Mystery guest. First i want to get headlines from a radio cohost. Shot back at activist carl icahn for his role in ebays scale of sky. Sale of skype. Carl icahn says that Andreessen Biddeford and the deal at the expense of ebay, and his shareholders. Kroger approached safeway about buying part of its operations. Kroger andway safeway are the large supermarket chains. Him rs a slave took best picture. E thank you. The confrontation in ukraine shoeshine of worshiping today worsening of today. Peter cook joins us now with the latest from washington. Heater . There is a lot of backandforth today, but the worst standoff since the cold or so was no signs of easing. Settling in for an extended stay. There were reports that were mobilizing more of their forces on the russian side of the ukrainian border. Then, every indication that the russians are trying to increase their grip and crimea. This is all in response to the ouster of the russian backed president in ukraine. They say they are simply protecting russian citizens in the ukraine, but again, the eu and the United States responding, condemning the action so far. The resident is urging vladimir face to back down and not prospect of isolation. Quick that they continue on the current rejecter they are on, we are examining a whole series of steps, economic, diplomatic, that will isolate russia. Have a negative impact on russias economy, and status of the world. Impact on, negative the russian economy today, the drop in the ruble. The next move by the united kerry will be heading to kiev tonight. They are showing support for a larger package being headed up by the imf eric wedge of russian groups on the one side will about leverage on the u. S. Side . Is there any leverage that they have . Theres not a whole lot of leverage other than the isolation that the president talked about, and the threat of echo extinctions. Military force, the military action not even on the table. The president believes and smart able to the, and sanctions. The suspending of the g8 summit , canceling trade and marshall talks, those are off our table. Toss could be an effort to russia out of the g8 altogether, and then kicking them out of the wto, freezing assets to u. S. Banks and european banks, and severing commercial ties. We are a long way from that, a lot of road ahead in terms of trying to reach a diplomatic solution there. Tengion seem to be going up instead of down. Thank you very much. For more on ukraine, and the potential sanctions that could be imposed on russia we have robert kahn, the former Senior Adviser at the world bank. Great to have you with us. I wanted to get your perspective of what you know about the situation in crimea, ukraine, and russia. And how you think things are going to play out. Onin terms of the economy the ground in russia, we have the makings of a very severe crisis. There are economy was already doing poorly, the government is using reserves at a rapid pace. Even the basic functioning of the government is proving difficult. The economy is falling quite sharply, so from an economic respect of there are some needs that he should be addressed if were going to sustain this coalition during this very difficult time. In terms of what is going on in russia, as was earlier noted, we have had some significant moves in the russian financial markets. Was008, when there geopolitical tension, we saw very similar moves in russia. We do believe that they are vulnerable to a pullback in risktaking, assets leaving russia, and the possibility of sanctions. That could all weigh on russian market, and have an effect. They have large reserves to attack address it, but it is some place where we feel we can bring pressure. Putin hasout vladimir perspective, based on what you know of his strategy and his experience in the past. We debate that, editing the basic answer is that we do not know. It is very hard to predict, were all somewhat surprised by the aggression of the recent news. Russia has important restaurants interest in the crimea, but that does not explain the kind of are those interest really being threatened by the revolution that is taking place in kiev . I do not think so. I think the threats that are used to justify these actions are really fabricated moves. Towardsd, the turn russia that yanukovych had contemplated, that was through with his departure, we see them wanting to move more toward the west. I do not see that as a material threat to russia, it certainly does not need to be. In that sense, the sake statement by secretary kerry that there are Many Solutions are, i believe that. Crimea areas they send him a crimea is aegion semiautonomous region. What does that mean, and how does that impact the future of these events . Russian are strong interests in terms of military bases, and there are many people whose be russian or have russian associations they are. To the extent that those peoples would have welfare been obvious concern to russia. Fundamentally, there must be some broader belief in terms of russian influence, which is hard to me to explain or understand. Send as aes this message to other countries that in the future may try to go their own way and defied the where Vladimir Putin defied the will of Vladimir Putin . I look at this in the terms of economic disruption and the cost, and i do think it is an extraordinarily painful time for ukraine. It is a challenge for the west to come with a significant financial package brady needs to be done in two stages. They need to have some upfront cash, and that a longterm Adjustment Program with the imf. If you have that i did on the table you can see that the ukraine comes out of this stronger with a western orientation. Ultimately, that is something that could be a positive statement for countries in terms of adopting a more marketable economy and sustainable resources. Tell us about the great economy. It is not only a transit point for natural gas and energy from russia to western europe, but it also has a large wheat growing area, and an macro cultural center, and in the east it has coal. It has a very strong cultural advantage. That iss heavy industry really a legacy from the soviet union, and from the integrated reduction networks that existed at that time. Unlike tackles lamacchia, do not seeland, you the reorientation of that infrastructure toward the west. There are more integrated, and more reliant on russian trade than many other countries in the region. That of course is part of the vulnerability we are seeing in russia ishe threats making to break down that trade. Thank you. Robert kahn is a senior fellow of counsel that foreign relations. We go from the sublime to even more sublime, or mr. Best our mystery guest is in the building. Our first clue details ahead. This is taking stock on bloomberg. General motors exceeded analyst estimates for the february sales. Well they did drop one percent, that was better than the forecast of an eight percent decline. By automaker is now led new chief executive, and her challenge is to improve a ministry that was in declines in 2007. N industry that was in decline since 2007. Thank you foreh, being with us. Can you give us a background in the history of kettering . It was founded in 1990 as a trade school for gm credit that eventually got changed to university. It was founded by charles kettering, and also the idea was to provide training for the technician and people who were working at gm at the time. For some time they provided more inventi intensive training and became a institute. In 1998, the name got changed to Kettering University after the boss, the founder of the university. Education,operative and that means that all of the students who participate, they change what is in the study, and also work. Is that something that the chief executive of gm did . That is exactly what she went through. Came to school 242 months for two months, and then went to work for two months. All of the students are all required to do this. When theyre done, they are practically professionals. That is the main advantage. Mary visited mary is an example of that. What is this for, what you can do with it, and more important, why we are studying what we are studying. It is a big avenue to do practice what you learn. That is what the university is doing. From 19801985, and then had the same education. Was here in 1984, 1985 with her in class. What can you recall of her time in the university . Particularly in the lab that i had her, she was very bright, a very bright student. I also remember vividly that she was always focusing on the assignment after i was done talking about the assignment, she was a ready to attack it and solve the problem. Very bright, and hardworking. The other thing that i remember is that she had a tremendous parent of collaboration. A lot of the work that we did was teamwork, and she always tried to participate and make everybody all of the individuals participate and make them to be a part of the team. You can see that characteristic that she was the leader at that time because she was the one who sureaking charge, making that different parts of the assignment were done, and done properly. The other thing that i remember from her is that she has tremendous communication skills. Some of these assignments, they had to present the results of their work. You could see that the way that she was articulating, even at that time, 30 years ago, the way she conveyed the message, you could see that she had the personality and the connectivity. Not only discussing what she wants to do, but also to make sure that realize that people realized we were all together in this. It is amazing to see the transformation from what she learned in school, and then when she applied it to, and then what she got. She is a model for all the people who think it is difficult to reach high positions. She tried it, and is just amazing. It is a great pleasure i am only going to give you 10 seconds for my next question. Are you surprised that mary bar as the first female chief executive of a major u. S. Automobile maker . What, i canll you pick some of the ones that have reached there, and she was one of them. It was pretty much maledominated minor midget management, and for gm to recognize that she couldnt come at it is astonishing. Im very pleased to see that she got to this point. She is talented, deserves it, and has all the ellen and skill to do the job. I am pleasantly surprised that she was able to do it, and that