tonight a look at the world of private equity with steve schwarzman the cofounder and ceo of the blackstone group. >> what we're doing at blackstone is we're committed to hire 50,000 veterans over the next five years. i feel really -- >> rose: 50,000. >> 50,000. we have quite a large operation in terms of one of our seven business lines which happens to be private equity. we own about 80 companies with $120 billion of revenue and 730,000 employees. so our ability to hire 50,000 shouldn't be really hard for us. >> rose: also actor alan cumming who currently stars in the scottish play at the barrymore theatre. >> what i go back to is that moment you're going to do something bad or elicit. the moment that you look at someone else in the eye and say let's do it. even in they are stealing a mastery, let's do it. captioning sponsored by rose communications from our studios in new york city, this is charlie rose. >> rose: steve schwarzman here, he's the ceo of the blackstone group. he cofounded back stone in 1995 with peat peterson many it is now the world's largest investment firm with over dolla

. >> and john blackstone on goalball, the sport that gives em involved a whole new perspective. captioning sponsored by cbs this is the "cbs evening news." >> jeff: good evening, i'm jeff glor it has been a dangerous and deadly weather weekend. and tonight the threat is not over. here is a look at the storm system that first produced tornadoes in the midwest late friday. the front is moving up and out across the eastern portion of the country tonight. in south carolina a tornado touched down in anderson this afternoon. near the georgia border. we now know at least 11 people died in oklahoma. three in arkansas swept up in floodwaters. today oklahoma governor mary fallin toured the town of el reno. included in the toll there three storm chasers killed when a tornado took an unexpected turn. anna werner has more. >> amazing sight. >> wow. >> reporter: storm chaser and researcher tim samaras spent decades following tornadoes and developing research tools to help understand them. he starred in a discovery channel show "storm chasers" and in national geographic specials like this one.

and empty seats-- after a fourth grade who spent most of his life in america is deported john blackstone says his classmates are asking why? captioning sponsored by cbs this is the "cbs evening news." >> glor: good evening, everyone, i am jeff glor, we now know his name, age and reason. he is 29-year-old edward snowden, the man behind what has been called the biggest intelligence leak in the history of the national security agency. showden says he did it in his word because the u.s. government is, "destroying privacy and basic liberties around the world." jan crawford in washington has more. >> my name is ed snowden, i am 29 years old, i work for booz allen hamilton as an infrastructure analyst for n.s.a. in hawaii. >> reporter: "the guardian" released the interview sunday afternoon revealing snowden's identity at his request. a former c.i.a. technician who grew up in north carolina and maryland, snowden says he decided to leak classified information because of concerns about the n.s.a.s top secret surveillance programs. >> i sit at my desk, certainly have the authority to wiretap anyone

as john blackstone reports, the activity has become a bridge between both worlds. >> reporter: with aes, alex sundley is learning to play goal ball, game created for the blind. >> it's absolutely pitch dark. it is very hard to see. and i'm already losing balance. >> reporter: goal ball has been a paralympic sport since 1976. oshs it is played by blind athletes at a high level. but here in the gym at the university of california berkeley, the players are both blind and sighted. professor derek van sutton. >> all of a sudden the tables have turned and people who have always been sighted realize, wow, this is a very different reality. >> reporter: judith lung lost her sight soon after she was born, but she never lost her sight for equality. >> to have as much fun as everyone else. >> reporter: the rules of goal ball are simple. the lines on the court are marked with tape. the ball has bells in it so players can hear it coming. spectators have to remain quiet. that includes van dyke, judith's guide dog. attackers throw the ball, hoping to get it past the opposing team. defenders try to bl

john blackstone, cbs news. >> it's amazing what a group of determined fourth graders can do. >>> coming up on your local news on "cbs this morning," we'll go live to hong kong to edward snowden. plus, we'll get reaction on the case of senator rand paul. >>> and the bizarre twist in the 50-year-old kidnapping case. we will hear from a chicago man who was kidnapped as a baby. that's the "cbs morning news" for this tuesday. thanks for watching. i'm anne-marie green. have a great day. -- captions by vitac -- www.vitac.com 0001>>> this is kpix 5 news. >> she's amazing. good morning, everyone. it's tuesday june 11th. i'm frt . >> and i'm michelle griego. time now is 4:29. who are you talking about? >> you. it's tuesday. you are so well organized. >> 0 seconds before the show. >> it's all good. >> we got the fog out there this morning that's pushed on shore. and also seeing drizzle along the coastline. how long will that stick around ? talk about that coming up. >> things are quiet traffic wise. north of our camera 66

