trade g photocopies this to be a record travel season and it comes despite the 737 max plane and phil lebeau chicago and good to see yous always, phil. how many people are we talking about here? an estimated $257 million and that's between june 1st and the end of august and basically you're looking at between memorial day and labor day. it's going to be 4% more crowded overall in compared to last year and the good news is that the airlines are adding more flights specially on the busiest routes, so it's not like we're all going to be squeezed into smaller spaces and elbow to elbow like it's christmas time, but it will beit a little more crowded. >> but airfares are low compared to what they have been recently. why is>>hat? well, you've got more competition, specially on the low end from spirit and the low-cost carriers, they continue to expand and as they put pressure on the establishedary lines to come up with basic fare, you see more poem that maybe they're united and from hilton head, south carolina to minneolis and they get a bake fare. that's what we're seeing more of pressuring fares u

phil lebeau also has us covered as well from new orleans. >> the big addition at new orleans airportalmost done, a billion dollar terminalith pa gates and plenty of restaurants and sce to handle the city's surging air traffic. since 2009, the number of people flying out of new orleans has jumped more than 50%, with 6 million travellers in 2016? as the market continues to grow we're in a better position to ndle the growth and its market and also we've done this in a way that keeps the costs to airlines on the low side. >> new orleans airport,ike others in the u.s., is bursting at the seams. airlines have added more flights to feed america's appetite for travel, increasingly, tarmacs crowded and airports are struggling to keep up with booming business. >> in n terms of airpos in america, we haven't seen one built in decades and you go to a chin they're doing is building rail and airports. these are economic engines for the economy of these countries and we are way, way far behind. >> some airports like new york's laguardia and salt lake city are building all-new terminals while dallas

phil lebeau takes a look.sler's head are the kwaers outside detroit there is a growing sense the automaker will soon be part oh a m larger company. fca, the parenanof several ds including jeev merge with renault out of plants creating the world's third largest automaker selling 8.1 mil 8.1 million vehicles second to toyota. the deal is the right move, adding in group renault, we found a like-minded partner who sees the future as we do. that means slashing costs and streamlining operation, potentially saving the combined automaker nearly $6wh million e promising not to cut a single job. >> when the renault sd think about this, quote, friendly offer and they call it a friendly offer, and also don't forget, renault is feeling a little jilted by nissan right now. >> remember, renault and nissan have been parers since decades whenut atrities arrested carlos ghosn it exposed a growing rift between the automakers and it created the opening for fiat chrysler chairman john elkin to approach renault about aha merger tt

there have been hearings on capitol hill where regulators have testified and phil lebeau reports andmullenbergs on the hot seat from investors to invtigators many are scrutinizing how mullenberg's company developed the737 max and how did that lead to three crashes that killed 346 people? while those rung the faa and nba have been questioned about the maxmullenbergas not been asked to tough which surprises some. >> are tdy interesn total transparency and do they want to hear from the top people and i think there sea a little bit of door the moment about why the ceo has not testified and why hearings hav't been held. istorically, congress moves quickly to question ceos in the midst of a controversy and toyota ceo fw in fro japan to testify about the safety of toyota models suspected of in nded acceleration. four years later,, ceo mary barra found herself in d.c. explaining why the company sold millions of vehicles with faulty ignition switches. >> what mary barra did was she didn't pinpoint what the problem was. she said here's what we know and here's what we don't know and here's the

phil lebeau, "nightly business report," chicago. >>> kraft hindz will restate more than two years of earnings results. that's when we begin tonight's market focus. and internal investigation revealed employees fabricatedsa trions that increase the cost of products sold. the company said it will restate results as far back as 2016. warren buffett who is berkshire hath sway kraft heinz largestar older says the company has the confidence. the shares were up a fraction today to $32.77. baush health reported better than expected earngs and raised the full year outlook. the drug maker recently had its dermatology business receive an fda approval for the lotio to treat psoriasis, a chronic skin condition becaused by an overactive immune system.pa the c did miss on revenue. investors didn't seem bothered by. dthat the shares jumore than 8% to $25.48. tyson foods posted better than expected results but warned african swine fever coulde impat industry on a level never seen before. tyson also voluntarilily recalled nearly 12 million pounds of their frozen ready to overconcerns rips that they mi

phil lebeau had it all this morning.s question keeps oncoming up, would you ever fly on any of these? people say they would not fly in this boeing is -- it is going to weigh on the dow definitely. >> we are seeing futures negative this morning. close to the lows of the session, we'll get cramer's "mad dash" and count down to the opening bell in a moment as we are coming off a bit of a bounce yesterday, japan reopens with its first day up since april 25th, they did have a week off more "squawk on the street" from the nyc straight get it. get it. get it! get it! crowd chanting: get it! get it! get it! (crowd groaning) (crowd cheering) narrator: give your town a reason to celebrate because every goodwill item you bring home, brings job training and more to your community. goodwill. bring good home. oh, sir. that was my grandma's. don't worry, ma'am. all of your stuff is in ok hands. just ok? they don't give two and a half stars to just anybody. here you go. what's this? it's your piano. hold this for a sec. we don't have a

