kailey: katie: we are 30 minutes into the u.s. trading day and here the top stories. a public fund for private markets, it's the publican listed closed-end fund that invest in private tech startups and its stock is skyrocketed. how does the company ceo feel about it, we will ask in a few minutes. the eu's approach to big tech, european commission executive vice president joins us to discuss her current trip to the u.s. and the push to regulate tech companies in artificial intelligence. kkr's path to a trillion dollars, bloomberg tv's lisa abramowicz it's down with the co-ceos of kkr and we will bring of their occlusive conversation -- there are schools of

conversation later this hour. . ♪ katie: welcome to bloomberg markets. looking at stock markets on this morning, you can see is pretty quiet. the s&p 500 is unchanged, big tech is trying to stay green and the nasdaq is currently up about 0.3%. we did have ppi coming in hot but a downside surprise relative to expectations. that's giving a little bit of relief to the bond market. the 10 year yield is higher but only to the tune of about two basis points. that's relatively quiet relative to what we've seen earlier this week. all eyes are on ai and -- and amazon's annual letter. they say the cloud infrastructure will become an essential part of the ai move. they are optimistic that much of the world changing ai will be

built on top of aws. we have more details. it makes sense that they would want that to happen. >> one of the things everybody needs to remember, amazon has a commanding lead in cloud infrastructure. the thing they don't have now is a very close relationship with openai. chatgpt is the buzzword over the last 1.5 years which runs on microsoft as your. you can see the numbers flowing into the microsoft cloud but not as much for aws or google. katie: it was interesting the focus on ai and it makes sense when you think about what they see is the future. anything else in this letter stick out to you? >> one of the big things as they are trying to differentiate ai. they say we will give to the picks and shovels and you have to figure out what you will do with it in terms of a lot of

choices whether it's different large language models are different services. it's up to the companies or enterprises to develop their own solutions. it's slightly different than what microsoft is doing. i think microsoft will also offer similar services and i think they already do. other than gen ai one of our analysts said is that they are really focusing on retail profit .we think there is optimization over there as well as them revenue they generate from advertising that should help retail profitability down the road. katie: we really appreciate the breakdown. let's move from amazon to a public company that invests in private markets. we are talking to getting public access to private companies. it's the mission for the destiny tech 100 that allows people to

invest in the 100 best startups. since its debut at the end of march, it's just below 500% up. we have the ceo and founder, great to see you in person. we have to start with the price action. you went public in late march and you were up 500% and at one point that number was more than 1000%. even by meme stock standards, that's wild. what do you make of the price action so far and who is driving it? is it retail or institutions? >> we've seen interest across the board. it really feels like this is a moment for the public markets and private markets coming together. this is over 2 billion of volume in the last 10 days alone. katie: it has been staggering to watch. there are other funds that are trying to do this currently and

in the past, to bring the private equity startups to the public. you had the ark venture fund. what differentiates d xyz. >> when we were creating d xyz is thinking about how we create a product that anyone can access from the comfort of their brokerage account that has the protections and liquidity of the public markets. the challenge with the pre-existing funds that a been out there is they don't actually have intraday liquidity so people can't buy and sell when they need to and participate like they are used to in public markets. katie: you have a lot of volatility but you also have a huge premium. there is a lot of focus on that premium. your last calculated net asset value was $4.84. shares currently are trading above $50. you have $54 million of assets in a market cap of around $600 million.

