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tv   Varney Company  FOX Business  February 24, 2022 9:00am-12:00pm EST

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the derivative consequences of hair benevolent pursuit to save the world through climate change. and i feel like right now putin's playing chess while biden's playing checkers. putin's thinking three steps ahead, but biden can't see the second and third derivative consequence of his actions. we can't make mistakes now. maria: yeah. well, there has been serious consequences already. gentlemen, thank you. have a good day, everybody. we'll see you tomorrow. "varney & company" picks it up from here. stuart: good morning, maria. good morning, everyone. yes, putin has invaded ukraine. at 5 a.m. local time, his troops came in from neighboring belarus and elsewhere. they are now fighting ukrainian forces directly. explosions have been reported in kyiv, martial law's been declared. people are fleeing the capital. prime minister zelenskyy has -- president zelenskyy has directed
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his people to take up arms and night russians n. president biden's immediate response will be new sanctions. he's expected to hit russian banks. the big question is whether he will sanction russian oil and gas companies. if he does, look out for a very sharp rise in gas prices here. right. let's get to the markets. oh, look out below. the dow will open with a major selloff, down about 770 points. that is much better than 2 the %. the s&p, now, that's a broader index covering 500 big companies, way down as well. that's another 2% loss. look at the nasdaq, taking another serious hit, down 3%. that's the early going. cryptos down along with stocks, following stocks, actually. bitcoin price now at 35,4. when stocks and cryptos tumble like this, a lot of people just don't want to look at their 401(k). who wants to see how much money they've lost? but this is a major selloff, and
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it will hurt your with pension money. here's where energy price inflation comes in. oil hint $100 a barrel this morning. it's at 99.62 right now. that means gas prices will go up, possibly hitting $4 a gallon for regular fairly soon. it'll be $5 or even $6 in western states. the overall inflation rate will also go up because the cost of energy goes into everything. two safe havens to report for you. money is flowing into the 10-year treasury. that raises the price and it drops the yield all the way down now to 1.86%. that is a huge move. fright to safety. gold -- flight to safety. gold making a big move. it's getting very close now to $2,000 an ounce, 1961 to be precise. if so this is where things stand. putin has launched what looks like a war for regime change in ukraine. mr. biden is now a wartime president. the eyes of the world are on him.
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all right. russia has,s indeed, unleashed a full scale invasion of ukraine. we're going to have live reports from russia, ukraine and the white house in moments. but let's go straight to the markets. we've got red red ink all over the place. give us the highlights, lauren. lauren: yeah. coming into today you had the s&p 500 in correction territory and the nasdaq very close to a bear market which is down 20% from the highs. investors are seeking safety in government bonds. look at yields. they're at 1.8%. gold is higher but so is aluminum. prices there, record levels. nickel, highest in a decade. palladium and corn up 5% each. so russia is more than this giant gas station to the world, it exports other commodities too. so as inflation for everyone is set to spike further, now goldman sachs comes out and says, yeah, there's a lower odd of a 50-basis point hike next
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month. stuart: 313 -- 13? that that's it? the fed has got to react to what's going on in the market. you can't raise interest rates real fast, real soon, so they're hedging back on the half point -- lauren: right. so they -- you likely get 25. mr. brenberg. russia's invailedded. spell out the impact for americans. >> $4 a gallon gas, that is coming very soon. i think it could go much higher. think about the coastal states, you're talking $5-6 a gallon. big problem. the inflation story is huge, one, because energy drives that; two, because of food. you've got the metal story, you've got broad-based problems here. lots of inputs. remember that producer inflation was at 9.7%. i think you're going to see that move up into the 11, 12, perhaps higher territory -- stuart: really? >> yes. because you've got to think about all the supply disruptions, and you've got to think about these inputs.
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nobody thinks about the metals, the semiconductors. we know that's a big issue when it comes to ukraine. you've got key components here that are exposed. stuart: let me pick up on that. >> yeah. stuart: palladium, we don't cover that market -- [laughter] maybe we should. i think ukraine and/or russia -- >> russia. stuart: russia is a supplier of this metal. we've got a supply chain problem added to the inflation problem. >> and, of course, semiconduct canners, that has been one of the big moves of inflation and supply chain problems. that's only going to get worse. remember, taiwan's part of that story too. you i know china's watching what's happening. that becomes a real problem -- lauren: potential sanctions could mean export controls, and that means we can't, we wouldn't be able to get some of russia's commodities. so watch what the president says today because they're going to advance the phase one with of sanctions that we already got. stuart: the key thing is does he
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sanction russian oil and gas companies. if he does, then up goes the price very, very quickly, and up goes the price of gas. do you have the latest on oil for us? lauren: i do. we saw $100 a barreled today. phil flynn calls it the worst case scenario, what's going on, he says it could go to 110. there's fear of supply disruption which has not happened yet, but french president macron say says sanctions will factor in the energy sector so just wait. you have europe hurting right now, and we cannot help. this is an opportunity opportunity, in my view, for the president to reverse course, right? he's not going to do it, but he could. he could restart keystone xl, reverse the ban withs we just saw a few day days ago or call saudi arabia and say you've got to pump more, opec. stuart: of course that's exactly what he should do, reverse course on energy. now. do it now by proclamation if you have to, but he won't do it, brian. >> he will not do it, and he's
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going to use this problem as an excuse for the inflation we see, as an excuse for the supply chain problems we see. america, do not forget it. the most strategic thing that could happen is open up energy. that's it, that's the game changer. stuart: okay. we've concentrated on the financial markets, let's shift to the politics of this. jason chaffetz joins us this morning. at times like this, jason, americans usually rally around the president. he is now a wartime president. will we rally around him? >> well, we want him to be successful, but he's operating in silence right now. i thought it was a terrible disappointment, a real lack of leadership. i think the president of the united states, the moment russia made that invasion into ukraine, he should have been on the airwaves. europe is waking up to silence from the american president. if you're going to lead and rally the world around the pushback of russia, you need to actually go on camera and talk about it. instead, the president went to
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bed. those sanctions were supposed to be a deterrent, but he still hasn't announced them. and i just don't understand what the president's doing other than just watching what's going on. stuart: but you surely -- i mean, what would you advise the man to do? he's not going to send troops into ukraine. you can't send new weapons into ukraine. it's too late for that. what do you do? >> well, the president -- look, russia didn't make move in the last 48 hours. he telegraphed it more than six months ago. we saw the troops amassing for a long period of time. and what brian was talking about, energy production domestically here in the united states and telling our european if partners that we have the gas, the liquid natural gas, the other energy products that you need, that we will have your back, we could have done that. you could have armed further the people of ukraine without sending in u.s. troops. there are a whole host of things. but it requires leadership and it requires going not just to
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nato, but other european countries and saying we are the united states, we will help you, and we will push back on russia. but the president of the united states -- he sent kamala harris to the german -- it's her first trip to europe. i mean, it is not time for the rookie to get into the game and supposedly scare russia. stuart: okay, look, this happened. president trump described vladimir putin as a genius. jason and the audience, i'd like you to watch this and comment. roll tape. >> i went in yesterday and there was a television screen, and i said this is genius. putin declares a big portion of the ukraine, of ukraine, putin declares it as independent. i said, how smart is that? stuart: jason, donald trump leads the republican party. is this the republican response to the ukraine invasion? >> no. i think, i think donald trump
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would agree, i think all the republicans would say this is a tyrant. what he's saying is, is that putin is out there spinning it, spinning it to the russian people, spinning it in ukraine and to the europeans, and joe biden is silent. that's the problem. it's not meant with a response -- met with a response from the united states president to show the absurdity of what he's saying. and so putin is spinning this in such a way, and i think the president is saying, well, yeah, if you're going to be the tyrant, that's probably a pretty smart thing to do. it is not admiration for the russian president, it is pointing out the obvious, that putin has the airwaves, he has the troops that are moving, but the republican response has got to be one that is just absolutely overwhelming. but you should have done that before hay went into ukraine, not after. stuart: what do you mean by an absolutely overwhelming response from the republicans? >> well, they said they were going to have some sanctions,
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the mother of all sanctions, but there were no sanctions when russia went into georgia that meant anything. when they went into crimea, you gave a -- there was a pathetic response from obama and biden. and so putin just thinks the door is open. you combine that with the debacle that was in afghanistan, and suddenly you have this weakness that invites tyrants to move. and anybody who's looking at this market, i think, is also factoring in that china is watching this, and you may see an acceleration of their going and moving on taiwan. this is not the best case scenario for the united states of america, and where is joe biden? he's going to give a talk later today? this is papa nettic. stuart: okay. i'll leave it at that. jason chaffetz, thanks very much for being here. professor brenberg, the eyes of the world are on our president. he's in a tough spot. maybe it's of his own making, fair enough that he's in a tough spot, right? >> it is his own making. we ask what could the president
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do now, and the answer from everybody is it's about what he's already given away. he's given away so much leverage in this situation, and vladimir putin for years has been picking it up everywhere that he can. this was not inevitable. there are policy mistakes that happened right here. that's what's so scary. and it's not just the president, by the way, it's europe. look, they are in a bind of their own making, and putin has all the leverage with them right now. and there's the no easy way in the short term to change that. i'm, but that's just the reality. stuart: lauren? lauren: he also made a calculation to say we're going to declassify information. we're going to tell the world what we think putin is doing, and we were spot on. he did exactly what he thought he would do, and we let him. we didn't do anything. so now we're -- anything that we do except for the nuclear option which is swift, that is, standards for the society for worldwide with interbank financial telecommunications. that's cross-border payment if,
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that's how russia connects to the regs of the world. you hurt russia, and you also hurt everybody else. that's the nuclear option right now, and that's something the president could do, and i think that's the only thing he could do. stuart: let's g to the white house and see what is likely to come down the pike later on today. edward lawrence is at the white house. are we going to hear directly from the president this morning? >> reporter: so i don't know about this morning, but i can tell you that press secretary jen psaki said once russia invades ukraine, we would hear from president joe biden, so we do expect that to happen. we'll have to see exactly when the timing of that. so far no timing of the president speaking. what's happened this morning is the president convened a meeting of the national security council. he's also talking right now on a prescheduled meeting with g7 leaders over video conference. they are obviously talking about this situation, how to react. so the white house is also working up ways to respond to the invasion that they're seeing in ukraine. so far publicly we've only seen a statement of a readout of a
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phone call between president joe biden and the ukrainian president. in that statement the -- the president says the ukrainian president asked me to call on leaders of the world to speak out clearly against president putin's flagrant aggression and stand with the people of ukraine. so the state department now has suspended all operations in ukraine. the embassy moved to leave, now all operations have been suspended. the state department also warning americans in ukraine to take immediate cover. representative michael waltz, he's a former green beret and member of the armed services committee says now we need to see those extremely harsh sanctions imposed. listen. >> this is a historic moment, and it's a dark moment, and the commander in chief's success here and his strength is what the world needs to seement -- see. his strategy of holding back and hoping that -- [laughter] that putin behaves properly hasn't worked, it's the failed.