phil lebeau has the ceo of you nighted oscar munoz. good morning, phil >> good morning.are here in the new terminal, terminal b, at laguardia. we'll talk about that in a bit oscar munoz, ceo of united before we talk about the changes here, have to ask you about the 737 max. dennis muilenburg talking last night and this morning talking about bringing the makts bax bak when do you think we will see it flying again >> i think the expectation is that we will do it in a safe manner, that all of the external folks, regulators, investigators agree that it is the right time to bring it back and i think that is really the focus what i heard from dennis, that safety is first. >> august, maybe even as early as july or should we even push it back to september from an operational perspective, we're prepared to do it at any point. the critical point is when we have any of those conversations is that this aircraft returns to flight safely and that the public agrees as well. >> and i hate to a date on this, but are you looking at august? >> from an operational perspective, we pushed to

phil lebeau joins us on the phone with the details phil, what can you tell us >> take a look at shares of boeing moving higher after the company just announced that it has completed development of the updated software for the 737 max. that includes simulator testing and the engineering flight test -- or test flights that have been done that brings up the question what remains to be done before the max could be recertified they still need to do the final recertification test flight. that's likely to happen sometime in the next couple weeks and then after that they formally file for certification, or recertification, not only with the faa but also regulators around the world just a quick point here. they have done more than 207 flights, or actually 207 flights totaling 360 hours with the new updated mcas software. the company says it is now working with regulators answering their questions giving them more details as they continue to work on any questions the regulators have. but again, they have updated this software. it has been completed. now the question becomes does it meet the appr

phil lebeau joins us with more on this developing story phil >> melissa, it seems like as a story every couple days about something that boeing may have known or did know and then didn't tell either regulators or regulators this has to do with angle of attack indicators and a disagree alert that was inoperable in some 737 max's not all planes had an indicator alert. and boeing did not disclose this to the faa that this was inoperable was not working due to a software problem until after the air crash. then after they told the faa they also told some airlines like southwest late last year. they didn't tell other airlines like united until a couple months later the faa says this issue in terms of notifying airlines while it may not have played a role in the crashes for lion air, they're out with a statement saying the timely or earlier communication with operators would have helped to reduce or eliminate possible confusion we should point out that as you look at this issue and this question of what boeing knew and when they knew it, the company was out with a statement saying the senior m

phil lebeau on tesla phil didn't mention but, of course, the autonomous event when elon musk promised fleet of autonomous taxis that would take to the streets. and that also didn't bring the stock higher. >> you were off last week when we mentioned a tv gain called no whammies, remember that show >> i was here. thank you for remembering my presence. >> sorry about that. >> anyway -- >> press your luck and tim started pressing his luck. you know it's good for tim, he's been spot on i will say 180 is the low. that's where it's headed to. again, it feels as though it's overdone on the down side. probably has more room. >> how far are you pressing? >> i will tell you what, if you want to think about market dynamics you have a lot of margin calls in here, broken all support, lost all institutional support what might be traditional oversold conditions, i don't think so i would just get back to what you said on deliveries let's be clear on a couple of things, they pulled forward two years of back doing demand on the model 3 and pulled demand because of tax credits at the end of the year. dem

>> yes. >> phil lebeau, thank you much. anna and fill, staphil, stay wr you are. >>> weather starting to fire up this morning. high alert, again. >>> iran responding to president trump's new tweet escalating his threats. what tehran is saying about a possible military conflict. we are just getting started on a monday morning live from washington. ♪ ♪ ♪ ♪ applebee's new loaded fajitas. now that's eatin' good in the neighborhood. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands? here'sshow me making it. like. oh! i got one. the best of amy poehler. amy, maybe we could use the voice remote to search for something that you're not in. show me parks and rec. from netflix to prime video to live tv, xfinity lets you find your favorites with the emmy award-winning x1 v

a wild month for tesla and ending the day negative after a slew of bearish calls and our phil lebeauhicago with more >> there are three things that if you look at what's happened with tesla over the last couple of weeks, all of these are kind of mixed together to weigh on tesla shares first off with analysts raising doubts and adam jonas from morgan stanley i know the $10 worst-case scenario got a lot of attention and he brought up a number of concerns especially with regard to sales possibilities or lack of possibilities in china and that also plays into the second issue here which is the people questioning the sales momentum especially for the model three and finally, have you noticed that elon musk has been silent he's still on twitter and sure, you can still hear from him occasionally and certainly not before the sec settlement and that's why when you take a look at shares of tesla in particular over the last month it's down 25% and all of this factors into a time when people are increasingly saying what's going on with tesla and why is this stock under pressure speaking of elon

phil lebeau joins us from chicago with more. >> morgan, the lordstown ohio plant with general motorsically idled, starting in march, and said look we're not going to be building any more small cars, that's where the chevy cruz was built, donald trump has been hammering general motors for weeks that something needs to change, they need to bring that plant back. he has just sent out a tweet and in that tweet, two tweets, we should point out great news for ohio just spoke to mary barra, ceo of general motors who informed me subject to a uaw agreement, et cetera, gm will be selling their beautiful lordstown plant to workhorse where they plan to build electric trucks. gm will also be spending $700 million in ohio and then he goes on to tweet again, in three separate locations creating 450 jobs i have been working nicely with gm to get this done. thank you to mary b. your great governor and senator rob portman. with all the car companies coming back and much more the u.s. is booming. general motors is getting a little bounce off of this news the share is moving higher clearly this is one o

