nearly every component is negative with the exception of monsanto, which is up about .5. material, still up about 4% for the year so far something to track and watch that materials sector etf, the xlv trading with relatively heavy volume. that does it for "squawk on the street." let's send it back downtown for the start of quack alley. it is 10:00 a.m. in chicago and 11:00 a.m. on wall street and "squawk alley" is live. good wednesday morning. welcome to "squawk alley."

john fortt, melissa lee and myself here at post nine as we are watching the markets down about 55 points. the president meeting with the secretary general of nato as diplomatic tensions with russia are on the rise. our kayla tausche is standing by. >> reporter: since inauguration, president trump, vice-president pence and defense secretary mattis have all expressed the u.s.'s strong commitment to nato. president trump in his meeting with nato secretary's general is expected to do the same. senior national security council officials describing that commitment as iron clad and saying that today's meeting will cover the need for allies to incompetent crease defense spending, a swift review of nato's involvement in afghanistan and also the approach to russia. nato countries serve as a buffer zone to russia. the president's approval of montenegro's expansion in nato is an event that will put russia on edge. officials would not comment on

the timing of the president's decision to approve that request. they have been under krr consideration since 2010. they would say the door remains open to other countries that want inclusion. stolenberg said at no time since the cold war has the nato alliance faced greater challenges to our security. the defense spending issue has been one of particular interest for president trump. officials echoed his comments that allies are, what they said, chronically underinvesting in the alliance. in 2014, members set a goal that defense spending should reach 2% of gdp within 10 years. few countries but the u.s. and those with contracting gdp actually meet that goal. officials said that there would be no dollar amount that was going to be expected by those countries to actually make that commitment but that nato reviews that every five years. when asked whether the campaign rhetoric by the president that nato was an obsolete institution

would make relations between the two leaders awkward. they said, no. they shared a phone call in february. it was a good phone call. president trump has committed his support to nato. carl? >> kayla tausche, busy week in our nation's capital. a warning from the world trade organization as the wto forecasts global trade will o grow 2.4% this year. joining us is the world trade organization general. it is wonderful to have you today. on kayla's point as we are in this new mood of global nationalism, i'm curious, does your report have any signals as to whether or not trade will suffer as a result of that. >> absolutely. i think one of the major points of the report is the fact that in number that we issued, 2.4, is within a range of 1.8 and 3.6. we point out in the report that there are a number of risks,

political risks, geopolitical risks, economic risks, all of those tend to put pressure on the number to be on the lower end of the range. that includes uncertainties. that includes potential change in fiscal policy, monetary policy, commercial policy. there are a number of unknowns up there that are weighing in on the numbers. >> at the same time, roberto, the range has been revised upwards in terms of the upper end from 3.1-3.6%. where does that additional optimism come in? what is that driven by even though you are saying there is downward pressure on the 2.4 number. >> for us to move towards the upper end of the range, we need the right policies in place. so one thing, protectionism shouldn't be there. we need a more open environment for trade, reducing costs. we're doing the best we can here to ensure just that. also, the right mix of monetary

and fiscal policies that allow for the economy to grow. at the end of the day, if the economic forecast for gdp growth is fulfilled, we should be in better shape. >> roberto, this report argues that globalization is good, that it helps to drive economic growth both in advanced and developing economies in recent years but also argues that globalization has left too many individuals and communities behind, specially in advanced economies. my question is, do you address whether and how to rewrite the pitch for globalization in this era when so many seem to be reacting against it? >> i think the most important thing is to recognize that there is a sentiment out there against globalization. you cannot ignore that. now, the reasons for that are many. clearly, disruption by trade is one of them. it is a minor one.

