>> phil lebeau. >> julia boorstin is in los angeles with a preview of what investors are hoping to hear from facebook today. hi, julia. >> hi, sue. wall street is optimism that facebook's revenue growth will accelerate and mobile is really in the spotlight. analysts are expecting mobile ad revenue to make a leap from last quarter in comprised 14% of ad revenue. reporting aroundings on 1.53 billion in revenue and watching user numbers and after the launch of gift this past quarter. investors are looking for guide guidance on nonadvertiser revenue. there will be listening on the earnings call for potential of the new graph search just introduced a couple weeks ago. facebook shares gained so dramatically since the last earnings report, we will have to see if the company can live up to the hype and expectations. sue? >> julia, thank you so much.

phil lebeau in chicago with the latest developments. phil? >> we are in the stage of the investigation where they are still gathering information before they make a determination of exactly what went wrong with the plane in japan as well as boston aircraft last week. here is the latest regarding the dream liner investigation. as you mentioned, investigators from the faa and ntsb are in japan. we will have more about that in a little bit. mean while, boeing engineers are working on a solution that would allow tlem to slow the faa, listen, we've got this problem under control. it is time to get the dreamliner back in the air. they are meet og an regular basis but there is no timeframe for when they might be able to get the air worthiness redirected. now with regard to the investigators in japan, visiting the ana plane, it's on the tarmac there. they spent today looking at the plane, looking at the battery, and what they are looking for right now are commonalities between this incident in japan and incident in boston. they are also going over da

many thanks phil lebeau. appreciate the update. >>> now we got growing violence in the african nation of mali. al qaeda linked islamist rebels have captured at least some american hostages. michelle caruso-cabrera will have an update on that story next. please stay with us. ♪ ♪ ♪ [ male announcer ] you don't have to be a golf pro to walk like one. ♪ when you walk 10,000 steps a day, it's the same as walking a professional golf course. humana. health and well-being partner of the pga tour. humana. i've got two tickets to paradise!l set? pack your bags, we'll leave tonight. uhh, it's next month, actually... eddie continues singing: to tickets to... paradiiiiiise! no four. remember? whoooa whooaa whooo! you know ronny, folks who save hundreds of dollars by switching to geico sure are happy. and how happy are they jimmy? happier than eddie money running a travel agency. get happy. get geico. fifteen minutes could save you fifteen percent or more. ♪ ♪ ♪ [ male announcer ] don't just reject convention

let's get the latest developments from phil lebeau. over to you, phil. >> reporter: we're in the phase of this story with the dreamliner where we're waiting for more information, particularly from the faa. here's what's going on right now. investigators for the faa are comparing the batteries from the two incidents, the one in boston and the one this week from japan. seeing what similarities might exist between the batteries that failed. meanwhile, boeing is working with the faa on a possible solution in terms of checking these batteries. it's too early to say that this will be enough to get the dreamliner back in the air, but that's the direction that boeing is working. by the way, the batteries are made by a japanese firm. since last monday, the previous monday the 7th, the sales are down 7% and boeing shares a bit of a comeback after being under pressure, this as a number of industry experts speculate that perhaps the faa might have moved a little too quickly in grounding the dreamliner. >> boeing has always been candid. they have n

phil lebeau is in chicago. phil? >> talking about the comment from ceo jim, and comment about the dreamliner. we will have his comments next on "power lunch." like northern trust by your side makes all the difference. we add precision to your portfolio construction by directly matching your assets and your risk preferences against your own unique life goals. we call it goals driven investing. after all, you don't climb a mountain just to sit at the top. you look around for other mountains to climb. ♪ expertise matters. find it at northern trust. ♪ [ male announcer ] some day, your life will flash before your eyes. make it worth watching. introducing the 2013 lexus ls. an entirely new pursuit. >>> in a declaration of reminiscent of douglas mcarthur, that's what boeing says while pledging a fourth quarter profit while topping fourth quarter estimates. trading higher an 7439. phil lebeau in chicago with the highlights. phil? >> that's when ceo started talking in the conference call. news about the 787 is the news wo

phil lebeau live in chicago. >> news might be good in terms of the earning but not forecast. earned $0.31, beat the street y $0.06. ford expected a greater than expected loss in europe. now projecting to lose $2 billion over in europe. here is the outlook from cfo bob shanks. >> the environment there continues to be very, very tough. we do think, perhaps, it's a trough in '12 and '13 but we'll have to wait and see. >> that's the bad news. the good news for ford continues to be in north america. look at the profits, $1.872 billion in the fourth quarter. that's almost a billion dollars more than the fourth quarter last year. profit margins above 10%. that's impressive especially in an auto industry where 7 and 8% in north america used to be considered good. what's driving north america, stronger pricing, stronger sales. the profit margins, however, this is one thing that concerns people, the profit margins are expected to stay level in 2013, not grow in north america. still over 10% is impressive for a company a few years ago had no profit margins. >> very good point. phil, tha

