Class it is finally a bit of a warm day in new york city so i feel a great show coming on. We will take you to the newsfeed to talk business doors around the world. There is another twist in the search for the missing malaysian jetliner pier 1 of the two passengers that traveled on the stolen passport is iran. He says he was trying to emigrate to germany. Cftc he says it does not believe it book broke the law but cannot predict the outcome of the investigation. It has to do with the incentive. He just filed for an ipo yesterday. In thes a new leader race to sell a free cars. Whopping whopping gas 242,000 vehicles, a few hundred more than bmw. Fornumber one in the market nine years in a row. Another story we want to make you aware of, steve s Hedge Fund Management firm is changing its name. It is a family office. Stephen Senior Management considered whether it would be simpler if he operated with a new legal entity and new names. A new set ofutting curtains on a house breaking down . They did not have a choice. They know they have to move to a financial office. He ran business development. What does that mean . The massive head hunter recruiter. The machine is not going to continue in its original state obviously. It is not clear what it will be like. I have heard from a number of people inside the industry there are a ton within there who want out. They cannot necessarily leave unless another hedge fund pays them out and be able do not necessarily want to do that. Will. 72 make a difference . It must have something to do with the address. 72 on the outside of the building. Class there you go. There you go. They are in new york and london and asia and they need to have all of these offices in infrastructure if they are going to be significant. One other thing to note. Run 14ot always billion. He started with his own money and grew it a grand bigger. The guy is talented, no doubt. I do not think it is fair to say he will have to shut down completely. Class a family office. Class but a very different situation. Lately. A billionaire president of the Japanese Telecom softbank is in washington today. A message for regulators, mobile consolidation would be good for consumers. His son artie has a controlling stake in sprint and is combining it with team mobile to create an operator Strong Enough to compete with industry leaders. That would let him start a price war. Listen to what he told charlie rose last night. Three heavyweight fight. I would like to have the real fight and not the pseudofight. The real fight. Fight, aot have a real more massive price war. Class that is your pattern. You undersell everybody. You are willing to postpone profits in order to gain market share. Exactly. I want to be number one. We have a man on the mobile consolidation beat. His son, we understood he was going to go to washington to make the case with mobile broadband as an alternative for cable and satellite. This is maybe take three of the plan he is trying to get done. That ceo come you correctly stated in the introduction he is laying out a case for why number three and tmobile should come together for consumers. This is why they should come together. Sprint is in trouble longterm. F it does not do with tmobile at t verizon, wireless event business is a high cost business. If you gain scale, each incremental customer that point can be profit for you, which is why they probably need to come together if they want to compete with at t and her rise and in the longterm. The counterpoint is tmobile has had a lot of nearterm success doing exactly what was talked about their. In essence, starting a mild price war with verizon. They will give you services for lower prices. Regulators look at this and say, wait a second, we are getting the competition we want from tmobile so why let you come in the shortterm they are doing great but longterm, we will not be able to compete unless we put the two companies together. He also wanted to theoretically talk about how wireless could be a competitor with cable broadband in the longterm. The argument is, lets expand the market. Instead of just looking at wireless players, lets look at all broadband players and then it will be more palatable for companies to put two together because they will not be so massive in the industry. It what his job is . We see ceos is of any company. Aking a case we heard from deutsche and he ceo last week basically says we do not see an avenue for the deal getting done anytime soon. What is interesting is there a saying they want to do a deal. There is a conflict where theyre basically pounding the wall to get things done. Deutsche telekom is saying we do not think this is the right time for this according to our lead on regulators. Will the clear force of will put on the table . The danger there is he finds himself in the same position as at t, having regulators considering purchases of tmobile and then rejecting it. Inknow at t is no longer that avenue because it is clear where it would end up. If you do this, you want to do it at the same the right time. Is still something always floated between the two companies. It was tried and rejected and here we are in 2014 and it has not come back on the table. What about the idea regulators should look at mobile industries as an alternative to cable and satellite . Five years from now it may be reality but it is not a reality today. It is a reality today and there is a question of whether it will be five years ago because of capacity issues. Spectrum is a big issue in wireless, getting enough spectrum to keep the speeds high. Right now, we do not have a world where people are relying on their Wireless Service for home broadband. To say that in five years, we will be there, i think is a stretch still. It is not impossible, but the idea is if you want these highspeed capacities, wireless is just not there yet. It will again take billions of dollars to buy the spectrum and boost the networks themselves to allow people to use this and not rely on inhome broadband and five years might be pushing it. He takes my crystal ball and smashes it on the floor. We will see. I am not a nostradamus. Well fine, i am right. If i knew the answer, i would be out on the beach. I get that. We understand that. Class you can see more of the interview with softbank today at noon eastern time on lunch money and the full interview is on bloomberg. Com. The first big headache of the ceo of General Motors. It is facing pressure to explain why it took a full decade to recall 1. 