phil lebeau joining us now. phil, hey, another feather in tesla's cap. it's great.

phil lebeau is live once again for news chicago. phil?en we come back we'll be talking about what's ahead for the airline industry as well as the auto industry. there's a grounded merger. airline report card and also maybe the auto suppliers are the best place to park your money. we'll talk about that whether "power lunch" returns. i hav e low testosterone. there, i said it. see, i knew testosterone could affect sex drive, but not energy or even my mood. that's when i talked with my doctor. he gave me some blood tests... showed it was low t. that's it. it was a number. [ male announcer ] today, men with low t have androgel 1.62% testosterone gel. the #1 prescribed topical testosterone replacement therapy increases testosterone when used daily. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or signs in a woman, which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. men with br

phil lebeau with the story. >> gm is hoping there will be plenty of buyers for the new corvette stingray when it rolls on sale, goes on sale, rolls into show room later this year, see it the next couple of months, start under $52,000. keep in mind, corvette sales are down 62% in the last seven years. in fact, when you look at sports car sales this year, luxury sports car sales this year, take a look at the core investigator the sixth generation, versus the porsche 911. you can see the porsche 911 almost selling as many as chevy has sold of the corvette with sales up 20% for porsche. for corvette, once it came out with the new stingray and unveiled at the detroit auto show, immediately, people said huge improvement with the interiors. that is what gm is expecting will bring more people in the showrooms. always one of those cars that gives you great bang for the buck, now saying it has the styling and performance to match what the german automakers put out. quickly take a look at general motors the last couple of

phil lebeau this morning. absolutely. >>> we want to got more on electric vehicles and clean energy. former epa administrator, clean energy administration. governor, welcome. >> good to be here. >> we talked about musk. you haven't met him. >> i haven't met him. >> how do you view him and the move to get this all to some sort of critical mass. >> it's exciting. it's going to take somebody like this who is willing to make the investment to get it to that critical mass. what has to happen is you have to have the infrastructure, too. it's fine to produce the car but if people don't have the confidence to drive across the country and have a place to plug in. the other side of it, while i welcome it, it will have a good impact on clean air, which i care about deeply, it's only going to be as clean as the emergency used to produce the power to charge it. that's where you get back to the energy that you need for trying to ensure that gryou have a mixf all of the above. >> if you had to pick either electric vehicles b

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phil lebeau, thank you very much. >>> we have cyd ger sr-- jason .is going to bring in those buyers on boeing? >> the thesis on boeing generally speaking is past generation, risk of retirement and shareholder returns. we have ramping 787 production and ramping generation of commercial aircrafts that are generating a lot of cash. on the commercial side, the 787 program is being de-risked as we speak. that should be good for the stock. and then last the, shareholder returns. all that cash they're going to generate, it's going to come back to shareholders in dividends and repurchases, and investors appreciate that at this point in the cycle. >> so what is going to be the one thing, or maybe two, that would not get boeing to your target price? >> well, clearly, misexecution on the 787. we still have another rate break in front of us this year, seven aircraft a month now. they need to get to 10. and they need to get the cash flow break on that program at some point in 2015. the 787 is the key factor here for boeing at this point. >> jason, thank you very

phil lebeau joining us now. phil, hey, another feather in tesla's cap. it's great.s it going to matter? >> it will matter long term in terms of the reputation they're trying to establish for being an established, reliable, safe vehicle. here's what nhtsa said during the crash tests. that did give tesla the model-s a five-star rating. tesla points out when you look at sub categories involved in the crash tests it's the best score ever given by nhtsa. 5.4 is what tesla comes up with. tesla says the test results show a low likelihood of injuries. keep in mind, there's no large block engine in the front of the model-s. that means a longer crumple zone and means there's more time to slow down those occupants in the front seat at a lower g-force. ultimately those all factored into the good test scores. what does this mean for tesla in the showroom? ultimately it helps people in terms of having a sense that this is a reliable and safe vehicle. now, that's not going to move sales immediately, but if you have this kind of a reputation, look at vol vorks over the heres. that'

