Transcripts For CNBC Squawk On The Street 20140303

Markets, unpressure this morning, due to the escalating situation in ukraine. Monthly increases in consumer income and spending not making a dent. Warren buffett says hes not discouraged about the markets today or in the future. Citing slow but steady economic improvement. Find out what else hes thinking about. Apple rolling out Carplay Technology with mercedes and ferrari . Futures pointing to a sharply lower open, thanks to ongoing instability in ukraine and russia. This, despite monthly increases in both consumer income and spending. Jim, we knew monday was going to be interesting all weekend long. This is not the kind of thing you prefer to focus on but its whats on the table. We got lucky. We had one of the most amazing three hours ive ever seen on our network where Warren Buffett really just basically laid out the cards at the annual letter, also fantastic. But his take away was my takeaway, this is business as usual. Talking about buying something in london, too, was more impacted than we are. Look, if youre trading ruble, if youre trying to figure out whether to the level to buy yandex, concerned about the Energy Situation in germany, yeah, i mean maybe not time to pick things up. I agree with Warren Buffett. Not hard to do, obviously, given his longterm track record. This is where you pick. Youre getting a chance. He had a big selloff friday afternoon and he kind of rallied in the last half hour. If we get those prices again at 330, count me in. Count me in. Fixing my collar here. Always important that you look well in the morning when delivering and trying to opine and provide insight. The clothes make the man. Of course on that note, studying up on ukraine and crimea and russias history with it, and what khrushchev did in 54, whether he gave to them, whether thhe didnt want to dea with it. This forces money manages are to hit the history books. My producer, ukraine is actually i read the stories, warrens say, remember, 50 of the whole country is russian and the crimea is russian. So, this is kind of a apparently theres questions about resources and they use a lot of water in crimea. Ukraine. A lot of gas goes through the whole area. Theres where the stranglehold is. But lets remember that we have seen time and again crises in other countries that have driven down our markets and we were at alltime highs last week and had a series of crises. Is this more different, is this that difficult versus the Dennis Rodman basketball situation with north korea . We managed to survive that. I dont know how. One wonders whether the markets will have an impact in russia as the ruble falls to new lows, as the stock market gets hit very hard. I have no idea whether mr. Putin cares. But its interesting to watch. There is something really you came back from sochi, isnt it interesting the timing . What was the olympics have been like if we had been would the u. S. Have pulled back . Paralympics continue now, an interesting place to be reporting on sports. We are mentioning and keep our eye on ukraine. Jim maceda live in moscow with the latest. Good morning to you. Reporter hi, carl. Theres a lot of talk about ukraine being on the brink of war, and heres why. Right now there are thousands of Russian Forces who have either occupied or surrounded crimeas airports ferry ports, Telecom Towers and government buildings. At the same time surprise war games are still going on, which means about 150,000 troops and 900 tanks through the equation, continue maneuver as long ukraines border with russia. Its adding more risk of a misstep. Putin himself observing games near st. Petersburg today. Supposedly the last day of the games. Well see whether thats true tomorrow or not. Now putin has another weapon, he can legally use force because of a law passed over the weekend, anywhere in ukraine, not just in crimea. If he decides that the russian interests are threatened. On the or side of the standoff youve got Ukrainian Military, theyre big, second largest in europe, on high combat alert. There is a mass callup of all men under 40 going on as we speak. Over the weekend, ukrainians Prime Minister called putins action in cry meimea a declarat of war. This is not a game. Ukraine is on a war footing. So far its been more of a war of words and nerves, not a shooting war, that putins taken crimea, in fact, without firing a shot. And now theres one that i think positive sign out of all of this, and that is that putin has agreed that telephone call to german chancellor merkel to call a contact group, international observer, stamall group would he a small dialogue between kiev and moscow, which isnt taking place now, but could be a breakthrough, well see. Jim maceda today in moscow. Warren buffett speaking out saying hes not discouraged that the markets under pressure today. Also commenting on the Keystone Pipeline, saying he would vote yes to approve it. Do you think keystone should be a would vote yes. Wyou would vote question for keystone. Energy and job creation, pipelines an Energy Renaissance what jims pointing out. I dont believe in the Keystone Pipeline because of the you can build anything and create jobs but i believe i just believe its a useful pipeline. I was going to say he agrees with you, i hear your name, i think it was you, jim. Thank you, becky. Amazing job by becky. This is important, burlington, railroad, theyre bringing thats a big oil railroad. But hes a huge pipeline owner. This is important because this is a nonpolitical guy, not like jim cramer but this is right thing to do. And obviously its all up to the president. But i thought it was interesting that he didnt say it was a jobs, it was common sense way to get oil. And when you look at whats happening in europe, dont you wish germany, dont the germans wish they had continental independence of russia. Wideranging interview this morning. Covered bitcoin he doesnt think bitcoin will be around in 10, 20 years. Wasnt that something . Coke has pressures ahead, like theyve never faced. Pepsi should stay under one roof. Interesting story from jim stewart in the times s about cokes challenges. Warren buffett pointed out international is the way to go. But i think jim stewart also mentioned, the jim stewarts piece is saying, this is the twilight and that the United States is the leader, so dont believe other countries are going to continue to drink as much. When i went to mexico carbonated beverages. Mexican tax was against obesity, mexico forward country since change in leadership, this is happening right now, happening worldwide. The critics, of buffett who are upset about his lack of transparency on derivatives, right, all of those things, tax inefficiencies that they worry about after he passes, when he passes. I think people have to read the shareholder letter. Hes underperforming, look, in 2000 in 2008, he was down 9. Market down 37. 0. He says overand over, my jobs not to shoot the lights out during the upmarkets but protect the downside. If you read the letter and think real problems with transparency, he mentions the terrible texas deal he was involved in. Energy partner had to take a writedown. He shows you how he makes decisions. Read other annuals, other annuals are about, we have a pretty good toothpaste, you know . Others are about dont rule us out against the our food wars because like were still selling a lot of tvs. Honestly, its like, hey, open up, make folksiness. Like the intelligence. Hes 83 years old. We should all be so lucky to have that kind of a brain still operating at that age. Talking about how ache approaches new ideas. They had a conversation about stocks, which about directv. I loved it. Talked about insurance in the letter. But how its cutthroat. Fischman would argue, yes, not there are just a lot of little nuggets about why he likes certain physicists. And the idea they need to make large acquisitions but along the lines of heinz, they partnered, more over time, but perhaps a model for future acquisitions. For a company to move the needle it needs to be pretty big. Its interesting to shut applauup about that so valuations come down. What do people want . Invite three journalists, a credential bear what do they want from him . What more does he have to do . Basically talk talk about what he does on a daytoday basis. I dont know, people read some other reports. Youre not getting this level of grantlarty. Forbes out with its billionaires list. Well discuss that with the Magazine Editor . The former chair of Goldman Sachs, jim oneill, who better to talk about geopolitics in ukraine. We know what the tone will be. More squawk on the street in a minute. R how ta the building is, or how ornate the halls are. It doesnt matter if there are granite statues, or big mahogany desks. When working with an investment firm, whats really important is whether the people behind the desks actually stand behind what they say. Introducing the schwab accountability guarantee. If youre not happy with one of our participating Investment Advisory services, well refund your program fee from the previous quarter. Its no guarantee against loss and other fees and expenses may still apply. Chuck vo standing by your word, thats what matters the most. We do . I took the trash out. I know. And thank you so much for that. I think we should get a Medicare Supplement insurance plan. Right now . [ male announcer ] whether youre new to medicare or not, you may know it only covers about 80 of your part b medical expenses. Its up to you to pay the difference. So think about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, they help cover some of what medicare doesnt pay and could really save you in outofpocket medical costs. Call now. With a Medicare Supplement plan, youll be able to stay with your doctor. Oh, you know, i love that guy. Mmhmm. [ male announcer ] these types of plans let you visit any doctor or hospital that accepts medicare patients. And there are no networks. You do your pushups today . Prepare to be amazed. [ male announcer ] dont wait. Call today to request your free decision guide and find the aarp Medicare Supplement plan to go the distance with you. Go long. Another winter storm is pounding parts of the United States today. Federal government in washington, d. C. , shut down due to the weather. Weather channels jim cantore live in d. C. He brings us the latest from there. Jim . Reporter good morning, david. Kind of a nasty one. Expecting 3 to 7 inches of snow, weve got an inch and a half on the ground. Of course, it continues to come down in earnest. Look back and you can hardly see the capitol. I mean its very, very low in terms of visibility. Winds gusting to 35 miles per hour. We went from 37 at midnight to now 21 degrees, which is incredible cold. Well get down to Single Digits tonight, possibly record low the storm is impacting a swath from california across the plains and really from just south of new york down through philly and into d. C. Probably further. We can wind up in a situation here where some of the heaviest snow totals may be to the south of d. C. , which is pretty rare for the month of march where you average 1. 3 inches. Well see 3 to 7 here before all is said and done. Most places will see about that. Weve got 5 inches in gaithersburg. Roads behind me arent bad. Remember, theres no hills here. This is all pretty much straight here on 4th avenue. Obviously covered and packed. Underneath all of this snow and powder at 21 degrees, its absolute ice. Imagine if youre in a car, rolling over this thing time and time again, you pretty much pack down this icy cake whether it be a sidewalk or a road. So anybody that doesnt get this stuff up before tomorrow morning, were talking about sing Single Digits. Over 2100 aircraft not flying because of the weather. 62 of outbound fleet at reagan canceled today because of weather. We may get improvements afternoon time today here but again the cold and refreezing of all of this that has everybody worried for tonight. Good news. Back to you. In like a lion, as they say. Jim cantore in washington. Apples coming to your car. The Company Making a big move introducing carplay. A new way to use your iphone in your vehicle. Carplay will debut first in ferrari, mercedesbenz, volvo and allow drivers to make voice calls or dictate messages with siri. Third Party Services leak spotify and i heart radio. We know how big a market this is. Look, i think all of us who are hooked up and love to make the calls, one of the cars i have, great recognition with voice already. This is a terrific thing to have. At the same time, those are not mass cars. No. You know the cars a battleground. We talked about it a lot. Its clearly something in the focus for apple beyond just mapping technology. Theyve got lots of competition. Theyve got selfdriving ones. In terms of the phone business, everybodys talking about Ellen Degeneres holding a samsung during oscars, taking that selfie, which is the most retweeted tweet of all time. Reports that she was caught using an iphone backstage, though samsung was a huge sponsor of the show last night. I think that maybe thats the its another twitter night, i wouldnt be surprised that twitter rallies today because of that cultural influence which does matter in america. A big social media editor i know wrote last night was night that twitter beat facebook in the social culture tv war. Is that true. Look, i think that theres a lot of room for winners. I do believe that twitter, the fact it didnt sell down after that last quarter, people believe theyve got a lot of things cooking. They think theyll take on and succeed in fixing the user growth problem. Right. Which is still an issue because its complicated. True. Its not as easy as it should be. Guys that are most influential, adam scheckter, a good friend, but what this is, thats how you get news. Scheckter is news for fantasy news, thats what you need. You need to see people who dont tweet getting on twitter to get that info. Interesting psychological. First trading day of the month. What stocks will we be watching . Mad dash next. One more look at futures. Weakness due to the situation in ukraine. Take a closer look at your fidelity green line and youll see just how much it has to offer, especially if youre thinking of moving an old 401 k to a fidelity ira. It gives you a wide range of investment options. And the free help you need to make sure your investments fit your goals and what youre really investing for. Tap into the full power of your fidelity green line. Call today and well make it easy to move that old 401 k to a fidelity rollover ira. Whatswithout the thinking capitathat makes it real . . Whats a vision without the expertise to execute it. And the financing to make it grow . Whatever your goal, it can change more than your business. It can change the future. Thats why, at barclays, our ambition is to always realize yours. Lemme just get this out of here. To go. Unlike some places, we dont just change your oil. Our oil offer comes with a fourtire rotation and a 27point inspection. And everything looked great. Actually, could you leave those in . Sure. Want me to run him through the car wash for you, too . No, no, i cant. And right now get acdelco professional durastop brake pads installed for only 99. 95 or less per axle. Chevy certified service. Weve got 8 30 before the opening bell. Time for mad dash s on monday. Talk about darden, which released nasty looking potential earnings and is in the midst of trying to split off red lobster from the rest of the company, facing opposition from 5. 5 shareholder. I think this is important, david. The trends for red lobster, going up, talking about red lobster, the spinoff, samestore sales in december minus 10, january minus 12. February minus 4. 