trillion dollars of capex cut throughout the world, and during this period, rick cleverly sells certain assets, re-creates the company makes an acquisition and emerged from the downturn ready to play offense. he laid out a plan to grow oil and cash production 20 to 30% a year between now and 2020 without needing external financing. he bought stock for himself all along the way. when we were buying, the headlines were screaming negative. we love that. >> let's leave viewers on this thanksgiving piecing with a piece of pie, nice slice of dessert. teach them when to sell, not just when to buy? >> when to sell is harder. we sell when we reach estimate of fair value. we sfel we feel something changed or we sell when we find something better to buy and run out of cash. the important thing is to be a business analyst, not to get shaken out by the movement in stock prices, i would encourage viewers, think about buying stock as buying a piece of a business or the same way you and friends buy an apartment building. don't get focused on the price bouncing around. that is your opportunity, if your

. -- capex for us. od in terms ofi go expenditure? what is good for you to meet those requirements?after what investors.ell to our our breakeven price for production is $77. we made a big effort. of 3.4%.m our growth overall financial outlook for the company is $50. >> let's talk the marketplace. we going towards the opec market, could the oil rebounds this year? >> i think we are very close. the first six months of imbalance supply, about 1.7 million barrels per day. now we are under 100,000 barrels per day. we are getting closer. 2017 could be the year of rebalancing supply and demand. >> you are getting more efficient. you have a lower breakeven. things are going. what is the message for investors today in terms of the dividend? how secure is the dividend in 2017? isn't that balanced between expenditure and outflow? >> [indiscernible] >> talk to me today though. confirm is $50 is ok. we're going through a better period. inething that can remain the next several years. our breakeven price is enough to develop and continue to invest and develop our core business. that is all i can

. >> it is low capex and we will who can do that ?e low cost basis higher prices are at another level and they have every incentive for opec to come to the agreement. how are they making a dent in all of this? the thing the has come the russianswn to and there was a real sense that and thereoptimistic was aggressive leadership with theyng coming through and said they think that opec is leading from the front and it would lead to sustainable prices. they want to take care of the it is a strategic investors.he >> it is a little bit easier for youhan it was for you and should stay tuned to bloomberg. what a man. it is all about the russians right here. >> manus cranny is the man in abu dhabi. thoughts on your maintaininganies still withnd keeping the oil prices back up again. term -- are the neil the near-term expectations of oil prices and what is priced into that is going to support the diffidence you are making like it is oneems a relative basis. >> we are seeing how people feel about the ongoing discussions and what you are looking a

capex budgets.r some of them even cut the dividends. not going to my board room and say i just laid off all these people to cut my budget, i'm going to buy this oil field in north dakota. i still think there's going to be a lot of activity in that space. juliette: coming up on "bloomberg best," the most compelling interviews of the week. insight into opec, a warning on brexit, and a conversation with peter hancock, the ceo who has been reshaping aig. >> we are taking greater control over our destiny by doing our own homework on the risk. juliette: this is bloomberg. ♪ . . i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business.

chevron is probably best of breed, better run, better capex. >>> check out all the afterhours moves,l ahead, reacting to earnings. we'll get the headlines from those conference calls. i'm melissa lee, you're watching "fast money" on cnbc, first in business worldwide. here's what else is coming up on "fast." >> i believe the fed is political, beyond anything i would have thought possible. >> announcer: that's why a top economist says if trump wins, it could be lights out for janet yellen. the fed as we know it. she'll be here to explain. >>> plus -- >> may the force be with you. >> suddenly traders are betting that the force will be with disney when it reports earnings. we'll tell you what has them so bullish, when "fast money" returns. if we don't solve our debt problem 19 trillion and growing money for programs like education will shrink. in just 8 years, interest on the debt will be our third largest federal program. bad news for small businesses. the good news? there's still time for a solution. ask the candidates for a plan to secure our future. what's critical thinking like? a b

companies are sitting on cash piles and they can spend it, spend it on dividend share, buybacks and maybe capex. >> we'll see what happens. it's premature to go bullish, we'll see what happens. clearly the technology is working in favor of the companies to make them more efficient to move cash around the world. what is not helping is legal restrictions at the local level. if the u.s. manages to do that it will be beneficial for u.s. corporations. >> one of the other big threats to treasury departments are cyberthreats. are you saying that treasury departments are woefully underprepared? >> let me put it the other way around, which is they're becoming the obvious target for cyberattacks. if all of this cash now is moving to vicyberspace, cybercre will look at ways to go after where the cash is. i think it is the responsibility of the financial community, the banks, as well as our clients to work together to make sure we have the control systems in place but also the right corporate cultures to make sure we're dealing with that problem. >> thank you very much for your time. >>> over to the politi

