in deal activity as the future for oil gets bleaker ryan lands mentioned this as a reason for the concho>> we recognize it will go up and down opec, what do they do, what do the russians do? what does the u.s. convention do that's all prices. what we created is something that can operate through the cycles and embrace the volatility that we know will happen in this business. it's completely unpredictable. >> here to drill down on this deal and who might be next is paul sankey. it's good to see you the last time we talked we were debating on how negative oil prices could go. the environment is better in that regard. what does today's deal tell you? how significant is that? >> well, i think some of the clients are disappointed that we have the best players, one of the best certainly top five players in the permian, independent concho selling for a mild premium levels that are obviously very depressed both in terms of the oil market, but also share prices. so, you know, i wouldn't say that anyone is thrilled this is happening, but i think the responsible people in the room believe that cons

staying with oil, conoco resourcesuying concho for $9.7 billion. that makes it the largest energy deal since the collapse in shale demand. ryan, it is always a pleasure to talk to you. it was long in coming. everyone asking, what are you going to buy? tell us how you came up with this deal. >> it is great to be with you again today. we have been talking about the need for consolidation in business for quite some time. we need to put a value proposition together that offers investors a different way to think. we have done this with a transformative acquisition with concho resources. this brings in a bunch of low-cost supply resources government 23 billion barrels into the company. it is about a super strong balance sheet to manage the volatility we have seen in this business. it is about how you allocate capital for value, not for growth. it is distributions we were going to give back to the shareholder. it is about having a sustainable business. the deal takes an energy transition that we know is coming for our planet. alix: can you give us insight

there are not that many companies like concho that one may want to buy.t puts significant pressure on the smaller names. you say there may not be much interest but they won't have much choice. diamondback could go it alone depending on how they scale it. of everyone will need a size a conoco or exxon within the permian basin. it is the smaller players that will get squeezed most. they are the ones that won't be able to fund their assets, so you may see more action. it is also about shareholder reaction. deals have been basically no premium or low premium. zero or below or a tiny bit premium. tos had a 50% premium october. that is quite manageable. analyst were looking for a 20, 20 5% premium. how many more companies you can buy at that low of a premium, i don't know how many there are. vonnie: great interview there. thank you, alix steel. time for our stock of the hour. halliburton had another weak quarter but is optimistic about a may be in place. kailey leinz is looking at that. halliburton posting earnings above analyst expectations, granted, at $.11 a

. >> when you go to different websites and concho. one of the best there is what they show you right up front is, look, here's how we're dealing with pollution here's how we're dealing with the issues out in front saying, listen, less flare is what you see when you're an astronaut and you look over our country and you see these bright lights and they're not cities they are flame and that's burning off the natural gas because we have too much natural gas in the country carl, we can talk about this group and say, you know what, at a certain level it has to be interesting or chevron yielding 7 and the best of the best can they pay that dividend i come back and say people would rather buy 50 times sales than five times earnings in the right group. they would pay, being 50 times sales. hey, by the way -- >> but the companies, jim, will try to continue to position themselves for what is coming. they're going to continue to position themselves as conoco is for this world and it doesn't matter what the government of the u.s. thinks, it's what

conocophillips has agreed to buy concho for $9.7 billion in stock. the drilling -- the deal will create a giant in the largest drilling fields in the permian basin of texas and new mexico. nancy pelosi has set a deadline w president trump stimulusants -- wants stimulus before the election. senate republicans may not go on with something that large. recovery economic continued for the third quarter. it rose 4.9% from a year ago. that is less expected, but higher than the second quarter number. meanwhile, china's retail sales grew 3% in september and industrial production was up almost 7%.

