i'm phil lebeau. we'll go behind the scenes coming up on the "nightly business report." >>> for defense and commercial aviation companies, 2017 is turning into one of the strongest years ever. demand for military jets and commercial airplanes is climbing and that makes this year's paris air show a very busy place for some of the world's largest companies. phil lebeau, as you saw, has more from us from paris. >> reporter: with lockheed martin's f-35 putting on a show in the sky, defense companies are taking center stage at the paris air show. >> we are absolutely busier, we have looked at what our meetings are and they are up by a large significant magnitude and we expect to have great interactions all day today and throughout the week. >> reporter: military contractors are gearing up for more orders as countries expand their defense budgets including the u.s., where the trump administration is pushing for a 10% increase. >> i suspect they'll be in negotiation. we think we can see sustained low to mid

i'm phil lebeau. that story coming up on the "nightly b >>> here's a look at what to watch for tomorrow. the philadelphia federal reserve will release its business outlook survey. we'll see if the labor market is still strengthening with weekly jobless claims. and a fresh read on homebuilder sent sentiment. that's what to watch for on thursday. >>> a new lawsuit contends that wells fargo made unwarranted changes in loans even as it was trying to recover from its fake accounts scandal. according to "the new york times," the changes typically lowered monthly loan payments but the bank changed the term of the loan in some cases by decades, there be increasing the amount that borrowing ultimately owed the bank. >>> airline passenger complaints rose 70% in april. that report from the department of transportation comes after a series of high profile incidents, including the forcible removal of a passenger from a united airlines flight. the department received more than 1900 complaints that month. >>> americ

i'm phil lebeau. that story coming up on "nightly business report." >>> shares of arroni came under pressure today after the manufacturer said it will stop selling a type of panel suspected to have contributed to the spread of that deadly fire through a london apartment building a few weeks ago. arconic, created by alcoa's separation into two companies, saw its stock fall about 6%. morgan brennan has more on this latest development. >> reporter: it was the worst fire in london in decades. the deadly blaze at grenfell tower that's left at least 79 people dead. >> there are two points of priority for me, the building, but also the internal aspects of that building. we're working with experts, and the inspiration behind the coating. how it was affixed to the building. preliminary tests on the installation samples collected from grenfell tower show that they combusted soon after. the initial tests also failed the safety test. >> reporter: as investigators assess the damage and discuss possible manslaughte

phil lebeau and eamon javers. for a long time since the inauguration infrastructure has been considered a truly bipartisan issue if we have any at all. and i wonder if that's still true. >> reporter: i don't know if there are any bipartisan issues left in washington, carl. this town is so divided it reflects the country that's bitterly divided. if you're a democratic on capitol hill you have incentive to drag your feet and not let this administration get any wind. on infrastructure they say they will have it done by the end of the year but not clear whether that is doable in term of the legislative calendar because there's so few legislative days left in the year. you just saw a picture of jared kushner shaking hands with bill shutter, congressman from pennsylvania, chairman of the house transportation committee and the white house cites him as one of their key influences in terms of breaking out this air traffic control piece. they say that because chairman shutter did such a good job of putting together this pro

phil lebeau has more on the changing dynamics of who is buying a car and a truck right now. >> reporter: with auto sales starting to slow down, there is a greater focus on who's buying cars and trucks right now, and can they afford the loans they're taking out. over the last two years, more borrowers with the poorest credit records have been unable to make payments. and they've been defaulting on their loans. perhaps that's why lenders have hit the brakes on subprime loans. they plunged in the first quarter while lenders did more business with those who have the best credit ratings. >> we've been hearing just here and there, over the last year, year and a half, various lenders coming out and saying they were going to restrict subprime. as those lenders came out and made those statements, it seemed to trickle down into other lenders in the industry. and others seemed to follow suit. >> reporter: trader credit in the showrooms comes as automakers are adjusting production schedules and the supply of vehicles rolling into dealerships. while inventory levels are slightly higher than normal,

phil lebeau has more. >> new car buyers have plenty of reason. the quality of what's in the showroom has never been better. j.d. powers surveyed more than 80,000 people three months after they bought a new model and found a drop in complaints for the majority of the brand with the top three being kia, genesis and porsche. by comparison, j.d. powers says the worst initial reviews came from those who bought a volvo, a jaguar or fiat, but there's one complaint that sticks out among new car buyers. driver assist features like adaptive cruise control and collision avoidance systems are not working the way many people expected. >> this question of educating the consumers to how these som are fairly complicated and not something you'd want to be using when driving at 70 miles down the freeway. >> with tesla and tech firms like waymo developing self-driving cars, there's an all out race to have vehicles make more decisions for drivers. sometimes, the technology is is intu utive. sometimes, it's not.an sometime annoying. >> we are saying with some of thes

