Russian Stocks Fall on Ukraine Tensions

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April 7 (Bloomberg) -- J2Z Advisory President Jay Pelosky examines rising tensions in Ukraine and what sanctions mean for Russia. He speaks with Trish Regan on Bloomberg Television's “Street Smart.” (Source: Bloomberg)


You called it right with the usa that is a great place to be investing.

What are you saying about russia right now.

I think putin is stirring up trouble because the -- he sees this as a domestic vote-getter.

Look at the popularity.

The russian stock market goes down and his popularity goes up.

This is domestic politics in russia leading food and to be active in the ukraine.

Do you think it will have real economic consequences?

Minor sanctions doing nothing.

What are the economic consequences and therefore, maybe eventual political consequences?

That is exactly right, almost a test between broad popularity and the oligarchs being upset with him.

If the currency weakens and they cannot access capital brought.

Artie down seven percent.

I think it can go lower.

Taking over crimea is expensive.

No economic activity there.

Sanctions are negative.

They have had to jack up interest rates to protect the currency.

That is a negative for growth.

Brescia are ready barely growing this year.

A cash -- cash for them has been struggling.

-- russia are ready barely growing this year.

They have sent to -- money to investments inside area.

All of this is costly.

The play is not to go along but to go short.

That is why it is not obvious but it is an opportunity.

I think it is an opportunity of 35 to the dollar here.

For the next month and a half through the elections in the ukraine late may, i think he will try to destabilize this.

Once this idea in itself, the idea there is a far right wing that is beating up russian people, that is not going to fly.

The next six weeks area problematic.

The thing we have not touched on is the risk of lower oil prices.

Russia is really exposed to any decline in the price of oil.

There is something called oil on the water.

I think of it is something like smoke on the water.

Oil on the water is oil in ships that is waiting to find land.

That is at a record level.

Having a significant risk of downside prices and oil so you have an oil selloff and continued destabilization of ukraine and the elections.

A ruvell that has clawed back a little bit of the valuation.

I think they can go weaker.

It would seem to be very cheap on valuation basis.

I do not know.

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


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