blackstone knocked it out of the park.hat specifically gave the company record quarters -- it is basically two categories, real estate and pe. >> let's talk about real estate first. private equity makes money from selling assets all right, and then they get fees for managing funds at a performance level that exceeds thresholds. complex,gate office they sold a ton of office portfolio. in its the fourth quarter, it took three companies public. hilton, extended stay -- >> all of these were huge, by the way. these are franchises. >> right. they are franchises, and they are usually marked at a lower level in the portfolio and they are when they become public, and after the ipo, think about ,ilton where it has performed giving blackstone a 10 million dollar profit on paper and that is reflected in the numbers. >> 40% of blackstone's investment last year were outside of the u.s.. where were they? >> it is an interesting statistic, a record amount of deal proportion outside of the u.s.. all of last year, for private equity in the

how do you plan to use the funding getting from blackstone?n doing some retail expansion in the u.s. is this expansion going to be here, globally? what are the plans now? >> i think number one, the investment from blackstone will be turned around and used to buy back common shares in the marketplace in 2014. we'll take about $150 million of our balance sheet cash we're able to repatriate into the united states, relatively tax efficiently without a lot of cash charges for the most part. it was non-cash return of capital into the united states. we're able to capture all that $350 million in total to repurchase shares. so we'll do that throughout the course of 2014. it will take us some time because of the market requirements that we have but, over the next six, nine months, we'll be in marketplace repurchasing shares. none of that money will be used for retail expansion. we are pretty excited about our 34th street, new york city location, opening up weather permitting. i understand it is snowing in new york. we'll be looking forward to a late ja

where is there tension in blackstone? in the way they render business? -- we way you describe it actually do not have tension. when i started, i came from lehman brothers. one of the interesting things was that this was an adjusting company. it looks like nobody stabs you in the back. they said, you're right. at our firm, we walk up to somebody and stab them in the front. i was sort of horrified. i would rather be punched in the face then stabbed in the back. >> it ended up being the case. one oyster to blackstone, we only wanted to hire nice people. set up a meritocracy, nonpolitical. about pretty ruthless making sure that those are the people who work at the firm. >> blackstone, ruthless nice guys. >> thank you very much. steve schwarzman is the founder of blackstone group. here with us in switzerland. will speakack, we with the ceo of coca-cola. we will also talk about herbalife. shares are plunging. bill ackman could be dancing in the streets in new york. we will have that in a few. ♪ >> you are watching "market makers." breaking news on herbalife. t

joining us in just a moment, judge six and ski -- just doesn't ski from blackstone.ki from blackstone. ♪ >> you are interested and enthusiastic about it for different reasons. john the, you have prude to be a great prediction maker. your crystal ball is almost flawless in its capacity. that quantitative easing in japan was going to get the japanese to start taking risk, behaving differently, doing different things. they did the deal with sprint. do we see it all played out or is there much more to come? >> you have an economy that is basically plateaued in terms of population. government that is providing funding to corporations, up to one percent. and you have a lot of companies that are very confident. it is what i call competitive and mende. they want to not only compete with the americans but they want to be the dominant investor in asia. >> can they be? >> the trading companies are interesting. there are four or five trading companies. they are focused on energy, infrastructure, and certain aspects of telecommunications. they are very communicative. i would not

john blackstone on the latest twist in the battle over the fate of jahi mcmath, the girl declared brain dead after a tonsillectomy. and steve hartman "on the road" with chris rosati and one very sweet dream. >> reporter: stealing captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> dubois: good evening, scott off s off tonight, i'm maurice dubois and this is our western edition. ice, snow, freezing cold, it is called winter and the northeast got plenty of it today and all the problems that go with it, including air travel problems that spread to the west coast. the storm is being blamed for at least eight deaths, most of them on roadways. the number of flights canceled over the past two days has topped 5,000, some places got as much as two feet of snow. boston set a record. and now the cold is moving in in much of the region. the mercury never got out of the teens today. we have a team of correspondents covering the storm and first karen anderson of our boston station wbz. >> reporter: well, maurice, tonight the temperature is hovering around five degrees wit

