Nest executives. Plus, the perfect suit design for you. All that and more over the next hour. But first, headlines with cristina alesci. Nike posted its earnings after the close. The country the Company Firstquarter sales that dropped. They gained a percentage last quarter. Platforms allow dealers to get different prices on the same securities in a 40 trillion market, according to a person with direct knowledge. The sec wants to understand why brokers sometimes lock their rivals and clients from seeing some of their prices from municipal, corporate, and other bonds. Symantec has fired president and chief executive officer Steve Bennett and named board member Michael Brown to lead while the Company Seeks a replacement. Those are your top headlines. Thanks. Just about an hour ago, we got the results of the latest Bank Stress Test from the federal reserve. All but one of the 30 largest banks had enough capital to withstand a deep recession. The loner, the science bank bancorp. The science for more, im joined by frank keating, the chief executive of the american bankers association. The groups membership represents 95 of u. S. Banking assets. Thanks for being with us. What is the result of the stress test . I think it is very good news for the american borrower. It is very good news for banks. In the last five years, american banks have doubled their capital. This was an extreme stress test. It would be as if you and i were on treadmills at 70 . Literally, going up the matterhorn. Time all 30 of the regional banks were measured. 29 of the 30 past. There was one that i think needs to, apparently, take a look at some features. But that will be resolved. It is very good news to have varying substantial capital levels in the American Banking system. Governor keating, youve had experience in government at the Treasury Department. Youve worked with president bush. Youve also had experience as the governor of the state of oklahoma. Any chance that the 70 treadmill is going to be a slowdown so that banks will be able to lend some of this money out cap the you know, pimm lend this money out . You know, pimm, they are proposing to do this every year. The 50 extreme, collapsing of the stock market, is that likely to occur . Housing levels of 2001, is that likely to occur anytime soon . Who knows . But it is good to do stress test. I think it they will look at the features were they did well or need improvement and use that. It is very good for american borrowers and for american banks that want to lend. We just need to get the economy going again. I wonder what things you would describe as being necessary for that kind of economic growth. Youve had a background not only in politics, but also business. Obviously, what is important is to give confidence to small business. Two thirds of the jobs, as you know, in this country are created by small business. Weve heard it once. Weve heard it 50 times. There can be that some reasonable certainty to the tax levels and regulatory levels , that would be huge. The nextl be moves in five years in terms of the debt and deficit. The debt doubled under george w. Bush and it has doubled again since president obama has come in. All of that is unsustainable. Small businesses on the hiring side pull back and say, if the government cannot pay it bills it spills, then maybe i need to hold off on hiring the cannot pay its bills, then maybe i need to hold off on hiring. They need to come together and address them. Governor keating, at the Treasury Department you had the responsibility for the alcohol, tobacco, and firearms department. Youve also had the oversight immigration and naturalization issues. I wonder if i could throw you a curve ball. Vladimir putin and president obama have been tossing sanctions back and forth. I wonder what your perspective andbout naming individuals singling them out, whether they be americans or russians. It depends on who the individuals are. To have the russians retaliate and put john mccain and harry reid on their list, i mean, that is really risible. If youre going to go after individuals, go after individuals who are thugs and bureaucrats. By trimming their sales, you will have, hopefully a profound impact on the chief executive on the other side. Obviously, the options are limited here. Did afterjimmy carter the soviet invasion of afghanistan. The mujahedin, the wheat embargo, he really went after it. Everyone thought that jimmy carter was a wet rag president. Up, i hopeto ratchet we can ratchet up where it makes sense, and we can change behavior. Because where does this end . Is mr. Putin inches to go back lithuania, latvia, estonia, bulgaria, hungary . If you really serious about putting back together the evil empire . I hope not. You, franko thank keating, the ceo at the american bankers association. Also a twoterm governor of the state of oklahoma. For more on the sanctions regarding the ukraine and russia, lets stay in washington with our chief will chief washington correspondent, peter cook. Forthng back and sanctions, is this escapade escalating . It is escalating once again. They laughed at the last list of people targeted by the