let's send it back to our phil lebeau in chicago. phil? >> reporter: first comment in chicago regarding yesterday's dreamliner accident. officials saying the source of the fire traced to the battery to start the auxiliary power unit that gives the plane power while parked on the ground. the company is saying nothing that they have seen in this case so far in the investigation indicates a relationship to any previous 787 power system events. all of the electrical power problems that we've been reporting w.finally the company says we'll give our technical teams the time they need to go and do a thorough job and ensure we're dealing with facts, not speculation, so the bottom line is this, guys. increasingly the focus is on the battery and the connection with the auction you willy power unit on the dreamliners as they continue investigating yesterday's fire. back to you. >> thank you so. last week's rally seems oh, so long ago. the market retreating for a second day in a row as wall street gets set to kick off earnings action tonight. let's ch

i'm phil lebeau. fourth quarter earnings coming in above estimates, boeing reporting a profit of a buck 22 a share. revenues coming in as expected at $22.3 billion. the interesting part of this earnings report, the forecast for 2013, on the commercial airplane business the company says it expects to deliver between 635 and 645 airplanes including at least 60 787 dreamliners in 2013 with the question whether or not it will have to change its production schedule, boeing says it assuming no significant impact fromheurrent f araa directive. in order, at this point they are not changing their production schedule, currently building five dream liners per month and planning to get to 10 by the end of this year and not changing the production schedule. they're basically stripping out pension costs volatile. when you look at core earnings, boeing is up 9% for the year and don't forget the conference call at 10:30. and the ceo and the first time we will hear from him and a sense of what's going on in terms of t

transportation reporter phil lebeau has been covering the developing story. phil, what can you tell us. >> reporter: bounceback day for boeing as we saw a number of analysts on wall street saying don't get too down on the dreamliner. ultimately it should be a successful airplane. look what we're looking at over the last month when you're talking about the dreamliner. documenting the problems we saw in december when it came to electrical issues causing a couple of the planes to either make an emergency landing or have some rough flights and then this week you had the fire on monday, a fuel leak in boston of another dreamliner and this morning a plane grounded due to another issue. a phone press conference with reporters defending the reliability of the 787 dreamliner. the takeoff schedule according to chief engineer, more than 92% of the time it's been scheduled to take off, it has taken off, and with regards to the lithium i.p. batteries people are worried about because it was the cause of the fire on monday, the chief engineer stands by the use of those batt

phil lebeau joins us with the latest on this. phil? >> and, bill, got two pieces of news, the first one being that the ntsb completed an update with reporters regarding the ntsb investigation. here's a couple of notes, first of all, they say the battery short circuited and caught on fire but an important point. they are still trying to determine exactly why these batteries caught on fire. the bottom line, this was so serious they had to ground these planes. >> this is an unprecedented event. we are very concerned. as i mentioned in the very beginning, we do not expect to see fire events on board aircrafts. this is a very serious air safety concern the faa has taken. very serious action. >> and regarding those lithium ion batteries, today we spoke with a former worker and whistleblower. this is a supplier to boeing with the 787 dreamliners. they make the charger for the lithium ion batteries. he said he warned his superiors that the batteries were not safe and said the company ignored his warning. just a few minutes ago he described wha

phil lebeau is+++j™n dreamliner. the review is likely to include a study of the design and electrical portions of the plane. we will bring you all that news at 9:00. it's 9:30. there it is. phil will join us from d.c. with more in the next half hour. we'll take a look at boeing shares. you can see it's been a rocky road this week, but the shares have climbed back after that dip middle of the week there. and the dreamliner was hit by two more mishaps in japan today. one suffered a cracked cockpit window and an oil leak. both flights were operated on nippon airways. >> i'm wondering about the maintenance on nippon. >> do you think it's that? >> i don't know what it is. it seems to me that -- i'll defer to the experts and people like phil. but just my inclination is to think -- they mentioned the windshield. there's five panes. it was the very outer one and it points out in the article -- and it article probably didn't want to point it out, they see it on all different aircraft makes over there, you get cracks and then

send it out to phil lebeau for details. phil? >> thank you, melissa, the numbers from general motors, increase of 4.9% versus the street estimate of an increase of 1.9%. so, above estimate. bring in curt mcneil, the vp of u.s. sales for general motors joining us from the gm headquarters. curt, better than expected december, seems not just for you guys but the industry as a whole. is it possible december will come in for the industry above 15.5 million and the best month of the year in terms of a sales pace? >> yeah happy new year, phil, we are feeling pretty good about what happened in december. we still think it's going nobody that 15-4 to 15-7 million unit range for the month. we feel very good where we finished up 5%. >> december always a strong month for the automakers what do you believe is bringing consumers back into the show room now. how much is enthusiasm for the economy slowly improving? how much of this is pent-up demand? what do you put your finger on in terms of what's driving the demand right now for auto sales? >>

