At 1275. Oil is rising about 2 for west texas intermediate. Nymex crude is up. What are you watching . Jon whats keeping the s p 500 from being weak on the days the fact that Consumer Discretionary subgroup is up and that has a lot to do with the fact that shares of amazon are up 7 right now. Investors last night were looking at the overall picture for the company. On the cloud side of the business, the indications on the road ahead were enough to give investors some confidence to buy the stock. Intel shares are a standout today as the ceo is pointing to a story of sales growth Going Forward after the challenges they have faced. Those are a couple of positive stories but i want to look at some of the energy names. Oil art oil prices are higher but when you look at exxon or mobil shares, to companies that fell short of expectations in the case of exxon and chevron. Some overseas concerns with exxon. Matt fortunately, we have one of the foremost experts on hydrocarbons with us. Alix steel sat down with her coanchor guy johnson and they interview the exxon ceo darren woods. Listen to what he had to say about the outlook for energy prices. Look at what weve been doing and refining. Weve been concentrating our refinery footprint and concentrating on producing in the lubricant and traditional fuel space but also the opportunity to use our technology to bring in biofuels to make the lower emissions fuels. We feel good about the footprint we have today. You cannot buy that from a refinery, comes from years of an integrated approach to investing in making sure you have a refinery that is producing a Portfolio Products that society needs. Guy none of this happens in a vacuum. You must be watching what is happening in the middle east. To what extent there is the possibility of a repeat of the 1970s with a shortfall or are you diversified enough to avoid that . I also hearing conversations regarding the possibility of a super cycle reemerging. Do you see an eventuality that could lead to that . The industry is still recovering from the impact of the pandemic and the lower levels of capital that have been going in across the industry to offset the depletion. Supplies are fairly tight. Where is demand . You can see real growth in demand, that will challenge the supply base we have which will put more pressure on prices and margins so its where the Global Economy goes in the years ahead. For the next couple of years, it will take time to to get additional capacity coming on. With respect to the middle east, it is still an important region and while to date, the tragic events are not manifesting themselves in an impact, we are keeping a close eye on it. Matt that was the ceo of exxon mobil. Lets bring in alix steel, one of the interviewers. Great to have you on again. What do you think of the numbers and what darren had to say . Alix i wanted to ask him more about lng. And guyana. They will be working together in guyana after chevron is buying hess. They say they are doing all the work. In terms of the broader take, just the amount of oil they expect to get out of the Permian Basin and how much reserves they think are there now because of the technology is totally mind blowing. It changes the game when it comes to geopolitics and offsetting oil price volatility. They are not questioning how they get there but if they get the new technology, that will be tremendous. Jon you mentioned the analysts but when it comes to the Chemicals Business in the short term. Longerterm story is pretty set right now. What will people be watching for . Alix its a demand story and we asked him that as well. There is a lot of weakness in chemical straight up and that usually a product demand story. His take was that supply was ok. He says the demand has to pick up and work its way through. Hes optimistic that will happen but this is a straight up cyclical business. Chevron is getting hit hard. Six Straight Days of losses on the stock and part of that is the cyclical part of the business and the other when they are dealing with his cost overruns on certain projects with issues with co2 and water in the permian. Those are more idiosyncratic to chevron compared to exxon. Jon thanks a lot, great interview. Breaking down the energy story today. We had the chevron and exxon report on the big story we are tracking is the trial of sam. He is testifying today in the highprofile fraud trial of npx. We have been tracking the developments. A denial of defrauding anyone but an admission of mistakes. What can you tell us about the testimony today . He was being contrite when he started out. He said he made mistakes and he said he needed a chief risk officer. After that, he talked about what he didnt to more than what he did do. He painted himself as an out of touch ceo who didnt do that coating, didnt run alameda which is where all the funds went to. He gave up on that and 2021 and turn that over to Carolyn Ellison and he didnt even read the terms of service. He portrayed himself as just focusing on ftx and not concerning himself with a lot of things that were happening. Matt how has this case been . It seems the testimony has been pretty damming. Its another sign that they need to throw a hail mary pass . A lot of their defenses up and cut off and a lot of their witnesses were not able to testify. The a lot of that was limited by the judge where we had a rare pretestimony yesterday where he told the judge what he wanted to say. The judge limited that and said you really cant talk about what you thought the lawyers were aware of. Hes got his