anything else at this point. p plus, ukraine and russian officials beginning talks at the belarus border it is monday, february 28th. tomorrow is march. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with with joe kernen and andrew ross sorkin joe was talking about the global phen phenomenon the dow was down by 381 points we should point that last week the market was flat to up.

the nasdaq was up 1% the s&p indicated down by 56 points nasdaq off 180 you look at the treasury market. the ten-year isyielding below 2% the last tick is 1.92% the russian ruble hitting a record low against the dollar after the sanctions and pen penalties. russian central bank doubling the interest rate to 20% from 9.5% it stopped foreigner bids to sell securities and freezing local bank reserves to boost liquidity. a lot of pain in russia and europe many of them with a lot of exposure to russia and having payments back and forth. that is where the pressure is. societe generale is down 9%. if you look at the broader markets that is playing out as well we are off the lows of the

session right now. you saw the dax down 3%. the dax down 2% right now. cac off 2.76%. italy is off 2.4%. if you look at energy prices, by the way, energy prices were higher last we're, but not as much as you anticipated. wti up .50% for the week it is indicated up 3.4% right now. brent was up 4.7%. this morning, up 5% to $102.90 natural gas up 1.5%. gold prices are rallying you see gold is sitting up $19 to $1,906 an ounce then cryptocurrency. you will see bitcoin up 1.6% $38,462. other crypto i

andrew the top story. eu and u.s. cutting off russia from the s.w.i.f.t. system steve liesman has the latest >> reporter: historic financial sanctions, andrew, imposed on russia with a devastating effect in russia with the ruble crashes under 1 cent to the dollar the central bank forced to raise interest rates to 20% from 9.5%. removing russia from s.w.i.f.t. and freezing $630 billion in foreign reserves prompts long lines to withdraw rubles the russians stock market was ordered closed today s.w.i.f.t. is a messages system that banks used around the world for transactions when a russian system needs to

buy from a foreign bank, it uses s.w.i.f.t. if russia is kicked out, it is difficult to transact securely as a result, russia cannot buy or import goods. same for selling goods or exports. it appears energy exports will be excluded from the sanctions for painful for russia is the freezing of the $630 billion russian foreign reserves a g-20 bank never had assets frozen central bank experts i spoke to over the weekend said there is limited exposure to russia more in europe than u.s. still limited. well capitalized banks in the west the sanctions and the war will mean higher commodity prices and

inflation with a bigger hit in europe than the u.s. no one knows how this will play out. inflation is high. fed officials declined to comment if i asked they will provide any statement on liquidity. that could be a sign they don't see systemic financial risk from the russian sanctions. andrew >> steve, to the extent there are banks and i acknowledge other parts of the economy in europe that have some connection to the russian banks that will get cut off, who are they and what do you think the reaction will be? >> reporter: well, becky put up the list of banks in europe that are down the most. likely the ones that have the biggest connection deutsche bank was mentioned to me i will say, andrew, i talked to

some one leading banking expert. anyone who went home friday or thursday evening with a position of long exposure to anybody in russia comes back in monday morning without a job. everybody saw this coming. there was -- in fact, andrew, go back to 2014 the west has been limiting exposure to russia in that time, russia has been limiting exposure to the west. that is one interesting development that allows us to impose sanctions on russia with only limited feedback on the u.s. and european financial systems. >> okay. steve liesman, thank you joining us is former federal reserve vice chairman is a cnbc roger ferguson roger, help us understand the thinking of the federal reserve on the morning like this in

terms of when it comes to interest rates and also in terms of liquidity provisions if there needs to be and what they're thinking about in terms of exposure >> thank you very much for having me. i think what is going on with the fed and central banks is the degree of uncertainty increased dramatically we had as steve reported an unprecedented decision to unplug given some banks from the g20 country from the s.w.i.f.t. communication network. that has never been done before. we have the possibility of the expectation of trying to limit the use of international reserves from the major central bank about $630 billion total i don't know how much of that is in the west. exactly how that plays out is uncertain. clearly we have uncertainty of shortages of natural gas which will have a big impact in europe which might slow things down

dramatically you were talking about the uncertainty of major banks with significant exposure to russia the uncertainty is at the top of people's minds second thing that is associated with that is this uncertainty could slow us down is this an uncertainty that could actually make it difficult of managing inflation that is already high even more difficult? so, it is not just, you know, general uncertainty. >> that is the question. you raise interest rates at a time like this you feel like you need to if you want to dampen demand. this is a supply problem in the end. >> we have seen this movie in the past this is generally not attempted to offset inflation from the supply side. they are confronted with the

fact of great inflation already. the expectation will be some tightening i do expect and markets have shown and expectation now from the 50 basis points that some were talking about, the 25 basis points the question is what is the incoming data tell us about the pace in which they can comfortably raise rates? that is what they need to do inflation is already high and above the 2% target. >> roger, a lot of people are asking what if it is both? inflation and low down in demand stagflation. do you think that is possible? >> i think stagflation is the less likely outcome. we start with the economy that has so much forward mostmentum already. that will change for sure. we are have very little unemployment the last time we had stagflation, unemployment was behind

i think theprobability is this is more likely to be inflationary challenge opposed to the dramatic drag recognizing that u.s. is relatively energy independent and supplying natural gas to europe i think some of the gdrag is les than historically the case and the inflation challenge. it dominates over the sta stagflation challenge. >> roger, can you put your former ceo hat on for a moment the markets looked like they would open higher for a moment you have seen gold, obviously, move up the last couple weeks. cryptocurrency has not moved as high as i thought. how do you think about the markets right now? >> i think you think about the markets with two hats on

one is the short-term with volatility you are trying to figure out and get out of the way of anything that looks like it is not a problem. on the other hand, you recognize unless this gets worse, this is a geopolitical crisis that everyone tempers down as best they can you have to think about the long term this is not the time to make dramatic moves for any portfolio. are there any pockets that will look like they will not recover? you know as a professional that this market is driven by headlines. there is a meeting going on this morning on the border, i believe, between ukrainian officials and russian officials. whatever the announcement will drive the next turn in the market if we discover contrary to exe expec expectations, that could turn the market this is a market, i think, is driven by headlines and

professionals, i believe, will not lose their heads they will hold on to the port portfolios >> broadly speaking in terms of the equity market. i talk to a lot of investors, especially hedge fund managers, putting aside the issue of russia, maybe somewhat bearish about where the market was going given the idea you cannot fight the fed. if you layer this situation on top of that, how do you feel >> you feel exactly that in fact, there were pressures that would take the market from high levels down and it has been in post-correction territory and we see it bounce back up my view is unless you are a short-term trader and need something to know profitability for the next quarter, let it ride knowing it will go down let's expect and i hope the fed will engineer a soft landing and the fundamental will come

through. the fundamentals are really strong in most parts of the economy. >> roger ferguson. thank you for your perspective >> thank you coming up, beyond oil prices other commodity prices jumping as well on the ukraine story as we head to break, check outthe biggest s&p movers. stay tuned you are watching "squawk box" on cnbc >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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get started with internet and voice for just $64.99 a month. and ask how to add securityedge™. or, ask how to get up to a $650 prepaid card. welcome back to "squawk box. look at futures right now. in the red dow off 405 points nasdaq off 17. s&p off 60 points. we should look at the vix. look at where volatility stands right now. you are looking at that up about 20% this morning joe. beyond oil prices we are watching agriculture futures russia is the world's biggest export of wheat, corn and soybeans you can imagine all of those things are the supply chain. we didn't need more disruption

it hasn't been in basic comm commodities. everything else's r reversed qul last week. we ended up with the s&p down 12%. up last week >> it was hard to imagine watching the maneuvers in the markets last week if you told me on thursday how the markets could end up, it would be hard bl believing. that. >> the 800-point day nothing happened other than going on nuclear red alert >> what people are trying to figure out is does the central bank more slowly are they cautious as a result and what does that mean? >> roger doesn't seem to think so >> especially with the inflationary impact. >> the truth is you are trying to make demand go down that is what you are trying to do nobody wants to say that >> i'm fascinating we were talking about it earlier. you know, china has not been our

favorite ally recently i don't know if i would call them an ally our favorite partner what are they? they are frenemies watching the reaction of the world and the chinese are like most likely they go after taiwan and you know, with all of the erratic stuff with putin where people who know him and the generals he is telling them let's go on alert. they are looking at him like something's not quite right. china cares about europe and the u.s., do they not? >> yes >> trading with us nobody thinks this is nice did you see they have a hit squad for the ukrainian president? if he goes in and kills him. >> our leverage over china, dare i say, is a lot less. we are not cutting off the s.w.i.f.t. system of the chinese. we are not >> what do they get from russia?

what do they get from russia wheat and oil. >> only speaking to the degree you look at it and say this is a dress rehearsal for taiwan you look at this to figure out what is going to happen. i think you are still -- >> it is less likely now. >> is there a situation it takes a few steps back and say we did not sign off on this >> they will be caught up in sanctions if they -- can you believe? i can't believe germany is selling weapons. >> 2% of the gdp from here on out is spent on defense. complete change. >> the world is -- the re resistance of ukraine. >> bp. british petroleum? bp >> 20% stake they were the largest foreign investor in russia >> they had to get rid of it

>> and doing it immediately. stepping down. >> in inthe year 2022, this is nuts going into a country you don't own and thinking i'm free. i'm ukrainian. i don't want this. china is surprised at the global reaction >> putin miscalculated he thought zelenskyy would leave and ukrainians would put down their arms immediately >> i'm optimistic. i hope we break up that unholy alliance and china realizes they need us more than they need russia i hope i don't like nuclear red alerts. especially working here at 9:01. i'm done i'm out. >> welcome back to times square. >> exactly welcome back the center of the universe. when we return this morning -- >> bull's-eye.

