neil: tesla's market cap is higher than gm? >> yes. i believe, gm has 50 billion-dollar market cap. someone should check the math on this, tesla has like a 52 billion-dollar market cap. neil: the macro picture jeff raised for us, rising interest rates are generally not good for auto guys and not good for housing guys. i am wondering whether we over react to the rising rate thing, whether markets, latest examples of that, do we overreact or is there legitimate concern this

i love gm i'm a trader on this but gm, banks, industrials rallied early cycle. a strong argument we are late cycle why do they take the leadership now. >> this cycle is quite different in that you had such a disparity between growth and value that even if this isn't a secular shift back towards value, the valuation disparities, the price gain disparities, you know which is, again, part of the angst as to why people look at fang and saying they are broken, et cetera and when you look at a stock like the world's biggest mobile phone maker who is going to report tomorrow, it's only trading at 15, 16, 17 times. that stock is different from the rest of the group. that stock's lessens active to a fed who is hiking. so it doesn't necessarily have to be in an environment where correlations are lower it doesn't have to be all tech. >> but it's not lessens active to slower global growth and brewing trade war. because ultimately the apple is the last battle fought in the trade war. and ultimately we see considerable damage done to their supply mcmahon and possibly tariffs

cho, 11 gm protein pretzels, 10 twists - 48 gm cho, 5 gm protein white jasmine rice, 1 cup - 45 gm chocovery, eat carbohydrates that are high on the glycemic indexá to replenish depleted glycogen stores. muscle glycogen is a form of carbohydrate stored in your muscles and liver - your primary source of energy during exercise. low glycogen levels = decreased ability to gain strength and muscle. high glycemic foods are chos that break down quickly during digestion and release glucose into the blood stream. note: this is when you can indulge in "white" (low fiber) cho, e.g., white bread, most types of white rice, corn flakes, white potatoes, and pretzels. doing so will initiate a rapid rise in blood sugar and insulin which enables fluids and nutrients to enter your muscles and cells. immediate post-exercise drink consume within 5-60 minutes after exercise chocolate milk, nonfat/lowfat = 27 grams cho; 9 grams protein or milk, nonfat/lowfat (89% water) = 12 grams cho; 9 grams protein studies revealed a greater increase in lean body mass and muscle growth in resistance exercisers who drank m

how big of a deal do you see the honda and gm cruise partnership today towards pushing gm to the tophave list to help them win that race for autonomous cars >> i think it's a very big deal. it's an usual arrangement to have two automakers do this together and, you know, adding cruise automation. i think a lot of this is about the money. when you think about how much it costs to develop these future technologies it's immense and we don't know when they will be ubiquitous or when they will get a return on that investment so they are sharing the cost and they are sharing the risk and i think that's a big part of the deal because at the same time honda and gm have to keep turning out today's vehicles for today's companies -- customers because that's what is feeling the -- the profits for these future ventures. >> phil, i don't know if we can bring up the element you had on that sort of rollout timeline between waymo first and gm coming up and the toyota partnership, et cetera there's a few partnerships out there and as michelle was pointing to very few rather than waymo working on their

as a strong point in that quarter for gm, phil though.ighlighted china and through the sound bite from the gm cfo is that a sustainable gain for these automakers in china in the middle of this trade "frost/nixon" and trade war which could get worse? >> china is a concern. there's no doubt about that, sara, go ahead china is a concern look, september sales were down 50% for gm they still manage to post record profitability in china, but if it's weak in october, which we expect it to be and there's not some type of a sales cut reduction in china and which see sales down double digits for november and december, yeah, that's going to weigh on the bottom line for general motors and for all the automakers. >> we'll leave of it there guys, good discussion. >> on what is the big winner of the day, general motors. >>> right now we've got to send it down to weese because our own eamon javers is joined but formerly our own and now economic national economic adviser larry kudlow like a cnbc reunion. take it away. >> feels like that in the state dinin

light trucks, pickups, crossovers, suvs, minivans and gm's product cycle is well timed.ruck just launched in august you can use that for the escalade, chevy tahoe. for now at least there's quite a bit of pricing power interest rates aren't hurting demand yet >> china seems to be an emerging sore spot globally why have they been able to withstand that better than others >> that's a really important point. they're able to avoid the head winds because of mix and pricing. in particular cadillac cadillac is doing extremely well in china i don't think they get enough credit for that. to your question, gm doesn't get enough credit they and volkswagen were really the first two western automakers to go into china and they're seeing the upside to that now >> are you near peak material cost inflation >> i think you have to ask the president that question the way he talks about aluminum tariffs. i'm hoping this year is the worst of the head winds and by the middle of next year it will at least be flat you never know with the way things are eventually we'll get to a more peaceful res

