final trade. bryn >> coinbase. >> weiss >> volkswagen. >> josh? >> live nation. >> pete? >> master beverage. >> "the exchange" begins right now. melissa, thanks. welcome to "the exchange," everybody. i'm kelly evans. standing by for president biden who's now expected to address the nation in about 30 minutes' time, and issue new sanctions against russia in coordination with the g7 members he spoke with this morning. we'll bring you the speech soon as it begins a check on the market meantime quirky picture for stocks. dow negative, s&p, though, down

54 half the amount the dow is down, and nasdaq trading in positive territory over the past hour or so it's currently down about 50 points more on this disparate any a moment check on oil, though it's been jumping with all of this going on between russia and ukraine. wti crude over $96 a barrel up almost 5% today. putting continued upward pressure on prices at the pump brent crude widely covered over $100 a barrel tracing back to last night and gold adding another purse. treasury yields, saw move sharply lower last night and stabilized ten year around 193. straight to washington tausche hear from the president? >> much multilateral negotiations throughout the day how exactly to respond to russia president biden holding a virtual meeting with g7 leaders earlier today. this morning a statement reliesed by the g7

said it condemns president putin for his consistent refusal to engage in a diplomatic process, and says the g7 support is consistent and constructive engagement, coordination among major energy consumers and producers towards a collective stability of world supplies in context of russia's further military aggression. a much longer statement. generally what it says with regard to the financial markets and impact on consumers there. also a meeting of the european council, nato summit so several different multilateral engagements making sure all western allies are on the same page getting ready to set a broad variety of sanctions to exact more financial pain on putin. what the samplgsz sanctions cou, learned from public commentary from the white house and those briefed on the matter the next wave of sanctions is expected to

include targets on russia's biggest financial institutions prohibiting transactions with and through those institutions possible export controls on high-tech products and soft heir, if the west wants to cut off russia from acquiring that technology and targeting more individuals with ties close to the kremlin and to president putin. so certainly we could see a wider net cast this time around when the u.s. and the west announce their sanctions for his part, president putin is trying to blunt the impact of sanctions and trying to show some force with his relationship with russian businesses. apparently according to russian media reports, he has convened or invited russia's i.t. sector for meetings a the kremlin you see a video of him holding a meeting withheld of the president of the russian union

of industrialists and entrepreneurs suggested that russia needs to remain engaged in global commerce, despite looming sanctions. clearly, fears within russia and within the russian economy of what sanctions and countersanctions could do to russia's standing in the world certainly it is the white house's intent to exact a lot of financial pain we'll see exactly what the president has in mind, kelly in a few minutes. >> maybe the two most severe steps they could cake, kayla, sounds still off the table regards to access to s.w.i.f.t. and also hitting them on the energy front where it's hard to damage their exports without damaging our imports, our economy as well. >> right, kelly. a few different issues with regard to s.w.i.f.t. and energy. of course, energy, a huge issue with inflation around the world, and really a tough position for consumers. the hope according to my sources, parting targeting

russian bank, sweep up without targeting energy exports themselves and face political blowbackened supply blowback of doing that on s.w.i.f.t., told that europe has never been onboard with this even as recently as this morning, a european official told me despite pressure from capitol hill to put s.w.i.f.t. in this package, europe is not onboard. how effective for the u.s. to say not doing s.w.i.f.t. tr transactions with europe still doing them you need agreement among the countries to actually have the sanctions effective. at least as of this morning, that agreement wasn't there. >>s it's significant most punitive, cut off access to that system, suggesting stiff a difference of opinion between the u.s. and europe as to how severe their reaction to russia's invasion should be. comes down to that core issue. we seem more willing to cut them off.

europeans see more reluctance? >> european companies more inexorably intertwined with russia's their companies acquire and procure way more goods from russia using the s.w.i.f.t. system, to use one example then, say, american companies and consumers do certainly there is, there's a much closer tie between the economies of europe and russian goods and services than there is here in the u.s., but certainly they are in the process of reaching an agreement on a package that they say will exact more pain at this moment while leaving some of those other items, kelly, still on the table. >> true. absolutely kayla, thanks so much. see you soon kayla tausche. cybersecurity stocks a key reason for the nasdaq outperformance's the green on the screen palo alto up, crowdstrike up, cyber, a tenable, and expecting businesses to get uptick as concerns mount about russian cyber attacks on the way and catching traders' attention.