>> warren buffett has the letter to the shareholders. we will explain that next. and the biggest movers this morning. trailers is up .79% and followed by mcdonald's. stay tuned you are watching "squawk box" live from times square >> announcer: this cnbc program is sponsored by truist wealth. where meaningful relationships matter most.

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berkshire hathaway chairman out with the letter this morning. he joins the chorus of the stock

market being too expensive berkshire stockpile grew to $144 billion. that is not because buffett did not want to spend money, he could not find things he wanted to pay the price for this is mostly in u.s. treasury bills. t today, we find little that excites us that is because of the trueism and long-term interest rates that are low and pushing investments up whether it is apartments or farms or oil pwells. buffett continued to buy back berkshire shares buffett spent $51.7 billion to buyback shares in 2017 the pace has slowed in the first quarter of 2022 with over $1.2 billion purchased as of february 23rd

berkshire is a collection of 90 units. buffett highlights the four pillars of the company the berkshire energy company and northern santa fe railroad and the stake in apple apple is by far the larges stock holding. bank of america at number two at $46 billion. berkshire owns 5.5% of apple shares outstanding as of the end of 2021. that is up from 5.3% earlier that may not sound like a big increase, but buffett said every portion of the 2021 earnings amounted to $100 million it adds up quickly apple, by the way, paid berkshire $785 million in premiums buffett gave a shoutout to tim cook in the letter he called him brilliant and laid out plans for the meeting on

saturday on april 30th it will be in person in omaha for the first time in two years because of covid proof of the covid vaccination is requirement for attendance. i'll ask questions if you would like to submit a shareholder question, send it to berkshirequestions@cnbc.com. coming up, when we return, european financials are under pressure as the move to cut russian banks from s.w.i.f.t. and before we head to break, take a look at the biggest nasdaq winners and losers. stay tuned you are watching "squawk" live from the market site in times sq square >> announcer: executive edge is sponsored by at&t business

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good morning welcome back to "squawk box" on

cnbc dow off 442 points nasdaq off 206 points. s&p down 64 points let's show you energy right now. wti right now. if you want to buy by the barrel, $95.85 a barrel. bp exiting the 20% stake in the russian government control the company saying the financial hit from the move could be as high as $25 billion. that raises questions about owning that stake in the first place. knowing the possibilities of what it means. >> what about germany? whole hog into being dependent on russia. a lot of people. who thought this was going to happen >> selling now is when you take the hit. if you thought when do you want to get out -- it shows semblance

of more responsibility and leadership to do it now. you would have wanted to do that -- >> painful for shareholders. >> you said it costs $95 a barrel of oil. you know, i wish i had done that when they were paying you. i wish >> stock >> i wish i had more property. take delivery. everything don't you wish you had it at $6 in or negative? >> too late. >> oh, sorry in the meantime, eu and united states are cutting offer russians from the s.w.i.f.t. julianna tatelbaum joins from us london with the latest julianna, this puts pressure on london in a big way. there is pain to be felt across the continent. >> becky, good morning that is the story of the morning. european equity with heavy

selling pressure broad based selloff. the french market cac 40 down 3% right now. the ftse mib in italy with heavy selling at 2.9% of losses. the swiss market with the basket of stocks down .76%. beck becky, the financials. losses to the tune of 11%. really a broad based selloff two transmission mechanisms. the sanctions are targeting the russian financial system and what it means for the direct exposure to russia and then what all of it means for the monetary policy from the central bank moving forward. estimates when the central bank will raise rates getting dialed back that is weighing on banking stocks sentiment is negative to start

the week in europe becky. >> julianna, thank you very much. eu and u.s. also announcing new sanctions against russian el elites one piece, robert, some guy lost his villa, crying. this is hitting individuals. i'm sure we will have some crazy anecdotes and stories after it is all an said and done. >> reporter: the famous tv anchor who may lose his lake como estate. over the weekend, a lot of sanctions by europe and the u.s. against a swath of russian elites a ban on sales of golden passports. the citizenship plans that allowed the biggest billionaires to protect assets in other countries and avoid sanctions. new trans atlantic task force to identify and freeze the assets of sanctioned oligarchs and companies and more russian elites are added to the

sanctions list with their families row he man abramovich turned control to chelsea fc. michael freedman is worth $11 billion. he has a london private equity firm he called the war a tragedy in the staff letter over the weekend, but did not cast blame. putin called a secret meeting of the top 30 oligarchs and executives to prepare for sanctions. abramovich was there along with vladimir potanin then a new bill with anonymous foreign property they bought billions of dollars through shell companies and llcs they will see who the actual

owners are >> i think we know who the real richest man in russia probably is, robert you know -- >> he owns the country >> yeah. he has a trillion dollars socked away supposedly. you know what? i don't want an umbrella stuck up my tucc -- you are playing the capitalist world and you are an oligarch and you get rich and enjoying the benefits of it. it is hard to go back to be a commie they have to learn if you play in the world and have the benefits of the lake como estate, you can't pretend to be a marxist anymore. >> no one is under the illusions that the sanctions from the oligarchs will prevent putin from doing what he is going to do the interesting thing is how the guys bought influence in the

west through property or football clubs or contributions to museums and think tanks now it is going to be more difficult for them to do that going forward. >> it is weird think about it, robert the west is pretty nice. it offers a lot. what do you get with a reconstitution of the russian empire and soviet empire what does it do for the average russian or the oligarch? who does it benefit other than putin and his romantic notion of getting back to where it was 50 years ago? >> well, remember in 2014, one of the hopes was if we squeeze the oligarchs, they will put pressure on putin to back down that did not happen. that will not happen this time you are right. there are signs that they uncomfortable about this because for them, there is a lot of down side family members having their visas and kids who go to u.s. universities taken away.

yachts and planes and villas seized the broader new soviet empire, reconstitution of that, the natural resources they get and there are corporate assets in ukraine. it is all down side at this point for the oligarchs. >> it almost does seem like the '80s and asking for their foreign -- i understand he doesn't feel secure with a nato country if ukraine were to become a nato country. he doesn't feel secure the rest is antiquated it is never going to happen. we're not going back there sorry, becky >> robert, you pointed out the sanctions never worked in the past the stepped up level works do theoligarchs have a say in what putin does anyway >> what could be different is in 2014, they targeted 180 oligarchs. oligarchs had a simple solution.

they transferred assets into the family members names ex-wives or wives or kids or relatives. they have gotten smarter they are targeting the families. we will see if that works. these guys will find a way around it. this makes it difficult and makes them reputationally paraihs. whether the museum or football club or real estate to sell or deal with these guys will just be harder. that's where it hurts them and their families going forward >> all right thanks robert frank. coming up, helima croft will join us on the market moves. take a look at some of the names leading the dow lower. jpmorgan chase off 2.5% this morning. salesforce also off close to 2.5%

stay tuned are u yoare watching "squawk" live from times square. back after this.

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go to capsule.com and get started in 15 seconds. welcome back u.s. equity futures indicated down h400 points it is interesting. we had the days where we were down 400 points. this is really ugly. we're going down 400 after

recovering and being up last week >> for the dow >> 400 again >> the s&p and nasdaq in positive territory which is hard to imagine >> not 400 on top of the 2,000-point loss in the dow last week that is not what happened. in gold? gold is up still not $2,000 an ounce. we were supposed to be there 20 years ago according to a lot of people ten years. remember when we got up to these levels last time and everybody predicted over $2,000 by the next year. bitcoin and the cryptocurrencies bouncing back. people made the case if the sanctions and all these centralized ways of transacting go away makes this more attractive >> i saw some commentary where bitcoin because russia will use it at this point >> after the sanctions, it went down >> they are raising money with

it i don't know >> yeah. >> i don't know. you think it should be a lot higher you think it should be a lot higher >> yes and no. it is up -- you know >> it digital gold and people are raising money and this is how they get their money you think -- >> gold is not gold at this point. $1900. >> you have to go back to do the annual return to see where it is >> i get it. >> i can't believe it is holding at $38,000 if it is absolute rat poison vd, why is it still $38,000? >> most people in bitcoin, i think, think it is going to $100,000 or $500,000 or $1 million. >> whatever number divided by 21million. >> that is what they think it is yes, it is interesting it is holding at $38,000 the question is if it doesn't

start to move now -- >> it moves every day. >> i am saying move in the materially higher way. >> move higher. >> then what >> it's got time we'll see. >> okay. in the meantime, the decision by western allies to block some russian banks from the s.w.i.f.t. payment system sends oil prices soaring 4% to 5% this morning. that plus sanctions raising the issues with the oil market joining us to talk about that is helima croft she is a cnbc contributor. helima, watching these moves today and watching s.w.i.f.t. and digging in that putin has done at this point, what is your expectation of what happens next >> my expectation is we see crude prices continue to rise. right now, the u.s. administration saying we're not going to sanction energy because we don't want to hurt domestic

