chevron has also pledged asset sales.t is under much less pressure, it's balance sheet is in or miss. it will take on debt to do the deal, sell stop, but it has much more but stability. combining occidental with anadarko, occidental will have to take on this massive lng project in mozambique, for example. it doesn't have anything like that at the moment. they say they don't have any problem with that, they have project experience, but this would be a new industry for the company. if they sell it, who would buy it? there is a lot of uncertainty in the market even though it is fast-growing. lots of questions raised, absolutely. the size plays a big part of it. amanda: great to have your thoughts, simon casey. moving past some negative headlines. the market expecting facebook earnings will improve the social media company has moved past controversies. this is bloomberg. ♪ isnda: president trump speaking now in atlanta, expected to speak on opioid addiction. we will monitor for any news headlines that he makes. a reminder, if

chevron has put stock on the table as well, 75%, but it is chevron. is a very defensible position why that is a more stable stock price. post-transaction, occidental would be three times the leverage rate that chevron is at. that is the biggest reason they can justify going with the chevron offer. david: got to look at the balance sheet. alix: totally. --nk you very much david thank you very much. david bahnsen will be sticking with us. coming up, we've got good boeing -- we've got boeing and caterpillar. stay with us. this is bloomberg. ♪ alix: this is "bloomberg daybreak." we are waiting for earnings from caterpillar and boeing. yesterday, fresh highs for the nasdaq and s&p. will we build on that? s&p futures pretty much flat. european technology stocks tearing higher. microsoft also helps that story. in other asset classes, it felt like a risk off trade when you came in this morning, but that is kind of paring a little bit. in australia, inflation really disappointed in the first quarter, raising issues of potentially seeing a rate cut. david: we h

occi or chevron? >> both companies argue they're great fits chevron says a great fit and a lot of properties. occidental says the same thing we don't have a strong opinion on that. probably both very good there but the point is people went in to the permian and if you did, anadarko is a great property and occidental is a great property with companies like exxon and royal. >> i can't imagine there's not other big players that would like to see some of the assets at work in the permian right now. so my whacky question is, let's say chevron doesn't get this company and occi does. could you see a day where chevron would buy it to take over the two of them at once >> that >> they'd be big enough too. >> the great thing, it's a 10%, they're buying something for 10% their size in terms of buying something 50% your size, 70% your size, that really is betting the company. and as we know, oil prices are very, very volatile. so we wouldn't be that inclined for anybody to make that big of an acquisition now, whoe

chevron ceo. we're thrilled to have you >> that's why he is here zoo literally as the news was crossing the tape, michael was -- >> we got here fast. that's amazing were you walking by? >> we're thrilled to have you on this day, and really just want to try to understand this transaction. we should say our understanding is that it's a $65 a share in cash and stock that, by the way -- that's a pretty sizable premium almost 40% premium over where the stock traded just yesterday. tell us how this happened. we're alleges looking to make our portfolio even stronger. it takes a great company and makes it even better it really plays to our strengths in shale, deep water, and natural gas. it will allow us to continue to win in any environment and deliver great value for our shareholders >> we don't use him as an advisor, but -- >> you don't want to pay him anything it was his idea? >> no, but this is something that -- >> yeah. >> he said anadarko for chevron. just speak to how you got to $65. >> we think i

chevron obviously not. chevron will finish up the next three or four days it is a good deal.aken 50 points or so off the dow at this point. >> yeah. >> i think that in the end chevron being down seven seems a little full. >> all right, so dow is up almost 300 points and s&p 2910 let's get to bob pisani. >> what a day, 3-1 we are getting close on the s&p 500. look at what's leading chinese stocks are leading banks also are leading and energy leading on the anadarko deal as well semiconductor is leading china data is tremendous that's the reason the global market moved up around 4:00 eastern time a.m bank lending was higher than anticipated and stimulus is working a little bit exports were up 14% and marks moved up all of this happens after the close in china bank earnings, better than expected all those stocks are trading up including pnc and big regionals. all up about 2% as well. it is the comment from jaime dimon that helps propellant a second rally in the preopen. he hits on all the points. >> the u.s. economy continues t grow and inflation are up and financial markets are

