Rep. King: New Russia Sanctions Will Have an Impact

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April 28 (Bloomberg) -- The Obama administration today imposed sanctions on seven Russian officials and 17 companies linked to President Vladimir Putin’s inner circle over the crisis in Ukraine. U.S. Representative Peter King, chairman of the House Subcommittee on Counterterrorism and Intelligence speaks on Bloomberg Television’s “Bottom Line.” (Source: Bloomberg)

From bloomberg world headquarters in new york, i am mark crumpton.

This is "bottom line." new u.s. sanctions target vladimir putin's inner circle.

And did an nba owner make racially offensive comments?

To our viewers here in the united states and those of you joining us around the world, welcome.

We have full coverage of the stocks and stories making headlines today.

We interview tom bell -- the agricultural secretary.

We begin with new u.s. sanctions targeting russian officials.

What is the reaction?

So far we have the u.s. releasing its list of seven new individuals, most of them considered from these close to vladimir putin, and on the ee you side 15 names of individuals to a list of 55 . while the u.s. sanctions include some high profile people, and also the head of raw tech, the companies themselves were not sanctioned.

Some that we heard last week might be were not.

The markets rallied on this news in russia, and we saw the recovery to a six-week high.

We also saw some traders saying they felt this was sanctioned light, less than it.

Will any of this change president putin's behavior?

I do think this immediately will, and even administration officials who spoke to us this morning i knowledge data must.

-- acknowledged as much.

They're trying to get closer and closer to putin himself.

As much as president barack they are not targeting than personally, this is closing in on his inner circle.

The is nothing to be about ukraine only.

They are trying to signal the more he expands what he is doing of the more people it will get for him and russia's economy.

How might president clinton then retaliate -- putin then retaliate?

That is the wild card because russia can italian in serious ways.

We know about the dependence of europeans on russian gas and energy.

There are also precious metals and cyber warfare that they could do.

They are expected to match the u.s. moves and an equal level, and they could keep it coming up at for a couple of more years.

Thank you for joining us on the latest between the russia and the ukraine and the u.s. tom bill sachs book to my colleague about the long-overdue need for immigration reform.

The reality is we are not doing as much as we could in agriculture as -- because we simply do not have the hands to do so.

It will help to reduce the deficit, it will ensure social security, it is long overdue.

Our agriculture correspondent joins me now from washington.

Good secretary vilsack seem at all optimistic about the chances for legislation?

He was deathly -- definitely upbeat about the chances this year.

He sees it as a necessity, a coalition coalescing around this bill, and some of the forces that have been pushing against immigration reform, a lot of the tea party movement within the house of representatives might not be as strong as it was a year ago for this of reason that primary filing deadlines are hitting across the unit is dates.

A lot of tea party challengers are not materializing in the primaries.

With the farm bill passed to backing fabric of a what is the usda's focus rightnow?

One key part is a limitation of this farm bill.

It is a big piece of complex legislation, and people want to select with their program will be.

The other issue is looking broadly at the world economy.

Some investment opportunities they are trying to do in raleigh america -- were allrural america.

More broad-based prosperity across america.

What are some of the early signs that we're now seeing in this year's planting season?

If you take a look at bloomberg analyst, there will be report from the usda this afternoon, they expect the corn crop to be 21% planted today which is better than five percent a year ago.

That looked like a good bump for the colored crop -- corn crop.

Right now the thighs look to the good, we will always see how the weather revolves.

One area markets have been watching closely, it has been the situation in ukraine.

Did secretary vilsack have anything to say about that?

This goes back to what endure was talking about earlier -- we were talking about earlier.

The sanctions are not as tough as a lot of old respecting them to baby the same thing happened in the commodity markets.

We have got up four days in a row -- wheat has gone up four days in a row.

Bloomberg arboriculture grows but it joining us from washington.

Thank you.

The conference is a four-day event that rings people together were gets things done.