does that concern you at all? >> this is a discovery process. we've only been in the market for two weeks over time, the market is figuring out it's possible for the first time to have access to these kind of companies. as more and more people are learning that come i think there will be more participants in the market and more stability over time. katie: do you have any sense of whether this is change meaningfully since the end of last year? >> nothing to share their until our first quarter results are announced. katie: let's talk about the path forward. matt levine suggested in a column yesterday that destination issue more shares to capitalize on this moment and lessen the premium that exists now. are you considering a move like that? >> we have all the tools of the public capital market available to us. cannot share specific plans but there is a lot of opportunity. when we decided to list, we have 23 companies now and we are

building toward a portfolio. -- of 100. katie: when might you get there? what is your criteria for adding more companies to your holdings? >> when we created the fun, we wanted to create something that looked as close to beta exposure to the private markets as possible. we set up our eligibility inclusion criteria which we publish publicly. over time, we will look to invest in all sectors in late stage venture backed tech. katie: how do you obtain the ownership and these privately held firms? that's one of the big questions around wall street? do you do it through private stakes trading platforms or invest directly? >> all of the above. we make sure we have a flexible mandate so when the last few weeks, we've had a ton of founders of unicorn companies reach out to us wanting to be included in the tech 100. we participate in the second stage market and we try to get

best execution for our portfolio. katie: is that a desire for liquidity? >> it's more a reflection of the fact that there is a journey between a companies private existence and public existence. we are seeing people want to help bridge that gap and start educating the market as to what their business is as they think about their path to public. katie: you have company staying private for longer. that makes sense. when it comes to how you obtain these stakes in these private companies, it's been written that you also do it through forwards contracts and there are questions as to whether you could have companies come back and ask for their right of first refusal. how are you approaching that? >> a lot of change makes people uncomfortable. that's part of growth. our role now is educating companies and educating the public as to how we access these companies.

over the long-term, having the flexibility in her mandate means we can look at all kinds of transaction structures to get the best execution possible whether it's primary, secondary or other means. katie: are you worried about potential litigation? >> no people are, excited to see this exist. katie: let's talk about your actual holdings. you have 23 now which is by far the biggest being spacex. it's 30% of your portfolio in the next biggest holding is around 10% or so. is that a reflection of the availability of spacex shares or is that a conviction you have? >> it's a reflection of the fact that the portfolio is still being built. over time as we continue to add names, that will fluctuate until we reach a steady state of around a hundred companies. katie: once you get to 100 companies, how will you wait the portfolio? will it be equal or some version of market cap? >> we take into account market cap and we will wait into two

sectors, one is the $10 billion companies and the other half will be the 750 million-seven or $10 billion companies. katie: you see a lot of opportunity in the space and you have others pursuing something similar. you are publicly listed and you are traded as an equity. how big do you think this market could be, this opportunity for retail to invest in private companies when you say five years in the future? >> i think it's massive. i think there will be a lot of people industry looking at this saying this has the potential to be a better product for venture. over the last decade, a lot of venture has sold beta exposure is alpha and charged two and 20. in the long run, is not just individual retail investors but institutions that can have a liquid product and invest in the private markets. katie: do you have any concerns

about whether individual investors should be in private companies? some would argue that these companies are private for a reason. they should be season to come to the public markets before you open up broad access. >> that's one of the reasons whites valuable we we are a portfolio company and not a single company. we kept that in mind when deciding how to build this product. katie: we were taking a look at some of your filings and we found one from april 8 and it looks like it shows you personally have sold $5 million of stock. is there any message for shareholders take away from that. >> that was heir apparent company that sold stock. it's super important for us to be independent so that for us allows us to grow our team and grow our products and offerings and serve the tech 100. there's been a lot of speculation on that but for us, we are trying to build a real profitable business. we actually brought destiny tech 100 with zero bank financial

involved -- advisors involved in zero distributors. we are trying to build a product that is interesting to people rather than on other financial product that is just sold. katie: looking at the shares, you have caught many people's attention and they find it very interesting. i enjoyed this conversation glad we can make this happen. our big thanks to you. the sure to tune into my new podcast with matt levine called money stuff and it premieres tomorrow new episodes will drop every friday at 2 p.m. eastern. coming up, we have the executive vp of the european commission who joins us to explain why she thinks ai could be as destructive as atomic weapons. this is bloomberg. ♪