look at shares of concho amid reports co hoping things will pick up by q3.y it we'll be back after the break. boss: you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today. ♪ ♪ ♪ >>> the election is less than three weeks away we are taking a look at the impact each policy will have on different sectors of the economy. today, the focus is on the sector and utilities director roger joins us on the phone. talking about $6 a barrel -- sorry $6 a gallon gasoline and the prospect that biden would ban fraking and has said he would not. how do you see it? >> thanks for having me. we noted theinconsistencies. referring to the fraking ban and that they recently say to that the move towards decarbonizing the world. that is the long-term goal and the difference between the two candidates here. >> how do you see it the longer term you refer to which

concho is one of the top players in that sphere.ng at potentially some kind isbuyout because everyone struggling. the rationale is a currently holds about 170,000 net acres in the caribbean. concho has 550,000 net acres. that would quintuple what they have. you will be anywhere you want to be in the permian. withu want to do deals this attached to them? i would not have thought so. there will be no premium for investors. your pointl see to is cash getting bigger. it doesn't mean it will be an easier market to operate. so youl have to scale could actually do something here at a time when everyone else is not. i'm glad you brought up the premium. they would think the company would want a 20% plus premium. few hundredd by a million dollars. will conoco want to pay up for that 20% premium? this clearly has to be in play. not short of opportunities right now. looking at the imf managing director, she will be joining us. this is bloomberg. ♪ of our top stories today, big bank earnings is a mixed bag. joining us now for more is allison wil

for economies of scale so today's deal is between conoco phillips and concho for about $9700000000.00 in stock which is the largest shale industry deal since the collapse of the energy demand earlier this year so this will create a giant heavyweight driller in america's most prolific oil field so this pandemic induced energy crash and then the lackluster global recovery that has accelerated the push for consolidation across the entire shale patch so we talked about how levered these companies were after years of very cheap debt field growth so this actually this deal actually may signal further mergers and acquisitions in this sector as now idle drillers look for more ways to cost in order to survive so it goes thus far has survived pretty well this oil slump but its growth outlook still remains very challenging 2nd quarter growth production was down about 25 percent as a curb outputs as a response to the lowered prices so this deal between conoco and concho is now a desire to basically bulk up its size and scale and i'll become very important going forward so with this deal it is pro

25 percent as occurred outputs as a response to the lowered prices so this deal between conoco and concho is now a desire to basically bulk up its size and scale and i'll become very important going forward so with this deal it is projected to save about $500000000.00 a year by 2022 and this is the largest deal this year correct yes so that's they're trying to consolidate and really help one another at this point i want to turn over overseas to china's economy it grew 4.9 percent in the 3rd quarter that was below expectations now issue. such as unemployment have diminished household income and shifting consumer behavior they continue to plague the country can the recovery and growth continue are we now at a plateau. what i think most countries would give that back to the 4 percent or what i'm saying growth in the current environment bear in mind law school so that things were up 3.2 percent were still showing much much better than what we saw in that the traction up in the schools so i think overall trajectory is in the right direction things look pretty good overall there was some softne

resources in an all star transaction valued at $9.7 billion concho shareholders will receive 1. 1.46wn concho resources up by about 3.6% david faber first broke in news last week, and conoco's ceo is going to be joining "squawk on the street" at 9:45 eastern time this morning andrew >>> thanks, becky. meantime, plenty of businesses battered during the coronavirus. one you might not know about, though, that's thriving, the market for used pickup trucks, and that's a story that phil lebeau is going to bring us right now in what's become the hottest car on the lot, phil. >> it is the hottest one if you can find one we talked with a dealer just outside kansas city who had a buyer coming all the way from spokane, washington, in order to buy a chevy silverado, why going that far because this is the pickup truck he wanted. he said, look, it has the features i'm looking for at the price i want, even if that price is at a record high relative to other used pickup prices wholesale auctions like this, they see the dealers, this is where they buy used from other dealers. they are paying record p

transformative acquisition with concho resources.brings in a bunch of -- 23 billion barrels into the company. it's about the assets, it's about the superstar balance sheet managing the volatility we see in the business. it's about how you allocate capital for value, not for growth. it's the distributions were able to give back to the shareholder. it's about the sustainable business. is an energy transition coming for our plant. >> can you give me some insight into how competitive it was? there's only a handful of shell companies worth buying. give me some perspective on that. >> this is putting to super quality companies together to create something that's really special in the space. we said this repeatedly in the it needs to be below our $50 cost threshold. that's the kind of resource that gives us huge position in the permian basin. it's a great complement to our existing unconventional position. now a super large position in the permian basin along with our position in california. were one of the largest unconventional producers

