exxon is well known as having been a climate change denier.ent a long time as a corporate strategy saying it is not real, do not worry about it. how do you tweak and alter exxon to make it come in behind what the oil and gas industry has to become? >> that is a very good question, and it goes at one thing because european companies have been quite good. shell was not one of the first comedies that did not look at just thursday until -- look at just their co2 emissions but that of their clients. european companies are really revamping oil companies to become energy companies, to do more renewables and so on, and the american companies are really lagging behind, so if i was exxon, i would work very closely with european companies just to get the right measures in place and to do more in terms of beefing up, finding myself away from an oil company into an energy company. this being said, it is great. at one of the things i would like to see is that we look a little bit more not just at the overall impact, but we should also look at the environmen

what is the new religion at exxon mobil?: there has been -- jeanine: there has been a paradigm shift in energy broadly. there's a focus on go forward cash returns and a significantly high gradient exxon for projects going forward, which doesn't change the track record, so there is a paradigm in energy focused on increased have full -- on free cash flow, focus on discipline. the management team is very focused on reducing at the lower end -- reducing capex at the lower end of the return this year. so we think that the go forward exxon is a much different company than the prior 10 years you just mentioned. lisa: how high do prices have to go before u.s. shale producers come up for marginal u.s. oil drillers actually get back into the market and produce more? jeanine: i think that is everybody's fear, that higher oil prices will come more into u.s. supply, but what we have noticed not just on the u.s. majors side come but also with the large -- not just on the u.s. majors, but also with the large players overseas, it is now or

manus: how does it impact exxon? these activist board members, what do we know about them? got the wherewithal and knowledge to drive a climate change agenda? aaron: i think one way to think about the shift in exxon's boardroom is that it is potentially a crippling blow to the future leadership of chairman and ceo darren woods. he told shareholders earlier this year that voting for the dissident directors would derail exxons progress and jeopardize its dividend. i think investor dissatisfaction with exxon has largely centered on two issues, but they are becoming more interlinked. the issues are climate change and financial performance. exxon envisions a long-term profitable future with fossil fuels and is unlike european rivals. manus: we've had a lot of this news from around shell and chevron. how is it impacting the debate in the industry on transformation? aaron: i think we are seeing a couple of things. one difference that is quite interesting is there is really a contrast between american oil titans and their rivals in europe. over the last few years, we've seen shell,

coming, another blow for the oil drive exxon.heir presence, what that means for the industry, next. this is bloomberg. ♪ anna: welcome back to the european market open. 10 minutes into our trading session. losses this morning our modest. with the energy markets, the investor exxon has expanded its presence. they have gained a third seat within a victory that has already reached across the energy history. joining us now is our and injure editor. good morning to you. -- our energy editor. good morning to you. we already knew that -- now it looks like a third. >> engine number one, they were sort of new ed a previously under proven's player in the realm of investing. they have a connection of .02%, but they were eventually able to amass broad support from major institutional holders, now they have secured three board seats. in some ways, this is quite a humility -- humiliating loss. they look down these investors models. anna: how will this have an impact on exxon's plan? these seats will add up to real change in exxon? >> one way t

we got three board members on exxon. chevron got told to increase their disclosure by their shareholders then royal shell was told by the regulator to up their efforts in moving to a low carbon output. huge day the beginning of the new era it was a new day in terms of shareholder activism they will work together if the board is withdrawn and the management is willing to engage with the shareholders. exxon was laggard in the industry we wanted to get it to turn around you will begin to see that with the new board. >> chris, is it a new model for you guys or is this is a one-off? are you looking at other potential targets? >> brian, it is not a one-off. this is a new element or a new step up in the shareholder act activism we have been engaging with corporations for decdecades. mostly behind the scenes and quiet discussions. if you actually step up and get in a direct engagement and change the board, we have the power to team up with other people and do that i think that's a landscape change not only for us, but for other

those numbers tell a story the commodity is up 11%, 12%, and the energy shares, xle, dominated by exxon and chevron but many others, only 5.6. look at the performance. up 20. stocks are only up 10.4. what about if we started the story the day before the peak of covid. look at the next slide this is looking at the peak in xle before covid you're looking at oil at $47 a barrel the energy sector is unchanged so you've got the commodity well above where it was before the pandemic and yet energy is essentially where it was that's not particularly encouraging. and so take a look at a two-panel chart. the top here is xle, and the bottom is relative performance to the s&p what we know is relative performance peaked back in march, and here we are about to be july 1. energy delivered four months of our performance from november to march, and it's been nothing but a pain or a hurt before that and since. finally an xle chart itself. it had a chance to break out, it did not and then fell back now i think we're stuck at the level that you see there xle and constituent stocks are going nowhere and pro

