, becauseon on monday schlumberger is a bit more of a consumer base, but i think this will be interesting to watch. alix: we will be aches -- speaking to ryan lance later on in the hour. i want to highlight pg&e, the company this is there core earnings estimates but they reaffirmed the forecast. part of this was because organic .ales came in light, up 6% this is the guy that you will go to, you got toilet paper, paper towels, this is a gold mine for pg&e. .4% stock now down by about . also looking to pay over seven and a half billion dollars in dividends. they will buy back some stock. you do not hear very often about

he lowered his price target for schlumberger as well. wti is goingel of for the same price as a cup of coffee. were speaking to an analyst earlier and he says the contracts may be rolling over tomorrow, but by the same time next month, the same thing will happen. how does oil recover from this bust? symptomatic ofry what is going on in north america right now. demand has come to a screeching halt. producers are rapidly trying to pull back production, but production cannot fall that fast. we will have a situation where you have excess volume and nowhere to go. we can certainly see wti -- possibly going negative at some point. natural gas was in a similar situation last year. certain parts in europe were trading negative for a short time. vonnie: another eye-popping sayings to vti

if i've got you guys confused on the schlumberger how could i not?that's all good >> you know, it's easy to mix you guys up sometimes. you're both so handsome. tim, what about slb, schlumberger long term >> largest ofs firm out there where the balance sheet is fine. the question is on eps and the question that there is free cash flow there and they actually report next friday and i'll be watching that and the stock traded below 13 and that's again, one of those cases where the most money is made when things go from terrible to just bad and this is an earnings concern and this is essentially top line that's down 10% to 15% and this is a company that will be here tomorrow and i think one of the best companies out there in that space. you should own it here is my view if you own it for the long term >> well said, guys appreciate that. we have more on cnbc's "fast money," how about these number up 73%, up 60%, this week, those are the returns for three well-known retail stocks we'll lay out these incredible moves and whether the whole thing is just a hea

from: that was the message schlumberger. they cut their dividends last week, a point of contention among investors. certainly was the prudent action to take. but they are looking to shore up their balance sheet and make sure the capital markets are open. halliburton is doing the same thing. said is that ceo they did not cut the dividend, but left it as an option. schlumberger and halliburton are peanuts. players,t the smaller do they survive this, is there a round of bankruptcies? david: it depends on what we are talking. if we are talking is closely exclusively north america, there will be a lot of shakeout. e&p was in trouble before this. they were going through a capital discipline renaissance, if you will. ere, many yankee companies were not economic at $50. going into this year, we thought a lot of those companies face that existential crisis. that crisis is just coming faster. that is what we see in the e&p industry, particularly the privates. those are all the customers for the service cottage. there has been an indus

this is worse than schlumberger because schlumberger has more international business schlumberger sworehe dividend would be fine even as of last july there's an overwhelming sense that the permian is finished as a place of growth. and that everybody will have to cut back obviously there's a couple guys who do well there. pioneer is doing well. eog. i'd like to hear from chevron. halliburton is the state of things the state of things is what was a great industry, an industry about energy independence, too, is finished now. i don't know what brings it back you have to have wholesale demand improvement because even if spli wupply was cut back, i what i have to believe is that supply cutback, is that occurring? you wouldn't be in such freefall >> right even with the supply cutbacks promised from opec, it's still not enough >> no. we're talking about 30 million barrels a day no longer needed essentially for the world economies? >> listen to what phil said. you have this mix of not a lot of jet fuel being used, not a lot of driving, the whole shutdown in places, and you look at the world the

i've talked about schlumberger, that makes them more investable. this is not an environment to get excited. i think what's going on in the energy market where oil traders are being paid to find any place they can store -- oil are hitting their tank tops and that's not a reference to what guy wears to the gym it's a case where literally we're out of storage and i think that's a case where the industry itself is a self-correcting mechanism. there's always a supply response if you're an oil trader and it's good for you, why isn't it good for investors that are going to be there tomorrow. this isn't buy with all hands, this is yes, there are companies like schlumberger and chevron that are going to be here tomorrow and then some when oil prices are going to be higher. >> you can't unsee guy in a tank top. this is a family show. indulge me if you will the production cuts that were agreed to by opec plus go into effect in may. could we be seeing some relief for wti coming >> i also have to say i am so thrilled you're here, you can't even have any idea ho