u. S. Sanctions. They may not be laughing quite as hard at the list the president unveiled today. He designated 20 more russians with asset freezes and travel bans. The Group Includes 16 government officials, and also on the list for the first time, a bank. It is russias 17th pig bank. Biggest bank. And they are targeting entire sectors of the russian economy if Vladimir Putin moves beyond crimea. The preferred outcome of the sanctions would not only have a Significant Impact on the russian economy, but could also globaluptive to the economy. However, russia must know that further escalation will only isolate it further from the international community. , for theso significant first time the sanction hit list includes russian business leaders, people seen as close to about near prudent close to Vladimir Putins inner circle. Of thethe chairman russian railways. He has been a confidant to putin and they are neighbors. Group volgo group cofounder. Putin said himself that himself is an investor. And then the 17th biggest bank in russia with 10 billion dollars in assets. The reason it was targeted is the is because its the personal bank for senior russian officials. In this move, it freezes them out of the financial system. A big step. Are rumored to be targeted by the u. S. Government, but this is the only one for sure so far. We know what the United States has done. What about russia yet are they responding to this latest round of sanctions with some of their own sanction . The First Response is to ban u. S. Officials come a of nine americans that can no longer set foot on russian soil. The list of names is pretty familiar. They are critics of Vladimir Putin. John boehner is on the list. So is senator john mccain, as well as Senate Majority leader harry reid. They are being bipartisan here. Democrats and republicans. And mccain joked that he will give up his siberian spring break trip because he can no longer go. For a lot of these members of congress, its a badge of honor to be on this list right now. Are saying officials more retaliation to come. I dont think it stops here. But thank you very much, peter cook. That storys going to keep our attention. Howng up on taking stock to build a worldwide empire, and ice cream empire. I will talk to the chief executive of breast ors brusters realize cream. Today marks the first day of spring and with at least the hope of warmer weather around the corner, Ice Cream Stores are gearing up for their busiest season of the year. Cream has over 200 stores around the world. By jim sahene. You cannot get away from it, can you . I started in 1986 with tcby. I switched gears and went to ice into with brusters thousand two. In 2002. And not only that, but you became the owner of the company, right . Right. What is it about brusters that attracted you . It is by far the best ice cream in the stores today. And the reason is, we make it fresh everyday. Every store, everyday makes fresh ice cream. What goes into the ice cream making . Manufacture the mix, ship it to the stores, and they put it inside an italian ice cream machine. And we hand had hand add the ingredients as we make the ice cream. And these italian ice cream machines, are they expensive, exclusive . They are not exclusive. They are about 2000 per machine and each store has two of them. Do you have to calculate potentially how many people are going to be coming to the story echo to the store . It all depends on the demographics. We determine where our core customers live within the marketplace and we try to get as close to them as we possibly can. Do you like owning the store so you can control the quality . Or do you work out something with franchises . We are all franchises. We have three companies doors and the rest are franchises. And the company tests new concepts and flavors . Yes, it helps keep us grounded. We do test a lot of new products in our store as well. And what about expansion . Remodeled orst reconcept is our stores, if you will. A brandnewlaunched concept in savannah, georgia. It are great ice cream, but going back to our early days, we are including softserve frozen smoothies. Real fruit all combined in one location. You bet. And you have a favorite flavor . I have several. Today, we brought white hurdle, which is vanilla ice cream, caramel, and pecans. It is absolutely amazing. And our hottest new flavor is sea salt caramel. Where do these trends come from . Sea salt caramel came from the franchise stores. Really . A decided this was something the customer wanted and they went out and experimented . We get many of our great ideas from our franchisees. Yes, they experimented with it, the customers loved it, and we tested it. It has been a hottest new flavor in a long time. How do you measure success any ice cream business, by volume . How much do you sell . Does aboutage store 310,000. Is on therage, that highend. And then we look at comp sales over the prior year. I know that people will be looking for this now, and it might not even last out the hour. Thank you very much, jim sahene of brusters ice cream. Coming up, a restaurant is empowered is not powered by food and location alone. Its