in previous price spikes stays home. >> yeah, a lot, of course, due to really what was a huge technical advance in terms of tra fracking which happened some time ago but resulted in this country being essentially saudi arabia that'll do it for us here on "squawk on the street. let's get to "tech check" right now. ♪ good tuesday morning i'm carl quintanilla with jon fortt and dierdre bosa we're going to take up the pain in tech stocks, specifically the mega cap names getting hit hard. google adds to the por portfolio. what it means for m&a and other

cyber security names later, interview with the block co-founder not named jack on fintech investment. surprise, he likes bitcoin, as well we are awaiting the president, set to make some remarks on the ongoing crisis in ukraine. expected to announce a ban on russian energy when it starts, we'll take you there live. for now, let's stick with google this morning, officially announcing plans to acquire cyber security company hmandiant shares have increased nearly 50%. the deal comes as cybersecurity m&a continues to heat up 2021 saw 430 deals in the space, including 11 for more than $1 billion last month 35 more were announced mandiant will join dpogoogle's cloud section. russian operations were being

suspended at palo alto networks. we talk about the antitrust element of this. when we were talking about this a few month ago in the context of reports that microsoft was maybe look at mandiant, not as much concern alphabet is under more scrutiny. clearly, they think they have a chance of getting this across. it will make their cloud offering more comcompelling, whh lagged the services in the cloud that perhaps azure and aws have. >> well, yeah. this is one of those areas where alphabet and google have not been under so much scrutiny in the cloud. they're not dominant there, though they have been making significant gains. it's more on the search side of the house, where they've had more scrutiny. the advertising side it is interesting you mention february 8th being when rumors about mandiant started swirling. a week later, i saturday down

with curion and asked him about m&a and how tech companies had come down significantly over the past few weeks and months, asking him if now is the time to take advantage of some deals here's what he said. >> not saying you're going to buy, but, boy, wouldn't it be easier to? >> we're trying to determine, jon, which houses make sense to your example, houses are cheaper. should we buy a house or not i mean, you know, we've not said we will. we've not said we won't. we've known all the mechanics you need to scale a business, distribution, integration of the product into a large customer base, all of that we built organically. >> this is important, carl, not just in the context of security and not just marking what thomas has been able to do with cloud, but one of the criticisms from within google before he took over was, boy, they're not

getting the green light from the rest of alphabet management to do significant m&a now they are this is significant at over $5 billion. >> people are saying we have a deal at activision, mgm. this is different in that it is more related to security, but it is interesting we spent the last couple years trying to get into the heads of regulators it does seem like the conversation changes when you're worried about tech dominance doesn't sound as bad if you can build a national security conversation around that. >> for sure. meanwhile, fang off to a rough start in 2022. meta and netflix down more than 40%. amazon and microsoft seeing losses of closer to 20%. apple and alphabet holding up a bit better that's where we will start with our mike santoli this morning. >> meta and netflix, you have company-specific drivers of that downside the rest of the nasdaq 100, the

rest of fang, mostly just having this bit of a hangover after massive havinvaluation expansiot june down 12%, 13% off the high but less than the market in terms of valuation, looking at the forward price earnings multiples, apple shot up to 34, now down to 25 that is still basically the pre-covid peak that's exactly the case for the rest of these. you're buying balance sheet with apple, obviously, and kind of borrows at favored so ed son nation rates regulatory stuff is on the key question, can it remain so in folks are saying, look, when you get the nasdaq down 20%, you pretty much have to have a lot of the leaders also suffer and have their own little reset lower. we'll see if that happens to be

the case right now obviously, the apple, as it has news today, is sort of the favored destination for people looking for safety >> mike, appreciate that mike santoli that's where our feed will go. first guest this hour bought more amazon, facebook, and alphabet following the dip, and is bullish on all of the fang names at these levels except for netflix. joining us, the so-called dean of valuation, nyu professor. good to have you back. good morning. >> good morning. >> what about the glass are you seeing that is half full >> well, i mean, i don't think there would be any debate from anybody these are all great businesses they've got almost no debt huge cash balances pricing power. cash machines. the question always was at what price would you get in when i valued them three weeks ago, i think i found three overvalued and three undervalued. that was three weeks ago in the last three weeks, prices have dropped

two of the three made it into my portfolio. so at the right price, i think these companies are great additions to a long-term portfolio. doesn't mean in the short term you won't have some pain, but i think in the long term, i'd rather have these companies than pretty much any consumer product company. because of the combination of good stuff they bring to my portfolio. >> interesting now, is the most recent re-rating lower, do you think, being pinned to a black swan event related to what we're sesee seeing around the world? >> i think that's, you know -- part of it is that black swan of it the worry that this could be something potentially catastrophic that's hanging over part of it is, i think, investors are getting a chance to reassess. i've always said that corrections come with catalysts. sometimes, catalysts are distant, and sometimes they're nearer i think this might be an occasion for people to look and say, what the heck have we been doing, pushing up the prices of