nasdaq sell-off hit 20%, brought in buying. nasdaq 100 relative strength falling below 34 level traders traditionally liked to buy bob pisani has more on the markets. bob? >> and very choppy still in determinative trading. true, nasdaq in and out of positive territory partly on cybersecurity, but really big cap tech look at mega cap tech names flat and slightly positive on the day. there's the s&p 500. opened 100 points down and cut the losses in half big cap tech what's going on? traders are trying to convince themselves that this macro situation is now going to make the fed a little let likely to be more aggressive in hiking interest rates well, maybe. at this point, there's a very interesting trend going on buy some of these big cap tech stocks on weakness and sell big names that have done well, like

consumer staple name these stocks have been out performers recently. so using them as a source of funds today. consumer staples, to buy tech stocks one big problem and the reason doo is underperforming, financial sector, jpmorgan, goldman sachs, visa, weighing on dow. heavily represented in the dow interest rates stopped going up, they're going down at this point weighing on a lot of banks including the big regional banks like giant and higher inflation stocks can do well in modest inflation. 's in severe inflation 7% a lot. have trouble raising prices, corporations over a long period of time. slower growth. not recession, but fed tightening a big problem historically put the three together, they are historical problems for the market. we are looking for signs of a

bottom just don't have it there are technical factors you could look at. is there a drop in selling pressure no multiple 90% down side days followed by 90% upside days? people switching opinions? no divergence in new lows no still hitting new lows kelly, no resolution to this and no immediate sign of technical bottom at all. >> thank you bob pisani down at the new york stock exchange. sell-off in stocks deepening all week s&p breaching late jn intraday lows over the past 15 hours. it is now, 4180. old low, 4222. some expect that to unleash more selling pressure others say entry point. michael darda of mkm partners writing by the sell-off recommending cyclicals value stocks and reopening plays, and from cantor fitzgerald liking tech stock for a short-term technical trading rally. joining me, rnc capital jenker

management do you say on the sidelines here >> no, kelly you have a real opportunity here to do rotation, cactually get ot of names held up very, very well and distinct weakness based on uncertainty here you can, real buys in health care sector we think has been dramatically really undervalued, and clearly is not going to get hurt in this, even if the conflict escalates also on the financial side some of the, again, bob mentioned some of the money centers and regionals hit today, because they feel now the fed may go on hold, and if interest rates don't go up, don't have hike the in rate interest. they're beat up. don't think that's necessarily going to happen. good buys in health care significant stocks some to stay away from

travel industry especially those with european exposure hit pretty hard. might be some domestics. frankly, hit a little too hard not going to stop domestic travel that might be a buy entry. now is the time that -- i don't think you want to buy the market weakness in general necessarily. too much uncertainty and the market will take good news, bad news, just no news >> you expect trade heavy still the next weeks or however long here maybe 5% more down side for the market as a whole? what does it say to you when the s&p sets an intraday low, months later breeches and nasdaq 20% correction often only see in recessions and some other times shake it off those two sort of significant milestones what do they mean for you? >> they mean market sentiment near-term changed. dealing with a situation a fomo.

fear of missing out. now definitely going to afobi. fear of being in everyone mentioned market digests good news, bad news. just doesn't like no news. that's where we are. no one really knows where this is going to go don't know what the outcome will bin' we can look at again fundamentals in the u.s. clearly not changed. companies that might have near-term detriment and those that benefit pap clear long-term benefit for energy, for example. just because it's going to about refocus on being energy efficient, energy independent, frankly, we're going to add ar a million barrels of day in the next year and going to be major exporter probably in the world >> yeah. >> companies that will benefit and just can't -- can't get caught up in the very short term even though the market's going to have pressure frankly, one of your guests, art

cashin, one of my favorites mentioned it good this morning advice 60 years ago someone told him, kid, don't bet on end of the world. it only happens once, and the odds are way against you i think that's what people have to look at now keep a cool head and look for opportunity. >> fair enough i luke you say wars often, always destroy value, often in unpredictable ways maybe that reference to european travel stocks is a reminder. people are right to be concerned heading into an environment like this i don't know what analogies we draw on. there is, i think, some comfort in knowing, yeah there's going to be fallout here not to say everything's going to be hunky-dory, just fine, own stocks don't worry about it. >> that's absolutely right people need to be cautious and which is why i mentioned earlier. you just don't jump into the water head-first i think you can stick toes in, and when you start to really

look at things of where we're likely to be three years from now, there are some attractive entry points knowing there's just no way in the world we're going to predict the next three weeks, next three months certainly not predict the next three minutes. we'll have to be cautious, and i think if you're, if you extended your risk trade you need to take some off the table and go to 23 some things to carry you through this maybe higher dividends, stronger earnings, ones clearly not affected long term. >> thanks very much. good to have you today appreciate it. >> my pleasure. and yields are recovering somewhat after dropping sharply last night diving into safety of u.s. treasury bonds 192 on the ten year at the moment out to rick santelli with more rick >> yes before we get to the charts, anybody notice the rally in treasury yields in the last few minutes? seven-year auction yeah 50 billion seven years today

