two big pieces of breaking news topping your five 5k9 ethiopia just releasing the official finding into what caused last month's deadly boeing plane crash the breaking details straight ahead. also, a major developing story out of japan former nissan chairman carlos ghosn re-arrested. he is facing new charges and could serve up to 20 days in solitary confinement could today be the day that we get a trade deal wrapped up with china? president trump gearing up for a high stakes sitdown with china's top trade negotiator tesla stock under pressure this morning. the company reporting a massive drop in deliveries in the first quarter.

explosive testimony from wynn ceo as he tries to salvage a $2.5 billion bet on boston what he had to say about wynn's founder that is sure to get a lot of attention today it is thursday, april 4th, and worldwide exchange begins right now. good morning, good afternoon, and good evening. i am brian sullivan. it is an incredibly busy thursday morning, and light get right to it. we have two major braebing headlines right now. new details crossing on the cause of last month's deadly plane crash in ethiopia. let's get to frank holland right away with details on this breaking story frank. >> hey, good morning, brian. just minutes ago authorities released a preliminary report on last month's ethiopian airlines crash. this was the second fatal crash involving a boeing 737 max in the past five months ethiopia's transport minister says the initial findings show

that the plane itself was airworthy. she says the flights take-off appeared to be normal. the report also says that pilots repeatedly followed all the procedures, but ultimately, they were unable to control this aircraft it also says there was no foreign object damage to the plane. in a separate statement ethiopian airlines says the report shows that the plane persistently nose-dived before this crash the report calls on boerg to review the controllability of the 737 max. it also says that airlines should verify boeing's software fix before allowing that max planes to return to service. ethiopia's transport minister says a final report on this crash is expected within one year checking boeing shares right now, down just very slightly in the early trade. they close down about 1.5% brian, back to you >> frank, thank you very much. your other breaking news this morning former nissan chairman carlos ghosn is back behind bars at this hour after being arrested again in tokyo you are looking reason at the video showing what appears to be

ghosn being taken away from his tokyo apartment. japanese authorities re-arrested ghosn overnight on claims of financial misconduct prosecutors now looking into $5 million in payments he allegedly received from an auto dealer in the country of oman. tokyo prosecutors also confiscating his wife's passport and her cell phone now, ghosn calling the latest arrest "outrageous and arbitrary. saying it was "part of another attempt by some individuals at nissan to silence me." ghosn has maintained he is innocent we'll continue to follow the latest on this developing story and bring you more as we get it throughout the morning more on both of those stories throughout the day, but right now here is your thursday market setup not a lot of indication about which way the markets will head based on futures they are literally unchanged at this hour. by the way, the s&p 500 posting its first five-day win streak in months the nasdaq also up five straight sessions heading into today. we also want to take a look at the dow transport indicator.

that index obviously considered a leading economic one and keep this in mind the transport index is up six of the past seven sessions. some people taking a bullish sign from that index the bond market, by the way, with the yield sitting at 2.5% exactly. see the backup in bonds a little bit over the last couple of days still, the ten-year note at the a very low 2.5%. in the meantime, it new signs of weakness out of the world's fourth biggest economy journalan industrial orders falling 4.2% in february analysts were expecting a slight gain the german bund, their bond, slipping deeper into negative territory. it is 00.4%. it is a negative yield on the german ten-year. let's talk about all of this, the markets, and your money. joining us now on set sean snyder, head of investment strategy at citi private wealth management it's great to have you here. >> thanks for having me. >> i want to focus on the u.s. first. do you believe that with some of the weaker data, united states

