It was about a mile and a half away. G. M. s ceo getting mobbed and i mean literally mobbed by reporters last night. ,he had just finished speaking and whenever she stepped in front of a microphone these days, questions fly regarding g. M. s recent recall of those that ignition switches linked to 13 debts. In the last five years, weve made many important and meaningful steps at gm to change the companys culture. Our focus is no longer on survival. We are even more focused on quality, safety, and doing what is right for the customer then i can say at any time during my 33 years with General Motors. I hope you can say that my recent actions show that general committed to upholding our values not only in the good times but the times when the world is watching. Everybody is working 20 47 to make sure we are doing the right thing. In fairness, it was not all about inflection flexion and spend. Mary barra did have some positive news to report. I would like to announce the creation of a new global product Integrity Organization that will be part of the Global Product Development function. This new organization will be built on the formula and the very specific actions we have taken in recent years to lead the industry when it comes to vehicle dynamics. We will mirror this approach to focus on safety performance across all our vehicles. Our goal is to ensure the highest safety execution across every single vehicle that we put into the marketplace around the globe. Other top shaken up managers as well. The heads of communication and resources are leaving the company. Every bar pledged to employees on the Company Website that Senior Leadership would be held accountable for dealing with any and all safety concerns mary barra pledged to employees. She wants them to know they can voice their concerns whether openly or anonymously. She even talked about her place in the car business. I believe it took too long. That is one of the reasons were doing the investigation, so we get every single ounce of learning out of this. So we will get parts in dealer hands to put on vehicles as quickly as we can. I will tell you they will be perfect parts from a specifications perspective, and they will be 100 tested to make sure of that. I have had a lot of challenging jobs through my career as most of the men in women as General Motors who come to work everyday and give it their all. I am working on a little Different Things right now, but again, its the challenge, and i love this business. Another ceo in the hot seat, talking about brady dougan of credit suisse. Hes been trying to navigate his swiss bank through investigations of tax evasion, and we learn that new yorks top regulators sent a subpoena to credit suisse. Is according to a person with knowledge of the matter. Dougan responded early this morning. Clearly, were working with them, providing investigation on the business. This is obviously around the crossborder issue, which is something we have been working on with the department of justice for over three years, so clearly, we are going to cooperate with them and work through the issues. Overall, we actually feel like we have made Good Progress on getting a lot of these legacy issues behind us, so we settled the issue on crossborder. Fhfa director settled as well, so we think we are making Good Progress, but clearly, we are going to try to work to get these issues resolved. News of the new york subpoena came as switzerlands secondlargest Bank Reported a 34 drop in quarterly profit. Blame a drop in bond trading at the Investment Banking unit, but mr. Dugan tried to put a little bit of a positive spin on the whole thing mr. Dougan. Billion in 1. 9 pretax, one of the best returns on equity in the industry i think. You saw and our Investment Bank as well we actually had a very Strong Performance in our strategic businesses there. Return on capital, 21 , so a lot of the businesses performed extremely well. Another ceo in the headlines this morning ken mullis, whose Investment Bank went up elis,this morning ken mo whose Investment Bank went public this morning. My last question my first question in my last question was tell me a deal size and a prize that our investors will make me some money. This is the First Investment to go public tell me a deal size and price that our investors will make money. Make me some money. We have to perform, and we intend to. Are you worried at all that it could be the top of the market here . I worry every single day about the execution and our clients and whether our culture is good. I worry about the things i can thel i can control, and market will do what it does. Wouldnt it have been a competitive advantage to remain the only Competitive Bank that is not public . In some ways, it has been. That is what has enabled us to grow so fast, but the growth we have left i think there is more growth in the future than in the past. The regulatory pressure of the big financial conglomerate competitors is unbelievable. I have been in the business 33 years, and i have never seen the pressure on the large competition that i have seen today, so i think talent will come out, and having a liquid tradable currency is going to be positive. We want our employees to be owners. 