new was discovered the water board will reopen that case if something that is awe nutritional to exxon mobilhey'll be liable for it. >> commissioner katz. >> this doesn't address potential liability issues and it is still - well in terms of the assignment of the responsibility for clean up it stays with exxon and this is just a fund that will cover the costs if some remediation is undertaken in the future by - >> no if so actually more limited than that the agreement will only cover costs that the port or tenants will occur because they had to maintain or construct differently than otherwise not for remediation it is for sort of extra measures we might have to take there is some - >> unremediated. >> again - so this wouldn't address if there is some further technology that makes it financially feasible and get it last drop or is that open ended for example, we now got - >> unless we find something different ms. out there and believe me this site has been studied thoroughly unless somehow no more contamination than we think 2 wouldn't be prudent to remove the last drop. >> so some enzymes tha

domestic companies are not doing a lot, especially exxon mobil. it is not measurable.ok at the european companies, they are doing more. the europeans seem to be ahead of things from this standpoint. oil usage in europe has been declining. the u.s. probably peaked prerecession. we will likely not get back to those levels. i think the energy companies do not want to lead on this. they want to see how things play out. and aill do like they do lot of things. they will let smaller companies develop it and perfected and then they buy it. you will probably see that down the line. you have a buy rating for chevron and a hold for eggs on -- for exxon. it pays a better dividend. their growth prospects are better. on naturalthe lead gas projects, most notably in australia. be a good growth driver. the valuation should improve down the road. read exxon mobil hold. david: the vote here about exploration, what were other big votes? what were shareholders concerned with? investors are going to be able to put names up for the board and the access to the board has changed in corporate

look at exxon mobil, which lost its aaa credit rating since the great depression -- that has been heldince the great depression. carol: what they are doing to keep that cold standard credit rating. >> there are only two companies left that have aaa ratings. carol: we are talking about credit ratings. >> writes, johnson & johnson and microsoft. until recently, exxon mobil, but s&p 500 downgraded them and they were not happy about it, but they did not do everything in their power to clink to it either. carol: which is surprising because you talk to the ceo and they would hold that up for the triple-a credit rating company and that meant something. it also meant that when they borrowed, they could do it at cheap rates. peter: if you are going from aaa to aa, it does not mean you are at risk of default. it is a matter of the prestige value of having a aaa. right now, it isn't only 13 basis point difference, which means .13 percentage points makes the difference. carol: not much of a difference. peter: not much reason to do it because you want to have a little more that sometimes. carol: yo

until recently, exxon mobil, but and theyowngraded them were not happy about it, but they did not doverything in their power to clink to it either. carol: which is surprising because you talk to the ceo and they would hold that up for the triple-a credit rating company and that meant something. it also meant that when they borrowed, they could do it at cheap rates. peter: if you are going from aaa to aa, it does not mean you are at risk of default. it is a matter of the prestige value of having a aaa. right now, it isn't only 13 basis point difference, which means point 13 percentage points -- .13 percentage points makes the difference. carol: not much of a difference. peter: not much reason to do it because you want to have a little more that sometimes. also look at leverage ratios for companies and you are looking at that typically go -- that to equity ratios and what have we seen the past two years? peter: we have seen more debt. sincepretty noticeable 2006, this top up and how much debt companies feel company -- feel comfortable carrying on their debt sheets. carol: what made you

but the point that is interesting here, number three on the list, exxon mobile.e oil industry? two, blue cross, blue shield. >> they're saying this group is worse than your worst nightmare. this boogeyman is exxon mobile. they're so evil. and google is many times more evil. for me, tom, this is a particular issue. no matter where you stand on the political spectrum, this should be a problem for you. you should be able to look and say these kinds of involvement is hazardous to the well being of the public. so this should be something that libertarians should be looking at. >> i don't like the kind of, the press is for democrats. the main stream press have been. they stood to the left. so surprise. big internet companies are, they love the democrats. but, a lot of people on the right are like oh, i'm not going to use google. use google. don't ghettoize yourself and hide. everyone has to admit. we know these people tilt to the left. media in this country tilt left. entertainment. but don't complain. get out there, make your voice heard. >> aman that brings up andrew

