next 6 to 12 months. >> we're in agreement. thank you, gene munster. a quick final check on the markets. right now we're going to open lower about 300 or 400 points lower on the dow make sure you join us tomorrow "squawk on the street" begins now. good thursday morning. welcome to squawk on the street. i'm carl quintanilla with david faber and mike santolli. the latest round of talks between russia and ukraine go nowhere. and february's cpi, all though no worse than expectations, it's still the hottest annual rate since '82. the monthly rate since october road map begins with the ongoing head winds for investors and consumers. inflation hitting the new decade high at 7.9. surgerying energy costs pushing prices even higher. >> there's no deal

it's the first in-person negotiations between russia and ukrainian foreign ministers. didn't end with a breakthrough we'll get a live update from ukraine. and the amazon split shares popping ahead of the open after the company announced $10 billion buy back and 20 for 1 in stock split. that's the first split inmore than 20 years. we'll start with the market volatility, obviously. the russian kmu yan conflict and u.s. inflation the big eco data print of the week. silver linings maybe used cars and trucks down .2. but look at the three month annual rate. 8.4 and 6.8 is hotter on the year on year. >> hotter on the year aon year. hotter than a few months ago one thing we were looking for in the early part of the year is used cars inflecting lower and a lot of those sort of core measures that were pandemic inflicted. i think that right now the market views inflation picture and ukraine as just mutually

exacerbating, essentially. and for what it means from the fed. obviously the market is incredibly sensitive to any ukraine headlines. deescalation, reescalation, incremental sanctions. but that's only because the economic effects of the crisis feed directly into the fears we've been living with for awhile now it's a slow down in the economy with a tightening fed and inflation is stubborn. that being said, s&p is now on pace to get back almost exactly half of what was gained yesterday. it's a consistent pattern. in liquidity, big jumpy moves, market trying to suggest there's a prospect of support in this area of the s&p 4100, the 4300 it's not about corporate stuff it's about the risk/reward after you had six or seven week construction, david. and, you know, we were talking about it yesterday, all the investment banks are out with hedge funds and have massively taken a risk level down. they've had a purge. we've had a liquidation.

>> yeah. i was talking about that yesterday. >> exactly. >> the numbers are pretty shocking i don't share a lot of them because the accuracy is a bit in question not the direction when it comes to many funds. they have taken the risk down, mike we talked about this a bit yesterday. we have great volatility every single day and, you know, i go to you and we sort of whether we can expect to sort of put in the bottom when we have the volatility overall. i would also then -- there's so much coming at investors now in terms of trying to understand not just what it going on, unfortunately, it continues to in ukraine what the impact will be on the economy and europe whether or not a real recession is very possible there. >> yeah. >> what the impact will be in the world economy and overall gdp. let's not forget the european union and the buying powers are pretty significant so this was a lot of things -- meanwhile none of the stuff seems to show up in the bond market not very much. >> not in the way you expect.

>> yeah. >> yeah. look out first of all, the european central bank surprised this morning it wasn't more hawkish statement. maybe rate hikes are in sight. in other words moving away from the direction of trying to be more accommodate given the slow down they have a single mandate that is inflation. >> yeah. i know but energy prices in europe. what are they going to be potentially looking at we talked about it those kinds of increases are hard to adjust we think it's bad here it's nothing compared to what they're dealing with. >> right the growth effects of that are probably more crucial to, you know, to the outlook for economies globally for companies than the inflation and the statistics it's going result in. ( i think we priced in a lot we don't know if we priced it.

that's always the way it looks we talk about the volatility it's twitchy market. i think about it as wide range of outcomes on the table geopolitically economically fed policy wised with a wide range of outcomes. anyone's conviction level to give a price is very low the market has to move far to find the oil you look at prior rounds of failed talks we had four rounds now when they have gone nowhere, it has resulted in a new russian offensive. if that pattern holds, perhaps we do set up for lower obviously everyone is trying to work with work arounds trying to increase domestic energy production, which was a big topic earlier in the week.

>> we're in an emergency we have to responsibly increase short term supply to stabilize the market and minimize harm to american families. i hope your investors are saying these words to you, as well. in this moment of crisis, we need more supply right now we need oil and gas production to rise to meet current demand. >> maybe the comment we've had regarding oil companies and their investors who have come to expect certain things. >> yeah. without a doubt. and it's, you know, it's a tough puzzle because, of course, there's a lead time to investing more and turning back on some production. so you are talking about months of it. >> you know, i saw some work today saying opec will be

motivated to some degree and there's actually some likelihood it gets crude down to 85 is 85 enough to clear the hurdle rates for a lot of domestic producers if they're confident in fact level? i think that it's move nag direction. u.s. production is higher than it's been in history except for a few months in 2019. >> right it's not like we're not upping it. >> right and opec is a couple million barrels a day below peak production it's not like the whole swing factor in the world. i think the messaging is, you know, getting more urgent for that reason. it takes you back to russia and whether or not the world will be successful in limiting their ability to sell and actually produce. and, you know, a number of people believe they're going to need foreign investment technology to keep a portion of the industry going don't forget exxonmobil the decision last week

they a number of partners there. it's unclear whether the russians will be able to do that as all the oil companies choose to basically lead the country. shell operates on a neighboring project, as well there was a question whether some will go in a permanent decline affecting their ability to produce in general. >> yeah. >> it's the key part of their economy. it's part of the story the key part of the story. there's a trang l hold only the economy. >> yeah. i don't know if you can say collapsing or when and if we'll see signs of it on the street, so to speak. but the ruble hascollapsed.

and saudi arabia ands which will bring brent back down to 85 by the second half of 2022. so, you know, supply and demand haven't been repealed. it's a matter of when it comes in terms of supply and, you know, that's probably a really bullish call for the overall economy and markets, if it happens that 85 -- >> yeah. >> the backside of the curve would suggest for it. >> yeah. you have a $30 premium in here $30 premium, if we weren't worried about scarcity, supply chain, inflationary inputs, pandemic reopening, and all that stuff and we weren't already at 80 and adding $30 if we were at

