be >> constellation brand similar. >> well said, if you like that >> thank you. >> all the good stuff. >> the exchange with kelly begins now. thank you, scott, up this hour, source say xi and trump may not sit down should investors and corporate america get ready? tension felt far and wide from hand backs to autos to earth movers today we got the stock you need to be watching and a year-and-a-half after foxconn pledged billions in wisconsin, those plans haven't panned out yet a look at what some are calling the fox coin cconn con

>> president xi and president trump meeting may not happened, certainly weighing on markets. the dow up the s&p a similar percentage move pacing the declines as well. also looking at energy the ports performing sector. crude oil prices plummeting on the global commitment the energy sector spider, so far in the s&p 500 and oil majors, chevron and exion both off on the market if you are looking for a positive, shares of massco up almost 6%, they make behr premium paints and delta faucet. a sliver of green in a 63 of exchanges. >> i'm kelly evans

we begin with a big story. it no longer looks likely president trump and china's president chi will meet before the march 1 deadline eamon javers has the latest. >> reporter: that's right. they tell us that it is highly unlikely the two leaders will meet before that deadline of march 1st. the question is whether or not the united states would put the tariffs in place the administration suggested it is a hard deadline, so one scenario that you could look at is a scenario in which those tariffs do go into place and the two leaders meet some place after march 1st. larry kudlow in the past hour or so talking to reporters said there is no plans for a et mooing woo enthe president of the united states and the president of china there had been some speculation

the president is going to vietnam on february 27th and 28th >> that meeting has been publicly confirmed by the white house. but there have been some speculation half-that president trump would while he's in asia would meet at some neutral location in asia or in beijing as of right now, though, larry kudlow telling reporters in the driveway that there is no plan in place for such a meeting to happen unclear where all this goes. because president trump has said personally that he expects ultimately any final deal on trade between the united states and china will come between he and xi and it will come face-to-face so we have to get to that meeting to see whether this deal will last in it was the president, himself, prior to that we weren't expecting that meeting, were we >> that's right. the public said publicly this will get to a meeting between he

and xi, personally, light hauser and mnuchin, they'll hammer out the details. this president wants to do this deal, himself. the question is you no when and what does that mean for tariffs? that is an unknown at this point. >> thank you let's bring in bob pisani taking a big leg down. bob, what's most significant, trying to figure out if those tariffs are coming in a week's time >> reporter: yeah, the market is down three reasons, take a look besides the xi-trump headlines, we have larry kudlow out earlier talking about the sizable distance to go in the trade talks. he's the optimist. >> that didn't help. then we had those horrible european numbers the bank of england lowered their growth forecast. this is my biggest concern right

now, kelly, the stockmarket is very pricey right now. look at the numbers right now. still people with zero percent earnings growth expectation. zero percent 17 times four multiples. that an awful lot. the historic average is closer to 15 times forward. when have you zero percent earnings growth, 17 times multiple is way, way too expensive. the bulls have to convince everybody it will be better than it currently is. back to. >> you they won't win on that note, thank you very much. let's go over to rick santelli at the cme with a lot of worrisome the strong dodtleer, low bond yields now everywhere as we try to digest how weak global growth is. that was before the headlines on china. what do you see? >> reporter: absolutely. the chinese story is important obviously it puts horse power in the market mostly to downsize on

bad news, ultimately, most traders think it will get retweaked or go back to where it was. they don't see the direness, what they see dire straights in is the outlook for global growth and how central bankers will not only deal with that but how they haven't dealt with it when times are better look at our early february of '15, charts of our tenure note yields okay just look to the left of the chart prior to '18 we are still above the actions on the chart, let's look at bone yields you can see the difference it is having an influence on the relative value trade here. we see some unusual moves in things like libor. maybe there is a few financing issues out there if you switch gears, considering it was mark carney's be ig deal. you can see it drifted off in the meeting. it's popped today. finally the one bright spot

today and it's given back half its gains, six sessions, today being the sixth. all are moving higher. the dollar is up it's only up a third of what it was up an hour ago back to you. >> perhaps other headlines for earnings thank you so much. so just how important are these trade talks to the market as global growth continues to slow, let's bring in ben mandel at j.p. morgan. and james from james investors. good to have you here. barry, i was going to talk to you about our favorite stock mike chron the chips were strong with he had bullish territory. we run straight into today's news so what are investors to make about the significance of the headlines by these trade stalks >> it's a word that i don't like very much chauld whiplash.