5. Traffic is terrible, too. I question, david, when we see these strength, we see splitoffs, what happens is that the other piece might be attractive. Who would want this red lobster piece . I dont know. I mean, the rest of the company would be strengthened by getting rid of red lobster. This is not two minus one equals two different pieces that could be good. Its two of which the darden leftover is excellent, but like when you split out cola, he would say the portion of alcoa you dont like, might go under. Do very poorly. This darden split up is not i dont think that the shareholders would want this. I really dont. Trying to get them to have a shareholder vote on it or a proposal that would at least show dissatisfaction amongst that base for they say, listen, were not going to do Real Estate Investment trust thing. Other numbers are bad. Maybe thats the issue, numbers are bad. Theyve been bad for a while, even before bad weather. Well be watching darden with many others. Opening bell, right here on squawk on the street. So our business can be on at ts network for 175 a month . Yup. All 5 of you for 175. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line, anytime, for 15 a month. Low dues, great terms. Lets close new at t mobile share value plans our best value plans ever for business. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. [ tires screech ] chewleys finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. Get the most extensive charting wherever you are with the mobile trader app from td ameritrade. Watching cnbc squawk on the street on monday morning. Live from the Financial Capital of the world, kicking off the month of march here, twothirds of the way through q1. Busy week, manufacturing data later on this morning, jobs number friday. Get costco and staples earnings, auto sales, a take on what the weathers doing. Meantime, guys, david, what got lost friday night might have been reports about the future of j. Crew and mixy drexler. Yeah. Reports of the journal, one story, interesting, i sometimes think about if it was public, you think who would leak it, why would you leak it early in the process, because it was a story they had been approached by japans shockingly big. Shockingly large. I will tell you, a lot of respect i think on the part of j. Crews owners for that Management Team in japan. For that retailer. We know, as private equity firm what are you in business to do . In business to take things private and take them public and or sell them, sometimes a lot cleaner to make a sale to an acquirer as opposed to taking something public which ppg has done once with j. Crew and then, of course, having bought it for whos to 3 billion not many years ago no. Early to turn that huge home run. Mickey dprrexler one of the reasons to go private, question i have, will this company say listen, mickey, other places that mickey had to work for i dont know the answer. I dont know the answer. I do know theres respect for mickey and ppg and the japanese. Theyve grown very quickly, of course. The flagship on 5th avenue, see what theyre doing in terms of trying to get people in stores and doing innovative thicks in a store to get traffic. Brings up the broader question of exit. The grubhub on friday, four ipos this week, m a at a precrisis high. Theres some things boiling here. Yes. And there was a margin debt story, well seal the stories at given times. Back to Warren Buffett. Warren buffett saying, look, a lot of value in the market. Again, i know that there are people who are tired of Warren Buffett. I dont know, like maybe you tire of the oscars. You still watch them. I think that there is a sense, to me, that the Company Still believes theres great value in the market even if the pundits of which, by the way, Warren Buffett takes aim at pundits, say there isnt. He took aim at macro pundits, people who opine on macro, theyre giving me a great opportunity to buy stocks i agree with that. Koejent analysis about the macro people, the risk on risk off. We mentioned heinz earlier. Buffett said they intend to hold that forever, in his words but thats not to say others might want to exit in the next few years, as he says, if numbers get better, he believes they will. In terms of his partner. We talked a lot about, quiet gentleman, who i dont believe ever appeared on cnbc, 3g, burger king as well and heinz. Very interesting. Consumer products, like heinz, ketchup, every year, and a lot of other things, but theres a return you know coming at you. Chinese arent the chinese got of ketchup, people read about the railroad analysis, how undervalues, parts of the indices that help. We want to get to the bell. Remember they bought it with cheap debt, thats Warren Buffett, and the others like him, john malone, using Capital Markets to their advantage to buy the cash flow businesses that will give them the return they expect over manyiers locking in low borrowing rates. Implying that we cant do that individuals or companies cant do that maybe theres a special status. A look at s p, negative this moring here at big board, knowles corporation, celebrating a spinoff from dover and at the nasdaq, boulder brands doing the honors today. Look out for auto sales. Weve gotten chrysler. And theres ford, down 6. 1 versus down 5. 1. Ive continued to say this is into the important period. Like employment number friday, three straight downs, that would be worrisome. But the weather, a lot of people saying the weather doesnt matter. I mean the weather you know, go buy a car, if the car dealers closed, you dont. Its okay. Its okay analysis. Country worst weather nationwide since 1977, not fact that . That seems silly. Phil lebeau tweet what the impact of airlines. Well talk to Gordon Bethune, cost to passengers and airlines from delays and cancellations 75 higher than recent winters. Those stocks, other than united, on fire. The day that they reported that, united, down a couple bucks. And amr was flat. Airlines extraordinary. Best performers in the group. Positive on them for a while now. I really like them. I just think that thats because the lack of competition. There isnt you dont get competitive root structures in a lot of places. Thank you doj. The doj, people critical of the dojs decision, that theres always been wow think they would have got eat in court if they would have tried. Talking american airlines. Its important to focus on the fact that this group is the Market Leader at a time when oil is through the roof. The reason why theres a longterm bull market in airlines, that boeing makes, the aircraft are far more fuel efficient and talking about the single biggest determine nanant profitability. You check thointo the markets o beaten price, prices are gigantic. Jim mentions the ford numbers, phil lebeau has more on that this morning. Phil. How are you . Weve got ford and General Motors. Start off with ford coming in with february sales declining 6. 1 . Thats alittle weaker than the stinlt of 5 for the month of february. General motors down 1 , better than the estimate was for the decline of 5. 4 . So, youre going to get a mixed bag, not supergreat numbers but we want to focus on sales conference calls, what do the executives say about two things . February and january being weak, the bounceback in march, and q1 and q2 production schedules. Well be on those calls today. There you have it, ford and General Motors reporting slightly negative sales for the month of february. Back to you. Thanks a lot. Phil lebeau in chicago. Overall, jim, dows down 131, biggest decline since a month, february 3. I hate up openings on monday and i dont mind down openings. Obviously the idea you can look through ukraine when tomorrow can be another day, be careful what you do buy. I find a lot of Energy Stocks are down today that makes no sense to me. They are a good place to be, that would be the first place to buy, the Energy Stocks. Exxon and chevron up very, very, very slightly. But spread between what they they are able to sell, take it out of the ground, what they can sell it for goes up, so eog, and ill doing a lot of work on, thats a place to go. Interesting story in the journal about the refiners, we havent created a new refining a giant refiner sinceance ancanc 76 but smalle right, go back to what Warren Buffett said about keystone, the most of the infrastructure down in the southeast was prepared to refine that oil, heavy oil. The light oil we need refineries weve been shipping oil to the northeast to refine it. Where theyve learned how to refine nigerian crude and weve got to get that oil that is the cleanest, clearest oil, therefore, of course more, flammable, thats one of the things people talk about, they need refineries. Watch the group, its been quite bad, reevenries because of the narrowing of the spread. 1845, levels technicians looking for a bounce going into the morning session here. Weve got a lot of high flying stocks, like salesforce. Com, touching that level, exceeding that level, that het it on friday. Swing of sale force 67 to 60. Those who bought salesforce. Com quarter was not good . I dont know a sole. It was a very good quarter. Thats where you go, besides oil. Oils are now up. That was your moment, i guess. To change the subject, i got a kick out of friday you in a tuxedo on mad money giving away the golden bulls. Right. That category, you had viewer input, viewers, for instance, wanted in terms of best picture, wanted facebook. Yes. You were you going with chipotle. I had the actor behind the promotion, some say propaganda of chipotle, the dangerous, the industrial farm information bureau, i gave it to disney for bob iger, best director, why not . Look at what hes done with the stock in the buyback is incredible. And, yes, facebook, my travel trust has been buying because its coming in, the readers viewers are very smart and viewers selected facebook, i think many are on facebook, including younger and older, and recognize the companys a profitable company. This is not 1999 when it comes to facebook. Its important. Within technology. Apple, we spoke about earlier, particularly this idea theyre going to move more aggressive. It is up. That stock got hammered. Theres no icahn today. Theres ike. There is. Yes. A report coming up. Normally we would have talked about it. How many days in a row can you lead with another icahn letter . Fourth day in a row. Talking about thousands of points of light of journalism. Now carls using hashtags in his tweets. Hes ahead of me. I havent gotten a hash glag selfie today. Cate blanchett uses the word hashtag in her speech and carl using it. Patrick stewart right over there and told you that this is everything. Twitter . Down 1 . I thought ellen did a good job. Another network. Yes. Iger network. Shots of iger in the audience. I still watch it. The whole thing, of course. I still watch it. Were paying the price today but i did watch the whole thing. The dows down 124, bob is on the floor. Good morning. What does the ukraine mean for the Global Markets . Risk off right now. What it certainly means, at least now, even if its resolved shortly, another headwind for global growth. Is that a tough winter in the u. S. , thats a headwind. Ukraines a bit of a headwind on how serious it is and how long it takes to resolve. That will determine how much of a headwind it is. You see the european markets down 2 , 3 , russia down 12 . Nobody believes its going to deter mr. Putin. Commodities are up, noticeably here in the u. S. Wheat, oats, corn, all notably on the upside. Oils on the upside, thats helping the Energy Stocks, golds on the upside as well. People speculated this might help Agricultural Companies potential potentially, ukraine being a major exporter but its not happening now. Agricultural names like Archer Daniel midlands down but not down nearly as much. Some are modestly on the upside like agrium. Financials and industrials, ones down the most. Energy is about the only sector i cant see all ten from here but that is slightly on the upside. Most of the energy spots, bigger names, chevron, exxon, marathon, conoco, up slightly or just down fractionally. At the moment, of course, not surprising, gold stocks on the up side as well. The big debate here, and theres a cynical position that a lot of people have, lets hope that we can keep the ukraine in the west. But what happens to the rest of us if that happens . Ukraine is bankrupt, they need by some measures 30 billion to 40 billion in aid, 4 billion immediately. Does the west have the money or the interest, the monetary will or the political will, to deal with that . In other words, what happens if we have a modicum of victory here . We should have those problems. Back to you. Well, as we said earlier, ebay icahn argument, if you will, goes on. Interestingly, its evolved in some ways from what is ostensibly still a debate about the splitting out paypal business from ebay to this distribute that is more and more focused on actions of director Mark Andresen and the skype deal under which ebay sold skype to an Investor Group which in which andreessens firm had a small percentage ownership. This morning another, in terms of consecutive trading days, letters from icahn, at least third in a row. And we get the response quickly. We also have for the first time, mr. Andresens response and defense of his own actions on his website. In fact, i tweeted that out. Apologies came out if it was looking like me. His website and his defense that i wanted to get out to people because it is the first time weve heard from mr. Andresen. This morning the new icahn letter to ebay stock holder doesnt say much about paypal. Its wanting to know the truth about what happened with skype, raising questions about what ebay directors new about microsofts interest in skype. 18 months later the Investment Group that purchased skype from eb ebay, but ebay helped 30 of the company and managed it from a higher price when it was sold to microsoft, about 8. 5 billion. Did Mark Andresen know at the time the group was purchasing a controlling interest from ebay that microsoft was interested. Did he enter into a confidentiality agreement that prevented sharing information. A lot of questions continue. Want to get to the broader issue in a minute. A manresponse from ebay and mr. Andresen himself. He says, for example, ebays retained ownership in the skype spinoff 30 versus andrens approximate 3 . That ownership gave ebay a bigger role in Decision Making after the spinoff than andresen, as well as far bigger economic payoff on the sale of microsoft. True, a lot more from mr mr. Andresen defending himself. This larger issue is an interesting one and ive been trying to talk to a number of the people who sit on boards of Big Technology companies who are not venture capitalists, there is a conflict in a lot of venture capitalists sitting on boards, people looking for exits, to fund the next disruption, people who conceivably have a lot of different plays in place at any one time. I have to say, i have gotten an affirmative response saying it is something worthying about. Right. There is i dont want to say double standard. But out west, its like a weve got all of these people involved in the areas and they know and this expertise and its the way that we help us. Let me end with andresen on this. Some people have floated a theory that venture capitalists are more prone to potential conflicts than other kinds of directors. I dont think its true. Hedge Fund Managers tend to hold equity stakes in Many Companies at same time, creating the exact same kind of potential conflict. I was cited examples, nonetheless, eye opening, or some directors believe that others who sat on the board who had venture capitalists in other companies should have the been doing a full a job as they were designed to protect. I dont know, i started this street com and guys involved, competitors coming together, a venture capitalist, thats how you do it. So crowded corner of our economy with some very large player, its hard to turn around. Technology companies, i mean, you need a guy who understands whats happening here, there. I dont know, like carl icahn but i understand the other side of the equation. Only icahn would go after andresen but andresen defending himself with his own letter. Bonds and the dollar, Rick Santelli in chicago. Good morning. Good morning. Of course, whats going on in ukraine, having an effect in the marketplace. However, how large an effect, how long lasting will be debated. One day, two day, charts of tens will show you, 2. 