shares of gm up sharply after blockbuster results. is the american consumer flush with cash and ready to keep spending the streaming giant, is our urge to binge going to keep hollywood happy and healthy? >> welcome to power lunch, everybody. it is happy halloween day for the market it means october is soon to be over we're ending on an up note it's the best two-day rally in two and a half years the month has been a house of horrors for the markets. the dow down 5%, other barometers down even more. earnings helping to turn things around today gm soaring, much more on those companies, coming up, one stock that is not joining the party is ibm. it's down 25% in just a month. trading at its lowest level since 2009 >> we have our eyes on earnings, because that is what's driving today's action in large part, gm's results revving up the auto sector facebook putting the bite back into those fang stocks, and we're all waiting for apple. we begin with the action on the floor of the new york stock exchange that's where we find bob pasani. >> we'r

has: three cap, honda invested in gm.ransformational shift within the car world. david: the other point is to the global car. it is not a u.s. vehicle. with theirto that footprint in japan and international generally. look at car growth. you have got to look at china, india. it is not just the united states. making sure this is a global enterprise from japan, making sure it has a honda from japan, and it gives it a global footprint. alix: talk about investments. about autos, it goes back to china in the you need to get your foot in china and we heard tesla saying we are 60% less cost competitive in china than in does -- those domestic cars. jonathan: if you will get china now, we have got auto sales running. there is a credit cost competition now. it is important the end remains competitive. one of the things we like about japan is weakening so that room at the and exchange rates. alix: i want to bring our this for who covers us. >> it is another strong investment in gm crews and that has proven to be a smart bet on the p

facebook and gm is going to hel out today.dp, the biggest jump in eight months despite those back-to-back hurricanes and 227 jobs 10-yr hits a one week high in the yield. the nasdaq and russell down 10% for the month. sharp gains of the open. job hiring trouting expectations >> gm, what would be its best day since may. facebook unveils a new growth strategy some strong global sales boosting kfc and taco bell and ceo of yums brand will join us at this hour >> heading into the final trading sessions, the dow with a 6% drop today. s&p is down 8% nasdaq and russell and so-called correction territory with a more 10% decline. a lot of technician wants to see if the s&p can close above 200 days >> that would be important there is a lot of technical damage done. a lot of people are freaking out of yesterday's rally bob lane did fantastic work on "mad money" last night look at the rotting, look at how bad it is. i would come back and say october is over. it does matter yesterday's seasonal strong day. we are very over sold. we got yest

shares of gm rose. while honda's stock fell. phil lebeau tells us why the auto giants do it together instead of on their own. >> reporter: general motorshe world's second largest auto maker is joining force was honda. technically honda i investing just under $3 billion and taking a small ske in gm subsidiary cruise. ers will the auto m develop and build an autonomous vehicle. this is a partial image of what that vehicle might look like when it's finally sold around the world at some point i the future. >> what we are doing is designing a purpose built vehicle fully autonomous zploid in a shared network for theon transportaf passengers, transportation of other things. so we see a huge a opportunity and flexibility coming out of this. r: with practically every auto maker and many tech firms working on self-driving cars, why did honda approach gm about making a deal? mainly because cruis and its development of self-driving cars is viewed in the auto and tech industries as being at the forefront of putting autonomous vehicles on the

facebook and gm is going to hel out today.and 227

gm, i'm interested in that beca pe gm has beenforming better than ford certainly. why do you like that auto space so much? >> we, again, they are cyclicale companies. s. kpee doing well. 5% dividend yield upon a high quality company like general mortgagors gm has a stake in lyft, the competitor to uber >> that's the tech side of. >> tech side of it. i do think that's an option that's not being fully priced in for the stock. and i think you know with the yield at the current valuation i think gm is a good stock. >> what about investors who may be retired or not comrtable putting money in stocks right now in a big wat what p of the yield curve would you like, the bontd market. >> if you go into fixed income, i don't think you have to streh too far to pick up yield. you don't have to go out, 10, 15 yearso pick income. you can go out three to five years. bonds aed r or better and you get a 3% to 4% return taking on much risk. >> on that note johnnk tou so much. we appreciate it. >>> and coming up if you looking for a reliable car she tried to say, you may want to avoid

honda will invest 2.75 billion in the gm subsidiary cruise.ncluding $750 million immediately in order to take a 5.7% stake in cruise and together honda and general motors and cruise will develop and build an autonomous vehicle. here is a teaser image they released today of what that vehicle might ultimately look like hard to make much out of that image there. by the way, it will be sold worldwide, though there hasn't been a taergt target date for the vehicle. this is the start uts a race between a number of auto makers and tech companies, many of them partnering up to develop and put self-driving vehicles out on the road you remember waymo start having the public use of its waymo self-driving minivans in limited capacity in the phoenix area by the end of the year. general motors says its self-driving vehicles developed by cruise should be ready for use by the end of next year. then in 2021 you haverd bored ford, bmw, working with intel. you have a number of other firms, toyota and uber working together a all looking to have some type of a vehi