and you concho find too much respect so especially through the play against biron but. i think. also you just human being. while on the pitch they might be a bit more than she meant though even manuel neuer looked a bit shaky joining the warm up. while his opposite stefan all to go was all greatest concentration and robert levin dusky when you've got a 2nd book to sleep right in your ranks bobby and cool sports in a goalscoring mood before kick off. times he had to be the fields 1st big chunks of the match it looked like this could really be a game. done then by and feel like we want to be ready as line underestimate us take us completely seriously on top form on the doesn't. feel it felt have no reason to hide they've been undefeated at home for nearly half a year and you could see why. by and took a rather casual approach to finishing. and when they did get their shots on target the famous stefan alter ego was standing strong. and better yet by in his colon told police also are bred for this challenge to the field where a man up and 15. minutes prior that japanese midfielder r

and you concho client too much respect so especially true to play against byron but . i think. also you just human being. while on the pitch they might be a bit more than human though even manuel neuer looked a bit shaky during the warm up. and. fall his opposite stefan all to go was all greatest concentration and who needs robert levin when you've got a 2nd book this league of top scorer in your ranks probably influenced was in a goal scoring mood before kick off. times he had to be the fells 1st big chunks of the match it looked like this could really be a game. done then by feel like we want to be ready as line underestimate us or 10 take us completely seriously in top form on the dials on. bielefeld have no reason to hide they've been undefeated at home for nearly half a year and you could see why. by and took a rather casual approach to finishing. and when they did get their shots on target the famous stefan alter ego was standing strong. and better yet buy ins colin told police also are bred for this challenge bealefeld were a man up and 15 minutes prior that japanese mid

resourceswhere concho gets its revenue. it had been building production year-over-year. production revenue was up $4.6 billion. it is expected to come down dramatically this year given the environment. vonnie: lower premiums needed. i also seem to think it is making sense. kailey: that seems to be the consensus at jp morgan, they say it makes strategic and financial sense. analysts there say it should be a strength merger theory as you say, those premiums are the key focus. bank of america says while they see the logic, there would have to be low to no premium to work. our analysts say they don't see this having low to no premium given that concho does not need a lifeline. it is generating free class flow -- cash flow. they say they are surprised by the timing of these talks. vonnie: investors are certainly willing to place their bets. thank you, kailey leinz. it is time for your business flash with a look at some of the biggest news stories. senator elizabeth warren going out to disney. she criticized the company for laying off thousands as a result of the pandemic. she

buycophillips has agreed to concho resources.akeover will create a heavyweight driller in america's in westlific oilfields texas and new mexico. global news 24 hours a day, on-air, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. the center for politics and public affairs. thank you for being with us. tell us what we need to know about pennsylvania as we look at it election night. terry: let's start with this. as you accurately point out, pennsylvania gave donald trump a victory by 44,000 votes. less than one percentage point. the fact of the matter is, president trump. pennsylvania because his campaign developed what they call and we routinely now called the rust belt strategy. white working-class voters in portions of our state, and the same is true for other midwestern battleground states, where mining and milling were once dominant, and the ancestors of these working-class voters or, and nowal, iron natural gas has become a huge part

and concho resources jumping on a report it could be bought by conocophilips.eal could be announced formally in the next few weeks. moving in opposite directions today. >>> criminals are now targeting retail investors by hacking into those popular trading apps cnbc's kate rooney has details on which app gets the highest price, kate, on the dark web. >> hi, sara. hackers are turning to the dark web where these brokerage account log-ins are for sale for as little as a few dollars your average person can't access these sites without special software we receive aid tour of the dark web. we saw dozens listed from td amertrade to vanguard. accounts on stock trading startup robinhood were listed with the highest price analysts say that could be due to perceptions that robinhood would likely be easier to hack and criminals thinking if they buy those credentials, they're more likely to cash out. s.e.c. warned against these cyber attacks and recommended that additional steps be taken to protect client accounts work from home and a boom in day trading. robinhood telling c

this news follows yesterday's announcement by conoco phillips that it is buying concho for $9.7 billionrge to merge it seems >> pretty much that or the alternative is not good. by the way, a little early rbi on that, that potential deal is also interesting in that it would be father buying out the son. so scott she have fieffield is r of brian sheffield who is founder and executive chairman of parsley energy and parsley is named after their maternal grandfather who started his own oil company decades ago. is that random but interesting >> that is incredibly interesting and will make for an interesting thanksgiving dinner. >> depending on with what the buy sdwrout mout may be, it cou really good or contentious thanksgiving assuming you can get together with people for thanksgiving thank you very much. >>> a lot more to do on that, but right now your next gefrs sa guest says the market is facing three different headlines and once they are good, look out for a good old fashioned rally mark, what are we talking about headwinds? obviously the election/stimulus, you have this pandemic you mig