phil lebeau has more. >> reporter: smile for the camera. that's all you need to board jetblue's flights to aruba from boston. no more boarding passes or searching for your passport to prove your identity. >> ultimately i think we see a future where your face is your passport for travel, where you can show up in an airport and your face checks you in, your face allows you to drop your bags, allows you to go through the tsa checkpoint and ultimately board a flight. >> reporter: delta agrees. it will soon use facial recognition to identify passengers checking their luggage before boarding certain flights out of minneapolis. >> this is just another step towards giving a customer something, if they're happy to do their own bag drop, let them do it, they're willing to. >> reporter: airports are addi facial recognition for two reasons. first, apps have become so popular, passengers are not only comfortable with the technology, they use it to move quickly through the airports. second, facial recognition systems are tied into databases like the one

phil lebeau explains. >> reporter: there was mixed news in america's showrooms last month. let's start with the not so good news. sales were unimpressive. only ford posted slightly positive results among the big four automakers. once again, trucks and suvs are driving demand while car sales continue to slide. even with some models carrying huge incentives. as a result, may was the third straight month with sales under 17 million vehicles, the slowest three-month period since 2014. >> it's a cyclical business. some cooling-off was inevitable. and guess what? it's happening. >> reporter: while automakers are wrestling with slower demand, they appear to be showing some discipline when it comes to incentives. that's the good news from last month. the amount of money to close a deal, even when you factor in discounts when selling cars, was relatively flat for april. meanwhile, automakers are expected to curb production as they head into summer to help ease bulging inventories. one other piece of good news for the auto industry is the overall health of the u.s. economy. the combi

phil lebeau, "nightly business report," chicago. >>> staples may be going private and that's where weonight's market focus. according to reuters, the retailer is in advance talks with sycamore partners regarding pa potential takeover that could be worth more than $6 billion. shares of staples rode to $9.20. consulting firm ak sen sure beat revenue expectations as the company saw solid demand for digital and cloud services. accenture raised earnings outlook for the year citing a smalling than expected impact from the dollar. swiss drugmaker novarta said its heart treatment reduce the risk of cardiovascular problems in people who previously experienced a heart attack. the drug is already approved to treat rare autoimmune diseases. the company says it plans to begin discussions with regulators to begin the approval process. novartis rose 4.5% to 8634. >>> cost cuts helped barnes and noble post a narrower than expected loss. revenue fell at the bookstore chain, but the results were still ahead of estimates. the company says it expects same store sales for the year to fall in the low singl

phil lebeau, "nightly business report," chicago. >>> that is "nightly business report" for tonight. i'm sue herera. thanks for joining us. have a great evening, everybody. we'll see you right here . >> this is "bbc world news america." funding of this presentation is made possible by the freeman foundation, and kovler foundation, pursuing solutions for america's neglected needs. >> planning a vacation escape that is relaxing, inviting, and exciting is a lot easier than you think. you can find it here in aruba. families, couples, and friends can all find their escape on the island with warm, sunny days, cooling trade winds, and the

phil lebeau is live from spartanburg. il. >> reporter: this is where they build all of the bmw crossovers and the suvs they are going to be increasing at least the number of employees here and the work that they are doing, we'll see what happens with production as well. the company announcing it will invest $600 million into this plant in the next three years and adding an additional 1,000 jobs the fact of the matter is, while they crank out these models here, the vast majority are exported just 29% of what bmw sells in the united states is made here, most of what they sell in dealerships is imported. i had a chance to sit down with the bmw chairman and i asked if he was worried about a tariff or tax on imported vehicles as threatened by the president and nafta will be changed because they are building a plant down in mexico. for now he says no change in the plans for building in mexico and nor is he worried about nafta changing. >> we're flexible but we didn't talk about nafta during that time we talked about our expansio

we have an inside look at the health of the industry phil lebeau joins us hi, phil >> reporter: hi, verying in paris let's run-down key points on the commercial side and defense side on the commercial side, solid but not spectacular orders announced today. frankly, that's what the industry wants they're not looking for huge orders we saw a few years ago. boeing announcing several orders for the 737 line within the last hour on the defense side, that's where all of the action is now heavy action for defense contractors. they're all talking about they've never been busier before, in part because of increased defense spending in the u.s. and hot spots around the world. on the commercial side, international air traffic is growing. that's one reason why for commercial airplane makers like boeing and airbus, look at shares of boeing, they are announcing 737 max-10. here's the ceo talking about demand on the commercial side right now. >> we are continuing to see strong demand. updated the current market outlook. next 20 years, need for new airplanes, seeing lift there >> percentage wise, what k

phil lebeau is out on the road joining us as a special guest. phil. >> reporter: thank you very much i'm joined by johan driving hands-free heading north on the 280. we are in a cadillac with the new super cruise technology. this allows hands-free driving on the highway, right? >> this is the first car designed to be totally hands-free on the highway. and absolutely state-of-the-art. >> do me a favor, a hold up your hands. you are not holding up your hands at 72 to 73 miles per hour the difference is there's a small camera watching your eyes. how much of a difference maker is it to convince people, this is not just autopilot, so to speak. you have to be engaged with the vehicle? >> well, the reason we're able to deliver fully hands-free capability is precisely because we have designed the system to engage the driver. and the sensors embedded in the vehicle surely make sure the driver is alert. you don't have to drive, you can have conversation and dialogue as we are doing now. you can operate the system, all things you like to do. but if the sys