65. Down one point. Lowest yields in february. Yeartodate of 30s. Lowest yields since early february. We can take some areas out, traders are looking for momentum trade in that regard. If we look at whats go on with some of the foreign sovereigns, lets look at bund, hovering at yields since july of last year. Look at uk tenyear, lowest yields since november. What happens to flight to safety on the dollar index and stocks . Dollar Index Trading under 80, you can see hovering in the zone just a few ticks away from an area we havent seen on a closing basis since october of last year. We look at euro versus dollar, interesting chart, its not right on the highs but it was on the highs, close to the highest level in a closing basis that weve seen since, well end of 2011. Thats the trade thats surprising traders the most. Back to you. Thank you so much. See you in a few minutes, Rick Santelli. Warren buffetts thoughts on big blue. Got to stick around for that. Later on, the pawn star Rick Harrison, compete and American Consumer on a big week of macro da data. Early movers. Weve not had a positive first day of month since november and todays no different. Dow down 120. Theres this kid. Coach calls her a team player. Shes kind of special. She makes the whole team better. Hes the kind of player that puts the puck, horsehide, bullet. Right where it needs to be. Coach calls it logistics. Hes a great passer. Dependable. A winning team has to have one. Somebody you can count on. Somebody like my dad. This is my dad. Somebody like my mom. My grandfather. Im very pround of him. Her. Them. [ male announcer ] how did edward jones become one of the biggest Financial Services companies in the country . Hey. Yours . Not anymore. Come on in. [ male announcer ] by meeting you more than halfway. Its how edward jones makes sense of investing. Cut [bell rings] this. Is jane. Her long day on set starts with shoulder pain. And a choice take 6 tylenol in a day which is 2 aleve for. All day relief. Hmm. [bell ring] roll sound action save you fifteen percent or more on car insurance. Ould yep, Everybody Knows that. Well, did you know the ancient pyramids were actually a mistake . Uhoh. Geico. Fifteen minutes could save you fifteen percent or more on car insurance. Warren buffett defending new ibm ceo, take a listen. She got handed the company at time of a real transition in the business, and her record, i feel fine with her at this point. But her record will be judged, you know, five years from now. Theres a lot going on in that business, and i think theyre doing well, but the final score will be five years or ten years from now. Read between the lines. That hurts. Right. That was not, listen this is a not one to be on. Remember, traditionally does not Like Technology stocks you can see that in old interviews. This is a tech company and not doing as well as other companies that he owns, with exception of cocacola, cocacola international. A tepid endorsement. I feel fine with her. I think you can go further if you wanted to, and he has in terms of being more right. Knowing her, that wasnt the intention she inherited a company that was in transition. I thought she inherited a strong company. Stock trading with jim after a break. Former chairman, jim oneill, what does he think about the jobs number . In todays market, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price, maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of Fidelity Investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. [ banker ] sydney needed some Financial Guidance so she could take her dream to the next level. So we talked about her options. Her valuable assets were staying. And selling her car wouldnt fly. We helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today. And tomorrow. So lets see what we can do about that. Remodel. Motorcycle. [ female announcer ] some questions take more than a bank. They take a banker. Make a my financial priorities appointment today. Because when people talk, great things happen. Bulldog you know, not all heroes wear capes. Bulldog you know, some wear fur. And mattress discounters good deed dogs is here to help them. Meet yara. She helps veterans like marv stay independent. This is caspin. He helps wallace with things she cant do on her own. And goldie helps children with developmental disabilities, while suzie works with people in the hospital. You can be a hero, too. Give it mattressdiscountersdogs. Com, or any mattress discounters. Mattress discounters good deed dogs helping dogs help people. To nbcuniversals coveragens of the biggest loser olympic winter games ever, with the most coverage of the most events on every device. And the most hours of streaming video on the nbc sports live extra app, including the x1 platform from xfinity. Comcast was honored to bring every minute of every medal of nbcuniversals coverage to every screen. So whats next . Rio 2016. Welcome to whats next. Comcast nbcuniversal. Time for cramer and stop trade. Ive got to tell you something, news this morning that if youre focused on microsoft, if youre focused on what dells going to do youre flabbergasted this morning because the big, big bump up here for mark penn, making him chief strategy look, hes an old friend of mine and steve ballmer, we went to school together. He was democrat of operative with clinton. So this guy to move up is to say, wait a second, im sure say some say is it business as usual . A guy who devised how people think about microsoft moves higher, not lower . To me sounds like maybe the change to misquote sam koch is not going to to come. Nicely done. Tesla today . Jpmorgan we see this over and over again, the stock is overrun, using a metaphor there, jpmorgan raises price market. Using 20 20 volume numbers, 20 20 foresight. Instead of making 228,000, theyll make 288,000. I point out the ease which they raised 2 billion. One of the largest raises in quite some time. Amazing. It is amazing. 1. 25 on 7year, not like theyre pay you a lot of money, and up 40 on the conversion. This is i found this flabbergasting. Ive got to tell you, i didnt give every single award on my friday show mad money to elon mu musk. I thought Warren Buffett would say, whos the next billionaire, i thought he might say musk. Teslas not done. One thing, target, its not 320. Yeah. So many bears doing everything they can to inch up toward yeah. Down 80 from the current price. I should short the stock . Taking the egg, ham and cheese off this guys face, slowly one piece at a time. Tonight. Ice sis, one of the hottest stocks, dr. Strandly crooke. Isis one of the two or three leaders, rna science, stay focused on biotech. What a run. Great stuff, jim. Steve balmy, mark penn. Things showing. See you tonight. When we come back, or ra al of ho omaha talking ibm to Keystone Pipeline. Becky will join us from the break with more of her threehour interview. Later on, Gordon Bethune on the latest challenge airlines are facing as march comes in like a lion with another snowstorm hitting several states hard. Squawk on the street back in a minute. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. Honestly . I wanted a smartphone that shoots great video. So i got the new nokia lumia icon. Its got 1080p video, three times zoom, and a twentymegapixel sensor. Its got the brightest display, so i can see what im shooting even outdoors, and 4 mics that capture incredible sound. Plus, it has apps like vine and free cloud storage. My new lumia icon is so great, even our wipeouts look amazing. Honestly, i want to see you be brave so our business can be on at ts network for 175 a month . Yup. All 5 of you for 175. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line, anytime, for 15 a month. Low dues, great terms. Lets close new at t mobile share value plans our best value plans ever for business. Welcome back to squawk on the street. Expecting a couple of date, contemporary february read on ism and construction in january number. On ism, 53. 2, better than expected. 53. 2, just to give you an idea, last look at 51. 3. But if we go back in time, december, 56. 5. Obviously higher. We do see that prices paid, might be important as Commodity Prices move higher, 60 on prices paid. 52. 3 on employment index, which will be a particular interest to everybody with adp and the friday number. Thats unchanged from our last look. And if we look at new orders, 54. 5, thats an improvement. Construction spending, dont see it coming out. We know that washingtons close isms private, so at this point, expecting down half 1 for january construction. Well have to put that on the wish list for now. Im going to toss it back to sarah. When we do, and if we do, construction spending, we will put it at the bottom of your screen. Back to you. Ahead of the jobs report on friday. Situation in ukraine intensifying over the weekend. Russia has sent troops to occupied crimea cutting a mark reaction. Latest on the crisis and u. S. Option for action, jim maceda in moscow for us. Good to see you, jim. Reporter well, over the weekend, weve seen various western officials led by secretary of state john kerry, mobilizing a kind of diplomatic blitz against putins actions in ukraine. But besides this war of words analysts have been telling us the u. S. And its allies have few options when it comes to pressuring putin and putin knows that. Diplomatic sanctions like boycotting the upcoming g8 summit in june, sochi, they dent putins pride but its symbolic. Economic sanctions, the u. S. Has little leverage over russia. Eu sanctions might have teeth, were told at least. But its reluctant to go there because putin could retaliate, spike natural gas prices. Finance sanctions, like freezing putins assets in u. S. Banks might work but recall last year, the u. S. Act did just that, to certain russian human rights abusers but the only tangible result was a russian ban on u. S. option. What remains what were seeing, diplomatic pressure. Kremlin, were seeing from here, hearing kerrys criticism. Fo foreign minister lav aaron regent lav rov were unacceptable. Putin appears unaffected by any of this pressure as he stays focused on what our sources are calling his main goal, which is reminding kiev, reminding the west, that the future of ukraine will only be decided with and not without vladimir putin. Jim maceda, thank you. Dominic chu, a market flash. Good morning. Four companies with exposure to the russian and ukrainian markets are getting hit this morning. Check out kiwi, the paypal of russia, losing the most. Companies like Mobile Telesystems a Russian Internet and tv provider, and theres yandex and a Telecom Service operator lower here. All operate in and around that russian ukraine region. Market impact being felt. Global markets falling as investors keep the close eye on the situation in ukraine. Want to bring in art cashin, director for operations at ubs. Joins us at post nine. Good morning. Good morning. 1845 here well enough. So far, so good, 184548. Then 1841, two support areas if they were to violate that, that would be troublesome. Market trying to assess whats go on here. All looking at pictures of troop movements and whatnot, the real battle is in things like currencies and whats going on. Ruble has plunged. Theyve had to consider raising rates over there. Cant make mr. Putin too comfortable, but as jim maceda pointed out, theres no quick and easy diplomatic solution to this. So theres going to be little bit of a lagging and nagging concern. Dom pointed out some of those are exposed directly with assets in russia. You see it in europe in particular. But actually, its isolated here, isnt it . The likelihood its going to impact in this market in a big way, even if there was a protracted standoff that lasted for years, that may not impact this market at all. No, but as i say you look for the easiest areas of contagion and they tend to be quick shifts in currencies and then possibly things like bank loans. Ute crane has had to put limits on withdrawals at banks because money was beginning to hemorrhage out of there. Those things destabilize. You see neighboring currencies hit there the polish lobby, threeweek low versus the euro. Question for american investors, how do you think of geopolitical risk . Youve seen really important risks like syria without a major Market Reaction in the United States. Russia, obviously, much more economically important. Doesnt that make it a bigger risk here . Well, it is. You look at the syrian situation, you know, its horrendous for the people in syria, but over here, its a little bit more of ideological debate because it doesnt impact u. S. Companies, it doesnt impact the currency. Russia would be a much more formidable problem to have. Mr. Putin is not unhappy with the role of adversary here. Think think this can drag out. Youve got the market try to move up, and rick came out with the ism numbers and that was somewhat better, but the market is still testing and retesting here. Like a patient who had a bit of a shock. He wanted to find out how far he can walk without getting a chest pain. A confident patient, isnt it . Look at amount of debt people have taken on. Weve hit a record of 451 billion of margin debt. You referenced in your importmo note this morning. It stands at moment an indication people feel confident. Yes. Being an old contrarian in the business, when everyone feel comfortable, thats the time to be a little uncomfortable. Ukraine aside, first days of the month have not been good. Havent had an up one since november, whats that about . I think a temporary phenomenon. I dont think anything important about it. What you should note is its confusing since the first day of a new month sees buyers. New money for the new time coming in. I think weve just had a couple of news events that have turned us. We look forward more economic date it and the jobs report on friday. I think friday will be a potentially critical time, depending where we are technically in the markets. But well see what the nonfarm payrolls come in and particularly the unemployment number. You know, still flirting with that air and the fed has not clarified that. So you know, well be looking. Markets will be edgy coming into that. Art, thanks. Airlines grounded more than 4500 flights and delayed thousands more since saturday due to the latest winter storm. Big airlines eased rebooking rules for passengers in the storms path. The severe disruptions reported in washingtons Reagan National airport. Joinings now, former Continental Airline ceo and cnbc contributor, Gordon Bethune. Nice to see you. Welcome. This seems to be impacting the airline on friday, issued a revenue warning because in the first two months of the year it had four times cancellations, believe it or not, that it had the year before. This is getting serious. As you know, First Quarters a challenge for profitability. This is going to impact revenues for the First Quarter. I suspect guidance changing in near term. I mean its not just bad weather. If all of the rules say you cant keep sitting on tarmac, you guys, former colleagues, running tighter schedules these days that demand faster turnarounds. Im wondering if youre a victim of your own schedule. I think