phil lebeau reports tonight from outside of london. >> the global aviation market i soaring to new highs. airbus has announced quarters of at least 17 a-350 airplanes. boeing has booked $11.6 billion in orders for 68 planes. >>e're seeing a strong marketplace. predicting a$8.1 trillion market over the next several years. the world will need fewer airplanes in the next 20 years. >> why is business taking off? on the defense side. countries are increasing military budgets. especially as president trump calls on allies to pick up more of thef costs global military alliances. meanwhile, the comrprcial aine business keeps growing as the number of people flying is d increasingue to a strong global economy a relatively low air fairs. >> we're in a super cycle right now, we have to be honestde nd is up 7% again after an 8% growth in demand for air travel. you have to make hey when the sunshines. >> keeping up with that demands will not be easy. as plane manufacturersush each year, ge will have to expand production. that's n p ablem nor a large company like ge or rolls-royce. the challenge will b

tesla gears up to report earnings phil lebeau has more on the story. phil >> tesla earnings report next week gets plenty of attention, and, really, there's a primary question on the mind of investors, what will tesla say about potentially raising capital? in terms of the earnings themselves for the second quarter, they are expected to report a loss of $2.81 on revenue of $4 billion. by the way, the implied move in the options market is 7.5% either way three things will get attention on the conference call what do they say about raising capital? we know that elon musk said the company doesn't need to do it, but keep in mind, they have cash burn and liquidity concerns heading into the second quarter, and they did a lot of investing into the production expansion for the model 3 and speaking of the model 3, where do things stand in terms of both production as well as reservations there's plenty of skeptics out there when it comes to tesla, and there's one who is talking about that in his skepticism in the last couple days it is noted short seller steve eism

phil lebeau joins us now on the "squawk" news line to reflect on his life and career and what it meansor the company going forward. phil >> andrew, the statement was just released by john elkin, the chairman of fiat chrysler, a close friend of sergio marchionne, and someone who worked side by side with sergio over the last 15 years sergio marchionne first saved fiat, which was struggling mightily in 2004, then orchestrated the acquisition of chrysler out of a government supervised bankruptcy in 2009. truly turned fiat chrysler from a company with two struggling regional auto americas, taking those two, putting them together in a global automaker that has become wildly successful over the last nine years. was also the architect of the ipo of ferrari, a move people were skeptical of when it was proposed in 2004 and then in 2015 so this is a sad day for fiat chrysler one that they have not had much time to prepare for. it was just on saturday that the board of directors of fiat chrysler and ferrari both held emergency meetings where they made the decision to replace sergio marchionne as h

there are concerns that will continue as the industry's fight head winds in the months ahea phil lebeau has more. >> reporter: the future of autos ported and imported to the united states and how much they'll be taxed will be a focus for auto investors this summer and fall. others could follow if president trump pushes through higherff ta will tariffs drive up prices and hurt sales and speaking of sales. the biggest question for investors will be whether tesla can sustain a higherelivery rate for the model 3. will elan musk have to raise more capital for his thcompany. e big issue, jet fuel prices up 50% in the last year. could they go higher? that would push up costs. and prompt some carriers to cut flights in certain markets. nally, will demand remain strong? >> the robust economy and high consumer confidence have a lookingumber of people to fly this summer. will that continue this fall's th big question facing airlines and their investors in the second half of this year. phil lebeau, nightly business report, chicago. >>> as you plan your summer vacation, there's an emerging battle be

phil lebeau explains why from american airlines' operation center in rt worth, texas. ♪ ♪ >>> for allhand wringing by investors worried about airlines flying into lower profit, the feality is different. alaska airlines, southwest and american airlines a posted better than expected earnings in the second qrter. >> demand is strong and the supply of seats is up a lotr the consume seems really quite rong. >> the airline continues to see demand and thanks in large part to the strong economy and that means there are few empty seats even as the industry adds more flies. still, this haseen a turbulent year for airline stocks. why? investors worry the additional flights will make it tough for the indtry to raise fares which would limit revenue grow the, but the biggest concern is the risin cost of jet fuel, up more than 40% in the lastd year an while that has cut intoe airl profit, industry leaders are making adjustments in fuel contracts and are prepared to fly with higher prices. >> in the end, we don't know. we just try to be ass prepared we can for catastrophic increases and we certainly

phil lebeau has the details. >> the auto industry is hitting aough patch. the problem?rowing trade tensions are pushing up costs and that prompted general motors to lower how much it plans to earn this year. >> we have seen an escalation of he modity prices across spectrum of commodities inteuding sel and aluminum that has beenve dri by market forces. >> those forces are also weighing on ft chrysler which cut how much revenue it plans to generate in 2018. for today, one concern is the impact of tariffs in china. investors don't seem to that there's been no drop in demand for new cars and trucks.t insteay're focused on tariffs pushing up the total price of a vehicle hr much automakers pay for raw materials like steel and aluminum and while gm says it expects higher costs to continue the this year, analysts believe today's warning may be as bad as it gets. >> think this is a good me on their part to set a very high price to se the bar her and not hoping that things come dn as many people might expect by the end of the year that steel prices mofn a bit. that may give the u