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>> reporter: so yesterday the administration sanctioned the nord stream 2 pipeline, the company that built that as well as the executives of the that. the u.s. isn't alone are. so far governments from the your european your onincluding germany, january japan, the united kingdom have all hint putin's inner circle with sanctions. as the aggression increases, the sanctions will increase. we'll have to see exactly what happens. stuart: we need a report from the ground. let's go to trey yingst who is in the capital, kyiv. trey, thanks for being on the show. what are you see right there, right now? >> reporter: stuart, at this hour russia is continuing its ground and air campaign against ukraine. in the capital of keefe in the distance -- of kyiv in the distance we can hear fighter jets roaring overhead. overnight russian troops poured into this country from the north and south coming from belarus and southwest russia and also up with cry -- from crimea, killing at least 40 ukrainian soldiers.
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we do know at this hour especially in the eastern part of the country there is some conventional warfare taking place. reports indicate that ukrainian forces are trying to hold lines in certain cities to prevent the russians from moving forward. there is one area of concern though here near to the capital, and that is the airfield. it is an area that was attacked earlier today by russian attack helicopters, and if the russians are able to take over this airfield near the capital, they would have a much easier time surrounding kyiv and, ultimately, launching an air and ground assault. moving forward, the big concern for the ukrainians is going to be keeping these russian planes out of the sky. we understand according to reports that the air defense systems, most of them that belong to the ukrainians have been taken out by russian forces and, again, at this hour those ground and air campaigns continue against the country. stuart? if. stuart: is there a sense of panic in the capital? i was seeing pictures earlier of a mass exodus with a traffic
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jam. is there an element of panic, trey? >> reporter: the mood here has shifted quite a lot overnight. we have seen these images of cars bumper to bumper trying to leave the capital of kyiv and fellowed -- flee to the west to a city like la vive and then, ultimately, even to the polish border. if this continues at level, we can expect to see many more people trying to flee even out of the country. a concern that once the russian forces come in, they could have lists of people that they would target. western intelligence analysts have told the americans about this, and that has been conveyed to the united nations, that russia could come in and target politicians or journalists, people who are considered anti-regime in moscow. one of the things to consider here is president zelenskyy. he is staying in kyiv at this moment, and he is basically urging people to stay calm. he has called on the parliament to improve the full -- approve the full mobilization and he has called on people to fight back.
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at the same time, he hopes a western coalition will come together to form against putin and ultimately increase those sanctions and pressure that will allow more weapons to land here in ukraine that will give the ukrainian forces a better defense, stuart. stuart: real fast, trey, zelenskyy has suggested arming the citizens in kyiv. have you seen any evidence of that? >> reporter: so far we have not, but the police station across from where wert at right now was full with officers this morning. there's a real understanding that martial law is in place, and the city is no longer a place to be going out to eat or going to the store. people are on high alert here, they are very concerned about this russian invasion, and her seeing the news. they -- they are seeing the news. they understand that ukrainian forces are diagnosing. a plane was shot down willing -- are dying. this is escalating quite quickly, and zing as the nato secretary-general pit, he
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described this as a war in europe on a scale and type we thought belonged to history. that clearly is not the case. stuart. stuart: trey yingst in the middle of it. retired military officer and texas congressman august flowinger. congressman -- ahing flowinger. what should america and nato do militarily? >> well, i sat with zelenskyy just over three weeks ago when i went to ukraine, talked to high-level officials. he's not asking for american troops inside ukraine. he head a -- made a very important statement. he said our borders matter, we're going to fight for them. we're going to do everything we can to preserve our freedoms that we had just over 30 years ago. and so when it comes to nato, i think the actions that nato is taking to insure with article iv that they're taking defensive measures because, obviously, any collateral damage could be absolutely catastrophic. so that's the right action for nato to take, but for americans,
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we're not looking to put troops inside ukraine. i wish we could rewind the clock because i do believe that this was completely avoidable, this environment of weakness that pride opinion has put us in -- president biden has put us in has allowed leverage for putin to do this invasion. stuart: well, there is some concern that putin doesn't stop at ukraine. that he threatens other eastern european countries as well. shouldn't we be sending a lot of troops into some of those countries to make sure we've got some defense against an extended attack? >> i think that's exactly why in the previous 4-5 weeks you've seen nato taking those actions to insure that they are moving air power and ground troops into position in places like poland. obviously, you look at bulgaria and other baltic countries that are right there on the front lines, and they always have been. this is why deterrence is so important.
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deterrence does not happen after the fact. we've talked about energy security and what zelenskyy told us was, you know, we could have avoided this situation had nord stream been shut down. you are right, stu, nato does immediate to have a strong posture -- need to have a strong posture. we immediate president biden to come out right now and issue strength, show strength by leadership and strongly condemn but also we need broad, sweeping sanctions that will absolutely cripple the russian economy so that the price for invasion is extremely high and that we'll feel it. stuart: we're not expecting to see the president until later on today, possibly this afternoon, and we're not expecting an announcement on sanctions until at least late morning. so at this moment, we're not seeing much from this administration. as the invasion continues. congressman, look, thanks very much for being with us and sharing your military expertise. we like that. thanks very much, sir. appreciate it. >> thank you, stu. stuart: gotta get back to the
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markets because the market actually opens in, what, eight-and-a-half minutes' time. you're going to see a ton of red ink including on the cryptos. lauren: cryptocurrency is falling about $150 billion wiped out of the broader crypto market in the past 24 hours. i think the bottom line here is that these are not safe havens anymore, and we're talking about higher energy prices. that's bad for cryptocurrencies because it makes mining them more expensive, so it's all tied together. people are getting off the crypto trade too in a big way. stuart: cryptos were not the inflation hedge we thought they might be. they're not a hedge against -- lauren: inflation, yeah. stuart: they're not. gold is a better hedge at this particular moment in time, right, brian? brian: it's interesting to watch this, the promise of bitcoin and the cryptos was a safe haven, and you see in an environment like this it is not. and you're right, the energy prices going up making it tougher to mine even worse on that front. stuart: gold very close to
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$2,000 per ounce. not seen that price probably in a decade. i don't remember exactly, but that is a big high. look who's with us now, gary kaltbaum. good to have gary onboard just as the market is about to show some serious red ink at 9:30. gary, it seems to me investors have got a choice, and the choice is sell now or ride it out. what grow do? many -- do you do? >> i'm never a big believer in just riding it out because we can go much lower. but i'll just give you the good news. i'm not so sure it's good news. at the open today the major indices here will be down 9-10% in in the last nine days. so we are about as stretched, extended and oversold to the downside and, of course, a huge dose of bearishnessing has now picked up, and often that are lead to decent bounces. the problem is we've been in a bearish market before russia happened. the growth stock arena is in a brutal bear market, so any if
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rally are, any bounce will not change the playing field or the big picture, but at least we could relieve all of the recent drops to the downside. so i would not be surprised if we did bounce a little bit here. stuart: is there possible good news from the fed? i understand with this going on in the marketed today, the fed will be reluctant to impose a big half-point runup in interest rates in march. could they back away from rate increases in the immediate future? that would be good news, i think, for the market. >> i think they will, but i don't think it's good news anymore. the fed has boxed themselves in. in the past every time markets dropped, they would provide easier money or lower interest rates or more printing of money, and that would stop the market or from going down. but now you've got the big wildcard, and that's inflation. and i think that's a bigger worry now than anything else that's going on. and now with the russia thing, i
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mean, you've got 3% -- 12% of the world's oil, you've got i think t about 50 percent of the palladium coming from russia, a ton of the wheat, so that's not going to help the inflation front. and, again, i've been saying this for too long now, the fed is just so way behind, they're, like, running a race against usain bolt right mow, and it's a shame. i believe economic and financial malpractice to still be printing money, 0% rates, while inflation's anywhere between 7.5-10% year-over-year depending on which numbers you're looking at. stuart: gary, this seems to me to be a nightmare scenario, and i think you're expecting this market to move even lower than it is now, right? >> i think, ultimately, yes. between inflation, geopolitics now it is going to hurt, and when all's said and done, the profits of corporate america. and if profits go down but
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interest rates go up because of the inflation, you have a one-two punch. and you're already seeing it over the last couple of months. it is in gear right now, that dynamic. and i speak to companies all the time and you just ask them one question, because of these higher prices -- much higher prices on some things -- can you plan for the next year, and most of them tell me, no. and that hunters investing -- hurts investing, that hurts hiring, and you can end up potentially in a vicious cycle of profits heading south. so i hope i'm wrong. i hope things get better, but this russia news does not help the situation in any way, shape or form. stuart: you're right there. gary kaltbaum, thanks for being with us on a very important day. we do appreciate it. now, the opening bell will ring in three-and-a-half minutes' time. let's set the stage here. dow industrials down about 800 points at the opening bell. the big loss though is going to be on the nasdaq which is down
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over 3%. i'm not sure in percentage terms how far down the nasdaq has gone, but that is a serious selloff, and it's extended all throughout this current calendar year. susan li joins us. give me the big picture, susan. susan: i will tell you this, there must be some distortion effect given that we are close to the end of the month as well, stu. and, you know, with options a terminology called theta meaning that the longer you hold the options, the less value it is it is. so there is this distortion effect what i'm hearing from traders about how far down we could go and where is the floor and where is the bottom. but there is a lot of fear. i saw the vix index climbing to the highest in 15 months, and does it surprise you, stu, even though we've had warnings about in that wall street seems to be caught surprised that there's this full scale invasion in ukraine. stuart: yeah. we had a lot of warnings, didn't we? american intelligence was saying they're going to do this, heir
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going to do that, and they did it. susan: yeah. stuart: you know, you're right, wall street really didn't pay that much attention. i mean it's the -- why not? susan: so here we are with the nasdaq 100, we are close to a bear market. we're down 20% from those peaks. but if you look at the fundamentals and look at the big tech, the apples, the amazons that are making $100 billion each each quarter that we've seen at least for the last two quarters, it doesn't seem to support the fact that we are back to these 2020 levels once again, does it, stu? there's got to be some rerating and rethinking of how much money that these companies haved made over the past two years. stuart: you're talking about the giants of big tech, the microsofts, the amazons, the googles of this world. and you're right, they've made a ton of money, but they've come so far down -- i'm looking at microsoft now -- [laughter] i'm sorry to indulge my own stock picks here, but microsoft's at 272. susan: yeah. stuart: three months ago that
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thing was at 350. susan: well, look at facebook and meta, we are sub-200 now. who would have thought that when we saw 380 levels less than 12 months ago for facebook and meta shares. as for the, i guess, broader s&p and the dow, how these big tech companies do really takes down the rest of the broader market manies as we know that the concentration now of their weighting is the highest that we've seen in more than 20 years for five stocks put together. so as apple goes and facebook and google and all them, that's how the s&p usually trades as well. stuart: what about this plight to safety in the treasury, the 10-year treasury? if that's a mark of the anxiety. you've got it all the way down below -- 1.89 right now. that's a flight to safety, isn't it? susan: if there's a silver lining, it's the fact that you have goldman sachs pricing in a 16% probability of a 50 basis point hike next month. you know, that was at 30% on wednesday.