phil lebeau and charlie grant. >>> here's what's still ahead on "the exchange". >> coming up, while allhe focus has been on china, tensions are starting to flare-up in iran we'll look at what's at stake as president oba pompeo makes his way to the hill to explain our strategy. >>> plus the state of social media, online publishing and silicon valley twitter's cofounder joins us live. >>> and as the first hurricane of the season is named, we're looking at ways to build hurricane resistant homes, and it's cheaper than you think. is"the exchange" on cnbc allowed me to go to work full time, run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. we at southern new hampshire university are the ones who succeed. we are the ones who break through. here'sshow me making it. like. oh! i got one. the best of amy poehler. amy, maybe we could use the voice remote to search for something that you're not in. show me parks and rec. from netflix to prime video to live tv, xfinity lets you find your favorites with the emmy awa

. >> let me just jump away for just a moment from this conversation to phil lebeau with a news alert from chicago. are we talking boeing? >> we are. and take a look at shares of boeing just within the last half hour, bloomberg reporting that the s.e.c. is looking into boeing's disclosures surrounding the 737 max. now, we're not seeing a huge dropoff in shares of boeing, and perhaps that's because boeing has made it clear that it is in the process of cooperating with any investigations that might be going on and we know the d.o.j. is already looking into them we know there are a couple of congressional investigations looking into the 737, so again, if you look at this s.e.c. headline and we've reached out to boeing, and it has no comment regarding this report that there's a probe by the s.e.c., but tif you take a look at this the question becomes, is there going to be something here or is this more of the s.e.c. saying, okay, let's take a look about whether or not there was any material information that should have been disclosed sooner with regard to mcas and the 737 as the plane was

phil lebeau explains whync convenie is making travelers happier. >> there are more flight,ore travelersore congestion than ever before when it comes to taking a flight. there's also more satisfaction wi the experience. fact, when j.d. power asked almost 6,000 travellers to rate airline svice they gave t industry a score of 773 on a 1,000-point scale, the highest score ever. travelers say new technology used by airlines like apps to check in for a flight make flying easier and more enjoyable. by comparison, services offered like wi-fi and entertainment systems are falling short of expectations and unlike the samn survey previous years, the biggest improvement andti sation is with legacy, full-service airlines, toppinge list? american airlines. overall they're happier with low-cost carriers. they say southwest and jblue do the best job. all of this comes as the number of people flying continues to climb hitting almost a billion travelers this year and many deciding to become a trip because airfares remn relatively low. >> the average domestic round-trip ticket is under $240. according to

our phil lebeau is there and has a special guest. phil, take it away >> thank you, david.dan elwell you just talked with global regulators last night when we had a briefing with you, you indicated there is no time frame for when the max might be recertified and flying again and you have airlines who believe they're going to are this plane back in their fleet by august. should they ship their plans, should airlines be thinking the max won't be flying until october, end of the year, well into next year >> phil, thank you for having me on no they don't need to make any changes to their plans they just need to know that there isn't a timetable for bringing this 737 max back to flight there is only one criteria, when we're done with our analysis and it is safe to let the 737 max fly. >> you don't have a projection in terms of i think it is two months, three months, six months out? >> it could be a month, two months it could be any of what you just said, but it all determines, it is all determined by what we find in our analysis of the application. we're pretty confident that th

i'm phil lebeau, that isg com up on "nightly business report." >> china's coffee start-up in lus expectedart trading on the nasdaq tomorrow. this company's looking to raise s profile here in the u.s. just as rival starbucks is planning to expand in china. kate rogers looks at this brewing rivalry. >>. >> china's coffee culture is headed to the u.s. when it starts trading on the nasdaq. the upstart is not yet two years old, but its growth has mushroomed. >> the start-up has 2500 by year's end which would overtake starbucks as a dominant presee in china. analysts say starbucks which has referred to china as its second home market has an advantage given its two decades of operations in the hiuntry. >> i it has an advantage with starbucks building its brand on experience in the reon and particularly with the upscale roastery and other upale, modernocations. i think it does give them a leg up. >> while starbucks mak money, luckin iswi moving as much cash as it takes in. even as coffee consumption in china grows. ckin's strategy is to offer deep discount, delivery and cash-flee stores and whi t

phil lebeau joins use excuse me.ausche joins us with more >> it hasn't been made official just yet but the white house faces a deadline on saturday to figure out its next steps on these auto tariffs i've learned from four sources that the plan as of right now is for the white house to exercise a delay that could be up to six months as it continues negotiate with all the countries that export cars to the u.s the u.s. is trying to negotiate trade deals with europe, canada, mexico and japan and all of these countries send a lot of cars to the united states and have been pushing for these tariffs to not go into effect so this was certainly welcome news to them as well as republicans here on capitol hill who have also suggested that auto tariffs would be detrimental to the economy we'll see if we get an announcement on that in the coming days or whether the president decides to change his mind >> thank you and sorry about that autos/phil >>> let's dig into what this will mean with jamie albertine at mile one. jamie, what

