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tv   Worldwide Exchange  CNBC  February 25, 2022 5:00am-6:00am EST

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>> reporter: now kyiv under fire with air raids rock rocking the capital city of ukraine as the russian assault enters the second day. ukrainian president volodymyr zelenskyy trying to hold back the russian offensive. one responsible for 130 deaths. and world leaders finish to condemn russia and vladimir putin for the brazen assault and new sanctions aimed at weakening the russian military and its economy. on wall street, stocks
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coming off historically big rally as we weigh the risks of the offensive in ukraine it is friday, february 25th, 2022 are you are watching "worldwide exchange" on cnbc. good morning i'm dominic chu in for brian sullivan begin with the breakis air strikes on military baeses around the country those are the photos you are seeing here. ukraine officials have lost control of the decommissioned chernobyl power plant two hours north of kyiv. launching an attack on the city
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of kyiv could happen today in a televised address, volodymyr zelenskyy said more than 130 people have died as a result of the attacks in the last 24 hours. includingten military officers adding russian forces have been, quote, stopped in most directions despite the renewed air attacks. in the face of russian aggression, president biden unveiled a wave of sanctions targeting russia which the white house says it expected to hit trillions of assets and further isolate moscow sanctions, some say, do not go far enough stock futures this morning are lower as you can see here. we are implied lower by 24 0 points for the dow this is after historic comeback rally yesterday.
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the dow he erasing a 150-point s to close 90 points higher. just after the opening bell, things got really bad and a climb, climb, climb. then right at 2:00 to 4:00 p.m., it ramped up higher and dow jones industrial average closed higher erasing the 850-point loss. the nasdaq down 3.5% before ending the day with a 3.3% gain. biggest intraday swing since 2020 the world benchmark of oil is trading above $100 a barrel since 2014 brent crude is up 1% .75% gain for wti crude.
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nat gas down 3%. sticking with commodities. gold is higher and palladium off a 2.5% gain yesterday. gold prices are lower. down .75%. silver prices are down 1.75% platinum and palladium is lower as well. the soft commodities wheat and corn soy prices as well hitting highs. the rise in the last couple days taking a breather today. in cryptocurrency, bitcoin at $30,000 yesterday morning we are up about 1.5%
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$38,609 per coin ethereum down to $2,619. let's go overseas with julianna tatelbaum in the london newsroom >> reporter: dom, good morning european markets closed shop before the stunning turn around on wall street the stoxx 600 dropping 3.3%. the german market dropping nearly 4%. this morning, we have stabilization after the massive selloff yesterday. we are out of step with what you are seeing on wall street. the dax is up .9%. here in the uk, we have out performance of 1.6%. the resources are out performing the sector breakdown utilities up 3.6%. real estate up 2%. food up 2% as well green across the board
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a broad base rally looking at the travel sector in more detail. this is a focal point in the geopolitical space today airline industry is very closely looking at what is happening in russia yesterday as part of the russian sanctions by the uk government russian's aerospace blocked this morning. russia had come out and said uk airlines and aircraft were not welcome in russian air space preventing uk flights from making their way over russia the defense minister saying this is a retaliation step by russia. now looking at what this means iag taking a hit this morning. overall, fairly contained reaction dom. >> julianna, thank you back to ukraine where russian air strikes are targeting the capital city of kyiv with officials warning of
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the plan to topple the government and oust volodymyr zelenskyy. this as russia said they destroyed 118 military sites in ukraine and sending in paratroopers to secure chernobyl. we have brie jackson in washington with the latest >> reporter: good morning, president biden has a virtual meeting with nato leaders to discuss the situation there in ukraine and possible new sanctions against russia residents of kyiv waking up to sounds of war. and sights of devastation. president biden imposing sanctions. they include rcutting off the banks and restricting exports.
