welcome to "power lunch," everybody. alongside kelly evans i'm tyler mathisen. glad you could be with us. we're waiting to hear from.who is holding a joint news conference shortly with ukrainian president zelenskyy. we're also waiting to hear official results of the shareholder vote on elon musk's pay package.

musk claiming victory. we'll discuss that and the other issues surrounding musk and tesla coming up. but we begin with a check of the markets following the fed meeting yesterday, and this morning softer than expected data, including ppi and jobless claims. the dow in negative territory and the s&p back in positive by two and the s&p up 28. we'll discuss the fed's possible moves, and more people seem tock saying the fed is too slow to react. inflation is slowing and the labor market is softening. let's talk to the chief u.s. economist with morgan stanley. a perfect day to have you on. i don't know if you think we're at an important juncture or not. >> i do think we're at important juncture. share pals said we're being cautious and conservative and the data is slowing. look at jobless claims today. we to think this is a pattern

similar to last year were were started to sea the data brake nick at this time but it's already lowering from a different job level. you see the job data. the pace over the next couple of months will be very much in line with the fed's goal so what does that mean? we think that just rip the band-aid off. it's okay to cut, and it's okay to keep cutting, and chair powell is nimble. if you're nimble then just move around the data as it comes in if it turns out you started cutting too soon >> why to we need a rate cut? why do we need it if -- if the economy is doing okay? if inflation is trending a little bit lower, if employment is within a band of satisfactory? >> well, i mean, you're describing a great economy, right? >> i am. >> and everything is slowing

satisfactorily. so if it is slowing you don't need to keep rates at this restrictive level. you should be cutting rates in line with that slowing activity, in loin with that slowing inflation. rates are about billioned right now at chair powell believes. to do that you've got to keep them slowing. >> dean maki is not convinced it's the start of a significant slowdown for a couple of of reasons because of the unbalanced ball sheets. do you think we can weather this -- weather the headwinds, i guess i should say, and make next pangs continue for another year or two? >> yeah. i think those with good balance sheets, and look dean maki, amazing analysis, i've known dean for a long time and he's really got his finger on the pulse of financial balance

sheets and the wealth and how it affects consumers. you're right. it gives you a big cushion. guess who it is cushioning? those with the big balance sheets, those without good balance sheets, those in the middle to lower income levels of the spectrum are hurting, and it doesn't look like that because the wealthy, those with financial assets, those that are sitting on savings, those are doing well, and they are out there spending, so, yes, can we withstand this for longer? absolutely, but we're also hanging our hat on one segment of consumers that if they decide to stop spending, then you will really see economic damage. >> so your prediction is as i read it three cuts this year that would take the fed funds rate down to what, about 4%. ? >> it would take it -- >> we're at 5.25% to 5 now so it will take it to 4 3/4 and we

expect them to continue to cut through the middle of next year injured by our forecast for inflation that we'll continue to hold these lower month over month sequential rates and then the economy will still soften. it takes us to 3.5% by the end of next year. by that time it's a restrictive policy rate or around where it's neutral and there the fed pauses and we have to think about what happens next. the fed could be hiking as the next move after that. >> we've had on don peabodiles, a very astute real estate investor and of the economy as well. he maintains there's a major lurking banking crisis attributable -- attributable to struggles in commercial real

estate which are attributable at least in part to the fact that interest rates have stayed too high for too long. do you see a similar risk of a mid-soyuzed or small bank crisis on the horizon? >> well, look, i think that those segments of commercial real estate, of households, of small businesses, anyone that is more exposed with more balance sheets exposed and is in a riskier situation with high interest rates for longer are going to suffer the effects of the longer interest rates. the question is that segment of the economy that is large enough to drag down the whole economy, and is it enough to create systemic risk? i think from a cre perspective i would say no, and i would say i've seen the fed doing a good job of segregating that area of cre, wrapping their arms around that part of the economy and

cushion things. that's what is keeping people up at night. do we need to ease or balance a bit? that's where the fed should get started. chair powell prides himself as being nimble, that he can move around the data. put aside concerns that you don't want to make past mistakes and ease policy too soon. inflation expectations are anchored. go ahead and cut rates and if you've done it too soon and financial conditions get so easy, just start hiking again. i don't think there's a real risk factor here that the fed should be so concerned about going ahead and getting rate cuts started. >> lost clarity of your viewpoint, ellen. thanks so much for being with us today. really good conversation. thank you. we mentioned yields falling to multi-month lows. let's get a little bit more on that from rick selly in chicago. rick? >> reporter: hey, tyler. let's go to the white board, shall we. we saw the market. yields dropped rather

