alix: mary addressed how many jobs and supply chain are dependent on the oems.s this an opportunity for the supply chain to catch up in an opportunity for them to become more robust? >> i think so. they been doing this. we had three straight years where the supply chain has had to readjust and look at the amount of automation at some of these plants versus 10 years ago. it's more and we saw the numbers put out in terms of the labor cost and the percentage of their total cost. it's lower now than it was before. these companies have done a lot to right size their cost structure. it's a lot less painful for them to deal with this than it has been in the past. alix: there is also a narrative that all of this will be a huge boost to the nonunion automakers like tesla or toyota. is that a real argument? >> that certainly could be something to be said by that. at the end of the day, it would be the case if they had market share where the oems hit by the stryker not selling vehicles. there is some of that certainly. that's more e on thev side for tesla. i don't know if

government to consumers and to these oems. i used to be a european auto analyst and i can tell in europe you don't have this support from the government. the u.s. automakers stand to really benefit significantly. for gm it's $73 billion to consumers over the next ten years to buy evs. i actually think that the u.s. is in such a really well position. doing evs with battery makersin the u.s. in europe you can't do that. why? they have to export to china and they don't want to anger the chinese and they're allowing the chinese to come in. i think the u.s. oems are poised to do very well with electrification thanks to the ira. >> why don't you react to what tom said and specifically, i don't mean to put words in his mou mouth f i'm hearing him correctly he thinks a strike might not be a mitigated disaster for the oems. >> tom, i would sort of disagree with that premise. i think really in some sense it depends on how long the strike lasts. if we're talking about 30, 45 days, 60 days and don't have a contract that leads to substanti

the uaw is in talk with the oem's ford spared from the talks. caroline: let's get out to someone who knows about the auto industry. how will this affect the ev transition? we have not seen a president joined the picket line. how important is this and would it means to ongoing negotiations? >> that remains unclear. he is casting his lot with labor. we have seen a lot of labor unrest and activity and it feels like labor is on the upswing and the president clearly feels dovetails with his message about better wages for workers. it remains to see if there are breakthrough in talks because the automakers and the union seem to be at loggerheads. ed: ford has been spared from the expansion of the strike. yesterday evening the union was upset with ford about idling plants. what is the latest tengion -- latest tension? chester: it is due to the expansion of the electronic -- the ev's and it was with a leading chinese battery maker. the reasoning is unclear but it comes at a delicate time with the uaw talks. it is something the uaw has objected to. they s

or the three major oems and the uaw going at loggerheads. everyone else plays a backseat to that, but when you think about the supply chain challenges, the smaller suppliers and the private companies in particular, they don't have that kind of leverage on the oems. if their costs go up as they are from a labor perspective and the cost of goods perspective and absolutely from the cost of capital perspective and you throw the three things on, you don't have the ability to pass the costs on to the oems and they won't sustain it or tolerate it and you have a problem that you go further up into the private companies and they get weaker because of the elements of the perfect storm and they don't necessarily have the staying power, and if you keep in mind the dynamics over the last few years where companies have had very ready access to capital and very cheap cost of the capital and through covid an injection of even cheaper capital to sustain smaller businesses and that doesn't allow companies it survive where the financial health is deteriorating

we talk about the lost wages there in the next category we look at is losses to the oem's less the wages they are not paying and we look at very conservative industry multipliers, losses to dealers and consumers and that's where we get that total of potentially over 5 billion in 10 days. jon: what will you be monitoring to determine whether this gets to 10 days and whether we go beyond 10 days? a consultant was cited who said if you get to halloween and people are still striking, there will probably be a growing conversation among the workers about the need to get back to work. what will you be watching closely on size they give you an update on how things are playing out? >> to me, inventory is a major important indicator to be looking at. inventory varies greatly among specific makes or models and among manufacturers. if we look at a rough average, we are hovering at about 55 days inventory. that's different from different data sources but this is about 2 /5 of 2019. we have been attempting to estimate loss of units. we are looking at a little under 10,000 units per location for a 10 d