cnbc's phil lebeau is behind the wheel with that in chicago. phil? >> simon, we have crunched the numbers. more than 13,000 model s vehicles have been sold in the past months. who is buying? the answer might surprise you when "power lunch" returns. jackie: there are plenty of things i prefer to do on my own. but when it comes to investing, i just think it's better to work with someone. someone you feel you can really partner with. unfortunately, i've found that some brokerage firms don't always encourage that kind of relationship. that's why i stopped working at the old brokerage, and started working for charles schwab. avo: what kind of financial consultant are you looking for? talk to us today. >>> some ipo news to report. real estate company remax has filed with regulators to raise up to $100 million through its own ipo. this as it takes advantage of a rebounding housing market. it lists under the new york stock exchange or would list on the new york stock exchange under the symbol rmx. meanwhile, alibaba is in talks with the hong kong stock excha

that's despite, phil lebeau, one of the most bullish reports we've heard in a while.hat's going on? >> mandy, this report comes from the global auto rally where they've talked with automakers and parts suppliers. you're looking at a surge in the auto industry. when you take a look at what's going on around the world, europe sales are now expected to be higher in 2014. that's the call from jp morgan. the world's top three regions, europe, the u.s. and china, are all rising, and the suppliers are in the sweet spot. that's why when you take a look at the parts and equipment, some of the groups are up greater than that. european auto sales are expected to increase next year. not a huge amount, but that is going to be welcome considering the fact that auto sales have been at a 17-year low. the u.k. and russia, those are the two markets within europe that are leading the sales rebound. and this is particularly good news for general motors. this stock is up 70% in the last year. gm has lost money in europe for the last 13 years. so mandy, they're not saying they're going to

phil lebeau spoke to tesla founder elon musk. he joins us now. orter: good morning, andrew. we are here on the model s plant in fremont, california. they are making 500 per week. eventually they will get up to 770 per woke when they ultimately have this line going at full capacity over the next year-and-a-half. take a look at shares of tesla. they are rating tesla on a hold saying tesla may have a 12-to-18 month start on its competitors when it comes to tds. this stock is up 4% in the last year. tesla is saying it is accepting orders for the model s in china. that's important, because china is the number one market in the world not only for autos. will be in the next couple of years for luxury autos. here's what elon musk had to tell us when it comes to the increase in sales here in north america. >> we are doing actually pretty good sales in north america. we just started deliberating in europe. we will start delivering in asia in the ferc. yes, sales have been good. right now, wooer actually not sales constraint. so we're production constraint.

let's bring in phil lebeau.n we say downgrade, not really a downgrade, an ev evaluation as as opposed to a fundamental problem. >> and when you look at the note, and i've had a chance to read through this a couple of times they are saying basically, look, if you look at valuation of tesla right now, all of these things have to go right over the next few years in order to justify this multiple relative to other auto manufacturers, and this ultimately comes back to a question herb and i have talked about in the past. do you value tesla as an auto manufactur manufacturer, or do you value tesla as a tech company, and clearly there are a number of xhust mers out there who value tesla more as a tech company than an auto manufacturer and at some point in the next couple of years this will be hand out by investors but that's essentially what they are saying here when you look at this note. >> and i would go so far as to say not an auto company or a tech company but as an elon musk company because that's the real premium

let's get the latest on this from cnbc's phil lebeau. >> hey, let's get to the drawing that elan muskhour ago. this is his vision of the future of the type of capsule people would be sitting in if the hyper loop is ever built. again, this is a theory. i should point out on the conference call maybe he is opened to the possibility of building a prototype of this. the hyper loop, that's the capsule there. it's not the most high-tech drawing. he admits that. he says it's ideal for cities between 900 miles, l.a. to san francisco is a pretty good example of that. the tube would be almost a double barrelled tube that would run along highway, 'em for long, straight stretches, highway 5 is a perfect example of that t. capsules would carry up to twieg people. elan musk says the system can travel between los angeles and san francisco, total trip time maybe a half hour with speeds reaching up to 800 miles per hour. the generation of power would come from electric conduction motors. turns the air speed into an electromagnetic course where the capsule is chasing the pulse within the tube and as el