dramatically as we pointed out. claims popped, we've talked about that especially popping over $1ment will million. treasuries dropped for the lowest yield close. 10s and 30s are on pace for the lowest close since the end of march and both had "as" as in apple on auction yesterday for the 10s and today for 309-year bonds. that's important to keep in mind because it gives you an idea that investors are buying into lower yields because they bought into the auction, and ppi. billing month-over-month drop, but -- but, let's quickly go through this. yes, down .2 on headline. hey, we're up half of 1%. that's a really big drop, but, okay, in october and march of last year, we had bigger drop, and if we look at core-x and food and energy, from zero to .5, another big drop and in march and december we had zero

in both categories. been there, done that, and when you take x food energy and trade, 0.5. was .4. there was a revision. all the revisions were up in the rear view mirror and late last year we were at zero. lower's where it really gets tricky. year over year 2.2, plus 2.3, look where we were january, february and march. 1% and 1.6% and 1.9%. let's look at core. january 2% and 2.2 in february and 2.2 in march. we went up to 2.5% last month and now back down to 2.3%. still higher than the first three months of the year. this one in particular, x food energy and trade from 3.2, 3.2 last lock and 2.27 and 2.8 and 2.9 in the rear view mirror. what does this mean? i'm just saying that it's been a bumping ride, non-linear, and if we're forecasting more inflation maybe to cut rates, well, i'm sorry but none of this really

was forecast as it was happening on the fly, especially before the revisions. kell, back to you. >> it's a double whammy. low ppi the day after the lower cpi. rick, thank you very much. rick santelli. coming up, some musk-see tv. tesla shareholder votes taking place this afternoon. will musk get his massive pay package? we'll find out next. trading at schwab is now powered by ameritrade, unlocking the power of thinkorswim, the award-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab.

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welcome back everybody to "power lunch." shares of tesla are jumping as ceo emufrk says shareholders are set to approve his controversial $56 billion pay package at the company's annual meeting. the official results are expected at about 4:30 eastern time, so let's get to our mini panel to discuss what's at stake. tim higgins is a business columnist at "the wall street

journal" and a cnbc contributor and author of "power play, tesla, elon musk and the bet of the century" and george janorikis who has a buy rating on tesla and a $222 price target. let me start with you, tim. how crucial is elon musk to tesla's future? in other words, if this pay package does not get approved and he goes off in a huff, what would it mean for tesla? >> it's hard to imagine tesla without him, and i think that's why for the last few months that you've seen the stock kind of perform the way that it's been doing, this concern that he -- even if he stayed there as ceo, that maybe he'll take his biggest and best ideas for a.i. elsewhere to maybe his start youth xai and this company in a lot of people's minds is a robot company, a driverless car company, and they want him to enact that vision. that's the gamble. that's the bet of the century. >> how but, george?

what do you think? how critical is elon musk's presence to this company? >> incredibly critical. i mean, he is tesla, and like tim said a.i. as it manifests itself through full self-driving in our opinion it's the future of the company, and what it does is it changes tesla from just another auto oem into a paradigm-changing company by enhancing the gross margin structure of the firm, creating recurring revenue and really setting it apart from its competitors. he really was the visionary behind self-driving at tesla so he's incredibly critical to the company today and going forward. >> i think, tim, it's an interesting question now if the company moves to texas. do you think others would follow suit, and has delaware kind of overstayed its welcome as the hub of corporate america? >> elon in his fight has definitely put attention on

delaware's role there, but it doesn't seem to be -- you don't seem to see a stampede of companies follow him. in a lot of ways elon's fight is personal against the court there. there's been several instances that made him unhappy, and this seems to be the final straw. it is also not exactly clear that being in texas is going to stop the lawsuits. we're seeing several filed in the last few weeks about kind of corporate governance issues at tesla, so even if they do move there, we're expecting to continue to see these kind of fights going forward. >> yeah. >> including over this pay issue. >> yeah. george, on that note there's an interesting wrinkle in all of this that "the wall street journal" was talking about this morning that if tesla had to reset the options now it would set the company back $25 billion. how big a risk do you think that that would really be? >> i mean, look, that would result in more dilution and nobody wants that. we think the best path forward for everyone is just to approve this pay package, the pre-existing pay package which

