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 next question

>> the next question is, did you underestimate putin and would you still describe him the way you did in the summer as a worthy adversary >> at the time he was -- i made clear an adversary i didn't underestimate i've read most of what he's written. did you -- i'm not being a wise guy. he made an hour's large speech he wants to in fact re-establish the former soviet union. that's what this is about. and i think that his ambitions are completely contrary to the place where the rest of the world has arrived. >> what would you say -- you're confident a these devastating sanctions are as devastating as missiles and bullets and tanks

>> yes russian bullets and missiles and tanks in ukraine yes, i am. >> president biden, if sanctions cannot stop president putin what can? >> i didn't say sanctions can't stop him. >> you have been talking about the threat. >> imposing and the threat and the effectiveness is two different things. >> okay. >> two different things and we are now going to -- he'll begin to see the effect of the sanctions. >> what will that do -- how will that change his -- >> weaken his country. that he'll have to make a very, very difficult choice whether to continue to move toward being a second rate power or respond. >> you said in recent weeks the big nations cannot bluff you said that the idea of personally sanctions president putin was on the table is that a step - >> it is on the table. >> sanctioning president putin

>> yes. >> why not sanction him today, sir? >> mr. president >> why not sanction him today, sir? >> mr. president, if i can, you detailed swift and new sanctions today and said the impact over time but given the full-scale invasion and not pursuing russia from international banking system or other sanctions, respectfully, sir, what more are you waiting for? >> specifically, the sanctions we have imposed exceed s.w.i.t.f. anything that's ever been done and have generated two thirds of the world joining us they are profound sanctions. let's have a conversation in a month or so to see if they're working. >> sir, you spoke to zelenskyy yesterday, sir >> what's the risk that we are watching the beginning of another cold war is there a complete rupture in

relations? >> there is right now in u.s.-russia relations if they continue on this path they are on in terms of a cold war, that depends. you have the vast majority of the rest of the world in total opposition to what he's doing. a and so it's going to be a cold day for russia the idea you don't see a lot of people coming to his defense >> are you -- in fact, following up, are you urging china to help isolate russia >> i'm not prepared to comment on that at the moment. >> last question last question. >> mr. president - >> no, no. yeah no, no, no he's had his hand up a long time. >> thank you, mr. president. how concerned are you that putin wants to go beyond ukraine to other countries and the u.s.

will have to get involved if he moves in nato countries? >> he will be involved we will be involved. only thing i'm convinced of is he'll be emboldened. if we don't move against him now with the significant sanctions, he will be emboldened. look you know, every -- well, anyway -- >> can you talk anything more on the conversation -- can you -- mr. president, mr. president >> have a good day >> yes >> why not sanction put in directly today >> i can't hear you. >> an amajor defense partner of the united states, is india fully with you on the issue of -- >> does the defense department of the united states - >> india is a major defense partner. is india fully in sync with the united states on russia? >> we are in consultation with

india today. we haven't resolved that completely okay thank you all very much. thank you. >> mr. president >> the president speaking at the white house and taking questions from the white house press corps. the president saying this is a dangerous moment for all of europe vladimir putin wants to re-establish the soviet union and a complete rupture of u.s. and russian relations. he says putin will be a pariah on the world stage and any nation will be stained by association. sanctions he says will be devastating as devastating as russian tanks and bullets in ukraine. we got details of the sanctions? let's turn to kayla tausche in washington a long list. >> it is a long list, shep, but stops short of just some of the most painful sanctions that

president biden could have exacted on russia. namely, sanctions on president putin himself, blocking russia from the s.w. i.f.t. banking system and the exports of oil to the world but president biden i think made a very important point that's underpinning this announcement and the broader negotiations taking place and that the priority is maximizing the impact on russia while minimizing the impact on allies. certainly european allies were worried about the impact on the consumers and companies if some other measures were taken. certainly inflation is at records worldwide. politically painful for leaders but they feel like targeting the russian banking system is an effective work around to indirectly cut off some of those transactions while limiting perhaps the direct impact that could be felt by consumers at the pump or else wise. certainly there will be a nato