i think the biggest factor there is new technologies, innovation, 8 out of 10 jobs that are lost today in advanced economies is lost to new technologies. it is not lost to imports. so how do you handle that? everything is mixed together. i think this sentiment comes with a bunch of factors in it and we don't really -- we never really took the time to examine that and see what is driving that sentiment and how to handle them. a lot of economists have argued that supply chains already got as extended as they could be a couple of years ago. as a result, you saw quality control break down in some very high profile instances and that the politics of this are simply catching up to what companies realized a while back. do you think that's true? >> i think clearly the global value chains are peeking. we are at a point when most

multinationals, most producers are looking at ways of diversifying their production, how to maximize the potentials in different countries. that clearly is the situation. that doesn't mean, however, that we are entering reverse mode. i don't think that that's the case. there was a big leverage on trade because of the expansion of the global value change and now that effect is leveling out. it doesn't mean, however, it is going in reverse. it simply means that the potential for diversifying even more the chain of production is more limited today than it was before. >> in terms of technology and the disruption to the workforce, roberto, i'm curious what you thought of the comments made by our treasury secretary, steven mnuchin when he said those disruptions are more like a

50-year event, a much longer time frame. in your view, should we start planning for it right now? should we consider such dramatic steps as a universal basic income? >> i think it is absolutely legitimate to say this is not new. this is not a new phenomenon. that is absolutely right. we have been living with this since the industrial revolution in the 19th century. what has changed is the speed of those changes and the impact that it is having on the labor market. today, in advanced economies in the u.s., for example, nearly half the jobs are under threat of automation. in developing countries, even a higher number than that, about two-thirds of the jobs are under the threat of automation. that is happening very, very quickly. while in the past, we had several years to think out policies and how to react, today we don't have the luxury of time any longer. we have to do it as quickly as possible.

>> fascinating discussion. it has huge implications for all of us around the world. appreciate your time. roberto asaveto. the ceo of united speaking out as his company face that is firestorm surrounding that video. why one ceo says tesla could be one of the great ponzi schemes of all time or it could all work out? we'll hear what any says. we will discuss it with bob lutz and bob nardelli when "squawk alley" continues in a moment. es. because as we live longer... es. and markets continue to rise and fall... predictable is one thing you need in retirement to help protect what you've earned and ensure it lasts. introducing brighthouse financial. a new company established by metlife to specialize in annuities & life insurance. talk to your advisor about a brighter financial future.

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my first reaction to both issues are to get the facts and circumstances. my initial words fell short of truly expressing what we were feeling. that's something that i've learned from. the expression of apology specific to the folks i have mentioned before is an important part of a conversation like this. again, that shame and embarrassment was pretty palpable for me and for a lot of our family. >> that was united ceo, oscar munoz in his first television interview since the shocking video. munoz and united under fire for their handling. former chrysler and home depot cdo and bob lutz, gentlemen,

good to have you. we have two bobs on the set. i'll call you by your last name. mr. nardelli, can you see why oscar munoz came out with that initial statement where he didn't simply say i'm sorry? >> physical an interestiit is a. with all of the disruption that's happened over the last couple of weeks on every airline, i think passengers have to be patient, they have to be measured. there are going to be situations where they are going to have to bump passengers because it is important to get the crew on-site to be able to lift the next plane where you have 400, 500 people depending on the size of the plane ready to go. i'm not sure it was handled appropriately but i'm not sure the passenger acted appropriately either in this situation. >> regardless, mr. lutz, you see a passenger on your plane getting dragged off, physically taken off an aircraft, a paying customer, don't you just say, i'm sorry, even if the plane has

a right to do that, even if legally the airline can do that. >> i'll tell you what. for me, credibility-wise, it's a stretch that p he should say, you know what, let's call the cops on this guy. the cops came and said, let's just beat the crap out of him before we drag him off the airplane. i'm sure it didn't happen that way. nevertheless, as bob said, there are situations where you realize that the p.r. damage is potentially so bad that you just quietly lay down and say, oh, i'm terribly sorry, i'm terribly sorry. you never try to tell the other side of the story, because now you are being defensive but i'm not sure there is another side of the story. the whole thing is a tempest in a tea pot. it can easily be solved. bob and i in our automobile career both had to deal with warra warranty situations. if a customer is dissatisfied

and it costs a little bit more to make them happy with your warrant claim, what's another $100, $200. it's a customer for life. to cut these auctions off when you are trying to get a passenger out, if $800 won't do it, try $2000. if $2000 doesn't do it, try $4,000. finally, as i say, offer him a brand new chevrolet cruz. it's still cheap. >> that's munoz' point is empowering some of these gate agents. >> i wonder if booking, overbooking as a revenue practice is in peril and what that would do to load factor pricing? >> here is the situation. i was in line the other day and offered $1300 to bump. there were people raising their hands saying okay. we will book you on the next flight. that was causing a lot of the rebooking situations. you have 10, 15 people that took the money, told they were rebrooked but that plane was