elaine quijano and john blackstone are on thor a father fights to save one life from the horror of war in syria. and if you don't believe in miracles, think again after steve hartman takes us "on the road." >> i will remember this game for the rest of my life. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening. this is our western edition. there is breaking news out of texas this evening. where a judge has ordered a hospital to remove life support from a brain dead woman. the hospital had refused because marlise munoz is pregnant. anna werner is at the courthouse in fort worth for us this evening. anna? >> reporter: scott, the state judge ruled the breathing st be turned off no later than monday afternoon. family attorney heather king said this shortly after the ruling. >> this is the decision we sought. there's nothing happy about today. this was a sad situation all the way around. we are relieved that eric munoz can now move forward with the process of burying his wife. >> reporter: marlise munoz was 14 weeks pregnant when her husban

john blackstone, cbs news, san francisco. >>> a major winter storm is pounding the northeast tonight. massachusetts is already gotten nearly 2 feet of snow. the blizzard conditions are expected from boston to parts of new york state. and as if that weren't enough, adriana diaz report, the sub zero cold moves in later. >> here it comes, the first major winter storm of the year began hitting the northeast hard thursday afternoon and won't let up until midday friday. >> strengthening overnight tonight and the heart of the storm that we'll be tracking. blizzard conditions are possible. up toward eastern massachusetts and the coast of new hampshire. >> and this blizzard is bringing heavy snow. >> over a foot in greater boston. in new york city, a half a foot. >> massachusetts governor told state workers to stay at home friday and urged private employers to do the same. >> it helps us help you if people stay off the roads as much as possible. >> new york city's new mayor on the job for just two days has prepared the city's street fleet. >> as soon as we have at least 2 inches of snow, they

john blackstone fills us in on this landmark decision. >> reporter: sergio garcia was alone if his chicoornia, office today when the state supreme court issued its decision granting him a law license. >> it has been a long, long journey going on five years, you know? i graduated law school in may, 2009, and here we are 2014 and we finally have a final piece of the puzzle that will allow know fulfill my dream and become an attorney. >> reporter: he was brought to the u.s. from mexico when he was just 17 months old and has been waiting for his green card since 1994. he passed the bar exam on his first try but because he's undocumented federal law prevented him from getting a law license. california and its governor have given more and more rights to undocumented immigrants, they can now get driver's licenses and qualify for in-state tuition. another law forbids police in california from turning people over to federal immigration authorities for anything other than major felonies and sex crimes. but federal law prohibiting employment of undocumented immigrants could still present a barrier

. >> with more is byron wayne, vice-chairman with blackstone advisory partners. welcome back, brian. great as always to see you. we will get to the markets and emerging markets and fed and all of that. in light of what steve was just talking about, i know you to be one of the most thoughtful guys on wall street. what do you think about income inequality in america, and what do you think if you see it as a problem would be the best way to address it? >> well, steve, i think there are very good job of talking about the fact that you have to have a number of programs. income inequality is caused by globalization, it's caused by technology, it's caused by problems in our educational system. it's caused by cultural problems. the number of kids being raised in a family without two parents. it's caused by the concept of education in the united states where we put everybody in an academic track. we don't have vocational training. at an early enough age. so there are a lot of changes that would need to be made in order to bring the people who are disadvantaged up the soci

here's john blackstone. >> reporter: jahi mcmath's family continues searching for a facility willinge the 13-year-old who was declared brain dead after surgery to remove her tonsils at oakland children's hospital. the family is fighting to allow her to receive a tracheotomy, to have a breathing tube insert sod she can be moved jachlt high's mother, nailah wingfield. >> i feel like i'm dying. because i want her to see 2014. >> reporter: in a letter, the hospital wrote: the family's attorney, christopher dolan, says they are looking for a doctor to perform the surgery. >> we just ask that you would have the compassion and the good medical ethics to abide by this mother's wish and reach out to us. e-mail me. >> reporter: hospital spokesman sam singer. >> it's a very difficult catch-22 that the mcmath family attorney has create which had is he keeps wanting to make people believe that this young woman is alive. she's not. >> reporter: mcmath's family says an outpatient facility called new beginnings in new york state is willing to care for her, but its location is one in an industrial pa

