powell >> without question. yields are the story yields are going to be the story until you get about 100 basis points higher and we see whether there's going to be negative impact on the consumer and corporate behavior >> we're going to see. there is your real-time look at what stocks are doing right now. i'll see you in a little bit "the exchange" begins right now. >> thank you hi, everybody. i'm kelly evans. ahead, stocks are dropping to session lows as the fed chair suggests he's open to half point rate hikes if and when inflation warrants it. the dow is down 321 points this all comes after the best week for markets since late 2020 before you get too worried, one key strategist says the fed has so far played its cards perfectly. has he changed his mind? plus warn buffett makes a deal, buying another insurance conglomerate for $11 billion

all-times as buffett has been reascending the world's wealthiest list. and a rift between the ceo of disney and his predecessor. they rarely talk we'll tell you how it started and where things might go from here first a check on the markets where you can see the declines accelerating fed chair powell's comments were about a half hour ago. the dow and is nad zach down 1%. 334 point drop for the dow down 14 for the nasdaq that's back toward the session lows we saw this morning it briefly went positive the s&p down 24 points or half a half sent. let's get a quick check on oil it accelerated to the up side after the hawkish remarks. didn't do a lot. maybe moderation in the last few moments. we crossed above 111 a barrel today. wti right now 109.60 up about 5%. attacks on saudi oil infrastructure

and let's show yields on the rise big time. this is the story of the day right now. the ten-year yield at 2.28 % i forget i can draw on this here we've seen this acceleration going back at first to the fed's meeting last week. then yields started to come down now we're getting another leg higher to almost 2 .3% so it's hurting some of the long duration plays in the market if you want to call it that it's also interesting dynamics across the yield curve this morning it was less hawkish than the colleagues in a speech. but that quickly fades into memory as fed chair powell just said he would be open to half point hikes. let's get more from rick santelli at the cme. rick >> yeah. it is a strange day. and maybe a good chunk of it actually started in europe if you look at german ppi, this is going back to 1977 recordkeeping. third month over 20 of record

25.9% on its latest ppi read and that really does underscore what's going on. and most of that was energy, if you strip out energy, the number is less than half. only up 12.4 only up 12.4%. and consider this. right now ten-year note yields popped about 5 basis points on the powell comments to 228 well, we have sevens at 232. fives at 230 threes at 230. you see what i'm talking about not only a traffic jam a bunch of the cars are higher yielding than tens which shows distortions in the yield curve much of this started as i said now, look at the intraday ten. you can see coming into the time zone when the futures open at 8:20 that's the pop up that we had when yields started to move, but the rest of these charts start the session before the fed's first rate hike on 316 look at ten years. yes, they moved rather aggressively but if you look at the spread tens to twos on the day the fed

hiked, it's moved about ten basis points flatter even though ten-year yields moved up, two-year yields have outpaced them since the 15th close. and if you look at what's going on with respect to bunds, they have padded. they were at 18 when the fed tig tightened. and finally the dollar index the last close above 99 even was the day before the fed tightened. the dollar has built so much of the rate increase in we want to pay attention today to there isn't a trader around who isn't stuck on the pops in treasuries as yields continue to drop, the long continue to capitulate and it really has turned into a bit of a selling spiral kelly, back to you >> rick, in his press conference last week the chair made it clear he would be open to half point hikes if needed. what's the difference between the market's reaction then which

took it in stride and to today >> there isn't a lot of difference the markets are more nervous, and all the other data points that continue to fuel the notion that the fed is behind the curve continue to pop up like today's ppi in germany >> all right rick, thank you very much. rick santelli at the dow down 360 points joining me now is the chief market strategist at jeffries. dave, let's start with your reaction to the comments from the fed chair. what stands out to you about his speech today >> i think you're right. there's not too much different than what he said at the press conference last week he was open to 50s they gave us very hawkish forward guidance, about 40 more than what the market was thinking for the cumulative time to the end of 2023 i think they brought forward the balance sheet contraction in many people's minds to being live and ready to go at the next meeting. we'll learn more about that at the minutes.

