hamburgers? >> unfortunately, yes. the usda is projecting meet cost to be up about 3.5% this year. in january, boneless round steaks cost the most on average at the retail level since 1980. pork, for example, consumers pay about seven percent more than a year ago. it looks like it will cost more at the grocery store. >> thank you so much, elizabeth campbell in chicago. we are on the markets again in 30 minutes. "market takers" is up next. ♪ >> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. admitting failure. the college board changes the sat again. collegehis part of the business needs another look. >> football frenzy -- soccer. a new shoe to kickstart the big

event in brazil, the world cup. and iconic italian team thinks about a sale. the big business. >> hiring freeze. tomorrow's jobs report looks like it could be awful. why jack frost might be the most important player in the american labor market. good morning, thursday in new york city. you are watching "market makers," i am erik schatzker. >> i am stephanie ruhle, jack frost -- i hate you. out there. we're going to take you to the newsfeed. top business stories around the world. the u.s. imposing some sanctions in the wake of russia' s oteri moves in ukraine. the obama administration issued bans on individuals threatening ukraine's sovereignty. ares of costco following,

posting a quarterly profit that missed estimates. costco cut prices to attract shoppers and that hurt. being cuts coming at staples, the world's largest office supply chain plans to close stores in north america. staples faces competition from retailers such as amazon. usa might be off the trading block. the ceo of deutsche telekom told analysts that a recovering u.s. economy makes the sale less likely. bad news for softbank, they have been interested in buying the u.s. wireless carrier and combining it with its sprint unit. i want to bring in jeff mccracken. what is the punchline? say is he did not really that a lot of this has to do with regulators. several weeks ago, softbank and sprint made the tour and met

with doj and sec regulators in d.c. make a presentation that sprint and t-mobile ought to come together to compete with verizon and at&t. >> they will have a chance because number three and four are so far behind. >> even if you merge them, they are still behind. regulators do not buy it. that has more to do with why t-mobile and deutsche telekom by giving a stiff arm to sprint and softbank. >> where the comments from the deutsche telekom ceo a surprise? more open about it. people thought he was still try to engage with softbank and sprint and see if there was a way to calm up with a deal that would appease regulators. are tryingsible they to keep options open? instead of saying anything that could be perceived as too aggressive, he wants to go light on the regulators in perception terms so nobody thinks he is trying to push too hard. possibility.

he wants to signal to shareholders, listen, there has been a lot of noise. a lot of discussion about a merger. nothing will happen first or second quarter. nothing is imminent. it is an expectation game, letting shareholders know nothing is coming now. >> if regulators are pushing back -- how do they read what regulators are saying? is the rj saying it is is not going to happen or is this a dating game? >> the regulators are pretty happy, they blocked deutsche telekom from selling t-mobile to at&t a few years ago. they feel like they have a stronger number three and stronger number four because sprint and softbank can together and t-mobile came together with metro pcs. problem is that many of t-mobile's gains, john legere's t shirt, the whole deal. it is magenta.

gains are coming at the expense of sprint. it is a war of attrition between partners. neither of them wins if they are going to be part of the same company. ironic or call it whatever you want to call it. they need for those two companies to perform more poorly before they can convince regulators they should come together. the share prices of both our way up and more profitable. whether it is be months or years, they will need bad performance to convince regulators they should come together. >> thank you, jeff mccracken partying in new york city last night. he still woke up early to give us the latest. head of our deals team, jeff mccracken. >> from one potential sale to another. one of the biggest sports brands in the world, ac milan is currently owned by sylvia berlusconi.

people familiar with the matter say berlusconi has hired bankers to solicit bids. cristina alesci broke the story. cristina? ac milan, we do not appreciate that in america. >> i do. >> how much is this thing worth? >> we are talking about an estimated value of $950 million. onlyremains to be seen, we know the value when there is a sale. this is for an extraordinary brand, a team that has not been performing. of missingin danger the regional championships. that could take a big bite out of revenue. it is a team in need of turnaround. ofwhy is it -- is it because the distraction of italian politics that berlusconi has not overseeing the team's success?

>> all of the teams in the italian we are somewhat troubled. part of it is that these teams have not been modernized and have not gone as global as they can. >> and italian industry that has not been modernized? the mainy, that is problem. these teams have to be more global in their reach. the real growth will come from asia. that is why we have seen an theux of asian buyers into italian teams. another team based out of milan, group ofs sold to a indonesian buyers. that has caused the valuation of these teams to go up. yesterday, manchester united's valuation went up. >> man u is public? good benchmark for evaluation. soccer, unlike american football, is a global sport.

valuable.at makes it you cannot export the nfl the way you can soccer. >> and a sense as to where the buyer might come from? the asians have been spending money on soccer clubs. oligarchs, russian oligarchs love soccer, too. >> they own two teams in the english premier league -- chelsea and another one. we could see any deep-pocketed investors stepped in. three years ago, un-american -- >> do you need to be deep pocketed? >> to own a sports team? >> to own a soccer team. >> how do you do talk attack to how- how do you do p -- deep do pockets have to be? >> an american ask hedge fund or bought roma. >> do we know why berlusconi is selling? >> we do not know.

informally this team has been on the block for the last year, scouting offers. the news is that lazard has sent out what it is calling an extended teaser with detailed financial information about the team. it has gotten a lot more serious in recent weeks. hosting a party and wanted to recruit women, having soccer players would help. what do i know? >> great legs. i walked into that. >> professional soccer players and parties go well together. >> thank you. >> our deals superstar, cristina alesci. here we go. from early to rio -- from italy to rio.