economy is in a brief soft patch or continued weakness that will ultimately end in a recession? >> i would say it's actually a little bit of both i think we are seeing weakness right now, but that's not uncommon in the first quarter. we've seen that pattern play out over the last five or six years or so. i do think there's a real chance that gdp for one q is the low for the year, but i would say we're trending from a growth rate of 2.9% in the u.s. to about 2% potential by the end of the year i do think there's a slowing as far as recession, we have seen the yield curve invert. that is obviously everyone knows one of the best leading indicators of recession, but it doesn't necessarily tell you when the recession will occur. it could be six months from now or three years from now. >> there's a lot of misinformation around the yield curve inversion. some people say, there you go. imnents recession. that's not the case. it could take quarters, months, or years is there in the market a sense that the yield kuv inversion is being overhyped a bit? >> i do think you would see a

lot of commentary about it being, you know, this time is a little bit different you have seen quantity takive easing have an influence on the long end of the curve. i do think there is some argument to be made for this time is different. if we look at the past three yield curve inversions, you did see major earnings contractions and bear markets about 24 months later, but at the same time the s&p 500 rallied in between the inversion and those bear markets about an additional 32%. it's pretty uniform to you that you can see further upside in stocks even though you had a yield curve inversion. >> the hottest stock market in the world, the domestic schienz market yesterday on cnbc one of the heads of fidelity says they still under own china. they are stimulating their economy. some of the data has been pretty good do you believe that the chinese economy is set for a rebound >> i think it's hard to say that one, you know -- one data point makes a trend. if you look at the stimulus measures coming out of china, they're pretty large they have $300 billion in tax cuts and reduced fees to businesses

you also see a lot of credit expansion in january i do think you're starting to see it turning in the chinese economy. i think that is positive for the broader emerging asia region as well countries like korea, taiwan, thailand, i think it's positive. >> can't let you something without getting investment ideas. health care and pharma two sectors you believe are under valued, under owned and are worth our viewers' money when you say health care, are you talking about the payers, the insurers >> just the health care sector in general, we think particularly pharma. you know, those areas as well. one of the reasons we like health care so much is that they tend to have positive earnings growth even in economic downturns. if you look at earnings expectations this year, you're talking maybe 7% eps growth versus 5% for the broader s&p 500. they also tend to be one of the sectors that outperforms after you have seen yield curve inversions there's positives there. >> great to get your insight on this busy thursday thank you. we'll see you again. much more to come on this very busy news day up next, deal or no deal

president trump gearing up for a high stakes sitdown with china's top trade negotiator today and, later on, forget fomo in the stock market there's major fear of missing out in the housing market. falling rates sparking a re-fi boom can it last? we'll get answers on wlddeorwi exchange as we roll on right after this . you blaze trails... . but you have the power to do so much more. let's not just develop apps, let's develop apps that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable. it's going to take input from everyone. so let's do it all, together. ♪ ♪ let's expect more from technology. let's put smart to work. you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse.

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welcome back in. 5:10 a.m. on the east coast.

a live look on the capital believe in dchl c. where a lot is going on trade. high level trade talks between the says united states and china are picking back up today. president trump is expected to get involved. as everyone knows it's the last 10%, the last mile that is the hardest. do you expect we will get some kind of a deal in the next couple of days >> no. that last 10% is really the enforcement mechanisms, and those -- >> on ip, intellectual property. >> on the whole agreement. and the question is if they wrept able to get it done, why would they do it now

this is the sticking point between the two sides. >> why are you pessimistic why do you not believe the two sides? both have a lot to gain from a deal won't get something done. >> i mean, they eventually will. in the next couple of days, i think there is just too much that has yet to be settled, and you know, the chinese right now have politics of their own those politics push for not getting a deal in certain instances. the chinese ruler would probably do better if he could continue to blame the united states for all sorts of ills, including his own underlying economy there is politics, and, you know, i actually think that it's going to hurt getting a trade deal >> do you think that china is ultimately going to -- i mean this sort of rett orricly, be willing to write a check to the united states? >> not -- well, what they're willing to do is they're willing to buy kmoedties from the u.s. >> that's what i mean. >> people have been saying -- >> we'll do this we're going to buy all your stuff, united states, but we want that.

