david rubenstein: sure.ric: the standalone, as you know, talked about killing fields in the hedge fund industry. david rubenstein: the hedge fund industry is gigantic, $1.3 trillion. modest now to this gigantic industry. it is about the same size as private equities. people are investing because they want higher rates of return and lowinterest rates public equity returns. people think you can get better rates of return with hedge funds . some have had problems like the macro funds. people willnk realize you have very smart people, highly motivated investing their own money it with investors, and it will be likely over a longer period of time. eric: is it too much chasing this opportunity? david rubenstein: a lot of the money is outside the united states. $3 trillion is not what it was 10 or 20 years ago. it does seem like a lot but not compared to the total size of money under management. you have $75 trillion in assets in management around the world, so $3 trillion is not that big. in general, the global ma

witha: we are starting up rubenstein of the salt conference in las vegas. the challenges facing private equity, investors, searching for alpha and high-yield. also speaking with israel's finance minister. we are asking him about the rescue fund and the country's problems and if they can shore up fundamentals as well as the 50 year bond on the heels of the same thing. also looking at the four seasons restaurant, celebrating that restaurant which has done so many deals over the years areas will become of the power small risk? coming up, a look at the agenda. ♪

coming up later on bloomberg markets, david rubenstein.the carlyle group which barely speaks of -- on politics and philanthropy. look for that at 10:00 a.m. good morning. ♪ data checks are always good even when there is no data. 8.n't forget dow closing 17,92 priced to perfection. the gloom crew vanquished in the last few days. nymex crude south but still elevated. right now let's get to bloomberg business flash. nejra: thanks, tom. two largest office-supply company in the u.s. have abandoned their merger. agreed withdge antitrust officials who oppose the combination of staples and office depot. they said it would hurt competition and lead to higher p rices. walmart has fired the latest shot and its fight with visa. the world's largest retailer filed a complaint and says visa wants walmart to verify debits with signatures. visa isn't commenting. toyota says that annual profit will probably decline for the first time in five years. japan's largest company is forecasting that currency swings that had led to record profits are posing a proble

erik: david rubenstein of carlisle said he was surprised that so many macro managers got it wrong. were you surprised? >> i have to be surprised because we have been tripped up a few times in the last 18 months. i think it the extraordinary cautiousness. if you look at the federal reserve, in addition to their mandates, they have added a third one which is the rest of the world. when you strap on an additional mandate at will, it has made it difficult for us to predict how they will respond. erik: is size a limiting factor? you have about $800 million under management and a makes you wait nimble. some of the macro funds, are they too large? >> i do not want to pass critical comment on might p or group. eriki think the markets have chd dramatically. there has been a dramatic transportation in terms of risk-taking and price making an price taking. the price making environment has become constrained by regulatory burdens. thanks no longer are willing to take on risk. access inwe can markets has shrunk. we normally have very liquid instruments so that's not an issue but things adjust q

david rubenstein will join us from the sky bridge alternative conference in las vegas starting eastern 3:00 london time on wednesday. ♪ mark: live from london and new york, i am mark barton. betty: i am betty liu. a look at the biggest business stories. botox maker allergan will buy back $10 million in shares in the wake of its failed union with pfizer. dropped sinces pfizer walked away. allergan is focusing on completing the $40 million sale of its generic business. volkswagen closing in on a fix for the tainted diesel engines in the u.s. they say the fix would resolve part of the testing scandal and reduce the risk of an expensive buyback program. bloomberg business flash. let's go to the market desk where julie hyman is looking at the corporate movers. julie: a lot of them having to do with earnings. : minera earnings after the close of trading. --: minera earnings after the close of trading's pretty can see shares plunging by 12%. by 7%.ore sales fell old navy was down 10% incomparable terms in april, 2.6% increase is what analysts estimated. i used our bloomberg intelligence tools

