blackstone's not going under. blackstone has a monstrous business. they manage other people's money. they get paid a fee to manage that money. their clients will lose some money and they have lost some money. every private investment that you have in your portfolio, you probably should mark down 30% though the privates won't for awhile and hopefully the market bounces back fast enough that you don't have giant mark-downs in these private portfolios. blackstone's not going to go bankrupt. they might have some portfolio companies that suffer. but they are a well-capitalized firm themselves and they make fees. so again, it's just take the tone down. it doesn't help to add kerosene to a flaming fire where people are panicking. we have had unbelievable wealth destruction. you put bill miller on the phone or some value investors, people are opening up and starting to buy here. liz: what are you buying? >> it's time to start buying, from the fang stocks which have gotten beaten up, that have businesses that aren't going away to cash flowing stocks in the fo

we heard a similar comment earlier from blackstone. we have also heard from italy's three individual large-cap also --s that is scarlet: what is the weakest part of the financial markets? following on that headline about carlisle. we have an over-leveraged corporate sector. is that the weakest part of the financial markets that could bring us down another leg? jason: i have to say, i am particularly worried about the down banking sector. i saw the press conference with major banks. of course they are probably over-capitalized right now, which is wonderful. but you have this massive expansion of nonbanking sectors. private equity and the like. i am not sure that has been stress tested. in some ways, it is a function of financial suppression and keeping rates artificially low. such a largeng nonbanking sector, it is never really been stress tested. so to me, that is what concerns me the most. it is the biggest unknown, i will put it that way. joe: in terms of the systemic risk, one of the things that is characterized -- that has characte

john blackstone is in san francisco. >> reporter: the luxury cruise has now become a military operationith the department of homeland security at the helm. some time monday, 3,500 passengers and crew on board the contaminated vessel will dock in a secure area at the port of oakland. from there, the government's plan has them going for medical screening and monitoring during a 14-day quarantine to 1 of 4 u.s. military bases. on "face the nation," u.s. surgeon general dr. jerome adams insisted to margaret brennan, that would keep the virus contained. >> people who are infected are going to go to military bases all around the country? >> well, the plans are still being developed, but i want people to know that we are not going to put infected people into communities, infected people will be isolated appropriately. >> reporter: on board, monica actor is one of the passengers waiting for what's next. >> hopefully testing and then we'll show negative and wehiton e,he there 16 confirmed deaths of residents of the life care center, authorities will do post mortum coronavirus testing on 11 other

romaine: maybe we should get the head of blackstone and carlyle group. scarlet: this is bloomberg. we are going to hand things over to emily chang. emily: welcome to an extended hour of markets coverage. many thresholds crossed today, and none of the good kind. the s&p closing a whopping 19% from its closing high just last month, shy of entering a bear market. dow sinking into a bear market and ending the longest bull run in the history of u.s. stocks. oil also dropping. treasuries advancing as advanced -- investors flock to safe havens. the w.h.o. is officially called the coronavirus outbreak a pandemic. the number of cases and the death toll rising globally. president trump has yet to detail any stimulus plans to stem a potential economic slowdown. big tech names also feeling the pain. uber and lyft plummeting amid concerns everyone wants to shelter in place. let's get straight to abigail doolittle in new york. give us the big picture on the pain. abigail: truly a brutal day for markets in the u.s. and frankly, around the world on these coronavirus fears, what the impact will be

blackstone offering $6 per share for property developer soho china.the former malaysian prime minister joins us to look at the country's revamped cabinet. that is coming up in about 20 minutes time. haslinda: and oil comes charging back from an historic crash, but there is still a price war going on that got us there in the first place. this is bloomberg. ♪ is is bloomberg. ♪ checkda: let's do a quick on the asian markets. hong kong currently up by .5%. blackstone is offering six hong kong dollars for a share of soho china. a whopping 38% higher today. csi 300, pretty much flat at 4000. the number of coronavirus cases has now passed 110,000 globally. china has been reporting fewer new cases. infections have risen elsewhere. pay top w.h.o. official says -- a top w.h.o. official says there should be no let up in efforts to contain the virus. itthis is no guarantee that will remain so and we have to remain vigilant. there is no room for complacency. paul: our china correspondent selina wang joins us from beijing. what is the latest in china and what is t

because its portfolio companies would go bankrupt ackman apparently according to forbes calling blackstonezing to say he is buying those shares tonight i haven't independently confirmed that and that's what forbes is reporting tonight. amazing thoughts from ackman today. some taking them as too alarmist, scaring people, blaming him for causing even more selling on wall street. others tonight, suggesting that his call is right, that the government does need to do more. it was certainly talked about throughout the day today, he saw it to clarify what he was saying at points after our interview going back on twitter today and suggesting that he is still positive on the market he said he was buying a lot of stocks he's long america. he just says it's predicated on the fact that the government is doing even more than it's doing now. he thinks that it will, and that will come out better on the other side so whereas some took his comments as, you know, a doomsday scenario and i can understand why some people would certainly take it that way he is out saying today and tonight that he is long the m