trade wars and deal making all front and center at this year's farnborough international air show phil lebeau is there live with the first cnbc interview with the ceo of air lease corp. phil >> reporter: thank you very much let me bring in john pflueger, the ceo of air lease you have more than 300 aircraft being flown around the world we talk about this every year. >> yeah. >> there seems to be no slowdown in demand for quarters traditionally, it's a cyclical business you've always said we're due for a slowdown. >> i have said that for the last couple of years. the passenger growth continues unabated 6.8% rbk growth. as long as the passengers keep coming and that growth rate is still there, the demand for aircraft remains constant. although i've said it's going to taper off and i've expected it, still expect it, the truth of the matter is, the demand is there, people are coming to us for more aircraft. airlines need more aircraft. >> is there a cans that the trade tensions, we've heard this from some of the airline ceos. it starts to worry people. are you worried about that >> we're watching

phil lebeau. tesla and elon musk whether another dramatic week shareholders have solid reasons for loving the stock not only did musk manage to meet the production goal he set pretty much for model 3, there are still over 400,000 preorders for the model 3. finally while the stock has tumbled this week, it's still about 25% higher from year-to-date low back in april given all this, is musk not getting enough credit for the job he is doing at tesla tim, what do you make of the antics of the ceo? >> i think he would be getting a lot of credit if he wasn't making so much noise no question he's had tremendous credit i've been somewhat negative on the valuation of the stock -- i've been very negative on the israeli wags of the stock. i think the execution and technology risks have been mitigated somewhat as we get into the mass market, this is where it gets harder as they get into volume and become a real operator. this is where at least as worried about anything, a mass market valuation in the stock. n

phil lebeau joins us by phone. i understand the company just put out a statement. >> yes, brian. chrysler and really he has been working side by side with sergio marchionne for more than a decade, as sergio marchionne first saved fiat and then added chrysler to the company in 2009, he put out a statement saying that unfortunately sergio marchionne has passed away this was feared by everybody within the company once we started hearing that he was suffering from health issues late last week, and then you know the board of both fiat chrysler and ferrari made the decision on saturday during emergency board meetings to replace sergio marchionne. sad news comes on a day when fiat chrysler in a couple of hours will be reporting second quarter earnings and that will be the first time that we will hear from new ceo mike manley as he takes the reins at that company. no doubt a tough day in which to talk with analysts, talk with reporters. but we'll hear from mike manley in a couple of hours when fiat chrysler reports second quarter earnings >> yes it certainly is. we'll get to that in a mi

karl bauer and our own phil lebeau >>> coming off session lows on what is a shortened trading sessione for what would be the first four-day win streak since early june. let's bring in art cashin. what are you following today what sort of caught your attention? >> as you say, it is an abbreviated session and we're not having an awful lot of volume here. i do think that we'll go with the seasonal trading patterns the day before independence day as an upward bias, not as strong as it was yesterday. so we'll see if we can hold on to these gains they would like to put together several plus days in a row, giving it a good look i think the minds of many traders are not just past independence day, they're thinking into next week. while, you know, i expect there will be a crowd here of some size on thursday and friday, most people are beginning to contemplate what is going to happen next week, what is going to begin to motivate things. >> although we do get a jobs report on friday. >> jobs report on friday will be very big i'm hearing people talking about you may get a great spurt around the j

phil lebeau is getting ready to interview him live hey, phil. >> a pretty lackluster year to say the year for auto stocks, but plenty of investors interested in a potential ipo for aston martin what is behind that excitement that story when "worldwide exchange" continues. plaque psoriasis can be relentless. your plaques are always there at the worst times. constantly interrupting you with itching, burning and stinging. being this uncomfortable is unacceptable. i'm ready. tremfya® works differently for adults with moderate to severe plaque psoriasis. with tremfya®, you can get clearer and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks... stayed clearer through 48 weeks. tremfya® works better than humira® at providing clearer skin and more patients were symptom free with tremfya®. tremfya® may lower your ability to fight infections, and may increase your risk of infections. before treatment, your doctor should check you for infections and tuberculosis. tell your doctor if you have an infection or have symptoms such as fever, sweats, chills, muscle aches or co

phil lebeau joins us from the aston martin headquarters with more an interesting day that we kicked offresident trump moves across the capital and towards chequers he has taken aim at brexit and they've also had issues with brexit tell us about some of the conversations you're going to be having there >> the conversation we're going to have with andy palmer later today, it will touch on brexit and the question of trade tariff business between the eu and the united states. the u.s. is about one-fourth of the sales for aston martin we are at the end of the line for the db 11 here when you come to this plant, two things stand out one of them being their manufacturing facility is moving at a higher pace in addition to the handmade craftsmanship. aston martin coming off a hard year they had record revenue topping a billion dollars. the road ahead that investors are focused on seven new models over the next seven years expanding the proconduction footprint and the new facility in wales and the question of a potential ipo. on that topic so many people say, why go public look at the success fur