summit where there will be coordination more and in the parallels that many administration officials and observers are drawing between president putin's 2014 annexation and what president putin is doing today i have heard over and over from officials former and present saying a notable difference then and now is how strong nato appears to be and the western alliances. president biden there saying that these sanctions have two thirds of the world economy on board and that isn't nothing shep >> blocking dollars, euros, pounds and yens for vladimir putin. the president said it will limit the supply of tech imports, blocking the largest bank and four other banks the president said the blocking of five banks is more serious for the russian economy than

access to s.w.i.f.t. is that accurate >> remains to be seen. what i know from talking to executives throughout the morning about the deliberations is that many companies specifically in europe rely on the system to receive payments from russia and vice versa procuring items outside of the sanctions from russia. and that essentially you would bring global commerce to a halt targeting the s.w.i.f.t. system. they say the show must go on in other industries and too much spillover effect to use the words of one senior administration official if you went after s.w.i.f.t. president biden said every asset in the united states will be frozen anything that touches or goes through the banks will be blocked with a western company i've talked to companies trying to figure out what if any

business they have that touch those banks. there's mergers that won't go forward and they feel that there is a very harsh penalty that will come from targeting the banks and the president said energy exporting blocking is still on the table and want to see how these impact the global economy for now. president biden said we'll see in about a month whether these worked. >> after originally said that the russian troops could take the city -- country in a matter of days. kayla tausche with the finances of it all. the pain is for the people of ukraine. the innocents bombed and shelled and attacked overnight reuters reportinging that the southern city between the separatist held areas and crimea and the port there that taking of the city would be an enormous

bridge or begin a bridge to crimea and we are told that hundreds of shellings have taken place in the last hour and that maripol is under attack and the latest bit is the ukrainian health minister issued a statement saying 57 ukrainians have been killed and 169 injured. those are the numbers confirmed just today with much more war ahead. back to you. >> shep smith, thank you very much president biden and g7 leaders have agreed on devastating sanctions as they putt it against russia to cut moscow off from the global economy. that's going so far. >> watching the markets. huge implications across all asset classes and interesting to see well off session lows. the dow down 800 at the low point and 550 right now and different picture between the dow industrials down 1.23%

s&p down .75%. cyber stocks are a big part of why that nasdaq is positive. they are up big today. unfortunately on fears of cyber attacks. look at crude after the president clarified no sanctions on russian exports specifically seeing crude prices come off the boil. wti towards $93. >> i think brent around 104, 105. it too selling off a little bit as the expanded sanctions are unveiled and shep pointed out the president saying that the sa sanctions will be as devastating as bullets and tanks president biden saying that the russian invasion is a violation of international law let's bring in retired four star general barry mccaffrey. a military analyst general, welcome back to cnbc. it's been a while and delighted to have you here

i guess a thing i would like to know is how you assess this russian offensive at this hour in terms of what they have been able to seemingly take control of what kind of damage they have been able to inflict and what kind of pushback they have felt from ukrainian forces. >> yeah. well, very omplex, dangerous and changing situation what is clear is there will be a massive refugee outflow. this is a major air, land, sea offensive. they're hitting targets all over the country with no carpet bombing of urban areas not in the cities yet. the entire war will be decided in the coming days when and if the russian armored units confront the 50% of the

ukrainian military that's dug in world war i trenches opposing the two separatist trenches. i think they'll face massive potential fight or surrender within 90 days putin will have ukraine and it will be reintegrated back into mother russia what is going on positively is the president has got nato unified and going to be a massive reaction to this aggression. >> do you sense that ukrainian forces are fighting back and fighting effectively >> well, you know, i've been watching wars a long time now. the video coverage seemed to show russian military army units entering ukraine from the north

in belarus unopposed. >> right. >> the casualty rate is minimal. of course it is also the fog of war that may not have accurate reporting. >> yes. >> the question that will be resolved because the ukrainian military got equipment they have courage. but they're not prepared i don't think to deal with mobile armored warfare by the russians so i think it goes the wrong way for them rapidly and the great tragedy will be the refugee population be he's also using minimal fire power. it is targeted on ukrainian military command, radar sites. ukraine had a tiny air force >> right. >> i'll bet most of them are gone now so this is going to grind on to its resolution in fairly short order. >> i wrote an article from

