the high yield close going bac

customer is paramount at fiat-chrysler u.s. >> it's a mat protect other people who don't know this can happen to them. >> we asked the national highway traffic safety association if it investigated the complaints, but we did not receive a response. we'll keep on them. >> do we have any idea how many of these headrests are out there? >> the lawyer thinks it's millions, but we really don't know. >> okay. >> that's a big number. >>> let us know if you have had a headrest problem of your own. you can call chris at 1-888-996-tips. >>> well, up next, should there be another trans bay rail crossing for b.a.r.t.? the talk's happening now, and when we might be able to see become a reality. it all about tr . >>> a warning tonight from san jose state university. it's all about those popular scooters. campus police say four to six juveniles attacked and robbed a student yesterday. they took the victim's cell phone before taking off on electricity scooters. two of the suspects were arrested but officers are still looking for the other suspect. the victim by the way did not suffer any serious injuri

who is the most 5 out of 10 most american-made cars are made by foreign companies, honda, and fiat chrysler. so, you know, a complicated mess these days, it so inter twined there is no easy answer. >> a question, i have the president got through the usmca is there a sense of relief from auto executives about getting that done, getting supply chain in canada and mexico for car parts? reporter: that was their big fear, scott keogh, who now runs vw said it was huge, most of u.s. automakers have operation in canada and mexico, that is a bigger deal than anything else, money that gm makes in china, they do a fairly large volume, but a lot are low margin vehicles, canada and mexico piece of huge, scott keogh said, now that resolved that goes a long way to giving us more stability, that is what the automakers want is stability, what do we have to do in terms of mps, and plans for the future, you can't just, say i'm going to make a car, and then in a month have it done. this is a long range business, they need stability. david: jeff flock terrific stuff. >> just weeks ahead of a spending deadline,

should this tax credit be repealed, ironically, it would impact competitors like ford and fiat chryslerwho are way behind. for tesla, we think they hit that threshold, 200,000 electric vehicle sales. we think they hit that threshold last quarter in q3. they would also have sunsetted that benefit. ironically, for all the bluster that trump is putting out there, it would not really impact gm or tesla either. emily: trump is piling onto the street from tuesday where he says very disappointed with gm and mary barra for shutting plants in ohio, michigan and maryland. saved general motors and this is the thanks we get? we are now looking to cut all gm's subsidies, including for electric cars. general motors made a big bet on china and years ago when they built plants there and in mexico. don't think that will pay off. i am here to protect america's workers. with tesla nissan, have been lobbying to extend some of the tax credits. where does that stand? david: there is a proposal that would extend for another 10 years they eat he tax credits. it's now being kicked around in congress. congress a

take a look at fiat chrysler. they did not disappoint.ally surprised the upside. 16% year on year change could the expectation was 12%. the jeep and ram brands, the big autos, up 9%. and 14% respectively. that is really the story. if you have a big auto, you are probably doing well. a.l. molly surprised how much americans love those big cars. they are the size of two cars in asia. [laughter] ramy: you are right. the thing is, if you are a purveyor of a sedan, you are still getting slammed. for example, when we are talking about honda, toyota, those are the cars that are actually getting hit. toyota, they did see some big numbers in terms of the big companies here -- big car companies that the corolla, as well as the prius, both of those fell in addition to the jeeps as well. were just the name of the game. also with honda, basically americans hate those small cars. those are the ones you see right there, the smaller ones that are so popular in asia. ramy: fuel-efficient. i like that personally. shery: thank you so much good rainy inocenci

fiat/chrysler said the same. i guess he's trying to get general motors' attention.orks and we get another product. >> you mentioned when he said "don't move," we have that sound from his rally in 2017. guys, roll it. >> i rode through your beautiful roads coming up from the airport, and i was looking at some of those big, once-incredible, job producing factories and my wife, melania said "what happened?" i said those jobs have left ohio. they're all coming back. they're all coming back. coming back. don't move. don't sell your house. >> mayor hill, what about this president's trade war? how much is that a factor not only with gm but the american auto industry on a whole? how much are you hearing it's really hurting it? >> i really can't say how much it is hurting it. i know he's talked about tariffs, but i do feel right now the big thing is we have a fabulous product here, but we have no market. with low gas prices, with people trending toward pickups, suvs and crossovers, we can't hold guns to people's heads and say, hey, you have to buy our product. everybody is m