so by the international oil companies, they'll be cutting their capex once again, but also by the opec member themselves. very few of these countries, including saudi arabia, can really cope with another year of low prices in terms of their budgets, the deficits they've been running and the spending they need to maintain. . >> richard, good seeing you this morning. thank you very much. richard mal llmallinson, geopol analyst. we'll be live from vienna for the opec meeting with loads more analysis from there. steve will be traveling outs there and will be covering that in great detail. >>> donald trump launched a twitter rant against hillary clinton on sunday after her team said that it would support jill stein's campaign to secure recounts in key states. trump called the decision sad and said that nothing would change. the president-elect also claimed that he won the popular vote as well as the electoral college if "the millions of people who voted illegally" were deducted. he offered no evidence to support this claim. nbc's tracie potts joins us from washington. i have to say i was st

broadpoint from a high level, where the job growth has been, where the innovation has come, where the capexm, these are not companies that have been buying back stock. they have been investing in more servers and infrastructure, and hiring more people. there are hundreds of thousands of people now who work at amazon throughout the united states. you are not thing that job growth out of traditional retail. these are the innovation engines and economic engines of the country. there are plenty of other good growth sectors, biotech comes to mind. you talk about tech and software and internet, that is jobs growth, it is ideas growth. those of the sectors that you want to promote. you don't have to do actively. but those are sectors that you do not want to undermine. guy: give me a stock pick. >> i think you can stick with the stocks. they have got management teams that over a decade have built enduring businesses. amazon has the major cloud computing conference. first, we would go netflix and then we would go facebook. netflix is the most interesting new growth story in 2017 with a huge amount o

give us an idea in terms of capex,ou are with the relative to your growth trajectory?ou can see the benefits of the capital that we spent. we are the only gold company that has not compared. we make a real return on that capital and you know, we are looking for the next phase in the development of randgold resources. it has been around for 20 years and it is a profitable business. we have made enough money to invest in our own future. we do not rely on any shareholder equities. that makes us quite different from most of our peers in the gold industry. anna: mark, you are just setting out for you expect the production to come from. how much are shareholders putting pressure on you to come up with this plan to maintain production, to keep getting the gold out of the ground? is that one of the big conversations you are having? mark: i think we need that conversation because we are all about creating value, not only with our shareholders, but with all of our stakeholders. we make the contributions to the countries in which we invest. and again, the gold industry is quite q

it is suddenly consistent with the idea that you receive a contraction in capex and a slowdown in hiringw does that compare to the survey you would have done a year ago, or earlier in the year, around the time of brexit? when you expect the fall in that kind of optimism going forward after the election of donald trump? -- ? the u.k. or across yousef: across european cfos. >> i mean, i think the adjusting thing -- yousef: where do we go from here? >> i guess is cfos will take their cue from the equity market, which is positive, in the reaction of economists, which seems to be fairly positive. you all were talking up growth in america. i suspect that will have an effect on sentiment. anna: certainly the markets have jumped on the infrastructure story. we should see how long that lasts. thank you very much. deloitte chief economist joining us to talk through cfo optimism. yousef: we are still around a flattish level, but more toward the green down the red, especially on the ftse 100 and cac. that's it for daybreak in europe. the european open is up next. anna: we will be joined later on. 7:

i think it probably will take quite a long time to heal, particularly at the capex.son they are performing better is because of investment capital. i think it will take some time to work the system, whatever happens. yousef: that makes a lot of sense. ultimately, higher oil prices mean better margins for oil producers. you are saying that it's not just the oil and gas companies benefiting, it's really feeding across the board into earnings for companies. >> that's absolutely right. and when you are looking at the corporate earnings at the whole, globally, where we have seen better momentum coming through in the last six months, it has been in resources, metals and mining, energy, technology, and financials. you have seen a little bit of relief around interest rates. those are the sectors where you have seen some improvement in momentum, which fed into a better earnings picture overall, and that's another reason why equity markets feel better, apart from everything we are seeing . anna: what do you make of this story we have been covering in the last hour, around chin

it's one of the reasons why i think capex is sluggish, but it's also affecting workers, and it meanst increasingly, workers are going to have to move industries, get retrained, and that's why, again, educational attainment levels improving and vocational training and beefing up vocational training is going to be critical, because more and more in our future, workers are going to have to adapt to changes in industries which will cause them to need to change jobs and move to new industries. we're behind the curve on that, in my opinion, and we need to rapidly catch up. >> robert, i'm going to get severely disciplined for asking you one more question, but give us your best guest for the funds rate at the end of next year. >> okay, well, you know i'm not going to do that, but i'd say the following. i'd say -- i've said up to now, the path of future rates is going to be somewhat shallower than we've experienced historically. if there's new economic policies, we'll have to revisit -- i'll have to revisit that statement and that assumption. i don't want to predict where the path-to-funds ra

