with the independence of the baltic states, st. petersburg along with kaliningrad are russia's only remaining ports on the baltic sea. this is all the more important because the black sea ports we lost to russia when ukraine became independent. architectural consultant vladislav miagkov is optimistic about the city's potential in the future. ( speaking russian ) translator: after perestroika, the city faced a great number of economic and political problems related to the transition to the market economy. but the city holds enormous potential in its well-educated populace, its intelligentsia and its laborers. moreover, st. petersburg is an important railway and transportation junction that still concts ruia wi the west. that's why our city has a ance to overcome its at the same time,ies. st. petersburg as an important tourist and cultural center remains a worthy representative of russia to the world community. hardwick: st. petersburg is still the most beautiful city in russia, and geographically its location means it will never los

mad nation has taken part in the months in nineteen eighty nine when baltic peoples join hands to mold freedom and all the legacy what the soviets machine of course is the last presidents of the russian speaking community here in lafayette. a number of them remaining stake this is it because they don't want to integrate or is it the last year that doesn't want to integrate them. i do believe that two things first. for young people for zoe's school whether or not to defend his original question. mostly of them are citizens. old people say yours truly and that the majority go but i think that differ. it was so good to him. sometimes they have the ability to use a custom connections whose iraq she has any other republics they have some bs that there is also practical basis. if god wants it this week you have ups and the possibility to move bowls please use alternate easily so anything you can go to russia. and you go to you. if you'd like and citizens in its citizen it is also the easy to look a vocal russia would recover and atkinson so you don't agree with some of the russian speakers s

president putin in the polls in the baltic states and azerbaijani wins. won period. >> true. lou: irrespective of the opponent that sat across from him. this president is having a very tough time working out a concluon, whether be in egypt, whether it be in libya which oensibly was a, he achieved his rult but the, what has transpired since is horrible, horrible. so are there a successes for this administration? >> i'm not sure that there are. one of the problems this administration has when it to diplomacy it ofte sees diplomacy as beginning of a process, rather than the end of the process. if yo look at one the best examples of successful diplomacy, ronald reagan with mikhail gorbachev. yes he sat down to talk with an enemy but that was after years of a military buildup to set the right circumstances foruccess. president obama dsn't seem to understand that. lou: as you, as you look at what is going on in russia, you talked about putin's fear of that, pro-western sentiment, moving from ukraine to moscow to russia but also he has interests ambitions ofhis

of russia, former kbg guy, he lamented, liz, the downfall of soviet union and loss of ukraine and balticconcerns if he could invade here he plight invade other parts of the old soviet union which are now independent like the baltics. liz we have waiting but we understand that the ambassador to the u.n. will be speaking momentarily. the president of the united states will trump him. we'll get everybody's comments to you. stunning developments in crimea, just in the southern part of ukraine where all kinds of military aircraft have been landing and they are russian. david: gerri willis will take you right to the president. stay with us. .. dozens of tax free zones across new york state. move here. expand here. or start a new business here... and pay no taxes for 10 years. with new jobs, new opportunities >> horsehide, bullet. right where it needs to be. coach calls it logistics. he's a great passer. dependable. a winning team has to have one. somebody you can count on. somebody like my dad. this is my dad. somebody le my mom. my grandfather. i'm very pround of him. her. them. gerri: hello,

ideological programme and despair as i know there are other camps like that abroad for example inside the baltic states with some folks. who threw up with these guys underwent special ideological training in the spirit of radical ukrainian nationalism they were also taught urban conflict and police confrontation tactics hand to hand combat knife fighting and even shooting. i. couldn't see them according to the information i have they were funded. through a few individuals with money there originally needed in the u.s. and in europe it's. my name is of an organized support for the guys in special forces units like got a hoot bars in tiger for all the guys who are defending peace in our capital. what we buy for them is mostly vitamins warm clothes by the stuff every day. this is what they asked for twenty meter extension cords they use them for heaters and of course on its little boxes. but what else are you drinking water as usual if you're we've got this good since all packed full of condensed milk healthy and calorie rich money is being transferred to a bank card and people from all over ukrain

