happy to come on again when ever necessary. let's look at the futures. we started the morning with the dow down by more than 500 points right now down by 140 points s&p futures off by 14. the nasdaq down by 50. that does it for us today. >> good job, becky. >> joe and i will be right back tomorrow. >> good job, down 140. >> we'll take that as a wind we'll see you tomorrow right now it's time for "squawk on the street. ♪ good monday morning. welcome to "squawk on the street" i'm carl quintanilla with david and morgan brennan. jim cramer has the morning off day 12 of the russia invasion of ukraine. futures are off the morning lows as the german chancellor knocks down the possibility of a ban on russian energy and the market looks for some potential off ramps as a third round of talks begins in belarus. oil pulled back, still near 13-year highs as the u.s. and european allies explore banning

imports of russian oil. plus, the russia exposure for so many u.s.-based companies trying to figure out what to do, including those that have a lot of differing units there, like mcdonald's, starbucks, yum and others facing those growing pressures to suspend operations. and shares of bed, bath and beyond surging chewy founder ryan cohen taking a big stake in calling for changes. we're seeing a big move in that stock this morning carl guys, we'll start with the markets and develops around russia and ukraine another weekend of very difficult headlines, david as far as energy goes, we did get to 130 we are exploring the full out ban of russian energy here, but the germans really can't afford to do that. >> no. so much of their energy use is based on the import from russia, not just oil but as we pointed out so many times, natural gas such an important of their electricity generation in that country particularly over the last year or two as they moved

toward greener agenda and potentially decommissioning a number of nuclear plant. that might not be happening at quite the rate -- they may be using more coal than they originally intended as well. so that makes it difficult you know, and then morgan, the other question is, okay, if we do -- and in this country obviously our imports of russian oil are quite small. although there are some even though we don't necessarily need to be because we can be fully energy independent given what we produce everyday, but the question then becomes, well, if they really are cut off from many markets, would china and india then be there for them and therefore would it really make that big a difference hard to say. but certainly this conversation continues. we've heard from secretary of state blinken over the weekend as well saying similar things in terms of an effort, at least, being talked about and we don't know where we'll end up >> we don't know where it will end up, just is the case in general with this broader conflict much less likely to your point, david, you see europe actually

cut off those energy supplies from russia. that being said, u.s., this does seem to based on reports be a very active conversation, whether the u.s. goes it alone or whether it does it with its allies is sort of key to the situation here analysts estimate about 400,000 barrels per day of russian oil coming into the u.s. it's worth noting that not all oil is created equal and a lot of it is tied to the type of infrastructure you have in place to refine it into some of those final products. those final energy products. we'll see how that shift takes place. it's pretty eye opening to see u.s. officials going to venezuela to see if they can strike a deal to get more oil on to the global market right now obviously we have all the question marks around this iran nuclear deal, too, and what that would do to oil supplies but to your point, even if you were to see just a shift in terms of where current supplies are going, be it like china and india, in the case of russia, you're still talking about transportation costs you're talking about the time and the gap and time that's

associated with some of those supply chain shifts, if you will also worth noting, carl, it's not just oil and gas i mean, we're seeing refined products at record highs but also look at the move that nickel made overnight. unprecedented move, up something like 40% in the past 24 hours. you've got aluminum at record highs, copper, you've got wheat, all these different commodities that all affect the broader global inflation conversation and thus the global economic growth conversation. >> yep it's been difficult, incredible story in the journal this morning about boeing and titanium and how they had tied some of their supply chain to some russian interests calhoun back in january, david, said if the global situation doesn't deteriorate, we should be fine. that didn't happen we're looking to see how boeing adjusts their long-term forecast on airplane production. >> yeah. titanium, right? that's a key component, obviously. and russia is one of the main,

if not the main, source for it listen, there'sso many different questions that businesses are asking. and this has been picking up over this weekend. i know so many different large corporations that had been trying to determine what they do with their russian businesses. for some it's easy because they really don't have a great presence there or any presence at all and it's easy to simply say, we're done with the russian market and they are getting pressure from their employees, the same way we've seen pressure built around other things around the broader esg banner but, you know, morgan, when you are a company with a lot of employees in russia, it's not as easy to make that decision and it may be counterproductive in some way because you're throwing a lot of people out of a job, which is not necessarily something you want to be doing as well. but i can guarantee you, having had many conversations as well, that so many of these businesses are simply trying to figure it

out right now, what do we do in russia how do we go about doing it? can we really pull out, if we have a significant presence there or what can we do around it that will at least satisfy some of the asks that we're getting from our own employee base >> it's such a tricky, tight rope there's the humanitarian aspectcome is what you see playing out with social media and tech companies as well, right? maybe they are tamping down some of those organizations are tamping down on their sites where russia linked news organizations are concerned, but how broad do you get with bans especially when you're talking about a russian population that we know, although some of that information is limited, too, has been thousands, at least, have been protesting being tamped down against this conflict in ukraine as well. so, how do you go after the country which is really essentially being run by one man and not affect a broader population that maybe is not in

agree yans with that particular policy and how it's playing out in the country, too. it's a very, very tricky thing and to your point the supply chains even for the companies that are not directly involved in russia, the fact that you're going to see those ripple effects in the supply chains really throughout the world and throughout the globe. boeing is a really good example because you can talk about commercial aerospace, which many of the defense contractors also have commercial aerospace businesses and vice versa, so those supply chains might be tied to a country like russia. but then you have this national defense strategy that basically says you've got a source from places other than russia for your defense portfolio, but you have to think that there's going to be impacts and ripple effects throughout broader portfolios for a company like boeing? >> yeah. it's funny you talk about the unintended consequences of some of these corporate decisions. shell got a hard time on friday for finally being a bidder for some russian oil after lots of tankers were not being loaded. no one wanted to touch it.

the threat of future sanctions but they point out the energy industry cannot assure continued provision of essential products to people across europe over the weeks ahead. so they finally -- found a price they're going to give some of that money to humanitarian interests. the other one is axp, visa, mastercard over the weekend. >> we. with times has a piece out saying ironically the early victims of that pullout are going to be people who were trying to get out of russia because they oppose the war whom putin wanted out of the country any way. >> now will no longer be able to use their credit cards. >> or bank accounts. >> by the way, china steps in. >> right it gets complicated a bit as well, morgan, if you're in russia, you may not be able to use your mastercard or visa unless it's on a different network than their network in which case you may be able to. not that it was an insignificant decision for american express, mastercard or visa it's an important decision it is a blow without a doubt to the russian economy. but, to carl's point, it may

also be having unintended consequences for those who have left the country or are trying to and want to use their credit cards to actually pay for things as you can imagine, they may have left in a hurry as well. >> yeah, absolutely. this just goes back to sort of the shades of gray that a conflict like this in a very connected world and globalized world really kind of highlights here and, as i just mentioned, i mean, you have those american firms pulling out. and you have chinese firms that are stepping in its place which is a dynamic we have been talking about in theory where tech is concerned for a number of years this has been the argument of a mark zuckerberg with facebook and meta for a number of years too. everybody rolled their eyes. but here is where it could potentially play out in real life and you can see what that means in terms of, i guess, the most valuable of commodities on the world stage, information, carl >> meanwhile, carl, we should point out the market well off its lows futures, i should say, well off their lows right now talking to a number of people this morning, of course, the oil

market is as we started with will be the most important tell perhaps today overall. and then a lot of questions about the oligarchs, too, is what i keep getting. do they have margin loans? what's that going to mean? are they pulling out of private equity funds we're talking about multi, multibillionaires, perhaps hundreds of billions of zlars for these oligarchs as well. another story to keep in mind. >> ubs has numbers on their exposure to some of the high net worth individuals. we're watching oil policy, potential congressional aid, whether a third player could broker more advanced talks let's get to kaylee tau shi were the latest this morning. >> good morning, carl. let's bring you up to speed what's happening in ukraine for the last 48 hours. violence has been erupting across the country as civilians try to leave despite planned cease fires that were supposed to allow safe passage. shellings in the port city of m mar