>> chevron is down i think chevron walks away that's why the stock is up a lot.udos to gordon hasket i do think that we were discussing on "squawk," they're talking about expenditure capital and i was talking about total endorsement. wirth spoke to me on friday, i think you just walk away now, chevron verses warren buffe buffett. you are in a peace universe. >> david, we got to get your take on this one >> listen, i tend to agree with jim as usual, i don't want top say as strongly as he did but it does put the pressure on chevron. i was planning to come on the show to share reporting of the last couple of days indicated to me that at least based on what i was hearing close to chevron camp or within the camp they were unlikely to compete anyway. a lot of narrative around, mike wirth, wanting to show discipli discipline and some information in terms of the back and forth that took place. when they did get the deal goes beyond 65, indicated that you had to take the possibility that chevron would choose not to compete. this was before the news that we just got a few

instead chevron did. chevron's assets in the permian are already awesome. they are only have good assets. they are putting money into it and they double down 75 miles of acreage. a surprising move so fast. -- a surprise they move so fast. david: take me through otherworld companies. when they saw this, who is calling up and saying what are we doing? reportingrding to our -- overall production at anadarko, only 18% came out of the permian in the fourth quarter. to merge with that are other assets chevron has synergy with. is in -- occidental columbia. mozambique.rko in chevron with lng assets in australia makes more sense. where do they go, what will they do? -- shall --is up shell is a big loser. are they hamstrung and have to buy endeavor? david: another place chevron in his venezuela. asked the chevron chairman we talk to this morning about their presence in venezuela. this is what he said. hael: we've been there for nearly 100 years. it is difficult place to work. i am set for the venezuelans. we've been committed to our partners, the community. we want

anadarko gets a shareholder vote completing the chevron deal.oes it mean an contador adark to sell? >> yes you come back in four days and make a higher bid otherwise we'll accept this one. not necessarily a lot to come here we did speak to the company this morning and ask why are you doing this particularly when you are up against one of the majors that can pay more or less whatever it wants. >> we are the right acquire for anadarko petroleum, we can get the most out of the sale we have a lot of experience there and we are performing really well. what has not been talked about very much is the upside of this bill is the shell play 75% of anadarko is in the shell. we are the best company to develop this shell occidental says it will be able to sustain from buying anadarko. this morning, bmo puts out a quick note and it lends at least some questioning whether those numbers are real, we are surprised to see occi using substantially larger synergies how much cost do you take out? well, here is hall on those synergies. >> the $2 billion are things th

david: which benefits chevron. lisa: perhaps that is why chevron is up higher. speaks to oil prices and potential merger and acquisition activity. david: that does it today. stay with us for live coverage of the global conference with guests including stephen schwartz and david solomon of goldman sachs. the open with jonathan ferro, allianz global investment strategist. from new york, this is bloomberg. ♪ jonathan: from new york city for our audience worldwide. i'm jonathan ferro. "the countdown to the open" starts right now. ♪ jonathan: coming up, the nasdaq at a record high as big tech delivers big results. alphabet coming up next. cap it inflation keeping fed rate cut hopes alive and well despite better-than-expected gdp growth and u.s. officials during a for trade talks in beijing with key issues still unresolved. 30 minutes until the start of trading. futures going nowhere. muted price action. euro-dollar 1.1154. treasuries softer after last week's bid. yields up the -- three basis points. we begin with the big issues. rate cut that's still alive and well -

she'sing look at me like, chevron, what's wrong with chevron? i just stopped at the gulf station down the road. we don't understand it anymore. i think conservatives are speaking languages that people understand. so what a better idea would be to go in and say, you know something, over this administration, the trump administration has cut regulation. made it better that the only thing we can do is businesses operate more officially. get the regulatory out of the problem. operate the way they should. i have never met a business in my life that actually wanted to hurt their employees. that wanted to hurt their bottom line. if they did, they didn't stay in business long. let's go into the same agenda, same people, and say, you know why we talk about deregulation in washington, d.c.? last week, i talked to a business owner named jim. jim was looking at it. he said, i'm going to be able to add a new piece of machinery because when the tax cuts went in and deregulation. i can add an employee. you see suzy over there. she has a job now because of what

chevron and occidental fell. joining us now is rob fumel, portfolio manager at tortoise capital advisers. welcome, rob. nice to have you here. >> thank you, sue. >> do you like this deal? >> yeah. we think it's a great deal for both parties and i thugh transformati will build a cash flow over th nextew years and the buildin scale, reducing operations and operational expenses are key to help bring investck to the energy sector there's a lot of gre going on in the u.s. sector and investors haven't rewarded that yet. >> not yet. you own both of those stocks, correct? >> that is right, sue. we own more anadarko than we do chevron, but we do own chevron as well. >> the deal making in the oil and energy sector hit a ten-year low in the first quarter because of the steep drop in oil prices. do you think we're going see more deals now that oil has really reversed that t? >> you know, i think what you have to look at is t is right for consolidation and the reason i say that is becau exxon and chevron want to ge like the p