u.s. consumers central bank sanctions and s.w.i.f.t. sanctions are raising concerns over how you get paid with energy transactions you are seeing major energy companies exit bp and broadcor. we are seeing some s.w.i.f.t. sanctions over the initial opposition of germany and italy. what happens next week will we see sanctions on energy? i think there is broad base concern of remaining in the energy transaction business with russia that will continue to put pressure on oil prices >> helima, we talked about how china is feeling with putin ratcheting up with nuclear forces being on call at this point and seeing what happens with that. is that a situation that makes saudi arabia and other opec countries negative over russia >> that is interesting

we are headed into the opec meeting this week. you have no indication of saudi arabia or uae willing to dispense with the relationship with russia. uae in the council vote abstained from criticizing russia and blaming them from what is happening in ukraine right now, we don't see any cracks in the partnership. as we go forward, if the conflict intensifies and russia is shelling ukraine with cruise missiles, i think there will be pressure on the countries to reevaluate the relationship with russia. >> what is the end impact of bp and other companies that are now ending their relationship with russia does russia have the resources to continue to producer does this mean there will be an actual drop in production? whether they can sell the oil to western nations or are not, the idea of overall global supply, does it drop significantly >> the concern is who will buy the stakes right now

i would look for a stake in nova tech there will be a concern of no explicit sanctions on russian energy exports, it will become more complicated for russia to raise money and invest in production and who is willing to take production with this much sanctions uncertainty. i think the russian energy industry will struggle even if they are not hit with formal energy sanctions >> we have not seen exxonmobil under pressure yet they have russian connection with the work they have done over 25 years there. >> absolutely, becky we are in the early days in this conflict again, bp exiting is significant. i think all of these companies, if this conflict continues, will reval wait if they are willing to stay. they will be on the sanctions list as with well.

>> what happens in the united states we heard about the smaller companies going ahead and moving to reopen wells or drill new wells at this point. you have seen stocks of the companies that provide the oil equipment really higher on the expectation as well. do the majors expectations as wl do the majors really get into this what happens >> i think we're going to see u.s. production grow this year between 750,000 to a million additional barrels of u.s. supply that will be coming. the real question is are we going to be seeing more barrels coming from other countries sitting on capacity right now. what's going to be interesting is what happens with the iran nuclear negotiations if they lift sanctions that could be more barrels coming on the market relatively more quickly but, again, if you think about iran and you think about russia,

iran is particularly small compared to russia >> helima, thank you good to see you this morning. >> thank you. coming up after the break, opportunities for investors with the nasdaq set to open sharply lower this morning we'll talk about it and break it all down right after the break wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

welcome back to "squawk box" this morning futures are looking to be in the red. nasdaq off about 207 points. s&p off about 65 points. let's show you u.s. banks. maybe we'll show you russian

banks but we want to show you u.s. banks right now jpmorgan off by 2 president 5% bank of america, off by 2.5% you'reseeing the same across the board among the majors. >> two issues there. not only the s.w.i.f.t. questions, but not only that but the idea that maybe the central banks here don't raise as quickly. rates are going to raise, and that would benefit them. >> i think you raise i still think you raise if you're the fed. >> i think you go 25 basis points do you go more beyond that how many >> you raise and then you get some market reaction which helps you do your job -- >> -- it could help you. >> so you don't have to go to 21.5% where you get what you need below five, wouldn't that be nice if the terminal rate of a tightening cycle was like -- >> look. the issue they have at this

point is real wages are down on an hourly basis and weekly basis. real wages are down. >> it's still a supply problem it's a supply problem in terms of physical isfphysical suppliee supplies the only way you fix that -- i'm not saying you want to send the economy into a recession >> i always have known you were a supply sider at heart. i knew that. i knew you would arrive in the correct viewpoint. >> which is to say what? >> just to say money left in the private sector is probably a better place to have all these things stimulated, to grow, to grow prosperity. do you remember larry kudlow >> of course i used to go on kudlow. >> i don't know where he is now.

but do you remember what he used to say the quickest road to prosperity, the supply side. >> or the quickest road to a problem too. >> okay. so you're not here let's talk about the futures mark, we were already down i don't know if russia and ukraine has had any impact at all on what -- did it have anything to do with that 8% -- well, it was a 7% turnaround in the nasdaq one day last week the nasdaq -- does it matter what happens with ukraine, or are their other forces you're more concerned with? >> there are so many things that are in the witch's brew right

now in terms of tech stocks. ukraine adds to the volatility probably the bigger driver, what's going to happen with interest rates there's uncertainty over interest rates future probability, high multiple stocks that's part of the nasdaq, tech market that's traded off the most that sector has been the one that's held, the highest quality names. so in the space i look at, the amazons and googles of the world have traded roughly in line with the s&p 500 or a little bit better, and much better than nasdaq and the highest multiple names, those have been the ones that have traded off the most this is going to be the case for consumer tech for the foreseeable future, for two or three months until we get future rate visibility. then you'll see high growth, high multiple names come back. we're still a ways from that. >> the high multiple, the stocks

t opposite of the reopening trait, all those stocks, some of them are down 30%, 40%, mark, and that was before the troops even started building up so it seems like there's other factors at work that are even more important things got really hairy that would make a difference, but that seems like noise in your job that you can't use it to make decisions on what to buy or what to sell. >> it seems like it's a tech analyst tech strategy. you've almost become a fed strategist that's what i'm ding with. i'm looking for stability in the future rates and that's going put a bottom and allow growth stocks to once again outperform. this is my 11th or 12th major correction over the last 12

years. i would be surprised if all of a sudden we snapped out of what we're facing now i do want to say you want to focus on the highest quality names. so in the space that's the best profit sheets, your amazons, googles, maybe facebook and apple and microsoft would be there in well. and recovery names like uber and lyft it's really the travel names surprisingly that have gotten wonderful balance sheets, wonderful, reasonable recovery names. the bookings and expedias of the world. those have been the stocks that have most outperformed in the consumer net for that very reason i think that trade can still work for the foreseeable future. >> if i could, but i can't, i

could put together a nicer basket of things that are cheaper than they were six months ago you'd do it today. you'd do it today or let things shake out? go half in now, half in later? what would you do? >> if you're willing go look nine months out, this is called dhq. nothing changed in amazon's fundamentals the stocks are often aligned with the market. you get a chance to buy the highest quality markets in tech. >> all right mark, thanks we have to go. it's the top of the hour it's the top of the hour thanks, mark ♪ it is just after 7:00 on the east coast and you are watchin "squawk box" on cnbc

i'm becky quick along with joe kernen and andrew ross sorkin. removingbanks from the messaging system known as s.w.i.f.t. steve liesman will bring us more on why this could hurt vladimir putin and his allies more than anything else. in the meantime take a look at the futures. dow futures indicated off by more than 415 points s&p by 58 points, the nasdaq off by 175 points. everything flachlt you have the s&p 500 and the nasdaq actually ending higher for the week andrew >> let's get straight over to dom chu who's looking at this mor morning's premarket movers, and there are a lot of them on the downside. >> absolutely. we're focusing more on the

macro picture that we're seeing. you've seen some of that play out this morning so far. we're still keeping a close eye on what's happening with the treasury complex overall because as we've seen developments escalate a little over the weekend and these possible truce talks happening on the belarus border here, we receive a downtrend. here, a 1.5% and then a spread between the two-year and ten-year bond yield, it's actually ticking it a little higher. a little bit of a mixed note just to put things in context. for the benchmark ten-year note yield, if you look at the range since the conflict started to escalate in middle to end of last week, on the high end of things, we're talking 2.07% on

the lowhigher end the lower end, 1.86% also on the cryptocurrency side of things, we went to the cryptocurrency side of things. bitcoin up about 1%. ethereum prices one half of 1% and generally what you're seeing so far is a little bit of a bid, a marginal bid to some of those cryptocurrencies we'll see if those trades play out. another thing to keep an eye on, overall, where we are in terms of the nasdaq. as mark msaid, the composite hee was the lower end. that's where we opened in the nasdaq now we're down roughly from the

all-time highs we were down as much as 22%, 23%. that's one we'll be watching for sure i'll send things back over to you. >> thanks, dom. we've been talking all morning, the u.s., eu, and uk cutting off fwranks the s.w.i.f.t. messaging system. steve liesman back with why it matters so much to the global markets. hey, steve. >> hey, joe. inside russian where historic sanctions are placed on russia, they're having a devastating impact now it's over 1 cent a slight strengthening to the dollar they're forced to raise domestic interest rate to 20% from 9.5% they're freezing russia's $630 billion in foreign exchange

reserves, prompting lines at banks to withdraw rubles, also threatening inflation and a severe recession inside russia the russian stockmarket ordered closed today. the most painful looks to be the freezing of the 630. a bank has never had its assets frozen how will russia prepare for this and the systemic global risk outside of the country banking experts said there's only limited western bank exposure to russia the war will mean higher commodity prices and inflation, a bigger hit in europe than in the u.s. of course, there's concern of possible counter sanctions they've ordered banks not to buy from foreigners. no one can be sure how this will

all play out, where the u.s. already has high inflation futures markets continue to predict fed really reserve rate hikes, but the process of a 50-point basis hike has plunged now 7% they're certainly watching the situation warily for potential impact beyond russian and ukrainian borders. joe? >> steve, earlier, you know, it shouldn't always go back to china, but a lot of times it does can you go into what type of action we could potentially take if china doesn't balance its interest perfectly and actually were to come under the -- where we actually had some sanctions head that way? that would be a much bigger deal, wouldn't it? >> yeah. joe, it's -- it's really a great question, and among the reasons