Erik schatzker and stephanie ruhle are joined by karen steffi -- terence duffy.

Thank you very much.

Kerry duffy is here with us today -- terry duffy is here with us today.

You have said that you are offended by the notion that the equity market is ranked.

A notion that is propagated by michael lewis.

Why do you say offended?

When you have a market that is up 500% in 25 years and is hard to call that rig.

You talk about a market that has given people the opportunity to create wealth and also to create jobs through the marketplace to raise capital.

Rails could you do that in the world but in america and the greatest financial system in the world?

I take offense to calling that rig when you see the superpower that we have become.

You have come out and said that in order to fix the market we need to fix the pool.

"bottom line what i -- what i said was that if he needed true transparency in pricing you needed the entire product traded in one location or only a couple of locations.

When you have 40% of the market that is not showing with value of the product isn't as hard to get credibility on the value of that price.

We operate in a vertical silo in the futures industry.

Everyone has to come to the cme group in and out.

You do not have fragmentation of the market.

And think it is very important.

When we have a small block trades.

90% of cme's is this -- business is done off exchange.

Some people would say that the dynamics of the derivatives market and the futures market are different than the cash equity market.

You know well why institutional investments trade on dark tools.

They feel if they show their hand in liquid equity markets they will get a lousy price.

For so many of these investors the point of entry ultimately determine how much money you make on the point of exit.

I understand that.

Should have the anonymity you want to have to do your trades.

At the same time, how do you know you would not get a better price if you put it all together, versus having a fragmented or -- the very same people would say, and i am playing devil's advocate, that under the national market system we have now it is not possible.

It will require a regulatory change to allow trains to happen in a fashion the gives somebody who is trying to exchange or at least by and large volume the prices of execution.

We look at the equity market and i'm not an expert so i do not want to pretend like i am i am interviewed as an futures, but when you look at the markets based -- market space, i look at these spreads that are being traded today.

You have to look at thsi is even in dark pools.

I will buy that but the cme is being accused of selling order in relation to high-frequency traders.

What do you make on that?

They are not being accused of that.

There's is a lawsuit out there that say we sell our market data like every other exchange, and it comes out at one price and people can determine how they want to receive it.

No different then in the old days on the phone and radio.

People are saying we are selling it to high-frequency traitors and not telling the rest of the world.

That is not true.

If people pay to get the data faster -- there is several different methods for it comes out of one speech everybody, and is up to the providers to decide how they want to see that data.

Whoever you go to, however you decide to whoever you produced that data from its how it comes out.

You have had to deal with the problem high-frequency traded just like other marketplaces.

Have you had to make investments in the knology and computerization -- technology and computerization?

Like what they were saying on 60 minutes were somebody might have a benefit and a cold location for an hour location facility and recorded at the same exact length so nobody has a greater impact.

Did 60 minutes reach out to you to comment on the other side of his claim?

It did not.

That is interesting.

Do you feel like after watching it was really one-sided and there was not an opportunity for you or your peers to have your voices heard?

For me it was about the equity markets and not the futures market.

I was happy to watch it.

They did not reach out to me about but i would be happy to go on and show them the difference is as i have since the.

N. the futures market, in the same race that the cash market was in, is that over and we are on a level playing field?

It went from $5 billion to $1 billion today.

The revenues have shrunk dramatically.

In the markets have become so efficient, that is why a look at market structure is used to say if there's really problems we should address them.

If michael lewis is correct, and i'm not saying he is not for starters, i am a firm believer if they're giving way orders they should be punished.

What is the ideal stock market configuration look like?

It is hard to stay.

We have to have the same level playing field.

Unfortunately it is a fragmented market.

People can buy him one exchange is a leading other, but what is really important is to have the regulatory oversight on all levels of all exchanges.

Is the cme going to get into the cash equity business?

We have stayed away from cash equity forever.

Again, we have diversified our company dramatically, open-ended stage yesterday in london.