deirdre bosa has the details on huawei phil lebeau watching boeing. courtney reagan has the big retail earnings movers deirdre, let's start with you. >> the commerce department softening its stance a little bit and saying it will grant some temporary exemptions to its export ban against huawei. sour seeing some of the chip makers rebound today still far from make up losses since this export ban was announced last week. for a few reasons. one, this is only temporary. it is unlikely that chip makers can shift their business enough within just 90 days. so to reduce their reliance on china. it has taken years for emthis many cases to build up these businesses two, there could be long-term ramifications. there's a chance that u.s. officials can completely roll back this ban as a bargaining chip in trade talks and as it did for zte last year. however, huawei has already been looking to reduce its reliance on u.s. suppliers and this export ban just makes that path all the more urgent for the chinese company. whether huawei can reduce that dependence is up fo

phil lebeau with all the details. rter:sara there, were a flurry of headlines, especially late in the weekend-b this deal possibly coming together and how quickly it came together let me bring you up to speed on where things stand right now renault's board is considering this merger. by the way, this merger would create the world's third largest automaker with sales last year that would have topped 8 million vehicles so you're looking at a huge possible automaker coming together two stats i want to point out from the proposed merger fiat chrysler says that renault and them together, that merger would save $5.6 billion in synergies, things like cost efficiencies, eliminating platforms, commonality of engines. most analysts are looking at that saying i think that's highly overstate the other point that's getting a lot of attention, fiat chrysler says there will be no job cuts if this merger goes together and a lot of people are saying with so much capacity in europe how is that even possible? jefferies out with a note to

phil lebeau is here to comment on that. >> hey carl, this is an interesting story. to the question that's been swirling around these 737 max accidents about whether or not a bird strike may have caused the angle of attack indicator, remember there were two of those veins at the nose of the plane for a bird strike caused fully damage coming out of one of the indicators this story looks whether or not it is a possibility that's thrown out there by investigators. a week and a half ago, the ceo of ethiopian airlines was here in the u.s tom costello interviewed him and asked him this very question, here is what he said to say. >> no, absolutely not. there was no bird strike there was no evidence of any fallen objects >> we should correct ourselves, it was on friday that the interview happened, not a week and a half ago >> the ceo of the airline says there was no bird strike the bottom line is this, investigators and they look at the 737 max zeroing in from the fact of data from one attack and not two featuring the mcas software of the control data pushing the nose of the

you bet. >> phil lebeau time for etf spotlight looking today at the semis president trump's tariff threatck for the worst day since march. the grouping led lower by names like amd, micron, applied materials, amd on pace for the worst day in about a month keep in mind, this say stock that is more than doubled from a years soaring 140% big leader in terms of the market comeback over the last four months. >> when we come back, apple's tim cook commenting on buybacks. we'll talk to alpha one's dan niles about the markets here global trade his position in the semis. get a check on the major averages, dow down 253 teth see bk hetrt"ac afr is >>> stocks continue to sell off here, dow down 265 on the heels of the president's tweet threatening higher tariffs on china. he wrote for ten months china has been paying tariffs to the usa of 25% on $50 billion of high tech. 10% on $200 billion of other goods. these payments are partially responsible for our great economic results the 10% will go up to 25% on friday $325 billion of additional goods sent to u.s. by china remain untaxed but will be shortly

phil lebeau joins with us more on what this means to some of the names that are down about 5% today, pressure when you look at the value of the vehicles that we import from plants in mexico, it is an astonishing figure 124 billion total parts which doesn't get a lot after tension is one of the biggest components then you have cars, suvs and pickup trucks and then add in the heavy duty and the medium duty trucks. it is $124 billion among the automakers, this is the reason why we have seen a steady increase in auto production in mexico, going back over to last 15 years, now totalling over 4 million vehicles annually. general motors, the number one vehicle importer from mexico, look at silverado, look at the sierra pickup truck, these are the vehicles that are coming in from mexico, from general motors nissan also has a huge presence down there, 45% of its north american production is in mexico i mentioned the parts suppliers, take a look at american axle it is under pressure as well 35% of its north american sales, they come from -- that should be -- that's incorrect there i wrote chin

albeit the less immediate implications as in the uk. >> mark your reactions, too. >> let's get to phil lebeau7 max update. phil >> here's what's going to be happening tomorrow at the faa office in fort worth when executives from the faa will be bringing their counterparts from aviation agencies around the world. there will be regulators from 57 different agencies representing 33 countries who will be here at this meeting there will be an update on where things stand in terms of a recertification of the 737 max the goal of the faa, that this meeting, along with the discussions that they've been having on a regular basis with these regulators around the world will get everybody on the same page and that there will be a lifting of the grounding of the 737 max when it happens around the world as you take a look at shares of boeing, keep in mind that we heard from china southern, china eastern and a number of other airlines that they are formally asking boeing for compensation because they do not have 737 max to fly or their deliveries are being delayed. guys, you can bet almost every single airli