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so that probability has been sliced in half in just a few days. stuart: yeah. i think it was 50% last week, if i'm not mistaken. susan: yeah. stuart: susan, we'll get back to you shortly when we find out exactly what's happening at the opening bell. in 10 seconds we will find out, and here you go. they're ringing that bell. there's grave anxiety surrounding wall street at thi moment, and here we go. it's 9:30 eastern time on this thursday morning, and the market has opened, and immediately it's down over 750 points. that's 2.25%. right from the start you've got almost all of the dow 30 stocks in the red. one of them's a winner. is that -- >> chevron. stuart: of course. with oil prices going to $100 a barrel, chevron's doing well. the rest of the dow 30 plunging into the red, and we're down 800 points for the dow industrials. show me the s&p 500, please. that is down 2.5%, a similar loss to the dow.
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and the nasdaq, i'm expecting the biggest loss of all, and there it is, 3.33% down for the nasdaq. it's back to 12,of -- 12,600, a loss of 440 points. that means big tech the has got to be really way down, and it is. i'm going to go through this for you. microsoft is down $7. apple is down $7. alphabet is down 45. amazon is down 80. meta platforms, as susan just told us, below $200 now. is -- at 191, down $6. those are plunging big tech stock prices, straight down. all right, susan, come back in again. anything else to add? susan: you want to talk about oil majors because if there was one sector that's outperforming, probably two, i'll throw in defense as well, those are the two sectors with oil. brent topping $100, so far this week at least bank of america calling $120 a barrel for brent
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crude, $110 in the second quarter. of course, the other estimates and as you know, that helps rally the energy and the oil majors which have been the best performing sectors so far this year, best performing sector last year. also we can throw in, by the way, the defense sector, i saw northrop grumman's i don't want performance because there might be need -- outperformance today because there might be the need for artillery in this ongoing invasion. bitcoin, i know you said that earlier, but i'll tell you this: cryptos, which has been called digital gold, this hedge against bad government policy, inflation, that obviously -- that correlation has clearly broken down, it and trades more in line with stock markets right now. but here's something just from a political angle that you might find interesting, stu. last night you had the russian-born canadian-bred founder of etherium who says that he's on the ukraine side. he says he's not neutral, ether
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is. stuart: okay. not having -- i don't know whether that's had much impact on etherium as well, it's way below $3,000, 2429 at the moment. now then -- susan: but i'll say this about crypto, is that defeat spite the fact -- despite the fact that we have had this big decline in bitcoin, now at 35,000, we haven't tested lows that we saw in the summer of last year when it went sub-30,000. so it's still holding above those levels. i think for etherium as well. so there might be an ongoing fear trade taking place, but i don't want to call in the a crash because it's not a market crash. we're still above levels we saw roughly six months ago. stuart: right. can we put tesla up on the screen? i want to see if it's dropped below $700. no, it has nod. it's down 5% at 728. susan: they're getting a bit of a buffer too, i would say. it probably would be a lot worse for tesla which i think i saw
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down almost 8% in the premarket this morning and, you know, there are reports that tesla -- which has gotten a boost from their shanghai plant -- it look like they are set to work on a new, a second shanghai plant as soon as next month. that means heir going to increase and double production there in china. they're looking to increase production at its current plant to one million. and here's something, stu, that with elon musk losing double what the next three combined have lost in the ultra-uber-rich list in the past week,-e last member of a $200 billion rich club. so there are no more $200 billionaires in the world now because of this global selloff. susan susan -- stuart: well, i'm sure bernie sanders and elizabeth warren will be delighted to hear that, but stockholders will not. okay. i don't want to get off of a tangent here, deal with alibaba real fast. susan: look, every company that reported is getting hammered today. look at alibaba.
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it was a terrible record card, worth sales since its 2014 ipo, and they're forecasting uncertainty because of the ongoing beijing clampdown on big tech and, of course, alibaba, jack ma has been part of that, caught up in that beijing, that anti-tech march from the chinese government. stuart: can we throw up the defense stocks again? northrop grumman because i'm looking for winners this morning, and the only winners i can find are defense stocks, and the reasons are quite obvious. you can expect military equipment to be in demand, and there you have it. up 2.5%, lockheed up 1.6%. raytheon was up earlier, now it's down a bit. general dynamics is also on the could beside. i'm looking for -- downside. susan: can we try moderna as well? i thought that was a really, or really strong report card.
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they expect at least $10 billion in vaccine -- [inaudible] sales this year. biggest beat in the company's history. they're raising guidance by at least 2 billion this year, and they're hinting a that most people over the age of 18 around the world will need a three-vaccine dosage. so that means better sales for them. stuart: well, that's one standout, isn't it? which has nothing to do with the price of oil or war in europe and all the rest of it. it's a vaccine company and up it goes. susan: yeah. stuart: what else have we got? show me all the dow winners. let's go through -- susan: hard to find anywhere. stuart: no. not a single item of all the dow 30 stocks, not a single one of them is on the upside. s&p 500 winners, what, there you've got mow derna, livenation -- moderna. anything that has nothing to do with inflation and war. nasdaq winners, are there any?
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yes, one. american electric power. [laughter] that, of course, is a utility. susan: right. stuart: and they're up because they've got pricing power -- susan: let me ask you this, stu, because you've seen type of market volatility over the decades and, obviously, knee-jerk reaction when it comes to confrontations around the world in gee no politics, a lot of people would say if you compare in the to the bear market we saw in 2020 and there are tens of millions of new investors in the market, do you think that that this might be a buying opportunity? stuart: well, i go back to the first gulf war. prior to that war stocks went way down, and as soon as that war broke out, stocks went straight back up again. i think it was probably the same in 2001 with 9/11. stocks went straight down and then recovered very quickly. thereafter. i'm not saying that the same thing will happen here because this is a different type of military confrontation. but history could show us that you get, as you said, the
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knee-jerk reaction when the war starts and then a rebound later. i'm not suggesting that will happen now. what do you think, susan? susan: well, this time around, and i'll just compare to recent history of what happened two years ago when covid hit in march 2020, you saw that market drop and then it was the shortest bear market in history with a recovery just a few weeks later. but back then we had money prohibiting, and d.c. having -- printing, and d.c. having the dry powder to be able to cut interest rates, print money. this time around with interest rates already near zero, we're looking at interest rate increases in a matter of weeks. also the money printing machines have been fanning inflation. i think d.c. in a stimulus rebound might be a little handcuffed the time around. stuart: yeah, i think so. looking for that immediate reaction is probably not what we should be looking for at this particular moment, in my personal opinion. to you agree with that, brian? >> you have inflation, that is the name of the game difference between every precedent we've talked about here, and that's what's going hold us down.
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stuart: the market's been open now for night and a half minutes -- eight and a half if minutes. i want to check that 10-year treasury, you're now at 1.89%. doesn't sound like much of a move, 10.5 basis points. that is huge. on the bond market, that is absolutely gigantic and tells you that enormous amounts of money are flooding into treasuries because they are safe. no matter what, you'll get your yield. you might lose your -- [laughter] you could lose some capital, but if you hold that bobble, you'll get paid -- bond, you'll get paid and won't lose your capital. the price of gold, $1,944 per ounce. earlier it was pretty close to 2,000. it's up 1.7% as we speak. another check on bitcoin. not taking it quite as badly as the market, although it's down 5%. 35,600, is your price. oil, it hit $100 a barrel
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earlier. it's back to only slightly to 9850. nat gas -- 98.50. nat gas, $4.75 per million british thermal units. i thought it would go higher than that. but gasoline still going up. not quite one cent per day but just wait. with oil at $100 a barrel, i think it's going to go up sharply. lauren: and talking about stagflation, higher prices with a backdrop of heightened geopolitical uncertainty will ultimately be stagflation if their, and energy crisis is the -- stuart: and who says that? >> bmo capital markets. stuart: look who's with us now, scott shellady, man himself. we're looking at $100 a barrel oil, are we going to see 10% inflation in the united states? >> well, we very well may. i mean e stuart, i guess i should kick it off by saying regardless of russia and ukraine, this is all our own
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doing. it's our fall. fault. because a large part of this issue is energy, just like susan just said, and the energy issue is, is the fact that not too long ago, 14 months ago, i believe, we were energy independent. and we also had 1.4% inflation too. but now that we have lost that energy independence, we are at the beck and call of everything else out there, and this could not have come at a worse time for energy prices. so unless we can get something reversed with the keystone or the land lease, the leases, i don't know how we're going to be able to get out of this because i think, you know, as mike tyson said, stuart, everybody's got a plan until they get punched in the face. i think the fed just got punched in the face. i wonder what their plan will be like going forward because this is, you know, inflation is directly linked to energy, and if you see energy prices skyrocket and they still go on this campaign of raising interest rates, are they going to cancel themselves out? what is raising interest rates going to do when oil gets to
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$110 or 120? who knows? i think that's going to be very difficult for them because a large part of the inflation issue in this country is energy. and because we don't have a control of that anymore, it's not in our court. stuart: scott, you follow the commodity markets very closely. i am told that food prices like wheat, for example, way up and rising even further which will add to food price inflation down the road. so i'll repeat my question, are we in for 10% inflation or 11% or worse because of what's going on with food? >> i definitely think in the short term, stuart, inflation's definitely going to go up. we could definitely see 10%. and you know what i say that and even as i sit here this morning we've got wheat, it's up. corn, it's up. and they're already very, very high prices because of the inputs you need to put those things in the ground. so we're already at record high
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prices. so i tell my friends on the way to church on sunday morning if they want to take the family out for breakfast and fill up the car with gas, if you've got any money left, give me a call and tell me how it was. stuart: very funny. i was expecting to see people lining up to buy gas this morning. on the grounds that it's almost certainly going higher in price, and there may be shortages. i've not seen it get. scott shellady, thanks for being here. see you again soon. >> all right. stuart: what are law makers on capitol hill saying? hillary vaughn is there. what do you have for us, i'llly? >> reporter: hi, stuart. members across the aisle are calling for immediate action to try to punish putin for what is happening right now in ukraine. a lot of congressmen and senators have criticized biden for not putting all the sanctions on the table up front when this aggression was percolating, and some are wondering if doing anything
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after the fact is going to stop him or deferer the -- deter him from doing more in the future. so we did get fresh reaction from senator mitt romney who said putin's impunity follows our tepid response to his previous horrors in crimea and georgia. the '80s called and we didn't answer. that is a reference to what then-presidential candidate obama and biden criticized romney for when they were running against him for being worried about russia as a foreign policy threat, saying that cold war mindset, that that's foreign policy taking from the 1980s. we're also getting reaction from the top member on the senate foreign relations committee, senator bob menendez, who is saying this: this unprovoked attack has brought into sharp focus the need to expel current kremlin leadership from the international community. today must mark a historical
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shift in how the world views and deals with the despot in moscow. there are some members pushing for additional specific actions today. senator blackburn wants biden to remove putin from the swift banking system. that is something that menendez has called the mother of all sanctions that would be the most crippling to putin. there's others who are criticizing biden for creating this situation in the first place. some republicans in the house have issued statements even just moments ago essentially saying that biden's energy policy crypted this environment -- created this environment that emboldened and enriched putin, and that's part of why you're seeing this really bold aggression even told. stuart? stuart: glad to hear that. a reversal on energy by this president would have significant effect, but we're not expecting it. hillary vaughn, thank you very much. back to the white house where ed edward lawrence is stationed at this moment. news on boris johnson, britain's prime minister. what's he saying?