>>here's vta spokesman ken blackstone by phone. >>learned the car operator trainee for light rail service. for covid 19 come late yesterday with 6 trains in operation at the time the entire system was shut down about 11:00pm wednesday night. >>the tea a ordered all operators to shelter in place until they receive further guidance about quarantine and possible testing. >>as for any risk to riders what we're going to possibility that's what we are in the investigate ing in trying to find out. >>to what extent that may have occurred. i do want to say one thing about the light rail operators is that they are inside of a they do not have any interaction with the public. >>unlike a bus driver, those buses must now pick up the slack going forward. the da says buses are more nimble and can adapt to the ever-changing needs of the community. >>temporary bus bridges may also be necessary. it's not clear just how long the trains will be idle. >>that's something that we're actively uh uh working through. we opened as as it is. the ga says both

john blackstone is in san francisco. >> reporter: the luxury cruise has now become a military operationh the department of homeland security at the helm. sometime monday 3,500 passengers and crew on board the contaminated vessel will dock in a secure area at the port of oakland. from there the government's plan has them going for medical screening and monitoring during a 14 day quarantine to one of four u.s. military bases. on "face the nation" this morning u.s. surgeon general dr. jerome adams insisted to margaret brennan that would keep the virus contained. >> people who are infected are going to go to military bases all around the country. >> well, the plans are stil being developed but i want people to know that we are not going to put infected people into communities. infected people will be isolated appropriately. >> reporter: on board monica achter is one of the passengers waiting for what is next. >> hopefully testing and then we'll show negative and we can go home. >> reporter: and in washington state where there are 16 confirmed deaths of residents of the life care center, aut

the deal would be one of blackstone's biggest that yet on china.der says opportunities may increase amid market turmoil as the virus outbreak hurts company valuations across the world. air france expects to cancel 3600 flights in march due to the coronavirus. it is reducing capacity by 13% on long-haul and 24 on its networks. qantas is cutting a quarter of international flights for six months. the biggest reductions are in asia, but it is reducing service to the u.s. and u.k. that is your bloomberg business flash. matt: laura wright in london with your business flash. shiffler has reported full-year revenue 14.4 billion euros. the german autos supplier says it expects revenue growth this year of between -2% and zero. that's not really growth, is it? revenue contraction this year .etween -2% and zero shares currently up 3% in the premarket trade. joining us from music is the ceo of schaeffler and i'm assuming the forecast for contraction is a lot to do with china and the coronavirus. how severely is that impacting your business? klaus: good morning.

blackstone and carlisle are telling portfolio companies to do whatever it takes.rolled by private equity prices are joining the wave of companies -- lines of credit. amid the global pandemic and an oil price war. that is your business flash. a quick flash of how these markets are doing. you are looking at the bears in charge of the equity markets. an implosion of confidence in the response mechanism from the united states. the dow jones went into bear territory. the question is, as a bull ends without any warni where is the market -- where is the money flowing to? preparingf japan is its response mechanism. you are looking at a wipeout of a trillion dollars on the equity market of the united states of america. trillion on the equity market of the united states of america. may find a cheery note in the equity carnage. who is that brave person on wall street? maybe they are the most prescient of them all. >> i know you have been looking all day for a silver lining. i have it and it is one of your guest hosts at socgen. strategist andy she says by year-end they see t

blackstone group reportedly is on the verge of making one of its biggest bets ever on china.s reporting the firm will take property developer soho china private. the price, $4 billion, almost twice what soho china's market value was. alix: thanks so much. one other story i'm watching, the new reality for american shale producers. almost all wells right now drilling in the u.s. lose money. here's the deal. at current prices, it is unprofitable to drill in shale fields. only five companies in two area in two areas have lower breakevens when you factor in all of the production issues. even with the permian, you need oil prices over $40 a barrel. let's pretend like you are able to drill for $30 a barrel and you have really great productivity. you also have to keep the cash flowing to reinvest in the wells and keep them pumping, and that means more money. you also have to pay dividend, may be shareholder buybacks. that is going to wind up costing even more money, coming out of this severe cash flow -- this cash flow that is now it severe risk. , energyp, amrita sen aspects chief o