bloomberg has learned conocophillips is in talks to buy concho resources.he company has a market value of about $8.7 billion. the company is looking to make a big bet on shale amidst a historic downturn in the oil industry. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. this is bloomberg. ♪ ♪ >> we know that the economy is recovering, and we are not certain just yet whether the economy can stand on its own two feet and continue to deliver these strong credit numbers. jonathan: droid cassidy of rbc capital markets -- gerard cassidy of rbc capital markets weighing in on the results and the help we have had from the government. wells fargo acknowledging that helped and attributing their results to the help they have had on the monetary and fiscal side. many others would say the same thing. from london and new york this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. your price action shaping up as follows this wed

conocophillips has agreed to buy concho resources for $9.7 billion in stock.ver will create a heavyweight driller in america's most prolific oil fields, the permian basin of west texas and new mexico. house speaker nancy pelosi has given the white house a deadline and says no more progress on a proposed stimulus package by tomorrow, and it won't get done before the election. it is not just the house and the administration that are involved. senate republicans are bulking at the site -- are balking at the size of the package. president trump is trying to put a positive spin on his fundraising deficit to joe biden. he is telling supporters that he could raise money quickly, but he doesn't want to be beholden to donors. trump's campaign and the republican national committee raised a combined $240 million in september, well sort of biden's $383 million. a cease-fire between armenia and azerbaijan has fallen apart just hours before taking -- after taking effect. it is the second truce brokered by russia this month. hundreds have been killed in the three weeks since

space like four oil companies left in the year >> let's start with conoco fill lives in talks to buy conchorces. has a market cap of just under $9 billion, it would follow the $38 billion takeover last year and more recently, the merger with wpx and chevron's $5 billion purchase of noble energy six flags is cutting its workforce. revenue plunged 96% in the second quarter six flags says that it will offer outplacement services to the affected workers walmart is extending black friday deals, the revamped promotion will offer separate pricing and it will continue in stores shares of allscripts soaring after announcing plans to sell its care health business to well sky. shares as you can see up 39% brian, back to you >> yeah, a lot more deals there. either bankruptcy or being butt out. pretty much two options for a lot of these oil companies >>> on deck, netflix's new membership policy and a vacation for one seven months in the making just some of your top trending stories when "worldwide exchange" rolls on >>> today's big number 984,000. that is how many people were screened at u.s. airports g

he read the reaction, media reporter john concho along with armor white house chief of staff, reinceus. starting with theo, you probably met scully and i think you've met him. he would do a fair job and i would tip my hat to him. i cannot imagine a republican with a similar background being picked by the debate commission to moderate any presidential or vice presidential debate. >> 100% right, sean, i have no problem with scully either but the bigger issue whether his twitter was hacked or not, is the fact he works for joe biden. same reason why you cannot have george stephanopoulos out conducting a republican presidential debate. you are disqualified based on your work history long. the commission here screwed the whole thing up. the way it works is the commission should go to the campaign and say we've got a problem, we want to make sure you were covid negative. show us a couple tests before monday if you can. if you can't show us a couple negatives before monday were going to go virtual. second thing, dnc and the rnc about time that they take over the debates and you can't have it

surge in covid-19 and flu cases heading into the winter >>> conoco phillips finalizing a deal to buy conchoources the merger could be announced as soon as today and would create a heavyweight driller in the permian basin. >>> and american airlines planning to return boeing 737 max to service for passenger flights by december. the airline says the timeline is highly dependent on recertification by the faa "worldwide exchange" is back in a moment >>> welcome back time for your top trending stories, let's start with a beef i had in trying to put the social back in social media. i had a twitter poll over the weekend because i took my kids out to a hotly touted fast casual restaurant and the meal was meh. so i kind of went on a rant. i asked all of you which of these top fast casual restaurants is the most overrated? and the early results were in. 34% of you said that panera was the most overrated of those names. chick-fil-a came in last in other words, the least overrated. bertha coombs has some reaction to that and more of the top trending stories i didn't pick on those -- i want to be clear,