mariupol north of kyiv a family killed while trying to leave. u.s. officials say they now seek credible reports of intentional attacks on civilians, which would be a war crime meanwhile, pressure on western leaders to ban russian oil is growing with coordinated action possible as soon as this week, according to a uk official, although carl, you did just mention the comments from germany's chancellor the u.s. feared such a ban would allow president putin to sell less oil at higher prices to china and india, it now appears there could be support for such a move >> we are now in very active discussions with our european partners about banning the import of russian oil to our countries while, of course, at the same time, maintaining a steady global supply of oil. we are looking, again as we speak, in coordination with allies and partners at this prospect of banning oil. >> former deputy energy minister tells me russia is now eyeing a

third nuclear site in the south of ukraine to capture and use as leverage after already taking the chernobyl site and zaporizhzhia site. a third round of cease fire talks between russia and ukraine set to begin at this hour, according to a top adviser to ukraine's president. so far russia has not delivered on anything agreed in the prior two rounds guys >> incredibly unfortunate or perhaps not that surprising. the seizure of nuclear assets is particularly alarming. just to go back to the headlines we're getting this morning around a potential oil ban, is there possibility, is there growing likelihood that even in europe or germany was not to go forward with such a ban at this point in time that the u.s. could do it alone? >> the u.s. certainly could do it alone, but it wouldn't have as much bang for its buck if it were to do that. the discussions are still on going for some sort of coordinated move

there was some reports out of japan overnight that japan might join in to an oil embargo there as well. so even in germany is out of the equation, which according to the chancellor's comments this morning, it appears that they are backing away from this there is still this idea that it would need to be done in concert with many countries to have the maximum impact there is a secure call happening at 10:30 this morning between president biden and the leaders of uk, france and germany. this is going to be top billing on that call to see how we proceed from here. there are also several other items underconsideration in congress, whether it's banning russia's status as most favored nation for trading status or revoking its membership in the world trade organization all of that is on the table. it just depends at this point in the 11th hour which countries sign on to it. carl >> appreciate that we'll come back to you a lot today. watching some of the developments sort of brings to mind, david, something jim actually tweeted earlier this morning in terms of how russia

is going to fund the longer-term operations of this invasion. he writes at what point will putin have to borrow to finance the war? and no one buys his bonds. that will be an interesting, can you asphyxiate their revenue flow once he has to start borrowing and financing this thing. >> it's a question again, it brings, though, into it the idea of china and to what extent they're going to play a supportive role for russia or are they going to become more neutral. i think that is very important here but, yeah, listen, their finances are reliant to a large extent as we said so many times the russian economy is obviously on sales of oil and natural gas, period and so, you don't sell as much and you're not going to have as much money on hand they've already had -- listen, they prepared reserves for this very potential for some time over some $650 billion but they have been unable to use much of that as well given the sanctions and the broad sanctions that have taken place

♪ >> yeah. it's like the famous words of general petraeus, two decades ago, tell me how this ends i think what's implied in that question from jim cramer is how long is this war going to stretch on, which i think is what investors and the whole world is trying to wrap their head around. as long as europe is buying gas from russia, i would imagine there's a revenue flow that potentially can continue the conflict we'll have to see. when we return, the russia/ukraine conflict is in focus. shares of lockheed martin and northrop grumman are up 20% in the past two weeks we'll look at what's ahead for defense stocks "squawk on the street" will be right back zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year.

that's decision tech. only from fidelity.

xfinity mobile runs on america's most reliable 5g network, but for up to half the price of verizon, so you have more money for more stuff. this phone? fewer groceries. this phone? more groceries! this phone? fewer concert tickets. this phone? more concert tickets. and not just for my shows. switch to xfinity mobile for half the price of verizon. new and existing customers get amazing value with our everyday pricing. switch today.

welcome back to "squawk on the street." defense stocks continue to trade high they are morning as conflict persists between russia and ukraine. our next guest saying he sees this sector continuing to benefit for some time to come and keeping an eye on mid term elections and pending u.s. defense spending budget for 2023 which is expected later this month. joining us now to discuss wells fargo senior equity analyst matthew acres. thank you for being on with us today. >> thank you for having me. >> these were stocks, defense stocks were essentially dead money for the better part of the year, almost year and a half, from really the presidential election of fall of 2020 to a couple months ago this conflict reignited the trade here the big moves we have seen -- your take on valuations and how much higher these could trade.

>> yeah, sure. defense stocks tend to be boring and all of a sudden they're interesting. look, i think in terms of valuation, the stocks they're at a little bit of a discount to the market right now that's pretty close to where they had been on average historically despite the fact we have this big multiple expansion here over the last few months there's still potentially room for them to move higher here. >> okay. so what specifically do you like in the group i ask that as we have seen 17,000 anti- tank missiles, javelin missiles deployed by the u.s. and allies just in the past six days i imagine there's going to be a very near-term bump in terms of restocking for some of these weapons getting sent immediately. but then there's also the longer term programs we have been hearing about. >> yeah, sure. so, on the funding, i guess in terms of the dollar amount of the stuff we have sent over to ukraine so far, you know, it's a lot of weapons, but in the context of call it $750 billion defense budget, it's really not a huge number. so, i think the bigger question

will be what happens to overall u.s. defense spending from here. and i think the clear direction is that it's going to go higher, right? i think we're in mid term elections this year. nobody is going to stand up and say we shouldn't spend on defense. the direction is clearly for it to go higher you know, in terms of the stocks, i think two that were overweight, general dynamics, where you get not only the defense budget benefit but then also a strong business growth recovery from here and then l3harris, which you know is a little cheaper, sort of on pension adjusted earnings. and i think it's pretty well situated you're more platform agnostic you don't need to take a bet on which platform we're going to spend more on, they're supplier across the dod. >> in terms of defense spending here and the u.s. and broad among our allies, the announcement by germany last week cannot be understated how big a deal it was for that country to come out and say it

was going to double its budget over the next couple of years. curious, though, about whether defense spending here in the u.s. can keep pace with inflation, because we doe know the pentagon -- we're on a contin continuing resolution, we know the pentagon is burning through billions a month just maintaining the status quo >> yeah. that's exactly right and look, i think that we're going to get sort of inflation plus growth here you know, i think it will be a positive just to see congress sort of move and come to an agreement even on the fiscal '22 bud budget, which as you mentioned, we haven't passed, we're under continuing resolution. these companies will benefit from having the certainty of having that budget pass and in addition to that, i think we're going to get finally a budget with sort of long-term spending forecast that we really have been in the dark here the last couple years we're going to get a new national defense strategy. so we're going to get just a lot

more clarity on where defense spending goes from here. >> finally quickly, we're talking about boeing a little bit earlier in the show. when you see these companies, these aerospace company that have a defense portfolio and commercial aerospace and aviation portfolio and maybe halt an example of boeing on titanium coming out of russia, how does that affect the company? is that something you steer clear of in terms of investing in the sector right now? >> yeah. it's something to be concerned about. i think boeing provides a lot of the titanium for supply chain. i think that they have a pretty good stockpile since 2014 invasion of crimea, they have been a lot more conservative about making sure they have second sources, making sure that they have enough titanium so i think that they're set for a little while if this situation in the stoppage of titanium were to drag out that will eventually become more of a concern you know, i think on the defense side, you're going to be a little more insulated there. something called the barry

amendment that basically the u.s. defense firms are going to buy from u.s. providers to the extent that that's possible. so, on the defense side the risk of any disruption there should be a lot lower >> okay. matthew akers, thank you for joining us. >> thank you can't take your eye off some of the corporate news this morning. you have fresh guidance out of uber today we'll talk about oxy and apple event tomorrow, bed bath is up 100% almost and futures trying to go green here we're back in a montme ♪♪ ♪♪

growing up in a little red house, on the edge of a forest in norway, there were three things my family encouraged: kindness, honesty and hard work. over time, i've come to add a fourth: be curious. be curious about the world around us, and then go. go with an open heart, and you will find inspiration anew. viking. exploring the world in comfort. ♪ markets going to have all its attention pinned to these talks in belarus as a third round begins today nasdaq futures briefly went green, but obviously well off

the early-morning lows of plus 300 on the dow opening bell in just about four minutes. ♪

care. it has the power to change the way we see things. ♪♪ it inspires us to go further. ♪♪ it has our back. and goes out of its way to help. ♪♪ when you start with care, you get a different kind of bank. truist. born to care.