it appears that they will do and hopefully it passes through the courts. you know, i'm not a lawyer, but it appears that there's probably an easier path eventually through texas here, and we think that that's the best outcome for everyone. it's obviously the best outcome for elon musk, and it's the best outcome for tesla shareholders, because like we said, you know, this company without elon musk is not the same. >> let's try and put numbers on that, george, if we might. just play the hypothetical game with me. i think people generally expect that this pay package is going to get approved but who knows, you never know. what is the company worth if elon musk is a part of it? what is the company worth if he's not? >> look, so, if we were to venture the guess the day he leaves, if he does, we don't know if these are just idle threats. we would expect the stock to be down significantly. look, he said things in the past that he wants to take a.i. efforts outside of tesla. maybe he thinks he can recreate that value at another one of his

companies. we'll see, you know. but, unfortunately, for him he still owns, regardless of his pay package, last time we checked 12% of the company. like i said without that fsd trajectory hitting earnings late in this decade it's just not the same kind of company. there's not the same earnings power from our perspective. what we said in our note it feels like mutually assured destruction. if he leaves 12% of tesla goes down quite a bit. not good for him and there is he leaves and shareholders don't approve the package it's not good for shareholders so we feel like we've kind of met here in the middle and mutually assured destruction and like in the cold war it's probably going to work. >> tim, last word? >> it's been a big game of chicken, his point there. i mean, if tesla shares collapse, then a big portion of his wealth collapses and that gives him other problems. so in a lot of ways tesla needs him, but elon musk needs tesla. >> or to put it differently, elon musk needs himself to be leading tesla.

>> absolutely. >> interesting. gentlemen, thank you very much. appreciate it. meanwhile, stellantis is setting standards but can they meet them with all the news coming out of china? we'll talk about that next. at enterprise mobility, our experts always see another road. because with the right mobility solutions, the path to success is shorter than you think. (♪♪)

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welcome back. let's get to our bertha coombs now for the cnbc news update. >> reporter: hey, kelly, the head of the faa admitted this afternoon on capitol hill that his agency was too hands off in its oversight of boeing. mike whitaker says the agency was more focused on paperwork than inspections. the head of the january 5th mid-flight disaster where a door plug blew out of a boeing plane. he says the agency has permanently boosted in-person inspections in response. the doj issued a damning report on the phoenix police department today accusing the department of using unjustified deadly and excessive force unlawfully detaining and arresting the homeless and protesters and of discriminating against people of color. the doj launched that probe in 2021. the department has not issued a

response yet. and the nfl fined the atlanta falcons and stripped the team of its fifth round draft pick next year for violating anti-tampering rules. the league says the falcons reached out to prospective free agents before the contact window opened. that includes quarterback kirk cousins who the league says had discussions with the team's medical staff ahead of his return this season from a torn right achilles. back over to you guys. >> so many rules. >> all right. >> thank you very much. let's get a check on the markets right now. earlier this week shares of general motors rose to a two-year high after announcing a $6 billion share buyback. today as part of its investor day, stellantis also committing to return money to shareholders, though through buybacks and dividends. the stock, however, falling 3% as you see right there. and the market down about 87

points right now on the dow. down a quarter of a point. joining us now is stellantis ceo carlos tavarez along with our own phil lebeau. phil, take it away. >> thank you, tyler. carlos, thanks for joining us after you guys had your capital markets day in auburn hills, michigan. i saw the presentation you guys did today. you're confirming your guidance for this year that you gave just a couple of months ago, but this second half is going to be challenging, especially here in north america. given your inventory levels, i think a number of people are looking at this and saying are you going to have to increase your incentives in discounting in order to clear out what are really high inventory levels? >> yes. you are right to say that. we will have a very unbalanced year. 2024 is a transition year as we are now ramping up our electrification in the market so we have many null products

coming in the second half starting with the wagoneer-s and the new dodge charger and all of this, it's going to come in the second half so we have a very unbalanced year so far, and you are right to say that there are plenty of opportunities for our consumers to grasp our leadership right now on all of our brands, and we are going to manage that on a progressive manner in the end of the year. >> car low, you guys are targeting generally speaking 40% cost cuts in order to make evs profitable around the world, and there are some places where in europe you're successful with evs, but overall you'll have to bring those cost cuts down substantially. how quickly can you make that happen? 40% is a very high target. >> well, 40% is just the evaluation of the additional cost of an electric vehicle against the internal xwumgs engine vehicle.

