Chevron missed earnings estimates. Earnings are overshadowed by two major mega deals. We will speak to the exxon ceo darren woods. Earnings shake it off or aint going to be all right. Big week for earnings, big week for telus riffles i am alix steel with my cohost big week for taylor swift. I am alix steel with my cohost, guy johnson. This is the last date we will be in proximity, we will miss you. Im not sure what my takeaways yet. Guy my take away from the european earnings story is they stink. Alix that is supposed to be factored in the price. Guy what they really stink. Todays data fits the narrative in the consumer continues to spend. That is the line between that data and taylor swift. The taylor swift, beyonce, b arbie story has been phenomenal. I wonder if we are running out of steam on that. Spending is a big factor. Fantastic story on the terminal which speaks to this narrative as well, buy boomers, sell millennials. Boomers have loads of money and they are spending. Millennials, not so much. Alix and they have money in money market funds. The numbers might have been ok in the u. S. , but the outlook is really confusing, and clearly tech has been hit quite hard the last couple days for the guest, amazon was oak the last couple days could yes come amazon was okish. Guy you gotta step back and look at tech and to expectations were so high. The numbers are exceptional. Any other sector, you got these numbers, it would be phenomenal. Their value to such a degree that they need a little bit of a reality check. Elsewhere, it is kind of horrible. You talk about the Energy Stocks today. Alix even chevron got really hit. Biggest weekly loss down six days since 2021. Is that idiosyncratic, or are we pricing someone up . Guy buy boomers, sell millennials. Someone called alix a boomer the other week. Alix didnt go well. Guy what is the earnings picture like right now . Abigail doolittle onset to figure this one out. Here in america, it looks less ugly. Globally, you put it all together, it looks really ugly. Europe looks ugly. What is the early read on the earnings picture. The biggest take away from this week, over recent one, is the disappointment over poor earnings is outpacing excitement about i think wednesday was a great day to see that with alphabet having its secondworst earnings day. We had a good news from microsoft. This wasnt enough. We had the worst day for the nasdaq this year. This kind of trend, you can see it in a large part of the index, is under pressure right now. Everyone is looking to those big names. Everyone is looking to the cloud. Every single of those names ways on sentiment. To give you one number on wednesday and thursday, we saw it hundred billion dollars being wiped out on the nasdaq just in two days. Today we are seeing a little bit of relief. Overall there has been some negative reactions to those earnings. Guy no kidding. [laughter] alix we gloss over this isnt this the final refer the one having your inflation expectations, guy, but it went up to 4. 2 . Guy inflation feels like it is real killer and. I wonder how sustainable that is. The consumers been pushed really hard. Another good story are americans living beyond their means at this stage . Is this sustainable . Is q3 going to be repeatable in q4 . Taylor swift is not going to be there. Alix abigail, it brings us to how ugly are earnings, and i want to get you in the conversation on what the technicals are telling you about the story. Abigail i dont think there earnings about the numbers which is where i would like to start and then bring it into the technical i dont know if it is likely is the stock reaction would suggest. S p 500 down more than 5 . And you have with almost half the s p 500 companies having reported already, you have nearly 1 beating on sales and 7 on earnings and 2 sales growth and roughly a percent Earnings Growth. It is not so bad. That is in a vacuum. When you put it into the picture of stocks being up so much on the year, the nasdaq 100 earlier this year, its first best have ever, up more than 40 . Really priced to perfection, investors didnt quite get it. You have a tightening fed, inflation back on the rise, geopolitical tensions. There is no real wiggle room to investors taking profits for some of these companies that have put up a big result. Check these are the best report tech, these are the best reports, and yet they are getting hit. Up so much, 100 guy you bring up the point about expectations, and this goes to the guidance story, denitsa. The number is ok, plenty of bar lowering going into this quarter. Then i read through the transcripts, and you go through one company after another committee, and the outlook statement are getting progressively worse. Equity markets are meant to be a discounting mechanism. That is what you should be looking at and that is where the pain is showing up. Denitsa forward sentiment is weighing on that. It is important to say that christ for perfection is playing the biggest part. Youve seen the nasdaq around the 30 premium over the average s p stock. Every little small thing, whether it was forward guidance, outlook for cloud, although small things are