phil lebeau has a preview of what to expect phil, a lot of people are going to be watching to see hiss been happening. >> absolutely, becky and the big focus for a lot of people will be what he says about the projection for when the 737 max potentially could be back in service because we've seen a couple of wire reports over the last day or two where airlines in asia are saying they've been given indications by boeing that the plane could be back in service as early as july so, for dennis muilenburg, when he speaks today, the big focus will be on boeing's path forward. he'll be speaking at the bernstein conference shortly after 8:00 a.m for the 737 max, remember, there are several key moments that are coming up within the next couple of weeks, several weeks? hard to know the exact time frame. you've got the faa certification play that may happen in the next week or two after that, boeing will likely file for recertification they've already been in conversations with the faa, so it's not like they're in the dark here. the faa knows, you know, what they're working on, and they know what

phil lebeau is in fort worth, texas with more. phil >> hey, wilf, this meeting's been going on since 9:00 this morning and basically it comes down to this the faa leadership discussing with their counterparts from around the world the status of the 727 max. that means what happens with the recertification process? when does boeing potentially file an application? when is the recertification fight? awful of those details are being discussed. there's no time frame for lifting the grounding of the max though foreign regulators have increasingly been saying you know what, once they submit their application for the software fix we want to check it out ourselves. that kind of scrutiny. guys, back to you. >> phil thanks very much for that boeing is trading down by 1.2% today. stephanie, you're a holder is it now more trading in line with china trade fears than perhaps the 737 max fears? >> actually on a relative basis it's outperforming today the markets, outprormg the industrials as well. i think it is really about the max really you ha

points below that let's drill down on what's driving today's action seema mody, courtney reagan, phil lebeau tracking the transports let's begin with the market. the bond moved that's worrying wall street. >> the long lead from an inversion to the actual recession, if, in fact, we're going to have one is one to three years. so it tells me i've got to look at later cycle events. it tells me i need to be worried about earnings >> no one is willing to say the bond mark set wrong. >> we look at the yield curve n don't ignore it. this is a later cycle economy but we don't treat it as a crystal ball >> the market is screaming right now to them, through the bond market not through the stock market through the bond market. that this is what they want to see. they want to see rate cuts, and if they don't, then this inversion is going to stick around for longer. >> yeah, according to dr. j, them is the fed. seema mody has been watching this all day >> the widely watched u.s. yield curve has generated an active discussion here on the trading floor. does it spell out deeper economic troubles, or is this

phil lebeau is watching that story. busy day >> it is a busy day. and there are increasingly questions about elon musk's stake in tesla as the stock continues to move lower. the reason we're asking this question is because when you look at the most recent report from tesla, filed within the last couple weeks, in terms of personal loans that have been extended to elon musk backed by his shares of tesla, it is almost $507 million. there are the three major loans from goldman, morgan stanley, bank of america in the most recent prospectus from tesla, they write about this in their risk disclosure saying mr. musk may be forced by one or more of the banking institutions to sell shares of tesla common stock under the terms of miss lohis l. any such sales could cause the price of the common stock to decline. we should point out we've reached out to find out has there been a margin call, has elon musk been asked to sell some of this stock because he's had to pay some of these loans because they were sold on margin we have not heard back from tesla. also as y

change later this year when tesla is expected to open a new auto plant in shanghai >> that was phil lebeaure following a major developing story this morning out of china president trump signing an executive order that effectively bans chinese telecom giant huawei from doing business in america. we're live in china and we're joined now >> reporter: thank you, i talked to huawei this morning and they told me over the phone, they gave a strong response saying any continued block of the company will leave the u.s. lagging behind in 5g development. they also said trump's executive order could pose some serious legal issues i've done a bit of work today on what kind of impact this could have firstly, the u.s. market is very small for huawei the americans account for 6.6% of the company's total revenue the bigger concern is about the supply chain huawei relies on over 30 u.s. suppliers for components for products ranging from smartphones all the way through to its networking equipment. should there be any disruption for that for huawei that could be a big issue and they count companies like intel

phil lebeau has been following the company for us for so many years.rt of panning up on you there. >> whoa! >> hey, there, now we're at equal -- oh, now i'm going up, you're going -- who knows what's happening here. >> let's get some elements on the air so we don't see me moving all over the place. let's talk a little bit about what we're seeing with regard to tesla. you mentioned that the stock did bounce back a little bit yesterday. so much of the focus right now is on what's happening when it comes to the liquidity outlook for tesla, if you will the current cash decision after they did the latest capital raise, $4.5 billion. debt payments -- the really big ones really don't come through until 2021-2022, so you essentially have now through the end of 2020 where tesla has pretty decent financials with which to see how business shapes up, and that comes down to model 3 production remember yesterday there was the email that came out from elon musk to the people at tesla, saying, look, we're making good progress we're producing about 900 model 3s per wee

