energy front, we had exxon mobil, continental resources, chevron, southern company, alabama power, conocophillips, kindermorgan, and a few others, big ones, great ones. financial services, we have blackstone, stephen schwarzman, paulson and company, citadel, elliott management, vista equity partners, robert smith, fidelity investments, abigail johnson, mastercard, visa, sequoia, stevens, warren stevens, charles schwab, chuck schwab, will be here by phone.

conocophillips, ceo.his is bloomberg. ♪ alix: holding onto the risk unseen that we are seeing today, the dollar now a big decline in the g10 space. i do want to highlight some movers, schlumberger cutting their dividends, part of the story and then procter & gamble actually beating on sales, reaffirming their forecast, delivering a dividend. , that is one of the comforters really highly averaged to test and for treatment that was the headline overnight. markets open, if you're willing to pay for it. coming up, lori calvasina head of u.s. equity strategy, will be joining us. this is bloomberg. alix: welcome to bloomberg daybreak on friday, april 17. i'm alix steel. here's everything you need to know at this hour. >> i think the biggest difficulty domestically speaking is about helping the companies. >> china's economy fell into its first contraction decades in the first quarter, dragging retail sales and investment demand with it. >> it was as bad, actually worse than you expected. 6.8% decline is the wors

conocophillips beating on earnings per share, $14 billion in liquid aity they've got on standby.e cash as a company. the coronavirus pandemic taking a financial toll on the nfl. the commissioner roger goodell announcing staff furloughs, salary reductions and cuts to the pension program. goodgoodell taking a pay cut himself, reducing his salary to zero. he says the league is still preparing for a full 2020 season. the ncaa is now supporting a plan to pay students. the group's board of governors approving aproposal to allow college athletes to receive money from endorsements, social media opportunities or personal appearances, a major shift from the ncaa. they prohibited students from being paid before. the proposed changes once approved by all members would go into effect at the start of the 2021-22 academic year. and finally here's a look at what's trending this morning on foxbusiness.com. united airlines adds safety procedures and ticket changes to airline, going to be blocking middle seats to create more space between customers and will require employees on-board to wear masks

chevron, southern co. , alabama continental resources, chevron, southern co., alabama power, conocophillipsan, pass corporation, perot group, and a few others. big ones, great ones. financial services, we had blackstone, stephen schwartzman, paulson and company, john paulson, said adele, ken griffin, elliott management, paul singer, . .. we said adele, ken griffin, elliott management, paul singer,... we will eat president trump in the rose garden. really a pay—out of praise. from the president about his and his administration's handling of the pandemic. a few headlines to come out of it as well. the fact that he has told his team to halt funding to the who. for their inept handling of the who. for their inept handling of the crisis. listening to this, as indeed yesterday positive press conference, caddy k in washington. almost as if this crisis is over. yeah, it is a true hear about the aphoristic way that he is talking about it. even sent it will get to the who and a second but he said there are at one point the plan for reopening the country is being finalised and he said it is a very det

conocophillips they have the most cash as of the year on any of our list, which is about $8 billion. that $8 billion they have, that is going to go a long way in terms of weathering the storm if they needed and for oil prices to continue to stay low. >> what about companies to avoid at all costs >> we have a few we think are going to be particularly challenged in a low-oil environment those names will be a bit more challenges we are really looking at debt maturity schedules those with meaningful debt maturity in 2021 an our coverage list in particular ox dental and refinitiv are above average and midterm in 2021 >> a great interview we appreciate your time. a couple of potential survivors there in the oil patch >>> still on deck, maybe some happy news involving happy meals and some thank you meals for front line workers from the golden arches. that's coming up >> announcer: today's big number, 89%. that's how much bookings for lyft have tumbled year over year according to data from bookings. ride sharing company is down nearly 22% for 2020. sometimes the challenges of today's world m

energy front, exxon mobil , continental resources, chevron, southern company, alabama power, conocophillipsand a fewration others, big ones, great ones. financial services come , johntone, david fortson paulson, citadel, ken griffin, elliott management, paul singer, vista equity partners, robert smith, fidelity investments, abigail johnson, mastercard, sequoia, warren stevens, charles schwab, chuck schwab will be here by phone. food and beverage, national restaurant association, mcdonald's, darden restaurants, coca-cola, pepsi-cola, , yum brands,subway papa john's, wendy's, waffle house, starbucks, wolfgang puck,, keller, john george, my friend john george, and daniel does you know him. -- you know him. ups, jbnited airlines, -- hunt, crowley, maritime. in telecommunications, the legendary john malone of liberty media, t-mobile, charter , and brianons roberts of comcast. thank you very much. health care, new york presbyterian, jerry speier, hca health care, thank you, sam peered i just met with sam. , common spirith health, community health systems , thank youhealth, 3m for helping us with