twenty seven year old icon as i need to group baltic schools and applied his knowledge to help mall to find educational group of kids. he says the aim is to provide pupils with a stimulating visually some poll of over a shiite was . or he's out. three days i am here to help pupils of this school with me the eldest niece and have a new teaching assistant. along with the more conventional methods of teaching religious education. the rock. what's it going until i went to the second back to back champions league tie against anything he says with a two goal lead on stage after winning four two on tuesday the away side off to a flying start with that soft goals by henrik many tommy and i mark a really stunning sunday. the second top with yet more dramatic with four goals in fourteen minutes shots of sculptors and it was counted by a goal from the house. he then scored again on the whole canteen penalty into the pocket than that. omg i cost of beets in my chest the u nineteen team and in the champions league last sixteen first leg mind the game started we begin i did and didn't get much back

aye aye fresh as treaty to formalize its border with the baltic state of estonia that we as in japan's claim to form russian how the islands of hokkaido the only remaining ten two of this before my shower and clean sea islands which are controlled by a rash down russian find this is a gain of rough and his estonian counted on to other months i had to sign the deal the treaty sense the border drawn during the occupation by the former soviet union that means estonia has given up its claims to russian control and measuring two thousand three hundred square kilometers. as daniel is an ace by the soviet union during world war two. after winning independence in nineteen ninety one the country started negotiations to restore its former border. estonia finally agreed to the deal after the european union and the north atlanta treaty organization are statistically d mikey it's the russian border. estonian foreign minister later said the border deal will prevent future complex. russian president biden and clinton has to solve the border disputes with china norway and other nations since taking of

on how the world of those i know a lot of young kids in jamaica wanted to to be a part of jamaica baltic sea. i say thanks to the at the world sport week that this is that when the best tag games and i've seen in that and it's a great day great opportunity for the jamaican team to be here represent jamaica where you're from another log on at all. just watches them away from home it in the country proud moment. aside from the high spirits and praise folding them into solitude is also to make a good cover to coast in the west immediately think of criticism about the state of the hotel to straight up claims of the games they held no bowls and place them in the threat of terrorism. russia's president dismissed all that that was an echo of the pops they shone through in the cold during the cold war era there was the so called containment policy. this one was called as he was the policy and practice of containing the soviet union's development. unfortunately as we see now occasionally or their own throw backs to these policies every so often it's the one russia demonstrates a positive developm

nash anti russian movement and would play there for upon the nationalisms of neighboring states the baltic states the poles the ukrainians and so on and rather as i'm afraid say in the second world war the germans eventually tried to recruit anti communists anti russian cults and ukrainians to fight for them we in a sense are now reviving those ghosts of collaboration of seventy years ago and i think this is a rather rancid and distasteful policy. also well that's dangerous for the go. as well as a threat to creating a kind of civil conflict within places like ukraine between the pro and anti russians between the great you were great you were p.m.'s if you like your asian it's ok stephen is russia a threat to the west because the west certainly portrays russia is some kind of threat. i would put it differently all right i would say that the west has become a threat to itself. this constant confrontation with russia which began in the one nine hundred ninety s. with the end of the soviet union the kind of march toward moscow from the west beginning with nato expansion carrying on with the a

the lithuanian prime minister should unite piece of that the ministers and parliamentarians of the baltic country followed closely political developments in kazakhstan going into premium because of president's address to the nation carries high strategic importance is the war the document which affects all sectors of life we're moving towards the weight of european and world of the moment and is the context and has insufficient serious approach to integrate into the european court family the ship was there with abduction is the view was in the eu of course the room so i'm looking into my shoes only. the diplomats consider awesome. a key part in situation. last year lone tree between the two countries amounted to about seven hundred million dollars the sentiment that their loan just as gandhi new railway link as they paid special attention to trends and opportunities to become extend up to twenty million tonnes of cargo can be transported by train the distance between east and west will be reduced by at twelve hundred kilometers what's the rails running from just as god and socks all sky a