john blackstone, cbs news, san francisco. >>> on the "cbs moneywatch," snapchat beefs up security anderios goes back to basics. wendy gillette is at the new york stock exchange with that and more. good morning, wendy. >>> good morning, anne-marie. asian markets saw week trades. hong kong's hang sing lost 2.5%. the shanghai lost more than 1%. toqky tokyo's nikkei was closed due to holiday. the markets in this country will be pay close attention what outgoing fed chairman ben bernanke has to say. he may indicate possible further reductions in the stimulus program. stocks fell yesterday. the dow jones industrial lost 135 points. the nasdaq composite fell 33 points. >>> snapchat says it will put out a new more secure version of its app. hackers breached the messaging service on new year's eve and posted 4.6 million usernames and phone numbers to a website. snapchat is popular for its perceived privacy. pictures and messages disappear after ten seconds at most. >>> the employees of american airlines have voted on the paint design for the tails of american jets. this is the winner. red, whi

john blackstone reports the bulbs that will replace them will be much more efficient. >> reporter: thefire station number 6 in livermore, california, is still burning 112 years after it was first turned on. retired deputy chief tom brammell has traced the bulb's history. it's still used in this fire house? >> absolutely. when all the lights are out on the floor here, this still serves the firefighters as a night light. >> reporter: it shows just how little the incandescent light bulb has changed since thomas edison. 90% of the electricity they use is lost as heat. >> they're essentially heaters that make a little bit of light, and we need to move on. >> reporter: michael siminovitch runs the california technology lighting center at the university of california davis, where they are looking for the replacement. for a few years now, we've been told we should replace this with this. >> yes. >> reporter: people hate them! >> we had something that was tremendously efficacious, very efficient, lots more unit light for unit power, but it didn't satisfy the consumers' demand for light. >> repo

john blackstone, cbs news, san francisco. >>> president obama and michelle obama are sending get well wishes to barbara bush. the 88-year-old former first lady is being treated for pneumonia at a houston hospital. a spokesman said she is responding well to treatment. >>> well, coming up on the "morning news," snapchat security failed. the popular photo messaging app is hit by hackers, and the personal information of millions is leaked. details in "moneywatch." you're watching the "cbs morning news." ywatch." you're watching the "cbs morning news." we have a situation. what? we're out of dunkin'. [ gasps ] emergency backup. awesome. one taste, and you'll understand. where would you be without me? where are my keys? enjoy delicious dunkin' donuts coffee anytime. pick some up where you buy groceries. america runs on dunkin'. can help your kids' school get extra stuff. they're the only cereals with box tops for education. you can raise money for your kids' school. look for this logo. only on big g cereals. you can make a difference. every cereal box counts. orange juice...tomato sauce...

the blackstone and equity bought the snack part of the business for 4 billion pounds. they will bid. what we don't know if that will translate into a bed itself. so much for now. stay with bloomberg tv. we will be back with the pulse that is next. in the meantime, you can follow all of us on twitter. . . >> the big names in sport come to bloomberg. we are going to talk to the people leading red bull and arsenal to commercial and sporting success. >> getting personal. attemptsh president's to jumpstart the economy are overshadowed by his affair. >> shares in the uk's largest luxury goods maker surged as its digital presence delivers. good morning. you are watching "the pulse." we are live from bloomberg's

it all works for blackstone. it goes with the tape today, blackstone traded at levels we haven't seen since the ipo. they report at the end of the month. bx, the works. >> i would argue that this stage of the cycle, you should be glad to see competitive buyers as opposed to financial buyers or trophy buyers. when you see blockrock buying cable properties, that's when to get nervous. but we're not there yet. they make sense fundamentally. >> it's another reason to be optimistic about the markets overall? >> cash flow for all of these companies is booming. name one that's struggling. >> that's why charter can pull this off. they're a guppy biting off a big fish here. that's why time warner has been dismissive. >> this makes for a great trade. $130 is now your floor. $160 is your top. somebody's going to bump this up. i would buy time warner. >> could today's earnings jitters be a bad sign for what's to come this season? with us is adam parker, morgan stanley chief and managing director. nice to see you. >> thanks f

