Transcripts For FBC The Claman Countdown 20240713 : vimarsan

Stay above the bankruptcy waters. Imax which counts amc as its biggest u. S. Partner, is watching closely. A fox business exclusive with the imax ceo on how hes focusing the lens of his company for the unknown. Plus we will ask him when does he think chinas screens will light up again. They tried to open them, then promptly shuttered them in china. We will ask rich that. And businesses big and small tapping government loans to stay afloat but what about all of those mom and pop microbusinesses desperately trying to survive . The godaddy ceo with us on saving millions of his web service customers. But look, we have green on the screen here. Markets betting the economy is about to get its engines revving again. Whether thats true or wishful thinking, tech is driving a robust rally with the nasdaq poised to exit its bear market hibernation. All the nasdaq needs to see is a gain of just over 40 points. Could it happen with less than an hour to the closing bell . Got to stay with me. Lets start the claman countdown. Liz breaking news. General motors has Just Announced the first batch of ventilators that they have helped make are now ready for delivery to the u. S. Government. These new devices are needed to treat severely sick coronavirus patients. Gm is working with ventech life systems to produce the machines at its indiana plant and said it will ship more than 600 this month. The stock is down slightly about. 66 . Gm moved mountains to shift its Assembly Lines to make ventilators. Good on gm. Johnson johnson is one of the top gainers in this final hour of trade and you can thank tylenol and liftsterine for tha as consumers stockpiled those products. The stock is up 4. 75 but they also have strong cancer drug sales which offset losses in its medical device unit as patients put off elective medical procedures. Some retail records to report to you. Amazon and walmart hitting alltime highs, just a day after amazon announced its hiring an additional 75,000 workers. But with the good comes a little bit of concern here. We are looking at microsoft. Let me pull up amazon for you. The concern comes that a french Court Ordered the Online Retail giant to limit its deliveries within 24 hours to just essential products. Amazon is moving higher by 5. 33 right now. To live nation entertainment. Ticker symbol lyv. The Worlds Largest concert promoter is now instituting hiring freezes, furloughs and major cuts in spending. What kind of cuts . Live nation announcing its cutting Top Executive pay by 50 . Live nation stock is up 4. 75 . In this war between the oil bulls and the oil bears, it really seems the glut is winning over the cut. Prices today are dropping once again now by 7. 66 at 20. 69. Even after the record opec plus supply cut of 9. 7 Million Barrels per day that was supposed to stabilize prices, well, that was swamped by massive demand destruction due to stayathome orders. People just are not driving so they are not using gasoline. Johnson johnson and earnings, when we are looking at that, minus j j which had that good story, earnings kicking off on a disastrous note, particularly for the big banks. Even though it was before the bell, lets check in on jpmorgan stock. Jpmorgan stock is falling 2. 75 after reporting First Quarter profit fell nearly 70 . The Financial Institution said its bracing for a severe recession and will be setting aside another 6. 8 billion to cover what it expects to be potential losses from loans that many consumers, because they have lost their jobs, will struggle to pay. Let me get to wells fargo which was still dealing with this fake account scandal when the pandemic hit. The big bank saw its First Quarter profit sink 89 . It had to take an impairment charge of 950 million on securities because of current economic conditions. That stock down 4. 5 . 30. 30. 03. Tomorrow, we got a lost names here. We are getting earnings from bank of america, goldman sachs, we also get citigroup and Morgan Stanley as well as nearly a dozen other names later on this week. Aside from the banks or maybe just the banks, where will the ugliest earnings surprises be this season . Let me bring in our floor show traders. John corpina, so many restaurants have had to shutter but some are finding ways to stabilize sales. What do you think . Where will the ugliest disappointments really be . Yeah. I think we have to look at the airlines. We clearly keep talking about them. They are the ones that will have a real big trouble getting out of this because even if and when they come back in business, do people still want to fly . Do people still want to travel . Then add hotels into that, add entertainment. All those industries out there have a big, big burden ahead of them. We are getting through Bank Earnings right now. Keep in mind, banks are still open. They are not operating at 100 but they are definitely still operating. The earnings reports that we are seeing now do have Operational Revenue and income coming in and we will see that going forward. Start looking at earnings reports for companies that have zero revenue coming in. Also keep in mind some of these reits out there, some of their tenants will not be paying rent. Large companies, major income and revenue for these reits will the no be comi not be coming in. Thats an area we will have to see some sort of information coming out of there. I can see the reits getting hit for quarters down the road. Liz yeah. Remember, even though we see all green on the screen for the airlines, because they are going to get some major lifelines thrown to them from the u. S. Government, the earnings are going to come in and they will probably take a hit. Phil flynn, give me your picks on who will see big earnings