there are plenty of people purchasing new vehicles and the cost is on the side of the equation. >> phil lebeauume is not affected, in other words. it's not that they're not buying cars it's the cost. you wonder if the trade war got settled overnight. the auto trade has been an awful investment and this is a $17.50 stock. i'm sure it's clear to the people that watch the show i've been bullish on gm for the last couple of years and i think you get to a place as long as they continue to assert what they're doing on the top line, we're trying to get autonomous, and we want to be out there in that space and they're reaffirming a long-term commitment and operationally, their margins are fine and headwinds on trade and they took it down to 4 million and that's major and they're cheap. >> they lowered what they thought their future earnings would be down to $6. now that we've got that in front of us, the stock was off 3%, and maybe 4 1/2. >> absolutely, but i already own the stock and i think looking forward, where is the most profitable area, and that will continue for them. >> here they are in recor

phil lebeau night business report, chicago. >>> coming up, why a ekur-day workould be good for business. >>> could a four-day workweek be in your future? it new zealand firm tried out for two months. and it resulted in what they said was greater productivity, lower stress levels, improved life balance and higher engageme levels, a by working just one fewer day a week. is it in our futurnd will it make us more productive. mark, good to seeyou,hanks for joining us tonight. >> i was reading today, it was in 1940 the five-day workweek was manda in the united states, before then, six days -- >> this have gone pretty well since then. >> here we are 78 years later, are we efficient enough to move to a four-day workweek? >> companies are measuring the output of the workersather than the amount of time we put on the clock. we may see a lot more of this in the future. >> does it come down to what the employee wants in terk of w life balance?pe ing on what part of the country live in. it c a cost more for housi things like that. jobs.us on 100 k plus we see at the higher end of the workforce. what

phil lebeau joins us with details. this could be a big plant in terms of capacity.a fair number of people out saying haven't they announced these plans in the past well, this is different than what they said in the past they have said for some time that they will open a plant in china. and the reason is simple china is the number one for vehicles while tesla has been increasing sales, look at the level of increase here. it has not been a huge surge in sales. and we've been over to china we've seen some of the charging station there is about 14% of the sales last year were in china. the plans for building a factory in china are significant from this standpoint. it will be a place both for battery manufacturing as well as for final assembly of vehicles and most believe that it's the model 3 which is the mass market model that they're just starting to build herein the united states and deliver here in the u.s. as well as the model y which would be expected in the next two to three years and china is e the market to be in if you want to do better in electric vehicles. i

phil lebeau, hayden,en and. >>> the last blockbuster , standi there soon will be just one standing, in bend, oregon. two other stores in alask are set to closen sunday. the general manager credits the longevity t the store in oregon is their amazing loyal customers. >>> that doest for tonight. i'm sue herera. >> and i'm bill griffeth. have a good weekend. see you monday. >> this is "bbc world news" america." >> funding of this pation is made possible by the freeman foundation, kovler fouation, pursuing solutions for america's neglected needs, and purepoint financial. >> how do we shapeur tomorrow? it starts with a vision. we see its ideal form in our mind, and then we begin to chisel. we strip away everything that stands in the way reveal new possibilities.

phil lebeau in chicago for us.l of this, tesla shares are down in bear market territory down 17% from this recent high and it hasn't bounced off of that initial report even though the way phil put into context it would seem like in any other take it should have perhaps bounced back. >> yeah. i just wish and i like elon musk and i think all of us do we love his innovation and you kind of wish he'd get back to the business side of what he's doing and get away from the whole trolling thing, but it is who he is. he's a guy who is out there and he's willing to be out there the interesting thing for me and tesla is the stock price has been absolutely incredible it still remains incredible and it's holding on to a support level that steve was showing me over here. the derivatives market is the way to play tesla, because it is so volatile that i think owning the stork or being short the stock is an absolute incredible way to play this thing >> the price action, really, i would argue that it's been extraordinary, but i woul

. >> phil lebeau joins us with a look what's coming up next week. >> a big week, wilf, for the ought auto industry. on two fronts the white house will be looking at the prospect of tariffs first of all you've got the eu commission president in washington on wednesday meeting with president trump in addition to that you've got mexico's economic minister he's going to be in washington, d.c. early next week as discussions continue about modifications that might be made to nafta clear clearly huge implications for the auto industry. and also on wednesday you've got the big three. this doesn't happen very often, but this year it's happening they are all reporting quarterly earnings on the same day that's why we're going to take a look at shares of gm, ford, chrysler and the question is what do executives say about tariffs and the implications there changing everything up up on the fly is going to cost tens of millions of dollars. take a look at gentex. they've reported earnings today. the reason that we're showing you this chart is because the ceo said they're starting to make plans for p

thank you very much, phil lebeau.et's turn to washington where president trump is meeting with e.u. president to talk trade. >> earlier today we got a brief glimpse of the two leaders in the oval office where from juncker's side we heard a lot of talk about cooling of tensions. from president trump we heard talk of the need for resperocity, potential for a fair deal and potential win/win outcome for the u.s. and the eu. >> over the years the united states has been losing hundreds of billions of dollars with the european union. we just want it to be a level playing field for our farmers, manufacturers and everybody. we also want a big beneficiary to be the european union. >> reporter: following that brief meeting the president and the e.u. had an expanded bilateral meeting representing the u.s. according to the pool present in the room, steven mnuchin. we know for weeks administration officials have been pointing to this very day and this very meeting as a potential watershed moment in trade relations between the u.s.