nike introducing a high-tech shooter that they say will revolutionize soccer. we heard the same thing about a speedskating uniform in sochi. >> he's been called the s, one of theetf' most in full and shall bankers and exchange traded funds. he will be here after the next commercial break. you're watching "market makers" on bloomberg television, we are on bloomberg.com and apple tv. ♪

>> welcome back to "market makers." i am stephanie role with erik schatzker. are among the

fastest-growing investment classes and finance. the market has doubled in the last four years to $2.4 trillion. i would like to introduce you to mr. etf, the man behind the etf market, reggie browne. he is on the cover of the latest bloomberg markets magazine. senior managing director and head of etf trading at cantor fitzgerald. down, ite are sitting is like danny devito and arnold schwarzenegger. to us about the etf business. in the u.s.,etf's two $.4 trillion, it is investors getting asset classes easily without going through large institutions to get exposures. if you look at what has happened of the last 21 years, 90 issuers. on 90 exchanges around the world. it has been a phenomenal success for the retail investor. >> it is easy today to feel like it is unstoppable. what are some of the challenges

and hurdles in its way? >> etf's are now covered by every index. the next inflection point will be managers. >> it is already happening a little. >> slowly. if you look at the traditional long only asset managers, they set out to game passive etf's. they are wanting to get in now. a hurdle is how do you put an active strategy in an etf wr apper. >> how do you put it active strategy in an etf wrapper? >> why is it harder than with a mutual fund. >> a mutual fund is nontransparent, etf's are transparent. for transparency. active managers traditionally havee more than 2%, etf's

50 basis points less. you have pressure points. are wildly popular among some groups of investors. have notvestors, etf's broken into some parts of the market. insurance companies, pension funds. godfatherou do as the and the gatekeeper to popularize etf's? the debate --ways activist investing, passes over active. we are seeing more adoption by insurance companies and asset owners. how can you deploy them efficiently and look at the costs associated with treating etf's over other vehicles. last night i had a conversation about swaps fosource etf's. trade today,

tomorrow or five minutes from now. one of the hurdles is education. there are people who do not know what an etf is. and annsion fund insurance company would understand the product before a retail investor. >> it is not their focus. education is the forefront of their industry. going into an insurance company and talking about the deployment of etf's in strategy is what i do for a living. i see a lot of opportunities in the u.s. and with canada and europe, israel. looking at asia. opportunities to educate a client base about etf's. >> what about the talk that etf's could become a weapon of financial mass destruction? >> or buffett derivative style. >> people talk about the potential etf's have to do that. there are these exotic etf's

that allow you to magnify leverage and can be truly dangerous. what do you do? >> truth in lending. tell. they are investing in. read the prospectus. >> people are never going to read the prospectus. we are in situations now people are getting sued over subprime. read the prospectus, we have been saying that for years. >> be smart. mutual funds that trade winds stocks change. you can buy and sell them rapidly. you have got to know how to deploy the tool. >> can you get behind a multiple leverage etf? not. my business, we do if a client asks for exposure to a triple leverage etf, no problem. thelso launch etf's into

marketplace. i am responsible for about 30% of etf's in the us. i am hesitant to bring out a leveraged etf. there is risk to be a distributor to the marketplace. >> people were hesitant to get involved with cdo squared in the beginning. you are hesitant today but what if we are sitting here a year from now and we are not talking about travel leverage --about triple leverage and looking like 2007. >> folks in washington are going to the guardrails around issuing those etf's. there are a couple people working on how to fix the structure around leverage etf's. there is a reset of those etf's at 330 and then there is a gamma effect. the way they are priced in the marketplace, they have a tendency to behave in a manner that full stew not understand. >> what about trading?

etf tradingbiggest desk on the sell side. >> we have a place in this industry. >> with modesty, reggie. do you believe there is a kernel of truth to the notion that etf's can help exacerbate market moves? just by their existence, more liquidity. -- the samecourtesy criticism in a single name cdo? a big advocate for -- when you do not have the ability to do your own research, you buy an index. because of that, correlations have not gone up. the fundamental analysis of a single stock company has done by

the wayside. research is not that important. the full asset class behaves as one. that is what has caused the massive moves. are listed on asian securities in the u.s.. they have opened up during u.s. hours. if $10 billion trades in net buy u.s., therein the is $10 million to buy in asia the following morning. we will move the market exactly where we sold it and cause the equilibrium. it is a window and activity for the next day. >> no accident they call you the godfather. thank you for joining us. senior managing director and head of etf trading at cantor fitzgerald. get the latest copy of labor markets magazine. this guy is on the cover. >> you are so kind. >> shares of staples heading

down. bloomberg goes "on the markets." ♪

minutese approaching 26 past the hour. time for us to take you "on the markets." a quick snapshot is what is going on at the broad markets. the s&p 500 up point 25%. stephanie is smiling, a green day. >> i love it when the markets are feeling good. >> jobless claims have something to do with this, they fell to the lowest level in some months. that is maybe a preview of some of the news for tomorrow when we see the jobs report. >> adp was bad. >> it is a mixed picture. news reportedp on

profit and sales that topped estimates, fourth-quarter revenue was more than $23 million. when you talk about all these companies that get hurt by bad weather, a grocery store -- everyone rushes to stock up. they are feeling the positive effect. >> staples, single biggest retailer of office supplies. >> that was easy. >> down almost 15%. ron sargent says he had a plan to reinvent the company. investors are thinking what took you so long? staples plans to close as many as 12% of north american stores, two hundred 25. shave as much as 500 million dollars of operating expenses, 10% of their budget. >> when you think about going to staples, it is the perfect store for online shopping. i do not need to rows. >> they now have 500,000

products online. customer whoples will use staples forever. i never go in a store. >> would you buy those projects or just go to amazon and order them prime? >> we will be back. ♪