the companies to levels -- i mean, you can take the zooms and the pelotons of the world. i think investors are using this as a chance to clean up past mistakes >> aswath, good morning. it is dierdre. you'd rather have the big tech names than any others, the consumer-facing names. but are you really going to make the same kind of returns is apple going to double again or microsoft i wonder, what do you think for the higher growth names where there may be earlier opportunity, or has that been washed out in the valuation compressions we've seen over the past few months? >> you know what, in this market, i'd take a 10% return every year to me, it'd be a good return i think reaching for companies that are going to double, i think, is a pathway to making mistakes here. i think when the markets priced around 6%, 7% returns, if you can make a 10% return on the tech companies, it's amazing i'd take that. >> what about m&a?

we were talking about some of the names that held up better than others. alphabet being one of those. though it had a rough go for a while before that, as well it's snapping up mandiant for just over $5 billion if this goes through, as they hope it will what's the significance of some of the more dramatic drops we've seen perhaps in software and enterprise software and some of these larger, cash-rich companies having resources is m&a part ofwhat is going to drive the 10% return you're hoping to see? >> yes you can make it on the other side, too. i happen to own peloton. not because i have great belief that they can turn the business model quickly but because i think they're going to get acquired i think, you know, many of these promising tech companies from last year and a few year ago, selling at premium prices, and now are at prices where, let's face it, with $200 billion in the balance sheet like apple does, if they wanted to, they could buy just about anybody they want.

so i think that some of this 10% return is going to be coming from snapping up companies and bargain basement prices. >> professor, what do you think, how do the risk-premium differ within technology between names that are high ly reliant on raw materials from dame rowngerous of the world and those that are less exposed to that supply chain? >> the risk premium for emerging markets collectively increased by about 2% across markets just in the last three weeks. that's an immense movement doesn't sound like much for over a short period so i think what we're seeing, again, is this particular crisis is leading to a reassessment of risk premiums across the board you see it in high yield bonds you're seeing it in required returns. i think you'll see it. again, it is a chance for people to look at what they've been doing and asking, have we been demanding enough of a premium? you're seeing the premiums

increase that is going to affect the pricing of companies that are exposed to these countries >> aswath, i'd love to get your opinions on the markets, issues with pricing in the long-term, when we see oil prices at these levels and demands for evs increasing, where are they properly valued, do you think >> i call this the big market. we all agree that electric cars are going to be a much bigger share of the automobile market i don't think there is any argument about that. we all agree that some of the new companies out there, tesla of course being an older of the company, is going to have a chunk of the market. i did an exercise. pick all these ev companies. i estimated what their revenues would need to be ten years out to justify the pricing then i added up all their revenues the problem i'm facing is you need 120% market share of a market that, you know, even if every car sold is an electric car, the question you have to ask is, where are all these

coors going to be sold that can justify all these companies being priced at the levels they are? collectively, i think they're overvalued doesn't mean every one of them is overvalued. i think, collectively, people are using the big market argument and being lazy by asking micro questions in general, i think macro investing, when you tell a big story about a.i. or cloud or ev and invest in every company in the space, it is a recipe for disaster. >> how much of this, aswath, do you think is people valuing one company based on another, instead of based on fundament tams it feels a lot is, here's how well tesla is doing. here's the next tesla. never bothering to ask, why is tesla valued that way in the first place? should bit is it unique has that been going on if so, what unravelled that? >> i call it pricing i draw a contrast.

when you value something and price something. people price companies, don't value them i remember nikola, they exist to make tesla look cheap. i was only half joking when i said that. i think when all you have is tunnel vision, off you're looking at are ev companies and comparing them to each other, after a while, you lose perspective. i think 95% of people who claim to be value investors are price inve investors. they're pricing. when you're doing pricing, you'll lose perspective very quickly. so i think, again, you need a moment of reckoning. i think we're onto that moment right now. >> certainly feels that way. professor, great to have you appreciate the guidance this morning. we'll talk to you soon >> thank you we are still awaiting the president. we'll take you live to the white house when those remarks start more "tech check" in a moment.