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>> this will impose severe costs on the economy >> reporter: critics say the president should have gone further. >> ratchet the sanctions all the way up all the way up as far as you can. >> reporter: a bipartisan push for russia to be barred from s.w.i.f.t. the system that connects banks in 200 countries european allies are not willing to take that step. >> they are profound sanctions let's have a conversation in another month and see if they are working. >> as the impact is felt and consequences of what president putin is done, including in russia, that will have an impact >> reporter: the russian attacks igniting worldwide protests. in moscow, crowds held anti-war signs. >> biden, stand with ukraine >> reporter: in washington, d.c., there are calls for a stronger response from the administration many praying for those fleeing
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for safety >> i can't believe someone can be so evil >> reporter: during a briefing, the current operation is the tip of the spear warning of more violence and casualties to come. the u.s. is deploying 7,000 troops to germany to support naitd nato allies. president biden said no u.s. forces are sent directly into ukraine. dom. >> brie jackson. thank you very much. in the face of the offensive in ukraine, president biden is set to meet virtually with fellow nato leaders today, one day after the white house imposed sanctions on russia and the largest multinational corporations stopping short of cutting moscow off from the s.w.i.f.t. payment z system some are now advocating for. our own steve sedgwick here from
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poland steve, we heard it referred to as the so-called nuclear option in finance take us through the talk in europe >> reporter: s.w.i.f.t. is responsible for 11,000 financial institutions and transactions, dom. millions a day as the president has been saying in the last 24 hours, the actions against ukrainian and russian financial institutions will carry out the same purpose as it would do if cutting from s.w.i.f.t. he is saying it is not necessarily as important as others if you cut the russians from s.w.i.f.t., that could limit the amount of payments into the energy sector in germany and russia and they cannot get power. real concerns and it would push the russian into the arms of the chinese. i want to talk also, dom, what
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we are hearing in poland we heard about the importance of nato and the president speaking to other nato members this morning as well. it is very important to look at what nato is actually doing in this part of the world poland, where i am now, is actually set to become one of the most pivotal nations in the nato alliance. the eastern flank of poland is the largest contributor in eastern europe financially and militarily there is a big u.s. presence not far from here. the 82nd airborne with 4,700 members of the military division actually a few miles away from where i am in krakow as well we know 15 airplanes in north carolina have moved to poland. nato is beefing up presence here in poland. why is poland important?
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historically, it always has been our viewers will know a lot about that there is a very large border with ukraine 332-mile long border we are on a corridor in krakow that is a base where the u.n. will stream out of ukraine if the fighting gets worse and we see a host of refugees and people are moving through. a lot going on militarily, a lot going on poland and nato alliance could be pivotal for what happens next >> steve, speaking, poland is in play it shares a border with belarus and russian areas as well. is there any talk of movements that are perhaps being viewed
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there in poe heland across to ri and belarus in relation to what is happening in ukraine? >> reporter: you've got russia to the north appand east. belarus with military training drills and came through belarus which is close to kyiv in the north of ukraine that is where the main thrust of the capital came from. there is a very long border between poland and belarus to the north. they have been at odds for a long time. ever since the disputed election in 2020 where the belarusian president was accused of manipulating the election and poland bore the brunt of the prove indocations through and fg refugees through poland has long been at the front of the battle between east
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and west so to speak the growing cold war you mentioned the baltic stakes of lithuania and latvia. long calling to beef up the nato presence it appears it is not falling on deaf ears and nato is taking the move >> steve sedgwick, thank you when we come back, the ukraine conflict and your money. what ubs is telling clients in the height of the volatility and uncertainty. with bitcoin at lows, are investors finally saying good-bye to crypto as a safe haven play we have a very busy hour when "worldwide exchange" returns after this
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welcome back to "worldwide exchange." let's turn to the markets after historic comeback yesterday. futures right now indicating a possible 200-point loss for the dow. 26-point loss for the s&p. as we have seen, that could change throughout the course of the day. joining us now is kiran ganesh kiran, i don't know what to say. i was here yesterday morning and opening bell in new york i was here watching an 850 point drop for the dow the consensus was if you got a recovery, you will still be down
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30 points. we finished higher what is the volatility tell you about with ukraine and russia? >> i think it tells you we're in a time when there is really huge forces effecting global markets. the story about rates and inflation and the story with russia and ukraine now interacting. that is creating volatility in markets. i think what we saw yesterday, specifically, was on the one hand, relief that the sanctions are not going as far as effecting energy flow for russia that is the key factor for driving markets and economic outlook with the russia crisis on the other hand, investors evaluating what the fed might do from here and as the fed is a little bit less hawkish as a result of the uncertainty, that might bode well for tech names we saw them perform strongly yesterday. >> kiran, take us through that narrative. that is what i heardfrom the folks i spoke to yesterday about
