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

the ruble tumbled to fresh regard lows and the russia central bank doubled to almost 20%. there's that and an whole lot more to grab ahold of this morning, jim. >> i think we have to start with last week. friday run was kind of epic proportions on top of thursday it would be possible you see aer have s-- reversal of some. there's no way ukraine wouldn't roll over. ukraine hasn't rolled over it's in putin's interest to not negotiate. that's putin he won't sit there and say, you know, i'm done. >> there are some negotiations that are taking place. it's unclear what the outcome would be with that the rest of the ukrainians have

exceeded far beyond, including yourself, believed. >> yeah. i didn't think they would be -- >> right when the hostility began it appears to have been an underpowered invasion, so to speak. >> yeah. i brought into the seven divisions economics. it was the wrap we kept getting upstairs, so to speak, from the satellite. now obviously there's a column going. it's starting to feel a little -- so to speak. they fought the russians initially they won and putin came in and raised their city. and, by the way, russian soldiers had no problem firing on civilians then. it seems like the russian soldiers, to me, are holding back i'm not an armchair general and i've read really so much about how putin will continue and so much about how putin is done let's back to our comments not that many companies are

exposed and markets were down more than germany and france and italy. makes no sense to me what is china going to do? they're shut down. it's hard to find out. the idea they have spent so much money in europe and suddenly walk away from europe and the 25% of their country's exports go to europe, that's a loser so i do think that the increasing isolation of putin matters. maybe putin is a dangerous man who will stop at nothing. >> that's a concern, of course, putting the nuclear arsenal on heightened level of alert, let's call it, which he did yesterday. certainly concerned many people, as it should thankfully we did respond with our own heightened alert, at this point but nonetheless it's concerning. the prospect of anything involving nuclear arsenal is concerning, jim. >> but the sanctions to date, obviously, they're hurting the ruble. if you want to undo the russian economy, you stop taking their oil and gas.

that hasn't happened germany, obviously, decided, you know, we're a part of the west. >> it hasn't but, i mean, he's been isolated in terms of russia being isolated in a way we haven't seen in a long time. >> right. >> if ever. >> right and just to quote jpmorgan like many other brokeager firms they said the sanctions are more severe and wider than even the more strange sanctions we have believed were in play just months ago one will certainly hit the mark on the russian economy which looks heading for a deep recession and the imposition of capital controls the question also becomes how much will it hit the population? there's obviously some protests. people are quickly taken off by the streets when they protest the war, but there could be some significant -- >> iran had put maximum sanctions. >> not a lot for their population. >> right. >> it didn't change their political system. >> no regime change. >> right

i don't think the russians are about to have a regime change. the history of russia is if you fail -- >> so, again, difficult to say how long we're dealing with this it's an unknown. >> yeah. two days ago, we would not have anticipated that ukraine would put up such a spirited defense. >> yeah. >> zelenskyy will come running. >> i don't know why people believe that. >>well, look again i'm not an armchair general. i'm looking at companies whose stocks are down. that's what we do. there are stocks that have no exposure are down as much as stocks who have exposure that's the opportunity. >> okay. >> because the futures bring down everything. >> yes and the people who trade the futures don't know anything. futures were down horribly at one point today. now they're coming back. but the r-- role of the futures is interesting, david.

the sellers come in hard then they walk away when buyers come in like people who work for a living and then they come back so don't trust the opening if it's not down 2%. >> okay. leads us where when we look at opportunities to the extent you see any? >> chevron oils bp is cutting and running >>well, cutting and running. they've had that stake for a long time. i mean, they could go back way back to the opening up of the russian oil economy, so to speak, and beefy was there exxonmobil was there. >> yeah. bp took that. >> yeah. it's not clear. >> yeah. i'm not sure what bp does. >> yeah. like my house is for sale. >> you need a market it's not clear they're going take a significant right down material noncash charge. 600 million dividends from the stake. you can kind of back into a

value, if you want to assume sort of a yield on that $600 million, by the way, going potentially going up as oil prices did so not an insignificant h-- hit for bp to take. >> thursday and friday, you started see proctor come back and j and j and industry is going down we'll focus on interest rates. there are a lot of people like wilson, the negativist from morgan stanley doubles down. the negativetism, i find, is baffling to me >> right i don't see anyone saying it's time to buy american banks. >> to be fair, it's kind of scary now. you're dealing with a leader of a country that has 6,000 nuclear missiles. >> right. >> and some people think he's

not completely rational. >> i'm certain of that 44 million people in ukraine and you have to have an army of occupation. >> that was the plan. >> yeah. including nazi germany -- >> okay. >> yeah when you go into ukraine, people seem to think, you know, everybody is a liberator. but the history of going in and trying to liberate ukraine is ill fated. it's a democracy you're not, like, discovering it turns out everybody was for russia. >> no. it could be putin misplaced perspective. >> president exxi was his buddy

>> yeah. >> if the germans decide we're in league with others, they have close ties with the russians, then i think president xi kind of disappears. he's not about to go to the kremlin and say, hey, i'm glad you're taking this action. >> right i want to get to leslie picker on the s.w.i.f.t. side of this it's an important component of what we're dealing with the market that is digesting the news that certain russian firms will no longer be able to utilize s.w.i.f.t. lessly has more on that story. good morning >> reporter: good morning. u.s. bank exposure to russia is limited with only citigroup having material exposure according to a new note this morning by goldman sams. city has about $5.5 billion worth of loans, investment securities, and trade ago count assets, as of the third quarter. other large cap firms don't break out their russian exposure the country is not on the top 20

list for any of them implying jpmorgan, morgan stanley, wells f fargo. european banks, on the other hand, have greater exposure to russia that could have an indirect impact on wall street. jpmorgan in a note this morning saying, quote, while financial disruptions are likely to be severe in russia and the sanctions so far can disrupt international financial flows, the impact will be limited at the global schal as the overseas exposure of russian banks and financial system is relatively small. up closely follow the rate strategies had a different take yesterday saying, quote, that banks in's ability to make payments due to thei exclusion, is the same as leeman's inability to make unwillingness to send payments on the behalf." the note went on to say the same thing happened in march of 020 when concerns about supply chain

disruptions caused missed payment across the board it the issue involves counter party risk any firm could be met with a counter party that is unable to pay. but this market is opaque. it's unclear where the risk lies and how systemic it really is at in the point in time however, you look at just trading in the u.s. firms, they're not down enough to imply there is a concern about systemic risk, at this point in time. >>yeah see. >> they basically made a call to the fed. so far theren't morning there hasn't been evidence of a freeze of that nature we saw in 2020. however, we're still getting some sense of how these

sanctions will roll out. how they'll actually play out in real time. so it's definitely something to keep an eye on steve liesman in his reporting has indicated that the fed is watching it closely. at this point in time, it isn't taking any action. >> yeah. leslie, thank you. >> we see the banks are down interest rates are going down. you see the -- >> are you thinking 50 for the march meeting? >> yeah. absolutely. >> now you're wondering -- >> i actually think that by this time some of this will resolve i heard leeman on it over the weekend. >> because of the s.w.i.f.t. >> yeah. what happened it doesn't pay to be positive. you say it's a leeman moment and it turns out to be bad this is where the press fails.