An new clearinghouse, a new exchange in london, we are continuing to broaden our horizons around the world.

Thank you for joining us.

The chairman of the cme group, once the roles largest derivatives -- runs the world's largest renter market.

-- d ervatives market.

Thank you.

? coming up, republican congressman workings of president obama's lack of follow-through on the so-called red line has been bolted vladimir putin.

My interview when we continue in just a moment.

More on the latest round of sanctions against russia.

Earlier i spoke to republican congressman peter king, chairman of the house counterterrorism and intelligence committee.

I asked him what effect these good have on russia and vladimir putin.

I think these will have an impact, as far as deterring investors in putting their money into russia.

It has had some impact so far.

I know some people, we actually believe, they actually have food and money -- putin's money.

The people around him have the power in russia.

The people who are close to him politically and personally.

This is something we have to do and hope the president and the eu keep the pressure on.

What do you think that vladimir putin;'s motivation is?

In his mind he was to rebuild as much of the russian empire as he can.

He is former kgb, is an extreme russian nationalist, and devastated by the collapse of the soviet union.

Even now in the face of international condemnation and sanctions, he had to know this was coming.

I do not know.

I think he felt that the obama administration -- i do not want to be partisan, but when he sees that there is a redline with syria that is not enforced, this began with ukraine.

He talked a tough line and did not follow through.

So he thought he would push as far as he could.

What should the united states be doing right now that it is not doing?

We should have imposed the sanctions sooner.

I pick we should make it clear that we are going to dramatically increase the reduction in exporting of liquefied natural gas and we're going to do this over the next five or 15 years and we have to.

This will cut into the almost russian monopoly that they have.

He may get through the first few months, but in the long-term it is going to hurt him economically.

We should definitely be stepping up military maneuvers with poland.

Not just 150 troops, but with latvia, estonia, making it clear that we and nato are committed to stopping any aggression.

What we're doing is providing nonlethal aid to the ukrainians./ should a military option be on the table?

Weekend -- we can provide military assistance to the ukraine military.

Having said that, i would not do it until we were sure who was getting at and who was not.

The grading military went in -- the ukrainian military went into eastern ukraine and basically surrendered.

My only concern about giving weaponry to the ukrainians it to make sure who is getting it and the russians are not controlling it.

Let's switch to china if we could.

Resident obama was in japan, trying to lock up that transpacific ownership.

Part of it has been a concern about china's ascendancy in the region.

What are your thoughts on a transpacific ownership?

-- partnership?

How would that affect united states?

The free trade works in the overall economic interest of the united days.

-- states.

We need to establish ourselves as an economic force.

The key word is academically -- economically.

To have the diplomatic component, and a military component in asia.

That this type of academically it will make sure -- where does the house of representatives stand right now on immigration reform?

Is anything going to get done this year, or is that a nonstarter because we are in a midterm election season?

It is going to be difficult, but john boehner has certainly started the debate.

I have made it clear i will work with the speaker when he laid out his principles.

It is getting there, the speakers try to make it that way.

Whether it happens later in the year or early next year, we realize that from a political point of view to win a national election we have to show and make inroads into the community.

What are your constituents telling you about that issue?

They are divided.

We are in a district that have a strong is panic about it -- hispanic component, other districts are not so much.

We have a confluence know were the democrats realize to get overall reform through they have to adopt tough order controls and enforcement mechanisms.

To get that we had to decide what do we do with the people who are here?

To legalize them and give them a path to citizenship because we would be addressing the issue of the 11 million who are here, but also preventing another 11 million from coming over the next 10 or 15 years.

Congressman peter king, the chairman of the counterterrorism and some intelligence committee.

Coming up, we will hear from eric garcetti on racially charged comments allegedly made by the owner of the l.a. clippers.

A selloff on wall street today, internet and smaller companies spreading to the market for a second day.

Dow industrials up infraction.

-- a fraction.


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


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