phil lebeau, "nightly business report," chicago. > let's turn now to jeremy for more on the potential auto tariffs andhat it might mea for the auto industry and of course for you. he's an auto industry analyst at edmonds. good to see you, jeremy. welcome back. >> hello. thank you so much. >> we certainly don't know whether or actually going to go into place, but for the sake of argument, let's assume they do. what net/net do you think the bottom line impact would be for automakers? >> you know, in all iterations of this, we've ran a forecast d it does look like it's going to be a severe blow to automakers if these tariffs do come to pass. we're looking at sales potentially in the millions jus because of how much that cost is going to be deferred to shoppers. jeremy, i an old chess player. i'm always trying to think ahead to the next move. what's the next move in this whole situation here? i mean, obviously the objective is to g more production here to the unid states. if there's enough pain, do you think automakers would do that? >> you know, i thi that's one of those casesf this mayb

phil lebeau joining us from chicago. >>> mike has a way to bet against the stock for no cost at all.lease tell us, mike >> you know, many years ago they used to say you didn't want to buy a car built on a monday. i don't think to buy a car built in a tent. that's just me we're looking at trading a one by two put spread. it's one i really like in this name really the reason we're doing that, there's a couple reasons one is options premiums are really high. we were taking a look at where the at the money august straddle closed it was $60 buying the call on the put was expensive. the other thing is we have catalysts including production numbers which can propel the stock in one direction or another. a final thing which is a structural situation that has to do with the fact the stock has a short interest that short interest can actually create a possible level of downside support and that's important when you're going to put on a strategy like this. we can see essentially where the stock is the height is right above 380 and we had this swoon down here. i think a move to that magnitude to

phil lebeau, "nightly business report," ago. >> earnings fall at property insurer travelers as castropheclimb and that's where we begin tonight and the market focus and the d component grew revenues, and payouts due to an increase in tornado activity and res at commercial properties, they cut into profits. shares of travelers fell nearly 4% to $125.18. >> domino's reported weaker than expected sales growth in the u. and abroad even though customer spending grew.e profits c ahead of estimates thanks to a rise in royalty revenues and investors took a bite out of shares of i domino's sendi lower by more than 2to $276.75. >> a rise in deliveries helped railroad operator union pacific top expectations and the company's operating ratio disappointed as union pacific raised higher fuel costs and also had to p its workers overtime to repair a collapsed tunnels that causing shipment delays and shares were fractionally lore than 40 and 4l and fargo has reportedly been refunding millions of dollars to customers who received add-on products sh as legal services or insurance that they didn't fully und

. >>> when we come back, more cheese behind the wheel of ford's new muscle car phil lebeau live in thett. >> the roar is back with the assistance of my producer megan reater listen to this car it is the bullitt mustang and it is back. atto wn quk x" returns. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. the number-one-selling - dad's got all the answers. w n health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. >>> welcome back to "squawk" this morning ford unveiling its new mustang bullitt in the city that helped make the souped-up version in its glory days ford struggling to attract car buyers phil lebeau joins us from outside of san francisco this morning. >> there are assignments and then assignments like this one this is the new bullitt mustang which is going to be rolling into showrooms my produ

i prefer like a bright red >> phil, great stuff phil lebeau for us in california recently phil has beentariffs, to get to drive that must have been fun >>> up next we're checking in with our closing bell investment cl wubith names like facebook, netflix and twitter. of our new unlimited wireless plans. it comes with a ton of entertainment options. great, can you sign for this? yeah. hey, uh.. what's in that one? that's a shark. new and only with at&t, you can get unlimited data, 30+ channels of live tv, and your choice of things like hbo or pandora premium. more for your thing. that's our thing. visit att dot com. your but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. >>> welcome back to "the closing bell." here a look at the winners in the dow today. the do

phil lebeau has the in your opinions hey, phil. >> it's a strong june when you look at the numbers. let's show you the largest auto headachers and all were up for june chrysler up 8% toyota, 3.6% ford up 1.t2% these were at or above expectatio expectations the price was up in june for gm, for ford $35,500. part of that increases due to the fact people are buying bigger, more expensive vehicles. we continue to see trucks and suvs being pulling people into the showrooms and the vehicles they want now. for general motors t second quarter sales were up 4.6% look at what they did with the silverado. sales up 15.7% in the second quarter. again, truck, suvs, what people are wanting right now. one other auto stock we want to highlight real quick, take a look at shares of tesla. remember a kouchl days ago when it was at $360 a share as they said look, we hit the production target. for the model three. $316 as you see analysts on wall street, bringing up the question of the quality of the vehicles that were made tesla shares down more than 5.7% today. guys, back to you. >> earlier numbers rel