players in chevron and song. while anadarko might be a special situation, incremental interest will be focused in the permian. vonnie: 39% premium, what is the street saying about that? -- the stock of anadarko have been falling. a big pullback in emp stocks in the past month. my colleague covers the emp's. he thinks there could be some consideration that this could be a higher premium. when we look at the valuation, if they hit the 2 billion target in synergies this deal could be as accretive as early as 2022 two earnings and cash flow accretive even earlier than that. a lot of those synergies are low hanging fruit. half of it is capital spending that will be cut down because of capital efficiencies. questionse of the that is raised from time to time about this space, shale gas and oil, is whether the reserves are accurate. -- concerns about whether there are still some unknowns around the geology, about whether we can trust those reserve numbers. been the gift has that keeps on giving for chevron. they keep rai

she's looking at me like, chevron, i just stopped at the gulf station, what's wrong with chevron? i think conservatives are speaking languages that people understand. so what a better idea would be to say the trump administration has cut regulation, has made it better, the only thing we can now do is let businesses operate more efficiently, let them operate in the way that they should safely, economically and do the things businesses do. i've never met a business that wanted to hurt their employees. i've never had a business that wanted to hurt their bottom line. if they did, they didn't stay in business long. why don't we just go to the same people and say, you know why we talk about deregulation? washington, d.c.? because last week, i was talking to a business owner named jim. and jim was looking at it, and he said, i'm going to be able to add a new piece of machinery. because when the tax cuts went in, and deregulation, i can now add an employee. so you see suzy over there? she has a job because of what you did in washington, d.c. it's time we take the message that we all know

chevron is down 3%.f course illustrates what has been going on in the oil sector where oil prices are up and the u.s. is going to be exporting more and more. joining us right now, anderson capital management cfa, peter anderson. thanks for joining us. i want to ask about broader markets. first, let' talk about the deal. what's your reaction to chevron acquiring anadarko? i know this has been talked about for years. chevron has been looking at anadarko. i remember years ago, looking at -- rumors of it. >> i think it's a super positive piece of news. i think it shows that the economy is super strong instead of spending a lot of time thinking about the trade wars, it's finally nice to see a good old fashioned deal that makes total sense. anadarko's balance sheet is weak, chevron's is stronger. it's a great marriage. maria: chevron says it's going to be accretive to free cash flow and earnings one year after the close. they're expecting the transaction to close in the second half of the year, proposed deal f

about chevron, she says i stop at the gulf station, what is wrong with chevron? we don't understand it anymore. we have to make her the conservatives are speaking languages that people understand. i better idea would be to go in and say we at this and administration have cut regulation and made a better. the only thing we can do is that businesses operate more efficiently. get the regulatory out of the problem and let them operate in the way they should. safely and economically. let them do the things that businesses can do. i've never met a business and my life that has tried to hurt their employees are bottom line. if they did, they do not stay in business long. when i go into the same agenda and people and say, you know why we talk about it -- deregulation? last week i was talking to a business owner named jim. to be able tooing add a new piece of machinery because when the tax cuts went in and when the regulations that it enough to go through another step, i can at an employee. susie has a job because of what you did in washington. it's time we started taking

is this deal enough to beat out chevron?adarko had oxy's deal on the table when they decided to go with chevron, so it was not enough for that board. occidental is trying to make the board feel uneasy, pushing them to offer more. so far chevron has been saying almost nothing. they say they will see the deal done, they have not made a counter offer, and that is what the market is looking at now. alix: it seems like it will boil down to synergy. i was talking to vicky yesterday, that is what she was trying to sell to investors. the ceo yesterday was saying that there are more synergies for oxy. do you feel that is true? >> there are more interesting synergies. if you are occidental, you are trying to create a pure play in the permian. trying to get in that sweet spot in terms of the world's largest oil field. what anadarko offers you is more acreage in the permian, as well as more diversity in colorado. you get more on shore shale, which will be helpful. what anadarko offers that occidental does not want is offshore oil and an

chevron down.st day and about 14 months, but you're still looking for crude seeing its best week since 2016. you talk about that powerful rally. banks definitely going to help that sector as well. jp morgan, wells fargo all rising. jp morgan really crushing across the board, and good readthrough through in some areas on wells fargo. coming up, it is not all about the losses. tellinging for an ipo, investors to focus on the platform, not on the money-losing ride-hailing business. this is bloomberg. ♪ is bloomberg. ♪ viviana: this is "bloomberg daybreak." today a big takeover in the energy industry. chevron agreed to buy anadarko petroleum for cash and stock, seen as a bet on the permian shale oil region and liquefied gas. seven dollars a month for its new streaming service is how disney is set to take on streaming giant netflix. disney+ is not expect it to break for about five years. it will feature an arsenal of kids friendly programming from the disney archives. , starney pixar, marvel wars, natio

