i'm phil lebeau at the new york international auto show. i'll tell you when "nightly business report" returns. >>> ody's lowered its credit rating on tesla by bun notch y yesterday. the credit rating agency sites the company's large negative free cash flow and the shortfall in production of its model 3 electric car. tesla is also under scrutiny by rtthe national transion safety board which is conducting an investigation is a fatal crash in california. the stocked 7% to 257.78. >>> federal regulators want to cancel planned increase for meyer penalties for gas guzzling vehicles. the rule was put into place by the obama administration. it called for a dulling of fines if the cars failed to meet nimum fuel economy standards. the national highway traffic safety administrion says that a higher penalty would have a negative economic impact. t surprisingly automakers had opposed that increase saying it could raise compliance cost by $1 billion annually. >> trucker paymes rising. acan stud audio buy the american trucking association showed the media

twitter, final trade >> three days with lebeau.movie >> brilliant. >> you know what else is brilliant. big cap pharma names, pfe. >> i'm melissa lee see you back here tomorrow at 5:00 for >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now >>> hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. you can't just go back to a stock that you hated for

phil lebeau more. >> reporter: mexico's auto production is surging,an up mor 6% this year. that may come as a surprise given the heated rhetoric from president trump who has threatened to slap a border tax onarsnd trucks built south of the border and sold in the u.s. trump's biggest complaint, as exico's auto production has shot up to nearly 4 million vehicles a year, sout have imports. last year g.m. exported more vehicles to mexico than any other automaker and it has no plans to shift production from mexico to the u.s. >> i believe that when you look the complexity and the long lean business that we're in, those shifts just aren't ronomical. >>orter: the fact is gm makes auge profit in pickup truck that it imports from mexico. fiat chrysler has increased proksz south of the border while audi opened a plant there and mercedes and bmw will do the same thing. all of this has negotiators from the u.s., canada and mexico are struggling to find a way to rework nafta, a trade pact that even the automakers believe should be updated. >> when you think about nafta5 years ago and yo

i'm phil lebeau. we'll explain when "nightly business report" returns. >>> a expected the weinstein company has filed for bankruptcy. the movie studio was crippled as you now byar the sexuals men and assault allegations made againster fou harvey weinstein. the company has been acquired now through the bankruptcy process. >>> expedia's orbit subsidiary discovered a data breach. the travele booking s says a hacker may have accessed data late last year on one of its older platforms. >>> united airlines is temporarily suspending transport of animals in the cargo compartments of their planes. they are ao conducting a review of petshipments. it does not affect pet owners bringingest pets on board in the cabin. >>> as we reported yesterday, the fatal accident involving one of uber's self driving cars is under investigation. clearly the auto mouse industry is deal withmp colications. a start-up in silicon valley thinks it aas annswer to a problem. phil lebeau takes us for a radin i had i mountain view, rn cal

phil lebeau, nightly business ch report, ago. >> it is time to take a look at some of today's upgrades and downgrades. wendy's saw its ratings raised from neutral to sell at ubs. the analyst cites better sales trend and an attractive valuation. was increasedet to $17. the shares rose fractionally to $15.98. macy's saw its rating lifted from buy toold at gordon has ket. the firm expects improved sales over the next couple of years. the call comes just days after the department saw a reported better-th better-than-expected earnings. the stock fell half to $29.25. >> crock's ring was listed to overweight. the rating upgrade follows its most recent earnings lk and a disappointing outlook. the target price was increased to $15 a share. croc stock, i love saying that, croc stock was up 5% to $12.92. the industrial com eaton saw its rating lifted from neutral to underweight at jpmorgan. the analyst there says the risks andewards are more heavily balanced. therice target, $82. the stock down more than 1% to $79.59. >> and still ahead, why share buybacks have surged over the past few months. >>

phil lebeau has our story tonight. >> reporter: think of jaguar, and th is what comes to behind mind sh high-end performance cars. soon this will be the image of jaguar, an all electric p iaced suv modified to become a waymo self driving vehicle. >> we like the idea of something a little bit more compact. as you do a o tourthe world there are very few full electric vehicles with batteries the size of this incredible jaguar i pace. >> reporter: they will join chrysler pacifica hybrid minivans waymo was currentlyg test arizona. later this year they will start giving rides to the public as waymo races to beat auto makers and tech firms with a self driving ride share service. >> one could i easilygine that at some point there will be a shakeout and we will end uph w two or three or four major autonomous operating system players that sort of dominate the industry. t reporter: but followi death of an arizona woman hit by an uber test car in autonomous mode, some are asking if regulators should hit the brakes on allowing self driving hicles on public roads, a concern waymo executives hav di