30 the stock market wouldn't be doing what it's doing now. we'll get to our reporter on the ground in ukraine. >> reporter: hi, yes the russians and ukrainians had the first high level talks in turkey and the ukrainian foreign minister said his expectations were low going into those meetings and those expectations were met. he said there was no progress made in achieving a cease-fire with his russian counter part sergey lavrov. they talked about opening humanitarian corridors, which just haven't been achieved they said one of the problems they've been having is coming to some sort of resolution on how to use which corridors the ukrainians said the russians offered corridors into belarus and russia and the ukrainians are saying those are just simply

unacceptable the ukrainian authorities are saying 400,000 people are essentially being held hostage in mario pal there's no way in and no way out. the ports were trying to open up the corridors and they just simply didn't. they have one humid corridor open up and the only place evacuations were made. the talks didn't bear much for the ukraine yan foreign minister didn't think they were going to. it's going to be more hardship right now. the ukrainians said in the talks that they were open to all diplomacy with the russians, but they are also willing to fight that was an indication that the russians are going to press on on the invasion of kyiv. so the talks were what futile. they did have to take place to

see if there was any room to bring about some peace to the people in the bee sieged towns for now they're going to be living without power without electricity. without water until some sort of corridor can be achieved for them unfortunately, the talks today didn't achieve that. >> >> okay thank you. i want to move on, as well, to amazon which is rising in the premarket amazon is only up about 4300 percent since last split the stock in 1999. but investors can look at it you have a relatively new ceo there. it appears, a., they have confidence in the business nonetheless it is there. they bought back stock for the first time, remember, in

january, i think it was, in many years. even more so, mike, you could say probably cares about the stock price. it's never an certainty when mr. bezos was a ceo. >> one take away from it cares about the stock price. once alphabet went for the split. it was the fashion of supporting it it is fashion on some level. it used to be nobody wanted a super high share price the split has some minor functional advantages. it used to embed math mall call jokes and things like that when they say probably induce split, it seems like everyone wants it and to the point of the new ceo, talking about the closing bell, there's some perhaps advantage in rebasing the stock at a

different number tlrsz a psychological. i went back to tim cook. he comes in in 2011. the stock raced higher it was considered to be steve jobs' problem. then the stock wallowed for two or three years and that number $700 was the peak price it was hanging over the company. you do the stock splis and $100 you're gold for the high nobody knows david, he reversed split just change the number nobody is saying, you know, it was $60 until 1999. >> it's true it has no real impact on the fundamental of the company. >> you wouldn't do if you felt lying the stock will get cut in half over long periods of time, companies split the stock.

>> yeah. wells said they think because of this to be, west it's a sign that investment intensity down shifting after a more sustainable pace to us is spending a fortune when we come back, the russia/ukrainian conflict. chevron up less than 25 in less than a month we'll look at oil stocks as we come off the sixth 2% move up or down for the s&p of the year more "squawk on the street" in a moment small businesses are fed up with big bills and 5g maps that are mostly gaps— they're switching to t-mobile for business and getting more 5g bars in more places. save over $1,000 when you switch to our ultimate business plan... ...for the lowest price ever. plus, choose from the latest 5g smartphones— like a free samsung galaxy s22. so switch to the network that helps your business do more

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let's take a look at the energy sector. up double digits since the beginning of the russia ukraine conflict joining us with his take on the oil stocks rally is neil dingman. good morning good to have you this morning. you characterize the crude market as having an incredibly high geopolitical risk premium embedded in the price. and what does it mean for what companies might do in response, if they view it as just a geopolitical risk premium, are they going to produce with the assumption these prices will stick around or not. >> i don't think so i think yo u said it earlier. the time needed disagree with the earlier estimates. one of the other i guess you

quoted if you wanted to produce one of my big ceos said if they want to produce today one they started tomorrow maybe they could add an incremental 5% by the end of the year the problem is personnel, drill pipe, across the board is tight. the cheaps will continue their capital discipline if they're going to maintain the capital discipline, they're also having their cash flows inflated by the higher prices doesn't that mean -- are they going to accelerate the pay down of debt in their buybacks or, you know, incrementally is there more to go around and they can also fund further production >> well, that's the thing. we wrote something a day or two ago favoring five or six names that have delevering to go you talk about oxy alot.

>> yeah. we had the conversation last week with darren woods at exxon and mike worth at chevron. i mean, that's the big question right now. what is the number going to be for 2022 how much will these companies buy back are they going to put more toward production, as well, or most going to go toward return of capital >> you mentioned, you know, darren woods it's interesting chevron, exxon, conoco said we're going to try to grow at least 20% to make up for some parts of the other

portfolio. i think it's absolutely wrong. >> and so those names that you were highlighting where they were already kind of actively deleveraging the balance sheets are which ones >> occi and continental

resource take a look at futures here. softball some things working against the bulls. not just the failed round of talks but brent relatively hot cpi, at least month on month, as we said earlier is the hottest monthly rate in a few months since october. more "squawk on the street" continues in aomt. men ♪ ♪ hey, i get it, commitment can be scary. but not when you're saving up to 15% with subscribe and save at amazon. you get free repeat delivery on your favorite items and if things don't work out, you can always cancel. seriously, no one will judge you if you call it off. ok! learn all the ways to save with amazon.

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verizon is going ultra, so your business can get more. coming off the best day for the nasdaq since march of 2021 take a look at the laggards leading us a little bit lower this morning a lot of chinese tech names on the list we'll get the opening bell in just over five minutes don't go anywhere!

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bitcoin falling below 40,000

as crypto currencies give back much of yesterday's gains. we know it was marked in part by the president's executive order on digital assets, industry. mike had the view about what could have been coming down the pike all though it wasn't all that granular, did get a nice bounce yesterday. treasury this morning saying they're going issuing some education initiatives. and take some pieces offering more crypto tools. >> yeah. there's basically an investment move among hedge funds you know, that's maybe a lagging indicator whether -- where the price has been even yesterday's bounce it seemed like a little bit of relief there wasn't anything specific to worry about. it it rallied up levels during the downside not that long ago it remains a risk appetite one of the better ones this morning, you know, i think it was hoping for more muted moves and keep today's range in

crypto and in equities maybe within yesterday's range as a start but, you know, the twitchy market is not really going to change at the 2-year note yield. racing higher over 1.7 the market feels like it'll have no choice but to get aggressive. >> right some discretion about the yield curve which hasn't moved as much as you might expect. some argue if it's going to hold yesterday's rally you the president it you can argue which matters more for the earnings whatever it is, but yeah it's sort of a challenge the yield curve is compressing when it's about to start hiking. it's been an incredible accelerated cycle in every respect. and i think that was really the case even before ukraine. >> right. >> we'll find out more next week, of course. we'll get to the opening bell on

the cnbc openingexchange [ applause ] suspending it above 30 and it's done that and three months, six months, 12 months after wards s&p up 80% of the time. >> yeah. >> that's usually the way it goes if you look at any indicator of extreme short term stress in the market, and that's the case with the level of the vix and the set up in terms of vix futures yeah that happens the market is on unsteady ground and working through something very difficult there's a lot of liquidation happening. you never know when it's going to end near term it's dicey odds of the market being higher 80% from the time 6 to 12 months