ok rights for a year in the baltic states do they why doesn't american people who are talking about ukraine. that we see every given estonian latvia well hang on hang on why don't they condemn that if they if they know nothing don't object to the kill a fetus has a basic question and try to reconstruct and so i think we should have. said what i think we should have a round table i think we should have a rout a ceasefire but round table and elections and that's how we can see. who's going to be at the gun table ariel you give me your round table go ahead with the round table will the round table will consist of the three opposition parties and i detest mr tatham the bugs that the liberty party that because they have some nazi sympathizers in them i'm the first one to deny them but they're part of the mix right now clearly the right wing sector of the right sector should not be at the round table and this should be an accepted mediator because these people do not behave as adults to my great great regret russia and the united states probably should stay out in an acceptable figure from europe

>> i think the baltics -- it does make me nervous.oint is that it is not just the economic language which is worrisome. it is the financial linkage which is worrisome. the financial linkage may channel through the u.s. because you have asset manager sitting there with ukraine corporate bonds who would be suffering from this exposure. there are other exposure is in central europe and asia and that is the challenge. itself is not big enough to create a systemic crisis. this is not the right time for emerging markets to be going under pressure. many people are bearish on emerging markets. people are still long emerging questions have been asked about the corporate or. -- corporate credit space. >> thank you so much. bhanu baweja stays with us. we will be talking more about china and turkey next. up, is it enough to a turnaround is taking hold? details next. ♪ >> welcome back. i am francine lacqua in london. this is "on the move" on bloomberg television and streaming live on bloomberg.com. still with us is bhanu baweja, head of emerging m

to use this opportunity to show its allies in the baltic that washington has their back. cheryl: james, thank you very much. adam:: retailers bluff. are the temperatures really icing a shoppers wallace? no way says former plays a russ ceo. what is really to blame next. cheryl: you want to look at the market today. the dow up 182 points. we are going to head back to new york stock exchange for the long list of stocks hitting new all-time highs today. we will be right back. ys s be thman with the plan but with lesergy, moodiness, i had to do mething. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t velso normal in aut t weeks in most men. axiron is not for use inomen anyone younger than 18 or m with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne wom may occur. repo these symptoms toour doctor. tell your doctorbout al

can we expect baltic politicians marching there among those who are pitching for independence?let's see if this is going to happen. some of those things were quite graphic and in our view completely had nothing to do with the idea of no interference . they emphasize sovereignty but they behave as though ukraine was a province of the european union. impolitet least towards our ukrainian friends. importantly,re there was an effort to determine for ukraine what they need to do. you alluded to president yanukovych. i think he mentioned it briefly in today's press statement. they did realize, the ukrainian authorities, that signing of that association in agreement would entail serious economic consequences for them. they tried to buy some time. you see what happened. they were crowded in telling they were doing the wrong thing and this whole trouble started. they have a democratically elected president who had majority and a democratically elected parliament and his election was coming up a year from now. then he offered the post of prime minister to him. he could've taken the post.

it includes some of the baltic naval fleet and includes some of the air force as well.he defense minister says this has been taking place near some of russia's borders, but again, specifically saying this has nothing to do with what is going on in this the yukraine. now although there has been that statement, i think it is probably going through the minds of many people of the russian government that holding military drills at this moment, reminding russian's rivals of russian military might at a time when russia's prestige and influence in central and eastern kru krurp -- europe certainly wouldn't be a bad thing to do. >> rory thank you very much indeed. right now there appear to be two centers to the protest, one being kiev, the other krimia. that is where the russian fleet is. as i mentioned to the top of the program, a city where robin is there for us. >> reporter: ukraine's tartar supporters came out emphatically, they shouted krimea is not russian. they say they belong is a proeuropean united ukraine. the muslim minority has been al-latin americaed by talk of acce