blackstone calling for a pullback.his guy has been watching and participating in the markets for decades. he is still buying. it is a ratings rumble. we told you about and tell. really giving the dow jones industrial the pop today. getting an upgrade to a buy sending shares higher. the analyst made the call goes head-to-head with an analyst saying sell after the break. ♪ you make a great team. it's been that way since e day you met. but your erectildysfunction - itld be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. itld be a question of blood flow. you cabe more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgent. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy engh for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause unsafe drop in blood pressure. do not

john blackstone, for "cbs this morning" john blackstone. >> i got justin bieber on my ipod.like him. i know what charlie's doing this weekend, justin bieber on his ipod. >> catching up on the kardashians, yeah, right. >> once we heard justin bieber then the kardashians, we knew charlie -- >> this is charlie's piece. >> john blackstone best part of the piece. >> if somebody's going to tell me a story about the kardashians or justin bieber i want it to be john blackstone and watch the u-turn there when he says cbs news, take a u-turn, sir. >> charlie goes now we're talking. >>> where have all the charming guys gone? we got one at the table, we said that, it's true. everywhere i go people say charlie rose. well' talk with a writer who says male charm is a thing of the past. >>> and a female fashion editor who doesn't buy it, that's goodnight. thanks, olivia. thank you. so you can make a payment from your cell to almost anyone's phone or email. (speaking french) so you can express your gratitude... in the moment. >>> can i buy you awe drink? great news, rocks, two limes. >> i'm

, of goldman sachs asset management, jim o'neill, author of the gloom, boom and doom report and blackstone senior managing director john kosinski all are coming up in the first hour of the show. >>> hi, everybody. welcome to a packed show, and we're not lying when we tell you that we've got some phenomenal guests coming up, so you'll want to stay tuned, at least for the next two hours to catch all these phenomenal interviews, especially given what's taken place in the markets over the last couple sessions. again, a reminder that we saw a huge sell-off, especially towards the end of last week. the selling continued here in europeay. overnight we managed to see a little bit of a reversal in that. ex-japan, we actually saw some of the asian markets faring a little better. the stoxx europe 600 gaining almost 0.9% at the moment. flat to higher at the moment. xetra dax higher approximately 1% right now and the ftse 100 higher by 0.6%. on the session, it's worth noting and super interesting to see here, ftse 100 now virtually having to erase all of the gains that we previously had made since the

you have the blackstone rangers, the gangster disciples to you at all these berries street gangs but, in fact, they are organized crime. but none of them of the reached the pinnacle of power that we call traditional organized crime we have in american society. and again, the two competing explanations are, first this idea that it came from sicily, which we called the alien conspiracy theory, that southern italian and sicilian immigrants brought the mafia with them to america at the turn of the last century. what the sociologist call the ethnic secession period is simply that various ethnic groups have used crime in order to advance in society. we look around today we see their often immigrants that come to our country. people who come in with no money are regulated so sometimes the worst neighborhoods, the poorest sections of the city, lack of opportunity, no jobs available to the and it ended even applies to african-americans who've immigrated from the rural areas of the south. and so they turn to crime. people are discriminated against, people who are excluded from social advancemen

blackstone buying 26,000 home in states.ding to "the new york times" the 68% of the damaged homes sold in april went to investors and not to first time homebuyers or individual families. do you think that's a problem? >> let's look at statistics a little more carefully. we're on pace to do something like five million homes a year of existing home sales. so a few 100,000 there or 10,000 there it's not a big share. even in the markets where investor demand was highest we're talking about 22, 25% of all sales. melissa: 68% of the damaged homes that is not a big shar that is 70%. that is 2/3. >> 68% of the distressed population. but overall population of homes for sale it is less than 2/3. basically 2/3 or more of the homes for sale are being bought by someone other than an investor. melissa: so, jed, i have nothing to worry about. what happens when tes go back up? when the fed gets out and rates start to go back up? go ahead. >> there are several things including rates going up that will probably cause home prices to slow down.