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katie: the top regulator says that ai could be as disrupt -- destructive as the atomic bomb. regulation or at the top of the agenda today as eu officials gather in washington with leaders of government and technology. joining us now is the executive vice president of the european commission. annmarie hordern joins us as well and great to have you with us. let's >> thank you very much for having me. >> looking forward to this conversation. katie: three month ago, the eu said it would investigate the relationship between microsoft and openai. are you able to share any findings of that so far? >> not so far. we are also comparing notes with other authorities. obviously, it's top of mind for

us to make sure the market stays competitive and not everything get field by artificial intelligence. it will change the marketplace. annmarie: do you have a timeline on when we could see movement on this? >> we don't have a fixed timeline and we want to produce results as fast as possible for the involved companies for their benefit. we will get there at soon i think. katie: we are talking about microsoft and open i i but they are not the only players here. you had amazon with an almost $3 billion investment into anthropic which competes with openai. what do you make of that? are you looking at that as well? >> we will be having vigilant attention to what is happening in this field. we see a lot of entrance market power when it comes to technology. it's important that when we have

technology which is not just a new technology but basically in new world that we are looking into that we make sure it's a competitive new world. annmarie: you just regionally went after three big u.s. tech companies. i'm curious to know which of these you are honing in on. a lot of people seem to think it's apple. >> the point is to open the market to make sure that more businesses can get to their customers so customers have more choice. obviously, we are looking at self referencing so if you don't have a google search and cannot just get a google product and we're looking at how businesses get a real relationship with customers so to get rid of the monopoly we see often.

they might want a cheaper relationship. katie: among those three, do you have a priority target? >> we have opened these cases because we think these are very important. we may have more cases in the pipeline so we have given retaining orders for what may be evidence. these five cases are all priority and we think they are absolutely key if our suspicions are confirmed. we want to get compliance because this is what opens the market. annmarie: there is bipartisan support in washington to rein in big tech you have the likes of elizabeth warren and jake j.d. vance lining up behind the same issue. given this bipartisanship we see

in this space and given the fact that we see the ftc going after these companies, the u.s. may do the work for you? >> i don't think so. everybody will have to do their own job but i appreciate when things are moving forward here. we are so much stronger when we are a bigger community. if the u.s. would join in force with the legislative background, i think that would be great. that would be an even faster way to make sure the market serves the consumer. katie: how are you thinking about the u.s. as a partner in some of these efforts? what degree of coordination of talking is there between the two sides as you go after big tech and ai? >> i think the relationship today is better than it has been for decades.

within the framework of the trade and technology can, we agreed early on on the approach to artificial intelligence to be risk-based. we recently decided to set common standards. what do you have to do to tick that box? how can you tick the box that we as consumers can see what is the deepfake? the relationship is close and very good. that increases the chances that we can actually have an open competitive market to promote innovation when it comes to these services. annmarie: there is one u.s. company that the eu has yet to go after and many are waiting that potentially could be the next one and that's nvidia. do you plan to open a formal probe into this company? >> even if we did, i would not

share that with you. those are the things we keep close. annmarie: are you concerned about their market dominance? >> i would not comment on that. annmarie: all right, i guess that means this is one of those wait to be seen. >> exactly. annmarie: i'm taking that as a potential yes but we will leave it there. we would like to get your thoughts on what is going on with china. this week, you also opened up a probe into the china wind market. we have seen for years china dumped solar technology onto the european market. what have you learned when it came to solar that now you're looking into when it comes to wind? >> we recognize what we see as a chinese playbook, inviting european companies to joint ventures, transferring technology with heavy chinese

subsidies in the chinese market to build capacity, closing off their own markets toward foreign businesses. and then to start export prices which are not for anyone to compete with. the result in the solar market is that only 3% of its storm capacity what comes to solar is produced in europe. knowing that you have been played teaches you that you need to watch out to be much more observant and take better actions. we are using both our trade tools and or tools that come with foreign subsidies regulation in full. in order to restore regulation. annmarie:ev's are being focused on and they continue to talk about the fact there might be more tariffs on chinese ev's coming into the united states. where are we with the probe on chinese electric vehicles? >> my colleague is leading that

