The daily business briefing: October 7, 2019

1. UAW: GM strike talks take 'turn for the worse'

The United Auto Workers said Sunday that the union's negotiations with General Motors had "taken a turn for the worse." About 48,000 UAW members who work for GM have been on strike since Sept. 16, demanding better pay and benefits, and more job security. UAW Vice President Terry Dittes said in a letter to members that the latest proposal from the automaker "reverted back to their last rejected proposal and made little change." GM responded to the letter by saying it was negotiating "in good faith with very good proposals that benefit employees today and builds a stronger future for all of us. We are committed to continuing discussions around the clock to reach a resolution."

CNBC

2. Joker sets an October box office record

Joker dominated the domestic box office with $93.5 million in ticket sales over the weekend, the biggest October debut ever. The Warner Bros. film's haul was the fourth-best ever for an R-rated film, according to Comscore. Joker's performance far exceeded analysts' expectations of $80 million. The film, written and directed by Todd Phillips, grossed $140.5 million overseas, nearly twice as much as expected. The latest DC Comics movie tells the back story of the notorious Batman villain, with Joaquin Phoenix portraying him as a failed stand-up comic named Arthur Fleck. The film's dark tone and graphic violence made it controversial, but Comscore senior media analyst Paul Dergarabedian said the debate "clearly enhanced" Joker's appeal to movie buffs.

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Los Angeles Times

3. Economists lower growth projections as trade tensions continue

Business economists are lowering their forecast of economic growth this year, largely due to the expected fallout from the U.S.-China trade war, according to the latest National Association of Business Economics survey. A panel of 51 NABE forecasters dropped their projection for 2019 growth to 2.3 percent, down from a 2.6 percent estimate in June and 2.9 percent growth in 2018. The panel forecast 1.8 percent growth in 2020, with little threat of recession in the next 12 months but the risk of recession rising to 47 percent at the end of 2020. "The rise in protectionism, pervasive trade policy uncertainty, and slower global growth are considered key downside risks," said Gregory Daco, chief U.S. economist at Oxford Economics.

The Associated Press

4. GE freezes pensions for 20,000 workers, shares rise

General Electric shares jumped by 2.6 percent in pre-market trading on Monday after the company announced it was freezing pensions for 20,000 salaried employees. The industrial conglomerate said benefits would not change for workers who are already retired and receiving benefits. The plan has been closed to newcomers since 2012. The company said it would offer 100,000 former employees a limited-time opportunity to take a lump-sum payment instead of starting to receive monthly pension payments. GE said the moves were part of an effort to cut its pension-plan deficit by up to $8 billion.

MarketWatch

5. Stock futures fall as China dampens hope of big trade deal

U.S. stock index futures fell early Monday after a media report that Chinese officials had expressed reluctance to make a broad deal to end the U.S.-China trade war. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were all down by about 0.2 percent. The moves came after Bloomberg reported that Vice Premier Liu He, who is leading Chinese negotiators in high-level talks starting Thursday, told visiting dignitaries his government's offer would not include reforming Chinese industrial policy or scrapping subsidies targeted in U.S. complaints. Economists are expressing increasing concern that economic data suggest that the tit-for-tat tariffs could spark a recession.

CNBC Bloomberg