completing 1785 b5 million in supply who expects less flight to safety and auction, seems like two-fer, doesn't it go through highlights. 1.905 yield. the yield traded in one issue market 1.195. a whole one paces point turned to the screws, which means higher yields lower price. in this case lower yields, higher price a good thing a-plus auction best indirect bidding, of course, entities since '21, direct like pension funds. biggest bid percentage since june of 2019 by far and away winner, dealers who collect leftovers small amount 12.3%. smallest amount since january '18. stellar. get to the charts. two day two year pushed yield down last few minutes. now down 10.5 basis points

low yield overnight 1.45 now down as i said a little over 10 go to the ten year we're down about 7 basis points you see that the curve is steepened about three basis point and also see we're down low as 184 finally booms overseas no different today closed 17 basis point. 0 .7's flatten curve now steepening maybe biggest trading over hit a 22-month flat and that did a reverse from 36 up to 42 finally dollar index should it close here up about 1% the best close going back to june of 2020 guess what means euro is now having its worse close since june of 2020 kelly? >> that dollar strength you can

revisit another market headwind. thanks, rick santelli. events of the past 16 hours definitely having ill act upon the marketen expectations for the social bank's hiking plans steve liesman here with more goldman sachs pushing back saying inflation makes it different this time. what are you hearing >> a bunch of officials told me. so far those who spoken say the situation in ukraine looking at it carefully for financial im impact needs to rise. market itself pricing out more extreme rate moves by the fed. and the cleveland fed president speaking at noon implications of the unfold are situation in ukraine for the medium run economic outlook in the u.s. important to talk about that, also a consideration in determining the appropriate pace at which to remove accomodation. not saying they shouldn't remove it

the president saying, as a result of the russian invasion "not much change in new englander lying logic" space needs normalized market reaction, dial out a chances raising of basis points. 67 a couple weeks ago. checked after rick reported the auction. now down 6%. a very minority point of view in the market and pribdss for future rate hikes remain intact for this year. among the russian-u.s. financial could co connections, pretty small. more, of course, on the european side and russia is a major oil supplier, and other commodities as well. taking russian commodities off the world markets, if it happens through sanctions, could boost inflation and complicate the fed's job. upside, u.s. growth recovering smartly from this omicron wave

in better position to weather it separate down side risk, of course, comes from european economic and financial exposure to russia. greater. watch, kelly for that out here. >> what do you make of this idea, which i think is different now from the last cycle we lived through. 2010 to 2019, any event like this absolutely fed would have moved to the sidelines can they afford to can do that now? basically what goldman said. don't think it changing their calculus that much. >> and saying what i'm saying, others saying i don't see them moving to the sidelines but i see them continuing with rate hikes. maybe it takes the 50 off the table. maybe they turn around if there's a big, dramatic effect on say, for example, consumer sentiment a follow-on in consumer spending and self-reducing inflation more quickly and could mean fewer rate hikes very important, extremely careful wording and saying impact on the medium term could

affect the pace. medium, probably six months, a year out pace means how quickly they do it not whether they do it at all. that's probably close to the center of the committee's view on day one, mind you have to watch this over the coming days to see what sanctions do and overall economic -- >> we know what fed says every term of phrase matters very much. appreciate it. steve liesman. and cheer financial economist with jeffreries is wit us out there some time on the more hawkish end saying inflation is real fed needs to react to it what do you think happens now? are you at 25 a hike, meeting still for rest of the year >> i am. and that's been the message from fed officials so far stay the course. hikes flat and continue to re-a re-assess. we know what the first order effects of this are.

that prices at the pump are going to go up and consumers will have pay more as of right now, when we run what energy prices have done to our inflation models, energy is on track to add about 0 .3 in february and 0.1 in march. near-term, clearly inflationary shock. medium-term left clear right? because we just don't know how consumers will respond right? are they going to stop spending on other things? and sort of turn this into a disinflationary shock. by the way what they would have done over the past 20 years. or are things different now. are they dipping into savings or just demand higher wages turning this into more of an inflation wage spiral. we just don't know i'm leaning towards the latter, but if i was a fed official now i want want to the prejudge or act on a hunch