the world in terms of auto production that is not changing that's not changing any time soon >> phil lebeau, thank you. >> peter navarro joined us to discuss the president's decision to threaten tariffs on mexico saying investors in wall street should look at the move calmly take a listen. >> look at this calmly look at what we're trying to do. this is actually a brilliant move by the president to get mexico's attention, to get them to help us so far they've been standing by and they really have the power to help. the two institutions that had the power to help us is the mexican government and congress. >> with us now to break this down, former deputy assistant trade representative matt gold as well as global chief market strategist gentlemen, good morning to you both matt, i'll start with you. mexico, the u.s.'s second largest supplier of goods and imports. your reaction to the comments from peter navarro >> look, peter navarro wouldn't recognize a trade agreement if it fell out of the sky and landed on his head peter navarro does not begin to comprehend the consequences of what he's advis

joining me are the editor of the revs institute and our own phil lebeau it's not just today tesla has been sliding this thing is down 40% this year and almost half since last august why are investors no longer giving the stock the benefit of the dow? >> i this i the simple questions are mounting a lot faster than the answers. if you look at today's news reports, you know, cash burn is a very big issue for this company. tesla just raised more than $2 billion in new capital, yet notice elon music is saying at the currents run rate, that can be consumed in ten months. not a lot of time so that's a big issue. then there is model 3 demand by the way, the continuing issue of manufacturing issues with the model 3, which really haven't been resolved, it's hard to say, how much is supply, how much is demand the engine firing reports out of china, san francisco, et cetera. then you know elon musk stretched a little too thin with all its projects the answer we seem to be getting is fought really a coherent plan as much as trust me i'm elon. >> right >> i think the market is getting suspicious >>

let's get to phil lebeau right now. taking a look at uber's impact on a bigger industry, which is the auto industry, one that phil knows oh, so well. phil. >> and, david, they're watching, the auto industry and the executives in the auto industry, they're watching uber and lyft but they have reached a point over the last couple of years where they think they have a better handle about the impact of ride-sharing on the automakers and it is no longer a sense of gloom and doom. oh, boy, nobody is ever going to buy a car or truck in the future that's not likely to happen. we may see auto sales cloe dosl a little bit because it is a cyclical industry and we're due for a pull back, but not a huge one. in terms of uber and the road to profitability, the key thing to focus on -- and you have talked about it all morning long -- when can they get autonomous vehicles in their network, and we are a long ways from that, guys not just with uber but with all of the tech and auto companies working on autonomous vehicles, we are a long,

seema mody watching the movers at the big board phil lebeau has a look at the fallout specifically in the auto sector kayla tausche has what comes next on the trade front. seema, though, let's start with you. >> hey, sara the market reaction really tells you how investors have been trying to position themselves. pulling back on mexico-related stocks, sectors, the etfs. even the peso as i know you've been following has been trading consistently lower across the board. and down 2.6% against the dollar outside of autos it's the rail stocks that have come under pressure the concern is that these tariffs will constrict or limit the flow of goods in and out of mexico and kansas city southern the big name to watch p. with direct revenue exposure to mexico shares are down nearly 5%. this flight to quality is also evident in today's market action as yields move own lower utilities, real estate, the only two sectors that are trading higher and even the japanese yen gold often seen as a safe haven getting back above $1300 highest level in seven weeks >> we'll check back with you on the floor thr

it's also important to note this is only preliminary data and our phil lebeau has told us, sometimeshese preliminary reports turn out not to be true. however, i did want to point out the stock is down in an otherwise big tape and it's only $5 above it's 52-week high doc, hi some options play in here. >> and this one has been a broken dream, at least on this particular leg it basically popped back up into the 260, 270 range, scott. should have taken off the rest of the spreads i did not. so right now i'm just going to ride it out here because it's not even worth taking the spread off anymore. >> it looks to be the fourth fatal incident involving autopilot, which is why we're bringing you the news in the first place and why, maybe, the stock is at the lows of the day, down a little more than 1% that's why we wanted to point it out for all of you in what is as we said a strong day >>> let's answer some of your questions. first up, we have a question for jenny and it's on dow. and it is -- i don't even have it in front of me. what do you think about dow? >> i'm so happy someone is asking

major airlines to cancel all flights with that jet through the summer faa daniel elwell spoke with phil lebeau about this earlier today. >> there isn't a timetable for bringing the 737 max back to flight there's only one criteria, when we're done with our analysis and it's safe to let the 737 maxfli. >> we are expecting the details of this meeting later on this evening, but with no end to a grounding in sight, what does this mean for boeing and the airlines generally, tim? >> look, i know early on in the post-script of this situation i was very clear, hey, boeing -- there's nothing, you know. i think we've seen this before, and i think you can actually own the stock. what i'd say that's different is i think this is happening in a very bad market dynamic. i actually believe that what's happening rid now with the faa is exactly what we saw with software fixes in 2013, for example. so i don't think it's any different, quite honestly, this does not show hopefully sensitivity and we dealt with the faa before it'sa i process >> boeing arguably, we don't look at the dow, but america does and it's the

