Oil minister made strong comments about Production Cuts. Were going to look at the ripple effects across the energy market. Honeywell singing a different tune. The United Technology is about the prospects for the merger of the two. Target and lowes. Both retailers are in the red before the bell. Stocks falling all around the globe. The saudis ruling out this Production Cut and then data from the api showing a bigger than expected build in u. S. Crude. Of course, well get eia cue out with its own inventories in about 90 minutes. Its been a rough couple of days. Both the chatter and that, jim. Its a hoax, the deal. What they basically said is were going to produce a lot more if iran and iraq produce a lot more. Theyre good for about 3. 25, 3. 5 a day. Not only was there never any deal but they went up to 11. Theyre doing 10. 5. All these people who came on and said they dont care, are they out of their minds . Whats it been . A year and a half . Lets go over the numbers. U. S. Crude slips to hit only 8 8. 7 million in 2016. That needs what the saudis drop. They want to see a 50 drop because theyre seeing a 50 capex like chesapeake. Were going nowhere fast. Short covering. We go back to 2016, which, by the way s a crucial number when you go back over the Conference Call. Big picture, does opec have any power . Theres no opec. Its just the saudis. We were this close to being sel selfsufficient, and we still are, cant we . Unfortunately its the gunk and you didnt have i dont mean to say unfortunately, because those against the big keystone would recognize this. This oil is going to get to their country. Theres no place to put it. And the problem with no place to put it, were only exporting gasoline and thats not enough. We went up because of the deal with the saudis and russians. Youre calling the oil message a hoax. That leads me to believe you dont have trust in this whole bounce that weve seen in the past week with the stocks. I think we got overbought very quickly. I think a lot of companies there were big shifts with the cyclicals. We came back from china and china had five out of six. That bounce has now been unkun and youre look at a freeport and chesapeake. Every night, transocean last night had a bit rate. Its very leavered yoil companies and you over what wells fargo said recently. You realize that theres an Oil Industrial complex that really does include the banks, including the steal companies and freeport and these are right back on the redhot griddle while the consumer is going to do better. I hope that doesnt mean James Bullard who i totally agree with, hes on squawk tomorrow. You guys are simpatico. What does it mean . Jp bank talking about earnings and committed lines and lines that have already been drawn down and lines that maybe. I would point out when a bank is about to go out, it will draw down all available before it files. If youve got any commitment whatsoever to an energy company, even if theyre not currently fulfilled, lets call it medium to small energy company, lets assume it would be. Didnt like that at all. Here theyre talking about their exposure. 44 billion. I quote mark papa who used to come on squawk box all the time. He said there would be a lot of bodies, a lot of bankruptcies. A lot of bad loans have not been recognized at a wells fargo. But j. P. Morgan has reserved it. Stays there for months. Thats nothing. The average Exploration Company loses money at 35 a barrel. Last i looked, were not at 35 a barrel. By the way, canadian tar sands making minus one. Thank you rbn and rusty brazil. You can argue. They are pumping like furiously. The exposure is huge. Now the saudis are sitting there saying when is it going to roll over. Not very soon. Ive got to tell you, wells, not them. How about bank of america. Ill lied to see that number. Wed like to see that number. Wed like to see that number. Do you really want to see that number . I dont know. Brian got a big pay increase. Its stuck in your craw a little bit, didnt it . Youve mentioned it a couple of times. They talked about 21 billion in the exposure but they onto used utilized exposure. The point i was just making. If youre one of the bodies, mark pappa pap pap pa was it. A year ago they thought that was the point and they all got crushed. All im saying is theres a 25, 26 level where i think the banks are understood reserve and the banked are saying theyre fully reserved. The last time i heard i had houses i wanted to give them. This is not the big short two. Jpmorgan is senior. Senior to what . Its a hole in the ground. Maybe you can build some houses. To your point were not talking about skur advertised products on top of skur advertised products, referenced skur advertised products, security advertised products that dont make sense. Youve got to go to norway where it was destroyed. Narvik . Narvik. Let me pull back from my this is simple exposure. The fact is its fabulous. They were hoping to buy all the stock back in the world. I dont know if thiel be able do that. I went back very closely and scrutinized the jpmorgan report and if you go back and look at the presentations, youre not going see this gigantic amount of debt that was now revealed in the fed 9, the fed 10, and yesterdays presentations. So all i can tell you is theres a reason why these stocks are going down and the reason is theres a lot more bad loans than they realize. Theyre discuss southeast cured, the head of others, but an e p company is losing a ton of money. The only places that are really feasible in our country are the scoop in oklahoma and some of the perm i ant. Thats it. If you say so. On a brighter side. Comps up, lowes meantime posted q4 on rating cents in line. Full year guidance were above expectations. Target up. Makes amazon looks bad. This target target looks better. Listen. Now i am talk on my book. Brian cornell really delivered. 1. 5, 2 on the comps. I would not look at the average earnings per share. Home was incredibly strong. Lowes i like it very much and i have a really nice lowes, youve got to start reporting the day before home kai podepot. Come on, guys. Whatever they do they report on the 22nd, report on the 21st. Report sunday, i dont care. Stop reporting after home depot. Youre up against some difficult comparisons. Did you hear . Were you on the comps call. No. Lowes put h. D. Putting up 8. 