in the past i liked exxon.hink exxon has to prove it still to me that they're going to be disciplined. that's what a lot of this is all about with the changes in the board room, is will they be more disciplined. they're saying yes obviously bank of america agrees >> pete, forgive me, i hope i'm not putting you on the spoct. maybe you know this, maybe you don't. do you know what calls are shorter dated, longer dated, what the actual numbers are behind the calls you have in exxon? >> oh, sure. what i do oftentimes with exxon, scott, is it is just a different way of looking at things so i don't like to be in etfs. i would rather be in an individual stock whether or not exxonmobil hit is not really the case. it is xle. when people are buying huge calls in something like the xle, when you look at 40% of that representation is either chevron or exxon with that 40% level, i move over and i do trades that are oftentimes over in something like exxon that's what i did here, and they're fairly short term, one month out. >

we're the new exxon.re no longer as bad as we used to be we're like cows are worse than we are cows are bad i mean if you look at clean energy fuels, clme, stock is going up, they renew natural gas, like belching cows, but exxon, belching cows, these things, elmer and elsy, they're worse than we are. but i don't mean to be too facetious. they could say we are investing a lot in it, and larry fink started this think he basically said look, we running abouts >> blackrock. >> we run billions, and he's more important than that he's more important than exxon's board. >> i'm so glad that you went there, with blackrock, and larry fink, because morgan stanley, today says black rock is best positioned to benefit from esg investing. >> they are. >> they put it in sort of one of their, you know, they upgraded it today, or reaffirmed it but it's blackrock, it's schwab and wells fargo as their top picks in the financial space right now, and black rock, they singled out specifically as best positioned in esg and that p

those numbers tell a story the commodity is up 11%, 12%, and the energy shares, xle, dominated by exxon and chevron but many others, only 5.6. look at the three-month performance, next slide. oil, up 20 and xle, the energy stocks only up 10.4. so then, what about if we just start the meter, start the story from the day of the peak before covid. look at the next slide this is looking at the peak in the s&p before the covid selloff, february 19, 2020 and you're looking at oil, it was at $54 a barrel. and it's at $74 a barrel now that's up 40%. the energy complex the energy sector is unchanged so you've got the commodity well above where it was before the pandemic and yet energy is essentially where it was that's not particularly encouraging. and so take a look at a two-panel chart. the top here is xle, and the bottom is relative performance to the s&p what we know is actually relative performance peaked back in march, and here we are basically about to be july 1st and so all in, energy delivered four months of out performance from november to march compared to the s&p and it's been nothin

>> yeah, so, you know, carter actually referenced this with respect to xle he was talking about exxon, chevron and just those three make up 50% of the xle overall we need to look at one of those companies, the largest, exxon. to get some sense of where the fundamental trouble might lie here with their cash flow, dividends are one possibility. debt repayment is another. and investment essentially and depleting reserves is the final choice that these companies have to make. unfortunately, even with oil at these levels, they can't actually satisfy all three of these. exxon is trying to maintain their dividend and their dlevels are above the target ratios that they previously articulated and can't afford to see an increase in their debt expense and not replacing all of their reserves which, of course, if you don't do that what that means is lower production in the future and that is one of the overhangs that you're seeing among the integrated names, in particular. as carter pointed out, these represent a relatively large portion of the xle etf so, if you're playing for a range bound thesi

exxon, what can i say? with that board of directors i am seriously considering that one as a good stock to own >> see we were discussing this and i know you guys on ""squawk on the street" were as well over the last few weeks, that it was a water shed moment. >> yes >> what engine no. 1 was able to do at exxon and get those three board seats. historic, obviously, and may result in more people feeling comfortable buying those stocks. dr. j, you own bp shares you have exxon calls and you are in calls in the xle itself obviously you have the view that tom lee has that trade is going higher >> yeah. global demand, scott, is coming back huge. i mean you look at what opec said, and they're playing this about as well as the fed is playing their talking about talking, because they are -- they did increase production at the meeting, but they didn't, like, just open the spigots. this is the most disciplined we have seened out of the opec plus members, and that bodes well for anybody who is in this energy space. so i