that's what we have seen a couple of times, keeping in time that exxon mobil they held the top spot through 2012 and then apple took over in 2012. they have been back and forth for a year before apple then became the front-runner. now people are saying it's a matter of time before alphabet takes over the top spot to hold on as the world's most valuable company for the future. it depends on apple's sales of iphone 7. that's why we have seen weakness of late. also speaking of apple, they're investing $1 billion in the ride hailing app in japan. they have 87% of the chinese market share and they want to get more inroads into china and they want to understand the chinese market better. a big investment. >>> let me tell you about facebook. mark zuckerberg is saying they're investigating claims that pro conservative stories were suppressed. essentially what happened a few days ago, a tech blog called gizmodo is questioning whether or not they allowed the trending topics to follow what people were really interested in or whether they were somehow manipulating in some ways. mark zuckerberg is sayin

over the weekend, exxon mobil, which i have here compared to the entire s&p 500 energy sector, orangee entire s&p 500 sector equal weighted, and then all energy stocks in the russell 3000. i think what's important is these have all dipped. they're actually down on the month. yet exxon has just continued on its own. another way to juxtapose this. exxon versus major other integratives. you've got dp, royal dutch, all dipping or correcting in some way. exxon just unto itself. to me this is the face of fear. getting into a trade that maybe you have to be exposed. i want to look at a long-term chart. this is s&p 500, and s&p 500 earnings over the last 30-plus years, going back to just before the '87 crash. look at the same chart for exxon and its earnings. market and its earnings. exxon and its earnings. even when we bottomed before exxon turned up, as earnings turned up, this time it's turned up but earnings have not. to my eye, i think what you'll get is this bottom panel showing you in the last five years, every time we've gotten 10% above the moving average is when you back off. take p

, quote, important short positions, among hedgies, you've got names like walmart, also netflix, exxon mobilnd disney as well. now, the analyst team there notes that the stocks on this short position list are not derived from regulatory filings like the 13-fs, or how popular a short position is. rather, it's goals to be short holdings on edge funds. and put together as a possible list to the goldman list of important long hedge fund positions. melissa, a little bit of food for thought on how traders are possibly positioning on the short side of things. back over to you guys, uptown, at the nasdaq market site. >> thank you, dom. have a great weekend. all right. so he outlined some of the vip shorts. >> which is the best one, which i'd be most scared of. >> both. >> the best short has been netflix. tim's been talking about this for a long time. the stock has not traded well. i'm a believer. i've been wrong. i think the dids in i one is clearly working out. walmart i don't get. you see what happened this week. you get your face ripped off. the risk reward for me in walmart doesn't set up very w

the supreme court rejected an appeal from exxon mobil. soline additive contaminated the state's groundwater. exxon argued the new hampshire theeme court improperly let state use statistical evidence of contamination to make its case. scarlet: citigroup is the latest to back away from equity market making. bloomberg had first reported last week that was in negotiations, which citigroup then bought in 2007. goldman sachs and bank of america have exited similar businesses. alix: disclosing specifics about how much has been held from saudi arabia. it is being released in response to an open records request. put just under 117 billion dollars since march, making saudi arabia the third among foreign nations holding u.s. at behind china and japan. and that is your bloomberg business flash. scarlet: let's head to julie hyman pier 1 have you got? at the s&pnt to look 500. mmr one. what are the movers today? as i was looking at this, the company that popped up on the top of the list as the best performer it is something i have never heard of. and i

>> i will say i know exxon mobile, and many great oil companies can get in there. it's amazing how quickly. >> but they can't defeat these isis people. you have to take american ground troops. >> we'll have to bomb and get people in the region or just bomb and keep the oil for years. >> to get the oil, that is going to require america's special forces, paratroopers. you're saying you're going to send in ground troops to defeat isis. no? >> no. we're going to use our so called allies. we don't have such great allies between us and the rest of the world. in theory, we say we'll use our allies. and so we give them beautiful humvees and the first shot is fired in the air and they start running. we should have never gone to iraq. when we got out, we should have kept the oil. >> correct me if i am wrong. it sounds to me like president donald trump will use ground troops to seize oil. >> two, i would try to use other people if possible. they don't seem to have the capability. >> we've got to get the oil. >> right. >> they've got a lot of wealth through banking channels. y