conocophillips has agreed to buy concho for $9.7 billion in stock.he drilling -- the deal will create a giant in the largest drilling fields in the permian basin of texas and new mexico. nancy pelosi has set a deadline w president trump stimulusants -- wants stimulus before the election. senate republicans may not go on with something that large. recovery economic continued for the third quarter. it rose 4.9% from a year ago. that is less expected, but higher than the second quarter number. meanwhile, china's retail sales grew 3% in september and industrial production was up almost 7%. the number of coronavirus cases around the world has now hit 40 million. infections have been picking up in europe and the u.s. midwest. it took six months to reach the -- toto million cases reach 3.2 million cases. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ this is bloomberg. ♪ pres. trump: i love the republicans. they have to learn

i'm using the implied volatilities to sell premium against position i like the move they made with concho it gets them the premium national gas it's the shale play. they've got great technology the combination with the footprint that they've gotten really makes this a pretty good marriage dots that mean it's fool proof absolutely not this is a stock that will move around with the price of oil we've watched oil go from 31 to 45 in a hurry. that's going to be part of story as well. if we get any kind of pick up in fuel, oil prices, we've got a shot for the stock to go a little bit higher. >> let me ask you, i don't know, it may sound like a silly question but why even bother why bother owning any oil stock at all >> yeah. no, that's actually a legitimate question i would say this, i thought we had been pounded far enough in this particular stock and i thought it was maybe at levels that made sense and this acquisition i think makes a lot of sense the combination of that, you throw in the dividend, a lot of different other factors that go into this but selling premium against this makes the

stuart: i find that really hard to believe, joe concho find it really hard to believe, they cannot getdal, come in and tell us about it. >> we heard the word collusion over the last four years, it seems more the real collusion is between one major political party, traditional media and social media enough i'm teaching a class in the stuff, it's at the top of my syllabus, democrats declared there is no story, traditional media ball is in line and does not have the one adjective every journalist should have, curious, these e-mails, can we verify them, is there a story, curiosity is gone and social media, forget about reporting on the story you're not allowed to share the story on twitter or else your account, you can put in a twitter timeo timeout, locked out as kayleigh mcenany in the trump campaign have found out, after three years of reporting on russia collusion which was based on the ultimate unverified document in the steele dossier and reporting on an hourly basis for the media to lecture anybody about pursuing hunter biden which now has people on the record talking about how thos

concho has a higher decline rate. how are you going to manage it? how do you think about that?great question because that goes to the capital intensity. much capital do you have to play back in to make your production flat and how much capital do you have to put in to grow? with this great unconventional production base but with this legacy as set around the world. today, our decline rate is a little over 10% per year. this only move that up to slightly right at 12%. that is over the next decade. that was the conocophillips chairman and ceo speaking to alix steel and guy johnson. let's take a look at how asian markets are faring as we get the to and fro on capitol hill as to whether a stimulus package could come through before the election. we are seeing a sideways trading day when it comes to the nikkei 225. the kospi seeing margin. gains of 3/10 of 1%. putting much waiting -- we are awaiting the minutes of the rba's decision out in a few minutes time. we do know those comments from the governor last week took the wind out of the sale is when it comes to trading. new zealand,

conocophillips, all stock deal to acquire concho. valued at almost $10 billion.lso been there with deals andism pos brett -- ipos pretty strong. does that indicate that this market has resil resiliency, are things positive for a rally. >> absolutely. the market wants to go higher. investors need to sit back, climb the wall of worry and stay invested and enjoy next year and later on this year. i do think we will have a vaccine, we will have better therapeutics. maria: all right. then there's third quarter earnings season, kicking into high gear this week. eight dow components reporting, including ibm, intel, verizon communications. there ar are 80 of companies on tap. it whim be a big week. your expectations and how do the earnings so far appear to you? >> we saw banks report earnings last week, they were better than expected. the previous round of stimulus are keeping earnings afloat. all eyes will be on technology over the next two weeks. technology was one of the main sectors that benefited from the pandemic. if that shows signs of weakness, all sectors will sh