phil lebeau will talk about healthy returns at the auto show >> it's a big day. event in new york city i did not apply early. i did not get a ticket at some point this week i want to see joe kernen get nothing one of those cryogenic thing, where you get into po secoone oe things, negative 200 degrees >> joe doesn't have an ifb, he can't hear this. >> i know that that's why i said it >> oh, maybe we should try that in a segment >> where you go in for 30 seconds, get blasted >> it's supposed to be like after the gym, to deal with inflammation i think that's la it i what it . we'll work on that have many healthy returns today. >> we'll see you on "squawk box. thank you. >>> facebook shares down 1% in the latest trade after a 5% drop yesterday. investors have lost more than 50 billion in market cap on facebook since the data scandal broke. that data breach raising concerns about tech giants protecting your privacy and maybe scaring off advertisers. let's talk about it with michael horn from huge inc here's the core question, we see public outrage all the time. airlin

phil lebeau takes a look at what that means for car buyers. >> reporter: here's the reality. we're paying more than ever for the cars and trucks we buy. on average, more than $35,000. that means we're borrowing record amounts. in thefourth quarter of last year the average new car loan topped $31,000. and the average monthly payment was just over $500. spread out over five years and nine months. >> there's certainly schething to wn the fact that the payments continue to rise. you know, that the loan amounts continue to grow. especially this year we're going to be facing several rate increases. so we should expect to see those payments even climb probably higher this year. >> the rise in interest rates willin be hig more buyers taking out loans. so for someone with average credit, the current rate is 5.2%. that's up from lt year. and if the federal reserve keeps raising rates, that will ultimately filter down to au loans. and push up the cost of buying a new car or truck. >> i think we were nearing a ceiling and i think consumers are responding to that. and that's why we're see

that's what's happening with phil lebeau right now.one a lot of cool live shots, but this may be the coolest. we're in a phantom auto driverless test vehicle. and i'm not going to be controlling it the car won't be controlling itself it will be driven by a remote operator and why might this be the key to the future of autonomous dveri vehicles we'll explain when "power lunch" returns. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ >>> the fatal accident involving a self-driving uber car is raising new concerns about the future of autonomous vehicles. phil lebeau joins us from mountain view, california, in the back seat of a driverless car. phil lebeau has probably spent more time in autonomous cars than any human being phil >> thank you, tyler. i'm here in phantom auto's test vehicle. now, this is a driveless test vehicle, but the founder and ceo of phantom autos is th

both highers by 2% phil lebeau has the latest >> reporter: you know, people who lmpb say, gas guzzlers have a finite rule set up by the federal government, a tax upon auto makers for certain cars, not suvs or crossovers or minivans, but cars falling short of getting 21.5 miles per gallon, and it's a small list. we're talking about your specialized high performance models that may not have the fuel economy that allows them to avoid the tax. they were going to double the tax under a proposal from the obama administration it was supposed to kick in now we are hearing the ntsb, under the trump administration, is saying, well, maybe we shouldn't force an increase in this tax, and, again, it's a very small number of vehicles that are hit with this tax, and it's not the consumer that pays it it's more that you look at auto makers and vehicles they manufacture. >> i wonder if the larger issue too is what happens with the luxury cars hit by this, but if the administration is looking to roll back fuel economy standards much more broadly. >> reporter: oh, they are, no doubt about that there is a

phil lebeau has more from california phil zblfr we still don't know the exact circumstances surrounding that accident that led to a woman in arizona being hit and killed by a self driving uber vehicle. but this raises the question about what happens with self-driving vehicles when they become confused. we're here at phantom auto in mountain view because this is what they do it is call remote control of an automobile it is remote operation when i get inside this vehicle, you'll see there is nobody in the driver's seat. and, yet, because our friend ben who works for fanlt om auto is doing remote operation of this vehicle, as we start to drive, whenever he hits the accelerator, the brake pad, if he turns the steering wheel, when he does something at the remote operation facility, it immediately is reflected in the vehicle as well. so as we start to go here, we'll give you a sense of how this works in terms of a remote operation. the key point being that while autonomous drive vehicles can operate on their own 98%, 99% of the time, there are tricky situations where somebody needs to step in