you schedule for an optimum weather and of course react to bad weather. The rules have impacted how Airlines Operate since its against the law to stay out there for more than three hours, you cancel a flight. Unfortunately for many passengers, theres no Seat Available on the subsequent flights so thats having an affect as well. State of the Airline Industry now, weve seen this on consolidation, the fact that the airlines are in costcutting mode now, does that make more cancellations likely, especially ahead of the storms. I dont think they do it on that base cnbc. The operational impact, they cant fly, lets say, when the plane is when the airport is closed. So thats going to affect revenue. This cumulative effect of the the weather, First Quarter will have a big effect on profitability First Quarter, for sure. What about the Regional Airlines in particular, gordon, that we report from the Government Accountability office on friday that said that they have got much deeper and widespread pilot shortages. The enfor instance inference cu salary pilot of 22,000 is not up to scratch and they cant attract talent that they need. And it least at the regional level. That is a concern. I think its a concern. Theyve raised the entry level to 1500 which is expensive to achieve. Of course the union sacrifices the first year pay so that they can have higher paid people in the later years so that structure probably needs to be addressed. Entry level wages are too low to attract that kind of expensive education, 1500. Sure. So it does escalate up. Before we let you go, your reaction, if i may, to deltas move last week where it changed its loyalty scheme. Broke away from the top three and said we will reward according to how much you pay for your flights, not how many miles you travel. So a lot of people that could signal the unraveling of the attractiveness of those reward schemes. Do you worry for them . I dont, simon. I think it makes it more attractive for those spending more. So, its a zero sum game, you have to give away and take away. It is going to change structure of how they reward you. I believe you should reward the people that pay you the most. I think thats what deltas doing. I think theyre brilliant. I guess so. Business customers worth three, four times as much as economy. Good to see you. Thank you for your time. Former continental ceo and cnbc contributor. Warren buffett speaking out on the economy. We havent gotten wildly optimistic or pessimistic, the peer is small waves of pessimism and optimism. Its been pretty darn steady improving. Slow and steady, he says. What about the companies in his portfolio . Well get you the latest with buffett watchers later. Later the man who coined the term bric and mints. Jim oneill, joining us to discuss the latest on ukraine. How that is impacting the Global Market. Which makes you wonder. Isnt that a conflict . Search proprietary mutual funds. Yikes then go to e trade. Weve got over 8,000 mutual funds and not one of them has our name on it. Were in the business of finding the right investments for you. E trade. Less for us, more for you. The funds prospectus contains its investment objectives, risks, charges, expenses and other Important Information and should be read and considered carefully before investing. For a current prospectus visit www. Etrade. Com mutualfunds. Could cheryl sanburg be making a senate bid . Planning to run for a seat in 2016, likely mounting a challenge sense Barbara Boxer. The billionaire tech executive formerly served as chief of staff to Larry Summers during the clinton presidency. Could easily finance her own campaign which would run 30 million to 40le. Stories i argue thinly reported there. But we will see. Whether she has political ambitions, obviouslyquestion. One wonder why up against bongsbong bongsbongs boxer when feinsteins up in 18 and will be 85 and expected not run. A nasty primary campaign in a democratic state. Facebook may be losing one of its rainmakers in term of modernization. I think its part of the narrative, shes 44, ambitious, she has been as we pointed out involved in politics in a way, serving with Larry Summers years ago. 1. 6 billion. Made the billionaires list for the first time on forbes. Following berkshires shareholder letter, Warren Buffett sat down with becky quick who joins us with more from omaha. Tour deforce, you guys covered everything from bitcoin, coke, ibm, activism. Where to begin . You know, i thought wed start out talking about whats happening today, carl. Watch the major averages today, investors are spooked by whats happening in ukraine. The dows down over 150 points similar to what the losses looked like when we sat down with them in the morning, premark trading with futures down over 150 points, too. But longterm investor like Warren Buffett, watching that situation in the ukraine doesnt spook him in terms of what you should be dealing with investments. He does say for people in the area, its a horrible situation, watch from a humanitarian perspective what happens there. But he points out that, even in times of war, the place where you see the most punishment in terms of investment, cash loses value. What does he like now . He says for people who arent professional investors, trying to invest at home but dont do this for a living he like index funds that track s p 500. He says the low cost ones are the best ones. In his annual letter to shareholders he pointed out that for his liwife he has set aside money from her, of that 90 should go into vanguard index, the other 10 in bonds. Its a very, very low Cost Index Fund and there are others, but there are others that arent so low cost. Keeping cost to a minimum is enormously important in investing whether its farms or buildings in new york, but particularly in stocks. If you if youre paying out 1 or 2 annually, of your portfolio, thats a big, big tax that you dont have to pay. So, what does buffett not like now . Bitcoin. He says that bitcoin right now, looks tulip like to him. Its out of kour recurrency. It does not meet the test of a currency. I wouldnt be surprised if its not around. 10 or 20 years. Why does it not meet the definition of a currency. People say i will sell you goods in bitcoin but they change the price. The pricing off the dollar, they can say, ill sell it to you in barrels of oil but every time the price of ill oil changes they change the number of barrels. Oil is not the currency. The other news that has gotten play here, what he said about the Keystone Pipeline. Hes always said he wouldnt make an argument against the pipeline but jim cramer wanted to know what he thought. He said if it came down to it if he had to vote, hed vote in faber of the pipeline. Surprised people. One of his companies responsible for taking a lot and moving crude oil that comes out of there because there isnt a pipeline. Interesting point. Well see if he makes another energy investment. Thats something people are talking about as well. Lets get more on buffett watchers. Jeff matthews Berkshire Hathaway shareholder and author of secrets in plain sight, business and investing secrets of Warren Buffett, and robert myles, author of Warren Buffett ceo. Both shareholders and both authors of books about Warren Buffett. I guess you believe in his philosophy. Let me start with you, robert, the fact here that warrens not beating the s p by his own metric in the last five years, thats the tension here. Do you think thats having an impact inside berkshire . No, i dont think so. Warren doesnt beat the s p historically when the s p is enjoying two to three times its historical average. The time that warren performs and shows genius is when the s p is underperforming other losing money. Then hes able to add the most amount of value for shareholders. Its not a concern. Hes up 18 . Hes doing just fine. Berkshires a great investment. And, jeff, pick up where becky left off on the energy question. Obviously, throwing his support behind the Keystone Pipeline. You expect him to make another big deal in energy here . Absolutely. He came out and said in his letter, he talked about the deal they did last year in nevada, e said theyll do more deals in the future. He loves it, he can put capital to work at a regulated rate of return, assured rate of return over the years, and hes going to keep doing deals in that sector. On the subject of deals, i thought it was interesting in the letter he mentioned the heinz deal. An interesting sort of scenario because it was almost a shared deal in terms of financing. Is this a new model for Warren Buffett and berkshire. I think warren said its a model youll be seeing more deal like that where he partners with somebody who brings him the deal, he puts up the cash, hell give them preferred shares, hell get a preferred dividend, and then eventually he will acquire the firm which is somewhat what he did with mid America Energy and what hes done with heinz, youll see more deals like that in the future. Let me return to the fact that hes got half of the performance of the s p last year and yet says that in leaving money potentially to his wife, hell put that in a tracker fun. One thing hes not invested in is technology. Thats one of the great winners. Do you think that as the leadership of berkshire changes and of course hes in his 80s, that they will change their investing style or update perhaps for whats done best in the 21st century. Well, i think you heard this morning on his three hours where todd combs shared his investment philosophy, very similar to warren where he said if he cant go out more than five years to see where a company will perform, he wont invest in them. So i think that the challenge with technology is trying to figure out where theyre going to be in the future in order to safely invest today. So, if ted or todd are not comfortable, imnot sure youll see a Seismic Shift in the way berkshire invested its capital after they take over from warren. There wasnt a lot of talk of the three ts leaving berkshire. Thank you for the perspective on Warren Buffett. Speaking of Warren Buffett, forbes bill airs list is out. Who topped the list and who missed out . Well speak with a forbes editor. Apple is coming to a car near you. The companys unveiling the ios system for your dashboard. Tdd 18886486021 there are Trading Opportunities tdd 18886486021 just waiting to be found. Tdd 18886486021 at schwab, were here to help tdd 18886486021 bring what inspires you tdd 18886486021 out there. In here. Tdd 18886486021 out there, tdd 18886486021 there are stocks on the move. Tdd 18886486021 in here, streetsmart edge has tdd 18886486021 chart pattern recognition tdd 18886486021 which shows you which ones are bullish or bearish. Tdd 18886486021 now, earn 300 commissionfree online trades. Tdd 18886486021 call 18886486021 tdd 18886486021 or go to schwab. Com trading to learn how. Tdd 18886486021 our trading specialists can tdd 18886486021 help you set up your platform. Tdd 18886486021 because when your tools look the way you want tdd 18886486021 and work the way you think, you can trade at your best. Tdd 18886486021 get it all with no trade minimum. Tdd 18886486021 and only 8. 95 a trade. Tdd 18886486021 open an account and earn 300 commissionfree online trades. Tdd 18886486021 call 18886486021 to learn more. Tdd 18886486021 so you can take charge tdd 18886486021 of your trading. Coach calls her a team player. Shes kind of special. She makes the whole team better. Hes the kind of player that puts the puck, horsehide, bullet. Right where it needs to be. Coach calls it logistics. Hes a great passer. Dependable. A winning team has to have one. Somebody you can count on. Somebody like my dad. This is my dad. Somebody like my mom. My grandfather. Im very pround of him. Her. Them. If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. Welcome back to squawk on the street. Im phil lebeau with breaking news no toyota. February auto sales coming in decline of 4. 3, weaker than the street estimate. Estimate for a decline of 2. 5 . Take a look at shares of toyota. Mixed bag from automakers. Interesting to see what the sales rate is for the month, many saying coulden as low as 15. 3 million. Well see you later on. Phil lebeau. Apples announcing an ios powered carplay for your cars josh lipton in sunnyvale, california, with the latest. Good morning, josh. Reporter good morning, carl. Tech titans are fighting hard to get their technology into your car, and apple just made a big move in that ongoing battle. Meet carplay, a new way to use your iphone in the car. And heres how the technology works. Get in the car, you plug in your iphone 5s, 5c,5 and use this on board display to make calls, use maps, listen to music, or access messages with either voice or touch. Greg, apples vp of iphone, tell me its giving iphone users constant access to smartphones. We do it for our customers, users, theyll have cars, want to great experience in the car. We dont want great experience with iphone to end at moment they walk into the car. We want it to get better and better. Reporter apple is teaming up with mercedes which isnt disclosing the price of carplay at this time. But mercedes is aiming to introduce carplay in its cclass vehicle by the only of the year. Analysts tell me carmakers could charge up to 1,000 for carplay. It would have to be careful. Consumers want technology but wont want to pay premium prices. Besides mercedes, apple partnering with a range of carmakers including ferrari, volvo, down the road bmw, ford, gm and others. Other tech companiy working har to introduce technologies as well. Google partnered with audi. Gm, honda, hyundai. Apple wants you to use the operating system at home, at work, now in the car. Mercedes tell me they want you to think of carplay as, quote, an iphone on wheels. To be clear here, youre showing the ipad or iphone on the dashboard. It more than that. There are they are putting the ios system into the car, it the first time theyve put the operating system in a nonapple product. This is a huge move for them. Reporter its a huge move for apple. Again, first with mercedes. Officials telling us theyre hoping to have it in their cclass vehicles by the end of the year. Its not just mercedes. Range of carmakers partnering with apple for carplay. Back to you. Thank you for that. Josh lipton with latest on an until california. Down 148 on the dow. Over to Rick Santelli for the sanofi santelli exchange. Id like to welcome our guest. Thanks for taking time this morning. Thanks. So we have data points start out there. There were big revisions taking away the income and spending from last month, leaving january basically unchanged. February, you noticed things regarding the personal consumption expenditure, which is a fed favorite, versus cpi specifically to renters. Tell gl us. The gain was 1. 2 but we saw a week cpi for the same month up 1. 