fiat chrysler will spend $5.7 billion to revamp factories in italy.e in demand suvs and electric cars. fiat chrysler has struggled for years to run at full capacity. that is the bloomberg is this flash. tom: thank you so much. with jean-claude trichet, central banking in a bit. but now, i imagine two chinese ships showing the flight between key west in cuba? how about the taiwan strait, only 81 miles, and for the third time this year, two ships have gone through. joining us now is our guest, and of course jean-claude trichet continues with us. what is the tension you just observed in your trip to singapore and hong kong, that trump tension that you see? >> we are seeing more concern about the leadership of china than the leadership of the united states. tom: discuss it. it is important. francine: it is important. >> it is important. the perspective in the u.s. and asia is entirely different. the majority, not all, of course , but the majority of people i talked to, corporate feeders, government people, investment of them over half support with the pre

fiat chrysler is up 38%. bottom line they did not address this.o come out at this time, eric, i think political ramification it will hurt hem. the reason the stock is flat, people were offended and a lot of americans did not buy this product. >> they should be he oaf -- offended charles. this is pretty disgusting. had americans not stepped up in 2008. it would be dead. we saved this company. frankly they have got a very short memory. this could have been done a year ago. they could have worked with the administration. they could have thought through workers best interests but instead what they're doing is, i think very unfair. it is very disloyal to americans who saved this, this company when you have got a ceo who is making $22 million a year. when they could have planned this a long sometime ago. you're providing a platform. this is my biggest concern, you're providing a platform for further anti-capitalism, with socialists like cortez from new york who will use this as further evidence that you can't trust capitalism, you can't trust business.

gm down more than 2%, fiat chrysler just as much.ting hit less hard, down the better part of 1%. this is ongoing fears about tariffs adding the cost in china. china with the key issue, showing sales in china showed -- slowed for the fifth month in a row for october. the first annual decline in auto sales in almost 20 years. we can show you why this is so important to the likes of gm. , auto sales in china , 42%sent about -- 50% in china, of sales. ge.nd i am taking a look at the company cannot catch a break after reporting disappointing earnings last week. the stock is plunging again, down more than 10% at one point today. the catalyst of that, a downgrade from longtime ge bear j.p. morgan analyst steve jeter. he cut his price target to six dollars, six dollars per share for ge, well below or just below the recession era six dollars 66 -- $6.66. they cited widening liabilities resultsfourth-quarter across the board. his downgrade today. fromtock is down 70% its $30, but that is not even fundamentally reflect the flax ge, trading for

whether or not he made some type of a promise as you take a look at shares of general motors and fiat chryslero back to the middle of 2016. >> there was a little bit of a reassurance to get product line more in tune with what the market seems to want and not just sort of wait for the cycle to rollover entirely and go through another downturn before making some of these calls i understand why they would say this is based on good thing. it is unclear if it can carry beyond this point. basically you have to get reassurance that it is in decent shape. >> there could be political fight back as well which we'll have to wait and see let's discuss tesla. he said the company had been near death >> tesla faced a threat of death due to the model 3 production round. the company was bleeding money like crazy and just, if we will solve these problems we would die. it was extremely difficult to solve them >> how close did you come? >> within single digit weeks >> single digit weeks. i wanted to bring this up, how then can he look back at his attacks on the short sellers and members of the media that were rep