(jane) we really expanded our family... for the wireless savings. then, my sister told me about visible. (sister) get unlimited data for as low as $25 a month. no family needed. (vo) visible. try us for free before you switch.

gut check on a pair of upgrades dell ever core moves to out perform. guidance is called too conservative price target there is 60 then there is okta stock down more than 40% the last six months. strong organic growth and the dip in valuation, the chief cal list behind the firm's optimism. price target is 225.

currently trading at 158 now, let's turn to apple having its first big product event of the year just two hours from now peek performance, p-e-e-k, is the title. new iphones and ipads expected here with us now, new apple reporter steve kovac as well as the "wall street journal"'s johanna stern. i've been thinking about this event. tell me if you think this is right or not in terms of defense and offense, in a way, the iphone se and the ipad air feel a little bit more like defense to me they're not the flagship in those lines. the margin dollars aren't really there. then if we get new 1, even m2 macs, that's where apple's really playing offense in the pc market what do you think is leading in what we might hear about today

>> jon, did you ask me this and not steve because i'm not a sports person? i think i get it though. i totally agree with you on the defense on the iphone se especially this is to get people at this lower cost $399 those who have been holding on to older phones. i call this, the iphone se, the i hate change phone. this is people who want to hold on to the home button, like the smaller screen, don't want to spend $1,000 or more on a more premium phone. obviously, today, a lot of people looking at 5g coming to the phone. as i've said on this show before, and, jon, i'm ready for you to hit me back, but 5g is not a reason to upgrade. 5g carrier deals are a reason to upgrade. i think we're going to see that moving this phone ahead. and on the macs, i totally agree. offense, right they are really hitting intel and the other pc makers where it hurts with the m1, possibly m2 chip we're going to hear about

today. just, you know, i'm on one of the computers right now. it is fast it runs really cool. the battery life is great. all these things that the other pc manufacturers are struggling to figure out. >> steve, what do you see as most important here on the business side, for the investors thinking about apple here, especially as we get closer to wwdc, where we get a look at the software innovation that apple expects to build into the next iphones. what signals are most important? >> yeah. honestly, all the skepticism about 5g well warranted. johanna is totally right about that what we do know is it moves phones it spurred the last catalyst of a super cycle of the iphone. now, they get a chance to see if that can translate over to the lower end of the market. to johanna's point, look, they're going after the lower end of the market which only had 5% market share on the iphone side versus all the cheap android phones we have putting out a new 5g capable phone really has that kind of

marketing swag that they need to kind of convince people maybe to upgrade from a cheaper android phone. that's how they get the users ahead of all the software updates you talked about as we know, they like to pack in more services on top of the phones to squeeze as much outa they can. >> yeah. bringing more people into the ecosystem. similar, johanna, to what you were saying. is there a bit of a narrative violation here since the se's debut, the top three markets have been the u.s., japan, and western europe. how does it get into other markets where iphones may be less represented versus the budget android models? >> yeah. no, i think people underestimate how popular that phone is in the u.s. market. again, because people hate change and people want to hold on to the home button. there is a reason they still keep making this old phone i really do think it is to hit that market, as well, in the u.s. but to answer your question about broadening out to other emerging markets and beyond that, price, right there's certainly some thoughts of them bringing down the price from $399 to $299.

i'm not sure we're going to see that today i think this gives the apple that $399 spot it gives the carriers at least, again, in the u.s., the ability to bring down the price with deals. i think beyond that, when people think of emerging markets, they can also think about this sort of step in with the airpods or the watch, also sort of sweetening the deal yeah, i can't tell you exactly how apple is thinking, how is this se going to get them deeper into countries where they haven't been as successful. >> interesting, steve. we continue to look for signals as to how they're going to make the ecosystem even stickier when it comes to say, for example, fitness. there's been speculation about what they could do on that front. you have to hand it to them. the progression of quality and certainly notoriety of apple tv has taken off, say, in the last three, four months. >> yeah. that's totally true. i mean, weloves to talk about the apple tv shows. even the investors meeting last

week, he was bragging about the emmys and oscar nominations they've racked up. that's a fun trophy for tim cook to brag about. it's not the core of the thing we're paying attention to. while you're talking about tv, we can't forget about this other thing that's been rumored, this smart monitor or some kind of interesting new take on a desktop computer monitor that's been rumored for the last couple days i'm going to be really interested that could be the dark horse i'll be interested to see what that looks like and the case behind that. >> johanna, back to -- >> i'm waiting for the -- just waiting for the "ted lasso" season three release date. that'll be the biggest news of the day. >> indeed. indeed back to the silicon piece for a moment have you ever seen, johanna, a silicon transition that has gone this well, this smoothly as what apple is doing from intel to the m1, et cetera? >> no. honestly, some of it has been disappointing as a reviewer because i wanted to be able to pick at it, right?

