phil lebeau live in france for us. phil?f the more interesting stories -- yes, we'll talk about boeing and airbus in a bait. united technology. look at what shares of utx have done today after the company announced early this morning at the pair air show that it has made the decision that it is unloading either by selling or spinning off its sikorsky helicopter division. this happened during a very loud part of the air show early this morning. >> the board decided last week that we could proceed with either a spin or a sale and i think by the end of july the next 60 days we'll have a final determination which of those two options it is going to be. >> reporter: clearly investors are not real pleased about that. take a quick look at shares of boeing versus airbus. in terms of orders and commitments taking place here at the paris air show today. in years past you usually see 400, maybe 500 orders and commitments for each of these companies. instead, airbus at 146, boeing at 79. shares of boeing and airbus over the last year, n

i'm phil lebeau.pdate of what's going on out in mountain view, california where tesla's annual meeting is taking place. in fact, we have a picture of the webcast streaming of elon musk, the ceo of tesla. he's answering a question regarding autopilot, which the company expects to put at least beta versions out with test drivers within the next month, perhaps by the end of this month. and he's explaining that the first versions of the autopilot, by the way, you'll be expected to pay attention even though you're on autopilot. also we want to note that just a few minutes ago he announced the cfo of tesla who's been there since 2008, deepak ahuja, is going to be retiring and he'll stay on while they look for a success ovr, a new ceo. but again, deepak ahuja, the cfo, will be retiring. two bits of news coming out of the tesla annual meeting which is taking place out in mountain view, california. melissa? >> thank you, phil lebeau. we should note the tesla shares in the after-hours session holding pretty ste

phil lebeau spoke to united tech greg hays at a very busy paris air show. >> we would see a spin or aale. i think by the end of july the next 60 days we'll have a final determination which of the two options it will be. >> they make the blackhawk helicopters which are favored by the u.s. military. shares of the down component fell 2.a5%. >>> that wasn't the only news made at that paris air show. the two largest aircraft makers themselves kicked off the event with a number of big deals with the jet liners. phil lebeau back with >> reporter: a busy day here at the paris air show with boeing airbus focusing less on the number of planes ordered and focusing more on the types of planes and the airlines that are ordering those aircraft. airbus announced saudi arabia airlines is the launch customer for the new a-330300 regional plane which will be used on high volume routes in the middle east and in asia. meanwhile, airbus says the new plant in mobile alabama, is on track to open in september and deliver its first finished plane next year. the plane maker is prepared t as it expands producti

phil lebeau, c y it. definitely. i like those silver cars. >>> well that's "nightly busine i'm sharon epperson. >>> the following kqed production was produced in high definition. ♪ ♪ ♪ >>> every single bite needed to be -- >> twinkies are in there! >> wow! >> it's like a great big hug in the cold city. >> that food is about as spicy as i can handle and my parents put chili powder in my baby food. >> i have french fried bits all over the table. just a lot of

phil lebeau, c y it. definitely. i like those silver cars. >>> well that's "nightly busine i'm sharon epperson. >> if i had a secret as to how you could stop yourself from aging badly and actually turn the clock around and feel younger, wouldn't you like to know it? i'm miranda esmonde-white, and i'm going to share that secret with you today. >> miranda esmonde-white is host of the long-running public television fitness show "classical stretch" and author of the book "aging backwards." miranda has been training professional athletes since creating her own fitness technique 15 years ago. >> as i've aged, and i'm now 78 my body feels like i'm, i don't know, 60. >> people are always commenting on how fit i look, and i say

