but back to my example with delphi. if there were five times the number of bonds than there were -- paternal pardon me -- dederivatives rather than -- fay neighbor. >> if the house burns down we all get paid the value. but if aig is the insurer and they can't make good on the contract, then the government has, to quote, -- quote, has to -- bail them out and we have the mess we had. >> host: that what you should watch "the big short." we are for those who are either listening on the radio or watching on c-span, recognize we're less than 24 hours since the presidential election. so i'm going to ask you to put on your kind of prognosticator hat and give you the allowance that we -- none of us know what's going to happen. but if you were to take a look at wall street as it's configured now, including what is good about it and what is bad, what do you see the new administration coming in affecting the environment that you have been talking about? >> guest: well, fine. first i'm happy you asked me -- didn't ask me to predict

electronic supplier delphi has partnered with driver assistance and sensor outfit mobileye and createdous audi suvs which are driving around vegas during ces. there are 2a different sensors spread out across the body of this car which allow it to drive autonomously and what i am struck by is that you don't notice any of them. you can't really see any of those sensory devices. they're hidden. this car is an indicator, if you like, of how autonomous vehicles will look in the future, which is pretty much like any car does in showrooms today. those sensors include lidar, radar, and cameras all around the vehicle. here, we can see what the car sees through them. identifying other vehicles as well as pedestrians, and behaving accordingly, as it weaves its way through traffic. so, i'm a rear passenger in the back of this self—driving car. and so far zero dramas, apart from looking forward and noticing that the driver doesn't have his hands on the steering wheel. i could be forgiven for thinking that i am actually being driven around bya human being. the thing is, we've been driving around in

electronic supplier delphi has partnered with driver assistance and sensor outfit mobileye and createds audi suvs which are driving around vegas during ces. there are 2a different sensors spread out across the body of this car which allow it to drive autonomously and what i am struck by is that you don't notice any of them. you can't really see any of those sensory devices. they're hidden. this car is an indicator, if you like, of how autonomous vehicles will look in the future, which is pretty much like any car does in showrooms today. those sensors include lidar, radar, and cameras all around the vehicle. here, we can see what the car sees through them. identifying other vehicles as well as pedestrians, and behaving accordingly, as it weaves its way through traffic. so, i'm a rear passenger in the back of this self—driving car. and so far zero dramas, apart from looking forward and noticing that the driver doesn't have his hands on the steering wheel. i could be forgiven for thinking that i am actually being driven around bya human being. the thing is, we've been driving around in pr

intel does have agreements with bmw and mobile aye and delphi.mber mobile idealing with tesla, to develop driverless technology, but with google wais dominating space like qualcomm, they're making serious strides in the driverless space, intel might be stuck at stand still as it muscles its way and shoehorn its way into a crowded space. the stock is getting teeny little pop, up half a percent. that is good for the stock. over the past year the intel is up five years. the reason you want to watch fox business and not other business networks we give you context. it is competitor, nvidia, graphic chips superstar is up 220% over the just the past year. so if you're comparing, oh, what was nvidia doing that was way more exciting and juked the stock way more than what intel is trying to do and some analysts believe it's a little late for intel. >>> okay, we're 41 minutes before the closing bell rings. president-ect donald trump going after yet another major american company today. general motors this time, the target. if you look at gm's stock it is wa

i went on a six-mile drive with our delphi partner -- it's intel, delphi and mobile eye -- six milesad, including freeway, all hands-off. >> wow. >> did it yesterday morning. so, autonomous cars are coming. >> reporter: speaking of great content, thanks for joining us here on cnbc from inside the intel booth, intel's brian krzanich. >> thank you, jon. >> back to you in new york. >> thank you so much, jon fortt. a great conversation with intel. >>> as we head to break, tech stocks have been leading the market throughout the morning and leading the nasdaq composite to yet another record high, currently sitting at 5,510. >>> still to come, why james "mad dog" mattis is reportedly moving on from one of the most controversial boards in silicon valley. >>> later, a cnbc exclusive with chicago federal reserve president charles evans. he's sitting down with steve liesman at 3:10 p.m. on the east coast, right here on cnbc. ♪ >>> retired marine corps general and donald trump's pick to lead the department of defense james "mad dog" mattis is resigning from a corporate board according to the "wa

so for instance there was uh company called delphi. in had to billion dollars of bonds outstanding but it turned out there was $10 billion of derivatives so they can only sell 2 billion bulletin billion worth of trivets -- a derivative so they could increase the revenue even though we did not own those that all. but the movie the big george does a very good illustration of how the derivatives work. they start off with somebody playing roulette fazio actual investor. then somebody stands over his shoulder to say he plays roulette -- roulette that we make at that if he wins and the somebody watches us a bible with my bet if you. ahoy this is what is going on. >> with of possibility win or lose and as an example that you used in the book. >> if i ensure my house i can do one of two things. or insure against the fire but he cannot go out to buy the insurance policy he is just gambling my house will burn down. >> the incentive to burn your house down. [laughter] sodium example would be if you own general electric then i go out to get involv