efficient.ressively how much more are you going to take out of the business -- how capex are you goingut of the business? alex: it will put pressure on the providers. it is a good example. one of the largest projects in the world today, we have seen already cost down by 20%. we see further pressure on the cost. say, it is a perfect storm. we are building this enormous project in the best possible time where costs are under pressure and definitely, the main focus for a company, and we have seen it. operating costs are at a record low. we announce the breaking cost for the third quarter of just above seven dollars per barrel, so very pleased with that performance. manus: i see here. you say the balance sheet can sustain $40 per oil. we are waiting for opec to agree on the non-opec, to get together and agree. how optimistic are you? it's choice me that there may be assets on the block that you are interested in. if you can't survive on $40, a lot cannot. alex: first of all, very pleased with that position. the fact that we can sustain oil prices down to $40 for the long-term and continue

capex is also seen at the lower end of next year.ings have fallen year on year for nine consecutive quarters. the third quarter was no different, with a 49% decline in earnings after crude prices fell in refining margins shrank. i want to put up the we are weir group as well. they provide solutions for minerals, power, and gas markets. these shares dropped the most in four months. it's set for your profits are going to be slightly lower. thisone-stop we will work -- one stock we will focus on is standard chartered. bankshares have done well of late. we expect figures in the next couple of minutes. -- anr of standard chartered the number of cell recommendations has been growing. is that the right call? we will discuss that next. standard chartered's numbers about to come out. ♪ seeing is believing, and that's why we're opening more xfinity stores closer to you. visit us today and learn how to get the most out of all your services, like xfinity x1. we'll put the power in your hands, so you can see how x1 is changing the way you experie

if that money was essentially transitioning towards capex and investment, being productive, a return on capital, we could see a pretty dramatic shift in the earnings power of u.s. corporate's. guy: having to think that is going to be? you look at the homeland 2008-2010.act, you saw a lot of money flowing back. that money did as you say largely go into buybacks. do you think there will be resistance? the idea that we will bring this money back, will be stranded in infrastructure? marginaltimately, the propensity for companies to invest is a function of the return on investment capital rather than average cost of capital. every company has to figure out whether this investment will ultimately make money or not, and avoid making the mistake of 2009, and chinese corporate's and the chinese government made a massive fiscal stimulus and the whole thing ended up in tears because of excess capacity, and ultimately bankruptcy. the argument against this money coming back, there is a number of them. buybacksem is that does not do anybody anything unless you are the investor, the 1%. it works ag

. >> that's money not going to capex. >> i don't think they'll be short on roller coasters at upgrades of any of the national parks. >> they're just kind of bringing the dividend up, i think keeping it steady with cash earnings growth. it's never been a big yield stock. it's always yielded 4.2 spae%. >>> and when we come back, how trump stock could change the yield in stock. >> jim daugherty will be joining us and what he expects in the trump administration on trade. you're watching cnbc, first in business worldwide. i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. or the freedom to choose what doctor you want to see. so if you have medicare parts a and b, consider an aarp micare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, these let you choose any doctor who accepts medicar

if you look at chinese growth over the next 10 months, it's much less driven by capex even.reakdown of chinese growth, it's much more led by construction already. at least over the last eight or nine months. wehink the structural shift have been talking about is quietly but surely happening. it's very positive on the chinese side, because they view that as a potential protection of any irruption of trade friction around the world. we just heard about the telephone conversation from last night between the president-elect and president chi. how do you play it right now with donald trump, so that you have not destroyed your trade relations? chen: through all of this election cycle in the u.s., many times, they are used to that. they know that there is a difference between campaign rhetoric and practical policy. as chairman mao said 30 years ago, 40 years ago, he like republican presidents because in republican presidents were very practical. i think that's basically -- i think if they sit down and think through the whole concept, he must be very, very happy to be honest. becaus