. -- exxon mobil falling along with those group prices which are now below $44 a barrel. we are seeing the financials pullback today on, it looks like pushed out expectations for a rate increase with the big cap bank falling in today's session. thee we don't have those at moment, if you move on to what is going on with the 10-year note today, we're seeing a big move downward in yields on the 10 year. you see it, one point 79% at the moment. couple of more weeks, we have seen a lot of be done earnings estimates. >> interestingly, if you go back to the beginning of earnings season, we're a .9% on the s&p 500. it definitely doesn't feel like it. it is interesting. today, in terms of winners and losers that we are watching, we have pfizer trading higher after those companies beat estimates. we still have 82 more companies to report this week. if you look at the bloomberg and ea, will we have been watching here, 353 of the 500 companies in the s&p 500 have reported earnings down a .9%. check -- check in on bloomberg first word news. mark crumpton has more from the newsroom. se

exxon mobil shares have seen a 7.3% total return on an annualized basis..k is we are also learning on shareholders are voting 95 .9% against halting exploration spending. the vote was about climate activists wanting to spend less on exploration and more on dividends and buybacks. almost 96 percent voted against it. the idea is climate rules will make reserves in the ground and pouring billions of dollars in two exploration unprofitable. chevron is also facing a similar question. ifrlet: we will let you know there are any other headlines. greece is set to receive 11.5 billion dollars in aid after creditors reached an agreement in brussels. the 10-year he'll briefly dropping below 7%. it has come that up a little bit, but that did was the first time since november. alix: billionaire wilbur ross spoke earlier about the new deal. i think this is a very big, very positive development. it averts any danger of any default on the greek national debt. second, i think the imf will eventually win its war and greece will get the kind of debt relief it really needs. i

it is a beat for exxon mobil.ped estimates for first quarter net income at about 138 billion dollars. that is the lowest quarterly profit in 17 years, it is over 53% more than what the analysts were expecting. earnings in the chemical unit helps offset the blow from oil prices. just last week s&p stripped exxon of its aaa rating. u.s. department of justice criminal division is hiringgating jpmorgan's practices in asia. the bank admitted facing an inquiry by the doj and a regulatory filing. while sources have said in 2013 and regulators were looking at whether jpmorgan violated laws, they hadn't lame -- named the agencies until now. house for china, japan, and germany on a new watchlist. xonitoring whether their f practices give them an unfair traded vantage over america. the five countries meet two of the three criteria used to judge unfair practices meaning discussions would trigger at whether of the country had potential penalties. saudi arabia is getting ready for the twilight of oil. critically largest soverei

exxon mobil invoking force majeure, basically saying it can suspend shipments out of nigeria without breaching its contract. supply back and forth. but you see some of the oil majors are under pressure here today. on the flipside, the airlines, which have been falling a little bit recently as oil has been rising, they are rebounding today is oil goes down. caroline: julie, thank you. we have suddenly got a rebound on our hands, it was going to be three days of losses, and u.s. retail data came in and kicked into gear and europe. this digs into all the industry data they need if you are looking at the stoxx 600 index. you can see the outperformance, health almost a percentage point, you have the banks doing well, on the downside is energy, on the downside is a certain amount that consumer discretionary does seem to be u.s. data. at 1:30, suddenly sent the stoxx 600 into the green. we end the week on a high. having a look at one stock that's not ending on a high, a french satellite company. us is what happens when you put out significant profit warning. day.mbled by 26%, a brutal reven

exxon mobile said profits fell more than 60% for the first quarter. more companies are reporting earnings this week. we will hear from names you may recognize. sprint, tesla and kraft. >>> after 17 drawings and no winner, the current jackpot for the powerball is $348 million. that amount is only available if a winner chooses to take the money over 30 years. the more popular lump sum option has a cash value over $226 million. the next drawing is wednesday. your chances of winning not so great. each ticket has a 1 in 292 million shot. i'll try with one ticket. >>> one starbucks customer in chicago is unhappy. filing a lawsuit. a $5 million lawsuit against the coffee chain accusing it of using too much ice in its cold drinks. the suit claims the number of ounces starbucks advertises is only right once ice is added to the drunk. for example, a venti drink is advertised at 24 ounces. the suit claims it has 14 ounces of actual liquid. the rest is ice. starbucks said our customers understand and expect that ice is an essential component of any ice beverage.