why is because we can do this with russia because of the lack of integration of russia into the global financial system. beginning in 2014, russia began to disintegrate itself and we began to move apart from them. russia began to take steps to take its money out, for example, out of the federal reserve in new york so we can do that. we cannot do this with china in fact, i guess i can say this. i was speaking to the executive of a top bank yesterday, and the concern was not with russia. the person said they could unwind their positions in russia, there would be some losses but it made that person think about the relationship with china. and, joe, i think you're on to a really profound thought here, that maybe this is a deglobalizing move here where you have to start to think about your assets and your investments in places that have, you know,

less than optimal rule of law and where authoritarians are potentially -- are in control and potentially could come under sanctions like this. joe, what you're talking about would be devastating to the global financial system. what's happening now with russia is not. >> i think china -- i want my old globalist system back. we're going to miss this if we keep going down this crazy road, which shouldn't be happening in 2022, we're going to want our old globalism back. >> you sound like davos. >> i can't wait for davos in the spring. >> can i say, though, this is terribly naive of me, especially with what's happening right now with the tanks and the artillery shells flying and the war, but the idea of using the global financial system to foster and maintain peace is not quite dead yet. we will see if these sanctions

in russia have the kind of impact that the allies expect. you're talking about the russian economy overnight is now 20% to 30% smaller in dollar terms. these sanctions will bring it home to the russian people we'll see if this creates the kind of domestic opposition that could force russia's hand and then really back up this idea that financial integration can be a means for fostering peace but, again, i know today that seems naive. >> you are speaking to an expectat executive at a top bank or top teller >> leave it at that. leave it at that >> it wasn't like you were getting some cash and the atm was broken all right. it was atop bank and a major - okay we'll leave it at that i believe you. see you. when we come back, we'll talk much more about s.w.i.f.t. and the ripple effects throughout the global financial system with well fargo's bill

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want russia and ukraine. continuing to watch what happens with the s.w.i.f.t. system joining us now, bill daly, chair at wells fargo and former chief of staff under the obama administration bill, what happens if we kick russia off of s.w.i.f.t. we've never tried anything like this before. >> steve laid out very professionally, the impact is enormous in russia there's no question. you've seen a ratcheting up of the sanction there's still a ways to go it depends on what mr. putin wants to do and how he pursues

his actions in ukraine, but i think coming together a week ago -- this conflict has only been five days. people were questioning a week ago whether europe along with the united states would take what are considered draconian actions. they did come together they've been consistent and unified, and there's still a ways to go, and it's up to putin at this stage what he wants to do and the impact on his nation. >> i think putin has made many huge miscalculations at this point. one was thinking they would flee, the second was laying down of arms, and the third was the relationship would fraction. none of that has happened right now because he's taken such stream measures to this point. if you were to use sanctions at this point, the sanctions would be to punish the russia people and maybe pushing back so hard on putin he has to stop. does that work >> i think it's an

acknowledgement, becky, there's a sense there's more to being able to react to such actions than sending troops in no one has been consistent in saying we will not send troops in, but there are plenty of things we can do when you have a unified europe along with the united states, the western world when they act together can be extremely strong and unified and have an impact that's rather dramatic people have underestimated the coming together of the west and especially europe. germany's actions over the weekend were unprecedented in our modern history they've changed. even hungary, the president of that country who believes he's very alined with putin now separating themselves from putin and russia. >> what's the impact on the markets? we're watching

financials in europe and other places down on all of this news is that because the federal reserve is not going to be able to raise rates? because there's concerns over the implications of what s.w.i.f.t. is? >> i think when you see every day on television the conflict that's going on and then you have mr. putin saying, you know, he put his nuclear forces on high alert, that's volatility to an extreme so i think the market's are react irv for a whole host of things because there's turmoil going on and the perception of turmoil and that makes everyone uncomfortable. again, we're only five days into this conflict. we'll see if anything comes of the alleged peace talks today. then president putin has a real challenge. how strong can he go in the ukraine when you see the dedication and resolve of the

ukrainian people and the world standing with ukraine. that's pretty natural force. the world is focused on ukraine and putin's actions. >> hey, bill, what's your political analysis of what's happening here i ask you more in the context of what you think this means for the midterms and the future insofar as there was a view even as of last week when this first began that this was very detrimental, for example, to the president and the administration i don't know if that's the case on a morning like today. >> i think it's hard to judge right now, to be honest with you, andrew because, i will say this,the president has done what many thought would not be able to be accomplished, and that is bringing europe together from sweden to germany to france, hungary now, along with the united states, and the president's leadership in that

and his history of knowing and relationships with people, i think, is paying off incredibly, and i think a few years ago, one wouldn't think this was possible to bring europe together under the u.s.'s leadership once again to take action so it's hard to tell what the impact on the midterms will be obviously the inflation, the economy, how this really impacts us over the long term will have greater factors than the last couple of days on the midterms, but this is as we all know in politics today, it is very fluid. and those who predict know what's going to happen nine months from now, ten months from now. no doubt about it. midterms are tough in a new president's term generally, historic lirks you lose a lot of seats. but i think it's hard to tell what impact this will have on all of the midterms. it's rather inconsequential right now considering what's going on with ukraine and the

ukrainian people's resolve. >> let's talk about peace talks. what would success look like >> obviously a cease-fire, a sta stand-in-place for the russian troops in ukraine. belarusian troops are going to come into ukraine. obviously if that would stop and there would be serious discussions by zelenskyy and senior leadership of russia as to what they actually want it seems the way putin has addressed this, he wants ukraine back into his new dream of a new soviet union that's not going to happen the ukrainian people have rejected that. so he's got to be facing up to the new world of the 21st century, not the 20th century with the old soviet union, and that's a hard thing, it seems, for him to stomach. >> i'm going to be very delicate you're a democratic operative.

i think a lot of people would say putin and ukraine brought europe together. i don't think necessarily they'd give all the credit to -- but, bill, there was a poll "washington post"/abc concluded a poll a new low. 307. that could change. if this works out favorably, that could certainly change, but you're not seeing any of what you describe at this point 54%, a strong majority thinks he's lost it i think it's 54% to 40% think he doesn't have the mental capacity. >> joe, i didn't say the american people were coming together saying -- or the people of the world, but there's no doubt if you just watch your own show and other shows that the president over the last number

of months has worked the european leaders first of all, we've been very up front about the intelligence we have that's much further greater intelligence than europe has about what putin's real motives were and his actions were going to be. u.s. does still lead in the coming together of europe, no doubt about it, putin's actions caused that, but the president and other leaders or where others have been consistent in saying that if there is action by putin, we will all respond in the west and we are still the leader of the free world at least. >> yeah. >> bill, thank you bill daly. >> great thank you. thanks. okay coming up, we've got some highlights from warren buffett from berkshire hathaway. before we head to break, take a look at the markets this morning. we do have red arrows down

across the board the dow down 326%. s&p off by about 47 points we're back after this. keeps has given me the control of my hair back. seeing the progress was awesome, seeing my hair grow back so quick. i feel great, i feel confident. i feel very happy about my journey so far with keeps and where it's going in the future. get started at keeps.com/tv.

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places to spend his karchlt his stash grew to $144 billion last year it wasn't that he didn't want to spend the money. he wasn't willing to pay the prices they were asking. the $144 billion is mostly in u.s. treasury bills. he said that imposing sum is not some deranged expression of patr patriotism he said there's little that excites us that's largely because of a truism whether it's stocks, apartments, farms, oil wells, whatever he highlights the contributions they make to the american economy. this comes at a time when corporations are nation risings scrutiny on issues he paid $3 billion in taxes in 2021 he also pointed out that berkshire owns and operates more u.s.-based assets than any other

american company and he pointed out that the $402 billion that they own means they're single-handedly handling over half of the u.s. debt. greg abel would be buffet's successor if something happens to him buffet gave a nod to berkshire investment managers todd combs and ted weschler it makes up 10% of their investment portfolio he pledged berkshire would keep $34 billion in cash for an emergency. the meeting is coming this year

on saturday, april 30th. it will be held in person in omaha once again for the first time in two years because of covid. you will have to have proof of a covid sax navaccination to be in attendance if you would like to submit a shareholder question you can sent it to ber berkshirequestions@cnbc.com. check out the price of oil wti crude at 95.78 brent is up a little over 4%, fears that the oil and gas prices will be up. we'll discuss the oil patch and what it could mean for prices at the pump in just a bit "squawk" coming right back they suggest that we marry our fortunes with...the capulets. blasphemy! fear not.