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>> reporter: before or we get to boris, the president is now in the oval office. we to not know if the g7 virtual meeting has concluded, but we do know he is the oval office right now. i can also tell you that fox news has learned from a homeland security source that the cyber threat against the u.s. is still active as has been described, and u.s. banks could be in play. nothing's happened at the moment, but that threat is still active. now, on to british prime minister boris johnson. he posted a message already on twitter. his spokesperson said u.k. will respond with overwhelming sanctions against russia. now, in the message boris johnson, the prime minister of the united kingdom, calls putin a dictator. listen to what he says here. >> our mission is clear, diplomatically, politically, economically and eventually military, hideous and bar baric venture of vladimir putin must end in failure. >> reporter: and in no uncertain terms he goes on to
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say we must end the dependence globally on oil and natural gas from russia. he says this puts europe in a bad position right now and that has to end. we have not heard yet from president biden. the only statement we have is a readout of a phone call with the ukrainian president so far, stu. stuart: reverse on fossil fuels please, mr. president. edward lawrence, thank you very much, indeed. now, president biden's threatening more, quote-unquote, severe sanctions on russia. monica crowley is with us, former assistant treasury secretary, joins us. monica, he will sanction russian banks, probably. he may force russia out of the international payment system, maybe. but what has me worried is if he sanctions oil and gas companies because that would raise energy prices here bigtime. what do you think? >> yeah, you're exactly right. you know, there's not a lot of firepower left. president trump actually leveled a lot of very meaningful sanctions against the russian regime. so there's not a lot that we can turn to here, stuart.
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but you're exactly right. one of the main areas where we could really put some teeth to these sanctions is if we were to go after the russian energy sector. but, you know, you're going to lead our allies to go aa long with that, and the reason we haven't done it so far is because the germans are not willing to go along with it and so many of our other european allies aren't willing to go along with it because they're wholly dependent on russian sources for energy. so you're right, i mean, if we were to go along that line and issue these kinds of crippling sanctions on the russian energy sector, it would continue to drive up energy prices in the west. but really that's only one of two significant ways to really put teeth to this. the other way, stuart, which i don't anticipate the president talking about but which really would get putin's attention is to go after his personal wealth. and if you were to sanction his personal wealth by going after the russian oligarchs abroad who
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are protecting putin's wealth, that would finally call his attention to the fact that we are really serious about prosecuting this. stuart: but you don't expect him, the president, that is, to reverse course on the green new deal, green energy if, pipelines, nat gas, all the rest. he's not going to reverse course, is he? >> no. no, he's not going to because it's a critical part of the fundamental transformation of the american economy. that is driven by the white house and the left. so, no, they are not going to do that. stuart: got it. monica crowley, great to have you back on the show. see you again real soon on a critical day. thanks very much, indeed. >> pleasure. stuart: with us now, former national security adviser, lieutenant general keith kellogg. general, this is a full scale invasion. zelenskyy wants to arm his own citizens. could that give putin a bloody nose if he finds serious reaction inside ukraine to his forces? >> yeah, sure, thanks for having
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me. yeah, it would, but that's not going to happen. look, i'm watching this now, it's only been about 12 hours, and i remind everybody we're kind of in the middle of fog of war, so you really don't know much, and you should always discount the first reports. but it looks very clear to me that what putin is trying to do is decapitate the government, take president zelenskyy out, put somebody of his own choosing, if then -- and then he's going to decimate the ukrainian military. he's not attacking, which is unusual, he's not attacking civilian targets to a large degree or any of the major infrastructure. those are his two goals, it seems to me, 12 hours into a fight. that's where he's going. he doesn't want to have an insurrection on his hands by taking over ukraine. if they go to the hills and they start fighting a guerrilla are war, that's going to cause him enormous problems, and i don't think putin wants to do that. stuart: is it possible that putin's forces will form a land
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bridge with crimea and, therefore, block ukraine's approaches to any -- to the coast? they don't have any ports, they're got no coastline if he does that. that would cripple ukraine immediately, wouldn't it? >> yeah, it would, stuart. that's, i think, exactly where he's going. if somebody put a map in front of you and you showed the dnieper river, if you put your flank on that, if putin puts his flank there and holds that position from the dnieper river to the east, he's exactly done that. it's much more than just a bridge. he'll have taken odessa, a huge swath of land, and that's what he's wanted to do which is, as he calls it, protect the homeland. he can do that. he can get away with it militarily. but if he starts to expend himself well to the west, he's really overextending himself, and i think militarily that would cause him problems into the future. but i think you've got it right on your earlier comments where
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we really need to hurt him is economically with his energy. as you know, he provides one-third of the energy of the world, and that's his real weak spot if we can attack it. stuart: last one, general, why were we all so surprised? american intelligence has predicted absolutely correctly, on the button every single move for the last two weeks. they've been right all the way down the line are. why are we so surprised when putin actually does it? >> well, yeah, look, it's a question of leadership. you just don't believe it until it actually happens. i, to me, it's pretty clear he's playing true i to form. he's a thug, he's an autocrat, and we should have expected that. and there were people who said he would never do this, even zelenskyy didn't think he'd do it. well, he's done it, and he played true to form. stuart: by the way, general, you may be able to hear air raid sirens, that's live audio from -- i take it that is from -- that's video. that's not live, but the air raid sirens were herald all
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across ukraine earlier today. general kellogg, thank you very much for being with us on a vital day. we appreciate you being here. >> thanks, stuart. stuart: okay. reaction? >> yeah. look, we're talking about the swift regulations, cutting off russian oil and gas. here's the problem, europe can't handle it. if you make it hard to transact with russia, they can't get fuel. nat gas prices in europe up 30%. same thing with oil prices. boy, you'd think the allies are aligned here, they are not. stuart: right. >> when it comes to energy. stuart: any sanctions on energy that you impose raises the cost of energy, heating your home, driving your car. and that's politically bad news for the europeans and for the united states. >> and if you sanction banks, guess what? it makes it harder to get fuel from russia because you've got to transabout with them. lauren: and if there's a cyber attack on banks, we have a big problem. do you remember in june 2021, president biden basically gave putin the hit list. these are 16 crucial
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infrastructure targets that we don't want you ever to touch. well, a cyber attack is active now, and we are vulnerable because putin has that hit list of 16 vulnerable targets right now. stuart: good stuff. all right. let's go to moscow. let's see what's happening there. amy kellogg is there. the latest please, amy. >> reporter: hi, stuart. well, the know nobel peace prize winner for 2021 and the editorial to have in chief of -- has just put a message on social media saying that they all feel a deep sense of grief and shame about what's happening, and they have decided to publish the next issue of their newspaper in both russian and ukrainian to show that ukrainian is not the language of the enemy. he's also, stuart, calling on russian ares to launch an anti-war movement, and we have started to see some black
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anti-war messages, sort is of symbols going up on social media. even that is quite a risky thing to do here in return shah -- russia. one of the most prominent human rights lawyers here asked for people to come out at 7:00 this evening which is not too far from now, not too long away in cities to protest the war happening right now in ukraine, and she was detained as she left her house a short while ago. it's not sure -- it's not certain where she is right now. this as president putin tries to carry on with business as usual. he met shortly after he issued some very stark warnings to the west and the rest of the world as he announced the attack on ukraine. okay. i wanted to say -- wanted to paraphrase or say what he had said in that remark, stuart, and
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it was basically that -- i've lost the transcripts, but it was his warning to the west that russia instill a very important, one of the strongest nuclear powers in the world, and if anyone tried to prevent them doing what they are doing, that he would retaliate in ways that the rest of the world has never seen before. so that has really resonated with people around the world, and it is not clear how long this is this is going to go on. his press secretary said just a short while ago it is president putin himself who will decide the timeline of this operation, stuart. stuart: he's talking tough, and that's a fact. amy kellogg in moscow, thank you very much, indeed, amy. back to yaw later. of dan hoffman is with us later, a former cia station chief of who actually served in moscow. all right, dan, who gets the blame? >> well, there's a lot of blame
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to share among successive administrations. you know, historically -- and this is not, by the way, an intelligence challenge, it's just vladimir putin, first thing he did was to launch a war on chechnya. after that he struck out against georgia in 2008, invade ised ukraine, annexed crimea in 2014, and then he deployed troops overseas for the first time since the collapse of the soviet union to buttress dictator bashar al assad's efforts. he's won every single one of those wars. he's made it clear that ukraine is russia's enemy. and he put 70,000 troops on the border back in april, and what he got was a summit with president biden. so we've noted throughout the program, you know, this was a very clear, there was clear indications and warning of a what vladimir putin intended to do, what he could do, and we never effectively deter thed him from launching against ukraine. and i will just highlight that
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punitive economic measures have never altered vladimir putin's calculus when it comes to his geographic space in his own neighborhood. stuart: it was the europeans who balked at these sanctions because if we did impose sanctions on russian energy, it's the europeans who freeze this winter and who pay an exorbitant amount of money for energy for their factories. it was the europeans who really balked at making serious consequences to the russians. am i out of line? >> no, i don't disagree in the least, but based on my experience at cia and trying to see the world through the twisted eyes of the kgb operative in the kremlin, he's willing to pay an economic price in terms of sankings. he lost are about 1% of his gdp after he invaded ukraine the first time. so, you know, we should have imposed sanctions, but at the same time, we needed to accompany those sanctions with
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strong diplomacy. we failed to do that and to provide ukraine the military assistance that they needed. we've failed to do that for the better part of a decade, and i think that's where the heart of the problem really lies, and i think that the dependence, economic dependence on russia which you rightly highlight certainly made some of our nato allies a little bit nervous about providing some of assistance. the germans aren't providing much of anything at all whereas the baltic states are. i'd also highlight that today the pakistani prime minister is in moscow of all things talking about a gas pipeline to afghanistan. so the russians are actively looking for other options to export their hydrocarbons to china, i expect russia to become more dependent economically on china. stuart: last one, 30 secs, is one of the objectives of putin is to regime change? get rid of zelenskyy? >> oh, yeah. i think that vladimir putin wants to own the government of kyiv. absolutely, yes. stuart: just that simple.
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dan hoffman, thanks very much for being here on a very important day. we do appreciate it. thanks a lot, dan. last word, anything -- we have 20 seconds before -- [laughter] >> putin doesn't care about sanctions, number one. number two, he's been prepping for all the economic damage for years. he's built up foreign reserves, he's aligned with china. he knew what we were going to do, stuart: stay with us a bit longer. it is 10:00 eastern. let's check the markets which have been open for 30 minutes. we went down 800 points for the dow industrials but it is a major-league selloff down 646. the nasdaq composite tumbled down 3% moderating a little bit down 1.4%. don't know what to read into
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that but downside stability. big tech down, i can't find a single big tech company which is near flat. big tech, this is for radio listeners. it is down 186, that yield is still down. bit coin was $30,000. it is down $40,000, down 16. all your, all about energy. it was $100 earlier and is up 5%. i've got big tech, microsoft
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down $3, apple down four, apple down 14, amazon down 56. all those losses for big tech are less. jim lowell at 10:01 eastern time. what is your take? >> the market is behaving rationally. we are seeing safe haven, recovering off of its morning lows, they were not prepared for declaration of war pricing sanctions so re-pricing, gold and oil up. that lets us know the fear trade is in full swing. stuart: for the ordinary every day investor it seems they have a choice. you can sell and get out where
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the going is good. what do you think? >> that the binary option. from every major crisis going back to world war i on average the market has been up 6 months to 12 months after these significant events. the best maneuver is to do nothing. i expect them to build their bond buffers. as a long-term investor, taking advantage of this volatility. these early days, we don't know the full extent of russia's intentions.