dallas 196 trillion with a t. not billion with a b that's exponentially larger than their entire economy >> yes the global economy >> there's the problem >> yeah. i mean, it depends on how much they agree to buy from the u.s people are saying 1.2 trillion 1.2 trillion times 163, 195.6. >> yeah. 15 trillion economy. six years. that's, what, $90 trillion you are talking about 250% if my math is off, i'm sorry it's early 250% of their entire economy is what they're, i guess, purported to have to be buying, but that's only if the other countries, also try to use that enforcement mechanism, is it not

>> sure. and i think, though, that other countries that have stuff to sell china are going to say, well, why not me you are going to see other countries say, look, wto, nondiscrimination rule, basic rule, they want in, too. >> let's role play a little bit. you're president trump you sit down with the vice premier. what's the first thing you ask him. >> well, what i would do, chang rather than trump, is say, look, i will talk to you when you stop stealing our intellectual property, when you stop these open violations of world trade organization rules don't come back until you're ready to do that where. >> then i say we're not stealing your intellectual property you have your numbers wrong. >> i will say tariffs will go up and i'm going to impose import bans, and i'll say -- >> i'll say you're hurting everybody. you're hurting us. you're hurting the world >> i hurt china more than i hurt the united states. by the way, you guys are stealing $300 billion to $400 billion of u.s. ip every year.

that's a grievous wound, and i'm not going to ignore that my predecessors ignored it i'm not going to do that >> what's the first question you ask president trump? >> that's a great question, and i don't know what is on his mind i think he is probably going to say -- >> what's your problem >> what's your problem literally, what's going on how do we fix this? nice to role play here in the morning. you didn't expect that, did you? >> i did not >> you can roll with it, i know. gordon, thank you. still ahead, tesla stock under pressure again the company's deliveries hitting the skids. we'll give you the details, and the latest tes loo trade coming up wine may be fine, but liquor is quicker at least when it comes to growth that's not what we're talking about. what consolation brands just did that it's got that stock moving

this morning a lot of news. we're back right after this.

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sflierchlt your stocks this morning include cars, cocktails, and kmercommerce tesla whiffing on first quarter deliveries, and the market reacting tesla made 77,000 cars during last quarter, but only delivered 63,000 of them tesla stock down just over 7%

right now. stock, too, constellation brands, the booze maker says it will sell about 30 of its low-end wine brands to e & j gallow for $1.7 million. stock three, unicredit, the italian bank reportedly ready to make a bid for rival commerzbank if the merger talks with deutsche bank fails. commezbank up 2.5% in european trade right now. let's switch from that to housing. if you are looking to refinance your home, now might be a good time mortgage rates have been tumbling one of the steepest drops in years. that has sparked a re-fi boom. according to the mortgage bankers association, refinance activity surged 36% last week. let's bring in now the chief economist at lending tree. wow. are you and your colleagues surprised by the rapiditdy of drop in mortgage rates

>> it's a pretty dramatic clop just a few months agopeople were worried about rates going over 5%. >> and subsequently, are you surprised by the amount of activity in the re-fi market i can't believe how rate-sensitive so many people out there are. >> re-fi is a pretty straight forward business when the rates drop you get a big spike in re-fis. if you call last year, we had a lot of rates that were pretty high a lot of people who maybe got into home last year i think and maybe i could re-fi, and then a lot of people thought they had missed the opportunity to re-fi and are now getting back in the game we definitely see a big spike in re-fi volume it happens every time that rates drop >> this is the most important time of the year for housing i mean, this is literally diana ohlick that said you want to list your house literally this week to get the best deal. is this kind of the positive perfect storm for housing seasonally the economy is doing okay it's the spring selling season, and rates have dropped so

dramatically >> yeah, definitely. i think everybody's housing examinations have increased because of the rates dropping, and in the spring traditionally people try to get out there and get their homes sold or get into a new house. it's definitely coming at an opportune time for home buyers and sellers. people can afford more with the lower rates. >> you guys can see the data i mean, on your website, can you tell how many people are poking around either for a new mortgage or to refinance. the data that you are seeing is giving us any indication of how this housing market and the spring selling season will go? >> yeah. we've seen a spike in re-fi, like you said, but we've seen an increase in purchase inquiries.