phil lebeau will join us to break down the impact of auto imports.alk to bruce heyman who is the former ambassador to canada es etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. today, innovation in the finger lakes is helping build the new new york. once home to the world's image center, new york state is now a leader in optics, photonics and imaging. fueled by strong university partnerships, providing the world's best talent. and supported with workforce development to create even more opportunities. all across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. >>> time now for "the executive edge" and we'll start with french fin

i guess that makes sense phil lebeau, what's coming up?porter: joe, it's always about luxury this year at the new york auto show, a lot of talk about suvs which makes it appropriate that i'm standing in front of the bmw x4 we'll talk about trade, so much more when "squawk box" returns i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than s

phil lebeau has the story. >> reporter: melissa, the ntsb has sent a team of investigators to arizona to investigate what happened with the fatal accident last night in phoenix where a woman was hit by an uber self-driving vehicle, that was in autonomous mode, with a test driver behind the wheel. it was in autonomous mode. after this accident uber announced that it is going to be suspending its self-driving vehicle testing program. there are four of them that are going on not only in phoenix but also here in san francisco, toronto and pittsburgh uber issued a statement saying our hearts go out to the victim's family. we are fully cooperating with local authorities in their investigation of this incident this is the first fatal accident involving a self-driving -- fully self-driving vehicle we'll talk about the tesla incident from 2016 in just a little bit in california since 2014 there have been 59 incidents reported with self-driving pilot programs we should point out that the majority of those incidents have involved a human driven vehicle often rear ending or accidentally hitting a

our phil lebeau is in new york with the ceo phil >> thank you very much i'm joined by john crabcheckwhen you announce a new partnership with jaguar involving the car behind us here why jaguar, why this deal? >> you know, phil, we're self driving technology company waymo isn't a car company. our plan is to bring forward to the world driverless transportation service and really if you think about the long term goal about what we want to do, we want to provide just the right sort of car vehicle for each person in each trip so we started with these chrysler pacifica minivans which are fantastic. power sliding doors. a plug in hybrid we thought it made sense for our next vehicle to go all electric. we like the idea of something a little bit more compact. as you do a tour of the world, there are very few full electric vehicles with batteries the size of this incredible jaguar. it is the perfect fit for us >> you could do it with a number of automakers. some have their own programs already or partnerships. what is it about jaguar and this vehicle that truly appeals to you? >> brand new vehi

phil lebeau joining us from chicago.the president's own twitter feed that has us wondering this? >> he threatened over the weekend to raise tariffs on vehicles built in europe that are imported to the united states that's a possibility he raised over the weekend just how many vehicles are we talking about that are built in the u.s. or built overseas but sold here in the u.s.? it's actually about 6%, 7% overall in terms of vehicles that are built in europe and sold here in the u.s it also raises the question, how many vehicles are built here and then exported? those that, by the way, go to europe, have a 10% tariff on them about 2.4 million vehicles last year, and again, those vehicles that go to europe, that's a 10% tariff those coming from europe to here, a 2.5% tariff. here's the chairman and ceo of audi talking about whether or not all this tariff talk might lead to audi changing its production plans and moving more to north america >> a decision on capacities is based on strategic plans of the company. and surely, no

thanks, phil that's fascinating phil lebeau. how will uber's accident impact the development of driverless cars can they be safe >> jason levine and bob lutz, good afternoon to you both jason, i'll start with you even if it's decided in the coming days and weeks once the investigation is done this death was not uber's fault in any way, that it couldn't have been avoided, whether there was a driver or not a driver, do you feel like the company's pursuing driverless technology is moving things too fast and, therefore, are to blame in some way >> thank you for asking. thank you for having us on this has become a focal point of the future of the automotive industry i think the short answer is, yes, moving way too fast there's no reason at this moment in time that we see these vehicles being tested in a way with no regulations around them, there's no federal regulations, no state regulations and it raises a lot of questions. your previous segment talked about having a remote control driver in the uber circumstance, there was a safety