they left only a 25 basis instead of 50 basis point. that's to test the market to see how they take the hawkishness. and the reality is i think jay probably sat back and said the market took it well. i'm going to keep going. i have a strong housing market i have 1 .7 job openings for every person looking for a job i've got to get this thing moving because we have a 7.9 headline cpi and we have to do something about it i think he's em boelgenned a little bit that's what the speech was today. a reiteration of that. >> not to sort of make you predict the tick by tick here, but do you think that investors will ultimately be able to kind of stomach this the same way -- we saw the markets fluctuate last week but pick up steam into the end of the week. would you expect the same dynamic to play out again here >> on the s&p or the equity side, we've had a heck of a run back up from the lows. whether that's just scoring up a

positions after the quarterly witching hour or the options that expired, i don't know it's harder for me to get into those ma knew sha. the bigger picture is the up side in stocks for this year is not that high. the fed is going to be more hawkish as we go up. they're going to feel more emboldened to get rid of that inflation story. and the downside is more risky because the fed put just as we've talked about a number of times, just doesn't really kick in until a lot later because of the inflation pressures that they have to continue to fight so the risk/reward is not in your favor, and i think as we said it last time, the fed is not as much of a friend as it has been in the past depending on how the shocks work through the system i think there's a tricky time to be all in risk assets. that said, i think the growth story, the outlook for the economy is pretty reasonable and i think we can withstand it. especially in the housing market where everything is booming. >> it's sort of like the scenario you were describing in

the past could almost be goal si locks. but this time it's almost the opposite where it's like things aren't bad enough the fed is going to be more accommodative, but they're not good enough that we're going to see this kind of strong rally on its own. so let me ask you about bonds. how much more do you think the ten-year could back up before you and others, i know you're not going to buy treasuries per se, but across the curve before you get interested in buying the bond market at these levels? >> i think rick was pointing this out in his analysis to you earlier. i think it's really important for listeners to think about this this is -- we're one rate hike in, and the threes, tens curve is already inverted. twos tens is hitting a new low below 20 i fully expect this curve to be inverted within the next rate hike or the one after. i think that's going to cause the fed a little bit of a problem, consternation, and they're going to start to look to the balance sheet and say if you guys are really going to keep the ten-year note yields

this low as we're taking rates and rate expectations up in the front end, we're going to be a little bit more aggressive with the balance sheet. i think that's for the later half of the year, but i think we're going to get a more healthy combination of both balance sheet contraction and rate rises in the front end. and the more this curve inverts, the more i think they're going to be focusing in on that balance sheet. that's going to be the interesting debate as we go into the end of the year. >> and maybe there was hinting at that. even in being viegtly more dovish than his colleagues, he thought it was worth looking at the balance sheet and moving there. last week we spoke with steven who was concerned as a market practitioner about the fed both raising rates and being aggressive on the balance sheet at the same time he was sort of saying each one carries its own risks. would you do them at the same time, you multiply the risks, and really whacky things can happen again, as somebody who sort of

follows the market movements here closely, do you think he has a point, that -- or do you expect the fed to be moving adepressively on both? >> well, let me put it this way. i don't think steve is far off the mark, but let me try to be more specific. if you look at what we did in response to covid, we cut rates 175 basis points by and large, that isn't that much it's a very small rate cut in the grand scheme of looking at rate cuts over recessions in the post war period. we did, however, increase the balance sheet by $5 trillion from 3.8 trillion to 8.8 trillion in a short period of time. two years. in monetary policy was responsible for the inflation that we're getting today, and we might think it's all supply disruptions and maybe it's demand maybe it's monetary. maybe it's fiscal. let's say we think there's a piece that's related to somewhat overzealousness on the monetary policy side, it's not going to be the rate hikes or the removal

of that 175 cut that's really the help here. it's going to be that 5 trillion that probably caused us the problems so i think maybe raphael, i've been in london seeing clients all day today, so i didn't read the speech today yet, but my guess is what you're alluding to is that there is going to be more focus on the balance sheet, that that was the primary tool that we used during covid to get us across the rubicon and get all these jobs back. we've gained back almost 8 million jobs in the last 12 to 13 months from doing what we did, being a little extra easy during 2021. and we gained back i think 14 or 13 million jobs from the worst of the situation so i think you have to look at the balance sheet. you would be almost remiss if you said let's just leave the balance sheet alone. it's a huge balance sheet move, and i think it's going to warrant some extra care and extra concern and probably is