>> well, i tell what you, i don't know i've been long gm for on and off but i've traded around a bitut a core procession for a couple of years if. i got rid of 14. "g" trace at five times 2019 if they make 6 times 2019 they have exposure to ev exposure to robo taxis i like the management i stay long. >> i agree but it's the same position -- i stay long. i've been in it a long time. it hasn't worked i've lost money. trades cheaply what else did you say. >> robo taxis. >> all the way down to zero. >> well. >> if you wait long enough at ford it may be zero. >> i don't have ford i like gm. the rate it's going, look, i think this stock -- it's fascinating to me because clearly it's cyclical. passed peak auto passed it some time that's been built in a while. this level -- this story is better than i thought it would be and yet this multiple -- it's not like -- >> this is about the consumer. and you know when you think about it guy said it 73% of the gdp is consumer when you look at what happened in the retail. >> can i finish. >> i thought you were done. >> let me finish. >> you put a butt

with: gm's president spoke bloomberg's david westin. mission is to deploy technology safely on a massive scale and having another partner on board that brings tremendous resources is another big step in that direction. point $25nvested two billion, honda is bringing $2.75 billion to the table and huge amount of resources. talked after the softbank investment, you set your goal was to have a real autonomous vehicle deployed in calendar year 2019. what does this deal due to that date? does it move it up at all? dan: that remains the goal. we are working as fast as we can to get to that point. the main item to deployment will be whether we are operating at the right level of safety and as soon as we are, we will be ready to deploy. this partnership with honda really accelerates some of the effort that will come after that and in particular, we are going to work together on a jointly developed purposeful autonomous vehicle itch will roll out in the next stage of scaling after initial deployment. david: you talked about the purpose built. wh

market overall, that even if gm sold fewer cars but for far higher price.hat is why they beat estimates and the stock saw this huge increase. christoph: wednesday was the last day of trading in october and overall it has been a brutal month for stocks. tell us why and give us an outlook. jens: yeah, what a month it has been. so, we did see especially high tech s stocks under heheavy selg pressure and for the month the nasdaq composite was down by a good 9%. even if we saw a little rally on wednesday and also on tuesday, it still was for the nasdaq, the worst month since november, 2008. so, basically since the financial crisis. the worst month in 2.5 years. there was a lot of talk about rising interest rates. some companies could not fully convince. that is why we saw a pretty turbulent month. christoph: the scary month of october drawing to a close. jens korte in new york, thank you. panama has begun issuing a new tourism card that will allow cubans to travel to the central american country as private citizens without a visa and buy goods. available to cuba

capital,ll of this new how does gm measure up?everyone wants to know who is in pole position in the self driving he there appears to be no leader yet area this makes the space more competitive. mike ramsey said this is a big vote of confidence in gm. as well as their technology. isry major car company working on this technology. someone has to break out of this waymo may still be ahead in terms of technology. there is also over, which got out of this race after there was an accident earlier this year. >> thank you so much. ahead we will talk about the roadblocks for the auto industry. we will continue with the association of global automakers next area this is bloomberg. ♪ markets open in 90 minutes in sydney. futures looking modestly positive. looking to build on the 3/10 of 1% gain yesterday. one of the out performers and what was a down day. is set tosentiment continue. >> it is 6:30 p.m. in new york. you are watching daybreak australia. lines report a overshadowedh again in u.s. oil stockpiles. attending u.s. sanctions on isla

better i've been buying more gm the last couple of months.on't believe the cycle is over >> you don't like this call? >> i think it's a good call. >> i hope he's right i hope it goes up. you're better off to go to a gm. >> i had to go back, i'm sorry >> that's where you need that psychological shift to the fed until you reverse that sigh kol -- psychology >> lots were purchased december 10 calls it doesn't take a lot to get an option 50 cents or 75 cents. to pop into the 10s, these options double or triple >> i would ask you to give me more but you'll do after that break. a sudden burst of options trades in a big box retailer. he'll tell you what it is on the other side the dow is off its best levels of the day the dow is up 109 points jpmorgan leading the way your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in