6 . The gap is between the cpi focuses more on or least higher contribution to housing, and which a lot of that is rent. Rent of a home is running near 3 yearoveryear which is well above the rate of income growth. The pec has a smaller component and higher medical care component moderating through the soft Economic Data. We have the most renters since 95. The lowest since then, which implies households are renting and that is a make the argument thats the largest cost of living expense for a lot of households, and instead conveniently its not focusing on that, focusing on the pce which has a smaller component. Theyll miss the inflation turn that will pick up because of rent but also rising Commodity Prices. Not only that, think about it, the rent is going up, if youre a renter, 3 yearoveryear. And if you owned it, youd get form of price appreciation, so creating a pottersville scenario. Switch gears a bit. Theres no alternative, this whole aspect, call me flatterth, why is it exactly again that whats going on in ukraine is taking the aspect out of the u. S. Stock market in it doesnt square with them. I would suspect we should have seen a better impact on the dollar but specifically, why is whats go on in ukraine causing selling in the u. S. Stock market in your opinion . I think its because of russias involvement and the Ripple Effect that russia has in and of itself, whether them being a huge Energy Exporter to the reege. Ukraine being a large exporter of corn and wheat. But all of those things, well take up the slack on the corn, ukraines Third Largest exporter. Im saying exports are a small function of our gdp. Im surprised. Youre not surprised on any level . I think this is a kneejerk geopolitical mess that markets respond to. I would not be surprised by friday were focusing on the payroll number and how the fed responds. If russia has a problem, europe has a problem. If europe has a problem, its going impact the world because its a huge economic trading partner. We have to wrap it up. Didnt they have the chance on the game of risk to make a play to get ukraine in the eu . There were issues they didnt qualify for but thats looking like a rear view mirror issue they should have addressed in an aggressive fashion, yes or no. Yes they should have but russia strong armed the pm of ukraine which is no longer the president in thanks for taking time. Squawk squawk on the street, you. Next, soon to come at least, well sit down with a man that knows a thing or two about emerging markets, jim oneill, former Goldman Sachs manage somewhere chairman will join us live. Well get his take on the ukraine and his latest on the mint nations. Back in two. Do you know which ones to follow . The equity summary score consolidates the ratings of up to 10 independent Research Providers into a single score thats weighted based on how accurate theyve been in the past. Im Howard Spielberg of Fidelity Investments. The equity summary score is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. [ male announcer ] help brazil reduce its overall reliance on foreign imports with the launch of the countrys largest petrochemical operation. When emerson takes up the challenge, its never been done before simply becomes consider it solved. Emerson. Emerson. To nbcuniversals coveragens of the biggest loser olympic winter games ever, with the most coverage of the most events on every device. And the most hours of streaming video on the nbc sports live extra app, including the x1 platform from xfinity. Comcast was honored to bring every minute of every medal of nbcuniversals coverage to every screen. So whats next . Rio 2016. Welcome to whats next. Comcast nbcuniversal. Time to file the annual 10k, it implemented a new system to improvite Financial Disclosure controls which seems to have backfired. They cant catch a break at moment there the weather hasnt helped either. We havent heart the Quarterly Earnings but a lot of expectations that its not going to be great, given whats happened with the weather and the airline cancellations. Activist shareholder, some in there, the proxy deadline passed without any action by anybody. Well see whether they do move to spin off their Equipment Leasing business. Want to talk about the economy now. We did get positive news on that front. Accelerated u. S. Manufacturing growth in february, plus monthly increases for consumer income and spending but of course ongoing instability in ukraine and russia, a rough start for the first trading day of march. Want to bring in Michelle Meyers and our own bob pisani on the markets joins us as well. What do you make of the positive Economic Data reports now, given were in this period where its so hard to glean a sense of the economy because of the weather. Exactly right. Datas hard to interpret now. You have weather impact with hopefully starting to diminish role in the data as the weather conditions improve across the country. Then you have this inventory cycle, we ended the end of last year with abnormally high inventories, the workdown can weigh on production as well. Were experiencing a period of some short term soft innocence data flow and expect that to bounce higher in the coming months. Were optimistic for growth this year. Bob, the trader take on the weather has been sort of blame the weather, cant get a real sense of it. Are they right or are there fundamental concerns that people should be looking at . I think that where there are some indications theres good news, i read that ism report every month because its got comments from respondents in it and i was surprised how strong the ch commentary was. Higher than normal demand for this time of year, strong month in terms of growth, we had a slow january, but somebody in machinist said, were having trouble finding qualified machinists with all of this worry about the weather, mainly perhaps underestimating some underlying strength in the economy . Its funny, i did the same thing, i looked at the components, it was a weather story or optimistic strong commentary. Im glad you pointed that out. I think thats right. There is probably good news to glean from this, despite the fact you had drag due to the weather, production picked up. New orders still improved. That shows that perhaps theyre trying to see improving demand. Durable good orders better in terms of core capital goods. We feel comfortable that its short term weakness and well see stronger demand ahead. Inventories, they appear to have been wanted not unwanted. If theres underlying strength wont we get rid of the inventories quickly . We will. If demand is strong enough, that will be manageable. If you think about it in terms of gdp impact, inventories is a residual. Youre seeing less inventory, so its a drag to growth. Q1, it looks like were going to see growth in high 1 range as a result of the inventory drawdown and weather from we know what a lot of commodities did in february. Gold at 1350 today. Where are you on the inflation, disinflation, deflation debate right now . Were in the disinflationary camp. We dont think well see deflation but we certainly doesnt think were entering an environment, rapid inflation either. If you look at measures of the labor market, which its getting harder to gauge as Unemployment Rate comes down, there are signs of under utilization, marriagely attached whatters, part time for economic reasons and that represents hidden slack in the labor market, and it will keep down pressure on overall core inflation. The last two jobs reports were disappointing, hard to predict. How do you go about making a model for fridays job number . It is not easy because trying to put weather variables in models have been frustrating. Our baseline forecast is below consensus, were at 115,000. We tended to focus a lot on the weather conditions during this survey week and they were poor, with a snowstorm that hit the east coast, particularly the southeast had a big shutdown in activity. We think that will result in weakness in the headline number. But as you suggest, theres a big rhyme for air flr this months payroll number. 150, looks like consensus. Theyre the low on the street, arent you . 115 are you at, that is right . Were not the low but were one of the low forecasts. Pessimistic as a group on the street. Michelle, good to check in with you. Bob pisani, see you as well on the markets. Dom chu, this darden story, what happens go on . Along the weather lines, darden restaurants, the worst performer on at s p 500 today. Projecting Third Quarter profits below estimates due to, guess what, bad weather, lower sales. Cited higher legal fees for the spinoff of red lob terstster. Live to kiev, ukraine, Russian Military consolidating forces in the crimea peninsula. The market taking a hit, too. Well talk to former Goldman Sachs Asset Management chair jim oneill who knows a thing or two about that part of the world. Risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. announcer scottrade knows our and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. My sinuses are acting up and ive got this runny nose. I better take something. Truth is, sudafed pe pressure and pain wont treat all of your symptoms. Really . Alka seltzer plus severe sinus fights your tough sinus symptoms plus your runny nose. Oh what a relief it is could save you fifteen percent or more on car insurance. S Everybody Knows that. Well, did you know that when a tree falls in the forest and no ones around, it does make a sound . Ohhh. Ugh. Geico. Little help here. I needthats my geico Digital Insurance id card gots all my pertinents on it and such. Works for me. Turn to the camera. Ah, actually i think my eyes might ha. Next Digital Insurance id cards. Just a tap away on the geico app. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner, brighter future. At boeing, thats what building Something Better is all about. Second of state kerry will be heading to kiev tomorrow to meet with the countrys new, embattled government. Steve sedgwick is live. How would you describe the atmosphere . Reporter its incredibly tense. Events over the last couple of days have been extraordinary. Of course, this new Ukrainian Government in power for two full days post the yanukovych ousting which cost so many lives, and protesters today taken to nearly 100 deaths that government face an invasion of territory in first two days as well. Im been speaking about the movement of Russian Troops of ukraine territory. Lets listen in to see what he had to say how we get over the situation. My message is that we will find a political and diplomatic solution despite the fact that Russian Military constantly provokes Ukrainian Navy and Ukrainian Forces, our forces and our soldiers are in barracks and we didnt use any force or live ammunition. And we asked russian president to stop his soldiers. No more russian boots on ukrainian ground. Reporter you can hear it in no uncertain terms, no more russian boots on ukrainian soil. The response, Russian Black Sea giving an ultimatum to Ukrainian Forces left in the Crimean Peninsula saying if you dont sur rememb surrender by 5 00, youll face an assault as well. He says we have twin crises in ukraine, one the financial crisis but the pressing is military crisis with Russian Troops on the ground in ukraine. Steve sedgwick, thank you so much. More color on the global and fx markets. Michelle carusocabrera you came from there and steves right two crises, how do we handle them . Yeah, those are great points. But i add something else, carl, the fact that the Capital Markets are punishing russia today in a way that diplomacy has not been able to do. We have focused a lot on coverage about the Global Market selloff, the selloff of stocks in the u. S. However, bond have rallied. Look at every asset glass russia, investors are abandoning it. Its so bad the central bank had to raise Interest Rates by 1. 5 percentage points. Take a look at ruble over last week and see over the last year its really getting hammered the russian stock market as well, the falloff here in the last couple of days, look to right of the oneyear chart, compelling a decline of 12 . Capital flight leaving russia. Does putin care about capital flight . Trades of multiple between 4 and 6, pathetic for a massive oil producer in a world where oil is at the price that its at. Its not clear. Hes a wealthy individual. His people will suffer, his businesses will suffer, its not clear he will suffer. Lets bring up the price of oil, one thing to keep in mind, every single time we see the price of it rise, like we have today, it helps him out a lot because russias one of the largest if not the largest producer of oil in the world, even bigger than saudi arabia. He needs oil high because they have spent so much money at federal level they need the price at 100 bucks or more. Ten years ago they guys, back to you. Michelle, that was good contacts around some of the market moves. Michelle carusocabrera at headquarters. Coming up, it wasnt just the oscars winners celebrating their fortunes. Forbes out with its new billionaire list. But who was surprisingly missing from that list . Well name some names. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. To nbcuniversals coveragens of the biggest loser olympic winter games ever, with the most coverage of the most events on every device. And the most hours of streaming video on the nbc sports live extra app, including the x1 platform from xfinity. Comcast was honored to bring every minute of every medal of nbcuniversals coverage to every screen. So whats next . Rio 2016. Welcome to whats next. Comcast nbcuniversal. Forbes is out with the billionaires list this morning. Back on top after a fouryear hiatus hes back on top. Its good to be bill gates, isnt it . Even better this year. Hes been number one. Weve been doing this 28 years, the world billionaires list, hes been number one 15 of those years. Carlos has been number one for the past four years. Hes the only billionaire in the top 20 that went down over the last year. And bill gates even though hes given away so much money, you include the money hes given away hed be our first 100 billion person. But again, hes given away a lot of money. But hes still the richest man in the world. Were looking at the top five. Theres gates, theres slim, ortega, buffett. I think whats more interesting is who you chose to put on the cover. Yeah. Its the american dream. I mean, this is a guy who came to america from the ukraine. We were just talking about the ukraine. A kid as a teenager came here at 15 years old, his father passed away in the ukraine, his mother got cancer and died. He was alone here in america. He grew up on welfare. And when he signed this deal, this whatsapp deal, he tweeted out the picture and went to the Welfare Office where he used to get welfare checks and signed the deal. Hes personally worth 6. 8 billion and thats after tax. Pretty good payday on that deal. I love this stat from your piece, a record net worth of 31 billion was needed this year to make the top 20. Thats up from 23 billion last year. I guess the story there is bull market and these massive tech deals . Yeah. 30 billion is the new 1 billion. I mean, we have 122 people in the world now worth more than 10 billion. So 11 digits is now something thats very achievable. The bull market, you know, when we see the markets go up of course all your viewers, they see what happens with their portfolio, thats exponential again with especially a lot of these tech people. Retails really hot. Up 27, 28 new tech billionaires this year. We have 35 new retail billionair billionaires. People are buying things and technology, again, continues to lead. You see these flash fortunaes with these people in their 30s, early 40s, again, from zero to 7 billion amazing to watch. You got some old retail, so to speak, if i can call the Walton Family that. You add them all up and they would be number one if it was one person. Absolutely. If you took the coke brothers together they made 80 billion. If you took the Walton Family, theyd be 140 billion. So incredible fortunes. If you look at incredible fortunes it still says something, theyre still mostly in america. And if you look at, again, the surge we have almost 500 american billionaires now. America still dominates. And you still see, you know, again whatsapp is a great example. Heres something thats used around the world. Most people were surprised by whatsapp because people here in the states dont use it because we have text plans, but around the world this is ubiquitous it was an American Company developed this bought by another American Company. This list does Say Something about the continued dominance of american ownership. Every year you brace for the critics, right . Who would attack your methodology, people who think they should be higher on the list, people who think they should be on the list. How do you get around that . We have a we dont trust anybody. We check everything. We talk to almost all these billionaires at some point during the process. A lot of them are, we think, probably fibbing to get a little higher. A lot of fibbing to get lower on the list. And we basically look at the numbers and call it like we see it. Again, a lot of these people are publicly traded. Thats easy. Private companies its harder. Again, weve been doing this for over three decades. We have miles and miles of files. A lot of expertise and we feel our numbers are as good as youre going to get. Thats why its still one of the most provocative covers in all of Business Media every year. Randall, thanks for coming by. Thank you. Randall lane of forbes. Dow down 49, not quite the lows of the session. Well get back to the market moves and everything going on in ukraine in just a moment. [ female announcer ] who are we . We are the thinkers. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into Business Owners. And were here to help start your ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, it could save you in outofpocket medical costs. Call now to request your free decision guide. Ive been with my doctor for 12 years. Now i know ill be able to stick with him. [ male announcer ] youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. See why millions of people have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. Dont wait. Call now. All right. We are watching the markets. Dow down triple digits now 136 points. Tensions in ukraine. What were seeing is this flight into safe haven assets. U. S. Treasuries, gold, the dollar and japanese yen is whats taking us through this session, guys. There were some big losses in europe, guys, which ill run you through in about half an hours time. Big, big losses on some of the banks and businesses that of course have moved into russia and actually physically own assets there. But thats for later. Obviously very closely, guys. Thanks so much. Sarah and simon. Todays road map begins with the markets as simon just said trading deep into the red due in large part of the tensions between russia and ukraine. We will take a closer look and show you the biggest losers so far this morning. And speaking of russia, this man coined the term bric which includes russia in the list of fast developing economies. Jim o neil will give us more in a few minutes. And texas tech, best selling author and aspiring politician, try these words on for size, senator Sheryl Sandberg. And known for being the master of unusual transactions, so what does he make of the bitcoin phenomenon . Star of pawn stars joins us this hour. What a treat, henry here the editor and ceo of business insider, ive been trying to get this to happen for a while. Its so great to have you. Thank you for being here. We just got the forbes billionaire list and its been heading to Silicon Valley. Staggering. Just a Staggering Number so fast out of nowhere shocked everybody. And culturally the oscars last night, somebody called it a threehour commercial for twitter as the cultural war continues between them and facebook. And samsung, the selfies, absolutely. Yeah. Who do you think so far this year who have been the big winners in your view . Well, obviously whats app. There are others out there like wechat in china is much more successful than whatsapp. This has been the boom of the companies. And they again are taking a lot of people by surprise. Where are we in the cycle of all of this Wealth Creation in Silicon Valley, all of thein novation coming to these companies . How long can this actually last . That is the many billiondollar question. But the wealth thats been created just over the last decade, especially with the comeback, its staggering. It really is changing Silicon Valley, changing san francisco. Youd have to have a massive crash to disrupt whats going on. Prices paid per user. I mean, you know all these metrics from back in the day. Look at a twitter feed now theres a sock puppet when theyre talking whatsapp. Are they mild, nonexistent . I was shocked facebooks stock didnt drop sharply, not because i think it was incredibly stupid, but because i think it was incredibly bold. But for the market to say, okay, 19 billion, well take it on faith. That was very impressive. But if you look at wechat, if you look at line, these businesses are monetizable. And the base is so big if they just get a small amount from every user, its not like an eyeball, it starts to work. Do you think the comparison to Time Warner Cable is unfair though . I think this is unfair. Its 8 of the company, aol and time warner is 50 50, huge assets that had to be combined. This is a long bomb. Sometimes you complete those, youre worth it, you look like a hero. This could absolutely end up worthless. But thats why Mark Zuckerberg is where he is. Just a very bold transaction. And i think it has a decent chance of working. I cant wait to get your take on icahn versus an dreeson. Henry is here for the next 60 minutes. The big story is the tension in ukraine. Its part of the reason for todays selloff. Chief commander of russias fleet in the black sea, of course that is something we are watching. We have nbcs jim maseta live in moscow with the latest stories. Jim. Hi, kayla. The latest is that the commander of russias black sea fleet has apparently issued an ultimatum to the Ukrainian Forces still on the crimea peninsula, at least according to to russias staterun news agency interfax. The ultimatum says these Ukrainian Forces have until 5 00 a. M. Local time, thats 10 00 p. M. Eastern, to surrender or be subjected to an armed assault. Now, weve got calls into the Defense Ministry and the fleet but havent had a confirmation at this time. But already, kayla, russias really firmly in control of crimea. Its forces have either occupied or surrounded all government buildings, the Ukrainian Military bases and posts are surrounded. The ferry port and Telecom Towers are occupied. So putin already has in his hands the russian crown jewel. And of course it gives putin an essential warm water part and a base for that fleet. But it also counters what must be putins nightmare scenario and that is that the Ukrainian Government in kiev certainly cancels the black seas fleet base and then takes over control of crimea and then joins nato somewhere down the line effectively bringing the enemy in putins eyes right up to russias doorstep. That is the big fear on the part of the russians who are there. Kremlin watchers tell us that putin has made that calculus and its really unclear what the west can do about it. So far this standoff now has gone on without a shot being fired, but that could now well change with this latest russian ultimatum if confirmed. Kayla, back to you. Jim, thank you so much. Nbcs jim maceda working for us tonight in moscow. Henry, your quick take on the ukraine. We know theres symmetry between how much this matters to putin and how much it matters to the west. Is there a best Case Scenario out of this that doesnt involve him completely giving up . Best Case Scenario it gets diffused peacefully, quietly over time. I think the markets are hanging in there fairly well given the potential for this to be catastrophic. Yeah, well see, its obviously a long day and kerry is going to kiev. Well see how the story develops during the day. When we come back the biggest stories on tech on this monday morning. On deck Sheryl Sandberg reportedly eyeing a senate run. And an executive shakeup at microsoft. And Rick Santelli, what are you watching today . Well, were going to be kind of dissecting some of the data points today. Something important in a revision on construction spending. Were going to look at income and spending and natural gas problem and our own natural gas export import infrastructure and differences between zell and buffett all at the bottom of the hour. Scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner, brighter future. At boeing, thats what building Something Better is all about. Markets just a stones throw from down 200. Take a look at i. T. This morning. One of the biggest losers in trading today. Our don chu is back at hq with more on that. Hey, carl, i. T. Stocks are in the red. All sectors in the red, but this is the worst performing one. Leading the decline Alliance Data systems and jabil leading declines. Salesforce. Com had disappointing earnings last week, it continues some of that Downside Momentum today. And then autodesk and f5 networks rounding out the top five or bottom five if you want to call it that, but tech shares taking a hit in todays trade. Back to you. Henrys here for this mornings squawk feed along with jon fortt. Well start with what could be big news on facebooks coo Sheryl Sandberg. Shes planning running for a senate seat in 2016, seat currently held by Barbara Boxer who won in the 2010 election. Henry still onset, jon fortt is here too. Do we believe this . We do not. We talked to two sources close to Sheryl Sandberg who say its completely bogus, not happening. That said, at some point Sheryl Sandberg in politics, i hope so and expect so. There was some expectation when last year it was the opening saga for a potential 2016 president ial run or an otherwise very large political appointment. What do you think about that . Again, i think shes perfectly set up to go into politics. And i think it would be great for a lot of people if she did. The response though from her inner circle now is that this report is untrue. And this just smelled wrong right off the bat. Shes been a reliable fundraiser for the democratic establishment in california. To throw a stink bomb like this in the middle of the party wouldnt make a lot of sense. Wouldnt make her a lot of friends either. No, the sell side has always said her leaving is a negative risk, right . No question. But the more established facebook gets, the more there are other executives who could come in and take over the role that she plays. Mark leaving, huge issue. Sheryl leaving, huge issue, but there are a lot of executives who could come in and do that. Its tough though. Whos got the high profile to do what shes done there . I mean, and plus shes got that trust with mark. It would be quite a blow if she would step away, i think. In the ipo perspective both mark and sheryl are listed under this key man risk. But for the last year people have said sheryl was out promoting a book and mark spending a lot of time on Immigration Reform so effectively has this Company Already been run by other deputies . The key thing for facebook is on the product side. Theyre monetizing very well. The advertising engine is running. They got mobile. They nailed it. Thats why the stock has had such a good run. Again, it would definitely be a loss, but there are great executives who can do what sheryl does. If we lost both of them, then wed be talking about the future of facebook. And you mentioned zuckerbergs boldness with the whatsapp. Extraordinarily bold here. He has the ability to because he controls so much of the stock even if everybody else thinks hes crazy. I would say sheryl is the, again, more of an adult, more of a conservative view, my guess is mark drove that. All right. From apple to a major shakeup over at microsoft according to recode two microsoft executives reporting ceo are leaving the company. Evp of marketing tami reler, what do you think . The most important things out of microsoft are not the new products, its who the trusted team will be. Interesting that mark penn is sticking around, but i think maybe that has to do with his relationship with steve balmer. Satya nadella still going to have to deal with steve balmer and pushback on strategy. Heres somebody who knows how to communicate with the board. That makes sense to me. But i think it will be important to see how windows and office get treated. Who ends up with influence over that. And cloud now that satya, hes ceo, hes not going to be running that as directly anymore. Do you get the sense hell be picking from loyalists within the company to him, or going outside to find other risk takers . I really dont know. But hes got the reputation in Silicon Valley in general to be able to pull in some talent. Im not exactly sure where hes going to pull it in from. Interesting. I do wonder we keep hearing about price competition between the chrome and windows 8. 1. I think the best news about this is he is moving quickly. And that is what has to happen at microsoft. Tremendous cash flow today, but the clock is ticking and it is ticking fast. They have to move quickly. Yeah. Finally it was the selfie heard round the world. This picture shot by Bradley Cooper at the oscars last night quickly became the mostshared picture in the history of twitter, retweeted over 2 million times during the broadcast. Shatters the previous record of 780,000, which belonged to a picture of the president hugging the first lady on Election Night in 2012. I mean, could it have gone any better for twitter, jon . No, it couldnt have, i guess. But i dont think this is kind of a landmark moment for twitter. I think this actually exposes a weakness of twitter in that its good for big events, its great for celebrities. But daytoday they dont have the growth metrics that are going to give them the answer to facebook whatsapp, for example. So, yes, ellen is on this Big Broadcast and says, hey, everybody retweet this and people retweet it. I think that shows perhaps the power of broadcast television more than the power of twitter. Im not sure that twitter grew a lot in users who were going to stick with twitter based on that photo. Lets put numbers in perspective, the most retweeted picture in history shattering all records, how many people watch the oscars . 50 million . These numbers are tiny compared to television. And this is what twitters fighting is the growth just isnt there in the core business. If youre not going to retweet this photo, what are you going to retweet . Its got everybody. When they come on tv and ask you to retweet, right. What would you do for twitter growth . I think they have to keep working on the product. Right now its very much focused on tech media elite, people are obsessed with news and following celebrities. Thats a nice chunk of the market. And twitter is worth a heck of a lot of money, theres no question. But they have not broken into the mass market for news and information. Then what of the promole motional value for samsung . She was using a Samsung Galaxy to take a picture of herself looking at the audience right before we saw a commercial for samsung devices. You cant deny Product Placement there, but do you think samsung will see windfall from that Product Placement . I think in general samsungs marketing has been tremendously effective. I mean, there are two companies that are making money in the mobile business, apple and samsung. And samsung has very good products. And they really put the marketing behind it, which apple actually isnt as aggressive about. Its definitely helped them some. I will say though its not the most amazing photo ever. I mean, i dont know that you see this photo taken with the Samsung Galaxy and say, wow, i could never do that with my motorola phone or with my iphone. Its a photo. And samsungs name was all over it. Samsungs name has been all over everything. And the phone that they were touting isnt out yet. Well have to see what happens in the next few weeks between the competitors to see if this is really going to get and for those wondering did twitter win the social media culture wars last night. Heres a brief bit of sound from Ellen Degeneres at the oscars. So this is true, we just crashed twitter. We got an email from twitter and we crashed and broke twitter. We have made history. See, meryl, what we did, you and i . Its amazing. We really just made history. Its fantastic. Its back up again. So it has most retweets ever. And we are all winners tonight, thats what it means. Thats what i was trying to say early on. So we broke twitter. I guess you dont want memory of the fail whale coming back. Right. On the other hand its a nice bit of publicity. Its more attractive than the failed whale. Maybe they should put that up every time they have that picture, every time they have a technical problem, this is what it looks like. You can enjoy that. Although most of the failed whales hardly come from 2. 