that's what the experts are calculating, a 40% cost, and we know that the middle classes want to buy evs at the price of ices, so we need to bring down the cost of electric vehicles the same amount as the cost of internal combustion engine vehicles because the middle class people and middle class consumers they want to buy the evs as the same price as ices and we understand that. it is on us to make significant activity and then find ways to break and innovate in the way we are designing and manufacturing our vehicle. that's on our side to make sure that we bring to our consumers what they would like to have, which is electric vehicles at the same price as internal combustion engine vehicles. >> let's talk about what the topic that gets a lot of attention because you've been outspoken about this. the issue of tariffs on chinese-made evs. you know it's 100% here in the

u.s. europe is now increasing its ev tariffs for those evs coming out of china, but you are -- along with others in the auto industry you're saying we've got to be careful about this, and i say we, overall. the western and european countries need to be careful about this because this goes down a slippery slope. explain your thought process there. >> absolutely. look, this is a very open competition in the worldwide alternative market. we are competing in a very dynamic way against all the other brands, all the other carmakers. we see that the chinese are coming with a 30% cost competitive edge against let's say the western brands, and we need to be able to compete with them. anyway, even if we would be protected in some parts of the world we still have to compete everywhere else in the world against those very harsh competitors, so what we say is

that it is better to compete and make sure that we use this harsh competition to progress faster to bring our costs, our quality, our competitiveness to the best level in the world. if we find ourselves protected in a bubble, our capability to compete everywhere else in the world is going to be damaged because we will not be facing the harshest competition as a consequence of being protected, so the medium and long returns being protected is not what is going to make our companies more competitive, and we need to think not only short term but long term. on a long-term basis it's better to be confronted with the harshest competition you can find on the worldwide market and being protected on the short term could to a certain extent make us become more complacent with ourselves and eventually not do the right things now to make sure the medium and long-term base our companies will continue to be sustainable and competitive against the most difficult competition that we

may find. that's why we're not so much supporters of tariffs. tariffs are here to correct something. they are here to compensate for something. that something looks like a lack of competitiveness and we need to fix it. this is what the western carmakers should be doing, and this is what i'm advocating for stellantis. >> mr. tavares, let me ask you a couple of quick compound questions. are you comfortable with the fleet mileage standards and deadlines proposed by the biden administration most recently? that's question one, and question two is do you think the recent slowdown in evs is something more chronic and long lived than just a -- a temporary slowdown? in other words, is it a permanent turnaway from evs on the part of many consumers? >> two great questions. first of all, stellantis' stance is very simple. we are here to serve.

we are here to support and serve what the society in which we are operating is expecting from us, so we feel very comfortable with everything that has been asked by the u.s. administration. very simple police put, our company stellantis will be a carbon neutral corporation by 2038 so we believe there is no other solution than to bring zero emission mobility to our communities. this is what we believe we should be doing to serve of our communities so we are fine with the road map and objectives that have been set by the u.s. administration. now, once we say this, we need to listen to the consumers, and the consumers are telling us two things. they are telling us point number one, i want convenience of charge so i want to bump in my daily journey on charging units that come to me naturally. i don't want to be looking for the charging unit. i want to find charging units in my office parking, in my

shopping mall parking, in my restaurant parking, in my gym parking. i want to find the charging units, and right now it's fair to say that the density of the charging network is not as it should be to make the consumers confident on that point. the second thing they are telling us is we need affordability, and most importantly the middle class is we want prices at the price of ices. this is a significant challenge to come down on that. are we facing something which is just a transient bump on the road or something more permanent? i think if we fix those two dimensions, the charging network density for the convenience and the affordability, this is just a bump and it's going to ramp up and our kids and grand lids thank us while doing something about the global warming.