phil lebeau tracking the numbers. phil, what's the scoop?it's all about the incentives and they seem to have moderated in the month of may. let's take a look at the sales numbers because you'll look at these and say those are lackluster. yeah, they're not terribly impressive. you had ford and fiat chrysler doing a little better than the edmunds estimate while toyota and general motors did a little poorer than expected. the sales rate for the month of may, and we'll get that a little later on today, is expected to come in around 16.6, 16.8 or 16.9 million. i want to show you the rolling three-month average for auto sales. the reason we're showing you this is because we're looking at the slowest pace of three-month sales, the first three months below 17 million since july of 2014. and yet as you mentioned, scott, the auto stocks are moving higher today and it's, again, because incentives in the month of may appear to have moderated. they were relatively flat with april, yes, up year over year, but it looks like perhaps we're seeing some discip

phil lebeau has more phil >> melissa, just had a conversation with american airlines ceo doug carter indicating qatar airlines would like to buy up to 10% of american shares. the conversation was on the record but would not be recorded, they asked we not record it. here's a couple of comments from doug parker on the issue of his reaction to qatar saying they wanted to own 10% of american. he said, "i found it confusing by the way, the first conversation was two weeks ago in cancun, mexico. i was a little bewildered why an airline we were aggressively fighting would want to take a stake in us. makes no sense." then the question of, well, is it the possibility qatar is trying to soften up america's resistance to the gulf carriers expanding in the united states on that point, doug parker says, "if that is their motivation, it is misguided and ill conceived all this is doing is strengthening our resolve to defend our airline, which we will continue doing vigorously." bottom line is this, melissa, doug parker is not saying if he's going to vote against qatar airlines taking a greater stak

. >>> and then we'll go to the paris air show our phil lebeau with a special guest and big orders beingin the business. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. i need the phone that's where i happen to be... to be the one that rings. i need not to be missed phone calls... to not be missed. i need seamless handoff... canyon software. from reception, to landline, to mobile. i need one number... not two. i'm always moving forward... because i can't afford to get stuck in the past. comcast business. built for business. >>> the dow hitting another intraday high this morning thanks in part to tech, apple and microsoft among those leading the blue chips higher. for more, we're joined now by senior portfolio manager dan morgan and brian whi

phil lebeau is in chicago.e doesn't mince words >> never he just sent this letter out to employees. this sentence covers exactly how he feels and how a lot of the management at american feels "while anyone can purchase our shares in the open market, we aren't particularly excited about qatar's outreach and we find it puzzling giving our extremely public stance on the illegal subsidies that qatar has received from their government." that is just a taste of what doug parker is saying after being notified by the ceo of qatar airways that it plans to buy up to 10% of the shares of american airlines. just for some perspective here, this can -- it's not like they can automatically by these 10% they can buy up to 4.75% anything beyond that would have to get the approval in advance by the american airlines board the board, by the way, has not received any particular notification that this is going to happen. simply the phone call between the ceo of qatar and doug parker qatar today tells us that "qatar airways believes

phil lebeau along with eamon as the president signs that letter. phil, the president said it's going to lead to an air travel revolution. your thoughts? >> potentially. look, that's the hope that you have a new system that's in place that will incorporate new technology, that will make a system run far more efficiently. now, it's going take some time for this transition to actually take place if this is approved by congress and if it does, you're looking at at least three years for the transition to take place into this privatetized air traffic control system then you have to have the equipment brought in both at the air traffic control centers then you have the airlines although most of the airplanes because they're flying worldwide, most of the airplanes have a lot of this xhimt already, but in theory, guys, this has been implemented in more than 50 other countries and those systems operate more efficiently than our system, so, it should cut down on delays. it should mean you have less congestion when you're flying into new york. let' see if that

phil lebeau takes us for a ride outside palo alto, california. >> cadillac calls its super cruise technology a game changer, allowing hands free driving on the highway while ensuring drivers pay attention. radar and sensors watch what's happening around the sedan and the small camera on the steering come lum watching the driver's eyes and head positi doze off behind the wheel, the cadillac will alert you to take control. >> like a really long time. >> the technology is designed to lift the driving experience. according to the head of cadillac, who took us for a hands free drive. >> we've designe to engage the driver. and the senators that are embed ed make sure that the driver remains alert. you don't have to drive. >> it comes more than a year after tesla made a big splash. it allows drivers to take their hands off the steering wheel for short periods of time. >> this is a shot across the baugh of tesla, which already has autopilot. cadillac is really trying to take tesla on in that category of technology. >> cadillac believes super cruise raises the bar compared to tesla's autopilot. >> th