we talked about blackstone earnings yesterday, 40% of their deals last year were done outside of the.s. >> that's right. when you talk to investors and the private equity managers themselves, the place they have the easiest time rising -- rais ing money for is asia. kkr raised a big asia fund overnight. it took longer to raise their .ig u.s. focus funds that seems to be an indicator of where the deals are in where the appetite is. >> i know the blackstone is opening or least raising money in asia. they're asia seems to be getting a lot of attention. >> that's right. part of what is driving at is the competition we talked about earlier, if a known u.s. property is going up for sale there will be a lot of money going towards that. emerging markets, frontier markets we are hearing about a lot, even laces like africa. -- places like africa. >> i was talking to a friend of mine last night who is building up this e-commerce platform for african goods, for people who are traveling from africa, often to europe or year or asia. a lot of new money is there. >> absolutely. and technology has ch

five years ago blackstone was outputting money to work. what drove this quarter was the performance of their assets on the balance sheet. i think that's going to continue. also, as the markets recover, there's a huge market for like they did with hilton. they brought that company public and realized a huge gain. the story is still out there. also an etf that covers a lot of the private equity companies. psp. >> court, take the over on under armour, that stock is ripping. >> exactly. if you sell a good product, folks will buy it. hope for retail on wall street today. @let tick wear maker reporting financials beating on the top and bottom lines issuing revenue guidance stronger than estimates and saw their margin expand. that's a new one. thanking the cold weather for strong sales of frees and infrared goods for cold weather gear. warning the athletic maker up 22%. voe hae i have volume, all-time highs. >> love it. >> you said you trimmed some the other day. >> yes. >> you told too earl. >> i that's why i trim, part of the discipline. i'm st

john blackstone and mo rocca are taking sides.e for yourself. >> reporter: you have to admire a city that reaches for the sky. denver has the rockies but seattle has two impressive mountain ranges. the olympics over there and this cascades this way including one of the most prominent mountains, mt. ranier. >> did you sea ranier or rainier? seattle is a total drip. denver is sunny 360 day as year. need an umbrella? i don't. >> nice try, mo. in fact, when it rains it's more of a spritz than a downpour. it's true cloudy dale yy days triple sunny ones. but you can warm up with a cup of coffee. look, a starbucks. >> by the payway, who brings a latte to the tailgate? in fact in denver we're all about beer. the first pub was opened up by the governor john hickenlooper. >> be careful, missouri. one beer goes a long way. >> reporter: the first group opened up here in washington state in 1982. drop in to the pike brewery and you can lift a glass of kilt lifter lifter scotch ale. and wearing a kilt is fine if you wish. it's a hip still. >> r

cheryl: talking about the blackstone angle in all of this. the company publicly-traded.pun off the ipo last year. what does blackstone have to say? >> that is the important question. here's what is going on. the company is in damage control. it is doing things like blame the trainer mentality at the company. it is trainer's fault, the woman who died, saying that her ponytail was a novel object in the whale's environment. when she wore a ponytail around that whale for six years. trainers testifying at the osha level, excuse me the appeals court level that the ponytail was not an issue. so again, the top spin on damage control. what happened was, blackstone, classic private equity lbo model, meaning leveraged buyout, took the company public but loaded it down with $1.9 billion in liabilities, including 1.6 billion in debt, much comes due by 2020. they need the min the door. they need to bring in ticket sales. seaworld out yesterday on other media saying hey, we are going to preannounce 1.46 billion in record revenues, not preannouncing profits. not preannouncing rising cos

blackstone is a great firm, though. it is smaller, more entrepreneurial.t is a tougher choice now, and these private equity firms and something smaller is very compelling today. >> all right, rob. >> that is a noncommittal answer. >> always great to get your thoughts. rob kaplan joining us from harvard. >> when we come back, we will talk about glaxosmithkline. the company says no to driving doctors anymore. >> more in two. ♪ >> you are watching "market makers." glaxosmithkline announced it would stop paying doctors to promote its drugs. some would call the practice bribery. that is going to bank far. the law decides what bribery is. but it is controversial for sure. let's establish for everybody what glaxo was doing exactly. >> it is hard to believe, but this was a totally industrywide standard practice, and it was so for decades. what these big pharma companies do is pay doctors to go to speeches, meetings, and present on their drugs. shocking, right? >> but to prescribe their drugs gekko those are two different things. >> to present on the drugs and thus