gm numbers will come out later next week. a have had issues with sales being down in china and in the u.s. in the quarter. gm is still making good money, but with sales being down, there will be pressure there. on the other side you have tesla. their first really big profits and it looks sustainable. they generated $881 million in free cash flow which is a big number for them. elon musk says they can do it again next quarter the cousin model three is up to fast production and has a lot of buyers. things are looking up for tesla and looking rough in detroit. emily: tesla and elon running a victory lap right now. when you look into the future of this market, there have been -- has been skepticism that tesla is not a carmaker like these on the manufacturers and they would than thele to keep up traditional automakers electric cars. does that look plausible or is tesla too far ahead? david: tesla has a really big lead here. they will sell something like 340,000 electric cars. when you add in the model s and ask, that is a lot -- a

vehicle what might that vehicle look like well, gm and honda put out a teaser image this morning. you might look at this and say what is that is it a truck, is it a delivery van? it's a little unclear at this point, as is the release date for when we might see this on the road but they say this week when it's ultimately built, will be sold worldwide. >> what we're doing is getting a purpose-built vehicle that's fully autonomous that can be deployed in a shared network for the transportation of passengers, transportation of other things and so we see a huge amount of opportunity and flexibility coming out of this. >> now, separately from this investment by honda and this new vehicle that they're developing with cruise, general motors is working with cruise to build self-driving vehicles like this one. this is a prototype that we had a chance to ride in in san francisco. they are working and testing these vehicles out in san francisco. it's still expected, according to general motors, to roll out and be available to the public next year. let's see if that actually happens. by the wa

as gm and honda partner up.ler president, jim press, are both with us to talk about how big of a game-changer this is potentially for the industry that's coming up on the "closing bell." >>> shares have been unable to hold the highs of the open but gm is an interesting story. >>> when we come back, jeff bezos and tim cook speak out we'll get to that next don't go away. at&t provides edge-to-edge intelligence, covering virtually every part of your healthcare business. so that if she has a heart problem & the staff needs to know, they will & they'll drop everything can you take a look at her vitals? & share the data with other specialists yeah, i'm looking at them now. & they'll drop everything hey. & take care of this baby yeah, that procedure seems right. & that one too. at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when your patient's tests come back... wow! record time. at cognizant, we're helping today's leading life sciences co

honda and vesting $2.75 billion in gm self driving cars. they are joining the autonomous vehicle spending spree joining us now for more on the self driving revolution. good morning. let's start with the big breaking news with gm and honda. it looks like gm made a pretty smart move by buying that in pushing through. into that self driving space. two years ago when they did this. the headline was a billion dollars and some were kind of scratching their head may be thinking that gm overpaid. but flash forward two years later. with this money from honda. in a soft pink. which they got a few months ago they are now valued at $14.6 billion. again, that's almost a $3 billion they're putting into it. honda really kind of gave those two companies had been in discussion about this. it has spent years and years trying to figure out a way to partner with auto companies around the globe they had been using chrysler advance. and they have a deal to buy jaguar suvs. and in 2016. they announced a deal to talk about the deal but nothing has come of that jus

gm's total vehicle sales fell 11% in the third quarter. this has been the pattern. a very unfavorable comparables to the last quarter and last year. joining us to explain is david welsh. we have seen it disappoint. explain why we are comparing with the quarter that is making us look bad this quarter. >> we did have big auto sales a year ago. there are some other factors. you have rising interest rates and inflation. if you look at auto sales for the year through august we are up about 1%. sounds like that's pretty good because the auto market was very good last year. this is solid moneymaking business for everybody. incentives have been higher. fleet sales have also been higher. been asust hasn't strong. earlier in the year the gm president described the mark to me as a little bit squishy. i think it is getting softer right now. there's competition from the used market. it's not a disastrous market by any stretch. it is just tougher for everybody to get the retail sales and good pricing that they want. tesla did some ok numbers this time around. certainly the late b

a big vote of confidence from gn -- gm. still at 3%. 7 this coming after vision fund put in another $200. take a look at what the president of gm had to say on honda's investment. the main item of employment will be that we are operating at the right level of safety, then we will deploy. this partnership with honda really accelerates some of the efforts that come after that, particularly we will work together on a jointly developed purposeful autonomous vehicle that we will be looking to roll out in the next stage of scaling after our initial deployment. shery: gm is now seen as a serious contender to googles waymo economist vehicle unit. that's it for this edition of bloomberg markets, if you missed out on any of our charts, g tv is the library function. go to our terminal and check it out. this is bloomberg. ♪ with firstk crumpton word news, senators on both sides of the aisle are blasting president trump for mocking a woman who accused brett kavanaugh of sexual assault. mississippi, the president attacked the credibility of dr.