>> the dovish arguments making rounds talked to tom poorchelli s do you agree disinflationary >> i expect a gap to narrow but don't expect it to close entirely i think households are generating enough income from wages from employment and frankly a lot of savings to dip into that i think there's enough income growth allow service spending to normalize without pulling down on spending good spending doesn't essentially flatline but not full bag then a means if we relief pressures in the supply chain they have to come through increased imports and production good news, seen improvement. surging in the fourth quarter. seen buildup in retail

inventory. supply is catching up to demand but that's sort of where it kind of, most of the work will have to be done it's not, i don't think we'll get much relief from consumers. >> i see people in the past 24 hours or so pointing to retail inventories building saying, look a sign too much stuff, not enough buyers, why home depot a down and why -- have we reached that phase or not >> a reflection point. supply and balances probably peaks around october and started to narrow, but we still have a long way to go even if you look at retail inventory levels they're still below pre-pandemic levels look i.s. ratios, a long way to go and where businesses want them to be, still very low yes, we've made some progress on inventoriance and that should

take an edge off inflation the next few moss but have a long way to go before we get to a normalized situation. >> i.s. inventories, inventory and supplies and what about consumers tapped out savings? how much fire pow er is left to sustain spending >> looked at cash holdings across the income distribution, for 80% of the population, the top 80% of income distribution, cash levels are still very elevated they're at levels relative to income we haven't seen since the '90s so, yes. there are pockets of potential stress and weakness. talking about bottom 20% of the u.s. population. where there really is not buffer right? those are those exposed proportionately to rising energy prices as well again, 80% of the population is still sitting on very

significant cash buffers i also would add that for those lowest income households, they're actually enjoying the fastest wage growth in decades right? they are leading the charge in terms of wage inflation, which is something we haven't seen in over 30 years. so, yes, in terms of saving but still enjoying pre-robust wage growth >> a little buffer for them. >> time, consumer sentiment. fall in the camp that that's -- this sentiment weak for other reasons not a leading indicator and in answering that, you don't think inflation is coming down in the near term tying the fed's hands here >> so i think the sentiment completely deckcoupled from spending and almost more of a reflection of maybe the political environment more than the economic backdrop. so it's clearly driven by how people respond to inflation, but i think a lot of those answers

are maybe politically motivated. the -- so, you know -- i do expect europe, for the latter part of your question, i do expect infliation to slow. right? peaks and balance, improving, even housing rent inflation reflected around september started to slow. cpi logs that by about six months look i thinkgoing from seven-plus percent inflation to three is going to be, you know, relatively easy. what's going to be hard is squeezing that last percentage point, getting from 3% to 2% inflation, which i think is embedded in the labor markets. that, i think, lastly people ultimately have to be squeezed out by the fed i think at some point we're going to have to price in more hikes for next year, but probably a debate the market's not ready to have until well

into the second half of the year. >> fas fascinating. thanks for joining me today. joining me from jefferies. breaking news out of washington reports out now that president biden has been informed that cyber attacks against russia are an option. let's get to eamon javers for the details. eamon? >> kelly, recording from nbc news now suggesting that president biden has now been presented with the option for u.s. cyber strikes that could take place inside russia that would have a goal of slowing or halting the russian advance into ukraine. this is not to say that these options have been taken, or that president biden would take any of these options, but nbc news is citing four sources familiar saying among those options are disrupting interneglect connectivity acroskcross russia shutting off electric power and shutting off railway switches.

offensive cyber strike capability inside russia designed to slow down this advance. that is not something the united states has ever done before. this would be an entirely new form of warfare for the united states and, of course, there is no guarantee that president biden will choose to enact any of those options, but you can imagine a whole rangeof option now considered inside the white house as they look for ways to respond to this russian aggression and we will hear from the president shortly this afternoon. may get some indication of the direction he intends to go of course, the concern on the part of all observers here is that threat of escalation. if the united states takes action, what does russia do in response and what does the united states feel it has to do in response to that and on and on up the escalation ladder we used to worry about during the cold war that kind of worry is back on the table now. >> i was going to ask. performance of the cyber stocks already suggest they're sniffing

this possibility out, do we really want to go down the road of inviting a response, when already we've been victims of some cyber attacks by russia that have been pretty severe if we're going to open that can of worms, how are we going to make sure corporate america, our energy infrastructure, power grid, all of these different local governments, schools, that they, that they're all ready and protected? >> well, look. i mean, there's one school of thought saying we're already opening that can of worms even if we don't go forward with offensive cyber strikes in russia, there's no indications the president is planning to do that, but the president is reportedly planning on a range of tougher sanctions against the russians theorists believe that the russians could respond to that with cyber attacks against the united states. i talked to dmitry opperic, a cybersecurity expert looking closely saying the colonial

