live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> one billion dollars. toyota settles a long-running probe into a huge car recall 2009 and 2010 could will it be a precedent for general motors? >> ipo-palooza. filings up at a toward pace in 25th -- 2014 and about to get even hotter. we will take a look at some of the reasons why. >> the titan of truffles. meet the woman five-star restaurants go to monday want

one of the world's most expensive foods. -- you to "market maker know what? >> bleh bleh. >> rewind, good morning. great to see you, matt miller. i'm stephanie ruhle. >> shafter. i'm really excited to see the truffle piece. i don't like the taste or smell at all of truffles -- >> but i want to see it. >> it looks interesting. >> i was inside the kitchen at the four seasons and i like truffles, the way they smell and taste a not so much what they cost. time now for the newsfeed feed. hopefully we will get that right. top business stories from around the world. a little more than four hours for now, janet yellen hosts her first news conference as chair of the federal reserve. fed policymakers are wrapping up their two-day meeting, it's exciting. they are expected to cut another $2 billion from the bond buying program. up shortat fedex came

in the fiscal third quarter. i hope matt miller is listening to the world's largest cargo whatne it's -- guess they are blaming it on? >> bad weather. >> 2 lucky winners split the $400 million rise in the megamillions lottery -- sadly, not a spirit always know about the winning ticket is that one was sold in florida and the other in maryland. the sixth largest lottery prize in u.s. history. >> breaking news this morning out of washington. toyota will pay a record $1.2 billion to end a criminal probe related to the major recall 4 years ago. give us the details. >> good morning. $1.2 billion come at one of the largest penalties ever imposed on an automaker. it is not the price of the toyota motor corp ration has to pay to settle the criminal probe. settlementt -- the is 4 years in the making.

dates back to accidents and deaths reported back in 2009. the investigation was led by the manhattan u.s. attorney, examining whether toyota intentionally misled federal regulate us by making false or incomplete disclosures about sudden, unintended acceleration in its cars. the incident, as you remember, led to the recall of more than 10 million cars. hearings on capitol hill, lots of finger-pointing kit today that finger-pointing and, landing on toyota. the justice department and the department of transportation and the manhattan u.s. attorney announced the settlement moments ago in washington. attorney general eric holder said toyota treated what was a public safety problem as if it were no more than a public relations problem. simply, toyota's conduct was shameful. it showed a blatant disregard for systems and laws designed to look after the safety of consumers. by the company's own admission,

it protected its brand i had its of its ownd customers that it constitutes a clear and reprehensible abuse of public trust. response, they say they have cooperated and learned their lesson and cooperated with the authorities on this for more than a 4 years and have made fundamental changes, they are more responsive and accountable, and we have certainly seen that in the safety rankings pretty only lost the top spot as auto seller for one year in 2011, to gm. speaking of gm, the toyota settlement comes as its rival general motors is just getting caught up its own criminal probe with the same federal regulators and officials. it looks very much like they are closing one book in favor of opening another, and that book is general motors. toyota, eric holder says intentionally concealed information and misled the public and it has got to bring to my what happened with general motors, where they should've

done recalls more than a decade ago and they didn't and the problems links to this recalls actually may have caused deaths -- not just one or two, but dozens of lives could what are you hearing as far as holder and the department of justice looking into general motors? obviously, the government was the major shareholder there. >> right, so that, of course, we're just at the beginning stages of that specific investigation, that probe. the fact that they are closing this toyota pro, the timing is interesting, the fact that they would close this now would have won assume that perhaps they want to focus all of their intention now on general motors. like you said, dozens of deaths reported. the target incident had mounting debt as well -- the toyota incident had mounting debt as well. today eric holder struck a very stern tone. he did not mention general motors specifically but he did say that this case would set a precedent, that automakers can't

continue to act this way. we will see how this plays out with general motors. >> how can you not mention gm when talking about this"\ it just boggles the mind. anyone ask him about it? believe, is still going on but i had to run down here to do this. since i'm not listening to it myself -- but in his opening statement he did not make mention of this and i think that is because they try to keep these probes and cases separate. of course, that is the top is shown on everyone's mind. >> of course. yang yang in washington, thanks very much for that. of the biggestne comedies in the world, valued pharmaceutical, selling over 1500 products, including contact lenses, and teenagers favorites, skin care. it generated nearly $6 million in revenue last year. its main source of growth it isn't new drugs. it has been growing revenue by buying smaller companies.

whont to bring in the ceo, joins us from toronto. when i think about your r&d, two percent compared to 15% of others, you have a very different strategy. it is all about acquisitions. why? >> well, when we have looked at the return on research and for theent in total, last decade or so it has not been positive for the industry. we think a much better use of our capital is to buy products that are approved by companies that have approved rocks and grow that way. -- approved products and grow that way. >> what are you going to buy this year? >> i can't tell you. >> what is interesting to you, which areas? >> we look to compete in growth markets. companiesking at growing disproportionately fast or segments of the market, like ophthalmology, dermatology,

dentistry, that are growing faster than the overall growth rate of health care. >> what stages interest you the most? how early in development would you get in on an opportunity? >> if you are talking about r&d-type? >> no, i'm talking about acquisitions. will you look at something still in its nascent technological or pharmaceutical form, or do you wait for products that are more developed and proven? >> actually, we are looking for products that are close to approval or have already been launched. 's report a product this year, launching at this week -- we bought a product this year, launching of this week, a product that is approved but has not been launched. we also bought one that has many products that are approved that we think and grow more quickly