phil lebeau has the details.ing exactly to find out how the auto makers will deal with these increased costs? will they eat the higher costs what exactly will they do? no one is saying for sure. for vehicles being cept from the u.s. to china, it's now up to 4% vehicles from china to here are taxed at a 25% rate. so let's talk about the vehicles going into china, because that's a far greater number than what comes here to the u.s. let's start here off with the mercedes benz they have suvs built in alabama, more than 72,000 last year mercedes has not decided what it will do with those higher costs for those vehicles being sold in china. bmw, on the other hand, and very clear in saying for the models being shipped out of south carolina, there will be some impact in terms of the msrp in china. to what degree they haven't decided yet, but they will be passing some of that along to customers as will tesla. they've already sent a note out to customers ordering teslas in china they will be paying higher prices and finall

general motors is making a big play in the car sharing market phil lebeau joins us with the details. be able to sublet your car >> essentially, jon. gm has been doing car sharing through its maven subsidiary, but those were vehicles owned by general motors this is a case where if you own a car, a gm car, then you can rent it out to another person. peer to peer car rentals it is open now for gm owners and lessees. 2015 vehicles and newer. can't take an old gm model, has to be relatively new revenue split is like other rentals, 60% to the vehicle owner, 40% to the company, to maven. here is julia stein talking about how they came up with the revenue split of 60, 40. >> i believe it is market standard today we might revisit it later on, but we also provide 150,000 people who are willing to rent your vehicle, so we'll see how it goes. we are excited we're offering this we believe we'll see high growth of gm owners putting the car on the platform. >> how many are using car sharing in the united states it is about 1.5 to 2 million people who are active car share users in the u.s., a good c

automakers, meantime, sharply higher on president trump maybe changing his tune on tariffs against them phil lebeau with that. phil >> in terms of the world of auto s, auto tariffs is a big part of the story. when we talk about auto tariffs and the european automakers. the u.s., according to a report out of jrmny, has apparentgermay offered to go with 0% tariffs, a report out of germany. how would that change things in the eu right now, current tariffs are 10%. for vehicles we send there vehicles sent here are 2.5%. essentially, that would drop everything down to zero. we know that the european automakers have indicated that they would like to do this let's see if this is perhaps an indication of where the two sides are going. how many vehicles are we buying here in the united states? they come from europe about 6.7% of the 17 million vehicles sold last year came from european assembly lines so, that would be a huge change in terms of dropping those tariffs completely and the european automakers have indicated in the past they're open to this that's the reason you see shares of bmw, daimler, volksw

phil lebeau.oining our closing bell exchange to talk about the market action we have renee norris. steve grasso and rick santelli from the cme group in chicago. so steve, a little bit of strength in financials again. i think that is the third day in a row off the back of morgan stanley earnings. >> finally some strength in financial earnings. something else besides tech has to do some heavy lifting in order to keep the market moving forward. yesterday i think it was all about powell. this morning we saw the powell pop, as well. we saw the markets rally. yesterday you had netflix and powell making bullish or, i should say, dovish statements. >> it wasn't hawkish. >> it was definitely not hawkish. it was definitely not hawkish and it is understood to the market place as being dovish. that is what the market place needs instead of a robotic raise, raise, raise. they wanted to see a wait and see. rick talks about this a lot, the yield curve is at the top of everyone's mind. you have to compensate that

phil lebeau joins us with the latest on that >> wilf, he's not just stepping down remember, he's the ceo of ferrari as well. here are the developments with regard to sergio marchionne. a quick moving weekend in terms of the board taking actions to ensure that the leadership and the transition, especially as they head into earnings later this week is as smooth as possible there's no doubt that this was a crisis brought in within the last couple of days. sergio marchionne replacedas ceo. he will not return to work this is not a case where he's not feeling well and not there for a while. he's not coming back to work the reason, a rapid decline in his health following surgery three weeks ago. he had shoulder surgery. we don't have any details beyond that in terms of what's happened with his health. but the chairman of ex-or who holds large stakes in fiat, chrysler, cnh international. john he will kin who has been by his side the last 14 years as sergio put together fiat chrysler, he issued a statement saying he taught us to think differently and have the courage to change, often in uncon

. >>> famously driven in the hit film "bullet" ford is debuting a new edition of a classic phil lebeaulook at the brand new mustang. phil >> reporter: not just any mustang, morgan, it is the bullet mustang on a chilly morning here in san francisco, perfect time to show you this car just rolling into showrooms. when you look at this, we had a chance to drive it in the streets of san francisco the past couple of days. admittedly, we didn't hit the speeds he hit in the chase scene of "bullet" but it has plenty of get up and go. just under $47,000 with 480 horsepower for ford, getting a little momentum now is important, especially when you look at the muscle car war the mustang has done well, compared to the challenger and camaro this is a company as we know from last week's earnings are in the midst of going through restructuring, saying they need more extensive restructuring guys, they're hoping a little halo effect behind a vehicle like the bullet will rub off on the company. it is limited edition. there aren't huge sales. they believe this is the kind of vehicle that will make people s