all about the people you hire. Inside the menu of charlie byrd to my next. This next segment may be the only way you can get into this restaurant, at least for now. Its one of the hottest in the country, and if you want a table, you better book a month in advance. Its charlie birds, and its here in manhattan and we spoke with chef ryan hardy about the challenges that he faces in this small to bigeks series. Charlie birds was a dream that took a few years to come to fruition. I just really wanted to cook really good food really well. One of the things we realized right away was our most valuable asset was people, and finding that was the biggest problem for us. In new york, the line cooks or the dishwashers have the advantage that they can go and cherry pick the places that they want to, because there are so many restaurants out there. When we opened the restaurant, we had to figure out how to work for stations, and the relief to cooks. We had one dishwasher who would show up some days and not others. And suddenly, a cook did not show up. We found ourselves scrambling. Wasassistant manager mike washing dishes every 15 minutes. And when he was not over there, i was over there washing dishes. That becomes a real challenge to be able to run a restaurant kitchen without employees. We realized we had to look at multiple places to find great team members. We need to look at other restaurants and talk with other chefs. It took us a while to really build a core, that family. Motherinlawy my the pasta is made by my motherinlaw, a 72yearold woman from natalie. I. From napol we were cooking until 3 00 in the morning to have the red the food ready to go for the most 100 people showing up at our door. This was something that really meant a lot to us, but then to the team members it was like, wow, this is not just a job. This is a family that we are working with. That made all the difference and it came out in the food. People could taste it in the food. It was an amazing Success Story for us, almost overnight. Next guest knows food and he knows about finding good people. Julian medina is the chef and owner of seven restaurants, including his newest. Not one to shy away from or taste, he food has been incorporating a jewish mexican menu for the passover holiday. Lets talk about the restaurant that you have and how you came to produce this kind of fusion of food and flavors and ingredients. How did this start . Well, me being from mexico, i came here to you nor to new york about 18 years ago. And my passion is food. Which isache, mexican. It is very exciting for me to open it. What were some of the challenges to get people to rethink mexican food . People love mexican food. It is the number one growing cuisine all over the state. It was very important for me to open a next and restaurant and help people understand all about mexican. But it is not just mexican, because im looking at pictures of matzoh balls and various matzohf things made from. Maybe you can explain this to people who are not familiar. Of our tradition, being mexican and jewish. We incorporate old cultures. Like now is both cultures. Like now is coming up with passover. Pressedy own hand tortillas with matzoh meal. Variation onferent that. Is this also part of the tradition inside of mexico . Or is this something you have uniquely created . In mexico, there is a Jewish Community that is big. But i created all the dishes here. I incorporated the cultures. I think it is just great that people can enjoy and have a seder also as well as a restaurant. I mentioned it is not just about selecting the food, but selecting the people you work with. Running seven restaurants at the same time is like balancing plates. What are some of the requirements that you have for people who want to get interested in this business with you . First, to be excited. Either you love this business or you hate it. If they have the passion for the restaurant business, that is essential to run a successful restaurant business. What about trying to get the right kind of supplies . Isause not all matzoh created equal, and not all fish is created equal. How do you source these things . With the extension of the restaurant, we have been trying to build the market. We have been picking up our own ingredients. That makes a difference. A lot of people want to know not only what to do if they want to make guacamole, but how do they make it consistently great . A ripe avocado, thats what makes the guacamole, basically. Whatever you want to put in it or rounded, it doesnt really matter. An avocado that is right. I will have to go picking with you. I would be glad to have you. Thank you, julian medina, the owner oftolache and six other restaurants. A market that is 631 billion. But this is taking stock on bloomberg. Im pimm fox. Ight to the headlines lets go to cristina alesci. Sales of existing homes in the u. S. Fell in february to the lowest level since 2002. The slowdown reflects a rise in borrowing costs, rising home prices, and harsh winter weather. A u. S. Strike has loosened restraints on an American Affiliate of the Japanese Bitcoin Exchange mt. Gox. Track some ofs to the