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> blame the weather. across the u.s. it has been a record-breaking winter. we fill it in new york city, folks in georgia and texas have felt it. the weather is being blamed for weak economic data and signs of a lack of job creation. tomorrow, we will find out what the weather had to do with job creation in february when the labor department reports jobs. former labor advisor to president clinton and ceo of blue star strategies is with us

from our d.c. bureau. here in new york city, mike mckee. conversation with you, karen. everyone trying to get a sense of how much impact the weather has had on jobs and the rest of the economy. the fed agrees. what do you think? and will continue to have an impact. bit of research. in the last 50 years, we have had 52 major weather events. 5 of them have happened this winter. that is a huge pressure on the economy in the u.s. it is impacting all the sectors that we know. the obvious ones -- construction, hiring. business conditions. just in my small firm we have postponed hiring interviews three times because of the

weather. that is just anecdotally what is happening. i think that will play out. interesting point. not just people unable to get to the work. companies. story for are you hearing situations where you had to put off hiring you would have ordinarily done? >> absolutely. we would have brought someone on in january. that is two months. by the time we get interviews done, we are a small firm, the multiple effects of that. business conditions. in washington dc, i don't know --ut new york, margins landscapers all over the city. that is not happening. that is a 30 day delay. we are talking about employees who are casual or contract laborers. publicimpact across the

sector. schools, take a laugh. you have the impact with teachers. what people are forgetting is you have a's rights impact on the teacher's aides, the custodial workers. to day whom are day laborers. the school is shut down for three days, they are not bringing them back the last two days. that is a week of employment. >> how much of the lost productivity, how much of the lost work hours can be made up? we seey jobs will created in april? maybe a bounce back how much is lost for good? >> in terms of the public sector, since the economic crisis and coming through the recovery, the public sector has been shedding jobs. that has been a consistent drag on what this recovery has seen

in private sector growth of jobs. that is one consistent drag that tedo not think is impac by the weather. the harm is increased because of the weather. we are all in search of where is that month where the externalities do not matter? job report.clean we are not there yet. we are simply not there yet. i think marge is going to be impacted as well by the weather. maybe in april. the first quarter -- we are .5% impactably half, this quarter on jobs. talk about external factors every single month.

is the jobs number starting to matter less to the markets? we were talking to richard fisher and he said it is more about more data points. morning, do you have interest rate traders sitting at the edge of their seats ready to hit stop, go, or yield. has beenody knows it affected by the lender. they will be looking at that last. , this morning, bill dudley said you have to look at of labor market indicators. hard to pull a lot out of this report. the establishment numbers and the headline numbers are affected by the weather. the household survey and unemployment numbers will not be. i still have a job i just could not get to work. gives period of time it you an idea. a good point is that unemployment compensation numbers we saw this morning does

not relate to february. it tells you that companies are not shedding workers. things are not getting a lot worse. >> karen, one of the stated goals of quantitative easing was to stimulate job creation. of course, with externalities, it is hard to see. do you believe there is a possibility, taper, underway now that appears to be set to continue, will it have an impact on job creation? less quantitative easing will impair the ability of companies to create jobs? is very complicated. i think it is not about one thing anymore. it is nott discussed, about the headline number. people are much more sophisticated in terms of the overall employment report. easingink quantitative

is gradually taking -- being taken across the months. it is going to have less of an during its it did announcement, for example. where you had a market reaction. i think quantitative easing is built in to the market now. and jobnt, however, creation, i think is less effected by quantitative easing. there are other policy decisions prove the private ittor's sense of whether should or should not hire more employees. aree policy decisions things like whether the government decides it will invest an overall infrastructure, for example. that has more of an impact on

whether construction firms and engineering firms are hiring them the quantitative easing. >> maybe one of the reasons we have seen the said perceived quantitative easing. karen is ceo of blue star strategies. michael mckee as well. goal for the world cup. hoping a soccer shoe will revolutionize the game. "market makers." ♪

>> welcome back to "market makers." i am stephanie ruhle. nike is a leading sponsor of nearly every athletic event in the world. it will have a major presence at the world cup in brazil. they are national -- they are also the national sponsor of the

team, how fitting team usa. designed a new cleat specifically for pro soccer players. i spoke with trevor edwards, nike's head of brands, from barcelona. they sponsor barcelona's team and they have star players. take a look. product.a flyknit they came from simple insight from football players that said they wanted their barefoot with cleats. feel,es an incredible touch for the ball and great traction so they can move around. we are really excited about this new boot. it creates a new standard in terms of performance. >> how important is this for you? when you sponsor teams like barcelona, it is an apparel licensing deal and you have players like messi who wear adidas.

you are sponsoring brazil and the world cup, you have your poster boy on the team wearing the shoes. how big is this for you? >> that is amazing. when all the stars lineup and you have the opportunity with a team like brazil that has such a storied history and the most winning team in the world. and then you have a great player who is going to do amazing things. it really puts all the pieces together. we are really excited that that allows us to drive our business and connect with consumers. big enough?et brazil, argentina, spain. you have a lot of adidas teams, germany, not nike sponsored. this year we have 10 teams in the world cup.

we are really excited. we have got brazil, the u.s.,, england, france, holland. great teams that are playing. we have got incredible players from run out up -- from reynaldo to neymar. we are excited about the opportunity. teams youtop four only have one. how much of a risk is that? team can win. you never know what is going to happen. every team has got an incredible opportunity to win. we are just really excited about the opportunity you get to show great products on the greatest athletes. the entire world is watching, that is what we are excited about. we allow ourselves to win with consumers through that.