how do you tweak an all to exxon, to make it come in behind? what the oil and gas industry has to become? well, i think that's a very good question and it goes up at one thing because the european companies have actually been quite good. if i look at shell shell doesn't one of the 1st companies that didn't just look at their c o 2 emissions, but also looked at the c o 2 emissions of their clients. b, p has gone down that route recently and to tell us going down that route. and the european companies really are we've, i'm paying the all companies to become, you know, energy companies to do more renewables and so on. and the american companies are really lagging behind. so if i was exxon, i would work very, very closely with the european companies just to get the right measures in place to do more in terms of beefing up of redefining myself away from an oil company to an energy company. this being said, you know, it's great. i was one of the things i'd like to see is that we look a little bit more, not just that at the overall impact, but we shou

exxon makes money drilling for oil. they want exxon to be more woke in terms of the climate.e fiduciary responsibility of any publicly traded company is obligation to shareholders? can that be lumped into that? >> there could be lawsuits. pat toomey who is on the banking committee who has oversight over the sec is already spoken out against this this saying just that. you know, this is not part of sec's mandate. you would have to have suits. if republicans take the house and the senate where pat toomey is in the minority, gensler will have a hard time getting this stuff through. if you think about it, if you worry that the republicans will take the senate, he has a window of 1 1/2 years to get this through before that happens. you know, 2022 elections are coming. pat toomey or somebody else -- i don't know if pat is running for re-election. if the republicans run the senate banking committee, they're chaired by shelby or somebody like that, you can bet that this stuff is going to -- if he tries this, he will -- >> sandra: it's remarkable. you look at the technology industry a

anyone who looks at that exxon board, that board is so committed to the environment i want to buy exxon. i've changed my student on the ones mike worth at chevron. passionate sheffield at pioneer, passionate exxon the most pro environmental board of all the oils because of engine one so these stocks are now up stocks i know we got to move on but i like the oils. those oils that i just mentioned. >> you getting the same message in your ear as mine. let's get to bob pisani pisani good morning to you. >> good morning scott. good see you very modest response to the hotter ppi ten year flattish. the vix still sitting around 16. that is about where it was pre pandemic very modest respond. take a look at the sectors and as we've been noting there's been a bias against cyclical end values so far this month contributing little today but not as much. energy great moves up here new highs in energy. oil holds up near 70 dollars teching flattish but the overall trend has been pretty clear. buy a little more growth and sell a little more of the cyclical value stock here's. you can see what's been goi

your campaign with exxon was successful because you enlisted the help of exxon's biggest shareholdersluding blackrock, vanguard, state street how confident are you that they will go along with other proposals down the road? do you believe that you now have a solid climate change voting bloc so to speak >> well, i think you have to ask those companies how they'll vote in the future. but we've built our business where we can be the tip of the spear. and exxon is a good example of that if there's a company that can do something different to manage the transformation of their industry and we can help that company think about how they deal with impacts today, be they social or climate, environmental, in a way that affects long-term value, we're a purpose-built firm to do this. and so i think we will be, obviously, more successful when other big institutional investors come with us but we have a business that can be the tip of the spear on these things so we look forward to leading into this more activist, more active owner space >> thank you, jennifer much more with jennifer and engine no.

exxon mobil is said to be preparing to cull white-collar jobs.tem will be used to cut 5%-10 percent annually for the next 3-5 years. exxon has 72,000 employees globally as of last year and 40% in the u.s. the company behind soho house has filed for an ipo in new york. membership collective group owns 28 clubs and nine workspaces around the world including a vast hotel complex in london. the company which has yet to make a profit says it plans to use the ipo proceeds to pay down some of its more than $800 million of debt. that is the bloomberg business flash. anna: coming up on this program, the european commission as set to approve germany and italy's recovery plans. we get details on those spending proposals next. this is bloomberg. ♪ erg. ♪ >> international spillovers from u.s. inflation can be amplified if people in the euro area shape the inflation expectations also on the basis of developments in the united states. overall, however, the effects on euro area inflation are expected to be moderate. as the recovery is gathering pace, we need to

remember, exxon mobil is one of the these that consistently grow their different. you can see here, these particular stocks in the basket of n.o.b.l. has pretty much tracked in line with the s&p 500 over the course of last 12 years. generally speaking the performance is right up there in a much smaller portfolio that pays outside dividends we decided to screen to see which one of these dividend payers paid the heftiest, but still are doing so, because they're not depressed. the stock price hasn't fallen so much our screen looked at the s&p 500 aristocrats, different aristocrats. they had to have pod year-to-day and performance, and then ranked them out of that, 26 stocks came through with dividend yields of at least 2% or more with context, 1.5 yield for treasury notes among them exxon mobil the highest, 5.5%. ibm about 4.5% realty income, 4.1%, and 4% for utility and coned. so those are the top ive people always ask, what are the other stocks i i posted them on twi twitter @thedomino >> so that's about what that was. i guess, dom, the question is, are they consist