an -- while they don't want to make it the primary tool, i understand that, i think they're going to have to make it more important of a tool than they made it last time, and that's what they've said. >> final question to go back to it where is the level that you think bonds need to go, then, if in a way you're implying we haven't hit anywhere where they should be. if they told us they're going to take the fed funds rate to 2 .8 %, the ten-year is only at 2 .3, not even >> i think the path is we get a pretty serious inversion toward the end of the year, that the ten-year note yield doesn't go up nearly as much as the fed wants it to, and that forces them to think about that plan b that i think jim refred to that will get you the next leg up in the ten-year yield at least initially, maybe taking us north of 250 into 275 or as high as 3 i don't see a big storyline beyond that. i think at the end of the day you're going to find that this

tightening that they engalk in while it's going to have to be here for a while, and they're going to have to push inflation down for even longer because they have average inflation targeting so they got to make up for past inflation mistakes, too, i think you're going to be able to get the direction of the inflationary going in the right way, in the right magnitude without trying to go up to these four or five percent levels. especially if you lean on the balance sheet. especially if you start to take that down much faster. you can avoid having to take the rates up much higher, and i think the fed will do that next time we can talk a little bit about why, if you want, but i think a lot of it has to do with interest on reserves and how they pay that out and who they pay it out to >> excellent point i want to read you the headline. powell just said while they have not decided what the next rate move will be, nothing would prevent a 50 point basis rate hike in may. >> i think he's emboldened after the last meeting the market took it well.

why not try to hit this thing off and get this 7.9 number that's really a blemish on their record card, get it off the card faster show they're ready to take it seriously. and i did -- i did say it was his move toward a volker-esque moment i think jay is going to be, as we heard him in his testimony or his -- when he was in front of congress for his hearings to be renominated, he really defied b bolt -- volker i think we should not expect him to be a 1970s or late 1960s style fed chair. >> it's been great for headlines. thanks for your time >> always a pleasure >> the chief strategy markets. you might think the market is taking another leg lower after the latest remarks, but a dow decline of 50 points the day is young we'll see what else the market makes of these comments.

we'll bring you the q and a when we get that in a couple mi minuminutes. is the berkshire way back? we'll speak to a long-time buffett watcher next crude posted the back to back weekly losses it's back on the up swing today. we'll look at why and speak to matt gallagher about the volatility in prices squlnchts as we head to price, here's a final quick look at the red across the screen. losses in stocks losses in bonds. the nasdaq the worst performer down 1.2 % we're back in a moment if you invest in the s&p 500 your portfolio may be too concentrated in big companies. this can leave it imbalanced and exposed when performance varies. invesco's s&p 500 equal weight etf, rsp,

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welcome back berkshire hathaway agreeing to buy an insurance company for nearly $12 billion the move is after berkshire a shares crossed the half million dollar mark. berkshire has been outperforming the broad markets and the toy on the block, the rketf is the berkshire way back? with me, bob myles i guess i know your answer, bob. you probably think he never went anywhere >> he didn't

he says principles are -- thanks for inviting me on the show, kelly. he says principles are principles because they don't change if they change, they're not principles he never went anywhere i think the market is paying takes to him now mainly because of share price, not so much the acquisition. >> yeah. so the real sort of shift to watch is once again to look over the last couple years and all the stocks that were outperforming during the pandemic and now how quickly they've come back down to earth. and what is it you think for berkshire is working is it solid materials? everything seems to be going right for them right now >> yeah. warren says we invest in insulation, paint, bricks, you know, try to control your excitement so value never went away but i think with the markets now realizing is that value is a component of growth, and i think now there's a shift toward

value, and a lot of attention on berkshire because of the half a billion mark of their share price. that's unprecedented in the capital market history and we'll probably see the million dollar market in another seven, eight years as it continues to grow at 10% a year. that's the attention it's getting. and plus i think the gamefication made the stock market somewhat of a gamble for young people i was at the university of florida lecturing this last week, and they talked about crypto, and they're worried about crypto in that one person's tweet can change the price. instantly. and i sense that there's a drift particularly of young investors away from the gaming of the stock market, and away from