story. Is his story about his history at ftx and how he brought Caroline Ellison in. The question will be who the jury believes. Do they believe him or believe Caroline Ellison or gary wang who are some of his closest friends who testified against him in the first three weeks of the trial . Jon just to build on that question, what would have been his options if ultimately they had decided he shouldnt take the stand . It would have been a very short defense case. He only has a few expert witnesses to testify. Thats about it. The case would have been short. Matt great to have you on and we will get you back when we get more. There is a special called ruin and i highly recommend watching this. Its fascinating. Coming up, shares of ford tumbled in the most an eightmonth on the back of the Earnings Release also because of what they didnt say. They are no longer forecasting the kind of earnings they were before the strike so we will dig into whats fueling that in our stock of the our next. Plus taking a look at the broader market, we are seeing a selloff this afternoon. Its the kind of sellout weve seen every session of the last two weeks with the exception of couple of days of small gains. This market has been going now and were just about 41 100 on the s p 500. 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. Jon this is bloomberg markets. Time for our stock of the hour. Weve been watching ford shares move the most in eight months after the automaker missed its earnings estimates. Ford has got labor peace with a tentative settlement with the uaw following gm and pulling its fullyear guidance and investors are trying to assess that now. Matt how much damage is this right going to do to sales is the first thought. Then obviously, the bottom line will be in focus for investors. Lets bring in david welch. Its not getting less busy for you after the agreement with ford yesterday, we are still waiting for stellantis and gm. When will they fall into line . It should happen pretty soon. There is not a lot of leeway for the two companies so not to something similar to the four agreement. There could be some other key issues in their that are a little different like job security at certain plants and that could take time. It should be within a week i would think as they get everything agreed to. If i thought of a major snafu, it would be stellantis guaranteeing a product and some different options discussed their but that could be a fight but the rest of it unless they want to get away with paying less than what for degree to which would be tough, this should be a pattern agreement that gets done in the next few days. Jon when the company outlined the cost of this work stoppage and then starts talking about having to make that up in some way through efficiencies, what will we see from ford . This is tough. This is a pretty rich contract. There could be more cutting and fixed costs and reduce headcount at the salary level. The other thing is the way we seen these Companies Push their products for the past couple of years is through fat pricing with their vehicles. Maybe they stop building cheaper models and only sell the expensive stuff which means they reduce production to get the profits up and that has worked for them. In a market that sells 15 million vehicles, sales are lower overall but the profits have been good and the prices are good. They could do that as well. Matt they can also build fewer moneylosing evs. Its astounding how much ford expects to lose, like 4. 5 billion. It looks like now that all the early adopters have an ev and all the rich people have an ev. Who else is left to buy them if they are not getting massive tax credits from the federal government . You hit it on the head. We are heading into the mass market the ev business. The earlier doctors who Love Technology and have money, they buy evs, buyers want to have the latest thing, theyve gotten theirs. Now youve got to start selling to regular people and tesla has shown us that. They cut prices by 30 so they know they need to appeal to the massmarket. The whole market is headed here. For the companies that are just investing like gm and ford in the major european and japanese automakers, we are seeing them in the situation for some good reason. Jon they are acknowledging the stresses for ford. Thank you so much, another busy week for you. Coming up, we will talk to the cofounder and ceo ofroan as we learn more about big names that are backing the brand next. This is bloomberg. The first time you connected your godaddy website and your store was also the first time you realized. Well, we can do anything. Cheesecake cookies . The chookie manage all your sales from one place with a partner that always puts you first. we did it start today at godaddy. Com thanks to avalara, we can calculate sales tax automatically. Avalarahhhhhh what if tax rates change . Ahhhhhh filing sales tax returns . Ahhhhhh business license guidance . Ahhhhhh crossborder sales . Ahhhhhh item classification . Ahhhhhh does it connect with acc. . Ahhhhhh ahhhhhh ahhhhhh jon this is bloomberg markets. Time for todays for what its worth. How about 500 million which is estimated the menswear brand roan could be worth at least that. It has attracted some highprofile investors from wall street players like blackstone. Also they are part of a group that has 29 of roan. Matt dont forget steve young ever talking about legendary quarterbacks. Im happy to welcome the cofounder and ceo ofrhone. I know the brand already because i play pickle ball. You seen incredible growth