take a look at uber this morning. we've been trying to cover the reopening trade. it's been difficult given all the geopolitics, but uber today does up its q on adjusted ebitda guide. 130 to 150 million prior was 100 to 130 they talk about the mobility business bouncing back from omicron faster than they thought. >> yeah. mobility demand improved significantly for the month of february and trips 90% recovered. of course, we are going at some point during this week mention, carl, maybe right now, but we're going to -- this was the week. this is when it all began two years ago, more or less. you know, the 14th, i think, morgan is what we refer to as the great exodus from new york >> apple stores, nba, disney. >> exactly. >> tom hanks >> two years ago this week,

yeah so, thankfully there were only 80 cases in new york city the other day. 80 cases >> i saw that. i saw that and new york city school children mask optional beginning today. there's the opening bell and the cnbc realtime exchange, big board today. celebrating international women's day. working on a pharmaceutical company focussed on reproductive medicine at the nasdaq internet service provider, cogent communications one more internet traffic handler, david, cut off russian customers. internet access, netflix today, obviously the free press having to do a lot less. >> yes there it's putin and obviously his administration that are cracking down, but, yeah, the numbers keep adding up in terms of what russians will be able to avail themselves of or various companies. the hardest decisions as we were saying earlier and we'll do more on this are for those u.s.

companies that have significant presence in the country. pepsi, remember they bought that russian milk company a few years ago. they have a very large presence in russia. mcdonald's, yum. now many -- they have franchised restaurants but they still have significant supply chains. significant numbers of employees in these countries and so for them, it's a much more difficult decision than it might be for simply a technology company, morgan, that pulls its service, so to speak and frankly is not relying on a country that is, what, only less than 2% of gdp for the world. >> yeah. we keep talking about it, it's a tricky situation i can tell you some of the conversations i've had with executives at certain companies, particularly at industrial companies and manufacturers is that they're getting dozens and dozens and dozens of pages worth of sanctions and regulations and rules and guidelines that they're now having to parse through to basically assess what they're going to do in terms of business in the region right now. and what that means as you

mentioned earlier, david, not only from an actual financial standpoint and a supply chain standpoint, but also from an employee standpoint as well because this is just has so many different branchs and so many different ways that it affects not only a company itself but the people that comprise a company. >> yeah. >> go ahead. >> sorry, go ahead >> i'll jump in -- >> we're in separate places, that's what's going on here. >> ey, former instant young, 4,700 people that division being cut in russia. the third of the big four accounting firms to announce a divorce from operations in that country. and we sort of glossed past the logistics of what you do with that labor supply and that infrastructure, but these are huge decisions. >> these are big decisions again, they'll have an impact on your own employees in the country and is it something you want to be doing penalizing them in some fashion or in significant fashion by the loss of their job and their income this obviously what is going to be extraordinarily

difficult economy for the russian people right now but you know, our friend at yale is following this closely. he'll join us, i think, in the next hour as well. >> yes. >> but morgan, i mean, according to his numbers mcdonald's, for example, 9% of revenue is from russia and ukraine you know, you look at some pretty big numbers philip morris 8% pepsi as well, 4.4% of revenue so, those are not insignificant numbers and/or decisions for those companies as we take a look at the broader market, which is well off its lows the nasdaq now already -- not now, already in positive territory after, of course, futures an hour or so ago looked to have a deep in negative territory. but we have had a broader recovery at this point morgan, unclear exactly what's behind it. perhaps some people reading into the latest ask from russia in terms of this third round of negotiations or talks, i guess

we should call them, at least there is an ask. not that the ukrainians will have any interest in accepting any of those terms, but perhaps seeing at least something of a positive >> yeah. it certainly seems to be something of a positive this morning. we'll see how the day plays out as well, because we have had a number of days had a lot of very volatile sessions for a number of weeks now and we have seen days that started relatively strong or we have started to or started lower and then we've moved higher just to swing back into negative territory at the close so we have to see how all this plays out and how these headlines continue to evolve through the day. to your point, even as we're speaking now, the nasdaq just going flat and actually turning slightly negative. dow transports is down right now, the biggest underperform, which is not saying much because it's a relatively quiet session, down 7 tenths of 1%, being led lower by airlines, delta airlines, united airlines, alaska, jetblue, all these names given the fact that we were

talking about it earlier, two years this week from the pandemic and just as these airlines are starting to move towards a return to normal, we have the spike in crude oil and subsequent spike in refined product including jet fuel right now. many of these airlines are actually unhedged. so how is this going to play out? not to mention the fact that we talk about cyber threats, carl, and you have some freight and logistics companies that are actually now starting to get affected by cyber. expediters international was impacted last week we have seen that stock fall in recent sessions because of that, too. >> yeah. i know the combination of the potential decline in transatlantic passengers, obviously, with the higher oil prices had -- i think it was wedbush asking at what point do we start to see airlines start to raise capital again in a major way in advance of prolonged difficult time transatlantic. interesting, morgan, mentioned transports the canadian pacific and talk

oxy this morning, buffett icahn deal >> made a decent amount of money. of course, it was not the easier of periods, three-year investment which saw that stock far lower than it is right now you can see it is up yet again, of course. he did get a couple of people on the board. vicki kept her job, so to speak, but brought somebody in above her, executive chairman role as well but he's out buffett getting bigger in the name so ichan made money there. buffett getting bigger in the name what's most interesting to me, though, you take a look at that stock, called 57 bucks right now, was not quite three years ago, remember, when occidental had to raise enormous amounts of money to fund what was that overbid for 76 bucks a share and where did they get the

money? they got it from warren buffett. $10 billion, 8% per annum, that's 800 million bucks a year you're paying to buffett but he's gotten larger now, buying common stock and by the way, at the time it seemed unlikely to say the least, that his warrants, 80 million shares of occidental, exercise price was 62.50. but now you're very close, you're within reach. in fact, the open today looked like he might get close to 62.50. so, morgan, he's got another 80 million shares that he could exercise on given the warrants as you take a look at mr. icahn obviously exits again happy he made money there in what was significant position for him as well >> what a difference a couple of years makes. we're going to talk about this merger of equals, $6 billion merger of equails, david, between oasis petroleum as well. i mean, you're starting to see it more consolidation in u.s. oil names as we do have these high prices and we do have this on

going increased focus on things like free cash flow rather than production levels. >> yeah. and that's the key because there's going to be a lot of pressure on these u.s.-based companies to start increasing production. by the way, doesn't happen overnight. and to your point, one we made many times, they have been encouraged by their shareholder bases not to put money towards more production or i should say at least the bulk of whatever free cash they're producing towards more production. but to return it to shareholders in the form of higher dividends or share buybacks, carl. that has been the case we'll see if that changes. but again, all these things that are being discussed in terms of creating more production here to potentially offset any reduction in actual crude from russia, it's going to take time. >> yep morgan mentioned the reach out to venezuela, doesn't sound like that went very far axios says the president may be planning a possible trip to saudi to see what they can do.