press is worried about youtube press is worried about saying in positive now it'll be used against you. in the same way this fellow who works at fox, tucker karlsson, you can see endless things how he likes putin you can replay anything and it seemingly wrong on it's difficult to say i think this is, you know, going to be calm for jpmorgan. at these levels, so to speak wells doesn't play -- >> right. >> so if i, you know, if you buy wells, then you're betting it's not it might be 50 basis points. i'm saying that the panic, as encouraged by the media, is unbeatable strategy. i'm not going to there just not going there. >> i don't think we're encouraging panic. >> not you and me. >> not at this desk. >> not you and me. you get something -- let's say

you get an activity where they raise city of kyiv in ukraine now. you're going to look real smart. i'm not going there because i don't care. >> i don't think it'll be the case. >> i don't think it'll be the case we have to talk about the fact you get -- you come in and there's perjury, perjury, perjury. >> yeah. >> even though they're not of the order of verizon buying at&t. >> yeah. >> but verizon every quarter they come on -- >> we're going talk about those deals. we'll start off talking about chevron ramping up. >> i think it's important. >> the green energy. it's a deal, as well it was announced this morning. by the way, later in the program, i think you know this, new york city mayor eric adams on return to work and recovering from the pandemic. he'll join us here at this desk. >> david, i don't know if that's allowed. >> it is now allowed we've gotten approvals

not just for him but others, as well we'll give you a look at futures here when we get started wh it trading 15 minutes from now. more squawk on the street straight ahead check out this vrbo. oh man. ♪♪ come on. ♪♪ ♪♪ ♪♪ ♪♪ ♪♪

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all right. we said we got some deals and there's a look at chevron. that is one of the names behind -- not the biggest deal this morning but one i thought we would focus on more than the others we'll get to the first verizon deal, of course, and perhaps a couple others.

but, you know, this is important, also, it's another u.n. report basically saying climate change is coming so fast that there's really almost, at this point, we're running out of time you've heard that before chevron buying renewable energy group for $61.50 a share an all-cash deal. >> yeah. >> total enterprise value because they about $400 million in cash, it ends up being a little less than $3 million. what is interesting it's part of the effort at chevron to try to get them to 1,000 barrel -- 100 barrels a day of renewable fuels production capacity. by the way, they do about 1.1 m 1.1 million bare barrels of oil. even that they're talking in 2020 they're talking about roughly 10% of their 2020 production by 2030, unclear whether any of the stuff will be enough you can take a look there. they have some projections for us kind of reminded me some of the spac projections 2025, 500 to 600 million in

ebitda if you believe the productions, you get to a multiple that is not too bad. >> the good news from the ceo of c chevron when he upped how much he's going to go from $7 billion to $10 billion -- >> expecting >> yeah. >> yeah. and on efforts to reduce carbon. >> there were analysts and people i spoke to said we have to run from him. because he's going to spend lot of pie in the sky money. this is anything but pie in the sky money. ting makes a lot of sense. c.j. warner was on the ceo of regi a year ago for "mad money." i was impressed. >> yeah. >> what she had in terms of renewable fuels capabilities and you'll have a business headquarter needs. she's going join the board when i spoke to mike today, it is very clear his strategy is such he's going to be ahead of everyone >>well, you know, exxon might have a couple of things to say about that. >> will they >> yeah. what will they do with russia?

no yeah that was some good decision making probably from a long time ago. >> yeah. >> sure. >> but, you know, listen, to be fair, this is well below -- they're buying it well below the highs. >> yes. >> hit highs far above where it's getting taken out about a year or year and a half ago and even the projected multiple on current eb-- ebitdas below 10 and talking about getting it below five pretty quickly. >> they blow it out. >> it's not showing what we're talking about. you have to go back. >> yeah. it's a nice preview. >> yeah. >> i think we have to stay close to what mike worth can do with regi that's what matters more to me than where it is now. >> yeah. >> and there's, look, to grow this look, they are the king of bio

deez l renewables and she's been the leader. >> yeah. i think it's great to have a look where it matters. >> yeah. we'll keep an eye on the energy transition as we head to the break, the nasdaq is observing a moment of silence in honor of those who have been affected in ukraine. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some

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i i. all right. we have a mad dash we're getting ready for an opening bell about seven minutes from now of course, we are expecting a lower opening. >> yes. >> a lot of concern for any number of reasons. teledoc is a name we talked about. it has gotten hit.

here, there. >> yeah. this is a cathie wood stock. i'm not saying we're suddenly at the bottom but they announced a deal with amazon with alexa and go where you can basically get medical help 24/7 now, first of all, i don't know if you have alexa. >> i don't. >> alexa has great memory of everything. >> yeah. >> maybe it could be secure and alexa doesn't know anything about you, but i think that's going to, you know, people are excited about this but i don't know many people will be willing to give alexa their information. i mean, this morning i said, "alexa, play my favorite music." it knew everything i liked it went to morrisson and beethoven vi i thought it was scary i don't know how big it'll be in terms of them knowing everything. >> yeah. it is certainly helping the stock price. >> yeah. cathie wood -- they're going down but maybe she doubles up. i think she's been trying to

create a floor on a lot of her stocks maybe she gets this right. >> you think so? >> yeah. i'm not playing armchair general. i'm going to where i can have an impact and i say -- she'll probably -- she can stand underneath it and buy it, still talking about her style of investing, which i regard as being overbearing. >> all right but what about this decline, jim? this is reflective of a lot of different names. not just as a result of pandemic plays, but any number of high multiple nasdaq-related stocks. >> these are all considered to be stocks that are death traps, basically. you can't get out. they're like roach motels. what this market wants is earnings it doesn't even, like, any multiple earnings above 8, anything -- >> i know. >> if you buy. if you have sales, okay, it will still buy. if you have 10, no if you're losing money, it's

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all right. welcome back we have a minute before we get started with trading here. opening bell going to be run by the mayor of new york city, eric adams. he'll join us shortly thereafter you know, i like to ask you when carl is out our whole thing goes back 20 years you and me key too to the market, jim anything in particular >> yeah. i think the key is lockheed martin. >> lockheed martin >> yes it's the one -- they have -- >> okay. >> it's all excited they'll have big numbers. if you see lockheed martin reverse, then you'll know that -- [ applause ]

>> yeah. [ cheers and applause and not schlumberger so let's watch the munitions companies. i think they're up too much. [ opening bell ] >> there's the mayor of new york eric adams he'll join us on set in a few minutes. over at the nasdaq -- [ applause ] >> we'll go to first rise. it's the biggest deal i've tracked this morning dollar wise that's "t-d. we're talking about first horizon corporation. guests you've had on. >> yeah. i have them on on "mad money." >> yeah. it's a large deal. it's a fairly significant -- 13 let's call it $13.4 billion.