of the past few years. What do you attribute it to . Its been steadily building great products and that was our first popup store ever. Retail has been a big part of her growth story. We opened 11 stores in the last 12 months which i never thought we would be in the Retail Business but its a big part of her growth story. Jon we spoke about half a dozen years ago and you were sporting one of your icelandic seaweed vests. You guys always leaned into comfort. Maybe you can explain matt is seaweed comfortable . This particular kind of seaweed. You would be surprised. Jon speaking of comfortable, i know you are feeling pretty comfortable about where the brand is going and thats in part why this deal came together , the longterm private Equity Investor in the business and you worked at this deal and brought in new investors, how did it come about . It was a dream of mine to be able to run the business for a long time and the challenge with private equity and Venture Capital is that they need a certain kind of monetization window. For us, we felt we fell in love with the brand and the business and wanted to build a business and brand for the longterm. I approached our partners and we were able to work out a deal where we could bring in some new investors. We were fortunate with the kind of people and talent and network we were able to bring with this new investor group. Matt they have some really impressive brands at patterson. I think they own birkenstock. Yes. Matt that makes me think about the possibility of you guys doing an ipo or did you look at that as a cautionary tale because it didnt go terribly well with birkenstock. I think birkenstock is a great brand and have done some great things. The ipo market has been tougher for Consumer Brands last couple of years but its not in our immediate future to go public. Were focused on building a brand for the longterm and whether that includes a public future remains to be seen. For us, we want to build the best product we can. Jon in terms of brand value being created, lululemon is someone we track in canada and the market value has increased about 40 billion. That is a brand that over time expanded to focus on men. You were a menswear brand that is now expanded to focus more on women. How will that play out for you . I think there is a long history of active brands that have done this like nike and under armour and reebok. Certainly lululemon was successful in terms of going from womens into mens. If we can make a great product and a great category and show innovation including seaweed, we feel we can win in the market. We have an Incredible Development product team. I also think we have a unique take in the market with our focus on Mental Health and what we call mental fitness. Its about building and outfitting a Holistic Life in active performance lifestyle. Weve got some great product for women that we are excited to bring to market. Matt if i want to buy your gear for the tennis court or maybe pickle ball as well. Does that mean you going to other sports . Could you go into casual office where . We started all activewear. We partnered with equinox in peloton and those kinds of studios. Now some of our best selling products are commuter products. Im wearing a full commuter suit and there is a commuter treasure to prove you can do anything. Iran in the London Marathon inner dresher last year. You never need to take it to the drycleaner. It really is the next generation of products for work, home and lifestyle. For those who are busy on the go as well. We think we can do 80 of the mens closet today. Matt how important is brickandmortar retail versus online . Its very important for us. We can tell the story of the brand better we can grow our audience and we see a lift on ecommerce wherever we open stores. We will continue to open stores. Weve been on a tear recently, 15 stores by the end of this year and we are going to great markets and great centers. Matt great having you and thank you so much for joining us. Thats the cofounder and ceo of roan. We are looking at another down day in stocks. Its been a rough couple of weeks for anyone long equities. It has been the case that yields were a problem and now its really tech earnings thats an issue as we head into a busier week for earnings next week. Jon thats certainly the case we are seeing it in canada, eight down days for the canadian market. If you are not amazon and intel today, the weakness story continues with the s p 500 up about half a percent. The political headlines are capturing the attention of oil and gold Market Investors but the s p 500 is at a session low. This is bloomberg. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. You want to be able to provide your child with the tools or resources they need. With reliable internet at home, through the internet essentials program, the world opened up. Fellas, fellas. Thats how my son was able to find the hidden genius project. We wanted to give yall the necessary skills to compete with the future. Kevins now part of this next generation of young people who feel they can thrive. No clear trend for earnings season, no clear direction for financial markets. Live from studio 2, im romaine bostick. Scarlet im scarlet fu. This was supposed to be a seasonally stronger period for u. S. Equities but you are not saying that play out this way, equities are lower, nobody wants to be long heading into a weekend, and the s p is set to close down 2. 5 percent for the second straight week, entering a
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