whiplash that's what's happening in the market right now we had an extreme event in december with the massive sell-off people were just scared to death of the market. then we had this rebound because they were scared to death. any ovement at all put prices up very rapidly. we're back up to where we were on a technical basis before the decline. so it's vulnerable the market is vulnerable one of the things, i know this is going to sound funny. we have a indicator we use whether congress is in session or not it's not in session. it's not good for the markets. >> they're in session a lot, barr barry. >> yeah. they are we actually track that on a daily basis. you find you lose money when they are in session. >> since we have learned today that president xi and our president may not meeting before

march 1. >> that means for weeks, we heard commentary there is progress and we are basically going to seal the deal what happens now do you think 25% tariffs are really coming? >> more generally, i think it's a reminder there is more down side risk on the table ere the nature of that risk has changed somewhat so in december in q4 of last year it was a story of economic momentum what happens in the u.s. xi sloslo economy /* -- economy slows. then risk around trade then risk about brexit as you approach that deadline event risk around the fomc meeting as well. the fed's function, have we got a good hand him on that? with trade, all the good news

was priced in. the contours of the symmetry were coming into view. markets were taking that on board. >> i think a lot goes back to when chair powell said they switched to hawks talking to the option so that set the ground for rally we've seen even with the event risk you are talking about coming up. so how important does the trade issue offset that or does it only offset it if those tariffs go in? >> to backtrack, i'm not sure they do go into place even if you approach that deadline in march. the agreement itself seems somewhat narrow. it's clear china is going to buy a lot more goods a little more friendlier treatment for u.s. firms operating in china it's not a panenacea, industrial policy, intellectual property.

those are signs and an indication that it will take a long time to get an agreement that's comprehensive, it's not surprising they can't do that in a couple of months i think they approach, if there is that positive momentum, they will push it out from there. >> can you own the market going through all this or as we wade through it >> yes i think the rick and the short term are fairly balanced so when they are balanced, you look at the last direction and that is an upward direction in the market right now we are continuing tooled who we haven't sold out of those at this time. we do expect to see a bump this is not unexpected at all. >> let me ask you about something more long term barry, there is a proposal by a hawaii democrat that would be a financial transaction tax, effectively tax trading proposed by germany and france and maybe

gaining momentum in europe what happens if something like that isn't posed in the u.s. >> the thing about money if it's like water, it follows the past of least resistance, so if they do put something on there, there will be things to rise up to ab sorp that, if you will it will put a dampingen overall on the markets when you impede free enterprise as it were, it makes things less efficient. it would not be good for the market at all. >> ben, if the goal the to make less high frequency trading. it's a way of saying we don't want quote/unquote bad guys on the market is there a way to suss that out or lit arm everybody else? >> producing friction can be dangerous. it can have unintended consequences it's an empirical question you have had restrictions that were benign, others a little more difficult to navigate for

the investing community. so i wasn't come out strongly on this proposal. i will say it's a little bit cautious as we get into the deceleration narrative at the end of last year which is still ongoing in the rest of the world. >> what does it take for mandel to get wildly bullish? is that possible >> it's totally possible but at this point i think we have to work our way through this period of elevated adventurist. i think we could be sitting here in six month's time with the deceleration story in the past and a relatively benign environment, still a light cycle, still going >> 2020 proposals, more financial talk about i think it will be sometimes, we'll see thank you very much, ben man dem. dow jones 312 points here's what else is coming up, a look at the potential long-term impact of the china trade dispute.

is it a china-russia alliance. then it's a megabank merger. they are combining to perform the sixth largest bank what does that mean? and why are they merging now >> tesla's former ceo weighs in on their process don't go anywhere, "the exchange" back in two. exchange" back in two. >> hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advanc>diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes. ♪ on car insurance?