schwarzman is the chairman and ceo of blackstone group, a firm that has grown from having $400,000 ofs to over $200 billion of assets today. steve, good to have you on. >> it's good to be here. >> i've got to ask you about this big initiative that you have made in china, a program which will bring students from all over the world, the best and the brightest, to china in the way that the rhodes scholarship brings people to oxford. >> that's correct. what we're trying to do is take 200 people from around the world, 45% americans, 20% chinese, and 35% from rest of world, top 20 economies basically, and have them come to the university in beijing. the reason that we're doing this is because i'm concerned about what happens if china continues growing at double or triple the rate of the west. the west on balance isn't producing jobs. china is producing ten million jobs a year. with the burdens on governments and west, people are going to become more and more unhappy just generally. they're not so happy at the moment anyhow. if they see one country, which is now the second biggest economy in

blackstone group as of yesterday was planning to redeem some of the remaining $400 million. a swath of other investors were nervous about staying on board. on the flip side, the wealth management unit is largely sticking with s.a.c., who like their performance and understand the risks. of course. skybridge capped have said for quite a while they'll by remains loyal. no matter what el -- on the don't-know list are still hsbc and blackstone, since we don't know huch, if any, they've left in the fund. with $550 million in s.a.c. investments, they were one of the hedge fund's biggest external -- details on the redemptions will likely be -- as will a better sense of the fund's may performance. so far this year, they've been under-delivering, perhaps in reflects sure of the -- >> and trying to manage these accounts. kate, thanks very much. >> let's bring in our flend robert frank here. one of the theories that steven cohen may well get rid of the public money he manages, as some other big hedge fund guys have done in recent years. what do you say and what have you found? >> there

he'll explain, steve schwartzman, the ceo of blackstone, up next... ♪ and she forgot to pay her credit card bill on time. good thing she's got the citi simplicity card. it doesn't charge late fees or a penalty rate. ever. as in never ever. now about that parking ticket. [ grunting ] [ male announcer ] the citi simplicity card is the only card that never has late fees, a penalty rate, or an annual fee, ever. go to citi.com/simplicity to apply. or an annual fee, ever. at od, whatever business you're in, that's the business we're in with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your business our business. od. helping the world keep promises. >>> a very successful british businessman named cecil rhodes set up a scholarship to bring students from the british colonies, the united states and germany to study at oxford. the idea was to promote international understanding. 110 years later, a very successful american businessman named stephen schwartzman set up a scholarship to bring

nicholas king is deputy director and instead we now have the fabulous, the wonderful miss cammy blackstonec'mon up. so this year at this summit we've introduced something new and different for all of you to participate in. cammy is going to explain it and introduce it to you. >> all right we are trying to keep everybody engaged and involved. my new job is question queen. you may have gotten a yellow card when you came in. those are trivia question cards. i'm going to ask a trivia of questions. it's not a pop quiz. as we go through answers you can win prices. the first question, out of all the places that sell draft beer in san francisco. the number one seller is at&t park. who comes in at no. 2. don't shout it out. at the episode -- end of the program you can win prices. okay. we are doing trivia questions all through the program. okay. i would like to now bring to the stage supervisor scott wiener. [ applause ] >> good afternoon, everyone. thanks for having me today. i'm glad we are able to do these summits and bring everyone together to discuss our best practices and really embrace and m

. >> and john blackstone on goalball, the sport that gives em involved a whole new perspective.oning sponsored by cbs this is the "cbs evening news."

, and blackstone did not get a $2 billion loan from deutsche bank to buy gold.it to buy an income-producing asset, real estate. warren buffett and 3g capital of brazil didn't spend $23 billion on gold. they spent it on ketchup. they bought heinz. i like to say, he would rather own ketchup than gold at this point. yes, i don't think gold's going to go below $1,000, but i do think gold is very susceptible to heading well below 1,200, and even at that point, i'm not a bull under 1,200, because i don't foresee a big rally as it's done over the past 13 years with rates going up and u.s. dollar strength. >> do you think, jason, gold is a good indicator that the economy is getting better here in the states? >> yeah, absolutely. and more importantly, so is the stock market. really, the stock market, in my view, is really, i would say, the best indicator of how small, medium, and large, you know, big-big-time investors feel about the future, which is really what gold is and what the stock market is. it's not about what's happening now. it's about what people think the fu