67 of the stock is owned by managing directors, and that is key to the culture. It provides liquidity for you and your partners . Partners have been getting stock in the firm for seven years now, so yes, this will distribute some liquidity to them, so its great for them, and now we can all move forward and focus on clients. How did you get investors to basically buy into this offering with the use of proceeds being a onetime payment to you and your partners . Not investing in the business, but directly into your pocket . I think they want to be part of this business. I think the cycle is good for m a. I think our intimate our competitors are going to have trouble. Most people who buy stock are under investing in the future. In terms of the fact that people are looking at this and saying he is taking money off , so why should they be buying . I visited 50 institutions, and not one asked me that question. Its a first. I dont know why they would be interested because nobody asked. They want to be part of our future. I think they want to invest with us, and i really did not ask get asked that question. You can watch the full interviews with ken moelis and tvdy dougan on bloomberg. Com or any of our mobile apps. We will bring you full coverage of janet yellen speaking coming up in just a few minutes right here on Bloomberg Television. Onhis is lunch money Bloomberg Television and also streaming live everywhere. We are online, on your phone, on your tablet, apple tv, amazon fire tv you name it, we are there, so are you. Fed chair janet yellen is getting ready to speak at the Economic Club of new york. Well have live coverage with her remarks. In the interim, we want to take you back to the new york auto. How here is the Vice President of u. S. Operations with our very own car guy, matt miller. Its a global team set up in hong kong, and we are moving this way, chasing bmw, chasing mercedes, chasing audi. By 2020, we will be sitting at the table with these guys. Full disclosure, i went to the grand prix with you in. Ustin carstian helped develop the i drove there. Had a lot of fun, and its a great seller for you. Is this the way forward to have these incredible technological advances . There are two things. First of all, you have to have the technology right. A luxury brand today as defined by technology, but advocacy, so you have to have all that right, but also really good brands have really great emotion. Part of the automotive business is that on track performance. We are certainly targeting the young mindset, and that is very racing,racted to f1 anything where there is competitive motorsports. Thats where those great automotive bands are developed and get their credibility. Its a global sport. Not so big in the United States, very big Advocacy Group here. My bet is in for a five years years in four or five time, it will grow as a spectator sport. Dealers do not earn enough money, so we have been working toy hard with the dealers get this reconnection on lots of. Ifferent things so it is very important to get the dealers engaged. The second big thing is products. We will have to see whether it is possible for the all new press sought the allnew passat and we will have to see when the suvs are coming. Were working very hard not only on bringing cost to the market, but with all the accessible futures, all the Exterior Designs and from there. As volkswagen. Meanwhile, ford is celebrating the 50th anniversary of the mustang. To mark the occasion, the automaker is releasing a special edition 20th anniversary mustang. Matt got all the details from the ford chairman himself. Ofa little bit differentiation on the exteriors. Little chrome treatment in certain places. Pony and corral badge, which harkens back to the original mustang. Unique interior finishes. Really, there are only two things you have to decide do you want white or blue . And do you want manual or automatic . For me, its always manual. You want manual, of course. What you think about the fact that more and more carmakers are automatic . I understand it, but i dont like it, and i love cars, particularly sports cars. But not everybody feels that way, so we do offer both. I will always get the manual. You love driving, and you want the manual transmission. On the other hand, you are kind of the face of this push for connected cars, and we will see more automated driving in the future. Obviously, thats better for traffic, better for gas mileage, but it takes away from your driving pleasure, no . You are right. You raise a fundamental dilemma because automated driving does allow denser patterns that allows better safety. There are a lot of great advantages to it, but i love to have ands and always always will. For me, its a way to have great fun. Im very excited about all the autonomous features coming into vehicles. People really do want them. Everybody feels the way i do about driving a vehicle. A lot of people want to get from point a to point b and do it quickly and safely, so a lot of the automated features were put into allow them to do that, but i will always want to be behind the wheel. A lot of people are going to get a chance to be behind the wheel of this mustang because you will be selling at all over the world in places that they previously could not get one. When i lived in europe, i was always looking for muscle cars, and they were not there. With very cool is i barcelona,this in and they went wild over it. Even though they never had the mustang in europe, it needed no introduction at all. Everybody knew mustang and what it stood for. It really is a brand unto itself. You dont have to say ford mustang. You just say mustang. Its like the f1 50. Finally, people around the world are getting to have an mustang. You can watch our full coverage of the new York Auto Show at bloomberg. Com tv. Coming up, fed chair janet yellen is set to speak at the Economic Club in new york. We will be bringing you full coverage and analysis coming up in just a few minutes right here on Bloomberg Television. Welcome back to Bloomberg Television. Im adam johnson. We are breaking away from the usual lunch money to focus on the fed chair who is getting ready to speak at the new york Economic Club. Well have live coverage here on Bloomberg Television and on our live event channel at bloomberg. Com tv. I want