phil lebeau at o'hare in chicago with the latest. hi, phil. >> hi, tyler. the focus is shifting about when boeing might find a solution to the dreamliner being grounded. here's the latest with what's happening with the faa and with boeing and some of the dream liners around the world. they're working with the faa on a possible solution. we say possible, the idea being perhaps to come up with a way of testing some of the lithium ion batteries. we'll have more on that in a little bit. more countries and regions of the world have grounded the 787. the focus is making the lithium iotter to be used inside these planes. the concern for the faa is that there's a fire possibility with the lithium ion batteries. that prompted them to grouped the dreamliners. they're checking those in boston with those from japan and comparing what similarities they might find with those two. by the way, the batteries are made by a japanese firm g. g.s. uwasa. as for shares of boeing, down fractionally today. down 5% since january 7th. for a number of analysts on wall street the ques

here's what he told phil lebeau in the last hour? >> 70% of the products in this country, various brands and models, refreshled or brand new, so we had to kind of take a deep breath at bankruptcy, generate cash, we have done that and reasonably quote/unquote old portfolio, we are going to come in to some good days. >> i want to get reaction this morning from steven rattner. steven, good morning. good to have you back. >> good morning. >> what do you make of this? fresh start for the company or not? >> dan laid out about the facts as they are. because of '08, they could not keep the product pipeline as filled as any of us would have liked. now the time has passed. they have refilled the pipeline as he said. the products are coming out. and what he didn't quite say and what the issue is are they going to sell? we find out over the next six months to a year whether the new trucks and cars really do -- really do become game changers for the company and this is a critical moment. not -- the company's not going to go bankrupt again. it is

plus, phil lebeau is live at the auto show. you lucky guy. what do you have coming up? >> reporter: wreb when the prius was a niche vehicle? they sold 238,000 last year. and they believe that is just the beginning. we will talk with the head of toyota north america when "power lunch" returns. ♪ [ male announcer ] how do you make 70,000 trades a second... ♪ reach one customer at a time? ♪ or help doctors turn billions of bytes of shared information... ♪ into a fifth anniversary of remission? ♪ whatever your business challenge, dell has the technology and services to help you solve it. executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and you...rent from national. because only national lets you choose any car in the aisle...and go. you can even take a full-size or above, and still pay the mid-size price. now this...will work. [ male announcer ] just like you, business pro. just like you. go national. go like a pro. just like you. we replaced people with a machine.r, what? customers didn't like it.

phil lebeau live in chicago. >> reporter: take you to boston. at the airport reports of responding to a fuel leak of a japan airlines flight that was scheduled to take off from boston to tokyo. as we take a look at shares of boeing, let's point out we have not confirmed this is a 787 dreamliner but that's the type of aircraft flying between boston and tokyo for japan airlines. again, this would be a fuel leak with an engine completely separate if it is a dreamliner from what happened yesterday. the reason we showed you shares of boeing over the last couple of days, this stock has been pummeled, down 4% over the last couple of days. in part because a lot of people have headline risk wondering if there's a more systemic issue with the dreamliner. howard labelle with jeffries, highly regarded there, put out a note. listen, this might be overdone. i'm understanding this is pictures of the japan airlines plane and it does appear to be a 787. as we understand it, it was preparing to take off for tokyo narita when there was a fuel leak for one of the e

phil lebeau, thanks so much, appreciate it. ty. >> goldman sachs downgraded the food sector to attractive. i find food attractive most of the time. saying most of them remain challenging. on the docket, jm smucker, with a name like that, you know it has to be downgraded. conagra, dole and general mills and heinz. soup, it's good for you. >> you're on a roll today. >> soup is good for you. >> it is, it's good food, right? >> right. >> because the widely watched report on the nation's crop production came in and it was bullish, jane wells is live in l.a. for us. hi, jany. . >> hey, sue. actually a mixed picture for corn and the usda says there is more corn than predicted and instead you would think this would bring prices down but it jumped up because a lot more corn will be eaten by cows and hogs and chickens. this is 721, that means 7.21 for corn. live stockers haven't called their herds as much as they are supposed to. that leaves the u.s. with low supplies of corn at the end of the year. that's a 17-year low only a three-week

phil lebeau in treat today. one food company on the move, let's get to kayla tausche who is manning the market flash desk. >> watching flowers foods. that's a southern food company, flo. about $4 billion in market cap, that stock up more than 6% hitting an all-time high on its first trading day after signing an agreement to acquire the majority of the bread businesses from hostess brands. that includes wonder bread. of course we're still waiting for some of the other bidders for some of the other units to be announced. right now flowers is the bid to beat and if no one else comes in higher it will walk away with the majority of those breads. >> all right, thank you very much, kayla. >>> when we come back, goldman's private wealth management cio here to explain why the u.s. economy still has a solid advantage over the rest of the world. but first, reck santelli is working on something for a little bit later on. and it's a good one. right, rick? >> absolutely. in about 10, 12 minutes we're going to be talking to g