individual stocks contributing the most to the games include energy producers like exxon mobil and chevronising along with order prices. coming out with earnings that beat estimates, not indicating -- drug pricing, that of been a concern with analysts. the gains, it is down by 1%. it is a particular victoria's secret comparable sales down 1% in april. analyst tap-in had -- had been projecting games. april sales missing the estimates as well. take a look. the rate for these companies, earnings lies, 3.8%, that is the gap between estimated earnings and where companies have actually reported earnings. saying the beat great on the part of companies is the highest mid 2010. the s&p 500, since the beginning of veering season, if you look two thirdst, is up of 1% p.m. most of that came a week or so from the earnings is. we have seen declines since then. what will happen when earnings season is over? sentiment is not great right now. one measure of that is that during the current rally in the there have been less inflows into etf then during prior increases in stock. you have the various rallies i

and exxon mobil as well, falling along with oil prices. will see a lot of materials producers as well as energy stocks that are seeing big percentage hits. chesapeake energy has been so volatile, energy prices down 11%. sydney goes is coming out with earnings estimates and southwestern energy company other one of those volatile energy names. i want to bring your attention to the bloomberg here because this is a measure of short interest as a percentage of float for the s&p 500. this is something that bloomberg news's oliver renick pointed out in an article you should check investors are not committed, that they do not believe in the recent rally we sign u.s. stocks. so that is one measure of market sentiment right now. david: thank you very much. just a few minutes to go in the trading session. it has been a rough performance in the market. what caused stocks to change or action after yesterday? your colleague mike reagan was here yesterday talking about how it was like puzzle pieces, trying to put them together and looking for some macroe

exxon mobil with quarterly profits the lowest it has reported cents 1999, down 3%.still ahead of analyst estimates because it cut capex by 33%. jonathan: we have seen big cuts in the first quarter. what is going to be the legacy of these topcats from the companies that are maintaining dividends versus those who have acted early and have a high service replacement ratio? >> i think you are on the right point for the longer term, jonathan. the pullback in the investment is going to affect reserve placement, production down the road. i think in the case of exxon, they are already planning for their production to be flat at the end of the decade. i think even hitting that target is going to be difficult, given the pullback we have seen in their investments. jonathan: looking at these numbers, the cost management has been terrific, bp a great example. but, 18 month low. how does that set you up if you on crude? francisco: we will go higher into the year and, and we will still see $16 on a barrel at the end. but the price, saudi arabia is no longer trying to price this th

. -- and exxon mobil have been fighting it out in the recent days. they are all roughly up by 13% with a total of 2.7% higher, beating by 4%, so shell is not doing so badly. europe's biggest airline reporting a loss. it narrowed and fuel cost falling and restructuring measures beginning to bring down. --did caution that bogus that industry overcapacity is way not ticket price and it is a highly uncertain travel market. the white line shows the valuation of air france trading on estimated earnings roughly below three times. howblue line is a stoxx 600 you wish in trading on 15 times estimated earnings. what is interesting is air france is the only airline in europe to rise and it is the cheaper on found you -- the cheapest on violation terms. francis second-biggest bank reported an unexpected increase in third-quarter profits, boosted by consumer banking. shares up by 3.5%. be watching that. let's get to bloomberg's first word news with vonnie quinn. vonnie: the republican is almostal nominee certainly donald trump. the head of the rnc is calling trum