-- >> is a household name. where is the value proposition in buying generics that don't have those names? obviously, lower margins. generics,ere is pure like we see in the united states and canada, where no one knows the name of the product. in most countries the world there is branded generics, where they have local brands that cost 20% more than the generic, and those are very, very popular in many parts of the world. that is the area we are primarily focused on. >> we said earlier that you build your business through acquisitions. you are very outspoken about the fact that that is the right strategy. why is the public about that -- why be so public about that? >> is the right strategy for us. it is not for everyone. we believe that we should share a strategy with our shareholders

, so shareholders know if they like our strategy that they should buy us and if they don't, they should sell us. i don't know if i am outspoken. i just try to answer questions honestly. >> like ron paul. i like it, mike. you say you are not against it, my could what kind of r&d are you interested in? >> we do a lot for mission work. -- a lot of the formulation work. we have new acne medication that we hope will get approved. fungus, we for foot hope that gets approved. we have ophthalmology products. we have ones where we are taking not a huge scientific risk, so -- you have been inside big pharma only since 2008. you were a consultant at kinsey.

if i kinsey consultant was ant right now,e what would they say you are doing right or wrong? >> hopefully they will look at results and see that we are doing a good job in terms of organic growth. awfully they say that when we buy companies, we are not overpaying for them, we are doing it in a way that offers a great return to our shareholders , and hopefully they would say that we have the aggressive ambitions, and that is usually a good thing. >> michael, thank you so much for joining us. i could use that treatment could i'm pretty damn tired today. >> we could all use it. >coming up, a rough start for general motors ceo mary barra. she had barely moved into her new office before the new recall scandal broke out. criminalith toyota's

penalty, a lot of people are wondering what is next. >> also, the ipo frenzy. why are so many copies going public this year? ons is "market makers" bloomberg television and streaming on your tablet. ♪

>> welcome back to "market makers." i am stephanie ruhle. you know who he is -- mr. jeffries doubling down on the troubled harbinger group. canadian national corp., which in 2012,ffries' group will buy shares of harbinger. falcone has been good to leucadia so far, its existing investment jumping more than 50% since he bought it last year. it is atement, he says -

great fit with his core principles and investment approach. phil falcone, clearly obtained guy. people don't want to be invested with harbinger. they don't want to be in a hedge fund, they want to get the investments out, have not been able to, are locked in. he sells to jeffries and creates real liquidity and now they step in again but her member, -- remember, phil is not going to be the one running the show. what does harbinger do? consumer products and insurance. leucadia can help them on the insurance front. the book value on this companies $15 from $16 price. jeffries is cheaper than that. what can you invest -- where can stake of the consumer products company at

five dollars less than value? >> blood on the street. >> also, jeffries is the one who helped design and structure harbinger, so they understand what is behind the company. c -- as a lot of that lot of badc chi around him. people love to hate on phil. i don't know if he wants 2 people sitting on top of them, but it is a good move. >> yes. >> all right, there you go. now.ng at $13 right six dollars not that long ago. harbinger group, cell phone cohn in the news for a positive. don't see that often. asheville folk own entities for a positive. don't see that often. >> you don't see negatives for gm often. now the ceo, mary barra, comes side andproduct briefly ran hr, is in a bit of a hotspot. today's news about toyota has

not made her job any easier. we will talk about that next on "market makers." ♪

>> i do. gm chief mary barra might've thought she needed a few months to learn her job on the ropes. the company had the ignition switch scandal the cost at least a dozen lives -- or linked to a dozen lives -- and is led to the recall of 1.6 million cars could in total, they are recalling 3 million. gm allegedly knew about the deadly effect for over a decade but never reported it. now it is the target of a handful of government probes, multiple lawsuits. joining us with more is maryann keller, who runs a consulting firm with companies across the automotive industry, a legend in

the automotive industry. thank you so much for your time. this toyoda news this morning puts a different slant on what is going on at gm. what do you think we are going to see here? $1.2 billionined for criminal activity. is gm heading in the same direction? >> undoubtedly gm will have the same kind of investigation by the fbi and i expect general motors will cooperate with the investigation but the finding comes in for four years after the initial revelations surrounding toyota could we are not going to get news about the outcome of the criminal investigation or a fine for years, not months. >> why does this kind of thing takes so long? if you are at general motors and you find out starting in the early part of the last decade that there is an issue, and then you find out a few years later that it has been linked to death, why don't you elevate that, as we say here at

bloomberg, two executives at a higher level and get it taken care of? >> well, i guess the criminality would be if they did elevate it to a higher level and nothing happened. i expect mary is going to conduct an is conducting her own internal investigation to understand who knew what and what they did with that information, whether they spoke to higher-ups of the company, or dismissed it as not being statistically relevant. we don't know those answers. i'm sure she will find out. the important thing for her is to be transparent with government investigators, and undoubtedly she will be called before congress. this point her objective should be total transparency. >> does mary barra have new tricks in her bag? if the goal is to separate all the gm from a new gm, does she have the ability to do that? when she was promoted to this

job, one of the reasons that people said this woman lives and breathes gm, she has been there so long. >> does she have new tricks? you look at toyota today versus toyota 4 years ago, and you see that the company has survived the scandal they experienced could general motors is a little different because it carries with it the baggage of bankruptcy and the legacy of not particularly stellar products. it was recovering from that. she has to focus on the product side of the business and make sure that the good things that general motors has been able to look up -- the last 4 years -- has been able to accomplish the last 4 years continues. she has got to run the business. she has got to add this investigation and help her transform the culture of the company so that people understand they have to take responsibility, but at the same time she has been to focus on what is going to make general motors a stronger company, and that will be product. >> no doubt the products are