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. welcome back check out the sell-off we are seeing today the dow is down 312. we were 389 down at the lows, better than the major averages the nasdaq is down just about 1.5%, a drop of 109 points all of this after sources told cnbc that president trump and chinese president xi are unlikely to meet before the march 1 deadline to reach a trade deal what itself the long-term impact let's bring in the professor of government at harvard university and former assistant secretary of defense under president clinton. thank you for joining me. >> first of all, thanks for having me. >> first of all, there will be no meeting, how important is that deal? >> i think it's hard to read i refer to this as the fresh talk before the fight. i think we will see three or more ups and downs

the trump team is going to moscow, sorry, beijing, nikkei week for a hard set of bargaining my bet is still they'll end up with something that trump will regard as good enough to declare a temporary victory and will extend a moratorium on increase in tariffs for say another six months, but the negotiations will go out over the whole rest of this term they're really symptomatic of the deeper rivalry between u.s. and china, which is now across the boards. >> the markets, people are selling off these great companies, thinking 10% of tariffs are damaging, 25% more so, do you think that's a mistakes take? >> well, i'm not in the business of giving day-by-day financial advice i say yes pay too much attention to the trash talk day-by-day will be chasing this way and that way there are a lot of big head winds for the american economy

and there are a lot of head winds for the chinese economy. i think if you look at the symptoms for xi and trump, the incentives is finding a way to do an ugly but good enough deal to prevent an increase march 1st seem to me to be more powerful. >> let me ask you about the long-term consequences, you had a piece where you said its the chinese-russian alliance that most threatens our interest right now. how close is this alliance >> well, most people hadn't failed to notice and i was actually happy since i wrote this a month ago that the national intelligence assessment that came out this past week basically says the same thing. so if you look at the facts, even though the inherent interests of russia and china should not be pulling them in, knack, there is a merged detente

untente between these two countries as the intelligence officers said is thicker than anything we seen since the 1950s. >> yeah. >> so in washington today, i think too often people almost use russia and china as if they were you know siblings or something. in fact, it's a lot of complexities that this relationship has become quite thick and quite thick because each of them see the u.s. as their principal ground >> does that then argue for the u.s. trying to maintain lines of communication, trade relationships, you know, friendly relations between the leaders of the u.s. and china and between leaders of the u.s. and russia for all of the problems with those authoritarian countries, which you are describing will sound more dangerous if they float out of ours, away from the u.s. altogether than if we maintain some kind of back and forth here >> exactly right it's very uncomfortable or

unpleasant for americans to think, oh my god, there is consequences of the actions we take but it's a fact that the enemy of my enemy is a friend and if we make enemies of both parties, we're going to push them together as we have been doing secondly, just as you said, that in a trilateral geopolitical relationship as we found in the, you know, with kissinger and nixon, when you first had this split between this china and the soviet union, you want to be closer to each of the competitors than either is to each other so that's a hard challenge it's often unpleasant. it means dealing with authoritarian regimes that we don't like for a lot of other reasons. if you fail to do that, you can hardly complain the predictable consequence occurs >> professor allison, great stuff. thank you for joining us programs we will be reassured you still see a trade deal on the horizon, thank you for your time. >> i see a temporary trade deal.

>> temporary, appreciate it. thank you very much. coming up, germany accuses facebook about abuse, what it means for the targeted ads and could it be a precursor? and the foxconn story ahead and ilif foxconn stillm plansto bud wisconsin don't go anywhere. "the exchange" is back in two. to full-blown production. ♪ ♪ let's go from being on-call... ♪ ♪ to being on-line. american express can help move your business forward with loans, vendor payments and buying power. chat with one of our 4000 specialists and let's make it happen. the powerful backing of american express. don't do business without it.

