kriti: stockmarkets under pressure today paring yesterday's 3% gains, starts right now. kriti: let's dive into the price action. the s&p 500 is in the red. not by much. at session lows it was over 1% you saw that across the board. tech names leading here pulling the entire benchmark higher the nasdaq and higher territory. you see the s&p down 0.1%, what is interesting to me is the bid into the bond market. 3.54, six basis points lower that is something you will see on the back of the hawkish commentary.

the question is how hawkish how dovish we will dive into it with bloomberg's mike mckee in a moment. the dollar takes a hit, it is a very crowded trade. the weakness in the greenback is something that will likely to continue. keep an eye on the, today the bloomberg dollar index weaker by 1%, losing the bid into the commodity sector. before we dive more into the markets, some breaking news. wells fargo looking to cut hundreds more of the mortgage employees on the macroeconomic slowdown. this is the biggest, largest i should say home lender across the country. earlier this year i believe they said they had a 70% drop in fees. the ceo saying they had a concern about them economic -- acro economic drop. we'll put the human aspect aside for a moment, we will monitor the news and bring it to you as we bring you more information. let's go to the macro come at the heart of it is a slowing

economy, charmed -- comments from chairman powell solidifying a 50 basis point hike in december. at the core the same message. why did the rally were -- markets rally 3% off the back of what he said? >> i think he said -- i do not think he said anything substantially new. he repeated the downshift to 50 basis point. maybe the big thing was that coming into the meeting some people are worried he would take a slightly more hawkish perspective. pushing against the slight easing of financial conditions. he did not. he talked about not wanting to over tighten. the markets have heard what they want to hear. they have the rally for the last couple weeks, they want to hear something elvish and that is what they heard -- dovish and that is what they heard. kriti: the logic that she laid out, the expectations that were

so hyper hawkish commentary that is why the -- high for hawkish commentary that is why the magus rally. do you buy that? >> people position themselves when he is going to speak, then they have to react. some people have suggested shorts covering, some people suggest options trading find it. the bottom line for the fed, financial conditions ease when the markets rally. the questions is, how much does it ease? does it seriously work against the fed? kriti: we have the big jobs report tomorrow, we also have a lot of eco-data this week. is there a consensus about what direction things are heading in? >> yes and no. the reason i say that, there is a view that the economy is doing just fine. inflation is coming down. perhaps it is coming down faster

than people think. there is the ism, today glory -- growth, new orders slowed. the yellow line as prices, look at how fast they came down. that would suggest that goods prices will continue to decelerate. that would be good news for the fed. this morning we got the pce indexes that the head all is that is the target range numbers -- that the fed follows and that is the target range numbers. they grew at a slower pace dropping more than people anticipated. inflation is starting to top out, it looks, maybe it has peaked and coming down. at the same time spending and paychecks have come in reasonably high still. the economy is doing ok and inflation is coming down. the question is, does it last? kriti: something we will keep an eye on, bloomberg's mike mckee, we thank you.

like stick with that question. the prices are coming down, will it last? we have the senior portfolio manager at invesco. do you think it will last? guest: i think the fed is looking at both hands of the equation. labor market and inflation. we have seen easing on the inflation side. that is certainly welcome for the fed. we had a massive reaction to last cpi print. these marginal things are having more credence to goods prices are coming off. or maybe stabilizing. powell tried to break that down yesterday. here are all the different components of inflation. what do we have a handle on and what do we have a concern about? can we pivot from this solely backwards looking inflation to the forecast of where we are going? on the other hand is the labor market.

with -- it is like you said with wells fargo. you see headlines in the press with companies reacting and the fed needs to see that as well. powell mention the easy ideas higher than where it -- eci is higher where -- then where it should be. kriti: the bond market has been pricing and for all of this year, i have to ask you are looking at -- some market strategist were pricing in 50 basis point cuts. saying it was priced into the equity market along with the hiking cycle completed. do you agree that cuts are being priced into the market? guest: we are pricing in some level of marginal cuts. what they are -- is powell trying to put a floor on where the fed funds are or a cap? it has been an extreme move we are at 425 at 10s a few weeks

