days setting up for the next leg higher. >> campbell's soup, new ceo, turnaround story. >> jm smucker. >> follow the markets. dow down by 150 points kelly and the exchange crew pick that story up right now. >> thank you, scott. hi, everyone welcome to "the exchange." i'm kelly everybody vaps here's what's ahead this hour. a two-front trade war. the administration threatening europe with tariffs as it continues its battle with china. we'll look at the consequences and the street's new bet, one major dow stock is getting a lot of love in the past week ahead of a major event we'll tell you the name and the details. apple is doing something it hasn't done in eight years, walmart is rolling out more robots and a socially minded s&p 500 is coming. that's all ahead in rapid fire we begin with the markets as scott said, bob pisani is down at the new york stock exchange with a look. hi bob. >> hello, kelly.

the s&p threatening to break an eight day win streak two catalysts for the sell-off first tariffs and another downgrade to the world economy the trump administration's proposal for additional tariffs on european goods and retaliation for eu subsidies is having a predictable affect on the industrials, boeing, cat r caterpillar, 3m, weighing on the dow. also not helping another downgrade of the world economy from the imf, the third downgrade in six months. the world economy will grow 3.3% this year they say, down from the 3.5% from the imf they forecast back in january this would be the weakest growth rate since 2019. not surprisingly, crude oil taking a break so exxon and chevron halting their win streak tech in general has been a big driver of the rally recently names like cisco, microsoft, ibm, apple, big movers in the first quarter of the year. as you can see most of them taking a break today kelly, back to you. >> good stuff.

thank you so much, bob. >> let's get more with art cashin director of floor operations for ubs financial services welcome. >> thank you as it good to see you again. >> what is more in focus for you today, the new battle between the u.s. and the eu over the tariffs or general growth concerns that imf is talking about? >> more importantly the new round of tariffs going head to head with europe that makes people think that maybe the nearness of a deal with china is not there. we're already beginning to hear again today that congress is having some second thoughts about quickly ratifying the new nafta if you would or nafta two, so trade is very much on the mind of traders down here and i think that's what's given us a weak start throughout the day. >> if we don't have a new nafta, if we don't have a big agreement with china on trade and whatever happens with the u.s. and the eu, in other words if we have the status quo, does wall

street, does the stock market sell off on that or do you think in some ways that's what they're already expecting? >> i think they would sell off on that. they built up the hopes for a deal with china and have put a nice prop into the market. it's also put a prop under oil and oil and stocks have been rising almost in link step all the way through. i think if it began to look like a semi permanent trade war, the market would definitely sell off. >> are we talking a 3% type of sell-off or something more in the 10 to 15% reprising that would have to happen over time >> it would depend very much, kelly, on how strong that trade war looked you know, was it just a little disappointment that we're mnot moving in the manner we thought, then you would be looking at a 2%, 3% kind of pull back if it looks like we're looking at two years or something like that, with us going nose to nose with some major trading

partners, then i think the sell-off could be more severe. we're going to cross our fingers and hope that's not the case. >> sure. we know the big stocks, the dow stocks, often caught up as barometers of this caterpillar and 3m some of the names bob was mentioning, anywhere you think investigators could hide out if they want maybe some solid consumer names with u.s. exposure that could do well no matter what happens on this front? >> yes some of the consumer names might be helpful and actually some of the tech stocks which is paradoxcle because most of them get more than 50% of their earnings offshore, but they aren't seen as direct objects for tariff wars. you might get a little support in some of the tech areas. >> that may explain the outperformance we've seen. art, good to see you and talk to you again. thanks so much. >> thank you. >> art cashin from ubs let's turn to washington and get more on the trade tension between the u.s. and eu flaring up after the administration proposed a series of new tariffs