but there is quite a disparity between the top paid executives at blackstone or kkr and their medianworker. abigail: where there -- alix: where are they competing with talent? theyil: dave -- sonali: been competing everywhere, and this shows you just how far the ceo is. is 200 to one.it you look at the financial industry, and it seems really start, but you look at the tech industry and wonder if it is worse there. alix: thank you very much. in today's bloomberg green, called ceo mike worth for reducing emissions within its own operation. if you look at third-party assessments of flaring in the permian basin, we are the leader. a wide range of companies -- leader against a wide range of companies. we have not set long-term targets. we've begun to march down the path of taking concrete actions that reduce emissions. we learn more, we invest in technology, and keep that going overtime. alix: he went on to say he wouldn't commit to a new budget -- a new budget. coming up on this program, we are taking a closer look at how the fed emergency rate cut is impacting u.s. spreads. if you are j

sonali: they're really amazing skip yesterday for my colleague, blackstone telling banks to -- let'sr private equity firms follow suit. this is not hurting the banks today, but it could hurt them in the future if these companies are not able to repay those obligations. but there's not only that -- for cash -- there's not only that dash for cash. there's also downgrades of a lot of credit also. so they are saying it is not a systemic issue as of right now. the banks are much better capitalized than they were before the crisis. but with that said, it could still be a significant strain moving forward. alix: not only that, but it is not just the banks that have exposure. it is a different fear than it was in 2016. but are we hearing about shadow banks or other issues? sonali: the shadow banking industry really stepped in when banks stepped out. you saw michael corbat saying yesterday that small and medium businesses will be hurt the most. that is where the private credit industry is really lumped in. that is longer-term monday, but with that said -- longer-term money, but with that said

to show is doesn't all have to be in technology it could with cvs and health care it could be a blackstonen financials that has so much dry powder that when things get disstressed, they have the ability to go in and buy companies and they're also well diversified in other assets. so when i look at louis for example, people are going to spend more time at home and they're going to spend more time you know building up their kitchens doing other work there so here's a company again that's not very levered that is a consumer driven company and i think once we get back to some type of normalcy, this is a company that i think is going to attract a lot more capital. a lot more interest. so what i was trying to do is say hey, you don't just have to be focused on one different area it's faangs are great, but then if you spread it out and look at health care, look at industrials, you look at you know, consumers discretionary, there are opportunities there that i think investors if you own them, hold them and if you havecapital and the appetite, add to companies like that >> all right thank you both

steve schwartzman from blackstone robert smith from vista equity jeff spreker from ice and the new york stock exchange as well as paul tuesday r jones what the federal reserve can do to stop some margin calls and when exactly the economy would be right for reopening. president trump said earlier today that he is targeting april 12th easter for a date that he would like to date for the economy to reopen he told these individuals that it can't be shut for six months although he knows it can't reopen tomorrow. >> i was just wonderfing how tht sort of new posture from the president is going down in washington with other lawmakers. certainly here in new york, governor cuomo did not sound like you know, he was on board with that idea about reopening the economy. in new york, at least, it's all about saving lives, trying to get more hospital beds and ventilators. how are other people reacting to this >> it's a delicate dance to walk, sara i think there are a lot of officials who acknowledge the detriments to people's psyche and the economy would only worsen the longer that people are in ice la

joining me on the phone right now is ken blackstone, a vta public information officer.ou for taking the time. i know it's very busy for you right now. you got word of this worker being sick, infected with covid-19. was it last night? >> yes, we just learned late last night and took the immediate action that we did. >> and the immediate action being that you completely shutdown service. tell us what is in effect now. do you have the bus bridge going? >> we don't have a bus bridge per se because the bridge is typically between point a and point b of something that is shutdown, but right now we are directing people to our bus service and the bus service is up and operating right now. >> i understand it was an operator trainee? >> yes, that's correct. it was an operator trainee for the light-rail. >> do you know how much contact this person could have had with the public? >> we are learning the information right now and we will know more later today. the one thing about light-rail operators is that they are in a confined space, a little bit different from buses, so they don