alberta over the weekend saying, look, we have some excess rail and pipe capacity that could help but david, it's a lot about rig quality and kind of short supply and then labor that's an issue that will be in the background as well even if they could start to move on some of these leases. >> that's a great point. we talked so often about the labor shortage here and the many forms that it takes, including perhaps getting workers in the oil fields to get these things done yeah and then you still deal with this sort of pipeline deficiency to a certain extent, at least jim will tell you about for certain parts of the country yeah, there's no shortage of potential impediments. at the same time, there's no reason why over time we can't if there really is a dedication to doing it, but it does, morgan -- or carl, goes against the climate change initiatives that have been on going for some time. >> right morgan, it does remind us, we haven't yet mentioned what elon musk tweeted over the weekend and that is, hate to say it, but it is time to start actively expanding oil and gas production says not necessarily good news

for tesla, but extraordinary times demand extraordinary measures and then expanded on that, on nuclear, offering to go eat food on television from areas where you think this might be a potential environmental hazard >> those who talk about the energy transition, morgan, of course will always bring up the decision to not include nuclear as a key energy source and question whether that is obviously going to be smart. >> yeah. >> because over the next 20 years how quickly we can get to full renewable status and/or, you know, is a key question. and without nuclear it makes it much more difficult. >> it makes it much more difficult and it's a little crazy that's sort of been put into the bucket of negative energy sources because it is such a clean energy source the biggest issue actually really around nuclear, my understanding or reporting on utilities over the years, is the fact that at times it is not economically viable and can be expensive to generate that type of power but given what we're seeing with crude at multi-year highs and

gas at multi-year highs and just being -- the national security geopolitical ramifications of energy on the world stage right now, i mean, got to listen to somebody like elon musk who is saying this. it is pretty incredible, by the way, that we have had policies both in terms of wall street and in terms of presidential administration in the last couple of years that have arguably deincentivized american oil and gas and here it is, that cross-current push and pull, carl, for better or worse about energy and as a national security threat, which in some ways does bring it back to the 1970s. i'm hearing more and more comparisons to the 1970s between inflation, between conflict on the geopolitical stage and then, of course, now the spike we're seeing in energy prices which is worrisome and certainly drawing up some of those recession concerns as well worth noting, by the way, maybe we're having a slightly quieter session at least to start because we don't have that fed

speak this week. we've been in quiet period that will be key what the fed will do in the midst of all this. >> yeah. i think it's the combination of the energy pressure and wedbush strangely downgrades ralph lauren the russian troops attacked the nuclear power plant seems to be a game changer in the eyes of public they're worried about retailers highly exposed to europe pvh is mostly exposed. >> yes, that's another name. >> worrisome mode about consumer, why bed bath was up 2x this morning >> yeah, not only up 75% i did want to come back to electric cars which would seem to do well in an environment where gas is 5 or 6 bucks a gallon to your point, bed bath up 75% let's take a look at it right now, on the news that ryan cohen, you remember him, of course, mr. mean, when he moved into gamestop. that stock went crazy. still at heights it where

nowhere near until he actually started to buy those shares. he is now chairman of that company. not going to take a similar position at bed bath, but he does own 9.8%. so, 10%. now, $1.7 billion market cap, something like that, under 2, i think. but that's not an insignificant move, morgan unclear whether -- where those memesteres stand these days and whether they're following mr. cohen in i haven't necessarily seen any ice cream cones or frogs or anything else. >> rocket ships. >> i can't decipher. >> rocket ships, right. >> yeah. we'll see. it's interesting the strategic alternatives including separating bye bye baby given the growth potential at that particular brand or the idea of full sale of the company it could be run better under private equity this is an example of one of the retailers suffered as it tried to implement the strategic strategy around supply chain and inventory issues what we talk about every single day and have been really since

the start of pandemic, carl. and maybe where as once it was a rising tide that lifts all boats and that you could argue that was the theme for 2021, where retail stocks were concerned 2022, amid inflation, amid some of supply chain issues it's really who is navigating well, who isn't and bed bath & beyond is certainly in focus. >> yeah what a gain. 72% in what's been a difficult tape obviously for the past two days again today dow is down 311, you could argue, we are just a shade below that 4,300 points we've been watchin ining so closely fr several days now lots to talk about with lynn martin, including the big board recently halting stocks in trading in russia companies. before we goe to break, big board, not a lot of fed speak but everything will lead up to thursday and very important cpi print 10-year 1.77 ♪

(rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf. (crowd cheering) - bito, bito, bito, bito! every big idea every game changer every "how'd they do that?" starts here the blank page artists and writers know the tyranny of it well but so do developers, data scientists, ctos the new creators to them, we say let's create something that changes everything ♪ ♪ ♪ ibm let's create your record label is taking off. but so is your sound engineer. 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

♪ not many dow names in the green this morning to start a

busy week. caterpillar will lead you followed by home depot and apple which we'll talk about in the coming hours and tomorrow as we near their product event for the time being, down 340. don't go anywhere. ♪

when it comes to cybersecurity, the biggest threats don't always

strike the biggest targets. so help safeguard your small business with comcast business securityedge™. it's advanced security that continuously scans for threats and helps protect every connected device. on the largest, fastest, reliable network with speeds up to 10 gigs to the most small businesses. so you can be ready for what's next. get started with internet and voice for $64.99 a month. and ask how to add securityedge™. or, ask how to get up to an $800 prepaid card.

trade of three russian focused efts joining us the new york stock exchange president lynn martin is with us at post 9 great to see you is this a difficult call to make, these de-listings? >> yeah, you know, it's something that our nyse reg team continuously monitors throughout the trading day. and particularly when you have unfortunate circumstances such as what's going on in the russia/ukraine circumstance. our job in these circumstances is to continue to provide the most transparent, fair, orderly and efficient markets possible to allow buyers to meet sellers and to allow risk to be managed. so the moves we made last week were the most prudent given the evolving situation. >> is there a feeling they could be re-listed at some point or is

this a permanent move? >> importantly, they have not been delisted. it's a regulatory halt it means the stocks and efforts are closed for trading while the situation evofgs the nyse team will continue to monitor improving market conditions and market conditions holistically and when appropriate will make the determination on next steps. >> a fear that people had prior to the invasion was what would happen to markets function if it in fact did happen have you been impressed overall globally >> yeah, something like this preparing for an event like this and preparing for volatility in markets is something that takes years of preparation so at nyse we have a tremendous amount of technology investment, migration to the new state-of-the-art matching engine called pilar as well as continuing to harden our systems around it to ensure robustness,

reliability, scalability and security importantly, security during this situation >> are you seeing ipo pipeline interest fall off a cliff? >> yeah, interest, no. but in terms of folks coming to market, there has been a bit of a delay. it's been a very slow q1 that's not unlike 2019 when we woke up to a government shutdown 2019 the year ended incredibly strong and 2020 around this time two years ago we had tremendous volatility which put the ipo market on pause. we are having a tremendous amount of conversations with potential new issuers and looking forward to coming to market at an appropriate time. we are very confident about the second half of this year. >> time has a piece this morning on companies essentially betting on trying to look through this, right, betting on some long-term prosperity buy backs, goldman to a tril for a year, 12% growth.

is that your sense in terms of corporate mood >> yeah, corporate continue to be bullish about our markets, very impressed with the eliability and scalability of our markets, and the way our markets have continued to perform in spite of the increased volatility in january and last month. >> the threat of cyberattacks has not materialized as some believed it might, but it's early. >> yeah. >> how prepared are you in case the russians really do aftmp it up >> preparing for reliability and security of systems is something that's not done at the moment of a potential threat it's something that is years in making our cyber team is some of the best in class, so i feel that we are very prepared. >> are you expecting it? is the u.s. government been in tou touch atall? other financial services executives, there has been conversation between the government and private sector? >> there is always the threat of

cyber in this day and age and increasingly electronic and connected environment which is why you have to prepare for years and years and ensure that your systems have the appropriate amount of eziliancy and security around it. >> what about physical security? are you thinking about that, adding to that as a -- >> you don't -- you don't live in one of the most iconic buildings in new york city and not think about physical security all the time. and that is something that our teams are well prepared to deal with to the extent that anything manifests itself. >> all right one looming question is -- and this applies to all kinds of sanctions and corporate -- the departures from the country, all right, let's say for a moment you get a ceasefire, right the rollback of those moves is not going to be immediate and may not come back at all, right?