against the eu kayla tausche is live with the latest for us. kayla? >> it's the latest salvo in the u.s./europe trade dispute which had gone mostly quiet since the truce last august, but it's ramping up again the u.s. trade representative outlining $11 billion in european goods subject to tariffs echoed by a president trump tweet this morning on that list aircraft, wine and 40 different types of cheeses. it's all in response to subsidies on boeing competitor air bus from the european which president trump says the eu has taken advantage of the u.s. on trade. brussels called the new tariff threat exaggerated and we don't know when the tariffs could go into effect or how high the levels could be, but three white house aides tell me once the china trade talks have concluded the administration plans to pivot to europe. it has a may 18th deadline to autos. hence why president trump suggested a four-week time frame

for this china outcome china has said it's not committed to that timeline but certainly washington is expecting one to come to fruition the question is what happens after that >> kayla, you mentioned wine and cheese, which makes me wonder if that's more symbolic than substantial. there's many ways even the car issues we've seen floated time and again, to real hit europe where it hurts, is this meant to get to it or by targeting wine and cheese is it more symbolic >> the spat back and forth has been politically symbolic. one of the reasons europe targeted motorcycles from wisconsin from harley-davidson and bourbon from kentucky because they know where some of those pressure points are in the u.s. similarly the u.s. knows where the pressure points are in europe the auto tariffs would certainly be more painful across the board, but this list of $11 billion in goods, it's a politically sensitive list you'll hear members of the administration coming out and

saying it's not enough to ding gdp. i'm sure that wall street strategists would say the same thing, but more about the tenor and the relations between two allies fraying and what that means for trading relationships going forward. >> that's a bigger one thanks kayla tausche. my next guest says he isn't worried about the u.s. fighting two trade wars that doing nothing is also not a good long-term strategy joining me is larry lindsey, ceo and president of the lindsay group and former director of the national economic council. welcome, sir >> thank you it's good to be here. >> it's good to see you. first and foremost on this issue about tariffs which art cashin a moment ago said if wall street starts to think these are semi permanent we're talking about a sell-off, larry, so are we looking at that possible outcome and are we really likely to get big breakthrough deals with mexico, with the eu, with china? >> well, first thing i learned in life is never to disagree with art cashin. we'll start there.

but with regard to the basic trade war issue, the problem with the subsidies of air bus go back 14 years. we've been doing nothing for 14 years. i think it's pretty clear the fractures on our side, the wto will rule there, so here's your choice do you want to continue to do nothing or do you once to say okay, 14 years is enough i think the way to think about this, it's game theory that's not necessarily, you know, a start of a trade war. >> larry -- >> game theory within the general trade. >> is it fair to say that the u.s. consumers, in a way should be told, we're asking you today to pay the tax to bear the brunt of these tariffs in order to achieve, you know, something really important long term is that a fair trade >> well, first of all, the u.s.

consumer is only going to pay a very small fraction of the tariff the goods we're talking about, wine and cheese, are supplied and elastically demanded we have a lot of alternatives. i love bordeaux but california has perfectly good products. it's going to be very hard for europe to pass the tariffones to us. most of the tariff will be borne over there >> and so -- >> that's why those goods were selected, by the way it wasn't politics it was who's going to pay the tariff. >> substitutability. final question on this, it's just a lot of people are saying has the economics community, you know, have they lost, you know, free trade discipline or faith or is it just that this is ability getting better deals for the u.s. in the long run and if it means again in the near term that we're talking about a drag on the economy or a, you know, hit to consumer or businesses, we're seeing all of this, even

though we still grew 3% last year, is there just this belief that in the long run we'll get back to free and fair trade or is it that people are saying you know what, playing by the rules and having a good structural setup is more important in the long term than continuing this globalization push >> sure. well let's start with how much we're paying even if the president were to put on 5% tariffs on all $250 billion of chinese goods, we're talking about 0.3% of gdp and that assumes we pay it all and that's not the case. the goods in question were designed that china pay most of it that would be the first point. second of all you said go back to free trade. we never had free trade. the chinese have been treating -- have been cheating on every single front for decades. we're not going back to some hypothetical nirvana

