we had a little incident. >> you did >> we did. we did we cleaned it up, though. >> oh. >> by the way, they charge you like $250 now for that. >> uber does >> yeah. >> as they should. we got to go "squawk on the street" begins now. bye, everybody good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with dajim cramer david faber has the morning off. the extraordinary nato meeting takes place with the president in brussels. jobless claims lowest level since 1969 fink saying it's the end of globalization. airline ceos urging the president to lift those covid mask map dates as andrew said, uber surging after reaching a deal to list all new york taxis on the app. we have the details. we'll start with the markets

as the president and nato leaders gather in brussels amid the conflict we're expecting a host of policy initiatives, jim the main one is going to be more commitments that the eu is seeking, and nato, for europe. specifically lng. >> yeah. you know, i think we really have to start understanding the way the lng market works the swing vote for lng you think would be us. but the president -- by the way, the senator talked about this. furyk has the environmental justice. it basically says, listen, guys, don't you build anymore pipelines to the southeast that might have -- might be turning to lng we're concerned about the pipelines. a lot of oil and gas companies saying we won't produce anymore or build anymore what the president has to do is gives some direction to the oil companies that it is safe to be able to build pipe but they've done the opposite. it's very confusing.

i feel bad for the oil companies. they don't know what to do and in the end, the president is saying, we'll give you more lng but there is no more. >> yeah. the eu is looking for commitments for the next couple of winters interesting dallas fed did a survey of oil executives and asked what is the main reason why production isn't increasing at these prices. the number one reason was investor demand for capital discipline government regulation was last >>well, for lng in terms of drilling, yes. march of '20 it was 13 million if you talk to pioneer or if you talk to monfrief who was the beginning of this. if you go to eog, which was downgraded -- i thought it was a needless downgrade they say the same thing. wall street has told us no no more. stop it with the drilling. give us the money back give us special or variable dividends. all the companies have drilled

wells but they're not taking the oil out of them. because they just say, listen, we'll beg wall street. it's helped the stocks. >> meanwhile, we'll look for more initiatives and it doesn't look like germany, at least, is going to try to give some rebates to consumers and companies to make up for some of the energy costs maybe keeping their coal plants open a little bit longer than they thought >>well, there's a lot of people. but angela merkel gets no criticism, but the fact is that the speed with which they went green is one of the reasons why it's so difficult to challenge the russians we don't talk about that enough. a lot we say is, well, they've got nukes. but the fact is, if you shut down the pipes they have to germany, they might run out of money in this quarter. otherwise i think there's a lot of people who are starting to say, you know, the whole notion that zelenskyy may be winning or whatever is not coming true.

because in the end, the russians are perfectly -- missiles day and night. and a certain point, you can get a situation where in chechnya where putin destroyed the whole city then declared victory. you don't want that. i think there's a lot of people who are starting to worry if nato doesn't step up more weapons, this thing could get really, really ugly. >> we did get more weapon supply yesterday from the uk. from sweden. right. we're a long way -- it was a month ago tomorrow or i think it's today, really, in which we thought kyiv was 72 hours away from being run over. >> that's true biden blocked it what they need is planes because in order to take out the artillery, you need planes you can take them out with some of the switchblade 600 and we're not giving them that the united states has to give them something to stop the artillery. the russians are famous -- even

the nazis were defeated by artillery. they're famous for wholesale destruction. look the city -- the port city they're going after, that's a russian city it's a russian-speaking people but putin serves no mercy whatsoever. >> we'll watch it. meantime you mentioned esg it dove tails with the letter from larry fink about the head of globalization the russian invasion of ukraine has put an end to the globalization we've experienced over the last three decades. howard marks, as well, talking about rather than the cheapest, easiest, and greenest sources of energy, let's say, they'll probably be more of a premium put on the safest and surest. >> you know look, i think larry is great i wish someone would say, okay, we'll do a new kind of investing. if you're committing genocide, we're not going to invest in you. i mean, none of these today ever say point-blank the reason why they talk about russian war.

how about, listen, if you kill your own people, we'll blacklist you. the msci, they could do it no one seems to relate killing people with investability. the war, yes it's a question, if you murder people, we won't invest in you it's not the end of globalization. it's the end of reckless globalization. i think that's what they have to start saying. >> so the difference between ukraine and uighurs, for example, in china, is what sovereign nation sovereign status that is violated >> i don't think there's any difference i think both places committed genocide and, therefore, are not investable look, i am -- i'll tell you, i'm a throw back -- i bet you president eisenhower would agree with me. or president johnson i think president nixon would agree with me, for heaven's sake if you're out there doing things that not crimp civil rights but

kill people, maybe you shouldn't invest in them this is the general motors versus ford debate when fdr came to both and said we need you to make tanks gm said where and when and ford said we invest in germany. we won't do that well, i mean, i think we have -- i have a gm attitude i don't have a ford attitude. >> right certainly yesterday in france they did lean an the likes of nestle, for example, to finally pull the plug as much as you can. >> yeah. there was a list of who is playable and who is not. it needs to be updated you saw so many companies in the last few days just say, you know, we're not going to be involved at the same time the germans take that natural gas. germany, they shave to get the coal plants open

i wish they could decommission the nukes. apparently when you take a nuke out, it's out. >> the russian stock exchange opens today with limited trading. short selling is banned, of course some discussion this morning of state welfare funds trying to add to the buying. >> there again that's globalization. if it means we're willing to invest in manipulative markets, forget it. they need to come back and say, listen, we're financing bonds. even if ukraine -- if ukraine is destroyed, ukraine will still pay. that's a possibility most of the funds are opportunistic and they feel our mission is to invest everywhere or else people wouldn't give us the money. i think it's the easy out.

i don't like aggenocide i'm saying someone should be a stewart of capital and say we're not going to go into manipulated stock markets and countries that kill their own people. and just to top it off, we have this the reports of this north korean icbm test first one since, well, in about four years. >> yeah. talk about being opportunistic they know the world is distracted now. >> yes, they do. they are evil. i think they are taking advantage of it. look, a lot of people feel this is happening because of the way our country left afghanistan i don't think it's necessarily the right wing or left wing. i think there's a recognition it wasn't necessarily the way to leave because it's given a lot of openings for this kind of

action by the way it was the same in '74 in vietnam we think it's the first time first time no when the united states leaves in a fashion that is disorderly, there are countries to take advantage of it. >> yep the street today a couple of different notes, jim taking stock of the indirect effects of the invasion on american business, at least. jpmorgan cuts numbers across the auto sector. >> it's just tough the auto sector nobody has any if you speak to -- you know, if you speak to the countries that are involved in advertising, it's like why should ford advertise if ford doesn't have any cars i mean, why. there's no reason. to stimulate the brand there's no inventory and a lot of this, by the way, you know, jonas, i love to quote because he writes -- >> yes sometimes he writes down -- >> yeah. jonas whatever comes to his