already booked due to the situation. so you just compound that but the airlines have got to get people on site to get some lift. it was a little bit of a snowballing, compounding effect we saw over the last couple of weeks. >> is it possible we are in a new era with real time communication, twitter, video on smartphones where there is pressure to have some kind of reaction if you are the ceo and have it more immediately perhaps before you get all the facts. >> what's happening with typical corporate america, the situation develops and they have a big meeting with the ceo. they go through alternate scenarios and call in an outside p.r. expert and the whole thing is vetted, discussed, rehearsed and you finally get a reaction. that doesn't cut it anymore.

in an age where the president of the united states is daily on twitter he c twitter expressing his opinion for better or for worse. a corporate ceo can no longer do the finally owned, carefully massaged messaging we were used to in the old days. >> that cycle is really compressed. >> every cycle is. you have to be fast on your feet and react correctly with your gut now. >> autozone ceo taking a swipe at tesla saying it's value is inexplicable. either one of the greatest ponzi schemes or working out for investors. tesla overtook gm as the largest automaker in the united states. bob, i know where you stand on tesla. >> i am a well-known tesla skeptic. >> it keeps defying expectations. >> sometimes it is levitating.

elon musk is the greatest salesman in the world. he paints this vision of an unlimited future aided and abetted by some analysts. it is like elon musk has been beamed down from another planet to show us mortals how to run a company. the fact is, it is a constant cash frame. they are highly dependant on federal, government, and state incentives for money, which constantly flows in. they have capital raises all the time. even the high-end cars that they build now cost more to build than they are able to sell them for. mercedes, bmw, volkswagen, gm, audy and portia are all coming out with 300 mile electric luxury sedans. i think they are doomed unless somehow the laws that you have to have more money coming in than going out. >> they are a start-up , though.

>> what does doomed mean? >> their stock price comes in, they go out of business and have regular competition like other compani companies. what do you mean by doomed? >> at some point, their up side on pricing is limited. everybody else sells electric vehicles at a loss to get the credits to be able to sell the sport utilities and the pickup truck. that puts a ceiling on your possible pricing. if he can't made money on the high-end model ss and xs, which sell up to $100,000, how in the world is he going to make money on a $35,000 small car? i have news for you, 42 years of experience. the cost of a car doesn't come down proportional to that. >> so, bob gardelli, do you see any possible way this works out for tesla, keeping in mintd td are not just about cars? they have in-home batteries and solar panels on the roof?

sometimes the stock price and the fundamentals end upcoming in last. >> first of all, it is an honor to be on set with all of you but more importantly an icon in the auto industry, my good friend, bob lutz. let me take the other side of that comment that michael jackson made. i don't think is this is a ponzi scheme. here is what i do think. i do think mary bauer and general motors is woefully underrated relative to the performance and what she has brought to this industry. she took a hard line on quality. she stood tall and has raised the bar for the auto industry back to the consumer. consumer warrant with the ignition key and so forth. she is continuing to drive the reliability, the durability of the gm fleet. of course, bob had set the tone relative to design and aspirational gratification for the consumer.

more than focusing on tesla, i think gm is woefully underrated. general motors and mary should get a lot more credit than they are getting today. i think bob makes an interesting point. if you any about what president trump is doing with cafe standards, i'm not sure the electric vehicle is going to give you the offsets that no longer will be required as a result of this phenomenal demand for suvs and trucks. the highest margin. if you look at fiat/chrysler, 90% of the operating profits come from jeep and the ram truck. >> in terms of cash, they are burning a lot of cash but the start-up mode and the trajectory at which they burn cash won't be the same. they won't have to continue building a gig ga factory infin nigh tomorrow. in terms of subcitities, most of the people that reserve a model 3 are doing that without any government subsidies, because they run out.