currency to see where it goes. Providersng broadband to speed up streaming for users. Comments are made today in a blog posting by netflix ceo reed hastings. Those are your headlines. Thanks. Smartphone technology is here. Next lab designed and wifictures sensor driven enabled learning and programmable thermostats, as well as smoke this smoke detectors. January, it was announced they were being acquired for 2 billion. Joining me now for more on the home architectural digest, Vice President and publisher guilio capua. Thanks, jen woman, for being here. We started off saying Something Interesting before you came on. If you go back to 2008, 2009, i would imagine that the ed pages in a magazine like architectural digest were pretty thin. Luckily, weve always had a strong brand, but we saw a huge dive after the recession. A lot of our core businesses are selling highend products, but small. It has been a steady recovery in the last five years and this is the first year where i would say there is universal optimism in all sectors of the Housing Market in terms of recovery. Universal optimism in the Housing Market. Maxime, i want you to comment on this. This is enthusiasm for the things people want in their homes. A few years ago, we started with the thermostats in october, 2011. From apple. Rs come we have a guy that knows a lot about design and connected devices. He is a great leader with the huge attention to detail. Youve got a background also in this world of thinking things. I noticed, for example, if youre an iphone user and you are trying to sink what is on our iphone with what sync what is on your iphone with what is on your desktop, you are the person who makes these connections. How do you make these connections with the technologies that nest has . Does it show up on a smartphone, a computer, tablet . How does it work echo how does it work . We have devices for all of them. Nook and check the temperature, increase the temperature of the thermostat. Smoken also check the alarm. If anything goes wrong, or if there a leak of Carbon Monoxide will get to, it your phone or tablet to tell you something is wrong. I wonder if you could describe the demand for these kind of products that you see, and for the intelligent wired home. Concept. General it sounds great, but it may not be something that everyone is familiar with. It is something that we are seeing coming to the Tipping Point right now. You referenced it earlier, but i believe it is about a 5 billion is this today. By 2017 is projected to be over 30 billion. What do you want talking to each other . Anddont want your fridge your oven to be able to talk to you, but the one device that you want to know remotely, what is the temperature echo weve had a brutal winter in new york and if you are away and there was one of those crazy storms and your power went off, you would want to be able to check in and see. From a design perspective, the products have to have great design and make your life simple, not more complex. As far as that goes, making the actual products has been influenced by the use of technology, whether it is some kind of custom design for your kitchen, or whether it is a oneofakind sofa or a limitededition lighting fixture. Is the Technology Driving the design . Or is it really just a response to what the consumer wants . I think it is a little bit of both, for sure. Consumers always want great design, but they do not always know what great design is. Its up to the manufacturer to show them the way. And depending on the product determines how Much Technology you need built into that product. There is Great Technology built into fabrics today where there are they are completely waterproof and can be indoor or outdoor. In. E is technology coming the consumer did not say i want that, but they are driven there when they see what it is capable of. There is a need. I wonder if there are some security devices that could eventually detect an intruder of some kind. What other kinds of information do you find people want with this interaction with their home . A lot of people want to know what is going on in their home. One of them is definitely more concealed. Know ifhey do like to there is an intruder in the home. Today, it is based on the webcams ever or the Home Security systems. One of the key points of nest is that it is operated using a wifi network. It is not someone calling you on the telephone. It is a wifi enabled device. That is correct. We build wifi right into our products right from the getgo. Unlike the competitors, there is no additional box. On your your ceiling or wall. You can add it to your account and you can see it. Predictedtect time when people will be able to adjust the aperture in their home, save money, conserve energy, as well as be able to do all of these other things, like adjusting the lighting at a certain time of day. They can already do that today, actually. They use different devices and you have to cobble it all together. Anotherve announced program. The companies that do that can actually start interacting with our products. Your car knows youre coming home and can tell your thermostat that it should