phil lebeau talking to the company's president about the expansion plans. >> simon, pay attention to this report because they're flying into the new york city area. going east and profits going higher. we'll tell you all about it when "power lunch" returns. >>> it's the best performing airline stock that you probably never heard of. allegiant up 36% in the past year alone. and more than doubling over the last two years. right now, you can see it trades at $95.10. another slight gain on the day. the day that it unveils new expansion plans. cnbc's phil lebeau has been speaking with the ceo objeaboutt they're up to. >> this expansion is targeting the eastern, northeastern part of the united states. fresh territory for allegiant. here's what the company announced today. adding. 18 new destinations including in those new destinations will be flights into the new york city metro area for the first time. we're talking about flying in to long island as well as stuart international in the southern hudson valley. two airports that the president of allegiant says should attract customers from t

let's go to phil lebeau in chicago with the very latest. >> scott, i'm going to turn down the phone because we're on the conference call with the department of justice where they're outlining this complaint where they are essentially saying, listen, this merger should not go through and the headline that comes out of this conference call is essentially u.s. air and maamerican can go the doj with potential concessions. in other words, we'll give up slots, give up routes, let's let this merger go through but it's clear from listening to the doj they do not believe that carve-outs would be enough to make this merger happen. they believe the only solution here is a complete block of the merger between us airways and american. now, we've not heard back from u.s. air and american. i would expect that they're obviously going to have a vigorous fight in court over this. one question that did come up on this conference call was whether or not there have been discussions about, hey, listen, can we give up slots out of d.c. reagan where they would control 63% of the nonstop flights? is there some kind

let's get straight to cnbc's phil lebeau. you're covering the story since it broke, phil. how unexpected was this. >>? >> very unexpected, mandy, and now we can look forward to perhaps a protracted legal fight in court. just heard back from u.s. air and amr within the last hour, both of them saying, hey, we're going to fight this doj suit to block us. they are issuing a statement saying we'll mount a vigorous defense and pursue all options in order to achieve this merger to give a better american to our customers and our communities as soon as possible. in the last hour, in a letter to employees at u.s. airways ceo doug parker says the companies will not merge in the third quarter. that's going to be pushed out for a while. he says the doj is wrong in its assessment. he goes on to say we will fight them. well, the doj has a different opinion. it says that this is an uncompetitive move for the airline industry. the doj saying we determined that the merger would substantially lessen competition for commercial air travel throughout the united states. importantly neither airli

and phil lebeau is covering the story. he joins us with more. that's the kind of thing i would like to ride on. >> that's an interesting proposal, suzie. it's a 57 page proposal. there aren't a lot of details in terms of what the system would look like, enough that we could get a sense of what elan is proposing. this is an idea he's advanced out there, particularly relevant given the high speed railway discussions going on in california. here's a vision that he has of the future, that's capsules would contain up to 28 seats, theoretically possibly be big enough for people to drive a car on to. how would the hyperloop work? it would be ideal for cities within 900 miles. he used san francisco to l.a. as an example. it would be a double barrel tube built along highways. highway five would be an example for this. the capsules again would carry up to 28 people. the total cost here, if you were to build the hyperloop between l.a. and san francisco, about $6 billion. a.m. other ties that over 20 years. it would equally pay for its own. if everyone woul

. >> phil lebeau with a terrific story this morning with alan mulally. saying that car sales are fabulous. truck sales are fabulous. richard smith was on. 26% of all transactions are done by a real estate broker from realogy. business still growing. 17% to 19%. no slowdown on existing homes. did point out new homes because of the way the rates went. lock in problem there. not as strong. you've got existing home sales. we had a number yesterday and said don't worry about that, real estate guys have told you not to worry. did have good statistics. mulally saying things are good. keep cars at holmes and things bought into homes. in a few weeks we're going to sit here and talk about government shutdown and government shutdown no n. 2011. i love kelly's work, but 2011, interesting year in her work. fiscal cliff. terrible time to buy. we'll have a new name. >> we haven't thought of that. >> we haven't thought of it yet and it's not going to be positive. >> whenever those guys get involved, it generally is not. we'll talk more about that in a little bit. >>> wh