>> phil lebeau, thanks so much.il showed you, auto stocks have been pretty much stuck in neutral for the most part over the past two years. so could this signal trouble for the markets? carter worth is at the smart board with a look at the charts. hey, carter. >> it's a mess. as a value proposition there's nothing here. blue line, one-year chart. equities in general, s&p. you're up 28%. purple line -- orange line, excuse me, this is a global index of asian manufacturers like nissan and toyota, things like daimler, chrysler. up 18% and then the green line, of course, is u.s. there are only two, ford and general motors, and basically we're down 3%. no value, u.s. no value relative to the market global. and then there's this. this doesn't pass the laugh test. this is a five-year chart. this is ford and general motors. they've delivered you zero. here is the market up 75%, and presumptively at or near a peak in a cycle. auto sales at a record, quality of sales low. sell. sell them both. >> all right, that's pretty clear

lebeau nightly business report chicago. >>> health care is one of the best performing sectors so far this year. so when we come back we'll take a deep dive into whether that run can . >>> health care stocks have been leading the market leaving some to wonder if that trend can continue. morgan brennan checks up on the sector to see if the rally has . >> reporte hea care stocks are outperforming the broader market up 11% this year versus a 3% gain for the s&p 500. earn growth increased rnd producti a merges and strong demand for care are driving the heady returns and if history is an indicator that will continu thi summer. data shows over the past decade from june through august health care averaged a 3% increase far outpacing the quarter percent rise launched by the s&p. biotech has been a bright spot and despite of a talk of a bubble brewing, market analysts expect that to continue. >> w definitely see upside here. we have a very strong long-term trend in biotech and there's nothing in the technicals to suggest that that trend is exhauste any way, in fact it's accelerated as we move

phil lebeau has the details. >> reporter: gm ceo mary barra meeting with share holders in detroit saysgest automaker is on track to deliver better returns and better sales despite a turbulent year. much of that surrounds how gm handled the recall of defective ignition switches. there are reports the department of justice may ramp up its criminal investigation by the end of this summer. barra says gm is cooperating that investigation, but anything else in terms of timing or potential finds is all speculation. there's also no update or increase to charges related to the recall. barra says the focus right now is returning capital to investors. some of those investors are now being courted by fiat chrysler ceo sergio marsione. today he's reached out to hedge funds to place sta gm for fiat and gm chrysler. it's a move barra and the gm board have so far dismissed. >> we have scaled. we have leveraged the appropriate opportunities where we can benefit from co-development and it's someth doing for several years and so when i look at it the focus that i have is truly on the general motors share

b.com. .com. >>> welcome back i'm phil lebeau.a is the latest to report better than expected may auto sales here in the united states. toyota sales last month dipping 0.3%. that was better than the edmonds estimate of a decline 2.1%. you now have the four largest automakers in the u.s. all reporting better than expected sales last month. most of an incresse or doing better between 2% and 4% versus the estimate. back to you. >> thank you very much phil lebeau. look at utilities today. trading sharply lower as the broader indices trimmed their losses. dominic chou back at hq. >> rising interest rates may play part of that story. stocks lower led by a decline. the bigger laggards agl, edison edison, cms and xcel. ppl completed the spin-off of its energy generation business causing deutsche bank to cut its stock. interest rates playing a big part in the utilities story today. back to you. >> thank you, dom. it only makes sense to go to cme with rick santelli. yields making a nice move up here today. >> absolutely. yields hopping and t

also upgraded at goldman, our phil lebeau is live with more. >> this is the first major automaker toe can generate not only for our company, but through the finance wing through a car-sharing program. here's how the ford car-share program will work. it will be offered in six u.s. cities three in the bay area along with portland, chicago and washington, d.c. as well as in london. ford motor credit customers will be eligible for them. it will be operated by the start-up firm get-around, which will be running the app for people who want to make their ford vehicle available for others to rent by the hour or a couple of hours. and owners will be decided the rate they are going to be charging for those renting their car. you might be saying how many people are interested in car sharing these days? it is huge. and it's going to get even bigger. according to alex partners, 4.9 million people worldwide were members in car-sharing programs last year, that's expected to balloon to 26 million by 2020. ford's ceo says this is one more way to reach out to customers. >> it's all around how we're dr