24,000 nobody's expecting anything to be a dramatic miss they've targeted 50,000 for deliveries >> phil lebeau in chicago. at this point, it almost does it almost not matter what the delivery numbers are if you can tweet out the model three is still on track >> i think they do that's part of the reason why i sold it this week. i still like it. but you had all of this priced into it and so now, we have an environment where tech is under pressure look what happened today he said model 3 is out it's up a quarter of a percentage point in a good tape. i know the tape wasn't very active, but tesla in the old days and i'm talking like three weeks ago, would have been up. >> it's because of the tech sell off. i don't think the delivery really matters because phil just labeled a bunch of different issues there, with shingles, the china rollout. we still don't know what kind of company this is, whether it's 22 p% short interest. so that's the catalyst there people are are short this name any good news they cover the reason it sold off is because tech sold off, not because of delivery numbers. >> i'm say

to fly due to a stronger economy and airfares that are about 8% lower than this time last year phil lebeau, "on the money," chicago. >> so what will these new rules mean for your next trip and are more changes ahead mike boyd is an aviation consultant and president of the boyd group international mike, great to see you today thank you for being here. >> my honor. thank you. >> just when we thought it couldn't be any more of a hassle trying to travel, here come the new rules. are these necessary rules? should it be taking place? >> i have no problem with separating things so they can see it better. that's going to speed things up, not slow things down but where i'm really concerned is why would you announce the airports where you're increasing security why not send a memo to al qaeda while you're at it but i think these are the sorts of things that do show that we are more concerned about things, and i think very clearly, we're looking at airports that don't look at things as closely as we do. >> you mean instead of telling us the ten airports where these are taking place, just say these ar

phil lebeau, "on the money," chicago. >> so what will these new rules mean for your trip and are more changes ahead? mike boyd is a consultant. mike, it's great to see you today. thank you for being here. >> my honor. thank you. >> just when we thought it couldn't be more of a hassle, are these necessary rules and should they be taking place? >> well, i have no problem with it, separating things so they can see it better. that's going to speed things up, not slow things down. but where i'm really concerned is why would you announce the airports where you're increasing security? why not send a memo to al qaeda while you're at it. i think these are the sorts of things that do show that we are more concerned about things and i think clearly they are looking at airports that don't look at things as closely as we do. >> you mean, instead of the ten airports where these are taking place, random and rolling checks that take place from time to time so be prepared? >> yeah. just say we're going to have higher security in some places. you may have to separate some of your things and keep the el

let me play (bell rings) >>> the biggest names in aerospace are gathering at the paris air show phil lebeaucial guest phil, over to you. >> thank you, will fred. joined by greg hayes chairman and ceo of united technologies this is one of those shows where once the focus tends to be more on the military side which positions well for pratt whitney, doesn't it? >> absolutely. first of all, thanks for having us back. last year we talked about brexit the year before that it was the gear turbo fan we're going to talk about military which is a great story for the pratt business >> how much more demand are you noticing in terms of conversation, in terms of potential orders out there >> i think what we're seeing is really the -- the backlog starting to grow in the military side as we mentioned with pratt whitney, we have content on the joint strike fighter, of course, we also have the new bomber, as well as the tanker, so pratt is well positioned, 25% of their future revenue is going to come from the military side we're seeing nothing but upside there. >> yet when you talk about pratt whitney so man

let's get to phil lebeau the first -- my first reaction is do this actually happen and, you know, howeal of the day that has people on wall street and the airline industry scratching their heads, first of all qatar airways can buy up to 4.75 shares of american airlines it has indicated in a conversation initiated about by the co of qatar airways that it intends to buy up to 10%, but the board would need to approve qatar buys anything more than 4.75%. there has been a conversation between al backer and doug parker foreign companies, by the way are not allowed to own more than 24.9% of any u.s. airline. keep in mind that doug parker has an extremely vocal critic of the persian gulf carriers. it's clear that american doesn't plan to change its stance. it says american airlines continuic to believe the president amend his administration will stand up for foreign governments to end massive carrier subsidies that threaten the aviation industry and threaten american jobs shares of american have moved higher, but get len met stress, doug parker may be the most vocal critic, and how it's her t

our phil lebeau, is in chicago. phil, the shares are up almost another 2%. >> yeah.here are plenty of nuggets at this annual meeting to make people say, i am pretty optimistic about the near-term forecast from tesla. let's talk about a few of the things he mentioned during the annual meeting. model three is what everybody is wondering about. with regard to that, the production and deliveries will start next month. that's a little sooner than many people thought. they thought it might be pushed to august or september. new assembly plant coming for the model "y," which is the crossover they plan to put out by 2019. where it will be remains to be seen. also, adding more gig ga factories. elon musk had this to say about the electric semi truck they plan to show in september. >> i really recommend showing up with a semi truck, unveiling. maybe there is a little more than we are saying here. we will be there when they unveiled it in september. we want to show you tesla versus fof ford over the last six months. the new ceo, jim hackett, may need to cut the earnings outlook

phil lebeau will help out with that. >>> president trump plans to announce a decision on the paris climateccord this afternoon. it will take place in the rose garden. it is scheduled for 3:00 p.m. eastern time. withdrawing from the accord had been one of his campaign promises but a number of leaders including tim cook from apple, elon musk from tesla are urging the president to stick with the agreement. yesterday, jim, multiple news outlets are reporting that the decision had been made. although with this president, one never knows. but the corporate world has been somewhat united certainly larger companies. >> right. >> even those in the fossil fuel business such as exxon mobil, but much of high-tech is represented, saying don't do it. do not do it. >> i had coned on last night, they're not a producer, that i got out in 1991. more than 15 years out of that business of production, but they said, look, this is kind of like the norm. is to be with the paris accords. can i just for one minute explain why you might not want to be in the paris accords? >> okay. go ahead. >> if you ran on the id