gm recognized all of the guild and the talent she has. Thank you so much. Fromssor mohammad torfeh Kettering University. Where do all of the students go . Next. L give you details applications are down that many colleges. Not just because hired western costs, the number of High School Graduates from the midwest is following. Weve been looking at the trends, and joining us from our Chicago Bureau is can anselment, the dean of admissions and Financial Aid at Large University in appleton, wisconsin. Taking stock. There are fewer kids from the west that are graduating from high school, and were starting to see this come up in College Application numbers. Harvard had a decline of about two percent and their application, and that was led by a six percent decline from applicant in the midwest. Like can you come up on this . Why is this happening, and how is this affecting Lawrence University . We have no this is coming for quite some time. The western interstate committing for Higher Education said this was going to happen starting about 2009 with a decline in the midwest and the northeast. University has remained fairly even this year, and the good news for us as we are up and will annoy and wisconsin in illinois and wisconsin. We are bucking the trend. If this trend continues what will this mean for Higher Education in the midwest . I think is going to be an increasingly in additive market place competitive marketplace. Competitive from the perspective of students, or these universities that want the students to enroll . That is a very good questions. I think is going to be very competitive for the colleges. It is very good to be a High School Senior applying to colleges, because there are fewer of you out there. Quite so this is a good time to do this, a student market. A studentage would have if they wanted to go to Lawrence University . What you mean . If you come from a particular area of the country, and youre looking for some geographical diversity, some universities in the east and west coast would look or people from the midwest. Whereas, if youre in wisconsin, perhaps you have a different story. Is an Population International population, so about 50 of our students come from illinois, wisconsin, and minnesota, but after that it is new york about ella ford, and china as our next largest sources. Were trying to be everywhere it make sense for us to be. What about the composition competition to get midwestern students . They will become more appealing. We know that colleges are looking at other places instead of the midwest as well. The south, southwest, california and texas. The demography of the students, where these populations are increasing, they may not be the same students, the same caliber. They may need more remedial education, it will be very interesting to see. Fillolleges all want to their classes. Our universities and colleges in the midwest that are already seeing the lines declines . To shorehey are trying up their students nearby, and regarding. Ssive in recruiting. They have a second enrollment officer to talk to students, counselors, and parents. Extra then stroke Financial Aid an incentives to go . Perhaps. Would talk about the next hot test trends in retail. This is taking stock on bloomberg. I am pimm fox. U. S. Manufacturing expense and at a faster pace than expected for the month of february. Thedata indicating economy may be picking up from the harsh Winter Weather that slowed growth. Just of a bank and mens wearhouse have entered into a nondisclosure agreement, indicating a possible merger. They have dissipated participated in previous failed attempts to merge. Expiring march 12. Quite the harsh Winter Weather continues to cause a headache for flight travelers. For billion in missed trips passengers. Snowballing d. C. And caused a conflation of 4500 flights today. Snow falling in d. C. And philadelphia caused a cancellation of 4500 flights today. Small Business Owners president ands jodieinvestment officer mclean, and sid mashburn. Just described to me what is the conference . What is the intention . The intention of the conference is to bring together some of the very best minds in retail, doing unique things. Level, andortar integrating ecommerce and what they are doing. Point of specific view, and our role is to build community. Our whole perspective is to bring people together in a human analog format. Bringinghat is really in these unique retailers. The consumer wants to spend their time and differentiate the different places. There isnt as many resources for the small retailers who do not have access because of restriction of capital. It might also be restriction of resources. We bring together 50 of the very aboutetailers, usually 510 units in size, and we bring exchange ideaso and concepts with retailers run the country who are really pushing innovative ideas. Just imagine that edens has operations in laces like washington, unit market operation in atlanta, miami, as well as boston. , they selected you, youre going to tell them how to make it all happen . Youre doing well. Tell us about your business, and how you got to be on this gq list . Funny enough, it seems like it happened overnight. I have been doing this since i was about 15 years