richard haas and an argument is that now is the time for the west to doesn't down on the support it extends to ukraine in terms of military and humanitarian assistance and my question is will there be a ukraine to assist come monday? >> i'm a member of the council of foreign relations i think it's over. the air space is closed. we will not intervene in ukraine air space to confront a russian air force. we won't see long columns of u.s. military vehicles carrying ammunition into the ukrainians so i don't see how the russians fail to grab the whole country within a couple of three months at most. they're aware that every

ukrainian has a smartphone, a video capability they every not going to want to conduct operations that result in massive block by block damage so far they're encircling cities i was disappointed that president zelenskyy said i will arm civilians. we should not want civilia women, men issued an ak and sniping at russian army units. that's a disaster in the making. i don't see how this comes out in any way tactically within three months it is a disaster strategically for putin. this is not worth it at the end of the day but the question will move to other areas of confrontation reinforcing with modest u.s. forces the eastern nato nations a u.s. army parachuter went to the baltics. not a significant fighting force

but tells putin if you fight to regain the baltics you'll be fighting u.s. army soldiers from day one so good job. nato is coming together. more to follow. >> a follow-up on whether he made a miscalculation here this is kelly speaking now there are large anti-war protests going on in russia right now which again it takes some bravery for the russian people to go out in the open like that and express their displeasure with what putin is doing. what do you think the significance of the gatherings is >> i talked to a resistance politician on msnbc. he's talking from moscow he probably is under arrest by tonight. the russians are arresting those protesters, hundreds of them they will be beaten and locked up they will lose their employment. putin is an absolute dictator.

he murders or jails his opposition internally and controls all the levers of power why murders people abroad. this is his fifth invasion what's most chilling to me is essentially threatening the use of nuclear weapons if outside forces intervene these nuclear weapons with political deterrents for god's sake, russia would disappear and evaporate as would we in the event of a total nuclear exchange he may be going unstable he is isolated in the kremlin. he's a murderous thug. and he has all power in his hands. >> let me close if i might and i want to bear down on a point i think you made and it really goes to this is putin likely to get exactly what he wants or exactly what he

doesn't want and what he doesn't want is a reinvigorated, stauncher nato around his borders. >> i think the latter is going to occur he will be with ukraine. it is an impoverished place. you break it, you own it he will find enhanced nato forces on his flank. we may see finland, sweden demand entry to nato so i think of the strategic disaster but 95% of putin's mindset to rebuild mother rodriguez. georgia, belarus and ukraine >> all right general, great to see you again, sir. >> good to be with you. >> thank you. let's hone in on energy prices which are now moving lower. crude briefly touched $100 a barrel brent is near the high of 105.

dan jurgen joins us, author of "the new map." dan, you know, here we are talking about not nuclear war but just what kind of moves here putin might still be considering and please if you would give us a sense from the oil markets point of view why they see relief in the events of the past hour or so. >> sure. i think putin is trying to redraw the old map of the russian empire and he figured that about bela-russia, they're one people and the next step might be an annexation and never recognized that ukraine is a country. in terms of energy two big points to make one is that a crisis prone market which is the tight oil market is now in crisis and prices have retreated. but there's going to be disrumgs

because russia exports 7.7 million barrels of oil a day the second point that's important is this collective amnesia that's existed about energy security has now been ended by the electric shock of this invasion of ukraine which is really highlighting how precarious and important energy security and did not receive the attention it should have. >> do you think the administration would quietly try to encourage more drilling and natural gas production >> yes we heard the secretary of energy last december talking about the need for more drilling and will convey that. there's a mixed message with also why are prices going up going up because the oil market is going to be disrupted but now

that they're saying two tracks to deal with 2022 and 2023 as well as 2030 and 2050 and it's prices and also the strategic position the u.s. has a very important strategic asset in termless of natural gas lng exports and if we weren't exporting to europe right now there probably would not be unified sanctions because europe is too vulnerable the u.s. is providing half of the lng imports that europe is getting. >> wow. >> i am no deep thinker on this but it seems to me that energy security is national security. i think that's the point you are making there the president in his remarks said he'll do everything he can to reduce pain at the pump what can he do and how much pain can he reduce? >> the statements to say that why are prices going up and go after the companies how do you do that and work with the