we face what we have today them cheating or try and change that cheating. >> yeah. >> i'm not taking a position on right or wrong here. i'm just saying it's not what we taught or i taught back in freshman economics it is a matter of game theory. it's a matter of us trying to make sure that the rules of the road are followed. >> larry, since you're here i want to ask you about the fed and about the nomination for stephen moore and herman cain and you and others said there needs to be intellectual diversity and businessmen on the board of the fed but if someone like herman cain is sitting on the board and doesn't have the respect of his colleagues, right or wrong, is that going to help change the fed or should it be somebody seen as a less polarizing figure and give that person a seat at the table >> herman was the founder of godfather's pizza and did very he well with that. he was also chairman of the

board of the kansas city federal reserve, i think he was there for six years so he understand how the fed operates, how monetary policy is made, so, you know, i just put that out there. i don't think it's a matter of getting respect from others there. i think that would be a matter of course. the key problem here is lack of diversity. the fed has a terrible, a dreadful record of forecasting economics. their average error in the last ten years was almost a full point to gdp and that's in december for the next year, the year that's coming that's pretty bad when you're off by a point so -- and they have some control over the matter. if the reason that they're that bad is that there is no diversity of thought there, they need to have different perspectives and i think that will improve the product.

>> yeah. >> as well as the functioning of the board. >> so final question on this because i thought it was interesting as now people in the marketplace and again, the politicians so to speak are calling for a rate cut, you thought the hike in december, correct me if i'm wrong was a mistake, do you think cuts are appropriate for the u.s. economy? >> no, i don't think so. i think the fed should be patient, very, very patient, before doing anything. i think there are a lot of signs that the swoon we had in the fourth quarter that played out into january and early february is now dissipating it's there in the numbers, it's particularly there in sentiment indicators see how that develops. i think we're going to be growing between 2 1/2 and 3% this year. i don't think that's the situation where the fed needs to cut. >> all right larry lindsey, great to hear from you, thank you so much. >> always a pleasure, kelly.

>> former nec director president and ceo of the lindsay group here's whales is ahead on "the exchange." >> coming up -- a silver lining for states that have been slammed by s.a.l.t plus the treat is falling in love with one big dow component despite its under performance. we'll tell you what it is and why. and why the president's fight with china may be a good thing for europe this is "the exchange" on cnbceg for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

welcome back the new tax law has turned one of the hardest hit parts of the country by those tax changes into one of the hottest investment segments. robert frank joins me now with that story. >> kelly, it's municipal bonds or muni bonds. before you fall asleep this is an interesting story investor flows into muni bonds this year have topped $20 billion. that is the highest in 13 years. analysts say taxpayers who face higher taxes because of the cap on state and local deductions are pouring into munis as tax havens income from muni bonds is exempt from federal tax and often from state and local tax as well. all that demand has driven down yields to the lowest level against treasury since 2001. and that has been great for states especially the high tax states that have been hardest

hit by the new tax law eight of the ten biggest issues in the first quarter were in california, new york and connecticut as well as new jersey and illinois also really biggish be -- big shooers recently yields on illinois bonds are the lowest in the country, now 3.6%, not that far above the ten year. you wonder if wl you're getting paid for the risk. >> it doesn't matter because people need the tax breaks the interesting thing to me, the tax changes made these states more vulnerable because it means people, a higher structural cost of living might be dealing with more people living, more businesses leaving they have long-term headwinds. the way to paper over their deficit issues and so much more if they raise taxes further to cover the deficits they are going to exacerbate the problem they borrow now and you're telling me they are borrowing at the cheapest rates they've been able to even though some of the structural problems have never

been greater. >> the rates are so low, new york city ugts bonds out for the mta, fix the subway system, countries and places in the midwest doing it to restore factories, so the bond market has become the way for these states to finance their expansion at a time when taxs are constrapined >> if it's smart investments like you're talking about, fix the mta that could help new york in the long run. they better hope it works because otherwise these bills are going to come due and not anything left. >> remember these bonds are all backed by revenue, by state revenues, so once those revenues run into problems, that's where you hit the investor. >> thanks. robert frank. meanwhile pinterest is meeting with investors as the ipo road show continues. will the company get the buy-in it's hoping for. leslie picker is live in new york city with the latest. pinterest is talking about some risk factors which apparently include failing to attract new demographics >> hey, kelly, that's right. the slow down in growth of their