that goes for the baltics, as well. at 35, 40 basis points, you know that's where that's going to be. asset quality is something we're quite comfortable with. >> you mentioned the baltic region had a significant increase in predictions as far as lithuania is concerned. can you give us a bit more speculation? >> i think what's coming through there is the ramp up of some of the assets that we took over in terms of property assets during the crisis. >> can i ask you about the recent volatility that we've seen and how concerned you are about that potentially impacting numbers in trading activity going forward? >> well, you know, for us, it's all customer flow driven so it's no proprietary trading. and it's really coming as a result of confidence coming back into the market. i think we can see from some of the measurements done in this market that consumer confidence is pretty good and so -- and that's true in the corporate sector, as well. and as soon as confidence in activity levels pick up, you know, that generates the fl

the pols, baltic states, azerbaijan are waiting to see if the americans step up to the plate.: what is your sense? i, i'm just curious, to understand why this administration is only now coming to the issue it seems? >> i'm not sure that the united states understands what an idealogical battle we are in. we look at allies as partners. we want to come to a win-win situation but vladmir putin sees international relations as a zero-sum game when neville chamberlain is up against machiavelli, chamberlain seldom wins. lou: chamberlain seldom won period. >> true. lou: irrespective of the opponent that sat across from him. this president is having a very tough time working out a conclusion, whether it be in egypt, whether it be in libya which ostensibly was a, he achieved his result but the, what has transpired since is horrible, horrible. so are there any successes for this administration? >> i'm not sure that there are. one of the problems this administration has when it to diplomacy it often sees diplomacy as beginning of a process, rather than the end of the process. if you look a

what does this mean about how any kind of eruptions that made omuir other countries, let's say the baltic, again, how will the west and russia interact in this space that has become in a sense the strategically contested space and let's hope it never becomes a militarily contested space again, but this is in the belt of nations that are watching carefully. some countries are not in nato but look to the west as part of the world. they want to get closer to. russia doesn't want to see them go, and you can imagine tug of war is setting a precedent for hour future indications like this might be addressed. ukraine is important enough that i'm worried less about precedent and worried more about exactly what is happening here right now. >> the whole world is. the battle at hand at the moment is a battle over the reduction of the number of powers the presidency has, because the people want more power to make changes. the president has abscond with the powers. is that the gist? >> yeah there was the move towards some greater economic and political tightening with the west, and then the president s

in a move denounced by privacy advocates, obama refused in the baltic collection of telephone metadatasaying only he will modify it from how it currently exists. >> and therefore ordering a transition that will end the section 215 bulk metadata as it currently exists and preserve the capabilities we need without the government holding this bulk metadata. this will not be simple. >> the interview on a german channel ard commit edward snowden reacted to obama's speech. >> it was clear from the president speech that he wanted to make minor changes to preserve authorities that we don't need. the president created a review board from officials our personal friends, from national security insiders, deputy of the cia -- people who had every incentive to be soft on these programs. but what they found is these programs have no value. they've never stopped a terrorist attack in the united states. they have marginal juliett us for other things. the only thing the section 215 phone metadata program, bulk collection which means mass surveillance, program was in stopping or detecting $8,500 wire tra

but the question are we going to reach out to poland, the baltic states, estonia and lithuania to azerbaijan and show putin if he pushes countries around, he's going to lose out elsewhere in this policy game. >> ayman, how do you think things will play out here because ukraine cannot remain indefinitely in limbo? >> well, it really depends on the type of government ukraine is able to create in the coming weeks and months, actually. not only in the interim period which is going to set an important tone. and i doubt that you can see a complete reversal of the course towards europe in the short term which i mean during this transition period. don't expect any ukrainian government to try to undertake something as sensitive as a political or economic acressation agreement. as a parliament and prime ministers you can expect the ukraine ultimately make its decision in that course. also keep in mind that russia can't stand to lose a territory like ukraine. a lot of russian industries supported by industries in ukraine. it's an important farm and agricultural trading partner for russia. and there is