>> phil lebeau will bring us details. >> my dreams are going into my feet. >> the third hour of "squawkts right now. ♪ >> welcome back to "squawk box" him i'm becky quick. scott wapner is in for joe who is still on vacation. our guest hosts have shawn taylor the chairman and ceo of sfx concepts. we have been watching the futures this morning. so far, it looks like there are some green arrows. it looks like the dow futures are up. s&p are up by about 5 points. >> the big corporate story of the morning the shakeup at j.c. penney. news breaking earlier, investor bill ackman resigning from the board of directors as part of his res ig nation, ronald tysoe former executive at federated department stores, now macy's, will be joining the board as will another board member and political ackman telling cnbc in a conversation we had exclusively earlier by telephone that he felt very comfortable with what ultimately happened. he says, i elevated a bunch of issues that are critically important by making them public. we came to an agreement t. board will now fung more effectively, he says, without th

the stock is up 34% in the last year, and the phil lebeau joins us live with exclusive interview withnt. hello, phil. >> and big expansion for allegiant, and we will bring in the president from las vegas where it is based. andrew, what stands out about the expansion is that you are making a big concerted push to increase service on the east coast, correct? >> we are. good morning, phil. yeah, we are. the east coast, and the florida destinations in particular have been really strong over the last 12 months, and we continue to see a lot of strength there surrounding a lot of new cities that serve florida and a lot of the new routes into florida from some of the existing smaller cities that we have been in other points around the country. >> andrew, you are adding service from long island and mcarthur, and stewart international, and portsmouth, about an hour out of boston, and are you finding that people will say, hey, i will make the drive in order the save some money on this flight? >> well, phil, i guess we will find out. you know, i don't expect those flights to be primarily filled w

phil lebeau joins us with more. hours to hear about, phil. >> andrew, this is called the hyperloop. i'm not sure a theory -- and that's all it is a theory at this point -- has received as much hype as the hyperloop. elon musk says it's a cross between the concorde and a rail gun and an air hockey table. that's the most we know so far. here's what else we know about what he will unveil this afternoon. the hyperloop will make travel between l.a. and san francisco, cut it down to 30 minutes. it would be solar-powered and the tickets to go on the hyperloop would be comparable or less than going on a plane or a train. elon musk says he's not going to develop the hyperloop. he's just putting this theory out there as a mode of superfast transportation that should be considered for development in the future. he says it will have an open architecture. we did find a company out in longmont, colorado, called et-3. that stands for evacuative tube transport. it's working on tube transport technology. it says that tube transportat

phil lebeau is live. >> reporter: you mentioned all of the issues about the ceo. we were going to talk with him about it here in ir vine but we were told carlos is not going to be coming to this event. we asked for some specifics as to why he canceled that, he is unfortunately detained and cannot be here but there will be other executives who will we be able to talk with. we'll tell you why this is an important event. here's the statement from nissan, mr. ghosn will not join us. we have a number of senior executives including andy palmer who will present the technology and give the keynote address. as we mentioned, this is a big event for nissan because they have media coming in from around the world every five years hold the nissan 360 event. and this year holding it in irvine, where sales are on par with the rest of the market but the infinti division is struggling, down 1.9%. nissan has announced it will be selling autonone mouse driven cars. it is developing these vehicles with leading universities around the world but here's the interesting thing. they made a

phil lebeau's been talking about this a lot.t's all autos, if it's broad based, though, it's good news. >> steve, let's ask our next guest. thank you very much. steve liesman with the strong data this morning. let's bring in the aerial investor director of research and pnc, good morning. >> good morning. >> charlie, first to you, steve was highlighting the strongest points in the ism survey that we've seen in a couple years. is it your sense that this is reflecting the outside strength of autos or a more broad based recovery in the u.s. economy? >> it's more broad based than that. it's autos. it's housing. it's energy. all leading to good-paying jobs which are going to bring down unemployment. and it spells a strong recovery. a higher than the 2% everybody is talking about, we're going to get to 3%, 4% and that means bond prices are going to go down. bond prices are going to get hit hard and the stock market can still do significantly better from here. >> charlie, you safe the bond prices are going to get hit hard. we've obvious