welcome back to "the exchange," everybody, twitter is falling, light guidance and a 20% increase in operating expenses is putting big time pressure on the stock, which is down nearly 10%. shares of hubgrub, has a mess, expenses is down 5.5% today. going the other way, take a look at hanes brands, they are soaring on strong earnings, they enlisted the full year outlook shares are up 19% and 45% so far this year. now to sue herrera for a cnbc news update. >> hi, kelly, hello, everyone. here's what's happening at this hour addressing a senate armed services committee the commander of the u.s. southern command expressed concerns about russia and other's influence in the western hemisphere. >> the most disturbing hub is the degree extern am state actors, russia, china and iran

are expanding their influence in the western hemisphere russia, in particular, enables actions in venezuela, inaugural and cu -- nicaragua and cuba. debattle is recalling drills that were sold between september of '17 and november of 2018. take a look at that teenager in spain has built himself a robotics prosthetic arm using lego pieces. he was born without a right arm due to a rare genetic condition. 19-year-old david aguilar who studies bioening nearing in college, obviously, very successfully is already using the fourth model of his colorful artificial device. >> wow >> totally cool. >> that is awesome >> that's the feels good story of the day. >> it's hard to follow up on that. >> wonderful wonderful. the course of human ingenuity.

where there is a will, there is a way. >> i'm here with tyler mathieson, what do we have coming up at the top of the hour >> we have a couple things at the top of the hour. we will talk to the ceo of duncan brand, that companies numbers as well as the challenges that they're facing internationally as they try and expand, both into china and across europe. also, we'll talk to a top venture capitalist who has $200 become of money under management there is a lot of motion in the ipo market this year a lot of the unicorns from uber and lyft the airbnb, they are here, expected to come public. he'll talk about where he is seeing deals, where the money is coming from and from he is putting it to work it will be a busy hour. >> i'm looking forward to it see you then thank you, tyler. here's what's ahead on "the exchange." >> announcer: coming up, a handbag trade goes out of style. irobot cleans up today and tas any says nein to facebook'

da gathering that's all ahead in rapid fire what do you see? we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

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and accessoriesphones for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program call or visit welcome back let's catch you up on a few stories that should be on your radar today.

it's time for "rapid fire" here are bill griffith, seema mody, welcome to you all we will talk about coach and spaid, it is plunging, saying lower global spending and global economy. it's almost like they had the narrative when the rest of the country caught up. >> they're saying specifically china, when they're traveling they're not spend. >> we heard the same thing from tiffany. >> exactly, i'm worried we pay be hearing it from macy's too when they give us their results at the end of the month. macy's has been seeing a weakening tourist spend, sort of quarter by quarter it's been decelerating i'm worried what that can mean. >> there used to be winners and users, we also had louis vuitton and cartier saying that they are seeing strength in china

there seems to be a mixed story. maybe that consumer is spending on luxury goods. they haven't heard the concerns. >> kate spade was especially lowered down 11% when coach held up a bit why was that >> this company talked about a lack of newness. they didn't have a new exciting product during the holiday period >> that will be a problem. so they're saying i think by the end of next quarter, 50% will be new and the next quarter 100%, down 11% when the street expected to be down 4%. >> i noticed when we do an interview,by is with somebody at tapestry, when we were at closing bell, i would look at the chart to see what wall street thinks about this thing, when you look at a chart with tapestry before it was coach, i looked at a ten-year chart, this has been basically dead money. it's sideways, it hasn't going gone anywhere. >> i think it's trading to levels three years ago when it was just coach then, too >> 2012 was higher you can see on the chart than it

is now >> it's interesting, they are saying they are potentially quiztive they need new brand, they need brands in-house. >> they mean the luxury, if the tourist is spending all in china. >> international is strong >> exactly let's talk about irobot. this is surging, too, it's recovering from, yes, the tariff shock, from the last quarter, guys that sank shares, so you have a stronger quarter now, all of a sudden seema you have the potential for higher tariffs coming, stocks are big today this has to be on investor's minds. >> it seems like they're investing, the company beat expectations, they're looking to diversify their supply chain and move manufacturing outside of china. investors like that, they're being proactive, not waiting for 10% to 25%, they're trying to get ahead of that. >> they're coming out with a lawn mower did we see a cat dressed with a dine i dinosaur. >> i was thinking, in a way, it