they are still willing to buy that car. >> we'll see, we'll see. if you have a situation where the cost of producing a car, labor and materials, is higher than your sale price, your business model is flawed. it is doomed. it is going to fail. i will guarantee the only difference, the reason for this inflated stock,' l elon musk, a but look at the battery plant in my estimation is a joke. there are no cost savings by making a lithium eye on plant bigger than other people's lithium ion plants. making them is a fully automated process anyways. whether you have full automation in a small building or ten times full automation in a big building, you are not saving any money. solar city is a disaster. to answer bob nardelli, what gm

should do? gm should say, we are not going to colonize mars, we are going directly for neptune and saturn. >> the other point here is as we continue to gain energy independence, fuel prices are down, another record-setting year of driving, the best performing retail was auto parts. i'm not sure the need or the competition. again, the tesla is a little bit about status. it is about being brag doecious. i have got one. if you have a family, if you talk to the owners and you have a family and you want to drive on vacation, you are going to have a hard time. >> you want a mini-van. the 1.9 litre combination, continuous regeneration is probably more appealing now on an interim basis. we'll get there. not in the short-term. president trump also speaking out this morning saying he still wants to tackle health care before getting to tax

reform. a new health bill is currently being circulated to make it through the house and senate. what is the possible impact on employers that are expecting tax reform? some people point to the data in terms of commercial industrial lending and the slowdown we have seen in the first quarter and say that is evidence of this uncertainty in policy having impact on the ceo? >> i would agree. any time you have uncertainty. one of the reasons we have that rapid rise in the stock market and consumer confidence and everything right after the trump election was the promises of tax reform, specially lowering the corporate tax from 35-15. i think the longer we're in a sort of a static gear shift lever is in neutral, we may get it, we may not get it, people are going to hold off. i think that's what is currently causing the plateauing of the markets. it may be -- this is a stretch.

it may be causing the automobile market to sort of flatten off. that's a personal theory, not a fact. but the sooner he can actually get on with his agenda and do the same thing that he did with the cruise missiles in syria, which is push a button and get it done. which, of course, when it comes to legislation, no u.s. president can do, would be nice if he could. be careful what i wish for. uncertainty is not good. >> bob nardelli, how do you pars which of president trump's statements and promises from the campaign through the early presidency you can bank on and which were exaggerations as we have heard mulvaney say when it comes to balancing the budget. the market still seems to think all the things it wants are real. >> i think that's a fair comment. i think if you look at what he has done, not even in the first 100 days, he has really set the

tone and the pace. what really upsets me is when you have these congressional leaders talk about, well, he doesn't understand washington. he has to slow down. i think they have to catch up. as evidence, we are all here working today and they are on another two-week vacation. so he is going to break glass. he is like the turn-around ceo in corporate america. he has got to do that within the government. >> is he like the marissa myer turn-around ceo? >> well, no. let's talk about some of the very successful ceos, like mary barra, we were just talking about. i think corporate america is counting on corporate tax reduction and will help level the playing field on a global basis. it will allow for job repatriation. i am not sure china stole our jobs as much as we were forced to go there because of

environmental, government restrictions, et cetera. i think there is a quid pro quo we have to look at there. i think the health care thing is he was counting on some of that cost being transferred to offset the tax reduction is why he wants to come back on the table for the health care thing. he has to get repatriation and he has to address tax rates for the small business. they are being impacted just as much as our large corporations, john. >> bob nardelli and bob lutz, a pleasure to have you both here on set. >> thanks for having us. >> still to come, allegations that snap made its numbers look better than reality. ahead of the ipo. the company is vehemently denying. the details when "squawk alley" comes right back. mes right back.

welcome back. in a lawsuit filed against snap by a former employee.

julia has the latest. >> after fighting to keep a lawsuit redacted, the company has agreed to unsail the complaint. former employee alleged that snap falsified his growth metrics and he was fired for pressing senior leadership on the issue after just three weeks on the job in 2015. the allegation that they lied about having 100 billion daily active users. he claims while they said they had 40% retention rate of users, the actual rate was about half of that. he also alleges that when he proposed expanding into international markets, ceo evan spiegel said, this app is only for rich people. i don't want to expand into poor countries like india and spain. pompli pompliano they said is a disgruntled former employee and