maria: nice move. 10% on gm. got to love it. gm shares going to lift many boats this morning.tainly leading the dow industrials to the highs of the morning right now. all of those stories coming up this morning. our top story, constitution controversy. president trump says he wants to end birth right citizenship by executive order. that proposal is facing backlash from legal scholars and members within his own party. paul ryan spoke out and kellyanne con way answered his critique. >> you can't end birth right citizenship with an executive order. we didn't like it when obama tried changing immigration laws. i'm a believer in the constitution. you can't do something like this via executive order. >> many other constitutional scholars have said the 14th amendment has been misinterpreted or misused. there have been news reports about birth tourism, where women pay a lot of money to make sure their children are born here. the idea that it isn't happening, that it isn't going on by the thousands, the idea that it's not unique to the u.s. and to canada and the developed world, it's j

then today $2.75 billion going the gm, going into president here.estingly, a little bit hush-hush. the ceo did not give comment. he did say this is an exclusive deal. they are not going anywhere else. as for the president of gm, he -- theing this keeps investment keeps everything on track for 2019 autonomous vehicle launch. he also spoke to bloomberg television and told us that in terms of the $2.75 billion, it is good for his bottom line. in a0 million of that is direct equity investment. they are getting a 5% stake. they are bringing another $2 billion to the table in conjunction with that in terms of supporting developments and other financial streams that will accrue to the benefit of the overall mission. --think this is a partnership is what you heard him say just now and investors a great. look at where gm shares opened. up by over 5%. the biggest intraday pop since may 31. that is when waymo got $2 billion from softbank. shares closed up by 2%. they did pare some of those gains. every single time, gm gets more money, more infusions into its s

you know why gm is trying to do this.s the same way large companies want to raise the minimum wage, to drive out the smaller competitors. gm is one of the few companies out there that can scale up huge with electric cars. of course, they want government backing, but they also know they can drive out the little teslas of the world, because they can produce on a massive scale. this is all about the bottom line. if you let one corporation dictate to the government to help you out what company is going to do next, hershey comes out and tries to get the fda to approve chocolate as a drug to eat every day. >> [laughter] exactly. anything is possible out there. again -- >> gary k.? >> the words mandates, fees, fines, regulations throw them out the window. >> gary k., are you actually saying that companies would have a vested interest and can buy all politicians? >> yes. >> [laughter] >> and they do every day. why do you think the lobbying business is the biggest bull market in history? trish: why do you think donald trump is so

gm posted a loss last year. largely tax issues. it was a paper loss but with tariffs, none of these companies are doing well. the market is taking it out on them. tesla is whole another story. tesla is fighting a battle when they will become profitable. they're fighting a battle of corporate governance whether elon musk is up to the job as ceo, they are also fighting a balance sheet battle. they essentially have billion dollars of debt, particularly if the stock doesn't move much from where it is now, they will pay a billion dollars, more than a billion, a billion one next six months in cash. they don't have a lot of cash on their balance sheet. because of that what we do understand, bankers from major firms they are coming up with ideas, i'm not saying tesla is asking for it yet, not saying tesla is pressing the panic button but bankers themselves

good to see gm beat. i'm not a big fan on facebook numbers. i think they sandbagged. they have decelerating numbers. i think apple will matter a little bit. i'm hoping we put in the low. i'm not sure yet. charles: gary talked about a one-two punch. february was rapid rise of yields. fed would mess it up and trade war, march 22nd and 23rd. that was the one-two punch. a lot of people feel the opposite. one-two punch getting through the midterm elections and earnings. what do you think, jonathan. >> i think all earnings are pretty good. everything is great on paper. i don't think it was the trade war. rapid increase in interest rates. we're about to see if it causes it again. 10-year is going to 3.25%. that started global panic. investors are not confident the world can hand el higher interest rates. looks like buy on the dip moment. if we get back up to 3.25 or higher without stocks going down. that is sign of confidence in the market. charles: in today's session, we've seen it tested what jonas was talking about. we were up almost 400 points. gave up 100 after the wage

earnings finally getting the attention that they deserve, like gm reducing the s&p. the s&p 500, we will avoid having its 17th loss in one month. that was back in 1970. finally, let's take a look at the movers on the board. it is all about tech stocks today. microsoft, apple, amazon, facebook, all advancing by some margin today. one thing to note from microsoft, amazon, and facebook when it comes to earnings, the next one to watch is apple. david? thank you so much, and love. -- to up, justin is here tell us what you might be brighter than you think. live from new york, this is bloomberg. ♪ david: this is "balance of power cocoa in we are turning to mark crumpton for the first word news. we are power," and turning to mark crumpton for first word news. a statement from the prosecutor's office in turkey says that jamal khashoggi's body was dismembered and disposed of. they also said that talks with the saudi chief prosecutor have yielded no concrete results. turkey is seeking the extradition of 18 saudi suspects over the killing. the justice department says that pipe b

