Can Putin Do as He Pleases in Ukraine?

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March 3 (Bloomberg) –- Bloomberg’s Ryan Chilcote reports on the standoff in Ukraine. He speaks via phone with Erik Schatzker on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)

Live from bloomberg world headquarters in new york, this is "market makers" this error chapter in stephanie role.

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Welcome to "market makers" and i am stephanie role.

What a contrast to what is going on here.

A crisis developing in eastern europe.

That is where we will start the newsfeed.

Market fallout from the developing crisis and the ukraine.

U.s. stocks down almost of percent today if you measure them by the dow.

S&p 500 down a little bit less.

Most markets in the red.

Particularly in eastern europe.

This was very concentrated.

The russian benchmark down around 11%. the biggest owner of casinos is selling them to an affiliate.

Caesar's will sell three in vegas and another one in orleans.

Caesar's trying to restructure more than 24 billion dollars of debt.

American express trying to bodman -- broaden the customer base by no fee customer -- credit card.

The new card will carry no interest rate for the first 15 months.

13-22% afterwards.

U.s. and european officials making it clear, no one is going to war over the ukraine.

Far less in crime era -- crime era.

-- crime maa.

Michael mckee looking at these dwindling set of options.

You with ink russian defense economy on exports quite economy.

27% of gdp its exports.

And also a big eel for the eu.

The biggest trading partners on both sides.

The list that who russia exports and imports from, the eu.

It is at the top, way ahead of anyone else.

Anything they do to russia, the russians can do to them.

That is why you see relook ends to really commit to something like this.

The united states plays almost no role, no trade or russian relations that matter.

The other issue, that exports of gas.

They now have a northern pipeline.

They can go around if they cut that off.

The europeans do not want to lose them.

A longer-term issue because they have a mild winter they have very mild stocks.

If this were to go on for a long time, it would be a problem for europe and russia.

We solve the benchmark index go down.

To what degree did those developments exact a price on russia?

They are exacting a price.

This hurts the banks.

They could be in big trouble.

The russian central bank raised interest rates seven percent to try to contain the fallout.

The problem is that we do not know if vladimir putin cares.

This country went bankrupt in 1998 and defaulted on the debt.

It is also working the other ways -- the other way because anyone in eastern europe also seized shares go down.

A lot of banks in france and germany and holland saying share price losses because they have exposure.

And no leverage.

What would motivate the west and europe to take action against russia?

The problem is, it will take more or have just economic sanctions.

They will have to put politics into it.

They need russia.

It is a key vote for dealing with problems like our ron -- iran and syria.

The only thing that could really influence them is if it starts to spread to the other former soviet republics like belorussia or georgia or romania.

Then you might see more action.

At this point most analysts say probably not going to happen.

Stay with us.

Russia's military intervention in the ukraine also has potential to impact u.s. companies from derailing energy explorations.

I want to bring in alex deal.

Digging into the numbers.

What companies could get hurt?

Mass of companies that have a presence in russia, but it is small.


Russia is $11 billion market to the u.s., 2 billion and aircraft sales.

One billion in cars.

The second way to look at it is the u.s. companies are operating locally and russia.

There is risk.

Beer companies, chocolate companies and snack companies.

Overall the packaged food market is small, two hundred billion dollars.

That grows three percent per year come at 10% of the world total.

Not a lot of high income per capita.

Pepsi quite at risk.

19% of the salty snack sales.

They are the largest food and beverage producer in russia.

40 production units.

Do you think this is affecting whether or not russians by soda chip and smokes?

Also the ukraine as well.

Speaking to an analyst who said it really depends on the consumer.

Are they going to go out to eat?

We do not know the answer.

The real risk is sanctions.

If the state department imposes sanctions on the been some of the american companies could get hurt.

You could see a reverse.

They could put them on american commodities.

Lex will they be able to operate, very different of the trade sanctions that you cannot import your product.

A lot of these companies source locally.

Not like they will run out of before commodities.

Also, mcdonald's, 413 stores in russia.

35,000 locations worldwide.

Europe is a perl best huge revenue driver for them.

Talking u.k., germany, france.

No one seems very concerned about the comp trees exposure -- countries exposure.

Not to cut them off, because he does not need civil unrest to go with the other problems he is causing.

He will cause enough problems with the economy as it is.

And interest rates going up.

Direct foreign investment.

Will we see chevron and bp continue to invest money or will the scare them off?

They are ready have plenty of reasons to be scared off.

He said most of the time they're not interested to begin with.

They will not be scared by something that might have a couple months impact.

Thank you both for giving us an update.

Alex deal in michael mckee.

Hitting an update from key of -- getting an update from kiev right now.

Ryan chilcote there right now.

We had an update last hour telling us what he has been hearing.

I know you're been on the ground doing reporting.

Effectively crimea, the peninsula and the south of the country is under russian control.

That is the bottom line.

There are about 6000 troops right now cooperating with the militia.

They have surrounded the carini and -- up peninsula basis.

Yesterday the russian president got permission from the parliament to deploy forces to the ukraine.

However, they appeared before it was received, leading some to wonder if the real appointment is yet to come?

We just do not know.

I spoke to the ukrainian prime minister a short time ago.

He said russians are refusing bilateral negotiations and they think this is a longtime problem.

They are mobilizing their military.

I do not think they have any intention of really challenging the russian army in crimea.

No shots have been fired yet.

Obviously, we have a standoff.

From vladimir putin's perspective, if the west cannot respond with economic sanctions of subs since i'm a can he more or less do whatever he wants yangon s. i think there may be some truth to that.

The only thing he might be willing to discuss with officials is the return of the ousted president back into the office of the presidency here in ukraine.

To finish out his term until december and put the original deal.

He was going to stay around until december and that is when they would have early elections.

It was only after he fled basically that same day that the opposition decided they would take power now and have the elections in may.

Suggested that if the powers that be now in ukraine were prepared to allow them to come back, then there might be something to talk about.

Absolutely no indication whatsoever they would be willing to do that.

I think you are right, he thinks what is there to talk about?

Clearly no one sees it away i do.

Lex what is the expectation that russia will maintain a semipermanent military presence even if it does not go ahead and fully annex a part of the ukraine or try to negotiate some kind of dividing line in the country where the rest of ukraine becomes the west and the east the comes another russian state.

These are some of the ideas being tossed around.

I have no idea which are credible and which are not.

I do not know the answer to that.

The idea that you would have part of the ukraine not recognized by the federal government and under control -- it appears as though we have lost ryan chilcote.

We managed to get area important information out of him.

Ryan chilcote on the phone with us.

Just to bring you up to speed.

Ukraine has formally asked the united nations security council for a meeting today to discuss the deterioration of the situation in the ukraine.

That news broke moments ago.

The situation only growing more serious.

More to cover when we return after the commercial break.

Coming up, pinterest.

Certainly was not an overnight sensation.

An exclusive interview.

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


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