it's what it's traded this thing down to, i think you can own schlumberger here. i think it reinforces that view. i trade it >> have i miss traded or faded >> darden is the next one. trade it or fade it? >> i think you fade it here, the stock has gotten destroyed without a lot of visibility about their business going-forward. but it has a huge run off the lows here. listen, i just take a much more pessimistic view of the economy here, i think this is going to take us a lot longer to work our way out. i can't speak to things like oil and rig counts and all that stuff that tim was just talking about. if you look at main street, you realize there's going to be tremendous disruption to the restaurant business, so, i'm hoping that darden makes it out alive. when you think about the fact that they're not going to get back to peak earnings until 2021, 2022, i don't see why you buy this after that big run up it's had over the last month >>> last one up, trade it or fade it, hilton? >> this one's an easy one, it's a fade it, we talk about the casinos -- you fade this one i

thank you very much mike, i do appreciate that and you've been nibbling around or nibbling around schlumbergerll right. well, according to my notes, tim seymour has been nibbling on or around slb guy adami, you get my point. if you believe most of these oil company stocks are down 70% to 80%. you believe many will go bankrupt, many will and there will be survivors and if there will be oil marks, some of these have to be investable at some point, no? >> yeah. they're definitely going to be survivors and there will be bankruptcies quite frankly there should be. it doesn't give me any joy to say that, and again, i'll say this and when i say we, the united states, we're dancing a dangerous dance when it is too higher one has to wonder what's happening behind the scenes with those conversations. that, coupled with the fact that for all of the bloviating, crude is now $20 it's sort of scary if you sort of look out there, and i do think with all my heart that the russians and the saudis who people will say were fighting with each other were not fighting with each other at all. i think it's a concerte

chevron, i own some schlumberger and i'm of the view that the price action that we awe this week is the price thatmakes a bottom i recognize the supplies and know the storage issues. the demand cuts that will be difficult and more difficult to work off and aggregate oil demand will be higher by the end of the year and this will be a long-term opportunity with the best of breed. >> i want to be specific the price action convinces you a bottom in the equities or in the commodity? >> i think in the commodity. and i think in the equities, and it's very difficult to make proclamations and have you seen it, and the equities traded fantastic and if you look at the performance of the xle you can make the argument on march 13th that it's outperformed, but we've gotten more insight. we've gotten insight into the integrated names like bp who might have to cut the dividend and others who i don't think, schlumberger and baker hughes this morning you got a sense of where free cash flow was and capex and opex efficiencies are and for longer term investors there's an opportunity here and i think you do

on the flipside, companies like schlumberger cutting their dividends as well as.lar is the under performer in the g10 space. you are seeing selling in the back end of the curve. in europe, still solid buying from the court to the periphery. i also want to highlight what is happening with oil. you're getting wti hit. nonetheless, you're still looking at oil prices $20 a barrel. not want to head over to erik schatzker for an exclusive interview with henry mcvey. is with us from richmond, virginia. your head of global macro and asset allocation and you run kkr's balance sheet. you have thought about the implications of this pandemic. the stock market is telling us recovery will the be almost as powerful and swift as the collapse. what do you think? do we have you? it appears we have just lost henry. these technical difficulties largely a result of having to work from home. i am not at home but you are in so many of our colleagues. headed back to you for the moment and i hope we can reach henry again and get back to that conversation. alix: no problem. this happens a

friday, it's schlumberger. the oil service king pin total disaster right now price of crude got hammered today. i don't think the opec plus 10 million barrels taken off the market cut, won't mean a thing is schlumberger's dividend safe? i don't know, what's the plan? bottom line, i know we're in lockdown and hard to judge the future when it comes to the economy, both the fed and elected leaders are on the same side as you'll hear when wespeak to speaker pelosi later on. now we need to mail down the public health side of the equation let's take calls >>> let's go to vince in california vince. >> caller: jimmy chill, what's crack-a-lacking? >> i don't know. i'm masking myself after this. what's up? >> caller: my question for you today is about alibaba they've been struggling a little bit but i thought they may have recovered in march they have shares later this year, is it a buy, hold -- >> it's the only chinese stocky like remember i told you to avoid that >> sell, sell, sell. >> you bet i did john in michigan j