monthly active user base is a key investor question and no doubt one that's being discussed in the lunch taking place behind me at the event space here at the event hotel. the first risk factor they mention in their s1 is actually their ability to expand beyond their key demographic which they define as being 80% women, ages 18 to 64 with children in the u.s. they say they may need to expand into other demographics including men and internationally to grow those maus that is important for them because it will affect their ability to serve advertisers, that advertising aspect is the key to monetization for their business other risk factors that they mentioned in the prospectus include competition for users and advertisers, their ability to scale their ad platform which again they've only started really allowing advertising on their platform in the last few years. and they also say that they

expect to incur losses in the future and that they've never had a profitable business model and they can't guarantee that they'll have one in the future. >> yes but i saw, i think about $60 million of losses last year. i have a sort of different spin on the demographic issue because of chuck e. cheese which is going to go public again and said even though they appeal to a narrow subset of the population, there's always new 8-year-olds so there's always someone discovering it for the first time the same way, you could argue there's always going to be women with children coming into the pinterest demographic, that if -- again, maybe goes back to the issue if they can become profitable now they might have a steady pipeline. >> absolutely. and, you know, women represent 50% of the population. women between 18 and 64, there are a lot of women that fit that mold and maybe some of them are more actively engaged on pinterest than others and their ability to tweak their product or have more offerings on their site could attract more users to their site

they don't necessarily have to expand to attract more men and expand internationally, but that would be an easy way for them to grow those maus, especially back to growth rates they were a few years ago. >> sure. thanks so much leslie picker following the road show for us for pinterest. coming up, donald trump is the one check on china's european march that's the headline of niall ferguson's op-ed diet fads and fast food, healthier menu mace help customers stay on target but is it helping fast food companies meet theirs. we'll talk about that when "the exchange" continues. >> want to get social with "the exchange," e-mail us at theexchange @cnbc.com or find us theexchange @cnbc.com or find us on twitter @cnbctheexchange. who can help me build a complete plan. brian, my certified financial planner™ professional,

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welcome back to "the exchange." let's get you caught up. stocks are off session lows the dow about 60 points off the level, down about 178, the dow also again today is the worst performer. the s&p is down 0.5% the nasdaq down by 29 points here are some of the individual movers american airlines is falling today. the airline cutting first quarter revenue guidance due to the continued grounding of the 737 max planes american has recovered a bit in the session down less than 2% right now. lyft is once again below its ipo price of $72 the stock is down more than 9%

so far this week 3.5% of that is today. it's trading just under $68. and u.s. steel is on pace for its worst pace since november the stock downgraded to under perform at credit suisse those shares are down 8.5% to sue for a cnbc news update. >> hello, kelly. here's what's happening at this hour, everyone attorney general william barr appearing before a house subcommittee where he was peppered with questions about releasing in full the mueller report and he said he would only release a redacted report within a week >> i've said what i'm going to say about the report today i've shou i've issued three letters about it and i was willing to discuss the historic information of how the report came to me and my decision on sunday but i've already laid out the process that is going forward to

release these reports. >> russian president putin calling the mueller investigation, quote, complete nonsense saying it validated moscows denials of collusion with president trump's campaign. he was speaking on a forum on the arctic. honda's acura is recalling more than 300,000 mdx suvs in the u.s. it covers the model years 2014 through 1e9s water can leak into the light seals and cause electrical problems you are up to date that's the news update this hour back to you. >> thank you very much sue herera here's what's coming up on "the exchange." >> ahead -- is disney about to get its magic back apple is about to do something it hasn't done in eight years. and walmart embraces robots. 's all coming up in rapid 's all coming up in rapid fire