$25 a share. "t-d" getting bigger in the u.s. >> this is shock mog me. brian geordan has been working endlessly and made acquisition everything he does is -- everything even though he's a great banker. it's tremendous cost and, you know, in the end it wasn't enough to move the stock. why? because it's tracked by the etfs it didn't matter if brian is a superior banker and most of the bankers. and along comes "t-d." i don't think will have much anti-trust. >> right it's a fractured market. and it makes you start thinking, wait a second, the big banks have not -- they have more than 10%. >> the biggest banks are -- >> yeah. it'll happen for years. >> yeah. >> yep the franchise of "t-d" which is canadian will be a top six u.s. bank approximately $614 billion in assets, $1560 used to be

branchs. they call them stores. and i'm looking for a deposit number here, as well it gives you a sense of the size of the operation and they continue to grow through acquisition. >> there are a lot of banks in the dhaun are fed up with the evaluations, i think. >> okay. >> yep. >> i think huntingtonback is ed up with the evaluation. >> right. >> i think that these banks are going to be open if we have out of the country wires. >> but, again, to the point you're making, the big banks that we often put up they're not buying anything. >> they can't. >> they can. they won't that's not part of what they can do can they move into fintech and other areas? sure but not buying other banks >> right in the meantime we have to watch the oils everyone is trumping it. >> yeah. not going higher why not? >> i think because in large part

because we're basically saying that our oil companies are necessarily -- our oil companies are a play on west texas west texas crude is barely up. so these people, you know, get a view on that you need those oil prices to continue to escalate from these levels in order for our banks or oil companies to make money. our banks, by the way, we see everything down because the chain-reaction except for first horizon. what do you think about that how hurt is bank of america? >> they're not. >> right. >> they're not but there are larger implications. >> right. >> the general slowdown potentially in trade and there could be certain things supply chain wise affected. i mean, you can get into a lot of things. you know that. ukraine produces a lot of wheat. i had no idea. sunflower or some other oil comes out of russia and ukraine. and then you get to energy. >> yeah.

i would suspect they can choose -- >> okay. i didn't know that either. >> yeah. home depot versus lowe's. >> yeah. we're about to embark on christmas season of these two companies. >> oh, because it's time for planting soon. >> right. >> and i think that these have been sold down, sold down, sold down and i question whether home depot is being conservative in the outlook or whether there's something real but the reason i mentioned this because marvin ellisson had a completely different outlook the ceo of lowe's. >> right. >> he's talking about margins going off, talking about the business being better. and home depot was saying the opposite david, this is quizzical to me. >> yeah. >> because we traditionally trade these together. >> you seem to be more favorable now to lowe's? >> yeah. i think it picked up last week they had a better response to the quarter than home depot. the guidance for which is not

met by great enthusiasm. >> marvin ellisson contacted me -- he's not giving me anything special but the idea of where they are in the transition versus where home depot is said los is the better buy. it will be settled by target, david. which is tomorrow. that's a very, very big deal because discretionary. speaking of discretionary, best buy on march 3rd with a 3% yield. a lot of people thought i don't know about that. >> uh-huh. >> so i'm staying focussed on retail can i talk about the semiconductor? >> absolutely. talk all you want. >> what goes down is the semis they have the least exposure to russia. >> they're not down much now. >> no. who are these people who come in at 4:30? the last hour of the semiconductor stocks >> i don't know. who are these people >> i call them morons.

[ laughter ] >> you're up listening to music, apparently. >> i heard it. it's unexpected. >> i went to the french quarter festival let's talk berkshire here. they own a lot of apple. 5.55%. it went up a bit because apple continues to buy back stock. >> right. >> he's a happy shareholder. >> he is it's been great performer for mr. buffett. since the time they bought it. it's single largest position obviously, they also have burlington northern as a stand alone company. >> yeah. they have big oil and gas. >> yeah. but, remember, it pipes. but those businesses have seemingly the stocks have traded up and geico. >> berkshire had a good year in the stock market, though now, by the way, he likes this stock. basically during the quarter

bought back as much a stock worth almost exactly what they earned you know, $27 billion, $27 billion. something along those lines. they still have $144 billion in cash we've been talking if afor a log time why buffett hasn't done the deal he capabilitied not finding a lot that excites him now. >> why as apple's multiple expands, why does he sell it >> i don't know. >> maybe it's taxes. i doubt that. >> i don't know. >> i'm watching a lot of stocks, david, too well. versus what we thought would happen and, again, i think that's because you have companies that do not have much to do with the small economy of russia but the panic that seems to be in the air is not -- >> yeah. >> it's rather small the state of texas has a bigger economy than russia, i believe. >> but should this anything to

do with the price earnings multiple >> no. it shouldn't. >> so. it shouldn't and on that note, i see tesla shares are up >>well, there was 20 second. he did bump his price target you have to stay close he can speak positively but the price target remains incredibly low versus where the stock is. like, you know, but he said markets can go higher. i love to be able to have it both ways. if becan have it both ways, david, i think the situation in ukraine is tragic but it ises a enlightening you can't have it both ways. >> youmeaning what, jim? >> you can't have a price target of $400 and change. >> and speaking positively -- do you think the stock is going to get cut in half? >> i think it's counter intuitive. >> it is. >> he'll be on at what time today? >> i don't know. by the way, how do you feel about tesla these days at this level? >> i still like tesla very much.

i think the germans have to kind of relent and let him sell >>well, you mean get the final approvals? >> yeah. >> the factories so they can produce? >> yeah. >> in the european market instead of having to move automobiles. >> yeah. i think it's a buyer. >> you do? >> i do. i do. >> and, obviously, gm and foord, as well. if i last remember >> i think they're rapidly going away from internal kbugs and going to ev. the stocks that are down, david, people are trying to figure out why i sold semper energy they do well, by the way it's one of the greatest when you want to see stocks that do well, think about those jeff martin did a fantastic job. >> yeah. >>well, i'm just talking about

i'm trying to be a little more balanced in terms of the negativity. >> i understand. i'm not saying -- >> jim, the s&p, as you pointed out, we had a strong day friday. the s&p is down less than 1% you can see the nasdaq down less than 1%. how much negativity we talking about here >> el with, i just think we should stop trading as if we're in europe. at one point germany and france were down less than the united states. >> no. yeah listen, there is the prospect of, you know, an increased hostilities. >> right. >> concern about a nuclear conflict. >> yeah. our conversation might be a little different. >> in terms of more than a few days to recover from that. >> right right. oh, no i mean, nuclear war -- remember, david, i had to put my head in the cubby during the cuban missile crisis. >> i think we can say -- >> you're not that old. >> berlin air lift was another on the brik moment. >> yes.

