kind of new steps being in visage to prevent it from happening again well i mean lash at the state permian fanaa for my failure that's where this slaughter house is in western germany he spoke earlier this afternoon said at the moment there isn't going to be an extended regional walk down that's still not being ruled out should. a sudden spike in the number of cases which are already over $1300.00 from the slaughterhouse then that could still be a possibility but in the meantime the employees of this quarantine plus some of the neighbors as well in some of this is living arrangements that they live in they are all currently in quarantine ok to diffuse can't break insight on the outbreak of the virus in a slaughterhouse thank you to police in the southwestern city of stuttgart say violent scenes that erupted overnight did not have a political background a number of officers were injured and more than 20 arrests were made when dozens of groups dozens of people went on an unprecedented rampage through the city looting and rioting shuttered glass ransacked shops stuttgart streets after saturda

concerns, they are adding back the horizontal production in the permian basin and i'm sure that willme kind of effect. russia has not liked u.s. shale growth, the industry has changed, it's all about less to theand returning cash shareholders. but i see no change at 40 and we need to get to 45 and if d before you see people adding rigs and flat -- frack fleets. alix: how long can you sustain that view when you look at the and how long until your shareholders are like stop, let's go in make the cash flow? push is tothe big slow your growth down, i think the days are gone of double companiesth, most have too much leverage and i think the first dollars are coming back for a lot of companies, not pioneer because of our great balance sheet but most of the companies will use the cash flow to repair balance sheets because the equity markets are closed. there's not going to be a rush back to adding activity at all, in my opinion. alix: have you learned anything about decline rates? one conversation is if you don't put capital into current wells, your decline rates will speed up so production

kind of new steps being in visage to prevent it from happening again well i mean lash at the state permian if an offer and my failure that's where this slaughter house is in western germany he spoke earlier this afternoon said at the moment that isn't going to be an extended regional walk down that's still not being ruled out should. a sudden spike in the number of cases which are already over $1300.00 from the slaughterhouse then that could still be a possibility but in the meantime the employees of this quarantine plus some of the neighbors as well and some of this is living arrangements that they live and they are all currently in quarantine ok do you have used friday insight on the outbreak in front of ours in a slaughterhouse thank you. a number of police officers were injured when a large number of people ran rampage through the streets of the southwestern german city of stuttgart more than 20 arrests were made after dozens of people smashed windows and engaged in looting. shots at the glass ransacked shops shit got streets off to saturday night's chaos hundreds of people came to thi

one of the key parts of it but being able to turn off production in the permian seems to also be onethe key reasons why the commodities have had a move, hasn't it? >> yeah. we've turned off a lot of production, in the permian and the eagle for the industry really works on a -- quite a crazy fast fashion to refuse demand at unprecedented speed. >> do you anticipate that will continue we were at 13 million barrels. where do you see things evening out? >> i think in june we'll see another d i think we're down 3 million barrels a day from february, but i think somewhere around july or august, you'll see producers start to turn it back on, and the production rising >> how quickly can those wells get back in production >> i think it's something that at the right price could happen in a 30 to 45-day window you're looking at probably 10% or 15% of the wells are going to have a lot of trouble getting back on. this has never been tried before at this kind of scale. at this kind of pace i think it's not quite as simple as turning a faucet on and off you'll have 10% to 15% of the wells not come

service and pipeline companies and most of the energy jobs have been focused in texas home to the permian basin and eagle ford shale which has more than half of the u.s. drilling rigs. and in the houston area by some estimates they might even lose 200-002-3000 extension 00 jobs in the near future and or all towns across the country are looking at similar double economic blows with states like alaska california louisiana north dakota oklahoma and wyoming amongst our there are facing the potential budget cuts and layoffs and the us energy industries likely to remain in a crisis even despite the opec plus agreement extending production cuts by another model and globally the oil industry is projected to lose $1.00 trillion dollars in revenue in 2020 due to the current of our shutdowns and with record low oil prices there are just not a sufficient price for the heavily leveraged u.s. shell producers so while most other industries will start to see the labor demand that lead to a road to recovery or oil and gas workers will just have to wait monch longer because when you can't produce it and yo

undoubtedly companies that are healthy particularly in the permian that cut out production will be bringingroline: talking about the supply side, the measure, but there is always the demand side. oil and the other commodities you follow, being kind of commodities -- are you seeing it reflecting the reality of what he economy is telling us? many say equities are out of whack. they are painting a future looking story. what are commodities painting? ed: it is an interesting question because normally commodities reflect the here and now. we distinguish them between equities which are forward-looking and commodities which are reflection of current byplay interchange between supply, demand and inventories. as we learned in the market, since the great financial crisis, commodities frequently trade together with equities even though they are not expected to. if we look at copper, which has had a significant run-up, that significant run-up has been pulled the equity side more than the realities of the copper market. is some oft there that. there are expectations involved in copper because of what we

there is some concern, there were two large producers adding back there production in the permian basing to have some kind of effect on the opec-plus meeting. russia does not like u.s. shale growth. about less growth, it is all about returning back to -- cash back to the shareholders. i see no change at $40. we need to get up to $50 before you see people adding rates. -- rigs. how long until your shareholders are like, let's go, let's drill. >> i think the big push for most investors is, slow your growth. i think the days are gone of double-digit growth for the shale industry. most companies have too much leverage. i think the first dollars coming back for a lot of companies, not pioneer because of our rate balance sheet, most companies are going to use that cash to repair balance sheets. there is not going to be a rush back to adding activity at all, and marvin -- in my opinion. >> have you learned anything about declining rates. one thing is, you don't put capital into new wells, your declines are going to speed up which means productions are going to be curtailed. can you give me any