ago we are sitting at 350. yesterday's delivery of content from foul -- powell was not extremely dovish we rallied 25 basis points. there is positioning of hand. there are different plays. the actual level of rates is a bit of -- is a bit extreme to the fundamentals. kriti: you see bond volatility at a time when equity volatility is almost nonexistent. i want to ask what the trade is. if you have this uncertainty, the bond market on the front and it is tied to the hip of the fed, what is the trade? guest: foreign-exchange, on the go forward basis the ability to own -- own. just on the financial condition easing we've seen the last month, without really a change

from the fed, ages -- just a downshift to 50 four december you have almost seeing a move. there is a lot more to go in that pivot from the fed. we are not there yet in a pause and a change, i do not think it will be a straight line move. we have moved a long way. kriti: it is interesting you bring up the currency market of feels like the dollar has been driven by the interest rate differential. it is largely driven by the federal reserve, the bullish dollar. is there a feedback loop? if the yields are driving the dollar and the equity market as well does it back into the bond market? guest: there is some back and forth with it. from a rates perspective we are more willing to say within the range we are less compelled to own your rest duration here -- u.s. duration here.

the foreign-exchange stories of a we are willing to hold onto a bit more. from a longer-term perspective it has room to go. it has room to go. will it be a straight line? no. there is feedback between the two. kriti: when we talk about issuance you start to see a lot more corporate issuance in the last month, amazon is the one that sticks out to me. leading 10 other issuers, it is that an anomaly for november? guest: it is not my expertise. i would say companies are going to be opportunistic. you have had a 75 basis point move in the u.s. in duration and globally across bond markets. is it surprising to see issuers take advantage of it? i do not think so. investors can be choosy here. for strong companies people want to put money to work.

as you go into january, especially globally you have a glutton. of government supply coming to the market investors have options where to put the money. the options of issuance will happen from those strong companies. kriti: we have not gone to hell that bears with europe or japan, for example -- two how that has to bear with europe or japan for example. >> three years since the world's first globally documented covid pace -- case in china they are pivoting to a new way to fight the pandemic. the government is allowing some patients to isolate at home instead of controversial quarantine camps. u.s. and -- european and eu members are start to coalesce around the six dollar price point to cap for russian oil -- $60 price cap for russian oil.

the average british household is paying a price for brexit. according to the london school of economics is put from the european union has added 6% of food bills. a steady says that is due to additional business cost in the form of nontariff barriers in the form of border checks. the chair of the cftc testified on the first congressional oversight hearing on the implosion of ftx. he told them about the need to move forward with legislation to bring more of the capped industry into cftc oversight. he also discussed meetings with sam bankman-fried. >> we met with sam bankman-fried in the last 14 months we met 10 times all in relation with this dcl, clearinghouse application. nine now that 10 times we were in washington, one was a widely held conference in florida this

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kriti: this is "bloomberg markets," i am kriti gupta. we have headlines from washington dc, mitch mcconnell saying senators are about to get a deal from the -- on the rail vote. it will avert a 2 billion-dollar a dana hull to the american --a day hault to the american economy. this could be very contentious, if the deal does not go through you can see a strike on december 5 or december 9 depending on union votes. this is very contentious for the democratic 5 -- party and requires bipartisan support in the senate to get through. sticking with the washington story, president biden set to hold a press conference with french president emmanuel macron today. discussing a number of issues with trade in the top of the agenda -- agenda. >> saying the u.s. ships act and

the inflation reduction act were not properly recorded with european economies and create an absence of a level playing field. he is covering the press conference and the -- those are fighting words from emmanuel macron. how will they move passes when it comes to the relations with the united states? guest: it is very interesting it is rare to see an ally like the french president to come to the u.s. was such a long list of complaints. this was such -- a made mock -- main topic of discussion. they issued a statement promising to continue what -- talking to the working group to resolve the. issues. there is not much that the u.s. can do unilaterally. it is a law through an act of congress. kriti: we send the last hour of

programming, the context of this idea, that the u.s., u.k., australia have a submarine deal was coming off as almost insulting to some of the european economies. talk to us about going abroad not only in terms of funding for a submarine deal, let's talk about ukraine, let's talk about asia. guest: the european economies, france included are facing real economic fallout from the war in ukraine especially on energy prices. that will only become more acute heading into the winter. at the same time european economies are looking at what the u.s. did through the inflation reduction act and the chips act as mccrone --emmanuel macron mentioned. are we opening up another front and a trade war with the u.s.? there is some pressure there. there -- they are trying to balance how far do we push the issue and how much do want to