>> david, the technology stocks being pushed here tend to have no earnings and very few sales yet you also rally behind them. >> all right so give me some names that, you know, and give our i viewers some names now you mentioned it earlier during the mad dark if you sell at eight times sales. >> bottom line -- >> are produce earnings now. >> where are you going make the stand, jim >> it's not my favorite stock. i'll make a stand on -- >> workday, really >> yeah. i'll make a stand on hpq. >> you're kidding? >> yes i will. >> okay. even with dell and the response it got in the market with what was lackluster, in a way >> that was a quarter -- it just

wasn't great. >>well, they cited supply chain issues there, as well. >> yeah. >> i don't know. he's going to be on tonight. >> he's on "mad money" tonight >> yes. >> i think both of them have decent stories i know that workday trade is down horribly. i'm not telling people to go in. i'll be on youtube don't tucker karlsson me. >> never. >> we're 12 minutes into trading. s&p down a little over 1% now. we'll stay focussed on the markets. we'll have a lot to talk about with that man, eric adamings, the mayor of new york city joining us on set in a moment. ever before we head to break, a quick report on the bond market. we were above 2% on the 10 year briefly last week. we have fallen below that at 1.877. we'll be right back.

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a. welcome back to squawk on the street rick santelli here live with breaking news. the cringe pmi expecting a number around 62 big disappointment 56.3 56.3 the last time we had a number this slow, we have to go all the way back to august of 2020 and do remember it was may of 2020 that had a 38-year low at 32.1 the good news is, 56.3 is above the expansion contraction line at 50. we all know that many events, whether it's what is going on in russia, of course, or what is going on with the rem nanlts of covid omicron having the effect on psyche of investors ultimately, we're hoping it turns around we see markets in a bit of turmoil, and, of course, looking at big jobs report on wednesday and friday david faber, back to you. >> thank you, rick

fresh off ringing the opening bell, eric adams joining us here. the city is poised to end its school mask mandate and indoor vaccination requirements next week, as it continues to recover from the worst of the virus' health and economic impacts. nice to have you here. hope it's in the first of many visits let's talk about the mask mandate going away will mean not just for the school children in the city but, obviously, for people who come here and work, as well. >> it's a combination, when you think about it moving our economy forward is not only substantiative things we must do keeping our city safe, but also a symbolism. when you take off the mask, we'll start to show we're open, we're ready to do business start out two days a week going back into the office and expand to five. it's just a symbol that we are back it's so important. >> yeah. you say expand to five i will tell you jim and i myself probably talking to more leaders of organizations than

most people do, and, mr. mayor, so many would love to have people back as often as they can, but the workers don't all want to show up regularly. and i do wonder what it'll mean if, let's say we get to 60 or 70% but that's it. that's where we get. what will it mean to midtown the downtown area in terms of the central business districts in new york? >> your question is so important. we're not understanding the connection if you see p.a. and you have a client a large number of restaurants but you're home, then people are not going to give business to the restaurants. those are your clients you're not going to make sure d dish washers is employed, everyone at eats at your business is going to be impacted we have to see the financial ecosystem. we're in this together new york city runs on being in the office that's why we have to get back into the office. >> are you worried about that, though again, it seems like there's

been a shift in the way people work. >> i am worried. here is what i know, let's make people safe. part of their apprehension is really fostered in the fact people don't feel safe in the city the transportation system. if i bring about the safety that is needed and show the excitement of being back in the city, bringing tourism back, the joining of the atmosphere, new york is going to come back and be part of the economy. >> it's great to have you here, mayor. i want to follow up on your anti-crime stance, which is well known. there's a walgreens down the block. they expect it to be stolen throughout the day another one of my stores like that go to changed hours why? because of theft i know you're going to clamp down on this how do you do it >> well, what you said is so important. they expect for someone to steal it that's what has happened in the city we have been -- our expectations

to be able to have a business. that erosion must stop we were there before during the mid '80s when i was a rookie cop. i'm saying you're not walking into my stores stealing what you want, selling it on the sidewalk right in front of the store. you're not going to have homelessness in our subway in oy system we have to stop the normality of a city of being dysfunctional. >> that's how i feel. >> at the same time, you have an effort you began a week ago to try to move the homeless out of the subways. that's not an easy effort. they end up -- listen, we have a homeless crisis here we spend more than any city in the country by as far as but we don't seem to get a handle on homelessness and the mentally ill. isn't that a long-term problem >> it's a long-term problem. we are going to manage the expectations of people at the same time, there are steps in what we must do we created an environment where we said it's all right to use the subway system as housing

those days are over. we need to first get people off the subway system, sleeping, living there with all their belongings and get them the mental health services they need that is what we're doing i take my hat off to the mta, police, mental health employee officials. and we continue to evolve the plan to make sure we will be successful. >> you get somebody out of the subway and they are on the street >> it's an evolution now, we have to -- i really believe we have to re-examine some of our laws if we know a person is dangerous to themselves or others, we need to get them the care they need our lawyers don't allow us to do that we need to strengthen the law. it's imperative we no longer take the thought process that people should be allowed to be harmful to themselves and others i am going to do my job to make here they get the services they need. >> i have been a believe in

crypto you have been a believe in crypto can you further a cause where -- the united states, new york could be the leader. >> we must be the leader i took my first three paychecks in cryptocurrency. but the governor is doing something else that many people are missing. she is saying we should not be so difficult to open a crypto company here in the city, because right now no one wants to open a company here she said, let's make sure we have the right safeguards in place but that's attracting exciting businesses. i am a compassionate capitalist. i don't know what the heck happened to our country where the foundation of our existence is on capitalism we are working hard. we are opening strong businesses and one day open a corporation we allow people to embarrass us for the foundation of our exist. i am a compassionate capitalist and i am not going to apologize

for that >> the guy who helped make this a financial capital of the world buried not far from here, hamilton, right across the street there are a lot of fintech companies are here new companies that are challenging the existing structures in place and they are hiring a lot of people now, a lot may not be coming to the office what are you going to do to engender an environment that, hey, fintech company, be here in new york, it's the financial capital? >> number one, we should stop being so difficult do business in people don't want to do business in new york because of the layers of bureaucracy. my team is removing the culture and putting in place a culture of can just because we don't understand the business structure, you can't start off saying we never done that before those days are over. we are going to learn to evolve with the changing markets that we are facing. we should be excited about learning something new

we have a culture in our city that starts up with what we can't do we are now moving to a culture of what we can do, and that's an exciting time >> i wonder what you can do with the budget because i through the years was a student of the new york city budget 103 billion this year. now cut to 98 >> that's right. the state of florida has a $92 billion budget how new york city with half as many of the state of florida has a budget that's bigger >> normally, each year budgets go up. what happened with me? the budget went down i went to may agencies and said we are going to use taxpayers' dollars better we are going to stop being inefficient. we are going to find cost savings and produce a better product. that's what technology will help us to make sure that we can run a city better. if new york was a fortune 500 company, we would be bankrupt.