really weighing on sentiment going forward. And of course we have to talk about competition has been rising in terms of capital. We saw another push for the bond yields, auction numbers. It doesnt look great. Guy you have got it can be with 5 now. That is the benchmark you have got to compete with 5 now. That is the benchmark. Alix you had bank of america saying there could be a 5 drop on the s p guy 5 . Alix we were joking around, that doesnt sound so bad. Abigail to go back to your question on the technicals, the technicals are not great on this earnings season. We were talking about is at the micro or the macro. Micro is factoring in into a bigger way relative to these earnings. S p 500 doing what the russell 2000 has done, below the 200day moving average. The russell 2000 is almost in a bear market. Its almost amazing we havent been watching out a little bit more. S p 500 and the nasdaq appear to be following, and a lot of it happen on the earnings season. Today is no longer in the correction, but im guessing it will work back into it next week. Apple, we are looking at negative sales growth, deceleration. I guess the bar is set low for them. But the reaction has not been good. All this is before the fed. I want to emphasize this is not just micro alone, but when you put this in a liquiditytainting scenario, geopolitical, china slowing, the worlds secondlargest economy slowing and we dont know how bad it is, and a lot of people talking about a shell recession in the fourth quarter. Guy my last day in new york, going back to europe, denitsa, europe looks like it is ahead of the u. S. Alix into the downside, you mean. Guy youve got air france, salafi, natwest, the list goes on and on and on in terms of stocks there are some really bad numbers out of europe. Is your different, is europe different, or is it just first . Denitsa that is the big question. When back to the wh going back to the whole is there a recession, there has been a big divergence with u. S. And europe a long time and people are saying the u. S. Is in much better shape, and you could argue the same thing with earnings. If you look at flows this week, there is a preference for u. S. Stocks despite some doubtfuls, people have been buying some tech stocks. Perhaps whether there will be a recession in the u. S. , i dont want to take aside on that, but obviously things are looking that in europe. Alix really good conversation, guys. Thank you so much. Coming up, well continue this conversation. Question of the day, just how ugly earnings . Lisa erickson of u. S. Bank Wealth Management is with us. This is bloomberg. The chase ink business premier card is made for people like sam, who make everyday products, designed smarter. Like a smart coffee grinder, that orders fresh beans for you. Oh, genius for more breakthroughs like that i need a breakthrough card. Like ours with 2. 5 cash back on purchases of 5,000 or more. Plus unlimited 2 cash back on all other purchases. And with greater spending potential, sam can keep making smart ideas a brilliant reality the ink business premier card from chase for business. Make more of whats yours. Fresh, warm hot dogs when im not selling hot dogs, i invest in a fund that advances innovations like robotics. Fresh, warm hot dogs, straight out of my torso one for you, one for you. Oh, youre a messy one. Cool, right . So cool. Anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq100 innovations. Hot dogs fresh, warm hot dogs before investing carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. Look ahead to next week. Next week when the fomc meets. What to expect from the fed next week. We will have more hawkish role for the fed makes repeated beating that drum higher for longer. Hawkish narrative. We are not expecting rate cuts. The continued strength of the economy handcuffs the fed. Economy has much more resiliency. The resilience of businesses, the resilience of the consumer. The labor market, pretty strong labor market. The fed is looking at all of these datas juxtaposed with inflation that is still too high. Everyone is wondering what the lagged effects of rate hikes are going to be. Alix those were some of the bird tv guest just bloomberg tv guest some of bloomberg tv guests. Who brings us to our question of the day come just how ugly earnings . Stocks might find stabilization today, but some of these numbers were really rough and the outlook is very, very uncertain. Joining us now is lisa erickson, head of the Public Markets group. Your read, how ugly earnings . Lisa when we look at the report so far, and we are less than halfway through earnings season, we are seeing fundamentals indicate things are ok. Coming into the quarter, the expectations were for a flat quarter and Earnings Growth would be up 10 basis points. While that was improvement from prior quarters, it wasnt super great. However, the actual numbers through midweek this week are about 14. 