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i didn't know my genetic report could tell me i was prone to harmful blood clots. i travel a ton, so this info was kind of life changing. maybe even lifesaving. ♪do you know what the future holds?♪ the sanctions taken against russia are already having an impact inside the country. matt is joining us more on that.

matt. >> reporter: sorry, guys i didn't catch that. >> did you hear us, matt we're trying to get a sense of what you're seeing on the ground in moscow right now, especially when it comes to the banks and the larger implications. are we seeing bank runs, for example? >> yes so we're in belgrade right now in southern russia i'm hearing a loot of essentially anxiety, bordering near panic coming out of moscow, especially from everyday citizens who i think are really for the first time experiencing some significant economic shocks from the u.s. sanctions. you meant currency runs. it's not widespread, but it's frequent there have been images online of people lining up at atms the krimm len as well is trying to go into a damage control. we heard, essentially, yes, there is basically a new

economic reality right now, but he's insisting the russian government has all the means it needs to try to mitigate some of these concerns putin is set to hold a meeting with the leaders of the russia economy. we're talking about the head of the central bank, the head of spare bon and the prime minister there's a shock happening among the public with regard to these sanction, and there's a lot of questions what is next for the russian economy and the ruble as well i lost you again. >> matt bodner in marco rubio. russia we're going to speak again to you very shortly we want to get the latest from kayla. >> we're getting news from the treasury department what the sanctions from the u.s. and

allies will look like. they'll be essentially blocking tracks with russia's central bank in the u.s. and any of those transactions that are happening in dollars overseas. they will also be sanctions russia's direct investment fund. it's a move with a goal of essentially trying to limit russia's access to any transactions worldwide to take direct aim at depleting any rainy day reserves that russia has been building up for the last eight years it's a coordinated move with many western allies. canada, japan, european countries as well. no word on where china stands which has been conspicuously absent from that list of countries. a senior official said a few moments ago the acts will take effect immediately the administration wanted to put them out before the markets open to give the market a chance to digest what exactly the impact will be. the officials say they've been in discussions with regulators

for months to try to understand and limit any potential fallout in the markets or with financial institutions from here, but it just underscores what we heard from many in the white house that russia needs to feel more pain here's the u.n. ambassador yesterday. >> we hoped that the russians would listen to the pressure we were pug them under, but they didn't, so they'll have to feel additional sanction and pressure on their economy, and they will feel the pain. >> negotiations between ukraine and russia have begun at the belarusian border, that according to the kremlin and to other reports from the area. ukraine's president voedlodymyr zelenskyy has sent someone in

his place. they're sending weaponry and equipment including another historic first, providing a first-ever $500 million in defense assistance you're seeing athous thousan anti-missiles. all of this coming to their defense trying to fortify the country as the fight continues ukraine has said in those talks at the belarusian border, he'll be calling for an immediate cease-fire and withdrawal of troops >> still to come this morning, the cdc revising its guidance allowing 77% of the country to go maskless. we'll have the latest with dr. scott gottlieb. the dow is still down by about 300 points s&p 500 off by 45. the nasdaq down by 140

stay tuned you're watching "squawk box" liven from the nasdaq market site in times square

the decision to block puts oil supply in serious condition. michael jones, ceo of care vel concepts i'll start with you, thomas. i think you -- you may believe that this is -- represents some type of important point in deciding what to do with whethe we leave hydrocarbons in the ground or whether we renew producing them as quickly as we can. do you think that this will refocus the entire world on how to handle that >> well, i'm not sure we're going to focus the entire world. you look at public policy, respect the esg. however, i think what you're going to see is you're going to

see more of an effort from policy makers to pryor tice matters of national defense, national security, and especially energy security as you start to move on as we look at it now, it's termed to with a tailwind for the commodity cycle. we're seeing environmental impact and corporate governments are playing a key role what you're seeing is disinvestment and exclusion in the capital markets. it's also affecting commercial lending practices. that's restricting access to the capital and costs of capital and lastly when you think about corporate governance, this is not the major focus when they think about energy security, it actually is because what you're seeing is a nexus of 120 in cash

flow as it is now request the framework to return cash to shareholders, those same companies are investing a margin of that. maybe 50% to 60% as you start to think about what that means in terms of energy in the united states, that's certainly a major issue as we see it. >> i know you want to hasten the transformation to renewables would you at least concede we didn't have the necessary replacement ready to get to the point where we are already jen psaki, they ask her whether we should start drilling more, and she said, no, we need to -- we need to refocus on renewables to put -- to patch up the holes in the supply that we had. you take every renewable in the world, and it could not power our power grid here, no matter what at this point. >> yeah. i'm not going to dispute that at

all. first of all, i want to say gold and blue -- and salute to the extraordinary ukrainian people. >> agreed. >> -- but also i want to note i personally don't think the biden administration or esg policies have very much to do with the lack of investment and expanded capacity from oil producers. first of all, let's recognize we're at 12 billion barrel as day. that makes the u.s. the number one producer by a mile, 26% more than the saudis. since the crash in enp expenditures because of the covid infection, we have 300% increase in rig accounts and we're going to be back to 13 billion barrel as day, which is our all-time high by the end of the year you may ask, why aren't we getting more why isn't it expanding i don't think it has anything do

with esb or the biden administration going to be history of losses -- >> michael, can i just show you something? i didn't include all the countries this is retail electric prices, and i've got europe to show you, and i've picked six countries and the u.s. we're still way down at $15 per -- for kilowatt hour as you can see. you don't think policies and tax policy and environmental energy policy plays a role in that? do you want to head down that road. >> let's look at what's happening in germany we're paying a third less than

germany. all of that. they went down a path of denuclearization you had great britain and fracking that's not the case in the u.s whether it's the democrats under obama and biden, they have embraced fracking. they are actually governing to the right of the so-called conservative parties in germany, spain, and great britain do i think it's an issue in europe yes. it's just not an issue in the united states. >> have you seen a shift in energy policy, thomas, in the last couple of years >> the energy policy continues to shift and it continues to be more punitive. it's not an unintended consequence. it's what the condition is. >> i thought they wanted to leave it on the ground. >> listen. they want higher prices. if you are thinking about climate and you want to accelerate it, you want higher prices for fossil fuels because you exaccelerate the adoption.

the issue is a couple of points. one is esg is certainly playing the most critical role in the united states. yes, there are losses, but that's corporate governance. that's holding managing teams accountable. >> it's capitalism. >> of course, it's capitalism. i'm not saying whether it's right or wrong we're talking about what's in the best interest of the united states you take a look at where prices are. biden says, listen, guys, i need you to get out and drill, you shouldn't be talking to the exxons you should be talking to the shareholders it's the shareholders who say, listen, it's okay to sacrifice share producing and resume production that's not okay. that's not where we are in this world today. that's the big issue. >> i agree 100%, but isn't that a market response?

they've got investors in fracking that -- >> as we've seen, guys -- as we speak, the supreme court is taking up a huge case about, you know -- because the states challenge the biden administration trying to regulate certain emissions it's a combination of all these things, but it's definitely not as friendly for a lot of reasons. thank you, thomas and michael. carave a cavavel, i thought you were going to bring me ice cream. >> it's not ice cream. >> it's the cass peerian ship. >> it shows you where my mind is. when we come back, dr. scott gottlieb with the new cdc mask

guidance that interview is minutes away. >> and congressman kevin brady will talk about the invasion of ukraine, sanctions, and much more the futures right now are predicated down, although, improving some dow futures indicated down by 288 points s&p futures down by 42 the nasdaq off by 131. "squawk box" will be right back. ooirks - [announcer] bito, the first u.s. bitcoin-linked etf. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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. back i want to get to eunice on in beijing. quite a balancing act it may have to be good morning >> absolutely, andrew. good morning to you. as russia continues to come under pressure, china continues to play both sides when asked today about president's decision to raise higgs country's nuclear deterrent alert, the chinese foreign ministry reiterated its support for russia's, quote, legitimate security concerns on russia's banks being blocked from the swift bank messaging system the ministry said that china opposed eunilateral sanction aud

won't continue normal trade with russia unusually, though, the chinese government is facing a backlash back home over its stance. a group of professorsposted a letter online condemning what they call putin's invasion of ukraine. this say description of russia's attack that beijing has been avoiding the chinese embassy in crew cr ukraine has come under heavy criticism and appears to be flip-flopping its advice to citizens the chinese censors have been very busy. the chinese government continues to paint itself as neutral with official media now expanding on the phone call between president xi and president putin where president xi was supposed to have supported dialogue that china as a neutral party should come in and alkt as a mediator

china is finding itself in a very precarious position where on the one hand it wants to be perceived as anti-american with russia but on the other hand it has very close economic ties as you guys have been discussing with the u.s., with europe, as well as its asian al lice. it wants to present itself as neutral, though, it's unclear whether or not people are convinced. >> eunice, when you think about -- when you think about this, quote, unquote, balancing act, where do you think they're really at? do you think they're more with russia or more in trying to keep a global stable market >> i think they're actually trying -- china is with china's side some of on the one hand you see they are coming out and supporting russia. they do see that they have interests aligned to be anti-west. but on the other hand, we're already seeing reports that the

chinese state banks are issued credit dollars for financing of purchases for russian economies. there's this level of nervousness among some of the refiners as well who put a pause on some of the receipt of certain oil and other energy products coming from russia. these are some of the reports we're getting out of here, illustrating how complicated things are that china and its companies as well as its banks don't necessarily want to get slammed themselves from the west >> eunice, thank you very much eunice uyoon standing by in beijing. this morning, dow futures are off by about 290 points. s&p futures down by 42 the nasdaq down by 134 if you've been watching the treasury market, you see the yields at this point, yeeding below 2%

1.918% is the last tick. in the last half hour, the biden administration announcing more sanctions, kuing off u.s. transactions with russia's central bank we'll have more on this story in just a few minutes. but next, dr. scott gottlieb on the cdc's new mask guidance "squawk box" will be right back.

