I have watched this video literally fifty times to try and figure out how the scarf turns into a baton.
She pulls the baton from that building she is sitting on, then she presses the button and scarf gets sucked into the baton (or something like this...).
You also notice that right before that trick she moves her hand over her head(after she pulls the baton out)- thats because the stage's background is dark and its very hard to see the baton over there, and to make sure that audience wont notice that baton before...
This can also be tried at your home: just take black paper as a background and move something dark in front of it, then repeat the same thing, but with a white background. You'll see that it hard(er) to spot dark thing on the dark background than white one.
Sources: rumors and my own brain