3 on the Earnings Growth number. It is just one it isnt just one or a couple of key stocks or sectors leading that, but we are seeing goodpercentage reads across the board. The story to us has been this earnings season that fundamentals continue to be resilient from the corporate sector, but again, to the earlier discussion you just had on the program of what is going on differently in sentiment, people are just very cautious in how they are into putting those results. Guy and that is the point, lisa, isnt it, the approach at the moment seems to be glass halfempty, and if you miss, you get punished. That makes it a difficult environment to navigate. How do you navigate that when you are getting massive swings alphabet is a case in point, really big swings with really big stocks. If you are trying to invest, not trying to trade, trying to invest, can you invest given the volatility we are starting to see at the singlestock level . Lisa we are actually recommended to our clients that on the back of these conflicting forces that they actually stay neutral in u. S. Equities right now, which would mean whatever is the longterm strategic weight to the asset class, they just stay at that as opposed to overweight and bet on a positive rebound or underweight and be overly bearish. The reason why is, again, as we have been talking about, what we have seen in the corporate results and in the consumer as well is that there has been a fairly solid showing of sectors able to maintain some good momentum despite many headwinds. On the other side, we have a very tight policy, and inflation has not come all the way back down to its 2 targeted level. We try to balance reward and risk. Alix guy, this goes to your point on european earnings, you knew they would be bad and they are really bad. Ford, 0. 9 . We have not seen this kind of slighted since 2021 on stuff they already knew they settled with uaw. Im wondering why the market was so confident and the selling pressure is so extreme. Guy i wonder if whether or not you are kind of talk about a big bet on the travel. I wonder if that tone is changing, that the market is going we got the news now, we can take a step back and take a more realistic assessment of what is happening here. Rather than being always optimistic, equities are normally optimistic. You have priced in the bad news and can talk about good news. I wonder if we got to the point where we have got bad news and it is bad news. I wonder if that is a shift in tone, that equity markets are becoming by nature less optimistic. Alix this feels like it would be a massive seachange if on investors and Equity Investors become naturally negative and pessimistic. Do you agree with that, or how are you going to look through the weakness we are seeing in terms of outlooks . Lisa certainly to your point, alix, we have had a tale of two halves when we look at yeartodate. Investors were the opposite where they were looking at anything and continuing to push those stocks up. Again, we have had a sea change in sentiment, and you can see in the technical trends or if you look across sub Asset Classes within the equity market, you are seeing most in the downtrend with the exception of u. S. Largecap equities. When we look at the trading pictures and the fundamentals can we believe the best positioning is to add to the neutral stance guy is neutral 6040 . Is that what im doing right now . Lisa whatever would be is applied longterm allocations. 6040 would be more mid in terms of risk, but whatever would be the normal allocation given the circumstances. Alix can be brought in and out a little bit, to . Europe question guy brought up earlier talk about glass halfempty in europe, it feels like there is not even glass. At what point does the evaluation attractive to you, lisa . Lisa we are recommending more of whatever would be your normal stance, and to your point, while there has been somewhat difficult fundamentals on the european side, they also have been really showing more attractive valuation. Right now we just think that while the data continues to play out to continue to stay at more of that, the balanced stance. Guy lisa, great to see you. Lisa erickson, u. S. Wealth management Senior Vice President and head of Public Markets. Talking of glasses, look at what is happening with lvmh. You talk about glass halfempty. That is where the story is right now. Lvmh has been talking about it for a while. The drink story is a real microcosm of what is happening here. America is into drinking isnt drinking highend spirits right now. Alix this is my point, we knew this wasnt guy i think it is the scale of the downgrade, the scale of the downgrading of expectations. We knew it was tough, but it is worse than tough. It has come down really hard. Alix this is the indicator. Guy you dont drink . Alix i rarely drink anymore. Long percent costocks is another way to go. Guy that is an accurate trend right now. Talk about the glass gang halfempty, european drink stocks, encapsulated that beautifully. Prime Earnings Results for amazon get it . The tech giant pushing robust sales and profit growth. Details next. This is bloomberg. Its easy to get lost in investment research. Introducing j. P. Morgan personal advisors. Hey david. Connect with an advisor to create your personalized plan. Lets find the right investments for your goals okay, great. J. P. Morgan Wealth Management. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Alix it is 22 passed a 7 00 on the west coast looks for. Looks beautiful. Top tech stories from the bay area and beyond. Joining us is Bloomberg Technology cohost ed ludlow. Im looking at amazon, if you look at where it has been, it got hit so hard. We are barely above the level we were the last two days of selloff. Walk us through the numbers. 7 from 8 , or should it be more . Ed the market is buying the story amazon is trying to tell around cloud, aws, the only metric that mr. Topline expectations. If you dig deeper, it is rosier than google cloud this week. It was the first time ina long time that we got quarter it was the first time in a long time that we got quarteron quarter growth. Andy jassy is focused on efficiency and costcutting, and aws, amazons cloud unit, has accounted for a majority of the Companies Operating profit for a long time now. It came in 100. 5 billion ahead, or more than the street was exciting. It is more of a cash cow than we expected, and the story that andy jassy told was, guys, this generative ai stuff is great, we are signing new customers, we are going to grow. Its great. Guy microsoft, alphabet, amazon put it all together, what is the message . D i asked the cio of alphabet, did you add a new customers in the field of generative ai . She didnt answer the question. She talked about a backlog of demand across all ai product. They didnt excel the same story to the market. Market couldnt see in their financials are there customers coming to an saying we need your cloud computing. Microsoft had it in the numbers for azure growth overall. But they make money selling suffer as well. Those are the principal differences. Alix lets move also to some headlines that you just reported recently and that has to do with x and what is happened with subs. Walk us through what you reported. Ed last night elon musk and Linda Yaccarino hosted their first ever joint allhands meeting, and they want to go into video and hiring and they specifically name checked and called out youtube and links in linkedi and saidn that is our competition. Revenue split is 75 ads, 25 subscriptions and data. Revenue is probably down significantly. Todays october 27, one year since elon musk closed the deal to buy the Company Formerly known as twitter. They have had advertiser flight. There is evidence it is coming back. Subscriptions from a user base perspective is tiny, 1 according to thirdparty data. I have got some data from insider intelligence that just hit my inbox for some they reckon that for fouryour 2023, revenue will be down 1. 8 billion. A year ago it was 4. 2 billion. That shows you how they are looking. Alix do you subscribe to x . What am i doing, why am i asking him this . Guy i was on twitter. Alix 90 minutes time, the intel ceo will be joining them. We now welcome our tv and radio listeners to take a look at exxon mobil. The stock is down 1. 2 on earnings. It missed earnings estimates in the third quarter. It did boost its dividend, and huge increase in cash flow. We want to get more details from darren woods, the exxon mobil chairman and ceo. We appreciate you joining us on this is the earnings day. I want to start a little nerdy, the chemical side of the business. That led to the weakness and earnings. Chemicals is a really wonderful indicator as to the Global Economy. What should be our takeaway of that weakness for you guys . Darren there are two things to look at. One is the demand and billing to gdb, but the other is the supply. Commodity cycles and chemical are driven by generally growing demand, but then peaks of supply coming on it. That has been the case that postpandemic, a lot of supply has come on. We have not seen excessive growth in gdp. You are seeing the pressure manifest itself. Demand has not been as strong as in the past but we are seeing rising demand, just at a much slower rate than historical. Mike vacation is against the pickup, china continues to come out of its postlockdown issues that we will see growth in chemicals pick up. But we will still have to work through the supply overhang. Alix that is more of a supply issue than a demand issue. Good to know. To that point can we go to the broader oil story lets get through earnings, but the story for you guys is the pioneer deal and the takeover there, and some of the numbers you guys were tossing out our huge. Increasing approvable reserve to 1 billion in the permian. Some are worried you cant get that far. What will you do that gets you there . Darren what we are going to do is demonstrate what we are capable of doing. We set out a strategy to make sure we are applying the full weight enforcement capabilities about any into the unconventional space. That has been a concerted effort to develop technologies and improve recovery. Weve been implement and got in the acres weve got today in delaware and amid land. We are seeing very good results and have demonstrated the ability of those technologies and the processes we have in place, and we are taking that proven capability and applying it to the best acreage in the midline. Pioneer has been the fairway of acreage in the