pipeline we saw, the attack over the summer causing gas lines up and down the east coast was just a ransomware gang. russian intelligence has capabilities inside the united states to do damage that are much, much greater than that we could see, you know, colonial pipeline times 100 just in response to u.s. sanctions here. if the u.s. moves forward with sanctions this afternoon, what's the russian response to that and are we already on escalation ladder the question becomes, what's the political pressure on leaders in the west and in russia to either escalate or to de-escalate if the pain gets too intense. >> great points, eamon a tricky one appreciate your reporting. thank you so much. eamon javers in washington. president set to address invasion of ukraine. expected to announce more sanctions. already tweeted this was done in cordonation with g7 partners on the call this morning. awaiting his appearance and details. how far-reaching and punitive to the sanctions be and mean for policies here and in europe? joining me, senior fellow at the

council of foreign rnelations ad professor at georgetown university and welcome to both of you charles begin with you you just heard what eamon said about cyber attacks. what should we all be expecting at this point? >> well, i think we can conclude that we're not going to be able to block or seriously blunt the russian invasion they've already begun to suppress ukrainian defenses. i'm guessing we will see forces in and around kyiv pretty soon so, yes, we have option of cyber offense against russia, but to some extent that widens the front and engages the united states more directly in the conflict i'm guessing that we're not going to see that option at least at this point. what we're looking at is number one, very significant, severe economic sanctions number two, reinforcement of

nato's eastern flank, because if putin is willing to invade ukraine, might he test nato? and, three, i'm guessing we will see an effort to begin to get arms and other kinds of support to the ukrainians to resist russian occupation and in many respects the best way to defeat putin. can't stop his military, but we can spoil his occupation. >> let me follow-up on that point a moment cyber attacks, if they're ruled out because they would invite too dramatic an american response, if shutting them off from s.w.i.f.t. is ruled 0 ut because it would have too bad economic repercussions on europe, what are the additional deterrent measures that still exist? or does this, i think the ambassador hinted last night at well are we were all just hoping that the ukrainians are able to somehow hold the russians off? or, you know, continue down this path for as many years as it takes to go the afghanistan route and hope that at some

point they simply outlast this effort >> i wouldn't presume that cyber and s.w.i.f.t. are off the table. we're still in the early stages. we could see things escalate over time. but you are talking about very significant far-reaching commercial sanctions against russia. but in my mind, putin knew this was coming he made a decision to go forward even though he knew what kinds of consequences it would bear. where i think he's taken a leap into the dark is what comes after a successful invasion? does he really think he can install a puppet regime that will enjoy the support of the ukrainian people does he really think he can hold down 44 million ukrainians who know longer want anything to do with russia? that's where i think we will see putin's achilles' heel. >> dan, what would you add to this and focus investors' attention? >> i would start saying the

economic sanctions will be pretty tough won't stop putin, but first, what i call the first real round of economic sanctions, coming today, will be pretty biting on the russian economy. i just don't think putin really cares about that economic damage where you could see in the further round. particularly prevention of dollar clearing on certain industries u.s. reluctant to use that and very different than s.w.i.f.t., but one that is going to be on the table if it continues to escalate i tend to believe we're in a period of heightened volatility here this will be determined by how long this effort goes on if russia can clear out the ukraine government in two or three days, then it will become a much more silent, behind-the-scenes fight. cyber starts to become a bigger issue. we just have to adjust to it our ultimate thesis, post-cold war era coming to an end borders changing and investors have to adapt.

i argue, kelly, more defense spending, month are cyber spending and most importantly renewed focus on fossil fuels involving the united states and europe, which is very different than the trend we've been on over the last few years given the esg moment, but the world is about to disassociate itself with putin and they're going to need the energy security to be able to provide for that. >> absolutely. u.s. on pace to be the number one oil and lmg exporter before we hear from the president, to dan's point, very severe reportedly. the russians have the highest amount of international reserves apparently they've ever had. according to rbc, $630 billion seems somewhat preparing for this moment. how might that financial cushion change the response here >> there's no question that they've been preparing and not just the big reserves that you mentioned, kelly it's also the repatriation of supply chains.