like conocophillips, phillips 66, valero, rather than betting on the actual futures market >> good point. when you buy an etf, you are buying a bundle of companies that has been a positive some of these companies may go away you are saying if anybody out there wants to bet on oil, buy a couple of big cap individual oil stocks and maybe avoid the etfs? >> yes avoid the etfs that track futures or commodities if i'm going to bet on an etf, something like xle look as track tiff to me that's something i might dip into today that has had a nice uptrend moving on. trading above its support line that's an etf i might own. that has the big cap names i'm talking about. those top holdings in something likethat have those big megaca names. i'm either looking at those big cap names or individual names like you mentioned >> from a macro market perspective, what a bounce this market has had nobody is saying it has been a good year. with err still down for the year look at the last two weeks, we've done about 60% retracement. not to quote 15th century mathematicians, they have failed in the past. is thi

conocophillips down 2.5%, steve. like he said, hey, this is somebody else's problem but it's not going to trip up this rally. do you think it's priced in? we talked on the show weeks ago that crude could turn negative. >> thinks about the dislocation and why that dislocation is present. it's present because last week we heard enp companies are going to receive money from the government to not produce oil. if they aren't producing oil and you see oil sink the way it's sinking now on this month's contract, then the read enthusiastic is net gas is going to have limited production as well oil is going to have limited production so the underlying companies can rally because the supply-demand lines up for them. when you start to look at where we're going to be out for the actual commodity, it's a disaster going forward there's absolutely no technical support in any of the prize in the underlying commodities at all. so when you look at e and p companies, they are going to rally off the fact, a, there's a government bailout,

taylor: our stock of the hour is conocophillips. said they have seen their america's number three producer and have decided to slash production by a quarter and cap, including suspending fracking in the lower 48 states. i want to take a look at alpo, the company said it would reduce 225,000 barrels a day, that is 100 million barrels a day in canada and 100 million in the u.s.. that is bringing production to the lowest we have seen in years. what that means for the long-term stock price reaction is not good. we are still down 55% for the year. billion,capex by $1.6 $4.3 billion, not enough to help boost the share price. it does represent a total reduction of $2.3 billion or 35% of that initial guidance they were giving. our you can see is where energy comes from in the u.s.. texas, offshore drilling, and then north dakota and new mexico. in international market, prices are not being helped by opec coming out this morning and need under 20st million barrels a day to be produced in the second quarter. we know this broader story about w

some of the oil companies hire by 5% as well, including marathon, conocophillips, and occidental. the dollar index is above 100, at we have crude trading $14.87, so we will be keeping an eye on that. guy: we certainly will. brent bouncing back reasonably strongly as well. oil and gas for the stoxx 600 in europe the lead gainer today. there are conversations floating about about whether brent and go negative. we are trading up 11% today. up 1.5%. the peripheral bond market, i massive story at the moment, as you can see. we saw a huge auction in spain earlier on, following on the heels of an auction yesterday in italy. we are continuing to watch what is happening as we build up towards an eu meeting tomorrow that could barely be make or break. the ecb talking about whether it could potentially accept grade that in collateral. -- italy is facing a rating review come friday. this is a live debate in europe. euro-dollar trading at $1.0852. coming up, we are spending a lot of time talking about what is happening with the oil story. we going to fold that in to what is happening with othe

we're still above $17 a barrel it's helping boost shares of conocophillips let's check in on how those are trading. they are down under 30% this year conoco just reported a first quarter lost that beat estimate this is morning and niensannoun they are maintaining the dividend ryan joins us from houston good to have you welcome. >> thank you good to be here. >> why maintain the dividend i'm sure it require a lot of other things to go by the wayside right now. >> well, we reset ourselves in the last downturn our industry experienced in 2015 and 2016 we have a return to shareholder target to 30% of our cash. that's made up of fixed portion through the dividend and a very flexible portion we suspended that flexible portion and we set the dividend back in 2015, 2016 that we thought we could maintain. we're very comfortable with where we sat >> yeah, ryan it's pretty stunning to say oil can go to minus 37 a barrel. walk us through the scenario now. if crude stays at 10, if it's at zero, if it goes up to 20 or 30. how much of a difference does that mean for your profitability or lack thereof?