midatlantic. We have this very good acreage that we are going to apply these capabilities we have in exxon. They are demonstrated capabilities that we have built into those synergy numbers. It doesnt cumber hand the Additional Technology we are working on in the pipeline that we think has promise. Our views while the numbers are big and it reflects the capabilities that we bring from exxon mobile and marry up with the acreage and the capabilities pioneer has, we have additional upside coming down the pipe. Guy darren, good morning, its guy. To your point, youre talking about what is happening here, but it speaks to beyond that and what else you are doing. You are proving to be very good at execution, projects execution. You have a new refinery coming on. Others in the energy space are not, particularly within the renewable space, where it is proving to be very difficult to execute well right now. Can you just talk to me about how big an advantage that execution story is and how you can leverage that to do more . Darren nop i think you hav no, i think you have hit on a really important point, guy. In an industry like ours, being very good at executing large, complicated projects we consolidated all of our resources on projects into one global organization. That organization has the sole focus to make your were developing worldclass industryleading projects ahead of schedule and ahead of budget. That applies to our lowcarbon Solutions Business today. If you look at the challenges of going from Carbon Capture and hydrogen at skill and marrying that with the requirements of storing and sequestering co2, we are in the sweet spot of pulling all of those things together and doing it at scale, which is going to be required to address the challenges with respect to the size of the emissions we have to reduce. There arent any other players that have that have the same cap ability. Guy that gives you a huge advantage. Just on the pioneer deal, does that execution ability give you the opportunity to look at what is happening in the renewables space where there is a tough time merging and start to cherry pick assets and use your ability to execute to turn those assets around . Darren we will leverage not just our project capability but technology capability. We are a molecule company, not an electron company. We bring more value in the space to managing and transforming molecules, hydrogen, and carbon molecules. We are going to apply our capabilities to the molecule side of the equation, Carbon Capture and storage, hydrogen, biofuels, capturing the emissions associated with the industries that dont have any Practical Alternatives and applying that. We see huge opportunities there. Our lowcarbon solution business is turning those opportunities into highreturn projects today. Alix i know you want to it unless you get the high returns for lowcarbon solutions. With that include refined would that include refining assets . You have got to move the molecules and you need a different refining capacity. Darren when we look at our refining, we look for a diversified set of capabilities and advantages. If you look at what we have been doing, we have been concentrating how refinery footprint and focusing on the strategic refineries that are producing highvalue products in the lubricant space, fuel space, traditional fuel space, but also the opportunity to use our technology to bring in biofuels and biofeeds. We feel good about the footprint we have today. You cant just buy that from a refinery. It come from use of an integrated approach to investing in making sure you got a refinery that is producing port for the products that meets his Portfolio Products that meet society needs. Guy none of this happens in a vacuum. You must be watching very carefully what is happening in the middle east, i assume you are. To what extent is there the possibility of a repeat of the 1970s, another will stock coming world stock coming, or do you think im hearing conversations about a super cycle reemerging. Do you see any eventuality that could lead to that . Knowing how do you address these two issues . Darren i would start with the latter. The industry is still recovering from the impact of the pandemic and the lower levels of capital going and across the industry to offset the depletion that has been happening. Supplies are fairly tight. The big issue is where is demand. If you see real growth and growth in demand that is going to challenge the supply base, which will put more pressure on prices and margins. It is a function of where the global economies go in the years ahead. For the next couple years it is going to take time to get additional capacity coming on it with respect to the middle east alix no, go ahead, finish. Darren with respecter the middle east, it is still an important region in the world, and while to date the tragic events are not manifesting themselves in impact, that is something we are keeping a close eye on. Alix do you see the Global Economy entering recession, soft landing . Do you see any of that on the horizon . Darren if you step back and look, the u. S. Is in reasonably good shape and china continues a very