let's go to phil lebeau with the numbers and a lot of people talking about the numbers. >> they willtalking this afternoon. we're waiting for the monthly sales rate to be reported by auto data. many are saying it's going to be north of $17.5 million for a sales pace for the month. here's the reason why. look at the top four automakers in the u.s. and they all reported better-than-expected sales for the month of may. you might say what, up only 4% or 3%? big deal. the important thing to note is that all percentages are between 2% and 4% better than what the street was expecting. what happened? may? why did we see stronger sales? continued strong demand for trucks and suvs, particularly pick-up trucks, strong commentary out from jp morgan about the demand for gm pick-up trucks as well as the new ford f series. higher transaction prices, transaction prices at general motors, averaging $34,000. and modest incentives, 0% financing, the fact of the matter is those are teaser rates and overall the amount of money given back to customers in terms of incentives is fairly modest relative to wh

phil lebeau joins us now on the "fast" line with more. phil was this a surprise?se because we've known for some time that dennis mullenberg would likely be replacing jim mcnerney as ceo. i think maybe the only surprise is a bit on the timing. we've known from talking with jim mcnerney, from talking with executives at the company that he was not in any hurry to step down. you know about a year ago they named dennis muilenburg the chief operating officer and while they didn't say it at the time it was pretty clear that eventually there would be a smooth transition from jim mcnerney to dennis muilenburg and that's been put into place right now. we know jim mcnerney was hoping to stay on at least to the 100th anniversary of the company in 2016. and he'll be doing that as the chairman. he simply will not be the chief executive officer. but this should be a smooth transition, guys. dennis muilenburg has been with boeing for 30 years. prior to being chief operating officer and coming up to work at the headquarters in chicago he was down in st. louis. he was running the d

phil lebeau has more. >>> when it comes to picking out a new car or truck, almost one in every three company is . all new vehicles financed in the first quarter were leases. with an average monthly payment of $405. slightly lower than a year ago. >> leasing allows you to get a little more vehicle than you would get than if you would traditionally finance. >> leasing has risen along with the cost of new vehicles. why? partially because automakers are offering to put more tech features in our dashboards if we pay for i and we are paying for it. the average auto loan has jumped more than $1,000 to an all time high of just under 29 grand. and the average monthly payment is a r of $488. spread out on average over 67 months. buyers are willing to take out longer loans if it means bigger monthly payments. >> i think you've seen people upgrade to larger vehicles. to get that they know they have to pay more a way to mitigate that payment is to sign up for longer loan terms. >> despite more people borrowing more money. the more loans going into default has dropped last year. the primary reason

. >> reporter: from his office at drexel university's lebeau college of business he has reached out to city council police and nbc 10. he says his plan to bring awareness is working. he wants the thieves caught. >> we are hoping the video in the neighborhood if anybody has one, would turn that into the police. >> reporter: now, montgomery says that he was inspired to go public with this to alert people after he spotted a woman crying on the sidewalk because her car had been broken into. she couldn't afford the cost for those repairs. if you have any information on this, you are asked to call philadelphia police. deanna durante, nbc 10 news. >>> former camden firefighters facing fraud charges tonight, accused of faking a disability while working as a martial arts instructor. today a grand jury indicted shane streeter. he is accused of stealing $82,000 by collecting a disability pension in 2010. investigators found out streeter was teaching martial arts several times a week. they also watched a youtube video of him participating in mixed martial arts while covering the pension. if convic

phil lebeau in chicago with some answers. hi phil. >> hi tyler.cause we have a more global industry. if you look at the latest study being done by cars.com what they do every year is they go out and they actually check the stickers on all the vehicles that are made and they said what percentage of these meet the threshold of not only being assembled in the u.s. but having 75% of the content coming from suppliers in the u.s. or canada. just seven models this year meet that requirement. global diversification among suppliers is the big reason why. finally, the question is whether or not consumers really care about this. is there much of a sales impact. even the folks at cars.com say, at the end of the day, people are more concerned about things like pricing, brand loyalty, reliability. those are the types of things that drive it more than whether or not a vehicle meets the standards. let me show you the toyota camry. it took the top spot on the list this year in terms of the most american made of the seven vehicles. it's biltuilt both in kentucky an