erik: david rubenstein told the yesterday he was surprised so many micromanagers got it wrong. are you surprised? >> i have to be surprised because we have been tripped up a few times in the last 18 months for sure. i think it reflects the cautiousness. if you look at the federal reserve, they have an addition --their primary mandates when you strap on an additional mandate at will it is made it difficult for us to predict how they are going to respond. erik: is size a limiting factor? are some of the macro funds -- you have about $800 million under management, are some of them just too large? >> i don't a pass critical comment against ip or group -- my peer goroup. i been doing this for 30 odd years. in that period there has been a dramatic transformation in terms of the price making environment. it's become very constrained by regulator burdens. thanks no longer take or warehouse risk. the liquidity we can access in the markets has definitely shrunk. we deal in very liquid issues. that is not normally an issue that you get air pockets were things, i just here he quickly almos

will be, bloomberg tv speaking with david rubenstein of the carlyle group life from the conference in vegas. that is an exclusive interview only on bloomberg television. still ahead, today's options insight. plus, at the bottom of the hour, amazon shares hit $1000? that is what one analyst is saying. we will be back. ♪ betty: stocks are rallying for a third straight session. on pace for prospective gains in a month. julie hyman is standing by with how the options market is trading. you.: thank with me right now to talk about the options insight is allen, chief strategist at bull's-eye options out in chicago at the cboe. the vix. slump in is it five straight sessions we have seen the vix going, and yet they're still feared -- it still feels like, even though we are rallying, there is underlying sentiment problem. are you seeing that still expressed in the options market? >> fear is a natural emotion. stocks may do lows last week, it did not punch about that 17, so we saw bullish diversions and since that time, the market bounced back, showing the sellers were may be a bit tired. thanmo

next week, bloomberg will be in las vegas and speak with heavyweights by david rubenstein. want to know what they think about the economy. does that affect their decision? we can find out more about that. thank you for watching. scarlet: see you back here next week. joe: have a great evening john: with all due respect to donald trump, you have been digging yourself out of so many situation it is time you wore the proper gear. [cheers] john: we have some not so minor news for sports fans. the republican party is still in recovery mode after

witha: we are starting up rubenstein of the salt conference in las vegas.uity, investors, searching for alpha and high-yield. also speaking with israel's finance minister. we are asking him about the rescue fund and the country's problems and if they can shore up fundamentals as well as the 50 year bond on the heels of the same thing. also looking at the four seasons restaurant, celebrating that restaurant which has done so many deals over the years areas will become of the power small risk? coming up, a look at the agenda. ♪ ♪ jonathan: a good day for the city of london, the brexit continues. john osborne testifying in front of the treasury committee talking about the costs and benefits of the eu membership. and most say this capital investment will be canceled if eu.u.k. leaves the the sheer weight of opinion leaves the brexit making u.k. forward. i guess this is what this is what it is, battle of opinion, and it will continue up until the june 21 referendum when the british people will answer the in then, leave or stay european union. 25 minutes until th

vegas, today from las david rubenstein told erik schatzker about his expectations for a rebound in theustrye hedge fund has grown into a gigantic industry, more than three -- more than $3 trillion in the industry. probably the same size of the private equity, slyly bigger. people are investing because they want higher rates returns. with lower rates on bank deposits and equity funds. problemsds have had this year. but people will realize that you have very smart people, highly motivated alongside the investors and is slightly they will do pretty well over a longer period of time. : is $3 trillion to much money? being a lot more is invested outside of the united states now. it does seem like a lot, but not compared to the size of the total money under management. a locked inis not that context. what you have a preview of the others are experiencing. are you surprised by the size and scale a redemptions and the losses that hedge funds have experienced lately? david: the last five quarters, i more.you have seen money has been taken out of the industry before. will thrive again. i can't sa

joining me, david rubenstein , cofounder of the private equity group and the self-described patriotichilanthropists taking an interest in preserving and in some cases owning some of the nations most prized historical landmarks in the world's most influential documents. president of the schmidt family foundation and founder of its 11 our foundation focused on wide use of natural resources among other philanthropic endeavors and is also the founder and vice president of the schmidt ocean institute and peter, the directory of the fund and the chairman of the board. welcome to all of you. i apologize in advance. forgive me if i am appear sniffling. let's start by asking a little bit about the way you were raised. you grew up as an only child in a jewish neighborhood in baltimore. so how are your ideas of philanthropy formed as a young man? >> i would not say philanthropy was 1st in my thoughts. getting through the day and having enough money to do basic kind of things was what i was focused on. i would not sell our parents were against philanthropy. they give what they could, but they wer