i wanted -- when they announced this in 2021, or end of 2022, just thought it was going to be a nightmare, especially with app combatabilipatibility and how te iphones would run on the macs. people aren't putting the iphones to the macs or if they are, people aren't running them, but it is smooth this software runs well. i don't get that many emails from readers who are struggling with installing things again, i've been using an m1 13-inch macbook pro for a year and a half, and it is running almost as well as it was the first day. >> you want a better camera. i remember that much johanna, steve, thank you. >> thank you we continue to monitor the white house for that aperipearae by the president it is going to coincide with this news out of the uk, that they'll also follow suit in a slightly different fashion. kayla tausche has that. >> yes, we just got the news from the uk business and energy

secretary, announcing by the end of this year, the uk will be phasing out the import of russianively a ban, but it is not taking place right away the business and energy secretary also tweeting that the uk is exploring a ban of russian imports of natural gas, as well. so even though the u.s. had been expected to take a standalone effort, we knew the uk was exploring how it could possibly take a similar action while protecting market forces and consumer prices, as well certainly, a feather in the cap of president biden before he takes the podium here at the white house. we will see if japan, which had also been exploring a similar move, will make any announcement to this end, as well. >> there continues to be some side activity, i guess, on a house vote related to some of this, right? >> yes certainly, the house ways and means committee had been instrumental in reaching a bipartisan agreement to take

some action to ban russian oil, to allow for more tariffs to be placed on russian goods, and also to revoke the most favored nation status, or rather, the membership in the world trade organization by russia certainly, all those had been part of a bipartisan agreement that had been reached on the hill democrats have been speaking behind the scenes about letting president biden make the first annou announcement they'll be announcing after that. i'm announcing the united states is targeting the main artery of russia's economy we're banning all imports of russian oil, gas, and energy that means russian oil will no longer be acceptable at u.s. spo ports, and the american people will deal another powerful blow to putin's war machine this is a move thathas strong bipartisan support in congress and, i believe, in the country americans have rallied to support their ukrainian people and made it clear, we will not be part of subsidizing putin's war. we made this decision in close

consultation with our allies and our partners around the world, particularly in europe because a united response to putin's aggression has been my overriding focus, to keep all nato and all the eu and our allies totally united. we're moving forward with this ban, understanding that many of our european allies and partners may not be in a position to join us the united states produces far more oil domestically than all of the european countries combined in fact, we're a net exporter of energy so we can take this step when others cannot. we're working closely with europe and our partners to develop a long-term strategy to reduce their dependence on russian energy, as well. our teams are actively discussing how to make this happen today, we remain united. we remain united in our purpose. to keep pressure mounting on putin and his war machine. this is a step that we're taking

to inflict further pain on putin. but there will be cost as well here in the united states. i said i would level with the american people from the beginning. when i first spoke to this, i said defending freedom is going to cost. it is going to cost us, as well, in the united states republicans and democrats alike understand that. republicans and democrats alike have been clear that we must do this over the last week, i've spoken with president zelenskyy several times to hear from him about the situation on the gruound and to consult and continue to consult with our european allies about u.s. support for ukraine and ukrainian people thus far, we've provided more than $1 billion in security assistance to ukraine. shipments of defensive weapons arriving in ukraine every day from the united states, and we, the united states, are the ones coordinating the delivery of our allies and partners of similar weapons from germany to finland to the netherlands

we're working that out we're also providing humanitarian support for the ukrainian people those still in ukraine and those who fled safely to a neighboring country. we're working with humanitarian organizations to surge tens of thousands of tons of food, water, medical supplies, into ukraine. more on the way. over the weekend, i sent secretary blinken to visit our border between -- the border between poland and ukraine and to moldova to see what the situation was firsthand and report back. general milley, chairman of the joint chiefs of staff, our defense department, was also in europe meeting with his counterparts and allies on nato's eastern flank to reassure them those countries bordering russia, nato countries, that we will keep our nato commitment, sacred commitment of article v. vice president harris is going to be traveling to meet with our allies in poland and romania later this week, as well

i made it clear, the united states will share in the responsibility of caring for the refugees so the costs do not fall entirely on the european countries bordering ukraine. yesterday, i spoke with my counterparts in france, germany, and the united kingdom about russia's escalating violence against ukraine and the steps we're going to take, together with our allies and partners around the world, to respond to this aggression. we are enforcing the most significant package of economic sanctions in history it's causing significant damage to russia's economy. it has caused russia's economy to fight the russian ruble is down to 50% -- by 50% since putin announced his war. one ruble is now worth less than 1 american penny one ruble is less than one american penny preventing russia's central bank from propping up the ruble and to keep its value up they're not going to be able to do that now.

we cut the russian's largest banks from the international financial system, and it's crippled their ability the do business with the rest of the world. in addition, we're choking off russia's access to technology, like semiconductors and sap its economic strength and weaken its military for years to come major companies are pulling out of russia entirely, without even being asked. not by us. over the weekend, visa, manch mastercard, american express, they suspended services in russia all of them. growing a joining list of american and global companies from ford to nike to apple they've suspended their operations in russia u.s. stock exchange has halted trading of many russian securities the private sector is united against russia's vicious war of choice u.s. department of justice has assembled a dedicated task force to go after the crimes of russian oligarchs. we're joining with our european