i'm phil lebeau with breaking news on tesla. chief engineer dig field has left the auto maker.ield who has been with tesla almost five years with the chief engineer in may. he was still in that title but in may he stepped back as chief engineer as the company was struggling with the production of the model 3 well, now, he has decided to leave the company. a tesla spokesperson says tesla thanks doug field for his nearly five years of service at the auto maker again, chief engineer doug field has left tesla now to brian sullivan with the closing count down >> thanks very much. certainly a lot of pressure on these guys either way, let's talk about the u.s. markets today is interesting the first trading day of july is actually one of if not the best trading day of the year going back 50 years, according to the stock traders almanac. this morning, all of a sudden we open up down and throughout the day we're just kind of clawing, kicking, screaming economic back and indeed the dow closing higher no big gains, but a pretty big come back. american multinationals, american express, nike

we've got to get past the first game phil, as ever thank you very much phil lebeau for us in chicago.w for a cnbc news update. >> here's what's happening at this hour, everyone. democrats on the senate judiciary committee are blasting the nomination of brett kavanaugh to the supreme court they gathered outside the court to air their complaints. but joe mansion from red state west virginia says he's going in with an open mind. >> i know what i feel and my heart's ripe to give everybody the benefit of the doubt and look at it, do a deep dive, study it, sit down and go over the concerns you might have. >>> a federal judge in san francisco says evidence seems week that round up weedkiller cause cancer it allows hundreds of lawsuits against round up's maker to now move forward >>> family friends and colleagues remembering john mcnumara for a memorial service for the slain gazette reporter he was one of five employees shot and killed last month by a man investigators say held a grudge against the annapolis newspapers you are up-to-date that's the new update this hour. >> thank you very much

phil lebeau spoke to the head of an iconic british company about that phil, what did he say?: well, andy palmer is the ceo of aston martin he was with other business leaders from the uk who had dinner last night with president donald trump why was andy palmer at this dinner this was a meeting apparently of a number of business executives who have an amount of exposure to the u.s. and for aston martin, this is a company on a roll right now so his thoughts are perhaps one the president and his staff wanted to hear from in 2017 aston martin had its best sales in a decade, record revenue of $1.25 billion the target for this company, to double sales from 7,000 up to 14,000 keep in mind the u.s. is aston martin's second largest market in terms of sales, about 25% of their global sales go to the u.s. andy palmer has a unique perspective, being based here in europe, in terms of whether or not european business leaders perhaps have underestimated president trump. here's what he had to say. >> i think everybody has underestimated him to some extent during the election process, he wasn'

phil lebeau is monitoring that >> this is the first of two days of the hearing what we're seeing andring is what we expected 45 people from the auto industry, almost all of them are really saying don't do this, don't raise tariffs for imported autos or those exported being impacted they're voicing opposition their big concern, you'll see lower sales and job cuts to echo that point, center for automotive research put out a new study today saying new vehicle prices could go up as much as $6875. that would cause sales to drop as much as 2 million units, not being bought jobs for the industry as a whole could drop by 750,000. it is worth pointing out as you look at annual auto sales, we're on pace now for the fourth straight year of vehicle sales topping 17 million this is the best stretch, best four year stretch the industry has ever had here in the u.s as you look at shares of the big three, they all report earnings next week, and you can bet conference calls will include a lot of questions about how they're preparing for possible tariffs and what it might mean to the bottom line guys

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our phil lebeau following the money from chicago steve weiss making a big move today. phil, you first. >> you know, scott, let's start first off, it's the wording in the memo that's spooking investors today. it's not that tesla is pressuring a supplier because i can tell you from talking with people in the auto industry, this happens all the time. you have automakers and suppliers going back and forth on cash back et cetera this wall street report and you summarized it, but let's talk about it more. it's looking at a o that was sent from tesla to a supplier saying we're going to want cash back potentially going back to 2016 and it's social to working to new operations. tesla, we have reached tout tesla, it has no comment regarding this memo. so it brings up the question regarding tesla and profitability. that's the wording in the memo and whether or not this company can canachieve profitability a forecasted in the second half of this year. elon musk was asked about this report today on twitter. and his response, we're not going to get too caught up in the jargon of how

. ♪ >>> ford is out with its auto sales figure for june and phil lebeau has the got them. in chicago. phil >> david, not a bad month of june for ford. sales increasing 1.2%. that was a little bit better than the estimate from edmunds, which called for an increase of 0.8% it's the same story for a couple of months. it continued in june in terms of demand for crossovers and pickup trucks and really everybody staying away from cars cars down 14%. we'll see this from all the automakers, by the way suv sales up 8.9%. and truck sales up 3.2%. and perhaps the most important statistic out of these numbers and really all the automakers, what's happening with transaction prices what people are paying in dealerships, in the month of june for ford, it was up $540 year over year to an average of $35,500. guys, back to you. >> phil, remind me, who do we get monthlies from these days? we don't anymore from gm or that hasn't yet happened? >> that's correct. we get them from everybody except gm. gm will give us quarterly -- well, gm and tesla we'll get quarterly sales from gm probably in t