always had its eye on chevron? who else was buying and was it kind of locked up? >> so, if anadarko's selection was based on who can execute mozambique and the permanent basis assets, that would put the oil majors in the lead it's a small universe of companies that could do that and sort of goes around so now form a plot there and so there's synergies to capture based on the fact that now this big block of land is connected by one owner. >> if you're an investor and thinking, i want to partake in what could be a wave of consolidation, do you buy exploration and production names, is that the way to go >> i think from here, to be honest with you, this chevron combination feels a little bit unique just in the sense that what the value that chevron can bring to the asset base from the oil major standpoint, more likely to see consolidation among private, target private companies as opposed to corporate mna. within the independent space, that's where you might see some additional mna the reaction of the market is pretty

chevron on this major deal to buy anadarko, down by 5.3%. let's continue with more from the imf world bank spring meetings. tom keene is there with a special guest. a special guest. thank you so much. to all of you worldwide, an important conversation on the ands of politics, finance, borders and tension. that can only mean austria. austria is at a point and its history where they are front and center on these themes. with our stuff finance minister finance mr. of austria -- finance minister of austria, hartwig. -- hartwig loger. right now, your politics are remarkable. how does your finance fit into their coalition and populism of austrian politics? loger: the politics are strong in a conservative way. we first have the long 65 years and will reach a budgetary surplus which was down the last time in 1954. over this time, it will be the , so out ofin 2019 these, we try to stabilize and look forward to seeing enough money for investments in innovation, things like that. tom: there is a wonderful monograph on populism, but it is not a thing no

morgan, disney, apple, chevr chevron. jp morgan chase kicking off bank earning season with their quarterly numbers. and ceo jamie diamond offering a dose of assurance. saying, quote, even amid some global geopolitical uncertainty, the u.s. economy continues to grow inflation is moderate, financial markets are healthy. do you agree with jamie diamond that everything is awesome >> absolutely. we've been telling our clients for some time that the growth and global growth is made up of the usa and emerging markets jamie echos what's happening in the u.s. this takes off the fears, the rhetoric that everyone is talking about about inversions, recessions, and getting back to business of high quality companies delivering high quality earnings. >> you know what they liked more than the comments? the numbers. up 4.5%. >> the consumer bank at j.p. morgan saved the day that's where the growth is trading wasn't great investment banking off to a slow start, no big deal in the meantime, consumer bank is on fire because consumer confiden

ifdarko board is considering it is superior to chevron, they may need to move forward curve chevron willto counter offer. vonnie: are there any negatives to this, rachel? rachel: occidental will have to take a shareholder vote, and the brookshire hathaway deal is diluted, so there is a question as investors will be upset with how this is playing out. but right now, it is a coin toss. guy: chevron is trading higher. is the market saying it would like it to walk away? rachel: that is how people are leading that. meanwhile, you know, anadarko is waiting for something on occidental. if we do see occidental or anadarko side with occidental saying it is superior coming chevron decide it is out, we will see if shareholders approved. guy: rachel, great stuff. thank you very much indeed. let's continue the conversation in a moment. from london and new york, this is bloomberg. ♪ the latest innovation from xfinity isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a

doctrine today, and we are really concerned the supreme court needs to overturn chevron. i agree. what does it matter at the waffle house in gainesville, georgia? i go into the waffle house and say, the chevron doctrine is causing your business problems. joanne, did you know that? it is tough. joann is having a great waffle at this point. she doesn't care. i tell her your business is going to be good, i'm a republican, vote for me. easy vote. i think conservatives are speaking languages that people understand. so what a better idea would be to go in and say, you know something, over this administration, the trump administration has cut regulation. made it better that the only thing we can do is businesses operate more efficiently. get the regulatory out of the problem. let them operate the way they should safely and economically. let them do things the way business should do. i have never met a business in my life that actually wanted to hurt their employees. i have never met a business in my life that wanted to hurt their bottom line. if they did, they didn't stay in bus

chevron is out with earnings. they beat, as opposed to chevron. announcing the chevron earnings. occidental could up their bid. we have not heard from chevron about whether they would up their bid, but we will be listening on the earnings call. chandra is here to take us through the headlines with chevron. emma: it beat earnings per share beating estimates. seeing a little bit of weakness in the shared reaction in terms thoughtrices, also we over at chevron that worldwide production came in lower. weakness downstream. that is something similar to what we saw at exxon, seeing a bigger drop for exxon because there was a much bigger miss their. net income fell from 49% year on year. the real weakness was downstream , refining and chemicals, they say all loss of $256 million. the issue is margins. the company had warned downstream was going to be an issue, but the miss there is incredibly rare and will lead to investor questions. upstream should be doing much better for both of the big oil companies. since the are 40% christmas eve low. why higher cru