leaps and bounds ahead of what they were 10 years ago. they have such an amazing array to choose from, sports cars all the way up to sedans and trucks. it is interesting, the timing of this revelation. weyou find it suspect that get this revelation right after the government finishes selling off its stake in the company? you have to assume that ron bloom and steve ratner knew about this. >> mm, i would not make that assumption. >> ooh! >> i would not make that assumption. >> why not? there were the car cza -- they were the car czars. these are not stupid men. they were in detroit a lot. >> but this particular issue could have been limited to a very small number of people, and the car czars were primarily responsible for negotiating settlements with all the

creditors involved in general motors. i doubt they would have been involved in the minutia of what goes on in running a company. >> i understand running a company could look, if the themberg terminal -- if bloomberg terminal killed somebody, every member of our board would know about that, for sure. if the bloomberg terminal had a repetitive problem links to multiple deaths -- >> that's like a nightmare. that's like a horror movie. >> i realize people die in car accidents all the time, but at the same -- if the same problem is linked to deaths numerous times, doesn't the board find out? >> you are right on that. >> well, you're talking about -- i'm not going to be an expert on this, but the fatalities that ,ccurred over a period of time and whether each of these fatalities was linked to the same problem, i don't know.

i doubt that it would have reached the level of ron bloom. >> that is a problem in itself. the airbag didn't open, why not? i don't know. >> we will talk about this during the best part of the show, the commercial break. thanks, grant keller. ♪

>> live from bloomberg headquarters in new york, this is market makers in new york. >> welcome back. >> we are talking about ipos. ipo activity is exploding this part -- exploding this year. in the next few months, we will see one of the largest ipos ever. china's ali baba group could be worth more than $200 billion. i want to break down the reasons

behind all this with brad -- matt miller. he joins us now. brad, welcome. from your perspective, you have got to be feeling great. deals are coming, but why? >> 2013 was a fantastic and breakout year. we were just getting back to a more normalized level of ipo activity. there has been referenced to whether we entered a bubble or not. from the seats we sit in, in 2000, you are averaging five ipo's a week and 20 a month and that gets you somewhere between 200 and 201 ipos a year. fell off a cliff because of all of the macro issues in the market volatility. >> we are just getting back to normal. quest that is my opinion. a normalized level of activity.

i see there is a higher percentage of companies coming that are pre-revenue or pre-earnings. you dissect the amount of companies that of gone public, 42 year today, half of those are from the health care sector. most of those companies are drug development in space. they are burning cash. they have not received fda approval for their drugs to actually come to market. if you dig in and take biotech and life sciences -- science outside of the market, most are financing the company with traditional valuation metrics that lead me to believe -- >> you want profit growth to be growing as well. i started in 1999, when it was all about topline growth. people said not to look at the profit and just either shares and they will double after their debut. does it not feel at all like

the.com era to you? >> a few companies fall into that category. i cannot tell you their names. but i think they have a clear path to profitability. some analysts can look out to 2015 and do a model to come up with a current valuation. keene, i wouldm sound the alarm to doubt -- right now. too much could jargon. >> nike versus nasdaq. everyone loves to talk about it. we look at ali baba and everyone is waiting to find out who they will list with. from an investor perspective, does it matter? i need to buy milk every day and i do not care if it is from whole foods. i just need to know that it is fresh milk. >> it does not matter to investors. >> unless you are facebook

investors. then it matters. >> in 2000, there was a clear differentiation. you had a specialist on the floor of the new york stock exchange. it was a different way to execute and transact the opening of an ipo. with advancements in technology, similarities between the two exchanges have converged. quest the opening of an ipo. the new york stock exchange still performs a service lady did in 2000. that is when you have traitors working on the floor. quest that is true. there is still a specialist that nasdaq, but recently the has created a similar methodology in reference to how to open a stock. . lot of it has converged 90% similar. quest after the facebook debacle, they said, we should do it the way nyc does it. when i look at coupons.com go public and within an hour, they doubled in price, does it matter?

>> what happens when you have an ipo and he gets multiple times subscribed and all institutions get scaled back on their allocation? it creates a demand that if you need a certain basis whether it iso, the first day or within the first few days of an ipo because liquidity quickly dries up on a deal, there is a demand in balance at the open. it is more or less trying to figure out him the stock a time where you are matching buyers and sellers and figuring out where the opening cross takes place. it takes a little bit of a longer time with an open subscribed ipo because you have -- ait to figure out >> is it fair to say every deal out there right now is well oversubscribed? i feel like we are saying this deal and that deal is hot and it is every deal. >> a good point. we are in a time, a strong ipo

ofket, you have a lot companies sitting in private portfolio hands for a long time. they are coming public at a more mature stage in their life cycle. factors in lot of the overall market. you look at secondary trading volumes and they are down 20% year-over-year for the last three years. excitementty creates . it is the next phase or generation of a technology or a disruptive company to the overall market. as portfolio managers look at how to add new names, they are using the ipo market as a way to get additional new names and most of them are growth oriented companies. it is an opportunity for them to participate. >> has that excitement newnished at all from the pre-ipo market, the second market experience? >> you see few examples. you see a time where we see a facebook or a twitter or some of

these large technology companies where there has been an opportunity for credit investors to buy stock. there are some instances where large companies are coming public. historically, most companies under $1 billion and coming public between 150 and 200 million implode. there are aberrations out there as far as some of the ipo's. quest how involved are the issuers? funds many years, hedge and fast money, they cannot get involved in the process. companies want their deal to go into strong hands. traditional buyers and insurance companies. are we seeing that change and how much of a say do they have? is a great question. one thing that drives our market is money flows into investors hands.