batsd on that poking around on new mortgages, is it fair to say it's shaping up to be a decent or good or great spring selling season >> i think i'll go with decent i wouldn't quite go with great one of the challenges is that we've had a run-up in home prices, you know, basically since about 2012 we've got about a 50% increase in home prices, but incomes have only gone up maybe 15% it's still pretty expensive for some folks to get into a house, and there are a lot of folks who have a challenge with affordability. this improves the prospects for housing in the spring, but i wouldn't say it's great. it's probably just going to be a good, decent spring. >> part of the problem has been you can only buy what's available for sale, and there hasn't been a lot of supply in certain hot housing markets. are people willing to sell >> yeah. that's been the big challenge. inventory has improved a little

bit if you look at the new home sales releases and the existing home sales releasing it's nowhere near the amount of inventory we need to have. most concerningly, the inventory is tightest at the lower end off the price point, so the more affordable homes, there's a lot of demand for those homes and just not enough supply for people out there willing >> i know you have a busy day ahead. talk to you again. thank you. >> thank you for having me >> all right let's get a check. good morning, francis. >> good morning to you house democrats are opening a new investigatory front into president trump's tax returns. the head of the house weighs and means committee shot a request to the irs asking for the president's personal tax returns as well as some from his businesses dating back to 2013 there is new insight this morning into the house and special counsel robert mueller's team they feel about attorney general bill bars four-page summary of the 22-month investigation

according to the washington post and the nosh times, it some of the investigators are frustrated claiming their findings are more damaging to the president than what's been revealed thus far. the papers cite government officials and other familiars with the investigators thinking. one source told the post "there was immediate displeasure from the team when they saw how the attorney general had characterized their work instead. nbc news los angeles not independently confirmed that reporting. >> that sleepy groggy feeling of flying around the world, it may turn out to be good for you, according a northwestern university study jet lag could help your brain defend i was from zwooez disease. researchers induced jet lag in a fruit fly with huntington disease. they found the stress actually protected the flies in your eyes

fruit fly, human they may be similar working maybe the same way >> what time do you wake up in the morning? >> alarm at multiple times, but it is first one goes off at 1:30 a.m. >> 1:30 a.m. you are up before i am the way i describe our schedule, people say what's it like to get up so early? i say, well, it's kind of like a semi-permanent state of jet lag. are you calling, you know, my initials on that fruit fly story? >> 100%. >> yeah. all of us up now, and even people that aren't watching might be able to relate. >> i think those researchers need to just do a couple of trips around the world or work our schedule for a couple of weeks. francis, thank you >> sure. >> fruit flies come on. all right. coming up, phil lebeau coming on with two big breaking stories. first, the report on the ethiopian air crash is out what we have just learned ahead. and carlos ghosn back behind bars re-arrested overnight in japan he could spend time in solitary confinement. much more on both of those stories right tethafr is our yard, but so are they. the triple threat of dandelions,

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breaking news. the report on boeing and the crash at ethiopia is finally out. the new details on what we have learned about the deadly descent straight ahead carlos ghosn back behind bars after being re-arrested in tokyo. he clamtz nissan trying to silence him, and japanese police even going after his wildfire's passport this time and china trade taking center stage president trump gearing up for a high stakes sitdown with china's top trade negotiator

all those and more as we roll on right now. welcome back thank you for being with us here on cnbc. 5:28 a.m. on the east coast. i'm brian sullivan it is a very, very busy thursday morning. let's get right now to your top story. new details emerging on the cause of last month's deadly boeing airplane crash in ethiopia frank holland is here now with more frank. >> brian, authorities have just released a preliminary report on last month's ethiopian airlines crash. it was the second fatal crash involving a boeing 737 max in the past five months ethiopia's transport minister says these initial findings show the plane itself was airworthy the take-off appeared to be normal the report says the pilots repeatedly followed all the procedures, but ultimately, were unable to control this aircraft. it also says there was no foreign object damage to the plane. in a separate statement, ethiopian airlines says the report shows that the plane persistently nose-dived before