all right, phil, keen us posted. filg lebeaurom chicago. -- phil lebeau from chicago. >> did you ever have a wedding the groom the best man gets up givers a miserable long speeches. >> he stands there forever. >> was it you guys had a great year together? the best is -- it's lame, is what that is. >> it's from the beginning. >> he should have started that way. let me tell you something, if you are buying the stock, has this public ability to speak publicly, you should sell them with both hands right now. >> that being said -- >> they talked about this company. we have gone past the core business, with i is something that is so -- >> i'm not commenting. again, we're only talking about. >> they just took the -- >> when they give their quarterly number with we talk about this numbers, stop losing the numbers, no? >> this is a transition year for the company. it's moving to a full energy company. let's forget about autos. to me, i think it's amazing to me this company gets the slack that they get. >> ultimately not. >> i mean, they'

he is not happy with qatar airways plans to buy a 10% stake in the company parker telling cnbc's phil lebeaue found yesterday's offer confusing, adding why an airline we're aggressively fighting would want to take a stake makes no sense he wonders if the motivations were misguided and ill conceived. news sent american shares sharply higher in yesterday's session. >> one surprising thing on this story is that he wasn't aware of this coming through. particularly given they're part of the one-world alliance, american alliance, british airways, qatar airways and qantas, they share their schedules so you can book respective flights so you would think they would have a stronger allegiance not only did he not know about this investment and didn't like it, but he also seemed to say we are fierce rivals and fighting those sorts of sky alliance partners, i would have thought, had more conversations than that >> interesting to see how geopolitics is injected into corporate america in some way. >>> on the earnings front, shares of bed bath & beyond had an earnings miss >>shares of bed bath & beyond down

phil lebeau has more. >> shares of general motors moving slightly lower after the company's annual meetingmeeting where gm shareholders overwhelmingly rejected two proposals from green light capital. most notable of those proposals was to split general motors stock into two dual stocks. one would in theory track the growth prospects for general motors. over 90% said, we don't want them. at the same time, investors also rejected all three candidates nominated by green light capi l capital. all of the current board members were re-elected. for mary parra it shows her p-- shows her plan is working. >>> and before we wrap up the show, let's once again show you what u.s. futures are looking like at this point on the trading day. the s&p 500 seen down by less than 1/2 of a point. this is after wall street slipped again yesterday ahead of the very busy thursday that we're about to embark on. we have the comey testimony tomorrow, the ecb meeting and the election and the dow is down 1/4 of a percent and the s&p down by 1/3 of 1%. >>> that's it for today's show. i'm carolyn roth. thank you for being

phil lebeau joins us now >> reporter: thank you very much bring in john cougar, ceo of air lease corp they were talking about demand and whether or not demand for fuel efficient aircraft is out there. you see no slow down in international travel, people going on flights. >> not at all. we see a strong continued demand 7.9% increase year to date that's been going on several years. that fundamental demand is driven by the number of people getting on airplanes which continues to grow and grow the demand for fuel efficient airplanes to drive, competitiveness of airlines, cost efficiencies continue, unabated. >> do you see them wanting more single aisle airplanes trying to stretch into new markets or look at the wide body, we're in a period we see a little consolidation but fan over time? >> the single market segment will be the lion's share of this industry, that demand wilfred contin there's concern about wide body. you look globally in asia, more airports are being completely congested. >> is it the growing middle class in asia and india that's driving demand >> it is and wealth it crea

phil lebeau joins us by phone to tell us. >> every month the d.o.t.eases how many complaints are lodged against the airline industry and this afternoon we have the latest report involving april complaints and it was a huge surge in the number of customer complaints. jumping 70%. 7-0 percent compared with april of 2016. a huge spike also compared to march. remember, in april you had several high-profile incidents involving poor customer service, really atrocious customer service including a united airline's passenger being dragged off a plane. you had an american airlines passenger with a baby and a stroller who was in an altercation with a flight attendant. who was accidentally hit with a stroller it really put a focus on customer service and that's probably what sparked this huge surge in complaints. having said that, take a look at the airline stock since april 9th when the united incident happened they continue to move higher so while there is a black eye for the industry in terms of customer service, investors continue to rotate into the airline s

i was chatting to our own phil lebeau about the deal who raised an interesting point he thinks does more about the dire straits of the car rental companies than it does did b. waymo. yes, they're surging on the news this morning year to date, they're still lower by 30% you're seeing hertz shares pop on this news as well on the prospect of more deals among rental car companies and autonomous vehicle tech companies. this is the first of its kind. now for waymo this is just the latest partnership that recently announced it is adding hundreds of chrysler minivans to build a 600 vehicle fleet. it is also teamed up recently with ride hailing service and they're also in talks with honda about a possible deal to put its technology in test cars. guys >> thank you for that. what a story on your side of the country this morning as well when we come back, the latest on the president's upcome media with india's president we'll talk with one of the largest indian airlines and hear what he hopes to come to have day's talks. and martin schreli is riving in court for day one of his court date and they'll