back off to keep the u.s. as an ally? the u.s. is supplying europe with more more natural gas to make of for the supply cut off from russia as a result of the war. kriti: that is an interesting part of the equation, there exists -- is the need, but the infrastructure is not there yet. that is becoming a political issue as well. what is the french government needing, more than just a guess, we will dive into those details. right now we go to the press conference with president biden and emmanuel macron. >> it is great to see you all today. president macron and i had a chance to spend some time together. a private dinner last night with our wives. we came to tell you where we are leaving. it is wonderful to have him here. we had rate conversations and

always appreciate the opportunity to share ideas with you. i enjoyed our time that we had during our visit. first time i have gotten a private dinner in washington in a long long time. and i had the protection of the french government with me. [laughter] >> all kidding aside france is one of our strongest partners historically. one of our strongest partners and most capable allies. and to remind you all it is also a friend in addition to the president of that good country. we share the same values. we remain a core common agenda to address all challenges together. occasionally we have some slight differences. never in a fundamental way, thus far, as long as i've been in washington. that is more than a couple of years. today we affirm, friends of the

united states, together with our nato allies and the g7 stand as strong as ever against russia's brutal war against ukraine. we talked a lot about that in the bilateral meeting. we continue the strong support for the people of ukraine is a defend their homes and families and their sovereignty and territorial integrity against russian and gretchen -- aggression. it has been brutal. i knew what russia wasn't it by never anticipated it being as brutal as it has been. many reporters know what it is like. today we reaffirm, and as i said we will stand together against is brutality. we will continue the strong support for the ukrainian people as they defend their homes, families, nurseries, hospitals, sovereignty, integrity against russian aggression. i want to thank you mr. president for welcoming the

people of france have given to over 100,000 ukrainian refugees. it is a mark of who you are as a people. they are fleeing putin's barbarous. he thinks he can crush the will of all those who impose his imperial -- oppose his imperial ambitions. attacking civilian infrastructure in ukraine, chalking of energy to europe to drive up prices, exacerbating a food crisis. that is hurting very vulnerable people not just ukraine, but around the world. he will not succeed, president macron and i have resolved to work together to hold russia accountable for their actions and mitigate the global impact of the food war on the rest of the world. the nine states is helping europe diversify away from russian -- united states is helping europe diversify away from russian natural gas an immediate term.

we will continue working in close partnership with europe as we move forward. i welcome the progress we have made in these issues through the u.s. eu task force on energy security. today we committed to deepening cooperation between france and the net states on several nuclear energy through -- united states on several nuclear energy through the bipod -- we share the vision, the same vision in the indo pacific, and a pacific is free, open, prosperous, and secure. will continue our couple operation to defend core principles in the indo pacific

including freedom of navigation and freedom overflight. we are working support the middle east. that is more integrated, peaceful, and prosperous. we want to think president macron for his efforts to bring about the historic maritime boundaries agreement between israel and lebanon. we stand with the people of iran, the french and united states working together to hold accountable those responsible for the human rights abuses to counter iran support for the russian war and ensure that iran does not ever acquire nuclear weapon. as we deny states are looking forward to hosting the upcoming -- the united states are looked boring -- looking forward to hosting the leader summit. france has much to add. we will deepen our engagement working with our african partners, strengthen the governance and security and

economic opportunities across the continent and tackle the global challenges of our time. the partnership extends to cooperating in outer space. coordinating defense of our space activities to strengthening scientific efforts to monitor earth's changing climate. we had a detailed discussion of the inflation reduction act. none of you are curious about that but we did talk about that a great deal. we share a goal in making bold investments in clean energy, and to build the industries of the future, including batteries and green hydrogen. we agreed to discuss practical steps according and align our approaches so we can strengthen and secure the supply chains, manufacturing and innovation on both sides of the atlantic. we ask our teams to follow up on this part as ongoing u.s. eu consultation continues.