it matters because exxon failed to generate returns.t doesn't translate into exxon as a different company in five or ten years. >> your favorite picks are hess and royal dutch shell and volero. >> sure. a company did cut the dif dent l dividend last april. the big deal there was $10 billion of additional cash flow to shareholders was suddenly available inside the company to reduce debt by the incremental amount with the recovery in oil prices and shell is doing good things to reduce debt to go back to the bg acquisition they did in 2016. this has been hanging over them for a while. de-leverage has been happening for a while. you have a tremendous footprint in natural gas hess has been a top pick it has performed well in the space. expect it to tinacontinue again the story on hess is the development which is down in south america and the offshore there. we have not seen anything as good as that in my experience in 20 years in guyana the discoveries of production costs of development costs exxon is the operator there. then valero and refi

. >>> exxon prepared to lose a third activist board member and backing another nominee from the hedge fund engine number one >> and where are the regulators? amid the meme stock madness, what can the s.e.c. do to help protect the investors? carl >> guys, where else would we start but amc filing to sell up to 11.5 million shares interesting, pre-market high this morning, david, what is it, about 77, but then we got a hold of this language out of the 8-k which does warn people to be prepared, to incur the risk of losing all, or a substantial portion of your investment >> yes, well, even here, and let's see where it opens today, and of course yesterday, carl, we all know what happened as you can read the language itself, from that 8-k, where they do say the volatility, the current market prices, and trading dynamics, are related to their, unrelated to the underlying business, and they caution you against investing unless you're prepared to incur a lot of risk and potentially lose money and yesterday at this time we were remarking on a stock that was up 20, 30%, appeared to be and skyrock

energy stocks, material stocks, industrial stocks weaker you have chevron, exxon, goldman sachs down tech is helping so you've got intel up and apple up. but we need more from the cyclical stocks that are outperforming throughout the month. value versus growth will be the big debate value tends to be cyclical stocks we're past the early cycle stage where cyclicals do really well we're in a mid-cycle stage that's why we're seeing these big tech names that have been doing much better in june versus earlier in the year. we'll see if that continues. as for the second half of the year, the global story is going to continue improving. and we've seen relaxation on inflation. so far the fed is getting its way. we'll see if that changes. the main paradigm for stocks still remains peak everything. that argues for a somewhat sideways market. the p/e ratio on earnings is 20 times. that's a lot the average quote from the s&p is about 6% a year it's going to be great for 2022, but it's expensive what we need to keep an eye on is make sure that we don't have any problems with two big things that ca

exxon because they're more dependent on natural gas and fossil fuels.rom that. right now you think alternative energy is the future. future is exxon. [closing bell rings] ashley: ryan payne, great to see you, ryan. thanks so much for being our closer today. they're clapping their hands on wall street. the s&p closing in on a record close. that will do it for "the claman countdown." "kudlow" is next. ♪. larry: hello, everyone, welcome to "kudlow." i'm larry kudlow. today, big, very big inflation report. it is all the news and all the rage. here comes inflation. .6 of a percent in may. 8. had 4% at annual rate last three months. the fed's target used to be two. what we had for over 20

hang on to your exxon-mobile stock. my advice. liz: uh-huh.d maybe what will go away are the 20 billion a year in subsid ies from the government in the fossil fuel industry depends on who is in charge. but it is shifting. reporter: very good point. i agree. liz: thanks jeff so good to see you. not often we see jeff flock, my buddy. earlier we talked about the fintech threat to banks, the old banks, but today's countdown closer says do you know what? you've got to still put your money into brick-and-mortar money centers his top two picks to bank on for profits, that's next. closing bell ringing in six and a half minutes, the dow is up 51 , but we are seeing a little bit of this rally puterring, s&p is flat, nasdac in the red by four points. wealth is breaking ground on your biggest project yet. worth is giving the people who build it a solid foundation. wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. wealth is watching your business grow. wor