mind i love that. that steam consciousless writing is great it's like virginia wolf. that's rarely the linked but, you know, he's saying that the cost of batteries in china driving up tesla jpmorgan's argument is less about supply but about higher energy prices, lower consumer confidence, demand destruction. >> right. >> in turn it would make them bring their estimates down it's not sticker shock anymore sticker is not right it's the surtax. >> the msrp. it's being ignored. >> right i think the guy at the link. philadelphia i parked my car. he said can i buy your car why? he said i think i can double the price. i said you park my car, you're making a deal. it's a good opportunity. i can flip the car, if you don't want the car there's a market there's a black market for cars right in front

where is phil? it's a remarkable moment the black market for cars. >> yeah. >> this is a 16-year-old lexus i think i can sell it for pretty much what i bought it for. >> we'll talk about that later on we'll see phil, i think. because a group of airline ceos has sent a letter to the president urging the white house to lift predeparture covid testing requirements and the federal mask mandate the ceo of alaska air among the leaders who signed on to the letter he made the case for scrapping the mandate with phil earlier on squawk. >> it's funny -- >> when you look at the pandemic, four variants, we've learned a lot. you look at, you know, the vaccinations, the progress in vaccina vaccinations, you know, people getting covid and natural immunity, i think we're in a place, you know, as a society where i think we can make that leap we feel confident as an airline

>> they can charge anything because people want to travel so badly. the air circulates so quickly. no one bought that when you export from china, as the president trump would say, it came from planes. it was not on board. it's a safer place than a cruise line it doesn't matter. right now people want to travel. mask or no mask. >> as we said, the endless sipping -- >> yeah. >> it is something that is daunting because it reminds you. anything that reminds you of the pandemic makes you less likely to travel. but has anyone been on a flight that wasn't extremely full

>> it'll be interesting in the coming weeks we'll hear it is coming everybody accepts that whether or not it dings discretionary spending, it's hard to tell mobility right now in the uk is not been affected by their wave. >> look. american express is having an unbelievable travel perioding. booking is amazing look, airbnb people are cooped up they've been vaccinated. if you're vaccinated, it's like vaccinated travel. >> i've been saying we've been here in june for the most part, we've been able to operate yoush during some periods with masks but mostly without.

>> yeah. i got omicron and didn't know i had it i tested positive for, like, a week so i had to stay at home much to the irritation of my wife. >> yeah. you're still here? test negative. i need you out of the house. >> yeah. we'll see what happens it's clearly with the transports and global activity. >> isn't it quiz kl with interest rates soaring but there is -- remember i said upside bias to after a 50% upside bias. >> right. >> thank you, larry williams we continue to circle around 4500 this morning. we have some breaking news out of the nato summit. good morning, kayla. >> reporter: good morning. the white house is announcing a new round of sanctions against russian elites, officials, and corporations this morning the u.s. sanctioning the duma, russia's

law-making body and all 328 members and slapping sanctions on the chief of the country's largest bank, and 48 state-owned enterprises serving the defense industry the kremlin said roman abramovich is no longer acting as a mediator. it's unclear whether or at what point his assets would be targeted the white house is announcing another $1 billion in humanitarian aid and the acceptance of 100,000 refugees president biden telling nato this morning, he supports more troops on nato's eastern front and set to gather momentarily with g7 leaders to coordinate further action world leaders have been issuing dire warnings aheld of a trio of summits in brussels this week about the possibility russia could use weapons of mass destruction, and the top priority is how to strategize a

possible response, if the worst-case scenario were to happen jim and carl >> kayla, while we have you, you know, a lot of reading into the meeting ahead of time was trying to convince european allies to go along, pressure china not to the give russia any incremental support. to what degree is that a priority this morning? >> it's certainly a large priority for the alliance. as factored prominently in the discussions. the secretary general issued some of the sharpest rebukes of beijing's role in the crisis suggesting they haven't provided material support doesn't mean they haven't been somewhat come police it in the actions saying they have provided political support in spreading disinformation and blatant lies and suggesting that beijing's own treatment of taiwan, not calling out taiwan by name, but its own actions and rhetoric around otherwise sovereign nations is problematic itself.

>> we were fatalking about the issue of mix which the pentagon and kirby has said low risk or high risk low reward but the president is going to warsaw tomorrow. could that conversation get renewed? >> it certainly could get renewed. perhaps not on that specific front. but other ways the u.s. might be willing to help. president zelenskyy of ukraine this morning put down another impassioned plea for additional assistance he asked for planes. he asked for tanks he said without those technologies and without that force that ukraine simply cannot defeat russia. there are discussions for the western countries to provide anti-ship missiles to ukraine, it would be one form of existence but not the exact type

dele zelenskyy is asking for. whether there is a work around that would make the leaders comfortable but not seen as a pr provocation by russia. we'll see what they're announcing and if they can find the delicate balance that so far alluded them >> yeah. the idea we could -- the west doesn't want to provoke putin, i mean, doesn't that mean, therefore, the west has to lose? >> well, certainly, jim, you could make that argument the argument that zelenskyy is trying to make if you don't stop this war in ukraine, it will not be limited to ukraine. that it will eventually spill over into nato territories and volodymyr zelenskyy saying he believes putin wants to continue moving west. that's something president biden acknowledged in his state of the union speech it's one of the reasons why nato has been bolstering its own defenses on the eastern front and doubling its true presence

in some of these countries like slovakia and hungary there are more suggestions whether such force postures should be permanent. we could see an announcement on that front, as well, carl. >> one more thing, kayla you talked about the anti-ship missiles, i think are necessary. is anyone actually addressing the granular nature of stopping russian artillery? >> not at this point it certainly is a question that has been put to the administration and to other world leaders many,many times. >> kayla, just extraordinary the developments in this meeting is one for the history books we'll watch for remarks later today with your help that's our kayla tow she in brussels we'll get to the corporate news that continues to roll in darden, for example, alaska air, as we said as we said along with fed

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time for "the mad dash." >> sometimes you get the battles that are incredible. holmes last night did not make the quarter. they said it was because of supply problems. the questioners, the analysts were saying, hey, listen, it could be demand. rates are going up kbh keeps pushing back and the analysts are saying why aren't you buying back stock. you're below book value. here is where i come out, there are so many analysts who believe that we're about to have a demand problem all i care about is stock is seemingly uninvestable, unless they're coming in and saying, listen, we'll buy back the stock we can that's what the toll brothers did when they decided they had

enough of the market they actually bought enough stock that it impacted it. it was a call. it was a work in progress to see who was right. >> yeah. despite the cost pressures, they did reiterate the sales guidance. >> right. >> and upped their expected price per new home from about $10,000. >> yeah. when they have to buy appliances from home depot, you're amazed they make more money but i think the analysts are basically saying, you know, we're going to get ahead of this forget this quarter. this is a market that is going to be dictated by rates. rates will be higher and people are going to start rebelling. it's hard to disagree with that. when i look at the mortgage rates every day, i mean, they double from when i managed to get a fixed a year ago.