.: our colleague schatzker has talked to david rubin thine -- rubenstein.f bullishness about the market. a lot of skepticism. let's get a check on the equity markets. futures are a little bit softer through much of the session. the footsie -- ftse will have the longest losing streak lang into the bearish sentiment. the dollar is firmer. a little bit lower on the session now. crude oil. matt miller. we have been talking about what is going on with jcpenney. the stock literally getting decimated as they cut back. nordstrom is also cutting back. across retail, especially the apparel spectrum, companies are getting hit hard. consumers are not going to the mall. they are generally spending less. sorry, this is the wrong chart. let me pull it up. i'm going to save this for later. out this here -- this is the savings rate in white. you can see it jumped up to 9% back in 2012. this is consumer spending. what i like to do with this chart really is taken look at it on one axis. you change this -- i think it gives a better picture. you see consumer spending bouncing a

joining me david rubenstein, who is the cofounder of carlisle group and a self-described patriotic philanthropist has taken an interest in preserving and owning some of the nation's most prized historical landmarks, wendy schmidt, a founder of its 11 hour foundation focused on wise use of natural resources among other endeavors. she is also the founder and vice president of the schmidt ocean institute. and peter cobbler, the immediate past chair of pancan, the pancreatic cancer action network and the chairman of the board of the cobbler foundation. welcome to all of you. great to see you. i apologize in advance. i have a terrible cold. let's start by asking a little bit about -- talking a little bit about the way you were raised. i know, david, you grew up as an old child in a jewish neighborhood in baltimore. your dad was a postal worker. your mom a stay at home mom. how were your ideas of philanthropy formed when you were a young man? >> while i wouldn't say my parents were against fill l philanthro philanthropy, they gave what they could to charitable things. i didn't get into this until later

joining me david rubenstein, who is the cofounder of carlisle group and a self-described patriotic philanthropist. he has taken an interest in preserving and owning some of the nation's most prized historical landmarks, wendy schmidt, a founder of its 11 hour foundation focused on wise use of natural resources among other endeavors. she is also the founder and vice president of the schmidt ocean institute. and peter cobbler, the immediate past chair of pancan, the pancreatic cancer action network and the chairman of the board of the cobbler foundation. welcome to all of you. great to see you. i apologize in advance. i have a terrible cold. let's start by asking a little bit about -- talking a little bit about the way you were raised. i know, david, you grew up as an old child in a jewish neighborhood in baltimore. your dad was a postal worker. your mom a stay at home mom. how were your ideas of philanthropy formed when you were a young man? >> while i wouldn't say my parents were against fill l philanthro philanthropy, they gave what they could to charitable things. i didn't get into this until l

i think about david rubenstein and the money he's given to some of the memorials including the washingtonphilanthropy has been central to the parks system before there was a parks service. a number the major parks are a result of gifts. it's a big part of even what happens today. what's being talked about now is not philanthropy. it's merchandising, marketing, co-branding and selling things. and that's something that's -- we've never seen before. having civil servants work as fund-raisers and using tax money that would otherwise go for park maintenance going to donor maintenance, we think should be rethought. >> we've reached out to the national parks service, they did provide a statement saying basically some of the things they have been thinking about is allowing rooms inside some of the park buildings to be sponsored for a limit of five years. when you make a donation for something like that. does that sound reasonable to you? >> those sort of things are allowed now. they're proposing something different. the fact that they're not coming on the show is an indication they don't want to