deepening commercial linkages to china, which happened after 2014 when we first hit them with sanctions. but i do think that what putin is doing here is miscalculating about the strength of the west he looked at political polarization in the u.s. britain has left the european union. chancellor schulz is new he's untested in germany i think he thought he could crack the west divide u.s. and europe divide countries within the european union so far he's wrong. we've seen incredible solidarity sanctions applied in unison, shoulder to shoulder with european allies. i think that putin really has overreached here he's taken a big bite rather than a small bite. over the long run, i think it's going to come back to haunt him, but as dan was saying, we all better fasten our seat belts there will be big impact on defense spending, big impact on

energy prices, and we need to prepare for something that's going to look like cold war 2.0. >> dan is there something that putin can be offered still at this point as part of a negotiation, a way to save face? some de-escalation or stepdown >> there was a hope he could do that when you seen an "operation deford shield"-like formation, he made this decision a long time ago making statements ukraine should no longer exist. and ideologicaological way to r the soviet union what we see in terms of unity of the west if the unity holds it will be harder for him to go forward particularly in the u.s. is reenforcing along the boreders of ukraine i believe we will

start to see nato reinforce those positions. putin is very flexible but on a clear ideological in addition to rebuild the russian empire, and i think that we're just going to have to wait this out and hold ground ground. >> that unity hold feels like the key thing here thank you both dan clifton, charles kupchin speaking about these matted rs. and present topping $100 a barrel wti crossing that mark first same since 2014 before pairing back gains natural gas prices up and russia is the world's second larger producer of nat gas. largest felt in europe where russia supplies 27% of oil imports. just 3% of our imports come from russia more on this impact bring in andy lipo. president of lipo oil

associates great to see you what options does the white house have to ease the pain on consumers here >> well, limited probably biggest option they could do is suspend the federal ex-size tax on gasoline which is 18 cents a gallon, and also suspend the federal excise tax on diesel fuel, which is 24 cents a galland and would have immediate reaction at the pump there are few. do a coordinated release of the petroleum reserve, add more temporary but doesn't solve the problem getting more oil out of the ground and already have seen in july 2020 draw of spr about 74 million barrels. >> seen a draw already seen levels that, somewhat of a lower ebb than normal and this would add to that. the other options we've seen politically floated at least would be maybe some kind of gas tax holiday, but that would

actually encourage potentially more consumption or not as big demand meaning demand for crude stays same oh go higher. what impact would that have? >> that would continue to give upward pressure on oil prices. the other thing that the government could do is they could pressure saudi arabia, the eyed arab emirates and kuwait to utilizes some of their spare capacity, which is estimated in aggregate to be about 4 million barrel as day just to simply add more supply to the world oil market that would have a -- a negative effect on oil prices and if we should come to an agreement with iran, that could let loose over 100 million barrels of crude oil in floating storage and would ultimately see a run increase of production by 1.3 million barrel as day. >> right ironic that in ways having to warm relations with toirn get

their barrels as one way to offset the loss from the escalation in russia what about the options for u.s. drilling, andy, for the pipeline infrastructure and the rest? how quickly, even with imaginary executive order to get things going, how quickly could we see a response here? >> pipeline infrastructure in place, more than enough to export additional barrels of crude oil. just going to take tyke to get more oil out of the ground already seen exxon and chevron increasing production by 25% and 10% respectively, but the increases will occur over the next couple of months. altogether we expect u.s. production will increase by 600,000 barrels a day year on year, once again not a today thing. it's what happens eventually >> so finally, give us a sense where prices at the pump are today and where are they headed based on the current trajectory? >> today gasoline is about $3.54

and diesel national average $3.96. i expect rise about 20 cents to 30 cents a gallon over the next several weeks especially under today's situation. i should point out, if we haven't seen supply disruption yet, prices have risen in anticipation of a disruption if that is off the table, we can see oil prices fall back >> yeah. wouldn't that be nice? for now, faced with high prices and a lot of concerning talk andy, thanks for joining me today. appreciate it. let's turn to shepard smith standing by as we await president biden and, shep, just been a long wait for further details on these sanctions. >> you know, they have a lot to go through eamon's reporting earlier is notable that they have a whole range of possible sanctions. some about what's happened already. some about kinetic activity on

the ground now for instance, would the united states authorize the shutdown on a temporary basis of the subway system in and around moscow in an effort to grind things to a halt and part of the consideration would be, what would russia do in response to the united states we all remember the oil pipeline and the trouble caused there in the united states. so you don't want to get into a tit for tat situation. what happens now is not only extremely important but outrageously complicated one thing leads to another our history books tell us what can happen if things escalate and it can happen quickly. in fact, kelly, just gotten into the newsroom in the last few flints reuters news service, talk about that. bombing in the south the president's here. >> shep, thanks. the russian military gun a brutal assault on the people of ukraine without provocation, without justification, without necessity. this is a premeditated attack.