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it is just before 8:00 a.m. on the east coast. you're watching "squawk box. i'm andrew ross sorkin along with joe kernen and becky quick. take a look at the futures as tensions continue amid some news in the ukraine with russia, of course take a look right now. dow off by about 292 points. that's better than where we were nasdaq off by 134 points the s&p 500 off by about 43 point. breaking news. the biden administration cutting off tractions with russia's central bank steve liesman joins us with the details on that. steve, good morning. >> good morning, becky the u.s. treasury department in the past half hour formally

announcing sanctions on the senn bank they're joined by key allies i what is the first ever blocking of the central bank of a g20 country. the result is a plunge in the rue bell it takes 96 to buy a dlafrmt 73 before the war do it the other way, the rue bell is worth a bit more than a penny now. there's been a bit of strengthening, but it's unclear how much trading is happening. the banks yesterday ordered russian nationals not to buy russian assets from foreigners, almost certainly reducing pressure on the ruble. and russia may have access to some foreign reserves. the country has touted its $643 billion fortress russia reserves that's what's been cut off, a lot of it anyway

and some of it may yet be accessible 17% of its assets are in china and as you heard from eunice earlier, china has not signed on to the russian central bank restrictions 256789% is in switzerland. russia may have access to that money as well, banks experts tell me. russia has also required its companies to sell 80% of their foreign exchange reserves to the scentral bank russia has likely prepared for, this maybe better than it did the actual war, and there are always cracks in the national banking system and they have a bunch of gold, but unclear how they might usethe gold to back up the ruble. >> they have the gold within the country or other places? >> in the country, yes, believed to be in the country they also announced yesterday they were going to be buying domestic gold, but i did talk to somebody who has been through these kind of things many, many

times. this person said to me they always have gold for these instances, but they never can use them it's unclear you'd have to sort of create a gold convertible currency. russia is unlikely to be able to do that in any meaningful time or do it at all. >> steve, the question of what that means for the russian central bank to go from 9.5% interest rates and double that to 20%, what does that mean? what's the real impact on the russian people at this point >> well, it means -- by the werek russian households are fairly heavily indebted is my understanding, so it will be a big burden on russian households and a big hit to the russian economy. you can look at it that way which is what would happen overnight if interestrates doubled at a relatively high level. but also look at the value of the ruble if the ruble were to plunge by 20% in dollar terms.

the russian economy is worth 20% less that's one way to think about it imports have gotten much more expense irv, and russia does not produce a lot of the consumer goods. so that's a big hit on people's way of life. >> thank you. let's get over to dom chu what let's moving. what's on tap? >> so, andrew, we've got an acceleration that you might intuitively think might be more agroegs irv by bought up we're looking at contractors on this side of the atlantic for sure if you're looking at some of the premarket movers, those names are like raytheon technologies, up about 5%. northrop grumman up about 4.5% general dynamics, over 4.5%. lock hield martin, at 4% they're coming to a real head.

again, active in the premarket, picking up steam, some of the biggest gainers. of course, financials are going to be a key focus given the sanctions as steve was just mentioning the banking system could be under stress they could have little exposure. for that reason you're seeing jpmorgan chase off about 2.25% others are all down between the 1%, 2% 3rks% range hsbc, barclay and others are trading with more downside than are u.s. banks here. then check on the most popular tickers we search on our website from friday's full session again, given the geopolitical sessions, a lot more focus on the macro side that was the number one on the list some of the single stock tickers include tesla always near the top of the list, block ink,

fintech trade very much in focus. apple always a top search and wti crude was still in the top ten as well. by the way, i know it's not trading right now, guys, but the number ten most searched ticker was the moex russia stock index. it's not trading right now, but still a huge amount of focus given the tensions right now >> at the domino, thank you. totally speculative to ask. >> okay. >> do you think if you were pew tanld you knew this was going to happen a twweek or two a week ao you would buy options on oil >> there's been speculation in the past there's also a question of how rational he is at this point i think some of the moves he's made have not led to the idea. >> you know that oil is going up if you have this as a plan i don't know what that means to the russian banks because you do

it to the russian bank, right? >> right, i suppose. >> what trades do you make when you've brought, you know, a nuclear holocaust into the equation >> you're saying the whole thing is irrational, which it is. >> i'm just say, when you put that on the table, i don't know if he's thinking about oil options. i don't know i thought we were trying to get rid of all those things together we make these things that can never be used. do you know how much time and effort and money and expense and storage and security it can never be used it's a total waste we've been seeing it for a long time we need to get rid of all of them, don't we. >> that's what we convinced ukraine to do back in the '90s. >> we'll protect you. >> look. the other thing we haven't talked about this morning is jay powell is going to speak before

congress and wednesday and thursday this week we haven't mentioned that at all. this is standard testimony to congress and there was a poll that took place with npr and pbs over the weekend that shows america's top inflation is 30% compared to others i'm not sure when this poll concluded. there are other issues that may have taken center stage over the last week. inflation is still front and center, and jay powell is still speaking that he'll have to be pretty hawkish because of the inflation numbers we've seen. >> any respite from -- i don't know ukraine may not factor into it at all at this point. >> no. >> you have to raise rates it's a strange thing to say aloud. >> right. >> i don't think he will.

>> no. i don't think he'll say it aloud. >> how many increase this year in your book >> i'm administrator in the jamie dimon camp of like seven rather than the camp of -- some economists think it's like four, right? coming up, much more coverage on the russian invasion of ukraine we'll going to talk to congressman kevin brady for a republican response out of washington next. stay tuned you're watching "squk x. iss cnbc

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welcome back to "squawk box. dow futures down by 390 points the nasdaq off by 170 points and treasuries have picked up some bid too. the ten-year note is yielding below 2% all the way to 1.195%. president biden telling the state department to provide up to $350 million of u.s. weapons to ukraine senate majority leader chuck schumer also says the white house will ask congress for $6.4 billion in aid to you crepe.

joining us for a look at all of these responses to the russian invasion congressman kevin brady of the ways and means committee thank you for joining us for whatever reason, europe is uniting. germany stepping up to the plate. wea weapons, canceling nord stream 2, or delaying it. the horrific things we're seeing has united everybody i guess as president biden,its like a hippocratic oath. you don't want to do something wrong. that hasn't happened you don't want to get to a troops on the ground, shooting war, whatever you call it. we only have so many options it's going pretty well what are republicans talking about when they say weakness

brought this out on we've misplayed this somehow when it seems like the world is pretty united and sanctions are pretty tough? >> well, joe, there's no question we want to world to succeed here against putin in ukraine. i think it is important that the west has you night it's taken some work on everyone's part to do. this but clearly we're not out of this yet. it remains to be seen what impact these sanctions will have putin still has military force in ukraine and has a vision that's very dangerous to the west and to the world order generally. i think for republicans it's been frustrating because we do believe the weakness invites aggression every president gets tested in their first term, sometimes in their first year my belief is that putin saw just that horrible disaster of a surrender in afghanistan and assumed that president biden

much like president obama would not be aggressive in trying to stop his military expansion plans and so that's the frustrating part. >> that's what i'm talking about. >> a little too late just to be on the record, joe, just to be very clear, joe, we want this to succeed. >> i get it. so weakness. where would you have been stronger where was the opportunity to be stronger >> yeah. two-fold one, i think the disaster in afghanistan really, i think, created the impression america would not be strong here secondly, a lot of these sanctions should have been put in place ahead of the invasion, stronger, sooner i think it's a good thing the president's picked up the pace here and so has the west it took a while. i'm hopeful it succeeds. >> congressman brady, i'm going to ask you a question that tom

cotton was asked yesterday by george stephanopoulos. would you condemn president trump's comment over the weekend -- >> andrew, one, i think the president is now correct in saying -- in denouncing putin and the invasion secondly, there's no question that putin is the problem here this is the enemy we have to focus on i guess i knew this gotcha question was coming, but right now the focus has got to be -- >> it's not a gotcha question. >> yeah, joe -- i mean, andrew, yeah, it is. i think it is right now. >> hold on you come on the air and criticize lots of other politicians typically on the other side of the aisle, and here we are in a situation where president trump has praised putin now repeatedly. >> so -- >> and it seems like a fair question to ask you whether you agree with that or not. >> so i disagree with any praise for putin.

i agree with president trump's denunciation of putin here, and i agree with other republicans that this is an aggression that can't stand, that the west has to be united to defeat it, and we are not out of this yet by any means. >> congressman in terms of energy policy, do you attribute putin's leverage with the west, germany and elsewhere? we're still importing oil. i can certainly see ascribing some blame there through em bolding -- yeah, in terms of putin. >> i don't think there's any question there obviously when you sort of self-sabotage your own american production, taken a number of different steps to lower and

decent advice production, refining in the u.s., not only have you sent a signal that says you're vulnerable in energy, we gave up one of our greatest strengths in my view, which is the opportunity to be that reliable energy partner with europe and anyone else that wants to wean themselves off of russian oil. i don't think there's any question those with huge miscues and can be reversed by the way if the president looks at the green new deal and focuses on how strong we can be as an energy country and how we can use that as a diplomatic power in this struggle. >> congressman, on the same topic of energy, i think clearly there's a policy issue in europe, and they have tried to move away as you know from fossil fuels you could argue there are policy choices or at least efforts in the u state. i don't think those efforts have been realized.