>> yeah. 30-year fixed three months ago 3.2. up to 4.5. >> i know. it's daunting. when a house goes up, it's far more important we have to recognize the de facto rate increase. it's just happening without the fed. >> they're definitely letting the bond market do their dirty work. >> aren't they >> the opening bell in just under 5 minutes. nasdaq is up futures are green and we're back in a moment.

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knick will is surging in the premarket. they have begun electric semitruck production in arizona. it said started manufacturing the battery version on monday. something they talked about in

the q4 print. >> it's exciting remember initially they had the problem with pushing the truck down the hill. wait until you see what is happening. and it is a good board this is really positive to see i mean, obviously, we need ev whatever and this and rivian. we got some positive chatter about. now we need to find enough of the materials that make batteries. >> that's true there's a ton of ev news today mostly centered arounded move in tesla. 30% is more than a two-standard deviation move in tesla. >> all i can think of is i think they're going to crush mercedes and bmw in europe. it's the right return of america as the power i think, by the way, if they've got enough of these, it would impact russia.

but we're no near it. >> in terms of oil demand? >> yeah. [ cheers and applause ] [ opening bell ] overall indexes and the move this week, jim why the moderate chop indecisive low vix, right in the fals of a 10-year 2.4. >> the low vix is so intriguing given the fact you have a nato meeting that is a wild card. you have weapons of mass destruction, chemical weapons

that might waft over to poland it's hard to understand. there's an upward bias people find to be incredible. i say we've had a terrible bear market in the nasdaq and now some of these stocks are inching their way back people want to be in them. talking about blade coming into the summer where they've got more airports and doing fine like, that stock is moving a lot of spacs are moving up let's look and see what is down a lot. i think, by the way, nvidia will be your leader watch nvidia they did tell you a lot about the total -- being better. if nvidia keeps going up megacap tech, memes, and spacs. >> absolutely. look at apple. it has not come in tesla is a megacap

tesla is up another bellwether what i would like to do with jensen wang and i know that's kind of a world situation you have the alternative payment plan jpmorgan said it could have positive implications for match and bumble. >> i think spotify got what everyone was hoping to get from apple. i thought it was good for google that's another one google that stock alphabet is undervalued. on the pure earnings back out cash i look at the nasdaq and think

maybe the bear market is finished. >> and faang and alphabet the first you'd buy? >> absolutely. >> on the flip side today, you've got morgan stanley cutting out iron other names and saying coal prices are unsustainable. mostly because of the risk and the stagflationary stock. >> yeah. you're playing on thin ice if you go with heavy commodities now. i don't like the -- alcoa had such a big move. what a shame they split. i really like the steel complex.

i thought they would get hit hard because there's a belief that the chinese find a way to get their steel here through whatever country but people are confident it won't happen he was talking about it could be twice what the street is looking for. that's turning out to be true. that stock is still very, very cheap on the numbers people use scrap so their raw cost is good they have a lot. esg is the best deal to use

along with free port and match and tesla. >> the market is being kind of rational copper goes up i mean, i think tesla is remarkable trying to get elon to come on. that's not paying down. >> yeah. best of luck. >> yeah. i'm not want to stopping, though every now and then he came on. but half an hour later than we expected we made it. >>yeah i like jensen and elon musk. i was at a conference last night. it was remarkable. and the fire power, themental fire power in the room versus,

say, when i got in business say 40 years ago i mean, people are still -- these people are really much more on top of their game. i wish the president would become more confident and comfortable. they're trying to do what is right on usg they feel snubbed. they feel snubbed by the president. they don't understand why the president doesn't want to sit down with them. >> yeah. it's a sea change from the days from the prior administration. >> it is. >> you had round tables almost weekly. >> oh, yeah. the president was telling people my best friend is and people didn't know. >> darden another miss comps miss revenue miss what do we make of the consumer names that are less than stellar

quarters >> i thought darden did a pretty good job what people are afraid of these are the last good numbers now that gasoline is going up. and darden -- when mr. otis was ceo, it correlated well with gasoline i have to tell you, ever since gene lee came in gene lee is very smart there's not been a big correlation with gasoline. had the futures curve implies $3 by labor day who knows. maybe it's folly. >> when you speak to the oil people about how -- why aren't you drilling more. the first is they want to turn capital. the second with, they said you look at the futures. they're saying by the time the oil comes to market, we'll have ruined our margins i was so glad at this moment i don't run an oil company because those people -- their

heads are spinning worse than reagan and the exorcist. >> what does it mean when california is considering stimulus packages of $100 million and rebates and free public transit, postponing diesel taxes >> a mad scramble to be able to please -- appease any voter. the pump price is high have you been to the supermarket? give me a rebate on flank steak! how about bacon! if i could find bacon, i would pay it there's a bacon shortage. >> yeah. eggs are a problem now. >> yeah. it's true. >> when i go to the supermarket, i'm grateful there are still things on the shelves.

>> a friend of mine sent me a picture. didn't want to disclose. sent me a picture of a russian supermarket. nothing. it was in, like, the women's hygiene aisle. >> i know. it's tragic. it's tragic what is happening to supply. >> yeah. remember gum >> yeah. we get polls how putin is doing. who else is against him, but people keep saying he's doing well but if you were -- like, someone called and how is putin doing? would you say, look, i think he's not doing a good job? he'd probably kill you >>well, i mean, arguably the bulls take heart in reports of resignations of the envoy or the central bank chief wanted to resign and they wouldn't let her. some of the state tv anchors going rogue on-air and are

quitting. >> i know. at the same time when you go and look, again, i like to refer when putin destroyed the capital of chechnya. because there were a lot of russians there, too. he didn't mind killing everyone. that sounds horrible but it's true there are a lot of generals who disappeared who were ineffective. so, you know, you might want to leave. might want to take your yacht and go home. >> yeah. before it's too late. >> we didn't mention the ecodata. durables were surprise. >> yes. >> we've had four straight months of durable gains. we gained back 2% this month someone was saying if a company opens a new battery plant in arizona there's more jobs. my first thing is like, oh

no more jobs please. >> come back tomorrow. >> yeah. i mean, you know, we're in such a shortage you know, i'm part of the army they don't have enough stuff they don't have supply the army is starving i urge people to go there. it's just a festival of merchandise from other places. there isn't any. >> yeah. referencing some of the price cuts we have gotten. >> yeah. traeger did quarterly, too people are selling it. i don't know i kind of like home depot. >> christmas season. >> i think it's going to be a good gardening season. i think home depot is able to pass on prices very easily it's rather amazing. the american people get to rebel against higher prices. we can keep focussing on gasoline

it's so visible. >> right but when you go to the stores and the prices are increases are phenomenal and people are still shopping home depot, i think, will have no problem making the numbers. >> right. >> yeah. and the household level. >> and remember people have big gains in the stock market and they can sell stock to finance anything. >> yeah. rich people can. >>yeah we'll be right back.