. >> reporter: phil lebeau, cnbc business news, zealand, michigan. >> good piece there by phil.street talk" plus a root canal stock star. >> and find out why we are pay being homage to rock band bread. jackie: there are plenty of things i prefer to do on my own. but when it comes to investing, i just think it's better to work with someone. someone you feel you can really partner with. unfortunately, i've found that some brokerage firms don't always encourage that kind of relationship. that's why i stopped working at the old brokerage, and started working for charles schwab. avo: what kind of financial consultant are you looking for? talk to us today. i'm bethand i'm michelle. and we own the paper cottage. it's a stationery and gifts store. anything we purchase for the paper cottage goes on our ink card. so you can manage your business expenses and access them online instantly with the game changing app from ink. we didn't get into business to spend time managing receipts, that's why we have ink. we like being in business because we like being creative, we like interacting with p

phil lebeau, he'll be here next to tell us.de, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine. >>> welcome back, everyone. we are continuing to follow a story out of birmingham, alabama this morning. a ups cargo plane has crashed. it was an arab bus a-300 plane that was coming from louisville. that is ups' biggest air hub. the birmingham mayor says there were only two people on the plane, and the pilot and co-pilot were both killed. we are looking at video from our local affiliate. phil lebeau joins us on the "squawk" newsline with more on this. >> any time there's an airplane crash, regardless of whether or not it's a commercial passenger flight or a cargo

phil lebeau is live in chicago with details on that?e time before inve investigators know what happened. early this morning in birmingham, alabama, a ups plane in route from louisville to birmingham crashed as it was approaching landing. it wasn't landing but it was on approach, killing the pilot and co-pilot. airbus 300-600 in route from louisville to birmingham. a statement by ups says we place the utmost value on the safety of our employees, our customers, and the public. we will immediately engage with the national transportation safety board's investigation, and we will work enhawesively on response efforts. by the way, as you look at shares of ups we should mention there is an ntsb go team on its way to alabama. also, u.s. officials are reviewing the cargo on the plane. that's standard. according to a senior counter terrorism official talking with nbc news, there is no indication at this point that there is anything related to the cargo that caused this crash. again, that's very preliminary. here's the ntsb talking about the next

phil lebeau is looking at auto sales. >> 6.7 million vehicles, that's a little below what wall street was expected. that's 14% increase from july of last year. 6% decline compared to june. sales rate for the month of july, 15.67 million vehicles. back to you. >> phil, thank you very much. >>> we have been following the latest breaking developments on the fabrice tourre case. mary thompson is outside the courthouse in manhattan for more on this verdict. mary? >> this is a huge victory for the securities and exchange commission. after a jury found the former goldman sachs vice president liable on six of receive he counts. the jury of four men and five men taking a little over a day to come to verdict after a trial that lasted almost three weeks. interestingly, and this is a strategy likely devaded in weeks to come. mr. tourre stepped down from the stand, the jury listened to two taped testimonies afterwards. the defense felt their client had done such a strong job on the stand, convincing jurors he was there to tell the truth and clear his name, they decided ton call any other witnesses

phil lebeau covers the airline industry and aviation more broadly and is live with us in chicago. what do we know? >> reporter: investigators in ntsb are now on the scene just outside of the birmingham, alabama airport. it's a grassy area not far from the airport. this is what they are seeing. they are in the process of retrieving the black box, the flight data recorder. they will review the cargo list. as you mentioned the pilot and co-pilot were killed in the crash. the plane involved is an airbus a-300, ten years old, has 11,000 flight hours, according to airbus. ups says this flight was making an approach to the landing as it came in. that's when the crash happened. >> we saw smoke and debris, like it was shredded across the field, so it was quite scary. >> i heard this fluttering over the house, but i heard the loud boom. i guess that's when the plane crashed or hit the ground, but it was -- it was terrifying. >> reporter: for ups they have 235 planes that they own and another 293 that they charter. they make more than 1,900 daily flights, and according to the aviation safety

phil lebeau has this story for us from chicago. >> reporter: tyler, we always say you build where you sell. job motors has a lot of facilities there and that's why there's a report today out of reuters in south korea saying general motors is considering, has not decided officially, but is considering lowering production substantially in korea. the problem here is that they are fighting rising production costs in south korea. this is no longer a low-cost country when you look at automobile manufacturing. when you look at annual, they build 20% of its vehicles and if you're using some place as an export base, you need to lower your costs and as you can see they build a lot because they sell a lot in north america and same with international including china. finally for gm, the important thing to focus on here is that asia is increasingly being driven by the chinese market, and they are putting more of an emphasis on china when it comes to vehicle development. it's a big change from the early 2002 to 2003 when they bought dae woo out of south korea. at that time, keep in mind, 10, 12 yea