disappointments. You know, anything in the Energy Sector right now. Because everything that john just mentioned, the airlines and everything else, are covered by energy. Listen, we know the banks are going to be big. Jpmorgan, the reason why their numbers were so bad is because they have a lot of exposure in the energy space. Lot of these companies, of course, are not selling any oil. Their profits are minuscule. They are not paying their loans. You will see a lot of those businesses perhaps being taken over by the banks. Were not seeing the type of lifeline to the Energy Industry that we are seeing to some of these other industries. Like airlines and such. We hear a big bailout for the airlines, im not hearing the democrats saying lets bail out all the Oil Companies and shale producers. We are not seeing that. Obviously, the opec deal is going to help quite a bit but i think Energy Stocks are going to have one of their worst quarters probably that we have seen probably in 25 years. Liz well, yeah. And unlike the airlines, they do not look right now very healthy. Lots of red on the screen. John, phil, stay tuned because you know, john, you just mentioned companies that have zero revenue right now. That is the theater companies. Amc and cinemark. Coming up, we will talk to the imax ceo. They dont have any revenue coming in, either, from their screens but they can survive and rich gelfond will explain how. Closing bell ringing in 42 minutes. Make that 52 minutes. We have the Dow Jones Industrials seeing gains of 474 points right now and apple is shining after a surge in demand in china for its iphones. Government data show apple shipped 2. 5 million of its signature smartphones in china in march versus just a half a million phones in february during the height of the worlds second biggest economys quarantine orders. Apple stock up 4. 75 at 286 and change. Coming up, weve got a real power player in the market, fighting not one but two foes. Utility giant pse gs ceo on keeping the lights on during both the spring storm season and the pandemic. The claman countdown is coming right back. re a veteran with a va loan, one call to newday usa can save you 2000 a year. How . By refinancing at todays all time low mortgage rates. And best of all you can do it from start to finish without leaving the house. Its fast, too. With our va streamline refi, theres no income verification. No appraisal. And not one dollar out of pocket. Our team is standing by right now to help every veteran who calls. Liz a raging storm system swept through parts of new york and new jersey yesterday. These pictures show the damage on parts of the jersey shore. Powerful winds ripping down trees and electrical wires, leaving thousands without power just when they need it most. Newark, new jersey based pse g raced to get the lights back on for its customers while following covid19 Public Health guidelines. Right now, the company says power is mostly restored except for a couple thousand customers on long island. Pse g is the Largest Electric and gas utility in new jersey with operations in the northeast and midatlantic u. S. Ralph izzo is the chairman and ceo and we are thrilled to have you here. Talk about when it rains, it pours. Your teams have had their hands full. How are you managing outages during this pandemic . Thanks for having me, liz. It is quite a challenge. The industry has a longstanding history of running to help other companies whenever theres a major storm that is affecting some other company but not themselves, but given the pandemic, the ability to move people around has been greatly limited. So our employees just did a phenomenal job yesterday, as you pointed out, we had 50,000 customers without power at some point during the course of the day, and every one of those customers in new jersey is now we have other customers who are out now but not from yesterday. Similar was true on long island and about 1,000 customers are still out there. Our employees did a phenomenal job. I sit here in the comfort of this environment being able to call out the phenomenal work they did. Liz ill tell you, its one thing that always strikes me after storms, all kinds of Companies Help each other out and you see them up in the cherry pickers and thank you. Thank you for that. Especially at a time when people are staying at home on orders, state orders to stay inside because of this pandemic which makes me wonder about your commercial business and the revenues that are coming in. We are certainly at fox not in the building. I know it looks like it, but we are at all different areas and im wondering what kind of interruption you are seeing in payments and what you are doing about that. So we are seeing a shift. We dont have a lot of data just yet, but what we are basically seeing is an overall decline in the amount, about 5 so far, and its really tough sometimes to separate the effects of the pandemic from the effects of weather. Its been a pretty mild march and april so far so theres a little bit of both at play. But the movement is away from the commercial customer, more towards the residential customer. From an economic point of view, candidly, while that may affect the number of hours we sell, it doesnt affect our profitability too much because the residential customer is a higher margin customer for us, but time will tell. As this plays out, the sustained level of Economic Impact will eventually creep into payment patterns and things of that nature. Liz so what do you do, ralph, when you have a lot of Small Businesses who have zero revenue and they cant pay their bill . Are you giving any kind of buffer or leeway for them . So we have committed to residential customers that we will not shut them off and we will work with them in restoring their payment once theyre back. At present we are doing the same for Small Businesses but we have not committed over the long term in the case of Small Businesses other than to work with them to help them gain access to various government Grant Programs that are available to them. But we were i believe the First Utility to suspend all shutoffs for nonpayment of residential customers. Liz well, im sure thats much appreciated but yeah, at some point youve got a business to run. Yes, its a utility and speaking of which, you raised your dividend recently and now the dividend yield is at about 3. 