fiat chrysler surged the most in july on news it may sell its robotics.llion. a review of the operations is at an early stage and no final decision has been made. told it could attract interest from china. ramy: bitcoin extended its tumble, haiti, after -- haidi, putting this year's crash within striking distance of the cryptocurrencies worst their markets. cryptocurrency's worst bear market. $3000 seems to be within striking range. i mean, i remember we hit that record in december. this is in the gtv library. ,511 was hitthe 19 here and we have gone down, down, down. 80% is the loss we have seen from bitcoin. look at the relative strength. it is way in the green. if you wanted to follow technicals, you might want to follow this, but a lot of investors and analysts say we do not think there is an end in sight. haidi: it is always hard to talk about technicals and fundamentals when it comes to cryptos because of how new the asset class is. where is the floor? we have a story on the bloomberg saying we are seeing minors shutting down as well. the amount of

this is another one like ge -- david: or fiat-chrysler selling its robotics arm, daimler selling itsck. it will be a while. into thewill watch utx open. coming up, bloomberg markets with jon ferro. this is bloomberg. ♪ [ phone rings ] what?! ready for christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. ♪ there's no place likargh!e ♪ i'm trying... ♪ yippiekiyay. ♪ mom. ♪ jon: from new york city, i am jonathan ferro. the countdown to the open starts right now. coming up, raising the stakes ahead of g20, president trump signals he is ready to increase leverage on china. apple caught up in negative headlines. iphones could get hit with tariffs. are you blaming trade on

credit be revealed -- repealed, one deeply impacted people would be competitors like ford and fiat chrysler who are way behind. as for tesla, we think they had the threshold which is a 200,000 cumulative ease -- tv sales. at markinghey hit th q3. for all of the bluster that trump is putting out there, it would not really impact g.m. or tesla. emily: trump is piling on to this tweet from tuesday or he says very disappointed with gm and their ceo for closing plants in ohio, michigan, maryland. nothing being closed in mexichem and china. the usaid general motors and this is the thanks we get? we're looking at cutting all gm subsidies including electric cars. gm made a big bet on china when they built plans there. i'm here to protect america's workers. with tesla and nissan have been lobbying to extend some of these tax credits. where does that stand, david? that: there is a proposal would extend for another 10 years the tax credits and right now, it is being kicked around in congress. -- the republicans are really in favor of doing this so there's a lot of force trading going on. trump could r

it is certainly not a leader because ford and fiat-chrysler, have placed their bets and big ones on suvss. nato says three u.s. service members have been killed today by a roadside bombing in afghanistan. it happened in the central afghan city of ghazni. three were wounded in the attack and a civilian contractor was injured. the pentagon is withholding the names of the service members until the families can be notified. there was no claim of responsibility for this attack but the taliban is active in that area. >>> former trump campaign manager, paul manafort, could face ten years in prison, after the apparent collapse of his plea deal with special counsel robert mueller. nbc justice correspondent, pete williams, is in washington with the latest on this. pete, good morning. >> reporter: good morning. this is a surprising twist. when manafort pleaded guilty in september, he agreed to cooperate with mueller's investigators. but late yesterday, mueller's team told a judge he lied to them on a variety of subject matters. that means the deal is off. they will not urge a judge to shave time of

rate over 17 million, it'll be strong even though you see the individual automakers, whether it's fiat-chrysler up 15% or toyota up 1.4%, ford down 3.9%, we're comparing with a strong october last year. overall, strong auto sales in october. what's interesting, when you look at people in showrooms, they are now taking out auto loans with the highest interest rate we've seen since 2009 on average, 6.2%, according to edmonds. take a look at shares of toyota. they will be reporting earnings next week. those higher interest rates, guys, they are not keeping people away from taking out loans on more expensive vehicles >> i didn't know 6.2%. that's high, phil. gm ceo mary barra speaking off the heels of a strong earnings report and a huge surge in the stock yesterday. what did she say >> one of the big topics andrew was talking with mary barra about is monetizing its subsidia subsidiary cruise. they plan to have an autonomous ride share service they'd like to launch next year. andrew said, when do you start making money off of cruise here's what mary barra had to say. >> you don't have anything to mo