start heating up your home. I guess, if you had one right now, it would tell us that the architectural digest show is coming up. I wonder if you can give us details of how people can being gauged with it and no more. The show is open to the public. A place you can find everything from interesting furniture, oneofakind products, luxury kitchen and home products, and also see seminars and discussions. We had a seminar earlier today on the smart home on the smart phone. Design andt of great youll be able to check it out and interact. We talked about the ad pages back in 2008. What is the add picture now in 2014 . The picture is really strong. There is cautious optimism out there. But when i speak my client, we do business in luxury lifestyle. Everybody is feeling confident about the future, but taking things at a measured approach. Well done. Thank you very much. Architectural digest Vice President and publisher guilio capua and maxime veron, nest product director. Bloomberg businessweek is out with this design issue. Its on newsstands now and is available with the app for free on your iphone, ipad, or android device. We are all connected. Coming up, 15 Central Park West is one of the most powerful addresses in the world. We will hear some of the stories about the rich and the famous who call that the lindholm. Buildingall that a lien home. This is taking stock on bloomberg. Im pimm fox. If the walls of Central Park West could talk, they would have some interesting stories to tell. It has been the home of some of the most notable and wealthy new yorkers, and globetrotters. Current residents include lloyd blankfein, yahoo cofounder, jerry yang, bob diamond, and dan loeb. The famous address is featured in a new book entitled house of outrageous fortune 15 Central Park West, the worlds most powerful address. Michael gross, and he joins me now. Thank you for being here. I want people to understand that you seem to have a penchant for real estate, because youve written a previous book on real , and now this one. What is it about real estate that attracts you . Its a window through which you can tell history, sociology, anthropology, a little bit of everything. And its a great way to write about rich people. What i love doing is writing about rich people in america. Why is it so interesting . Because of the amount of money they are willing to spend on the residence . How much money is involved . My favorite number. There are 37 households that are alternative investment managers, and their firms manage 437 billion. Basically, a Large Company country is being run out of one block in manhattan. When you think about that, it boggles the mind. You can learn about people and live,y they choose to present themselves to the world. Its not a shrinking violet that lives in a high profile building. Lets talk about some of the individuals. I will give you some names and you can give us some detail that is featured in your book. Lets start off with carl icahn. The book actually opens with carl icahn, because he and dan loeb got into a duel over to penthouses that they both wanted to combine and both wanted to buy and combine into this largest and house in the building. Only carl icahn wanted to bargain. And dan loeb write a check. When carl icahn found out that dan loeb had beaten him, he let loose with one of the ethically with an epic tirade on one of the developers, cussing as if he was in vietnam in 1968. Lets move on. Denzel washington, a hollywood actor. He is one of the poor people in the building. His apartment only cost 13 million. And he only and he got a discount, because with a nod and wink, he allow the developers to say that he bought an apartment in the building, which was one of the big turning point. New york is always about coop apartments. Coops or clubs that dont just let anybody in. And when you come down to who is the worst, people of color and actors. They announced to the world this building is different by announcing Denzel Washington had brought an apartment. And it is different, because jerry yang, cofounder of you who, also bought an apartment. How does this coterie of people find Something Like a 15 Central Park West . It is something i liked compared to a dog whistle, that only the richest human beings can here. And when they blew that whistle, they came around mike baying dogs. Like baying dogs. There was a shipping error, son of the richest man in israel. Goldman sachs, we all know what Goldman Sachs is. Most of them came through Goldman Sachs. They were either executives, clients, or just people connected to the Goldman Sachs dog whistle. The Goldman Sachs dog whistle. What about the actual building itself from an architectural point of view . Are the apartments noteworthy in that regard . That is a condo pastiche that reminds people of the gold coast coops of the 1920s. Like an emery roth building. More importantly, rosemary o ken delano. These have always defined luxury in new york. They hired the great postmodernist architect to do a building that hearken back to those great Old Buildings that simply are not built any more because you cannot build them like that anymore. But