the baltic states, poland, hungary, romania, bulgaria. those we used to call eastern europe.now well out of russia's sphere of influence. >> but the upheaval in ukraine where citizens revoulted gefrb a decision by yanukovych to spurn the european union in favor of closer economic ties with moscow shows mother russia still exercised considerable influence across eastern europe. seated atop the world's largest gas reserves, vladimir putin uses energy to keep countries like armenia, which also spurned the e.u. last year, closely aligned. >> what happens in kiev doesn't stay in kiev. we have to show our allies in georgia, poleant even, that we are willing to have their backs. >> treasury secretary jack lew told ukrainian opposition leader the u.s. and western allies will offer an aid package if ukraine can first complete a restructuring agreement with the international monetary fund. >> we're working closely with the eu, and we have been very engaged, but lt am ely, the future is up to the people in the country. >> whether ukraine is an echo of the cold war or drew inspiration fr

this is a vicious low we have going across the northern france and through and into the baltic statesmoment. there is worst to come because this area is about 943 millie bite and blasting across the uk and we have mountain seas at the moment and will only get worse in the coming days, david. >> reporter: unrest in kenya is having a disaster on the tourist industry and youth at a mosque in mombassa and catherine reports. >> it's the lifeline on kenya's coast and the season is on the fourth month. but in the cooler evening breeze the beaches are uncharacteristically empty and worried there have been frequent grenade attacks in the area and fights are common and is a malaysia group is getting fighters here and tourists will stay away and her business has been getting worse since 2007. >> translator: we are effected and used to be 300 of us here and now we are only 5. >> reporter: everyone who lives here depends on tourism and yet to recover from the 2008 and 2013 election balance and any additional strain will have serious consequences. there are people in 2005 during the good times and

that's why he pressures the baltic stakes and meddling in mullkova and troops are in georgia and he viewss the crown jewel of that. there's an old loin about russia with ukraine is an empire, without it, it's a country. it's a vital part of his scenario for russia's role in the world, and we have to be vigorous in our response, and i think we can be, but first we got to realize who we're dealing with. >> senator john mccain, thank you very much. good seeing you again. >> thank you. >> signed up for obamacare and now desperately wants out of obamacare. but now he can't get out of obamacare. >> this educator makes more than the president and let's just say taxpayers didn't know about it. now they're furious. >> this is ridiculous. this is nuts. my wife -- i give my wife everything. i do anything i can for my wife. i'm sleeping with her. who are you sleeping with? i ke prilosec otc each morni for my frequent heartburn. zero heartburn. becat wohoo! [ male announcer ] prilosec otc is the number one doctor recommended frequent heartburn medicine for 8 straight years. one pill each morning. 24 h

they did, they threatened this a lot in the baltic states in the 1990s. that is one of the pretexts that they could use. >> fiona hill, what is the impact? how is a statement like the one that cameç out today, secretary kerry saying it would be a terrible mistake or words to that affect for the russians to do something, the white house itself putting out a statement. how is that read by moscow do you think? >> the problem we have right now is we have all kinds of competing narratives about what is happening. the russians have also been accusing frankly the united stitz and the european union have directly intervening here as well. so sometimes the statements are not received in the way that we would hope they are in moskow. this might be seen as grandstanding in fact. rather than as a very clear statement that there is a red line here. we were as nadia suggested in the situation before in 2008, before the war with georgia in august of 2008, similar statements were made on all kinds of sides. and there was also a situation there where many citizens of rus

end, this whole relationship was in tatters because the russians looked to nato in largement to the balticd looked at the freedom agenda of the bush administration which was also directed towards russia and so that the expectations were really mismatched then. >> warner: and let's look at the relationship between president obama and president putin, his return to office. and take just one example, which was russia granting asylum to edward snowden. now how does that fit into what russia is trying to do? >> well, was it more than just wanting to stick a thumb in the eye of president obama? >> well, i think for putin this was a golden opportunity when edward snowden landed in hong kong and needed somewhere to go and went to moscow and then stayed there. because putin was able to say, ah, the united states, you're criticizing us for lack of democracy. you're criticizing us for the way we treated protestors against me, against vladimir putin and criticizing us for spying on our citizens. what are you doing. you're doing just what we are doing or even much more than that. so it was a great prop