i loved blackstone last year., i would be doing the same thing blackstone is. stratus is one of the leaders in a completely revolutionary technology that's changing the whole manufacturing land scape of the world. i want to be long that. cheryl: all right, jason, i've got three seconds, not three hours. thank you very much, sir, appreciate it. >> thank you. cheryl: closing bell's going to ring, we've got about six minutes to go. will tim cook prove to be the apple of wall street's eye? we're going to find out in less than 30 minutes when the company reports earnings. david asman, he is in the studio ready to roll, "after the bell" coming up. ♪ ♪ and she might have if notor kari, the identity thief who stole jill's social security number to open credit cards, destying jill's credit and her dream retirement. every year, millions of americans just like you learn that a little personal informatioin the wrong hands could wreak havoc on your life. this is identity theft. lifelock offers the most comprehensive identityhe

john blackstone on the landmark decision. >> reporter: sergio garcia was alone in his office when the supreme court granted him a law license. >> it has been a long, long journey going on five years, you know. i graduated law school in may 2009 and here we are 2014. and we finally have the final piece of the puzzle that will allow me to fulfill my dream. >> reporter: he was brought to the u.s. from mexico when he was only 17 months old. he passed the bar exam on his first try but because he is undocumented, federal law prevented him getting a law license. but federal law could still present a barrier for garcia. in its filing in the case, the justice department says issuing a law license would not imply authorization to work in the united states. >> the state of california in general, i have their blessing so nothing stops me from being a licensed attorney now in california. >> there are several cases pending in california and new york. california passed legislation specifically written to help garcia qualify for his law license. >>> tonight, snap chat says it will roll out a more sec

reported by john blackstone. >> put 20 million songs in your pocket technology has revolutionized the way we enjoy music. the way the music business is trying to keep itself in business. >> the phoenix will have to rise from the ashes. >> ♪ >> later on ""sunday morning," the sounds of music. >> osgood: it's complicated is simple way of describing any -- aspiring engineering following in his footsteps. we'll see that. >> hammer a nail, sounds simple, right? wrong. >> what is going to happen is it will hit the ladder. >> it's complicated. very, very complicated. >> ahead on "sunday morning", the rube goldberg concept where less is never more. all this to hammer a nail? >> osgood: academy award calls for "the envelope please" is weeks away which gives us time to meet the multiple nominee serena ultimate soul. >> "philomena," the drama has received four oscar nominations. >> i was surprised by how much humor you had written in. >> it's funny and sad. it fits very well together. >> we'll fit together with steve coogan ahead on "sunday morning." >> osgood: snoop dogg is a rapper with a very

he says what blackstone's looking for is the right size space in the market.ow, a recent investor survey from pwc found warehouse is the strongest prospect for both investment and development in 2014. according to two-thirds of survey respondents, they thought warehouses were a buy. that's the highest of all the real estate food groups, by the way. how to play the warehouse game? reit's alexander goldfarb says you want to look at the smaller names, those building within major metros. that's where amazon will go. that would be the east group, e-g-p. he has a buy on that one. other warehouse reits include dct industrial trust and first industrial. we are now seeing more spec development in warehouse, especially in markets where housing is recovering like arizona and california. the headwinds to building smaller facilities close to the major metros is you have to compete with office and retail. still, it is a growing, growing sector. >> it sure is. thanks so much. appreciate it. >>> well, the stock market's still in the red but we bettered our position by about h

elaine quijano and john blackstone reason r on the story. a father fights to save one life from the horror of war in syria. and if you don't believe in miracles, think again after steve hartman takes us "on the road." >> i will remember this game for the rest of my life.