phil lebeau out of chicago for us. phil, thanks very much. >> continuing story. despite all the problems with the dreamline were boeing still managed to take the title of biggest airplanemaker for 2012. this is after rival airbus posted a 43% decline in orders. but the stock is up. stephane has the details for us in europe. >> better than the forecast of airbus, indeed, the company was planning 650 gross orders to the last year and indeed it had 853 net orders. but still, it's significant -- with boeing because last week, two weeks ago, the planemaker posted 1,300 growth orders. in terms of deliveries, 588 last year for airbus. and 601 for boeing, for the american planemaker as regained its crown as the largest planemaker for the first time in more than ten years. in a press conference this morning, they were saying it was higher indeed. it's a significant drop at the time airbus was able to collect more than 1,600 gross orders. but there was a sharp decline last year. that was the main announcement this morning. airbus is targeting 700 gross orders for the year,

let's get to phil lebeau. from what we heard, highly technical and lots of terms that necessarily i'm not thinking exactly what they are talking about. i hope you did. >> what they are trying to do, brian, and what they are still doing, the ntsb chairman debby herr'sm hersman is in the process of running down through exactly what they are doing. breaking down what they are doing in the investigation, strip that all away and a couple headlines come out of the press conference, the first one being they do not know the root cause of the battery failures, the main point, that they are continuing to investigate, and as a result you're looking at a situation that's far more serious than perhaps can appreciate any time you have a fire in the air. as layman as you can get it, an explanation from the ntsb chairman in terms of what happened with the batteries on the two dreamliners. >> there are findings to date. fire was present. there are signs of thermal runaway and of short-circuiting. we have a number of next steps

our phil lebeau joins us right now with more. this is a pretty big deal, phil, this is not only what's happening in the united states, but this is other countries that have come on board with this, as well. >> and becky, we haven't seen this from the faa where they ground a particular airplane since 1979. that's when you're talking about the dc-10 back then. here's essentially what this grounding by the faa results in. it's not just here in the united states. once the faa came forward with this air worthiness directive, you found europe, japan, india, they've all done the same thing. so essentially you're not seeing the dreamliner fly anywhere around the world. the issue, the lythithium ion batteries. boeing is working with the faa to prove these batteries are safe and in compliance with what the faa wants to see in the dreamliner. boeing must show they are safe and will not prompt potential fire with a malfunction while in flight. that has been the concern following what happened last week in boston, and then earlier this week i

phil lebeau has more on the problems plaguing that aircraft and boeing. phil? >> tyler, you were showing boeing intraday, go back to last monday. that was the first report after dream liner problem in boston. it's been a roller coaster. but since last monday, down 3.4%, here is more in terms of the investigations. not "investigation", but "investigations." they are sending investigators to japan because of the plane that had an emergency landing yesterday. meanwhile, all nippon and dream liners are grounded. and lij yom ion batteries are the scrutinized batteries as they look at what went wrong with these planes. we mentioned the a and a flight. there was a landing in japan, the pilots saw a battery light come on. a and a says the main battery was discolored and election trol sis solution leaked. the lithium ion batteries are made by a japanese company. the company down roughly 9%. by the way, the battery in yesterday's incident, same as the battery at boston logan airport fire. >>> finally, lot airlines out of poland, taking off inaugural flight today, from wa

phil lebeau with us. i want to ask a basic question. when i heard you give the numbers on ford, blowout, $3 billion. >> absolutely. >> what's going on with the stock? >> the problem is fourth quarter, great, 2013, that's the focus. let's give the good news, if you will. when you look at the fourth quarter, much better than expected. they beat the street by $0.06, revenue better than expected. here is the issue, mounting in europe, wider than expected in 2013. going back to '11, lost money, $1.75 in 2012. this year they have increased it, expected to lose $2 billion. the problem, the greater expected losses in europe is basically driven by weaker sales for the entire auto industry and a stronger euro. you put that together and that's where you get the expected $2 billion loss. another concern that's caught a little attention on wall street is this chart right here. see the yen has been weakening of the concern is you have the japanese automakers finally getting a little wind beneath their wings in terms of pricing in the u.s. we ask cfo