crypto, and more toward hopefully what wash says are the good investments which are productive assets. >> sure. now, what do you make of the allegheny deal which it's kind of more of the same. it's actually pretty small in the grand scheme of things, and during the pandemic with these huge stock moves where they could have been more opportunistic, we didn't see berkshire step in and buy an airline or something like that before munger and buffett leave the company, is there something you'd like to see them do? have you been frustrated in their lack of action here lately >> no. i'm a patient one from shareholder which is the -- exactly the type of shareholder that they attract. i think the spacs had a lot to do with the lack of opportunity. you know, in all his largest purchase to date has been his own stocks over $50 billion in the last two years. more than apple.

his second largest investment. and allegheny is top ten so it's a big deal i think they're just patient and he can sit there and just wait for the market to come to him. and i think the spacs, the g gamefication, a lot of investment in innovative stocks are outside their scope of interest i have to spend patiently waiting as a shareholder i'm pleased as a long-term share hold tore see the stock up 17 times since i've owned it. so if it continues to just do 1% or 2% better than the s&p 500, i'm a happy shareholder. >> amazing bob, it's been great to have you on today with insight. we appreciate it >> thank you for inviting me coming up, rk, a firm block

and robin hood all outperforming. is this a false start or a breakout for real? plus disney shares only up 3% since bob chapek became ceo they've underperformed the dow by a wide margin we'll look at his relationship with bobger d ianwhat their falling out means for the future of disney. "the exchange" is back after this your record label is taking off. but so is your sound engineer. you need to hire.

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the dow down just over 400 points right now the nasdaq down 190. we were in the red this morning. then the nasdaq went into the green. now in the past hour after we

heard from fed chair powell, markets are decidedly selling off. we should get the q and a portion, updates soon informal we'll bring that to you. but again, he's not at all ruling out a half point rate hike at the next meeting or in the future energy is outperforming every sector the only one in positive territory for the year it's up 37 % and almost 3% today. wti jumps again within energy the biggest gainers are occidental and marathon and diamondback. the crane shares, the k web lower today after surging 29% last week for its best week ever coming off long stretch of losses j.d.com, alibaba and bilibili. bank of america saying nvidia is a big buy, and much of the rest of the space in the race let's get a news update. >> here's what's happen agent this hour. hopes are fading that there will

be any survivors from a passenger plane crash in southern hina. initial reports say the first rescuers to reach the scene found only debris and fire a boeing 737 jet suddenly dived into a mountain. 13 the 2 people were on board. russia's military says a key shopping center it levelled was storing ukrainian rockets. the new york times reports there was no visible evidence of military vehicles or hardware at the site and the scope of the devastation is greater than anything seen before in the capital. city officials say at least eight people were killed and a yacht docking in turkey avoiding european union water in recent days the owner of the soccer team is subject to sanctions that could lead to the seizure of the yacht. on the news, wheat disrupted by the war a look at how it's affecting american farmers and consumers

thank you very much. up next, if you think inflation is bad here, consider yourself lucky you're not in germany where they saw a huge surge in costs as they deal with the energy costs of the war. we'll talk with matt gallagher about how much worse things could get or if the worst is behind us. we're back in a moment 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 for less—join the big switch to t-mobile for business today. flexshares etfs are built with advanced modeling. to fill portfolio gaps and target specific goals. strengthening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information.

read it carefully.