we have to see oems go back to the table. right now, it looks like a soft start. i would say stellantis has the benefit of higher profitability and diversified earnings space. 80% of the earnings are in north america for ford and gm. >> philippe, thank you. >> thank you. >>> more ahead on "worldwide exchange," including the one word that investors have to know today. >>> plus, more from our phil lebeau who will speak with striking workers on the picket lines this morning. >>> why instacart is taking keen interest in the monster debut for a.r.m. >>> later in the show, disney ready to deal? moguls line up for abc and other assets. what disney is saying about a possible sale. a very busy hour still ahead when "worldwide exchange" returns. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity to guide you through a changing world. ♪ icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot. power e*trade's easy-to

if it goes extended to your point, carl, i mean, listen, there's actions some of the oems could takeortage, but your point about moving products and plants out of the country, that's going to come down to if the oems are forced for some of these nonwage demands such as pensions and health care improvements, et cetera, then the oems are going to be rationale and look at their competitiveness and if they can't be competitive in the u.s. they will have to move somewhere where they can be. >> well, mark, i mean, you know the cost structure of ford certainly and probably have a good guess at the others. what can they take here in terms of not just the wage increase but the overall compensation when you include the benefits you were describing? >> it's a little bit of a moving target because traditionally the automakers, the detroit three, were competing against the import brands which are nonunion. right now, all-in wages for the detroit three are about $65 an hour versus $55 at the nonunion plants. any movement upwards is going to increase their competitive gap. then you lay over tesla w

and the chinese oems and makers are also well prepared for that to, to, after all the goals. they're all already many small electric cars on the road in china. we'll say that again to the future of mobility is exciting. china in germany, it will certainly play an important role for some time to come. and i don't think it's the last time i'll drive through munich and a chinese car. the cars, car cars. take another phenomenon with millions of unique stories. that could be in a brand german coffin. we need you guys wherever you are. however, up here with the question is now, where should we go? right to wherever you are and send us your stories and your crazy car into vs. let's catch up soon. on the attack killer, race cars, one of the specials, gleaming classics, the national autumn, easy and detailed style north of frankfurt, exhibits of $150.00 choice vehicles. the auto accident i left the car there, all authentic technically all in good condition and all generally rode where the light, you know, of course there in the museum. so visitors can view them all, but we maintain th

by default, the chinese oems social media platforms that define was excessive and that it had already fixed the privacy issues. in the head of thailand's election, winning move forward, he has resigned. he told them you have heard right. let the reform is potty to 1st place in may selections, writing a wave of anger at the military and boy of list establishment. but he was blocked from forming a government by conservative lawmakers and later suspended as an m p may call. the united nations is urging european union countries to cooperate to help the thousands of migrant stock on the island of land producer close to 7000 people ever arrived on the island in recent days. a number that exceeds land produces population. many have since been moved to the mainland, but thousands remain. the un says you countries must share responsibility for housing. refugees to take the pressure of italy, of the lining up in the mid day heat. waiting to be transferred to sicily or the mainland. the migrants arriving by boat and the italian island of lon producer, have high hopes for their futures in europe.

we don't see the big oems doing that. you have a capital intensive business. you have something extremely overvalued, an increase in competition with 21% of revenue coming out of china. china's ev companies are killing it there. 50% of tesla's growth came from china last year. in the last quarter, rather. now is it going to work out? it probably won't. it's sort of lunacy. if i were xi, i would go after tesla next and shore up my auto companies internally. >> at least your risk is defined. >> steve, thank you very much. >> we have a news alert coming from the fed and the new report on america's balance sheet. u.s. household net worth rose to $154.2 trillion in the second quarter. also, the fed says debt rose at a rate of 12.7%. new details about the government balance sheet. coming up, the committee debates if green shoots are ahead. what david solomon had to say about that coming up next. is this your plan to watch the) game today? (hero fan) i have to watch my neighbors' nfl sunday ticket. (josh allen) it's not your best plan. but you know what is? myplan fr