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welcome back to "squawk on the street." rick santelli here live with breaking news. the march preliminary read on s&p global pmi, manufacturing 58.5 that is the best since september of last year if we look at the services pmi, 58.9 these are well above expectations essentially following 56.5 and, finally, the composite pmi 58.5! following 59, 55.9 so much higher than expected and, of course, the preliminary nature of these means they'll get upgraded in about two weeks. we'll go to carl quintanilla carl >> rick, thank you very much we're keeping our eye on brussels this morning as the president there meeting with some world leaders some of the leaders of japan

one headline crossing now, jim, is that they are trying to prep nato for more dangerous future, which is clearly evident >>well, you know, look we've been assured the turns we presumed what russia might do tactical nukes can easily take out a quarter of kyiv. you would say the cloud could make it so it can go all over nato nato is, i think, really kind of ready to make a statement. if you do this, there will be real consequences. that's what i think. >> consequences is the exact word that got used in a headline regarding chemical weapons nato leaders say chemical weapons would bring consequences call again on china to refrain from helping russia, which we talked about with kayla. >> right. >> and preparing for various their is scenarios of some accidental or intentional

nuclear use or invasion of a territory that truly provokes nato. >> they have to do that. they have to do that there are some fabulous books about what happened with the cuban missile crisis they are strong were you struck that sanctions on some of the oligarch were requested by zelenskyy to be held off because they were seen as an avenue with discussion. >> i saw that. i find it intriguing i also think we won't publish the names of the generals. we published the names of the generals in iraq they are war criminals they could be tried because they're attacking -- they're destroying hospitals, targeting nursing homes, and targeting

playgrounds. i mean, these are not -- this is not normal times most leaders do not engage in this kind of activity. >> i would like to know who we should prosecute we talk about oligarch how about generals colonel generals major generals who are pulling the trigger? you want someone to rebel against putin. someone! >> you do want to leave some carrot out there and give them a little bit if they defect or turn tale they would be received somehow favorably or better than the option they have by staying. >> right wouldn't you want -- if you're a general, to say, you know, look, i have no desire to go to prison for the rest of my life. let's moderate i think there's a fear of putin it doesn't occur. >> right we'll see if the dynamic changes. in the meantime, market will try to wrestle with all of this and trade within a certain range we're still arnd445.ou $.7 ♪ ♪

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s&p had 480 this morning good morning, bob. >> good morning. news out of europe is still, obviously, the issue on the markets but commodity play is still working so energy

generally higher metal stocks generally higher. the s&pmaterials sector at in new high tech's okay. the thing so watch is arc because? a real indication of general market trends since the powell presser. they have been a big win early i am talking about since wednesday last week and mr. powell's press conference, arc is up about 20%, believe it or not. consumer discretionary, energy, technology up 6, 7, 8% as well powell seems to have convinced a lot of people the fed is going to be aggressive on inflation without derailing the economy. that's a neat hat trick if he pulls that off a lot of skeptics. the market is giving him the benefit of the doubt if you look at the market trend, interesting things happening in the last few days. so bonds have been down and stocks up. there used to be a positive correlation. now there is not the volume is lower in the last few days we had the lowest volume in a

month yesterday. institution activity seems to be very low low conviction on what to do from the institutions. i hear that this higher activity from retail traders, higher activity on buybacks and higher activity from the ctas, commodity trading advisors, because they are the ones that buy and sell futures on momentum essentially. so different people are in the markets for different reasons right now and very interesting to watch that. jim mentioned darden costs are a major problem. i am afraid margin erosion might be a major issue going into the first quarter earnings season. besides they had a big miss and their guidance was poor, restaurant level margins 19.4% the last quarter the consensus was 20.7 most of this miss here was due to much higher labor costs overall. so that's a very big problem and you are going to hear more about this next week finally, just want to note, got some questions about the russian stock market reopening unfortunately, this has no impact on us at all.

i was asked about the russian etfs that trade in the u.s nothing is happening here at all. there were a small number that str trade in moscow, 33 securities. >> none open to foreign investors. van neck russia eft in london, they are not open. the bottom line in answer to people's questions, nothing is happening with the russian efts. msci has the value of the russian securities on its indexes, carl, at zero so that's going to be a big issue to deal with when and if these ever reopen. back to you. >> thanks. let's get to jim and stop trading this morning. >> uber. uber's interesting because they are signing up regular taxi drivers. i know that this is a company that could make some money i talked about it last night on "mad money." look it, this company makes money. the stock can go much higher this was a very positive move. i thought the stock would be up

more than 4% because this shows you they do this nationwide and next thing you know, that's more money for uber. >> definitely going to help ease the friction with some of these municipalities which has been going on for years. >> enough already. but anyway, i'm inclined to think that that's -- when i talked about the stocks that are starting to make a bit of a comeback not everything is coming back. if you are losing a fortune, no one is buying your stock some of these stocks people are looking at again. >> it is the one index that's up for the week we will see if it hold what are you going to tackle tonight? >> agco, the amazing -- and mike sievert, when is he going to start moving again he is going to hate that i said that i don't care by the way, verizon is back to 50. >> yeah. >> trading with the -- >> i think it was key yesterday up t-mo on best in class 5g network. >> an interesting piece that it mattered i think that it's --the stock

could go higher. and i'm also fixated on gme and amc. not unlike "braveheart," hold! >> there was better amc in gme this morning. >> this is ridiculous. if you don't manipulate a stock every day, what's the point? >> we'll see you at 6:00, jim. good hour. "mad money" 6:00 p.m. eastern time we will go to break here we will continue to watch developments in brussels as the president makes his way around town and to poland tomorrow. w'up28

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good thursday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan, david faber has the morning off. markets trying to ride this wave of news coming out of brussels and the nato meeting more russian sanctions, halting russian gold transactions, more humanitarian aid the u.s. taking in refugees. moderate chop this morning as we tread south of 4,500. >> here are three big movers we are watching starting with darden restaurants missing on earnings with revenue and comp store sales below

analysts forecast. the olive garden parents saying that omicron variant significantly impacted demand. shares are up a little bit right now, up about half a percent and shares soaring after announcing it began production of the first battery electric semi-truck more late they are hour. up about 11% and uber shares getting a boost, too. reaching an agreement to list all new york city taxis on its app. the companies first citywide partnership in the u.s shares of uber up 4% this was like unthinkable a couple years ago, karm it's interesting >> fascinating nice turnaround from the early morning action on uber. as we said earlier, the president meeting with world leaders in brussels amid the russia/ukraine conflict. news regarding humanitarian, economic, military response. morning, kayla >> good morning, carl.

the ge-7 leaders are meeting gathering a few minutes ago discussing new actions against russia as the white house unveils a new round of sanctions levying new actions on russian lawmakers. >> the chief of the largest bank and also sanctioning the transactions that the russian central a central bank was attempting to make in zboeld of course, that is one way that the market had been potentially expecting that russia could evade some of those sanctions. the u.s. clarify those transactions are banned as well. in a press conference just a few minutes ago the nato secretary-general making some interesting comments about -- his speech this morning from ukraine's president volodymr zelenskyy, his claim that russia use am phosphorus bombs. he did say that nato as activated its own defenses

against chemical weapons and is providing support to ukraine listen >> agreed to supply equipment to help ukraine protect against chemical, biological and nuclear threats. >> this could include detection equipment, protection and medical support as well as training for the contamination and crisis management. >> president zelenskyy has asked the west for military planes, tanks and missiles in his virtual address. he asked nato leaders for 1% of the thousands of tanks and aircraft the member countries currently possess. equipment many nations have brn reluctant to provide because of the potential to be seen as a provocation. a senior administration official says there are discussions ongoing to provide anti-ship missiles to ukraine not. word when that could get formally announced.