inside, its stuffed with all the modern conveniences, plus my its a condo, which means is not a club, which means is not defined by rejection. The book said that, in you mention that many of these people are very good neighbors. There was a comment, i believe about the chief executive of Goldman Sachs, lloyd blankfein. He is a good neighbor. He is a warm, nice guy. Im lucky enough that i met him once at a Cocktail Party at 15. For a guy that has been perpetrated often as a vampire portrayed as a vampire devil, he is really a heinous guy. These are your neighbors. You are not living with he is really a nice guy. These are your neighbors. You are not living with Goldman Sachs. Can you imagine barbecuing on iteris and swapping stories over the fence . I think it is a cute barbecuing on the terrace and swapping stories over the fence . I think it is acute image. I cant wait for you to write that. House gross, author of of outrageous fortune. Next, we will interview the gentleman behind the suit retailer behind indochino. That is next. X the price for a custom made suit to measure may not be as expensive as you think. Thanks to my next guest, you can even have it made and delivered and you dont even have to set step out of your home or office. He is the cofounder of indochino. I want to understand a little bit about the business of making a suit. You can go into an apartment store and get a suit. What is the herb is of having a custommade suit what is the purpose of having a custommade suit . The cofounder and i were both in college and needed to buy a suit. It was tough. You were in vancouver, canada, right . Yes. And your cofounder was there looking for a suit and you could not find one. We stuff we liked was too expensive and the stuff we could afford it now looked did not look right. Thought, what would be the easiest way this could be done . We came up with custom clothing online. How did you do this . I understand it has to do with 10 key measurements that you say individuals can take themselves. You can go to indochino. Com and go through personalizing your garments. Picking all the customizations, the lapel, if you want a vest. And then you go to the measurement process. It guided through the video. You can do it in tape in 10 minutes. And then we build it out of our facilities in china. We custom make it and deliver it within three weeks or less all for 449. You the have to ask quality question. We talk about whether the suit is sewn or fused and what the lining is like and so on. How do you assure the quality and what kind of quality are we talking . Our story big part of and what we strive to do. We actually dropped out of college and moved to china. I lived there personally for about 2. 5 years postop michael funder is still over there. We wanted to be on the ground, in the details figuring it out. And weve been around now for six years. And weve been able to grow to scale and invest in quality in the way others cannot. What do you know how many suits youve made so far . How many youve sold . We have over 120,000 customers. 120,000 customers . 130 countries. Lex and how do you end up holding this coterie of customers . Is it by Online Marketing . How do you connect with them . You dont have a store. We do, in some ways. For mostoss accounts of our growth to date, but we do also have a tailor. We move from city to city. We are in 20 markets and in the u. S. We will have a retail shop that we set up for about 10 days. A guy can come in and we will measure you and actually build an outfit for you. And then you swipe your card on one of our ipod touch apps and it is completely seamless, as if you bought it online. What about the fabrics themselves . Are they coming from places like italy as well as england . Or are the fabrics also sourced somewhere like china where it is less expensive . We invest in the quality over the brand name. What we have found is weve offered italian fabrics, but weve also found some of the chinese mills are producing some of the best fabrics in the world now. Because so many are fed so many are manufacturing in china now. You are able to get their quality for a better corp. Better price. And his 449, is that complete with everything . Or are there additional customizations that make it more expensive . All of the customizations are free. And we pay for shipping. A full refund. It is zero risk. Is a starter suit . A charcoal suit, you can never go wrong with that. Thank you very much. Yle vucko, of indochino it is 56 past the hour. The Dow Jones Industrial as one of 100 eight points today. The s p 500 gained 0. 6 . The nasdaq gained a quarter of a percent. Im pimm fox. Thanks for taking stock ear cup good night. Taking stock. Good night. Coming up, bloomberg west with emily chang. Live from pier 3 in san francisco, welcome to the late edition of bloomberg west, where we cover the Global Technology and Media Companies that are reshaping our world. Im emily chang. Our focus is on innovation, technology, and the future of business. These leaves and investment in a tangle. The paypal founder will be joining us later on. He is weighing in on carl icahns leaders proposal