Poland, Ukraine, Bloomberg Maria Teneo discussed on Bloomberg Surveillance

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This Do you ever signs of paycheck That's a wins your bracket So boiler up go produce I do Purdue I'm with you All the way just to management We're going to do the show from Harry's chocolate shop in West Lafayette Purdue takes it all Team coverage That's right now Mary's chocolate chip Not quite Let's get to Bloomberg Maria teneo in Brussels Marie I want to start with a comment we heard from the Kremlin this morning Go through the mentality haven't Poland they are Well Jonathan is so difficult to decipher when we are at this stage The Kremlin now saying that there could be an option of neutrality Remember this is the buzzword We've heard this repeatedly for the past two weeks It means Ukraine does not enter a military alliance with NATO would stay neutral in the case of conflict but of course there are many details around it that would be pending Would they keep an army Would they have to pledge additional concessions to Russia Remember the Russians that you say neutrality could work but they also keep using this word dean at the country being a Nazi by the way in Russia is a very very serious insult They're really trying to dehumanize the other side of the talks here But again it's very difficult to figure out what's going on here because neutrality can mean anything and everything When you speak to the Ukrainians that tell you yeah that is an option but it would need very serious security guarantees And this is not just about Russia It would be a brown every neighbor around Ukraine but also countries like the United States and the European Union would have to agree on it The one thing I would note however is that the two sides over the past 24 hours have made it clear that the positions are becoming more realistic but also a major reality check for the Ukrainian government now singing openly explicitly NATO is probably not an option for the country Maria got 18 questions on the military on the map on this war but let me go to you for a Bloomberg question Are the sanctions are the financial pressure are the most favored nation pull away from Russia Is it working Well when it comes to the European air response to that and it was only announced yesterday so Thomas essentially we're talking about 24 hours in which the European Union through the WTO pulled out the most favored nation status This is repeated with the United States did last week but when I speak to European finance ministers and I had conversations yesterday with the German finance minister mister lindner I also had a conversation with America They do say their work and the pressure is on and Russia's standing very close to potentially a default So they do feel the pressure on the economic front is there but the problem is Thomas you know for the Russian government this is not an economic story This is existential This is about Ukraine and it's about Russia It's a political story for them in ways that many in the west probably don't even understand for the Russians This is not just about an economic crisis as a fundamental question about whether or not Ukraine belongs in the Russian Federation and for the Ukrainians is precisely about breaking free from the Russian Federation Anne Marie just quickly here how much has this become a politicized issue in Washington D.C. with some Republicans coming out and saying that the Democrats are not going hard enough not supplying enough ammunition not necessarily providing enough support to Ukraine I think you'll see a lot of that today when we hear from president zelensky 'cause he's really going to implore lawmakers to do more with setting up either a no fly zone which by the way that has bipartisan support in terms of not doing that There's a lot of Republicans who agree with the administration that can be very much so an escalatory response but when it comes to Polish fighter jets or any sort of jets from a NATO country getting over to Ukraine many Republicans think this is something that should be delivered that they should take this advice on from president zelensky He knows on the ground what is needed and you had senator McConnell yesterday in a speech on the floor of the Senate minority leader talking about the fact that he thinks the administration has been a bit hesitant on this and dragging its feet So potentially I think president zelensky is really going to put the Biden administration in a very difficult place today and almost immediately after he speaks this morning President Biden is also going to speak and talk about the military aid the U.S. is sending I am age Thank you with Maria today On that important conversation Tom did we ever find out why facilitating the transfer of megs to Ukraine was considered an escalation Did we ever get a full explanation of that John I don't know The full explanation is simple and I thought Gregg villier captured it perfectly this morning It's a moment the emotion we're going to see at 9 o'clock at 9 20 this morning will be extraordinary and the adult in the room is at 1600 Pennsylvania avenue and he has one thing on his mind and that is nuclear weapons and the deterrent forces on both sides The issue I have now later is that once you've established defined it as an escalation then ultimately can you go through with it But the problem right Right it's a self fulfilling prophecy How can they now say okay we can supply those aircraft But now it's not an escalation How do they determine that And how do they basically frame that to the Kremlin It's almost self imposed Futures at 1.2% on the S&P on the NASDAQ count by 1.75 yields on tens to 16 Your fed decision just around a corner This is Bloomberg.

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