7 Million People retweeting that. No, no, its great. Now we can all remember this moment when twitter was broken by beautiful people. That can be the new whale. Thats what im saying. All right. Thanks, jon, for that. The one thing we should point out too is we saw a graphic earlier about where ellen was tweeting from. She alternated between android and iphone. If you take a look at that she was tweeting from her Samsung Galaxy on stage, but her iphone backstage. What does that flipflop say to you, henry . Weve seen this before. People using Different Things for themselves than they are publicly. Check and see what alicia keys is using now. Blackberry well, any publicity as they say is good publicity for all of these companies. But for now, henry, youll stick around. Jon, you will as well. Thanks for adding your value there. Still to come, jim o neil probably bestknown for developing the term bric for developing economies, but whats going on in one of those countries between russia and ukraine . Hell tell us in a few minutes. Return on investment wall isnt a street. Isnt the only return im looking forward to. For some, every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. The events over the weekend gave an indication as to how we would trade today and in fact we are down 178 on the dow. Theres the heat map. Only one component in the green with a lot of news regarding ukraine still on the way. Still havent had a positive first day to a trading month since november. So certainly traders are watching that today. But keep an eye out on the roads as well. Apple just got its drivers license. The tech giant is unveiling a new system called car play, which brings the iphone experience right to your dashboard. Josh lipton is live in sunnyvale, california, to tell us exactly how it works. Josh. Yeah, kayla, apple wants you using its operating system at work, at home and even now while youre driving. Apple unveiling car play, which is a new way to use your iphone in your car. You get in your car, plug in the 5s, 5c or 5 and use onboard display to make calls, access apps or messages even with your voice or touch. Apples v. P. Of iphone tells me car play is intended to be smart, safe and fun. Weve taken the legendary ease of use that people expect from apple and from the iphone and translated that to the car. Again, starting with the idea that things should be as simple to use as your voice, but also then integrating and with the cars builtin controls in a way thats intuitive, its simple, its fun. And that makes it of course safer. Apple is teaming up with mercedes, which is aiming to introduce car play in its cclass vehicles by end of this year. Mercedes tells me they chose to go with apple because the two Companies Share similar demographics. And many mercedes owners already use iphones and apple products. Analysts say car makers could charge up to 1,000 for car play. Besides mercedes apple also partnering with a lot of other Car Companies including ferrari, volvo and down the road bmw, ford, gm and many others. Other tech companies, theyre working hard to introduce their technologies into your cars as well. Google, for instance, partnering with audi, gm, honda and hyundai to bring its android platform to cars this year. Android saying the battle for your car is just starting. They expect it to intensify from here. But apple trying to get out ahead with this news today. Guys, back to you. Josh, thank you so much for that. Jon coming off of the meeting last week, what does this all mean . I think its important to note this is your car kind of acting like an accessory to your iphone. Its not as if theyre putting ios directly installing it into the car. It will be interesting to see how far they can extend this. Can they power the video screens in your backseat with your phone too . That would keep the kids occupied. That would be nice. I dont know. You just described heaven on earth is what you just did. Ill stop there. But you can see lots of nice possibilities. But its not cheap. I mean 1,000, who can afford that . You already have a screen. You take your iphone in your car, youve already got it, use siri, everything else, connected cars is a huge opportunity, but this for apple is a small, small thing. All right. We want to update you on an earlier story. Sources close to facebook coo Sheryl Sandberg say the daily mail report she would make a senate bid in 2016 are 100 untrue. Something, henry, you had said at the top of the hour. Jon, well go with that for now, right . Im leaning in as far as i can go, so at least it seems like shes sticking with her current we dont want her falling over. Meanwhile, up next the man who coined the term bric weighs in on russia, ukraine and the u. S. Economy. Former Goldman Sachs chairman of Asset Management jim oneil will be here in just a short moment. And the bells are about to sound across europe. Just a few moments left in their day. Details right after this short break. Ting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. From td ameritrade. Humans even when we cross our ts and dot our is, we still run into problems. Thats why Liberty Mutual insurance offers accident forgiveness with our auto policies. If you qualify, your rates wont go up due to your first accident. Because making mistakes is only human, and so are we. We also offer new car replacement, so if you total your new car, we give you the money for a new one. Call Liberty Mutual insurance at. And ask us all about our auto features, like guaranteed repairs, where if you get into an accident and use one of our certified repair shops, your repairs are guaranteed for life. So call. To talk with an Insurance Expert about everything that comes standard with our base auto policy. And if you switch, you could save up to 423. Liberty mutual insurance. Responsibility. Whats your policy . Welcome back. Were just a minute away from the close of the european markets. We want to bring in simon hobbs. A lot of red today. This is the reaction you see in the markets to europes most dangerous crisis since the fall of the berlin wall. The selling is having 97 of top stocks in negative territory today. Youll see a different view from european politicians who are much more softly, softly, much more going for diplomatic solution. One of the major reasons for that is this is the ukraine, is that so much of russian so much of the imports, 40 of all gas and oil imports come from russia through the pipelines in ukraine. This is an area putin is nervous about at the moment. One of the Major Concerns they have is not just the businesses in russia but that the financial conditions can worsen in russia. The ukraine owes about 30 billion to the russian banks. What happens if that isnt paid . What happens within russia . Let me show you some of the big banks that have fallen around europe today. As i say its a mass selloff that youve seen or a mass markdown. There is a contagion risk for markets. Things could get much worse in russia itself. Trying to sell a banking subsidiary in the ukraine which is why its down. And then lets look at those businesses that have invested heavily in russia. What happens if there are sanctions and putin reacts to those sanctions with real assets . You know, russia has a history of using the courts to misappropriate foreign assets. Could they do it for example on these others . Guys, can we change this board . I want to show whos directly invested in russia. You might not know the names, beer, retail, this is generic drugs, this is a big builder and this is a finnish tire maker. Look how those guys have fallen though it has to be said we have stabilized towards the end of the session. Back to you. Simon, thanks so much for that. Simon hobbs, obviously the single most important story facing Global Markets today. We have markets under pressure all around the world in large part because of whats happening in ukraine. We want to bring in jim oneil, former Goldman Sachs Asset Management famously coined the term brics. How are you doing . Sorry i cant be with you on video or any other way. Well, wed take you by morse code if had to especially on a morning like this. What would you take to break movement as simon was just describing . What happens right now . Well, im no geopolitical expert, but i cant see why this matters that much for the rest of the world despite how troubling it is. But i think the economic sanctions is probably the more likely. But the more i think about it i think one has to be objective and put my hat on if i were one of the decision makers, you want to be objective and not emotional. As is often the case with something coming out of the european region. So to react too emotionally to something theyve sort of created a bit themselves it would be dangerous. I think the germans given the economic sanctions are only going to really work if people want to do them if the countries would get hurt most stick to them. So obviously the germans have the closest trade relationship with the russians. And they import a lot of energy from them. So you want to make sure the germans on board or might be the ones to think through the smartest way to approach this. Jim, the threat from the west is to have russia pull out of the g8 or to force it out. What happens to the market and how is it to move like that and how likely is it . Well, to be honest with you, it might do the dysfunctionalty of the g8 a final favor by killing it. I mean, the g8s been a joke for the best part of a decade anyhow. Why is russia the only bric country in the g8 . Over a decade ago we thought theyd become exactly like the following year. And so its a bit of an imbalancement anyhow. What i would and im in the process of writing a piece im going to publish on this, in an open minded bold policy thinking world what i would look to see is this is the beginning of a move to much smarter and faster changing representative global government. So why not get rid of the g8 and shift the g7 into something which is more representative and in particular having china involved. The g8 is a bit of a joke anyhow in my opinion. Doesnt really serve any use or purpose in this modern complex world. But all of this mess demonstrates we change the world economically, but we have hopeless governments. Jim, Henry Blodget, how is the market likely to react over the next few weeks . What news will come out . Will ultimately the market get used to this . Do we continue to freak out about it . Whats likely to happen . Well, henry, you know, you guys know as well as i do once you start to see things moving in the speed were seeing today, they hardly stay stable. So i dont know whether weve seen the absolute worst of the equity reaction just today, but i would think things are going to get worse or better, thats the first obvious statement. Second one is i think it depends on i mean, if there were some undesirable military developments involving outright hostilities between the ukraine and russia in the shortterm, i think that would make things a lot worse and cause equity markets to decline further. What i would which of course we cant rule out. What i would hope personally to see as i said at the start of this discussion is that the germans lead some sensible and wellthought out economic response which at least western allies could stick with to try and make sure russia realize that theres a cost to these kind of things. I quickly ask were starting from a weak position because russians have only got in this to some degree because they lent ukraine all this money because we in the west didnt want to give them any money about five, six weeks ago. So, you know, but i think its going to remain messy. But i think we have to look at the economic versus the military. If i saw germany taking the lead on an economic approach, that would give me a little bit more comfort because theyre the ones are likely to be the most logical because they have the most to lose. Which is why its disturbing to get reports that merkel says putins living in another world. But thats a discussion for down the road. Jim, last question, x ukraine, absent everything thats happening there, your general sense on europe coming back, the debate on inflation or lack of inflation, how are you feeling . Well, you know, indicators are looking by europes poor standards okay. But we have a very fragile situation without this disturbance. And of course the inflation is not shifting into outright deflation, its low on the japanese pile as much as big event in europe about all this mess. We need to see germany being prepared to upset a bit higher inflation to itself to stop putting this perpetual downward pressure on all the others. So its a very sort of unstable state of affairs even without this ukrainianrussia mess. That said, i think the parts of the peripheries that have gone through the crush like spain, portugal and island, i think these guys are doing better than people give them credit for. But we need germany to think outside of its standard paralysis on more traditional economic matters as well as issues related to this ukraine mess. Yeah, so much rides on what they want to have or see done. Jim, thank you for your time. Im glad we made it happen even on the phone. Well talk to you soon. Thanks. Speak to you soon. Jim oneill. As tensions rise between russia and eukraine, secretary of stat john kerry is on his way to kiev. Our john harwood is in washington with more on that. Good morning, carl. I think part is john kerry showing his presence and the presence of the United States in a very difficult time for this new government. Hes arriving at the same time a team of imf economists are coming to begin to take stock of what sort of aid might flow to the new government of the ukraine. John kerry has talked about the United States loan guarantees in addition to whatever the imf ultimately comes up with. But, you know, theres not a whole lot of levers that the United States can pull. There is talk, as you know, about suspending the preparations for g8 and perhaps kicking russia out of the g8. I think our european allies want to go very slow with any steps like that. And theres a limit to the amount of leverage we actually have. Theres sanctions against russia, perhaps trade and technology and Energy Exports are one option. But there arent a lot of great options. And we dont have all that much leverage. So part of this is about rhetoric and presence and trying to lend the United States the United States lending a stabilizing force to ukraine at a time where russia holds most of the military cards. All right. John, well see what happens when he makes his travel to kiev. Thanks for that, john harwood in washington today. Switching gears, still ahead, the star of pawn stars, Rick Harrison, of course deals directly with American Consumers every day. Well find out what he has to say about spending and the state of the economy. Dows down 185. Were back in a minute. What can your fidelity green line do for you . Just take a closer look. It works how you want to work on your own. Or with a Fidelity Investment professional, helping you find new ways to plan for retirement and save on taxes where you can so you can invest in the life that you want today. Tap into the full power of your fidelity green line. Call or come in today for a free oneonone review. Sunny or bubbly . Cozy or cool . Meow or woof . Wheels or wheeeels . Everything exactly the way you want it. Until boom, its bedtime. Your mattress isnt bliss its a battleground of thwarted desire. Enter the allnew sleep number classic series. Designed to let couples sleep together in individualized comfort. Starting at just 699. 