Obama, Merkel Find Common Ground Against Putin

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May 2 (Bloomberg) -- On today’s “The Roundup,” Trish Regan, Phil Mattingly, Peter Cook and Al Hunt wrap up the day’s top market stories on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Story it --a d.c. story.

The president and angela merkel.

It seems like the enemy of my enemy is my friends.

With the revelation about the nsa spying on her cell phone.

It seems that they have put that behind them here.

We talk about the sanctions and this trigger date of may 25. are we really, really going to see merkel be willing to do what it takes to influence vladimir putin?

What do you think?

Al?

that is why this meeting is important.

The brits r berkley willing to be tough.

And america has said we have not been as tough as we would like because we have to do it in concert with the europeans.

Merkel is gay.

If they join, we can take the next -- merkel is key.

If they join, we can take the next step.

William pomerance was on earlier saying that putin does not care about the economic consequences.

It is much more political, much more strategic in terms of adding these territories.

Ultimately what are we accomplishing?

We might see more of the germans got on board with really strong sectoral sanctions.

Even the energy sector, which the president downplayed today.

That would cause real pain in russia.

Would it be enough to move vladimir putin?

Who knows.

-- who knows?

But they are not there yet.

The interesting thing to watch with the sectoral sanctions, it is clear that they do not want to move to the next level.

It is very clear they are not going to have a choice.

Merkel is getting this hard from the business lobby at home.

For her to come and maintained with the president, very important for the time being, but very important for them both to acknowledge -- it is going to be hard and what sectoral sanctions will look like is not what the u.s. would prefer them to look like.

And trish, sanctions never, never work short term.

Whether it is south africa years ago or iran more recently, it takes a while.

As john mccain said, this is a gas station pretending to be a country.

They may go into a recession in even deeper.

People are talking about them being in recession right now.

A lot of economists believe they are in fact there.

If your president does not care -- i guess at some point the people care.

We are not going to send troops in there.

Sanctions are the toughest steak they can't put out there and what else do they have in the toolbox beyond that?

What is the thinking?

Is he going to go for more here?

Does he just want eastern ukraine?

Does this become an issue where he is grabbing more territory?

The thing that is unsettling from the u.s. side is they have no idea and one of the people they relay on -- rely on is angela merkel and her relationship with vladimir putin and she has acknowledged she does not know where he is going.

Investors, if they are looking for yield, they are looking at russia to get in.

How do you go to a country like that where you do not know what the leader wants?

Nobody knows what his endgame is right now.

The prime minister of latvia, in the neighborhood, she took over the country 100 days ago.

She has u.s. paratroopers on the ground in her country, and she came to speak to the vice president to ask for a permanent u.s. military presence in latvia.

That is where things are there.

What you think the chinese think of putin and the russians right now, and he said, they think that they are totally irrational.

That could cause damage.

You have the next story, peter.

I do.

Let me tell you what it is.

Zip cars?

I heard about this.

I do not have a zip car.

I have a real car.

But you can take a zip car one way down to d.c. and leave it there, park it.

Is this a successful business question mark i don't know.

I don't know.

These things could be a legally parks.

Thank you, thank you, al.

Someone else is making news right now.

Kevin spacey.

Did you see this?

"call of duty"? the new trailer for the next installment of the popular video game.

The "house of cards" fans may recognize a sly reference to his character's love of videogames.

Kevin spacey in "call of duty." is there anywhere he is not right now?

He is basically the dean of washington.

No offense, al.

You are always the dean of washington.

Whether it is netflix or -- not because he needed a career resurgence, but he is the guy.

My boys will now know who kevin spacey is.

He could use another header.

A big weekend this weekend, right?

That is right.

The washington correspondents dinner.

The nerd prom.

Affectionately known as the nerd prom.

A lot of events going on, tonight as well.

You have tech firms like yahoo!, google, tumblr.

There is the google netflix party with the house -- with the cast of "house of cards" making an appearance.

And google and youtube are offering a blowout and manicures -- really?

I did not get signed up for one of those.

But this is sort of a fun time where you have washington and hollywood coming together with the media, and it is sort of -- a very unique event in that sense.

Go ahead.

I'm going to boston.

I heard you are not a fan of this.

I can't wait.

It used to be a reasonably semiserious thing.

Now it is something that you do with while house -- white house correspondents.

If they want to have a big party weekend, that's fine.

But do not do it under the auspices of the white house correspondents.

A circus?

It is a circus.

There has been a backlash.

Whether it gets scaled down this time around.

From the blowout sand manicures, it does not sound -- really?

I mean, 20 years ago, different kind of thing?

It was.

It was 20 years ago.

I do not mind hollywood coming to washington, having parties, seeing kevin spacey.

That is great.

But to pretend it is part of the white house correspondents association is kind of silly.

And boston is going to be great this weekend.

I bet.

The other thing with those parties, they all have a tech side.

This is a strategy.

Without question, this is a strategy.

You sponsor these parties because you want influential people to attend.

Tech firms have really moved in on washington in the last couple of years.

This is part of that game.

I got one invitation that said i was supposed to show up in start up chic.

You look great in start up chic.

What is that?

But they are tapping into washington, like silicon valley.

Silicon valley knows that washington is key.

Their issues get bigger.

Their parties get bigger.

That is it.

It is true.

Hence the bigger and bigger events every year.

Speaking of parties, monday is cinco de mayo.

And you may want to think twice about ordering a margarita.

That is because the cost of lives has more than tripled, squeezing the margins of restaurants and bars.

Lime prices surging after growers and together to set prices after disease-a ravaged crops.

I'm not sure why we are talking about this.

The lime cartel.

What does washington have to do with the lime cartel.

-- cartel?

A lot of people in washington drink margaritas.

It will be drinking them tonight.

[laughter] back to the serious stuff that is going on.

Angela merkel joining forces with president obama.

Is this what -- would you say, the number one issue right now, what to do about vladimir putin, what to do about ukraine?

Let's see how it evolves.

It is not anywhere near the most important foreign-policy issue long-term, but it is certainly the most important crisis we face right now.

There is no other place that rivals it.

It depends on how it plays out.

It depends how long putin can be as bad as he has been.

I am more worried for my grandchildren about our relations with china and the middle east.

But i certainly think for now it is a crisis.

The what does the electorate think, al?

They don't want to be involved.

A 11 years of war.

I'm sorry.

They don't want america to be engaged.

That may not be a good idea, but that is what america thinks.

And it is europe, too.

This was a time when the u.s. military was exiting out of europe.

We were driving down from the four brigades, and now we're talking about moving forces back in to europe?

This is a changing landscape.

We are not talking cold war, but this is not what president obama went to talk about at this stage of his second term.

And here we are.

I hope you get your manicure.

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

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