probe. it's a priority case obviously because europe is one of the big markets when it comes to ev's in the chinese market share in europe is increasing quite dramatically. this is absolutely top priority but they do not have to file a resource yet. katie: let's move from china to russia because certain eu nations continue to import quantities of russian l andng there was artificial restriction of supplies to inflate prices. can you share with the status of that investigation is? >> that has been quiet for quite some time. it's because of the war and things you had a full diversification in europe when it comes to gas imports in

pipeline and lng. we buy so much more lng from american producers and we are very thankful for that supply coming into europe. that strengthens our independence and it cuts the dependency we used to have on russian supply. annmarie: you are talking about thanking the u.s. and sitting in washington, d.c. yet the biden administration is having a pause on lng permits. how concerning that -- is that? >> as far as we know, the consequences of that decision does not affect the imports on the contracts that have been signed. we think we are good because we don't only rely on the u.s., we have many more from norway to middle eastern suppliers and

african suppliers. diversification, if that something happened somewhere, you're safe to get your supply from other sources. annmarie: there is the potential of the u.s. election and it's something you won't want to comment on it like but the former president donald trump is the frontrunner and the nominee and potentially this time next year we will have a trump as president. he once said that you hate the united states and you are perhaps worst than any person he's ever met. how do you plan to work with a trump 2.0 administration? >> i have never met donald trump. i don't know how he built this assessment. i think i have proven beyond reasonable doubt in the workings within the trade and technology camp and with colleagues on the

competition side of things that i have a very strong if not love them like of the united states. katie: that's a good place to and it. we appreciate your time. she is the executive vice president of the european commission. our thanks to our own annmarie hordern. about an hour into the u.s. trading markets, we are off by 0.3%. we got ppi this morning and it came in below expectations. it was hot relative to recent history. it's a quiet day in the bond market but you can see the 10 year yield is picking up about four basis and we are nearing 4.6%. coming up, tax changes coming in 2025 and we will discuss how it

could impact the u.s. economy. we have the associate professor at yale law school and she joins us next. this is bloomberg. ♪ i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth management.

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katie: it's time for our daily wall street we conversation. today we are talking taxes. some tax cut provisions will terminate by the end of next year. here to talk about the potential implications for the economy is the yellow law school associate professor along with david westin. it's never too early to talk about taxes. david: great to have you here in new york. talk about the budget and this is something new you created. >> we are incredibly excited to be launching this week and launching around text day into an incoming text debate.

our focus is oriented around trying to provide policymakers the tools they need to do effective policy analysis. i spent the first two years in the biden administration the treasury department where was lucky to be part of a bunch of legislative conversations that were happening around what ultimately became the chips act and the bipartisan infrastructure law and build back better which changed into very -- the inflation reduction act. i realize the importance and the centrality of what are called budget scores. in the legislative process. these scores are essentially like cost estimates. how much is a particular spending proposal going to cost over a decade, how much is a particular tax provision going to raise over a decade? for a lot of stuff that you would be enthusiastic to see the government do, things like investing in a fully refundable and expanded child tax credit that got one million kids out of

prop -- out of poverty or investing in emissions reductions with things like the green energy subsidies and tax credits passed in the inflation reduction act. the right way to think about those benefits isn't through the lens of whatever the costs are over 10 years. what i want to build with my team and i cofounded this with two former colleagues is the infrastructure to help policymakers think more holistically about what the cost and benefits of particular provisions actually are. katie: let's talk about what you put out from the budget left so far. taking a look at different scenarios here, you have full extension, partial extension and then you have a text plan proposed by you and a colleague. what would full extension look like when you think about the effect on gdp? >> full extension is the idea of fully deficit financing the $3 trillion of trump tax credits

that are set to expire in 2025. if you do a deficit financed tax plan of that size, you see in the short run that you will get some demand those because after-tax incomes will go up but in the long run, you are seeing sizable costs for households. those costs have to do with higher interest rates, more inflation and all of that is demonstrated in the model. you can see we will cost the american economy in terms of growth over the next few decades hundreds of billions of dollars it we don't find a way to pay for whatever provisions policymakers decide they want to extend. david: if you look at the chart, it's pretty dramatic. the real gdp really goes up in the early years and then they extended tax cuts and it goes down and it does the reverse if they don't extended. how much of this is because we will have to borrow so much money that perhaps we cannot afford it?