one thing that's fascinating is there are free market fors at play, which is to say esg and the like have created an environmental where investors are moving their money away from these things what do you do about those free market forces given your views about free markets >> yeah. to me it is frustrating coming from texas as you know, we've watched traditional nerm get squeezed financially by private equity in some other groups here and by the government as well there's no question. it's having an impact on the ability to finance a more independent america and balanced portfolio. it's become frustrating to watch marco rubio become our second largest importer to the united states i don't know what the solution is with the private companies squeezing but it has a huge impact. >> it was pointed out last week, when the government sets

policies, it causes them to lose money. yeah, that's the free market getting them out of those activities, but when the government was there in the first place to gum up the works and -- >> but it wasn't the government -- >> it has been in terms of leases and -- >> the price is at $40 >> that was a pandemic you know that. it was the pandemic. don't conflate that. that's like some of is industry, and you don't want to do that. you don't want to use false narratives. >> you watch what putin has been able to do, which is unite the eu, the u k, and the united states, and i would say democrats and republicans to some extent. to watch this play out, he's managed to do things i didn't think was possible, to have germany spending again on defense and to be saying we're united against this. >> kevin, we're trying to make the cost of carbon $57 this isn't law it's regulation for the social cost, capital cost of carbon

it's $7 right now. they're trying to go to $57. as a result, all the new leases for drilling are delayed nonseeing how this is going to come out, and the supreme court is taking up something today that the obama administration had put into effect with emissions. you can't call this a pollutant, plant food. >> joe, what i think is the biggest shame of all, this if we're serious about reducing greenhouse gas emissions, it won't be on the price of energy on everybody and king all off jobs it's through innovation technology that will happen in tu itself, likely from texas and our own oil and gas companies and we should be exporting that innovation and technology around the world to tackle greenhouse gas emissions. >> we had a guy on saying a lot of fraccers have lost money. yeah, when new york state says you can't frac or when they make

water -- >> i thought you like states rights i don't understand this. first you don't like state rights you like free markets. i don't understand what do you like >>. >> as if the government has front e deuced -- you were taking credit for it before. >> i'm not taking credit for anything. >> the government was. you were happy until we needed them. >> i think it's a fascinating phenomenon they want to move money away it's what they've said. >> he's getting his come up answer right now. >> in europe, you've had real policy the policy in europe has had an impact on the united states. >> triple the price. how is that working? >> what you have is all of these pension funds in europe which have actually -- which used to invest in the united states in these things, that's actually what's pushed people like blackrock. that's part of what's happening here. >> andrew, to your point just a moment here, we had some of

those same private sectors going on under president trump and we were growing our american independent, producing more affordable prices, more jobs some of government policies do matter. >> even as the margin. but this is not at just the margin this is a zeitgeist, the green eco activism anyway, congressman, it's been fun. it's been real, and it's been fun. been real fun. you probably thought i was andrew when i started on you. >> no, no. i think right now my focus is on the economy. i think even in military challenges, you need to have a strong economy that's what i want the president to focus on tomorrow night on his state of the union i'll be glad to focus on what he needs to be doing. >> there was a time gerald ford said, wow, i feel your pain. actually that was jimmy carter no, actually that was bill

clinton. i don't think we're going to hear any recognition that people aren't that thrilled that things aren't going well. it's going to be all spin. it's going to be like what country are you from >> things have changed pretty drastically. >> i'm glad biden didn't do anything wrong. >> i'm glad he stood up and has done what he's done to this point. >> from delaware, but -- thanks, congressman. coming up -- why -- if you could just say one critical thing on the other side, i could understand this. >> you don't remember what you did for four years, really >> you're still doing it. >> four years aren't even older. sure, after homework. thankfully, voya provides comprehensive solutions and shows me how to get the most out of my workplace benefits. what's the wifi password again? here...you...go. cool. thanks.

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berkshire hathaway out with his letter he joins with a chorus on investors complaining how the stockmarkets have gotten too expensive. it grew from a year ago. it wasn't because buffet wasn't looking for things to spend his money on he couldn't find things at the price he was willing to pavement

as he said, that imposing sum is not some deranged expression of pate trootism. today, though, we find little that excite us us. he goes on to add that's partly because of a truism, long-term interest rates that are low push the prices of all productive investments. these are stocks, apartments, farms, oil wells, whatever he said it will not live forever. that's not to say berkshire department deploy capital in 2021 he continues to buy shares last year smechblt $51.7 billion to buy back about 9% of the shares that had been outstanding at the end of 2019. but the pace has slowed so far in the first quarter of 2022 berkshire as you know is a combination. he highlighted what he calls the four pillars of the company.

the nsf rail roerksd berkshire hathaway energy, collection of insurance operations, and apple. bank of america comes in at number two at just under $46 billion. at this point or as of the end of 2021. berkshire owned 5.55% of apple shares and that's up from 5.359% from last year every 0.01 earnings of apple added up quickly apple paid berkshire dividends last year with no special premium. he gave a shout-out to tim cook in the letter calling him brilliant. he laid out plans for an annual meeting that's happening this year on saturday, april 30th it will be held in person in ohm

ahh once again for the first time fwho years because of co-vichld i'll be asking questions along with munger and others you f you have a question, you can send in an email. how much global banks are exposed to russia? fallout from new sanctions are likely to be felt throughout the new world. we'll talk than. stay tuned you're watching "squawk box" on cnbc we're live from the market times square you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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welcome back to "squawk box. with are watching energy price you can see ice brent, 101 other oil-consuming nations are considering releasing 70 million barrels of oil from their emergency group stockpiles there's an opec meeting scheschedule ed for later this week. >> key banks are being kicked out of the s.w.i.f.t. messaging system causing uncertainty for other banks around the world leslie picker joins us with more. >> they're barring some of the leonards the that could have

ripple effects that could reach wall street. it could be met with a counterparty that's unable to pay. the key question is where that party settlement risk lies and whether it's systemic. it was warned in a note that banks' inact to make payments due to their exclusion from s.w.i.f.t. is the same as lehman's inability to make payments due to its clearing bank's unwillingness to send payments on its behalf the same thing happened in 2020 caused mispayments it was noted. analysts speculate european banks will have far more risk exposure this morning they'll see much more decline than that of their u.s. peers along the big u.s. firms, those with more exposure could feel greater effects from the sanctions, goldman sachs, citi, and jpmorgan derive the bigger

portion of their earnings from europe they're all lower this morning andrew >> but, leslie, i guess part of the question is wall street -- was wall street lobbying wall street ahead of this week's actions? >> they were, which suggests that a lot of these big banks were not super supportive of the idea of cutting several lenders. their rationale for doing so based on the people familiar with the matter, they believe that would actually hurt russian consumers more than it would hurt putin and his allies. it could be another trigger to send inflation higher than it already is their belief was russia has been in the process of creating an alternative. this would strengthen their motive to be off the system entirely and push them into the arms of china and the way of the west those are rationale points they were communicating

that said there was an about-face that many did not believe they would actually take this step. >> leslie, thank you appreciate it. when we come back, what does russia's invasion of ukraine mean for the widely held stocks around the world we're talking specifically about the big tech names noted investor dan niles will be joining us stay tuned you're watching squaks on cnbc ♪♪

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markets under pressure this morning with the dow off more than 450 points. you skr jay powell heading to congress this week a lot of people are wondering what it means for the markets overall. joining us right now to talk about the fed's impact is dan niles. he's the founder of portfolio manager at the sew torrey fund we have seen a huge shift in what investors are willing to deal with in technology this year where would you sum things up given this volatile market >> i think a good summary is we've gone from last year where it was stell me the dream. tell me how big this was going to be to now the market's shifts

to show me the money we want to show growth but we want to show you can grow profitably and they want you to have a reasonable valuation, and so that's a very big shift from last year. the other thing we figured out is the pandemic beneficiaries, you're seeing a lot of big givebacks, so whether it's e-commerce, amazon, or in finance with paypal, all the big winners from the pandemic, you've seen businesses show down and you're trying to figure out what the normal rate of growth is you've got inflation running hot which is terrible for technology stocks that's a big summary to where we are today relative to last year. >> that gets back to the $64,000 question being what will the fed chairman do next what happens what do you anticipate hearing from him this week >> i think this is very similar

unfortunately to the 1970s where you had slowing growth butted you had high inflation mainly because of the mistakes the fed made in the late '60s. and you're in a similar situation where jay powell should have been dealing with inflation last year. he should have been raising rates, cutting off what he was doing with the balance sheet instead he let this run hot and now you're sitting at 40-year highs and inflation and that really hurts the people that can't afford it. it's the people that don't have stocks, that don't allow it. and is that's still 40-something percent of the u.s. population and they're getting killed when they go to figure up their car at the gas pump or pay rent or go to the grocery store. so i think he's stuck where he's going to have to raise rate whether he likes it or not actually he doesn't like it, but he's going to have to raise rates and he's going to have to do it five or six time this year and be more aggressive than everybody wants despite what's going on with russia and the

ukraine. >> the five stocks we're looking at right now, apple, microsoft, alphabet, amazon, me ttameta, n them were there in the '70s. how do they react to an environmental like that? >> the great thing is if you go back to what i said, it's a show me the money story so the good news is every single one of those stocks you mentioned to different degrees makes a lot of money they're very profitable. they have reasonable pes some more than others like google if you look at google, they're growing revenues, high teen this year they benefit from the economies opening up because don't forget, they've got a lot of advertising, 10% to 15% of revenues from things like hotels, airlines, vacation spots. i didn't go on vacation this past holiday season but i plan to go this next holiday season so they should really benefit

from those trends. that's why that's our favorite name out of the big cat tech names. the rest of them obviously like amazon has been giving back. they missed several quarters on e-commerce that's going to continue to slow you've got to worry about whether there's some giveback in smartphone demand or pcs which we haven't seen yet. so, you know, obviously we've seen issues with facebook related to apple each one is a little different, but i think they'll hang in better than rest. >> if this is a situation where the fed doesn't react as quickly because of the uncertainty of the global scale at this point geo politically, does that mean too much pain has been baked into a lot of these stocks that have taken hits. >> i unfortunately don't think so because if you step back and look at the big picture, you've got inflation running at 40-year highs, but you have skral yags sitting at near record levels. if you take a market capital, stockmarket, and divide it by

the gdp of the u.s., the average over if last 50 years was 0.8. during high inflationary periods, you exclusively have lower market multiples you can have multiples compressing. don't forget growth is going to slow down this year. the russian situation adds to it they export 30% of the world's wheat, put out a lot of the neon gases used, palladium, nickel. they're top producers of that as well it's going affect a lot of the input costs going into the tech industry as well as ag and industrial that's going to be a big problem for inflation, and that's really the issue. high inflation means low multiples and slowing growth that's unfortunately the soup you're in right now, which isn't good. >> when you say slowing growth, is your overall thesis we're going to wind up in a recession?