>> that's an unacceptable answer what do you mean because they're going up >> always right. >> exxon may continue to go up a lot of the names on the list i read you, i can go back through them if you forgot how nice the gains have been, but maybe they will continue to go up, too. >> let's get into the substance of what we're talking about. i didn't realize you were asking me why those specifically, so let me answer that question. marathon petroleum just closed the sale of speedway they have $10 billion that they're using to buy back shares their market cap is $39 billion, maybe it is $40 billion with today's price rise they're buying back 25% of their shares, that's why marathon petroleum. kinder morgan, the answer is they're sandbagging on the dividend the dividend should be $1.25 it is either $1.08 or $1.10. they're playing it conservative. they're raking in cash they're going to do something with it, either buy back shares or increase the dividend either way, they're raking in cash andt is underrawed on a ca -- under valued on a cash bas. they're going to continue to go up so that

and new large projects like the one exxon is proposing is key to lowering the costs and making carbon capture competitive and legitimizing it for the viable solutions of decarbonization. i spoke to bobby tutor and ask him how important this project could be. bobby: what's different is the scale. they are talking about something it's a hundred billion dollars in capital and 50 plus megatons, ultimately of co2 captured. to put that in context it's like taking 15 million automobiles off the road annually or planting trees to cover the entire state of california. alyx: and what are other ways that the industry could make this scalable? what helps? bobby: it's going to take a range of financing. but one of the things that will help is ultimately if there is a price on carbon. in order to drive and return the companies involved will have to price what's captured and delivered. it's also going to take financing from traditional sources. banks send the capital markets. but once again, those will only be available to the degree there is a --. it takes significant government subsidies. much of

they beat -- they beat exxon they beat darren wood. >> it was definitely a moment. darren is so pro-plant >> carbon dioxide. >> yeah, yeah. >> but i just think it's -- that's why this oil is going higher everyone is scared to death. >> cramer's mad dash after this short break. ♪♪ ♪♪ ♪♪ what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change. >>> about 6:30 before we get started with trading at the new york stock exchange, after a tough week, at least if you were long stocks last week you want to get to paypal. >> paypal raised some rates. very, very small i point it out because this morning they talk about how important it was, barclay's last week i want to contrast the banks with the fintech banks both were weake

exxon mobil is said to be preparing to cull white-collar jobs.valuation system will be used to identify low performers and cut 5% to 10% annually over the next three years to five years. exxon has 72,000 employees globally at the end of last year. 40% of them are in the u.s. chinese recruitment firms going private. the transaction at $5.7 billion. a consortium reached a deal to buy the new york listed company for $79 per share. it is expected to close in the second half of 2021 and is set to be one of the biggest buyout of a u.s. listed chinese company this year. the company behind -- has filed for an ipo in new york. membership collective owns 28 clubs around the world class nine workspaces and a home to core retailer. they warned of its indebtedness and said it has to pay down more than eight million dollars of debt using those ipo proceeds. marvelous new series helped downloads of the disney plus cap rise to the top increase according to bloomberg analysis. the series is the latest big splash for the superhero brand on disney flagship streamin

if you are exxon mobil the environments for never want you to see the program at all so there's no. i do not believe that it is a good idea. there is a horrible idea to impoverish the world of energy. but if i wanted to put companies out of business that produce energy, would putting exxon mobil out of business is going to end the marketplace and empower the sovereign countries that are producing energy. i don't have any sort of oversight or transparency into. i don't know what the saudi's are doing. i don't know -- >> who knows what they are doing up there. >> not only do we think that they are bad for the market economy or undermine but they are sometimes going against the interest themselves which is a little crazy to think that it really is true. in this traditional company they said what we want is solar wind and geothermal, we don't want oil and gas. as you alluded to, the most you have poor people in developing countries who want to have light in their village for the first time ever. it is irresponsible i would say to force them to pay twice as much that is less reliable whe

it is a really bold statement, the idea that the momentum players would overweight exxon.hat is an original idea. that is something thought leaders haven't considered for years. jonathan: let's turn to another thought leader, lisa. i thought you ask the right question on the banks. can they succeed without a steeple your -- a steeper yield curve? the response, i expect a steeper yield curve. lisa: you see it start to flatten out a bit. then you see a do nothing, in tandem with this boring theme we also have. there's a question, though. what will cause it to steepen? is it going to be tapering? is it going to be higher inflation expeditions long-term? these things are at odd. jonathan: we will continue that conversation with dan morris of bnp paribas at 8:00 eastern. going into that, futures are up three. we advance 0.0 7%. your bond market is calm. you can stay in bed if you haven't gotten out of bed yet. the euro it touch you weaker -- a touch weaker, down 0.3%. from new york city, this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. the world's larges