how long will it take for a trading halt to end? >> trading halts we can open the market pretty much at a moment's notice as long as we give the market advance notice that we're doing it so it's something that that's why it's important to note that we did do the trading halt as opposed to a de-listing. a de-listing is much more complicated >> finally, we had a lot of spacs listed that was, obviously, very helpful. is it your sense that is over and done with? >> no, i wouldn't say that i think spacs is another interesting way that companies can continue to come to market you have the direct listing, the traditional ipo and spac business combinations. so having choice for issuers to be able to join the public market is important and we think that that's a trend that will continue. >> it's good to see you. nice to have you on set. >> thanks for having me. >> lynn martin nyse president as we go to break, obviously, a drop down at the open. dow's down 245

everything else stable typical numbers. vix around 33. s&p 4,300. don't go away. 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?♪ inner voice (furniture maker): i'm constantly nodding... ...because i know everything about furniture ...but with the business side... ...i'm feeling a little lost. quickbooks can help. an easy way to get paid, pay your staff, and know where your business stands.

new business? no problem. success starts with intuit quickbooks.

good mop morning i'm carl quintanilla with morgan brennan and david faber. markets start at two things. one is any signs of compromise and a third round of talks between the russians and ukrainians oil gets to 130 this morning currently settling back to 117. >> 30 minutes into the trading session. we start with crude oil continuing to surge. briefly touchist the highest level since 2008 wti is now at 55% year to date but as carl mentioned it is off of those levels we saw overnight. plus, watch the payment stocks visa, mastercard, american express announcing over the weekend that they are sussing operations in russia they are under pressure this morning. and meme stock, bed bath & beyond surging after gamestop chairman ryan cohen said he has

a 9% stock, saying he believes the company should explore spin aufgt bye-bye baby chain shares are up 60% now. carl. >> return to the latest on russia and ukraine russia is offering a temary ceasefire. the president set to hold a call with european leaders this hour as pressure grows on western leaders to ban russian oil uk official says coordinated action could come this week, but german chancellor olaf scholz said they will continue to buy gas and oil from russia. the international event for the energy what a week to have this, brian. >> yeah, completely unexpected and, obviously, also completely unwanted with putin's war requesting on and changing the game the price of oil and gas was going up prior to putin's invasion of ukraine. obviously, that has thrown gasoline on to the fire already.

now, crude oil prices they are up but they are, wow, what, ten bucks off the overnight high as well they are at 117 and change they were over 125 overnight this is what's really interesting about the price of oil. bank of america had a note out, head of commodity research, effectively saying for every 1 million barrel swing, whether it's supply or demand or some combination of them, every 1 million barrel swing in anticipation of what will happen the price of oil moves $20 per barrel if you believe that things are going to get worse, that russian oil will be sanctioned directly and more will be removed from the market, then you think the price of oil can could go to 150 or 175 if you believe in a de-escalation, if you believe that maybe this is the worst that we have seen, hopefully, and that we'll see more russian barrels come on because things cool off, the price of oil will

decline quickly. a lot of headlines outside of russia warren buffett announcing a stake in occidental. that stock soared last week. they are on with us tomorrow night. that's a big story whiting and owe ais sis. two oil and gas producers that filed for bankruptcy two years ago announced a $6 billion merger this morning. filed for bankruptcy two years ago. $6 billion teal today. oh, and there is a guy you may have herd about, elon musk, he makes these electric cars. guess that he tweeted over the weekend that we need to ramp up oil and gas production because these are extraordinary times and they call for extraordinary measures. so the world's leading electric carmaker, one of the world's leading businessmen, saying we need to increase oil and gas output no doubt that tweet is going get a lot of attention the next couple of days. >> yeah. we are going to be watching your reporting so closely what a time to be there, brian the u.s. -- and i realize that

the numbers have declined the last couple of years pretty considerably the u.s. is still importing oil from russia and there are shipments on their way to america right now. i mean, it's kind of hard to believe this i guess put it in context for us >> yeah, it is marrhard to beli. the context is this. this oil on the seas, we talked about this last week, this was bought pre-invasion. i want to make that very clear you don't just buy a load of oil and put it on a ship and it's at sea. those red dots are at least six super tankers filled with russian oil, two already, one in southern new jersey, one in new york, one in the middle of the atlantic ocean and new york and houston as well. maybe $100 million plus of russian oil on its way i bring this up because it's going to be very curious to see what happens to these ships. now, the oil was purchased the ships are not russian ships.

so i don't think they can seize them but it will be fascinating to watch what happens when this russian oil cargo start to get unloaded it is truly a global market. you shut russia off. that's fine, david but you know as well as i do that a russian barrel could be here or it could be there. we'll see how the world reacts if we directly sanction russian oil, 150 certainly is possible if not probable. >> that was exactly where i was going to go with my question, brian. you almost made the point. china and india are not going anywhere either. the price may move up drama dramatically, but is russian production going to be met with no demand? >> there will be demand. we saw shell actually purchase some russian oil over the weekend $28 per barrel discount. if you discount it, the chinese are going to be buyers the chinese have one major

pipeline to russia it goes through mongolia so the chinese are major ship buyers as well india, listen, everybody wants to punish ukraine. people are willing to pay more in the united states if we get peace there. that is the macro theme. at the same time, we need to make sure if you are india, you need to make sure that the people have heat and power and they are not being destroyed by inflation. it is a very, very delicate geopolitical balance that the leaders, including ours, are facing i'll leave with this why do we need to import russian oil in new york when there is all this oil in texas? jones act, that 1920 law that says you basically can't ship things with foreign flag ships intrau.s we couldn't take a tanker from houston and bring it to new york it is illegal under the jones act. so we are going to talk to people here about maybe waiving that >> as we have been for -- off

and on for several years, brian. we're sorry because -- >> a decade. >> yeah. brian sullivan we'll talk to you in a little while. look at the markets here dow open down 300. we continue to hover around those levels south of 4,300. art cashin is joining us, ubs director of floor operations and a birthday boy, art. good to talk to you. >> thank you for that, karm. >> i wonder what you make of some of the narrative from some who are hopeful, optimistic, bullish that there is an exit ramp and it can be used in these talks in which ukraine would sort of foreswear some form of nato membership. would that be enough is that folly or is that worth paying attention to? >> well, you know, you want to hang on to any hopes you have. i mean, it's a very difficult situation. all these comments about war

crimes and war criminal trials well, we really can't get close to negotiating table with those kinds of charges going on. so that makes things difficult i think you saw the market and the oil price ease a little bit when there were supposedly overtures for humanitarian ceasefires today they've turned out not to really hold up too well and that's why we're starting to back off here. there is a report that we can't send top flight u.s. fighter planes to the ukraine because there is nobody to train the pilots but they can fly russian migs and there is supposedly a potential swap going on in which poland would send some of their existing migs from when they were in the warsaw pact to the

ukraine. if that were to happen, that is going to hype things and the markets will get very volatile then to see how putin reacts because if the ukrainians have air power, some of these things like that 40-mile armored tank group would be vulnerable. so the game is not over. we cross our fingers you can see this morning the market reacts. hopefully, any overtures of ceasefires but people don't believe it. the james bond division of wall street thinks that putin's got a four to six-week pressure point on himand then the weather changes enough to make the soil and other transportation problems difficult >> right meanwhile, the sort of nascent attempts at brokering broader talks. the zmiinyisraeli prime ministe moscow maybe china.