>>> sergio marchionne stepped down he was recovering from surgery phil lebeau is in chicago. first to you >> the statement you read came out saturday from the board of directors atrop fiat. we heard s & p that they're not changing ratings regarding chrysler with the replacement of sergio marchionne as ceo good news for the company there. sergio marchionne's departure is a huge loss for fiat chrysler that he is no longer running the company. suffered a rapid decline in health and will not, not be returning to the company who is running it now? mike manley, named ceo of fiat, will be overseeing the company's european operations since the head announced this morning he will be leaving the company. the gentleman in charge of europe was passed over for the top job, mr. manley now has it his challenges are significant implementing a five year growth plan he helped put together with sergio marchionne, expanding jeep sales remember, mike manley has been in charge of that brand, it had tremendous success that's key part of the growth. and then is there a sale or merger in the future s

the company is asking suppliers for a break on parts phil lebeau has the latest on this >> this was awas under pressure pretty much all day long there was a report from the wall street journal, that sparked the selloff. essentially, tesla had sent a buyout to some of its flairs key components for tesla you look at that report, people said, what's interesting is the wording that suggests tesla was linking those efforts to be profitable in the second half of this year. tesla responded by saying, we asked fewer than 10 suppliers for a reduction in total capex product spend that began in 2016 but are still not complete any changes with these suppliers would improve our future cashflows, but not impact our ability to achieve profit ability in the third quarter we're not going to talk about the stock here, we're going to talk about the tesla bonds, the reason we're showing you the tesla bonds is because that's what worries people, when you start talking about the ability to improve your profitability through these negotiations, that's what's spooked not only the tesla stock investors, but a

that's when we find out how the auto makers deal with it the costs. >> phil lebeau in china thank you impact the markets. as investors set sights on earnings will the earnings be able to keep the rally going or will trade wars dampen that rally? joining sus cnbc contributor ron and sand awe have lindsey ball the strategist and bob pisani joining from us the stock exchange earnings get under way next woke nobody is expecting results affected yet but it will be interesting to hear what forward guidance has to say in industries as they try to anticipate the impact right. >> absolutely guidance is always the most important things on earnings report because the numbers we get are in the past we care about the future so far, though what we have seen is that the numbers that have come out have been very, very good and guidance has actually been good we haven't seen anyone cut numbers because of expected tariffs. but we'll see how it changes as the next few weeks unfold. >> what are you expecting. >> well i think in the short and intermediate terms the markets fixated on good economic numbers

group got hit each harder today after american cut guidance and it saw its worst day in two years phil lebeau, cnbc royalty, making a special and rare onset appearance hi, phil. >> what a rough day if you were an american investor >> a rough few weeks >> that's for sure >> and we're going to get the first airline earnings tomorrow morning. we'll talk about that in a little bit here's the guidance from american and this is what spooked investors. they're still expecting positive revenue per available seat in the second quarter and just not as robust as before. they expect it to be in the range of positive 1% to 3% the previous guidance was up 1.5 to 3.5% and the problem here is that there is limited fare growth and when you combine that along with the fact that they're looking at fuel prices that are up at least 30% in the last year, this is easy to see why shares of american are under pressure especially today and it's been like this here for some time, same thing with delta, united, there's nobody who is escaping this at this point and we're speaking of delta, it reports q2 earnings tomorrow

phil lebeau has more >> reporter: with auto sales running close to a record high, and assembly plantsehicles at a healthy clip, the industry is worried president trump may follow through on threats to slap a 20% or 25% tariff on auto imports at a hearing in washington, industry leaders warned the administration not to do it. their concern, tariffs could drive up the cost of new vehicles by almost $6,900 according to a new study that could cause sales to drop by as much as 2 million vehicles and lead to 750,000 jobs being cut. right now just 56% of the models sold in the u.s. are built in the u.s., but the trump administration says that number should be higher and instituting tariffs could be one way to make that happen. >> so as the president has repeatedly said, the trade war idea is nothing new, what's new is our troops are coming to the ramparts >> the big concern among automaker, dealers and suppliers, higher tariffs will kill the best four-year run of auto sales the u.s. has ever seen. and this year, the u.s. is once again on pace to have auto sales top 17 million vehicles, a lof

marchionne is stepping down shares are falling but there are many questions let's try to get answers and phil lebeau the story. this is a big surprise. >> it's huge not only a surprise, brian but it also takes a company that is, to a certain extent, at a crossroads in terms of looking at eye future with a merger or partner. that's something sergio marchionne has been working on that's left up in the air to the new ceo. he was replaced by the fiat chrysler board on saturday he will not return to work the reason, a rapid decline in his health following surgery about three weeks ago. that statement from john he will kin who is the chairman of ex or which holds large stakes in chrysler ferrari he said it is with great sadness to i have to tell you that our ceo who recently underwent surgery unfortunately experienced kbli indicaticomplit worsened in recent hours what happened? the new ceo mike manley has run the jeep division and the ram division for several years we're going back and showing you fiat chrysler over the last week if you take a look at shares via chrysler since 2014, it's had a nice run un