the stunt is just one big pub lisity stunt pointing to his pattern of suing companies that have fired him. in the statement out, pompliano points out by the end of this litigation, we will prove that every claim mr. pompliano has made is true about the long history of misconduct. the shares are up but down about 1% today. >> julia, thank you very much. markets closing in the u.k. and across europe. let's get over to see ma seema . >> it is trading at a fresh 52-week high. the highest level since december of 2015. in terms of stocks on the move. the top performer is rolls royce, the engine maker higher by around 2.6%. another bright spot, the german auto, daimler, prereleasing strong earnings, underpinned by

mercedes benz which saw a double digit sales growth. bmw volkswagen reporting an uptick in deliveries helped by growth. a positive in china and german autos. european investors watching for developments with russia as secretary tillerson meets with russian foreign minister, sergei lavrov in moscow. still awaiting further details on whether tillerson and lavrov can see eye to eye on the topic of syria. a quick check on the russian etf, a relative underperformer when you take a global snapshot of markets. it is down nearly 1% in today's trade. oil not helping the story there as well. carl, back to you. >> thank you very much. let's get over to contessa brewer with a news update. >> at least five people were killed in a suicide bombing. the bomber on foot carried out an attack in kabul. three others were wounded in the blast. isis is claiming responsibility

for that. security stepped up in front of the stadium in dortman ahead of today's soccer match. he c explosions forced the postponement. they are focused on two islamic extremists. the u.s. has employed the "uss carl vinson" to waters off north korea. anticipations are running high as they believe north korea will have another missile test. accusing new york city of violating his legal rights by allowing the fearless girl statute to be installed in front of it. he is challenging city officials who decided the bronze girl statue could stay until february. he says it changed the creative dynamic of his sculpture. kind of like having women on corporate boards does. i think that's what they had in mind at state street global when they sponsored it. that's our cnbc update for this

hour. >> contessa, thank you very much. when we come back, the great walt mossberg and his first "squawk alley" appearance since announcing his retirement late last week. we will talk about his latest comment and why the internet should be protected like a natural resource. s&p has there since election day. day.

joining us now to explain, walt mossberg. a provocative column. i can't figure out if people will be able to agree on what preserving the internet means. each side thinks they are saving it from the other side. >> it is a great point. that's why the plan that i have proposed this morning does not involve writing regulations or doing the kind of things we have been trying to do for a long time now and contradicting each other. it is an adjudicatory mechanism. it is like a special court or a special admin stray stiistrativ which would hear these arguments and make rulings based on a corset of very general principles. >> give us an example. say net neutrality, which is

back in the arena of debate right now. say some big cable provider likes to charge netflix more to stream over its pipes. that goes to this board and this board does what? >> it decides. this is not a new idea in american history. we already have a whole bunch of special courts and agencies that just worry about one narrow area like taxes or veterans rights and so i'm proposing that we have some agency with some expertise and a kind of judicial demeanor. it could be actually a p court that knows about the internet. if netflix says they are discriminating, charging me more or if a small company says, hey, they are letting -- verizon is

letting something it owns, yahoo! or aol, get a free ride and i can't get the same terms on vie o's, it would be adjudicated. >> okay. i want to shift gears here closer to home since the last time we talked to you here on "squawk alley." you announced you were planning to retire in a few short weeks. so many well wishes we have seen poring in. tim cook among those sending in his wishes for you. of course, you have covered apple. you have covered all of technology. ible your first column on technology back in 1991 was on the pc, this device a few people had but not that many and how it was too hard to use. how much have things changed? >> i think they have changed a lot. we obviously, the most common technology now, the real personal computer is your phone and your phone is much easier to

use than the p.c. was in 1991. that's a great thing. i think you can give -- we have all seen this. you can give an ichipad to a 3-year-old and they can basically figure out how to operate it and that's a great thing. we keep coming up with new things like vr and ar and ai and these other things that are going to be a little more complicated to use and so the cycle continues and i think it is important for people in the media. you guys are a good example to keep the industry's feet to the fire. you covered the cia and all these federal agencies and you take this flier way back when on this called personal technology, which has to be one of the great

career moves of all time. i wonder what advice do you give people that want to make a similar leap. did you ever have any doubts it would work out? >> i actually didn't. you know me but you know why i didn't. i just didn't. i think my advice would be to you, john, to you, carl, to everybody, is to reinvent yourself. you have got to reinvent yourself every once in a while. i am retiring and it really is retiring but to me it is a reinvention. i will figure out something else, some new kind of walt. >> are you really hanging it up, walt? am i going to run into at best buy telling people what she should really be buying? >> i'm going to be the greeter at best buy. i am really retiring. that doesn't mean you might not see me pop up on occasion writing a piece or doing something. >> we hope so.