and i thought about you last week because you long said that, especially when it comes to food insecurity, china can get very nervous very quickly why wouldn't they want to find something to stabilize the situation? >> i'm sure he does. president xi wants to get to the end of this year he wants to be unprecedentedly reappointed, make him a leader for life, almost like mao. and one of the things -- two of the things that could trouble him would be a very big shortage and pop in either fuel and/or food, and it looks like they are having both of those i mean, ukraine was long thought of as the bread basket of europe they put out more wheat and other things so it could lead to a food shortage i think china would like to get involved, but i think he wants

to do this with a set of tweezers rather than going hands on for now. if things get more desperate, then he will definitely get involved so i would also keep an eye on those food prices in china. >> so much to keep an eye on, art. happy birthday, by the way and just in terms of that -- >> thank you. >> in terms of that fighter jet swap, sending mission from poland to ukraine. the u.s. would resupply poland with lockheed martin made f-16s. unclear if we will see that swap while it would help the ukrainian military, unclear just -- well, not unclear. clear that it would ratchet tensions with russia as well so we'll have to see how that plays out militarily, too. i'm curious. the last time you were on the show was the day that we saw this invasion take place in earnest. i am going to revisit a question we asked you then. is this starting to feel like the late 1970s to you in terms

of some of these major macro challenges that are playing out? >> yeah, well, and i think, as i said at the time, you have to be a little careful i think you reshape that question relative to russia and afghanistan, which was -- >> that's right. >> which was a slightly different point. but, yeah. no, i think there is very high volatility, as i said. there is a potential leadership change or reconfiguration about to go on in china. you've got putin kind of out on a limb this can't be going the way he hoped it would and if the wall street james bond group is right, then he's got a couple of weeks he facing. so the old supposed chinese curse, you live in interesting times. it looks like the next several weeks will be, unfortunately,

very, very interesting. >> are tt, if you were on set we would present you with a bottle of something special to go with the ice cubes. in lieu of that, happy birthday. talk to you soon. >> i thank you and i thank you for the spirits in which it was almost given >> art cashin. >> spirit for spirits. as we head to break, check out the airline stocks under pressure this morning. a closer look at the travel sector that's coming up next. we got a big show still ahead. don't go awhe.nyer

xfinity mobile runs on america's most reliable 5g network, but for up to half the price of verizon, so you have more money for more stuff. this phone? fewer groceries. this phone? more groceries! this phone? fewer concert tickets. this phone? more concert tickets. and not just for my shows. switch to xfinity mobile for half the price of verizon. new and existing customers get amazing value with our everyday pricing. switch today.

the street." back to oil. prices spiking to a 13-year high amid the escalating conflict in ukraine. analyst jason gable man, thanks for being us with. we saw that incredible move in the last 24 hours in the price of crude, both wti and brent we have come off those levels. the trade we are seeing right now, how likely is it that we could actually see a ban on russian oil and how much is that driving the volatility currently? >> yeah, i think oil traded up on that and backed down, the markets realizing that russia oil into u.s. won't be that impactful. the u.s. only imports a few hundred thousand barrels a day of russian crude, which on a global scale is very small we think an embargo of russian crude into the u.s. would not

have a major impact. i think that's what the market isrealizing as oil trades lowe through the day. >> looking at the aaa numbers, the price of a gallon of gas lean here in the u.s. jumped over $4 a gallon on average in the past week. it was a 40 cent jump, and that's before we even saw this latest move over the last couple of days. so the trickle out effect, if you will, to refined product and the fact that we are starting to see record highs in the r bob contract that is being traded just how sustained could this pain be? >> yeah, i mean, comes down to the question of how much crude and products will the market lose right now the market is pricing in a lot of russian crude products as we go up the market. we are watching water-borne crude exports from western russia that's where you could see potential companies hesitant to lift or outright sanctions that limit 2.5my m million barrels

per day of exports west. the market is increasingly pricing that in. if you don't have other parties such as china or india stepping in, we would expect crude to go higher as the market would feed to see some demand destruction to offset those lost barrels. >> could an iran or a venezuela actually step in to fill any potential void and just as crucial, how about the u.s.? >> so i ran won't be enough to offset that 2.5 million barrels per day. even if we get an iran deal and exports from iran ramp up by 1 million barrels a day in the next few months, that won't be enough to offset lost russian supply venezuela in isolation, too, and it's unclear what the production capacity out of venezuela will be just given the country has likely underinvested in infrastructure for a number of

years am i would suspect the u.s. to some extent will start to increase production in response to higher oil prices. but it's unclear, in particular, if public e&p companies who have been rewarded for being nor more disciplined with spend, unclear how eager they will be to ramp up production in the near term. >> it's interesting. prior to ukraine as early as last -- late summer or fall, some were pointing to potential supply constraints, saying the markets and economies could function well even at 130, that energy intensity was much different now than it was in the 1907s. do you have any problem with any of those arguments >> it's not something we looked into i heard $150 brent is the crude oil price at which you start to see some demand destruction. we are looking at the weekly data out of the eia. certainly the past couple of weeks we haven't seen any demand

destruction in the u.s it seems like from here the market could absorb higher prices >> jason, thank you for joining us today >> thanks a lot. well, speaking of oil, travel companies of course have been re-evaluating their surcharges to cover that spike in oil prices. seema mody has that story. >> as the pandemic is waning, travel executives have to deal with the rising cost of fuel for the three cruise lines, the question is how quickly the three largest publicly traded names with offset with higher ticket prices. morgan stanley is forecasting an 8% price increase of the three royal is seen as the most hedged followed by norweigian back in 2007 when oil was over $100 a barrel, cruise operators responded with a fuel surcharge which was droppedin 2008 because it was seen as unpopular among customers. the prospect of a surcharge this time comes as demand has been

improving in recent weeks, but still far off from pre-pandemic levels higher oil prices spells trouble for land-based travel. it cuts into travel budgets at a time when hotel prices you are up 40% compared to the same time a year ago that according to sdr. and as to the broader effect this could potentially have on travel what's interesting to note if you look at kayak search travel you'll see that the day that russia invaded ukraine on february 24th was the day we started to see flight searches tick down. so clearly you are starting to see some of that data come in, carl >> thank you for that. obviously, huge implications for all kinds of industries. uber off the initial highs of the morning. they raise q1 outlook for adjusted ebitda on strong ridership rebound. bouncing back from omicron ayitusecd.n we expte st wh dow's down 371

the street." taking a look at the rally in gold, briefly crossing the $2,000 level for the first time

in more than a year. investors in a flight to safety adds the russia/ukraine conflict intensifies. 1987 is the level there now. the gold miner stocks as well lifted gdx include new month and barrack gold and that is up more than 17% year to date, handily outperforming the s&p 500 which is down 10% today. a quick break here dot awhe.n'gonyer ♪ ♪ 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

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?♪ when you need help it's great to be in sync with customer service. a team of reps who can anticipate the next step genesys technology is changing the way customer service teams anticipate what customers need. because happy customers are music to our ears. genesys, we're behind every customer smile.