the crash. the report calls on boeing to review the controllability of the 737 max. it also says airlines should verify boeing's software fix before allowing the max planes to return to service ethiopia's transport minister says a final report on this crash is expected within one year checking boeing shares this morning, they're down about one-third of a percent brian, back to you >> frank, thank you very much. also today, former nissan chair carlos ghosn re-arrested in japan on new charges. he could serve time this time in solitary confinement let's talk more now about both of these big stories phil lebeau joining us now phil, good morning i want to start with boeing. what so far have you taken away from the early reports into that ethiopian airlines crash >> not to get too deep into the weeds, but the comments from the ethiopian authorities that there was no foreign damage caused to the airplane prior to the crash, the reason this is important, brooen, and we want to look at

specifically what they had to say. that's one of the veins that's just on the outside of the nose of the airplane. remember, boeing designed the 737 max that only one of the angle of attacks feed data into the plane, which then triggers the m-cast anti-soft -- anti-stall software to kick in so that the plane does not stall after take-off if that's exactly what they're saying, it raises a whole new level of questions for boeing in terms of what prompted the faulty data to be fed into the airplane from these censors. boeing has said there is a software fix that has been tested out and they continue to work on. yesterday they sent out pictures

of ceo dennis mullenberg on the cockpit after going on a test flight with some of the test pilots for boeing out in the seattle area boeing plooefz they have the solution when you look at this initial report, do they truly have everything figured out and the fix in place obviously, the faa has said it's going to be taking its time being as diligent as possible to make sure that that is the case. >> i guess, phil, i'm kind of putting you on the spot here at 5:32 in the morning, which is do you believe in what you have seen so far there is enough meat here that the f.a.a. may be convinced and the 737 max can start flying again >> no. i think not yet. i think that the faa probably has a pretty good sense -- a very good sense of software solution is, but there is the concern in washington, and this is understandable, they backed boeing for the longest time

while the rest of the world and to a certain extent the faa feels like it has a little egg on its face. that's why it denounced yesterday it's not just going to be us. we're going to bring in our foreign colleagues in the aviation community to review any software solution, so we all sign off on it, and, again, that means, brian, this is going to be a dragged out process it's not something that's going to happen in the next couple of weeks. >> okay. this is going to be -- these planes are going to be grounded in your opinion for some time. southwest, united, american, the fleets that fly them, they are going to have to continue to rework their schedules >> correct they've already done that through the end of may for the most part. and i wouldn't be surprised if you see them ultimately here in the next few weeks say, okay, we're going to push this back and rework our schedules at least through the first half of june this could be something where they push out our schedules, and

they say we're not expecting these planes to be up in the air before x date. then they have to plan accordingly. >> former nissan chair carlos ghosn re-arrested overnight. new charges. they're looking into about $5 million and what they may consider illicit payments to ghosn and his family he could be spending time in solitary confinement, and they took his wife's passport and cell phone your take on the re-arrest of carlos ghosn >> it comes one day after he went on twitter with a new twitter account saying he will not be silenced, that he will tell the truth and will explain from his perspective it's clear japanese authorities do not want carlos ghosn holding a press conference where he essentially

puts them on the spot publicly before there is any type of a trial. i think that's very clear from this arrest arrest. >> he was barred from using the internet he could not use the internet. so he went on twitter, which, you know, he with could have that argument about whether or not that's the "internet" or not, but do you believe -- and it sounds like you do, phil, that tweet kind of doomed him. >> yes i'm not an expert in the japanese legal system, but let's put one and one together he goes on twitter, and he says you want to hear the real story? i'll have it for you next week 12 hours later he has been arrested again i think let's put it together that japanese authorities are making it very clear, he is not holding any kind of a press