of the future. it's pretty comforting on a random sample you're up 60% of the time. it's a little bit of an edge it usually tells you this is the ratings you get. if you look at the surveys, they're about as bearish as it gets that's been that way for a couple of weeks now. 45% bears, 24% bulls that's about as pessimistic as you'll see it tells you how much more is to be sold. we came into the year retail and the institutions running pretty heavy. it's been whittled down through multiple compressions in the market not really yet through earnings estimates being revised lower. maybe it's a silver lining or another shoe to drop. >> yeah. another story, we, of course, are continuing to watch closely. the number of corporations there was more red on the board. the number of corporations

withdrawing from the russian market it will make jeff smile. the yale management professor who has been keeping track of this on our air, as well, talking about a goldman sachs this morning and the financial services industry. again, this is no surprise the level of business -- they supported the plants around the globe. and everything else and what they expect it to do they're not alone as they continue to see. they any number of companies continuing to doso

but tafd is right. handful of companies yesterday cat. some industrials and 3m and deere morning star is going to take some fixed income indexes. western union, honeywell aviation services between boeing, honeywell, andge. >> e yeah. >> 52% is not nothing. >> yeah. >> when you're talking about it trying to squeeze out top line growth in the businesses. >> yeah. >> and the other thing that came up in the press briefing yesterday is what happens if they follow through on their threat to start seizing some

assets of u.s. corporate's. >> yeah. >> obviously the relationship is completely deteriorated. >> to some extent it's the possibility. remember the russians supposedly had a war chest, so to speak the reserves of $630 billion some of the extraordinary things that have been done include the inability of the russians to access that money. the mechanisms somewhat complex in not allowing them to access the foreign exchange markets and support the ruble because they won't allow them to exchange but fascinating this has been done i'm not sure what the implications are it has come up in a number of conversations for others if you are the chinese and have trillion dollars worth of

treasuries as part of the reserves do you think about things a bit differently, perhaps >> right. >> in the future. >> right. >> yeah. and i don't know the answer. still trying to understand by which the mechanism is nonetheless it's a question. >> yeah. it seems as if it's just more -- >> yeah. >> of the global financial system and maybe more local reserves or diversifying the reserve. >> yeah. i think we'll be talking about the spillover effects for awhile. >> yeah. >> just in terms of how people decide to have an insurance policy against something like this you know, happening. and obviously the u.s. is in a unique position to be able to impose these types of restrictions on the u.s. dollar.

you have everything postmarked hit was leading the rally. you have back to form here. 1700% unanimity of buy ratings on the sell side that's just -- i think that's just the best of it being you can't fight the stock. it'll go up in your face if you get negative maybe somebody has to

capitulate. >> it's another one of those days yesterday financials were strong and energy was weak. as you might imagine, it was a reverse to keep an eye on chevron. we were talking with our guests earlier in the show about the companies and what is an enormous amount of potential excess cash flow and excess. let's just say large amounts of cash flow, which could result in significant return of capital by those companies. but the banks might also lower after a brief respite yesterday from a drubing this year jpmorgan held down over 17%. it's the worst performer of the big banks. wells fargo in the green, actually. >> yeah. wells has managed to hang on you know, the investment banks if you look at the action, they have given up a lot. i mean, capital markets bond markets are doing fine not a lot of issue chance. trading, in theory, there's winners because volatility is amazing. a key point to this low

liquidity which means a low willingness of middle men to step in. that shows you that people are much more focussed on risk of the downside when it comes to the daily market moves for now one final thing, i mean, the s&p 500 4220 we spent a lot of time hanging around in this area. so, you know, that's the big debate does it mean we have some kind of real fundamental stickiness to the support or, you know, is it just a shelf. >> mike, you mentioned the bond market the corporate bond market. jpmorgan will ask if it's coming its way. it was one heck of a bond deal they did for warner discovery. $30 billion. largest actually ever done at that level of the investment grade with that credit rating. and they got it done easily. there was over $100 billion.

at least peaked demand at over $100 billion, i'm told, by those who constructed the deal we don't need to go through the different parts. some interesting parts, though, the long end of the curve they actually did better in a way than they perhaps anticipated. one would imagine given inflation and everything else you might see more of an effect on the short end it was not the case. i'm told they could have gone up perhaps another $10 billion in amount, if they wanted to, without affecting rate significantly so that does give you a sense as to the health of the corporate bond market right now. this is the low end of investment grade companies will be four and a half times levered but there's an expectations it's going to delever very quickly of course, this is being taken on in parts of pay, at&t, and, remember the spin is forthcoming soon in fact it'sfriday

starting with notes due in 2024 and notes due in 2062 to give you some sense. >> yeah. >> a small amount but 40 year. >> yeah. 20 year $7 billion they got it done at 5.14, as well s obviously it passed with flyingcolors

gause you can get an higher rate now. the high yield is suffering a bit. those who might have looked at it are willing to go up to triple and say, hey, i can get the same yield i might have a few months ago with, obviously, less risk i'm told weaker credits and high yield now are not getting done because why not stay at triple d land if it's more or less the same yield you were able to get from the likes of junk. >> right. >> not that long ago this is a big success for the underwriters and for discovery. >> yeah. it's essentially a new issue it's something that stokes demand they want to capture it. even the maturities. they know what the demand will be in each maturity. >> yeah. it's not a surprise it got done. it's bullish b.b.b. is kind of the blended credit rating for equity

issuers. >> this is -- >> yeah. so it's compressed, you know, a little bit it's a net bullish thing. >> over 500 investors participated in it. >> yeah. and take a look at the 10-year note still below 2%. >> yeah. >> and at&t and discovery. >> yeah. at&t, man. oh. >> yeah. the rates for me were very low. >> yes across the board. >> yes so, you know, that's not something. >> yeah. it's reacting to equities. at least so far. >> there are a handful of smaller corporate stories. peloton interesting piece in the

journal about potentially testing a new pricing structure in which you would get the bike and the subscription, mike, on a monthly basis. they'll test it in texas, minnesota, colorado. somewhere in the range of $60 to $100. >> yeah. there you go. >> yeah. strategy essentially. >> yeah. >> along with a netflix going to price hike in the uk there's running commentary about disney's reversal of don't say gay bill in florida. for the time being, the macro story is the only story. we'll get to bob. >> good morning. yeah, you won't get the dow going up chevron is up not when you have microsoft, intel, sales force, apple all up 120. the dow points are four or five. then you have jpmorgan and goldman sachs down another 0i6z points you have two points for six or seven big tech for financial names. look at the sectors today. yes, you have energy up. you have halburton and slumber