too much supply again in the permian basin just turn the spicot back on the lesson over the last feweeks, live by momentum and you die by momentum. and if you bought these stocks last week, that's all you were doing is chasing momentum. there's more "mad money" ahead including my sitdown with the ceo. and then i'm getting a clear picture of adobe and all your calls in "the lightning round. so stay with cramer. >>> the markets have become a heck of a lot more fun, as major averages have had their biggest decline since march 16th take l 3 harris, created with l 3 technology last year, it created a major player roughly a year ago i started recommending this one, because it's involved in all sorts of high tech areas. intelligence, surveillance, reconnaissance, avionics, drones, all this stuff of modern day warfare. plus, i love the merger and i very much believe in management's ability the pandemic came along. and through the whole -- the whole world went into disarray l 3 harris is in good shape. even as their tiny commercial aviation business is struggling. everything else, good shape.

is it your broader view, though, that -- i mean, when you look at what production is doing in the permiane shale companies versus overall demand for oil and driving and, who knows, maybe aviation as well? >> aviation -- china has been a tremendous importer of oil of late china skewed the numbers i think the permian can start the spigot immediately i have been a big believer chevron is good, i like pioneer, parsley a lot, pe, diamond back which is the other faang is very good eo go. is a conservative company, i like those i don't like fossil fuels in general because i think that a lot of the younger portfolio managers who are eventually going to inherit the earth think that they're dirty, like they are coal but i do appreciate some of the work like parsley is trying to do in order to cut down flaring and some of the work that mike worth is trying to do to make it to chevron is the greatest oil company. i think he's made it much better than exxon which has been the dean of the group for the last 30 years. >> of the names we were tossing around earlier in that speculative bucket i know widin

the permian at 35 or 36 lives. so -- i think that the people involved with the oil patch, that's a very labor intensive business southwest covers that area, owns that area. i'm judging by the fact that this stock is well above where the gigantic offering is, that's a bullish sign these stocks all are coming back they creep up a little bit, just like the cruise ships do, every day people say, hey, that's making a comeback. i keep saying it should never have gotten as low as it did jay powell made it so that anybody can raise money by just talking about it unsung hero, jay >> yeah. >> more white hair have you noticed that? i worry. >> speaking of raising money, jim, the ft has details on this amazon offer that we talked about yesterday. at the lowest corporate borrowing costs ever recorded, going back to at least 1980, 10 billion, three-year notes at 0.4 compared to 1.9 when they bought whole foods a year ago remarkably cheap money for a company that's fitting into the dynamic we're living in. >> i think some of us r

talking about the cohesion among opec we had not seen that in a long time all i know is this means the permians back. at these prices, even some of the worst oil companies can make money, which means all those oil loans we were so worried about, makes that one more thing that perhaps we were too worried about. if you looked at wells fargo and the oils and chauthought charli scharf may have trouble with it, at these prices he won't >> yeah. there's been a whole school of thought, fundstrat's tom lee's been one of them, he says you have to keep piling into the epicenter stocks at the center of social distancing, airlines, cruise lines, travel and energy. does that playbook live? >> the playbook does live in the sense that if you look at a norwegian cruise -- i pick on that because they had the fewest covid when you look at the cdc numbers. so therefore it was the best shouldn't it get back to half of what it was? they did take down a lot of debt but they can pay it back i think that when you look at southwest air, they -- can it really get back to where it was? the animal spirits might because t

consolidation in the oil patch because simply we've seen a lot of private equity money go into the permianin production site and they haven't gotten any return on that. they paid big numbers for oil leases, oil drilling contracts, and so forth. so i think it's going to take some time for money to return to the oil patch but in the meantime, i am expecting additional consolidation and bankruptcies. dagen: andy, great to see you. andy lipow, thanks for joining us this morning. coming up, hop to it, how the brewery business is poised to reopen as new york city gets back to work, plus a lifeline for chuck chuck e. cheese, how e popular kids restaurant is fighting to stay out of bankruptcy protection. ♪ can my side be firm? and mine super soft? with the sleep number 360 smart bed, on sale now, you can both adjust your comfort with your sleep number setting. but can it help keep me asleep? absolutely, it intelligently senses your movements and automatically adjusts to keep you both effortlessly comfortable. and snoring? no problem... and done. will it help me keep up with him? yep. so you can re

as you know, it was a pioneer in the shale business and if you are talking about the permian basin, theyeed oil at $50 to break even. right now oil is at $38 a barrel. ashley: very good point. very volatile stock. what about the restaurants? we are starting to get them reopened even if it's only for outdoor dining. how are they doing? lauren: yeah. they're starting. brinker international, they operate chile's, they are down about 3.5% today. they said their sales for the week ending june 3rd were down 11%. it's limiting dining so yes, they are opening but it's limited. also, many of them, especially cheesecake factory, have come a long way. this after on the reopening rally, it's starting to come back to earth, if you will. reality is setting in this is elemented capacity. ashley: very true. coming back to earth, we have had such a tremendous run for the market. susan, come in. is this taking a breather, taking some profits? susan: pretty much what it is. [ speaking simultaneously ] susan: we saw the president tweet about the amazing record run for the nasdaq, hitting another record high