conocophillips signaled deeper cuts coming. schlumberger reduced its dividends for the first time in more than 40 years. they say as much as 60% of u.s. fracking demand will fall off the map by july 1. what does this mean for the industry in texas? you're going to have shut-ins, likely a lot of layoffs. this is the whole reason why the president was willing to get behind the opec+ deal. it's the first time in more than 30 years that a u.s. president was pushing for higher oil prices. it's because the situation of america has changed. we are no longer just consumers that want lower oil prices. now there is an industry with millions of jobs connected to it. so it is seismic here in the united states. one thing you are looking out for this week, potential he would get the boat from the texas railroad commission. potentially we could see them pro ration. this is something that a lot of people say is not going to happen. the u.s. is a free market, and we have thousands of producers. but they had hearings for days. some on one side d

on the energy front, we had exxonmobil, continental resources, chevron, southern company, conocophillips, kinder morgan, test corporation, pro group and a few others. financial services we have blackstone, stephen schwartzman, paulson and company, john paulson. citadel, ken griffin, elliott management, paul singer. vista equity partners, robert smith. fidelity investments, abigail johnson, mastercard, visa, chubb, sequoia, stevens, warren stevens great. charles schwab will be here by phone. food and beverage national restaurant association. mcdonald's, garden restaurant restaurants, coca-cola, pepsi-cola, chick-fil-a, subway, blooming brands, yum! brands, papa john's, wendy's, waffle house, starbucks, wolfgang puck. thomas keller, john george, and danielle, you know them. from the transportation world, fedex, fred smith, the legend, united airlines, oscar minnows, ups, david abney, j.b. hunt. why rc worldwide, crowley, maritime, credible, big powerful shippers and transportation companies. in telecommunications, we had the legendary john malone of liberty media, verizon, t-mobi t-mobile,

bet on the biggest xans but you're worried about the biggest oil companies like exxonmobil and conocophillipshy is that? >> because the scale of losing money is epic that the bigger you are the more money you lose faster so the debt will increase massively not obviously against the more powerful balance sheets but absolute terms and the issue is that they don't hedge or chevron so whereas smaller are hedged for 2020 although not for 2021, the fact is that this will absolute losses and absolute deterioration of balance sheet for the bigger names to see the biggest deterioration of balance sheet over six, eight weeks. >> like you said you have been met with skepticism for suggesting that conoco to merge with the likes of chevron. tack about the possibilities of these companies being battered by this price shock. >> well, you know, the first line is always that it's a question of an oil company calling another one to sell itself, not the other way around although didn't quite work like that with anadarko typically deals with friendly and that's where we were coming from on the conoco idea. i thi

abbott, conocophillips, jack in the box, go perot, bed bath and beyond all saying we're not going to provide you earnings guidance for 2020. over in europe, volkswagen and audi also withdrew their earnings guidance. finally, stay-at-home is doing great, amazon has a new high today, netflix has a new high, and activision and slack all doing a little bit better. >> we'll take it bob, thanks so much. well, that bevy of bad news he mentioned is weighing on the market today, and especially on bond yields. the ten-year yield slipping back towards record lows, holding just about 0.6%. and the yield curve has fl flatten flattened, despite the government's historic efforts to keep everything going. does all of this portend another move lower in stocks joining me now with more, john augustine with hunting tonight private bank, and dave hardin, chief investment officer at summit global investments. john, i'll just start with you not great signals coming from bond land. >> no, yields are getting back down to the low end of that range, kelly, as you pointed out, the low is 54 basis points from ma

energy front we had exxonmobil, continental resources, chevron, southern company, alabama power, conocophillips, occidental petroleum, kinder morgan, hess corporation, perot group and a few others, big ones, great ones. financial services, we have blackstone, stephen schwartzman. paulsen and company, john paulsen. citadel, ken griffin. elliot management, paul singer. vista equity partners, robert smith. fidelity investments abigail johnson. mastercard. visa. chubb. sequoia. stevens, warren stevens, great. charles schwab, chuck schwab will be here by phone. food and beverage, national restaurant association, mcdonald's. darden restaurants. coca-cola. pepsi-cola. chick-fil-a, subway. bloom inbrands. yum brands. papa john's, starbucks, wolfgang puck. thomas kel lore. my friend john george, and danielle. you know them. from the transportation world, fedex, fred smith. a legend. united airlines, oscar munoz. ups, david abney. j.b. hunt. yrc worldwide. crowley. maritime. incredible, big, powerful shippers in transportation companies. telecommunications which have the legendary john malone of liberty