>> 310,000 people. >> and we were able to decrease manpower without laughs or furloughs. we looked at those vacancies and in a very smart way we said let's balance our number of employees so we make sure we can have the right number to run the city in an efficient way we should really kmebcommended n how we were able to show new york, we are going to run a financially efficient city, because these are taxpayers' dollars and i am going to protect them >> mr. mayor, i am a 76er fan but my wife is a die hard net fan. i am concerned i feel that the sixers have the run of the joint and unless kyrie irving is able to play at home, what will you do to make so he can play >> listen, i want kyrie on the court. i will do anything to get that ring, you know so badly i want it

but there is so much at stake here i spoke with the owner of the team we want to find a way to get kyrie on the court but this is a big issue. i can't have my city closed down again. and it would send a wrong message to vanex exception for one player when we are telling countless number of new york city employees, if you don't follow the rules, you won't be able to be employed. >> but the away teams have a considered advantage they could have unvaccinated, they are allowed to play. >> makes no sense. i don't know who thought of putting such a ridiculous rule in place of away teams can come and play when our teams from new york but these are the rules. and i have to follow the rules if i don't, i am going to open the door that is sending a wrong message to everyday employees. >> absolutely. >> businesses have their vaccine mandates city employees have their vaccine mandates

i have to follow the rules and trust me i want kyrie on the court. we are here right now opening our city because of vaccine mandates we can't close down again. i can't have my city close counsel again. >> mr. mayor, we appreciate your coming by. hope to see you again. >> look forward to it. >> mayor eric adams of new york city jim, turn you to quickly, tell us what's on "mad money." >> workday which is high multiple a friend of yours. and i've got -- hp is incredibly undervalued in terms of more than half -- less of the market multiple, eight times. let's see how the high ones and low ones do. i thought having the mayor on was great. >> great to have him with us when we come back, back to the markets and ukraine/russia war keep it here the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes,

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supersonic wifi only from us... xfinity. good monday morning. welcome to another hour. "squawk on the street. i'm david faber with morgan brennan. carl has the morning off

markets 30 minutes into trading, as we like to tell you, you can see we're off the lows with the dow the worst of the performers. the s&p and nasdaq only down, let's call it, one quarter of one percent. >> this last day of trading for february it's going to be a down month. we are 30 minutes moot trading session. here are three big movers we are watching shares of bp announcing it will sell its nearly 20% stake in russia state controlled oil producer following russia's invasion of ukraine. the ceo and former exec bob dudley are resigning from the board effective immediately. shares down 7% right now plus raytheon technology shares moving higher. defense stocks getting a boost following a pledge by eu countries to spend more on defense. also here in the u.s more on that a little bit later this hour. shares are up 2% warren buffett's berkshire hathaway, a record profit helped

by investments in apple. they also bought back a record $27 billion in stock just last year david. >> almost exactly how much it earned as well for the quarter morgan, thank you. let's move on now, of course, to the crisis in ukraine. officials from kyiv and moscow holding ceasefire talks today. this as russia's military assault on ukraine enters the fifth day. we are live in moscow. hadley >> hey there, david. just moments ago an exclusive interview i spoke with ukraine's foreign minister and he told me at least so far in the kfrlss between ukraine and russia, the russians haven't shown good faith to find a solution he told me when it comes to what happens next regarding russia's economy, he said, listen, when it comes to the russian ruble, every russian ruble has the mark of ukraine blood he called on exxon, toe talal other major businesses operating

in russia to cryptocurrenciesst cea a se immediately he said there should be sanctions on gas, oil, the only way for vladimir putin to be stopped. when i asked him if he feels as if they are winning this f conflict, he said ukraine will win. they have no other chase when you think about this, you have got to understand this is a man who has been calling since last december for the west to act now to prevent an invasion we saw that invasion already taking place he said he welcomed moves by bullpen and others to pull themselves out of the definitely's bargain with russia more needs to be done. the west cannot lose faith. >> as we see the negotiations play out right now, what does winning look like from a ukraine standpoint >> at the end of the day they want russia to withdraw completely withdrawing from the contested areas, the donbas, don-esque and

out of ukraine proper. they said to all russian soldiers that they would welcome them to throw down their arms and go home. for the united states, this has always been about russian soldiers going back to barracks. it seems as if the conversations still ongoing, but the foreign minister saying to me, guys, that he still doesn't see the russians being faithful or in good faith, if you will, in trying to find a solution. >> all right we'll continue to monitor as we hope one can be found sooner rather than later. thanks. staying with russia and ukraine, our steve leishman is looking an historic financial sanctions that are being leveled against russia and the potential effects in markets around the globe. steve. >> good morning. the u.s. treasury department this morning announcing historic sanctions on the russian central bank that prohibits u.s. persons trans a acting from the russian

central bank, russia's national wealth fund and finance ministry the u.s. is joined by all developed nations. t they target a 320 central bank for the first time a plunge in the ruble, now 98 rubles to buy a dollar, up from 83 on friday, 73 before the war began. in other words, the ruble is worth a bit more than a penny now. it promises higher inflation in russia, a curbing of goods imports and possibly recession in response the russian central bank raised interest rates to a crushing 20% from 9.5% it prohibited russians from purchasing foreign owned russian os sets and requires russian companies to sell 80% of their hard yourcurrency to the centra bank of the country has touted $630 billion reserves. while much now cannot be used to support ruble, some could be accessible 17% are in china which is not

signed on to restrictions as of yet. about 25 billion with the bank for international settlements in switzerland. russia may have access to that u.s. officials in the treasury and the fed most certainly watching u.s. markets for negative signs and thinking about the potential fall on impact to the u.s. economy. here are some of those impacts most people say that banking and -- banking and central bank experts i spoke with say there is limited western bank exposure there isample short-term dpole funding unlike other crises. the sanctions and the war means higher commodity prices and inflation at home and there could be possible counter sanctions from russia. there could be additional impacts from the next shoe to drop, the naming of additional russian banks barred from the swiss financial messaging system so far it seems like markets are down, but it's not disorderly. it doesn't appear to be systemic >> right okay so, yeah, steve, because leslie

was talking this morning and there was that credit suisse report, a concern about that very fact and whether the fed would have to come in and support money markets. none of that right now at all? >> yeah. david, you're as familiar or more than i am with lehman you don't have appear to have the leverage you are ample dollar funding in existing swap lines that exist around the world and you also have a variety of other capital levels that are in place this is not that right now, and also it's the limited amount russia, u.s., europe banking connections. somebody said if a banker went home thursday night or friday along any russian credit, they came in monday without a job >> yeah. that's probably a true statement. steve, thank you

steve leishman joining us is charles schwab, lose an saunders and head of integrated equity ernesto ramos. just jumping off from steve there, the macro implications you see and what they are, how long they'll last from what's going on in ukraine, what are they >> i think we're clearly still at headline risk levels for the equity market on an intraday basis, pre-open basis. i think the settling in relative to where we were when futures opened last night may be because of negotiations happening and there is some hope that there is some sort of off-ramp here but nobody has any sense of that in terms of fed policy which has been the more important macro medium term driver there is a bit of chatter whether maybe they don't do anything at march meeting. very little risk that they do 50 basis points

but these days both in terms of the russia/ukraine situation and data as it's coming in and perceptions thereof, two weeks is a bit of a lifetime so i think because the fed has said they will be teammate dependent they are focused on sustainability more than market volatility i think it's too soon to judge wha fed is going to do march 15th. >> ernesto, you're talking about, listen, regardless from what happens on the ground, we are in what may be considered a new cold war and so my question is what are the implications if in fact that is the case? >> well, there is clearly some long-term implications the short-term is hard to predict. but the long-term implications are several. one, for example, is increased defense spend big europe and the u.s. just to protect what we currently have in nato, and