. >> phil lebeau joins us in chicago with the details. phil? >> we're talking about essentially a mileage tax. and what we're seeing, the first state to do this essentially is is the state of washington. starting next month it will be taxing those who own an electric vehicle $100 per year. why electric vehicles? you can't get a gas tax from those who are charging their car at home. as a result that tax revenue is going into the state transportation fund. why is washington doing this and other states looking at something similar? gas tax revenues are under pressure. first the recession means people are driving less. particularly painful for the federal government. it gets 18 cents in tax from every gallon of gas bumped in the country. on top of that, you have fewer high efficiency models. every year we have seen the fuel efficiency increase. it's now at its all-time high for new vehicles. 23.9 miles per gallon in december. 23.8 for all of 2012. as a result a lot of states particularly washington, oregon, minnesota, others. they're studying vehic

phil lebeau has the latest on this situation. phil? >> reporter: today is a day when we heard from the secretary of transportation, and one question he received in washington today is when will they possibly lift the grounding on the dreamliner? by all indications, he says they are a ways from that happening. >> i'm not going to comment on any of this in the middle of their review. frankly, i haven't talked to them, number one, and i don't know if michael has or not. look. we need to let them finish their work. >> the them is the investigators to the faa and the head of the f-say toys there's no indication when it will lift the dreamliner grounding but it was the second event in japan that prompted them to ground the dreamliner. >> the second incident happened in flight and that for us was an important consideration where we needed to identify what is causing these power and batteriled incidents and ensured we've taken every action to ensure they don't happen. >> reporter: it's been almost a ounding and look at the chart, guys. shares

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guys, back to you. >> thanks so much, phil lebeau. the dow jones industrial average 50 points away from 14,000. that 200 points away frommin a all-time high reached back in 2007. if you think that's made marc faber less bearish, you'd be very wrong. despite, that marc is the man behind the gloom, doom and boom report and joins me now to talk markets. good to see you, marc. thanks for joining us. >> my pleasure. thank you for having me. >> so you say regardless of what the markets do near term, a correction is overdue. when do you expect a correction and how significant? >> well, i think it can start any day. we are very overbought but it's also possible that we have a mild correction in february and then a further increase in stock prices, something that would be similar to 87 where in the first half of the year until august the market went up by 41%. to lose 47% in two months in october and november, so it's a possibility that we have a lot of volatility in equity prices. i'm selling shares at the present time. i'm reducing positions

a top bmw executive is going to join phil lebeau. if you went to bed early last night, it was important. >> the golden globes were fantastic. >> did you see ben affleck sthp. >> yes. >> and steve iger. >> iran hostage drama "argo" won best movie drama. the musical and one of the universal films "les mis" won the contest for best comedy or musical as well as acting award for hugh jackman and ann hathway. and lincoln got only one golden globe out of seven because they found out he wasn't wearing that hat. >> bill clinton showed up, too. >> did he? >> yeah. >> he got the win. more importantly, duke lost to the wolf pack. they were undefeated and michigan lost to ohio state. so then you saw the falcons finally got off. >> and the patriots won? >> the patriots looked pretty good. >> it was a one-point gain, right? >> it was 30 seconds. anyway, we'll be back. i had to end with some sports after that hollywood dribble. this is america. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets

. >>> i'm phil lebeau. welcome back to the halftime report. more breaking news regarding that boeing 787 dreamliner that caught on fire while parked at logan airport in boston. this is video of the japan airlines plane. the plane landed. all of the passengers left the plane. a mechanic was doing a walk-through when he noticed a light smoke condition increasing from the underbelly of the plane. they then called the fire department. the fire department came. they investigated. the fire was in a compartment with batteries and other electrical components. they are still investigating exactly what has happened. we have a call into boeing. boeing has not responded to our request for more information. i think boeing is still trying to figure out, base odd what they're hearing out of boston from the fire investigators exactly what's going on with the 787 dreamliner. a couple of things to keep in mind, scott. the mass port officials at boston just held a press conference where they said prior to this they've had a few mechanical issues, nothing major,

phil lebeau on the story. phil. >> reporter: just getting reports, one out of australia that quantus is luis aliceaing it will stand by its order for new drainieeamliners. a total of 57 airlines and/or customers have ordered these planes v.5 been delivered. the backlog, they still need to build another 798. almost half of the dreamliners already delivered, 246 them, they are grounded because they are owned by ana and japan airlines out of japan. they grounded them yesterday after the ana emergency landing. by the way, boeing, the faa and ntsb, they all have investigators heading to japan to investigate what happened with that emergency landing. meanwhile, other airlines, which have already taken delivery, they are still flying the dreamliner. this is out of poland making its inaugural flight of the 787. right now, as we speak, maria, in a couple hours. it will be touching down here in chicago. despite airlines saying we're still going to fly, it s & p capital iq downgrading shares of boeing on the concern, mar

phil lebeau has been following the story. phil? >> guys, they just wrapped up the press conference here. secretary ray lahood, michael huerta, what stood out in the announcing they're doing is safety review of the 787 dreamliner, naturally you'll hear mr. converse stand by the dreamliner. you've heard repeatedly from mr. huerta as well as secretary lahood they believe this is a safe airplane. in fact, mr. lahood said i would fly this plane if i were to go to the airport today. here's a little of what they had to say of the announcement of this special review. >> this review will cover the critical systems of the aircraft, including design, manufacturing, and assembly. through it, we will look for the root causes of recent events and do everything we can to ensure these events don't happen again. >> so the question now, what happens in this review, how long will it take. they did not put a time frame for how long it will take the faa, working with boeing, to complete this review of the dreamliner, and whether or not we might see som