we can work out some of the differences that exist. i am confident. france ignited states are leading effort -- and the united states are leading efforts to strengthen global health and global health security. this visit falls on the world aids day, i want to highlight our joint effort to reach our goal of ending the aids epidemic by 2030. it is a goal we set and a goal we will accomplish, a goal we are sticking with. to do it we have all the tools we need. we have to make finishing despite a top priority, not just for the two of us but other nations as well. that is why i am proud to take the baton from you, president macron and host the global fund seventh replenishment fund this year. we raised $15.7 billion, the united states and france the two

largest contributors to the global fund. it will save millions and millions of lives. if i listed all the areas where cooperation and france and the united straits are delivering -- states are delivering meaningful progress would be here until dinnertime. let me close by highlighting the long-term investment to deepen the ties between our people. particularly the u.s. french fulbright program that celebrates the 75th anniversary and has silicate it thousands of exchanges -- has facilitated thousands of exchanges between u.s. students and france over the last decade. it is a key part -- that is vital a lawrence -- vital alliance remain strong for generations to come. emmanuel macron thank you again for all our nations are doing together in cooperation. we build foreign policy along --

around the strength of the alliances. france is the heart of that commitment. i look forward to continue to work with you. as i used to say, in the united states senate, the floor is yours. >> thank you mr. president. thank you ever so much for these words very much reflect the discussions we just had. most importantly thank you very much for your warm welcome. indeed together with my wife, bridget, we are pleased to share this moment with you and your spouse last night. let me tell you how honored and moved we are. both my delegation and myself both to be here. invited by you on the occasion of this first state visit by your administration.

regarding the relationship, you said this morning and you said it again. based on heritage, based on lives sacrificed. i would like to say that over the centuries every time there was something vital at stake, we were there, one for the other. without any doubt. without any hesitation. this is a moment to structure the rest of it. it is the spirit that is prevailing in the current circumstances. since last brewery, i did not -- february, i did not repeat what president biden perfectly described. you describe what we are doing together in ukraine. we clearly condemned this war, immediately we let the diplomatic actions to condemn this war. the war crimes committed by russia on the ukrainian soil. we support both the ukrainian

army that is resisting the ukrainian population resisting as well. please allow me to very much think of the united states of america for all the support provided. this war is impacting the european soil even more directly. you have chosen to invest so much to contribute to this joint effort. in this context our discussion this morning was to confirm the initiatives we will be taking once again in the coming weeks and month to keep supporting. to strengthen our support to the ukrainian troops and enable them to resist. we agreed to work together to support the ukrainian people to help them resist. we can very well see today that the russian war effort is very much targeting the civilian infrastructure. bringing even more violence, to

try to make the cleaning people desperate, and make it impossible -- the ukrainian people desperate, and make it impossible for them to survive this winter. it is why we organized a conference of support ukraine, and reese >> welcome to our audience, president biden speaking with the french president emmanuel macron, let's listen in. >> to find a way, a path to peace by leading this great resistance and organizing for months. we always agree, help ukraine resist, never give up on anything in the u.n. charter, the event any risk of escalation, this conflict and make sure that when the time comes, the conditions to be sent

by ukrainians themselves, help build peace. and i believe your position being so clear, it is important to us because we are both working for sustainable peace. we also talked about the direct consequences of this war including on food security and energy security on the entire planet. within the g20, the chiefs -- g-7, going in that direction and this morning, all of that, all we are doing to try and help -- the conflict on the economies. -- and the recent pieces of legislation by the american administration. like president biden just said we have agrees -- agreed to synchronize.

even with critical emerging industries, everything that is absolutely decided. as we share the same vision in the same willingness. president biden wishes to create more industrial jobs in the long run for his country to build a strong industry and secure your supplies in this is our approach as well. this is why we have trust our team with coordination, and we will coordinate with them, all of the europeans and with you to have an agenda that will only bring more industry jobs in the united states as well as in europe and guarantee the strength of the resilience of our supply chains. and with a strong integration. this european work is also the

one we want to deliver on all of the issues on our agenda and we have just said that we would like to work on a number of topics and yesterday we had some working sessions and our ministers and teams have been working as well so that we could approve an agenda of hope for the future. like i said this morning, in the space industry we search expiration, texpiration, the fu. this industry, here again with common research projects, in particular on the most advanced technique. the industry is very much part of their solution we believe that we will not only will it does bring jobs to enable them

