Putin vs. Obama: Is This a Cold War Rematch?

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March 3 (Bloomberg) –- Bloomberg’s Al Hunt discusses President Obama’s options in dealing with Russian President Putin’s aggression in Crimea. He speaks with Erik Schatzker and Stephanie Ruhle on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)

Live, from bloomberg headquarters in new york, this is "makrket makers" the air chapter in stephanie role.

Welcome back.

A lot of talk about retail.

The golden boy of retail.

I want to bring in christina a less cheap.

Everyone talks about mickey drexler and how bad he is.

-- how valuable he is.

Clearly more valuable since he is being eyed by a chinese retailer.

The private equity owns j crew.

They want to sell.

They want to take money off the table.

They want to go public.

Over the course of the discussions, a very interested party emerged.

Because they know they want to get out, they have decided to enter into formal talks.

Along way away from a deal.

It makes a lot of sense.

They want to expand.

Global impression.

They think j.crew can help them get there.

Makes a lot of sense.

When i see him as the golden boy, you cannot find someone.

Can he name his price?

What is really unique about this deal is when we have seen companies come to the u.s. to buy growth, they are normally willing to pay for it.

We have seen his son pay a huge premium for sprint.

In this case, we know the president of fast food retailing is quite disciplined when it comes to price.

At the end of the day tpg and leonard green say we can go to the public market.

The ipo market has been on a rampage.

We can get a $5 billion valuation.

Much of the strategy seems to be about expansion and the united states.

I do not know how many stores they have had across the country am a but there are at least two in new york city.

I am a fan.

As i am j.crew, which brings me to the question, to what degree is the expansion predicated on eating into j.crew and the business?

It is a different brand.

Someone was comparing recent ipo to j.crew.

They are completely different.

Owning j brands and theory.

These are higher and france.

-- higher end brands.

It is a different product.

J. crew is far preppy or.

I think j. crew cashmere fuzzes up just as bad.

Sound like a personal experience.

It is actually closer to cap -- gap.

You know they have been -- have banana republic.

J. crew has been that the aspirational level at this point.

They say kashmir is from italy.

Considered almost a style star more than anyone else out there.

Why would mickey ipo on his own?

That is what they are saying out there, the other side wants to go public.

What is really fascinating about this is a fast retailing ceo is a huge fan of mickey drexler.

If they can pay the price, how will you work with the japanese owner?

How will a personality like mickey drexler work with this guy?

The assumption is you would need to stay.

I think that it's kind of a basic western.

Is the expectation that leonard green would be prepared to sell the fast retailing, because when you sell you get your money back at once.

Maybe they would be prepared to take a discount compared to what the public arc of value could be just to exit fully.

The question is to what discounts?

Returning capital to investors have never been more important.

It takes a lot of time to exit the investment.

They may have another factor out there that could push them toward a private sale.

The price has to be right.

Giving it to investors so they can get it in the new fund.

Exactly.

Private equity buy and sell.

They always win at the carnival.

Christina alessi joining us with the latest on j. crew.

President obama warning russia not to violate the ukraine's sovereignty.

What can he do to back it up?

In a moment, we will ask al hunt.

? by now you present book -- probably no president obama is in a pickle when it comes to ukraine.

He can talk tough all he wants but taking action will not be easy.

Al hunt with us from washington.

Walk us through what is going on in president obama's mind.

How important is ukraine and how willing will he be to take action if he cannot get support from the eu, which is in a much more difficult position?

He needs help from the eu.

The action he can take is not putting troops in the ground.

It is to kick the russians out of the g-8 and impose very tough economic sanctions.

In the modern world we have learned sanctions can fight.

Exhibit a would be iran.

I think he has to do that.

In many respects there is a lot more say than the united states for the eu.

How important is it to show leadership for the president's? america versus russia, a great story going back to the cold war.

A sense of how far he is willing to go.

I think you have a much better idea of that and we do here.

I think the narrative gets twisted sometimes.

It is the united faith in europe ursus what putin is trying to do their.

We could use russian help, not that they will necessarily get it, but i could argue this is much worse for vladimir putin.

He could get himself into a real mess.

Remember afghanistan and america going into iraq.

We do not know how far he is going to go.

Russia is not an economic power.

If they have problems with supply and energy, this could really drive the country -- who is in control here?

Vladimir putin is the guy with his hand on the bowels that opens up the gas supply to europe.

If he decides to crank that shut, i am trying to understand the point that this could go very wrong for vladimir putin.

Isn't he going to be the one to force the europeans into a decision of weakness?

Who need the european monday?

The aligarh and europe are not vacationing in russia.

It is the aligarh in russia that have investments in vacation homes in europe.

If he cuts off the energy supply, where does russia get money?

Not a strong country economically.

I want to go in what lindsey graham said over the weekend and get a sense for you -- from you if it will evolve into politics.

Every time the president goes into -- onto national television and threatens vladimir programutin, everyone's eyes roll.

Lindsey graham has a point on syria.

What would senator graham do?

Does he want to put american troops there?

I think not.

Therefore i think the rhetoric is easy.

What you can do is harder.

It almost all evolves around the nomadic and economic actions.

Where do you think we stand here?

Is this for show?

Does he have any leverage?

What will we say five years from now?

Limited leverage.

The complication is that is a pro-european government such as it is.

A terribly inept government that is great chaos there.

What we first have to find out is how far vladimir putin will go.

Will he stop with crime ea or play out across ukraine?

A terrible situation.

And it is destabilizing.

I do not think this is a big win for vladimir putin.

Lex we love the analysis and fresh perspective.

You know what else we love?

That sweater.

I wore it just for you.

When we come back, talking about another superstar.

The pre-oscar buzz got it right.

A lot of the favorites one.

We will talk winners, losers and what is to come.

This is "market makers" on bloomberg tv.

We will be with -- joined by the hollywood reporter.

?

This text has been automatically generated. It may not be 100% accurate.

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