to try to actually boost financials in terms of returns, and hopefully, that leads to lending and capextivity then tends to follow. >> you know, jim, we're out of time. that is well said and it's funny you used the word, i think we are in recalculate mode in the economy! just like when we're in our cars -- recalculate, recalculate. markets have been untethered for six years. i don't know what's real and what isn't, but the markets are finding out and sending a strong message. thank you, jim caron. kayla, back to you! >> thank you, rick santelli. jon fortt has a look at what's coming up on "squawk yaey." >> why don't you join us? yeah, we'll dig in on the facebook ipo filing, secret though it may be, and its implications for the sector. also, social media continues to reel post presidential election with president-elect trump changing the rules. where do they go from here? and finally, the future of privacy and security under president-elect trump's administration that we're looking forward to at the beginning of next year. will the rules change? what does the industry want? all that and

some downward pressure on pricing power and i think making it harder for business .eaders to spend on capexstand how those forces are affecting perspective gdp growth and then how that leads to changes in inflation. think happensyou with growth and inflation, do we see a pickup in growth and we 2% andlation get to beyond? robert: the gdp growth without other government action, either structural reforms, infrastructure spending, fiscal policy, i think that prospect for future gdp growth is pretty muted. we are growing in the neighborhood of potential gdp growth while it is sluggish and disappointing, i do not see prospect for it taking up. the question is what is going to happen with inflation and this is why we would be wise to remove some amount of accommodation and assess the impact of that. we want to keep a close eye on significantly overshooting unemployment and the impact on inflation. i believe that we can afford to be patient and gradual and cautious because of these headwinds that i talked about earlier. my: what do you think of the idea of a high-pressure economy as a theoretical

and we've seen it on the industrial side on the capex spending is restrained.oint about the election, the uncertainty is always there any time there's an election. and it's not just this election. i think it's amped up a lot more, probably, in 2016 than it's been. but i think that uncertainty affects consumers. i think it affects business spending. what i'm hopeful is that we start talking about growth and job creation. sort of every day again. once we get past the election. that to me, the u.s. is poised -- i do think interest rates are coming up in december. i think it can be helpful. and i think we're going to see this economy come front and center. and boy, there's a lot of room to run if we can get the policy right. >> all right. >> great. all right, governor. thank you. we appreciate it. that's a nice shot of you we got. anyway, we'll see you. >>> coming up, unleashing the power of the pet health industry. idex is a leader in pet diagnostics and beyond. it helps tell vets and caregivers where the pain is. the ceo joins andrew after this break. "squawk box

capex hasn't been phenomenal.o be down 12% year over year is a big decline. >> you ever have a buy on this stock? >> we have a buy on it, yeah. >> i wasn't going to use dog with fleas anymore, i love dogs. this has been dead money for ten years? >> so, if you go back to a lot of these big tech names in the bubbl bubble. >> if this is tech, we need a new word for what tech is supposed to be. the market cap is $150 billion right now. it was 600 billion at one year. i want to see a 10 or 20-year chart. i don't care to see where the -- >> i do. >> oh, remember that? >> yeah. >> i'm talking about in the last five years. the last ten years. you can do anything with your money. is there any reason -- you have a buy at 30 on this. why? >> well a couple things. i think it's still cheap. it's not 100 times earnings like in the bubble. >> i guess when you have single digits, it's a buy. >> you have a dividend yield in this market that's attractive. i go back to the coca-cola, pepsi, kellogg's of the future, they get better m

other people have a view that it might be about just how much capital capex they're spending. >> let'srt of clarify. there isn't specific guidance. and the company didn't bring down guidance. it's all mincing the words of how the ad load flattening out for 2017 was communicated. so there are three big for advertising. one of them is advertising load, the other one is numbers of facebook users and per user. and the other is ad demand which is reflected in pricing. so what the company has said is that ad load will be a meaningfully lower contributor of ad revenue. right? so last quarter i think that that word was more like accordingly. so everybody's woird there's a slowdown in '17. what we would say is models already plan for this. if you look at 2016 growth, street models in the mid-50% range. then they really come down 20 points. that's pretty meaningful in my opinion. >> that was already there, you're saying. >> that was already there. now there's the second thing you touched on which was expenses and the company said that 2017 would be an investment year. that is also what they said

we have gone through 150 years opex for capex. we have avoided adding warner insulation to the windows, the light, going carefully with cost to save and energy use. now that the true cost of energy , especially from fossil fuels, is becoming more apparent, there is all this low hanging fruit and fruit all over the ground. and it is there. with the digital tools, especially with the internet of things that now make factories into computers, the ability to harvest those inefficiencies, reduce emissions, reduce waste, increase profit, that is everywhere now in the business world. waste, increase profit, that is everywhere now in the business world. medium-size, large-size businesses. everybody. getting at.ybody is customers are demanding a because the difference between profit and loss is always at the margin and a significant and growing fraction of customers are saying, i want this agreement and the ability to hire in retain the most talented new employees. the millennials are not just different than our generation. they are way di