oh, my pleasure, exxon. and. well, 1st of all, let me start by asking you about the situation with the corona virus because this is something that concerns people all around the world. not only in russian, brazil, but in many other countries. i know that you have been very, very critical of how your own country under your success are dealt with the corona virus pandemic, but putting present bolton, all right aside and focusing solely on your countrymen on the brazilians. do you think that experience and brazil has had a very difficult experience with, with 900? do you think that experience has been scaring enough to immunize your people again, demagoguery and populism, or has it on the contrary and made them more susceptible to these brand of politics? by your own problem, of the heel. the problem with brazil that our president does not receive back because i am so medicine, you know, those who understand the meaning and severity of the covered 19 pandemic, paid for the president did not purchase and vaccines whe

remember the success in the fight against exxon.an etf. pippa stevens has the incredible story. >> that's right, they're building on the huge success at exxon. they got three of their four members on the board so fast forward a bit of time. they're launching an exchange-traded fund they're hoping through shareholder voting they can exert change across wall street. it's a passively managed fund with an activist bent. that will come from the proxy voting and really taking a stand at all of these companies. >> i'm impressed at the expense ratio. 0.05% is pretty good do we know it will work? we don't know how the stock performance will bear out. >> of course, it remains to be seen they are aiming for a broad audience with that low expense ratio. they're targeting retail investors, so they're hoping to bring this activist-targeted campaign to the mass it is. >> i give them credit for the concept. i can't think of another firm like this, so they continue their maverick-y ways. pippa, thank you. >>> that's does it for "the exchange." we ha

exxon saying the lack of investment will exacerbate supply.initely, it's very interesting to watch. that is it for "bloomberg daybreak: europe." the european open is up next. this is bloomberg ♪ ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network. so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's release from golo. it naturally helps reverse insulin resistance, stops sugar cravings, and releases stubborn fat, all whi

>> it is the biggest boardroom shakeup exxon has ever seen. have a third seat means the activist investor, number one, has a quarter of the board, which is 12 board members. what is probably a bigger deal is now there is the rumblings among activist investors they could repeat this kind of performance at other companies. what is happening is you have the activist investor bring out a case. to get investors who are invested in indexes like like rock are supporting these boardroom shakeups. they are seeing companies are not doing enough to cut emissions. it will be interesting to watch. we are going to have to wait for the next agm season. which companies could activist investors be targeting? anna: and back to the subject of tax, a shipping giant calling for a carbon tax of $150 a ton. why are they looking to punish them self is the way many might look at this? >> it is an odd one. if you think about why mirsky -- mersk is doing it, they are saying their customers are saying -- if we are going to clean up our ships, we should not be punished as

esg proposal, or is that simply too easy to imagine will be the case, and in fact, this really was exxon specific this was reflective of years -- in terms of its lack of transparency, in terms of its lack of communication and despite the efforts from the current ceo to change that, it was too late >> but exxon. >> or does it mean that anytime you put an esg proposal on a proxy now, the big index funds that represent 40% of the outstanding shares are going to say yes. >> exxon had been actually doing better at esg. they had been doing better there are others that are far worse that i think are going to be targeted. >> meantime, conoco adding a billion to the buyback and trimming capex, familiar story, but that buyback issue is one of the big bullish narratives of the second half. >> they had a good balance sheet. they managed to preserve their balance sheet, well-run company, stock's been a horse at the same time, i mean the group has had a gigantic run brian was talking this morning, maybe opec unleashes they don't want to make it so it's so profitable in the permian that we turn the spi

stock number two, exxon mobil reports this morning that hedge fund engine number 1 spent nearly $12.5 to win board seats on exxon mobil according to reporters, that was less than half of the budget allocated for that proxy fight stock number three, another biggie, berkshire hathaway charlie mong er said he's falle in love with zoom and thinks it's here to stay. video shares not reacting. pretty good endorsement. however you may be watching or listening to wex, we've got a lot more to do this morning. still on deck, time warner dropping the long-awaited trailer for the sopranos prequell have faith, seattle and port portland. >>> today's big number $257.3 million that's the total net outflows that cryptocurrency market saw so far this month according to coin shares. ether reported the fourth straight week of outflows and the largest since 2015 is the same company we'll trust to bring us back together. cisco. the bridge to possible. i'm 53, but in my mind i'm still 35. that's why i take oste bi-flex to keep me moving the way i was made to, it nourishes and strengthens my joints for the l