let's talk autos now with phil lebeau in chicago.ould be another shoe to drop in that sector. tell us. >> a lot of speculation there. when you talk about the auto industry and what the impact will be from higher steel or aluminum costs, almost everybody says the same thing, we source locally, we think the impact will be limited, with one exception. toyota came out and said we source locally, but overall, we think this would substantially raise costs and therefore prices of cars and trucks sold in america. and there is speculation that we could see perhaps an escalation of a trade war and perhaps tarkted tariffs at certain countries that build vehicles there and export them to the u.s. imported cars, what we bring into the u.s., they have limited tariffs. ah, but when we build a car here and send it to other markets, whether it's the eu or to china, there are much higher tariffs, which is why people aric looking at these numbers and saying, well, where do we get the vehicles we're buying here and how much are we seeing of them 45% are

they certainly are phil lebeau, thank you very much >>> all right, play would you rather >> i like this game. >> autos or steel? >> i think i'd rather steel just from the standpoint of playing the momentum trade for the short term as a short term trade, i like steel. again, i think the auto market i think is fine. i think that's going to take a little bit longer to correct >> tim, you've been long steel for a while. >> yeah. we could have a steel short anl in this country. it's how more onic this policy is importing 25% of our steel because we're short. we're at seasonal demand autos though, because again i look at the trade. i think gm is way oversold on. this i think if you look at as much as i believe in the steel story this is going to have a negative impact. there is a lot of pressure on them yeah, we're creating few jobs. i don't want to get into the politics of that this isn't good for the steel industry by the way, the reason the dax closed on the lows, largest exported economy in the world. it's taking it on the chin >> very interesting stuff. >> for me, it's the autos too. i'm

phil lebeau has the details of that >> we finally have a statement from ford regarding these proposediffs for steel and alumin aluminum yesterday ford was saying go through the automotive policy council in washington. today the company out with a statement saying, despite the fact that ford buys the vast majority of its steel and aluminum for u.s. production in the u.s., this action could result in an increase in domestic commodity prices, harming the competitiveness of american manufacturers this echoes, to a certain degree, what we heard from toyota yesterday and today, saying, look, prices are going to go up now, ford's not saying it's going to raise prices on its products, but it clearly is saying there will be an impact here how much remains to be seen. we heard wilbur ross earlier downplaying what the impact might be on the auto industry. there's no doubt people within the auto industry are preparing for ramifications here. >> phil, thank you very much for that phil lebeau for us there. >>> joining our krb cnn exchange, brent from northwestern mutual, gordon and jack from ucx. g

again, general motors down 6.9% last month. >> carl, back to you. >> thank you very much, phil lebeaurd and gm down see what the other numbers bring. better guidance on the overall industry of sales and stock not doing much we're looking at brunswick, this is a name i mentioned a few weeks ago when owl creek a hedge fund put a letter out saying they would like to see brunz wick potentially split its fitness business from its marine business they make boats and also make exercise equipment and the like. that was january 30th and brunswick announced market leading companies and fitness to execute what they say are distinct growth strategies and they are delivering a bit of the value right away this morning. they move fairly quickly after that move by owl creek only less than a month ago, to have them consider in fact doing this. the segment manufactures and distributes names, including boston and bayliner and generated 3.5 billion in sales in '17 for people to get a sense on that. fitness company sales revenues were about a billion dollars and brunswick shares up 6%. >> $5.3 million mar

phil lebeau has more. >> this is one of the bright spots? down market this afternoon on wall street. take a look at the defense stocks and how much, all of them getting a nice pop following this bill. basically because of what it outlines for the military in terms of hardware as well as for the military itself in terms of pay raise. let's talk about the hardware aspect of this overall, this budget for the military will be increasing spending by 10%. it will be $654 billion. that's how much has been earmarked in terms of spending for the military in 2018 it calls for more jets, more ships. you have the specific stocks, whether it's northrup grumman, lock he lockheed martin. take a look at the defense index versus the s&p year to date. without a doubt, if you've been putting money into the defense stocks, this is a better play this year. one last note, guys. people say, how come boeing isn't as uch as lockheed or northrup boeing was concerned about a trade war and what might happen with the commercial airplane business in china. that's a littl

phil lebeau is here on set >> we're all waiting for next week that's really the story behind tess thatbeen some news over the last 24 to 48 hours. let's start off with elone musk twittering -- tweeting over the weekend they're going to slow down deliveries to norway, because they're having troubles managing them going into the country. finally they're awaiting q1 deliveries that's when when you take a look at shares of tesla, anythingingly you are hearding from analysts the i don't think they're going to make 2500 by week this is not a surprise, given the fact that ben callo generally has been pretty bullish. we continue to believe the company will achieve a production rate in a matter of weeks, not months, despite significant kept simple. there's a lot of skepticism out there which ultimately sets of the question so the question becomes, how long do you wait? how long do you say, okay, will it do it by the end of the second quarter if you can, maybe i'll wait, or are we looking further out. >> it seems we've had this discussing -- we could have been having this discussion the last thr