in the most toe gains, we've got microsoft higher, exxon mobil also rising with the rebound in oil prices. and amazon.com on a five-day winning streak at this point. percentagewise, some of the winners we're looking at today tied to news include monsanto, which might be getting some interest from a buyer of germany to create the world's largest agrichemical company. ralph lauren beating estimates. group quietly trading higher today is the phones. julie: we are awaiting some kind of ruling on it -- on net neutrality. be getting potentially news tomorrow. bc at&t, verizon and comcast on the rise to we also got some news on the cable side of things. california gave the last regulatory approval needed for this. the shares a little bit lower now. it was lied -- it was widely expected that the approval would come. vonnie: thanks a lot. now let's get a check of the headlines on the bloomberg this afternoon. mark crumpton has more from the newsroom. revealingld trump some of the candidates he is considering for vice president. he discussed selecting former house speaker newt gingrich as his runni

huge story, oil hitting the highest since the timber, exxon mobil with quarterly profits the lowest itas reported since 1999, down 63%. it still ahead of analyst estimates because it cut capex by 33%. jonathan: we have seen big cuts in the first quarter. what will be the legacy of the cost cuts with the service replacement ratio? jason: we have the right thing for the long-term. the pullback in investment is going to affect the servant replacement and the production down the road. in the case of exxon they are gunning for the production of the essentially flat to the end of the decade. even hitting the target will be difficult given the pullback in investment. jonathan: cost management has been terrific, bp a great example. but on the other side, cuts to capex. 18 month low. how does that set you up if you want crude? francisco: we will go higher into the year and, and we will still see $60 a barrel at the end of next year. but the price, saudi arabia is no longer trying to price this out in the various quarters. ramy: we will have more earnings highlights later in the program, includi

they are hoping exxon mobil, sinopec, and bp will take strategic stakes.t would turn the world's biggest oil exporter into the largest public we traded company, with a valuation that could reach $2.5 trillion. in touch withet bondholders to explain why they failed to make an interest payment last month. the malaysian state oil company has -- will have a call scheduled to him take place on may 23. defaulted on a $1.75 billion bond last month after a dispute with a co-guarantor. the greek government says it has enough support among lawmakers to approve pension and income tax reforms as part of a $6.2 billion package to secure further aid from the imf. parliament debated the issue that day before -- the day before eu funded ministers will review status of the bailout. they will consider whether to release the second installment of the $98 billion rescue package after a six-month delay. the outgoing philippine president benigno aquino cast his vote in six sessions his successor and for national and local lawmakers. more than 50 million people are eligible to c

. >> important to notice about exxon mobile being the largest company until 2012. being the l company until 2012. a matter of time before alphabet may n maintains that top spot permanently. >>> breaking overnight. apple takes on uber. the tech giant investing one billion dollars in chinese ride sharing service didi. and amazon has a huge anti-trust problem. and wait until you hear what he has to say about jeff bezos. friday may 13, 2016. "worldwide exchange" begins now. ♪ ♪ you ooh ooh ♪ >> good in

exxon mobil was able to do well because diversified. look at chevron is a company that's gone into liquefied natural gas. do the best the direction this industry is going into -- more diversification? always beenisadam: a strong tomato diversify or integrating or not great the key lessons that come out of this are don't fall in love with debt , don't fall in love with leverage. and if it's going to be a cyclical injury, and more so if the cartel is not there to help, those of the types of lessons i think we learn -- shore up your balance sheet, be more protective, more thoughtful, hedge more which is a key contract for oil prices it wasn't there before. i think those the types of lessons -- the debate of how you structure company will continue to be there. david: adam longson, morgan stanley research commodity analyst. still ahead on "bloomberg markets," neil chriss. also look at stocks on the way out. all in the green. more after the break. ♪ [ soft music ] e.t. phone home. when you find something you love, you can never get enough of

i know exxon mobil. >> they can't defeat isis. send in american ground troops. >> yeah, we have to bomb and we may have to do something. we have to bomb and we're going to get people in the region or we have to bomb and just keep the oil. i have been saying keep the oil for years. >> for to get the oil, you have to defeat the guys on the ground who are now running the oil fields. and that's going to require american special forces, paratroopers, airborne, and you're saying you are going to send in grund troops to defeat isis in syria and libya, no? >> bill, we are going to use our so-called allies. we don't have great allies. in theory, they are saying, we will use our allies. we give them all the equipment and the beautiful humvees and the rifles and the first shot is fired in the air and they start running. that's our allies. we have to start to do something. we never should have gone to iraq but we should have kept the oil. i have said that for years. >> it sounds to me like a president trump wrould use ground troops to seize o