companies and please get more lng and oil in the market? he has the strategic petroleum reserve for disruptions. whether they take away s.w.i.f.t. or not the payment systems are not working. they don't want to violate sanctions and so are going to be careful. the main thing is to facilitate the movement of oil and use the reserve. there resaren't a lot of tools there. >> what are you sensing about the possibility of a revitalized iran agreement and would it if it moves swiftly make a difference >> it's ironic that's the u.s. in partnership with russia

after as general mccaffrey putin seemed to be threatening nuclear weapons. but the iranians know that the u.s. would like a million barrels a day of oil into the market so maybe as heavy sanctions, massive retaliation of sanctions go here that they're closer on iran and adding a million barrels of oil would be significant. >> right. >> what else is significant is the rebound in u.s. shale production which is also adding a million barrels a day over the year so it is a market so tight going into this crisis and who knows what the timing of putin but chose when natural gas markets are tight, oil markets are tight, coal markets are tight and he is an exporter of

all three. >> i don't mean to suggest that what is going on in ukraine is anything but the responsibility of mr. putin and russia but you have to wond every whether the west was naive and europe was eye eve in allowing itself to become so dependent on russian natural gas. and russian oil. >> that has gone down actually russia's share of natural gas, this year is like 30%. but in fact the europeans have -- this is very counter in in intieutive they made the pipeline systems more flexible to move supplies around if this happened five or six years ago when the u.s. was not exporting lng this would be

worse and then efforts to diversify away from russia and russia is a big player in both oil and gas and a reality to face in this situation. >> thank you for that point and educating me and giving that point of a more diversified energy supply and that is growing in europe. thank you. always great to have you with us. >> thank you. stocks off the lows. the nasdaq is now firmly positive after dipping briefly below a 20% decline from the recent high. that is technically and usually a bear market. either way you have nasdaq and s&p in correction territory which is a 10% decline from a recent high. market veteran rich bernstein joins us now hi, rich how are you? >> good to see you. >> nice to see you talk to me about how investors should think about the

activities of today, looking at the portfolios would you advise them just to not? >> tyler, you just had two experts on that know more about geopolitics than i will in my life but i'll say that i think it's a pretty good bet that this is another nail in the coffin of basically globalization. right? the globalization is now contracting. it is contracting. it's continuing to contract. this is not going to help that for investors i think the takeaway from globalization contracting is there's more inflation rather than less on a secular basis. right? we can all argue what will happen but on a secular basis you will see more inflation. >> more inflation in terms over commodities, materials, industrials. and so forth i assume that's what you're

driving at and food stuffs. >> pretty much everything. the united states has been losing market share for basically 30 years we can't recoup that market share any time fast so as our suppliers if you will begin to contract and the availability of goods contracts we should expect that prices will go up. >> this is one thing if i were looking for a positive out of what has been going on in the world over the past let's say two years, it might be the reshoring of production away from places with far flung supply chains back to the u.s.m.c.a. true >> i think there's a real hidden investment growth scene developing here why the people are completely ignoring and that surrounds itself with the

industrial sector. bringing manufacturing back to the united states. infrastructure that's the industrial sector if you talk about a g geeopolitical. so whereas everybody is focused on the intangible goods of technology the future theme might be tangible goods associated with the industrial sector. >> if you could be more specific, do you think that means the industrials here an opportunity. energy how should investors say this is the places to plant the flag >> i think energy is a huge theme that people think is transitory to use the word of the day. transitory the energy sector has the highest difr depend of any s&p

sector and the second highest five-year protected growth rate of any sector. energy is value and growth it is offering yield and growth. and people think it's just a flash in the pan. >> sounds like it has some staying power. rich, thank you so much for join us today. >> thank you so much. still ahead on "power lunch," the latest on the market down 359 also checking in on bonds, commodities and a look at how defense spending could be impacted by isth stay with us on this busy news hour (vo) for me, one of the best things about life is that we keep moving forward. we discover exciting new technologies.