phil lebeau. former cambridge analytica whistle blower testifying, and we have the latest, wilfred?we learned today that mark zuckerberg said he will not appear in front of the u.k. parliament's digital and sports committee the chair had this to say about that >> given extraordinary evidence heard so far today and the things we heard in inquiry, absolutely astonishing that mark zuckerberg is not willing to submit himself to questioning in front of this hearing given these are questions of the fundamental importance and concern to facebook users as well as to our inrequestquirinq. >> reporter: he's sending chief technology or chief product officer as he's not a u.k. citizen, he can't be compelled to appear. this comes as whistling-blower chris wiley said it was donald trump's election victory that made him come forward when he realized the power behind what he had done. he had this to say about the relationship between facebook and cambridge analytica. >> it is categorically untrue, categorically untrue that cambridge analytica has never used facebook data it is -- facebook data and

amazon, netflix and facebook dragging it down but first to phil lebeau at the new york auto show. >> auto sales in the u.s. are trending lower but some automakers are buck the trend. one of them is porsche we'll talk with the ceo of porsc porsche north america and why sales are going up that might have something to do with the tax report that is coming up. you know what's awesome? gig-speed internet. you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. >>> welcome back to "power lunch. let's get down to phil lebeau at the new york auto show with the head of porsche north america. >> the ceo from porsche here with us, and you are up in the u.s. where sales are down. how much of that is attributed to wealthier customers seeing a notice from the tax cut and saying, now is the time

. >> beijing, phil lebeau in chicago, steve liesman in mexico city, kayla is in washington, d.c., leslieicker in canton, ohio, and we start with bob pisani at the new york stock exchange. >> important -- do you think they care about the tariff situation? they care an awful lot 10:45, 11:00, reports started coming out paul ryan, speaker of the house, was trying tochange donald trump's mind about the tariff business that changed things. we were down 150 points, we immediately moved to the upside. what moved would be those most impacted by the tariffs. boeing was up 2.5% boeing moved $17 from the top to the bottom that's about a 5% move united technologies did the same thing. take a look at utx, 128, 127, it's 132 now those are big moves for big, big stocks same situation for some of the other big industrials. i'm pointing out industrials because those are the ones that moved the most caterpillar, $5 up it was $144 a few hours ago. now it's almost $152 we also saw the ten-year yields rise and is that finally got some of the banks, which have been a little -- moving. dow component, $6 on gol

phil lebeau will bring us that interview. >>> and we have some philanthropists who will join us to talks they are trying to change the world first of all, holly branson will be joining us. she and some colleagues have written a book called "weak economy. trying to help you understand businesses and individuals, ways that you can map out what you best like to be doing to impact the world. and did you know today is world water day? >> i did not >> world water day today long-time viewers of squawk know that actor matt damon and gary white have joined us over the years to talk about the efforts they've been making to make sure that millions of people in the developing world get access to clean water. today they'll tell us what progress they've made. how big the world problem continues to be and they'll be joined by a couple of executives, bank of america vice chairman and anheuser-busch inbev's chief marketing officer to talk about how they're teaming up with water.org to make a difference. all of that coming up. >> that's a crucial issue facing the global economy >> that's a big partnershi

and phil lebeau is looking at the next shoe to drop.et's start with cayla who can help us get color on how that meeting went down yesterday. >> the list of critics has been long europe and canada strongly disagreeing and vowing to hit back business groups warning of undoing the benefits of tax reform then you have a host of republican lawmakers mincing no words to show their displeasure. in some cases calling this a leftist policy in response to the president's tweet that trade wars are okay and they're easy to win, senator ben sass of nebraska said trade wars are never won they are lost by both sides. protectionism will jack up prices on american families and will prompt retaliation. earlier this morning, steve stivers had this reaction. he said it's not all bad but it wouldn't have been his choice. >> i don't agree with the direction on this one. and the president was elected. he gets to make the call he made the call but, you know, we'll see where it goes as long as this is a stand alone issue, it might catc i don't think it's a good