slow emergence from some of the challenges in the past. Europe is the most challenged region, as i look around the world. Obviously they have been disadvantaged with the lack of Energy Security and some of the challenges they have had with the loss of affordable natural gas. That is going to continue to weigh on the european economies. I feel relatively comfortable with what we are seeing in the other parts of the world. We built the business to handle any economic situation. We certainly go through these cycles, and we make sure we are robust in a down cycle. Alix i wanted to ask about lng in particular, diana. Guyana. You have a new partner, chevron. You guys do this all the time. Have you talked to mike recently . What kind of development can you drive to get stuff out of the ground there . Darren we have a really good track record there. We are the operator there. Were developing this project. We have demonstrated the ability to bring in these large, complicated projects at worldclass schedules, worldclass costs. We are beating our budgets, beating our schedules. Once we get them online, we are running them higher than what the investment base was. Third vote coming on here in november and three more in the pipeline. I think we have got a pretty good suite of technologies and Capital Projects that our organization is developing peer we have worked with hess in the past and we work with chevron all around the world. I see their participation coming in and supporting the work we have already demonstrated our ability to deliver on. Guy darren, this is an industry that feels like it is back on the front foot. You can see deals getting done. We have seen two massive ones over the last few days, years included within that. A, do you think that is true, which then takes me to a Bigger Picture story, this industry has been pushed back hard over the last 10 years by the esg movement. Do you think that esg movement is now over . Darren i hope not. Esg from our standpoint, this is not an eitheror proposition, this is an and equation. You have got to develop resources and Energy Supplies to support Economic Growth and standards of living and you have got to do things to reduce the emissions. We are working on both of those things. I dont see those competing against one another. To my point before, we are working on a set of solutions that are complementary and leveraged the same skills and capacity. We have always leaned into the need to produce low cost and lowemissions energy sources. We have continued to invest in that space and continuing to Work Opportunities to grow value in that space. At the same time we are leaning into the Energy Transition and using those capabilities to not only reduce emissions in our own operations but helping third parties, particularly the cover nice industries, lower their emissions. We have world skill contracts with fertilizer manufacture and Industrial Gas manufacturer and steel manufacturer to capture their emissions. Those three contracts is the equivalent of putting 2 million electric vehicles on the road. That is the number of vehicles on the road in the u. S. Think about that, three deals with Carbon Capture and storage equate to the same level of electric vehicles that are currently on the market. Alix darren, we know you got to run. Thank you so much. We appreciate you taking time with us next time we will talk about the for my laterals, new technology. Darren woods, exxon mobil chairman and ceo. If you look at the esg thing as wind and solar and new alternative energies, that is the European Energy play. Guy there was a bigger story here, people have not invested in Energy Companies because the st issue, despite the fact that esg issue, despite the fact that Energy Companies are some of the biggest proponents executing on projects taking carbon out of the environment and dealing with emissions. You couldnt own them because of the esg mandate, i wonder if that bit is going away now, that it is more of a level playing field. Interesting if investors approach it from that point of view. Alix you have to wonder if you had an esg portfolio guy getting hurt. Alix you are feeling a lot of pain. Looking over volume, 25 , that is really rough. It is more what does shell and bp do at this point. What do you have to buy, what do you have to sell, what do you focus . Guy shell and bp are in a difficult spot. If they moved to new york alix no way. Guy you wonder if there is m a opportunity. Alix bp has other problems. Maybe shell, we can look at that. Our into the u. S. Trading session. Abigail doolittle is tracking those numbers. Abigail not a firm footing on this friday. On the week it is who we are looking at it is clear we are looking at a decline. Interestingly, beneath the lid it is not all bad. On the week we have microsoft and amazon trading higher on earnings reports we are seeing is acceptable. Up more than 2 . Microsoft Cloud Business in the here and now, i should say here and was, and amazon talking it up for next year. On the other hand, alphabet down on the disappointing cloud quarter. Meta, that color around next year and the possibility that the ad spend could be hit by the macro picture, those stocks down. Next week we have apple and nvidia later in november, some of the big tech earnings. Relative to the macro picture, not an easy one. Over the last month, take a look at the 10year yield, 26 basis points. New York Crude Oil down 8. 