that's far less efficient than ford and way less efficient than fiat chrysler. so as you look at general motors, keep in mind there is 3.2 million vehicles at unused capacity one million of those are attributable to general motors so, guys, gm is doing the smart thing here in terms of a business saying we have unused capacity let's make ourselves more efficient. >> that's the point that the former ceo of gm made the other day. he said if you're running under 80% capacity, you're not making money on these plants. the fact check on bmw is appreciated but volkswagen is considering opening a plant in north america, maybe not the u.s., but in north america for north american distribution of cars >> regular is has one in chattanooga and that's not at full efficiency use, either, melissa. what they have said, what they've indicated over the last couple days is that they are looking at the possibility of an all-electric vehicle plant in north america. and this all ties into where regular volkswagen is as a corporation in europe saying we want to make a big push into evs

you think in their key segments and margin drivers it would be the domestics ford and chrysler, fiat chryslerhard to see how this could be undertaken legally as well it would take probably some time, probably be drawn out, appealed and so forth. this isn't something i think happens overnight. where we would be most concerned is where the margin drivers are for gm and that's on the pickup truck and utility vehicles. >> let's say it's want subsidy effectively the president is saying, gm, you're in my crosshairs that's what this is, isn't it? is the move in the stock 3%, is that justified for now be knowing this company is in the president's crosshairs >> lease take a step back and just remember what gm announced yesterday was many years in the making and in the coming i don't think it was an if but a when situation they had to at some point make a decision to pull out of cars ford made this decision and they don't seem to be in the same crosshairs we're very late innings in the auto cycle so, they're obviously signaling with cost pressure they see today and potential downtick in auto sales, the

gm, ford, and fiat chrysler. all of them counting on strong holiday sales.t's selling trucks, especially pickup trucks, and suvs cars you want a car, you can get one at a great discount right now. nobody's buying them and that's why you're not seeing strong sales when it comes to small cars or sedans guys, back to you. >> it matters, doesn't it, phil? you had this report ready to go before we dropped 6.5%, 7% again today after we've been down from 82 in just a couple of weeks it seems like. unbelievable. >> joe, that's why people are so -- they've been rotating into suvs over the last year. that's going to continue especially with lower gas prices >> people do have kids and dogs. you know, it's -- if you look around, in the parking lot, i used to be surprised but i'm not anymore when there aren't any sedans very few of them left around it's amazing, phil all right. and why wouldn't automakers want to give you that how much more money do they make on those, phil it's not even close, right >> oh, a lot more. the profit margins on suvs and pickup trucks are far

. >>> don't want to ignore any of these other named stocks to watch this morning fiat chrysler shares trading reports say the automaker may sell its robotics operation next year that could command as much as $2 billion. nvidia was rated outperform. this is new coverage at credit suisse the graphics chip maker stock has dropped by about 50% since early september. but credit suisse says it's now at an attractive entry point even if earnings drop to the worst case scenario. and cleveland cliffs, the shares are rising this morning. the iron ore mining company announced a stock buyback program. it's up 17%. that's 2%. >>> coming up when we return, president trump is backing steve mnuchin denying comments he's unhappy with his performance u'ay tuned yore watching "squawk box" on cnbc a big hour ahead we're voya. we stay with you to and through retirement. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement. and then, more jobs robegan to appear.. what started with one job spr

we ended up essentially subsidizing fiats takeover of chrysler. >> harris: how could we have done thatifferently? not to have too much revisionist history and pretend we weren't seeing things fall apart but the president is saying, look at what this country has done. doesn't gm know? >> gm knows it very well and that's part of the problem, gm has been stuck on the edicts coming from the government, president obama pushing electric cars, she's saying she's going to close down some of the plants in ohio to open up other plants that make electric cars and some of those plants are in china. that is really infuriating president trump, the fact that gm may close down plants in ohio to open plants in china. we should mention of course, ohio was won by president trump in the 2016 election. it's unlikely or it would be very difficult for him to win reelection in 2020 without ohio so there's a lot of politicking going on, he's lying to the crowds in ohio but these are real workers who will be losing their jobs, about 1600 workers in one town alone there which has already lost -- >> harris: can i