i am rahel solomon and here is your cnbc news update. at civilians try escape, ukraine says the protected escape routes that russia is promising are propaganda corridors because they lead to russia or its all belarus. russia promises of humanitarian

ceasefires over the weekend did not materialize. ukraine's delegation arrived in belarus on a military helicopter for a third round of talks with russia. hopes, however, for any kind of a breakthrough are dim with ukraine pledging not to surrender to russian demands. and at the international court of justice ukraine accused russia of medieval siege warfare, saying moscow falsely applied genocide law to justify its invasion russia did not participate in the hearing. ukraine said it would still need to comply with any ruling. and in the middle of all of the fighting, a wedding near the front lines. two civilians farpart of the territorial defense forces -- we do not have the video. after being together 22 years, it was time to make it official. carl, back to you. >> the pictures over the weekend were touching. thank you. it's about an hour into trading this morning a check on the markets we saw signs of bullish hope in

the premarket but the nasdaq now down almost 2%, dow down 430 only green sectors are energy and utilities. meantime, cnbc has new rapid update as economists take a first pass at gaging the economic and inflationary impact of the war in ukraine. steve leishman has that this morning. >> yeah. good morning the first pass highly contingent on what happens with oil prices. the u.s. will grow more slowly with higher inflation. europe's economy will flirt near recession and russia will plunge that a deep double-digit economic decline the cnbc rapid update showing u.s. growth ac is celebrating 3.5% in the second quarter the second quarter is down 0.8 percentage points from the february survey. the second half outlook fell and the full year gdp outlook dropping by right now a modest 0.3 percentage points. forecasters cautioning with oil

prices surging to $117 a barrel the risks are tilted to the downside j.p. morgan writing the consequences of a complete shutoff of russia's 4.3 million barrels per day of oil exports to the u.s. would be dramatic. now, the cnbc rap it's update finding economists updating the outlook by 1py 7 percentage point to 5.at an annual rate, a slower decline of inflation than thought. for europe jpmorgan and barclays reducing growth outlook by a full percentage point. jpmorgan pencilling a zero for euro area growth but 3.it 2% for the first year sanctions leading to double-digit declines in growth. russian growth could drop by 15%, double the drop in the great financial crisis, and, guys, the euro now trading at 139 to the dollar which is like

0.006 of a penny >> wow wow. let those numbers sink in for a second steve, i'm curious we get the cpi inflation right here in the u.s. on thursday and some of the areas of inflation where we've expecting or wall street -- you know, economists and analysts expect we could be potentially nearing a peak the fact that we are seeing this indegrees not only in energy prices and certain food commodities and also in industrial metals that go into things like auto manufacturing and semiconductors, i mean, how real is the threat that perhaps we are not going to reach a peak in some of these goods and durable goods that everybody has been sort of baking in and hoping for >> it's real you answered the question, morgan this is going to continue. this march number i guess comes thursday it not going to pick up all -- or even a piece of the increases we have seen and you're right

oil starts as a raw commodity. it gets manufactured in all sorts of things that go throughout the economy and all of those will show increases i mean, the good news right now is that consumers seem to go reasonable well off in terms of their ability to shoulder this the real question, how high and how long does it go, are these supplies produced? we had a memo this morning saying 30 bucks here is air. if you can get it back to 100, it's a different skcenario than 150. >> steve, thank you. as we are seeing companies pull business from russia, nearly daily, some fast food chains that operate their notably staying quiet. kate rogers has more. >> good morning. mcdonald's young brands and starbucks are the big three operators there. according to andrew charles at cowan, young brand's kfc has the biggest footprint between russia

and ukraine with w1,000 locations, mcdonald's 9 # 55 and starbucks 130 in russia. mcdonald's the region represents 9% of reported revenues but a smaller degree of operating profit and same-store same-store at under 3%. while the risk may be low the optics are getting challenging new york state's comptroller reaching out to big companies, including mcdonald's, estee lauder and pepsi asking them to consider pausing operations in russia as of now none have announced that they are pausing operations we reached out to mcdonald's several times and the company has declined to comment. starbucks did condemn the attack and said it will donate any royalties from business operations in russia to humanitarian relief efforts for ukraine. young brands also telling cnbc in a statement, quote, our thoughts are with those affected by the conflict and we and aur franchisees are focused on the safety of employees and partners the region

mcdonald's is majority company operated in russia and ukraine which could give it more autonomy starbucks andiam brands are licensed and franchised. david, back to you >> yeah, very interesting. of course, let's continue to focus on sort of that area and that question as well. joining us is jeff, the senior associate dean for leadership studies. he has been following the decisions by corporate america in terms of whether they pull out of russia or not starting with mcdonald's, jeffrey. you say in your latest column in fortune i think today you actually say it's disappointing that mcdonald's has chosen to remain in russia why do you feel that way, in particular if they pull out, obviously, thousands of jobs would be lost by russians who conceivably are not responsible for the actions of the auto crat who is running things there. >> you know, you hear that same explanation by many responsible

employers, western employers, but employers around the world, and that's not the right answer. that's not the primary concern you see this non- -- well, this unconvincing statement tom friedmann had years ago in "the new york times" that no two countries with mcdonald's have ever had a war with each other the meltdown of yugoslavia and throughout africa, that was absolutely not true. the spirit of that, though, was that western business would somehow have this effect of bringing peace to the world between neighboring nations. that's not true. mcdonald's is the perfect illustration you have a few hundred in ukraine that have been shut down mcdonald's shut them down in ukraine and not in russia. that's amazing and unlike the other casual dining restaurants as you pointed out, david, they have -- the ownership, the direct ownership, 85% of those restaurants. so they could do it.

employment, the idea of the sanctions is to put pain on to the economy. we are not trying to figure out how to advance the russian economy right now. it is for the general population to feel enough distress that the economy fails and the government fails. that's the point of these sanctions and the point of - >> would you not agree those companies have a much more significant presence on the ground in russia, have a more difficult decision to make or or is that it? you have to get out? if so, why >> i have been hearing that as you have, too, since the war broke out. and we've already seep the nus see the number of companies triple i had to keep revising the article. as they look at the tradeoffs, it's significant you have more than 75% of the population, 80% of the population according to morning

studies tell us that they support these superheanctions ad support the embargoes. that doesn't break out by republicans or democrats they are identical there is nothing that unifies the nation so much the blowback from employees is significant -- from consumers in the west but also what matters is this is the whole idea of these kind of sanctions, these economic blockades, and that's what worked in south africa when 200 companies pulled out in south africa in the late 1908s it made a difference that was working hand in happened with government sanctions. but when eric, you know, the leader of east germany stepped down, it was because the economy failed, the economy failed, and that's also what happened previously in russia that's what leads to a change of leadership is right now putin is anchored in fear and coercion.

as this crumbles, he becomes vulnerable because there is no other exit here. so the loyalty of employers to their workers is honorable, but on the list of the hierarchy of responsibilities, that's not number one, number two, number 20 they knead to focus on the peace in the world and they are protecting the employees from not suffering violence right now, suffering economic distress is a lot better than being bombed. >> yeah. jeff, it's interesting and you just touched on it i was going to ask you what the lessons learned from the 1986 south africa situation with sanctions was that you are referencing in this article and referencing as you talk. but perhaps even more importantly, i mean, we see sanctions go on swiftly, quickly, somewhat, dare i say, easily in times of geopolitical crisis what's not as clear is the path back from sanctions. so how are businesses and leaders of businesses navigating

that process, determining whether to, for example, exit a business all together or whether to halt operations right now >> that's a really sophisticated question and david's were, as well. that long-term versus shower and thunderstorm, as david addressed, an awful lot of major companies had complaining we have a large work force we want to take kafr our people and it isn't like somebody who is selling the product, we understand that. the longer term question, how are they going to restore relations. it has never been a problem. right now the larger population understands. and i think some of the companies that are staying in there are afraid that larger population, which is getting filtered information propaganda won't understand why the blockade takes place, whereas a lot of the b to b companies, the first ones to pull out, thought we have a sophisticated clientele, major organizations and russian companies, they know

the truth and why we have to pull out but the larger consumer oriented brands didn't follow that. it's funny how we see the fashion industry split right now. estee lauder is still in there makes no sense when the competitors have pulled out. they are afraid of that concern, the longer-term restoration with the larger russian public. they hoo care about their he reputation with the world public. >> that's interesting, jeff. last week there was discussion about high-end brands that were catering to russian elite. although there was a counterargument that maybe some of those people might be against the war but were looking to translate some of their assets out of rubles into handbags and jewelry. i wonder how that's -- how that calculus is very fraught >> you are right we saw this big split in the fashion business and interestingly, as you take a