almost surprises me we're talking about a tariff issue with irobot. i wouldn't think if you buy one of these devices, how price sensitive are you? to do that >> i believe it's shark, itself, came out with a lot of imitators. >> that's true. >> they are expensive. yeah. >> they are. >> my prediction at some point this company will have to be bomb it's a one charlie, it's like a gopro, they're trying to get different application for it pool pumps, pool vacuums, lawn mowers, at some point they will run out of applications, they need to go somewhere to find more growth. >> we'll see maybe that can be the bid. how about shares of chipotle also soaring after strong comps. it's up 30%. the big question is after the food poisoning incidents in the past, has chipotle turned to the good ly think so. i think brian nichols is the guy that did this. he was at taco bell three or four years, what happened there

was this sudden increase in online ordering. the digital sales went through the roof and look what's happened suddenly now at chipotle they've done exactly the same thing. in the latest quarter online sales up 6%. they now have drive through they will put in some of their stores >> are they? >> adding a second line for online stores, it's brian niccols. >> the my das touch. >> i went to the new one in union square, i was in shock, fewer tables, all about the mobile order she was where you can pick up your order, it's fascinating. it shows where fast food is at. >> i think they're can my about doing the whole 30 the keto promotion just online. right so you have to sign up to get those menu options it's one click it's complicated sometimes does this ingredient comply, does one not? i think those were a little more costly, too. >> with a will, you have to hope

god forbid they don't have one in the past with the e. coli, goes without saying. >> absolutely. let's talk about red flags in europe the bank of england is saying britain is sparking overnight in global markets it was as the eu was cutting a deal with china. >> outside of the euro zone, china is the biggest trading partner. it's benefitted from this voracious pap tight from the chinese consume were but as china transitions from a consume tore a competitor, add to that the slowdown, germany is feeling the pain across europe it's political stories, whether it's the vest protests in france and the populist policies out of italy that's also weighing on growth so it's certainly a tough situation. >> fiat, daimler, a lot of specific stories, a lot of weakness there >> it's the european auto sector that once again is being hit by the pullback they're seeing in the chinese consumer

the first time you saw chinese auto sales decline in a decade last year in 2018. you look at germany, that is their biggest export it certainly is a larger impact. >> there have been companies, they went back and did a quick scan so mastercard called out weakness in theneter larngsdz estee laird talked about some weakness in france because of the yellow vest, germany was brought up i think by capris, i may be wrong on that different countries were weak points in europe for different of these consumer facing companies you have look to why the boom is back on a ten year, which seems insane, italy is in session. i don't know what the pros seconds are nor the rest of the eu to follow they're hanging on by a thread. >> that makes mario draghi's job more difficult, how do you expect a growth when it diminished >> n and the chinese economy to be slowing down. it adds a blank to all the

problems they are facing >> exactly it feels like it is suffocating growth everywhere. speaking about europe, facebook is facing head winds in germany's anti-trust laws in particular, which is banning sharing data from instagram and kwats app and facebook this was announced, no one is entirely clear on why they're doing this or what it means in terms of the future between these apps >> they're they've already imposed these very strong privacy rules and this is a part of that right now and facebook is fighting back but i wonder if it's a wrong strategy, rather than, you know, they already have a pr problem with all the data privacy and the security and all those things, rather than fighting it, just, you know, look for solutions, look for ways that you can work with the eu on this very important issue transparency is everything right now. and if people don't realize that what they're doing on what's app

and instagram is being migrated to facebook data, they need to know that. and that's what the eu is saying right now. >> in particular, there the a sense that that has walls around it and that's protected and that won't be merged in terms of what you do on this other platform, seema, so before they can make this transition, that they've said, germany is already stepping in to say no? exercising their political power. you wonder, though, back to our previous discussion, it doesn't make sense, uniform is seeing this slow down, germany is, too. is this a time to go after a big tech company employing thousands in your country? i don't know. >> i think that's left hand, right hand one group is there to grow the economy. the other side is to protect the consumer this is their cartel group or whatever they're called over there in germany that they're trying -- from i wonder sometimes about the i don't know the shakedown effect in the sense is that with these companies, in particular, every year there is a new reason why they're paying out millions and millions to the europeans, it's not affecting their viability

overall consumers are not playing the platforms, but they have handed a lot over to the treasuries of these countries. >> we'll have to see what kind of regulation comes forth given what germany has resolved overnight and will it result in an advertising model seeming less to consumers and profits. >>app, when we talk about the messaging apps, who is number one i think it's what's app, that's the thing to watch. >> the biggest market is india >> we can find you on facebook. >> yes, we can >> thank you all shares of tesla are falling today after aaa reported cold weather can affect an electric vehicle's range by more than 40%. we'll talk about tesla's co-founder and the future of these next no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines.