phil lebeau covers the auto and airline industry. he's in chicago. steve, i'm going to start with you. for a long time we lost a lot of cheap manufacturing overseas. a lot of time comes cheap manufacturing, cheap wages. longer term, is this good or bad? >> a couple of things are happening that i know about. first, the huge u.s. energy story. that's creating possibilities for manufacturing in the united states. could make u.s. a low-cost producer. we have a highly educated workforce. executives woke up one morning and realized they hadn't slept because handling factories in china and overseas is a much bigger time consumer than they thought originally. for certain products it may not make a whole lot of sense to make them over there because of all the all-in costs of doing it. one thing where i disagree with boston consulting group is we may get manufacturing back but we may not get manufacturing jobs back. a lot of the new manufacturing in the u.s. will be automated. i want to share this quote with you from management consultant warren benis. the fac

. >> now to phil lebeau. 3%. what does it mean for the auto sector? >> i don't think it has a huge impact, sue. two things really dominate or drive when it comes to auto sales what's going to happen. one of them is consumer confidence, what's happening with your monthly paycheck and a move up to 3% will not have a huge impact there, and the other issue at hand is we're dealing with a lot of pent-up demand in terms of old automobiles in the united states so as a result a lot of people will ultimately be coming back into the market and if the ten-year goes up to 3% that won't stop people from going down to the local dealership. >> all right. thanks, phil. ty, up to you. >> thanks very much. jackie deangelis has breaking news on dell's battle with carl icahn. >> a delaware court has actually denied carl icahn's request to fast track his lawsuit against dell. of course, icahn was trying to accelerate the time frame on his lawsu lawsuit. he was hoping to head off the september 12th special shareholder's vote on the takeover proposal from michael dell and s

first of all to phil lebeau. a lot of buzz over an old american classic, right? >> yeah.mandy, and we're going to continue to see that over the next couple of months because the new chevy corvette, the 2014 stingray, which is the seventh generation, it is just starting to roll into show rooms. really won't see it over the next couple of months but it goes on sale next month. the seventh generation corvette stingray will start at just under $52,000. it's always been that the vet gives you more bang for your buck than other sports car. that said, sales have really started to slow down. starting in 2006 you saw the big drop-off with the recession. last year just over 14,000 were sold. the question now is whether or not the buzz that sounds the stingray, is it going to be enough to get people excited about corvette again? is it a halo car for general motors? now, it does include upgraded interiors. definitely needed, because the old interiors were a joke and many people said that was one of the problems with the corvette. it goes 0 to 60 in 3.8 almost a chance to test drive i

phil lebeau joins us now.derstand his announcement, more details in maybe an hour's time. >> we'll hear about the hyperloop, or at least his vision of it. the hyperloop hoopla is what we're looking at, because we don't have an indication of what he's going to tell us. he told us it's a theory. not a company he's forming. it's his vision of the future. it will be solar-powered and have the cost lower than what it would take to take a comparable trip in planes or trains. he tweeted a few hours before he pulled an all-nighter developing his hyperloop plan. the hyperloop will have an open architecture, so in other words, if other technology companies, other software engineers, if they want to add to the hyperloop that he throws out there, that's a possibility. i want to show you the animation, because this is the vision of a company out of colorado. et-3, it's developing tube transport technology. it's already issuing licenses to technology partners, similar to what musk has talked about, an open architecture. et-

phil lebeau joins us now with the details. >> reporter: this is all about whether or not you believe the merger between u.s. airways and american airlines hurts competition around the country. the justice department says that is clearly what's going on if these two airlines merge. a number of routes where there is not enough competition. we'll talk about one specific airport in particular. the lawsuit will also slow down amr's bankruptcy exit. there was supposed to be a vote on thursday that would allow that exit to happen contingent upon the merger between u.s. airways and amr. that is likely going to be delayed. u.s. airways ceo doug parker says this merger will not be happening in the third quarter. we talked about where we may see some competition concerns from the justice department. reagan airport, d.c., that is the primary area that the justice department pointed out. they say that this merger will hurt competition for people flying in and out of that airport and they point out that 63% of the nonstop flights at reagan would be controlled by u.s. airways and amr if they merge.