phil lebeau will be here with a special report. more "fast" right ahead. you prox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business. >>> the homes good retailer reported sales that missed analysts' expectations. retailers see second quarter same-store sales up by about a 2% or 3% area. earnings per share between $1.18 to $1.23. analysts were looking for about $1.23. sought mid-point of that rainlingage below some of those analysts' expectations. you can see the reaction there. it's gotten back a little bit of those losses in the after hours but still, mandy, down by about you can see 2%. back over to you. >> thank you

phil lebeau has more. >> reporter: thank you very much. talk about the merger prospects or nonprospects as it appears for general motors and fiat chrysler. want to give a quick update general motors might be close to a plea bargain with the department of justice to wrap up a criminal investigation into defective ignition switches. today, mary berra said they have no comment regarding whether or not this will be wrapped up by the end of the summer as many reports suggested. here is what she had to say regarding gm and the doj investigation. >> we have cooperated fully. we continue to do that. it is their timeline. we are going to continue to cooperate to the fullest extent we can. beyond that i think anything else is pure speculation. it does no one any good. >> let's talk about the other story getting a fair amount of attention when it comes to general motors. it involves this man here. the ceo of fiat chrysler. he was been courting gm shareholders, talking about hedge funds that have a stake in gm potentially activist hedge funds about th

. >> phil lebeau, thank you. >>> we got a rally on the street here. the s&p 500 sitting two points below its session highs. its best gains since may 8th. all ten s&p sectors are higher. tech financials energy leading the stay. stay tuned for our exclusive interview with alibaba's jack ma. >>> plus -- >> up next -- a power pitch erer amping up your smartphone. >> will this start-up get the panel charged up? >> is it possible for human motion to jen wratgenerate enough power to be useful for the kind of smartphones we carry today? >> or will it short-circuit. stay tuned to find out. ...served my country... ...carried the weight of a family... ...and walked a daughter down the aisle. but i couldn't bear my diabetic nerve pain any longer. so i talked to my doctor and he prescribed lyrica. nerve damage from diabetes causes diabetic nerve pain. lyrica is fda-approved to treat this pain. lyrica may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new, or worsening depression or unusual changes i

thank you, phil lebeau.update with sue herera. >> the obama administration responding to ben bernanke's call to keep alexander hamilton on the $10 billion. it is under review for a redesign for security purposes and appropriate time to consider a change such as this one. >> white house saga judgments may be needed to agree on a framework for a nuclear deal with iran. the deadline to agree on a pact is set for next tuesday. there is a possibility that deadline my need to be pushed back. >> niagara bottling is recalling its products after finding out one of its spring sources was contaminated with e. coli. the water was sold under various brand names in the northeast. several supermarkets sent out press releases addressing that recall. no word if anyone has become sick. >> scuba divers discovering an ancient roman ship off the waters of sardinia. the finding is significant because that load did not appear to be disturbed. the ship was carrying construction materials for the roman empire. >> that it's cnbc news

phil lebeau.com everybody's got to read about the neighborhood effects of these driverless cars. is california doing the right thing? in some ways it seems overdue. more transparency is needed? >> i think they are doing the right thing. i don't think it will slow down the development of autonomous drive vehicles. i've talked to the people at google doing research. they are not opposed to the information being released. first people said you don't want the information to be out there. in reality, they were simply taking advantage of the system that said we are not going to release these reports. once they said there were 12 accidents, they were forward about giving that information out, and now you've got the state of california saying let's release all accident reports, not only for those involving google vehicles but delphi has vehicles involved, et cetera. >> what you are saying makes sense. especially if you are involved with this experimental technology that one might worry would be more vulne