kohl's, schlumberger, 13%. halliburton is also right near sclau schlumberger as well host hotels. even the airlines, still pretty high based on an historical level. so the question is whether dividend payers should be worried about this because there's a whole subset of people really interested in this obviously, the issue how much a dividend is going to drop. the number's around 10 to 15% for total dividend estimates to drop this year but if you'll notice the group, it's concentrated in retailers, energy, hotels, and airlines so, scott, i think it's a fairly concentrated group i don't think there's going to be a huge number of companies that do it but if you're invested inthose particular areas and you're a dividend payor, you certainly want to be a little concerned at this point >> unless you're p&g and j&j that's bob pisani joining us there talking about dividends. so jim lebenthal, tell me, where should we find safe dividends for our viewers today. >> let's stress the word "safe." what bob went through are some high payors that are not safe. there are sectors that will be less

ultimately schlumberger reported numbers today and they're terrible numbers and they gave guidance inerms of cash flow and their ability to not only pay a dividend and it's somewhere around 13% and i won't opine on that and i think investing in energy equities in the current spot environment is crazy. crazy as in to assume the current environment is not something you want to impugn over the next two to three months and the green chutes and the term we use in march, april, late 2009 and 2010, but we are seeing chinese oil demand and this is the largest delta, incremental demand in the world. >> is someone back online or it's coming online, and i think you have to be really careful to assume that the wti prices right now are indicative where the industry will be three to six months and saudi arabia, russia and their oil ministers on the tape today talking about their willingness to get out and make more cuts if they need, you talked about the rig counts and ultimately in commodities and there is a supply response and that is something that elevates prices because we can't exist in this

that includes majors like exxon, higher by 3%, but also services companies like schlumberger, valero. really the e&p's outperforming. some rx is up by about nine rx -- cimarex is up by about 9% today. these are leading the s&p. vonnie: kailey leinz, thank you for that. it is time for your latest bloomberg business flash, a look at some of the biggest business stories in the news right now. boeing will offer voluntary buyouts to its entire staff. it is a bid to adapt to coronavirus crisis that could depress the aircraft market for years. in a note to employees, boeing's ceo david calhoun says it is important the company start adjusting to its new reality. southwest will become the second u.s. airline to apply for federal aid. in a filing today, southwest says it is looking for possible grants that could boost liquidity and provide job security for its employees. merrick and airlines is already said -- american airlines has already said it will have to up billion in aid. jamie dimon back to work today after heart surgery. , he is, like so many working remotely today. he underwent emerge

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

including schlumberger, which i used to love can't like that group.esg >> yeah. >> these guys were failing that kept me out of them esg. what does that come up to? >> even more uninvestable. >> this is the most uninvestable group i've come across they found too much oil. there's no place to put the oil. apache was the worst performer in the first quarter it bounced big it's time to sell apache i think it's time to sell occi it's time to sell any oil and gas pipeline they are all dangerous these things do trade together on etfs. sell, sell, sell sorry. sorry. sorry. >> despite the yield on some of those names, jim, speaking of yield, once again we have a very large name in this case it's procter. upping the dividend again by 6%. moving the earnings up to friday, which is earlier than expected that comes on the heels of the other move by j & j yesterday with a similar percentage increase >> i would buy procter here. j and j w j&j was a remarkable thing before they announced the earnings, they announced the dividend one thing that's happening this earnin

the question is how much longer are the other ones like schlumberger and halliburton exxon at 8.2 carl, this issue isn't going away-point want to know that payne announced a week or two ago they're cutting that dividend that's the main reason some people remarkably still own energy companies guys, back to you. morgan >> yeah. bob, i'll take it. continental resources suspending its dividend today as well pain in the oil patch in focus millions of americans, though, sheltering in place amid the coronavirus outbreak and insurance giant allstate announcing it's paying back its auto insurance customers more than $600 million in premiums since people are driving far less during this pandemic. joining us is the chairman, president and ceo of allstate thomas wilson. tom, thank you for being with us today. >> good morning, morgan. >> in terms of this shelter in place payback you've announced to start off the week to pay back some of these returns, some of these auto insurance premiums to customers, how did you arrive at that $600 million number and what does that mean for allstate customers tha

so you do have names like apache, noble energy, devon, occidental and schlumberger moving higher today. >>> investors betting on casino stocks, particularly las vegas sands. the stock is jumping at the moment. lvs says it expects gambling to rapidly pick up in asia by late summer or early fall, once the travel restrictions in that region of the world begin to ease. you have lvs up $5.03, a gain of 12.25%. followed by wynn resorts, gaining 8.5%. rest of the names looking pretty healthy right now. >>> all right. at this time yesterday, we were telling you about the plunge in l brands as a half a billion dollar deal to sell its victoria's secret part of the business to sycamore partners was falling apart. sycamore was saying we don't want this anymore. coronavirus has been a disaster for retail. we don't like how victoria's secret has handled the situation. but the stock of l brands is now higher in this final hour of trade by five full percentage points after wells fargo came out and said there is actually still a strong chance the partial sale could still happen. the bank says sycamore