shea and chevron up. it's not offsetting what we're seeing on the dowd sign. metals are doing a little bit better overall we're seeing tech, though, most of the big tech names are down semis are week, as well. banks weak, as well. the airlines, once again, showing signs of decline you can't trade this market. i mean, it's really just impossible to trade it because of the interday price swings the issues -- we know the issues they're obvious here we need evidence that inflation is peaking out you can't find that kind of evidence during a war on top of everything else that we're dealing with that's the fundamental problem we don't have an answer for this question we were dealing with reflags before now we're having to deal with the possible issue of stagflation. look what it does to the market. look how it changes the market dynamics what we've been dealing with for the last 10 or 12 years is low inflation, low commodity prices, low gold, and high stock

returns. we are now in the exact opposite situation. we're in high inflags, high commodity prices, higher gold, and lower stock returns. it everything has been inverted and the market is having a hard time figuring out what the right levels should be with good reason there's not an obvious, clear answer what the market is doing is correcting a global correction europe is down 20% because that's bearing the brunt of the growth slow down reflected in the ukrainian crisis china has been in a slow motion meltdown since the early part of last year. it's down almost 40% from its highs. the broader indexes. the broader china indexes. the s&p 500 down 11% comparatively, i know there was a lot of internal damage but comparatively on the broad u.s. market, worth having the least of the damage. amazon had an interesting announcements on buy backs i want to point out something. it's not about buy backs it's about share count

reduction. it's about increasing earnings per share because the share count reduction increases earnings per share amazon is the opposite of the buy back they have been consistently increasing their share count since they went public in 1997 here you see from 286 million shares in 1998 to 580s million today. it's nice they're having a buy back announcement. let's see if it results in a share count reduction which is what we want to see. we'll see. remember, this is a giant hamster wheel of all the companies. buy backs and at the same time they give more options out to the executives on the back end we also have, of course, a 20 for 1 stock split. it's interesting it has been studied for decades. stock splits do not create any value. it's the same evaluation in theory, it shouldn't matter the evidence is it does. it does lead to higher prices for companies with split stocks. they mentioned it this morning

the research is decades old. companies in a split stock a year later generally are 25% higher it goes back to 1980 the s&p 500 averages 9.1%. it seems to be a difference. why, carl? it's probably because these are companies that are doing the stock splits already have momentum behind them so there is a little bit of psychology here. a little bit of behavioral economics that are goingon back to you. >> shiller would have a field day with this. bob, thank you it's time for the bond report take a look at how treasuries are faring in the wake of cpi. as we mention the earlier .8 we have the 10-year just a shade

below 2. it's going to be pretty much the highest levels since about february 25th. we'll be right back. ♪ feel stuck with credit card debt? move to sofi and feel what it's like to get your money right. ♪ ♪ move your high-interest debt to a sofi personal loan. you could get out of debt sooner — and get your money right. ♪

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for a moment we had three components in the green. crowdstrike, amazon, netflix, that's broadened out to include marriott and activision. clearly, severe negative breadth this morning adds the dow is down 314 d back in just a moment. what the world needs now... is people. people who see healthcare a little bit differently. where technology helps doctors provide more precise care... leading to faster, better outcomes and puts improved health in all of our hands.

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disney's ceo weighing in on that florida bill that refrikts lgbt topics in schools julia joins us with the details for us. >> well, david, disney's annual shareholder meeting the ceo responded to the criticism for failing to come out in opposition to that so-called "don't say gay" bill in florida. he said they chose to not take a public position because they thought it would be more effective to work behind the scenes with lawmakers on both sides of the aisle take a listen. >> i called governor desantis this morning to express our disappointment and concern that if legislation becomes law, it could be used to unfairly target

gay, lesbian, non-binary and transgender kids and families. the governor heard our concerns and agreed to meet with me and lgbtq+ members of our senior team in florida to discuss ways to address them. >> i said disney is signing a human rights campaign petition against such bills that are being proposed across the country and donating $5 million to work to protect the lgbtq+ community. now, though the rest of the meeting wasn't as expected, shareholders approved one proposal that disney opposed 59% of shareholders voting in favor of a report to disclose gender and racial pay equity data disney spokesperson telling us in response to that, quote, we appreciate our shareholders' view on this important issue and the board accepts the results of today's vote the company is committed to pay equity and we will continue our ongoing work on this front, including addressing interest in

greater transparency around our efforts. now, shares ended yesterday about 1.5% higher, but today disney shares are down about 1% this morning guys >> julia, yesterday there was some stories about pixar's lgbtq employees saying disney krens sers some same sex affection you know, it struck me as interesting. i don't know if it puts any pressure or if there is more to that part of the story i'm curious. >> i don't have any more on that particular part of the story i think it's worth noting, david, this is a key test for chapek in terms of how he addresses these very complicated and important to many people social and cultural issues his predecessor, bob iger, did over the course of his career start to take more and more of a public stand on these issues, speaking out on issues such as gun control and this is really a

key opportunity here for chapek to really set the stage for how he is going to address these issues going forward bob iger tweeted about this issue, about the don'"don't sayy bill in february and this was the first time we heard chapek talk about it. carl. >> a lot of people saying, i'm with the president on this one thank you. we are off the lows. dow session opening low was about 403 to the downside. currently shaved that almost about in half. we're back in just a moment. [sfx: street ambience] ♪ ["fly me to the moon"] ♪ ♪ ♪

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welcome to another hour of "squawk on the street. i'm carl quintanilla with david faber. morgan brennan is live in washington, d.c. got another failed round of diplomacy. cpi running at a 40-yore high. open down 400 on the dow, down 166 and holding on close to the neighborhood of 4250 morgan. >> 30 minutes into the trading session. herer three big movers this morning. crowdstrike shares soaring after the company topped estimate and issued an upbeat forecast as

cybersecurity demand grow the. you can see shares up 13.5% now. mega-cap amazon also in the green after announcing a 20 for 1 stock split. also a $10 billion share buyback plan first stock split since 1999 we will have more how that could help the stock later this hour you can see the amazon shares are up 5.5%. finally, keep an eye on ge today. investors day gets underway reaffirming 2022 guidance, setting multi-year targets by segment, reiterating the forecast for $7 billion plus in free cash flow next year i'll be talking to ceo larry culp on "the halftime report" later today. you don't want to miss that. it starts at 12:00 p.m. eastern. david. >> okay. in the time russia and ukraine failing to reach a ceasefire deal after stalled talks between

the foreign ministers of both countries. kayla has the latest for us. >> fourth round of talks in a turkish city on the mediterranean failed to produce any compromise after russia dug its heels in on bending on demands. ukraine's foreign minister after the meeting telling reporters russia's foreign minister would accept nothing short of a ukrainian surrender and telling cnbc he did not have putin's blessen to broker anything else. >> definitely he did not have sufficient amount of authority to make any yields today he came to talk, to listen, and i very much regret because it was, you know, more people will die because of his inability to make decisions >> across europe the biden administration trying to bolster alliances in a major diplomatic test, vice president kamala harris visiting poland saying the nato partnership remains ironclad despite a disagreement over the delivery of fighter