because defense has been underinvested, especially by europe for quite a while another is energy prices will be stronger for longer. that's pretty clear. and so that may not be a very long-term effect but that's clearly now the case. financial friction and costs of goods sold as all commodity prices seem to have gone higher, that will create earnings difficulties of course, it's a company by company situation and our analysts are busily trying to quantify the aspects -- all the aspects of this transmission of rising costs into their stocks and we take that into account, we are building our portfolios so those are just some examples. another one, for example, is more investment in renewables and perhaps acceleration of

reopening plants in europe as europe tries to reduce their dependency on fossil fuels from russia >> anahow does that play out fr earnings earnings revisions are coming down and certainly morgan stanley this morning put out a note saying that earnings growth assumptions are starting to look too high due to a shortfall in expected demand and/or profitability. earnings has been the leg in the stool, if you will, that has kind of held up amid all of these macro uncertainties. but how does that now get affected as we have these discussions around geopolitics and the fed and inflation? >> well, i think the negative revisions trend is an important one. we have to remember when it comes to the relationship between the stock market and economic earnings data that better or worse matters monday than good or bad when you look we are in strong earnings for the fourth quarter whether it was the beat rate, percent by which companies beat and the negative positive

revisions ratio we are seeing a deceleration right now and that is one of the reasons why a factor like positive earnings revisions has stood out in terms of leadership among factors. so value-oriented lower case b, quality oriented and then that positive earnings revisions factor it's an environment getting more squeezed the factors that have been consistent outperformers amid this volatility affect the style index level have been those quality oriented factors inclusive of positive earnings revisions because we just have a t-shirt of them right now as we head into what i think is going to be a much tougher first quarter for earnings. >> ernesto, i will put the same question to you, especially as we have many investors who are not day traders but are watching the crazy market moves we've seen as of late wondering what they should be doing and how year is going to end.

>> they should be sticking the long-term plans. it's hard to predict the actual outcomes in the short-term of what is going on, especially with high volatility impact situations like this so stick to the long-term plan rely on professional managers to manage your funds. we think there is an opportunity here for active stock pickers that have been here quite a while, even before the russia crisis it certainly accelerates the opportunities for identifying risks and mitigating them as well as identifying opportunities and capitalizing on those that's what we do here in our portfolio. so we recommend investors do not react to these events and just stay the course according to their long-term plans. >> all right ernesto, liz anne, thank you both. >> thank you. as we head to break, the top gainers on the s&p right now solar edge, enphase, occidental

and defense names like northrop and lockheed basically, energy, clean tech, new energy, and defense leading the charge in what is another down day for the s&p do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel

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get the new samsung galaxy s22 series on comcast business mobile and for a limited time save up to $750 on a new samsung device with eligible trade-in. welcome back to "squawk on the street." we just mentioned defense spoks outperforming the suspect today. we keeping an eye on ishares,

aerospace and defense etf, the ita as well, up 2% now up over 8%, 10%, it looks like, since the start of the year. 8% for february. on track for the best month since last march defense stocks like lockheed martin, raytheon, general dynamics and northrop grumman trading at fresh highs amid the russia/ukraine conflict. market overweight of what analysts viewto be a upgrading multi-year cycle germany over the weekend signaling an historic shift committing nearly $113 billion to modernize its military and boost defense spending to 2% of gdp by 2024. that's a nato commitment it failed to meet until now cowan thinks that could lead to more lockheed martin f-35 purchases. the u.s. upping its spend as the biden administration requests 6.4 bld in additional ukraine

funding, 3.5 from the pentagon 350 million in weapons to ukraine forces, including mor anti-tank missiles, raytheon stupgers missiles. slovakia is getting a raytheon patriot made missile defense system sister germany and poland is looking to boy $6 billion of general dynamics abrams tanks. this is a situation that is likely to extend for years because we also saw just in the last couple of days northrop grumman getting awarded a deep space radar which is a project that's going to take a handful of years to field. but as you do see an increasing number of top u.s. space and defense officials saying that space could be an area at risk in the midst of this conflict right now as it's playing out on the ground, you are going to see more spend potentially there, too. >> wow morgan, you always say something

that i have never heard. deep space radar. >> to track everything that's moving spacecraft and otherwise that's moving in deep space. >> understood. all right. right here back on earth, as we head to break, chevron and renewable energy group, they announced a tale this morning to acquire renewable energy group trying to take their overall production of what they call renewable fuels to about 100,000 barrels a day by 2030. by the way,to put that in perspective, exxon's goal for 230, 200,000 barrels a day but still percentage-wise, a small percent of their overall production fror either one. we will talk to hevron's ceo i a first on cnbc interview. that will be in the 9:00 a.m. hour right here at post 9. we'll be right back.

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welcome back just this morning the u.s. department of the treasury's

office of foreign asset controlled prohibiting the u.s. with transactions are with the russian federation bank and ministry of finance. marilyn smith, deans professor of finance, maiichael thank you four being us with a lot of focus on s.w.i.f.t. and what selected russian banks being removed from this messaging system could mean not only for russia but the prooder financial system globally. your take on it? >> this is the right move. i would have liked to have seen all of the russian banks be on the list i understand we need to facilitate purchases of natural gas from russia. the quickest that we can move to put all of the russian banks on the list of removal from s.w.i.f.

s.w.i.f.t. the more difficult we will make it to russia in response to these activities. >> we have had financial institutions, jpmorgan and citigroup warn this could have broad fall out that would harm the global economy, undermine the purpose. penalties. we are heard the argument in incentivize the alternative means to s.w.i.f.t how real are those risks versus this could inflict on russia >> s.w.i.f.t. is not the only system the chinese have been setting up a system for ae of the russian banks from the s.w.i.f.t. network in 2014. it didn't end up taking place. but it's been understood for a while this is a potential tool and so it has potentially incentivize the creation of an alternative payment system for international transactions and this may accelerate it, but it's the right thing for us do to try to put pressure on russian economy and russian government to back off on its actions in

ukraine. those threats are potentially real but i think this the chinese were looking to create an alternative payment system anyways. while this may accelerate russia's usage of it, i think the russians were largely going to move that direction anyways it's something that we were going to observe over tomb time >> so i guess that raises the question then about china and china's role in all of this. not to mention the fact that there is a lot of talk about cryptocurrencies and the roles those are playing, those types ever assets are playing where russia is concerned in the midst of this. to we know just how prepared russia was for this moment >> we don't. and that's one of the things that i have been looking for i know when steve was on earlier today he was talking about the location of russian reserves i believe those are from the middle of last year. would be interesting to find out how much they have moved the last few months. i ma'am inthat vladimir putin

and his ministry has known they were preparing for this and he has been moving reserves around to reduce the impact of the potential moves by western nation i don't know how much the reserves have moved around and how much they have prepared to be cut off from some of the global financial system in anticipation of this >> what is your then in terms of how debilltating this will be for russia, russian businesses and its economy? >> the linchpin on all of this is china so how much are the chinese going to facilitate alternative transactions for moving money abroad how much have they allowed them to park their reserves in china and still be russia's intermediary in the financial system i think the biggest move that the u.s. treasury and the u.s. government can make right now is to see how much they can bring china onboard to help enforce this because, otherwise, i do

fear that russia is going to be able to get around a fair number of these activities that we have tried to implement it's the right thing for us to do, but the lynch pin here is china. >> interesting we are going to have to watch this thanks for joining us. >> thanks for having me. a quick note as we head to break. later on "techcheck," qualcom's ceo. he will be live from the mobile world congress barcelona that is at 11:30 a.m. eastern. we'll be right back on "sqwk t see aerhis.