pg, schlumberger out with earnings, there is a lot to digest and we will turn to bob pisani to kick off the hour. hey, bob >> well, we've had a great morning. we are off of the highs, but it's amazing what a little hope for getting people out of hospitals are going to do for you right now. i just want to point out that all of the stuff that was the laggard this week are the leaders today. a lot of concern about the russell 2,000 lagging. it's a leadership sector today banks, a terrible week frankly, worse than normal. banks normally drop going into earnings but this has been a rough week home builders, their leaders, industrials their leaders, even energy believe it or not has been a leadership group this week look at the dow leaders, carl mentioned boeing with hopes of restarting some production over in washington. that's leading the dow right now. jpmorgan chase, rough week overall. the cardholders, mx, visa down this week, doing better. exxonmobil also on the upside. and the laggards, and this is like perfect, the symmetry here, all the stuff that's been the market leader is down. wa

taking a look at companies hit, occidental down, schlumberger and exxon down almost 4%. are of the big oil services in the u.s. enp's getting hit hardest, as well. this is bloomberg. ♪ nowadays you do more from home than ever before. the xfinity my account app puts you in control with digital tools to give you the help you need when you need it. get fast and easy answers with personalized help 24 hours a day, 7 days a week. change your wifi password to a phrase that's easy to remember. even troubleshoot your services on your own. we're working to make things a little easier for everyone. download the xfinity my account app today. alix: welcome back to "bloomberg daybreak." i'm alix steel. chuck schumer says there has been a deal on interim stimulus. they will top off the payroll protection program as well as additional funds. s&p futures off the lows but still down 1.6%. definitely a risk off mood. i wanted to highlight european banks. prices cratered, the exposure to the banking sector coming front and center. the commodity exposed currencies will get hit. australian do

schlumberger cut their dividend by 75%.ferent story when it comes to dupont. -- that stock up in premarket by about 3%. they also got an upgrade this morning over at j.p. morgan. in the broader market, it is definitely a risk off tone. that has to do with the oil price in some ways. we have $13 a barrel, a staggering decline, a 21 year low. do we even make it to august to find that $30 a barrel, or do we get worse from here? more on how to look for signs of market recovery and how to play it. this is bloomberg. ♪ awesome internet. it's more than just fast. it keeps all your devices running smoothly. with built-in security that protects your kids... ...no matter what they're up to. it protects your info... ...and gives you 24/7 peace of mind... ...that if it's connected, it's protected. even that that pet-camera thingy. [ whines ] can your internet do that? xfinity xfi can because it's... ...simple, easy, awesome. [ barking ] beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors pr

pg, schlumberger out with earnings, there is a lot to digest and we will turn to bob pisani to kick offhour. hey, bob >> well, we've had a great morning. we are off of the highs, but it's amazing what a little hope for getting people out of hospitals are going to do for you right now. i just want to point out that all of the stuff that was the laggard this week are the leaders today. a lot of concern about the russell 2,000 lagging. it's a leadership sector today banks, a terrible week frankly, worse than normal. banks normally drop going into earnings but this has been a rough week home builders, their leaders, industrials their leaders, even energy believe it or not has been a leadership group this week look at the dow leaders, carl mentioned boeing with hopes of restarting some production over in washington.

i've been looking at halliburton, schlumberger, cop. there are a number of trades and for me it is all about risk/reward. that is what trading is about, having right risk/reward. there is upside potential. we also heard this week that the government is looking, how shall we say politely, subsidize or support the energy sector? they will do anything they can obviously with the election coming up. we also heard just today, i heard the phrase, not likely. when has the fed or, you know, when have we heard we're not likely to buy stocks from the fed? that is an amazing fact. so let's see if that is supportive of markets but i like the price action. i'm a price guy. i try not to think too much f you look at price action, we've had very strong momentum move back above the halfway point of this drop from the top. that is very, very positive. every time that happened in history, it made new all time highs. neil: all right. watching that with fingers crossed to your point. alan knuckman, thank you very much. we're getting a little more on this me

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