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why it was specifically many of the most beaten up technology names catching the biggest bid it was the notion and 50 basis points in march for the fed is off on the table how much of the tech rally of 3.3% gain after the losses is tied to the fed as what you said is less hawkish? >> i would agree with what he was saying it is unlikely a 50 basis point hike in march. that is supported. on the other hand, investors are seeking a level of safety away from companies which might be directly affected by the crisis in ukraine you see 70% of the nasdaq in bear market. people are looking for stocks to pick up. we are focused on ai and big
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data and somebcybersecurity spas potential opportunities to take advantage of the current volatility and technology. >> what goes on the shopping list how should you position if you are a trader given ukraine >> the key thing is stay calm and patient and invested historically, the geopolitical events tend to not have long lived effects on markets specifically, we're talking about energy stocks and u.s. dollar as ways of hedging portfolios and focusing on the names in tech i mentioned and cyclical companies the back drop is the global economy is accelerating as covid restrictions are lifted. that should benefit materials and financials >> kiran, thank you very much for the talk have a nice weekend. >> thank you. still on deck for the show,
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worst-case scenario for crude oil and $100 a barrel could be the beginning. and why they are investigating various aspects of the block trading aspects and why they may have been illegally trading. and why elon musk and his brother hviolated insider tradig rules. this came after his brother sold shares at $108 million one day before elon polled asking if he should dump shares of tesla. and carvana shares surging by 49% in the pre-market trade
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carvana down 4%. we are back after this ♪ music ♪ ♪ dream, dream when you're feeling blue ♪ ♪ dream, dream that's the thing to do ♪
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markets are bracing for the impact of trade sanctions on russia the second largest oil producer and biggest provider of natural gas to europe. let's bring in louise dickson. louise, this is big. the second biggest fossil fuels in the world and largest exporter they don't expect supply disruption do you think disruption are in play right now >> in our view, the land and air invasion into ukraine has not put any immediate barrels of oil export at risk again, it is still very much early days we do assess a risk of about 1 million barrels per day. barrels that could potentially come off the market and that would be looking at barrels
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transported the black sea as well as russian oil exports that travel through the pipeline which runs through the territory of ukraine >> if that's the case, what exactly is the oil price dynamic right now? what exactly is driving that and how long could that particular upside risk last given this notion that maybe we do not see the immediate threat to supply of oil or gas at this point? >> right we are already coming into the ukraine crisis with repcord low inconvventory in a tight market. before yesterday's incursion, we are seeing the deepest move in the oil curve precedented in oil market history the conflict escalates those market fears that supply will continue to be short or that at
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least 1 million barrels a day or russian exports taken off the market for this reason, we expect the spread between what today's oil prices and the future of the oil prices and futures curve to continue to widen. this could push oil prices up to levels seen not since 2008 or 2014 >> louise, more and more my conversation with energy i'm not an energy expert, but i talk to energy experts like you. many folks i talk to continue to talk about the notion that these higher oil prices and if this is a regime, if you will, the prices stay elevated, that it does help the balance sheets for u.s. based shale producers how exactly are they going to react to the prices and what does that do for the u.s. energy industry will we see a wave of capital expenses and see them turn the
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spigots back on, so to speak >> in terms of the u.s. shale, there has been an increase flurry of activity and drilling that we have witnessed at the end of 2021. at the same time, it takes, you know, a couple of months for this oil production to come online we expect the higher oil price environment to spur more u.s. shale activity this would be back loaded. we won't see that supply come on to the market until the end of the year which the current supply tightness, whether that is out of russia or opec plus or libya could be resolved. the supply from the u.s. is coming online, but it is limited in its capacity to come on immediately. if we are looking at immediate short-term market relief, that would have to come from opec plus players
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saudi arabia, uae and iraq, which do have the spare capacity to actually fill the current market gap that's when we sort of look ahead to the march meeting of saudi arabia, russia and partners to see if they have a plan to shore up short-turerm o supplies. >> louise dickson, thank you as we head to break, the russian equity markets moex is up 14% the u.s. dollar backed rts index surging. you see big. ruble and moex moving on the big side more on the concerns this brings when we return after this commercial break do this. i didn't know you had dahlias. they're my favorite. they just came in.