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welcome back

a day after announcing yet another tax cut, the cold weather cuts efficiency by up to 40%. mike san soletoli is out at the conference mike >> kelly, thank you very much. martin, thanks for being here. >> thank you. >> big picture so you go back to the very early days of electric vehicles with tesla. are you a co-founder and owner, not yet still a part of tesla. but are we farther along in the adoption of electric vehicles than you thought we would be back then and does tesla's head start, is it critical for the way the industry goes from here? >> well, when we first started tesla, there were no electric cars on the road none had programs to develop them tesla started a revolution and you know on the one hand, of course, our sfwoel is that every

car will ultimately be election trick. on the other hand if you think about starting a new car company and the idea that in ten or 12 years, we'd already be selling 2% of the cars sold in the world, electric cars, it's amazing. on the one hand, i want them all to be electric on the other hand, i'm amazed at how well they have done already. >> is tesla's success crucial to where it go es from here it's been synonymous with people's mind, the company has failed several times to meet its own ambitious targets years over years. >> well, tesla is still one of the few companies in the world that's making just electric cars so they have the advantage their attention isn't split. they don't have to figure out how to sell money suvs and try to invent their future that's electric in some sense, their leadership still matters.

they've already proven what need to be proven >> that electric cars are feasible and they're getting better and better and the future of electric cars been here >> there is a lot of concerns about what the sales will be for american companies there how does that demand landscape look to you these days >> well, i mean, china is a very exciting market for the auto industry it is the fastest growing and the largest market in the world right now. it's impossible to ignore that market it's also the chinese government has taken a position of promoting electric cars much more aggressively than anywhere else in the world. so we see a landscape of well financed start-up companies in china and also the existing large car companies making electric cars. >> right. >> how that cheesecakes out in the market is a bit, i mean, if you go toward the favor of the chinese companies, it can go towards american or european companies, but in the end, the

important thing is they are making a transition to electric cars as quickly as they can. >> you maid the key point, though, that it could go to chinese start-ups. so if i'm tesla as i understand it, elon music is trying to get that model down as low as he can. can it go low enough to be a wide-selling car >> that's, i mean, i'll fought at tacey la anymore. i have a hard time answering that i hope the answer is yes, the more electric cars on the roads the better >> is there an issue in the terms of the pomplts you said they are -- performance. you said they are getting better and better can they be a parody as you say it's a percentage of global sales. >> there isn't one any model of car that suits everybody so electric vehicles came in at the top end of the market and compete where they do well, on performance, on a lot of things where they're strong they aren't everything to

everybody yet. but each year and eve turn of the evolutionary wheel, the cars get better and better and can approach more and more people. the original car that we made at tesla was a two-seater sportscar. the next was a big sedan, expensive, yes tesla is now trying to push their cars down market and push the prays down whether they succeed or not, we'll see. but what's clear is the cost of making those cars and the performance of those cars has gotten better every single year. >> all right thank you very much for your time appreciate it. >> guys, thank you very much appreciate it. mike santelli speaking with martin ebberhard. bb & t is creating the sixth largest bank and sending both stocks surging are there more bank mermers ahead that's next.

welcome back now to the big story in banking today. bb&t and suntrust are combining in what they're calling an all stop merger of equals valued at $66 billion. biggest on assets and deposits and serve more than 10 million

households on the news, suntrust up 9% and bb&t is up 2%. more on a transformative deal for the whole industry, isn't it >> absolutely right, kelly mostly, analysts were surprised by this deal they expected consolidation and saw them likely to be involved in that and probably separately making some small themselves as opposed to to mermerging like t have done. the biggest money center bank by assets and with it, really strengthening their hold in the southeast region now the third biggest by deposits in that region after bank of america and wells fargo. that's why we see some of the big banks in particular share prices decline and j.p. morgan because of a big position in florida but in general, money out of the big names into some of the smaller regionals which have seen takeover targets.