. >> let's jump to phil lebeau with a news alert from washington >> in washington there is a hearingn capitol hill where the acting administrator for the faa is being asked about the certification about 737 max. one small piece of news that has come out, came out just a few minutes ago when administrator elwell said that the hope of the faa is that regulators around the world and not just the faa by itself will all lift their groundings of the 737 max once boeing has submitted its application for recertification to the plane and that's likely to happen sometime in the next couple of weeks. so, what's interesting here, scott, is whether or not that will happen because regulators around the world, they have made it very clear that they are moving to their own drum beat. it's not just what the faa believes is the best thing to do there's going to be a meeting with all of those regulators and the head of the faa next week and that's the beginning of the faa trying to get all of the regulators around the world to lift their groundings of the max. >> yeah, phil, thank you doc, you see some

a lot of focus coming to -- phil lebeau has been reporting on this, this idea he has hundreds of millionsnst his stock and that if that stock price falls to a certain level musk himself might be forced to sell how big of a risk is that to the stock and just to the company and the narrative here >> it's absolutely a risk. you have a company with obviously a very involved and large share holding founder who has financial instruments that could affect the stock i agree with henry, this is a stock that has fanatical religious following. what's happening now is a crisis of credibility there have been communications and tweets and things and people don't know what to believe in terms of the analyst and investor community i think in terms of the product and you know, people's love for the cars, that hasn't changed, so i think this company's probably going to be built to last and be around for a long time. >> what's your take, what stabilizes tesla here? >> i think just reassuring the market in terms of building their trust and credibility. here's the forecasting for the reports, i saw something

renault are teaming up shareholders are soaring on this news fiat chrysler shares up 5%, renault, 10% phil lebeau has more on this phil, good morning. >> negotiations picked up speed over the past couple of weeks and especially in the last week. that's when john elkin, the head of the ya nelly family, sha shareholder of fiat chrysler started talking quite a bit with the chairman of renault. officially it isfiat proposing this merger. but let's be clear the two sides are talking. this is not like they're saying, hay, do you want to get today? jean-dominique senard who's the chairman would be ceo. annual says, 8.7 million vehicles worldwide that would make them the third largest automaker in the world so in terms of investors, why does this deal make sense? why would you look at this and say, hey, why not put these two companies together you get $5.6 billion in cost savings. that's the estimate at least on paper from fiat chrysler there's little overlap yes, they're both in europe, but the areas where they're strongest and the product markets they play in in europe don't overlap as much as you woul

phil lebeau joins us with the details around more. lwell will be meeting with representatives from other aviation agencies around the world representing 33 countries. so what's going to happen at the meeting today, basically comes down to this -- they will essentially be laying out an update of where things stand on the 737 max and as they look at the 737 max and decide when this plane will be back in the air, elwell in a briefing with us yesterday said their goal is to get all of the global regulators on the same page, essentially they want them to lift the groundings of the 737 all at the same time. in fact, the question then became what's the time frame for when this might happen dan elwell told us we will follow a process that is robust, rigorous and we will leave no stone unturned if it takes a year to find everything we need to give us the confidence, so be it as you take a look at shares of boeing, keep in mind that we heard from yet another chinese airline overnight that it will formally ask boeing for compensation because the

. >>> let's get to phil lebeau >> starting this week they'll be announcing and letting employees knowthey're going to cut about 900 white collar jobs, salary jobs, 500 of those will be in the u.s. this is all part of eliminating about 20% of its management where salary work force by the end of august. that 7,000 jobs. most of that will happen in yurm europe >> phil, look inniing through ts employee e-mail. annual saving is about $600 million >> yes, most of that will be coming from the restructuring which is most severe over in europe that's a business that's desperately needs to be reworked and that's what they are in the process of doing they are reworking the business here in the u.s. now it is the actual going through and actually making the job cuts and restructuring taken place. >> this is remarkable news in the sense that this company continues to shrink and go for profitability. phil, it does not sound like they want to be in every car/country. it seems they want to make everything profitable and if it is not profitable, it is out >> that's a huge change how ford is operated g

source telling reuters expect the jets to approve to return to service as early as late june you saw phil lebeaue faa met with 30 global regulators. >> i think that's probably true. it seems like the stock is sort of has a lid on it verses the highs that we saw not that long ago just until you have clarity on that. it is honestly held up better than you may have expected given this way >> an upgrade for alibaba adding to the select list saying this company has under performed so much verses the s&p, they say it is just too cheap now. 13 times 20.21 ibita is cheaper. they say this is worth the look just because it has gotten so cheap. >> they're basically in the market they're selling off their alibaba as they said they would. it is something to keep in mind. >> alibaba is -- you bet it going from the overall china trade, it is too big in the indexes. >> longer term horizon >> it should have higher highs or lows of the overall index >> we are up 160 on the dow and up 17 on the s&p, let's get to seema modi >> trump on the current u.s. china trade negotiations were up 1606 points for the industrial

the best gain for the dow since april 12 >> i'm phil lebeau in chicago.y, may 6th, shares of boeing have been down as much as 8% the aerospace giant reported $13.8 billion in revenue from china last year. and expects even more down the road china's fleet is expected to more than double over the next 20 years, leaving 7600 airplanes valued at $1.2 trillion. the terennse trade talks do not come at a about time for boeing as the max crisis continues to weigh on the stock they wait to see when the 737 will fly again and whether or not thapove pral process will impact the development of future aircraft wake up! there's a lot that needs to get done today. small things. big things. too hard to do alone things. day after day, you need to get it all done. and here to listen and help you through it all is bank of america. with the expertise and know-how you need to reach that blissful state of done-ness. so let's get after it. ♪ everything is all right what would you like the power to do?® ♪ all right what would you like the power to do?® [kno♪king] ♪ memories. wha