. >> it is the highest standard market for oems.o be here and make our product available to the customers in this market will help us further penetrate the continental european market. >>> and novo nordisk de-thrones lvmh as investor appetite for weight loss drug soars. >>> good morning. welcome to "street signs." just in the last couple minutes, we have been getting the final pmi numbers for the month of august in eurozone. let me tell you, they are worse than the flash. it is not positive. the final composite pmi for eurozone is 46.7. lower than the flash of 47. it is suggesting that the downturn is deeper than initially thought. just to give you context as well, the number today is down from july's figure of 48.6. it is the lowest level we have seen since november of 2020. quite a stark downward revision with the final pmi numbers for the month of august. in terms of services, the eurozone august figure came in at 47.9 against the forecast of 48.3. services also disappointing to the down side here as well. many economists have st

the implication is they cannot be competitive based on the demands from the uaw, oem, dynamics and it'so a battery. so interesting. >>> coming up, one step forward, two steps back. we've got your china playbook next. >>> and cnbc is celebrating hispanic heritage. here's shopify's general counsel. >> one of my most profound does sotomayor, i was able to clerk for her. i remember everything she taught me from an academic how to be a good lawyer standpoint but from a human empathy standpoint, and really paying it forward is an important part of how we all partake in a community. ♪ is it possible to fall in love with your home... ...before you even step inside? ♪ discover the magnolia home james hardie collection. available now in siding colors, styles and textures. curated by joanna gaines. >>> welcome back to "fast money." a slew of headlines out of china hitting the air waves as the country prepares to kick off a big week. apple raise concerns over new rules that could restrict foreign apps in the country. china's trade council asking china to reconsider the tech ban. let's bring in cnbc

>>> arpm is open trading above that $51 pricing, up 9.7% as arm oems for trading. it was taken private by soft bank, selling about 9% at $51 a share at the high end of the range and currently trading up from there. pricing ipos is more of an art than a science. you also don't want to see the stock price decline. this is the very start of the opening. right now opening up about 9.6%. not too bad for an ipo of this size. >> you've been reporting at least five times oversubscribed. a well supported deal from customers of arm who said they would buy shares in the ipo -- apple, google, nvidia, et cetera. you had a well-supported deal, a lot of eyeballs on this to go right to continue that dethawing, if you will, of the ipo market. >> $735 million worth of this float was already claimed by its customers, apple, nvidia, amd, as you mentioned. the rest of it, worth about $4 billion. that was up for grabs by large institutions. and i'm told in talking to investors hedge funds got pretty slim allocations in this deal, which is usually a decent sign but oversubscription numbe

we know that the oems have idled some facilities as well and, i guess, temporarily furloughed some workers that are not involved in the strike in the past, you know, week plus. what's going on on the supply chain side. are the auto parts manufacturers feeling the pinch already, too? >> at the tier one level, the largest of those parts suppliers, not yet. keep in mind, 85% of the production that the big three do in the united states, that continues. that has not stopped. you still see plenty of demand for parts from the suppliers, et cetera. the big question is going to be when you get to the tier 2 and tier 3 suppliers, there may be one or two out there that will start to say, okay, how do we adjust to this if this strike goes on for a long period of time? those are the smaller, privately held companies, which may have a handful of employees and they do a specific part that is part of, say, a transmission. that's where you'll start to see the real pain. >> okay. phil lebeau, thank you. >>> speaking of strikes, the writers guild reached a tentative deal with major studios and streamers, put

market in our nation is really important to the economy whether it's the supply into or the direct oemons of the industry out of a 30 million- ton supply we have. we are not overly weighted there and that will continue to grow. when you can supply our with the cleanest steel, the highest ability set, we are going to continue to generate and move more into that end market as we move forward in the years to come. >> okay. i am concerned there is going to be -- a whole new tariff situation. we talk about those with you guys forever. we know that if we do not prevent cheap steal, normally from china coming in that we are not going to have a defense that's even able to defend whether it be ukraine or whether it be -- taiwan. how do we feel about the 25% tariff trying to make -- so that our allies aren't hurt and still keep back the chinese steel which has been very difficult to do. >> yeah. look. that is a -- a condition we are going to continue to work for again. it started long before -- and john before i. we have to continue to advocate. the over supply is significant. five, six years ag