>> we will be watching for that. the use of phosphorus weapons, which are illegal on the world stage, very, very worrisome. the calls and concerns around the use of chemical and biological weapons or p potentially nuclear weapons, smaller, less powerful, something that could blur the lines on the battlefield if do deployed by russia, this sort pacific northwest the playbook that is being closely and intensely discussed and negotiated among all of the nato leaders. are you expecting that we are actually going to hear more details about what that playbook could look like heaven forbid any of that were to happen >> certainly it has been the pattern that the add in, the biden administration specifically, has been moving quickly to declassify information to share it on the world stage so that there is almost radical transparency about what the russian regime is trying to plan so far when it comes to chemistry weapons, biological weapons, nuclear weapons, these weapons of mass destruction, there has not been the same

level of detail about those plans, though world leaders continue to say that it remains a very real and grave threat and that just look at the type of actions that russia has been engaging in of late by essentially accusing ukraine of using ch using chemistry weapons and that's to point the finger at ukraine and to potentially launch an attack of its own. >> thank you. turning back to the markets. our senior economics reporter steve huffman is honoring some big speeches from fed leaders this morning steve, what is a particularly big week in general full of fed speak that is decidedly more hawkish. >> a lot of speeches the speeches today and since the last meeting you, morgan, underscoring that the most endangered monetary policy speeches may be a fed dub. the former dubs that -- into hawks and the hawks occupy the center at the federal reserve. case in point.

the minneapolis fed president penned a piece ex explaining why he was wrong he says that his views have str shifted. he has penciled in seven rate hikes in year or in line with his colleagues and the market now. chicago ''s fed president was similarly reluctant to hike rates, saying the 25 basis points rate hike was the, quote, first of many. he suggested his forecast is in line with the 275 to 3% by year end '23 of his colleagues and he supports balance sheet reductions so let's look at how the market is priced relative to these federal officials. more or less in line 1% this summer, 2% by year end there are eight hikes built if you do the counting by 25 basis points another hike in february 2.40 so in a separate speech fed

governor chris waller focused on housing. he is one of the more hawkish federal governors out there. he wants to hike 50 basis points in may today he says he seize upward pressure on housing prices and watching raels prices to gauge monetary policy. a way to read that, if housing prices don't behave and cool, waller might favor even higher rates. carl >> we will keep an eye on that a lot of fed speak all week long. before we getto the market panel this morning, quick pictures of the president here as the live pictures roll in from nato meetings the family photo earlier today meeting a moment ago with uk prime minister boris johnson he did say this morning, tried to reiterate that the uk is not dependent on russian gas even though they do import about 9% of their fuel from russia and we will continue to keep an eye on the president ahead of a press conference later on today.

let's bring in tracy mcmillon and alicia lavine tracey, steve comments about the hawkish fed, how the doves are becoming more hawkish and yet we continue to chop around here howell can that last and is it earnings that need to come to the rescue >> earning season starts in a couple of weeks in earnest, and so far the forecasts have been pretty stable. obviously, what we're going to be watching for in those earnings commentaries are things like how much pricing power are companies maintaining. are their margins holding up one thing that we have noted when we look back in history is that the s&p does tend to be positive 12 months after the federal reserve starts raising interest rates so that does give some support to continuing to hold equities and allocations here but we are becoming more cautious

>> and so becoming more cautious means what you are reducing your -- >> yeah, what that means is that we're becoming more cautious in both equities and fixed income within equities we are becoming more quality oriented and moving away from some of those higher data asset classes like emerging markets and small caps towards those higher quality asset classes, especially in the united states, like large kapts and mid-caps and within fixed income, you know, staying to where the shorter to intermediate part of the curve and away from the longer part of the curve where inflation rates and interest rates do have nor more impact. >> alicia, the same question to you. the s&p has been range bound what is it going to take to show a break out in either direction for stocks and the argument that stocks are an inflation hedge. do you buy into that >> look, let's start with the

fact that more than half of the trading days this year in 2022 had the news of 1% or higher, and of those more than half of those have been to the downside. so it's been a very rocky start to the year if you compare to last year. only 25% of trading days were 1% so it's a rocky start to the year we expect the volatility to continue the rest of the year. the range is going to hold we think unless there is resolution kind of one way or the other difficult to call. i think that the 6 to 7% balance we got in the s&p was largely due to, you know, selling out of bearish positions in january and february and i think we have to take to heart what we're hearing from the fed this week starting with jay powell on monday what he said, it's going to be 50 in may and the question is, how does that reprice the curve if

it happens and does that open other meetings to 50 or even higher and i think the market has not quite reflected that much yet. so we have taken the first blow. it was effected by ukraine and russia but the stalemate that everybody's talking about means that sanctions last longer and oil stays higher longer and food commodities prices stay higher longer that will work its way into the inflation number. >> do you buy ear? what do you stare clear of >> we sold out of our consumer stickcles several months apg we are in a rate hiking zl we believe the fede add we like the cap cycle on the hard asset and the tech side. we would be investing into cap ex-. we do like energy here simply because there is a supply shortage which is not going away anytime soon even if there is a deal, you know, energy weaken a little bit and we think this moves higher we think that's okay

we think industrials, materials here are fine. we like consumer discretionary but only in services, not in goods. so we would be cautious on the goods side as most -- you know, consumers overbought on the goods and the payback is here now. services we think are still fine >> we are going to watch for that wall it's shift which has been slow in coming. on a separate note, your note about women in investigating is interesting, especially the degree to what women are having a more active voice at the kitchen table on income and investment decisions. >> that's right. women are having -- they are taking on a much more active role in family finances. so that encompasses everything from being the major breadwinner in the family to things like having their own investment accounts, managing their own investment accounts and taking on more responsibility of

managing the family's finances and one of the things that was interesting to find, even though they are taking on additional responsibilities, they are feeling like they are getting left behind in terms of their retirement accounts. so fully funding their retirement accounts. and the worry is really well founded because they do earn less on average than men, about 84 cents to every dollar so they're earning less. they typically start with lower salaries and they tim typically take some career breaking or they are likely to take a career break for caregiving with family members. and that can have a very significant price whether it comes to the amount of savings that they have in their retirement account so we think that's why we're seeing that differential >> yeah. and the way in which they trade, their level of optimism in risk, pretty fascinating