last month our phil lebeau told us auto sales would be huge. he was right. it was a record.again when we get the latest numbers tomorrow? phil is live in chicago with a preview. your credibility is on line as well then phil. will you be right? >> mandy, i would expect that july we will see very strong sales, not record sales for the month of july but very strong sales. over 17 million is the expectation, and it basically what we're seeing is an extension of what we saw in may and in june where people are continuing to come into the showroom. most of the estimates that are out there from wall street as well as analysts in the auto industry calling for sales -- a sales pace of between 17.2 and 17.4 million and we've talked about this for months now. the strong economy, low employment and low interest rates when it comes to financing a new purchase. all of those are driving demand right now. take a look at the auto sales on an annual rate going back to 2010 and you can see how much they have improved. that 16.5 we have blown well past that for 2015. the expectation is the euro

jewel and that's what he has as average in order to entice other automakers to make a deal. >> phil lebeauuch. now to eamon javers in washington, d.c. he's got a news alert what. are you looking at bud? >> looking at the white house press briefing room where minutes ago white house press secretary josh earnest interrupted the briefing in progress and told reporters that the secret service was asking them to evacuate the briefing room and now that briefing room has been evacuated. the secret service uniform division officers are moving about the briefing room now. we can see the live feed of what's going on in that room. no indication exactly just yet as to why this briefing room has been evacuated. as of now, very unusual to evacuate during the middle of a briefing depending on what kind of situation is going on though. that could be a necessary precaution. this comes just about an hour or so after we saw a similar evacuation up on capitol hill as there was a bomb threat called into the senate dirkson office building, that building partially evacuated and saw a bomb squad moving true some

let's go to phil lebeau

phil lebeau is live from the air show. and the stocks that could fly high or get grounded.ce means stocks are selling off to stop the trading week off the lows of the morning. as you might imagine, the

phil lebeau is all over this, in chicago with details.>> in the month of april, more than 81% of the flights in the united states were arriving on time. which airlines did the best job? according to the d.o.t. in april, it was hawaiian, more than 92% of its flights on time. followed by alaska, and delta, which airline struggled? in the month of april, frontier was the worst. just 72% of flights on time. spirit a little better and envoy, third at 77%. mishandled bags, 2.93 bags per 1,000 passengers and finally, one flight with a tarmac delay of greater than three hours. the latest statistics for the month of april. which overall, carl, when you listen to the numbers, not a a bad month if you were flying around in terms of getting to where you needed to be on time. back to you. >> and phil, perhaps not coincidentally, i hadhawaiian holdings up about 2%. let's check in on the overall markets, which are still in positive territory. the dow and the s&p are on track for their best two-day gains. since about a month ago. if the dow gains more th

phil lebeau has a special guest with boeing's ceo.way phil. >> thank you very much and drew. i'm joins by jim mcnerney the ceo and chairman of boeing. you've got orders from indonesia for maxes and a new order from qatar, tell me about that. >> i think it's a big statement about wide bodies 777, 7-9s. you can anticipate that. >> that's the question a lot of people have had here. we've had so many orders at this show over the last years and at farm borough. is what we have here or is it a bit of moderation here? >> it's hard to predict. i'm guessing there might be somewhat fewer by the end of the year. but it will still be a one-to-one, book-to-bill kind of number i think. we do have a big backlog. a very impressive backlog that we've got to work off now. >> let's talk about that backlog. because the certain for investors is as you try to work through that and i know you'll have record deliveries this year, that you won't be able to maintain the level of profit margins that you've been able to address over the last several years. how d

phil lebeau will tell us what is fueling the buying frenzy.box" starts right now. >> live from the beating heart of business new york city. this is "squawk box." >> welcome back here to "squawk box." along with becky quick and brian sullivan, joe has well deserved vacation. he will be talking about it for montht montht. we have assembled a special energy at this hour. senator heidi heitkamf is joining us. we will kick off that discussion in just a few moments. first, brine has more on this global rally. >> thank you very much. good morning everybody, your top story china is closed today for a holiday. the prospects are sending every major market higher. they are offer u offering a proposal. to head to the commission the ecp and imf today. michelle cabrera is on the ground in athens coming up in a minute. let us check out the rally and see the numbers we are seeing in europe. we got germany and france. the greek composite. the athens index, there is your big gainer up 6.3%. this is trickling over to our markets. futures up more than 100 point r