welcome back, everybody. just want to show you the ten-year yield which just a moment ago crossed above the highest level since may of 2019. a three-year high and a significant move going back to last week. this one triggered by comments from fed chair powell. meantime, oil prices are also jumping again after two back to back weekly declines all this as russia's invasion of ukraine has disrupted energy markets around the world it's been much worse in europe so far because their natural gas prices have spiked way more than ours take a look at their dutch natural gas futures. that's the benchmark they're up more than 1,000% in the past two years again, more than 1,000%. europe received 45% of the natural gas from russia last year germany reportedly looking to qatar for more supplies given the conflict as a result of the price spike,

german producer prices spiked 20% year on year that compares with negative 2 % a year ago so again, a tremendous amount of this upward move is driven by the increase in the energy prices here at home, natural gas prices up only 200% that's helped blunt the impact on inflation here's our move in context it doesn't look bad. our oil prices have jumped more. up nearly five-fold for west texas. how much worse would things get on the energy front or is the worst over joining us now is matt gallagher, the founder a-- it's great to see you obviously we're relieved that the u.s. industry has been more contained on the natural gas side, but how much worse could prices get, do you think >> hello, kelly. it's been a couple years lots has changed

first, i want to reassure everyone the u.s. shale industry has the resources to decouple from the russian energy weapon both on the crude side we peaked imports at about 600,000 barrels a day from russia, but the natural gas and l and g front for the domestic citizens but also from allies. in just by 2030 we could increase four-fold the l and g production, and we could supply germany with everything they need in europe to help blunt this impact. and this would be ratable over time and on the crude side, in just the next 12 to -- sorry. 12 to 24 months, we could offset that 600,000 barrels a day of crude imports from russia. just due to the natural growth >> well, what you're saying about europe is especially important. prices are linked. theirs have been worse if they are going to move to ban russian oil and gas, what do you think that would do to prices

even for u.s. consumers? >> there's a short-term spillover. that's for ertain. we need to make sure we have a concentrated and stable regulatory environment, and we need to commit on a global scale. it's going to be over $100 billion of investment from the industry this is not asking for any external support but we just need stable regulatory conditions, and we need to get moving on this fairly rapidly we've seen very quick announcements on l and g deals from germany and permits go through in the u.s. which is a great sign i think the gears are in motion, and we need it to continue on that front i'm also proud to be part of the answer on the crude front. we have one rig running at green lake energy. but we're not alone. there's 55 other independent producers here in the u.s. that run only one rig so we're doing -- chipping away growing production as we can >> matt, i have to cut it short because of more breaking news

out of the fed we apologize for that. we hope to continue the discussion thank you for joining us we want to gut back to steve who was at the session where fed chair powell just finished his question and answer session and has been making more headlines steve, what can you tell us? >> the fed chair said that nothing would stop the fed from raise big 50 basis points in may if it decided that it needed to do so. he's not saying for sure that that's what the fed will do, but he's saying nothing will stop it he made clear the fed would go to 50 basis point rate hikes if it needed to as well as above neutral. here's what he said earlier in his speech >> if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting, we will do so and if we determine that we need to tighten beyond common measures of neutral into a more restrictive stance, we'll do

that as well >> not surprisingly, the probability of a 50 basis point rate hike to 65%, it was around 50% last friday, and it is up quite a bit today. it seems to be becoming the odds on bet at least for the moment of the market. and that was not all that the fed chair said that was hawkish. he went onto say there's a rising risk that long-term expectations would move higher that's a key for the federal reserve to watch if that gets unhinged, the fed would be concerned about that. he sees the ukraine war leading to inflation and related to more covid related supply disruptions. the only good thing was he didn't see a high chance of recession and thinks it's possible to get down to 2% inflation over three years, but mostly he gave what i would call a consolidated hawkish speech today which is taking some of the highlights of his hawkishness last week and sort

of putting them in bolder relief today. >> you know, dave suggested this, but do you think this is a volker--esque moment for powell given the clarity, the candid nature of his remarks, the way in which he was hawkishlast week he said what he's saying today he's emphasizing it, even joking about how they're going to go ahead and raise half a point next month i mean, how significant are these comments >> i think volker-esque is good. i think it's not exactly like volker in the sense that whatever powell is doing, i believe he's doing it from a lower level at least at the moment, doesn't have quite as much work to do as volker, but he's laying down a marker. he began with the language last wednesday, you'll remember, saying he looked at a committee what was ready to fight for inflation, and now he's saying remember we had waller on friday, and chris waller, the fed governor was clear about wanting to do more earlier