6 million vehicles for faulty admissions. Basically, a heavy key ring could make a turn off. It is behind 13 deaths. Keith, we have heard so much about the new gm, whether it was whittaker or dan ackerson. Thatthis story suggests the old, hulking, slowmoving bureaucratic gm still exists . Class that would be the big question. When we get into congressional hearings. Those are the questions that will be asked. This tenyear time they knew about this problem. I first found out about in 2004, it is bifurcated. Half came before the bankruptcy and half afterwards. Still plenty of corporate gridlock that happened in the process since the bankruptcy. A lot of committees announced. In many cases, passed on it. Does that explain adequately to you or anyone else how an issue of this seriousness thinkeople die, you would it gets elevated to the highest level of the organization immediately. How could how to get stuck for this long . They have solutions to this problem. Getting into that dating back six,04, 2005 and 2000 and 2006, it took almost 10 years to get to the corner office. Are the things congressional investigators want to know and frankly, so does gm. She has ordered her own investigation and hired an independent attorney to investigate what went on as the same person who investigated the fall of lehman. Even she is saying we are not happy with how this unfolded and we want the truth so it does not happen again. Class could there be a direct fallout . This could happen on her watch. Her watch only began january 15, the month before the recalls were announced. What we have is her first big handled it. She so far, she has done a public apology, which im sure the lawyers were not happy with because it could open them up to liability. Is it fair it to say it cannot happen on her watch . She for two been a ceo least. She was not that long ago a Vice President in charge of Global Manufacturing and engineering. Manufacturing and engineering problem . The cars were developed over a decade ago. Projectnot head of development the time. A manufacturing executive who went on to be in charge of human resources. The analysts say what she really needs to do is find a way to break through the bureaucracy that has dogged gm for decades. The task as ceo, fine this way to never let it happen again. Thank you. On the gm story. He n we come back, did p ditty making a move. Trying to stand his music empire by making a 200 million bid for tv network fuse. All about music. We will have that story next. Hoping to expand his music empire. The rap artist will roll the Music Channel into his own cable , which he launched last fall. I approached him recently about the need for his network. Music does not have a platform like it used to. Back in the day, there used to be american bandstand. Before that, there was ed sullivan. There was soul train. There was a place you go to for music to tell you a story. Now, artists, we find ourselves going to dancing with the stars, orch is not a problem, performing even on good morning america. At thes getting consumed highest rate ever. Audiences at concerts are at the highest rates ever. Opportunity. Quest for more on what it will mean for the Music Industry and the tv business, i want to bring in Jon Erlichman in l. A. And paul sweeney from bloomberg industries. A lot of people are comparing this to al jazeera buying currents. They are entering into a deal potentially that will get them a lot more eyeballs. I think it is about the eyeballs. This is a guy who is passionate about launching this cable channel. You do not see a lot of launches of cable channels. It is not that he wants to necessarily take on fuse. He wants to get more people who can see what theyre doing. It is still too early in the process to say, is it or is it not a success . It takes time to launch these channels. When you only are in a select number of homes, there is only so much you will get in both rather advertising revenue in whathich each each paytv channel will pay you. If you are all of a sudden available in more households, then maybe you have got a little more leverage in the process. That is where the comparisons ought to end, because he is looking for something far more successful than that. Quest exactly. 75 million households for fuse, which is good, but they need more. They need to get up to 90 million households so they can get paid and revolt. That is backed by comcast so it is another way to make sure if in fact the cable Music Network theyre the better chance. Quest is it suit too soon to know what how it is doing . Critics will say if it is good or not. The critics will say what is good or not but the Cable Operators will come back and say, do we think we will make money with this cable network. The fact they only signed up a handful of distributors, comcast and Time Warner Cable among them, some of the big guys, that tells you there is not a demand out there for music, just as it is currently set up. It is very difficult to get cable carriages these days. There is not a lot of open cable spectrum out there. If you want to get something launched, you better have a compelling story when you come to the comcast and directvs of the world. Quest the way it is done now getting music on cable, what might he have to do differently in the future and in his Perfect World once he owns fuse . He always thought about getting the brand out in a bunch of different areas. That is definitely something he will have to do. He is right there is not necessarily one central spot where you look anymore for music. But people are very happy with their streaming Music Services, more of an interactive experience than just listening to itunes. You have also got other Services Like tivo, available on some of the new