. >> american airlines ceo doug parker telling our phil lebeau, qatar airways plan to buy a 10% stake in the company is confusing, misguided and ill-conceived, especially if the plans involve favor to expand operations in the united states. we know you're on the united airlines board of directors. so you know the industry pretty well and the geopolitics are complicated. what's your take on this one >> well, big on the united board. i'm not really prepared to talk about how it affects, you know, either unite order american. but the geopolitics are very complicated. as you've seen over past two weeks, the other gulf states, meaning the uae which has two big airlines, the emirates, as well as other gulf states and saudi arabia have aligned against qatar and made demands on qatar in a very complicated middle east dance there thinking that qatar codeied up too much to iran and also they rejenltal gentleman zeier yacht network. so all of this is taking place where trump is supporting some -- personally supporting some of the gulf states and saudi arabia in their fight against qatar. but the

thishgs think is quite dangerous zbhch >> madam ambassador, we'll check in with our auto reporter phil lebeaus we talk about the potential for tariffs in steel phil, it's a tough one to call today. you got steel makers up. but then you have whirlpool and gm up as well. zbh i was struck by the comments from wilbur ross, the commerce secretary regarding the trade deficit with south korea when it comes to the auto industry a couple things to keep in mind. ier that occasionally from people, isn't south korea a closed snashgt why are we not selling more vehicles to them? it's not a closed market but a unique market where you're dominate bid hyundai, key yashgs the local players, gm owns another fwhp there and then you have boutique offerings. but it's a market where if you're not offering those particular smaller vehicles, you're not going to get very many sales so the big three have largely said with the exception of general motors, look, it's an interesting market we're not going to focus on selling too many cars there. where there is a trade deficit where i think the administration could make s

phil lebeau will have the latest when "squawk alley" comes back.[vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. ♪ ♪ welcome to holiday inn! ♪ ♪ thank you! ♪ ♪ wait, i have something for you! ♪ ♪ making every stay a special stay. holiday inn, smiles ahead. whether for big meetings or little getaways, member always save more at holidayinn.com [ eerie musthe mummy...t ] has returned. you wish to see... what i have seen? you will... when... i... kill you. [ explosions ] [ intense music ] the mummy. rated pg-13. >>> dollar's making fresh post election lows. let's get to rick santelli. get the santelli exchange. >> good morning and thank you. you know, this morning when i brought out the data at 10:00 easter

qatar airlines disclosing an intention to acquire 10% stake in american airlines phil lebeau joins usl, something that's in the works. does it make sense >> no it does not make sense and we're waiting response from american airlines. we've gotten a filing from them saying that they understand that qatar is intending to buy this stake of up 120% otherwise we're not expecting to hear anything else from american that's the indication so far from the company's public relations staff. keep in mind doug parker the chairman and ceo of american airlines has been extremely vocal, extremely vocal blasting both carriers like qatar, em ira tes saying they are hurting carriers doing flights from europe into u.s. he's no fan of these guys. interesting move by qatar saying we want to take a 10% stake in american airlines. keep in mind that foreign entities are not allowed to buy more than 24.9% of any u.s. airlines it's not like this is a threat that american can some day be taken over by qatar. that can't happen. legally that's prohibited. we haven't heard a response from americaner and i would be

phil lebeau has the details of a new report showing a big drop in subprime auto loans. phil?g change from 12 or 18 months ago when we saw a big surge in the amount of loans written to those with the poorest credit scores. take a look at the latest data from experrian. those are auto loan originations. in other words new loans written in the first quarter. look at the drop in subprime and deep subprime down 9% and 7% respectively. according to the people who track this at experian this is all about the industry policing itself. >> so it does appear that the industry is policing itself a little bit more. and we've been hearing just here and there over the last year, year and a half various lenders coming out and saying that they were really going to restrict subprime. and as those lenders came out and made those statements, it seemed to trickle down into other lenders in the industry, and others seemed to follow suit. >> as you take a look at shares of the auto dealers, and we're talking about auto nation, group one automotive, keep in mind that the average amount that is now b

parker telling phil lebeau he found out about it yesterday parker telling cnbc's phil lebeau he found yesterday's offer confusing, adding why an airline we're aggressively fighting would want to take a stake makes no sense he wonders if the motivations were misguided and ill conceived. they have been fighting over policy in washington on whether qatar airlines can be here and whether they're dumping their product. >> he's been very outspoken. phil talked to us about this yesterday, but how he thinks they have an unfair advantage. he was asked if this was a situation to try to silence him. >> if you're in a tooth and nail fight with your competitor and you might lose, might as well buy their stock. >> is this -- >> aren't you hedging your bets that if they succeed, if your efforts fail, at least you'll ride -- i would go long you. >> you would go long me? >> you want to buy a piece of him? i would buy a piece of you >> thank you >> if my efforts fail to undercut you and hurt -- i would like to be part of your success. which is all over the place. >> would you sell him a piece? >> i fee