we are confident about going into the world cup. >> we just saw the team usa home jersey. we know how successful you have been in the nfl, the buccaneers jersey just came out is all about technology. there has been criticism that this team usa jersey is not decorative and us and is too boring. what should we expect which were away -- with your away team jersey. >> there will always be different perspectives about the jerseys. we work with teams to create jerseys that represent them. moreway team will be a bit expressive than the first kit. we feel very confident that the teams will look amazing and play amazing and compete on a high stage. we are really excited. we are talking about technology behind jerseys or cleats, it is about great tech.

happened with under armour and the speedskating uniforms. they were touted to have the best technology and then the skaters lost and it got blamed on the uniforms. how can nike not get in that situation? an enormous amount of time working with the players and the teams on our jerseys. on the actual football boots. this boot, we have had 3000 hours of testing on this boot. we tested it with many players around the world. we really put it through an incredible amount of scrutiny. it is a really important time when the best athletes and the best football players are competing at the highest stage. we have to get it right in those moments. that is what we strive to do overtime. we have had a lot of practice. we are confident about our ability to deliver in those moments. prettycleats are

awesome. mikey brands president trevor edwards. when we come back, no mandatory have and you do not to know vocabulary words, too bad. will the new sat be a better test of ability or just easier? ♪

>> welcome back to "market makers." we are excited about our show tomorrow. a celebration of international women's day. we will be featuring exclusive interviews with some of the most powerful women and global business. the lineup is stellar. .oo of walmart, gisel ruiz the founder of taskrabbit, leah busque. it will be even bigger than that. the ceo of nascar is joining us.

and cto of cisco. a must see, tune in tomorrow for a special international women's day edition of "market makers." we will let erik hang around. >> thank you. the agonizing rite of passage for college applicants. the sat has spawned a giant test prep industry. the company that creates and administers the sat is planning big changes. college board is getting rid of questions on obscure vocabulary and the mandatory essay. will the revamped sat be better for everybody? former dean of admissions at the university of chicago law school and founder of i.t. consulting. a new sat -- necessary? >> it is a good change. it is not released yet. the changes we have heard about sound like a good development.

>> what is it going to accomplish that. withoutrevamped sat vocabulary questions -- >> i love vocabulary. big words to my grave. an argument could be made they were focusing on the kinds of vocabulary people do not even using college. to the neglect of other kinds of skills that one does need. >> for the last 10 years, students who did not fare well on the sat and get into top schools -- now the board realizes we made a mistake? >> they made their last big makeover about nine years ago. it might be due. maybe the test should change as the world changes. i am glad i do not have to take it again. i think what students will find is that because the essay is no longer mandatory, that is one less thing they have to worry

about. the essay portion had been under a lot of criticism, including from schools. there was just not a lot of feedback. -- that it was measuring writing skills. that was due for an overhaul. >> if it is overhaul the way we do at, is it going to better job of putting the best students in the right schools? >> that is the goal. one of the things that we are observing about the test is that it might be inching closer now hasthe act, which a bigger market share than the sat. >> hold on. walk me through. >> more high school students took the act in the last two years of the sat. >> why? >> they are competing tests. now all the major colleges accept either. >> do they take both?

take one, both, some students do not take either. the sat is scrambling to take back market share. >> can they? if top schools already accept the sat or the act, the college board has already lost the war. >> there are still plenty of people taking the sat. >> they used to have 100% market share and now they have less than 50%. >> competition is a good thing. >> the college board is for profit. these tests are pretty expensive to take. college prep courses for the sat are expensive. they are changing what the test is going to look like, it seems like a bigger expense for families with kids who went to go to college. scramble to a mad do test prep for the sat. to their credit, the president

of the college board, one of the reasons behind this change is that he is trying to make it tra high school curriculum more closely. diminishing the need to get a separate education to take the sat. they are partnering with con academy -- with kahn academy, that provides free tutoring. providing sat test prep. overest prep industry is $1 billion. >> what is that mean for princeton review? kahnam a huge fan of academy, i imagine there will still be demand for private tutoring. is a lot ofre competition. it would not be competition without trash talking. the folks behind act say that college board is modeling its test after our test.

fair? isnot unfair, the sat nudging closer to the act. attempting to track more closely what people are learning in high school. i apply the -- i applaud the makers of the sat, abandoning the fiction that the sat measures aptitude. it is a learnable test, we want to make it easier for people to learn and not to have to spend so much money. >> they should change the name. college, itplied to stood for scholastic aptitude test. they resisted the idea you could train for it. even the people did. then they changed it. they quietly changed the a to stand for assessment. now it is just sat and it does not stand for anything. >> i think sats are down but does not stand for anything. >> a lot of high school students

will applaud you. >> anna ivey. ♪

♪ >> live from bloomberg headquarters in new york, this with erik makers" schatzker and stephanie ruhle. >> welcome back to "market i and stephanie ruhle. striking that the u.s. imposes travel restrictions on the ukraine, and lawmakers squabble over russia. >> they want you if you are one of those high net individuals who may want to spend. >> frontier foods. she gave a banking and now preaches the gospel of hunting what you eat, you will learn how to be a modern pioneer while

living in the city. i fancy myself a modern pioneer in the big city. ," i am to "market makers stephanie ruhle >> i am erik schatzker. good to see you. we are talking about what is going on across the planet. >> diplomats from around europe are gathering to decide a response to russia deploying troops in crimea. in brussels where the meetings are taking place. david, what have we heard from these meetings so far? stillthe meetings are going on and that is one thing i can tell you. we don't know how long that they will go for so they are still in their. obviously, it is clear that there is some division in how they deal with this crisis of the european union at the moment. but what we have had is the prime minister of the ukraine coming out. he held a news conference and it was very interesting to listen

to how he framed the crisis. that the struggle of the u.k. versus pressure, i also heard it was interesting with how he channeled ronald reagan when he was talking. >> mr. putin, tear down this wall, the wall of intimidation, and military aggression, and let's build up a new kind of relation. between the ukraine and russia. we are ready for cooperation, but we are not ready to surrender and be a subordinate of russia. let's -- what is really key here is that he says he is ready to cooperate but not ready to surrender. >> david, here is the thing i am wondering. that the presence of david cameron in the u.k. and angela merkel from germany, does this signal that perhaps the european union is willing to go further than some people thought, before this meeting was convened?