but wages are likely to be higher than what's offered by the oems, at least what we're assuming in our research. >> have you changed already the models for margins and profitability? >> you know, we're assuming some of these costs in our numbers already. we assume that if it's just a couple billion dollars, that there are offsets. gm earlier this year has talked about a couple billion dollars of cost saves that they've generated. we assume part of this is a proactive measure to address some of the higher labor costs they're going to be taking on. anything more than that would be an incremental headwind to our numbers. >> so, i was going to ask, can they offset it with higher prices that consumers pay for autos or are we seeing enough weakness in consumer spending where they don't have that kind of lever to pull? >> we think prices are unlikely to go up. there's probably go to be some price declines. really, prices have not cracked from, you know, the highs we've seen. when you layer on inflation -- interest costs, the monthly cost to the consumer is quite high. you're dealing with mont

adam jonas put out a note from morgan stanley saying he wouldn't be surprised if we start to see more oemsthat's gm, ford and stellantis, pausing their investments. not because of the uaw negotiations going on, but just because there's a moment here where they have to analyze, okay, can we do this competitively, which is the word that ford used ford used the word, we have to assess if we can competitively run this facility. what does that tell you? >> trigger words. >> the uaw put out a statement minutes later saying here we go. you're trying to shut down a plant before it's even open. this is another case where we want to transition to evs. you've got to work with us clearly that's a sticking point between the uaw and ford >> well, been standing here a little bit, not as slong as you not seen a lot of evs roll through. tyler, we have a big show tonight. we have michael moore on i wish -- >> he has a lot to say. >> roger and me, documentary maker, i wish he would be here in person. we have congress folks i'll wade off in the crowd drop the name of phil lebeau, i'm protected. we'll talk to

. >> so, the latest offer from the oems still the 20% over the course of 4 1/2 years.n in the hands of the uaw and have you heard anything about potential response to that? >> ah, we have heard there's been no response from the uaw. and if there are talks, we're not getting any sense that there are legitimate talks going on this afternoon. both mark royce and jim farley expressed frustration that they have extended these offers to the uaw, most recently yesterday and today, and the feedback from uaw president shawn fain, well, they heard some yesterday on facebook, haven't heard a whole lot today. and from their perspective, you know, they're not going to say that shawn fain is planning on a strike and is not really negotiating in good faith, but you can read between the lines, melissa. they don't believe that this is going to get resolved by midnight. that's my interpretation of the comments they made. they would gladly sit down in the next few hours and if they can hammer out a deal, they would do it. but the feeling that i get from talking with executives is, it's n

the fact is the oems put a very substantial offer on the table. and they have to compete. future. and they have to compete on a national stage. look, labor and management, labor and companies built michigan, they built our country, they forged agreements before and we're hoping that it happens real soon that they forge a new one. >> the outsized profits that the uaw keeps pointing to, are you confident that these -- that a -- you would need these outsized profits, obviously, to give increases of 40% most likely. are they guaranteed? they're gas guzzlers, f-150s, suvs. if we're transitioning to evs, where -- those are loss leaders, losing $4 billion or whatever, how do we know the government isn't going to end up subsidizing these eventually and taxpayers subsidizing these wage increases when the companies can't compete. can't you see that playing out that way, again, glenn? >> i can, but it won't. and i'll tell you one of the things we have seen in the industry from the big vehicle manufacturers all the way down to the small companies, 2008, 2009, they're operating with th

clarity, getting through this, i mean, the reality of the bid ask on the labor costs between what the oemsa pretty wide bit ask. but this uncertainty, if you look at gm, down to 32 bucks, looks like, you know, it seems like you've got a very strong floor here and let's hope so. this is a stock that's been nothing for the last two years. what's not good for the automakers, there's no question this strike is going to hang over for the last six to eight weeks, used car prices have gone down for 12 straight months. and that's a dynamic that people are not really, you know, people talk about the age of the fleet that's on the road and how people need to definitely buy a new car and this and that, but used car prices have been very supportive in the past and this correlation is not good. >> we talk about automakers all the time, we should spend more time talking about some of the auto parts, electronics. that stock, i think, few months ago, probably in march, all-time high, 170. you look at a name where gm is basically flat over the last five years, this stock, lower left to upper right, reasona