and it sounds to me like powell is kind of siding with the hawkish ring of the party there and saying look, we may have to go 50s remember, they're looking down the barrel, i think, at a really louzy march inflation report that's going to come out 8.5, 9% who knows what happens with the covid-related china supply ris i disruptions. >> since you're at the gathering of business economists, how do you think this is going down with the crowd is this what they want to hear from the fed chair, or are they nervous? >> i think they've been looking at their watch and saying how about it, jay it's time. there was a survey i love the data, my feelings about things there was a survey they released over the weekend that said that 77% believe that the fed policy is too stimyoulative this group in general, and you know these folks maybe as well as i do. maybe i've been around longer, but you know who i'm talking

about. these are folks that in general the end to side with the fed when the fed has a policy, they're inclined to see it's the right policy well, the last survey 50% thought the fed was too stimyoulative. it's up to 77% when you lose this crowd, you're behind the curve, i suggest. >> i wonder if the theme of the conference, i think it's sustainable and -- i guess i'm saying even for those planning this event, this feels like it has taken them by surprise it's taken the fed by surprise they've been way behind the curve. you know what i mean >> kelly, that's a great point and i'll tell you what the -- what i think is really interesting. we had a discussion at lunch with a couple of former fed staffers i've known for a lot of years. that's when would you have made the pivot? where did policy go wrong? why. sn should the fed have responded to the trumper ra and early biden fiscal stimulus?

should it have responded in the middle of the covid crisis or the covid wave of -- the summer of '21 when should powell have pivoted and by how much? did he do too much too early in the fed was fighting the last war when it came to not doing enough early enough and having fiscal help. this time a lot earl aand a lot of fiscal help i think we're just beginning to do the history what's clear is the pivot has happened the fed is focussed on fighting inflation, and the question becomes for the market, calibrating what that response looks like, and it is really a moving target with the fed chair honing, i would say, today, a hawkish response >> i love you bringing the buzz to us as well. that's the best of being able to go and be part of these gatherings steve, thank you so much >> in person imagine that >> exactly we never take it for granted anymore. steve liesman.

let's check on the markets even know they initially hit session lows on the powell headlines, we've come back quite a ways on that the dow is down 328. just shy of 1% coming up, fin tech names have gotten beaten up, and jim chanos sees further pain ahead for coinbase one says it's a solid long-term play the thoughts next on "the exchange". hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪

after a weak start to the year, the fin techs saw a rally last year. square up 42%. paypal up 20%. coinbase up 16%. jim chanos doesn't think it will last this is what he said on "overtime" >> we're looking for companies

where the profit forecasts are continuing to decline as the valuations stay up there are plenty of companies that are in the new economy that have real growth and real cash flows and real earnings. but there's a lot that are just being sold on stories. and we would argue that coin base is one being sold on a story. >> is he right or what would the bulls say about coinbase joining us is lisa lisa, let's just start in on coinbase where the proponents would say just wait until they launch the nft platform. they have a lot of big things coming what are your reasons for liking the stock here >> yeah. coinbase is a diversified platform play in the crypto economy. so basically if you're a believer that crypto technology will develop in a number of different areas, of course, in brokerage and exchange, but also as a method of payment, as a

store of value, in nfts, et cetera, if you believe in any one or more of these coinbase's positioning itself as the sort of platform play that creates the unramps and onramps into the crypto economy as the regular western version of that. in our view, that's a one of a kind asset where you can get in on the ground floor. it's unpredictable in the near-term, but in our view, this is one of the most attractive entrypoints to a unique story. >> if s your price target still 600? >> it is, yes. and i would say right now it's only getting more attractive in the sense that coinbase, their 2021 performance was ast astonishingly strong they're generating interestingly for a company of this maturity level. over $1 billion in gap net income in 2021, and they're now

trading at price to sales multiple of less than five times. by p by comparison, even shop by is still at ten times, double the valuation. and many other companies are much higher. we view the current level attractive and that $600 price target is one-year price target is only about 11 times price to sales on a one-year basis and in line with many of the other comps >> why do you think it is that b bitcoin has held up wem. why is it that coinbase stock has been so much harder hit than the crypto price itself? >> yeah. it's -- look, there's no question there's a few different dynamics going on that we'll have to work through over time. there's the regulatory uncertainty. so far the fed is generally coming out reasonably positive looking for an overarching regulatory framework