weyou look back 12 months, have 10 months of positive flows into money managers hands and two months of negative. one thing we saw is a lot of money flows at the beginning of the trend were going into passive index oriented funds. as correlation has broken down, we were at one time running at .9 correlation. we have gone at a .3 or 8.4. picker'scome a stock market and that creates ,pportunity for investors active funds, to participate in that money flow. if you are a mutual fund manager, for seven or eight years, active managers, there is a high percentage of active managers outperforming the index because of that correlation. joining you so much for us. active managers earning their keep. brad miller is the cohead of equity markets at one of my favorite old places, deutsche

bank. >> your alma mater. coming up, the next-generation technology that may prevent another plane from disappearing. we will not stop until it is found. quest we will not. we will be back. you're watching bloomberg television streaming on your phone, tablet, and bloomberg.com. ♪

click a lot of people are talking about air -- how air contrast -- air traffic controllers are talking about that plane at least here in the u.s., regulators want to upgrade the air traffic system to make such a thing harder to happen. it is a new $42 billion system. lookingghes has been into it. how is next gen going to change things? systeme talking about a that was just going to be in the

united states. is expected to be within the next 5-10 years. a lot of questions are surrounding that. it is moving from a radar-based air traffic control system to a gps-based air traffic control system. it will lend itself to more precision and make routes more efficient, and air traffic controllers will be able to deal with three times as many more planes. would be a big moneymaker. here is the catch when we talk about the malaysia story. it still needs ground stations to receive those gps signals. about goingtalking over the indian ocean, or the gulf of thailand, it still would not work. >> many people said there are parts of the world that actually turn their radar off at night to save money. even if you have the system, it would not be resolved because people are not using the systems they have in place now. as i mentioned, if there is no ground receiver anywhere around the area and these

notions, air traffic control is not going to see it. that is flat out the case. but i will say moving into the future, some other countries, canadian air traffic control italy,, ireland, denmark, they have signed onto a system which is completely space-based. pole to pole surveillance. that is supposed to be up and running by 2017. constellation of 66 satellites run by a radium. that is expected to cover the globe. i spoke to the ceo about the malaysia story and he said with that system, yes, they would have been able to track the exact location. quest light is not everyone get on that rather than this -- just the tiny countries you mention? class a good question. has beenll you it considered and they are well aware of it and have been looking at it. you know there are a lot of budgetary and political questions and procedures they have to go through.

it is something they will look at. they are primarily concerned moving into nexgen, making the air traffic control system more safe and more efficient in the united states. i am not quite sure that has been a priority in the past. stories like the malaysia airlines story. >> nexgen is not really as good. thing, the nexgen system as it has right now does have major limitations over ocean. it could change and he could tweak. one thing i will mention, the system uses the same transmitter. they are very aware of the faa, which could be a huge customer of theirs. forould not be difficult them to eventually become compatible. they are the same gps transmitter that would be on board that plane. quest thank you. megan hughes in washington. >> when we come back, $1000 a

pound for a fungus. matt does not think so but i do. we're talking about truffles. we just do not want to pay for them. them becauseike they are expensive. we will meet the ladies. some of the country's best-known restaurants when we come back. you probably do not like diamonds in champaign. ♪

class welcome back. just consider the statement policymakers released after every meeting between the many causes, numerical thresholds, and, of course, the hinting of timing. there is a lot to interpret. way to view the wordiness. scarlett, you better not be making it down for us. it downam not breaking at all. we are counting the number of words in the statement.

easy with the help of processing. the increase in the fed's bounds the yellow line, both of them have been rising. strongly correlated. no causation here. do not think there is causation? you do not think as the fed blows up its balance sheet, and it decides it needs to talk more? trying to figure out what they are going to do next. lot ofe using a thresholds. in a statement, they will send out a threshold of six point five percent unemployment. then they will dismiss it and clearly. the firstinted out pressure leak by the federal reserve in 1994, 99 words. >> that is the first ever?

you have got maybe one third of one page. this is the most recent one from january 29. singlespaced lines. one and three quarters. to make it more difficult to read the leaves? the more words, the longer it is? >> or, you could say they're trying to be more transparent. allen was not exactly known for his transparency. to -- bernanke has trying tried to take the other way. the fed succeeds through 830 20 ninth toanuary send a message that tapering is not tightening. contorted.does it is this is something that grew over time. they added to it and did not take away from it. helm,yellen at the holding her press conference at

2:30, that may be an opportunity to streamline and simple five things and make it clearer. >> leave it to a woman to break it down and make it more clear. quest that is true. quest scarlett putting mike mckee out of business. will tell you truffles are a delicacy. they are costly to procure, involve an awesomely adorable pig, but they are highly heritable and do not last long. european truffles travel a long way from farm to a new york city table. trackthe last leg of the that is the most valuable and secretive. >> we need to run fast. ♪ >> this is the truffle lady. can you tell him we are coming

to meet us? this truffle came in yesterday night. as soon as they arrive, they want them. we have a tough schedule. restaurants want the delivery before the service. we have an appointment. ♪ different ways. we cooked them on eggs and pasta. smell it? i am ready for oyster now. unbelievable. they fill the whole kitchen. quest thank you. goodbye. part is you do get to go to the main dining room because we want people to see them while everyone else

goes through the back door. struggle -- these truffles will last us through the weekend. >> he says the price [indiscernible] >> they just walked in the front door one day and introduce themselves and show me what they had. we just went from there. >> thank you. hello. >> how are you? really good stuff. we cut those in the kitchen, the smaller ones. the big ones we want to show people. >> we carry a big value. not a problem to turn around. something that has a value but only if you have a company --