9, lowes, 5. 5. Theyre always the bridesmaid. Lets give tjx some credit. Again, see, you always have to you like to put it in terms of movies. Was it star wars where you cant compare it. But i do think it was an Academy Award runnerup for the best Conference Call. Tough market yesterday. Stock didnt really do very much. The stock didnt do very much. Thank you for that. Was nthat a surprise . I think oil takes the stock down which is completely wrong. They buyering back stock. Every aisle was good. It did double digits in the south, which was a great. They kid incredible in roofing. You know what . It was an easy winter. In tools they were doing double digits. Their Christmas Season was now. The planning season. Dont take a cue from the stocks and theyre taking the cue from s p futures which is taking a cue from the oil which is taking a cue from the oil minister, a lot of cues. Thats one powerful man in al nigh emeigh. The futures were down. He basically said, listen, over my dead body. The cost is 20 actually the cost is 11. I dont know where he came up with 20. I love the guy, but come on. Theres a lot in earnings. Sales force and transocean. I think another ring might have canceled. Do you know how many idle rings they have . Its extraordinary. All right. Youve taken it to a new level this morning. Youre like this is a personal best for you. You know why . I had a cup of coffee. This is going to happen. I think you dpierng start levitating. Watch it. There would be a screen overhead. Youre responsible. It aint going to happen. When we come back, we ee get honeywells response to utx. Apple versus fbi. Mike pompeo says tim cook should not stand up against the f bii. More squawk on the street in a minute. Your boss . Yourself . Your family . Our Financial Advisors are free to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. Every insurance policy has a number. But not every Insurance Company understands the life behind it. For those whove served and the families who supported them, we offer our best service in return. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. Welcome back. Late yesterday honeywell releasing a press release right before the market closed taking issue with comments made by United Technologies ceo Gregory Hayes about a potential tieup between the two deals. Honeywell for its part saying it believes, in fact, that the combination would not see a material obstacle from antitrust regulators. In fact, they say it would benefit our customers and enhance the ability to offer a more comprehensive solution for them. There you see a quote for them. We told you yesterday honeywell was citing in its conversations that had taken place with United Technologies previously. Of course, those technologies dating back to april and may when honeywell made an approach last september and yet again last week when the two companies had facetoface meetings and a new proposal was presented. 42 of that in cash. The rest of that in honeywell shares. Its interesting they have chosen not to simply say, see you later. Its unclear whether they would have made the same decision had these talks not been made public. They decided not to follow up with a socalled public baearer. Now its been made public they seem to be going a few rounds here. They do not seem to folding up a tent and going home. One of the latest examples of what we may expect. Theyre trying to communicate with their Shareholder Base saying, hey, we see a lot of merits in this transaction. We believe its a transaction that can get done and that would add value to all of the shareholders in the combination. Theyre also telling their own sharmds, were not going to go crazy in the combination, but theyre making it clear, jim, that theyre not done and the question then becomes, okay, what is the response of the United Technology shareholders and if they do get a response and let this hang out for a while. The question becomes does honeywell come again with a higher offer or something that also includes some protection on the antitrust fund. Im not saying thats going to happen but its clear they have yet to say its done. Quite the opposite. How does it work . You have a ceo mr. Hayes comes on. Its very bad for the commerce. Isnt that exhibit a if you want to the antitrust department . It is very difficult when a ceo is saying things about antitrust conceivably to take them back. Heres what mr. Hayes had to say. The fact of the matter governorneance has always been big deal. It amt going to happen. Weve thaerd many times. Were, of course, trying many times to make it clear they were not going to engachlkt many of these take a life on their own. As we talked on and off camera, its also the eu which could be very important if they were to ever actually get together and try to forge a combination. I do think if you own the cob pick and engine and fight language and a lot within the planes, i think anyone at boeing would argue, hey, listen, theres no one to pit against each other. I would argue its basically a way to say, hey, listen, were taking some of your margin away. This is a reaction which i thought mr. Hayes maybe was i wish he had postured less, so to speak f youre trying to put that together. Boeing and airbus have had their way. This is clearly going to be a case of a great debate. Mr. Hayes kind of minimized that one. That was to say, we even got landing gear and engines. Dont mess with us. And they did. They messed with them big time. They dont make any money on it. Its on the service revenue, so they need everything they can. They would be able to go to airbus. Wait a second. Which is kind of what you want. I dont know. I mean if youre antitrust, youre watching this show, youd say, listen, im going bring this guy up there. Well get cramers mad dash. A lot still to come including Oil Inventories in about an hour. Dont go away. They say that in life, we shouldnt sweat the small stuff. But when youre building a mercedesbenz, there really is no small stuff. Every decision. Every component. Is an integral part of what makes the 2016 cclass one of our most sophisticated cars ever. Because when youre setting a new benchmark for refinement, it is the small stuff. That makes the biggest impression. The 2016 cclass. Lease the c300 for 399 a month at your local mercedesbenz dealer. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive wont keep you up at night. N know you have insights from professional investment strategists to help set your mind at ease. Know that planning for retirement can be the least of your worries. With the guidance of a pnc investments financial advisor, know you can get help staying on track for the future youve always wanted. All right. It times for mad dash. We try harder. David, what happened with the world, gm, morgan stanley. Avis with a projection looking for 330 to 343. Theyre now guiding down to 270. David, this was the good one. Remember hertz was the bad one and the guys bought zipcar . This took my breath away. I remember when we got the numbers from the millennials not getting their licenses. Is there a wholesale shift going on . An anticar shift . Morgan stanley says they could be done in terms of gains. You know, im im baffled, im baffled. People are getting in an uber instead of renting. Oneday rentals have increased. Its not clear that uber is impacting them. I would say those who own the stock here, jim, point out to me that you have a 17 Free Cash Flow yield. Thats strong. I thought the order was good. Youre saying, tell me something. What dont we know. The guidelines were so abysmal. Thats the one where theyre winning and hertz is losing. And then im like, are you kidding me . Id like to know more. It raised eyebrows. It raised eyebrows. Perhaps well learn. Have i talked with you about the exposure . A lot more to talk, oil and gas and some of the other things. The opening bell is coming up next. Youre watching cnbcs squawk on the street like from the Financial Capital of the world. Were watching oils and the bank specifically. Some weakness out of europe. This warning out of hmbc that a brexit could crush the pound down . That was incredible. I think that story is being overdone. I dont think theyre going to do it. I do think hsbc has horrendous numbers. You can blame it on anything, but those numbers, man, were awful. That yield is very high. These european banks have not delivered. By the way, in terms of foreign stocks, anyone see that . Thats company that is a joint venture between brazils valet and bhp. When you charge the ceo of the division with homicide implications. On a day where moodsys push brad still further into junk territory. Theres br still. Indoor team cycling events raising money to fight rare cancers. The andersons celebrating its 20th anniversary. I think you had a note, out of gm . Man. This thing was so negative. Resuming coverage. Gross margins expect to fall from 10 to just near break even. I mean theyre talking about an extraordinary scenario that would be enough to be able to wipe out their profits . I dont know. I red this and i said, this is so out of synch with what im seeing. Whats it based on. Its recession. I imagine brazils got to be a part of it. Didnt dan ahman suggest canceling that . They had been realized profitability. Their estimates are 3 below consensus but the bottom line is youve got to sell. Its going to 26. Its incredibly knellive. I think hes been saying, look. The negativity is stabs to affect the market. This is a critical piece. I dont know. It was a little devastating frankly. Yeah. I mean, geez. Midday, viacom saying its received incoming interest from outside parties in terms of investments. Pair mount has been suffering for some time. They kwoited saying some dont consider it a major studio given how few movies it puts out but viacom stock has moved up. Now its down. They bought paramount for 10 billion, of course, many years ago. I made a comparison perhaps a week or two ago to what it might be worth now but thats not fair because it did include Madison Square garden back then. It did produce the tv company which went with cbs. So its not apples to apples versus what they paid now but it isnt anywhere near that. People got excited. Its amazing the number of wouldbe sales and yahoo which, by the way, even more funds wag in on. Canyon sent a letter, another shareholder. Theyve been pretty vocal just saying we want to make sure youre moving this process along. We believe you should sell the core business. So they keep the pressure on. Theyre pretty busy fielding various letters from their ownership. I dont have an update for you right now. But the outgoing calls are being made. There does seem to be some interest. Well see whether it comes to a deal. Wi know the studio has value. Lionsgate doing just terrible. Crushed. Kung fu beganpanda 3 is goo be a big hit. Jamie dimon, get back to that level. On the 11 jp bottomed at 52. 50, which is about two dollars. He may have to do some averaging down. Its a big purchase. Remember, these ceos can flip. It just so happens, he turns out to be worth a lot more than people in the country. If he goes down there what does he own, 6. 75 million shares . Iltss a lot. They say, listen, can we police understand, we it. Im going to give them that. Im going to give them that. If it was wiped out they would still be doing pretty well. Thats how much the banks have saved. Im going to give them that. Are you more concerned about bank of america . Yes. Id like to see bank of americas total exposure, not just the you know, the entire possibilities. Maybe they say, jim, we dont have any more than that. Thats the entire possibilities. Id like to see the e and p breakdowns. They gave you a talk about what exactly they have but not all the companies were doing apples to apples. Wells was using a 42 million number. Bank of america was using a 41 million number. Youre not using the en they gave you the utilized exposure. You have taught me the difference between utilized and total. Right. It doesnt mean it wont be. They would pull down that line prior to filing. Again, the mark pappa is raising money mark pappa came in here the last time he was on, the