allies to find and seize their yachts, their luxury apartments, their private jets, and all their ill-begotten gains, to make sure they share in the pain of putin's war these, by the way, are giant yachts you put something -- i think i read one was over 400 feet long. i mean, this is worth hundreds of millions of dollars the decision today is not without cost here at home. putin's war is already hurting american families at the gas pump since putin began his military buildup in the ukrainian borders, just since then, the price of the gas at the pump in america went up 75 cents with this action, it is going to go up further. i'm going to do everything i can to minimize putin's price hike here at home in coordination with our partners, we announced we're releasing 60 million barrels of oil from our joint oil reserves. half of that, 30 million is coming from the united states. we're taking steps to assure the

reliable supply of global economy. we're also going to keep working with every tool at our disposal to protect american families and businesses let me say this. to the oil and gas companies, to the finance firms that back them, we understand putin's war against the people of ukraine is causing prices to rise we get that. that's self-evident. but, but, but, but it's no excuse to exercise excessive price increases. padding profits or any effort to exploit this situation for american consumers, exploit them russia's aggression is costing us all, and it is no time for profiteering or price gouging. i want to be clear about what we'll not tolerate but i also want to acknowledge those firms and oil and gas industries that are pulling out of russia and joining other businesses that are leading by example, this is a time when we have to do our part. make sure we're not taking

advantage. look, let me be clear about two other points first, it's simply not true that my administration or policies are holding back domestic energy production that is simply not true. even amid the pandemic, companies in the united states pump more oil during my first year in office than they did during my predecessor's first year we're approaching a record level of oil and gas production in the united states, and we're on track to set a record of world production next year in the united states, 90% of onshore oil production takes place on land that isn't owned by the federal government. of the remaining 10% that occurs on federal land, the oil and gas industry has millions of acres leased they have 9,000 permits to drill now. they can be drilling right now, yesterday, last week, last year. they have 9,000 to drill onshore that are already approved.

so let me be clear, let me be clear, they are not using them for production now that's their decision. these are the facts. we should be honest about the facts. second, this crisis is a stark reminder to protect our economy over the long term, we need to become energy independent. i've had numerous conversations over the last three months with our european friends of how they have to wean themselves off russian oil. it's just not tenable. it should motivate us to accelerate a transition to clean energy this is a perspective our european allies share. the future where, together, we can achieve greater independence loosen environmental regulations, clean investment won't. let me explain, won't, will not lower energy prices for families transforming our economy to run on electric vehicles powered by clean energy, with tax credits to help american families winterize their homes and use less energy, that will, that

will help. if we can, if we do what we can, it will mean that no one has to worry about price at the gas pump in the future that'll mean tyrants like putin won't be able to use fossil fuels as weapons against other nations. and it will make america a world leader manufacturing and exporting clean energy technology of the future to countries all around the world this is the goal we should be racing toward. over the last two weeks, ukrainian people have inspired the world. i mean that in the literal sense. they've inspired the world with their bravery, patriotism, their defiant determination to live free putin's war, putin's war has caused enormous suffering and needless loss of life of women, children, everyone in ukraine. both ukraine and, i might add, russians ukrainian leaders as well as leaders around the world have repeatedly called for a cease-fire for humanitarian relief.

for real diplomacy putin seems determined to continue on his murderous path, no matter the cost putin is now targeting cities and has been targeting cities and civilian schools, hospitals, apartment buildings. last week, he attacked the largest nuclear power plant in europe with an apparent disregard for the potential of triggering a nuclear meltdown. he has already turned 2 million ukrainians into refugees russia may continue to grind out its advance at a horrible price, but this much is already clear ukraine will never be a victory for putin. putin may be able to take a city, but he'll never be able to hold the country if we do not respond to putin's assault on global peace and stability today, the cost of freedom and to the american people will be even greater tomorrow so we're going to continue to support the brave ukrainian people as they fight for their country. i call on congress to pass the

$12 billion ukraine assistance package that i have asked them for of late. ukrainian people are demonstrating by their physical courage that they are not about to just let putin take what he wants. that's clear they'll defend their freedom, their democracy, their lives we're going to keep providing security assistance, economic assistance, and humanitarian assistance we're going to support them against tyranny, oppression, violent acts of subrogation. people everywhere, and it may have surprised you all, people everywhere are speaking up for freedom. when the history of this wrar i written, putin's war on ukraine will have left russia weaker and the rest of the world stronger may god bless all those heros in ukraine. now, i'm off to texas. thank you very, very much. i know there's a lot of questions. >> mr. president -- >> i know -- >> -- are russia >> i know there's a lot of questions. there's a lot more that has to be made clear, and i'm going to

hold on that until we get more information. thank you. appreciate it. >> that is the president announcing the u.s. ban on russian oil and gas, pointing out the economic pressure that's already been put on russia he threw in there some of the economic sanctions we know about and a lot of the self-sanctioning that has been going on by corporate america. the likes of some payment processors over the weekend, from american express and visa then, kayla tausche, defending u.s. energy policy, pointing out that more is going to be produced this year than in trump's first year i did notice at one point, calling this putin's price hike, referring to gasoline. >> he has been laying the blame at the foot of vladimir putin multiple times in tohose remarks carl he made a point to say prices at the pump will not go down by underinvesting in renewable energy went on to promote some of the policies, the clean energy policies and the green tax credits that his administration