blackstone group had a blockbuster quarter as it churns out initial public offerings and real estate deals. ipos included seaworld and hilton hotels - the largest ipo ever for a hotel company. the hedge fund's revenue climbed 119% to $2.69 billion, up from $1.23 billion last year. the government wants more money from bank of america. the justice department says it will raise a penalty fine, to 2 billion dollars, up from 863 million. b of a was found guilty after its countrywide unit sold faulty mortgages during the housing crisis. the government wants the fine to be based on countrywide's gross revenue from the mortgage fraud... not just gross losses from the loans. bank of america has no comment. banks are easing up lending standards. the office of the comptroller says it's happening as banks compete to keep up with loan demand. it shows banks are willing to take on more risk. "banks are only willing to take on more risk on loans where the ease of repossesing the collatoral is really good, or the performance of loans is really good." that was greg mcbride of bankrate.com. the occ re

teams sent by large-scale institutional investors like blackstone to bid on still hot commodities, foreclosed homes. >> i don't think there's any chance this is going to be over for at least another two years. >> reporter: the company key property services buys and rehabs foreclosed homes and sells them to investors at turn key properties. >> third and final call. we have sold it subject to the receipt of funds for $160,000. >> reporter: some investors who got in early on the single family rental trade are already getting out, taking advantage of sharply rising home prices. but others are just moving their operations. >> as the foreclosure discount has gone away in some of the warmer states, investors are looking for markets where they have properties that fit their sweet spot of somewhere between 85 and $150,000. >> reporter: atlanta's a hot market now because it's still in the early stages of investor demand and home price appreciation. that's why these investors will spend tens of millions of dollars in one day on homes they've only seen from the outside, because they know the kind of retu

john blackstone on the landmark decision that just cleared the way for him and others to practice law. >> reporter: sergio garcia was alone in his chico office today when the state supreme court issued its decision granting him a law license. >> there has been a long journey going on five years, you know, i graduated law school in may 2009 and here we are 2014 and we finally have a final piece of the puzzle that will allow me to fulfill my dream and finally become an attorney. >> reporter: he was brought to the u.s. from mexico when he was just 17 months old and has been waiting for his green card since 1994. he passed the bar exam on his first try but because he is illegal, federal law prevented him from getting a law license. but federal law prohibited employment for undocumented immigrants is still a barrier. in its filing in the case the justice department says issuance of a law license to mr. garcia would not imply authorization to work in the united states. >> the state of california in general, you know, i have their blessing and so there's absolutely nothing that prevents me f

. $1.1 billion deal in september, a big deal for the services from blackstone.he line of thinking that i'm getting inside the firm is that kkr as an industry focused model , and has a team that does industry investment, tech investment, and health care investment area with these three groups and has all of this expertise that he can look into insurance. it has all of these eyes looking at desperate -- different aspects. the equity role is to go in and unlock value. what is so undiscovered about insurance? >> that is one private -- part of private equity, the other part is very stable crash" low capital expenditure. thiss interested in company is one of the legend is what can kkr do differently that previous owners have not done. >> it seems like more and more in retail, you have them buying one pe firm and selling another. what is the second, third, or fourth feet from going to do differently -- pe firm going to do differently? >> exactly. the only have 1000 employees in u.s. and canada, they're looking to go international. claims, andcomp other employee claims

elaine quijano and john blackstone are on thor a father fights to save one life from the horror of warnd if you don't believe in miracles, think again after steve hartman takes us "on the road." >> i will remember this game for the rest of my life. captioning sponsored by cbs this is the "cbs evening news" with scott pelley.

john blackstone on the latest twist in the battle over the fate of jahi mcmath, the girl declared braina tonsillectomy. and steve hartman "on the road" with chris rosati and one very sweet dream. >> reporter: stealing captioning sponsored by cbs this is the "cbs evening news" with scott pelley.

>> we spent a lot of time talking about blackstone, kkr. grabbede the names that the headlines.o invest in companies with about $250 million in revenue. this is what private equity does. even fuller brush going back to the fuller brush man of long ago. it is one of those classic rioted equity firms that looks for companies it can buy and fix and distribute profits to their investors. uncomfortablehis link between private equity and politics, it seems as if mitt romney struggled with that during the campaign a little bit. the traffic between the two fields is so common. >> this is an interesting indication that clearly there aren't too many hurt feelings and people are fairly comfortable with what private equity does all reports to do. the statement announcing that he was going to the firm, joe lieberman mentioned his record of reporting small businesses when he was in the senate. certainly a different tone of what we had heard during the presidential campaign when president romney -- when mitt romney took a lot of heat from the campaign. the idea that joe lieberman is drawing a