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delta airlines ceo interaction to quarterly numbers, safety in the air and competition for travelers tomorrow on "squawk box. >> welcome back. let's catch you up on a few stories that should be on your radar. it's time for rapid fire here to break down the headlines are eric, robert and melissa not quite frankly speaking but two out of --

>> it works with -- anyway first topic wall street loving disney this week a butch of analysts upgrading the stock or boosting target, the company holding an analyst day on thursday where it's expected to share more details on the streaming service and also it's subscriber expectations i'm surprised everyone is running the thing up into this event. >> well, you know, the upgrade, you mentioned a lot of wall street is upgrading the stock. they say it's going to be death clearing a lot of negative sentiment going into this because of the fox acquisition, seen as pricey and dilutive to the family brand that disney worked so hard for so -- the stock is running but the question is, take a look at stock over the past two years. where was it two years ago >> about where -- >> exactly where it is today. >> that was surprising >> i'm excited about this. i don't get excited about -- >> about which, the investor day or streaming service >> the early teases look

amazing. first marvel and then pixar and then you see star wars and then national -- and all this stuff together in one bundle i don't know what the price is going to be. >> that's going to be a factor. >> this is the empire strikes back, literally. this is a company that was sort of left on the side for netflix, you know, rise and now you think about disney catalog, all the new stuff from here on out is going to go into that bundle rather than netflix, that is going to be massive. look at the multiples between netflix and -- >> if you didn't have children would you buy this is the total addressable market much smaller and of that potential business is going to get smaller percentage of that >> there's many people who have netflix now just for the kids. i think that's the only time we've turned it on, little baby -- >> the empire strikes back, it's like becoming a conglomerate again. all these media companies got big and saw cbs and viacom wanting to get smaller, are we going to get elizabeth warren we

have to break up disney. espn used to be the only story and now we're talking about that. >> they want that to happen, though they don't want to talk about espn that's -- >> reinventing themselves -- >> although espn plus the early read is pretty good, right. >> it is pretty good, but i'm a big sports guy and not paying for that there's enough on tv am i going to have to pay another $5 a month. >> what do they do with hulu they own it but don't really own it >> losing money. >> how do they integrate the three things together. the bigger question how many of these services will people pay for every month? you have netflix, spotify and this -- >> this is my prediction they will start making it harder for you to leave right now it is easy to turn -- don't you think to turn these on and off. either that remains a part of the appeal -- >> like a gym membership. >> think about trying to cancel cable it's so difficult. >> it's an automatic monthly -- when was the last time you thought when am giannuli going

paying that netflix bill shares of apple, disney and apple are the with two movers, apple on pace for its first ten day winning streak in nin years. busy two weeks according to a top analyst, the company is working on bigger screens now for its i pads and laptops. >> i just want to say that i spent time with the spreadsheet earlier today and math equations. if you flipped a coin, 2,000 times, you're going to get ten in a row heads so the fact that this will be ten days in a row that apple is up, hasn't done that in nine years. >> wow. >> you should be expected to get that -- >> how often >> about every 2,000 trading days which is eight years. it's like this isn't a big deal. it's going to happen. >> i wonder how many stocks do that given the volatile markets. it does seem to be a proxy to the market than anything that's suddenly so great about apple. >> bingo.

>> still down. >> there's no doubt that tech hit an all-time high and apple on the longest winning streak since 2011. >> do you think it's interesting b apple is emblematic of that. it's not even fang apple was the odd man out. the low valuation, it was kind of a different story and yet here it is leading the charge. >> i think there's a lot in the past few days there has been a lot of positive sentiment on the stock ultimately the concern of the stock that had brought it down back in the fall which is the lack of innovation, nothing has changed since then the subscription services, larger screens for an ipad or iphone those things aren't innovative they're iterative. if you are concerned or were concerned that apple was losing its innovation dna, whatever that is, that's still there today. >> that's why you said we're still kind of down from six months all right. topic three, walmart, creating more jobs for robots the retailer is expanding its use of machines to help from