be sure to alert us whenever you do. walt mossberg from the verge, always a pleasure. >> nang ythank you guys. >> best to you. >> why uber's longest serving female executive says she is leaving the company. ing the com.

the big bank debate. kevin o'leary and mike mayo are here. they are going to square off on the sector and whether to buy or

sell. much-needed love for will you lulu lemon. is sttech suddenly in trouble? after a big run. carl, we're going to discuss that and a whole lot more. >> banks just went negative for the year. the dow is down 80 points. we'll see you in a few. let's get to rick santelli and get the santelli exchange. >> good morning, carl. let's pick up on something you just said. banks making the lows for the year. now, this is fascinating to me. one of the bringing conundrums that's out there this year is at a time where we look like we are going to make changes on regulations and i talk to bill isaac, former fbi seed chair earlier today, that the notion that banks don't see the demand out there, nobody is asking, that's a big deal. my question is, can

entrepreneurialism make a comeback. there was a time where many would tell you that being an entrepreneur, starting a small business, trying to do something on one's own back was just part of the dna of being an american. maybe that's not so true anymore. so it begs the question why is loan demand so soft. i think bill gave us a great reason. we have all heard rhetorical question. hey, do you want to be a failure the rest of your life? is rain wet? whatever it is. we know the answer. is it possible that we are now hanging our hat on this notion that loan demand is soft because there is nobody out there that really wants to do anything or is it because they are just tired of asking the same old question and knowing the answer? it really is the epitome of a chicken versus egg argument. in my opinion, i think that the notion of two big to fail banks that have done very well since the credit crisis really think

about their capital. now, maybe their stock is going down a bit. it hasn't been a rough year. banks still get 1% on the reserves sitting in federal reserve. there are a lot of reasons to think that sometimes risk on the banking side is something that maybe they can do without it. it isn't so bad. on the other side, what is going to make entrepreneurs come back and ask. i don't think it is now a recess sieve aspect of being an entrepreneur. it isn't recess sieve. it is repressive. if that's the case, we need to continue to try to spark this entrepreneurial bottom. maybe that's exactly the catalyst and horsepower we need to get escape velocity on what has been a sub 2% economy. john fortt, back to you. >> i'll take it, rick. that's a strong take. rick santelli in chicago. i do want to get to dominic chu for some details. dom? >> carl, what we know right now in the last hour or so, general

motors has filed a statement with regard to david einhorn, hedge fund manager and his green light's proposal to take gm and slit it into two different share classes, one paying a heftier dividend than the others. general motors has reserved the preliminary materials filed by green light capital. the company's evaluation remains unchanged. gm presented the dividend idea to the rating agencies fully and fairly and their public statements issued clearly indicate that they understand the idea of all of its facets would represent a credit negative event if implemented. they are referring to, among others, a moody's report saying if gm did adopt the green light proposal, anyone it would result in a credit watch negative event for the company. it is a story we are watching consistently. that's the latest we have for right now. as we know more, we will bring that to you. back over to you. >> thank you, dominic chu. when we go back, we go live to

the new york auto show with conrad. we will talk trade and trump and the product pipeline when "squawk alley" comes back. because as we live longer... and markets continue to rise and fall... predictable is one thing you need in retirement to help protect what you've earned and ensure it lasts. introducing brighthouse financial. a new company established by metlife to specialize in annuities & life insurance. talk to your advisor about a brighter financial future.