the oil industry was built by americans and chevron and exxon.nch companies there, spanish companies that really this is an american industry and now that sanctions are in place, they can't get sparle parts. and getting pair parts and only so far you can go with that and one of the reasons that while the chinese and the russians and iranians, they can't get production back up. it's about 500,000 barrels a day. they hope to get it to 1.5 million barrels. that is a target. they talk about getting to 5 million barrels which is in excess of their historical high. that is a dream. they can't do it on its own. the only way they can do it if investors can come in, capitalists from the united states and other countries can move in with their technological expertise. but a lot of things have to happen. venezuela is a humanitarian disaster and a deal to get to that point is a long way off. caroline: this is years in the making and trying to talk to the capital markets. but a lot of brokering has to go on. >> absolutely. the question is joe biden. donald tr

exxon mobil preparing to cut jobs at its u.s. offices.ion system will be used to identify low performance and cut 5% to 10% annually for the next three years to five years. exxon has 40% in the u.s. nfl player has announced g he isay is gay. he said he is pretty private but hopes this coming out on me and other people would not have to make similar videos in the future. he added he is donating $100,000 to a nonprofit that works to prevent suicide among lgbtq most of global banks like hsbc are ramping up hiring ahead of so-called wealth connecting link between hong kong and china. it will allow investment across the border and could open up more that $40 million in annual fees. hsbc to hire 400 people in hong kong. standard chartered is looking at hiring or promoting 3000 wealth managers. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. >> pretty highly vaccinated but also seeing an increase in infections and overwhelmingly these infections are

alix: and darren woods of exxon joining us from houston. i want to jump right in. day's will we see $100 oil? analysts keep weighing in we could. is it more likely we see $50 or $100 oil? let's start in qatar. >> hello. i think we will see both $50 and $100 oil. don't ask me which sequence. alix: how about you? >> i think with the discussion on energy transition and the lack of investment in oil and gas going on for last couple of years, there is not been enough investment in oil and gas projects. if this continues, i think tied to the energy transition discussion, it could have a probability of going higher much more than lower. alix: patrick? patrick: volatility i would say. we could see [indiscernible] i agree with his excellency there is a lack of investments because of the tradition in the oil and gas industry. >> i would agree with what the panelists all said. coming out of the pandemic and the lack of investment, our industry will exacerbate the supply and demand tightness as the economy spits back up again. we will see supply pickup and rebalance. we will s

a lot of people think oil could be headed 70, 80, even $100 a barrel, look at what's happened with exxonthey are being pressured not to pump more oil. >> you're exactly right. if you look over the 2010 to 2019, 100s of billions of dollars were put into the oil and gas sector and the returns were negative. we got a new set of management, investors and here is what they are saying they are saying to all of these oil companies, return cash to us show us that you're good business and the energy companies and managements have responded and stock prices have responded. the sector in general has gone from the worst performing sector of 2010 to this year being one of the best performing sectors in the s&p 500 we think this trend will continue >> it turns out that oil investors should have been pounding the table the one thing oil investors should be campaigning for is for esg to make them divest out ov oil because it's bullish for the energy my point is there's no way this could be sustainable you can't tell me energy stocks can continue to perform well on the idea the price per barrel is going

rockefeller >> standard oil being exxon, exxon being -- >> what tkr couldn't do. >> it was a seminal moment there's still an argument, so the professional circles around activism as to whether it was there in specific or talking about that proxy play, whether you can expect on the big index funds will always side now with the esg proponents something on a proxy i don't know the answer because there was a lot of frustration with that sun mobile specifically, jim. you know that. for years. that may have shown itself in the way that -- >> they ran the companies and said, look, here's the way it will be for us i hear there might be another one, another challenge >> another challenge to another company. they've started an etf >> oh. >> they're starting a -- >> did you hear about the -- >> i don't want to -- >> did you hear about the "squawk on the street" etf we are about justice >> are we? >> there's a justice etf >> is there? >> yeah. >> got it. >> we're calling it the shazam right? >> by the way, spacs, we'll have the ceo from bart trucks >> oh, my gosh spacs. >> that music gets me eve

just a teeny bit. >> there is a group that wouldn't have liked the exxon valdez. >> it is fascinatingh the trass transition of the company and what darren woods' decision is, and does he quicken things by the way there is a strong school of thought out there that says this does not mean that any esg ballot initiative that is brought by an activist or anyone else is going to win because the three big index funds will vote in favor of it that's the question. is that going to be the case because so much of their marketing now, to new investors is wrapped up in an esg sort of cover. >> and that's what people are talking about. >> or was this more exxon specific than we really realize. and years of basically ignoring their investors. and not that mr. woods has done that, but previous management. >> they have no choice look, when i said they were an investment, they were really just saying, hey, we don't care what you say, we're oil companies. those days are so over now these companies are all trying to think of ways, i mean look, there's guys who are saying they are going to use the extra