♪ >> is a never-ending job. >> there are not a lot of salespeople in new york city walk to the streets and to make .5 grand a day and wear leather pants. $25,000 a day and -- and wear leather pants. salespeople walking around with expensive products. class i will move on. are they doing that in bitcoin? this is extraordinary. you think about it and truffles on menus, it is a huge expense

to the restaurants. down thesel take mushrooms that are costing tens of thousands of dollars and they only last four days, they better know they will sell them. they do not want to be still having them on monday and come back. >> the guy over at bloomingdale's has truffle and five -- and fries. >> bloomingdale's? [indiscernible] -- seriously? e >> i will now move on. we will be back in a short moment. please stick with us. quest matt will put on his leather pants to a commercial break. quest coming up, one foot on broadway and the other on madison as -- avenue. we will talk about his new brand marketing company. stay with us for ray donovan. ♪

>> translating janet yellen, good luck. a few hours from now, she holds her first news conference as the chairman. we will tell you how to figure out what she's saying. quest the high-tech gender gap. why are more women not selling companies on silicon valley? more than just leaning in. a new role for striver. he has gone from acting to advertising, starting up a brand-new -- brand marketing company. he is so cool. we have them here for an exclusive.

welcome. i am stephanie ruhle, joined by -- >> matt miller in for erik schatzker. in honor to be here and there is a lot going on so i will kick it off with the newsfeed. the top business stories from around the world. jpmorgan agreed to sell its commodities. as $3.7 pay as much billion. the fed has said it might force lenders to get out of the commodities business. hence the move. point $2ll pay one billion to settle a criminal investigation into cars it suddenly exhilarated. the problem led to a recall of 10 million vehicles. eric holder says toyota will admit to wrongdoing and be subject to review by an independent monitor. home depot cofounder has apologized for comparing populist strategy and politics to not see germany. he said if you go back to 1933, to what hitler was saying in

anti-investor, anti-wealth kind of statements, he says he only wanted to discourage pitting one group against another and is sorry if his words were inappropriate. a long list of people who have made the same mistake in the last three weeks. -- whenu have iconic are people going to realize making hitler and not see comparisons is not good. >> especially people on the right. can, it is a real problem. quest that is what the media seems to think. moving on, the media also cares about janet yellen. she is making history yet again today. she wraps up the first meeting as chair of federal reserve and faces reporters at her first press conference like peter cook , who is going to be there pencil and notebook in hand.

what kind of news do you think she will make echo >> she will make some news. newsworthyesence is in and of itself. there, the first opportunity to pin her down on policy questions and questions about her sense and -- ascension to the throne, wall street is expecting changes and news. there is an expectation the taper will continue. they will also get news from the tonge and forward guidance more qualitative versus quantitative. we will perhaps get rid of 6.5% unemployment threshold when it comes to the fed funds rate going forward. we are also getting updated economic projections from the fed. this is often times a snoozer. as we get closer to the fed, it is executing its exit strategy and moving forward and up higher

in the not-too-distant future. >> willie also get an idea of what j yellen's -- we were come to when we knew what ben bernanke did. will it be telling? >> we have seen her already up on stage on these testimonies. we have a good sense already. my favorite description comes from a democratic republic, who bernanke,s like ben steady, smart, not exciting. she said, i appreciate that. thank you very much. she is plane smoking -- plainspoken. if she offers any changes in the communications strategy. could we, for example, here that she will have news conferences at every meeting going forward?

better sense of janet yellen, the presenter, on a global stage today. class isn't having a steady hand important when you look about ,ow the markets violently react the fact she is so measured, is that not a positive if you think about the health of the market? >> with the fed, that is certainly the view a lot of folks have. it is not exactly a big plus. a steady hand and the fact she has reiterated the policy strategies of ben bernanke so repeatedly, she will continue presentations strategies as well . calm and quiet and plainspoken. nothing huge. we have got speed bumps in the road. interesting and maybe she has a mop -- a wireless microphone like a game show host.

>> if you had more of a hulk hogan or a miley cyrus. her to not really want wear a yellow shirt and territory at the end of a news conference. i'm glad you do. just in case, be sure to bring an iphone and bring a picture. old-school pencil and pad. >> let's keep the conversation going. quest the council of economic advisers under george bush now serves as a senior fellow at the hoover institute. thank you for joining us. youre ask you about impressions of janet yellen'style. it seems she is not so far differentiated from ben bernanke. >> i've known janet for a long time. she was asay this but teacher of mine when i was a graduate student at harvard. we go back a long way and stayed in close contact. a terrific person.

you gave earlier about being steady and smart is accurate. i do not know about exciting. a great sense of humor. i hope she does not show it at this press conference. who willbe someone chart a stable path. the point peter made earlier is important. is, i look for a more qualitative approach, primarily because the focus ben bernanke had a little bit on some very specific numbers were a little misleading. i do not think it was because of dan's analysis. 6.5% employment target you are talking about? >> exactly. there are other things in the labor market relevant. particularly labor force participation. on ise i like to focus the employment to population ratio telling us the number of people working relative to the size of the working age population. that is the bottom line. the number has been very weekend steady for the past three years.