charlie: what is the difference in chevron and exxon mobil? other than a higher market cap?hink your second? -- you are second? shell our about the same. we are both in the oil and gas business. we operate in different areas. we emphasize different things. inside the cup any we have our own way of doing business, they have their own way. they are a fine company. we are a little bit different, mostly from a portfolio point of view. charlie: what the main? where -- what do you mean? john: we have more business in upstream, they have more downstream, chemicals. here in theness u.s., they do as well, they have big business in russia, we are in other countries. geographically, and we emphasize different segments. charlie: what is your commitment to alternative energy sources? is that a business you leave to others? or is it research and development you do everyday with the revenue you have in order to see and make sure? john: it is a mix right now. producere largest thanks to the geothermal business in indonesia and the philippines. we spend a lot of money doing research on advan

we have had bp and total on the side of the pond beating and you can throw in exxon mobil as well.t is the story we are getting from the big oil majors? ryan: the integrated oil business is is a good model. refiningtream business against saving the bacon, so does having a chemicals business good sodas training. chemicals business. so does training. exxon made $1.8 billion in the first quarter. exxon in terms of market cap is almost double the size of shell. that is not bad to be 200 million off. betty: how about the acquisition of bg and how that has changed things for shelf? l? ryan: one of the things it has done is increased that. debt. that is something the ceo wants to get his hands on. going into it, they are gearing at 14%. they said it would be in the mid 20's. today, we learned it is now at 26%. the cfo says it's ok. it's like buying the house. now we the to start bringing down debt. even though they were free cash flow positive in the first quarter, it still looks like it will be under pressure in the second and third quarter. they want to return to the traditional model o

>> one of the big pieces of exxon mobil-- increase their dividends.his is a board that is quite responsible and if i thought it was no longer a vision they can increase the dividend. tom: one of our themes on energy, global energy. carl weinberg will help us out in a bit. later, a conversation with richard clarion of dynamics general equilibrium theory. later this morning. ♪ tom: good morning, everyone. economics, finance, investment. it's jobs weeks in america. right now, a morning must-read with vonnie quinn. vonnie: the financial times is itt we are looking at -- talks about central banks and fiscal and monetary policy being the bedfellows. we usually talk about them is completely separate things, but i want to read you a quote -- he says it would probably be less effective than direct fiscal expansion that would bypass the democratic oversight. is this a we need to do? doing it to bypass the lawmakers, and look for something -- >> the central banks -- i won't say they have gone too far, but i sent out e-mails recently to some of my former professo

nermeen: at its annual meeting in dallas, texas exxon mobil , shareholders rejected a series of resolutionsednesday calling for climate action, including resolutions backed by calpers, the california public employee'' retirement system, as well as the new york state comptroller thomas dinapoli and the church of england. shareholders did pass a measure toto let minoritity sharehololde nominate outders for sts on the board, raising the possibility that a climate activist could some day become a director at exxon. it was the first exxon annual meeting since a series of revelations that for decades the company covered up its own scientific findings linking rising carbon emissions to dangerous climate change. at the shareholders meeting the granddaughter of a former exxon scientist questioned the ceo of exxon about the company's record. this is part of what she said. >> it is good to have the opportunity to speak to you. my name is anna kalinsky. , james of black, was a scientist for exxon for over 40 years. he started with standard oil during world war ii, later earned dozens of patents for soa

i try and take the oil fields but i will say i know exxon mobile.w many of the great oil companies. they can get in there it's amazing how quickly. >> they can't american companies. send in ground troops. which i think you have to do anyway. >> we will have to bomb and may have to do something. we have to bomb and get people in the region or have to bomb and just keep the oil. i have been saying keep the oil for years. i didn't want to go into iraq. >> in order to get into it, you have to defeat the guys on the ground who are now running the oil fields. >> that is correct. >> that is going to require american special forces. paratroopers, airborne, all of that to go in and beat these guys on the ground so, again, implication. you are saying you are going to send in ground troops to defeat isis in syria or libya. >> bill, we are going to use our so-called allies. we don't have such great allies between us and the rest of the world. in theory, they are saying we will use our allies. our allies we give them all the equipment and give them the beautiful