look at, i don't know, the uighur problem with shin general province in china, the fashion makers were the first to move on that voluntarily and it was impressive they are usually the first to respond on voting rights issues, immigration, they are sensitive to public opinion. in this case they are dragged kicking and screaming because they are afraid of the long-term loss of anchoring in the larger russian public those luxury brands and more than half of them have moved over but there is no justification then for the others that still stay there in terms of the mcdonald's situation, as you look at the other restaurants, chains that are there, and bottlers working through franchisers, they can make statements they won't expand, curtail huger investments. there is a lot they can do ibm have halted operations but still paying workers to come in but they are not doing anything

productive is noteworthy they are taking care of their social support system and their compensation a lot of employers tell me they are afraid if companies abide by western boycotts they face being imprisoned after a point that's going to be crazy. they are not going to imprison somewhere short of a million western workers working in russia now if they observe these boycotts nonetheless, there are things that can be done by curtailing future investments and cutting off store expansions there is some control that franchise -- >> yeah, i want to get to one last question. sorry to cut you off try to make the answer brief you know, obviously, last two years organizations have learned how to navigate social issues and where they should speak out and shouldn't. where do you put sort of this idea of divesting and/or ceasing business operations in russia in terms of all those different things that leaders are dealing with when they hear about them

from their customers or employees? >> that's great. this is not being driven by politics you will not see an article attacking these employers and these producers as being woke. they are doing this as much out of self-interest and global concerns for the economy as they are for looking like they are just the right side of history or local politics. it's a deep ethical statement here, but also the functioning of our global economy and we can't have that with somebody who is threatening to bring the whole system down. >> jeffrey, always appreciated thank you. >> as we head to break, the biggest laggards on the s&p this morning. a lot of retail names. pvh, ralph lawen, tapestry, also for the net and epam systems and united airlines down as well the s&p is down 1.5% back in three.

esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. a financial advisor who gives me personalized advice that helps build my portfolio and my confidence? now you're talking. no wonder ameriprise financial has been named the #1 most trusted wealth manager. ameriprise financial. advice worth talking about.

(rhythmic electro rock music) (crowd cheering) - bito, bito, bito, bito! - [announcer] bito, the first u.s. bitcoin-linked etf. we are

. welcome back to "squawk on the street." bitcoin back below 40k kate rooney is tracking the moves. >> good morning. bitcoin is back where it was trading a week ago disappointing some who saw this as a moment for crypto to decouple from stocks still under $40,000. this morning it had reached a high of $44,000 last week. you got other major cryptocurrencies, ether following suit, and former goldma goldman sachs ceo summarizing what investors about vn wondering. he says he is keeping an open mind, but given the inflating dollar wouldn't you think crypto would be having a moment right now? he says he is not seeing it in the price. a lot of responses to that question those i'm talking to say bitcoin

is primarily a speculative asset rather than a true alternative it does tend to core relate wit macro markets and there is a hope by the crypto bulls that dynamic will change as crypto usage increases. bitcoin jumped 10% in a pmatter of days. t they note a rise in short liquidations with the back grop of lower spot market volume and an uptick in retail buy helped by the narrative of crypto as a store of value in russia and ukraine. one way to measure that is new wallet addresses new buyers coming into the market that is seeing an uptick lately. it's usually a hallmark of a bull market. as you can see, it's been lacking since november and pretty much this year. you have seen a slight uptick in march but is down from those levels we saw in november. back to you. >> interesting, kate certainly we have noted the correlation between bitcoin and

the nasdaq which is now down almost 2%. on "techcheck" this morning, the payment stocks visa, obviously, mastercard, american express stopping operations in russia that's at e p thtoof the hour. we're back in just a moment. i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system

for a changing world. ♪ 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 strength doesn't belong to a chosen few. it resides in all of us. and when we find it... we discover our body is capable of amazing things. ♪♪ things others could only imagine. strength changes everything. so own it. and see how far it takes you. tonal. be your strongest.

♪ welcome to "squawk on the street," i'm dom chick chew. stocks are lower, hitting the lows of the session. particular weakness among some of the technology and communications focussed sectors. the communications sector trade is perhaps the megacap ones like alphabet and meta platforms we're looking at they're the big laggards so far and stocks like netflix and disney the tech sector, microsoft trading lower. and we'll oend epam. off 60% the last four weeks as the war intensified. keep an eye on those srehas. more "squawk on the street" ahead. stay with us right here. ♪

at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard. become an owner.

as an independent financial advisor, vanguard. i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship will be one of trust and transparency. as a fiduciary, i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com welcome back goldman out with a note claiming cyberattacks could cost 1

trillion globally per year with the impending threat from russia and attack on the northeast u.s. power grid alone could cost between 250 billion and $1 trillion in damage, according to another study from lloyd's. joining us now, public service enterprise group chairman and ceo ralph izzo one of the ten largest electric companies in the u.s ralph, great to have you back on the show i do want to start with this cyber threat, something i realize power grids, as critical infrastructure, are always kind of in focus when we talk about something like this. but how are you weighing this possibilities now as we see this conflict play out in eastern europe and are the risks elevated >> thanks for having me here of course i have to begin my thoughts and prayers are with all the folks in ukraine and the humanitarian crisis they're experiencing right now and hope for a speedy resolution of it. it won't shock you if i don't go into detail on the cyber protections we're putting in place for obvious reasons, but no one company can with stand the nation state so we work together with our

government partners, with our partners in the industry to make sure we don't have a single point of failure, to make sure the system has multiple levels of redundancy. at this point of time we have a heightened level of alert with any anomalies we see we make sure those processes are air gap so we can separate them from the internet and to the greatest extent possible we share people. we share information we share hearts should there be challenges in that regard. i think it's best probably to not go into further detail than that the protections we try to build into the system. >> understood. just in terms of anomalies have you seen any or more than usual, i should say n recent weeks? >> no, we haven't actually what has happened, though, is that our attenthats are raised so more changes have been raised to senior management's

attention, but upon digging into them, we saw that they were not cyber related. our heightened awareness is bringing more issues to the forefront, but as we explore those issues we don't see any reasons for them happening >> let's talk about the energy picture in general and how it impacts utility such as pseg as well there's a lot of focus right now on europe and where europe gets its energy, different types of energy, different types of electricity generation from. what does that mix look like within your company? and how are you thinking about that, i guess in terms of this broader conversation and as we do see more traditional energy prices spike >> sure. of course, this is a horrible situation in eastern europe, but i must tell you it gives great support to the vision we've embraced, and strategy we've adopted. the united states learned some lessons back in the '70s from being overreliant on nations that have less than our best

interests at heart so we made a major emphasis of number one, using less energy. no one wakes up in the morning saying i want to use a kill la watt-hour of btu and lets use less energy and still accomplish the things we want to accomplish, of course. we're not talking about diminishing economic activity or lifestyles and then, the other motivation we have had past energy securities of course climate change we have been active on preserving our nuclear plants, building offshore wind and trying to just decarbonize the electric supply in general and of course recognizing that climate change is upon us in many regards we've been fortifying the grid to make it more reliant than ever before. we have been doing all that with the notions in shifting demographics and environmental justice. ithink that that view of using less, being more reliable and being cleaner is something that will serve us well as we see gas prices spike up in eastern europe and probably go up here in the u.s. as well.

>> ralph izzo, thank you for joining us today we appreciate your time. of course, david -- >> my pleasure. >> a down day for the markets. energy and utilities the two sectors in the green with the dow utilities hitting a fresh record. >> yeah. as you pointed out earlier, things can change quickly and they did, particular on the nasdaq started up almost down 2% now. that will do it for us on "squawk on the street. "techcheck" starts now ♪ good monday morning, welcome to "techcheck" i'm carl quintanilla with deirdre bosa and jon forth. session lows for stocks, megacap names like meta, microsoft all down more than 3%. the nasdaq down nearly 20% off the record high. then payments platform