phil lebeau there. here's a look at how we finished the day on wall street the dow went out with a small gain despite being up and down more than 100 points today small gain for the s&p as well the much bigger increase is seen in the nasdaq, which is up about 0.5% on the bell and the russell 2000, the small caps with less exexposure to international trade, up another 1% today. >>> it's time for a cnbc news update let's get over to sue herera. >> hello again here's what's happening at this hour israeli prime minister netanyahu meeting with house leaders at the u.s. capital it comes after he spoke at the annual pro-israel apec conference in which he claimed iran was responsible for the darkness descending on the mideast. >>> nato chief says russia's development of a news cruise missile violates an international anti-nuclear arms treaty the comments came in a news conference during his visit to jordan >> the united states has determined that russia is in violation of the imf treaty by developing and flight

and we're worried about what this impact would have on that >> so when phil lebeau comes on, he sayse have a tariff of more than 2% on foreign cars coming into the u.s but when u.s. cars go to europe, there is a 10% tariff. i mean on its face, you can understand why that would bother americans. right? why does that situation exist? >> there's a 2.5% car tariff and there's a 25% truck tariff on imported trucks that come into the u.s. which is why there are no imported pickup trucks. i think if there's an issue that president has with the eu and relates to tariffs, let's negotiate that out but again, i want to highlight the majority of the vehicles that we build -- we sell here are built in the u.s we're very proud of that fact. honda just had last week roll off the assembly line the 25th -- 25th million unit they sold in the u.s.en that needs to be celebrated. international automakers invested to date roughly $75 billion here in the u.s. we employ just over 600,000 americans. we're very proud of that fact. if they want to negotiate auto tariffs, let's negotiate auto tariffs on a globa

so to me i think a lot gets netted out the autos, gm down almost 5% lebeau had the executive from gmho sources the steel. we source 90% from america so why is the stock down 5%? so this could present near term opportunities for a stock like gm >> steel price, which we have and which we might get are going to hurt the auto companies these are price inputs >> why the stocks are down maybe to karen's point, maybe these are buying opportunities because maybe it isn't going to happen to the magnitude we think it will. a lot could happen between this week and next when the president said he's going make the announcement. >> this is something he talked about when he was campaigning for president. to walk away after the poor market reaction in my opinion would be bad form. >> more on what it means for the economy and possibly the fed let's bring in senior economics reporter steve leisman so you give the economy a case of red bull. do you need a mountain dew on top of that too? >> no. this is the opposite of red bull this is like. >> dead bull. >> how about -- >> it is like a laxative, if you

stocks were kind of rolling over before the facebook mess happened that's just a fact let's go to phil lebeau with break iing news we'll jump back to our conversation >> the shareholder meeting in california where tesla shareholders were officially voting on the compensation proposal, the package that was being offered to elon musk over the next several years has been approved we have received word from a source present at the meeting that the shareholders have approved the proposal by a large margin i'm not entirely surprised by this the teacher's retirement fund in california was a posed to musk getting the amount of money that he wuld get if the company hit certain benchmarks oaf tver thet several years. it's been approved by a wide margin for him to be reward ed with up to $55.8 billion in tesla stock and awards, this company would have to see its market cap rise to $650 billion. there's a number of steps along the way. if they get that point, then elon musk b k would get $55.8 billion just for some point of reference. right now, the market cap, around $52 billion it's been approved >> th

great that you are on if anyone wants to know of mexican car productions, no one knows more than phil lebeau. navarro is the most vocal, in terms of -- larry is free trade and we got to make it so where there is no barriers, is it possible that they both can be considered >> they're so different, right larry is critical of the president on tariffs as recently as yesterday does the president want to have another voice who disagrees with him on that. you heard the president said in the conference yesterday that he likes aids and he makes the decision on where to go or does he want somebody that back stabs his inclination. you may see gary cohn backing an internal candidate, somebody that's not as well known that's another possibility of course, there is always the possibility that they go to somebody from the outside. the question from the white house is people from the outside looking at the chaos and the drama that's been happening here at the white house would they want to join this team, can they get the a-list ere er of this point? >> that could happen, too. >> it is not "the apprentice."