meg is honoring and we'll have m gms numbers.e market and talk about another wild day we have managing director and market strategist here along with cnbc contributor who is up at our stock desk to react to the facebook earnings as soon as they come it biggest winner was intell. ibm was the biggest loser. it is up 60% how did the rally feel to you? >> the market was conditioned for one of these >> only six days up in the month of october >> today's rally got it back exactly as much as we lost yesterday. we are kind of toggling around what we hope as opposed to making think new hedgeway. >> you heard him talk about how we feed back to back updates we have had exactly zero back to back up days this month. >> yes and there have been only a couple dozen such streets, 27 days in the history of the market so yes, you have due for something like this. it is not something you want to sfleez at. you need it to start with something like this. it is which wl this comes out. >> was there anything specific behind the bounce today? yesterday w

that talk about gm they're top selling suv.ere what's the mark? >> so look, the most expensive ones are the chevy tahoe gm and silverado those vehicles they're again the kind to load up to high prices and still a lot of those as well. they're older, though, silverado is brand new recently drove that myself and cooling into show room so that's getting there. this quarter, is really amazing that they've been able to bring so many profits out of it so quickly. >> the analysts was surprised at this report from gm. you remember not? >> no i was i didn't think they have enough of these in the pipeline and especially in the face of not just lower sales but higher -- higher fleet sales. interesting stuff. gary thank you very much for joining us as always thank you. right we've got 6 days to go until midterm now look if democrats win a majority in the house they are going to control sol really key committee i think that could make toxic politics even worse don't want to scare you but this is halloween my take on the democrats controllin

that values gm's cruise holdings at $14.6 billion what's the vehicle going to be built between gm andility. the two companies will work together to develop and build this vehicle for worldwide deployment and it's a shared use vehicle. now, we've got an image that general motors just sent us. there is no release date set for when this vehicle will be out on the roads. but this is clearly important for general motors not only in terms of its plans with autonomous vehicles and cruise holdings but collaborating with honda honda said, look we want to find who can develop the best autonomous vehicle. honda approached general motors on this deal we will be talking with dan ammon, president of gm coming up on " you don't want to miss this. guys, this investment from honda taking a 5.7% stake in cruise holdings comes just a couple of months after softbank's vision fund invested $2.25 billion in cruise holdings as well. there you look at shares of general motors as gm and honda announcing that they will be working together to develop and build an autonomous vehicle. guys, back to you. >> for an

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saic motor, 8% drop yesterday on gm motors, gm recalling vehicles. saic motor's saying that impact to them is minimal, so we are seeing the stock rebound and zhongan online, overweight to morgan stanley. david: one of the bigger stories going around, circulating hong kong, was the asia editor denied a visa extension. we are now hearing from the hong kong government, the chief executive herself saying a hong kong government will not tolerate any advocacy of pro-independence. read about it at the bottom of your screens. rishaad: let's get to sydney and capital investors. this is a story dominating headlines in hong kong, but to the bigger picture and that is the markets and everything seemingly going all the way down, we are seeing easing in china today but most asset classes having a rough time of it. what gives? >> you have heard that if you don't stand for anything, you fall for anything. at the start of the year, it was em, it isbuy em, buy the best price. if you don't have it in your portfolio, you are missing out. now it is the opposite. all you

honda will put $750 million immediately in gm self driving unit. investing $2 billion over the next 12 years. the goal is to build a driverless car to mass produce and sold worldwide. passenger car sales are on the decline. companies are betting self driving cars are the future of the industry. right now, it brings enormous cost and risk with no vehicles ready for the market here right now. >>> for the latest on tech, media and finance, we have a new place to go. the new cnn business. features interview was newsma r newsmakers and a driving business forward. cnn.com/business launches later today. >>> "early start" continues with the latest on brett kavanaugh. >>> i'm filing cloture on the judge kavanaugh nomination this evening so the process can move forward. >> a full senate vote on brett kavanaugh as soon as saturday. the fbi report on his conduct will be in the hands of senators in just three hours. >>> degrgrowing concern of the a military in the south china sea. even russia's actions pale in comparison. >>> and one officer dead and six others