has been putt ting forward he reiterated there will be a cost for the american people as part of the conflict in ukraine. even though, privately, i know that the white house and the american petroleum institute believe that because of that significant run-up in oil already, that perhaps the announcement of the american ban, coupled with the phase in of the uk ban and the efforts by europe to at least wean itself off of russian energy by the end of this year, that the gradual nature of those should at least put a lid on price hikes roughly where they are now that is what i believe according to conversations with sources about just the significant price action we've seen so far it was also interesting, carl, to hear president biden talk to corporate america directly, and say even though it is becoming more expensive, essentially, to obtain the energy you may need, the price gouging is not okay. that speaks to the fact that along the options that the administration has weighed, a

federal -- a cut in the federal gas tax or a suspension, rather, of that gas tax. when i talk to sources about why that does not appear to be an attractive option, it is because the white house and democrats on the hill aren't confident that corporations would necessarily pass that tax break along to consumers. it might not actually have any impact the madministration wants to speak to corporate america and say, do not price gouge. don't hike your prices beyond what supply and demand require certainly, they are continuing to evaluate their options beyond that strategic petroleum reserve release that's been done before. and other options, at least for the time being, it seems they will not be pursuing. >> kayla, morning. it's jon what are you hearing about the p medium term domestic impact of what's happening, particularly with energy policy you hear the president there trying to thread the needle,

saying, hey, there's plenty of room to drill here onshore companies have the ability to do that then at the same time, we need to accelerate the move to clean energy i feel like there is this groundswell, or at least louder movement, of people saying, well, there was too much emphasis on clean energy to begin with and not enough recognition that, for the time being, fossil fuels are necessary and energy independence is necessary. how does that affect the election cycle coming up >> it's a good question, jon it is a needle the administration has tried to thread very delicately so far. but there is going to be a moment coming up where the administration is going to have to develop its own identity on energy policy. the department of the interior is expected to put out a 5-year plan with regard to drilling, leasing, and permitting in the united states. that work is starting, but the white house and the executive branch is going to have to figure out exactly what it wants to say about how drilling and leasing and permitting activity

should proceed in the united states for a period of time that even extends beyond a potential first term of an administration. we don't know exactly which way the administration is leaning on that, but, certainly, that is going to be determinative. it is going to wield a lot of criticism once it eventually comes out. >> kayla, the president talked about corporations leading policy in some cases from refiners without a sanction to the payment processors what about the remaining companies that have not yet suspended operations in russia, like coca-cola and mcdonald's. does the pressure on them continue to rise >> i think the pressure continues to rise, but you've heard a lot of those consumer goods companies say, like procter & gamble, for instance, say we're not going to invest more in russia, but we have to continue to supply basic services and needs to the people who are living in russia, who they are not the ones who brought on this war. how that capex flows from here remains to be seen but one of the things you will

see is congress, in short order, is going to be -- is going to be essentially voting and approving for the u.s. to be able to put tariffs on russian goods some of these goods that are not directly impacted by sanctions so how the white house and how the hill decides to proceed on some of those potential tariffs could also impact companies that are not otherwise swept up in the sanctions that have been announced. >> also interesting, kayla, to see him defer, for now, any criticism of, say, dividends and buybacks at the expense of capex. maybe that's something we'll hear about down the road who knows? kayla tausche in washington. thanks obviously, oil prices are jumping again today on the news. it is the perfect time for the lineup brian sullivan has been talking today. there is another special guest hey, brian >> hey, carl thank you very much. yeah, we are pleased to be joined by the chairman and ceo of conocophillips. ryan, unfortunate, incredible, sad, weird timing to have everything happening here, as

everything is happening geopolitically i know you were inside giving a talk you did not hear the president directly >> right. >> he basically is going to ban russian oil. talked about your industry immediately, whats is your reaction to the ban on russian oil imports? >> the administration and some of the congress was talking a little about this last week. we had a chance to get prepared. i think it is a rational thing to do in the short term. we have to send a message to the russians i think the u.s. will incorporate a system quickly for the impact the real question beyond that is, what does the rest of the world do with respect to russian exports? that can have an impact on the system if 1 or 2 million barrels a day are taken off the market. >> uk -- again, this all happening. i know you were on a panel the uk saying they are goingto ban russian imports. not just of crude oil but also refining products, bio fuels, et se setera we'll see if others do the japans of the world, europe, uk, us, if we ban russian