we'll explain that phil lebeau is live with the details. > this is interesting because a couple days ago when it first came out that elon musk's company, the boring company, is working on improving transportation in cities, people said, really, how serious could this be? well, earlier today, our leslie picker sat down with rahm emanuel for a story she's doing and brought this up to him she said, well, what's really going on here? here's what mayor emanuel had to say. >> i sent my team out there, a group of people who work in transportation and they were impressed and came out with a date in the next three or four weeks we've got dates that we're going to narrow down and to look at the city of chicago >> so they are going to continue talking. this animation was released by the boring company about a month ago and it basically shows the vision for these tunnels that elon musk's company is building. and what it could be, a high-speed rail, so to speak, vehicles on a sled that could move through southern california at a very high rate of speed i

one company is looking tchgeo an that phil lebeau has that story after the break.he world's top companies. the power of an etf. the power of qqq. the thinking we put in, clients get out. power your client's portfolio at powershares.com/qqq. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. >>> welcome back to "squawk box. do you dread the idea of a laptop ban on an upcoming flight 3-d screening technology may be the answer to your prayers but will the government buy it that's the question phil lebeau joins us where are you this morning in massachusetts, that's right >> peabody peabody. just outside of boston these are the ann alogic imagine if you could give a c.a.t. scan to your carry-on bags this is their new carry-on bag screening device that they are currently testing with the tsa and with security officials in europe look at the image that comes through as that bag comes out. they're able to maneu

fill phil lebeau is there and joins us with more >> orders are coming in on the commercial side but plentyn the commercial side, look at shares of boeing moving higher today, the companyin veili iunv new version of its most popular plane, it's the 737 max 10 it will carry up to 230 people they've announced 240 orders here is ceo dennis mullenberg talking to us about the demand for the in your max. >> we have more than 4,000 737 in back log and against that increasing production profile, we're actually oversold. so we continue to feel very strong about the airplane. now as we feather in the max, we're adding even more value into the marketplace >> for the defense side of the business, this is lockheed martin's f-35. it was supposed to fly last year this is the first time it's flying over an international air shore show we talked about increased interest for the f-35 among forng count foreign countries. >> we have nine of us that put money in on the frent end and invested in it and three additional foreign military sales and finland and belgium and germany have expressed interest and there a

phil lebeau monitoring both. let's begin with gm. >> reporter: the green light capital proposal.elieve it will not be approved by shareholders and that's what happened today. the proposal to split shares into stocks. shareholders re-elected all of the board members not electing three candidates by green light capital. and even during the meeting itself what's going on with gm shares. it doesn't take a rocket sign ittist to figure out it has done nothing over the last five years and if you look at it has gone nowhere. the ceo was asked what she needs to do to get investors to appreciate the performance from general motors. >> i can't answer that question specifically. i can continue to make sure we're demonstrate the bright future with tremendous growth in an area that will drive profitability as well. i believe as we continue to take steps, we'll create more proof points and i believe it will turn. >>. >> reporter: general motors is coming off two of its most profitable years ever. 2015 was its most profitable ever and yet the stock just sits there. what can we expect from tesla'

dom speaking of cars, gm is upping the ante in the super cruise control system in a new cadillac phil lebeauifornia with more. >> reporter: i'm driving hands-free i'm on 280 heading into san francisco. this is super cruise technology. we have a couple of shots here you can see i'm driving handsfree as we're going down the highway. we're going to raise the speed here you can use this up to 85 miles per hour and its only technology that can be used to drive handsfree on the highways. you can't use it in the neighborhood if you look at this camera right here, this camera right here on the steering column, this allows the car to check your eyes, your head position to ensure that you're always paying attention which then raises the question, what happens if i'm one of those people who insists on texting or if i get drowsy while i'm driving? watch what happens when my eyes leave the road for too long. we're not endorsing texting and driving but look, i'm holding a smartphone and at some point the car is going to take control and say, i need to take control. there you go you hear the alarm red ligh

phil lebeau in paris, or outside of it, with the latest >> a lot of those deals revolving around the 737 primarily. they introduced a new version of that that's on the commercial side. but today the defense contractors, they took center stage here why? check this out this is the f-35 built by lockheed martin soaring over the paris air show the first time we've had a chance to see the f-35 flying over an international air show outside the united states. it also comes at a day when lockheed martin is negotiating a $37 billion sale of more f-35s to 11 countries. here's the ceo talking earlier today about the increased interest in the f-35 >> we have nine international partners eight international partners plus the u.s nine of us that put money in the front end and invested it. that's how important the aircraft is. and foreign military sales and flind and belgium and germany all expressed interest, and there are others lining up we're very excited >> there's another reason why marillyn and lockheed shareholders are excited look at lmt hitting an all-time high today and the f-35, rockwell