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welcome back let's get fully caught up on the markets. s&p went positive up by 4 points it was down as many as 100 last night as russia began to invade ukraine. bob? >> let's take a look at the s&p. down 100 at the open you can see we have risen about 40 points since president biden spoke. now at break even.

importantly again a lot of believes here that the sanctions not as severe, not banning russia from the s.w.i.f.t. system the fact that there was no sanctions on russian crude exports immediately dropped oil and oil stocks as you can see there. energy near the low. a market leader. big cap tech is strong all throughout the day it remains mostly in positive territory. traders want to believe it reduces the chances for the fed to be aggressive in the coming months everyone agrees they have to rate but maybe not in march. the dow is having a lot of problems with financials today we are not just the banks but insurance companies have been weaker visa and the credit cards have been weak. those have a specific help theis weighing on the dow.

meantime we are dealing with a lot of new lows today and this is a problem look for a market bottom stop having the new lows. we have 3m, caterpillar, salesforce, intel also at a 52-week low but bouncing off that i emphasize the three problems for the market throughout the day. one, higher inflation and issues around that. slower growth because these gas prices slow growth and the fed raising. these have been generally negative for the market and what the market is trying to figure out how high will this inflation no go? >> thank you yields are low er now rick santelli at the cme. >> not only seeing them firming up much faster in the long

maturities start at the beginning i have a lot of charts we'll go fast. look at a russian 10-year around 13% and sure it's ill liquid let's see how the world looks at this event look at 10s here and you can see how we have off the cycle highs and the high close 2.04. bund yields pattern very similar. look at when's going on with the guild. 10-year in the uk a similar pattern. canadian 10-year got much less flight to safety buying but considering where they're located and regarding getting involved foreign exchange the dollar over that same

period could have the highest close in the middle of summer of 2020 normally you see the euro and the pound do better. not this time. the pound vefr sus the dollar getting hit hardtoday. i think that the dollar reigns true as the best currency and the interest rates are similar in the patterns and last guest said he doesn't think it will last that long and the markets seem to agree and seem to be still putting more prominence on the fed meeting on march 16th than flight to safety and lower yields back to you. >> thank you very much let's turn to pippa stevens for crude prices. >> a big day for energy and a stunning reversal for wti that dipped into negative territory still a big reversal after topping $100 earlier in the day

for the fist time since 2014 and off the levels as president biden reiterated no plans to target russia's energy complex contract is up at $92.36 brent crude up at $98.40 earlier it did trade above $105. natural gas was up 7% earlier. and in europe the move far more extreme. nat gas surged 50% at one point over fears of disruptions. russia supplies one third of europe's natural gas an area of the market higher is green energy elevated and uncertain oil and gas prices making renewables more attractive. solar edge and array

technologies in the green here watching metals. aluminum hit a record high earlier today and nickel rose to the highest in a decade. palladium and platinum jumped before giving back according to data from cru and much is exported more than 90%. so guys a lot of moving parts. >> thank you very much. let's turn attention to the big defense contractors. let's bring in morgan brennan for more on the defense names. >> yeah. a mixed picture but the pure play defense primes trade high every today.

here's what matters for investors. defense spending up. both here in the u.s. and abroad this will may play out first lawmakers need to fund the 2022 budget we have operating on a continuing resolution and was already passed nearly % increase in top line defense spending we are expecting that to happen on or by march 11. question now amid the russian invasion will policy makers tack on supplemental funding? that's unclear whether the defense department will ask congress for that and monitoring ore key catalyst, 2023 budget request from the president as

soon as next month that's a request marking the first fully fleshed out wish list from the administration reuters saying it could be $770 billion with shipbuilding, space, modernization of the nuc nuclear triad. kelly? >> all in the green today. thank you very much. next guest is one of the first to sound the alarm of the russia-ukraine crisis. the ceo of the stifle is back with us. i would say that people are aware of the risk. where do we go from here >> i think everyone's going to be wondering what the fed will