from we don't fix those investments, we are look at the investments that have been made. of course, it's not the right time toll do that. >> we'll bring a huge ev offensive this year starting with the wagoneer-1. we'll have the dodge charger as i already mentioned. all of this is coming and we emake their that those products. we are bringing car shares as related to evs and which need to have people to buy the convenience and do our fair of cost reduction in order to meet the expectations of those customers and also compete with the chinese because the chinese will always be there. >> i don't want to prolong this conversation for phil's sake, among others, but i thought your answer was very interesting there because what i hear you

say is that the resistance quote to electric vehicles has nothing to do with electric vehicles per se. it has to do with symptoms of -- of the situation that surrounds electric vehicles. in other words, the scarcity of charging stations and you need to get from scarcity to ubiquity and number two, the price, and once you solve those two symptoms of evs, people will not have a resistance to them. am i characterizing your answer correctly? >> your understanding is perfect and would i like to add to what you say and absolutely understand. each time anybody drives an ev, for instance, if you go to your dealerhsip and the dinner kindly gives you a courtesy card, and if you test drive the courtesy car as an ev, you come back

saying this car is fantastic. this car is much better in terms of vibrations, in terms of acoustics, silence, and this car has had a much better takeoff acceleration than my usual car, and when i go back to my internal combustion engine car, i feel strange that it vibrates so much and i follow strange that there is so much noise, so it's obvious that each time somebody makes an ev test drive, that says -- and this is for a guy who has been working this industry-for-13 years, it's obvious and interests a better card, but we cannot ask the consumers to disrupt everyday life and cannot expect him to pay above his own personal budget. if we fix those issues, the car as a better car will bring naturally the dynamics that we

are all looking for to contribute to fixing the globalwide issue. >> carlos, it's phil. one last question. hybrids outselling evs here in this question. you're having success with your plug-in hybrid electric vehicles. how long do you expect that to continue? is this a two or three-year phenomena or do you think who -- >> on the phe sales we feel very comfortable because we're the top leader. on the top five sales in the u.s. market we have four of our cars in the top five sales of the u.s. marketing and beare by far the leader. the think the phevs will last as long as the customer would like them to last. the phev problem is that on the inside you have two-part trains in one simple car which means at

the end of the day it's more expensive, but phevs are perfect transient solution. how do we characterize the tlansient? it may be a few years or one decade. nobody knows actually, but we will keep on energy and that's for as long as the consumer asks for them. >> carlos tavares, ceo of stellantis joining us from company headquarters in michigan. tyler, i'll send it back to you. >> thanks very much for the interesting conversation. thanks to you, phil, as well. let's get a quick power check on the positive side broadcom beating an estimate and announcing a stock split. on the negative side you've got paramount. reports that talks have stopped with sky dance there. that report out a couple of days ago, but you can see the action in the stock as you watch it

today, down 6%. we'll be right back.

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the information reports that the startup has more than doubled its annualized revenue $3.4 billion since late 2023. most of that coming from open a.i. subscriptions and api access. only a small portion reporting coming from microsoft assure ef-knew in a part because open a.i. is winning morent price deals. a few weeks ago it signed a deal with pwc, and a year earlier pwc put out a dole saying it signed a $1 billion a.i. deal with microsoft. microsoft wasn't even mentioned in the latest one but does benefit. at the same time, microsoft is not sitting back, it's diversifying. the ceo has been amassing new talent and tools and technology. recruited sam altman's longtime rival to lead the a.i. efforts and signed deals with other a.i. darlings. many poem here in the bay area like to say, guys, it's still early days and the new leg though it's shap a

fascinating web and entanglement. mega caps and generative a.i. darlings. >> it was interesting, i don't know if you caught our discussion with sam and steve an end run around open a.i. by making it kind of the back office technology to siri and open a.i. is not paying for even that privilege. >> yeah. >> to the extent that open a.i. is a proxy for microsoft, did apple kind of go one up on microsoft here? >> you know, it kind of did, because this is the very usable a.i. it's not abstract, and by kind of just relegating chatgpt to a feature, it made it look like a feature, not a stand-alone product and apple went so far as to say we'll have other models available. it's kind of agnostic and what other folks talk about the commoditization of the loms that cost hundreds of millions to develop but in the end if you're a consumer they all look the same, do the same thing as accessible as the next one.