>> that's exactly what it is. if you don't do anything with respect to extending the expiring the provisions, you say let them all expire, debt to gdp ratio will rise to 116% over the course of the next decade. if you are in a situation where you say instead let's extend them but deficit financed them, the debt to gdp ratios will rise to 130%. those types of fiscal because bear on households directly. we are already sing in the terms of higher interest rates households are facing. i think it's really important for policymakers as they think through this debate to try to grapple with help them grapple with what some of those consequences might be. katie: does that how politicians think? if you look at what you found as far as extending some of these tax cuts, that leads to higher

real gdp levels in the short term. if you are running on a four year cycle, what do you care about the short-term? >> i teach corporate finance at yale and i teach my students how to corporate executors make decisions. one thing i say is if you are thinking about whether you are a ceo and want to buy a new factory, you think about it will cost me something to buy my new factory but in the long-run, maybe the new factory helps me produce more efficiently or helps me launch a new product line. certainly this cost-benefit trade-off has to be central to my decision-making process. it's strange that the government doesn't have that centrality with respect to how it thinks of both sides of the ledger and i'm optimistic that if we develop the tools and the infrastructure which is what the budget lab is doing to do this work, they will actually find it to be a useful input into their process because you can say that investing in

kids today in 30 years, those kids are more productive members of the labor force and that pays up real returns and that something we should care about. david: the cost-benefit has ramifications across the economy but has disproportionate effects for divisions. what happens if you renew or don't renew the tax cuts in terms of households? >> the nature the way the task cuts are designed as they provide the biggest benefit for those of the top. if you look at the average benefit the top average 1% will see if we fully extend the tax credits, that will be on the order of magnitude of around $50,000. compare that to the bottom of the distribution and it's a few hundred dollars. from an inequality perspective, if you fully extended tax credits, you will see more than twice the gain in after-tax income. more than twice the gain in

after-tax income for those of the very top relatives of those at the bottom. it strikes me as we think about high and rising inequality in this country, that something policymakers care about is understanding how they can help reach the most vulnerable households. katie: unfortunately, we have to leave it there but we enjoyed the conversation and we hope to have you back. she is the yale law school associate professor. who else do we have coming up? david: the former head of the world bank will talk to us about what's going on with trade policy and manufacturing in light of what we are dealing with with nippon steel and we will also talk with a former head of ibm about the right way to regulate ai that's coming up tomorrow on wall street week at 6 p.m. tomorrow. katie: this is bloomberg. ♪

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♪ katie: it's time for social climbers, look at the stocks making waves on social media. first up we have carmax losing speed as it reports profit and sales that fell below estimates in the fourth quarter. the used car dealer sites inflationary pressures and vehicle affordability challenges. next up is rent the runway back in fashion and it -- as it tops earnings expectations in the fourth quarter. membership loyalty rose 10% thanks to improvements in its digital user experience.

finally,doordash is getting an upgrade to buy. they had downgraded them because they were concerned this was having a negative impact. never underestimate the spending power and appetites of college students. you can follow the latest company buzz trm go on your bloomberg terminal. it's a down day on wall street. the s&p 500 is down only slightly, about 0.2% but at it with the s&p 500, it's down about 1% for the week so far. that follows last week's decline as well of about 1%. april is not off to a great start for the big index but it was quite a start to the first quarter or so. big tech is up about 0.3%, holding on even as you have the s&p 500 wobble.