conference there could be a deal made in your space does ghosn's ouster ease that up or make that more difficult? >> i think it makes it more -- definitely more difficult when it comes to nissan renault no doubt about that. they have got so many balls in the air in terms of what the future is for that alliance that any potential move that they might make or overture they might make to fiat chrysler is much more unlikely to happen when you talk about his interest in fiat chrysler, and let's keep in mind, brian, fiat chrysler holds the cards here

they don't need to make a deal unless somebody comes to them with something that is so good for the family that is -- has the controlling stake in fiat chrysler let's keep that in mind. people continue to throw them out like they are the poor company that needs to be rescued. they do not need to be rescued >> very quick question here, and i'm -- you know, we do the random interesting rbi given the show we're not going to do it today too much news. this will be the rbi is it possible then, phil, that we'll see renault and -- on u.s. highways in the next couple of years? >> well, they both would like to be on u.s. highways. i think that that is more unlikely than it is likely just because entering into a new market is such a huge, huge commitment financially for any company, and you better be ready with your a game when you come to the u.s. market you come in here, and say, well, we're going to take what we sold in paris and we'll just sell it in the united states

you might find some people who will buy it, but you won't be successful i think that while they would like to be here in the u.s., i think it's a ways off. >> i bet you elan musk and his twitter habit are glad they don't reside in japan. see you on "squawk box." thank you very much. >> sounds good >> all right here's our money investments and how they look right now. 5:37 eastern time. stocks not giving us indication as to which way this market wants to go. by the way, if you haven't been paying attention at home, the s&p 500 is on a five-session win streak heading into today. something else to watch. the semi-conductor etf, the smh, no, not shaking my head, it's a semiconductor etf. this is seen as a leading indicator for technology and that etf has been on a tear lately as well a lot of hope around a china deal that brings us to your next guest. high level trade talks between the u.s. and china picking back up in d.c. today president trump will hold a sitdown this afternoon with chinese vice premier in the oval office

joining us on set is our own eunice yoon. it is fantastic to have you in the house. >> i am not in a box >> i know you are on vacation technically, so thank you. are you headed d.c. this afternoon? >> oh, i'm traveling with the chinese delegation >> you are >> just kidding. >> what do you expect to be the main topic today, and what do you expect to be the likely outcome based on your reporting? >> likely outcome, i think, is going to be there will be some sort of trade deal just unsure exactly whether or not it's going to be something that both sides would like to see long-term. is it going to really be effective? it looks as though the trade deal is still hanging on the same issues that we've been talking about for a long time. enforcement and whether or not the tariffs are going to stay in place. the chinese are going to be asking for the tariffs to be lifted immediately they don't want the tariffs. the tariffs are ab uncertainty in the economy the economy isn't going as well as they would like when you look at the economy relative to other countries, still okay, but it's a big

uncertainty and it's affecting sentiment. they're going to be asking for that in ermz it of enforcement, though, this is something i think -- >> that's the sticking oint. >> this is really, really hard really, really hard. as you know, the u.s. wants to be able to make this deal enforceable. they want to be able to say to the chinese, we're going to have from what the talk is, that this could be, like, a six-year deal. you're going to purchase a whole bunch of stuff, maybe $1 trillion worth of stuff. we make sure you do that we make sure that you abide by this agreement, open up, say, for example, get rid of the jvs. >> joint ventures. >> yes if you don't, we'll be able to slap punitive tear ofs on you, and the chinese have been digging in their heels and saying no way. we are going to -- this is going to affect our sovereignty and the way we are viewed back home. >> we have an idea as to how president trump is going to come in this is a bull in a china shop pun on that one. what can you tell us about the man, the chinese vice premier.