>> occidental and chevron actually are the two oldest players in the permian basin what chevron saidthat they are buying property that abuts their own. so physically you are buying your neighbor's house because then you have the same trucks and same people and you can move things around. so they are buying land physically close occidental i'm sure would be right there as well. but there also an l&g perspective. that is a massive play >> and what do you think about the macro setting here coming into this, we were all talking about how much oil was up although on a 12 month basis, a little bit more even we've talked about how investors were far more optimistic >> and i think it is an interesting story because what we're seeing is the majors go more into the permian. since 2014, investment is going into the short cycle projects. we're really seeing them step up their exposure to the permian. not in the long lead time projects not in the deep water projects so the two questions, first of all, deflate the cost even further. so it will drive down costs to such a level can opec even compete

faber's point earlier is that chevron's unable to take its time some cash and some stock, but chevron'sdecides how or if to respond to this. >> and they get even more time now that occidental is trading -- >> lower. >> -- the way it's trading. >> right. >>> it has been a busy morning for earnings reports dom chu has a look at some of the big movers of the morning. and dom, lots happening today. >> lots happening. i mean, certainly with regard to dow components you mentioned what's happening with boeing, but we'll start with another dow component, caterpillar. those shares up just around a percent or so, maybe roughly 0.33%. 100,000 shares, plus premarket volume after the construction equipment maker posted better-than-expected profits on sales that narrowly beat analyst estimates. they were helped along by better demand for heavy machinery and equipment in north america, so shares wavering a little bit we also got shares of at&t, now down around 2% or so, over 300,000 shares of premarket volume the telecom and media giant posted earnings in line with expectations, but total revenues jus

there was interest in terms of going up against chevron.y're one of the biggest players in the space. what are the risks of going into the big public fight with the company like chevron. vicki: we compete with the majors in the middle east and everywhere we operate. sometimes we beat the majors and sometimes not. if you look at our operations in oman, we just picked up four blocks and we picked up a huge block in abu dhabi, 1.4 million acres, which is the equivalent are permian resource business. we are competing with majors all the time. what we feel is back your point. it is not size that matters, it is competency and the ability to execute and deliver results. we have a reputation in this industry for delivering results and we achieved what we set out to do. that is why we are a partner of choice in the middle east, that is why oman, the government loves us. abu dhabi, we've great relationship. we deliver. alix: what about other parts of the deal that we haven't talked about like mineral rights? that is a juicy source of cash. do that he

>> if you look at some of the companies, the exxons and chevron, they have the flashy acreage totalshalf plus. really we look at two of this thifrds, maybe a half of two of this thirds that they're going to be able to drill on when you see some of the big insulated numbers, you really want to look at the core acreage. a lot of these companies tend to be lower, which is why we're going to see much consolidation in this sector over the next six to nine months we're going to see another land grab in order for these companies to consolidate acreage. it's a lot -- it's pretty checkerboarded for a lot of these companies. they want to drill longer laterals, and so this is what we're going to be seeing this is one of the reasons we saw the anadarko-chevron merger. >> having a bunch of land is nice the second most important commodity, if you will, is people is it not? having the people that drill and work these rigs, and that's what made anadarko so attractive, is it not, that a lot of their acreage was operating. they've already got people and equipment on it. if you don't have people and eq

nobody believes if chevron comes in with a bid, it's going to top occidentals. nobody believes that, that i've talked to. they believe if chevron does sweeten the bid, it won't be above 76 a share it will be less than that because they viewed their equity, their stock as that much better than occidental >> guys, thanks. brian sullivan, josh silver sateen, thank you so much. >> go to aditi >> reporter: the fda announced it's authorized marketing of heated tobacco products like phillip morris products by altria, basically means it will allow altria to sell in the u.s. this is a huge moment for altria which is increasingly been investing and placing bets on the alternative tobacco products it's one, juul is another. altria is 35%, has a 35% stake in juul. overseas, iquil in the market by phillip morris international called the great unsmoke shares are up now. altria 2%. back to you guys. >> thank you very much adi aditi. >>> to a developing story. violence in venezuela as opposition forces clash with those loyal to nicholas maduro a eamon javers at the white house.

we're waiting to see what the anadarko says about the bid that is 15 % better than chevron's. chevron can enrich their deal, maybe take it to within close range of oxy's and have much less risk around a shareholder vote the one undermining aspect is it's subject to shareholder approval for oxy we've seen oxy be put on negative watch you're seeing impacts on the bid on the financial setup it's got to go through a shareholder vote which we think will be a yes on the part of chevron shareholders we're uncertain if oxy shareholders will be convinced it's possible the oxy management makes a compelling argument. >> quick prediction, who ends up with whom? >> i think we'll probably see chevron go higher and ultimately it's a question of how much higher oxy goes. they're already taking a major risk will they ultimately go for the knockout blow? i think chevron's next bid will be higher but a last and final and then it's down to oxy and how much risk they're prepared to take. >> paul, thank you >>> kourtney now with a market flash on macy's. >> shares of macy's are moving higher on a r