7 . Looking at beyond the pandemic, once this is all over, your stock is very attractive because of this, but what is the other selling point when you talk about future Earnings Growth . Where do you see the payout heading . Well, i think theres a couple things that make us attractive as a stock. First of all, we are an essential service. By the way, i would be remiss if i didnt express my gratitude and thanks to all the Health Care Providers and First Responders who are keeping us all safe. I love the fact that our employees and our Company Provides them the energy to do their job but they are just amazing in terms of what they have been able to accomplish. But as an essential service, we are pretty comfortable that yes, we will see some decrease in terms of the revenues and sales, but we are not going to see what some other industries have seen. So our Balance Sheet is extremely healthy. Our dividend is secure. I think candidly, as this becomes more expensive, people will see a rocksteady company like ours is something where they can park their money and go to bed and sleep very comfortably with that. Liz ralph, thank you for all you and your employees are doing, and for people out there who just think hes just a ceo in a suit, this guy is a genius physicist. I couldnt believe it. You started your career at the Princeton Plasma Physics Lab working on fusion. Fusion energy. Good luck to you. Thank you. My pleasure. Liz see you next time. Please join us again. Closing bell ringing in 41 minutes and the dow is holding on to gains of 481 points, and the nasdaq looks like it will crawl out of the bear market and close there. We are out right now. Stay tuned. See what happens in another 40 minutes. Meantime, disney getting some of the magic back in the final hour of trade. Disneys stock is moving higher by about 2. 33 after securing a new 5 billion credit agreement. Most of the mouse houses parks are shuttered indefinitely worldwide, though, and the cash burn is epic on a daily basis. Lockdowns also forcing 2019s 7 billion plus Box Office King to postpone major film releases from the black widow to its live action version of mulan but Movie Theater Owners Holding out hope for a hollywood ending to the covid19 crisis come july blockbuster season. In a countdown exclusive, rich gelfond on what it will take to win back movie goers across the globe. Thats next. vo in this world where people are staying at home, many of lifes moments are being put on hold. At carvana, we understand that, for some, getting a car just cant wait. Thats why the new way to buy and sell a car is also the safer way. At carvana, you can do it all 100 online from home, with a touchless delivery and pickup process to keep you safe. And for even Greater Peace of mind, all carvana cars come with a sevenday return policy. Shop now and get up to 90 days to make your first payment. Check out carvana the safer way to buy a car. Liz is the curtain dropping on the Worlds Largest Movie Theater chain . As bankruptcy reports swirl around amc entertainment, Investment Bank b. Reilly today cut its price target on the stock to just 25 cents. Now, the stock is moving higher today by a couple of Percentage Points but nearly a month after amc was forced by the coronavirus to shutter 1,000 theaters and darken its 11,000 screens around the globe, the stock is down about 12. 7 . But year over year, it is down a massive 87 . With the entire movie industry, though, pretty much frozen in place and Box Office Debuts including the live action mulan put on hold, we are joined by rich gelfond, ceo of Entertainment Technology giant imax. Rich, good to hear from you. How are you doing . Hows the team doing at imax . Everybody is doing really well, liz. We are fortunately, i have been around long enough where in the early 2000s, a lot of financials came out in the exhibition industry and we used that time to innovate and do some of the more remarkable things we have done and we are trying to use this time doing it. So people arent sitting around thinking about how we can move forward and make things better. Liz things might be a little more difficult for amc, your big partner here in the United States. Have you modeled for a bankruptcy, whether its chapter 11 which would be reorganization under the best of circumstances, and if so, what does your modeling look like if amc really struggles to survive . On the phone amc is a Great Company with lots of revenues and not only in the u. S. But in northern europe, in the uk and other places in europe and saudi arabia. They just happen to have a challenging capital structure so the starting point is whatever happens to amc and i have no particular insight into that, amc is not going away. Amc will re if they do file, its going to reemerge in a different form with less debt. So were not that exposed to amc, you know, were very current on our receivables and all other things, so as i said to you a minute ago, we have been through this, we have seen this rodeo before and we have survived nicely so i dont know whats going to happen, but we have a very strong Balance Sheet, we have 350 million in cash. We could survive if the theaters didnt