everything from scrubbing floors to tracking inventory and unloading trucks and adding 6 foot high towers in nearly 1,000 stores to let shoppers pick up their on-line orders without having to interact with anybody. this story is interesting because they really are allowing technology to take the place of some physical labor jobs not just this is our cool robot. they're really rolling this out. >> robots were going to be great for self-checkout. it's the worst experience at any store. >> i always opt to self-checkout. >> it's the worst. >> you always need somebody anyway you always need like two people to help you. >> a lot of research shows you doing kid tasks like folding laundry is difficult for robots to do. they take a lot of research to do that but driving a car and flying a plane, robots can do that well. a lot of tasks are mean knee yal tasks, picking it off the shelf, those can be difficult, interesting to see how this is going to work. all these people, monitoring the robots to fix when they can't do

it. >> this is the best way that technology can change the workforce, not replacing workers, but giving them time to do more valuable tasks that pay them more. maybe they need more skills to do that job and that's where we need to fill that gap, but not replacing workers but shifting the workforce towards the higher value stuff sothey don't have to just scrub floors and restock stuff in the middle of the night. that's the good thing if it goes -- >> if it does that. >> but it's probably no coincidence that the advent of the robots come as minimum wage goes up. across the board. >> and you can't find workers right now. >> yeah. >> it's not just to replace workers do things you can't find workers to do. >> the cost issue feeds into it and this urgency to come up with other solutions. now next up, s&p, dow jones set to launch a new socially minded index bottom line, there's going to be an s&p 500, esg index, the environmental social and governance becoming a big thing, the company aiming to meet increasing demand for

sustainable investment products and will not include producers of tobacco or certain weapons and use data from the u.n. to determine eligibility. >> the first thing i did was did math >> there we go >> so i joined -- >> spreadsheet math. >> all i cared about does this esg index out perform the s&p 500 over any length of time. you want to back test. i wanted to do the math on that. over five years it did, 62% versus 57% for the s&p 500, over ten years it also did 263% to 153% on the overall index. but here's the thing, here's the catch. you want to feel smart and do that math, keep in mind that there are survivorship bias in calculating these indices. you can't just take the winners for today and back test them there's a reason. >> right. >> there is a reason why they are the winners that are being chosen to be put into the index today. and so it's not as easy as just crunching the numbers and saying you know what, esg over time

performers we don't know that. >> "the wall street journal" had a story saying a lot of these funds don't even vote in favor of pro-esg things like diversity and climate stuff. it will be interesting to see do they vote in the way they're structured. >> it's a marketing ploy, but i would say talk to all the wealth management firms and right now the millennial investors and the kids getting all this money from inheritance this what is they want. >> and i was going to say -- >> responsible investing >> i'm not sure they are looking or care about the return i think they say you know what if it's half as good i'll take it because i'm doing the right thing. >> shame on them they deserve fewer returns if that's the attitude they're going to have with their money. >> finally today, stanford university is expelling a student, expelling, whose admission was tied to $500,000 donation from the charity at the center of the recent college admissions scandal this student was reportedly accepted due to sailing experience though she never participated on stanford's sailing team, wasn't recruited through the school's athletic process. stanford is vacating all credits

she earned while on campus or the student she or he, do we know? >> i don't know. >> do they get a refund. i want my tuition money back and $500,000. >> they're lucky they're not thrown into jail. >> this is a serious move by stanford i applaud them for saying we are expelling a student, even if it might have been the parents. the student may not have had any involvement. they took back all the credits. >> wonder what the grades were, if the grades were fine -- >> no -- >> the school is -- >> they didn't know they should be expelled and even doing well in school they should be expelled. >> otherwise the message is con your way in and pass and you will be okay. >> as long as you get in. >> that's not the message we want to send. >> an unfair analogy but some of the college basketball coaches who say i didn't know anything, this was all happening -- >> my assistant coach did it not me. >> somebody has to be held responsible. if you're in charge you should be held responsible. if you're the student who benefited you should be held