welcome back i'm rahel solomon. here is your cnbc news update at this hour. russian and ukrainian officials have begun talks expectations are low for a teal. ukraine is represented by the defense minister and russia's delegation led by putin's

advisor on culture and unlikely envoy for ending the invasion. ukraine is not ready to surrender orca pitch late. russian military units flow into eastern ukraine as determined ukrainian forces have slowed russia's advances elsewhere in the country. the united nations estimates 500,000 refugees have fled ukraine to poland. they offered food and supplies as they wait for busses to thak them to refugee camps. and neutral switzerland is adapting the eu sanctions against russia, including asset freezes. the swiss president calls russia's attack on ukraine intolerable on moral and political grounds. you are now up to date back to you. >> thank you. well, we are about an hour into trading right now a check on the markets also head over to bob, who will give us more on what we're seeing you see regulatory halts on

russian stocks this morning as well. >> that's a very interesting development. i want to show you sectors that are moving here. energy stocks are up, but there is a little bit of a problem here remember we heard on friday from occidental, for example, eog, saying while they are making huge amounts of money, they are returning cash to shareholders, they are not going to be dramatically increasing production levels and that's a big question these stocks are up 30% this year how much further can you push these stocks when you are not going to have much higher production levels? you have to make an assumption that oil prices are going to go dramatically higher and people are wondering how much higher oil prices can go. this is an issue the limited production they are not dramatically increasing that. the other big issue for the market is financial stocks which are going essentially up and down along with the ten-year and we've seen this as a problem for the dow for a while now. jpmorgan, travelers, visa weighing on the dow today. citigroup was just $70 a short while ago, $60 to $70

essentially back to $60 in less than a month this is a big stock to move around 15% in less than a month just a lot of volatility in the underlying financial sector and of course that's a re, very big sector other than the tech sector elsewhere, the reopening stocks, pity the reopening stocks. they literally get kicked around by ping-pong balls almost on a weekly basis stocks now swinging 20% ranges over a week or two-week periods. but still no clear bottom in that right now finally, what david was talking about. interesting development. overnight the nyse and the nasdaq halted trading in their russian listed stocks that trade on the nasdaq and the nyse these are not de-listings. they are regulatory halts so theydon't trade. the underlining efts, there are several russian etfs, two in particular that trade that are continuing to trade. now, how do you actually price

an eft when the underlying stocks are not trading because the russian stock market is closed on which they are based make a guess, folks. they have been doing in for a long time with exchange traded funds. this happened many times greece, for example, closed their stock market for several weeks a few years ago and yet the freak etfs that trade here continued to trade traders estimated what they thought the underlying stocks would be when greece reopened the stocks traded in line with where the exchange trading funds were trading. it's a very interesting development. now the etfs are widely traded, the etf tail wags the dog. it's the stocks that should be segt the prices. what happens when the stock exchange in moscow is closed how it do you set prices on an etf that trades in the united states and the answer is you make educated guesses it turns out those guesses can be with very accurate overall. keep an eye on that.

we'll see when the russian stock market opens obviously, these etfs are trading at a discount because we don't know what the value of the underlying stocks are. but the market trades. back to you. >> it is a fascinating dynamic of course, those etfs are done double-digit percentages today. over to kayla. live from the white house as the biden administration announced additional sanctions against russia's central bank. kayla. >> morgan, today the u.s. treasury unleash add fun u punishing wave of new sanctions. the u.s. banning all american companies and individuals from transacting with and processing dollars for russia's central bank its ministry of finance and the national investment and wealth fund senior administration officials saying they have been in touch with global regulators for months to assess any systemic risk which they don't see at this time. china will enforce the sanctions even if beijing is unlikely to

match those bance. president putin convened the kremlin's top economic officials i have have acknowledged the impact situation in increasingly isolating the russian economy and providing putin with few options to shore it up according to reports, putin in a short televised part of that meeting accused the united states of a web of lies. in ukraine there is a possibility that bottom bart slow in a call earlier today, president putin told france's president he would hauled bombing of civilians infrastructure and residences as caravans defenses are fortified by stinger missiles from the u.s. and defense funding from the eu ceasefire talks are taking place along the belarusian border. no word what could come out of those talks. president biden earlier today did not stop to talk to reporters after arriving at the white house from a weekend in delaware we expect to hear publicly from the pentagon and the white house later this afternoon of course, a lot could happen

before then, david back to you. >> thank you. well, joining us now with over40 years of diplomatic experience, former ambassador to russia thomas pekka rinne, former undersaek e secretary of state for political affairs. ambassador, you know, putin, even as little as a week ago would have been hard to imagine he would be in as difficult position as he may be in now with the offensive having potentially stalled, his country under significant economic pressure what is your sense as to what options putin has in front of him and/or what it is he may choose to do >> the situation is more mixed we are only five days into the fighting the russians are, obviously, in a position to use their heavy preponderance of force here in a more drastic and, indeed, more brutal way and putin seems to be tilted in that direction

so i would be cautious about that the threats about nuclear in my view need to be heeded obviously, one wants to be very cautious and not move in the direction that he hints, but at the same time i think it is useful to take the positive news that you have relayed and see how it can be converted by the caravans in their discussions with the russians into a ceasefire and some kind of workout that's what the pressure is for, and, hopefully, that can be done my sense is it will take time before that could be done, and that we should remain cautious if, hopefully, a little bit optimistic about that happening. but i would not be certain russia and the russian people have undergone extreme hardships in the historical past, and russian pride in their country and in their achievements is such that many of them are

willing to do it and the system will touch on those who feel differently in ways that an authoritarian system can be used to influence both polling data and people's attitudes so it'sa complex and difficult process and we need, obviously, to have patience, endurance, and commitment to seeing how and in what way we can increase leverage and turn that leverage into creative solutions if we possibly can >> what is your sense as to putin's mental state, for lack of a better term there has been a lot of reporting at least about the fact he has been in a covid bunker for the last two years, doesn't speak to a lot of people directly, doesn't take advice the same way he might have is it more of the same and a lot is being made of it that it shouldn't be >> i think it is more severe i think the notion of being cut off for a long time, the notion