well, the fact that we have the european union leaders meeting here, and it is not just david cameron. we have every leader from the 20 members of the european union are all convening here. it just shows how incredibly serious the situation is. this situation, which is probably the biggest threat the european security since the end of the cold war. but there are divisions. this is also very clear and one of the interesting things is that during this meeting, we have president barack obama bansncing a series of visa and also laying the groundwork for more individuals that may be threatening the sovereignty of the ukraine from russia. that is exactly what some of the more hardline european union leaders oppose -- the baltics have been asking for, as opposed

angela merkel and david cameron, who have been arguing for a softer and more diplomatic approach. this will be very key and we should get the results in the next few hours. if, indeed thet european leaders will take their cue from barack obama and or makee the visa bans these kind of sanctions which willn russia, include these overtures. >> david, thank you for having us the latest out of europe. >> our friend david has the personal connections to the ukraine. his wife was born there and he has close family in and around kiev. you have seen him here many times and he is here with thoughts on the economic positions of eastern europe. david -- you made it very clear that you have no professional expertise. you have personal expertise and you do have professional expertise. analyst, macro market

of world economies, and we have seen -- we have seen crises breakout, throughout europe over the last few years and it does not -- it may inform the ukraine. what do you make of this? >> my caveat is a limited understanding in many of us have limited understanding, of the deep and long-term relations with russia and the ukraine. i guess i come away with the of, ihat people have sort call a lot of the people who have sent me messages on this, geopolitical tourists. they are walking into something they know very little about. >> are there very many people who know much about the ukraine? let's be honest. >> no, this is a place that has been left very much in the dark ages and has had little or any changes since the berlin wall came down.

a russian overlord for a very long time and people are still very -- oppressed. >> some people who think they know better are rushing to analysis, or perhaps trading or investing on the basis of that. >> that is what i would argue. >> isn't that a familiar problem? think back to the european crisis, the people who offered themselves as experts for what the european union would do. they predicted the collapse of the euro and where we are today? easterne closer to the bloc countries who in the past 30 years have come out from under communist control. an understanding that these people, with religious and deep-seated cultural changes in formed,s the ussr was and then unformed, this is very hard. but alsodvise caution, i don't think there is the desire here, as far as i know,

for some kind of grand plan to re-create the soviet union or some big plan by vladimir putin to do something crazy. i think the guy is a businessman. he has done great by his people in terms of turning russia into a business center, he has made a lot of money in the energy business and has created a lot of wealth. >> a lot of wealth for his people, the oligarchs -- >> a lot of this is about business. a lot of this is about where you will put your navy -- >> those are a lot of things that make vladimir putin and his cohorts really rich, but what is this doing for russia? >> you have all of these protests in russia. people are feeling somewhat oppressed there as well. it is not just in the ukraine. ,ou have a girl from that band running around and creating protests. >> has anyone ever heard a single song? >> you have seen the video.

they are the best branding -- geniuses. >> i guess what i'm saying is the idea of this becomes somewhat of an -- a macro -- economic consequence. -- a macro-economic consequence. what i say is don't be a tourist, don't be part of the negativity that comes out and focus on the macro situation with the european union and the u.s.. guess what, nothing has changed. >> tell us about your personal connection through your wife. >> i have been married for five years and i have known my wife or eight or nine years. i have been to the ukraine six times. >> what are the families saying about what is going on there? >> people want opportunity and this is a place where there is no opportunity. >> they want a place like poland -- >> you can get a degree and do your homework and go to school

and graduate, and do your job but you will live a very difficult life. >> there is no american influence in the ukraine? >> it should be there because the ukrainian dream or the american dream, the ukrainian that and the polish train, is more realistic? >> a lot of people who may have joined the eu have been able to make a change for themselves and their country if their country oppressed them in any way and that is not the case for these european countries have stayed behind. to go somewhere, that has been denied to a lot of people. that is what i see. i see a group of people with a lot of human capital, that are extraordinarily talented, and have a system that is run in such a corrupt way, that it onates very negative impacts long-term potential growth in the country. >> what are you most afraid of?

>> it is not the ukraine. >> in this situation? >> in this situation, what i guess i would be most afraid of is the unknown of a russian insurgency east of the ukraine, and ultimately has people raise up their arms in the west of the ukraine, and then you have the armies go at each other. but i just don't see it. these are the people who are the same religion, brought up in the same culture. this is not muslims fighting catholics, what catholics fighting eastern orthodox. they are all part of the eastern orthodox church and they are all from the same culture. and the same driving force. they have been together for a very long time. it doesn't strike me that they want to hurt each other. they want their freedom and their opportunity and they have been denied this. >> david, thank you so much.