from a business perspective, blackstone group is the largest alternative asset investment in the world. steve schwarzman, would he invest in iran? >> we are a long way from that. this is a forbidden country now. >> maybe for not much longer. >> that is why he is here. >> for americans, nothing will change unless we make some type of arrangement. we tend to be pretty cautious people. even though iran has been around for a very, very long time, you would have to see if things normalize and get a sense of what is going on. it has been a productive country with a smart population, well-educated. >> the ukrainian president was banned from coming to davos. you must come here and look for interesting places to invest do you think there is opportunity there or is it not a place you would touch? >> mostly i try to invest in places that i would like to visit twice, as a simple rule. >> that is a good rule, actually. the bahamas, for example, where adam johnson is right now spending the weekend. more from carlos ghosn and his plans for production ramping in china. first, carl icahn once split svi

he bet on blackstone.ears ago, people were laughing at him. >> and if you were in gold, it is down. thee did talk about incredible salaries that bankers make and how they always argue that you have to pay people that are going after hedge funds. i wonder if people might start coming back to the bank, because at least you know you will get a guaranteed income. >> a job at a bank is a much more secure position. you'll get a big payout at a hedge fund. i'm going to show up and get a 17% payout. but if you do not perform at the end of that month, a secretary you've never met before will show up at your desk with an empty box and say, "there's the door." they had a big year at the bank. >> they did, relative to payouts and so forth, but they delivered. they had great performance. some of the hedge funds made some big bets and lost. again, if you think about the m&a market,-- the and some of the ipos, the mix has had an impact on the market. >> but was sam was saying was that risk-adjusted returns and value fund

fromw joint bids blackstone and from a european private equity firm, and leonard green and partners. >> thank you as always for the latest on carlyle, picking up about $4 billion. from private equity to the larger investment landscape, the sec is warning fixed income managers about structural risks in the bond market. and the is with me founder of nt advisors is with us. when we think about bond risks, it's usually about rising rates have not structural challenges. >> it is quite interesting. warning about a all of this. you see the cover and you think they're just saying watch out for rising rates, but they are talking about an interesting structural issue. this will illustrate the point really well for old --. this concerns how much bond mutual funds have grown since the 80s. if you look at the chart, it is in orbis growth. >> that is billions. >> it is a large number. hugelyve is streaking up over the last you years as everyone has run away from stocks will stop rex is the point then that there are major outflows and that is a disturbance? rex as part of the point. the second arti

blackstone went public in 2007 at $31 per share and in the past few weeks it has eclipsed that figure first time. and that is by virtue of almost doubling over the past year. the big story behind that is their ability to get into businesses that are not private equity, that are a bit more predictable and are therefore drawing more and more investors into their stocks themselves. the stocks that are traded on the stock exchange, and in carlisle's case, on the nasdaq. more and more investors are piling in to get a piece of whatever magic they seem to be working, not just in private equity, but in areas like hedge funds, real estate, and soon mutual funds. >> worth paying attention to, after all. jason kelly there, managing editor of "bloomberg link." when we come back, last year was a great year, judging by performance, for frontier markets. the frontier index is up 20%. more on whether or not that momentum can continue, straight ahead. ♪ ♪ >> investing in frontier markets is a hot discussion, and for a reason. the frontier index is up more than 20% last year, outperforming emerging-mar

blackstone are building up massive war chests that are not even equity focused at all. >> your point idea here is to try to control some of the risk you may or not deal with. that usually means, if you take my money, i will put these three people on your board whether you not -- whether you want them there or not. capital wayman and to try to control it. >> we are talking about an increase in financial engineering. it is still very pure. very pure, a very simplistic model of you have got a company and i want to invest. they do not want control. the minute they take control away from a ceo, you could probably write off the company. it means the company is -- is in trouble. as the businesses mature, you can look to professional management. in the early companies, you want someone who has had the passion. way clear and much less financial engineering than upstream. quest that is true and it is interesting thing about the difference of control. it is an equity firm, interesting recent example of a private equity firm not taking control, although making an investment but not willing to go

what does this mean for blackstone? isknow invitation homes securitizing some rentals. >> renting and not buying is very good news for these folks. that is the entire investment piece for them, their ability to go in, buy foreclosed homes on the cheap, fixed them up to whatever extent they can or want to and then rent them out public who is much more inclined to rent than buy. that provides a very stable income stream that they can securitizing to something they can sell on the public markets to investors who can take advantage of this security that is out there and then play the housing market in a different way than we certainly saw a few years ago when it was all about rmbs and other more complicated things. a got a lot of people in trouble. >> hold that thought, -- it's got a lot of people in trouble. >> hold that thought. , don lindsayback will be my guest. why he still likes u.s. stocks. we will also talk about the other asset classes that he is looking at. and connected household appliances, the difference betwee