that he doesn't like criticism you saw him in his public confrontation with the head of his intelligence service three days ago on russian television where he browbeat the man in supporting him when the man, obviously, had reservations. and i think at the same time overoptimism about what he can achieve militarily and, indeed, a very bad perception of the west, will i think is now beginning to reverse itself that the west is weak, that the u.s. is in a transition to non-entity status, that the u.s. has no guts and will not back itself up, and that the rest of the world will leave the u.s. in hoards if the u.s. gets tough and tight. all of which have proved to be wrong. and it will take a while for this to filter through and to shake down, but it's one of the things that leads me to believe that we need to keep engaged, we need to keep on, we need to keep

the pressure up, but we need to do a much better job than we have with cutting off his profits from energy on the one hand, and, secondly, using the negotiations on a consistent and committed basis, making clear our initial positions are strong, firm, committed, and we're ready to go on them. >> ambassador pickering, as we're having this conversation, the markets are bouncing off the lows of the session, nasdaq just turning positive i want to go back to the nuclear piece of the puzzle because, obviously, putin put nuclear forces on high alert over the weekend. but in addition to that you see the situation playing out in belarus as well, which is essentially taken over by russia in recent weeks for better or worse. they renounced their non-nuclear status as well, meaning you could see them begin to host

russian nuclear installations, too. how real is that threat here and what does that mean in terms of crescendoing risks and geopolitical tensions to the region longer term even if russia were to pull troops out of ukraine >> it's not trivial and it belies rational thinking we have always counted in the end on both russian leaders and american leaders to appreciate the notion that stumbling into a nuclear conflict or getting into a nuclear conflict by accident or misperception would be a move that should be guarded against president kennedy in the middle of the cuban missile crisis made it very clear that the process was moving in the direction of nuclear catastrophe and should not be allowed to go that was persuasive enough to swing khrushchev around. and i think it's important that we think about that not as a

lesson in what to do so much as a lesson in how to exercise extreme care not to get into a position where nuclear use is ever contemplated as a real solution on the one hand, and secondly, where active use of military force in direct confrontation between the two of us does not drive us towards that particular outcome. >> all right not making me feel much better, ambassador, but always appreciate your time thank you. >> the truth is hard >> yes, it often is. ambassador thomas pickering. >> thank you. >> more conversations about deterrence afoot tomorrow morning don't miss former treasury secretary jack lew talking everything from the market volatility to the sanctions on russia in the 10:00 a.m. hour. meantime, the biggest gainers on the nasdaq 100 as we see that

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welcome back to "squawk on the street." crude oil and natural gas cries spiking as fighting continues between russia and ukraine global spot suezmax averages doubling last week for more, let's bring in nordic american tankers founder and ceo. thanks for being with us today i want to start with the spike we are seeing in the energy markets right now, how sustained do you think it could potentially be and what it will mean for your business. >> let me tell you that i'm sitting here now in norway and i have two flags from ukraine and two flags from america behind my back

the energy market is destructive. there are dislocations we have been in the vortex many times carrying oil from the port of -- now we have left that. but the thing is that the energy markets and the tanker business in which we are, they are very sensitive to changes and earn uncertainty, and uncertainty often ironically may be good for tanker market. but we are now up against a very serious situation in molinvolvi ukraine and involving russia, and we have supported america always, which we continue to do, and we now support ukraine >> so to your point, the baltic dirty tanker index has been

spiking, up another 27% today, up something like 65% over just the past week. speaking to that volatility we are seeing in the market right now, are you in the midst of sanctions, which i realize the west has been very careful around the sanctions its enacted -- not enacted where the energy market is concerned are you nonetheless getting phone calls from customers looking to change shipments and reroute and the like >> we have the biggest oil companies in the world, essex on mobile, british petroleum and others, and we have take an clear stance we support ukraine and we support america. these are our two main constituencies and we are continuing if you lhere on the screen you see the ukrainian flag and you see the american flag. and we are very proud of america

and in this locations, we always rely on america. >> is what does that mean for yr business and the way you are changing when you are doing something when you say that? >> we did in the past load in russia but we never did invest in russia itself because we didn't wish to be in russia but we carried oil from the port in the baltic sea. we don't do that anymore we also carry oil via the strait and now we are very careful as well we don't wish to deal with others than with the americans and with ukraine and we, you know, it is quite strange and ironic when there are uncertainty in

the business, then people come to us and ask us to support them and we -- i wouldn't say that this is an advantage for us, but i would say that our business, customers, and our business is in a way supported by our big customers because they canrely on us all the time and that's why we are listed on wall street. and we have been listed on wall street since the mid '90s. and everything about our company is completely transparent. and that transparency is a big advantage for us, in particular, at this time and that's why, you know, i wouldn't say it so explicitly that we are benefitting from this on the other hand, i would say

that we always stand by our word and the big oil companies they like to do business with us simply because they rely on us. >> thank you for joining us today. >> big pleasure and thank you for taking your time thank you. well, during february, which is ending, we've been celebrating black history and featuring some of our cnbc contributors here is cnbc contributor with how he believes our country can empower the black community financially. >> one thing our country can do to empower the black community financially is access. we give access has been the biggest differentiator to reach my personal and professional goals. they allow he to have confidence and pass down what i learned to others in the black community. if we continue on this path it will lead to a lot of success

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of the day so far. near session highs we're still lower, though, but that consumer staples sector remains among the worst performers as you can see right there. the third worst performer right now. we want to highlight three of those stocks in the staples sector in particular pepsico, fill ip morris international and mondalese. phillip morris comes in at the number one spot with approximately 8% revenue exposure to that area and region that stock is the worst performer in the sector so far over the past week, down nearly 9% so watch the staple sector and watch some of those revenue exposures in the s&p 500 there is more "squawk on the street" ahead. stay with us keep it right here ♪

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matching your job description. visit indeed.com/hire as russia continues its invasion, spacex is helping to provide ukraine with internet. a ukraine government official asked elon musk to provide the country with starlink. the billionaire responded that starlink is up and running

providing alternative, secure connection as the country faces connectivity issues. now speaking of those connectivity issues, another satellite broad band provider, via sat reported probing a suspected cyberattack, what is believed to be a distributed denial of service attack after the internet service went down in ukraine with the outage spreading to other countries in europe in recent days. now while satellite technology was thought of extremely expensive to deploy, launching small satellites into low-earth orbit, is faster, cheaper, more economical for a variety of space-based services it's increasingly in focus in the geopolitical landscape david? >> all right i love it. always learn things in that podcast and during your reports as well, morgan. >> thanks.

before we get out of here, i want to quickly check the markets because we have had a significant rebound. s&p is still down less than half a percent. the nasdaq and what's going on there. many names in the green including apple and metta and alphabet as well should point out gold has moderated its gains and bitcoin actually up some 4%. that will do it for us on "squawk on the street. "techcheck" starts now ♪ ♪ good monday morning and welcome to "techcheck" i'm deirdre bosa with jon fortt, carl is off today. global markets on the move as investors weigh the impact of increased sanctions, heightened volatility and exclusion of russia's biggest banks from s.w.i.f.t. from financials to crypto, we're breaking down the impact plus, russia and