appreciate it very much. good to talk to you both >> thank you >> some big cap tech stocks like apple and tesla climbing higher. dom chu is tracking that. >> that discussion we had with tracey and with alicia about that intersection, if you will, about consumer discretionary and technology certainly playing out in some the megacap fames. if you look at some of the trading action as of late, one the things that we are keeping a close ho eye on is what is happening, first of all, in company specific headlines, namely spotty and alphabet headlines yesterday, alphabet, the parent company of google, is going to let some app developers in a pilot program like spotty try their own in-app kind of payment engines, kind of circumventing some of the bigger ones from the likes of alphabet so payments, deals certainly a focus here you mentioned the apple and the

tesla trade. both of those stocks -- starting with apple first of all. the move that we have seen on a year-to-date basis is negative, but this right here is an eight-day win striekt now with a half a percent gain today. up about 14% during that winning streak a dip being bought in apple shares see if that continues. on the tesla side of things, a similar story. i would say with tesla it's more pronounced because we again are working on this eight-day winning streak here and we are roughly 32% during that winning streak so as people bought the dip much more intense this places like tesla, up one quarter of 1%. it's all of the electric vehicle space. nick la on headlines today, fisker, lucid, you name it, they are higher and by the way, if you take a look at some of the big moves that we have seen the last week, some of the more volatile spaces we've checked out, look what's

happening with cybersecurity, cloud computing and thee internet stocks. up 4 are and 5% even though some like pinduoduo and others are taking a break today as we talk about some of the moves, keep an eye on cybersecurity, they have some of the bigger pooh movers and swingers over the course of this volatility. >> thank you. we are going to head to a quick break. here is a look at our roadmap. moderna announcing new developments during its vaccine day. we've got those details. we will hone in on the housing market amid rising interest rates. and both on the move as dom just mentioned we will tell you why more "squawk on the streetis stig aad n't go anywhere.

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throughout the next 10. through projectup, comcast is committing $1 billion so millions more students, past... and present, can continue to get the tools they need to build a future of unlimited possibilities. big day for moderna today hosting the third annual vaccines day our meg tirrell caught up with the ceo and joins us with more good morning. >> hey, carl well, the vaccine day is going on now, running through this pipeline of mrna vaccines that they are working on across disease areas. a couple different focus areas one of course is respiratory diseases, obviously, with covid, what's going on, the kids vaccine news in addition to what is happening with fourth doses and the next generation of custody shots. also new teammate on their flu vaccine which they say could be, quote, potentially superior.

big question there, is it going to be tolerable? are people going to want to take this every year? that is something investors are asking about ultimately they want to combine covid and flu with rsv into a sort of trifecta of a vaccine that can protect against all three. they announced this week they are developing a vaccine against four common respiratory viruses, the human coronaviruses that are endemic. this would be like a common cold vaccine. they note that this does cause a lot of problems for the elderly and the vulnerable ultimately, potentially combining all of these into one big respiratory protection vaccine. folks who want to avoid that could take annually. we talked to the ceos of moderna this morning about the moment we are in right now, what we are seeing with ba.2, this omicron subvariant and the cdc warning yesterday we are seeing hospitalizations tick slightly higher in the northeast. here is what he said about that and the potential need for a

fourth shot. >> those numbers i believe are reported because of home testing. and other people are asymptomatic somebody at risk that has been vaccinated a long time ago gets now infected with ba.2, they are potentially going to be hospitalized that's what we want to avoid i think it's wise to get ready for a fourth dose in the spring for people at high risk. >> and of course moderna has filed with the fda for that fourth dose. for everybody over 18, essentially suggesting the cdc may want to decide for whom its appropriate. we are going to see the fda meet not to review any specific application, but to talk about this more broadly on april 6th meanwhile, guys, moderna did raise the expectations for what it's going to bring in in covid sales this year in terms of signed agreements up to $21 billion from 19 billion they said a month ago still the u.s. has not placed an order for the fall

that's a big question as well when congress, of course, has not allocated more covid funding. >> thank you. as we head to break, watch shares of oshkosh corp higher after the u.s. postal service purchased 50,000 nextgen vehicles 20% of that order will be electric vehicles. shares of oshkosh up 1% right now. they are down about 4% so far this year. keep in mind, oshkosh is also a defense contractor for things like armored vehicles as well as an ev play on the commercial vehicle side 'lbeig bk.wel rhtac stay with us nted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work.

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time for efhe eft spotlight ticker xhb down 20% for the year shares slipping fourth new home sales fell in february. second straight month of declines kb home pulling the group lower after a quarterly miss the company has been dealing with supply and labor issues obviously, it impacted its

ability to complete construction this quarter shares down 2.5% she said we knew that supply chain wasn't going to get better, but we didn't expect is to get as worse as did, especially during omicron. >> definitely key comments for investors to take note of. we are going to stick with the housing market new home sales falling yesterday. average home prices 500,000. that's a record. mortgage rates also up, causing some economists to predict a housing slowdown joining us president ryan snyder ryan, thanks for being with us today. i mean, you oversee quite a portfolio of real estate brands and so across different price points arks cross different markets here in the u.s., adds you see mortgage rates climb above 4% now and home prices continue at these fiery increasing, what do you expect in terms of how that scenario evolves through this year?

>> first off, morgan, thank you for having us with when we look, what we see with some of the international realty, century 21, many other brands, what we are seeing is demand is still incredibly high for homes. we are seeing the mortgage increase you talked about put a little bit of a damper on home resale purchases and sales, but the really high demand still seems to have sales higher than they have been for like the past decade or so so we expect in 2022 there will be fewer units sold than '21, but the '22 numbers probably going to be higher than, say, 2010 to 2019 was then we also expect the increased prices that you continue to see given that supply and demand imbalance. >> so where do you see that demand continuing to be the most robust the higher end of the market given the fact that we know first time buyers are getting

priced out and there are affordability issues as well as investors competing for the properties >> the demand is strong across all parts, even though with some of the issues at the first time buyer level. that's the place where the inventory is the lysol and the competition is the highest so the supply demand mismatch is the biggest. i would say the positive trends in the attractive tax and weather destinations show no sign of slowing. markets of texas and florida and cali idaho benefit from the remote work and some of the other trends that are going on out there. then new york city has had a nice comeback in the last few months clearly the market hardest hit by covid from a housing standpoint has really come back in the last few months and we're seeing strong demand there but again i think units will be below where they were in 2021 but above where they were for the decade before that >> i wonder if you think, ryan,