to bring in a bloomberg editor michael mckee. We have to figure out what she wants to communicate. The text comes out in a few moments, but she disappointed a lot of people at her may press conference because she suggested they should not Pay Attention to the forecast the fed was putting out at that time it seemed to indicate the fed would raise rates sooner and faster than before. In other words, thats sixmonth time frame and the charts. Is she going to defend that . Thats what a lot of people on wall street want to know. They do not have the employment threshold anymore to judge when the fed might do something, so they want a bit more clarity, and that is what they are waiting to hear from her. What do you think she will say about inflation . Thats an interesting question. Do they think it is temporary or a more widespread problem . Thats what seems to be happening in europe, and the oecd reports inflation around the world is running at a 1. 4 annual rate, so is this something they have control over or not . Thats the real question. Peter cook joining us from no, you would be an washington, d. C. Your wheelhouse. Her approval hearings were very political. Now she has got the job. Has her position depoliticized somewhat in washington . I think her position is somewhat comfortable. As mike pointed out, she still might have some questions on wall street and in the investment community, the economic community. The degree to which she classifies even further what she said after the last meeting in terms of the Forward Guidance, if she is satisfied that she sent the right message to wall street back after that meeting at that press conference, she will not say much different. If she goes into a lot more detail, offers more clarity, that will tell you that she and the rest of the fed were not satisfied but the message was totally received on wall street, and she feels she needs to refine it. That will give you a sense as to whether or not this is a big moment for her and she feels a certain amount of pressure. Saying more oris less in her best interest today . Saying moore is always in her best interests if she can say it in a way people understand it. The headlines are out now. We will let jenna deliver her own remarks, but we can tell you she is staying committed to the fed being lower or longer we will let janet deliver her owner marks. Deliver her own remarks. What could go wrong . The recovery has come a long way. More than 8 million jobs have been added to nonfarm payrolls since 2009. Almost the same number lost as a. Esult of the recession led by a resurgent auto industry, manufacturing output has also nearly returned to its. Rerecession peak while the Housing Market still has far to go, it seems to have turned a corner. Its a sign of how far the economy has come that a return to full employment is, for the First Time Since the crisis, in the mediumterm outlook of many forecasters. It is a reminder of how far we that thiso longawaited outcome is projected to be more than two years away. Today, i will discuss how my colleagues on the federal open Market Committee and i view the and how the economy this view is likely to shape our efforts to promote a return to maximum employment in the context of price stability. I will start with the fomcs outlook, which foresees a gradual return over the next two of economicrs conditions consistent with its mandate. While Monetary Policy discussions naturally begin with ofaseline outlook, the path the economy is uncertain. An ineffective holocene must respond to significant,. Nexpected twists and turns my primary focus today will be on how the fomcs Monetary Policy framework has evolved to best support the recovery through those twists and turns and what this framework is likely to imply as the recovery progresses. The fomc outlook for continued moderate growth is little changed from last fall. In recent months, some indicators have been notably weak, requiring us to judge whether it requires a change in the outlook. The unusually harsh Winter Weather in much of the nation has complicated this judgment, but my fomc colleagues and i genuinely believe that a significant part of the recent softness was weatherrelated. The continued improvement in labor Market Conditions has been part of this judgment. The Unemployment Rate at 6. 7 fallen. 3 . 3 since late last year. Labor force participation, which had been falling, has picked up. His year this rate is well below the committees two percent longer. Un objective many advanced economies are observing a similar softness in inflation. To some extent, the low rate of inflation seems due to influences that are likely to be temporary, including a deceleration in Consumer Energy inces and outright declines core import prices in recent quarters. Longer run Inflation Expectations have remained remarkably steady, however. That as the effect of transitory factors subside and labor market gains continue, inflation will gradually move. Ack toward two percent in sum, the central tendency of fomc participant projections for the Unemployment Rate at the end to five point six percent, and for inflation,. He central tendency is 1. 7 2 if this forecast were to become reality, the economy would approach what my colleagues and i view as a maximum employment and price stability for the first time in nearly a decade. I find this baseline outlook quite possible quite plausible. Of coarse, if the economy obediently followed our forecasts, the job of central bankers would be a lot easier, and their speeches would be a lot shorter. [laughter] alas, the economy is not often so compliant. So i will ask your indulgence for a few more minutes. The course of the economy is uncertain, Monetary Policy makers need to carefully watch for signs that it is dive