>> he is a very personable guy he is the president's right-hand man. he is not necessarily so connected with the bureaucracy, so within the chinese bureaucracy people see him as president xi's guy, and not necessarily, say, the ministry's guy. >> does he have the authority to make a deal, or will he bring something back to xi jing ping >> that's the speculation as to why the u.s. delegation came out last week. that they had to -- that that negotiation had to be seen in china as a chinese negotiating in china >> from what i understand, they did not meet with xi jing ping they did not >> no. >> yet, we have the reverse where their delegation is meeting with our president >> yeah, yeah. i mean, that is already going down as -- well, there's a lot of speculation right now in china and especially in the markets that this means that a deal is close. president trump is going to want to make some announcement as to the timeline of his meeting with president xi, and so in the

chatrooms, a lot of investors were starting to place bets on ports, shipping, other stuff like this, that they think is going to benefit from this trade deal, and they want to see this trade deal done because they think it's going to be good for the markets. at least from an investigate standpoint >> it's a big deal listen, we love watching you if you use the bull in the china shop line, you better credit us. >> i think that one has been used before. i don't think you made it up >> eunice, awesome to see you in person thank you. i was going to get her i knew at some point i was going to get her going >> just looking at you makes me laugh. didn't mean that sorry. >> just looking at me makes you laugh. thank you, eunice. your final appearance. coming up, explosive new testimony from wynn ceo as he tries to salvage a bet on mass marks and what he said about steve wynn that is going to get a lot of attention today trust us stick around for that right after this - i love my grandma. - anncr: as you grow older, your brain naturally

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housing front and center krs northbound's latest net-net event. tyler matheson sitting down with lending tree ceo and cfo, and here's what the lending tree ceo said about mortgage rates and the impactbusiness >> in the mortgage business lenders have -- it's the only -- it's the last bastion of lending where they have fixed capacity,

where they need people to process and fund loans, and that makes it very similar to the hotel business, the travel business on-line when lenders need us most, it's when the market is worse for them, and when they -- when their coffers are full, they don't have as much there's a counter cyclicality that keeps us going to the right. you can head over to cnbc.com/net-net >> explosive testimony from wynn's ceo as he tries to save a $2.6 billion bet in massachusetts. contessa brewer joinz joining us now with more on this story from boston, and some information, contessa, that is no doubt sure to get a lot of attention today. you know it. >> yes, i do, brian. the hearing, in fact, is going to quick okick off today with me testimony from matt maddox his suitability is in question here in connection with the

massachusetts gaming license he has been with the company since 2002 he was known to be a protege of steve wynn, and the investigators grilled him yesterday about what it says about his leadership that he was kept in the dark about multiple settlements and allegations of serious sexual misconduct. >> there were a lot of different people that i think were trying to protect steve wynn. the last thing that they would want to do is tell me. >> why is that when they report to you >> i think i'm known as a very straight arrow i am the one that would always -- >> but one they can go right around >> that's -- you know, mr. wynn was the boss i wasn't >> the investigative report and, in fact, this hearing is painting a picture of a public company completely ruled by one

man. in fact, the board testified that when this littany of alsos became public, they were frozen in place remember, elaine and steve wynn had been in this long protracted hostile litigation, and the board was largely lured into picking sides, and they picked steve wynn wynn resorts does not contest the conclusions of this investigation. that it failed to protect employees, that it didn't apply its own policies to steve wynn and executives who knew about the allegations, didn't report them to the board. the gaming license here hangs in the balance, and we heard from a business consultant hired by investigators testifying about the financial stability of this company and that it depends on retaining this gaming license in boston in fact, board chairman phil satre testified we don't have a business if we don't have a license. i should mention that steve wynn did not cooperate with the investigators, but he continues to insist he was not involved in any way with coercing employees

into relationships the hearing kicks off, brooirn, at 10:00 today we do expect to hear from elaine wynn giving testimony today as well >> okay. contessa, a couple follow-ups here the former general counsel now largely seen as instrumental in hiding or covering up this behavior that from your reporting yet, he walked away with $10 million. why? i imagine much has been made of that >> oh, the regulators were grilling ceo matt maddox and the compensation team of the board on this very issue kim sinatra was largely seeb as the person responsible for keeping a lot of these allegations and the settlements from reaching the knowledge of the board. keeping them from then president matt maddox. and why she was allowed to walk away with nearly $10 million rather than being fired for cause, the board said -- and matt maddox said they just felt like they needed to move on and