that migration you talk about to some of those growth states is topping out, has any chance of revert to go the mean, especially maybe employers get a little more aggressive about saying, yeah, sure, you can move to a different town but we are going to cut your pay, things like that that might bring us back to somewhat more of a p picture we saw pre-covid >> i don't think it will be possible to sustain the momentum, but it has been strong momentum now for literally about two full years and it doesn't show any signs of slowing in these really attractive markets so far here in 2022. i think the employer choice that you talk about is an important one. as a company, we're leaning all in on remote work four employees. and i think the more companies that do that, the more that trend is goingto continue. at some point it's got to slow down, i would predict, but we haven't seen any signs tv slowing down yet. >> finally, your take on inventory and how the mix of inventory is going to, i guess,

grow and shift over this career. carl was talking about the sell-off we have seen in home builders and names like kb homes that are experiencing supply chain issues and labor inflation right now, which is pricing out, too, those potential homebuyers. how is that going to affect the mix of, i guess, new homes versus existing homes and what those price points look like coming that the markets >> let me make two comments. the first comment is keep in mind in at least the resale part of the market inventory and supply are two different things, right. the inventory is incredibly low right now. as i said, we actually sold more homes last year than the last decade the homes are there. they are selling they are selling so fast, there is no inventory. the other thing we are expecting this year and we told our investors this is a return to seasonality. you know, covid in 2019 really messed up the housing market q1 of 2021 was a huge quarter for

the housing market that's very atypical and what we are seeing this year is what we call a return to seasonality. january being probably the smallest month year, you know march being bigger than january and february you know, more people putting their home on the market in the spring selling season and a fall selling season the biggest thing we are seeing change here is we think that return to seasonality which, hopefully, will actually help a bit on the inventory issue. >> interesting a post-pandemic normal or i guess return to normal ryan snyder, thanks for joining us today. >> thank you for having us, morgan. after the break, we will talk about one of the country's largest private oil field service companies on the spike in crude, although we can see it's down almost 2% today, back to 112, despite some of the inventory data earlier in the week we are back in a cplof nus.oue

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here is your cnbc news update at this hour. the u.s. and the g7 nations are expanding sanctions on russia because of the invasion of ukraine. the new measures target dozens of defense companies in 400 russian elites including members of parliament. the g7 meantime says it will restrict gold transactions by russia's central bank. and the u.s. also saying it will accept 100,000 ukrainian refugees fleeing the war and provide $1 billion worth of food, medicine, water and other supplies. ukrainian president zelenskyy telling nato leaders ushe used fphosphorus bombs to kill adults and children he didn't provide proof, which would be illegal under international you law. and while many world leaders meet in brussels, north korea tested an intercontinental ballistic missile. japan calling it an unacceptable act of violence. it's the first such missile test

since 2017 the u.s. and south korea are calling for a decisive response. carl, back to you. >> rahel, thank you. as we said before the break, crude oil down about 2% today but up more than 7.#% for the week the president meeting with nato and g7 leaders today to discuss additional russian sanctions with us is dan eberhart, ceo of canary, one of the largest private oil field service companies in the united states thanks for the time today. >> thank you for having me. >> everybody is trying to get a sense as to whether or not the eu has the nersh to pull the trigger on a robust ban of russian energy i wonder what you think. seems like the split is going to be hard to stitch. >> yeah, well, i think that they are going to come under increasing pressures as this war drags on that's not my area of he can expertise. i look at what happened when the u.s. banned russian oil that the oil companies in the u.s. were

already self-sanctioning russian oil and we only import 300,000 barrels a day. we are talking about between 2.1 and 3 million barrels a day that europe imports from russia, 30% of their energy consumption. if they pull the trigger, i think we are looking at $200 plus oil. >> that will be difficult. do you have much color to add on our ability to supply them with reliable lng, maybe not right away, but to get them through this coming winter and maybe the winter after that? >> well, we can definitely do it i will say the administration has been sitting on -- the federal energy regulatory commission has been sitting on six lng export permits speeding those up would help we have the capacity in the u.s. to particularly with maybe six months or so warning to supply europe with even more lng. the sust is the saudi arabia of gas, so to speak, right. we have plenty of supply

all the stuff takes a ramp up period it takes time. you know, right now we have germany, italy, other european countries that are feeding putin's war machine with billions of dollars a day in energy in money for energy and i think eventually that will stop as this war drags on that will be painful for everyone in europe and prices will spike in the u.s., too. we import 20% of our crude and i think we can get back up to where we are energy independent, so to speak. but this is going to be a higher cost for everyone. i think it's coming. >> so with wti at 112, 113 bucks a barrel, why aren't we seeing that ramp up in the u.s. we keep hearing it's a perfect storm. why hasn't that production actually -- that output already start today move higher? >> i think the market is trying to -- and there is a lot of, you know, when -- when the duck is paddling underwater and it looks calm on the surface, there is a

lot of that going on now people are scrambling to see what rigs are available in the fall people are looking to ramp up production i think that it's very easy to see the oil price on cnbc right and that moves quickly but if terms of adding rigs in the field and adding production that, takes a lot more time. the other thing, look, as a service company we are faced with the same constraints these other american businesses are. time from china to get stuff is six weeks, not three labor shortages. our fuel costs are spiking our insurance costs are spiking. we have the same supply chain issues that everyone else does right now. >> yeah. so in light of that, do you feel like this administration is working closely enough with the oil and gas sector near the u.s. to be able to help, i guess, jump some of these hurdles not at all i would say the administration has been a complete headwind to the industry in trying to slow us down with death by a thousand

cuts until, you know, maybe a few weeks ago. it's only 45 days ago biden was calling on opec to produce oil, not texas or north dakota or oklahoma which boggles my mind tu think they are focused now on trying to get in touch with the oil industry and become a tailwind and help us do this but it's been extremely recently their policies have not been helpful to us at all really. >> it reminds me of yesterday's survey from the dallas fed, dan, where they said which of the following reasons is the main reason publicly traded oil producers are restraining growth they were given choices, government regulation, lack of access to financing, investor pressure to maintain capital discipline the overwhelming response was the last one investors demand their returns >> yeah, no. look, that's why you have, you know, oil production was 13 million barrels a day in 2020, right now 11.7

there has been talk the last two years about capital discipline, about a lot of these companies are drilling -- you know, to channel pickings, drilling for oil on wall street, mergers and acquisitions, not in oil patch there is a focus we will not get back to this kind of pbull run with u.s. shale where people overdrilled and there was too much supply. we also have an industry, something called -- incompleted wells. that inventory has shrunk dramatically i think that's another reason why we are not seeing the price spike. pe aren't prepared. that's another sign of capital discipline a lot of people having broken that or pulled that rubber wand off or pulled that band-aid off to really try to accelerate right now because they are still focused on that no it's amazing economic scarring is what it is. dan, really helpful. great conversation hope you'll come back. appreciate trjts yeah, sure. are. speaking of oil, our phil

lebeau caught up with the ceo of alaska air to discuss the rise in both travel key manned as well as jet fuel costs >> those jet fuel costs certainly will be a topic here at alaska airlines investor day in new york city earlier today when we talked with the ceo of alaska airlines he said it is an impact because they are going to be seeing higher cost per available seat mile their guidance which they just released today, they will be profitable but their government targets a little bit under pressure because they will have higher costs, up 3 to 5% here is the reason why take a look at jet fuel costs. they have doubled in the last year when we talked with them, how do you offset this? you are hedging at $70 a barrel. the market is at 110 he expect today stay that way the remainder. year and higher ticket prices will be one way they offset that impact >> you can only increase ticket prices so much before demand trails off we have to be careful.