vladimir putin has been planning this for months, as we've been saying all along he moved more than 175,000 troops, military equipment into positions along the ukraine border. he moved blood supplies into position, and built a field hospital, field hospitals telling you all you need to know about his intentions all along rejected every good faith effort united states and allied partners made to address security concerns through dialogue, to avoid needless conflict and overt human sufferings for weeks, for weeks, we have been warning this would happen and now it's unfolding largely as we predicted's in the past week we've seen shelling increase in the donbas region in eastern ukraine controlled by russian-backed sp separatists. the russian government perpetrated cyber attacks against ukraine. saw a staged political fleeter

in moscow. outlandish and baseless claims that ukraine was about to invade and launch a war against russia. that ukraine was prepared to use chemical weapons's ukraine committed agenocide. without any evidence we saw flaig grant violation of international law in attempting to unilaterally create two yu so-called republics on sovereign ukrainian territory. and at the very moment that the united nations security council was meeting to stand up for ukraine's sovereignty, to stave off invasion, putin declared his war. within moments, moments, missile strikes began to fall on historic cities across ukraine then came the air raids. followed by tanks and troops rolling in we've been transparent with the world. we shared declassified evidence about russia's plans, and cyber

attacks and false pretext so there could be no confusion or cover-up about what putin was doing. putin is the aggressor putin shows us war, and now he and his country will bear the consequences today i'm authorizing additional strong sanctions and new limitations on what can be exported to russia. this is going to impose severe cost on the russian economy both immediately and over time. we have purposely designed these sanctions to maximize a long-term impact on russia and to minimize impact on the united states and our allies. i want to be clear the united states is not doing this alone for moss we've been building a coalition of partners representing well more than half the global economy. 27 members france, germany, italy as well at the united

kingdom, canada, new zealand and many others simplifying joint impact of our response i just spoke with the g7 leaders this morning, and we're in full and total agreement. we will limit russia's ability to do business in dollars, euros, pounds and yen. to be part of the global economy. limit their ability to do that. we're going to stunt the ability to finance and grow the russian military. we're going to impose major, and impair their ability to compete in high tek 21st century economy. already seen impact of our actions on russia's currently in the ruble, which early today hit its weakest level ever ever in history. the russian stock market plunged today. russian government borrowing rates spikeed by oever 15% and today's sanctioned russia's bank

hodding over $1 trillion in assets and cut off russia's largest bank that holds mother than one-third of russia's banking assets by itself cut it off from the u.s. financial system today we're also blocking four more major banks that means every asset they have in america will be frozen. this includes v-tv second largest bank in russia with $250 billion in assets. as promised, we're also adding the names of a list of russian elites and their family members that are sanctioning, that we're sanctioning as well. as i said on tuesday, these are people whopersonally gain from the kremlin's policy and should share in the pain. we will keep up this drumbeat of those designations against corrupt billionaires in the days ahead. on tuesday, we stopped the russian government from raising money from u.s. or european investors. now we're going to apply the

same restrictions to russia's largest state-owned enterprises. companies with assets that exceed $1.4 trillion some of the most powerful impacts our actions will come over time as we squeeze russia's access to financing and technology for strategic sectors of this economy and degrade its capacity for years to come between our actions and those of allies and partners we estimate cutting off more than half of russia's high tek imports. strike a blow to building to continue to modernize their military doing grave to aerospace industry including their space program and hurt their a lot to build ships, reducing their ability to compete economically and a major hit to putin's long-term strategic ambitions and preparing to do more in addition to the economic penalties imposing also taking steps to defend our nato allies.

particularly in the east tomorrow nato will convene a summit, we'll be there, to bring together the leaders of 30 allied nations and close partners to affirm our s solidarity and map out the next steps to take to further strengthen all aspects of our nato alliance. although we've provided over $650 million in defensive assistants to ukraine just this year, last year, let me say it again. our forces have not and will not be engaged in the conflict with russia in ukraine. our forces are not going to europe to night ukraine. but to defend our nato allies and reassure those allies in the east. as i made crystal clear, the united states will defend every inch of nato territory with full force of american power. and the good news is, nato is more united and more determined than ever.

there is no doubt, no doubt, that the united states and every nato ally will meet our article v commitments. which says in an attack on one is an attack on all. over the past few week woulds i ordered thousands of additional forces to germany and poland as part of our commitment to nato on tuesday in response to russia's aggressive action including troop presence in belarus and black sea impl implemented ground forces to estonia, latvia, lithuania, poland and romania our allies also have been stepping up adding the other allies the rest of nato, adding their own forces and capabilities to ensure collective defense and today within hours of russia's unleashing its assault nato came together and authorized and activation of response plan. this will enable natos high-readiness forces to deploy