>> if there's a dropoff with four biggest banks in the country and u.s. bank and this combined entity and everybody else that comes next now that bb&t and suntrust are signaling that it's game on, does that mean everybody is going to have to very quickly scale up as well >> i think certainly the share price move is suggesting some people might be doing that but also say this. if we look at most mid sized around the new created entity, that's pnc and usb which seventh and fifth biggest respectively, the sixth place bank and not really moving too much, suggesting they're not caught up in this either way of the newly created entity, also really in the sweet spot of the sort of perfect size merger and seeing both of the company share prices rise with the combined assets $440 billion but the cutoff to become what's called the systemically important financial institution

is $700 billion with regulation and doesn't have quite so much room to play around with acquisitions. >> thank you we'll see you soon at the new york stock exchange. despite promises from president trump and the foxconn, the factory way behind schedule. we're not even sure what's going to be made there yet we're going to talk to a reporter on the ground following this story very closely when we come right back. who says our bank isn't tech enough? everyone, look at your phones. the design thinking, the digital engineering,

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welcome back what a drama this has been a couple of weeks ago, a company rep for tech giant foxconn told reuters the plans for the $10 billion manufacturing campus may be scaled back or even scrapped altogether that was before a conversation with president trump now the foxconn chairman said plans for the plant will proceed but not the first time they promised more than they delivered. someone reporting this story from the ground since the beginning. the business reporter from the milwaukee business sentinel. welcome, rick. >> hi, kelly, thank you. >> we're all trying to figure out how far we have come, rick, from the plans to build a giant manufacturing plant to make tvs.

what is the foxconn plant looking like now >> well, we're trying to figure that out as well, kelly. the latest word is that it will be what they call a generation six liquid crystal display panel plant with a ton of research with complex around it. >> everyone said, wait a minute, we thought this was to create blue collar manufacturing jobs in the part of the country where they've been cleared out now these sound like white collar jobs. is that putting it too finely? >> no, that's correct. that change has been in the making for some months know but i will say when foxconn presented its initial plans to the state of wisconsin in 2017, they called for these roughly 13,000 jobs. about two-thirds of them were to be what they call factory jobs people with a high school

education could fill and that, over the last six, seven months has shifted in greater and greater proportion where 90% would be engineers or other knowledge workers. >> it's not to say there's a problem with those jobs either, rick but they were given a lot of incentives and said they'd create as many as 13,000 jobs and governor scott walker basically lost his governorship over how much the state was willing to subsidize this plant to create a new manufacturing chain, right >> i won't weigh in on what factors figured into governor walker's loss, suffice to say, foxconn was a significant issue in the campaign. >> how much did they end up saying they promised foxconn in order to come here and build this plant to create these jobs? >> well, that can be a little tricky but the state essentially has offered $3 billion in

incentives that would be about a cash payment if foxconn meets its target and then another 150 million on tax break materials they purchased i would say, it's a pay for performance contract so foxconn, in order to get the payments from the state, foxconn has to create certain number of jobs has to spend a certain amount of money on its complex and receive. >> they've missed some of the deadlines already. of the 13,000 jobs, how many have they created so far >> well, as of december 31st, it was 178 and that was 82 short of the target number that they need to hit to qualify for state tax credits for 2018 so they missed that. they still have a chance to make it up in future years and get and recruit the money they didn't get for 2018 so far, but

also, keep in mind that the 2018 incentive payment was less than 1% of the total that's available to foxconn so we've got a long way to go on this >> that's well put rick, thank you for joining us rick romell. that does it for "the exchange." i'll join tyler on "power lunch" which begins right now. >> indeed it does, kelly we'll see you in just a moment i'm tyler mathisen welcome, everybody new today, fresh fears about trade and global growth. what should investors do now and the biggest financial merger in a decade, $66 billion creating america's sixth largest bank by assets which of the next takeover targets? we'll look at that shares of dunkin sliding missed the mark there. ceo will tell us about that live the dow, the s&p looking at their biggest one-day drop since the beginning of january "power lunch" starts rig