nvidia, delphi, mobileye, they are all key suppliers making it possible for the automakers that are not as big as toyota or gm to stay in the game and stay within breathing distance as a second mover, taking technology off-the-shelf from the suppliers that have developed. caroline: that is what is fascinating, the joint ventures that seem to be going up. dimer has been investing. get was but by -- was bought by volkswagen. michael: there is a spin out from intel into nokia mapping technology. they just announced an amazing piece of news. caroline: they are now co-owned by the big german carmakers. where's the money going? when you're looking at cs as a venture capitalist, do you want to be buying shares in old companies, like the detroit giants? michael: in terms of startups, don't think that driverless cars are venture capital friendly. it is clean-tech for vc funds. venture is about getting a lot of leverage under capital for a small amount of money. there is exciting opportunities for investors in the private markets. i believe it is one of the most exciting areas in 2017. it is call

bosh, a company in germany, as well as delphi, based in the u.s., have been investing as well. we have investments, research and portfolios. and from technology from uber and so on so technology is progressing very rapidly. peter: is it competition? are they developing their own systems like you are here? raj: thanks to capitalistic forces, there is a lot of competition. this market senior self-driving vehicles is expected to be huge in 15, 20 years or so all these companies we just discussed or pushing to use pieces of the technology if not become leaders. that's what the competition is all about. it's not about sharing, it's about establishing leadership. peter: what about the city of pittsburgh? has it been supportive? raj: the city of pittsburgh has been a top-notch supporter of this technology. we've been driving a self-driving cadillac on the public roads of pittsburgh since 2007. the state of pennsylvania has been friendly to the technology as well. pennsylvania allows us to drive with this technology as long as there's a human licensed driver in the driver's seat and th

meanwhile, big automotive suppliers like bosh, a company in germany, as well as delphi, based in the u.s., have been investing bigtime as well. we have investments, research and portfolios. and from technology from google, uber, apple, lyft and so on so technology is progressing very rapidly. peter: you talk about it as action, but is it competition? are they developing their own systems like you are here? raj: thanks to capitalistic forces, there is a lot of competition. this market for self driving vehicles is expected to be huge in 15, 20 years or so, so all these companies we just discussed or pushing to own big pieces of the technology if not become leaders. that's what the competition is all about. it is about establishing leadership. peter: what about the city of pittsburgh? has it been supportive? raj: the city of pittsburgh has been a top-notch supporter of this technology. we've been driving our self-driving cadillac on the public roads of pittsburgh since 2011. the state of pennsylvania has been friendly to the technology as well. the laws of pennsylvania allows us to driv

delphi automotive shares up 3 1/2%.ou've to the westport fuel systems, box international, cooper standard. steon, american axle manufacturing. all of these auto parts-makers are gaining as a result of the better thaexpected december auto sales from ford and gm in particular. donald trump taking on what else. thank you to ford for scrapping a new plant in mexico, creating 700 new jobs in the u.s. this is just the beginning. much more to follow. gm also found itself in hot water for bringing chevy cruze hatchbacks to the u.s. from a mexican plant. how much cheaper is it to build cars south of the border? jeff flak has been crunching the numbers. hey, jeff. >> hey, lori. great to see you as always. you know what? it may be tough because it is cheaper to make cars south of the border. first of all, labor, which everybody would guess, what does the average mexican auto worker make? about 5.$64 an hour according to stud by i the folks at center of automotive research. that compares to $27 for the average u.s. automaker. that

liz: i was in the delphi autonomous vehicle.because while i loved it, i thought this is interesting, just don't know all of the outer lying aspects of driving. cars need to start to learn i suppose, so they're going to, you guys make some headlines on this. yet unfortunately many regards the focus is on the fact some people you were twitter shamed by president-elect donald trump into closing down the plans for the mexico plant. what do you say about that? what was it that really influenced that as it pertains to him? you said closing it down was actually a vote of confidence in his leadership. >> one of the factors we look at, more favorable business environment for manufacturers in the u.s. that is part of it. one is a vote of confidence we think the president can deliver. in terms of the cancellation of the plant in mexico, that was purely a business decision based on demand. we were going to put our next generation focus in there. we've seen demand for small cars in the u.s. drop dramatically. so we basically said we don't ne