and i'll talk to first horizon and after chevron could other oil stocks get on the action i'm eyeing merger and acquisition in the oil patch so stay with cramer for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. >>> something you often ask me on twitter, how do you know when you are dealing with a real come back in a once beaten down stock as to opposed to a flash in the pan that could vanish under your feet and that is the question we need to ask about an iconic name to dredge up here, campbell's soup. the campbells pork and beans that is where the symbol comes from and you know from the namesake v-8 and swan son broth and the brand. here is a company an absolute mess we know that the pantry place brought in -- bought in the center of the aisle have been struggling for years as younger people like the stock that -- a french onion s

the chevron deal. chevron might make money for doing nothing. david: thanks a much to tina davis. now let's get a check on the markets. the s&p is hitting a record high. here is abigail doolittle. gains, the do have s&p 500 at an all-time high, the nasdaq also hitting a high. there is a bit of a risk on considering haven bonds are low. the 10 year yield up four basis points ahead of the fed decision on wednesday. if we take a look at the chart of the s&p 500 to put that into context, back in january that was the all-time high. volatility last september and all-time high, the big selloff. the interesting thing is over the last 18 months, the s&p 500 flat near those all-time highs. interesting to see whether or not stop investors continue to push the index higher. let's take a look at what is working. 1.4%.nk index of the chip sector not doing as well. if we take a look at the three-day chart of the philadelphia semiconductor index , we see a decline down 2.5% considering it as a leading index. finally,

morgan waiting on earnings, dow industrials chevron, is -- >> 3.2?ting on chevron the market is coming back from lows here, with gdp number out, up 3.2% much better than estimates call for growth 2%, all the way to 2.9% very strong for the first quarter we had a government shutdown, we had worries about slow growth, and coming off a very -- volatile end of year last year markets trading volatile and down the end last year first quarter gdp, bouncing back up 3.2%, is the number that is moving markets this morning look at futures in positive territory across the board, dow industrials up 9 s&p 500 up for you and a quarter nasdaq up 33 points first quarter gdp number above expectations, intel exxon pressures on dow industrials however, we are expecting exxon and intel to be lower on heels of disappointments on earnings joining us right now for reaction on gdp number is staefly pomboy great to see you last time you were here you said we are going to start seeing good shoots positive news. >> first quarter number surprise i was this could we would see str

rival chevron beat us but also fell 30% from a year ago pavel mallikanov great to have you with us. what's your take on exxonmobil >> so as you said earnings were hit by refining results, however, you know, i wouldn't really spend too much time on this stuff refining margins are always transitory they were lower than expected in q1 they were higher than expected in q4. i think what's much more important is to focus on the controllable, so production. this is a company that had production decline in six of the last seven years, which is just a horrendous track record. they actually eked out 2% growth this quarter, so that is an improvement but again, after, you know, a pretty awful period, chevron's production by comparison is up 6%, so three times faster but yeah, both companies had soft earnings due to the refining margin. >> exxon is underperformed and chevron at this point, pavel, how does that calculus change at all should the anadarko deal go through? >> so i've been saying for the last two weeks that chevron did not need to buy anadarko there was no necessity for it. i do not

chevron has that gulf of mexico that lng, the big integrated giant.aper, it would seem to be a little bit of a better fit and it's really just shocking to see this kind of bidding war in general, and something that the emp sector hasn't been this century, really. we've known occidental was involved in this possibly for a couple of weeks now. now it's becoming public, stepping up in a bigger way. >> it's unusual to be a superior offer, from a fiduciary point of view to maximize shareholder value, if one bidder says we pay you $76, the other is $65. you have to make a pretty strong case that the lower offer is worth the higher potential stock upside i would assume so the numbers here are kind of interesting on the one hand and the other hand, jordan, i'm curious, is anadarko such an extraordinary asset as we just heard the ceo of occidental describe and if so, why haven't they traded higher than they are now? >> well, if you're a believer in the permian, you'd say it's worth it but there's anna edwar edwards. there's been an argument that it's hard to f

with this benefit anadarko, to shove chevron aside, chevron takes $1 billion and walks away?zie: this has been going on for a couple of weeks now. this occidental offer came under the table last week. it is a higher offer. there is a stock component here. but as you said, there's this $1 so the ballk fee, is in its court whether it -- whether chevron wants to raise the bid or decides to cut its losses and walk away at this point. guy: chevron is higher today. how should i read that? always said have that costs matter, so the ball is in their court and the get to decide what happens next. what a lot of analysts are saying is they don't necessarily have to meet this bid and go over it. they've got stock on the table. they also don't have to put this to a shareholder vote. even if they don't have the money put into the bid, they might still come out of this successfully. vonnie: chevron has four days to decide. meantime, de shaw has been trying to encourage an open sales process, according to those who spoke to bloomberg. what does that mean? lizzie: the major shareholders just