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breaking news. ukraine defending its capital city of kyiv as the russian offensive enters its second day. president biden looking to meet with world leaders in the face of russian aggression. and stock futures pointing to another sharply lower open this morning friday, february 25th, 2022. you are watching "worldwide exchange" here on cnbc
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i am dominic chu in for brian sullivan welcome back to the show we begin with breaking news and russian invasion of ukraine on the second day unleashing air strikes around the country. including the outskirts of kyiv before dawn this morning that is the video you are watching right there ukrainian officials lost control of the decommissioned chernobyl nuclear power plant two hours north of kyiv. adding a russian tank offensive could happen as soon as today. in the televised address, ukrainian president volodymyr zelenskyy said 130 people have died in the last 24 hours, including 10 military officers russian forces have been stopped in most directions despite the renewed air attacks. in the face of the russian aggression, president biden unveiling a new wave of sanctions targeting russia which
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the white house says is expected to hit trillions of assets and isolate moscow from the global economy. sanc sanctions, by the way, ukraine says don't go far enough in the face of all this, stocks with late day gains and pointing to a lower open dow implied lower by 200 points. s&p down 25. nasdaq gained after big losses and implied lower this morning treasuries right now showing a little bit of movement we saw a flight to safety with government note prices driving yields lower yields back up to 1.97%. ticking lower in the two at 1.59 crude oil is flat on the
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session. $92.84 brent crude is $99.29. we have global team coverage covering everything you need to know rosanna lockwood is in the london newsroom with the trade in overseas markets. cal perry is live with the russian offensive and louis oosthuizen eunice yoon is in bei beijing. rosanna. >> reporter: we had positivity in asia and we had that in europe the ftse 100 up by 2% here in london we do have russian exposed stocks from companies within the index. however, shrugging off the negativity in thursday's session. is this an indication that these western sanctions that were
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announced yesterday are not tough nenough there are other macroeconomics fundmen amentals at play that has been the laggard throughout the week. up 1.2%. let's look at the sector picture in europe and what is playing out. you see positivity across the board. oil and gas up .8% we have brent crude touching at $100 a barrel on the complex ply picture. we are also keeping an eye on travel it is at the far end up .8% on news that the uk has banned the russian flag carrier from landing in the tit-for-tat response >> rosanna lockwood, thank you for the update from london let's send it over to nbc's car cal perry at the site of the
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attacks yesterday. we heard from matt bradley in kharkiv yesterday. take us through the story in the western side of the country versus east yesterday. >> reporter: absolutely. we watched the fighting in kharkiv. the city is becoming a transitory city. this is the place where people are fleeing as they try to make their way to the border which is 50 miles from where i am the line at the border is about a 24-hour wait to enter the country. the polish government doing the best we can to lower covid restrictions to allow refugees in we know at least, according the u.n., 100,000 refugees on the move having been displaced from homes. dom, that number is bound to rise as you see the fighting russian forces moving on the capital from the north and east. fierce fighting broken out
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it will only exacerbate what is becoming a humanitarian crisis dom. >> cal, we saw the lines trying to exit kyiv with regard to people moving that way is there any sense there could be encampments happening are we talking about people waiting in cars in long lines on highways we know this area has become a crossroads for the migrant movement of people from europe to asia and poland what does it look like on that border with poland and ukraine >> reporter: it's going to turn a logistical nightmare it is a two-line road that crosses from ukraine into poland that is for passenger traffic, non-commercial traffic it's a choke point a 24-hour wait will only grow. your question about encampments, no question that is what they are thinking about
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the international red cross is starting to think about that unhrc is thinking about that across the border, you now have 10,000 u.s. troops from the 82nd airborne coordinating to do that to not only identify hard sites, but if they have to use tents and set up camps that is what you will see. >> that is cal perry live in ukraine. stay safe. to china and what is seen on the global stage as the biggest sympathizers to the russian cause and vladimir putin the foreign ministry says any country who interferes in the domestic affairs will see the reputation stained adding it opposes any and all unilateral sanctions. eunice yoon has the latest from beijing. eunice, the comments may be surprising and maybe not with regard to the support for russia from china and the blame on the