>> we can hear from the entertainment commission oovment good evening board members, i'm candy blackstone, the director of the commission. executive director jocelyn is out of town. you have probably heard and now heard inflammatory accusations about the entertainment commission staff and i hoe that it does not distract from the issue at hand which is a basic issue. whatever is out there they are being handled at the appropriate venues. what you have now is a very simple issue. brick and mortar opened two years ago and almost immediately we started to hear from the neighbors. these neighbors described by these proprietors. they like music, they just don't like hearing it in their bedrooms early in the morning. after the brick and mortar failed, the neighbors came to the entertainment commission. the entertainment is task with permitting and the responsibility is to mediate disputes between persons affected by cultural entertainment and similar events and establishments and the organizers and operators of such establishments. over that directive, the entertainment attempted to work with br

a couple of examples: the blackstone group has purchased 26,000 homes, and colony capital, which already owns 10,000 properties, is said to be spending $250 million every month. lululemon is attempting to end the sheer madness surrounding its yoga pants. the athletic wear retailer is coming out with yoga and running wear that has more fabric across the back. the company's stock plunged in march following unwanted episodes of yoga pants made of a knit fabric becoming see thru when stretched. the stock has climbed higher since. reinforced black pants will be available this month. hilton hotels says it will no longer offer room service at one of its largest properties. in-room dining will end this summer at new york's hilton midtown - a long-time tradition, but the service is not profitable. the hilton ceo expects other hotels will also cut back on in-room dining as a way to boost profits. still to come, young, rich and ready to invest. insights from a guest who made it big at the age of 25. that's later. but first, tweet your way to a new job. why more companies are tapping into twitter to

group. >> what we're doing at blackstone is we're committed to hire 50,000 veterans over the next five. i feel really -- >> rose: 50,000. >> 50,000. we have quite a large operation in terms of one of our seven business lines which happens to be private equity. we own about 80 companies with $120 billion of revenue and 730,000 employees. so our ability to

and empty seats-- after a fourth grade who spent most of his life in america is deported john blackstoneays his classmates are asking why? captioning sponsored by cbs

for "cbs this morning," john blackstone, cal a bass sis, california. >> i have him on my iphone. grow up but i like him. i know what you're doing this weekend. justin bieber on your ipod. >> kardashian, catching up on the kardashians. >> once we heard justin bieber and then the kardashians, we knew -- >> charlie's in. >> exactly. if somebody's going to tell me a story about bieber, kardashians or anyone i want it to be john blackstone when he says he's with cbs news and they say take a u-turn. >>> where have all the charms guys gone? hey, we've got to one at the table. everywhere we go, they say charlie rose. >>> we talk with a male writer who says it's the thing of the check of your local weather. >>> so can i buy you a drink, kate? >> no, thank you. >> i'm going to buy you a drink anyway. grape, rocks? >> i'm trying to stay sober. >> what can i get for you? >> nothing. we're good. please, don't come back forever. >> in crazy stupid love, how not to charm a woman. writer benjamin schwartz says it's also a problem in real life. his article is called "the rise and fall of charm in

and talking about it with our john blackstone. >> reporter: it's a song that celebrates rock-and-roll. huey lewis and the news recorded it 30 years ago. on that album not one hit, not two hits, but at least four. >> don't embarrass me. reporter: with huey lewis on stage and fly-fishing near his montana ranch, we'll get to the heart of rock-and-roll ahead on sunday morning. >> osgood: faith salie confesses her attraction to refrigerator magnets. seth doane tells us how sesame street is helping children with parents in prison. steve hartman has the story of a love affair that was worth the wait. and more. but first the headlines for this sunday morning, the ninth of june, 2013. south africa's nelson mandela is again hospitalized with a lung infection. he's 94. we get the latest on his condition from reporter deborah pattah in pretoria. >> cbs news has been told that nelson mandela had a good night's rest but there is still no official word on whether there is any change to his physical condition. the last update still stands. he is serious but stable. and able to breathe on his own. his

. >>> plus -- >> reporter: i'm john blackstone. have rocked the boat and set the river free Ñáçwçñ >>> this is a kpix 5 news morning update. >> good morning everyone. it's 8:25, time for news headlines. a pot grow operation kept firefighters busy overnight. they got a call to a home after midnight. found marijuana plants in a hidden room behind the garage. looks like someone had been in the house when the fire started and took off. police are investigating the city's first homicide of the year. a man was found dead outside the lounge on east fremont avenue. a second man turned up at a nearby hospital. not clear what led up to that gunfire. so far no arrests. >>> and an limo fire left a group of elderly women scrambling for safety. 10 women were inside the limo yesterday when they smelled smoke and saw flames. most of the women were in their 90s. a few of the younger women inside helped the others to escape. an electrical problem was the likely cause. traffic and weather coming up right after the break. >>> good morning. first we ha

