U.S. Companies Could Be Losers in Ukraine Crisis

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

March 5 (Bloomberg) -- In today’s “Global Outlook,” Bloomberg Economics Editor Michael McKee examines the U.S. companies facing business losses from the crisis in Ukraine on Bloomberg Television’s “In The Loop.”

Sanctions on russia.

Russia talking sanctions.

Companies that do business in ukraine and russia -- mike mckee will see the impact on those companies.

There are hundreds of u.s. companies involved.

Not just pepsi and coke and mcdonald's. so far, most of the companies tell us that their operations are unaffected, even companies like adm and bungee with terminals near the ukraine in the black sea.

Their stock prices are handing -- hanging in there.

Take p&g. they have been in ukraine since 1990 and russia since 1991. ththree weeks ago, they lowered their earnings forecast because of wildly gyrating currencies.

Emerging markets like russia and ukraine will reduce earnings per share growth by about 1%. the ruble since then has made matters worse.

They have spent $1 billion in russia over the last decade.

It was the first foreign blue-chip company to sell ruble denominated bonds here to look at what is happened to the yield on the spots.

-- on those bonds.

They will be paying for that as well.

One of the companies that has to be concerned as boeing.

Boeing has a big concern because they have a lot of facilities in the ukraine and in moscow.

$7 billion worth of investments there.

Major manufacturing -- they have a design plan as well in moscow.

They forecast that russia and ukraine will by 1200 planes over the next 20 years.

Sanctions could really hurt them.

They are a big buyer of titanium.

About one third of the titanium that goes into all their jets comes from russia.

They do have long-term contracts that affect price.

The spot price has been going up quite a bit in recent days.

That could cause problems for them and for others down the road.

And auto companies?

You have four, chrysler and general motors.

Russia has been a big growth market for them.

It is flowing now and this just adds to the problem.

How much of a long shadow is this going on in the ukraine?

If it deteriorates, it will have ramifications in terms of economic activity.

I sincerely hope it gets resolved quickly.

Even if the stock prices for these companies are hanging in there, they all have the same

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

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change