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u.s. and allies. take us through the next layer what is the next chapter of the beijing narrative. >> reporter: absolutely, dom china refrained again from condemning russia's attack instead doubling down on the criticism of the u.s the foreign ministry spokesperson blasted president biden's remarks yesterday that countries backing russia's move would be quote stained instead, countering nations that interfere in the domestic affairs of others will be stained. criticizing in what it is the domestic affairs that includes hong kong a and taiwan it imposes sanctions because sanctions are not effective. china is an outlier with the impact and support of the sanctions against russia if anything, especially with
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what we see out of the winter olympics when putin and xi signed several deals with gas and energy and wheat that china looks like it is helping russia through the hard time with the western sanctions. one thing that was interesting is analysts told me despite the fanfare with the headlines of the close relationship that china is in a limited position to assist russia in any large scale way. so, the ways china could help russia is with gas purchases, ruble and rmb trade and chip replacement. that is how china can help the challenges are economic and technical issues for example, very difficult to switch gas going to europe to china. and ruble and rmb trade, china
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will not convert faster than it feels necessary. dom, with chip replacement, the question is does china has the chips that are advanced enough to replace the ones russia needs. >> eunice, let's say china takes the steps. we don't know what they he are thinking yet let's say they become the safety val and this release valve for russia to ease sanctions how does the world respond to china if it is seen at some point in the future as actively trying to assist russia given the world cry over ukraine >> reporter: i think that is the calculation we are seeing in the attempt of the neutral tone by the chinese. the chinese know that if they are seen as backing russia too much, then some of its other
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partners, which arguably are more important for them in terms of dollar and cents, say the united states and europe, that that relationship could go south when it is already kind of on shaky ground the markets are more important for china's overall economy which currently is also fragile. >> eunice yoon live in beijing thank you very much. coming up on the show, remember when the crypto bulls kept calling bitcoin digital gold and inflation hedge the recent rise in precious metals and fall in crypto is calling that in question and president biden has decided on the supreme court nominee. announcement is expected as soon as today the president recently interviewed three finalists left by retiring justice stephen breyer the cdc expected to relax the mask guidance today. loosening indoor mask
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requirements as most states lifted mandates or announced plans to do so. in corporate news. shares of etsy taking off. up 17% following better than expected quarterly results. those shares are a big pop for etsy stay here. you are watching "worldwide exchange" on cnbc. what happens when performance... meets power? you try crazy things... ...because you're crazy... ...and you like it.
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my wife introduced me to prevagen and so i said "yeah, i'll try it out." i noticed that i felt sharper, i felt like i was able to respond to things quicker. and i thought, yeah, it works for me. prevagen. healthier brain. better life. welcome back to "worldwide
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exchange." we recently talked about cryptocurrency and stocks trading more in tandem as the narrative of the last several months and years that prices for bitcoin and other cryptocurrencies are a hedge against other parts of the market precious metals have come back to the front and center of the investor conversation given what is happening with ukraine. if you look at gold prices over the year to date period. nothing terribly dramatic. off fractionally today on the year to date basis. up by 5% here. meanwhile, look at the bitcoin prices bitcoin prices during that course of the last same period we were talking about have actually now fallen. if you look at bitcoin over the years to date period, the gap is 16% of the down side for bitcoin. if you look at the two together, it tells you more about the
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narrative right now between prices for bitcoin and prices for gold you can see over the course of the period, that gap has gotten wider. the safety trade is the variable with russia and ukraine. as investors and traders look for the safe haven trades, at one point, people talked about bitcoin and cryptocurrency as safety trades. they are not part of the conversation right now whether that happens again is still in question. i would say in the last few months, we heard a number of notable analysts talk about bitcoin could be digital gold. whether it takes share from safety that is a big question whether the markets are indicative of the price dynamic remains to be seen it is something we will watch going forward. still on deck, digesting
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what is happening with ukraine and sylvia jablonski will join us and if you miss us, check us out on apple or spotify or your podcast of choice. "worldwide exchange" will be right back meets verizon 5g ultra wideband. ultra-collaborative. ultra-secure. when you buy one, get up to $1,000 on another. verizon is going ultra, so your business can too. (vo) for me, one of the best things about life is that when you buy one, get up to $1,000 on another. we keep moving forward. we discover exciting new technologies. redefine who we are and how we want to lead our lives. basically, choose what we want our future to look like. so what's yours going to be? every big idea every game changer