remember, if you go look at the phil lebeau indicator, he's about to come on, unless he's with carl, forget it, lebeau coming in. it's still going. >> you have been pretty consistent in saying there are other ways to play this. >> you go with the koty company, honeywell, breaking out here clearly. they make the cockpit for everybody. there's a lot of other planes being made besides the 787. we're talking about the 8400 planes being ordered. it may put a glitch in boeing. >> it will be interesting to see if they address this issue at all on thursday. >> commercial regional and business jet coming on strong. what i'm trying to do is try to juxtapose the gloom with the fact that business jets are doing well. maybe there's faux gloom. remember donny deutsche, something something new bus, the gloomiest, i don't know, whatever it's called. >> gloomest of the new green. i'm going to make a t-shirt. >> it's like, actually, i think of it myself. >> cramer's hearing voices again. >> wall street breaking for the last key economic report before the bell. we'll get industrial production in a few

joining us on the phone from that very event is our own phil lebeau. phil, good morning. i guess your thoughts here as we work through the conference. is gm, despite losing global market share to toyota, potentially winning hearts and minds here? >> well, they're definitely winning hearts with the corvette stingray. anybody who saw the stingray the night that it was unveiled, immediately you said, wow, look at this car. it has the styling queues of the '63 stingray. it is such an iconic brand. and it's a brand that, with this new version, they haven't ruined it. sometimes you have a classic brand and they bring out a new model and you go, what? what were you thinking? that's not the case here. so clearly, that's generating a lot of buzz. you add to the fact that cadillac for the first time ever has won the car of the year award, which is hard to believe given how long cadillac has been around. you can see some momentum there. that said, anybody would was attending this auto show, all of the journalists, were all well aware of the challenges facing both cadillac as well as

phil lebeau has some breaking news. i wonder if this is going to involve boston's logan. >> it does, carl. this is news we're seeing reflected in shares of boeing which has ticked lower since these reports came out. there was a fire this morning on a 787 dreamliner parked at logan airport in boston. it is our understanding according to information we're getting out of boston that the fire has been put out. there were no passengers, no crew on the plane. what's unclear is what started this fire, whether it was something electrical, the plane, if there was something else. we've got a call into boeing to get more details. all we heard from boeing is they're going to be looking into these reports. so they're getting this information as quickly as we're getting this information. but the important thing to keep in mind here, carl, is that this is the fourth incident regarding a dreamliner. remember, we had the two reports from united of dream liners losing some power, some degree of power while in flight and then also a simil

phil lebeau calling in from chicago this morning bright and early. thanks very much. >>> now china's economy is on the rebound. where will the growth go from here? we'll bring you the story from beijing is when we come back. ♪ [ male announcer ] how do you turn an entrepreneur's dream... ♪ into a scooter that talks to the cloud? ♪ or turn 30-million artifacts... ♪ into a high-tech masterpiece? ♪ whatever your business challenge, dell has the technology and services to help you solve it. >>> welcome back to the program. u.s. planes reportedly land in algeria in a bid to rescue americans as the hostage crisis continues. >>> china shows a growth of economic data. >>> and shares are down in intel. after seven straight quarters of slowing growth, gtp came in above forecasts at 7.9% from a year earlier. investor output and retail sales beat analysts. to put it in context, china's 2012 growth is the weakest in 13 years since 1999. still, when exactly can we call it a recovery? a senior china correspondent eunice eun has more in this report. >> the

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. >> and phil lebeau writing in it's al nippon as in let's all go to dinner. al nippon -- >> that's a-l-l. you heard it on the radio from a dope that didn't know either. two guys -- >> that's the problem. >> two drowning guys holding on to each other. >> if you get the information from newspapers, you don't know how things are pronounced. if you listen to the radio, they get it wrong. >> heard it in the car on the way here. >> you tell your -- you request a certain station from your driver? >> no, whatever -- >> whatever he's listening to. >> eli. a euphemism for joint chiefs. whatever he listens to i listen to. >> his name eli? the same guy every day? >> pretty much. >> no kidding. he's not going to be there tomorrow. >> what a life. what a life. if someone tries to approach the car, is eli -- >> he's big. eli's big, yeah. >> so you do have -- you have muscle and you have a driver. >> absolutely. >> how -- how could you -- >> cool, isn't it? i outrun anyone that's after me at this point. >> i know, the own radio station is a big reason for driving myself. i d