>> i own conco i own chevron. >> this deal really shocked people, even the bulls on chevron.re so many. they have colorado, gulf of mexico, mozambique, a lot of exposure that isn't as attractive when we heard it was anadarko, i was happy but shocked they didn't go after concho >> what's your view on them? doug, excuse me. doug, not michael. >> yeah, i think that's possible animal spirits have been rekindled. i don't know the specifics of the deal >> and stephanie, back to whether there's a broad range of potential suitors. so are the banks with the movement as well >> yeah. and that comes back to it's good for the bank earnings. it will help the banks no matter what that's why the stocks have rallied. to your point it's a show-me group. we'll see what happens next week i feel pretty good by the way, m&a is a direct reflection of how confident ceos are. so to the extent you see m&a pick up which we have been, obviously they're feeling better, much better than in january, february and much better than the second half of last year. >> i wanted to hit campbell soup because it is

presumably chevron has the bigger balance sheet. will that be decisive? simon: most likely.e. if you look at the reaction that has come through this morning from the initial analysts and comments that followed the news, there is questioning about how much further chevron would want to take this. they have the firepower and the capacity to do this. they can probably top occidental's offer and still make a decent return. what is being notable is a lot weanalysts are saying question the benefits of any bidding war breaking out. we have a deal that has been agreed, maybe let's stick with this one. vonnie: wise anadarko doing this? it obviously needs something and is getting a boost in terms of share prices on the idea that it is looking. if it is not going to win and it is too expensive, why do this? simon: it is a great deal for anadarko. as occidental said, if you look at their share price, in the last few weeks it has gone up. it had been underperforming. for occidental, putting the companies together takes two companies. they are large but they are in the second-tier. it cre

chevron shares down, anadarko higher. this gives chevron a foothold in shale.f you thinking of permian basin is over, done, tapped out, traders telling me today ain't the case. in fact this could be the start of a major consolidation in the industry. the companies that could get acquired here, showing them right now, noble, pioneer, concho, i will add two other names i just heard from a trader wpx energy and devon energy. who could acquire the companies. chevron, royal dutch/shell,bp. occidental came out for a bid with anadarko at $70. shareholders looking what happened to our bid? probably a lot of conversation going on. we haven't heard any other news on this so far. traders telling me this is a vote of confidence for a sector that has been under pressure with pricing. prices have come up lately and now you're seeing what could be the start of a wave of consolidation in shale oil players throughout texas and other parts of the u.s. back to you. charles: gerri, thank you very much. i want to bring back rob luna and eddie gabor. the problem with the people mean

agreement will boost chevrons natural gas and shale business in announcing the acquisition chevron said it would issue two hundred million new shares and use a billion dollars in cash to make the purchase they will also take on fifteen billion in debt the deal is one of the largest in the oil sector since the two thousand and sixteen acquisition of b.g. group. by shell for fifty billion on the news anadarko stock shot up to sixty five dollars per share nearly forty percent higher than thursday's closing price chevron has made a name for themselves with eight thousand gas stations in the united states and eight of their own refineries and the darko on the other hand has focused their business on production uproot oil and natural gas they sell their product to other companies to then refine the product chevron stock was down roughly five percent following the announcement of the deal. tesla's model three was supposed to be it was supposed to be the affordable tesla it's just thirty five thousand dollars for it was a relative term this was the vehicle that would make electric vehicles more

it was ready to bid in the mid 70s to acquire anadarko petroleum until chevron came in and announceding they've struck a deal. what's it mean for the occidental petroleum and deal making in the sector roger reed, securities welcome. >> thanks, kelly good to be here. >> why do you think this chevron was so interested in anadarko's assets >> coming straight off the value, obviously matters synergy is a huge part of that what you pay for the company and then the other thing is the nice overlap they have. good overlap and also in the gulf of mexico some other project in their port foal wroe. >> anadarko shares trading around $62 occidental reportedly willing to offer the mid 70s, roger why should anadarko shareholders not consider that a superior offer and what would that have done for occidental? >> well, first, let me just say, you know, no confirmation from occi any sort of bid was made. number one, a little careful on that front but if you were to look at the opportunity for a company the size of anadarko and the size of occi relative to the size of chevron and anadarko, delusi dilut

chevron will take over anadarko. the chief executive of chevron will join us in the 11:00 hour.jor bank, jp morgan is out with earnings. we are digesting them now. i believe we have a 2.65 statistic, all of this coming within the shocks of october and december as well, and the equity market recovery. on first look, we have a lift to the market. we have seen that over this extraordinary bull market, up 20% on the nasdaq. francine: the first quarter earnings-per-share coming in at $2.65. first quarter a little better than expected. of $29.3 an estimate billion and we had $29.8 billion. beating estimates at 3.7 billion as opposed to 3.6 billion. jp morgan gaining some 1.5%. important, especially when you look at some of the rivals and what they had in that unit. tom: this is the modern distribution of finances. dimon the pdf from james and team in about two seconds. that is extraordinary how we used to wait for the conference call. in the first quarter, we had revenue -- record revenue. he goes on with a general discussion. will continuease to use its capital and expertise to drive