that is not consistent with the following fed employment rate. the fed knows that. >> is your take away investors need to stop hanging their hats solely on the job number and need to look at more data points? right. is as you probably know, i had a piece recently in the wall street journal where i focused on ours as well. lookingproblem with only at jobs is a does not give a clear indication of the amount of activity in the labor market. where youn example have to does people working full time at 40 hours and three people working at 20 hours. in that case, you afford from 80 hours of labor down to 60 hours of labor, even though the number of people has gone up. how to think about it. you need to look at overall employment. one of the unfortunate things about the past six months is that work has fallen rather than

sign up. janet is aware of these things and when she is giving a forward guide, she will take the larger picture into account. she is talking about another $10 billion reduction in qe. do you think it is a good idea to aper and get back situation where you can raise your view ofhough the jobs picture is so bleak? >> it is a good idea and there is a major reason. with a qeo continue policy, what you need to believe is first of all the labor market nothe economy in general is very strong. the second thing you need to believe his policies are objective. even the fed is a strong endorse or of those policies.

they are losing their power to do anything for the economy. they're looking to phase that distortingn-market way. >> janet yellen's thoughtfulness and experience has her in the perfect position. if we had larry summers in that seat and we are waiting to hear from him today, do you think it would be far more brutal and bold? >> larry is another good friend. he is a fantastic economist and a terrific mind and also someone when ithite sensible comes to looking at the economy. i do not know if he would have been different. than janet different yellen. both of them think about things very different and they would think about the numbers differently. i'm not sure about the situation like the one we have right now,

we would see differences. larry's style is quite different. if you had a chance to ask the question today, what would be? >> what would you ask janet? >> i do not think of it after anything. i think it is better for the fed to chart a policy that is not quite as clear. the view about forward guidance and its advantages are a bit overstated. the reason is this. forward guidance is another way of having a rule, like a taylor or other rule for the fed. it is saying, we will lock ourselves into a policy. that is fine as long as you continue to do that. as long as those rules tend not to be credible. i would not want her to get out there and make statements that the market might misinterpret that she would have to retract later on. she is cautious enough to avoid doing that. >> always a pleasure.

former chairman of the president's council of economics. in to bloomberg's special coverage of the federal reserve rate decision today and janet yellen's first news conference at fed chair. that is bottom line. onlinecan also watch it at bloomberg.com and can stream it on your iphone and ipad or any other android tablet. quest for the first time, i am allowed to interrupt him. we have breaking news. i will take you up to the newsroom. scarlett has the details. crossed.ust bank of america will cut jobs. this will take place across the coast. the chief operating officer global trading and investment banking decisions. this is according to people familiar with the decision. no numbers are associated with comedy jobs will be cut. the dismissals would affect

fewer than five percent of employees in these particular units. a spokesman had no comment on these reports. we should know the big wall street banks in general saw the revenue from trading and revenue ranking in all of 2013 because there is weakness from it -- fixed income training. up andust looking bloomberg industries points out bank of america held a better than its peers because it's fixed income revenue rose 16% in the fourth quarter year on year. even so, cutting jobs today across the global trading divisions. we will get more headlines out of that and come back to you. the head of that business, tom again, out earned the ceo. communicationough day if you think about this at bank of america. getsain rings the bell and paid over $15 million. once the check clears, he gets up on the floor and says, time to start firing a few of you

boys. >> a difficult conversation. argue this is why he gets paid the big bucks. i would not want to do that. when we come back, breaking through the boys network in silicon valley, we will talk to a woman getting that done. ♪

>> welcome back. it has been one year since sheryl sandberg aussies "lean d a new conversation about women in business. women start just three percent of tech companies according to research. a company is trying to change that. the ceo has launched an accelerator program for women .ntrepreneurs she joins us from san francisco

this morning. welcome and explain your business. >> it is a technology accelerator for women and minority entrepreneurs. support, we have services entrepreneurs can plug-in depending on a stage they are at in their business. class had he get paid? class a couple of different ways. we provide training to entrepreneurs. have equity portfolio like a lot of other venture capital firms and accelerators and incubators. class are their success stories you could .2 or companies we might know? we have a few different success stories but we are still early in the process. we started three years ago. , we raiseds stories one million round of funding. one point $5 million round of funding. a local start up in miami just close $1.2 million in a round of

funding. there are not why as many women in silicon valley as you think there should be. there has recently been a lot of talk about code writing click thatit girls finding environment difficult and even hostile at times. is this really a super necessary part of being a silicon valley arch menorah, writing code? anif you want to be engineer, it is a great thing. if you run a technology business, it is an asset to understand different coding languages and how to scale your business from a coding perspective and also a business perspective. personally, i think it is important for him to be involved in the technology industry for a couple reasons. the first reason is it leads to more innovation. a lot of problem death products

being developed in silicon valley, women are the biggest consumer user base. how could you really serve a and staffn your team is not diversified? class as you look back at your research and look after the entrepreneurs having trouble starting up, is there a specific roadblock for women and minorities you could point to standing in their way? >> sure. folks lookpedigree for when you are looking for a successful companies. some of it depends on education, where he went to school, level of education completed. class currently, men are going to better schools? >> when you look at computer science degrees, which a lot of prefer, it isally more dominated by men. when you look at technology and to bidders and accelerators, a lot of programs, the way they

are structured, many of them based in silicon valley, many of them based around the world, they are not necessarily the most conducive to women being productive. virtualtly launched a accelerator to make them more accessible. women do nots necessarily have to relocate and live here for 12 weeks like our 12 week program. they can come for a one-week sprint. we have seen more women getting involved with our programs as a result. >> good luck. an idea, a -- an initiative. i supported in a big way. thank you for joining us. this actor isay becoming a mad man. we're not talking about a role on the tv show. we will tell you what we mean coming up. he is here. ♪