be doing and from here we have a new global world order that we have to deal with. this is an invasion of ukraine and russia's using bayonets. fighting at the tip of bayonets. and united states fighting with a tip of a mountain pen. what are the implications? i think what investors have to think about what can russia do in the world economy you have been talking about it today. certainly energy and rare minerals and fertilizer. when we go to have the harvest in the united states what does that do to food prices that's what you have to look at going forward from here, kelly. >> how can do you think inflation will go up this year and is what's happening -- you said it. what's happening now in ukraine

and with russia, how much is that going to add to that price increase >> my opinion it's clearly going to add adding in energy, it can add in food prices, as we said in rare metal prices aluminum and all of that i don't think there's any question that the events today add inflation pressure some people say it may slow the economy but the fed has to deal with price stability and this is going to make that challenge even greater so i think the fed's job as it relates to price stability has gotten more difficult. >> clearly, clearly. more difficult has a guy who has watched markets behave what do you read into if anything the market today? began the morning 700 lower. down now 250

a run of the mill day. the s&p has now turned positive or was a few moments ago and nasdaq what's in the mind of investors that caused that kind of turn around or no mind of the investor and just the machines >> certainly the invisible hand of the mark, it is hard to say exactly what happened. in my opinion what happened is that during the president's press conference it's what he didn't do. which caused the markets to rally and what he didn't do was say that they're going to expel russia from s.w.i.f.t. to me as a financial guy that's huge that's a big deal and had you excluded russia from s.w.i.f.t. that is like really escalating the economic war and the fact that that didn't happen i think is really why the market rallied. >> interesting. >> because thank you don't necessarily see that the

economic economicesque -- economic escalation - >> may be keeping some things in the pocket including that. >> that's right. >> and the sarksing personally of vladimir putin. he also pointed out on s.w.i.f.t. that several europe partners were not ready to go there yet. >> how would they pay for energy >> yeah. how would they pay for the things they import from russia >> right. >> if russia is excluded from there. thank you and the mocomments abt a month ago. s&p and nasdaq bouncing higher is the selling over? why our next guest says this pullback could be longer and run deeper than other recent declines we'll be right back.

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show up, however you can, for the foster kids who need it most— at helpfosterchildren.com welcome back a turn around in the market today. the nasdaq higher by about 2%. and nasdaq look at that. 1.90% after falling more than half a percent and the next guest said the selling may not be over. let's bring in ron insana, a

market watcher and historian good to have you with us. >> hi, tyler. >> you said that the seeds were in place for a prolonged decline. maybe even a bear market that may not be as deep as some we have seen like the 2007, 2008, 2009 bear market but might be prolonged explain whether you feel that way or might feel it more so today. >> i think i do. while others have suggested the first day of a war historically is the day you buy stocks and we saw that with the first gulf war where the bear market bottomed in 1990 and the first day of that war, we ripped to the upside and oil crashed in 2003, we were coming into a bear market with the crash of the internet stocks, the corporate scandals, 9/11 all folded in. this is a different situation where maybe, as some have mentioned previously, we're in

the process of deglobalizing, a we face now cold war style problems both with russia and china, to me, it looks like not only are be deglobalized, but not the risk of world war iii, but world war e might be upon us where global sanctions will be the head >> the head of stifel said he sees higher inflation with respect to the sanctions, with respect to trade, russia's control of some metals, fertilizers, among other commodities. do you see that as well? in other words, that this will increase already heightened inflation? >> yeah, and look, we learned from the pandemic that that kind of disruption already has, you know, made that materialize in a variety of markets this will only exacerbate the situation, and as we said, back at the end of january, you know, we're staring down the barrel of two problems, which is the fed first and foremost, and now

geopolitical conflicts that have the net effect of raising prices so i think while the market may be right to rally here because it's so oversold, we have seen a 20 20% peak to trough pullback in the nasdaq, 12% in the dow, i do think this market isn't fully washed out yet and may face slightly more, i would say, prolonged period of if not downward action, certainly sideways action before we get back on track. >> ron, i don't know if you were here when he was speaking, but general mccaffrey was commenting about the nature of russia's incursion and said he didn't see a lot of pushback, it could maybe be over in a matter of days it just makes me wonder, how are we even defining this conflict, and what would that mean in terms of fallout then you have the president saying zee to wait about a month to see the full effect of the sanctions and so forth >> and general mccaffrey who i have known since 9/11 also pointed out vladimir putin may be unhinged and may want to put