>> when am i going to start the see the dividends of this a.i. infrastructure in apple products? >> well, if there's a huge upgrade cycle, right, tyler. i don't know which model of iphone you have, but to begin with it's only going to work on iphone 15 pros and then they will present us, give us a new model in september, and if the a.i., apple intelligence, works as well as it's supposed to, the hope is that this will restart a new apple iphone upgrade cycle, and that's how they will monetize it. >> i sxwloe give away these things for flow. >> i'm embarrassed to say it's my secondary phone. i don't even know what apple iphone i have. >> i don't either. >> the it's something. >> if you didn't boy it in the last year you probably can't use it for a.i. >> i love that. >> they will get you. >> this charger won't work with this phone. i get it. i love it. okay. there you go. >> thanks, dee. >> let's get out to eamon javers

who is following developments at the g7 summit where president biden was supposed to speak an hour ago, eamon, but appears to be held up. >> these things are complicated and the logistics are complicated in scheduling all these folks. we do believe we'll see president bidens and zelenskyy, and we do see them on stage in italy now, both of them taking to their respective rostra in italy. we expect to hear the announcement of a signing of an agreement between the united states and ukraine for $50 billion in financing for the ukrainian war effort. let's listen to the president as we dip in. >> a long-term bilateral commitment with ukraine. president volodymyr zelenskyy and i have just signed that agreement between the united states and ukraine. our goal is to strengthen ukraine's incredible defense and endurance activity for the long term. a lasting peace for ukraine must be underwritten by ukraine's own ability to defend itself now and to deter future aggression any

time in the future. the united states is going to help ensure that ukraine can do both, not by sending american troops to fight in ukraine but by providing weapons and ammunition, expanding intelligence-sharing, continuing to train brave ukrainian troops at bases in europe and the united states, enhancing intraoperability between our military in line with nato standards, enhancing the ukraine industrial base so in time they can supply their own munitions. we're working to build a future for us that is strong, sustainable and resilient, and in supporting ukraine's economic recovery, as well as the energy recovery after rush has repeatedly targeted ukraine's energy grid with massive attacks in a futile attempt to break the will of the ukrainian people. all of these lines of efforts and others are laid out in this agreement. additionally, the g7 achieved a

significant outcome this week, and the matter of russia's frozen assets in europe and other places outside of russia. back in 2022, two days after russia's invasion, members of the g7 and european union worke billion in russian central bank funds outside of russia. i'm very pleased to share that this week, this week, the g-7 sign and plan to finalize and unlock $50 billion from the proceeds of those frozen assets. to put that money to work for ukraine, another reminder to putin, we're not backing down. in fact, we're standing together against this illegal aggression. the agreement that president zelenskyy and i just signed also lays out our shared vision for just peace. a peace rooted in the u.n. charter and territorial integrity. a peace with a broad base of sport around the world, that

holds russia accountable for the damage it has done in this war. we will see this vision strongly affirmed at the historic peace conference happening in switzerland this weekend, that vice president harris will represent the united states. finally, the agreement accelerates ukraine's integration into the european and atlantic, transatlantic community. it includes major commitments from ukraine to impact -- excuse me, to implement democratic economic and security reforms, in line with the european union's accession goals and nato's programs of reform. while we take this step, the united states is also intense fig pressure on russia. yesterday, the u.s. treasury department made clear any bank, anywhere in the world that deals with sanctioned russian banks, companies, or individuals risk being sanctioned themselves. and we announced roughly 300 new sanctions and individuals and companies that are helping russia's war effort.

they include key parts of russia's financial sector -- i'll wait until it goes over. >> as well as individual items supplying russia critical to its defense production, like microelectronics, machine tools, and industrial materials. we also sanctioned more russian future energy projects, that russia's natural gas oil products that are under construction and are not yet fully operating. putin is counting on revenues from these projects. the hour sanctions will disrupt those plans. plus, at the g-7, we discussed our shared concern about countries like china for research and supplying russia for materials their need for their war machine. and we agreed that taking collective action to push back against that activity. let me close with this. you've taken three major steps at the g-7 that collectively