but our own phil lebeau has right now -- he got off a conference call with the airlines, and what are they saying right now, phil, before we get -- >> reporter: bill, the conference call is going on right now. it is with the legal advisors for u.s. air and american airlines, and essentially, they're blasting the doj saying that they plan to go to court to prove that the doj, in their words, are wrong, and they got this one dead wrong. according to the legal advisors, they will show in court that the government's contention that this merger will make things less competitive in the airline industry is wrong, in their opinion. you know, yesterday, when the government came out and said, we don't think this is competitive, they said that there is more than 1,000 routes that would be hurt if this merger were to go through. the advisors for u.s. air and amr have come out on the call and said, listen, there are 12 routes and we will show there are only 12 routes where this would hurt competition. we're willing to make adjustments on those 12 routes. and then they go on to take one other issue

phil lebeau joins us from chicago with more. >> good morning, kelly.music there, and very appropriate for what we are talking about. many people are asking what is behind the hyperloop proposal? well, here are the drawings and what he believes that it is all about and he is proposing essentially building this between l.a. and san francisco and these would be capsules that flid on air kconditioning up to 800 miles per hour, and carry up to 28 passengers, and as they are going from l.a. to san francisco he says you put a couple of tubes along highway 5 in between and the immediate me one going one direction and one another, and the g-force is comparable to the airplane, but the question is would elon musk build the hyperloop, and he is so far saying no, but he is open to the possibility of building a prototype. >> it is low priority relative to the core mission of space x and tesla, but i think that, i think that it might help if i created a prototype and help get things going. >> the one area that a lot of people are saying that just does not make sense

of goods made overseas, small factories are back and for our "made in america" series we go to phil lebeaurking two shifts, woodways makes custom cabinets for homes and offices. this year sales are up 20%. a far cry from 2007 when suzanne and her husband bought the bankrupt company, carved out a new business plan. >> we can compete globally because the customer can call us, we can do a design and have it on this machine in an hour. >> other small americans shops are finding they can not only compete but actually beat larger low cost foreign manufacturers thanks to machines like these. they're cnc machines, computer programmed to cut specific designs and parts. for years they cost well over 100 grand. too much for many small companies but not anymore. new cnc.com in holland, michigan, sells cnc machines for $40,000. demand is so strong, it's expanding, hiring workers. the key to its success -- >> there are components from germany, italy, japan, stuff from china. what we're trying to do is cherry pick the very best components. >> automation and robotics, once feared by small manufacturers, n

phil lebeau joining us now from chicago with more.t does. but the fact that elon musk has been so successful in other endeavors has people saying this must be more than just a theory. he basically says that when he unveils it this afternoon, what you're looking at is something that's a cross between the concorde a rail gun and an air hockey table. thing about something that's going to take advantage of mag-lev, jet propulsion, the hyperloop, he says will cut the transportation time from l.a. to san francisco down to just 30 minutes. solar powered, so less expensive than something that relies on conventional fuel and the tickets would be less than if you were to take the same trip on a plane or on a train. there's already one company that we found in longmont, colorado, just north of denver that's developi ining tube transport technology called et-3. it's brought in a number of investors. here's what the founder told us when we talked to him yesterday about the potential for superfast tube transportation. >> new york to beijing, china,

also, ford president and ceo alan mullaly right there with cnbc's phil lebeau. and why the auto industry means so much to the city of detroit. >> more "morning joe" live from the motor city, we'll be right back. [ male announcer ] at northrop grumman, we know in the cyber world, threats are always evolving. at first, we were protecting networks. then, we were protecting the transfer of data. and today it's evolved to infrastructure... ♪ ...finance... and military missions. we're constantly innovating to advance the front line in the cyber battle, wherever it takes us. that's the value of performance. northrop grumman. that's the value of performance. hi, hi, i'm sherri. and i'm going to show sherri how collecting box tops for education earns cash for our school by shopping at walmart. come on. sherri, look at all these products that you can buy for your family with box tops. and look, four box tops in one box. that's awesome! more cash for our school. only at walmart you get 4 box tops on over 100 items. karissa i got it and you only had to tell me four times. f