liz: is true but we just had byron wein a long time market watcher over at blackstone say, he absolutely sees fissures in the market, cracks and breaks and yet tons of liquidity is coming in. he says you have to stay in. he likes dividend plays. we look to see what is going on, friday we're seeing people calling the hindenburg open. >> that is baloney. liz: market watchers looking at all kinds of metrics. we closed at same level where we started to churn in may. you think that is baloney and we're not looking at a correction coming really soon? >> no, i don't know whether we're seeing a correction or not but i'm certainly not paying attention to an indicator called the hindenburg omen. let me tell you. indicators that work, you and i don't know about. if i know bit i'm not telling you about it. liz: let me ask randy warren what he thinks of the hundred den berg omen. i'm kidding. randy, when you see what happened today, major resilience in light of what could only be described as a peoplic economic data with ism looking at contraction. what do you make of this? are you the kind of person

you have blackstone that has the invitation homes and you have us and a couple good companies in thecompany viewed them as yold plays looking for a diffident. it's not about dividend. this is amazon at its beginning. what's coming through the pipeline of foreclosures is still monstrous. and the transition to rental, especially in a market that's as tumultuous is this, the bottom line in home building is there's too little supply of everything. everybody will benefit. multifamily will benefit, home builders will benefit. what's happening with home builders today is not that the numbers and starts are off, it's that they can't get delivery. they can't get delivery of finished slots, differ delivery lumber, delivery of concrete. the demand is way, way up. >> can you give us an idea of what the future of thei po may be? are you going to revisit it at some point if this story turns around? >> sure. we have $2.5 billion of private capital, and at the moment for total return we're so thankful to have it in private capital because we're not focused on the yield portion. we're focused on the

blackstone with a 40, $50 billion ipo of hilton still to come appears to have allowed one major hotelice. are you going to be doing that as well for your brands? will you drop room service as a requirement? and what will that mean for investors, for marriott investor and also for owners? >> for you or for anybody else who wants to check in and have room service available, come to the marriott marquee. >> so you will maintain. and how many of your hotels does room service actually run at a loss? >> oh, it's hard to make money on room service. >> run at a loss? >> undoubtedly that's why hilton has made the decision they've made. now to be fair, people do prefer more casual eating today. probably more gourmet eating today. we are at a more casual society than we've ever been so we don't see quite the share of volume in room service we've seen in the past. but we see on a night where there ask inclement weather, late check-ins, people don't want to go out to eat because of the weather, we'll do hundreds of covers in this hotel in the marriott marquee for room service in the evening. and t

blackstone.l comfortable exposing their clients to this kind of potential risk. >> okay. kate, thank you very much. kate kelly. also this morning, we have been tracking currency prices. dollar/yen gaining some ground. crude slipping below $100. joining us to talk oil is kevin kerr. and david wu at bank of america, merrill lynch. and larry bossidy, former chair and ceo of honeywell. you watched what's been happening. all the concerns with the nikkei and japan. do you think that's going to continue to hold sway the next few weeks? >> i think so. probably fair to say the single longest position in currency when anything else parties is dollar/yen. u.s. yields have been going higher. we have seen it actually the other way around. that just tells you how proud they have become and how vulnerable it is to a further shakeup. >> there's a lot of discussion about how currency manipulation is occurring among the various companies of the world. how widespread is it and what impact does it have? >> yen weakn

blackstone group has laid the ground work to pull substantial capital, probably in the hundreds of millions exactly how much yet. what's happening with other players like morgan stanley and hsbc is not yet clear, but is likely to be closely watched. others have pledged loyalty, though, including sky bridge capital and chapwood investments. but there's no doubt that losing even a small majority -- or, yeah, a small majority, a little more than 50%, that is, of the remaining outside money could be a huge blow, kelly and scott. one that could be hard to recover from. >> yeah. kate, thank you very much. kate kelly with the latest. as we watch a market, by the way, that's now up triple to the best of my knowledge its, 102 points, a complete reversal from what we saw friday when you had that last 30 minutes of trading as a meltdown for stocks, right now you're getting a melt up. highs of the day here as you have some buyers coming in. you know, some of the leadership stocks today, intel, got an upgrade today. that stock up 3.5%. it's been a stealth performer year to date. not talked about a lot.