imports, what happens to the price of oil >> i think if, you know, the larger part of the world starts to ban, we take a million or 2 million a day off the market, it is going to send the prices even higher that's coming. >> higher than 127 >> higher than today's prices. i don't know what today is trading at right now absolutely if you take another million or two off the market, the price is going to continue to go up that's how thinly balanced the system is today. all eyes are looking at the opec plus group or the opec group, how much capacity is there to satisfy that demand, if we take the supply off the market. >> we know there is not a lot, but there may be some opec plus. >> right. >> we are lucky to talk to some of them. secretary general of opec is here mohamed, if you're around, come on over. think the saudis have the ability to put more oil on the market >> not in the short term this is a longer-term question that's the one message i would have for the administration today. i know we're focused on the short term, trying to resolve, send a message to mr. putin and

what's going on in ukraine but we need to be thinking about the medium and the long-term impact if this lasts for a while, and we continue to stop the exports, it is going to have a material impact on the market for a longer period of time. we need to think about that. >> john hess this morning told us he thinks the u.s. and the iea should have a coordinated 120 million barrel release of the srp next month another 120 million barrel release. so 240 million barrels in two months a little surprised to hear mr. hess say that. would you agree with that? >> i think it can help alleviate the short term again, brian, the longer term, it is a question of what are we going to do for the next six months what are we going to do for the next year? are we planning enough to say, what are the scenarios that could develop over the period of time what are we going to do to ensure energy security as a country and as a globe releases out of the spr for a month, two, three, it'll help the short term, and they're necessary to do that, but they don't answer this longer term question. >> the president in his talk -- again, i want to be clear,

people joining us, you didn't hear it. you were in a panel. thank you for graciously hustling out here. the president did throw the ball in your court. your industry is sitting on something like 9,000 leases of federal land you're shaking your head he's basically telling the american people you guys should be or could be drilling more i'll let you respond it's not how it works. you don't just tomorrow -- give us an idea of how this occurs. >> it is a terrible talking point. got to get off that. what we noo eed to focus on -- >> why is it a terrible talking point? >> leases take a while we'll drill when we do the geological work. when we understand where to drill, we drill. you have to have a pipeline of leases to perpetuate the businesses over the long haul. there's always leases undrilled. that's not the measure of what the industry is doing. we'll grow this year, from entry

to exit, 8 c,000 so 9,000 barre a day. you look forward to next year, probably going to grow that similar amount if these prices persist, there's going to be plenty of money to invest in the capital and still generate the adequate returns we need for the business and give returns of capital back to our shareholders. >> so i talked with scott sheffield earlier. he'll be on the newscast later today. if you called your board today, you heard the president, you call your board right now after we get offline and say, let's pump more oil. let's go for it. from that moment until the first drop of new oil comes out of the ground is? >> 8 to 12 months. it is not that quick again, that's why we have to be thinking about the medium and the longer term here, to try to decide we're spending 20% more capital this year than last year we're going to grow our production this year over what we produced last year. if you want to grow faster, we can put some more capital in

we have to make sure returns are there. we're dealing with the same inflation and supply chain every other manufacturer is doing in the u.s. we have to make sure returns are there in the business, and we have to look forward, to your point, 12 months what's the price going to be in 12 months, to generate the adequate return. >> to on a panel, vicky said supply chains are hurting her company, occioccidental nickel was halted, the main ingredient in steel production you use steel to drill. >> yeah. >> how much of these other things, labor, frac sand, water, steel cost, impacting your ability to grow? >> yeah. it does. to your point, if you're in the u.s. hot spot, the biggest field in the united states, you're seeing double digit kind of inflation rates. the commodities, those categories, truck driving, chemicals that come out of europe it's all the supply chain issues

impacting our ability. so the question is, the price is high enough to incentivize more capital to go in and grow. we have to watch the returns we're like any other business. we have to make sure the capital we spend generates an adequate return for shareholders. >> final question. i want to end on an our shareholders. >> want to end on an optimistic turn, people are dying putin's stupid war, unwinnable war ends tomorrow. what happens to the price of oil? we fall to 80? >> it's a $10 to $20 geopolitical premium and that's obvious what's going on. before this crisis started it was in the 80s and 90s just based on the supply demand because the world is growing back out of the pandemic the growth is coming and the lack of investment on the supply side is creating this situation that was born out of a couple of years ago, and it will take a while to get out of this situation, as well

>> really important point to have your voice on chairman and ceo of conoco philips. thanks for rolling with everything hell of a time thank you. >> jon, send it back to you. >> so timely, thank you. next, a rare, exclusive interview with the co-founder of block. more tech check in a moment. (vo) verizon is going ultra! with 5g ultra wideband in many more cities. mindy! with up to 10x faster speeds, she can download a movie in minutes or a song in seconds. (mindy) yep! (vo) verizon is going ultra so you can do more. ♪ i see trees of green ♪ ♪ red roses too ♪ ♪ i see them bloom ♪ ♪ for me and you ♪ ♪ and i think to myself ♪ ♪ what a wonderful world ♪ a rich life is about more than just money.