[ [ screams ] ] [ shouting ] brace yourself! this is crazy! [ tires screeching ] whoo! boom baby! rated pg-13. [ screams ] what a morning it's been over at the new york auto show. hey, phil. >> thank you very much, carl. let me bring in the senior vp of honda of america. you guys just had a press conference where you talked about the clarity series. we're talking about alternative

fuel vehicles, electrified vehicle. you still think there's a big market there, don't you. >> we think there's a growing market. i'm not going to tell you there's going to be huge spikes that are falling off the charts, but there is sustained desirability for these products. >> even as many states pull back their incentives in terms of tax rebates and as the federal government debates should we be offering the types of incentives that we're now offering in terms of tax rebates and so forth. >> well, i'm not going to make a statement on whether we should be offering the rebates or what the government should do. >> but clearly, many states have already decided they're pulling those back. is it going to impact the demand? >> well, i think states are pulling them back because they see there is sustained growth, there is sustained desire for those vehicles and yes, we think the growth is there. if we didn't think the growth was there, we wouldn't be making announcements like this today and the vehicles that we're bringing to the market give the customers the choice they want. this new clarity series as we call 3 in 1, three vehicles built off a singular platform.

a fuel cell vehicle, a battery electric vehicle, and a plug-in hybrid. there's all the choice that you need. so, whatever your driving needs are, you have that choice. >> let's talk about the broader market. lot of hand wringing over the last month about whether or not we're seeing a real slowdown, if there's a subprime bubble. is the consumer slowing down. what is honda seeing at its dealerships across the country? >> our dealerships are having robust sales. our are up 5%, 6% for the year. >> you're not seeing a slowdown. >> no, things are really good for us and i'll tell you what, while you read the newspapers, you know, and there is that hand wringing, the reality is the industry is selling 17 million vehicles. you know, how bad is a 17 million market? that's pretty good and if we could lock that in the bank for a few years, we'll take it. >> not worried about a subprime bubble out there. >> not at honda. >> you keep it to honda. jeff conrad, i appreciate the time. senior vp of honda, guys back to

you. >> nice direct answers, phil. when we come back, the latest executive departure from uber. back in a moment. customer traffic? can we push the offer online? brian, i just had a quick question. brian? brian... legacy technology can handcuff any company. but "yes" is here. you're saying the new app will go live monday?! yeah. with help from hpe, we can finally work the way we want to. with the right mix of hybrid it, everything computes.

uber's chief policy and public relations officer is

leaving the company. rachel whetstone was the longest-serving female executive still with the company. her departure comes just weeks after two other high level executives announced plans to exit the ride-hailing start-up. whet stone who joined uber in 2015 didn't cite a reason for her decision. carl, jill hazel baker has taken over, another google veteran will take over public relations and communications. one wonders whether the shine is still on uber as perhaps a future google-sized company, you know, you sort of get these migrations of people from hot companies into the next hot company. you wonder which way this one's going. >> weird that we're talking about the uber diaspora but they've lost their development chief, vp of product, travis kalanik's number two, and on the day yesterday when kkr took a stake in lyft so the situation's

getting interesting for uber after a tough run of publicity. this morning, amazon's jeff bezos talks about the central problem of large organizations, how do you maintain the urgency of a start-up. quote, day two is stay sis followed by irrelevance, followed by excruciating painful decline followed by death and that's why it is always day 1. i'm interested in the question, how do you fend off day 2. the question is what's next for amazon and tech in general. bezos points to ai. he says these trends are not hard to spot. we're in the middle of an obvious one right now. machine learning and ai, watch this space, much more to come. interesting report today that they considered taking a look at whole foods last fall. nothing ever became of that. but bezos, it's often been said there's no better entrepreneur at scale. this is a nice window into that. >> one of the best reads in that letter is the part where he talks about companies can get

too whetted to the process and not focused on the customer. imagine some employees at united might be reading that today, maybe even the ceo. >> you're going to want to watch the ten-year and copper and banks this afternoon. let's get to scott wapner on the half. welcome to the halftime report. i'm scott wapner. our top trade this hour, bank brawl, the most hotly debated sector in the market and why kevin o'leary and mike mayo are on opposite sides of that trade. also with us, josh brown, the brothers najarian here as well. let's begin with the banks now negative on the year leading to the most pressing question facing investors. to buy into a sector that's been sagging or simply stay away. kevin o'leary, you tried to warn people. you said stay away because there's going to be a lot more declines ahead. >> i bring even more