electronic supplier delphi has partnered with driver assistance and sensor outfit mobileye and createdt i am struck by is that you don't notice any of them. you can't really see any of those sensory devices. they're hidden. this car is an indicator, if you like, of how autonomous vehicles will look in the future, which is pretty much like any car does in showrooms today. those sensors include lidar, radar, and cameras all around the vehicle. here, we can see what the car sees through them. identifying other vehicles as well as pedestrians, and behaving accordingly, as it weaves its way through traffic. so, i'm a rear passenger in the back of this self—driving car. and so far zero dramas, apart from looking forward and noticing that the driver doesn't have his hands on the steering wheel. i could be forgiven for thinking that i am actually being driven around bya human being. the thing is, we've been driving around in prototype self—driving cars for a couple of years now. how long is it going to be before cars like this are available to buy in showrooms? there is quite a wide consensus

the timing of his comments on torture have not helped her, as she crosses the atlantic to go to the delphi to the white house shortly after his inauguration —— to go to philadelphia. it will be an interesting meeting with big differences in 0pinion. and brownjoins me now. do you think that she should not have gone? because they have had disagreements could schumacher think it is —— because they have had disagreements? it's a trade or that he will not deliver, he has made it clear that it is america first and we seem to be thrashing around looking for something to hold onto, given that we are excluding ourselves from the biggest single market on our doorstep. downing street say that she can go there and be open with him and have a frank conversation and influence what he thinks? we will see how french is prepared to be in private and in public. will see how french is prepared to be in private and in publiclj will see how french is prepared to be in private and in public. i think angela merkel has struck the right tone, being polite about president trump but has made clear that germany and b

back in november bank of america, merrill lynch downgrading delphi automotive saying it starts to lose if nafta is dismantied. it also lowered other supplies like adient, american axle all of which do business in mexico. citigroup by far has the greatest exposure to mexico largely through its subsidiary. but a lot of these banks like citigroup have been slowly scaling back their exposure to mexico in recent years. other names of mexico exposure in the financial space include hsbc, american express, and santander. and speaking of spanish banks, b bdva makes a significant portion of its sales in mexico. cross-border trade with mexico. it has railroads deep into the country and has been negatively impacted by the peso. shares already down about 5% since the election in november. take a look at constellation brands. it has been under pressure on fears of a trade war brewing with mexico as it's a big importer of mexican beer which makes up aw significant amount of its total shares. down about 8% over the past three months. analysts say it's these names that are most vulnerable to volatility

delphi moved their jobs to mexico. stuart: that was president-elect trump during the campaign. to import to te u.s. trump said no way. build plant in u.s. or pay big tax. are you comfortable with him going after individual companies and telling them how to run their business. >> i'm not comfortable with government telling businesses how they can run. but if you look at the messaging coming from the other side. on obamacare, they are all out there saying the republican plan is going to make america sick again, and our second point is the republicans have no plan. so then when it comes to the wall, it's you can't possibly build a wall down there, and number two when you build the wall, we don't think you can get mexico to pay for it. i have been saying for months, yeah, you can build a wall on a lot of it and we should and he can probably get mexico to pay. stuart: i'm getting used to an unconventional presidency? >> initially i was bothered by his tweeting. some are saying it needs to stop. but then when you realize it allows him to have the last word over the "new york times,"

appropriate biggest trend right now when it comes to this autonomous vehicles first fox business delphiautomated drive demonstrated on fox business network i introduce you you to glenn our safety driver we are off no hands, tell us about this drive why the most complex? >> it is -- involves city streets tunnels highway driving, and all the unique things that las vegas can throw at you -- >> kicking in to autonomous vehicle status right now us there what is happening, and, by the way, i am nervous, i am being very serious. >> no need to be nervous car can control everything uses 25 you different sensors radars, cameras sea world around it plans the path feels natural zri. >> testing wind right now turning into a curve why is this complex? because we are going to enter a tunnel, it is not just what you see in the past where you see a highway, right? this is something different, there are other cars around, there er pedestrians what else can this do. >> sea world around basically. >> -- [no audio]. dagen: that is -- car works we lost signal i want to thank liz clayman for that going to hav

there is a saying in delphi metal space, national standards, neighborhood solutions. i think it's important for the epa administrator, those in washington to learn as indicated as a state eye opening statement to listen and learn from those, from you with respect to the needs of your community and your state and collaborate with you at a achieve good outcomes spirit i look forward to educating you on behalf of kansans. >> senator booker. >> good morning. i have a letter that i read that you sent to the committee last year and you said i am responsible for protecting the welfare of obama citizen. i assume that still correct and you believe that? >> yes, senator. >> entering the past six years in pursuit of that, if you look at the record of the lawsuit you filed against the epa, you joined or filed 14 lawsuits against the epa challenging clean air and clean water rules, yes? >> we've been involved in multiple pieces of litigation spirit i'm looking specific f-14 and i would like to put those 14 lawsuits into the record where you specifically challenge the epa on air qu