>> that was great, thank you for joining us. >> the chief market strategist at jefferies. you should not be too surprised though what is happening in the russia has says that always felt this way about the former soviet republic. he said this to charlie rose. even --found it easy or they never found it easier possible to consider the ukraine a separate country. been -- there for several hundred years before that. so, the evolution of the ukraine , it is a matter that moves the progression. >> you can see all of the charlie rose interview with 8nry kissinger tonight at p.m. and 10 p.m. eastern. >> benjamin netanyahu says that

his scientists can help solve the california drought. we will hear from him in just a moment. >> and why is there so much secrecy in the copper market? we will go behind closed doors. " on yourmarket makers, tablet, bloomberg.com and now. watch all of our broadcasts on bloomberg tv. ♪

>> first, bloomberg. >> you are watching "market makers," i am erik schatzker with stephanie ruhle. the leader of israel says that they need the know-how -- benjamin netanyahu spoke about the california drought. he spoke with cory johnson. he said americans ought to take a look. >> i would like to get all of the venture capitalists and investors, and technologists come to israel and just see how

they can find not only soulmates but actually our entrepreneurs and technologies to cooperate with them. >> watch his entire interview with benjamin netanyahu at bloomberg.com and on the .loomberg plus tablet app >> you have heard the stories and we promote them all the time. print is dead, everyone reads on the tablets and smartphone. a true publishing superstar does not believe it, turning around the business model for magazines. he says the usual magazine model can be a template for the 21st-century. trying to connect advertisers with high impact individuals. he is here with a bloomberg exclusive. jason -- what is the model? >> it is converging print and digital. in my mind, print cannot live without digital, and digital cannot live without print. it is not about putting out a monthly magazine.

magazine,erly print to an audience that spends a quarter of a million dollars a year, or has a $5 million net worth. then we also go out monthly with a digital magazine that we leverage the top 2 million subscribers. high-endwe buy all the fashion products? >> yes, the sales price. >> a lot of people would say that print cannot survive without digital, why are you certain that digital cannot survive without print? wantou believe the people to hold some things? >> luxury brands today, and this they feel this time their brand is more controlled, in this environment, then being on digital. >> that this is real, this is not virtual in other words. >> this can go anywhere. they want this to be very

comfortable, and brands are similar, they are competitive with them in some way. >> what is your partnership with ? they do attract the high-end shopper. >> knowing that their audience is as good as they get, and they love to travel, and eating, food, home design and fashion, watches, you name it. this is a full on luxury lifestyle. that is what we have tried to do. itough their channels -- engages that digital audience because many people who are usually users, like to use magazines. >> do we need another magazine? i walk by a magazine stand every day and we have magazines, "vogue," "travel and leisure." most --n the webby for

best homepage and navigation and tonsture and we have won of accolades. >> is the list you are operating with what you want, ultimately? a lot of people think of this as a flash sales site, and not a luxury destination. would you not rather have, say, shoppers from a main store on madison avenue, or international -- > people who shop there -- >> exactly. you have the highs and the lows, and what we do is the top-tier consumers. are spending $700 or $600 million per year. we are more abarca -- what is more remarkable about this group is that six years ago if not more, they were cultivating their audience. i think that today it is hard to get those great, qualified

consumers online. because there is so much -- ))--nd a guilt customer _ thatcustomer, do you think one of the big companies the world, like the hearsts, want to acquire you? >> the main print companies that are more of the traditional set, what we did is we went at our house to build our house, and they are building their house within their house. and i think that the digital world, they have been at this game for many years. and a lot of print organizations are trying to catch up. >> is your engagement in authenticity killing them? i follow you on instagram. selfie,the king of the some of them dating back to 1992. you do. why do you feel you want to

include yourself in all of this? you are really part of the brand. >> it is interesting because in the early 90's and late 80's, capturing these people and places and nobody had cameras on their phones. for me, i have been taking photos since i was 19 years old. when i was walking around with a real camera. today, i went to this event recently, going out to l.a. for the oscars. party, and so many people were taking pictures. the authenticity, it is not as real as it was maybe in those times when people really could not capture those people at those times. >> being successful with luxury acquire,e luxury you do you think of yourself as a curator of people? onlyu have to curate, not does the magazine have to be original content, the audience

is priceless. today, it is a different world and you have to carry the content, and the platforms, to people off-line and online and you cannot just be a one-dimensional people anymore. >> but you actually cater to people. when i think of the best curator p. people, it is har you called lupita back in august. she was on the cover in august and i did not know who she was until six weeks ago. how do you find out had to curate the right people, the people that we care about? >> a lot of people want to know what is new and fresh and exciting because news today, if this is here or anywhere, you know a lot of times what is going to be on the cover of a newspaper. you know it is going to be spoken about the next day. there is a digital content being so alive.

so this is important, when you do print, to try to create the stories are going to curate people, and have lasting power and be more evergreen, and inspire and motivate people. >> jason, thank you so much for joining us. ellen degeneres is not the king of the selfie. this guy is. jason, the founder of visual or -- du jour. >> in a few minutes, we will take you to the cpac don conference. stay with us. ♪

>> you could call this the fort knox of copper. we are going behind the closed doors of the metals market. "marketry is here on makers" next. >> and how to be a liberal

pioneer. the chef who has literally written a book about this. we are on your phone and you know where to find us on demand, and on bloomberg tv. ♪