you know, fortunately, you know, for our business model, you know, we got a low-cost business model. we're hedged we are going to try to moderate the level of ticket prices >> a lot of cross currents in the aviation industry, in the airline business right now you do not want to miss our interview on "squawk box," faa administrator steve dixon. he leaves office next week before he does that he will talk with us about the state of the industry also what he thinks about the facemask mandate out there through april 18 i want to show you shares of nicola they ar up 9% today after they have begun production of the electric semi now that they have gun production, that's the reason shares are up more than 7% today. guys barks to you. >> a busy week on your beat, phil. as we go to break, look at the markets this morning once again tight range

4480 or so morgan stanley with a moment, joining goldman in looking for 50 basis point hikes, both may and june meetings. stay with us

the world's second largest cryptocurrency ether is outperforming bitcoin amid progress on a long awaited software upgrade kate rooney has that upgrade. >> it hasn't happened yet, but developers are reporting progress in this year's long transition that is sparking a new bullish sentiment around the cryptocurrency ether ethereum is set to become more efficient, cheaper to create and use a lot less energy. that energy part has to do with what they call mining or creating new crypto, it requires a lot of computing power and the carbon footprint has been one the main critiques of bitcoin

over the years and other cryptocurrencies in order for it to happen, ethereum has to merge on a test network. the test appears to have gone well, the last before the merge, which is expected later in the year this excitement is happening despite other potentially bearish news about ethereum. the overall network activity has seen a significant slowdown. that tends to be a leading indicator of prices. fund strap points this out and says despite the underlying fundamentals, including that slowdown, the ethereum upgrade will be universally viewed as a price catalyst and it is possible that ethereum can perform what they call remarkably well the rest of the year sentiment, guys, is important, of course, but ethereum is maturing you've got to pay attention to the other factors including futures markets and like bitcoin ether is rate sensitive, trading

a lot more like a high growth tech stock than uncorrelated asset. and it could be a by the rumor moment that ethereum 2.0 upgrade might happen until the third or fourth quarter of this year. back to you. blackrock's larry fink noting that the russia/ukraine crisis could ok celebrate digital currencies writing, quote, a global digital payment system, thoughtfully designed, can enhance the settlement of international transactions as we see increasing interest from our clients. blackrock is studying digital currencies to discuss let's bring in cumberland's global head chris, great to have you back the underlying fundamental and what kate laid out in terms of the price action we've seen in bitcoin, in eitherer and the cryptocurrency markets overall as we see this ukraine/russia crisis continue to unfold. >> sure. you know, environment is, arguably, the most complex environment the industry has

seen i think as a result we have a lot of [ inaudible ] complex contract structure like options that capture that volatility that said, what we are noticing is that the debate around the store value argument versus the risk on argument is becoming a bit contentious. as a matter of fact, what we believe is happening is there is two examples those disemploying assets from a risk on/risk off perspective this at the core why we have been in a tight range, 36,000 to 44,000 the past couple of months. >> got it. i want your thought on black rocks's fink's comments in that note and specifically the role that russia and ukraine could play in terms of accelerating digital currencies we know it's been used to get aid to ukraine, for example. there has been also on flip side of that a lot of speculation, if

you will, that it could be used as a sanctions dodge in russia, too. how does this continue to propel or change the narrative around cryptocurrencies >> you know, i think they are both very important topics to discuss. first andforemost, the respons by the crypto industry to the sanctions i think has been in full support of applying those rigorously what's been confusing to me is this perception that transactions in the bitcoin and other crypto currencies are opaque as a matter of fact, they're arguably more transparent than what we would see in traditional financial markets given the block chain going all the way back to genesis block. so that coupled with sound alm will put the industry in a really good position to track elicit activity. having said that, something that's really important to acknowledge is any time that there's geopolitical uncertainty, there's some amount of concern about fiat assets and

currencies and whether they will continue to hold their value and what we're seeing with the russia/ukraine situation is that more and more people in western world are starting to acknowledge the fact that a decentralized asset that is not tied to a centralized government has a lot of kind of risk mitigating aspects that are interesting to individuals trying to, let's say, work around the concerns that they have around access to their own financial assets within their country's banking system >> yeah. think specifically refers to the ability to lower cross-border payment costs. and i wonder whether or not you think some of the -- if we call this a use case sadly, if it's going to turn around the views of some people who have been really skeptical and critical of crypto, i'm thinking of a charlie munger called it a disease, or jamie dimon had some other choice words for it. i wonder if this changes their mind a bit >> you know, i think it will it's perfectly natural any time a new innovation emerges for

people to question it. it's new they don't understand it but as more industry efforts are put into development into the underlying technology and more education takes place, i think it's natural for people to see these use cases. we have talked about stable coins as a way to offer access to banking services that the underbanked population don't have access to right now that's the same concept that we're talking about for war-torn countries that no longer have a viable financial system. so, at its core, i think these cross-border remittances afforded through things like stable coin will absolutely be one of the pillars that this industry grows up around over the course of the next five years. >> always great to get your thoughts thanks for joining us. >> thank you great to be here coming up this morning on "techcheck," google, as you may know by now, giving into spotify on payment choice. plus, uber striking deal with new york city taxis we'll talk about both of those stories in a lot more. begins in ten minutes at 11:00

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the tape today s&p just south of 4,500. vix around the 23 range. s&p is positive for the week and will remain so as long as we're above 4463 so about 20-point cushion right there so far. we'll be right back. stay with us ♪ ♪ ♪ we all need a rock we can rely on. to be strong. to overcome anything. ♪ ♪

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nasa announcing it will support development of a second commercial lunar lander tocarr astronauts to the moon's surface. nasa had surprised industry and lawmakers last year by awarding a nearly $3 billion single human landing system contract to spacex for its next gen starship that triggered unsuccessful legal protests from competitors both team led by blue origin blue origin in particular waged a very intense campaign with jeff bezos even offering to cover $2 billion worth of development costs. no details yet on this new

competition, though expectations are that blue origin and dynetics will be back in the bidding. expect on that next monday when we get president biden's 2023 budget request, which will be in focus for investors in defense stocks as well that's going to do it for "squawk on the street. "techcheck" starts now ♪ ♪ good thursday morning. welcome to "techcheck" i'm carl quintanilla with deirdre bosa and jon fortt. the battle of in-app payments continues. get a breakdown of google's new concessions for spotify and what that could mean for apple and millions of small developers. then, globalizations counterargument as larry fink calls for an end to 30 years of globalization. we