we got ppi this morning which was a downside surprise. it was still pretty hot and you can see it working its way through the bond market. the u.s. 10 year yield is up about three basis points. we are talking about a yield of almost 4.6% or so. we will continue to keep an eye on that one. coming up, exclusive interview with the co-ceos of kkr as they aim for $1 trillion in assets under management. that's next, this is bloomberg. ♪

lisa: i am here in the kkr offices in hudson yards. i'm here with a co-chief executive officers. they had their investor meeting.

you unveiled some incredibly ambitious targets, growing the firm from less than 600 billion dollars in assets to more than 1,000,000,000,005 years without growing headcount significantly. why is it important to remain small the with respect to the number of staff while expanding so dramatically when it comes to asset size? >> i think it's important to know what your northstar is and what your dna is as a firm. a lot of what created our success is our culture. everybody is connected, people help each other around the world and ideas travel, relationships travel, that's allowed us to get to where we are. one thing where focused on is to make sure we retain that. as we've been building the firm, you add people before the businesses grow. it takes 10-15 years to get to scale him what we laid out yesterday's we have the people in the firm and we been building these platforms for the last 10-15 years and beyond so people are here and we are here and we're starting to get to this

inflection point. lisa: it raises the question about how you maintain a sense of morale and people not feeling overburdened while expanding assets. this is something that a lot of companies are grappling with now which is you want to scale up and not lose culture and not get too big and not have too many middle managers and yet people are getting exhausted. how do you prevent that kind of development? >> the reason people join kkr in large part is because it is such an entrepreneurial culture. we empower our people and encourage them to work and collaborate together. we don't believe in silos. we still operate kkr today or the eight years later as one firm, one global company and everyone is a part. the collaboration is what is the culture of kkr. lisa: you talked about ambitious goals across three platforms, the idea of asset management, the insurance unit and strategic holdings which you described as

some people might say a mini berkshire hathaway. why is berkshire hathaway but you are going for? >> strategic holdings is a segment we been incubating for the past seven or eight years. berkshire hathaway is an apt analogy in the sense we look at a lot of this as models and why some firms have been more successful over time and there are many powerful messages and what they have built. it's a power of long-term ownership of assets, great dozens is in the power of compounding and the real power of smart capital allocation within your business.that's what berkshire excels at doing. our version of that in strategic holdings we built a portfolio today within our core private equity business of 19 great businesses we expect to own for a long time. those businesses will start generating meaningful cash flow for us in the form of dividends. we started this business eight years ago and as those companies

grow and deleverage, they are now in a position to start paying meaningful after-tax dividends. what we announced yesterday is the dividend stream will be 300 million dollars plus by 2026, doubling and getting to over one billion plus. >> the background to all this is we are students of long-term value creation. when we became a public company in 2010, or market cap was 7 billion and now it's roughly 90 billion. what we are focused on is how to double that again and do it again. we look to the future and if you look at organizations that get above a certain size market cap, there per share growth slows in the denominator becomes heavy. the way we are growing today are c-suite planted 10 or 15 years ago with insurance we think we can double here again from day in strategic holdings that will have a significant growth should gentry. we created a model that as we

look for the next 10-15 years, we have a way to keep compounding what is now a large market cap at an attractive rate and not slow down the growth rate. as part of all this, we built all to beep able to retain -- to be able to return the culture. we started this part of kkr with no new headcount. it was a flow that was already in the firm. lisa: what will you do with that money? do you buy more companies? >> big part of our jobs in the next 5-20 years is that we think about redeploying the cash we generate in the business. what we talked about yesterday on investor day is the next five years and we think we will generate 25 plus billion dollars of cash at kkr. how do we redeploy that? some of it will go to the insurance platform and some of that will be with the right strategic m&a process we've done in the past and a lot of that will be to grow strategic

holdings and a lot of that will be for share buybacks. lisa: a lot of people in the industry are saying that private equity will not have the same kind of returns going forward they say part of the composition is not as lucrative because of high valuations. they say the exits are concerning. are you moving in the opposite direction and are you saying people are missing the point? >> we hear a lot of that. it makes us smile. business has continued to evolve. we had something like 15 investment people and now we have hundreds around the world and we have several different capabilities we build to supplement that. if you show up as a financial buyer today, you will not be able to do what we do. we've got teams that are 30 or 40 people, people focused on sustainability. the geopolitical institute run by david petraeus, you have to think broadly.