>> i think late next year that's my working assumption right now is we're going to end up there people for get if you go back and look at 2019 before the pandemic hit, you'ded will seen an inverted yield curve which is one of the best predictors throughout whether you're going to enter the recession or not the pandemic hit in a weird way because you put in some much stimulus from the fed and central banks around the world and governments. you had growth take off to the best levels in multiple decades. now that's slowing down. we're going to find out what the growing rate is. with high inflation, you can't keep stimulating the way you were so now we're going to figure out where things settle out. ungot natalie it's going to be a lot lower than what people think. >> i don't know how closely you follow the cybersecurity area, but that has to be an arena that's getting so much more attention because of the threats from russia, companies trying to figure out how they can quickly

secure things if they haven't done a great job of that in the past how do you fight against a nation state and what does that mean for the cybersecurity industry and the names there? >> it's a space we're looking at, but the thing is from our per speck tissue, a lot of those names are also incredibly highly valued obviously it's a space that we're interested in. woe like other areas better, which we're in you know, we're looking at sort of -- there's three cycles going on that's related to infrastructure you've got data center build-outs, 5g build-outs, and company and enterprise spending again as people go back to work. you can buy some of those names like cisco we bought seiena and momentum. unfortunately a lot of those cybersecurity stocks you mentioned, becky, they're trading above market multiples

in this environment of compressing multiples, we'd rather be with multi-year investment theems. it's all about russia and ukraine. we're trying to think out for the next two or three years and obviously cybersecurity a s a great space. we know that some of these things that are going on with infrastructure spending, that's a lot newer. we've got multiple different cycles happening at the same time that's why we're looking there and not so much as cybersecurity even though you said it's a good space. >> thanks. good talking to you today. when we come back, we get jim cramer's first take on the markets this monday morning and all the weekend's news out of russia and ukraine you don't want to miss this. watch or listen to us live at any time on the cnbc app stay tuned

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to the new york cstock exchange with jim cramer we're back to square one with

how to try to evaluate what this means to the financial markets, the invasion. >> i think that's very right i think the negativism is just rather extraordinary i mean it doesn't really matter what happens it's viewed at negative. it's rallied substantially since 4:00 a.m that's because people want to try to evaluate individual stocks and don't see a lot that should be down versus this general avalanche we keep getting. i think the future is becoming a lot less relevant. you have to try to figure out what stocks should be. that may be your opportunity. >> do you -- we talked to mark mahaney. i was struck, jim, that most of the rotation and pullbacks and all of the high flyers, it was -- we were at the beginning stages of the troops getting amassed on the border. it had already happened.

now, either the market really is prescient or there are other things at work really dictating stock prices >> well, i think it may be other forces at work i mean obviously it looks like the russian troops had to be able to soldiers obviously what happened -- it won't matter i think what has to -- i think if you're putin, you use overwhelming force just because you don't want to lose your job. it could happen. you might not be too anxious to be able to buy stocks. but, you know, we minimized our exposure of russia and china you have bp, british company exxon has the exposure i'm working on that. i don't know, joe. the endless let's sell everything because of what is happening over there is starting to look pretty stupid. >> jim, what do you think is in china's best interest now if they're looking around and seeing the sort of global reaction to what has happened

and, you know, they're an economic force more so than maybe russia is. and they need to play on the world stage. do you think they would be partnering with russia or distancing themselves? >> no. i think they'll distance 25% of their export goes to europe they have tremendous road interest in all the countries. so i think that. putin thinks they're going to let them -- they're going to join them in this, i think putin is wrong as you said, china, very economic animal. russia doesn't buy much. >> it could have nothing to do with the horror of civilian casualties or children's hospitals being in the line of fire it has nothing to do with that it has to do with china's self-interest probably isn't in cozying up to a madman, really that is like his marbles. >> i think that's very right i think that's very right.

i think that the prc wants stability and right now putin seems unstable >> i think maybe they -- because of that. i mean, the response that the world -- it's 2022 you don't just go grab something because you want it, i don't think. more likely or less likely for taiwan >> less likely i think those who think more likely -- again, the negativism -- no matter what the united states does something wrong. that seems to be kind of a mistaken way to view it. the germans came around this weekend. >> yeah, they did. >> the germans are suppressing the green party so they actually go something other than wind and solar then it would be a major -- >> yeah. you can't power the grid. >> i agree. >> you can't. >> but the show has been great this morning

i like it. playing a conflicting role fantastic. >> thank you, jim. >> he's conflicted, that's for sure. >> thanks, jim 'lseyowel e u in a couple of minutes. "squawk box" will be right back. cody! hi!! hi! how are you? i'm good! i'm crocheting. i see that. started off as a hobby. kind of snowballed from there. and alex, i don't want to stop. well, i don't see why you should have to. let's set you up with a side gig savings goal on the u.s. bank mobile app. this way, you can turn it into your main hustle before you know it. you're my hero, alex! what are you working on now? pool cover. that's fun. oh! i made my wife a bathing suit. oh, did linda like it? she did not. oh. you should see what i made for max. max! look at him. he loves it. the confidence to make your dream a reality. u.s. bank. we'll get there together.

welcome back to squawk a little more than half hour to the opening bell on wall street. stake a look at the futures. in the red this morning. the dow has gone back and forth all morning. joining us now is chief investment strategies at eye capital. good morning to you. how are you setting yourself up on this monday morning >> well, after last week, anything can happen through the course of today and next week. i'll tell you i think it's too early to call an all clear here and conclude that just because we're able to turn around last week that'll happen this week, as well. the reason i say this, there's plenty of risks out there. we haven't resolved any of them. i would say the more risks on the table this week. no progress has been made on the ground in ukraine yet. we're waiting for that today but the thing about sanctions, first of all, they need to be ratcheted up they were not painful enough

last week. this week they are painful they're going to exert tremendous amount of pressure. and that sneaded to happen i worry about the unintended consequences of things like s.w.i.f.t. and many other sanctions. for example, could there be an unintended consequence where we don't get the commodity flows that we're wanting to get or maybe some of those commodity flows get w-- weaponized? i think these are the risks on the table. not to mention cyber warfare, as well i'm not yet saying we have seen the market i think we need to be cautious here so on the other side, andrew, i would say if we are to make some progress in ukraine this week, and if we are to hear a message from fed chair powell on wednesday that maybe they are pairing back a little more hawkish interest rate increases, then that could be the two catalysts that the market needs to find a bottom here and bounce off of that. so these are ifs, at the moment. these are not givens

so for the time being, i'm sticking with the playbook. >> anastasiia, what are you thinking we'll hear from jay powell later this week he'll be testifying in front of congress. >> i think he has to acknowledge the fact that the political risk has surged and the financial market conditions have tightened significantly. he has to acknowledge the fact we're starting to get to levels of commodity prices that probably are going to meet some demand destruction even though we'll see higher headline inflation because the commodity prices, this is starting to become painful for a portion of the population. all things equal, this is going to destroy some demand i think he has to acknowledge that and speak to the other side of it that the broader inflation pressure that the u.s. is broadening through wages and how the housing crisis and that'll still justify the rate increases is not to the same tune as if we

didn't have the russia/ukraine situation. it's a fine balance to walk here i know many people are worried about the fed putting the economy into a recession i think it has to do his best to find a balance and prolong the recovery that's the best path to 2% inflation and full employment. >> i appreciate your perspective this morning as we try to make sense of the week ahead and there's going to be a lot of news throughout the week a final check on the markets now. we're in the red across the board. we'll show you the 10-year note. right now the 10-year at 1.889. >> it keeps falling this morning. >> a lot of folks will be looking at it this morning in terms of what jay powell may be thinking about finally, if you want to buy a barrel of oil, joe will stockpile them in his backyard

two years now. >> yeah. $95.69. >> take delivery better than live cattle. i mean, think about that it's a lot of work. >> neither is easy. >> no. >> we're going to keep our eyes on all of this, as is our team at cnbc. make sure you join us tomorrow "squawk on the street" beginnings now good monday morning. welcome to squawk on the street. i'm david faber along with jim cramer carl has the morning off we get a look at futures as we get started. trading 30 minutes from now. we'll start on a down note significantly down note. why? well, of course, because of where we'll begin this morning the continuing market volatility in the wake of the russia/ukraine crisis. western nations ramping up sanctions against russia with steps including blocking of the banks from the s.w.i.f.t