prices have been rising, so why are profits exxonmobil and chevron falling? >> cut in amazon is spending big money to get packages to your door in one pressure on up t up th its rivals. >> those stories on "nightly busi report" for tfrs ay, april 26th. >> good evening, everyone. i'm kelly evans and tonight for sue and bill. the s&p and nasdaqhe finished week at all-time highs thanks in part to the economy which is powering today we learned that activity in the first quarter was a lot stronger thapected, shaking off a rocky finish to 2018. the first read on gross domestic product grew at an annual rate of 3.2% a wellve projections of 2.5%. in fact, it's the best start to a year since 2015. you know, gross domestic product, is a value of all gds and services produced in the u.s., rising exports, falling imports and higher inventory investment dve muchf the growth. that helped offset weaker gains and consumerpeing and business investment and that report gave the major averages a lift. the dow jones industrial average was up 81 points. the nasdaq added 27 and the

in the meantime, analysts wer chevron ng today that will sweeten its bid.o rose sharply while occidental and chevron fell. >>> the ceo of biotech company idea on how to fix the nation aging infrastructure. in an op ed piece in today's "new york times," the doctor proposed for the next threeme years everycan public company should issue 1 tof its equi a newly formed infrastructure bank that would be used tost fund cction projects. he said his idea would ise $1 trillion and he explained his reasoning during an interv >> if you walk around our lab, we have some of the most p innovatiple in the world and we as a compa like to provide them with great infrastructure so we can be max mally innovative and we have great potential and the infrastructure is holding us ba and i would like to see that improved. >> joining us toespond to the idea we are pleased to welcome, illiam george, a former ceo of medtronic. he is now a senior fellow at harvard businessys school. alood to see you. thanks for joining us tonight. >> you're not exactly enamored with this idea. why? >>

mike: well, it's a great time to be chevron.reat investment opportunities around the world. in the u.s., our focus really is in developing unconventional resources in the permian basin where we're seeing tremendous growth. this brings with it oil and gas, and gas is seeking world markets. last year we produced about 300,000 barrels a day there. by the end of 2020 we will be at 600,000 barrels a day. 2023 over 900 barrels a day. some of that could make its way into l.n.g. plants and around the world to serve a growing demand for liquified natural gas. juliette: mike, the cap still below mid 2010 levels. are there concerns you're perhaps underinvesting? mike: oh, i don't think we're underinvesting at all. we have a robust capital developments and we have a growth forecast of 3% to 4% compound annual growth for the next several years which is stronger than we've seen in the last decade and it's really tough in our business given the decline curb in oil and gas production to deliver steady growth like that. 2/3 of our capital delive

tonight a $33 billion energy deal and chevron buying anadarko petroleum and it could light the whole sector on fire we start with today's market rally and the dow surging nearly 300 points with strong data out of china gives investors a sense of euphoria and here's what sparked the rally from jamie dimon. >> you look at the american economy. the consumer is in good shape. people are going back to the workforce and companies have plenty of capital and it's still up year over year. there's no law that says you have to stop we do make lyft and look at all of the other things and geopolitical issues and the liquidity and somehow causes a recession, but it may not be in 2019, 2020, 2021 >> and just like that, everything is awesome again. the s&p 500 about a percent away from all-time highs as we head into earnings season, the depths of it, where expectations are low and the fed's on hold even as the economy remains in good shape so is everything awesome now? what are you buying now? >> that's my favorite. >> it's your ringtone. >> it's on my spotify playlist >> who sings it? >> the one yo

and darko petroleum was already in fairly advanced talks with chevron for a sale at thirty three billion dollars occidental has now up that price to roughly thirty eight billion dollars at seventy six dollars per share eleven dollars above chevron's bid the broken engagement between anadarko and chevron would include a one billion dollars fee interestingly a spokesperson for occidental expressed frustration that anadarko had not informed occidental of that provision. the prize in the fight is a company with extensive global holdings including key asses in the much discussed hermes and basin in west texas a primary site of the or oil shale boom shares of anadarko were up more than twelve percent on the news while the stocks of the two other corporate suitors fell. as we reported yesterday to trumpet ministrations decision to end all exemptions to their defacto blockade of the rainy and oil sector seemed to move markets with prices rising to recent highs the policy change affected five countries including major consumers china india and turkey which had been previously granted waivers happ