phil lebeau with how it may impact the autostry.l. >> the president tweeted on saturday that perhaps he would move to raise the tariff on european made vehicles that are sold here in the united states if there is, in fact, an escalation of his trade war. it brings up the question, what are people buying in the u.s. in terms of vehicles? where are they made? the vast majority are made in the u.s. at u.s. plants, 56% if you look all the way to the right-hand side, you'll see 56% of the vehicles sold in the u.s. comes from europe. those not just from europe but germany in particular, 2.5% tariff is what those vehicles are hit with when they come in here it's 10% when built over here and sent to europe. angela merkel says a trade war is not wanted. some are saying if it's only 2.5% tariff for vehicles here, why is it so low >> we don't on trucks. it's a 25% tariff. that's been in effect since the early '60s it remains in effect that's why all the pickups you see in the u.s. are built in north america. there are also plants in mexico as

. >>> it's a big day in the auto business over to phil lebeau at the new york auto show today hey, phil let me bring in jim, the head of toyota north america the rav4 i know in the past people might say a rav4, it's a crossover it's your best selling vehicle last year. >> number one. >> it's hugely important it's the biggest segment in the industry, 20% of the market is small suvs we sold over 400,000 last year so we're really excited about what things will do in the market. >> you see no slow down in the demand for crossovers and suvs, do you >> i don't think it's going to ac be sell rate as quickly as it has in the past. at some point in time, a 70/30 mix is about where it's going to fall in line. >> about 30% of the vehicles being sedans in the united states. >> yes. >> let's talk about trade because it's so important, you and i have talked about this in the past as the nafta negotiations continue, there is discussion about whether or not they can reach an agreement in terms of the rules of origin for the content in the vehicles. do you think there's much wiggle room to change where

again, it is a question that phil lebeau will continue to ask. happens with the trade deals, particularly nafta. gm makes cars in canada as well as mexico. they are on all sides, tyler, of the nafta debate. >> thank you very much brian sullivan in houston. melissa? >> we have a news alert on snap. julia has the details. >> snap is ready to lay off about a hundred engineers, less than 10% of the engineering team this news reported first by cheddar. snap declined comment. for context snap has more than 3,000 employees. snap shares were up today. they have given up the gains now they are pretty much flat. back to you, tyler. >> julia, thank you very much. the dow still down triple digits back into negative territory for the year this is a day of consequence are the markets overreacting to the exit of gary cohn? that story and more when "power lunch" returns >>> following gary cohn's resignation today as president's top economic adviser we want more on the impact of the markets and bring in chief investment officer jack ablin and o'neal securities di

also, it is fill lebeau mentions that there is grounds that the president is focusing on and there isstion of how it is being done if it leads to broader retaliation. >> it makes it difficult to earn and then you have to falter what's less of a difficult tone. where are they going for raise rates and historically good for banks? why don't we just shift and own more finance and less tech the reason i said this because tech is 26% of the s&ps&p. i rather not be involved of the crowded trade or buy banks or intel. the one that everybody is looking at what do we do with micron? it is a company that's selling very inexpensively, that's kind of the situation where is it safe or momentum so we got momentum tech and low valuations tech and we have tech that's in the cross hairs. >> to what extent do you worry of the ones that's in the cross hairs that they are supported by a big flood of money into the tech and the u.s >> raising rates high valuation, classically what you should sell. i would push back and say that's today. two days from now if we don't have another story which talks about fa

the auto industry is weighing in phil lebeau is in chicago with more details there hi, phil >> we havesome reaction from some of the automakers as well as the international automobile dealers association for here in the united states. these are the dealers for international brands here inth united states. in that statement, the international auto dealers say the burden of these tariffs as always will be passed on to the american consumer. car shoppers looking for a deal will instead find that they are paying a new tax general motors has told us that the bottom line is we support trade policies that will enable u.s. manufacturers to win and grow jobs in the u.s. and at the same time succeed in global markets. and finally, toyota issues a statement saying the majority of our steel and aluminum purchases come from the united states. and in fact, general motors said 90% of its aluminum steel is domestically sourced as well having said that, guys, one reason why you're seeing the auto stocks move lower is because there's a concern within the industry that even if the aluminum and steel is s