>> live from bloomberg headquarters in new york, this with erik makers" schatzker and stephanie >> welcome back to "market makers," i am stephanie ruhle. we take you to the london metal exchange, by far the biggest provider in the business but but also -- but also shows how long it takes for them to get the metal out of the warehouses. >> it is the king kong of metal trading. they trade over 17 and a half billion dollars -- $17.5 billion

worth of metals across the world. a producer like alcoa typically sells its metals directly to a buyer like anheuser-busch. but sometimes they make too much and must store their leftovers at an independent warehouse. typically companies by months in advance, but in a pinch, go to the lme and when the metal becomes available they take it home. some of that metal is not for sale. it is used in financing. the metal, will buy store it, and then sell it for a better price in the future, pocketing the difference. it is a combo kit business but one that is essential to the flow of metal around the world. alex is spending the day at the new york mercantile exchange, one of the primary metal trading places in the u.s.. we saw how this words, why is this so controversial. >> i'm talking about the london metal exchange.

if you order something from amazon you expect to get this and 5-7 days, but imagine if this took an entire year. that is what happened to some companies like anheuser-busch and americorps when they bought metal from the lme. some of this had to do with supply, a lot of this is tied to financing. even if you wanted, you cannot get it. but other comes from -- others come from a very gray area that has to deal with -- the warehouse makes money for every single day that the piece of metal is stored and the lme gets a one percent cut. very different at the cme or they don't take the cut. one of the biggest warehouses is in detroit, operated -- they currently own one and a half million tons of aluminum. they bring in $720,000 per day. the longer that it stays the more money that they make. money can be a powerful

motivator for a lot of people. >> what does the lme do during business hours? >> they will come back on the line. as a warehouse has a 50-day wait, they will have to bring out more than they take in. here,e interesting thing the lme cannot actually control this. their fees.se they can make up for the loss of revenue. and you have buyers perhaps competing for the same metal. and they are restricting how much metal they can release every day. if you and me want that kind of metal, we will have to bid for it. envirostarm actually get control of where they get their metal. buyers don't actually get control of where they get their metal. they have to pay extra metal to get their money out of detroit. have control over these situations and they all raise costs. from all the producers, like

alcoa, they are cutting back production so supply has become a little bit tighter. >> alex, thank you so much for giving us the latest. >> when we come back, a beauty contest for conservatives. that is former senator rick santorum at the seatac conference outside of washington. conference -- cpac outside of washington. he will tell you more, when we come back. ♪

>> first, bloomberg. onthis is "market makers" bloomberg television, i am erik schatzker with stephanie ruhle. do you want to find america's powerful conservatives in one place? many of them are in washington, a republican seeking a political career -- for republican seeking a clinical career, an invitation cpac is coveted.

does anyone seeking the nomination for 2016 have to be at cpac? >> it does, because of the grassroots and the rise of the tea party, this is where potential residents of candidates have to be. that romney was here in 2012. this is the crowd that really -- doesn't really go round with his politics as a republican. what you see here is a group that is really, really behind senator ted cruz. he is one of the speakers today and take a look at what he said he thinks the next president shall candidate should look like. >> as all of us are member, president dole and president mccain, and president mitt romney. those are great men and decent man but when you don't stand and draw a clear distinction, when you don't stand for principles, democrats celebrate. >> i think that ted cruz would not mind for president cruz to

be there at some point, his points allow very -- a library closely with this conference. it should not be about compromise are trying to meet in the middle, it should be all about ideology. and that may cause a problem for some of those mainstream republicans. for chrises this mean christie echo i know that he will speak a little bit later, candidate? viable >> i think the interesting thing, everyone is speaking to bridgegate. he talks in five minutes. even if this has not existed, if you want to be a 2016 candidate, if you want to appeal to the mainstream republican he has been having a very difficult time getting through his own --like south carolina, because of the individuals at cpac.

there was an opinion poll that came up this morning, that said that 30% of republicans would not vote for chris christie already. this is 2014, this is just republicans. ly would not vote for chris christie. he already has a lot of work to do on these people. >> who else is there, are there other people who may throw their hats in the ring for 2014 -- 2016? >> everyone you think it be here, paul ryan, rand paul who was the star of the straw poll last year, he was there. top conservative thinkers like george will, the american conservative union. everyone is represented. this is the big thing to watch. this is the straw poll. 26 people on the ballot and rand paul one last year. -- won last year. no.he be the candidate,

but people pay close attention to who does well in these polls. they are trying to take the lead -- and get one victory under their belt a couple of years before the campaign actually starts. >> thank you very much. that is phil mattingly, a white house correspondent covering cpac. a banking, she gave but this woman went to the back woods. meet the woman who wants to bring the pioneer spirit to your kitchen. it is next on "market makers," stay with us. ♪

>> you might say that she has gone from wall street to the wild. she abandoned the life of a lehman brothers banker to go back to the land as a chef. the same hours, but the same pay, not so much. at a restaurant she is preaching the gospel of natural eating, which includes killing your own food. she is out with a new book, "modern pioneering," then she

is with us. tell us about modern pioneering. >> this is about manual literacy, things that our grandmother knew how to do, and making this more accessible. deking fresh mozzarella from scratch on the weekends, or picking up the red line at the of a bottle at a party in turning this into a popsicle or bad therapy, things like this and having fun in the process. >> what made you change from financial banking to being a coleman there -- culinary pioneer in t? >> i wanted to get things -- get to things that were more real and lasting rather than the manufactured virtual-reality we all seem to live in these days. for me it was using my hands again, and really getting back in touch. >> who is your target audience? >> it is like me, modern women

who go on adventure getaways, they are busy professionals. they are doing more than just having a spa weekend. they are wanting to learn skills and get outside their comfort zone a little bit. >> and you aren't modern as well -- >> i hunt. there are a lot of male fans who like this because of the recipes that are that way. >> have you seen other people follow in your footsteps and recheck you in the last few years, and say, how did you do that -- >> a lot of women give their stories of vulnerability. personally looking for a way to unravel. it is really surprising to see a lot of young girls, as well, who look up to me and it is kind of a strange and unexpected possibility. whohat is ago from women look up to you and women who meet up with you and kill their own food.