that's more than gm, ford and if i at chrysler combined. >> i think it's aspirational.is the walk-up. they give you a preposterous valuation. last month it was valued at $2 billion with the toyota stake. he thinks the business has 20 to 30 times growth from where it is now. ride hailing is worth $50 billion? that combination and given their competition and how much they dominate the market, i think it might be pretty competitive. >> it's one reason the stock market has done so well. money is going to chase this. unlike gm and ford, government policy can undermine uber. >> the pro is, it's become so you bi -- so obiquitous, peopley i'm going to take an uber like they say i am going to get a kleenex. their whole business is the app. there is nothing to prevent someone else getting into the business, hiring drivers for more and charging less. david: the taxi industry in new york alone. >> people say let's xerox something or google. google actually keeps innovating its product and making it better. my problem is -- this is an argument for higher interest rates. the reason w

gm and ibm? >> i think they are fine.panies will have, especially ge -- ibm on not as worried about. i think ge has a lot of issues. that is something we are starting to look at. that is probably a year away for us. erik: so the bonds are not clearing it at the right price. >> still not cheap enough. erik: the outlook for the economy, how much recession risk do you see, to what degree do you factor that into the bond decision you make? do you need a wider margin of safety, cushion, then even five weeks ago when everyone thought everything was fine? >> the economy is fine. 3, 2, 1,e are going at for us, what we do, still money good. , as you haves issues, as the economy slows down a little bit, people are going to get nervous, but we will be able to buy that debt. i will give you an example of something we are doing. saw. about $40 billion of equity value. we are factoring some of that paper. people are coming to us and saying i don't want to take the risk that i will not get paid in 90 days. on tesla. aroundre buying that

that will buy honda a 20% stake in gm cruise.t to develop a self-driving vehicle that could be produced at a high volume and deployed globally. jeff bezos is now the wealthiest person on the planet according to forbes annual ranking of the 400 richest americans. he has network of $160 billion up over 75 billion from last year thanks in large part to amazon's soaring share price. the rankings worth than $100 billion ending bill gate's run on top of the ranking. he had was second with $97 billion. followed by warren buffet and mark zuckerberg and 259th, president trump. >> jeff bezos owes me a thank you. the time i spend on there. >> exactly. right? >> at the new york stock exchange, thank you so much, diane. >> thank you. >> still to come, hitting up your phone, fema conducts a test of the national alert system with a presidential message. message. new d-con. so d-licious mice risk their lives for it. now 10 times tastier to mice than the lead competitor. mice love it to death. this morning: what went down at this millbrae interse

david welch talking about gm, the second-best performer on the s&p today.last of the faang stocks to report their quarterly earnings tomorrow. for more, let's bring in mark gurman. we had the fanfare of the event in brooklyn with new ipads, max, as we're looking back to the newer generation of iphone x to drive the previous quarter. mark: that is absolutely right. everything they announced, that two umax and the new ipad, will have zero impact on what we hear tomorrow. the big picture for tomorrow is x.e iphone x s and xs ma joe: what do analysts expect and what will be the number determining whether investors will like it or not? mark: apple's guidance was between 60 and 62 billion for the fourth quarter. we're looking at estimates around 61.4 billion, so flat right in the middle. it should appease investors and analysts alike. what they want to know is the number for q1, the holiday quarter. right now we see estimates around 92, 93, upwards of $94 billion which would be a record for the holiday quarter. all eyes will be on that. caroline: all eyes remain

it is really hurting the market. >> we'll watch that and we'll get gm in a moment as phil says.'s get the opening bell here at the nyc s&p and cnbc at the realtime exchange big board is front door, a home service company spinning off from service master. really quick, jim, i am sewure o see research out of ipos making no money 83% of the first three quarters of the year. a higher percentage. one that's making money is down so badly today that's because they had alessening in the advance of number of people who used it the chinese ipos, well, we let them do anything in our ipo market there are tech company that grows so quickly that we are interested in. that's really not. biotech never makes money. that market has been nematodes i c anemic. >> it is going to hurt a lot of people for a long time >> did stitch fix belong -- >> you are talking about they have 2.7 millions. that's a lot of customers. but, you know they had 180,000 new customers as the previous quarter and this quarter that's not what you expect a lot of these companies that are amazon, let's say, the growth accelera

look for results from gm, yum brands, kellogg before the open.e, express scripts and fitbit at 8:15, we have the adp employment numbers at 9:45, the chicago pmi the markets called a bit higher. the dow up 103 points. the nasdaq up just shy of 1% with facebook helping to pull that higher. joining me now from new york is tim seymour of seymour asset management good to see you. >> great to be here. >> this will be the first day in october f we fini october, if we finish where the futures suggest, where we had two days of gains. was that expected coming into the end of the month that we were due a bounce as we round out the month? is that the only reason why we're seeing it? >> you may have put the reverse whammy on markets today. be careful there's no question we were in oversold conditions. there's no question if you had not gotten some of those china tariff headline rumors two days ago we might be stringing together four days it's not a huge surprise to see markets have a bit of relief there's some relief last night with facebook. apple is a big o