. >> phil lebeau, thank you very much. >> the markets are at or near multi-year highs across the board and secondly are republicans backing off? we' one gop member of congress will explain what's going on in washington next. quicken. ♪ to help you not just to stay alive... but feel alive. the new c class is no exception. it's a mercedes-benz through and through. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. >>> washington, house lawmakers getting read to raise the debt ceiling. speaker boehner is expected to give a news conference later toda today. >> there are a lot of deadlines in washington for investors to keep track of, they each carry their own risk. let me walk you through what we are expecting. starting tomorrow on wednesday, the house republicans say they're going to have a vote to extend the debt ceiling. they say they will raise the $16.4 trillion cap enough to extend the debt ceiling to mid-may. on march 1st, you have the sequester, when the spending cuts will kick in. about $85 billion of cuts automatically to d

phil lebeau, thank you so much. you saw the chart that phil put up. what is ahead for the stock in rick is reiterating his buy rating on boeing. thanks for joining us. why are you repeating the bye rating and what's the target? >> i think the stock is trending up higher. boeing has taken a while to get the 787 out in customer hands but in flight or on the ground, issues, nobody is canceling orders and the airplanes are going back into very ready service. i think if there was a safety problem, the ntsb would have acted by now and secondly the airline would ground the planes. boeing has a huge backlog and booked in 2012 twice the number of airplanes that they delivered to customers. that the highest number of deliveries since 1999. and they are ramping up production and earnings will go higher the next several years. >> all right. what is your target? i understand you had a $90 price target on it. is that correct, or not? >> one-year price target is $090 but that could just be a starting point. >> just when you think things couldn't get worse for congre

phil lebeau is here with the latest. what do we know, phil? they're checking out these batteries, i guess. why does it seem like it's going to be longer now? >> well, remember, last week when the grounding was announced at the time boeing said, listen, our engineers are working with the faa, we believe that perhaps we could come up with a quick solution, that could convince the faa the planes are safe, put them back in the air, perhaps early to mid this week. that was the original goal. well now when you look at what's happened over the last three or four days it's pretty clear that the drama roevolving around the dreamliner it's been extended. first of all the flight cancellations continue to grow. a&a, jal announcing cancellations through the 28th or 29th. boeing is not slowing production, even though it is officially halting deliverlies of 787 dreamliners. here's the issue. they have come up with different finding for the burned batteries. we mean the investigators in japan and the u.s. first in japan. investigators there say the a&a batter

phil lebeau has more on a big story. phil, over to you. >> it is a big story, simon. but we have breaking news first out of washington. this involves transportation secretary ray lahood. he'll be stepping down as transportation secretary. he is expected to be replaced once a replacement is announced. mr. lahood has had an interesting four years, most recently saying just a few days after one of the first dreamliner incidents, hey, this plane is safe, i would fly it, and within a week coming back and saying, it's not safe. we'll keep these grounded until we figure out what's going on here. take a look at shares of boeing. could this possibly impact the 787 investigation. for what it's worth, my sense is it will not have an impact. they already made the decision they need to find the root problems and then determine the grounding of the dreamliners. let's look at ford earnings. these were better than expected beating the street by a wide margin. ford coming in earning 31 cents per share. the street was expecting 25 pierzynski share profit. revenue better than expected c

phil lebeau was all over this story. you were on the first 787 flight. would you describe this as a real crisis for boeing? >> oh, absolutely. absolutely. there is so much invested in this plane. they want it make sure they get this resolved as quick lays possible. remember, the key here is ramping up production later this year. that's why they are focused on what is happening right now over in japan. they have investigators over there. remember, a and a and jal, japan air, grounded their dream liners today and tomorrow, after the emergency by ana. the japanese airlines, by the way, they have 24 of the 50 dream liners in service. the ntsb has an investigator there. today, the ntsb issues a cursecy report about what is happening with the emergency landing saying the crew received multiple messages in the cockpit concerning the battery and other systems that were affected, also reported smoke in the cockpit and odor in the cabin. the the limb ylithium ion batteries are made by a japanese company. there was an incident at logan airport. the stock is down 9%

our very own phil lebeau has been following this since the beginning and you have the latest for us now. phil? >> we heard from boeing executives an hour and a half ago hearing where things stand for the 787. defending it is a reliable aircraft. as we look at a picture of the ntsb increst gating the batteries, the trace the cause of the fire on monday, boeing today on a conference call defended the use of lithium ion b batteries. boeing says it has 1 million miles flown with those batteries pch they believe it is safe in the future. chief engineer is asked whether he was worried about whether or not the problems with the dream liner will hurt the plane or boeings reputation mp here is what he had to say. >> what impact he the customer serious to me, anything that create downtown on the airplane when the airplane should be flying, serious to me. anything that creates media attention is serious to me as well. so i'm concerned about the things that everybody is concerned about. there's not a single one standing out as a particular concern from safety or economic perspective. >> by the way,