jets to ukraine. announcing a new if small tranche of humanitarian aid while congress last night passed a larger $14 billion package that will begin to flow out in coming days. the white house now warning the kremlin may use chemistry and biological weapons next and says russia's claim that ukraine used them first is false. in a new video overnight president zelenskyy saying russia wants to humiliate our people so they kneel and take bread and water from the hands of the occupy hers so that the ukrainians can escape only by going to the occupied territories or to russia that's why they are blocking cities zelenskyy saying more than 60,000 people were deported from the occupied territories just yesterday. all the while, russia's bombardment continues, hitting a hospital for mothers and babies in the southern port city of mariupol zelenskyy saying that is yet another war crime. carl >> kayla in washington, thanks. as we mentioned earlier, in the united states consumer

prices hit the high lest level since january of 1982. steve. >> good morning. the february cpi confirming even before the russian invasion of ukraine inflation in the u.s. was hyak celebrating and broad based and it is about to get worse. here are the numbers nearing 8% 0.8% month to month. 7.9% year over year. take out food and energy and it's still high. 0.5. 6.4% year over year. inflation minus the earnings declining at 0.5% rate where the inflation was, it's 6.6% on gasoline i have seen numbers that it could be 20% in the next report. food up strongly, apparel and housing. that's a big driver of the inflation numbers. only used cars providing a little bit of good news there.

that was at a prior driver of inflation now declined 0.2%. whatever issues the u.s. faces from the invasion, they are worse for europe european central bank president became the first to talk since the war began and said this morning inflation is expected to be higher by almost two points and growth lower as a result of the invasion decided to accelerate steps to remove accommodation. >> the russia/ukraine war will have a material impact on economic activity and inflation through higher energy and commodity prices the disruption of international commerce and weaker confidence >> okay. next up, the fed and fed share powell reacted to the invasion and coming surging prices in the u.s. the markets are priced a quarter point at the march meeting and six overall this year. we will see if it that changes

next week. >> thank you for more market reaction, dianne and marg. >>gy so many people have had been hoping that february would mark the peak for cpi that we would see the consumer move to services get some goods deplace. to those hopes need to be postponed? >> absolutely. these were as steve pointed out broad based gains in goods and service sector prices. the economy opening up in response to omicron and certainly things like hotel room rates, airfares and rental car rates all soared they really skyrocketed during the month. and that's at the same time that the goods pressure was still there. everything to do with housing, housing furniture and appliances also continue to accelerate in price. so even that little bit of a give up from used car prices that are up staggering amounts

from a year ago, that's not enough as steve pointed out, there is more in the pipeline we will see worse numbers as we move into march in food and energy but you are also seeing a real squiez here in things like hospitals. hospitals are getting really hit because they are starting to move back into elective surgeries that were postponed during omicron and they are facing acute shortages of nurses in rural areas that is meaning some hospitals are squeezed so much that there is a fear of mass failures in rural areas and that's going to limit access to health care in those areas. >> all right got the ten-year back above two. the odds of a 50 basis point move in march are now down to 2% but what codo you think the pla look looks like for the fed? are you thinking about writing a piece that mentions stagflation? >> no. i i think the fed is going to continue to talk a lot tougher

than their actual actions. i think a 25 basis point move is what we should expect. that's very mild putting aside inflation when you look at the treasury curve over yields, pretty much up 50 basis points, half a percentage point. in other words, the curve is really done as far as raising rates. and i think the fed with all the uncertainty about the crisis in the ukraine, with the skyrocketing inflation and the fallback financial system, i think they are going to be very, very cautious about raising rates, but not simply have blinders, look at the inflation number and see we need to raise rates six time i thill they will be slow, it will be on the side of being more slow to raise rates and i think that's appropriate under the circumstances. the fed is the one that is precip stating -- by slamming on the brakes, causing credit defaults i think they are doing the right thing. that is a good backdrop for the economy, actually. >> dianne, how real is the risk

potentially of stagflation here and if you have a fed that you wants to counter that potential risk, does that mean we will see weaker growth, even a recession as the likely price for beating inflation? >> i actually think we are i think we are already in a place where the fed had to slow down the economy to a stall speed, not a technical recession, but not enough to keep the unemployment rate from rising again by year end that was where we were prior to this invasion. and so i think this, unfortunately, ups the ante there. it is through the fed is walking a tightrope. chair powell is well aware of the fact that he needs to raise rates to stem a repeat of the 1970s. there is a slight risk of that occurring. he doesn't want that on the table. seeing the ecb actually worry more about inflation than growth today is an important lead indicator where the fed is going as well because they are very aware of this reminisce sense of sort of siri resemblance to the

1970s even though this is not a repeat yet they do not want to have that occur. but the tightrope is to not allow financial markets in the u.s. to -- they want them to tighten but not a credit seizure that would be a much harder landing for the u.s. economy and they don't know what all the spillover effects of a default in russia or another developing economy may be that said, i think the fed is going to put inflation first and talk about a series of rate hikes in their statement after they do this a 50 basis point rate hike at one of the meetings is certainly in the cards i think it's possible we get seven rate hikes this year >> wow i want to come back to you a couple of points in terms of the ecb, spillover effects, your title is global investment senior portfolio manager what about europe? are there managers there or should we be running away from it? >> we have seen in the last few

months how risky to invest outside the u.s. and the economic influences on europe so i think the u.s. is best i think we will have the best financial markets this year. and again to say the fed may talk tough, but it's hard to see what they would have -- pat themselves on the back by aggressively raising rates, causing unemployment to go up after the average wages of our workers has been sfagnent for 20 years. hard to see why they would think that's a great idea. i think the fed will say we can go slow on inflation, we don't know consumers have a lot of excess savings. corporations have great balance sheets, positive cash flow all the fed needs to do is be on the sidelines, let the economy continue to grow we have a lot more growth than any place in europe. so i don't think that's really an attractive place. i think the u.s. will surprise people by how well it does by the end of the year. >> as we watch the ten-year cross the 2% threshold

you mentioned europe hoo it should it be a key concen it's a big part of gdp not to mention for china's economy as well how closely are you watching the fallout when it comes to things like energy prices which have risen dramatically and conceivably will continue to so? >> exactly we do expect europe to really take it on the chin here you are talking about some parts of europe that will flirt with stagflation, which is why the ebit ecb is concerned about inflation, even more so than growth, even though they will get hit on both sides. and china is an interesting sort of outlier out there because china, our analysis is that they contracted in the fourth quarter even though they said they increased 4% in the fourth quarter. they have been struggling and what we are watching as well is the omicron wave in hong kong, china was using that as a sort of way to open up in the wake of

the pandemic and in fact it's gone very much the wrong direction for them and i think we have got record hospitalizations and deaths now in hong kong, in ponresponse toh omicron wave there that's going to be hard for china going about forward. so i think that global growth is very weak. all that isn't enough to derail some of this inflation and what the fed is watching really closely now, too, is inflation expectations have picked up and that's something that you don't want to get entrenched we are not to the 1970s. we are getting it to a different place, in a different way, but it doesn't matter. the fed has been surprised by inflation, been persistent and is going to persist longer and hotary and more broad based than they'd like and that hurts those who afford it least. if they have to take a dramatic slow down, hethey'd rather that than something that goes on for years. >> finally, how are you pricing in the risk of the geopolitical situation as it is playing out in eastern europe now? i ask that because we have had so many guests on our air.