show putin that we cannot wait us out. he cannot divide us. and we'll be ukraine until they prevail in this war. first, the bilateral security agreement just signed. second, an historic agreement to provide $50 billion in russia from sovereign assets to ukraine. and third, an agreement to ensure our sanctions efforts disrupt third countries that are supplying russia's war efforts. that will increase pressure on the russian economy. collectively, this is a powerful set of actions and will create a stronger foundation for ukraine's success. two and a half years ago, putin unleashed a brutal war in ukraine, that has been a horrifying ordeal for the ukrainian people, that are so bravely incredible. it's also been a test for the world. would we stand with ukraine? would we stand for sovereignty, freedom, and against tyranny. the united states, the g-7, and countries around the world have consistently answered the question by saying, yes, we will. yes again and again and again.

we're going to stand with ukraine. thank you, and i now yield to my friend from ukraine. president. >> thank you so much, mr. president biden. your president, dear journalists, dear ukrainians, dear americans and thank you so much, thank you to georgia for a foreign invitation. dear friends, today is a truly historic day and we have signed the strong est agreement in ukraine and the u.s. since our independence and this is an agreement on security and thus, on the protection of human life. this is an agreement on preparation and thus how our nations will become stronger. this is an agreement on steps to guarantee sustainable pace and therefore, it benefits everybody

in the world, because the is russian war against ukraine is a real, real global threat. i thank you very much, mr. president, for your leadership, which is reflected in particular in this agreement and in your years of support for ukraine. i thank our teams, thanks very much for making sure that the details of the agreement are really good. and of course, i want to thank every ukrainian soldier, all of our people whose courage made this level of alliance between ukraine and the united states possible. and i am proud of our people, and what ukraine can do, and i'm very grateful to all americans, to everyone in america, who strengthens american leadership.

so, under the points of the agreement, the agreement continues to worry, detailed, legally mining part, and this means that credibility of american support for our ukrainian independence. secondly, security commitments from the united states are based among other things on the sustainability of security and defense support, not only for the duration of this war, but also for the period of peace after the war. and we will definitely ensure peace. third, it clearly states that america supports ukraine ee's efforts to win this war. fourth, the agreement has good provisions on weapons for our defense, whereas specifically on the better systems, specifically on the supply of fighter

squadrons to ukraine that strive, plural, squadrons, including but not limited to f-16s. we have worked for a long time for these. the agreement is also very specific about the supply of the necessary weapons, joint production, and strengthening of the defense industries of our countries through our cooperation. and this is something that will not only provide security, but also new, good jobs for ukrainians and americans. the agreement also outlines what is needed in terms of intelligence information. the agreement contains key aspects of protecting the lives of our people. fifth, it is very important that the agreement also addresses the issue of russia's just responsibility for this war and its attempts to destroy ukrainians.

america supports both compensation for the damage caused by russian strikes and working out ways to ensure that frozen russian assets are used to protect and rebuild ukraine. the agreement also includes sanctions and expert controls that will make russia feel the pain for what it is doing against the freedom of people's. and two more things. i'm grateful that the philosophy of our security agreement is, in fact, that philosophy of the alliance. and that is why the issue of nato is covered through the text of the agreement. it states that america supports that ukraine's future, future membership in nato, and recognizes that our security agreement is in breach to ukraine's membership in nato. it is very important for all

ukrainians and for all europeans to know that there will be no security deficit in europe, which tempts the aggressor to war and makes the future uncertain. how we are clearly defining everything. we will cooperate. cooperate for the sake of victory, make peace guarantees effective, and provide the necessary security for our people. and thank you, mr. president, for your leadership in the g-7's decision on $50 billion loan for ukraine, it's a vital step forward in providing sustainable support for ukraine in winning this war. russian assets should be used for defending lives of ukrainians, from russian terror, and for repaying the damage aggressor caused to ukraine, is fear and absolutely right.

mr. president, thank you. your team, i would also like to thank the united states congress for their support, both parties, both chambers. thank you and thanks to every american heart that does not betray freedom and supports us. slavo ukraineya. >> thank you. >> now, we'll take two questions from american reporters, and -- a question from two american reporters, and a question each from two ukrainian reporters. first person i'm going to call on is colleen long of the associated press. >> thank you. thanks, mr. president. about two weeks ago, you changed course to allow ukraine to fire u.s. weapons into russia. given the reported successes, would you consider further expanding th