that's why at vanguard, you're more than just an investor, you're an owner so you can build a future for those you love. vanguard. become an owner. don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity. municipal bonds don't usually get the media coverage you can act quickly. the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 1-800-376-4376. we'll send you our exclusive bond guide, free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years,

and offers high-quality municipal bonds from across the country. they provide the potential for regular income...are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-376-4376. that's 1-800-376-4376

our next guest co-founded square, now known as block with jack dorsey more than a decade ago. he joins us with the payment space and crypto joining us is block co-founder jim mckelvey let's start with dorsey put block in his focus do you think it can backfire or all upside >> it's not all upside we don't know what's going to happen b bitcoin looks like -- and do you think dorsey can hurt the company's ability to capture a wider, growing crypto audience >> well, bitcoin has some very unique properties right now, and i personally own some bitcoin, and i think it's unique primarily because it's very decentralized and there's no sort of central entity that's

telling us what to do. it's this community and it's the response from the community that's actually more exciting than the currency itself >> so are you a maximalist like dorsy? >> no, i do own some. >> do you think dorsey's strategy of all in on bitcoin and not looking at the other token, do you think that limits the opportunities for block when you have a coinbase, for example, when looking at investment and the broader focus versus the maximalist focus. >> i'm not going to speak for jack i really respect jack's vision as having seen these trends early. if you look at what jack has been able to do consistently over the last decade is he's been right early more often than not. i'm really happy that he's continuing to make calls like that >> let's look at the broader

payment space than disruption seems to be a given. we saw huge run-ups in a lot o these companies like block to sofi, coinbase and others and the disruption will take longer, be bumpier when it comes to regulation do you think that's the case how do you see valuations coming down over what we've seen over the last few months? >> honestly, i haven't looked at the stock price in -- eight months, nine months. >> not the stock price, jim. i'm not asking you about the stock price. i'm asking you about the ability to disrupt and the sector as a whole. >> i think we are continuing to come out with some pretty shockingly cool products i -- i'm particularly excited about the cash app i'm very interested in what crypto is, and after pay my wife uses it all of the time.

so i'm very excited about the product line is that the question or i don't -- >> it was more disruption overall or potentially unseeding some of the legacy players like visa and mastercard and what role crypto has to play and what role buy now pay later has to play do you think that disruption is taking hard to happen than initially thought. >> the rate of disruption is increasing if you look at what's happening in payments, we're getting innovation on innovation and innovation and you're building an increasingly fast rate of disruption throughout the entire market so if that's your question, yeah it's happening faster, and there will be a lot of other companies that will be doing amazing stuff and we don't know what it will be right now >> hi, jim it's jon fort. we could get some word on crypto-related regulation out of d.c. as soon as this week. what should the biden administration do? >> they should take it very seriously. i think what they should do is

give us some rules because one of the things that we know is going to happen is we know the governments will regulate and we don't know what the regulations will be and right now you have innovation that's happening in this vacuum and we're all worried that the regulation is going to be something that we're not expecting. so the clarity of that regulation will be helpful to everybody. >> and jim, finally, what do you think of crypto's role in the current crisis that we're seeing in ukraine on one hand it's played an important role and the transfer of money and donations and on the other hand there have been scams and confusion. if this is a testing moment for crypto and bitcoin, how do you think it's fared >> there are definitely a lot of scams and we're seeing funding for ukraine's struggle and we're seeing efforts to run around sanctions. it's another variable. and i think it will be positive and negative and based on how we use it and it's kind of too early to tell.

>> jim mckelvey, thank you talk to you again soon >> one more thing this morning, and that is the impact of the ukraine crisis on europe and specifically cloud companies doing business there our frank holland is watching that hi, frank. >> hi there, carl. >> it's an influkz for the software the russia-ukraine conflict has people rethinking workflow management 44% globally is in the globe and europe's lagged with a third it's under more scrutiny and it could be an opportunity for companies fighting for the last 15% market share left after aws and azure. mongo, and s.a.p. more than 44% and they saw that rise 23% last quarter and it is seeing remember double digit increase since the pandemic cyber attacks and hacks on

western companies and institutions are becoming increasingly likely. google's acquisition today also expected to create a new landscape for cloud and cybersecurity combinations and rapid 7 likely to be acquired. that's the latest. back over to you >> appreciate that we are not far from the high of the session although the dow is briefly green and we're above 4200 and let's get to the judge and the half. >> thank you very much welcome to "the halftime report," front and center this hour stocks trying to rebound from their worst day in more than a year is there more down side ahead. are we at or near a buying opportunity? those two key questions answered by the investment committee and joining us on this international women's day, stephanie link, kari firestone, shannon harrington, and shannon saccocia not too far from the day and we're green at least for crude, 127, everything else is red, though major avag a