phil lebeau is live in chicago with more. >> it wouldn't be a week if we didn't have a tease or two from elon musk. someone tweeted a question to him, when will we get the final unveil of the model three and he said news on sunday. they've been saying all along in july is when we'll have first deliveries, full ramp-up of production beginning of the model 3. on sunday, we'll get some details about when the final unveil takes place the production target for the model 3, theyincrease it in th months to come 5,000 per week by the end of this year. according to analysts, don't just get caught up in the model 3. look beyond that >> model 3 is important but what's more important is this bigger shift every tesla that's shipping today is going to be fully autonomous with tesla saying two years. hard to believe that i can talk about how that's possible but this is going to be a huge shift in terms of how we get around and tesla is a pioneer in this. >> that's the long-term view of tesla. near term? everyone wants to know what's going to be happen with deliveries we'll get the 2q sales 23,000, 24,0

adam jonas had a note out on ford according to phil lebeau. outlook may be need to be reset by 50% lower. not at all unprecedented to reassess the strategic priorities. >> holy kou. you know, a lot of people are upset that mark field got fire. one of the most important cost saving initiatives was nixed by the president. but wow that would be unbelievable. these auto companies it is peaking around the world. although i have to tell you some of the germany automakers are doing quite well. >> yeah. volkswagen is going to nut a lot of -- is going to put in a lot of charging stations. >> we didn't talk about that. >> a lot of them in europe. >> they have to put it -- 70 billion euros to recapitalize that. >> that's right. >> that's seen as a positive in -- >> that's a fantastic move by them. very well run. the international markets are far more excited than our markets in terms of what i see. >> stats out today on euro's gdp per head has outpaced the u.s. for years. what happened to the talk about the sclerotic socialist europe? >> spain has nice g

phil lebeau joins us now from chicago. phil? >> this is going to hurt car sales.king at an industry slowing down overall for a creator of factors. data from the first quarter, show you from experian, a definite slowdown in the number of loans written for those with the poorest credit records. talking about subprime and deep subprime. could it be lenders are hearing the message they were getting too aggressive in terms of writing loans in the past? here's what experian has to say -- >> i think it certainly caught the attention of the industry. especially those that relied upon markets for funding. so certainly if those losses were increasing, it did signal an alert to other lenders. so it definitely could have had an impact. >> and this is not the first time we've heard from dealers about tighter credit standards that certainly are filtering into the showroom. in terms of what people pay for auto loans, new vehicle, average, $509. used vehicle, $363. guys, that's the biggest gap we've ever seen from experian between new monthly payments and used monthly payment. fi

. >> you bet >> phil lebeau 15 minutes to go, a little more than that, 65 points down today after recordiday s&p 500 down 7 nasdaq down 51 now and russell down five. >> snapchat parent, snap, facing downgrades and questions about revenue growth up next, looking at th sesboid of snap with a bull and a bear >>> welcome back watching markets, day of decliedeclin declines here, but watch the lows from friday, we are at 2425 for the s&p, and 21159 for the dow, and up above 21200 there. perhaps some relief to people in the short term, but, again, declines a quarter percent for the dow and s&p. the russell more than that down, and nasdaq >> above 2400, it's no change in the story, uptrends in tact. >> that was a bigger deal. >> see if it develops that way meanwhile, shares of snapchat higher today, but the social media company saw shares tumble 10% last week after a slew of downgrades they are reportedly working on spectacle glasses to include augmented reality features now the time to buy snap on the pullback let's bring in a bull and bear on snap. guys, thank you for being here shaun, give us

phil lebeau is here. didn't seem like this had a chance, did it? >> it didn't. little chance.ster groups, they were cautious about outright saying they were not going to vote for this, but made it clear they did not think this was the plan with merit. especially regarding the questions about how would you value the dividend stocks, one that tracks the dividend stocks, considered dead, how would it be considered, and at the end of the day, this just really had no traction. >> you know, do you think it's going to leave any kind of legacy, the fact that einhorn suggests this in terms of, you know, ford got rid of the chief executive, people looking for ways to help ailing share prices. it's so novel it's hard to imagine it would. >> i don't know if it has an immediate impact, in other words, do i think there's going to be another proposal any time soon? no. i was talking with brian johnson pr barclays here not too long ago appointmenting out people floated out the idea of a tracking stock for general motors, the growth potential part of it. i don't know if that's going to ever ge

phil lebeau has a look at the paris air show. >> reporter: there's now renewed interest in supersonicng. this is from boom technology, a colorado-based company it's raised $33 million and is working on a prototype that it will start testing perhaps sometime next year the ceo believes momentum is building for a return of supersonic air travel. >> this is not something that's science fiction or decades off something that will happen fairly quickly >> the flight that takes 11 today shrinks to less than five and a half. >> reporter: boom is developing a supersonic jets 15 years after the cone cord stopped flying it was in existence from 1969 to 2003 and while it got a lot of attention as being the elsewhere sign of being in the jet set the fact of the matter is it was never profitable still, different airplane-makers at building hypersonic planes. boeing says it's investigating building a hypersonic gest that could fly anywhere in the world within two hours. >> we'll get the business case to close so that really adds value for customers so the marketplace can expand and i think in the nex