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stuart: this fills me with anxiety. we are following it closely. now this. russia has embedded ukraine. your 401(k) has taken another big hit. the pension money of 100 million people is threatened. the price of oil, energy price inflation is going to kick in and when energy goes up everything goes up, everyone pays more. to agree of blame attaches to president biden? biden's energy policy gave vladimir putin opportunity and leverage.
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russia raised and built pipelines. what will our president do now? impose sanctions, yes. that has not deterred the russians so far and so are the europeans. enemies are emboldened, allies uncertain. mister biden is a wartime president. the eyes of the world are on him. let's bring been dominich. what is your analysis of biden's policy? >> you ran through everything cleanly. the reality is we have the judge the biden administration of another in a long list of foreign policy establishment failures when it came to this situation. everything you said was telegraphed. it was clear, in the intent of vladimir putin.
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it was never a mystery what he wanted to achieve and he telegraphed it early on and the biden administration telegraphed their own weakness early on. a history of failures when it comes to dealing with russia in the same positions with policy determination and nothing changes. the fear of this one is we are seeing the end of an america led post-cold war order that had been very good not just for the people of america but the world with large in maintaining peace and prosperity. the chinese are paying close attention as it relates to taiwan. the consequences of a move would be enormous not just on the financial side but global
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trade, domination of the pacific and more. i am concerned we have real lack of leadership not just at the white house on foreign-policy generally, without offering americans a clear path to maintaining our status as a global superpower. stuart: president biden will address the nation at 12:30 eastern time today. i would like to see the president reverse course on energy. build the pipelines, drill for oil, go do it because that is the essence of the problem at the moment. i don't think he will do it. >> i don't think he is either and that is a sign of how warped the climate focused agenda has been from day one when it came to moving away from energy independence and creating a situation that led russia to this. it is all about energy.
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this administration has shown itself to be unwilling to make changes in policy even after it has proven to be the wrong direction. we've seen no fire in this white house that has an agenda that is unpopular. we are going to see president biden double down on the same mistakes as throughout his political career. it should be unacceptable. there should be voices on both sides calling for him to reverse course. stuart: the price of our green energy policy is astronomical and we are paying for it. lauren, let's go back in history. were there signs, when did the signs first appear the russians were about to invade? lauren: the clearest was july 2021 region nsa vladimir putin penned himself, i am confident true sovereignty of ukraine is possible only in
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partnership with russia. our spiritual civilizational ties for centuries have their origins in the same sources was a have been hardened a common trial, achievement and victories lose together we have always been more successful so we are one people. he blatantly dismissed the independence of ukraine. that was 7 months ago. the independence of ukraine was a propaganda campaign by western enemies. we have his playbook. stuart: the intelligence service noted the troop movements and we didn't do much. lauren: they pride diplomacy and get nato allies on board and deterrence and it didn't work. >> we knew so much and did so little. right at the end, last week president biden put more roadblocks in the way of american pipelines was that tells you what you need to know how he thinks about the situation. he has no strategy.
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lauren: after afghanistan this would have been a political win for him, how he was dealing with russia. that opportunity was destroyed and we see that in the latest polling. stuart: markets have been open 39 minutes and we have the dow down 750 points, the nasdaq is lower to present down. across the board we are down but we have some movers. warner: it is up 1.5%. russia is the third largest producer of gold highest level since september 2020. many gold producers are down. one of them is lower by 3%. airlines sharply lower. the major international players america and delta are down but looking at a low cost carrier east of europe that is down sharply as well, jet fuel is a. i have a big winner. palo alto networks is up 7%. cyber security.
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we are worried about attacks here and president biden gave him the hit list over the summer. the start of don't touch them. i they are limits? we don't know. stuart: we had plenty of warning of a cyber war situation. i hope all those pipeline companies hardened up because they were hacked a year or two ago. dave: shipping and logistics. he has a history of going after those firms was that could stall fragile supply chains. stuart: the big thing is inflation. this is inflationary environment made use by green energy policies. we are almost at 10% inflation. how high are we going? >> i put my number on the producer side. you can see 12% inflation. you can see above 10%. that is food, energy and all these metals and inputs no one
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is talking about but are centered in a region. stuart: inflation, 10%, the fed has to do something and the only thing they can do is raise interest rates. that would possibly create stagflation. >> the perfect storm and the end of the perfect storm in any economy is stagflation. with this kind of scenario. stuart: appreciate you being with us. check the markets. the dow is down 700 and nasdaq down 150 as russian forces launch a full-scale war against ukraine. a report live from the ground in kyiv, ukraine's capital city. next.
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even walking was tough. i had to do something. i started cosentyx®. cosentyx can help you move, look, and feel better... by treating the multiple symptoms of psoriatic arthritis. don't use if you're allergic to cosentyx. before starting...get checked for tuberculosis. an increased risk of infections some serious... and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me.
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stuart: if i said to you the nasdaq and the s&p are at their highs it is the truth. at one point the nasdaq was down 300. now is down 104. the s&p was down 100. now it is down 53. there is a come back for those indicators. the dow still down 630. explosions and sirens hurting ukraine's capital, kyiv. what is the latest? >> reporter: good morning. we are learning russian forces have crossed the border from belarus into the chernobyl zone of northern ukraine. the interior minister, these troops are making their way down to the capital of kyiv amid another battle taking place close to the city 15 miles away.
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there is a military airfield taken over by russian forces after it was surrounded by attack helicopters. ukrainian troops are trying to take it back. dollars overnight happening quickly as russian troops made their way into ukraine not only from russia but belarus and crimea and the coming hours will be significant as kyiv braces for more conflict. the mayor of the city called for a curfew that will start at 10:00 pm and go to 7 am. ukrainian president zelenskyy is asking people to pick up arms as he was under the medicare for its to bolster support from western allies like the united states and billion anti-vladimir putin coalition. stuart: thanks a lot. ukraine's president zelenskyy addressed the nation after putin launched the invasion thing russia with on the side
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of evil in ukraine will not give up its independence. here is former spokesperson for president zelenskyy, where does this leave zelenskyy? i hope america has a plan to get him out before he is captured. >> thank you for having me here. the president -- it is about all ukraine. it is a strange day for ukraine. we woke up at 6:00 am and heard explosions. it is really something unbelievable and strange. the president is trying to do everything to find any solution. we have two directions was the first is that we rely on armed forces. to find the country and we see russia is unstoppable but at
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the same time we know in the east and the north and south of the country, captured by ukrainian army, a lot -- very little of that. we rely on our western partners. we don't see an opportunity to stay independent. western partners behind us. president zelenskyy talking to his colleagues and the first call was with president biden. we get a lot of support from western countries and we are grateful for this was the only things we do not know is what. vladimir putin.
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it is the biggest fall in the history of the russian stock market in general. everything will be bad monitoring that, with crisis and everything. a lot to do with all of this, we are counting on in ukraine. ukrainian this fight and die across the country. we don't know how many people die today. stuart: i don't know where you are in ukraine but what is happening on the streets outside of where you are? >> i am in kyiv. especially in the southern region. the region in crimea, eight years ago. it is a very heavy fight and i'm very worried about my family. stuart: what about the streets
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of kyiv? we've got pictures on screen of a huge number of cars trying to get out of town. is there panic on the street? >> the city of kyiv is almost empty. in the morning there were a lot of traffic jams on the highways out of the city. tracking out of the city, people were panicking and there were explosions in the first half of the day. we heard the last explosion two hours ago. it is important to be apart from kyiv. they can easily collect more troops and then it will be easy to surround kyiv. people will be able to -- we see people have some kind of panic.
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they leave. they were buying water and food and trying to find shelter. stuart: go ahead. >> if i may add, western ukraine will be -- the chief -- airports suffered military units. military weaponry. stuart: do you know where president zelenskyy is and if there is a plan to get him out? you don't want him captured by the russians? >> very good question. he has his own security but the president and the politicians in ukraine are in kyiv. the president said he would be the last to leave the country. stuart: thank you for joining us, difficult conditions was we feel for you. see you later. take a look at twitter.
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stocks up. they blocked accounts that shared videos of russia's military activity in ukraine. come on. get out of here. >> they are not blaming the algorithms but human workers. there are real accounts of people who look at videos, deep fakes online. they were looking for fakes made by russia showing violence in ukraine and found them. twitter blocked their accounts. twitter made a mistake thinking those accounts might have been russian sabotage. they apologized and fixed the situation but it happened. stuart: glad to hear they fixed the situation. maybe they can fix their reputation at some point. i have strong feelings about twitter. president biden will make remarks at 12:3 eastern time.
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lawmakers on both sides of the aisle condemning vladimir putin's innovation. we will go to capitol hill with a live report. what politicians are saying after this. real cowboys get customized car insurance with liberty mutual, so we only pay for what we need. -hey tex, -wooo. can someone else get a turn? yeah, hang on, i'm about to break my own record. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ ♪ ♪ only pay for what you need. no two dreams are the same. but there is one van equipped to handle them all. for over 120 years, mercedes-benz vans have been built, upfitted and ready to go. because we believe dreams - should never stay that way.