4 . Our two digestive that could bitcoin hard to digest that. And then bitcoin. The s p 500, this chart makes it very clear what is happening. This is a weekly chart. It is longerterm. Down last year, up more recently. Take a look at the breakdown over the summer. Rsi on a weekly basis is going down. Its makes the case for somewhere between 3900 to 4000 easily. Guy that looks like a decent drop. We talked about 5 being acceptable. That looks like a little bit more. Coming up, we need to talk about what is happening with the car story. Ford is tumbling after pulling its profit forecast. The Ceo Jim Farley talked about the negative impacts of the strike. On the story next. This is bloomberg. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Its easy to get lost in investment research. Introducing j. P. Morgan personal advisors. Hey david. Connect with an advisor to create your personalized plan. Lets find the right investments for your goals okay, great. J. P. Morgan Wealth Management. That first time you take a step back. I made that. With your very own online store. I sold that. And you can manage it all in one place. I built this. And it was easy, with a partner that puts you first. Godaddy. Alix this is bloomberg markets. Live pictures of the principal room. Intels ceo joins bloomberg tv at 12 00 noon new york time. Dont want to miss that. This is bloomberg. Its time for etf friday, and this dovetails nicely with a conversation guy and i were having about alternative energy. Cleanenergy etfs getting completely battered despite underlying growth and fundamentals that you wouldve thought would be good. Solar is an industry set for 40 growth this year, but the reason volatility has remained a big hurdle for sentiment. Sure, you can have growth, but at what cost . What your costs like . Guy growth and profitability are two different things, and that we are learning really clearly with this industry. The Solar Industry has expanded rapidly, and it is the furthest down the road, but you are seeing the stocks get dinged up so badly. You look at wind and other technologies. Ewve weve tried to run before we can walk. This technology is clearly going to be huge down the road, but the engineering isnt quite there, the execution isnt quite there. We were talking to darren woods about this. The Oil Companies are good at executing and some of these other committees have yet to learn that skill. It is really clear and it is fascinating to see what is happening. Alix if you have a lot of orders down the road, you ramp up capacity. But what happens if they stall a little bit . It is a cyclical industry that has had full cycles. Guy and they have an and they have not learned the skills of running contracts with the input prices delineated and understood. Alix we were talking about this would seem his energy come they dont know how to take commodity risks. The contracts will be written differently, but that is not the here and now. That does not help the here and now. Guy we should talk about what is happening with ford. Car crash is the wrong word, but these are really bad numbers. A 10 drop over todays is i find perplexing, given that we have understood weird to engage deal with the uaw and we begin to understand the numbers and they are pulling the forecast because they are trying to get lined up so they can present something that is realistic. A Senior Analyst for automobiles is joining us from bloomberg intelligence. A 10 move over todays. On two day. I understand we got a deal done could what is the market struggling with . The market is struggling with the ford model ev unit. Even the pulling of guidance for the rest of the year is more about uncertainty but also not wanting to show. Profitability while you are trying to show big profitability while you are trying to sit down with the union and they are looking for pay increases and concessions. This is about the losses per vehicle and the outlook for the ev unit, which is supposed to be closer to profitability if not at the gross line next year. 37,000 per vehicle in terms of ebit loss in the third quarter. And the other units, ford pro is plus to be 700 per vehicle. Alix i think is really staggering, 37,000 per vehicle. That feels crazy. How on earth do they get to profit . What miracle has to happen . Lowering costs, efficiency, mass demand . Kevin that is the question, to go from so wildly unprofitable granted, it is early innings of the supposed transition that is imminent to electrification. You wonder how you go from 37 underwater to the 10, 12 you are making in internal combustion pickup trucks. That is why the transition has been slow in this country. It is not because they cant figure out the technology or they couldnt scale. They could if they wanted to. It would be very unprofitable to do it. You have two other Business Units in ford blue and ford pro that are profitable