to have secure supply meet our climate objections -- objectives. once we have that number of stakeholders, innovation and delegations to the street, the work that is taking place so that we can do that. last week we had our commitments , feeding our relationship as well. i cannot tell you you once again , your choices, your natural history and your campaign commitments. the fact that you are back on major international -- it is really a new deal and we have been resisting it. now we are able to reengage with you. on this day of world aids day, we continue to work to deliver

by 2030 and i would like to say how much has been achieved by both of our countries which are major contributors to the global fund to of course eradicate needs but also other diseases for the benefit of most. the same goes with our relationship, when we deal with this. we want motivation. we want to promote solutions. but we also vary completely acknowledge a number of initiatives in respect to this state visit. it is about the emerging countries, to support them on both development and climate change. you will be pay -- playing a key role in the summit to build a

new partnership with the north and the south. this is very much along the lines of providing more resources to countries and as well reforming on international and financial institutions, the world bank and international organizations. regarding the biodiversity, we had a lunch yesterday with the relevant partners and they know our willingness -- in particular, we will be working together to prepare for the one forest summit in africa at the end of the next semester. this topic is very much at the heart of the ones who will be conferring with the african countries coming to washington.

so here again -- and lastly, we will continue to work to fight terrorism and action for peace. of course my thoughts go to our soldiers who fell in afghanistan and the middle east, in africa for the past few years to fight for the security of these regions for the world and all countries, and please allow me to say once again that we have committed within our international coalition in the middle east through our military action and we will continue to do so because this fight is not over yet. it is important to remind all of our allies and partners that we need to continue to work to fight terrorism in the middle east and the near east. i would like to thank you for your very valuable support over the past three years and for the

fight against terror, including here. that has enabled us to have some resources over the past few weeks and we will continue to do the work. i could carry on for the entire afternoon, we could talk about the pacific, the way we are organizing our presence in the indian ocean. to put things lights, dear -- light, dear joe, you elegantly thanks france for the role we played in the historical agreement between israel and lebanon. let me be honest, i think most of the work was yours. i think it was the work of utmost importance, lebanon is so dear to us and we need this

accord in the context of what is still on the agenda in the coming weeks and months. ladies and gentlemen, i very much want to thank president biden because what he said i can say as well. you are not just a leader with whom we share many values, many battles. you are someone with whom we have some frank and respectful discussions on any topic. we also became friends. so thank you ever so much for this warm welcome and the importance of being able to spend some time together now. so important for our joint future. thank you. pres. biden: thank you, emmanuel . i began to refer to him privately as my closer mama after that deal with lebanon and israel. we did negotiate but we needed a

closer to get the job done and you did it, thank you very much. we are going to take -- we are each going to call on a total of two -- four total. the first questionnaire is going to be from afp. >> could you first come out you are now saying you're going to better coordinate especially your green economy policies. but yesterday, emmanuel mccraw said -- emmanuel macron said this is impactful for your policies. does that mean you are ready to have exemptions to your industries, and now mike woodson -- now mike question to you. will you leave washington with the assurance that you will be

able to deal with these massive -- the journalist does not have a microphone. [indiscernible] pres. biden: i will answer the last question, i did not hear any of it. i did not understand a word of it so i will answer it. [laughter] pres. biden: the united states makes no apology and i make no policy -- no apology since i voted for the legislation you're talking about. but we are going to write a massive piece of legislation that has almost $350 billion for the largest investment in climate change for all of history.

this is going to be a need to reconcile changes. there is a provision in that says there is an exception for anyone who has a free-trade agreement with us. that was added by a member of the united states congress who acknowledges that he just meant allies, he did not mean literally free-trade agreement. so there is a lot we can work out. but the essence of it is we keep -- and not to rely on anybody else's supply chain. we are our own supply chain. we share that with europe and all of our allies and they will have the opportunity to do the same thing. there are tweaks that we can make that can fundamentally make it easier for european countries to participate or be on their own. but that is something that is matter to be worked out.