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stuart: a senior us official is talking about russia's
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invasion. lauren: this is the initial phase of a large-scale invasion. we are at phase one. is there a face to? is there a phase 3? this official says russian forces have advanced from the north, the south and the east. one of those is from belarus to kyiv. what is the intention? this official says russian this have every intention of decapitating the ukraine government, getting zelinski out, regime change. they can do that temporarily. and they hold kyiv? stuart: can there be an occupying force the gets rid of militant ukrainians who will attack them guerrilla style? lauren: can we stop them
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economically? stuart: i don't think he about economics was long-suffering russian public, what does he care? that's my interpretation. we better get back to the market. we are looking at a 700 point loss for the dow. we have a comeback for the nasdaq. it was down 300, better than 3%. same with the s&p. there are some stocks big time, up and down. i call that a big time mover at bookings holdings. lauren: it is one of the worst performing stocks because you have the airlines and cruise lines down, it comes from motor and the blue tire vaccine sales are projected because the pandemic becomes endemic so
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you're constantly getting a shot. stuart: the best gainer of every stock. 500 on the s&p. many people think of this confrontation in ukraine is the biggest war of aggression since the second world war. harvard professor and author of the book strength to strength, arthur brooks, one of the leading intellectuals in the united states, good to see you. >> wonderful to see you. stuart: what does this mean for europe? >> it is a challenge to our fundamental values which is easy to get mired in the details of this person's claim versus that person's claim the what is the modern postwar west based on? rule of law, democratic
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capitalism, the idea we have open societies where people learn their success and stand up for values which i'm not saying the united states must go to war but go against activities that have impoverished nations for century after century. we are seeing a run-up in prosperity and peace of all the west since the end of the second world war because of the values they are transgressing now and this is why we should be against it. stuart: europe had unity with america and now it seems unity is split on russian energy pressure. what do you say? >> right, part of the reason is we are willing, the great economist to talked about entrepreneurship said prosperity will kill itself because prosperity will make people week or as the russians
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say, decadent. we see people who say we will not compromise our financial situation in service of abstract values. those abstract values are undergirding the financial security we had in the first place. don't forget first principles. it is worth pointing out one of the problems with nato is not that it is a tyrannical organization but it has been under invested by our european allies. they are spending less then they said. they are overreliance on the united states. stuart: i hate to cut you short but i only have a minute to answer the following question. what are the political implications in america? >> it an opportunity for president biden to stand up for american values, not to hedge his bets or shape the truth but
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to say democrat or republican, moderate, the force of goodness in this world for the force for peace, prosperity, rule of law, that is american democratic capitalism. that is why stuart varney came to the united states and we stand for even when it is costly. stuart: you are all right. good to see you. let's go to hillary von on capitol hill. >> reporter: theirs large concern and heightened awareness that there is an active cyber threat towards the us but there's a lot of activity happening on the ground. the source telling fox they are looking at major threats facing
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not only the grid in the us but a potential cyber attack hitting us banks and we did minutes ago get a new tweet from senator mark warner who is warning russia is fighting the connecticut cyberwarblers i encourage all americans to strengthen cyber defenses in light of the possibility of disruption. we talked to you, a lot of lawmakers are calling for immediate and crippling sanctions with this talk of bringing this energy piece to light. how critical energy is to vladimir putin's playbook. senator james lenkford said every dollar paid for russian energy they will use to murder ukrainian neighbors with america must increase production of energy. russia's economy is dependent
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on energy sales. we must make sure it immediately tries up. there is concern on capitol hill that president biden's policies and how he is responded to international crazy letters to this point. the most start criticism from congressman andy barr who lays out missteps biden has made starting with afghanistan, that projected unwillingness to defend our allies, biden extending the new start treaty last february instead of making vladimir putin make concessions to extend that. the fact that there was a non-response, it is passiveness. stuart: president biden spoke virtually, russia shattered the piece in europe and.
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stuart: here is the market's reaction to the invasion of ukraine. the dow is 700 points lower. here's a comeback for the s&p at nasdaq. let me show you big tech. there are significant differences. microsoft desire. earlier it was a dollars down. the rest of them pairing their losses. the 10 year treasury yield was all the way down to 1.84%. now it is 1.93%. the yield is kind of up there but it was 184 earlier. where is oil? west texas intermediate crude
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was $100 a barrel commonalities $97 a barrel, 6% higher. that is the markets reacting to the invasion. president biden held a virtual meeting earlier this morning. what do we know about it? >> reporter: it wrapped up a short while ago. the goal was for the president to rally america's strongest allies to counter vladimir putin? something he promised president zelenskyy. this is one of the steps he has taken. he convened national security council and is it a statement condemning russia's invasion of ukraine. the key is the president is not making any moves to counter vladimir putin without backing from other g7 countries. at this meeting the leaders said they would come up with a coordinated response overnight
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and agree together on the next steps each would take. the president said once this meeting wrapped up he would, quote, speak to the american people to announce consequences the us and partners would impose on russia for this needless act of aggression against ukraine and global peace. the secretary of state and secretary of the treasury accompanied the president because us sanctions are on the table. every expectation the white house will announce the sanctions earlier today. let's take a step back and look at what is in play. full blocking sanctions on two russian banks, full sanctions on five russian elites and their family members was yesterday came sanctions on the northeystream 2 pipeline. the eu, germany and the uk hit vladimir putin's inner circle
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with deep costs, trying to cut them from access to their international bank accounts and international financing. listen to the president. >> we have our next move prepared. russia will pay steeper price of it continues its aggression including additional sanctions was the united states will provide assistance in the meantime. >> reporter: a few moments ago we learned cyberthreat from russia remains active. they still believe a major target are us banks and the power grid. we will provide any information we get out of this address by the president as soon as we hear it but the government is telling americans to beef up cyber defenses now. the threat is not lessnau the invasion is underway. stuart: at that virtual meeting
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with the europeans, we do not know if the europeans agreed to a plan to sanction russian oil and gas companies. we don't know if they agreed to that. there really hurts europe big time. >> reporter: they've not given us any substance out of the meeting but we are pushing for it. stuart: i wouldn't want to be in the way of that. what is the white house saying about how sanctions against russia will hurt us? >> reporter: this was before the invasion. jen sake said will not affect us. >> it will not have an impact on the american people. they will have an impact on russian elite and financial institutions are trying to use those institutions to engage with western banks including
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vladimir putin and his inner circle. >> the financial times is reporting boris johnson is pushing for boris johnson to be dejected from the swift banking system. back in 2014 with the invasion of crimea, everyone agreed this would the too severe knocking 5% off of russia's gdp. do they do it now? stuart: we will find out later. vladimir putin sent a clear warning to the us. if there is any interference. >> translator: a few important words for those who might be tempted to intervene. whoever tries to prevent us, or to create a threat to our country, for our people, should know the rush's response will be immediate and lead you to such consequences with which you and your stories have never come across.
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stuart: vladimir putin is playing hardball. is not backing down. what are we going to do? >> this is the question, about the next ranch of sanctions and how stiff they are going to be and what they may affect. if you hit vladimir putin with energy, his real pocketbook, that is where it hurts but the spill off to other european nations will affect them and affect us in the big picture. one of the interesting things is the united nations security council, russia, which is shocking, and last night they had a big dustup at the un in which it was gavel to a close by the russian ambassador. there is an international movement to yank russia from the un security council seat saying they were given it as the ussr and not legally able
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to sit there. stuart: when american interests are threatened americans rally around the president of the day. will americans rally around president biden? >> great question. his poll numbers have been very low. he is making clear us troops will not be engaged but they are on the peripheral in nato countries but there's fear of expansion of what this looks like which i think he will see some kind of bump. the pending on how he responds and if he explains why we as a country need to accept we have to support ukraine, goes back to 1994 when they promise to give up nuclear weapons and we promised blanket security even though they weren't in nato. it doesn't trigger article 5 but it is something about
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principles and whether we will stand up to a dictator who is taking over a sovereign country. stuart: the practicality of it is what is going on in ukraine, russia, and europe. much higher inflation which is going to hit everybody. that is a political price mister biden has to pay. >> putting my political hat on the administration is going to change to say you are seeing these increases because of what is happening in ukraine, not our policies with billback better. that will suddenly be an explainer they can use. that said i think this is front of mind and the president will try to speak in one voice to all the g7 countries. stuart: we will be watching you with an important program, special report on fox news was back to the markets.
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not exactly a free fall as it was at the start of trading especially on the nasdaq, only down 68 points. earlier it was down 300. ukrainians fleeing their homeland after waking up to an all out war. we will speak with one man who stayed behind to evacuate hundreds of women and children. he is next. to go beyond ordinary etfs. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to for a prospectus containing this information. read it carefully. plain aspirin could be hurting your stomach. vazalore 325 liquid-filled aspirin capsule is clinically shown in a 7 day study to cause fewer ulcers than immediate release aspirin. vazalore. the first liquid-filled aspirin capsules...amazing!
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first psoriasis, then psoriatic arthritis. even walking was tough. i had to do something. i started cosentyx®. cosentyx can help you move, look, and feel better... by treating the multiple symptoms of psoriatic arthritis. don't use if you're allergic to cosentyx. before starting...get checked for tuberculosis. an increased risk of infections some serious... and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me.
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stuart: we almost 90 minutes into the training session was the dow is down 590 but come back for the s&p and nasdaq. they are down but nowhere near where they were this morning. come on in congressman michael mc call from the great state of texas. will you rally around this president has our interests are threatened? >> we had our differences. for almost a year we took no action to deter what happened in the last 24 hours deterrence with key but having said that now that we are in a postinvasion world it is
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critical we rally together as americans, republican, democrat. the first thing is to work on a sanctions package, tough sanctions where we cripple russia for the bad behavior. this is the most massive invasion since world war ii after hitler invaded poland, vladimir putin has blood on his hand and will pay a high price. stuart: his opinion. what the world needs more than anything else is a complete reversal of president biden's energy policies. we have to build pipelines, export as much as we can. enough with this green energy nonsense which is killing us. i can see you are with me. >> i preside in texas. shutting the keystone pipeline down while allowing vladimir
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putin to build his pipeline in europe when congress had mandatory sanctions on that and the presidential waiver in the interest of the united states was how is that in our best interest? this energy policy is flawed and needs to be reversed. for your viewers a big reason vladimir putin is in ukraine is not only legacy, empire, and nato but the key port in the black sea and controlling energy. he got his pipeline that president biden gave him and access to the black sea to control energy and that is where he makes most of his energy. stuart: is a tough situation. tough situation, see you again soon. our next guest lives in ukraine and evacuated his wife and children.
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central part of ukraine, in that region. what is your situation on the ground. what are you seeing? >> you can try to see, you can't see anything but what is going on is right now i'm in somebody's office. i don't have my phone. talking about cyber attack. also an attempt to bomb more places at 5:00 pm. i had to take shelter. hello? stuart: i hope you can hear me. have you seen action? have you heard gunshots, bombings, explosions?
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>> i went to the bombing area 20 km away from me. i was there after the attack a couple hours after. stuart: are ukrainians going to stay and fight. >> the biggest question, i think not. >> we heard pictures, and and the you don't think there's a guerrilla war? >> there talks about pro russian, i haven't seen it yet, the posts all over social
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media, and i didn't have time to deal with stuff like this. more focusing on helping other people to get out. >> they drive to the border. >> and they are waiting for a couple days and in the morning when everything went down and the bombs started flying all over the place, we are not going to go anywhere, we have our own families, and >> i will put on screen address on the banner across the
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bottom. and i can't pronounce it. >> ukraine -- stuart: you helped me out. we wish you the best of luck. brave man in the middle of it. it is now precisely 11:00, thursday, february 24. this is is a russia invaded ukraine, for every 242002. president biden will update us on sanctions an hour from now. that is what is going to happen shortly and this is happened on the market. it's not as bad as it was when the market opened. when "the opening bell" rang and 9:30 eastern time.
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the nasdaq has come back significantly. there has been some buying of tech stocks. the nasdaq is down 63 points. google up, amazon up, microsoft up. 90 minutes ago they were all down 2% or 3%. looks like there has been some cautious buying at low prices. long-term investors think they will get a bounce out of this. some of the big tech stocks are coming back. how about the price of oil? earlier it was above $100 a barrel. now is at $97.30. we have the highest prices since 2014. the 10 year treasury yield down to 1.84% and now it is all the way back to 93%. that is called a flight to safety.
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treasury securities are safely she will get your money back, certainly get your interest back, that is where people are going, for the certainty of safety. michael lee is with us. he has that look on his face. michael lee is and has been the super bowl. where are us russia invaded ukraine? what is the economic impact on us in america? >> depends how widespread these operation, and $10 a barrel, impacting the overall us economy. where it was in november, that makes a huge difference across the economy. where we were a week ago. i don't think it was dramatic.