>> market guests in the last couple of weeks who said they hope and they expect and they are investing as if this could potentially be a short-lived scenario i was at a defense conference in d.c. yesterday and there was not one single person that i spoke to who didn't say that they don't know how this is going to end, they expect it to get worse before it gets better and this is a situation that could potentially drag on and accelerate for quite some time so how do you see it as an investor >> well, i am not a military strategist but from an investment point of view, as i said, the u.s. looks as if we're poised to grow low-to-mid single digits this year and into '23. we felt that we are seeing accelerating growth in all the emerging markets inup u europe this trend we are seeing now is really nothing new, maybe nor exacerbated. we think that the u.s. with not only our basic growth but also this, i think, tremendous drive we will see increasing reshoring american production, bringing

production back to the u.s. is going to be an added boost for the u.s. th why we think u.s. growth will be stronger the real risk would if the fed decides they have to go back and dust off the history box from the 1970s and decide it's a good idea to precipitate a reception and throw millions of people out of work. better to live with inflation, try to control that, see what happens to employment, which is their dual mandate and i think their most important, what happens to workers' wages, how can corporations continue to function in inflation. don't forget the corporations have been very successful so far in as passing on price increases. u.s. companies look good here. i think it's a good opportunity with so much negativity coming down upon us >> dianne, margie, thank you. as we head to a quick break, companies continuing to pull out

of russia. we will break down how the ev market could potentially take a hit from that conflict then remember new york is dead well, it's coming back to life, at least according to one of the biggest real estate companies in new york city. we are going to discuss that with bill rudin. >> finally, all that glitters isn't gold when it comes to crypto a look at some parts of the eishe a that may be losing thr inas big hour continues. stay with us just an investo, 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.

the street." it's now time for our "etf spotlight. the energy select sector this is spdr etf ticker xle. up about 0.5% now as oil continues incredibleably volatile ride higher amid the conflict from ukraine. almost almost 10% since early february we have seen a roller coaster on the chart in the meantime. top holdings for this etf, exxonmobil, chevron, two names that make up more than 40% of the fund and have been on a tear since january. up more than 20 and 30% respectively resqwkn the street" straight ahead stay with us r mission is to help our members achieve financial independence to realize their ambitions. getting your money right requires more than a financial service provider. it requires a partner that is there for every major financial decision in our member's life and all the days in between. today we take our greatest step yet forward fulfilling our mission

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welcome back to "squawk on the street." at this year's defense programs conference russia's invasion of ukraine was of course front and center a big topic. it's something i discussed with senior defense officials throughout the day, including the air force's secretary, frank kindle. >> this is a huge tragedy.

it's terrible to watch to unfold president putin made a horrible miscalculation but an awful lot of people are paying the price for that my rule as the secretary air force is to organize training and quipping our air force. we provize those forces to the combat commanders to do the things we need to do to shore up nato, to ensure that nato is secure, and to do that we can to help the people, the refugees in particular, and others and in some cases to provide some fsupport to ukraine. >> including collection of the intelligence data that is ultimately supplied to ukraine forces i discussed with general mark kelly, who is commander of the air force's air combat command as well. while the russia threat may be immediate, the longer-term, bigger concern or pacing threat, as many officials call it, remains china. this was a key theme at the conference and it's something that secretary kendall discussed at lenk since he felt compelled

to go back into government service specifically because of china's growing might. >> they have been modernizing china in particular and we have to respond to that the force that we have today, the air force in particular, is composed of 30 year average age aircraft and we need to get to the next generation. we also need to take advantage of technology. it's changing rapidly in a number of areas, including commercial areas and we need to integrate that into our weapons and think about how to exploit those technologies so it's my highest priority. >> is this a situation where we need to maintain the lead or are there things that keep you up at night when you think about some of these investment priorities >> i have seen the way they are investing and it's clear that what they are acquiring are what they think are the means to attack our greatest -- the high value assets and to keep you us out of the region they are trying to require the capability to deter us from

intervening if they do something, such as try to seize taiwan if we intervene, to defeat us. that's the threat that we face. >> looking to china and asking that question about how real is the risk that you could see an invasion currently of taiwan, how do you see it? >> that's very difficult to pro predict. you get different ideas from different people it depends how they assess the risk and how that risk is changing over time i don't think we should feel tot totally comfortable today. i think the situation gets worse as time goes by unless we do the things we need to do to respond. >> what are the type of technologies that you are looking to field and how quickly can you do that? >> i am working on a list of seven what i call operational imperatives. get get space is kcritical to our ability to project power china and others have within acquiring the capabilities to attack our assets in space and to threaten our forces, our

joint forces on the surface of the earth. so we have to deal with that we have to get to a way in which we can take greater advantage of modern technologies for data fusion and automation and decision-making. we have superior decision-making. we have to strengthen the resilience of our bases. there are a handful of air bases in the region that are well known and targetable we have to strengthen those and make that problem harder for our adversaries. we have to acquire means to acquire their targets, the targets they present to us more effectively. and twoef look at everything we count upon to go to war. all the things that we rely upon to mobilize the force, to move it, things like our personnel systems and so on. so everything that we would use to if to war is potentially going to be attacked, particularly by cyber means and also by other means. >> now as the world grapples with supply chain issues and inflation, the pentagon has not

been immune and it's contributing to increased jscru think for a defense interest that is highly consolidated the last couple of decades lockheed martin's attempt to buy arrow dine was blocked by the governor this year i asked him how he would assess the health of the defense industrial base. >> i have had concerns for some time about the degree of consolidation among the prime contractors and the amount of competition that still exists as a result of that consolidation also affects the political clout that contractors have and the degrees to which they can get things in the budget that they want rather than ma we might need for national security. >> interesting from the man who quite literally wrote the book just a couple of years ago on defense acquisition, but all of this is playing out as the biden administration prepares its 2023 budget request first though the focus right now is on 2022 because the clock is ticking for the senate to pass that omnibus funding package that the house passed last night

which would finally fund the pentagon for fiscal 2022 the defense budget in this bill, guys, it's up 5.6% speaking to, of course, the fact that we are seeing these defense spending budgets not just here in the u.s., but the world over beginning to climb david. >> thank you yeah, those numbers are staggering and since the start of the year, speaking of numbers, amazon shares have fallen double digits could a stock split be the key to a turnaround? well, it's starting to have an impact today that along with a $10 billion ybk. we will talk about it. don't go anywhere. ♪ ♪ 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,

