Obama's Signals to Putin: Why POTUS Went to Estonia

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Sept. 3 (Bloomberg) -- Tom Porcelli, chief U.S. economist at RBC Capital Markets, and Bloomberg’s Peter Cook discuss the significance of President Barack Obama’s visit to Estonia and how a cease-fire agreement between Ukraine and Russia impacts U.S. and NATO policy on the conflict. They speak on “Bloomberg Surveillance.”

President's trip to estonia.

Who is he speaking to?

To an america not against, but mainly to the president of estonia, to the eastern european baltic states, to nato members, and to president putin.

I am here to show nato unity, to show that we all know are nader -- honor our nato commitments.

The choice of estonia was crystal clear.

He wanted to be close to russia to send the message while not actually being in ukraine itself.

An important moment for the president.

Arguably more important than what my play out and wales.

How does that discussion change?

I'm not sure it changes all that much.

I don't think the president wants to change the tone.

You heard him encourage fellow nato members to step up.

I think trust and verify.

Ukraine to build up state border with russia.

I have no idea what that means.

A moving target of the headline.

Does the united states control nato?

When the united states wakes up in the morning do they say, we are in charge here?

There is no doubt who is the most important member of nato.

We can -- contribute more than 70% of the military might behind it.

But this is an alliance that has been in place for years and an important alliance.

People of question whether it was really needed in this day in age.

This last couple of weeks and months have proven to the obama administration the importance of nato.

The baltic states also agree.

A distinction here.

The war in the east is not internal ukrainian conflict.

That is a key distinction.

Is not.

Is not.

Russia instigated and continue the conflict is an added comment.

Which is why mr.

Putin would put out a chaotic statement -- quixotic statement that they are not involved.

Is nato not doing enough globally?

Do you speak with in -- people in and around washington?

What is the support for mr.

Obama from his own democrats?

You heard diane feinstein suggests that the president was too cautious.

There are democrats who think that the president is detached in terms of foreign policy, not leading from a position of strength.

You heard that from the usual hocks on capitol hill.

I don't think the president has lost rank-and-file democrats by and large.

There is a great reticence but democrats -- by democrats on getting involved beyond airstrikes in these conflicts.

Nobody is suggesting american boots on the ground in ukraine.

The idea of putting people at risk in syria is something that this president campaigned on the effort to get american troops out to read he is -- out.

He is not going to go back and lightly.

-- back in lightly.

The deliberate steps he is taking year, i do not see him changing that, even if he gets more criticism from democrats.

The escalation would be a threat to the u.s. homeland, which the u.s. government says they do not see isis posing an immediate threat.

His language today is very critical, degrade and destroy isis.

These are the same wards we were using during afghanistan, during his debate as to whether or not to have a debate -- surge in afghanistan.

We are talking along the same language here.

Difficult decisions for the president.

We will get into the u.s. economy later on, but i do want to get a sense about how often your clients bringing up geopolitics.

It comes up regularly.

In terms of the hard data, i think this is a great example.

It was a very good report overall.

When you look at the responding comments, they did mention geopolitical issues.

You still have a ripper of a report.

They are not feeling the impact whatsoever.

You see that they're out in the data.

This is not a new issue.

This has been the summer of

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

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