we have that to hit with phil lebeau who has a roundup for us. >> the sales rate for the month of february coming in a little better than expected 17.08 million vehicles that's the pace of sales for the month of february. most were expecting to be around 16.8 so a little better than expected in terms of the individual automakers, this is a low volume month. take a look at the big three muss toyota. toyota being the only one who was positive fiat chrysler, gm and ford all negative for the month of february it's a low volume month, so don't get too excited about it the bottom line is this, we head into the spring sales season with the industry doing just a little better than some were expecting, but still we'll be down this year relative to last year back to you. >> before we get to the interview you have coming for us, a quick question in terms of we all take on these tariffs coming in. i presume while it can lead to inflation of auto prices, there will be quite a significant time delay when it comes to cars, given the sort of cycle -- the life cycle of a car. >> right also, they're locked

i don't know we'll talk to an expert about this >> lebeau knows a lot of people over there >> it's auppy. >> it's a 10-month-old >> whatever training they have for flight attendants, it makes no sense >> why not put it under the seat >> it was in the tsa approved travel carrier >> we take pongo, we have trooe d three dogs, our little dog comes with us all the time if they try to put pongo in an overhead bin, there will be blood. there's no way you put a dog in an overhead compartment. >> we have to hear more about it it happened yesterday. >> maybe they didn't think there would be an oxygen problem >> the flight attendant? >> i don't think it's even that. i think these attendants feel they have so much power. >> they do and they do. throw you off the plane. >> they abuse it and -- >> i will also say there's a lot of air rage. there are passengers who are unruly >> you have to empower them to control the situation. >> united has a problem where they have customers who are unhappy and employees who may be unhappy. >> people strip and start playing with themselves in the seat there was

airlines are apparently not struggling to gain altitude with consumers despite a few missteps phil lebeau question foryou at the end, phil, an important one, but tell us what -- so, actually, people -- people love to hate airlines so it's not as bad as what -- >> yeah. yeah it's like complaining about your taxes. people love to bitch about the airlines just because they can, and i do believe that because i hear that on a regular basis when i'm flying, when i'm walking around people know that i cover the airlines you know what i don't like, blah, blah, blah, blah, blah, blah, blah the points guy puts together on a regular basis a number of factors, ten different areas he says, look, if you look at the airlines objectively, they are doing better there are fewer lost bags, strong on time rates not the best ever, but very high there's also been a drop in customer complaints at really all airlines, including united which has been a punching bag. >> even united, their customer complaints dropped by 17% last year so when you look at it from a data perspective, airlines are actually performing be

phil lebeau rode along with a company that's taking control of self-driving cars when those vehicleswhat to do obviously very timely given the news that we just had yesterday. but phil is with us right now. phil, good morning >> reporter: hi, becky you know, one of the challenges for the development of truly autonomous drive vehicles, a vehicle that might start somewhere, pick you up at your home and then drop you off at a business is knowing what the vehicle should be doing at all times. what happens if it gets confused so we're here at phantom auto in mountain view, california, they believe they have the answer here coming up here is phantom auto test vehicle there is no driver in this vehicle. they're going to drive up, pick me up. let me give you a sense of what this is all about. inside we have a second shot of a remote operator. this is called telepresence. ben, you're our remote operator. he takes control and tells the vehicle what to do here's how it works. we're taking off now in a phantom auto test car. this car is being remote controlled which means there's nobody in the d

. >>> united airlines ceo oscar munoz tells phil lebeau that the company is reviewing options for petnsport. i wish i had talked to you, phil he joins us now from chicago maybe they could review options for golf club transport. i did finally get my clubs played 54 holes, that was it they finally arrived and four holes left the simplest thing, move them from newark to d.c take me, i'll pay you money. you take me and my clubs down to reagan airport no no your clubs are in -- no, they stayed in newark why? go ahead, phil i won't air my own personal grievances i won't even machine shun my miles are useless anymore. take it away >> we'll investigate that another time let's talk about what's going on with united airlines and its policy when it comes to transporting pets, specifically in the cargo of planes they have suspended taking new reservations and are considering future options yesterday oscar munoz talked about this for the first time since this crisis erupted over a week ago we talked to him about whether or not united might drop transporting pets altogether here's what he had to sa

lebeau is. >> yes >> you will talk to you, right, phil >> if i'm in one of those in the next two yearsll be stunned. >> but the self driving you might be >> oh, self driving vehicles, cars, yes, absolutely him not completely self driving. we're a long ways from that. >> i'm not ready to be more than like a foot off, i'm afraid in a truck that's up high with the shocks, that scares me i'm not going up to 30 feet. thank you. >> thank you coming up, when we return, earnings on deck, we can get results from retailers, best buy and kohl's, the numbers state ahead. nah. not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a d