cnbc's phil lebeau, he's had a busy morning.e excited because this means you can now rent out your fiesta on an hourly basis. this is the program ford is unveiling and it will go active in six cities in the united states. three in the bay area as well as portland, chicago, washington, d.c. they'll also team up with a company in london. people will be able to rent out their vehicles on an hourly basis. you have to be a ford motor credit customer, the actual renting of the vehicle car sharing will be done by a san francisco start-up called get around. it will run the mobile app. and the owners they will decide the rate that they're going to charge for letting somebody drive their vehicle for an hour two hours, however long it might be. ford ceo mark fields said there was no hesitancy deciding to get into the car share business. >> there was no drama with this whatsoever. it's about listening to the customers. and customers particularly in urban areas want access versus ownership. >> now, for ford this is just one of several initia

phil lebeau joins us now. he's in o'hare airport. new company called silver car. phil? >> andrew we're always talking about start-ups that are disrupting traditional business models. and that's why we are here. just a couple of miles away from o'hare airport. this is the latest location for silver car. you might be saying what's silver car? look at everything behind me. these are silver audi a-4s. that's all they rent. is started out of austin texas, three years ago and now have ten locations around the country. the business plan is straightforward. they believe less hassle when it comes to renting a car in know whag you're going to get. you do it through a mobile app. either a concierge service will pick you up at the curb at certain airports or you have to go off location. the cost between $59 and $89 a day. but the founder says the key here making it a hassle-free experience for those who are renting. >> it's a customer experience designed that has the customer really focusing on getting to their car accessing their car and gettin

joining us right now to take us inside the numbers is our own phil lebeau.ord numbers reported by expeerian for the first quarter of this year. we'll run down the record numbers and keep in mind a lot of this because the price of vehicles continues to move higher and therefore the loans being taken out in order to finance that purchase they're higher. the average loan now up more than $1,000 compared to the first quarter of last year. almost a third of all new vehicles financed were leased in the first quarter. that's a record. and the average length for a loan now stretches out to five years and seven months. and when you take a look at the loans and how they're stretched out. look at the popularity of loans for that six to seven-year period. new car loans are at least 73 months long and that's why we're seeing people move towards that or one reason we're seeing people move towards that they want to keep their monthly payment as low as possible. still, the average monthly payment for a new car loan is up to a record of $488 a month. why is leasing growing i

phil lebeau is with a look at what's behind this trend.it's all about getting more vehicle for your sglar, and a lower monthly payment leasing has become incredibly popular. in fact almost a third of all vehicles financed a record high, are done so through a lease. the average monthly payment has dropped down to $405 a month, and the top states for leasing, more than half financed are done so through leases. for people still buying is the amount to finance continues to go higher, the average payment now close to $500 $488 a month and the lengths now up to five years and 7 months. don't forget we gill may auto sales tomorrow. expect the rate to be close to 17.3 or 17.4 million units. carl, back to you >>> phil thanks a lot. when we come back ism and the head of bristol-myers. don't go away. ♪ ♪ ♪ it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app. technology designed for you. so you can easily master the way you bank. in the us, three in ten college students drop out. but how ca

phil lebeau has those head lines.y year before the paris air show boeing gives its outlook over the next 20 years. this is not just for boeing but for all aircraft makers. here's the projects for boeing. it's an increase of 3.5%. by 2035 with the biggest demand in single-aisle plane. boeing says the global airplane fleet will double in size between 2014 and 2034 going automatic way up to 43 those. the biggest growth for airlines broadband in asia. as you look at shares of boeing remember, we will be there, talking with jim mcnorthwesternie. >>> thank you so much. when we come back a shareholders meeting where some frustrated investors are pushing for a one share/one vote policy. big day for facebook what you might be doing with that stock with the dow up 98 points. don't go away. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research