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if it goes over all of ukraine, the beginning of world war iii, that could be catastrophic for everything. if he's just running military operations all over the country so he needs little resistance, that little slice is independent. i don't think we are looking for a major economic impact. what we have is a layer of uncertainty the way it down. my clients are saying what shall i buy? stuart: i've got to go away. we appreciate it. now this. russia has invaded ukraine, vladimir putin has rolled the dice, confident that biden is weekend europe divided. he seems strong and bold but is taking a lot of risk.
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russia's currency, the ruble, has tumbled. product get more expensive inside russia. interest rates have gone straight up. government bonds in russia yield 10%. the two biggest lenders in moscow had their value cut in half. don't try borrowing money in russia. vladimir putin faces military risk. president putin wants to arrest zelenskyy. will he send in the tanks to get him out? he put his best troops into this. if they get a blood he knows. that will give vladimir putin a third risk factor.
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after he annexed crimea they gave him an approval rating of 80% but with inflation, corruption is totally unchecked. he cannot guarantee acceptance by the russian people was the worst of this is a dictator can't back down. when faced with difficulties they double down so it the danger is a widening conflict with everybody loses. i want to bring in bill hammer. tell us, where are the russian troops and where are they going? >> i will take you through a good thing. everything on the map had some sort of military activity in the past 12 hours since this invasion began. this is kyiv, the capital city, population 3 million. there was a city hit in the northwest with the city of 1.5 million people, substantial towns here.
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dnipro, million people, likewise for odesa in the southwest. that is what we have tracked throughout the night. remember, try to think about vladimir putin's objective. one of three options. this river cut through ukraine starting in western russia near luhansk. there is thought he wants to change the leadership of the government. he wants to occupy the stern part of the country or this is the area that was invaded in 2014 and this is the area where you had a bloodied confrontation, 14,000 killed
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since that last invasion blues not only was this area taken but this was crimea. we saw forces come from every angle. yesterday when we were thinking of vladimir putin's options, one option was from the northeast. another option was from the east, almost guaranteed. another from crimea and the country of belarus, allowed the military installations to be established in belarus for the past 60 days and the buildup was significant. we saw it on satellite and belarus allowed russian forces to come from its border as well. he has the area surrounded, the president of ukraine, zelenskyy, how long can he hold
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on? stuart: you are not supposed to say this in journalism the only time will tell. great to see you again. general jack keane is with us. i'm told frequently what vladimir putin wants is to establish a land bridge from crimea up the coast. that would allow vladimir putin to stop ukraine from having any access. is that his objective or one of them? >> i agree, after the pre-assault fires that went in for a number of hours that were not as extensive as we thought and it is clear he's trying to avoid civilian casualties because the entire world is watching but those four objectives include what you are
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suggesting and that is approach from the south from crimea, crossing over sea of azov towards odesa. they will link odesa and cut off ukraine from any access of imports or exports from the sea and that is significant. that the primary military objective that has been assigned to operational forces. stuart: what should america's military response be? doing anything? >> things we can do, i am just assuming we are providing as much intelligence to the ukraine military as we can. some of our intelligence is exquisite and goes beyond what the ukraine military has.
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if they still need reinforcement of equipment and things, it is unlikely we can get that into the country proper. the fact is as of early this morning the russians have air superiority. there was not much air defense systems the military possessed. once you have air superiority which the russians have they are controlling that airspace. limited in what we can do as far as direct assistance in terms of ammunition and weapons at this point. i think what you are pointing out is on the market. my sense, this campaign plan is being executed, the most ambitious and complicated one he could have selected,
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simultaneous axis of advance all having their own logistical infrastructure because he wants a rapid collapse of the country. he intends to install a new leader who will be a ukrainian leader very likely, and that is a key political objective for him. the problems are he has -- he runs the risk of strategic overreach, which he has done. by that i mean he's going to be isolated in a way he's not now. nato will only strengthen resources and capabilities and take the gloves off and get with this. this is crucial. it was the ukrainian people that ran yanikovic out.
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that humiliated vladimir putin, frustrated him and as a result, crimea was annexed and that's why we're in eastern ukraine. these last eight years as opposed to getting ukrainian people to look towards russia, it stiffened their resolve. they want the west more than ever and don't want to be associated with russia. the people of ukraine will be a problem for vladimir putin going forward. how he deals with that will present some real challenges. stuart: they could give him a blood he knows. thanks, we will see you again soon. you are going to hear from president biden at 12:30 eastern time. he is expected to announce new sanctions. k t mcfarland says sanctions won't worker. first we will go live to kyiv
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first psoriasis, then psoriatic arthritis. it was really holding me back. standing up... ...even walking was tough. my joints hurt. i was afraid things were going to get worse.
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stuart: moment ago the nasdaq turned positive and is staying positive litigative sweeper points. the losses for the dow have been paired. have a look at big tech. such an important sector. earlier this morning every single one of these stocks was down. amazon has rallied, it is up 35. meta-platforms just below $200 a share. they are in the green.
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better check the airlines was all kind of travel companies are down, airlines are down across the board. as when going up, energy going up, bad for the airlines. with get back to give, the capital of ukraine. it is nighttime over there. >> reporter: we are learning more russian troops crossed from belarus into ukraine and are engaging ukrainian forces in the northern chernobyl region. if they are able to progress they can go down the road for two hours and be in the capital of kyiv, which will let them choke off the capital and put in a new government. that's what western intelligence analysts believe is the goal of russian president putin as he tries to attack the city from multiple angles was another area of
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concern has to do with the military airport taken over by russian forces 15 miles from where we are standing. of the russians hold the airport it will give them the ability to fly in armored vehicles and other weaponry they can use in a multipronged attack against this capital. ukrainian president zelenskyy has been clear more sanctions need to target the russians immediately, specifically vladimir putin and looks to put together a coalition of forces to push back against vladimir putin and put enough pressure on the russian leader to pull back from this assault was analysts warn it might be too late given this country in the last 20 hours has taken grounds and air fire. at this hour the ukrainians are continuing their preparation in case that offense of get launched against the capital of kyiv. stuart: we have reports of up
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to 5 million refugees. >> that's part of the reason you see us troops deployed to poland. they will help with this evacuation process that is bound to be a humanitarian disaster. we saw images from the capital of cars bumper-to-bumper on the expressway trying to make it west to the polish border. the refugee prices will be significant. it is the reason you see other european states stepping up to say they are willing to assist the polish in any refugee crisis was there is an understanding of their are millions of people fleeing ukraine it will not just affect poland but the entirety of europe. stuart: thanks very much. in an hour president biden will announce sanctions against russia.
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kt mcfarland joins us was the initial sanctions did not deter flattery putin. another round hitting russian banks or the international payment system or russian oil and gas companies would have a negative impact on europe and especially on us and wouldn't get him out of ukraine. that is a tough situation to be in. >> reporter: ukraine is in a terrible position was a year ago ukraine's fate was sealed because we gave up our energy exporting business and put the slammer on that and what happened? the price of oil and natural gas double. that gave vladimir putin extra money and leverage over european countries so sanctions, i'm happy they will happen but it won't make a difference to ukraine. it may make a difference to what happens next. stuart: what do you think
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happens next? >> is there a clue? is there a new leader in ukraine? will be in moscow puppet. the ukrainian military is fighting. as you pointed out in your monologue, that will make a difference. of russia looks like an aggressive bully and there are civilian casualties that is not going to be good for vladimir putin but if you get in quickly and get his puppet in, i think he's eyeing the baltic next. his goal is not just ukraine but to keep ukraine out of nato. his goal is to break the back of nato. stuart: you think he's not satisfied with ukraine, he moves on to other parts of eastern europe. you think he would mass troops and threaten them? a repeat performance?
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>> we don't know where this goes was if he looks like he gets ukraine easily and quickly with the rest of the world solving from his appetite is wedded. i have been to the court or that separates the three baltic states, estonia, latvia and lithuania from their nato allies with russian tanks could gather in two hours connecting russia to the baltic sea and isolating those three countries in the northern part of the nato alliance. but he will wait and see what happens. what is the world going to do? stuart: who gets the blame? does president biden get the blame or what? >> at this point i think president biden owns that blame. he shut down the american energy industry including american exports, he gave vladimir putin money and leverage over europe.
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the way to fix this is for the united states to go to russia, to germany and their allies and say we give you energy security. how about importing cheap liquefied natural gas. get off of rush and on to american energy. stuart: the president would have to reverse his energy policy in america, build pipelines, allow fracking and liquefied natural gas. i'm out of time. this is a crucial day and we are glad you are on the show. china refuses to condemn russia's attack on ukraine. i believe china is blaming the united states. is that accurate? ashley: it is. china says the us is guilty of hyping the prospect of war and urging restraint by all parties. china's foreign minister says
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the us is the culprit behind ukraine tensions and criticize western sanctions against russia as chronic irresponsible and immoral. a spokesperson sidestepped questions about whether russia's actions can be called an invasion but said the sovereignty and territorial integrity of all countries must be protected. china is addressing the need to address legitimate security concerns mentioned by vladimir putin citing american arms sales to kyiv. china back russia's demand for binding security guarantees from the us and nato. china and russia in lockstep. stuart: donald trump says biden is employing a genius strategy. take a look at moscow, the capital of russia, they are
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lower except for the nasdaq which was down 300%. now ever so slightly lower, it flipped to the negative column. dr barton, you are the most famous dip buyer on the planet. are you buying this dip? >> lord rothschild talked about the sound of cannons, sell at the sound of trumpets we the end of a conflict like this. i am nibbling at something, things have gotten oversold especially overnight with short-term trades. i like the oversold indexes for a few days. we have to keep watch carefully on what goes on around everything else with cyber security and all the other things. you might have a big dip here. stuart: you can buy the dip,
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trade a couple bucks here and there but i'm talking more long-term. with this energy price action we will see an inflation rate of 10% plus. with a 10% inflation rate at the end of this year. >> with your assumption of 10% inflation rate, if we go there, the market will have a tough time sustaining gains that we have seen, to get back those all-time highs with an inflation rate. i'm not sure we will get to the double-digit number. stuart: would you buy meta platforms? microsoft at 280?
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>> i am on the avoid for meta and facebook but i love buying microsoft on this pullback. stuart: you are back on the show. thank you for joining us. difficult market, this is difficult market to play. we are so far down with a volatile situation overseas. but susan is with us. she may will be dipping her toe into these ugly waters. susan: i would say ugly. the nasdaq has turned around. we were down 3% and the open. they are going into by discounts and there are distortions at play. we see a lot of shortcomings at the end of the month. a lot of these names, speculative tech names down 70%.