99 for a queen mattress. Hes the softy his sleep number setting is 35. Youre the rock your setting is 60. That works. Hes the night owl. His sides up while youre in dreamland. Youre the early bird. Up and at em. No problem, because youre in it together. Keeping the love alive. And by the way snoring . Sleep numbers even got an adjustment for that. Crazy . Only if sleeping peacefully with your soulmate is crazy. Find your sleep number setting only at one of our 425 stores nationwide. You can afford a sleep number bed, you cant afford another mediocre nights sleep. Know better sleep with sleep number. Predibut, manufacturings a prettin the United States do. Means advanced technology. We learned that Technology Allows us to be craft oriented. No ones losing their job. Theres no beer robot that has suddenly chased them out. The technology is actually creating new jobs. Siemens designed and built the right tools and resources to get the job done. Coming up at the top of the hour, were hunting for value with ariels john hunter. Hes going to reveal three new stocks to buy right now. And the oscar goes to twitter and samsung. What hollywoods big night means for them and their competitors. Plus, how worried should you be about the unrest in ukraine . Our experts answer that question and many more at the top of the hour. Carl, see you in about 20 minutes or so. Sounds good, scott, thanks. Lets get over to the cme group and check in with Rick Santelli, hey, rick. Hi, carl. We have three areas id like to cover. Were going to be moving quickly. First fell on the data this morning. Personal income and spending for january came out pretty good, all things considered. One thing that was a fly in the ointment that caught my eye is december on the income side unrevised at a goose egg, unchanged. What was originally released up. 4 on spending for december only moved to up. 1. Not good news. We need to Pay Attention to that. Construction spending came out late if you recall because of all the weather issues with regard to government offices, but it did eventually come out. And the january read was up 110. But what i found fascinating is like the income and spending we had a revision to december. Originally released at only up. 1, now standing at up 1. 5. That really does say there are weather issues, but not necessarily hugely impacting a variety of markets. We all know in housing there are different pockets of the country that were doing very well. Its an important area. We have to handicap to see if the markets have it right. Last but not least, whats going on in the ukraine gas problem, natural gas, the politics of everything, theres been a lot of emphasis on the natural gas part. And it just reminds me i remember a story i read on the 17th of january this year from reuters, European Countries anxious to buy european gas. An older story in New York Times from 2011 that talked about all the problems liquefy natural gas, Building Infrastructure and department of energy doesnt seem to be behind this. Cant even build a Keystone Pipeline. But this is an issue we in the u. S. Should think about. And we should further advance the technologies of fracking because one of the big hammers that russia has over not only the ukraine and europe in general is nat gas. And i think this is an important issue. Now, sam zoe on the channel friday and he said something i found fascinating, throw it up on the screen. Ill read it quickly. Theres a guy, jim grant, who wrote an article about the shot clock in basketball. I think zero Interest Rates are a lot like not having the shot clock in basketball. And this morning we all know Warren Buffetts Everybody Loves warren. And today with becky quick he didnt really agree with that. He said he invested a record 11 billion in Berkshire Hathaway and likes investing in train cars. And the other thing he said freights were 15 i might not be investing. Thats the point though, warren. First of all, trains and planes and automobiles, if youre in ownership at zero Interest Rates and we have this energy craze, i can understand the investing, but its if business thought rates were going to 15. Those that are sitting on the fence would invest. And i think that was the point of mr. Sam zell. Carl, back to you. Thanks, Rick Santelli. Take a look at markets right now. We are now officially down 200 points on the dow for all of the major averages, dow, s p and nasdaq looking at the worst day in exactly one month since february 3rd as we are back now to 1839 below some key critical levels. And gold another story today. Up 32. 13. 53 is a long cry from 1200. We know golds up more than 10 this year. Long before banks, atms and bitcoin there were pawnshops. After 28 years running the gold and silver pawnshop in las vegas, Rick Harrison, star of the History Channel reality series pawn stars is an expert. He joins us this morning in an exclusive from las vegas. Rick, great to have you back. Good morning. Thanks for having me. I want to get your take on how consumers are feeling, but first i got to ask you about gold. Are we in the middle of something, a new leg up do you think . I personally believe its going to be probably around 1400, thats where its going to top out for the rest of the year. After that who knows, but thats what im more or less betting on. Whats driving it, do you think . Weve had you on before, we talked about the fed, you had some choice comments for bernanke and company. Now we have yellen, wheres your head right now . People just look at gold as like its a store of wealth, its a great insurance pollty. Thats what i always tell people. Dont put the bank on it, its a nice insurance policy, thats where you should put some of your money. Rick, pawnshops have always been a source of credit from those who cant get it from your traditional sources of it, what types of credit are consumers asking for right now . Payday loans . What else are they saying . Well, i dont do the payday lo loans at all. It seems like i deal with a lot of construction workers, i deal with the whole spectrum of society. And the thing is no one can get no overtime, no one can get you know, everyones more or less stuck at where theyre at. And its just hard making ends meet. I mean, you take construction guys, a lot of different industries, every once in a while theres that overtime that gets them over the hump. None of thats happening at the moment. Rick, Henry Blodget, have you seen a change in the last few years just in terms of a trend of whats going on now . More credit, more pawning . Anything changing in the economy . No, thats the problem. Its just staying so flat. Theres no new jobs. Theres no, you know, businesses are unsure. Theyre not investing a lot. I own multiple companies, and i had a meeting the other day and we still dont understand the health care bill. So those are some of the big problems at the moment. Its just understanding not knowing whats going to happen down the road with the government regulations and everything else. Thats what i think the big stall is right now. Yeah. I was talking to a restaurant ceo whos trying to put in order all of his franchisees concerns. You mentioned obamacare, but theres also the brewing minimum wage argument, other things people have to worry about. Where would you Place Health Care on the list of concerns . For a Business Owner its number one or two at the moment. I just dont i mean, i was talking to a u. S. Senator a few weeks ago and he basically told me if anyone tells you they know all the rules at the moment, theyre lying. Because theres new regulations that pop up every week. How about bitcoin . Bitcoin . Yeah. A big week last week yeah, was that a lehmanlike moment for you . Okay. Im just saying dutch tulips as far as the bitcoin goes. Its a currency someone came up with that its a fiat currency like everything else, but when you take the dollar and other or other fiat currencies, the one thing it has going for it is thats the only other thing the government accepts in taxes. The bitcoin is, like i said, tulips. What would you need, rick, to legitimize bitcoin to make a Business Owner like yourself comfortable with accepting it . Warren buffett said its not a currency. He doesnt know what to call it, doesnt think it will be around in ten years. How comfortable would you have to be to be comfortable . Due to the fact its a currency not backed by the government, the only thing that would make me comfortable is like an etf or something backed in some sort of commodity. Thats the problem. Its not backed by anything. You dont physically own it. And, like i said, i dont believe this will be around five years from now. And one of the points that bitcoin fanatics make is its so much better for merchants because theyre much lower fees, if you take bitcoin versus credit cards. Does that argument hold any water with you . No. And much of young guys ive talked to are all big on it. And i try to get them to the whole meat and potatoes of it and all they can tell me is its cool. Its so easy to do a transaction. But im just theres nothing real there. Okay. Either a government accepts it for taxes or theres a commodity or some sort of asset behind it. I would never take it in my store, lets put it that way. Rick, you know as well as we do the champions argued that is the beauty of it, right . It takes out the middleman, it takes out the government. Its libertarianism in its purest form. Thats not good enough . No. I mean because theres nothing there. And whats to stop the people who make bitcoins from making more bitcoins . I mean, if you made more bitcoins and threw them into the mix, theres no way to really tell if theyre counterfeit. Its like i said, theres nothing backing it and no government will accept it as taxes. Yeah. Its a bubble. Yeah. Were going to have to wait and see how it all flushes out. Rick, its great to see you. Please come back soon. Thanks for having me, guys. Rick harrison of pawn stars joining us from las vegas. We want to send it to dom for a quick market flash. Airline stocks taking a quick hit this morning, 2,300 flights have been canceled as the latest storm hits the east coast. On sunday 2,000 flights were canceled in the midwest. Its been a tough winter for the airlines and air travelers. Since december 1st more than 87,000 flights have been canceled, couple that with rising fuel prices today and you get that downside move in those major airlines. Kayla, back over to you. Thanks for that, dom. Up next is the situation in ukraine escalates, the president on the council of Foreign Relations joins us with his insight. You wont want to miss that when we come back. Checking in on the markets, right now we have the dow near session lows down 201 points, the s p is also down 19. Nasdaq holding solid into the red as well. Of course, all markets are watching the situation in ukraine as it has escalated. We want to bring in richard hos, thank you for joining us. Great to be with you. The first question is the obvious one, which is this is a standoff in its clearest definition. What is the most likely next move . So much really at this point depends upon mr. Putin and the russians. What none of us knows is whether what hes done in crimea lends simply to give him a trade so he can maybe get some influence back in the rest of ukraine. We dont know if hes decided that game is lost. So this is a way of compensating and hes going to hold onto this. Or even worse, we dont know if this is something of a steppingstone from which hes going to try to expand his control over big parts of the rest of the country. So we dont know his agenda. And what were trying to do is influence his choices at this point. What signals would you be watching for to try and determine what that agenda for president putin looks like . Well, one is if were offering, for example, russian participation in any sort of economic package that may be put forward to ukraine along with say protections for russian citizens in crimea, whether thats Something Like that they show any interest or its dismissed. Were going to be looking at whether they continue to do a military buildup. Well look at what theyre saying in terms of what they almost seem to be looking for provocation. Odds are at some point some individuals are going to take some shots at Russian Troops. And the question is whether theyre going to use that, if you will, as an excuse to expand what it is theyre doing. Richard, you know, even some western observers have argued that the way the new government came to be in the past couple weeks cuts some corners constitutionally. Does putin have an argument on that front . Well, what happened was you had an elected government that was essentially forced from power. Thats simply a fact of life, but what you have is also dysfunctional ukrainian politics. This is nothing new. And none of that ought to have provided a pretext for what mr. Putin did. What the russians did was was extralegal. The russianspeaking people of crimea were in danger, there were all sorts of ways consistent with International Law to protect them, but mr. Putin acted unilaterally. He violated any number of international undertakings and obligations. I would not put great weight on their position. All the while, richard, ukraine is deep in a financial crisis. Our market here is down 216 points today as some of this fallout continues. It needs that economic package. Its on the brink of bankruptcy. Whats the likelihood that it can reach one of those very key packages without russian participation . Well, the principle it could, but you make a good point. You have a degree of political disarray in kiev. So what im beginning to think about is its going to be very hard to negotiate a large longterm economic package with an uncertain Political Leadership in kiev. So what we might need to think about is tranching it. Maybe have a couple of billion dollars go there essentially unconditionally just to keep things glued together. And then to have a larger package that would be negotiated over the course of the next couple of weeks or months where conceivably russia would participate if they so chose. But i think were going to have to do this in phases given the need on one hand to russian some emergency money, but on the other hand the political confusion in kiev. Richard, thank you so much. Obviously a long day ahead still. We appreciate your time as always. Richard haass joining us on the council of Foreign Relations. Thanks to Henry Blodget here at post nine. I didnt have as much time as i wanted, henry, to talk about icahn and andreessen, but in a word how has carl been effecting the valley . I think hes been unfair to marc andreessen, making justification to paypal, i think thats good. Inconsistency and the latest one today. Scott wapner will have more on that on the halftime coming up right about now, right, scott . We are indeed, carl. Thanks so much. Noticing mashlgts are at the lows of the day. Real flight to safety today, carl. You see wlast going on in gold and yields are dropping as we speak now under 26 on the tenyear. Yeah. And hearing from Rick Harrison from pawn stars made it seem like its going to go higher. Yeah. Have a great rest of the day. Welcome to halftime show. Heres what were following, putin and your portfolio. What the aggression in ukraine really means in the markets. Were covering it this hour. And Ariel Investments return. And the oscar goes to h