cn cnbc's own phil lebeau was saying it could be 15.5 million. tomorrow i think we're going to find out about december sales numbers and it's going to be terrific. hurricane sandy wrecked hundreds of thousands of cars that need to be replaced. bloomberg surveyed a bunch of analysts and they're predicting a 9.8 increase for december. put it together and the domestic auto market is clearly on fire. in fact, it's giving rise to maybe just maybe one of my best ideas for 2013. we still got a tremendous amount of pent-up demand in the country. the average car on the road is ancient, 11 years old. it's now easy to get a loan for a new car at a super low interest rate this is a story where the easy answer is the best answer. don't try to outsmart yourself. continual theme for 2013. we're on track to sell a huge number of cars in the country, buy ford. why ford? first of all, it's the best auto company in america it likely sold 2.2 million cars in the u.s. last year. it is the first auto company to get back to the prerecession levels. the ford focus was t

joining me now from chicago, phil lebeau reports for cnbc. with the faa, phil, how long will this take, the complete safety review? >> reporter: well, the complete review is different than the directive saying the planes are grounded. the more important one is the grounding by the faa. boeing is working with the faa to clear it up as soon as possible. it's little too soon to say that's going to happen but the direction they're moving. here's why it's so important, tamron. look at the demand for the dreamliner amongst airlines. there are 57 what boeing calls customers and 95% of these are airlines. or companies that lease out airplanes. they have ordered 798 dreamliners that need to be built, 50 delivered and the expectation in the industry, tamron, for years after this backlog is built, by the end of the decade, you will see more dreamliners built so this is critical for bioing to get past this grounding as quickly as possible and get the dreamliner back in the air. >> back to what they believe is the problem here, the batteries, useded in ai

earlier today, cnbc's own phil lebeau was saying it could be 15.5 million autos this year. tomorrow we're going to find out about december auto sales numbers and i think it's going to be terrific. hurricane sandy wrecked hundreds of thousands of cars that need to be replaced. bloomberg surveyed a bunch of analysts and they're predicting a 9.8% increase for december. put it all together and the domestic auto market is clearly on fire. in fact, it's giving rise to maybe, just maybe, one of my best ideas for 2013. we still got a tremendous amount of pent-up demand in this country. the average car on the road is ancient, about 11 years old. it's now easy to get a loan for a new car at a super low interest rate. this is a story where the easy answer is the best answer. don't try to outsmart yourself. continual theme for 2013. we're on track to sell a huge number of cars in this country, buy ford. why ford? first of all, it's the best auto company in america. it likely sold 2.2 million cars in the u.s. last year. it is the first domestic auto company to get back to prerecession l

a couple of big stories that investors need to know about today and phil lebeau is in chicago with both of those. hi, phil. >> hi, sue. this is secretary of transportation ray lahood speaking at a luncheon of the arrow club. we expect him to make some comments regarding the dreamliner. he hasn't spoke about the dreamliner yet. it has been a week since the grounding of the 787. he will is introduce the head of the faa. here is the latest regarding the 787 investigation. jtsb within counterpart to ntsb out of japan, now says the battery involved in an incident over there was not overcharged. that's a reversal for them. meanwhile, ntsb is testing the lithium ion battery cells in washington, d.c. investigators are running multiple test at multiple locations. some at boeing in seattle, some at washington. they not continuing to peel back the onion looking for more, in terms of what is the cause between the dreamliner incidence. also in washington, there is discussion that u.s. senate is considering hearings to address the history of the 787 dreamliner. the t is in the discussion phase. the h

our own phil lebeau is in chicago. what are we hearing, phil? >> this is the first time we heard from the secretary of transportation since the faa grounded the dreamliner on wednesday. this is moving fractionally. an whole lot of movement. the question put to secretary of transportation, is this a grounding that could possibly be lifted by next week. here is what he had to say. >> this is complicated because we want to make sure we get it right. and the flying public expect us to get it right. and so, it's going to take a little bit of time. >> can you get it done by early next week? >> you know what, i just -- i don't know the answer to that. i'm not the one doing the examination. and the work and so we will just -- well see where it takes us. >> meanwhile, in japan today, investigators of the ntsb and faa had a chaps to look that 787, the one that had the emergency landing earlier this week. getting back to the secretary of transportation, mandy and brian, there are a boeing working with the faa could come up with something by early next week

phil lebeau is our man and i believe have you comment from the transportation secretary? >> ray lahood, along with the head of the faa, meeting in washington at arrow club luncheon. one of the questions to the second of transportation, the dreamliner is safe and later grounding tp listen to what secretary of transportation has to say. >> you know what? i'm not doing these hypothetical 2020 look backs. we did what we did and did the right thing. for the american people. and when we finish our review and figure out what happened, we will be happy to announce it. no postmortems. >> a few more questions. but basically what they had to say is this investigation is still ongoing. a couple of points, japan and since the battery is involved in that incident is not overcharged. flipping to what they say originally. they are testing lithium ion cells in washington and these investigators for the ntsb and boeing are running tests in multiple locations around the country. and it is clear from listening to comment guys in washington as you look at shares of boeing. it is clear from li