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. welcome back i'm rahel solomon and here is our cnbc news update at this hour today's talks between the

foreign ministers of ukraine and russia produced no progress. ukraine says that russia is seeking what he calls a surrender and this is not what they are going to get. he is, however, he says, willing to keep talking. and poland with the meeting for the country's president. vice president harris calls for an international war crimes investigation into russian invasion she called the attack on a children's hospital that killed three people one of many atrocities. russian president vladimir putin says sanctions are not legitimate and any problems they cause will be overcome at meeting with advisors he accused western governments of deceiving their own people. and goldman sachs shutting down business operations in russia it's one of the first major global investment banks to exit the company. carl barks to you. >> thank you. and amazon shares higher after announcing that 20 for 1 split. the $10 billion buyback. what does that mean for the stock?

dom chu has some predictions. >> the near term precedent means it could go higher for many of the mega-cap names with large share prices maybe sentiment does improve when you make the share size a little bit smaller even though it does nothing to affect the fundamentals or evaluations of the company. the examples we have, alphabet, 20 for 1 split announced in february 7.5% gains that day. kind of flat one month later, 2% down to date a lot of that probably has to do with the nasdaq sell-off we have been seeing, the issues we are going through now, the market. alphabet one example also another example of another mega-cap company, one of the other ones out there, namely, kind of at least going through shares of apple. apple split. by the way, it was back in 2020, it actually gained 10% the day of the split announced 35% gains the next month, 54% the next year.

again, you can't glean a lot of that because there are other factors at play. and then one other place to look is what happened with tesla. we remember microsoft split, rather, two for one on february 13, 2003, 6% the next month, 10, 15% gains there. then tesla a recent example there as we close things out 30% over of the next month, 186% the next six months and 150% the next year. by the way, with tesla's split you can see at least in the charts this is kind of where it happened over here you can see where it went from there. so tesla shares maybe some indications that it does improve sentiment, guys. >> yeah, certainly seems to show some confidence there as well. thank you. after the break, new york city workers are returning to the office, but how fast and how many we are going to get a read on the recovery, ceo of one of the largest real estate companies in our fair city. stay witush

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google calling employees back to the office thisly two years after covid shuttered many places. here to discuss the tate of reopenings bill rudin the cochairman and ceo of rudin management flies to have you here in person. >> i hear i am the third person to come on set i am honored i think it speaks volumes to how we're, you know, changed particularly from we were having this interview a year ago, i would be on zoom. >> without a doubt bill, i do, you know, we covered to closely, the return to office because it's an enormous story for corporate america. still remains very much unclear how many -- what percentage of people are going to return once we are really back to normal what is your sense as to the new normal because it doesn't tfeel like it's ever being to be 2019 again. >> hard to say where we are going to go.

we look at the stats, we look at where we are today, most buildings are over 50% our portfolio and it's probably tracking well in other own earnings, some buildings in the 70 or 80%. some are low depends on each company and what their requirements are you mentioned google starting next month, early next month everybody's back so it's over, you know, probably 10,000 to 12,000 employees very important sign. >> yeah, they are back but not five days a week. >> not back five days a week but some companies are and i think we have never been in this position before. and we've had these types of discussions back in, you know, after the dot-com bubble after 9/11, after sandy. i sat outside beinginterviewed e of your former colleagues. nobody is coming downtown. nobody is going to go in a skyscraper and we've resolved our way through these things

do we have to do different things for the buildings the answer is yes. most owners who have the wherewithal and the capital are putting in amenities, putting in, you know, more hospitality focused bars and wellness centers and conference centers to incentivize people to come back to work and where that goes, we're not sure but we're definitely seeing more activity and also a year ago we were sitting here, we would be having a discussion about the residential market and i would be honest and say very nervous, scared where we were we were at 85% today we are at 97% occupancy. >> i want to talk about residential. the bifurcation is significant you have residential and commercial we don't know where it's going to end up. some of those comparisons, it's different now. remote work is here to say. >> no question. >> flexibility of employees, they are demanding were the employers. that is never the case it's not clear when you think about your space, do you see any repurposing at

some point down the road or, you know, in particular for those perhaps lower class office buildings that still are plenty of them around in snrk city. >> no question there is a bifurcation between class a and b. we have been to this party before right here in this neighborhood in the '90s 30 million feet of vacant space out of 100, 30%. we work with the mayor and the governor and the state and we came up with a downtown plan this plan in the early '90s, voila, we went from 10,000 people living in lower manhattan to today 70,000 people so that brings restaurants, retail, you know, it brings a whole -- you walk out, you see the kids and the strollers and the scooters and the dogs. i was -- my wife and you took our granddaughter to the new battery place space around the corner on sunday it was a beautiful afternoon, packed then we went to the -- to washington square park

the other grandkids, packed. >> glad you are seeing the grandkids. that's good. >> definitely. but on the commercial side, and what -- so the mayor and the governor, who are we think working very well together, both talked about using this downtown model of conversion to look at other buildings in the city that are obsolete and that are, you know, that can, if they physically can, be converted, thatwe have a tremendous housing shortage we need additional product so how do we do that you need incentives, you need the zoning changes so it's a public/private partnership. i believe that if those pieces could be put together, you will see that same trend happening. and then just in general, on the commercial side, you are seeing deals done that's my data point so 80,000 feet at 550 madison. estee lauder renews and expands

in lower broad kay morgan stanley takes 400,000 feet on park avenue plaza. alpha signs -- >> takes, yeah. >> no, i know. >> alpha sites, sorry. >> 100 park avenue, 300,000 feet ben tex. and then layering crypto companies. they have taken 500,000 feet this last year we signed a 10,000 feet tenant with a company called ephiphany. then you have life science so what hnew york has done is adapt. what's our strength, our diversity of talent and people, the ability to access capital, the human capital as well as the financial capital, and we are going to build off of that, tough two years. no question about it and we'll have bumps along the way, external events happening

