One of the worlds most expensive foods. You to market maker know what . Bleh bleh. Rewind, good morning. Great to see you, matt miller. Im Stephanie Ruhle. Shafter. Im really excited to see the truffle piece. I dont 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 twoday meeting, its 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 Worlds Largest cargo whatne its 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 fingerpointing kit today that fingerpointing 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, toyotas conduct was shameful. It showed a blatant disregard for systems and laws designed to look after the safety of consumers. By the companys 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 shouldve done recalls more than a decade ago and they didnt 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, were 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 cant 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 im 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 everyones 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 isnt 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 cant 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 dtype . No, im 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 dont 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 dont, they should sell us. I dont 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 im 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 toyotas 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 MakersBloomberg 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 dont want to be invested with harbinger. They dont 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 dont 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. Dont see that often. Asheville folk own entities for a positive. Dont see that often. You dont see negatives for gm often. Now the ceo, mary barra, comes side andproduct briefly ran hr, is in a bit of a hotspot. Todays 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 mightve 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 dont 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 higherups of the company, or dismissed it as not being statistically relevant. We dont know those answers. Im 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 thats like a nightmare. Thats 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, doesnt the board find out . You are right on that. Well, youre talking about im 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 dont know. I doubt that it would have reached the level of ron bloom. That is a problem in itself. The airbag didnt open, why not . I dont 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. Chinas 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 ipos 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 prerevenue or preearnings. 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