we are hoping exxon mobil will take strategic stakes with the expectation that they will lift as earlyxt year. has a value that could reach $2.5 trillion. maybe increasing to $118 million worldwide. the biggest safety crisis in the history of the auto industry. the expansion may result in $6.2 billion of additional cost. lowr won't have long to settle in/ won't have long to settle in. rba admitted they probably missed the bottom of the core inflation target this year. disney's new shanghai theme park proving popular even before the official opening. it has pulled in tens of thousands of fans. forey is opening the resort the growing middle class. that is your bloomberg business flash. back to you. anna: thanks for a much. crude prices are on the rise. wildfires in canada's oil-producing region knocks out nearly one million barrels a day and it is threatening to spread. how will higher fuel prices affect the aviation industry? joining us now is a managing director, robert. great to have you on the program. we know the conversation about the aviation sector and the oil price. let's talk a

on the downside, we've got exxon mobil falling along with oil prices, microsoft a little bit lower as well as facebook. there was an interesting story bringing up the potential for perhaps microsoft and sale forced to seek some sort of deal, but that could still be a play. the focus on the bed, moving away from commodities, i would argue the are related. is all interrelated, but the fed has come back to the foreground as the driving factor behind what is going on with stocks. here, you see the two-year yield and if you look at w.a.r. p on fed fundserg, that is futures and how they are crossing in the probability of a rate increase in june, up to 30% . you can see this is what happened last week after the replace of -- release of the fed minutes, the uptake in that probability type related at around 30% chance of an interest rate increase at the june meeting, we will be watching this this week. julie hyman will be back with us, later. let's check in on the first word news. mark: a baltimore officer has been acquitted of assault and other charges in the arrest of freddie gray who died a

supply coming back online and continuing events in nigeria were exxon mobil is able to suspend productionout of his contract in the short-term. gold not doing a whole lot on the flipside, up slightly. in the bond market, really interesting phenomenon on that better than estimated retail sales report. we are seeing the to yield -- the two-year yield rise. and the 10 year moved lower. strange divert tense between the two. gencege diver between the two. alix: good stuff. julie hyman, thank you. let's get to bloomberg first word news. mark crumpton is in the newsroom. mark: a federal appeals court has rejected the american civil liberties community to release a report about the cia's use of harsh interrogation tactics. the court said the 6900 page report prepared by the senate intelligence committee is not subject to freedom of information loss. the decision of -- the decision is a lower court ruling. a new report that flint, michigan water bills may double in the next five years due to increased operation cost and decreasing population. to $54 may rise to $110 by 2020. the white house is enf

at $50 oil the level we were back in mid-november, and that is when ceos of exxon mobil and bp were sayingwe are going to do a lot of cost-cutting because at $50 we really need to do things. it provides breathing space that we are not out of the what's. -- out of the woods. $50 is the sweet spot and they are expecting it to rebalance in the third or fourth quarter. are you surprised we are rebalancing quicker? javier: we have had massive disruptions in nigeria where production is the lowest in 20 years. delta, andthe niger the same thing with the wildfire in canada. they are more or less under control but that has disrupted oil flows, and they have a very close proximity to consuming centers. in two days they are in the united states, and with africa oil, it is felt very closely into europe. that has been the impact. it is still a bit of oversupply so the market is getting a bit ahead of itself. i have been talking this morning and yesterday with physical oil --ders and they said there we are probably five dollars above what we are -- what we should be. tom: congratulations on your coverag