it was never intended when i wrote the legislation, i never intended to exclude folks who were cooperating with us. the intention was to make sure we were no longer in a position where there was a pandemic in asia and china decided they are going to no longer sell us computer chips. we invented the things. anyway, my point is we are back in business, europe is back in business and we are going to continue to create manufacturing jobs in america but not at the expense of europe. pres. macron: what we have been discussing with president biden and what we said, it is that simple. the united states of america are making this case for their country, for their industry with

a common objective that we share. creating jobs, creating opportunities for the middle class and succeeding in implementing the energy transition. the reality is that the consequences that we have seen in our discussions, is not the intention of the united states, as a matter of fact, they are growing and developing. it is such a difference in subsidies that these might come to an end. a member of the senators yesterday said it was not their intention. so friends does not compromise for our economy but simply to discuss the consequences of this legislation. the news, the circumstances mean that we have two work together. we need to re-synchronize, find

a new policy for our goals to continue together. it was extremely clear and i could feel the same intent on behalf of the members of congress yesterday. the wish of president biden is to build strong infrastructure -- strong industry here and to secure some some -- technology solutions for the future. france which is exactly the same thing for itself. we have been fighting day in and day out to do the same thing in our country. this enables us to put an end to some 15 years of industry loss in the country and have a new manufacturing job. and to be working on that, we have decided to do it together with europe and the members of the european union, the european commission.

so we will work on technical evidence to make sure there is no domino effect on the projects in europe. we want to succeed together. not one the tense of the other. it has been our discussion this morning and this is the philosophy that we share and the one that we need. presidents will begin on behalf -- in french, president biden -- do you feel like your french friend will be reassured and we feel the way that european friends, and to be able to -- president macron, do you have specific industries in which you are hoping to have some adaptation of the economic policies of the united states?

pres. macron: to be clear, we have more to do on semiconductors, factories. to move forward as europeans. and we are not simply to ask for -- we will agree on the strategy and identify what was identified and we did. we asked the united states of america to adopt whatever laws would be necessary. but we need to have the same ambition and very much a synchronized mission with terrifying things today -- with many things today and in the coming weeks and months we will do this quickly because these projects are ongoing. to me, there are some clear strategy. we had some frank discussions

and in the coming days, the discussions we will be having with the european mission, the discussions we will have in cooperation with our german partners and others, he will enable us to clarify all of this without any difficulty. so i'm going home confident as to what remains to be done on the european side which is a good thing. pres. biden: i'm confident. that is my answer. [laughter] pres. biden: who is the next question? it is my turn to: someone? ok. how about npr. tom. >> thank you.

i had a domestic question and then mr. omicron -- mr. macron, i have a question about ukraine. president biden, do the freight rail workers deserve more than one pay day of sick leave like millions of americans have, and if so why did you not negotiate for that when you are helping negotiate for the contract you want congress to oppose. pres. biden: i love you guys. i negotiated a contract no one else could. the only thing left out was paid leave. i was trying to get paid leave for everybody. the other team, republicans, they said we cannot do it. we are one of the few nations that do not have paid we desperately for workers. in the meantime they got a increase in salary and etc.. a lot of good things happened in that. this is just down over the question of one to 5, 7 to nine

whatever the number is, negotiated paid leave days is going to cost 750,000 jobs and cause a recession. i made it really clear that what was negotiated was so much better than anything the ever had that it is worth -- and they all signed onto it, by the way. only four unions out of the 13 or 14 did not agree. the majority at the time i presented it, they asked me to do it and presented it, they all signed on. here's the story. it does not mean because we are going to pass this, god willing, by friday, by the time -- by the weekend, that we are going to back off of paid leave. i'm going to continue to fight for paid leave for not only rail workers but for all workers. it may surprise some of our european friends that there is no paid leave in the united states of america. we are one of the few major countries in the world that does not have that and it is about time. that is the context in which

this all took place. and labor signed onto it as well it as you will poll initially. thereons out of the 13 or 14 the did not like it. but i think you're going to get it done, but not within this agreement. we are going to avoid the real strength, keep the rails running, keep things moving and i'm going to go back and we are going to get paid leave, not just for rail workers but for all workers. >> president macron, president biden is asking congress for $38 billion of additional funding for support for ukraine. there has been pushed back from republicans in congress saying they cannot continue to run a blank check. do you have confidence the united states will be able to continue supporting ukraine's defense in the past year in the months going forward, and did you talk to president biden about trying to urge ukraine to