and when and where they are needed to protect our nato allies on the eastern boundaries of europe. now i'm authorizing additional u.s. forces capability to deploy to germany as part of nato's response including u.s. you-based forces department of defense placed and standby weeks ago. also spoke with defense secretary austin and chairman of join chiefs general milley about preparations for additional moves should they become necessary to protect our nato allies and support the greatest military alliance in the history of world nato. as we respond, my administration is using the tools, every too many at disposal to protect american families and businesses from rising prices at the gas pump we're taking active steps to bring down costs and american oil and gas companies should not, should not, exploit this moment to hike their prices to raise profits. you know, in our sanctions

package, we specifically designed to allow energy payments to continue we are closely monitoring energy supplies for any disruption. we've been coordinating with major oil producing and consuming countries towards our common interests to secure global energy supplies we are actively working with countries around the world to elevate collective relief from the strategic petroleum reserves of plager countries and the united states will release additional barrels of oil as conditions warrant i know this is hard, and that americans are already hurting. i will do everything in my power to limit the pain the american people are feeling at the gas pump this is critical to me but this aggression cannot go unanswered if it did, the consequences for america would be much worse. america stands up to bullies we stand up for freedom. this is who we are

i also repeat the warning made last pursues cyber attacks against our critical infrastructure we are prepared to respond to months working closely with the private sector to harden cyber defenses sharpen our ability to respond to russian cyber attacks as him that the united states together with our allies and partners in europe will support the ukrainian people as they defend their countries. provide humanitarian relief to ease their suffering and the early days of this conflict russia propaganda outlets will try to hide the truth and claim success against a made-up threat but history as shown time and again how swift gains in territory eventually give way to grinding occupations acts of mass civil disobedience. and strategic dead ends. next few weeks and months we harden the people of ukraine

putin unleashed a great pain on them but the ukrainian people have known 30 years of nmd. they have repeatedly shown they will not tolerate anyone that tries to take their country backwards. this is a dangerous moment for all of europe, for the freedom around the world putin has committed an assault on the principles that uphold the global peace now the entire world sees clearly what putin and the criminal allies are really all about. this was never about a genuine security concern on their part it was always about naked aggression putin's desire for empire by any means necessary, but bullying the neighbors, by changing borders by force and by choosing a war without a cause.

the action betrays his sinister vision but it is a vision that the united states and freedom loving nations everywhere will -- partners and allies will emerge stronger more determined and purposeful and putin's aggression will cost russia dearly economically and strategically. we will make sure of that. putin will be a pariah on the international stage. any nation that counts russia's naked aggression against ukraine will be stained by association when the history of this era is written putin's choice to make a totally unjustifiable war on ukraine will have left russia weak weaker human dignity, the forces far more powerful than fear and

oppression they cannot be extinguished by tyrants like putin they can't erased from people's hearts and hopes by any amount of violence and intimidation they endure. and the contest between democracy and autocracy, between sovereignty and subjugatiot. may god protect our troops. >> mr. president >> associated press, zeke? >> given the -- chance to speak with president putin at this point? >> i heard the first part. do i have any plans to speak with putin and what >> xha communications with the kremlin on making sure this doesn't spiral. >> it's a large conflict already. the way to assure it doesn't

spiral is by providing all the forces needed in the eastern european nations that are nato members. i have no plans to talk with putin. >> president biden >> "wall street journal. >> mr. president, you didn't mention s.w.i.f.t. is there a reason? is there a disagreement among allies of that and whether russia should be allowed to be part of it >> the sanctions that we propose on the banks of equal consequence. number two, it is always an option but right now that's not the position that the rest of europe wishes to take. cecilia, abc >> sir, sanctions clearly have

not been enough to deter vladimir putin to this point what is going to stop him? how and when does this end and do you see him trying to go beyond ukraine and a second question to give you now the statement he gave last night that the threat the west will face consequences greater than any in history, is he threatening a nuclear strike >> i have no idea what he's threatening. i know what he has done. number one number two, no one expected the sanctions to prevent anything from happening this is going to take time and we have to show resolve so he knows what's coming so the people of russia know what he's brought on them. this is what this is all about it is not going to occur, the sanctions are coming i will stand down. he'll test the resolve to see if we'll stay together. and we will.

it will impose significant costs on him. >> do you see him going beyond ukraine? >> yes. >> thank you two topics just really quick first, markets are down. and gas prices are up. i know you always stress the difference between wall street and main street but everybody seems to be in for some economic pain how economically painful is it going to get for people in this country? i have another question. >> there's no doubt when a major nuclear power attacks and invades another country that the world is going to respond and markets are going to respond all over the world there's no doubt about that, number one number two, the notion that this is going to last for a long time is highly unlikely as long as we continue to stay resolved and imposing the sanctions we will impose on russia period what's the nex