energy front, we had exxon mobil, continental resources, chevron, southern company, alabama power, conocophillips, kindermorgan, and a few others, big ones, great ones. financial services, we have blackstone, stephen schwarzman, paulson and company, citadel, elliott management, vista equity partners, robert smith, fidelity investments, abigail johnson, mastercard, visa, sequoia, stevens, warren stevens, charles schwab, chuck schwab, will be here by phone. food and beverage. national restaurant association, mcdonald's, darden restaurants, pepsi, coca-cola, yum brands, papa john's, wendy's, starbucks, wolfgang park, thomas keller, my friend jean-georges, and danielle. you know them. from the transportation world, fedex, united airlines, ups, david abney, jb hunt, yrc worldwide, crowley, maritime. incredible shippers and transportation companies. in telecommunications, we have the legendary john malone of liberty media, verizon, t-mobile, charter communications and brian roberts of comcast, thank you all very much. health care, new york presbyterian, hca health care, thank you, sam. i met with sam.

energy front we had exxonmobil, continental resource, chevron, southern company, alabama power, conocophillips, occidental petroleum, kinder morgan, perrot group. financial services blackstone, steven swarzman, paulson and company, john paulson. citadel, ken griffin; elliott management, paul singer; vista equity partners, robert smith; fidelity investments, abigail johnson; mastercard, visa, chubb, sequoia, stevens, great. charles schwab, chuck schwab will be here by phone. food and beverage, national restaurant association, mcdonald's, garden restaurants, coca-cola, pepsi-cola, chick-fil-a, subway, bloomin' brands, yum brarngsds papa john's wendy's, wolfgang puck, starbucks, thomas keller john george, my friend john george, and danielle. you know them. from the transportation world, fed ex, fred smith, united airlines, oscar munoz, ups, david abney, hunt, crowley, maritime, incredible big powerful shippers and transportation companies. in telecommunications, we have the legendary john malone of liberty media, verizon, t-mobile, charter communications, and brian roberts of comcast. thank you a

spill over effect not only on exxon and chevron, not only energy related players, schlumberger, conocophillips, phillips 66, valero, devon energy, on and on it goes. chemical players and the rest that rely on this, those costs go down they might be beneficiaries but very few beneficiaries to be seen or had today. although i stress we're well off our lows. this seems to be even in the face of opec and opec ancillary players, the so-called plus players, acreeing to cut production by upwards to 20 million barrels a day. to phil flynn now. phil, the problem was even cutting 20 million barrels a day if it were ever past doesn't come close to the lost demand we're looking at, right? >> absolutely correct and the thing you have to realize too, the contract we're looking at, the may contract that expires tomorrow, it is not coming fast enough. the opec production cuts have not even started. they don't start until may 1st. so if you're getting oil today there is no place to put it. that is why we're seeing this incredible sell off. we're going back to look in the history books this i today, neil, maybe

conocophillips down a intiny fraction. that's it.ing in market watcher, danielle dimartino booth. welcome back to the program. i read your stuff. you say there is something very unhealthy here, which is governor has taken over the financial markets, we now nationalized financial markets. explain your thinking please. tell us why that is bad? >> that is bad because we're free market society. i have will answer the second part of the question very quickly. federal reserve act precludes fed holding anything but paper, bonds, backed by the full, faith, guarranty by the united states government. in order to circumvent the federal reserve act fed has placed special vehicles. anything federal reserve not legally able to buy it is housing at the treasury. things such as corporate bonds. we'll get into collateralized loan obligations junk debt. who knows if this coming thursday morning, another bad jobless claims report, if the fed doesn't cross that last rubicon into the stock market. anything is possible that the off-balance sheet structure

think hopefully it's going to stem the job losses, which have been massive in alaska i mean, conocophillips announced laying down all its exploration rigs in our state. hundreds if not thousands of jobs it's good news, but the implementation, of course, is going to be the key. >> how long do you think this lasts? and what do you think this means between the relationship of russia and audi and u.s. going forward during this pandemic or whatever else you think continues over the next few months >> on its face it's a two-year deal it is historic if you look at the numbers. the saudi, which in many ways started this price rout that started right when the pandemic hit, are committed from going 12.3 million barrels to 8.5 million. actually, a little under 8.5 million. that's the lowest level since 2011 that's going to be important the energy minister told us -- there were 13 senators on the call with him saturday, that they're willing to do more if they need to as you know, a lot of this is demand not particularly the supply shock. the supply shock particularly from the saudis started this major