>> i want to wait 30 seconds because people will tune in at 26 past the hour. ? they're doing so well. right now. the broader market.

smp and nasdaq, a mixed picture. new. almost nothing the volumes are down and everyone basically seems to be waiting to hear from janet yellen. >> i will take this moment to say the same thing i say every friday ever since i heard it said the first time. everyone is waiting for the fed reports to come out and the press conference. know how to react to fed statements. >> you are right first time and that is why it applies today. a mixed picture. in total, very little is happening. one specific name, let's look at fedex. it is cutting its first year profit forecast. fiscal third-quarter results fall below analyst estimates. i had to do fedex because it kills matt miller to talk about it. >> i bought a ford truck last month. ,n the first week of this month it is now three weeks late

because apparently ups delivers their trucks via train and the weather has caused delays. >> there is sleek outside this morning. there was. matt miller and weather delays. we will be back in a few. stay here. ♪

♪ >> live from bloomberg headquarters, this is "market makers" with erik schatzker and stephanie ruhle. >> welcome back to "market makers," i am stephanie ruhle joined by matt miller. >> a lot going on today. we have not had a chance to go out and talk with myra favorite reporter on the west coast. -- with my favorite reporter on the west coast. >> emily chang is not here. chinese companies the pair to list in the u.s. they fire for an ipo last week

and they have concerns about being able to comply with the strict u.s. accounting regulations which could be bad news for investors in the long run. we will bring in my second favorite bloomberg west person. we keep it real. >> i am very fragile and particular. >> tell us what the real issue is here. >> alibaba might be the biggest offering ever. we got a filing friday that really gives us a clue as to what the offer will look like. one of the reasons that they entered here and not at the hong kong exchanges because there are

appeals from different corporate governance. havekong said no, we must a one shareholder vote, one share, one vote rule, the u.s. said, it is ok. we can make something up. we have less investor protection. >> i wonder how much you can trust the things coming out of these companies. we have done so well with yahoo! and we are still looking forward to investing in alibaba at we have not seen the balance sheet. we don't know how many of their statements that they trust. we have not seen the filings from alibaba. these filings and i

have no reason to think we should doubt the accounting. one of the fundamental risks that are different about these stocks. this is the twitter from china. a very different corporate structure that the shareholders would be buying into here. you're not actually buying shares, you are buying shares in the cayman island holding company that holds a hong kong holding company that holds a chinese holding company. your rights as an are so deluded that they were not in the public filings. there is investor fraud, accounting fraud and you likely have no risks to pursue those. look at the audit work done by the auditors.

he wants in their filings that they might not be able to be auditing results within a year. there's a tremendous amount of additional risks. right now, no one seems to care about this. with a thriving market, these risks are far away. when the tide goes out, you can see they're swimming naked. there is a more concerning the fiscal market. everyone points to work should -- berkshire hathaway and warren buffett.

with referred shares and dual ownership structure underperform the market. look at what happened to companies like groupon or zynga. the founders maintained controls of companies that are not going so well. those issues are worth looking at. >> cory johnson, our "bloomberg large.ditor at i never understood having a cake and eating it too. >> the billionaire who had to backtrack home depot. he probably wishes he had just kept his mouth shut. >> we will be back with more "market makers."

>> you would think that billionaires would have learned by now. to level up as a tax

as similar toges hitler and nazi germany. he has since kind of apologized mying in a statement it is choice that is inappropriate and they may well have been. i extend my up apologies. that does not seem like an .ncredibly serious >> how do we learn that especially those on the right, they shouldn't use the word not see? >> politicians, they are unteachable.

they have are not to make that comparison. we have another week, another billionaire making a nazi comparison. ,he leaners are so thin skinned the slightest criticism comes across to them like that. elizabeth warren says there should be regulation of banks and they feel like they should be are secreted. >> should you be giving all billionaires one swift brush? ask,ave to be a bad ruthless businessman. >> the ones have spoken out are certainly thin-skinned and i think we have a list of them now. what happens is once you are, you are in a cocoon where everybody laughs at your jokes and people don't criticize you. i'm not saying all billionaires who got there -- i have some

billionaires who are my best friends. i would like to keep them that way. theseidea that maybe billionaires feel that since they have achieved the success and they can say stuff and other people can say. can langone was not necessarily all that wrong. >> what if you think about the comparison to hitler? i do not think it was that off

the base. it looks like the kind of thing that vladimir putin might have in his mind. >> historically and geographically she had a point, but it has it is almost never a comparison. she took it back the next day. she said it with less ambiguity than can langone. geographically, she might have had a small point but it is not a good comparison to make where you puts you don't want to be. >> margaret colson, thank you for joining us this morning. coming up, lights, camera. the actor will be here to discuss his latest project.

it is not on the stage or movie screen.

>> leave schreiber is shaking up madison avenue. he has founded a brand marketing company. they are here in his closet interview. everyone takes i will start with you but i'm not. why did you pick liev? >> we have been collaborating with work over the years and it is something that has been amazing for me. branding has gotten more into storytelling. to make been able anything that i'm working on better. he has bought a lot of insight into how i tell stories. >> i was wondering if it had anything to do with radon event. show getscter in that things done. i'm not sure if it is marketing per se. he is a mover and a shaker.