let's bring in phil lebeau. got any answers for us phil? >> mandy, a number of things.ng has helped. low interest rates across the board and you've got a wider selection of vehicles for people who have pent-up demand over older vehicles. but the one question i get repeatedly from people is is there a bubble in subprime auto loans. so we asked folk at ecquifax and run the data. see if what you see from first quarter subprime loans as a percentage of all loans. go back to 2007 when the last bubble took place. we're almost up to 30% of the loans being subprimed. it bottomed out in 2009 and has move higher but now as of the first quarter, if you go into 2015, the total comes in at 23.9%. it was 23.6% in 2013. 23.9% in the first quarter of this year. that's when 1.59 million new loans for subprime borrowers were written. that's about 34% of the new financing for vehicles with the average new vehicle for a subprime borrower coming in at 27.309. the dlinelinquency rated at 3.9%. auto sales continue to march to a record high level. go back to 2009 when it was at 10.4 million ve

phil lebeau was at o'hare airport in chicago. phil, how did the airlines do? >> reporter: they did pretty good in april, mandy. this is the latest data from the department of transportation. overall improving numbers across the board. 81.6 of% of flights were on time in april. 0.9% of them had cancellations. there were fewer mishandled bags. which airlines were most on time? hawaiian leading the way at more than 92% of its flights. followed by alaska and delta. at the bottom of the pack frontier, spirit and envoy. but really what people should focus on when they talk about the airlines is this chart right here. this is the airline index and it is under pressure because of two things tyler. rising jet fuel prices and capacity increasing over the next year for the airlines. that's what's spooking investors when it comes to the airlines right now. >> phil, we're going to get further thoughts on that from our next guest. the stocks taking a beating over the past month. passengers seem concerned. investors, too, about overcapacity, as phil just points out, whether

phil lebeau is live in detroit. >> reporter: hi, brian. getting into the car sharing business. not with a big splash. at least kind of just sticking their toe into it. but it is a pilot program that if successful we could see pushed around the country and around the world. let's explain the car share program. it will be in six u.s. cities. three in the bay area as welling a portland chicago, and d.c. then it is also one in the uk. ford motor credit customers, those who have bought their vehicle through ford financed it through ford, they will be able to participate in this. they'll use the get-around app. get yarnd being a start-up company out of san francisco which will run the app for those who want to do the car share program and the owners will decide the rate that will be charged. why is ford doing this? take a look at the growth in popularity for car share programs. zipcar being a perfect example. 4.9 million car share members worldwide. not zipcar alone, other programs around the world. 26 million car share members by 2020. the ceo

phil lebeau has a lot to show us on the ground. >> reporter: brian, we expected this to be a little bit of quarters being placed. and it was. only 225 orders between woeg andboeing and airbus announced on this first day. it might sound like a down year but the ceo gave his perspective on the situation. >> you would not expect that this is another record breaking air show here but we still think it's going to be a good one. by the way, we sold 146 commercial aircraft during the morning. >> not a bad morning. >> not a bad morning. don't expect us to do that with the same rhythm but you know we will end up with a good tally here. >> reporter: they may not be racking up big orders this year but the backlog is extensive. going out at least six or seven years depending on the aircraft. look at the deliveries between boeing and airbus. they are increasing. this year boeing expects to set a record of delivering at least 715 airplanes. and the other plane that's making news here do not from boeing or airbus but from bombardier. it is the c series. it took flight here at the paris air show. this

cnbc's phil lebeau is in los angeles. give us the story here. >> reporter: this is the kind of lawsuit that could potentially impact thousands of boeing airplanes being flown around the world. we should point out this is simply allegations at this point. a lawsuit was filed yesterday here in illinois against boeing by four flight attendants. let's set the story up for you involving these flight attendants. they were on a 2013 alaska air flight. four of the flight attendants got sick. three of them passed out. they allege that toxic fumes were fed into the cabin through the air ventilation system. they are blaming the bleed air system which basically brings outside air through the engines, filters it and it's supposed to make it suitable for air to be breathed in the cabin by passengers. the flight attendants say that didn't happen. >> the next thing i knew i was on the gallie floor and the other friendant was on the p.a. system mumbling incoherently trying to get somebody to help. >> absolutely not. i was on flight i was