>> i meet up with women across the country. those are the things that scare you a little bit, riding an atv to the mountains or fly fishing or hunting. and killing an animal and bring it home for your children. >> i love to fish and i love flyfishing. but i don't need that many of the fish i take him. i throw almost all of them back. with your playing food. >> i know this, if everyone followed your advice and went out with a rifle or shotgun and got a deer, or took those 3000 fish out per mile, there would not be any left. >> absolutely. that is what this is about. it is about getting back to the land even if this is your patio planter, or the fire escape. the idea is rolling up your score -- up your sleeves and getting back even in small ways. i don't expect everyone to hunt their own food but there are ways to be successful.

>> can we all have a garden? >> we can have a fire escape garden or anything networks for us, a back alley even worked. >> are you getting pushback on the importance of gulf control -- gun control, people who don't feel good about hunting? >> i don't, because i see everything through the lens of food, first i am a chef. it is not about the guns, it is about getting back in touch with the ingredients. this is really not a good thing. there are ways to get around all of that. ultimately, are you trying to celebrate? when you are trying to get back to the way that things were done before, is this because wild vegetablesirloom grown in your own backyard, they may be, they might taste better? >> they certainly do taste better, but this is more about

getting back in touch with who we are as humans. we are so focused on what we are doing in our fast taste lives, we don't know much about the world around us and doing things with our fingertips. things that are good for you, or delicious. i think it makes us better as membranes and better stewards of the land, and a better consciousness. >> what projects are you working on right now and what are they about? own communeing my in the middle of april, and it is so great to have these women comes who are strangers -- come who are strangers, and there is a sort of girl bonding. women who come together and have fun in the woods and also have great food at the end of the day. >> congratulations. >> thank you. >> georgia pelligrini, she was once a lehman brothers banker, and now she is a chef and an author. forhat will be all of it

," and today -- we have a celebration of women's day, and this year we are going bigger and better. i will let you know about some of the guests. we will be featuring them right here on "market makers," some of the most successful women in the industries. we have the ceo of walmart, ruiz whoelease -- started as a checkout woman 30 years ago. busque, iconic editor anita brown, -- tina brown, and we will also have the most powerful woman in force, the ceo of france, and the ceo of cisco who has been named one of the most powerful women in technology for the last three years. >> i would call this a "must

see" show. every show is must see. but this is must-must see. >> this is international women's day on market makers. don't miss it. >> when we come back, there talk about sanctions in russia. we will see what this is doing about a russian etf, something we have talked about on today's show. is on the markets. we will be back. ♪

>> it is approaching 56 past the hour. that means that bloomberg television is "on thyee

markets," i am julie hyman. we are seeing an increase in russia's etf as congress look to impose sanctions on russia. of --ith our equity rid derivative strategist. we have a lot of activity on this etf because we have seen a lot going on in the last few days that has been very volatile. the options on it, i would imagine there is a lot of volume. volume ins a surge in the options that are russia-related. investors play a directional view on the saga a routing as a -- corrupting -- interrupting -- erupting as regards to price action and volatility in these products. there is a high volatile, meaning uncertainty around the

situation and the price of ths ese options -- if you win by the projections of things that will heat up, this is getting more expensive. i also want to talk about a couple of news items today, and what we are seeing on them. staples and costco are shedding a number of stores and costco came out, uncharacteristically disappointing. we are seeing a lot of people looking at more downside protection also? >> we saw to staples earnings released, and what we see is the extension of a secular trend, which is been in place for some time, the decline of big-box retail. we have seen similar stories unfolding with best buy, radioshack more recently, who announced they are closing some 20% of their stores in the state. this is a kind of secular story includenow spreading to

names like staples, costco also had some disappointing sales today. and the obvious story is jcpenney and sears, which is somewhat similar. overis really a switch with internet and online sales that are hurting these big-box retailers. >> on the corporate debt side. people are coming back in. they are starting to see signs of turnarounds for big retail. are we seeing any optimism in the options market? >> again, we see a lot of volatility and things that look good as far as the turnaround lands go, we see that funding comes in and they are able to -- extenddit to these credit to these retailers and we have very fluid stories in regards to these stores. >> tomorrow is a big jobs report and interestingly, you are playing it by looking at gold

miners. tell us about this trade. >> we sort of engineer these kinds of events where we look at the past and what moves these various instruments and in relation to gold and equity. particularly, gold miners, junior gold miners in particular. the mood around the nonfarm payroll has been massive. >> junior means, what exactly? >> it means the smaller cap gold-mining companies. in canada and australia, they moves,particularly large around 3.5% on the non-payroll, with changes into paper and interest-rate expectations. we think that the evolving price that we could see by tomorrow it looks pretty attractive. and you canevent buy a weekly option off of that. >> what are you guys doing, exactly? >> there are a lot of flashes of

rates moving higher today, we saw treasuries were down, we have the utilities, the homebuilders are all down, and they are showing us that there are rates up and gold is also up, this is a little bit of a conundrum because higher rates are bad for gold and we have a little bit of a downside here. gold is more considerably in the minors. >> thank you so much. i appreciate it. we will be back in 30 minutes with more "on the markets." ♪

money."me to "lunch we tie together the best interviews, stories, and video in business news. here's what we have got. the prime minister of israel forging stronger ties with silicon valley and the golden state. that copper is sitting in a warehouse in tucson. we will take you there. your lesson of the day, the sat gets a makeover. will that make it a better test? it has become a challenge for a company building furniture. in motors,