old. I came to new york in the early 1980s, and went to work for a nameless catalog cap the Dutch Company in new jersey that turned into one of the greatest opportunities. You always wanted to be in this . Always. I loved clothes, and i love people, network convergence, and that is what we are acting today in our shop because what jody alludes to is the blocking and tackling of retail that is missing today. What would be an example of Something Like that . Having the right sizes, colors, fashion, what . Fantastic point, being in stock, a huge point. At lengths to be in stock. Also didnt care of the customer that they are not used to. We have a saying inside of the shop, hugged them with your eyes. We want to make sure that when a person comes in they feel like a million bucks, and they are the the focus. Exactly. You have developers in the retail you manage. How you make sure that someone is going to come in with a great aoduct, and if they open store and they dont have customers, you cannot figure out why . And that ever happened . Never happened. Our paradigmed instead of looking at driving sales to drive time. We want to win the time war. At how do wek inspire our community to come together, 3. 5 trips per week about five for our five hours a week. Design of our places, and design of the retailer. It has to do but retailer. It has to fit the design of him and his product or equipment has to be couple of mentoring. It has to be complementary. We do the demographic studies, the traffic studies, and we see where the traffic is, we dry the parking lot and see what kind of nameplates are in the cards. We are looking for places in a little bit different than others, a cultural crossroads. It will be where will the hep stars from brooklyn, that the guys from the other Upper East Side will come as well. Armanicannot ignore the this is taking up all of this. Some people will take a picture, a look online about see if they can find it less expensive. How do you deal with this . We are going to win in the wallet. If our spaces make you feel good, you want to spend your time there. Rate merchandising, and then engagement. Where the sales actually happened, whether it is in a record mortar base or when they go home back to our website, we feel like our retailers are winning. It is really the time that people spent. Does that information about maybe what happens online, and maybe crossreferencing with the zip code, that that end up being something that jodie can access . It depends. We are not in one of jodies centers today. We will make that happen. No problem. The cool thing is that the centers we are currently in are very small centers. But, they are also very important in a cultural perspective. If they were more sophisticated in their data gathering, they would be used to go handinhand. It is not an oar, it is an and. Where is your nearest location . Houston, texas. I want for you to tell people about this event that is coming up. And anyone come . Is by invitation only. Year, we have had this now for a couple of years, we limited to 50 of the hand selected best in class small retailers. It is called smart, the art of retail. They really have access to one another and to really invest in the industry. Thank you very much. Ofie mclean the president mashburn, the chairman of mashburn. The red carpet allows for multiple winners, including closing designers clothing designers. Time for the second mystery guest clue this is taking stock on bloomberg. I am pimm fox. Taking home the oscar for best supporting actress, she was also helping the fashion house rather score a win on the best the front carpet. Outputting celebrities that traveled the red carpet. Howard hogan , is also the author of fashion, law and business. What is the connection between lawyers and what happens on the red carpet . No idea thered was a legal agreement that went on. It is funny, vera wang has said that outputting celebrities for the oscars is a gamble of the highest order. It is right up there with a guess. Not only do have to worry about designing something that matches, works, is not going to be radical, you ought to be worried about the celebrities bailing at the last second. Over the recent years, number of celebrities have done just that. They change their mind at the last second. T famously, and happily and hathaway was scheduled to wear valentino, and switched to brought up. They just decided they wanted to wear other close . Exactly. When a design team spends up to a year designing, sewing, perfecting it for their ic sometimes releasing press releases about it, cannot only be embarrassing, it can be a disaster. Many design houses compare oscars to fashion week in new york. Agreement,e legal contract signed between celebrities and the fashion houses, to where the particular clothes. The winner, last night, just give us a description of what exactly will that inspire . What time do business are we talking about . Sometimes celebrities are not willing to sign contracts about what they wear. I do not know what hurt her deal was, but she was bragging about how she worked personally with prodded to develop her own style. I think that is something that the consumers can identify with and relate to. Even if