phil lebeau has details on that. phil? i've had a number of people say to me why would ford do this? why would they launch a car sharing program? keep in mind you've seen automakers try pilot programs. and he believes solving the problem of congestion and urban mobility has to be one of the mantras of the future for ford. so they're launching this car-sharing program, six cities in the u.s. three in the bay area, along with portland chicago, washington, d.c. also doing similar program in london. basically, if you're a ford motor credit customer. if you bought your car through ford and it's financed through ford motor credit you determine how much you're going to charge to rent out your vehicle by the hour, several hours, whatever it might be. here's the reason why ford is doing this. look at this chart. it says it all about worldwide demand for car sharing, 4.9 million people are a member of car-sharing clubs right now worldwide. by 2020 guys that's expected to jump to 26 million. we'll see if this works for ford. certainl

. >> thank you, phil lebeau with the latest on the luxury cars and what they're offering. >>> meantimewhat's going on? >> s&p has lowered their credit rating on greece from triple c plus. to now ccc. they're saying it appears to be prioritizing their other spending over debt servicing. and that without deep public sector reform greece's debt is unsustainable. deeper into junk for greece. back to you. >> thank you very much. there are more practical applications than necessarily moving into it. >> correct. >> could harm them we're looking at interest rates, the ten-year at 11.5%. >> meaning they're not going to the market to borrow anyway. so the junk to further junk thing doesn't make sense, but piles on pressure. anyone who -- rating agencies. >> does it really pile on any pressure? i mean we all know the situation that they're in. we all know that the situation that the euro zone is in. and -- >> i'm not sure what to do with the rating situation. >> i can't think that any investor is going to go oh my goodness -- i don't think it changes anything. vis a vis their negotiations at all.

phil lebeau joins us with more on this story. >> this is going to be an interesting suit.'s the story and why they are suing boeing. four of them were on a flight in 2013. three of them passed out. they are alleging there were toxic fumes that were fed into the cabin of their plane. the lawsuit claims the bleed air system which ventilates the air system, they claimed a seal inside the engine can leak burning oil and mixes with the cabin air. here's one of the flight attendants talking about what she experienced in 2013. >> the next thing i knew i was on the galley floor and the other flight attendant was on the pa system just mumbling incoherently. >> we know boeing has known this problem exists since the early 1950s. they've known there's a problem. they know there's fume events. they know there's contaminants that come in from the bleed air. >> as you look at shares of boeing over the past five years, we should comment they are not commenting on this. in the past boeing has been asked about the safety of the cabin air inside of its airplanes. they said cabin air is safe

phil lebeau spoke to musk and he has the report. >> after the report in the morning of "l.a.imes" laying out $4.9 billion in government incentives subsidies, tax abatements that have been given to three of the elon musk companies. tesla, as well as space-x and according to "l.a. times" you add up all the incentives and it comes out to $4.9 billion. when we reached out to tesla yesterday for a comment we talked with elon musk live on the air and he's not too happy about the portrayal of his company simply being built on incentive incentives. >> by adding up everything that has ever happened and including things that will take the next 20 years to happen and then summing that into a single number and playing it today. it makes it sound as though my company is getting some huge check, which is fundamentally false. >> now, we should point out that we reached out to "l.a. times" and business editor came on later in the day and look what we're doing is adding up all the incentives that are out there. you draw your own conclusions out there whether there that tesla has received. if

phil lebeau has the details.platinum portfolio will come east to give us a reality is check. then later ted's coming back to the silver screen. the man behind this bear here to talk movies and more. get the popcorn. "squawk box" returns in a moment. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. ♪ ♪ ♪ (charge music) you wouldn't hire an organist without hearing them first. charge! so why would you invest without checking brokercheck? check your broker with brokercheck. >>> welcome back to "squawk box." we have a little bit of breaking news right now. sources telling us that the board of iac, barry diller's iac, planning to ipo spin off part of the match.com business. a little less than 20% of that business, the board approving that plan. and we believe th