around the world. >> sure. got it get carl in here. >> i wonder what you make of nba games, tsa through put, open table, box office. people are doing stuff but castlethrough put office card swipes are stuck? the 30s. maybe the only thing that will fix it is if the labor market loosens up, right? >> yesterday came out with the job requirements, how many jobs are out there. i think 13 million jobs. so those -- and also to me it ties in, yes, people are coming back they moved back from florida everybody said they are never coming back. they are back. >> plenty of hedge funds have moved to florida plenty of big earners moves to florida. i make phone calls and people are in florida. >> and also infill of companies like crypto or life science, technology google bought their building for over a billion dollar. and they are -- to me the fact

that these companies are taking space, looking over the horizon. why are they taking space? not because -- they are not taking because people are not coming back to work. they anticipate the people come back to work it will take a little time as i said a year ago, you know, would i have said to you now back then that we'd be at 90% ok pan any no way. >> let's talk about residential. that is interesting in the sense of we are back to where we were in 2019. >> correct rkt in terms of even rents. who are these people in they love garbage, huh, scaffolding >> you had the mayor on last week. >> we did. glad you saw that. >> and you guys asked him the right questions. and he answered the correct way. quality of life, crime, subways. he knows how to reach out to people in the business community, people who have lived there, lived in the city for 50 years. he is a man of the people. he wants to get the city --

>> you think he will get it moving in the right direction? >> yes and he understands what it's going to take. and you spoke to goldman sachs the other day. he is encouraging people to come back to work. >> i know. he is saying you have to come back because somebody else's job -- it's not clear it's going to work. >> also the message is, if you are pitching xyz company and you are pitching xyz and your team is in the office and d collaborating and you're on zoom and you win, you say what was the secret sauce the secret sauce is connectivity, people together, pitching ideas, you know, having that beer afterwards or whatever your cocktail is. >> you are preaching here. we're believers in that. finally, what's it going to mean for rent? in terms of the commercial tenants, how bad -- is the worst over >> i would say we are heading into the point where we're starting to see deals. i heard this last night where a

tenant had a lease out for a year then all of a sudden somebody else came along and what took their space that other tenant is not going to look for other space. they never signed the lease, covid, whatever, and so for the high-quality amen advertised buildings that -- we made a deal in times square with different type of user it's a college it's at the base of the building we built a separate entrance then the rest of the building we are going to rent out to financial service tech firms we have full amenities if you are in for a tenant, today is a good time to be in the marketplace. you are getting very good deals. i don't know how long does that last is it six months, a year but we are seeing deals done and in february and january you had over 4 million feet of leases with key tenants. there are other large deals out in the marketplace that are in

negotiating. >> finally, because we have to go, this idea of conversions can be expensive and a lo of what you are talking about is 1960s era buildings that aren't as easy -- >> i have a few of those. >> there is not as much light and space that comes into them you think that that's viable >> it is viable with the right regulatory structure and we have proven to downtown a lot of the same characteristics for the buildings right around - >> but some of these are older. >> some built in the '60s. you go on water street, 1930s buildings and 1970s buildings. it depends it's not an easy task. we are going to have to come up with the right financial structure and tax abatements, provide affordable housing, very key for the growth of our city, and we'll get it done. as we've always done. >> yes the ever optimistic bill rudin

he has been right, though. >> yes thank you. >> thank you for being here. >> okay. >> nice to see you >> thanks, guys. as a former lower manhattan residents, the transformation down there the last 20 years is incredible i have to say that as we head to break, take a look at cryptocurrencies. bitcoin falling back be low 40k. you can track all the action on cnbc tonight though on crypto night in america that's at 6:00 p.m. eastern. we're back in for two. worker's comp can crush a small business. every year it would jump 5, 10, 15, 20 percent -

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inflation hilts a new four-decade high this morning at 7.9, surging energy costs pushing prices higher and the real-world impact, those rising prices hit low income, rurally communities the hardest. joining us is the ford

foundation president, darren walker to talk more about this good morning good to have you back. >> good morning. >> this is troubling because it was the lower tur siel of the income brackets where wages had been managing to stay positive on a real basis, and a lot of this inflation, given their share of spending on energy threatens to derail even that. >> there's no doubt that inflation has a disproportionate harm on lower income workers, but if we take a step back, we have to acknowledge that in a low inflation environment, the low inflation environment we have had the last 15 years, workers overall have lost ground and so now we're going into what may be a period of high inflation. again, we're concerned about especially as you said the lower tur sher yar who have been less resilient. so i guess the headline can't be

to average working americans, in a low inflation environment, you lose and in a high inflation environment you lose but we have to devise policies, public policies, and private policies of employers that actually lift the average american worker up the implications for our society of workers falling farther and farther behind are profound. our democracy will be at risk if the average american worker does not have trust in their employers and in the economic system that is supposed to produce for them shared prosperity >> what can be done, because broad stimulus seems to be unavailable at this point, although we might -- i would assume we're going to maybe begin talking once again about

that expanded child tax credit or something else? >> absolutely. policies like expanded child tax credit are critical to providing working americans with the resilience that is going to be necessary to weather this storm. and i think we just have to keep in mind what the implications of this are for the lives of average americans, not people like you and me because we are resilient in the face of even a high inflation environment but the average worker will fall farther behind >> darren, it's morgan are there things the ford foundation is specifically doing to address this? >> well, the things we're doing to address this are supporting organizations who are advocating for workers. what philanthropy can do is not fill the breach, but what we can do is support the institutions, the research, the policy ideas

that can be i think the kind of level-setting response that's needed here. >> i want to shift gears, darren you also announced in the last 24 hours or so that you're donating a couple million dollars to different organizations to support ukraine and the situation that's playing out on the ground there and the civilians that are being impacted talk us through that >> so, what's happening in ukraine is epic proportion, calamity it is a democratic country that has been attacked by an authoritarian regime and on the ground, what we're seeing, will be ultimately millions of people having to leave their country, leave their homes and many of them in the millions potentially, will have to be resettled. so we are supporting the international rescue committee,

the democracy fund for ukraine, to support civil society organizations. but then we here, morgan, in america have to ask ourselves, what are we doing to prepare i was pleased that our governor hochul said and reminded us that new york city has the largest ukrainian population outside of ukraine. and so we need to be preparing for resettlement our government in washington, the president, made a pledge of 120,000 slots. what are we doing to start processing those people? it's a critical, critical question right now >> darren, thank you for joining us today >> thank you, morgan 30 seconds we have left, let me try to explain why alibaba shares are getting crushed this morning. jd also down doesn't appear to be based on jd's earnings looked

fairly good. p provisional list of issuers, they're startling to release the names that have -- they don't feel comfortable with their audits or not getting the audit inspection, access they would like that may be the reason behind it we're out of time here don't miss larry kulp on "halftime. "techcheck" starts now ♪ ♪ good thursday morning, welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa today amazon delivers split with next day results what this signals for companies, investors and other big tech