. >> all right, good stuff phil lebeau, thank you >>> meanwhile, the president bashing the fcc in a tweetast night. the president calling the commission unfair and their decision which stalls the sinclair/tribune merger disgraceful. julia borstein is joining us with more. >> the commission raised serious concerns about the broadcast group's proposed attribute of tribune and started the project to legally challenge it saying it misled regulators president trump tweeted, so sad and unfair that the fcc wouldn't include the sinclair broadcast merger with tribune. this would have been a great and much needed conservative voice sinclair-tribune stocks are trading up higher both nearly at 3% this after both stocks plummeted early last week on the fcc's move to stall the deal now, this is an unusual commentary about a merger. and it comes amid concerns that sinclair with the attribution of tribune would be the nation's largest broadcaster bringing the conservative programming to 233 stations in 108 markets. now, pai's concerned that some of sinclair's proposals to comply with limits on media owne

phil lebeau in chicago could tesla's new deal with china be a game changer for tesla. tim? >> i don't think so. this deal was talked about in april when beijing dropped the foreign producer was set to actually be somewhat owned by the chinese. phil talked about the ev market is now almost 500,000, up 82%. china demands that all players have at least 10% of the fleet. >> the tariff goes away in 2021. >> do you think we'll be in this environment by then? it doesn't affect u.s. production tesla's issues are very much around the mass market production here and it's great news and it's nicely timed on the same tariff on tesla >> it's nicely timed on the new story and we spent the fort night worried about whether or not it would be -- and is it a stone? >> yeah. anyway, the last fort night we worried about how much production they'll have here in the u.s. that's what's driving the stock today, not how many cars are they going to build three years from now in this fictional plant that they've announced about 16 times. >> they don't know how to pay for it, you said. >> it's maj ar

as my friend phil lebeau pointed out, the choice are putting tariffs on american-made cars. that could be a major problem. if europe decides to hit us with higher auto tariffs, well, it would be a very big negative does it undo the positive of the labor report no no, it doesn't but if you combine the tariffs with rising oil costs you do get an unfortunate picture i've said many times trade is a tough issue. we may need to accept some short term pain if we're ever going to get our trading partners to play fair for the moment that short term pain does hurt the flattening yield curve will yield long term treasuries aren't much higher than short term it's all about the tariffs and the chaos it could produce so is our economy strong enough to keep on trucking even in the face of these negatives? we'll get insight on that as they start reporting next week judging from the fed minutes yesterday, i can't expect it to happen let's get to the game plan, why don't we on monday the chinese government releases consumer and producer prices i've got to tell you, their data, oh, boy, it's b

i think we're going to phil lebeau with breaking news in it's row space sector. >> as many people have time, it is finally done between boeing and the brazilian aircraft company embrayer by the way there's still some final details that need to be worked out but in principle they've got it looked cked in, n owning 80% of the venture. it's valued at $4.75 billion boeing will put in $3.8 billion, its stake in this company and the joint venture basically working on the regional airline component of what embraer brings to the table it will not include business jets or executive jets, and it does not include the military side of the business from embraer. that was a sticking point for a long time. that is separate from this joint venture between boeing and embraer, and again, the deal is finalized. they still need to work out a few final little points, guys, but in essence, this is the deal that people have been expecting for some time. we now have valuation on the company with boeing owning 80% of it valued at $4.75 billion. remember, this is all in response, not all but largely in response

phil lebeau is there and he joins us with a special guest. good morning again >> reporter: good morning. i'm joined by the ceo of qatar airways. let's begin first off the qatar executive jet. are you finding you have a number of your customers saying i need more than just a qatar service in an airline. i need it with an executive jet. >> it's very strange more and more people are not choosing to fly with qatar because of the standard we give them we already provide very high standards on our airline so we see a huge uptick. this is why we're buying so many of the corporate jets. >> reporter: it's been a very turbulent year for qatar airways. in terms of traffic, the relationship to those near qatar. >> forget about the relationships with the neighbors. let us talk about the more positive things. you can see our traffic is growing again, we are expanding. we continue to introduce more network. we have six aircraft here. one of them is, of course, our s subsidiary in italy. and we had buying more airplanes. things for us is still really positive

phil lebeau in chicago for us. let's get back to the broader markets now.ession lows the dow looking to open lower by 139 points s&p looking down 12.5. joining us is investment strategist at blackstone and chief investment strategist at nuveen glad to have you with us brian westbound i' brian, i'll kick it off to you how are you assessing the risks here going into the second half of the year? >> our mid-year outlook is still risk on. we think the fundamentals, the strong u.s. economic data, the strong earnings numbers that we think we're going to start to see in the next few weeks outweigh the risks from trade. certainly it feels like those trade risks, those trade protectionist risks are linking into psychological in a way we didn't anticipate a few months ago. >> why are you so confident the risks will be contained and offset by the fundamentals like earnings numbers when earnings numbers and earnings reports haven't done much for the market so far this year even though they had been strong >> where these two things meet for the second quarter is going to