responsible. >> for parents if they think that their child is going pay the price parents would never engage in that behavior. >> totally agree. >> the minute they think it's only them who will pay the consequences this will keep happening. >> the only way to get it to stop thanks eric, robert and melissa ousted nissan chairman carlos ghosn claiming his innocence saying he was the victim of a conspiracy the details and what it means for his future next. it's also been one year since facebook's mark zuckerberg testified on capitol hill. senator mark warner will join us on "power lunch" to discuss that and his new tech regulation bill don't miss it. ♪

feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. former nissan chairman carlos ghosn's lawyers releasing a video after his latest arrest in which the executive proclaims his innocence and says he's a victim phil lebeau joins us with the latest another twist in this saga,

phil. >> kelly, this is the first time we've heard from carlos ghosn since last november. it's been a while since we've actually seen and heard from him. let me bring you up to speed on where his case stand right now he's back in jail, arrested last week he's there through the 14th. cannot post bail charged with breach of trust here's what he has to say about the charges against him which he calls ridiculous. >> this is a conspiracy. this is not about specific events this is not about, again, greed, this is not about dictatorship this is about a plot, this is about conspiracy, backstabbing that's what we're talking about. we're talking about people who really played a very dirty game. >> this video was shot last week at carlos ghosn's attorney's office look at shares of nissan since carlos ghosn was arrested really haven't done much. keep in mind he was voted off the nissan board on monday kelly, we may not see this play out in japanese courts until

late this year like september, october, november. >> does that mean he will be in pris than whole time >> probably not. he's there through the 14th but there's a japanese holiday so this could get extended another ten days when he's in jail there, he has no contact with his family and very limited contact with his lawyers. >> i have to say, for those of us coming from the american system of justice, regardless of his innocence or guilt, this seems like an alarmingly harsh way of dealing with suspects, doesn't it >> you are not alone a lot of us are learning for the first time what the japanese justice system is about and this is one aspect people are saying really, that's how they do things >> apparently it is. phil, thanks so much phil lebeau following that story for us catch his exclusive interview with delta ceo ed bastian on "squawk box" at 7:00 a.m. eastern time. like a lot of americans, fast food and fast casual are working to get healthy we're going to look at what chains are jumping on the

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food and fast casual chains are trying to catch up. >> reporter: we're getting healthier. >> we all want a tighter tush right. >> reporter: mcdonald's introduced fresh beef, promised to serve cage-free eggs by 2025 and removed artificial additives from several burgers panera has been serving clean food since 2016. brands long associated with foods served fast are trying to avoid the no vote from diners who don't want to compromise on nutrition. >> you might have one person in a family who has a set dietary preference and that way at least, you know, you have the alternative to eat healthier and better for you. >> reporter: in january chipotle went a step further introducing lifestyle bowls and they can promoting vegan and vegetarian

lifestyle bowls and double protein portions >> gives people more alternatives for how they want to eat and consistent with the lifestyles they want to eat. meatless monday, we have the solution for them, it's the ultimate >> really clean food and real ingredients, real kate rogers jw the whole 30, one of the different items in this campaign was genius >> it certainly is really smart and analysts, you know, said kudos to chipotle because repackaging the healthy ingredients that said he really wants to recognize more. as ceo and presenting them to you in a new way and also doing it digitally pushing you to, you know, order on mobile or online. really smart, but you heard what he said and also, rj said. people want customization and want these healthy options and it's good to have a wide array of options so that people don't say, you know what, we can't go to mcdonald's or taco bell or chipotle or whatever it may be

because they don't have the things we're looking for. >> i know they try to push these mobile and digital offerings anyway, we can't make it 40 items long or 100. but online or digitally, is it possible that the other chains would or could or should say, you know what, we also need to make sure when you get on our mobile app, if you're on a whole 30 diet, there's one or two or three options for you to click right away >> how smart is that you can certainly also try it and go in order. these things in store too. you have the option with either platform but prepackaged for you and people love customization. we've seen this across the board in the restaurant space. people want more options, they want to be able to do it quickly but also their way the companies listening to customers and really getting it right are seeing a lot of success. >> benefitting as a result good stuff, kate, thank you. kate rogers. coming up, the trump administration is facing a two front trade war as now proposing tariffs on the eu while tensions persist with china the hoover institute with the old rgonfeus joining us with his take on that next.