russia builds up baltic sea presence. that is not near ukraine.hat is some more up to the northwest of russia. over scandinavia as well. >> we want to talk about a couple of retailers that are in turnaround mode internally. sears holdings reporting this morning. $3.37 per share. jcpenney reported result yesterday -- they give a forecast in sales that seemed to signal a little but of turnaround. let's bring in craig johnson, the president of customer growth partners, which offers strategic counseling into retail and consumer service sectors. to these latest report cards from sears and jcpenney change the story on their turnaround efforts? here is a real mixed bag of stories. jcpenney has been in intensive care and at least the doctors are showing up and they are making slow but steady progress against getting out of a deep hole. with sears, you have a grand old name in american retailer and it is heading downhill and nobody is stepping on the brakes. it has been a stunning debacle. the latest numbers today were not a huge surprise. >> i guess the b

. >> every time someone talks about the former soviet republics like ukraine, like the baltics, like georgia -- >> the buffer zone. >> you hear western politicians and the likes of merkel say it is not a zero-sum game. dictate orhe west to russia to dictate, we can both agree to cooperate in these places for the better of those countries and the better of our own interests. feel thatk they often sometimes they leave the russians on the sidelines. and then they get the kind of reaction they do not want to get out of russia. you could say this peace deal on friday that we had between the then-ukrainian president and the opposition was brokered by the eu, the russians listened to what they had to say and they left. they did not sign the deal. there is a realization in western european capitals that it is best to have vladimir putin on board if possible to at least hate him that deference, if you will, because, in the long run, it will make life easier for everybody. >> we will catch up a little bit later. ryan chilcote on the latest coming out of the ukraine. let's change gears complete

this will have a huge impact on nato members in the baltic states, in romania, in bulgaria.t they see is exactly the shadow of what senator mccain was just mentioning. putin is determined to restore the soviet union. he's been angling for this for 15 years. they've known it's coming. the poles came to me as early as november 1999 warning me what putin was going to try to do. this sais all part of a long-te strategy and we have to accept that. >> those are strong statements your making. fareed zakaria is joining us. react to what we just heard from general clark. >> well, i agree with general clark's recommendation in the sense that i think what you need is firmness now to deter the russians from doing something militarily provocative. i think that we want to send the signal to the russians do not try to create facts on the ground by using your military, by using paramilitary forces, by using intelligence forces, but i do think that the political situation here is more complicated because there is, in crimea, as far as i can tell, an overwhelming majority of people who are et

he's put pressure on the baltic countries. they're occupying georgia.t to realize that and treat it accordingly. that does not mean another cold war. it means we sure up friends, help economy, move countries. frankly ukraine i have beginning of at least a process to move to nato if they wanted to. >> what do you think is motiv e motivating the lack of resolve from the white house? do you think they're afraid of putin? is president barack obama afraid of going toe to toe with putin? >> no, i don't. i think it's a different view of the world the president has. his comments about this is not some cold war game. our failure to help in syria, black flags of al qaeda flying over folusia. regional conflict expanding because of this horrible situation in syria that we basically -- on meet the press, the president's national security advisor said some want to put boots on the ground. i'd like to know who that is. it's certainly not me. i certainly think there's a range of option we could be doing more and should have done a lot more over the last three years. ch

. >> the baltic dry shipping index, an index, shipping for iron ore, grain and coal is down 62% thistes used to watch this for us. >> since the turn of the year. it's volatile, isn't it? what does that mean. >> i believe the new leader there, xi jinping, is basically using this like the new ceo of a company that comes in and cleans house. >> right. >> you'll have a swapping first half. but we do believe that china is on top of this situation, number one, the shadow banking system. >> how many do you have here? is this is an outline. >> three. >> you have three. good. >> four. >> it's like a powerpoint, indentation now. >> it's a new one. this is getting good. >> shadow. >> baing system number two is the purchasing manager's index which came in below 50 last week. that was what set everybody off. january 23rd is when things started to hit the fan because of that number. the market number that was 49.5, below 50. >> i remember that. that hurt the market. >> and the third thing with china is the inner bank lending. those rates have shot up. their rates are 9%. they should be 3%, 4% with