doing what theyve always done. The enticement to make the transition is just not there. It may not be for a very long time. Alix you have all the subsidies going into it and money to build the plants. What else has to happen . Kevin, we appreciate it. Kevin tynan or bloomberg intelligence. Coming up, sculptor sweetens the deal for rithm. Details coming up in todays wall street beat. You got this. Lets go. Gobble gobble. Ive seen bigger legs on a turkey rude. Who are you . Im an investor in a fund that helps advance innovative sports tech like this Smart Fitness mirror. Im also mr. Leg day. 1989 anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq100 innovations. I go through a lot of pants. Before investing carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. Alix time for wall street beat, what is buzzing on wall street and the world of finance. Jamie dimon thing is a 140 million worth of jp morgan shares, the first stock sale for dimon since he took the helm two decades ago. Sonali basak joins us now. The market is reacting to this. Put this into perspective. Sonali you are seeing jp morgan shares down 2. 8 on the heels of this news. That was reported in a regulatory filing. Jp morgan says this is for financial diversification reasons. Dimon himself has a lot of stock in jp morgan. Guy he has a lot of stock. I saw the story the first thing this morning and im thinking, james gorman, you have got to be next. Diversification, yeah, great. Sonali diversifying away from jp morgan. Its interesting because Financial Times has a line in their story about not reading it this way guy [laughter] sonali jamie dimon likes to stick around the stock is worth 2 billion according to the bloomberg billionaires index. He doubled down on the stock at different points. It used to be a talking point that he never sold a jp morgan chair. If you have never sold a jp morgan share, your wealth is concentrated. It makes sense, 12 of his total stock holdings, but he still holds hundreds of millions worth of jp morgan stock. Alix just needs to buy stuff, vacay, time house guy is this the first inkling, indication that the process is underway . Sonali at jp morgan the process has been underway for so long. This is concrete. This is definitely some mike mayo came out with a whole note about this, this is also what he sees as reasonable, given the more bearish view of the future. You saw jamie dimon really doubling down, post2008, 2016 guy pretty good things. Sonali yeah, and that is why you are seeing the stock reacting. Alix except his retirement. Guy hes got up at a good idea of what is going on out there. Sonali he says he doesnt like to blow up things for the plug at his treasure market calls the last two years. Alix lets go to the other thing i messed this up in the tease, but rithm amended its bid for sculptor. Is this done . Can we stop talking about this . Sonali its not over till its over. It is something where i [laughter] spent this morning untangling what has happened, what changed. Rithm increase their bid. We get to speak on monday to Michael Nierenberg of rithm and he has been extraordinarily inquisitive. But the support on this is material because him and his Founding Group over at sculptor, that gives him a lot of votes in favor of rithm. The vote is scheduled for the middle of november. We dont know whether the Boaz Weinstein group will come in with arrival offer. They are not expected to, critically because da particularly because dan has given rithm their support. The lockup period and the pay package on the deal. Guy i look forward to the clarity on monday. Fantastic, sonali. Sonali will be back on monday and she will be speaking with the rithm ceo im basically figure it all out by then, or after that, we will have a much better idea of what is happening. You up close is almost upon us. 35 minutes wait, 34 minutes away. European stocks are under pressure. Down a percent a moment ago but now down. 9 . Look at the names getting hit hard today. Natwest lowering its margin guidance. Stock down 11 . Sanfori that sanofi, that outlook has tanked the stock today. Down 20 . There are a whole bunch of stocks in europe today that have been absolutely battered. Electrolux is another one. Q3 missed. Down into q4. None of this looks good. We will pick it apart and figure out how ugly these earnings are. Ron temple will join us in the next hour. This is bloomberg. The chase ink business premier card is made for people like sam, who make everyday products, designed smarter. Like a smart coffee grinder, that orders fresh beans for you. Oh, genius for more breakthroughs like that i need a breakthrough card. Like ours with 2. 5 cash back on purchases of 5,000 or more. Plus unlimited 2 cash back on all other purchases. And with greater spending potential, sam can keep making smart ideas a brilliant reality the ink business premier card from chase for business. Make more of whats yours. You dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh guy ugly session to end an ugly week. The countdown to the close starts now. Announcer the countdown is on in europe. Guy tough wee
comparemela.com © 2020. All Rights Reserved.