it filed a lawsuit to block the move as cnbc's phil lebeau reports. >> here in the u.s., the prop e proposedr is in a holding pattern. the department of justice filed an antitrust suit essentially blocking the merger of the two airlines saying that it would hurt competition and result in higher airfares and higher fees for the traveling public. both us airways and american airlines released statements on tuesday saying that the doj is wrong and plan to fight the government in court. the real term implications of this is that american airlines will not be exiting bankruptcy as planned as quickly as many expected. also, the merger of these two airlines will not take place in the third quarter. doj says that if these two airlines were to get together, it would result in hundreds and hundreds of millions of dollars in harm for the consumers here in the united states. meanwhile, shares of lcc, the us airways stock, took a big beating today, dropping more than 10%. the biggest one-day drop for lcc shareholders since august of 2012. that's the latest from here in the u.s. back to you. >>> australia

our phil lebeau has more on that. ers and i talked with some people in the industry and they're starting to bump up, not by a lot, but by a little bit the number of electric vehicles they expect sold in the united states this year. when you look at it, and primarily we're talking about the volt and leaf as well as the tesla model s, the expectation is for greater than 50,000 evs to be sold in the u.s. this year with the majority of those vehicles being sold in california, and we were out in california last week touring the tesla plant where they are now up to building 500 model s vehicles every week. they're expanding production to 40,000 vehicles next year. they're also working with and having discussion with battery suppliers about increasing cell production. here is tesla ceo elon musk talking about the importance of making sure there are more battery cells being able to be produced in the future. >> we're working with our primary partner, which is panasonic as well as talking to potentially other suppliers like sam

. >> get right to phil lebeau of flat rock, michigan outside of detroit with a special "squawk" ceo calledunger than last time with mulally. >> you know, he doesn't have an ifb. he didn't hear you, joe said you look younger than ever. he paid you a complement. >> welling thank you, joe. >> this is a big day for ford. you are adding a second shift here. 1,400 jobs. you are beginning production of the fusion here at the flat rock plant. how critical is it in terms of meeting that demand out there? >> it's really critical. our sales rep up another 13%. so this is going to add 30% more production capability for the fusion. so it's almost at the right time for the customer interest. >> are you leading some sales out the table? because you are so tight on supply. it's 10, 12, 15 days. >> oh, absolutely t. demand is very pruction in advance. even though we missed a little bit. we will catch up quickly with this development here. >> you now have, by the end of this year, according to ihs automotive, the big three, half, half of what you build in the united states will come from plants that are run

phil lebeau joins us in chicago with details on this one. >> we get this question all the time, in factto me, who is buying the tesla model s? we worked the folks at edmonds who reviewed vehicle registration data. the profile in terms of over the last year, from june of 2012 through june of 2013 the typical tesla model s buying, in terms of the sweet spot for the age category, 35 to 54. 57% of the buyers falling within that age group. male, 83%. and 56.5% of the tesla model s buyers have annual income of greater than $150,000. the tesla model s has a younger, richer profile in terms of buyers compared to high-end luxury cars. 77.3% of the model s buyers make at least $100,000. that's higher than competing bmw and mercedes models. what does it resemble in terms of high-end luxury cars. the porsche, model s sales are similar in terms of percentages when you look at types of buyers, average income, male versus female. very similar to the porscha. upper end luxury sales up 16.7% this year, double what the averages of 8.5% increase. because there are so many comparisons done between the mode

i'm phil lebeau with breaking news.r 25th as the start date for an antitrust hearing as the federal government tries to block the merger of u.s. air and american airlines. this is a win for u.s. air and american airlines because they were pushing for an earlier antitrust hearing. the federal government, the department of justice wanted the hearing to start in march. the judge said waiting to march is way too far in the future. this will begin on november 25th. keep in mind, that's three months away. i would not be surprised if we have a settlement negotiated by both sides before that. >> that's what we're lo on the lookout for. >>> it's one of the oldest questions in sports, if you spend more, will it make you better? for the l.a. dodgers the answer so far is an emphatic yes. the jane wells has more live in los angeles. >> this legendary team hasn't been to the world series in 25 years. don mattingly says dodger fans got embarrassed to wear dodger blue. not anymore. since the guggenheim group along with magic johnson pa