devices out there. Rocher devices, which are pretty good. It is not just music videos. There is news and all sorts of stuff. We asked if he would be interested in buying fuse not too long ago and he suggested he would not be. I think they have done well in catering toroduct the new way people are discovering music and learning all sorts of mtv related stuff. Quest do you think he has taken a wrong turn here . If we look at what he has done in fashion and music, he has not gotten it wrong yet. It, and viva doing does not want to do it, is he wrong . You could argue there is a void in music. Mtv is no longer the music video place to go. It has not been since its inception. Isnt there a linear tv opportunity for music videos . That our form has almost died out. Used to be so big in the 1980s nit 90s, and a lot of people are saying, maybe the internet is not the only solution. Right now, we have not seen anything in the marketplace gain traction. Quest little find out. Jon erlichman and paul sweeney from bloomberg industries. No trouble in paradise, not today. To therico has returned bond market. That and much more when we come back. He plans to talk the Company Documents obtained from a former employee. Violate laws. Life lets break this law down. Bill ackerman claims he is taking this trade to the end of the earth. He calls it a pyramid scheme. He is making a presentation later in the afternoon. He claims the documents are from a former employee inside the company. It has been a tough road. Billionost half 1 already. The New York Times than 200 grand in the last years. Continues and it will be on the main stage this afternoon. We will be back with more in two. Live, this is Market Makers with Erik Schatzker and Stephanie Ruhle. Good morning. A great day here in new york. Also a great day in puerto rico. They pulled off the biggest debt sale ever of any bond. 3 billion. Get this. It was a very steep price thanks to the downgrade yielding as high as eight and 7 8 . He says the size of the deal its about the situation in puerto rico. The cofounder and coceo and is here with us now. Smallillion deal for a island that just got downgraded. I am not sure if i think it is. Do you . It is a terrible thing for the ricoh to have for puerto rico to have accomplices. Their uncertainty about their ability to make good about a large volume of abilities. Theirs a lot about willingness to accept the difficulty of their situation. And to adjust the real issues of puerto rico, building a growth opposition for the future. It was only a few weeks ago people were talking about the and maybe even probability puerto rico would have to offer yields in the neighborhood of 10 to sell enough debt. Why relative to that did things go well . Question to ask. The 10 number lingering around was an easy number people anchored themselves into when they first started talking about a deal. Two things happened. Number one, the larger markets enjoyed attractive tailwinds on the turn of the yield the year for low supply as well as broader credit markets in terms of limited amount of product. Probably as important as the efforts puerto rico took to be transparent here it was a pretty unusual transparency into their liquidity picture and really bearing all the ugly truths about the proposition was that made investors feel comfortable that they understood the Downside Risk and the potential upside. Quest was there back not against the wall . If im a governor of puerto rico, i have no choice but to do this. Quest i think that is accurate. That is important point of them doing this. It is acknowledging they had a problem and dealing with it in what is an expensive and large scale, but a necessary thing to have done in order to avoid a much more significant crisis, which is to have to deal with the absence of any liquidity to meet obligations currently. You are right. Probably was difficult and one of their only options. The fact they chose to do it shows they want to join the adult table of addressing their problems. Quest what if they did not choose to do it . Than what wouldve happened . We could argue that. I do not like to debate that hypothetical because the choice might have been something to see. To pick and choose winners. The fact of the matter is, they no longer have to do that and they no longer have to face those difficult prospect as long as they deal with the larger looming issue of growth in the the next 12 months they bought themselves. You know, you invest in distressed minutes will credit. You know where to find value perhaps better than anyone else. Fewis it so many so doomsday scenarios, because people were talking about puerto rico like a doomsday scenario, california and any number of other doomsday scenarios, they do not play out in an apocalyptic scenario. That is a great question. A lot of people conflate the issues. This is an enormously diversified marketplace. Of 60,000 issuers, several millions of individual from aies all stemming vibrant decentralized Public Finance needs. If you think about it, we all know our local School Districts and towns all borrow money for their own purposes. For the most part, they are in a very responsible in limited fashion. They have unique operating leverage in the fact they run effective monopolies. They keep things inside the lines. Puerto rico is a big exception to the rule. Levered itself far in excess of the level it should have in order to provide financing and mask the absence of growth on the island. It is a unique and isolated credit story. The reason it resonates so much is its size. Who isrdlargest issuer by virtue of being triple is widely held. It differentiates itself. It is and everybodys portfolios or was. Deterioration of credit reverberated in the marketplace. When itrgely very sound comes to credit. Less talk about the other trade in puerto rico. You understand what the proposition is to invest in these bonds. Are you considering making the move . Got confirmation he is buying another two properties. It sounds like moving down there, small ones, 30 a month. Place and know this you understand the tax implications. Would you consider