exxon mobil, shell, and others have sold $40 billion in bonds. the emissions cheating scandal. it is at its lowest level in five years. havend fiat chrysler increased in european sales. francine: madame lagarde giving a news conference and our half ago. she said we are not talking about the brexit because it is politics. it is not the job of the imf. they are concerned about the downside risks if the u.k. leaves the eu. let's get to oppenheim or funds chief economist, jerry webman. we talk about this day in and day out. some are saying there is a systemic risk. a lot of people in the u.k. refute that argument. tiphere a concern that we into a world recession if the brexit happens and we are not prepared? jerry: i do not think the u.s. average investor is thinking about the brexit at all. thinkingo have our stop when we get to the edge of our continent. it is underrecognized in the u.s. as a threat. there is complacency. there is a tendency to our own political theater that is going on. it is possible that as far as u.s. investors are concerned, i

the one who really focuses in on it is exxon mobil.t that they have been looking at climate change since the 1970's. you see other companies who are changing their cost structure and looking to the future and new opportunities great ceos get clastrs, other pension funds are . ceos get it. they are starting to address these risks as a cost to their business, and an opportunity. scarlet: do you see a buy into it to it? >> europe gets it. certainly, parts of australia and canada get it. the united states looks like an upside down u -- sadly, the midwest of the country is stuck to their knitting, and not look ing at this at all. they are seeing stronger storms. alix: thescarlet: the evidence is in their backyard. the target is 7.5%. we are living in a 2% gdp world. >> i wish we could get 2%. scarlet: given that, isn't 7.5% wildly optimistic? >> it. they are starting to people have been predicting a low return environment for about 7-8 years. they are finally right. last year was a low return environment and this year. if you look at the de

shares of exxon mobil, trading higher.vh corp., the company that owns tommy hilfiger, calvin klein, and other brands. they beat estimates. the ceo is citing strength in those brands and europe and china. lions gate, shares of the film company best known for the hunger games, is extending premarket string after the company put up a massive fourth-quarter making $.56 per share, beating by 1200% with the ceo saying that this year will only be better. nice to have an optimistic view. david: shares of hp are climbing and 11% decline in second quarter revenue. the company was spun off from hewlett-packard enterprises. cory johnson joins us with the challenges. there are declining sales, but they beat estimates. . that might be why the stock is up? is a hit of the restructuring that has been going on since 2001. they started this new company with a restructuring program. they're giving us non-gap numbers. they beat the number, but sales are down 11% year over year. they have always been tied to printing and pcs. pcs are a disaste

exxon mobil and boeing. >>> welcome back to "power lunch." i'm melissa lee.the cues here. just off session highs and still up by 1.9%. a couple of leaders on the qs. chinese internet stock and well as nettie's. let's check in with courtney reagan at the nasdaq. >> good afternoon to you, melissa. kind of a risk-on rally here at the nasdaq though most of the components down here are trading in the green. the nasdaq itself actually above the 200-day moving average for the first time in a couple weeks and i would say 98 of 100 as i speak right now of the nasdaq stocks in the nasdaq 100 are higher right now. microsoft contributing to the biggest upside for the nasdaq 1 is hundred, and, of course, we know that it was upgraded today by cowan saying even though microsoft shares are down 10% year to date there's a short-term overreaction and this is something to look at here as somewhat attractive. and so as a result microsoft shares are higher followed by apple and alphabet. semiconductor stocks also higher. take a look at etfs, they are higher, individual components

last time, well, i wasn't at the market this time, but i read about it, and remember when exxon got together with mobil, that was a period when oil prices were so low. when we see prices go down, you see deal-making, consolidation, that's what you're looking for now? >> you're going to have deals, no question, but we'll see. pioneer has so much oil, it's incredible. but so does enron, anadarko, all of them well-financed and everything. anthony: you are bullish on those stocks? >> i am. i am bullish on them. >> we want to hear more what boone is bullish on. stick around. we'll have more after this short break. >> boone pickens says there is more opportunity in energy. what's the best way to invest in legendary trader mark fisher has that next? what will the outcome of the election mean for oil and our which allergy? eees. bees? eese. trees? eese. xerox helps hospitals use electronic health records so doctors provide more personalized care. cheese? cheese! patient care can work better. with xerox. that's it. how was your commute? good. yours? good. xerox real time analytics make transit systems run more