>> phil lebeau has taught us this we did not have the same fleet as we have five years ago and we don'tes. nobody does. >> rare is real. of course you have an etf for it >> you do have supplies at recent highs you talk about the model neck and the premium which transports and get it out of there. you can do it by trains or trucks the pipe lylines were one big pipelines. they could not find enough the pipeline businesses is running into a wall here those companies can't raise rates. what used to be a place for the wealthy to park their money. disast disasterous. it has been a rough time for a while. >> terrible. >> we can't get this stuff >> no longer a memo. >> corporations. >> a disaster. >> i think it is really interesting now. we were shipping china to mexico the price of natural gas to ship, you are losing money when you bcf. it is the cheapest natural gas in the world people keep on talking about inflation. that's what it is of one of the most important part. that's another example it is not going up >> i mean there is nothing new today in terms of china/u.s. yesterday we got the r

philip lebeau in chicago phil >> in terms of sheer size, look at how big fiat chrysler would be along with renault. sei 8.7 million vehicles with vw and toyota in an email in the group, a like minded partner who sees the future as we do, what's it include lots of cost-cutting $5.6 billion over the next five years and combining vehicle platforms, streamlines engine families and here's one area where analysts question if this would work no job cuts at all, not in the u.s., nor in europe. another issue that people are going to be focusing on in wall street is whether or not this merger, as you look at shares of fiat chrysler or renault number one auto market in the world. what happens with that partnership from 1999? the nissan/renault, the chrysler merger offer to renault. a lot of moving pieces but as least we look at fiat chrysler shares, most investors and analysts say, we think this makes sense. >> question, phil, where does nissan fit in all of this, if at all? >> that's the great question wluk at t when you look at the merger offer, we say, we would love to be a part of that relat

. >> diana, thank you for that >>> let's look also at boeing's big week ahead phil lebeau is on thatk two huge meetings for boeing and more questions about when it will apply for recertification on the 737 max. you have the faa and regulators from around the world meeting in dallas that will be on thursday on that same day, the airlines that have the max or have ordered the max, they're going to be meeting with boeing in montreal and we're going to be watching to see if we hear details about when there might be a recertification play, when that will take place. as you look at shares of boeing, keep in mind the company is likely to reapply for recertification of the max some time this month. it's not guaranteed but that's the expectation that's out there. one last note, guys, ryan air reported earnings today, they don't fly the max yet but it's scheduled to have the max in its fleet. in fact, that was supposed to start earlier this year. they are saying look, even though we're not flying the max yet, because we have to change our plans, we're going to be asking for compensation from b

and phil lebeau joins us now with that story and maybe the answer phil >> i'm not sure the answer ise away and say, maybe i understand it now. but you look at these congressional hearings, and we've already had a couple that took place earlier in april, shortly after the 737 max was grounded the faa and ntsb are scheduled to testify next week and were also at the two hearings held in march, but so far, boeing ceo dennis muilenburg has not been questioned, which is a little surprising to former transportation secretary ray lahood >> are they truly interested in total transparency do they want to hear from the top people and i think there's a little bit of doubt for the moment here why the ceo has not testified and why hearings haven't been held >> it is a little bit surprising that we haven't heard from dennis muilenburg or boeing executives when you look at the history of other companies facing a crisis. look at oscar munoz in 2017. he was on capitol hill within a month of a passenger being dragged off a united airlines plane. go back to 2014, general motors ceo mary barra testified

phil lebeau joins us with the details on that. ne reason why, becky, is because adam jonas, the analyst at morgan stanley who put out this note this morning, he's widely followed and considered by most people to be the most rational of analysts who are out there. he's optimistic about certain aspects of tesla, but he's also calling a spade a spade in terms of when the company has missed the mark and as you look at shares of tesla, going back over the last three years -- you can see we're now trading at 2017-2016 levels. he says the worst-case scenario, in case things really get bad in terms of china demand, et cetera, this stock could be worth just $10 in his note, adam jonas writes "we believe as tesla's share price declines, the likelihood of the company potentially seeking alternatives from strategic-industrial-financial partners rises." he goes on to talk about a number of other situations that are impacting the company, including whether or not they've oversaturated the market when it comes to electric vehicles so, the challen

. >> just wait until zion shows up in new orleans phil, thanks philip lebeau. >>> from the flavors necessaryo make make meat taste real to cbd molecules, one company is using yeast to create the microb microbes we'll discuss that next. ♪ you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. >>> lab grown cbd, plant based meat and the perfume of an extinct flower cnbc disrupter 50 company. jason kelly, the ceo of ginkgo bioworks >> thanks for having me. >> first of all, because beyond meat so in th