negotiate to end the war, especially with winter bearing down and the effects on energy prices? pres. macron: i think president biden and his administration for the commitment to the ukrainian people. and let me just say that our two nations are made of values and history. and it is not just very far from here in a small country somewhere in europe. it is about our values and it is about our principles. it is about what we agreed together in the iran charter. protecting sovereignty and territorial integrity. this is why i do believe that having the u.s. strongly supporting the ukrainians at

that time is very important not just for ukrainians, for the europeans we are, this is why we thank you for the solidarity. but for the stability of our world today. because if we consider that we can abandon the country and abandon the full respect of its principals, it means there is no possible stability in this world. i think it is extremely important to have this. i'm confident because i think your people and your president do endorse, and this is subjective. we will follow up our own supports. we increased our military support, our economic support. we are increasing our maritime support. for the second question you raise, let me tell you that we will never urge ukrainians to make a compromise which will not be acceptable for them. because they are so brave and

they defend their lives, their nation and our principles. and it will never build a sustainable peace. if we want sustainable peace, we have to respect ukrainians to decide the moments and the conditions in which they will negotiate about their territory and their future. >> this will be the last question. >> we hear that you will be talking to president putin anytime soon. what is your approach? as the ukrainian war seems to be the turning point, do you feel realistic that president

zelenskyy is putting condition to open negotiations and that is returning crimea to ukraine? pres. biden: there is one way for this war to end, the rational way. for putin to pull out of ukraine. number one. but he is not going to do that. he is paying a heavy price for failing to do it but he is inflicting incredible carnage on the civilian population of ukraine. bombing nurseries, hospitals, children's homes. it is sick what he is doing. but the fact of the matter is i have no immediate plans to contact mr. putin. mr. putin is, let me choose my words very carefully. i am prepared to speak with mr. putin if in fact there is an interest in him to decide he is looking for a way to end the war.

he has not done that yet. if that is the case, in consultation with my french and nato friends i will be happy to sit down with putin to see what he has in mind. he has not done that. in the meantime i think it is critical what manuel -- e mmanuel said. we must support the idea that -- the idea that putin is ever going to defeat ukraine is beyond comprehension. imagine them trying to occupy that country the next 2, 5, 10 years. if they could. he has miscalculated everything he initially calculated. he thought he would be greeted with open arms by the russian-speaking portions of the ukrainian populations. go back and read his speeches when he said they were going to invade, what i said they were going to invade and they did. he talked about the need for the

people of keefe -- kyiv, this russian identity in the beginning, etc. he has miscalculated across the board. the question is how does he get himself out of the circumstance he's in? i'm prepared if he is willing to talk to find out what he is willing to do, but only in consultation with my nato allies. i'm not going to do it on my own. thank you. pres. macron: regarding your question on the preconditions or the conditions set on the ukrainian president, i believe while it is important for all of us to look at that both ukraine is persisting, suffering from war crimes, attacks on their civilian infrastructure, leading

a counteroffensive. president zelenskyy presented a 10 point plan and we need to engage with him because there is a genuine willingness on behalf of ukraine to discuss these matters. we acknowledge it and we commend it. for a number of years i was in charge of the agreements. the last meeting between president zelenskyy and president putin, the only one, december 2019. i can tell you that i -- a president who was sincere in his willingness to talk and negotiate. and he was elected, until may, president zelenskyy was very willing to talk and negotiate. the one who wanted to go to war

was president putin. i could stay by myself, including when i visited russia and ukraine at the beginning of february. so it is legitimate that president zelenskyy sets some conditions to talk. we need to work on what could be in a peace agreement, but that is part of -- once this has been set, nato will talk to president putin and we talked about it this morning with president biden because we constantly try to prevent escalation and get some very concrete results. i will talk to him about security and safety in the areas that are being claimed, including separation --

zaporizhzhia and the chernobyl nuclear plant. we will continue. thank you so much. >> ladies and gentlemen, distinguished guests, please remain in your seats until the official delegations have departed. jon: joe biden and emmanuel macron, representatives of two countries, an alliance that goes back since the founding of the united states. it continues to be tested. the press -- president of the states reiterating there are differences that they have found a lot of common ground, including their stance with regards to ukraine, russia and some of the broader geopolitical relations. they are still somewhat distant when it comes to the presidents inflation reduction act, but based on comments from emmanuel macron, he appears to be ready to make some compromises to keep that alliance going.