cheryl: i want to show quick look at the five-year period really quick i want to go through these, blackstonevember 20, 2011. and this last stock, you pick this in october of 2011, if our viewers would have gone with you they would have made 70% on this stock. >> rising market helps a lot of stock pickers. it is the clear winner. cheryl: at the end choosing to be humble. glad to have you on the show. dennis. dennis: syria and the nsa snooping big topics for the g8 summit in northern ireland. peter barnes has the latest. peter: the president is performing in the g8 meetings and there is an uninvited guest at the table, edward snowden, ffrmer nsa contract worker who leaked details of the current surveillance programs. his latest disclosure to "the guardian" newspaper says u.s. and tradition spy agencies eavesdropped on communications of world leaders who met in london for the g20 summit in 2009 including then russia president, now russian president vladimir putin is attending the g8, and he meets one-on-one with president obama later today. the talks already going to be difficult because of sup

john blackstone caught up on "cbs news sunday morning." >> while the music industry has gone throughinyl, they bought it on tape they bought it on tv now they're downloading it. >> you're right. the timing was very good for us. ♪ the heart of rock 'n' roll ♪ >> reporter: not only has the music lived on since the '80s but so has the wardrobe. >> this is the cover made famous through mtv. i could probably get something on ebay for that. >> reporter: when lewis had his first top ten hit "do you believe in love" in 1982 music videos were -- >> i thought it was the worst thing i'd ever seen. it was cringe-worthy. so silly and stupid. at the end, everybody stood up and applauded. i thought, well anybody can do this. let's make videos of ourselves, that's was the inspiration. >> reporter: from then on, they produced their own music videos apparently not takes themselves too seriously. ♪ >> we weren't really concerned with our image that way. ♪ one that makes me feel like i feel when i'm with you ♪ >> i mean i don't even have a tattoo, you know? >> reporter: and his hobbies, golf and flyfish

for "cbs this morning," john blackstone, san francisco. >> senior correspondent john miller former deputynypd good morning. >> good morning, charlie, gayle. >> how significant is this for law enforcement officials? >> it could be a game-changer. you've got to remember since 1994 crime has been steadily increasing across the country because of new police strategy and techniques. the only thing we saw go up -- you saw the spike go up in new york washington, and milwaukee, and san francisco. it's larceny. we looked at what it is. it's iphones and other products ipad minis, iphones, and every time there was a new iteration there was another spike because, of course, everybody wanted to get the new phone. >> so if it's so effective, why are phone companies so resistant to it. >> gayle, the phone companies, developers apple, samsung, they're all good when they figure out something that's making them lose money or fix it so it stops. they can move very quickly. but in this case it's another thing. not only were they losing money from the phone thefts but everybody who had their phone stolen had

glencore, strata and blackstone group reportedly potential suitors in rio tint toe's canadian iron ore business in canada. that is valued at $4 billion. >>> pandora's shares experiences static on the news. the radio company will face new competition from apple. "wall street journal" is reporting apple signed a licensing deal with warner music group offer the weekend for the rights to recorded music and music publishing. >> on the upside, investors are bullish for cracker barrel after the operator posted a 30% jump in profits in third quarter as higher prices on the menu helped increase sales. moving forward cracker barrel raised its full-year forecast. that is the latest from the fox business network, giving you the power to prosper melissa: so even amid a wide-ranging insider trading investigation people still want to work at sac capital. so what is embattled hedge fund telling new job applicants? charlie gasparino is here with the latest as sac bryces for withdrawals. >> massive redemptions. we've been reporting this for weeks. melissa: people still turning in job applications. >> i

groups like blackstone specifically are focusing on regions like florida, california, arizona for theirareas. >> i was talking with someone who said he bought in 2004, 2007, in that period you'd still be underwater in your investments. there isn't a bubble in housing forming just yet, is there? >> i don't think so. not yet. in fact, part of that is driven by real low inventory. that's what's driving up prices. we're also seeing prices depressed a little bit. some of those sales, 18% of those sales, are still distress sales. the wages, the problem we have are wages are not keeping up with these rising prices but a majority of these purchases are still investors who are counting on rental income. we are seeing increases in rentals. we're not seeing prices that are exceeding the affordability indexes yet. there are targets for that. when you have increases like 15% a year, you know that's just not sustainable. >> brian, here we're seeing leads on wall street lose their appeal. do you think the housing sector is going to be under pressure here in terms of institutional investors? >> again,