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welcome back to "worldwide exchange." let's turn to the markets and talk about the slump which could present a buying opportunity in areas with future off the session lows joining us is sylvia jablonski sylvia, thanks for joining us again for this hour. if you talk about the notion that we have seen this kind of bear market phase, if you will, for the nasdaq specifically. the move toward levels for the s&p 500. do you wonder that was enough to trigger some of that buying that
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we saw yesterday, but do you think it is fundamental buyers picking value or the short cover rally off the winning positions of losing shares >> good morning, dom great to see you today i think it was a combination of things you know, my sense of this is particularly looking at the action in the nasdaq with the 15% to 20% off highs there probably a lot of machines and strategists have that level set as a time to come in and buy up those stocks i think that is what moved the nasdaq yesterday in particular on the others, a combination of short covering and perhaps satisfaction with the level of sanctions and severity of the level of sanctions played into the market it remains to be seen. the volatility was high. that is promising in that if this is something that gets resolved in the short-term, which it is hard to determine
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that sort of thing, the volatility to the upside yesterday was reassuring that the recovery could be quick as it has been in the types of events. >> it was quick. it was much quicker in the certain part of the market that was the nasdaq overall. specifically the nasdaq 100. specifically there, the 10 or 15 most valuable stocks in the nasdaq does that tell you anything about investor sentiment or what is on shopping lists right now are we in the phase in the financial crisis in '08 and '09 where communications companies were the one of choice if anything goes on sale? >> the froth prior to the last couple days, that was taken off. now they look like value plays with companies trading at a discount off double digit from all-time highs. trading with volatility.
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if you look at apple yesterday, the move up ward in that stock was impressive i think when you take the faang companies with the top media companies, a few things they have in common they have strong balance sheets and pricing power. they are able to put prices along to the consumer. they have a strong growth. they are invest in the secular growth trend for the future. they are into cloud computer and augmented reality. they have services and media and consumer discretionary qualities. these are great stocks to buy in the portfolio. these are great to buy when the market is girating like this they have been the buying opportunity. the investors have cash on the side and might want to dip their toes in. investors fully invested is good to take losses at this level
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it is wait it out for look for opportunities to get in. >> let's say we believe you and this is the opportunity. what would you be looking at right now? what sector is the most or industry groups and what types of stocks are most attractive to you? >> great question. the companies i mentioned, i think, amazon, microsoft, google, apple because of the participation in that broad based secular technology growth trend. i think semiconductors are everything 5g is how we power and work and live and development of web 3.0 and meta and data quality and electric vehicles. ev companies are tech companies. you need nvidia to have the advan advancements the travel trade if you look at the top names like cruise like royal caribbean and southwest airlines and marriott
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they were up 8% to 10% if we think that we get stability in geopolitics here, perhaps those are the names that recover. international travel, which is huge now it was predicting a 2% year over year recovery this year. i think that is going on now is pushing them down further. if you are willing to take volatility there and wait it out, they might be good opportunities to hold on to the portfolio. >> sylvia, we have a few seconds left what do you think of the energy trade? is it one that has momentum or topped out for now >> i think short-term momentum for another week you are pretty close to top. it is looking expensive. a great trade the last couple weeks. >> sylvia jablonski. a huge focus given what is happening with ukraine and russia have a great day >> thank you
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that does it on "worldwide exchange." markets pulling back after historic rally into the closing bell yesterday the dow implied lower 220 points nasdaq 71 and s&p down 27. "squawk box" picks up coverage see you on monday. at xfinity, we live and work in the same neighborhood as you. we're always working to keep you connected to what you love. and now, we're working to bring you the next generation of wifi. it's ultra-fast. faster than a gig. supersonic wifi. only from xfinity.
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good morning investors bracing for what could be another volumeatile opening n wall street. another turn around for stocks almost an 8% swing geopolitics front and center russian forces advancing on the ukraine capital.
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announcing sanctions targeting the russian finances again tough. a live report from europe is straight ahead. in corporate news. s.e.c. probing the trading by elon musk and his cowboy hat wearing brother. it is friday, february 25th, 2022 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm alyn b rebecca quick with j kernen and andrew ross sorkin. you have s&p futures off 28 and the nasdaq down 65 of course, wha


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