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you are closing off options that expire, a lot of people using options to play the market. you see this rotation back. look at the crowd strike and these really speculative names. obviously the big tech ones, the big five, discounts attracting a lot of individual retail investors. electric car names are getting big, rivien is a big one. and attractive to a lot of people when you are sub 60. remember this was a $100 billion electric car maker and closer to 120 a few months ago and tesla has bullish news and tailwinds on a second shanghai
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plant to start will take production capacity in one of the largest car markets in the world. the shanghai is the recent is the has gone to $1 trillion valuation. stuart: tell me about arc innovation, minor-league bounce there. susan: in a down market with all those headlines of russia invasion in ukraine, if we can bring up retail favorites. the high flyer, high momentum names, tells the retail investors, this time is different from the last bear market because they are new investors at play. talking tens of millions of new accounts opened and these are the names they flock to when
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they see discounts. stuart: they know how to use technology to jump in and can trade their accounts and there are millions of these people. susan: i want to bring up the oil names. there is no us oil supply cushion. we are looking at crude stocks, to the lowest since 2002, the lowest since january 2015, the lowest since september 2018. $100 a barrel for west texas if not 110 and they outperformed this year or last year. it is going higher. stuart: if president biden sanctions russian oil and gas producers in the world market
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prices go higher. susan: bank of america was calling 120. backed off 96 but that is still going strong. susan: talk about high momentum. crypto trading is highly leveraged. 80% of trades are leveraged meaning you don't bet $5. here is an interesting thread, 20 billion-dollar founder who is very influential and he tweeted this was a split between the algorithm traders and retail traders. look at the data, they decide bit coin should be 80% compared to the s&p 500. it is not official gold which it trades with a broader stock market.
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it's no longer an inflation hedge or hedge against bad government policy. if the s&p moves 1%, bit coin moves 4%. war breaks out. imagine the cascading momentum selloff in crypto currency. stuart: gold is the real inflation hedge. getting close to $2000 an ounce. might be 22 to be precise. susan: we talked about how it has plunged. we are still above 29,000 and the fact there is more money chasing crypto currency than gold. stuart: crypto is following stocks, land locked like that. dan hettinger joins us. we are eight months from the midterm elections was what role do you think this invasion and
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president biden's response play in american politics? >> an enormous role. we may be eight months from the midterm election but only several days away from president biden's state of the union speech on tuesday. whatever was in the text of the state of the union speech is being torn up. the state of the union, the status quo we had is completely changed. the politics, domestic politics are very much changed. he was going to go into the state of the union making a pitch for what is left of build back better which translate into domestic spending and i think the progressives have been in the drivers seat for the last two years will be marginalized by these eventss and you will see the rise in the democratic senate of more moderate voices. senator man and as, joe
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manchin. the issue is national security. that means we will talk about energy. europe and the united states will need substitutions for russian gas and oil. that means reversing current us energy policy not modifying it. stuart: do you think he will do that? will he say i wasn't exactly wrong but there is a new time and we need new thing so we are reversing the green new deal, he's not going to say it. >> out of the question but here we are in the process of canceling the nordstream pipeline. the answer is to revive the keystone pipeline, pretty straightforward. our problem is we are in a time we need a president reagan or president truman if you're a democrat. we have president biden and
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progressive democrats. reality will create enormous pressure on this white house to start easing energy production and release capital in the energy industry but a wholesale reversal is not in the cards. stuart: that is the headline i want to read, build the keystone pipeline says president biden. highly unlikely but one lives in hope. see you again soon. vladimir putin threatening to attack anyone who tries to interfere with ukraine as g7 leaders come out against the war saying vladimir putin put himself on the wrong side of history. more varney after this.
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stuart: the market has been
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open for 2 hours and 14 minutes. we are down across the board but not by much. you have the first invasion mail and/or europe, since 1945. it is not a profound reaction. major us companies which do business in russia and ukraine are bracing for tupper's -- tougher sanctions which the president will announce an hour from now. what are these companies doing to prepare? ashley: a retaliation of vladimir putin and the kremlin. let's look at the list. plenty of familiar names. mcdonald's, 4.2% of sales was when vladimir putin invaded crimea the us responded with sanctions. that prompted moscow to close a
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dozen mcdonald's restaurant and call for the inspection of other locations. pepsico, 4.4% of its sales come from russia in ukraine. the company broke ground on its third smack plant in russia, $116. coca-cola operates in 29 european and african countries and counts russia and nigeria as its two biggest markets was the soft drink maker says it learned lessons from the russian ukrainian conflict and is ready for all contingencies. boeing relies heavily on the supply of russian titanium, lightweight metal used in plainmaking. boeing says it is creating an adverse climate for its business but also threatening
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to disrupt the supply chain. marshall billingsly has negotiated with russian authorities for the bush and trump administrations ansays the outlook is grim no matter what contingency plans are in place. >> this is an unprecedented situation we face. the financial measures that should be taken would be unprecedented and pose significant business risk if president biden follows through. ashley: for some companies it could be a different story. we know spiking oil prices will boost revenue for exxon down 1.5%, but could benefit from higher oil prices. energy stocks in general have gained 20% this year, down today. analysts at jpmorgan say the escalation of geopolitical tensions could help lockheed martin and northrop grumman.
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those stocks are up, northrup up one person. no matter who does business in russia they are aware of the pitfalls and challenges and many have contingencies in place but with more severe sanctions expected repercussions will test the best of those plans. stuart: we will hear those sanctions less than an hour from now. i want to bring in senator marsha blackburn. you want to remove vladimir putin from the international payment system, the banking system. that would be the harshest possible sanction and would have profound negative repercussions for america and europe a. you want to go through with that? >> it is certainly something that should be a point of consideration.
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everything should be on the table because vladimir putin has gone into ukraine. they have conducted a full force invasion. they are continuing are going after ukraine, the infrastructure, going after airports, air defense. we expect they will continue this advanced and cyber. cyber infrastructure and everything. stuart: do you think americans are prepared to pay a high price for opposing the invasion of ukraine? we will pay a high price. >> we started paying a higher
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price the day executive order joe biden struck the keystone pipeline. we are seeing energy costs, inflation across the board, retirement funds impacted by the stock market. one thing to keep our eye on is china and xi jinping, the chinese communist party, how will they soft land this for vladimir putin? by giving them access to financial systems to the us and our allies to the nato countries. and discuss what the response would be. stuart: thanks for joining us which i'm intrigued by how high a price americans are willing to pay for this.
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i want to bring in a member of parliament in ukraine who joins us now. are you in kyiv? >> i'm in the capital. stuart: what is happening? 's place deserting? are there young men on the streets with guns? >> looking outside, that's what i have in my hands. i received it like many thousands of ukrainians now who are ready to fight for our country, streets are deserted. many people moving to the rest of the country but many are ready to use it. stuart: i hate to use the impression are you going to fight to the death, but are you? >> yes, and not only me. by the way, at the beginning of
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your conversation with the senator, the prize for american citizens, the price for all people and american citizens of vladimir putin will not stop will be much higher. we have a crisis in chernobyl, the famous nuclear station where catastrophe was in 1986. russians are moving from belarus to kyiv, the nuclear station, that is extremely dangerous. ukraine is full of nuclear stations, ecological disaster, that is one of the things was the second thing i want to remind you in 1994 ukraine gave up its nuclear weapons, the third-largest arsenal, with guarantee the united states, the united kingdom and russian federation, where are these guarantees?
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in the world should unite. stuart: we understand vladimir putin's objective is regime change, getting rid of president zelenskyy, even in prison and kill ukraine's leaders. are you on the list? >> no question about it. very frequently. stuart: how long can you hold him off? >> our army is fighting and resolves are really good and we see in moscow and others people are coming to the streets against the war. with a firm position of our army we can stop vladimir putin.
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stuart: does that mean retreat? >> that is the best option but our aim is to stop him. stuart: we appreciate you being on the show, gun in hand, thank you for joining us. we appreciate it. back to the markets, the focus of opinion and coverage right here, an interesting day, the dow industrial still down 800 points as they have been all day. the standard & poor's 500 index, down 38 points, nothing like the loss we had at 9:30 this morning. the nasdaq is down 3% plus and now it is higher.
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russia's attacks on ukraine threatening gas supplies. what do you have on that? ashley: oil and gas prices are spiking, the dow, the s&p and the nasdaq lower. we can give you a sense of where we are but earlier brent crude, the global oil bench blue through the $100 mark for the first time since 2014 topping $105 per barrel. we should note russia supplies 10% of global oil. that is a third of europe's gas was russia provides all of those supplies via ukraine to countries like austria, italy and slovakia, germany, and poland. you get the oil board up 5%. as for the gas supplies i will give you an example.
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the uk gets 5% of its gas from russia but today, uk national gas futures sword 40% so it's getting expensive to heat your home in the uk. vladimir putin said russia would continue to supply gas to the world market, gas up to% but who believes anything vladimir putin says? europe has massive exposure. we know about nordstream 2 in germany putting a pause on that project but other lines used to transport gas into europe lie beneath the ground in ukraine. there is a threat to supplies. stuart: good stuff. this is all about oil and gas. let's bring in an expert, stephen sork.
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of president biden sanctions oil and gas companies, the price of oil will go to 110 or $115 a barrel? >> absolutely. we have a disruption like this and vladimir putin does play the game, we got $105 a barrel, a month ago going into this, 28% probability that oil would hold or break $100 barrier. at the end of this month. now, of course where we are now, there's probabilities of $110, 120 a barrel will certainly be on the table. god forbid if this escalates even further. what we do know is that in 2008 oil went to $147 a barrel. we've been there before.
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certainly, we cannot rule out that spike at that level. stuart: so are we looking at $4 a gallon regular gasoline in america? across the board? >> yeah. just on this move alone, stuart, with what we're seeing and we hold on, we're looking at at least a 10-cent increase in the immediate term at the pump. this is, keep in mind this is winter grade gasoline, this is cheap gasoline manufacture for the producer. that, of course, translates to the consumer. but beginning in april we're going to switch over to our summer grade gasoline which is a different formula, which is more expensive to manufacture. so, or certainly, once we get into the demand season picking up in the rollover to this type of gasoline, a $4 national average is certainly in the cards. stuart: okay. it's all about energy price inflation, and you're addressing that. stephen schork, thanks for being
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with us. energy price inflation, he's kind of grim. by the way, president biden will deliver remarks on the ukraine invasion at 12:30 eastern, so you're looking about 30 minutes away if the president is on time this morning. he will outline what sanctions are going to be applied. we are told that they're going to be severe. well, how severe we don't know, but if he sanctions oil and gas companies and the supply of energy, you can expect energy price inflation really to pick up steam. look at the markets as we approach 12 noon. dow industrials down 550, the lesser declines that we have for the s&p 500 and the nasdaq, actually, is ever so slightly higher. the price of oil, as of right now, is at $96 a barrel. but i have to tell you, when i woke up this morning, very early today, we had that oil price about $104, $105 a barrel, so we've retreated from there that. big tech, a mixed pig picture
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now. but again, earlier this morning they were all down. it was a huge selloff, but we've come off. a lot of bargain basement buying, presumably. microsoft is back to 284, meta platforms is just on the verge of breaking back to $200 per share, and we have amazon which was down about $50-60, is now up 32. time's up for me, but i'd like to take this opportunity to welcome back neil cavuto. it's my first chance to say great to see you back, neil. neil same here, stuart. thank you. what a great show is. man, you had everything in it. i was noticing, we talk about oil, but agricultural commodities, you're the geography expert here, you know that's a great big sort of bastion for europe for, you know, all sorts of things like wheat, soybeans, corn, it's sort of like the food basket for europe, and that basket sure got a lot pricier. stuart: it sure did. you got it. neil: thank you, my friend.
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