henry mcveigh runs our asset allocation management and we built these tools we can show up and act like a strategic buyer. how do we invest in good companies and help make them great? that's the business now. it's a bit of a misnomer. we don't think of ourselves as a financial buyer. we have to improve these assets and help them go global. >> our private equity business which we've been out for five decades, it's not a mature business. we've doubled the size of our global pe business in the last five years alone. we have flagship products in europe, u.s. and asia and a series of successful growth funds and technology in health care and sustainability and the world's largest core private equity business which is anchoring our strategic holdings. lisa: you talk about japan a lot and asia. why is japan so key to the expansion? >> asia for us is an area we've been growing for two decades now. it's an area where as a firm we

have been a dominant position, we've grown from 18 billion to 65 billion of aum in the last five years organically. it is the fastest-growing part of the world today, 60% of global gdp growth is coming out of asia, the most exciting consumer trends are coming out of their so it's a natural place for us to be focused. in japan a particular, it's 40% of her business in asia. given its two decades of deflation, it's coming out of this long economic morass and the implications for japan are profound in terms of where savings are going and corporate governance reform and the opportunity for us to buy great non-core businesses from conglomerate so it's a target rich opportunity. >> it's not just our asset management business. in the u.s., it's a $4 trillion

market and in japan it's a $3 trillion market. we see opportunity to expand in multiple parts in japan. lisa: many are focused on japan. kkr has a more dominant position and there is a focus on china. many people say we are getting out. you have a significant presence in china. how do you think about how that lives given the geopolitics of the moment which are highly uncertain? >> our approach to china has been consistent since we started. we have three offices in china so we are committed to that market. the complexity of investing in china's is much higher today. our focus over the last two decades has been on the consumer segment of china. the growing middle-class and urbanization trends in the marketplace and that's the sweet spot of the opportunity for us. we've invested in retail companies, branded consumer goods, health care. we are not leading into these

high-growth areas that are geopolitically sensitive like semiconductors or ai. we have avoided a lot of the areas that are currently creating turmoil in the market and we are sticking to our knit ting, consumer services. lisa: before i let you go, i'm curious that you guys have worked together for 28 years. i'm just wondering what you guys do every day when you come in? do you have a routine? do you check in with each other? do you ask about each other's families? how does that work? >> i don't think we have a routine but i think we've been such big parts of each other's lives, we are like family members. it's kind of a constant flow back and forth. there is not a routine but we've been together more than half of our lives. it's incredibly natural. we spend more time together than most families do. it's super easy so we don't give

a lot of thought to it. it's just how we operate. lisa: you just sort of say that's the way it is. >> our offices are right next door to each other. we see each other 10 or 20 times a day. lisa: there he is again. thank you both so much for being with us in the kkr headquarters, back to you. katie: that was the kkr co-ceos with lisa abramowicz. a great interview there's a let's take a quick check on the markets. the s&p 500 is still down not by very much but we are looking at back-to-back losses on the big index. the s&p 500 is still up about 0.8% this year. that had been above 10% at one point and we haven't seen that for a while and the nasdaq 100 is moving onto gains that are extended a little bit, up 0.4%. bloomberg technology is coming

up next but that does it for bloomberg markets. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

>> the heart of where innovation, money and power combine, -- collide, this is " bloomberg technology" with caroline hyde and ed ludlow. caroline: i am at the world headquarters in new york. ed: i am in san francisco. caroline golding up andy jassy says that the generative ai boom will be taking place on amazon services. ed: technological heavyweights to send