then 89, 90, exxon valdez put a environmental piece.here is always a cohort of investors over several decade that wanted to vote with their wallets on investing. so you work your way into the middle of the 90s. we have almost 50 socially responsible funds, with excess of $4 billion. so that is accelerated over the last 10 years for sure. this is not something new. it is just evolved to the place where we are. the good news to your question about investing, making money, i think, i think both can sit side by side. why do i say that? there is 4400 trading companies in the united states, and 44,000 put publicly-traded companies in the world. there is no analysis investing one or the other eventually wins. some of the environmental stocks have done well this year around some of the environmentally friendly stocks have not done as well. we don't necessarily have to pick winners and losers say it is wrong. this is an evolution of something going on for over 50 years. charles: i i want to pick up on that, art. supreme court justice clarence th

exxon i exxon no longer in the dow, chevron down 3%. so chevron first negative. second, the boeing saga. the federal aviation administration is taking a hard line with boeing to say the least. i was excited about the possibility for the united continental order to be announced. then i discovered that the 777 model has issues i thought that was okay? now the company is adamant there is no need to worry about the push backed timeline i think this is more about the tenor or the terror. the faa must despise these guys. after all the recent safety issues can you blame them? the industrials need boeing. it's too important to the group. new that the aerospace kingpin has two strikes against it, another project in trouble and no china orders in sight, they will strike a giant equity offering if you like boeing, please keep your pall powder dry. i am not talking my book we have the new covid variants to consider. do you want to travel before you find out whether your vaccine works against the strains? if a mutation can break through, that's bad news. hence why the airline

higher oil lifting exxon, which led the dow rally.jerry, having no impact on wall street today with the near 500-point rally up on the dow. >> jerry: thanks, susan. potentially paying college athletes? the supreme court voted 9-0 today against the ncaa when it comes to capping athletic scholarships. schools are now allowed to pay student athletes extra money for extra items. so could this open the door for paying players in the future? let's get the read on this from doug eldridge. thanks for being here. >> thanks for having me. >> how big of a deal she this for college athletes? >> it's significant. the fact that we get a unanimous decision is rare from the supreme court much less on the this. this is significant. from the lower court saying that artificial caps are restraints to education benefits was an anti trust violation. more importantly, to your question, this arguably does open the flood gates to bigger issue, which is compensating student athletes for the second part, not students but the athletic benefits. maybe a salary or

of tobacco these companies have become uninvestable they have listened to me and changing things up exxona much improved company so it's oil, carvana, thinking about using him for my daughter. great car company. amazon, one of the largest positions for my travel trust, actionalertsplus.com and roblo which i'll talk about with the conference call. this is the best of the growth company. we have a great toy growth company. we have the best retailer. you have an auto retailer, tobacco company and oil. you, my friend, from mississippi are diversified. carl in tennessee, carl? >> boo-yah, jim. thank you for helping us small guys out with your mission you're a wise teacher and so entertaining on cnbc all day i love seeing you on halftime shaking things up. sh shutout to the judge. >> they are the best i love the judge off campus, too. what's going on? >> caller: as a young investor, i use partial shares to build positions. >> excellent. >> caller: i'd be honored to know if my five largest holdings are diversified. airbnb, amazon, first horizon and gap incorporated. >> all right let go to work w

about whether or not exxon was going to cut its dividend and now has had a massive run. if you draw a line from its 2014 high, that was the prior peak in crude oil, you no he what happened in 2014 the fed starts coming off quantitative easing and in '15 raising interest rates and dollar went higher and crude went lower so be careful what you wish for you might get the fed to take notice of this so-called inflation and if they taper earlier than expected and raising rates, crude oil likely to come in >> so many thoughts there. tim, let's talk about the price of crude oil and energy stocks, those have been outperforming the rest of the market what do you think about playing commo commodities. >> well, thank you for joining us courtney. as bank of america fund manager survey points out, you have a case here where actually energy toings -- stocks are not overweight look at the z score to the long term average we're a little bit overweight verse the commodity overweight verse the bond massive under weight i look at prices steel three times last year. copper come back 15% lumb