turnover a new leaf. she was nine and a half years into this ten-year deal that would pay her a much larger salary, and they felt like rather than dealing with a threat of litigation, they would let her go, and that was the best thing to do for the company. contessa, thank you. >> thanks. also, we're on top of three major developed other stories this morning we're learning more about what caused last month's deadly boeing plane crash carlos ghosn back behind bars. he was re-arrested in japan overnight. we are counting down the high stangs trade talks between president trump and china's top trade representatives. more details as a busy worldwide exchange returns right after this

so much going on, but do not forget about the he federal reserve interest rates jokes now to talk more about that is director of global macrofor fidelity investments and lindsey, chief economist at steefle. is the united states going to be in a recession or a major slowdown by new year's eve this year >> it's very clear that we're losing momentum in the domestic economy. we are seeing a loss the key sectors of the economy are telling the fed that they were very right to move to the sideline, and at this point we need to think about moving from neutral policy to defensive policy as the risk of recession does rapidly rise. not only for 2019, but in particular when we look out to 2020

>> does the fed cut rates? >> i don't think they cut rates that soon. i think the fed will remain on the sideline they're going to remain patient for some time. particularly as they continue to draw down the balance sheet. remember, they're not going to right-size that until september is what they've told us as of late i do think the fed is going to be increasingly focused on the data and prepared to give us that first rate cut. we have it officially priced in at the first quarter of next ye year, but we could eedsly see that moved up to the third quarter of this year >> how much of this incredible stock run in 2019 has been the fed getting dovish, or the fact that we simply overreacted and sold off without reason or rationale in december? >> it probably should have been a 15% decline, but we had lack

of liquidity we had foreselling and momentum trades, et cetera. squofl, the fed plays a huge role, and the fed did pivot. the fed is basically done for the cycle stopping just shy of sort of neutral or if you think our stars at 2.5% nominal. now the question, of course, is that the market is pricing in a rate cut, 2.5 rate cuts over the next year and a half or so, i don't think the fed is in a hurry to cut rates obviously, they are paying attention. the street is looking for a v-shaped recovery. if that v turns into a u or an l, then probably we will see rate cuts, but if we do see the

recovery that the street is looking for, following q1, which, of course, worry going to be reporting on pretty soon, then i don't see why the fed would be cutting rates here and maybe just pivoting to neutral will be enough for now >> about one minute left the transportation index up six of seven sessions nearing new highs. is it getting it wrong >> well, i think we have seen some pockets of improvement. we've seen better numbers in terms of construction, in terms of manufacturing a lot of the recent improvement has been on the inventory side you couple that with slower growth regardless of some of the ancillary indexes, it's all about the consumer that's likely to translate into maybe a short-term improvement in some of the figures >> both have a great day thank you very much. thanks for watching. just a quick recap on a busy news thursday. new details on boeing.

carlos ghon re-arrested. trade talks kicking off in washington d.c futures right now are flat, but anything can chang quk x"s xte. we'll see you tomorrow

the ethiopian government leasing its preliminary findings into what caused last month' deadly boeing plane crash. details and trade ahead. ousted nissan chairman carlos ghosn is behind bars again. we'll tell you why and show you what he said after his most recent arrest. plus, high-level trade talks set to resume today. president trump expected to meet with china's vice premier in the oval office. it's thursday, april 4th, 2019 can you believe this lebeau, two straight days. do we deserve this

does anybody we love this "squawk box" begins right now. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernan and andrew ross sorkin. let's check out the u.s. equity futures. another update from the market yesterday. in fact, we have now seen five up days in a row for both the s&p 500 and the nasdaq right now it looks like those futures are indicated slightly higher but could go either way dow futures indicated up by five points >> woel talk more about that too because october has been