>> it is a move we have always got. i can always pull a bat out of the trunk. did you take this? why did you think your brand, what you have created will translate into something else? >> i never thought i would be successful as an actor. >> you were wrong. >> in college, i actually studied this. visual literacy. jealous ofvery scott. >> how did you know each other? >> i went to high school with his wife. i was really impressed by it. one time he was nice enough to let me help them work on something. we really enjoyed it. >> what was it? .> it was a short film it is one that we really enjoyed

making. he also worked on some ad pieces before that. that was the beginning of a collaboration that i really enjoyed. when scott told me he wanted to branch out on his own and had a new idea for a new model for an agency, it sounded great. to create? you going what am i going to find if i show up at your door? >> is actually pretty remarkable. the scope of the things we have created. we have done everything from product design, short format documents, a half an hour television show. we have created an art opening for vespa. >> there is a product that i use. this is a client of yours. they are always fantastic products for the city that don't get enough play. >> what is your pitch, a specific brand that you know how to create? assignmentevery

differently. we don't really walk into a situation thinking me know how to answer a question. what we like to do is bring the rand didn't. i think that clients are key. you have to have a great client to do great work. we break down the brand and look and its master narrative. we try to find ways to continue that story or with energy of one of our clients. we began it by doing the product design. >> what do you think is in the special sauce? that you understand what people desire and know how to deliver it? >> i think it is that we are light on our feet. part of what we do really well because we are collective. scott is from the advertising world and i bring my resources from the film and literary world. we are able to assemble a team that is specific to each client. i think that is what has worked for us so far.

>> the clients are so key. what are your favorite clients. >> it is an all-natural energy drink. >> five years from now, what do you want advanced to be? >> manageable. we are growing very fast. the scary stuff for us is dealing with scale. i never imagined that this would be our anxiety a year in. with a started working couple of clients that we cannot mention yet. it has expanded us and stretched us in a way that is both exciting and terrifying. hopefully, we will stand -- >> do you have to be her a lot for that work? show in loshe angeles, fortunately i have a credibly talented partner.

>> what is your dream partner? you want to get this company and push this product. what would you love to work on? >> i don't have an answer. i think that every potted in every brand has opportunity to do some great work. who is your client and what will they allow you to do? >> what is exciting as finding the narrative for each brand, meeting the people that you will work with, talking to them and figuring out what the stories they want to tell. what we are interested in is finding out the story that the client wants to tell. >> solving the puzzle is the most fun we can have. nativee that criticize advertising, you think it is a new way to tell stories. >> there are different ways to tell stories and we are so caught up in the idea that a story has to be told through a

television sequence or a commercial and i think that there are some in different ways to tell stories. if twitter is about language, why don't we use it as a ?ultiple

>> that will be it for "market makers lowe's quote it has been fun.

nose had a cut across his from something. >> may be a fight. >> a hostage ordeal. >> when we come back tomorrow, you know him as the father of the case schiller housing index. we will speak with the one and only thomas roberts schiller. timel predict that it is for bloomberg to go on the markets. i will send you out in the newsroom where scarlet fu has more. >> midway through the trading day and we are still awaiting the federal reserve's announcement on its interest-rate policy and what kind of that as they provide for the interest-rate policy overall. we will head straight into derivatives in today's options inside. a look at howwith the options market is shaping up . of course, janet yellen's news

conference. we have seen volatility as measured by the fix start to come up just a little bit. you say that we are still a long way off. >> what we have seen over the past few days when it comes to crime era, we do not see any volatility. they have gained some of the losses early on. in a consolidating phase. we will see what happens with janet yellen. we are still poised to push higher. >> we got up to 18 earlier on but we came right back down. do you see anything that yellen might say? there was the testimony today. >> i'm keeping an eye on shares of fedex. they reported results this morning. they gave up profit and sales missed for the quarter that that and also a forecast came up later than what analysts

had been looking for. there was an increase in options volatility. what are you seeing in terms of options? >> i would say that fedex, everyone pretty much anticipated this. everybody anticipated that there might be some weakness in this quarter. as a result, people have been bringing down their estimates ahead of the event today. is not see that stock reacting much. it was lower. monthst four or five that they have been stuck in a range, from now with all the negativity. >> it is interesting that you mentioned ups because ups has had its own problems with the whole amazon shipping debacle at the end of the holiday shopping season last year. ups?ickup and options for >> i didn't see that. both the names have been fairly

lacking. i don't think it picks up. >> a couple of catalyst you harp picking up, the earnings are on schedule for two weeks. >> this is to buy the july options. around -- are hitting i get into the entire trade at about $.80. things that it of like to see. we have two weeks ahead of time with the first set. this is april 2. then we have another set coming up in july. we have two catalyst.

you need to understand that the business is very different from ago.it was then two years >> it seem that micron was not really a player. if you think about it, there are four big players in memory. they have over 90% of the business. the real driver for demand is the mobile it is really about 30% of the market. >> thank you so much. we are back on the markets in 30 minutes. "lunch money" is next.

class welcome to "lunch money." johnson. toyota pays up here the bill is 1.2 billion dollars, trying to settle the recall, 10 million vehicles. tom keene rubbing elko -- elbows with a cat. the world series and speculation around the search for 370. all that is left is very angry relatives. using form and function, needs the man with a plan.