pretty supportive of stable coins. but there's big uncertainties still about how crypto tokens are going to be treated. securities, commodities, et cetera that's a big regulatory uncertainty that just makes some investors uncomfortable investing in coinbase ahead of the clarity around those types of decisions there's also other factors like the fact that coinbase is a one of a kind asset actually it would help coinbase if other players in this space like an ftx, like a cracken, for example, went public and there was more disclosures and a broader investor community, kind of understanding and educating themselves on the space, because coinbase still suffers from a basic lack of investor education and comfort in investing in this stock relative to other options they have in tech >> fascinating again, that would be more than a triple from here lisa, thank you for joining us

we appreciate it lisa ellis we have a news alert on apple. steve is here with the story >> some apple services are down this afternoon this includes stuff like the app store, the i tunes store, streaming on apple tv plus right now apple status page is saying most or all users are experiencing the problems, but i will say these are typically a blip and come back relatively quickly. if this does become a widespread outage like with other services, it's something to watch. >> apple shares are in negative territory as the market moves lower this afternoon up next, shares of disney have dropped more than 27 % over the past year as they work to find their footing in a post covid world. and there's a lot at stake personally for ceo bob chapek. we'll tell you why next. ok, this is a miss. it's a fork. i got ten forks right here, baby.

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company. we are joined to discuss it's great to have alex here first, what happened how did this come to pass? two men and it happened fairly early on did beginning of the deterioration between them there was an article in "the new york times" in april of 2020 so the pandemic had really just started and just weeks after iger named chapek as a skuk s succession so in that article iger told "the new york times" i plan to stick around to help him run the company and been running it for 15 or so years so basically why wouldn't he want me to stick around and help him? bob chapek never said to bob iger, hey look, i want or need your help so he was quite angry

with the article he basically felt like it made him look weak as a leader and their relationship never really recovered i'm told on the surface it is kind a strained relationship between two men. underneath that, though, there are also organizational differences, leadership style differences between them that contributed to sort of an elongation of that strained relationship and that's what the story is really about. the organizational and leadership differences. >> so before we delve into that, iger had told david faber december 2021 it shouldn't be a siran that any dynamic would have an impact on the company long term. how would you say that's played out? now that iger is gone, is he gone >> so i think only bob iger can

answer that one. to be honest hi said he is not coming back so if you take him at the word he is gone he is not the ceo, not the chairman at a very literal it doesn't linger disney is bob chapek's company but he's gotten into a decent amount of hot water i would say, most recently with an acknowledged misstep on dealing with florida's don't say gay legislation and come under heat from employees he is now sort of trying to walk that back and regain trust with employees who felt like he should have been more tstrident

and separated pnl pour from decision heads within disney and puts most in the hands of one man, kareem daniel, someone that came up with bob chapek and very much his right-hand man. that decision, did removing the power of the purse is the big sticking point and we'll have to see the results of that over the next year. >> highly recommend people read the whole details with the details a ten contract up in february so we'll befollowing this closely appreciate you joining me and recommend that people head over there to read more thanks. >> thank you. this name is up 30% over the past week as talks between russia and ukraine remain unpr unproductive we'll reveal it after this

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welcome back cyber stocks are lower today but coming off a massive run frank holland with a look at what's driving the move. >> hi. the there's growing concern that cyber attacks will arrive. experts say the escalating to fighting is increasing the likelihood of cyber and ransomware attacks last week an alert saying russian state sponsored actors found holes in systems when you try to log on and sent an email or text to verify the identity a threat is conti. it said it would retaliate against a russian group but they were hack jd now it is not clear if it stopped the plans or gearing up for a major attack.

>> thank you we continue to follow the threats, we appreciate it. with the dow down 316, about 100 points off the session lows. that does it for "the exchange" and "power lunch" picks it up right now. yes, we do thank you very much. welcome to "power lunch. the markets rattled this afternoon orn comments from the fed chief. but crude on the move bag above $110 a barrel is russia's reign as an energy superpower want to end and the prower player, historic climate disclosure rules. an aggressive agenda why the chair will answer the tough