nikolai: our business with chinese oem's has grown. our footprint. it might be an opportunity. oliver: i was reading note that ubs out that gave a stark look and a lot of the chinese companies make a lot of things in house. is that a concern? nikolai: we are used to competition. we have some new competitors in the market and we are competing with in-house development and production. if we offer more value they will come to us and will be more than happy to offer our products. if others can do it better, then we have to in to the fitness gym and come more competitive products and values to offer. so we are adapting to the new reality. oliver: from what i hear from executives and a lot of tech companies the future of the car seems closer to the iphone mix with your living room. nikolai: i mentioned the living room. that is what the consumer wants. they want it more comfortable. you have the feeling it is entertainment on one side and you are getting comfortable, safe, more sustainable. the car is becoming a more intuitive part. it is les

>> well, you're absolutely right, we have five auto oems in the state of indiana, three of which are, toyota and subaru. when you think of the first subaru investment in 1986, and the hundreds of millions of dollars that has come into our state to grow subaru on the soil, and 10 years later toyota came, they have originally invested about $700 million, they are up to 6.7 billion. then honda came, in addition to cilento's and general motors. i hope we can avert a strike. i hope they strike a balance and there is no collateral damage. we want to continue to lead the future of mobility and do it from indiana. it's been the case in the past. we hope it will be in the future as well. we know it will be if we can make sure there is no collateral damage that comes out of any potential strike. shery: the risk is there. haidi: i am wondering if there are contingency plans. what is the plan if there is a worst-case scenario? what do you see potentially stacked on the state? >> well, it would be very impactful to say the least. we've got thousands of members in our fort wayne truck went -- plan

>> actually a good note about some of the japanese oems and they're going to benefit along with someecome political in a hurry as trump goes to speak to michigan union workers next week. pressure on the president to maybe picket with the workers. >> there are a lot of people who feel the president could do some sort of emergency unemployment insurance to help the strike fund. >> the automakers are in the midst of this seminal transition that is costing an enormous amount of money. the administration is very much behind that transition then what, you'll increase labor costs so much that you're not going to be successful in making that transition? >> exactly what jim farley, the ceo of ford will tell you. >> they got hole load out as we moved everything out of the country. >> i think concessions during the bankruptcy. >> i think 20% improvement in 401 kfrments and a cola clause i think is pretty good are they supposed to give 80%? >> there's got to be common ground somewhere, right? >> yes, there is common ground all i can tell you is, my trust owns ford and common ground means -- >> s

contacted oem or automotive producer to get the product, i got to my product and my product are not obligated on this. i'm obligated to deliver the product. it seems like we are having people contracting deliver products based on negotiated price, that's just from the supply chain factor. i know with the wholesalers we've had feedback already in the bona fide service fee, can you clarify about concerns you have with the provisional? this is a discussion we are trying to solve a problem and we are interested in your concern moving forward. >> i will be brief. i would say we respect the fact that this committee and others over the last several years have focused a lot more on the entire supply chain. they have begun to question about the channel by different stakeholders. as i've said, they are legitimate fees and i reinforced that because i distinguish access fees. they are charged by significant high percentage list that impact decisions either in the insurance market or hospital setting. we charge for legitimate fees required in has to be fair market value, regulatory buying the fair market

the traditional oems are troubled right now, and i think ultimately, you know, they're going to makeuy software from tesla. tesla is going to be like the -- like intel inside of a microsoft computer. tesla's going to be everything that makes a car, you know, all the inside is going to be tesla. that's what's ultimately going to be licensed. >> are you buying any additional tesla or spacex, or have you kind of maxed out where you feel comfortable with your fund, which is a diversified fund? >> in the funds that i manage, i've been maxed out. we had -- when the stock went up 20 times after we bought it. >> you sold. >> we sold for clients about a quarter of the shares, i didn't sell a share personally. i only invest in mutual funds normally, i made an exception in this instance. i was the last in, the last out, and i won't sell a single share for myself until we sell all of our client's stock. and as far as buying more, i would buy more if i could, but i can't, and other guys at our firm think this is a great price. when they introduced this model 2, they're going to have the cost half

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