back together parts of the old soviet union, which if is the case, creates another set of issues that put again as the president suggested, u.s. troops on the front line in the baltics in poland and elsewhere. we could see further sanctions beyond what's alreadtranspires, especially if vladimir putin would get more adventurous from here, and if the chinese who buzzed taiwan today, decide it's part of their territorial integrity and decide to move forward in that regard as well while i'm typically not screamingly bearish all the time, and i don't think i am now, i think that the world is changing, and we're revisiting 20th century problems that we thought we had put to bed 30 to 35 years ago >> i thought of it in much the same way this morning, ron i thought when the berlin wall fell and the soviet union disintegrated, it was a generational moment. now we're a generation later and this may be another generational

moments. we'll find out >> i agree multiple generations away from those who had to fight this kind of war in the past >> ron, thanks >> thank you keep an eye on the markets as the nasdaq and s&p have turned positive. the dow down 227 >> up next, russia is a major producer of grains we'll check in on soft commodities. what does the jump in price of wheat mean for us? don't go anywhere. i'm confiden. voya provides guidance for the right investments. they make me feel like i've got it all under control. voya. be confident to and through retirement.

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welcome back to "power lunch," everybody. we have been following these moves in commodities like oil and natural gas, but it's not just energy where we're seeing jumps. it's things like wheat wheat is up 5.5% corn headed higher russia the top wheat exporter globally ukraine a major exporter of coin joining us is philip streebal. we're showing the one day moves but how much upward pressure in general have we been seeing? >> since the start of the week, since it started the week, wheat prices have been up 16%. so you look at russia, they're a key supplier strategic commodities. ukraine is known as the bread basket of europe russia does produce the number three of total global wheat, and the two combined countries, they export about 29% of global wheat. and then also 20% of corn. these concerns of a shutdown of the exports really come in if the black sea is shut down, as

far as transportation. so you're going to see these end users, they're going to have to take alternative measures as far as grabbing supply that's where the u.s. comes in, why our wheat prices have gone limit up today that's why our old crop corn contract has gone up limit up today at one point today >> my understanding is this would be lot more severe if it were happening over the summer this is currently a moment where exports are at a low ebb seasonally what should we anticipate for prices of corn, wheat, and others as we head through the coming months? >> your biggest problem we're going to have is if this conflict goes on longer than expected where it impacts their wheat harvest or that black sea is shut down you could see prices go parabolic. in 2014, when they invaded crimea, you saw wheat prices jump about 50% and then once the conflict was over, that was the top on prices so wheat could easily get north of $10 corn futures could get north of

$8 >> get ready for higher prices at the grocery store is what i'm hearing you say, number one. number two, a question of how much of russia or ukraine's wheat, as you refer to it as the bread basket of europe, russia's bread basket, how much of that is actually exported into western europe, do you know? >> it was heavily exported to western europe that's why china came in today and signed an agreement to drop any kind of restrictions they had on importing the wheat, and they're going to take over so it's going to be a seamless transition for them. the problem is that it might impact u.s. wheat exports and u.s. corn exports. that's why i think prices came off today. >> well, thank you very much for your point of view philip, blue line futures chief line strategist. thanks for being with us i know it will be an area we'll be following up. the commodities effect is really massive here >> it goes back to what we heard from rich bernstein earlier,

such an apt point to make. it's really also this globalization in reverse playing out where we're going to see this upward pressure across commodities in unpredictable ways >> going back to a world where spheres of influence is the apt phrase >> all righty, hang in there, everybody. thanks for watching "power lunch. >> "closing bell" starts right now. and welcome to "closing bell." i'm carl quintanilla with leslie picker wall street and the world squarely folkcuses on eastern europe stocks in america and across the globe fell sharply on news of the attacks, although u.s. markets have seen this stunning recovery nasdaq up 2% after being down 3.5% at the lows s&p turning green as well. >> here's the latest on what we know this hour this afternoon, president biden announcing a slew of fresh economic sanctions on russian banks and elites more on that in a moment this after g