shares of gm up sharply after blockbuster results.umer flush with cash and ready to keep spending the streaming giant, is our urge to binge going to keep

neil: tesla's market cap is higher than gm? >> yes. i believe, gm has 50 billion-dollar market cap.uld check the math on this, tesla has like a 52 billion-dollar market cap. neil: the macro picture jeff raised for us, rising interest rates are generally not good for auto guys and not good for housing guys. i am wondering whether we over react to the rising rate thing, whether markets, latest examples of that, do we overreact or is there legitimate concern this could lead, still get higher, higher? >> it could. i think it's a legitimate concern. i don't think without massive raging inflation, you predict armageddon, five handle on 10-year. neil: last time we looked at 10-year note, bond market is closed for columbus day but go ahead. >> automakers have another thing, tariffs, cost more to produce a car because donald trump is engaged, because president trump is engaged in a tariff war. that hurts the automakers bottom line. they are factoring that into the stock price. neil: chinese intranssy against. who blings on that one by the way? -- blinks. >> there will be a compromise. the ma

boeing, caterpillar, gm, ford, there's a lot of optimism there is a lot of optimism.t the income of the idea here is that china could be next, a u.s. china trade deal, burying the hatchet. talking about some low stocks, you name some of them, it's also why eight out of the ten s&p 500 sectors are moving higher. even if you look at chip stocks and begin to break it down, i have a whole list here, you have video broad, and as you highlighted very strong as well on all of these trade sensitive stocks. boeing, caterpillar, harley-davidson even wanted to pull out and they've been moving in the green. overall optimism. >> we are going to be getting a new jobs report this friday in the estimates are for fewer jobs created that we saw for the month of august. it's the september report were looking at hundred 85000 jobs. unemployment rate of 3.8%. is that the next market moving event in your opinion. >> i think so, i think it will continue to reinforce the notion that just last week they raised interest rates for the last and they'll allow this path of tightening to take place

one recent comment that had some cloudiness over this was the gm said it would take a hit in china.lked to them about that. it is clearly a volatile environment and when we are watching closely. what has worked for us this quarter are things we can control. we have been intensely focused on cost. >> cost discipline there. they are also talking about possibly with the cut to tax for consumers of i percent. >> looking ahead, gm wants to refine its strategy and its workforce. >> they offered buyouts to more than one third of their employees. they offered 18,000 people. they are saying this could cost them $130 million. not everyone will take it. voluntary ifme in not enough people take it. end by they expect it to the end of this year and they will take that charge into the fourth quarter. the last time this happened was nearly a decade ago. 1900 people took the buyout. ceo has been trying to take down this major cost into the start of this year. >> thank you so much for that. coming up, we will be joined by a head of institutional banking to discuss opportunities in asia and beyond. t

. >>> a major announcement this morning from gm and honda.rtnership bringing them together >> and the big board of the new york stock exchange. another update when we can come back, next. >>> and in today's robots are taking over the world segment, amazon at it again. what it is trying to do now with a teddy bear. >> oh, my. right now as we get into gear, a look at the city as you are just waking up at 6:40. we'll be right back. >>> here's a look at our thunderstorm threat today. sonoma and mendocino. this moves over to the high country tomorrow. still a chance of a shower tomorrow. i'll show you that in less than 7 minutes. the big chance of rain along big sur coast. that will move southward into l.a. basin. here's a look at temperatures for the next seven days. tahoe, a chance of showers and thunderstorms today. showers tomorrow. look at the freezing cold lo 20s. highs in the 50s this weekend. >>> new this morning from our live desk, general motors and honda are now working together to speed up the deployment of self-driing cars. honda moto

. >> no, i mean i'm long gm. that's not worked obviously a long time. but ford did say they dropped the 2020 target tonight. i mean maybe people thought they would get there anyway, right. so the stock is still up i'd much rather have gm. it's not in the disarray that ford is. and it's ridiculously cheap as well i think with maybe a higher dividend i'm not sure at this price. but that doesn't even matter. >> is the dividend safe for ford. >> for gm yeah. >> i just interviewed an analyst on ford and he said the ditched is not safe. >> is not safe. >> is not. that's the opinion of one person that's out there. >> it's been a rumor and when you look back on ford you look back to the next support level being the '08 lows cut in half from here it's scarey but the other side of me is the trader type that when you look at a stock so beaten up down 33% pretty much everything is out there. you might be able to get a laggard pop in the name. >> for tesla for tesla we see a pop of more than 12% we saw a pop yesterday. >> and the day before. >> it's a three-day move