. >> john blackstone reveals what protesters are really mad about next on "cbs this morning." stone with what the protesters are really mad about next on "cbs this morning." it's kinda crazy around here sometimes. no. tonight, i got the favorites bucket. shhhhh, they're eating. kfc favorites bucket. 10 pieces, any recipe you want $12.99. i even get my favorite. extra crispy boneless. thank you. ♪ ♪ play close. good and close. help keep teeth clean and breath fresh with beneful healthy smile food. with special crunchy kibbles and great taste... ...it's a happy way to a healthy smile. beneful healthy smile food and snacks. [announcer] welcome to the all-new intuit quickbooks. run your entire business with it. get paid however you want with it. get real work done wherever with it. make all your numbers play nicely with it. say "buh-bye" to the old way with it. run payroll with your finger with it. scan receipts with it. sync this stuff with that stuff and that stuff, with it. maintain your sanity with it. this is your business on the all-new quickbooks. run with it. [ female anno

private equity firms and probably should not call them anymore -- alternative asset firms like kkr, blackstonethis recent acquisition will go to $29 billion. $30 billion is nothing to sneeze at. >> it is a significant chunk of change. jason kelly with me this whole hour as my special cohost. when we come back, jason and i will be focusing on privacy and security. will bef fire eye with us. in the next hour, the next- generation mobile payment option. matt harris will be our guest. he will tell us about the start up that he sees nipping at the heels of a just -- of jack dorsey's square. ♪ >> as soon as next week, president obama will be calling for tighter limits on u.s. spying on foreign leaders. this is according to an official familiar with proposal. the restrictions are part of an effort to curb nsa surveillance. snap chat, the data breach on new year's eve, more than 4.5 million users data exposed. today, snap chat officially apologizing. cyber attacks are becoming more prevalent. adobe, facing issues where sensitive user information was stolen. hacking and buying is big men -- is big busi

as john blackstone reports his explanation may not win over detractors. >> i deeply apologize to youristallnacht as a sign of oververt or latent sem met ettism. >> reporter: he said he regret regretted the analogy, but not what he called his larger warning. >> when you start to use hatred against a minority it can get out of control. >> reporter: perkins croat i would call attention to the parallels of fascist nazi germ fannie to war on its one percent namely its jews to the progressive war on the american one percent, namely the rich. perkins has never shied away from his wealth. in 2007 he gave "60 minutes" a tour of his 288-foot yacht, still the largest privately owned sailboat in the world. >> what does it say? >> it's really something, rarely does one have the privilege of witnessing vulgar ostentation displayed on such a scale. >> you're saying it yourself before anyone else can say it. >> i said it. >> reporter: perkins sold the yacht in 2009 but he's held on to his defiant attitude. >> it's absurd to demonize the rich for being rich and for doing what the rich do which is get

. >> let's start off with julie blackston. she's 56 years old from el segundo, california.as she can remember and she has begged us to give her a brand new style. let's take a listen to her story. >> well, thanks for taking a lot of time to make the sign. but it is a rhyme. i'm not asking for a lot, just make me hot, because i am cold. but we picked you and tell me how you feel. >> i am so excited. i waited for this forever and i just can't believe it's happening to me! >> and mike's a trooper. because she makes you watch this every week and says i want this. >> every thursday morning she records it, and then we watch it in the afternoon. >> and then you brought her here? >> yes, we did. i brought her here just for this. >> aw. we love that. so romantic. so we're going to make you hot for him. what do you think? >> i can't wait. i can't wait, i can't wait! >> there is mike with his blindfold on. all right, mike, please keep that on until i give you the green light to take it off. >> he's happier than he looks. >> here is julie before. all right, julie, let's see the new you