they do not want to buy that particular down, it will make them want to look for product. Is that a continuing trend . That the celebrities will get involved in the design it becomes a focal point of the selling and merchandising . It to pens on the disposition of the celebrities. In a world where marketing is not only who is wearing what youre think of a budget was tweeting about you and who is advocating you, getting celebrities involved by whatever appeals to them is going to be the key to getting and making sure they wear your fashion on oscar night. About the mens fashion. How does that affect sales . What is a meme for new celebrity endorsements . What does it mean for new celebrity endorsements . There have been some pretty outrageous maens where in years past. Is theems to be new more colors being represented regularly. Velvet. Ite, to theyre going to be more color tuxedos worn to prom across the country. Retailers will want to get man color comfortable. Track thessible to connection between what goes on at red carpet and social media world, and then what gets stored throw sold for High School Proms around the country . I do not know that anyone has done a good study of the 121 1 analysis. 1 to but there is no doubt about it, teenagers want to look like theyre hollywood idols. Decks heod to see blue does at the prom next may. 1wood agreement look like . What how much when a celebrity star get paid to wear a fashionable dress from one of the top fashion houses . Just to give you one example, Charlie Theron had many of her records exposed to the Public Record because she got into a very public lawsuit who had paid to wear her watches. For wearing a competing watch. In the lawsuit, we saw that there was a payment of 82 million for the entire term of the contract. 82 million to be a watch spokeswoman . Exactly. For a fullfull year, not showing up at the oscars. They saw a Million Dollars in a differentwearing watch on a number of occasions. Do they keep the clothes . Some do, some donate them to charity. Some who are not as famous have to return them. Thank you for being with us. Coming up next, my mystery guest is going to be revealed. The final clue my mystery guest is here, and im no idea who it is. My producers have divided us with some hints. Fish to philly, house to miami. 15 start from the New York Times. Guest. G out our mystery great to have you here. Qa for being here. Batman says you would be at home. You have anything to do with garden city . I do. I know the New York Times gives restaurant start. S. Yes i do. Are you a good mixed doubles player . Excellent. You are featured about playing tensions tennis. Youre a great memory. You are the gotham restaurant. Friend you are alfred. Yes. I know a little bit about your history. You finished first in the Culinary Institute . Right, a long time ago. I spent a year in france. Then it took over gotham in 1984. 30 years this month we are celebrating our anniversary. Congratulations. Over those 30 years must make some dishes that are classic things. Then the taste change. Can you keep some of it the same . The food needs to evolve. Dishes thatlot of stand the test of time, but to stay vital and interesting, you need to be constantly evolving and changing things. We mentioned philadelphia, and also miami. I recall that you are responsible for creating the new restaurant that went into the hotel in miami beach. That is right. Why did you choose a steak restaurant . I think they wanted a steak house, but they also wanted a gotham bar and grill. I told them i would do a hybrid between gotham and a steak house. You to flee of composed dishes, but we also have the great steaks. You have a lot of people to help you covet you have to have an okra strut people to compose with orchestra of people to compose with. It is a big deal. A are going to kick off with 30 Year Anniversary dining series. I asked a bunch of my chef friends to help out, and we are creating five weeks of menus. There you go. Is there any chef you have not worked through . That has not gone through your kitchen . They are meaningful to the restaurant, have not gone through my kitchen. They are meaningful in other ways. In april, were going to do a big 30 Year Anniversary gala. Again, it is a very exciting celebration, a lot of chef runs their friends there. Is very moment you would have done something differently . I think what has kept gotham bar and grill so vital is because i truly love what i do. Love it every day writ you have a cast of patrons, customers, and colleagues that feel the same way. We are great to be in new york city. If you had the one meal at the very end, what would it be . Duck. Ing that is right, you like it from chinatown. I do, from other places. Thank you very much. Is 56 minutes that the arc of that means that it is time for on the markets on bloomberg. One hundred 53 points, the Dow Jones Industrial average lower. The s p 500 a slide of 13. Nasdaq dropped more than 30. Live from pier three, welcome to bloomberg west where we cover the future of business. Coming up, put a on this. Silbterview with ben ermann. Find what he wants to say. Googles private terminal is a step closer to taking off. Estrogen has started for a new terminal to