if you look back to late last year, a good example that i learned about was blackstone looking to buy it was down to the wire. they were within 50 million euros. this is a 4 billion euro deal. >> 50 mill whereon ion is tiny. >> 1%. a little more than that. they couldn't make it happen. they were so tentative about the right price. >> which is sort of extraordinary. that's a deal we know about. what's happening to deals that don't even fwet to that stage? >> bankers tell me there are many, many deals that, you know, have never been reported or never announced that made it to, say, the fifth, sixth inning and maybe even later than that. maybe the ninth inning. and the buyers have walked away. for the same reason. if you look especially at the consumer product sector, those valuations have gone through the roof. some of these companies are at all-time high valuations. loreal, clorox, procter & gamble. in that sector it's hard to justify paying that much. there are unusual reasons why the stock is trading at levels. ceos aren't ready to go for it. >> the thing that's interesting about wha

executive blackstone mortgage trust. let's head to the new york stock exchange and alison kosik. good morning. >> good morning, carol. we're watching stocks add to friday's big gains. carried through the weekend. throw that momentum off track just yet. the economic calendar is quiet and no big earnings reports out today. one individual stock we're keeping our eye on today. mcdonald's. shares jumped 2.6% in may and this is significant because it's a big turn around after sales fell in the first four months of this year. mcdonald's says breakfast sales gave a big boost they recently added breakfast items to their after midnight menu. seems to be working for them. watching shares up 1.5%, helping to give the dow a little bit of a lift. dow up 21 points in the first few minutes of the trading day. carol? >> we'll check back. alison kosik reporting live for us. >>> in hawaii, a man is under arrest after getting his truck stuck in the pacific ocean. look at it there. police say the man was driving along the beach when a wave pulled the truck into the water. he is charged with operating

. >> blackstone, comcast, nobody knew at the time.specific reason. >> parks were up. >> parks wasn't the reason at the time. >> it's been a huge upside. and they're really well run, too. and i love them. all right. >>> how is the s&p doing? >> the s&p is doing well. we had a major breakout back earlier in the year. and we've done just fine until two wednesdays ago when we had what i would call a negative reversal pattern in the s&p. and that followed a test if we have the chart. >> i hear you referring to it. i keep waiting for it -- >> there we go. >> we'll talk more about disney ticket prices. >> this goes back to 2000. >> yes, well, what this chart is -- >> why is that significant? because we've been talking about it on this show. as of that thursday -- that was the bernanke day. >> the day that someone talked about tapering in the market. >> that's the march/april 2000 weekly close. that's a trend channel and you'll notice how lovely that line lines up from the 2007 highs. now we're above that line. so even though i think we have

key sac clients whose moves we are watching today include morgan stanley, hsbc and blackstone group andus first quarter. those companies were widely expected to pull some, i'll be back to you guys as soon as we have more on the numbers which will be forthcoming in the next few hours. >> in terms of the timeline for the potential charges being brought, and that is ticking down as well, isn't it? >> it is, david. there are two sets of deadlines that our viewers may want to keep in mind. one is late july, that's essentially the statute of limitations which is the five-year deadline for prosecutors to bring additional charges associated with matthew martoma. the trader who sold positions in two pharmaceutical stocks in 2009 based on inside information and theria a second deadline of late august. trades on dell and nvidia that have snared a network of current and former sac employees including most recently resulting in charges against longtime trader michael steinberg. that's a case that could potentially ensnare cohen as well. what's missing there and the reason people are focused on marto

blackstone, kkr, carlisle, "apollo," all public. >> right. >> i don't think any of them should be. >> you don't really know what they are when you buy them? >> just companies that take -- they are public companies that take other companies private. we get it. i know. fortress started it. >> how did that -- how was that deal? i think that deal was probably one of the biggest losers in history. >> fortress is even off its -- >> it's bounced from that critical 3-4 level. >> we haven't mentioned smucker. a name two weeks ago would have been the star of the show. 1.29. that beats 1.16. >> they made some great acquisitions. this is a fabulous company. maybe they can reverse three, four days of very bad action in the food stocks. another group that had been really holding up. that was the bond market equivalent stocks. i've been watching general mills. that stock is still only a few points off its high. again, watch these really high-quality companies. they will bottom first. >> we got a little bottom. at least the s&p is up just a tad, but it is up. >> hey, look, we're due for a bounce. whe