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two trade wars, one in china or europe.

$11 billion of european goods you heard earlier. this is erupting as china is making a big economic push into europe for more on this, the hoover institution neil ferguson joins me now good to have you back. >> good to be back >> is there a significance with the u.s. eu trade spat heating up a little bit and china recently signing up italy to its one belt one road initiative >> well, i think it's a reminder that trade wars a multi-player game sometimes people talk as if just between the united states and china. the deep blue sea, they're under considerable pressure from the united states, not just over airbus, which is just the latest

issue, but also wouldn't be surprised if the president announced the tariffs on european automobiles next month. he has certainly got the option to do that and would hope the german economy especially hard at the same time, president trump feels that the europeans aren't paying their way for defense because their defense budgets are well below the nato target of 2% so he's coming after that not just over trade and airbus meanwhile, the chinese have been making for some years a play for europe, investing in europe, and most recently, persuading the italian government to start a memorandum of understanding towards the so-called one belt, one road or belt and road initiative it's a difficult position that the europeans find themselves in well aware the chinese money comes with strings attached. >> you went so far over the weekend in your column to say donald trump is the one check on

china's european march so this is interesting because at the top of the hour, spoke to larry lindsay that fighting these wars is not a long-term strategy either. now you're saying in the u.s., but if they do, they're letting china make inroads because weakening the traditional alliances that we've seen. but larry is saying if we don't fight they wilm, the u.s. has na at the table for getting better terms on trade it feels like we're stuck between a rock and a hard place too. >> i think the way to conceive of this is the way that henry kissinger does the chinese are gradually bidding for dominance in the whole eurasian land mass the belt and road initiative or one belt one road spreading chinese influence right across eurasia all the way as far as europe and the question for the united states is what relationship do you want to have

with europe? the old transatlantic alliance of the cold war seems in many ways played out and the president himself clearly doesn't have a very keen commitment to it so the kissinger analogy is essentially the united states becomes the balancing power a little bit like britain in the 19th century, offshore, but balancing to try to stop china taking the whole yeurasian land mass under its influence this is the transatlantic relationship and i think that's overdue. >> if we go then down that road to say, america has to be the balancing power to stop china in europe, then what does that look like when we're negotiating on auto tariffs what does that look like when trump is telling these countries you have to spend more on your own defense? should he be going down that road or not? >> i think he should on the defense issue, it's a no brainer. the europeans have not been paying their share i think only greece is really on track to meet its nato target

and germany shows no sign of making it and that's a shame, indeed, it's a shocker considering that the german economy is the largest in europe germany stands to lose in the events of increased russian aggression in eastern you're eu what the trump administration should be saying, look, i think this is indeed what robert lighthizer is saying, all you seem to want to negotiate about is a very narrow range of things, whether it's automobiles or airlines, but here's the big question, what about agriculture or all those things that you put behind tariff and non-tariff i think the pressure on the europeans, number one, to pay a larger share of the burden for europe's defense and that is long overdue two, to open up their market more broadly to trade with the united states. and again, there's resistance to that, political resistance, especially with the approaching european parliamentary elections. >> it is multidimensional chess.

developing some sympathy for our negotiators. chief neil ferguson, thank you for joining me appreciate it very much. that does it for "the exchange" today. thank you so much for tuning in. i'll join melissa for "power lunch" which begins right now. i'll see you in a minute, kell melissa melis melissa lee here the best move for your money a year ago since mark zuckerberg appeared on capitol hill a crackdown on tech. one of the lawmakers backing that plan will join us exclusively. and how china could spark a commodity super cycle that could last more than a decade. "power lunch" starts right now let's get a check on the markets at this hour three major averages with the biggest one-day slide since late march. in gentlemen jeopardy of fallin first time apple