>> caller: professor cramer, i heard some pretty disturbing comments about blackstone today.gvery professional. [ technical difficulties ] i'm a long-term investor and what i'm looking to add and i've begun adding today to my portfolio. it is uber >> well we're trying to -- look, we got to be like the financials have to be so steady here. i got triple a. that were shedding points. so as much as i like to drive uber, not a lot of great stocks there really well and that ladies and gentlemen is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪ swhere my hobbits at? play lord of the rings. play my "straight outta the shire" playlist. i want to see the king. find lebron. search more cartoons. play the last o.g. take me to the streets, play sesame street. me want more cookies. [cooking show] soft and cookie-like on the inside... find the things you love with a voice command. introducing at&t tv. with live tv and access to streamin

here's vta spokesman ken blackstone by phone. >>learned greater trainee for light rail service. 19 come too >>yesterday with 6 trains in operation at the time the entire system was shut down about 11:00pm wednesday night. the dta ordered all operators to shelter in place until they receive further guidance about quarantine in possible testing as for any risk to possibility that what we investigating and trying to find out. >>to what extent that may have occurred. you want to say one thing about the light rail operators. inside of a cab. they do not have any interaction with the public. >>buses must now pick up the slack going forward. the da says buses are more nimble and can adapt to the ever-changing needs of the community. temporary bus bridges may also be necessary. it's not clear just how long the trains will be idle. >>something that we are actively working through. it is. >>da says both the trains and the buses were already being deep cleaned and sanitized prior to that rainy operators positive test in san jose rob fladebo

here's vta spokean ken blackstone by phone.earned of the car operator trainee for light rail service. covid 19 come yesterday with 6 trains in operation at the time the entire system was shut down about 11:00pm wednesday night. >>the dta ordered all operators to shelter in place until they receive further guidance about quarantine in possible testing as for any risk to possibility that what we are. >>investigating and trying to find out. to what extent that may have occurred. you want to rail operators. inside of a t cab. they do not have any interaction with the public. >>buses must now pick up the slack going forward. the da says buses e more nimble and can adapt to the ever-changing needs of the communy. temporary bus bridges may also be necessary. 's not clear just how long the trains will be idle. >>somhing that we are actively working through. it is. >>da says both the trains and the buses are already being deep cleaned and sanitized prior to that rainy operators posite test in san jose rob fladeboe kron 4 news. >>it's ca

president, as well some wall street heavy weights ranging from dan lobe to steve schwartzman of blackstone getting their assessment of how healthy the markets and the economy are right now and what more the federal reserve could do to stabilize those markets and to inject capital into the economy. they discussed their outlook for the u.s. economy and president trump today said that they are saying that gdp could take a 25-point hit and it is likely that that room of heavy weights, brian, is who they are >> kayla tausche in washington, kayla, thank you very much >> all right now let's bring in guy adami and tim seymour. guys, i want to listen to this to highlight how volatile the markets have been, the 11 largest point gains and drops and four of the largest pesa percentage moves of all time have now come in just the last three weeks. we are literally re-writing the record books in many ways. do you believe, guy adami that a stimulus plan will calm these markets at all or is kind of the expectation already priced in? >> it will help, and it's great to be back with you. >> it clearly will he

. >> the head of blackstone.you think we should take stakes in these companies like warren buffett does. >> exactly but i would even do it in a lower-risk fashion and i would rather take more rather than let us write checks into the equity part of the capital structure because if we can get senior debt or claims on senior debt, the down side in a worst-case scenario is not as bad as having equity wiped out >> there's a lot of people i know and a lot of people and the viewers and they might be watching at liairlines and the rank and file out there who need a job, but it is a debate right now that is starting to be fired up airlines spent by some measures $3, $4 trillion on stock buybacks over the last decade, boeing, 40-plus billion or so until they stopped their program last year. do the airlines deserve a buyback after spending all that money buying back their own stock or a bailout, i should say? >> i mean, look, that's a real political conundrum. the bailing out of the financial services industry and other com

have also added to names like visa, to zoets, a veterinary products company we have added some to blackstone, because it got totally destroyed to salesforce.com and to paypal and we also sold a few names, because we thought we could, as i said, upgrade the portfolio. they were good companies, but might have trouble in a market that isn't going to have tolerance for companies with little cash and very little cash flow to sustain themselves so, we're not buying lots of names or lots of new positions, just microsoft but we are adding where we thought it makes some sense. >> yeah, joe, you know, take us to the whiteboard again. you have clearly written a bunch of stuff up there for a reason, presumably, the kind of things that you're looking at, whether they're stocks or otherwise. >> well, i'm trying to keep it simple and i think you have to really not address so much that the market is going to be up 20% in six months or we can take out new lows just simplistically, on the top of the board, i'm looking at the credit markets i'm seeing the tightening of spread and improvement and i think what's

present in attendance from the bank side will be the ceos of bank of america, citi, wells fargo, blackstone, citadel and the president and coo gordon smith in place of jamie dimod still recovering the focus on lending to small and medium-sized companies and the most obvious action for the government to ask regulators to reduce the amount of capital banks have to have to hold against the loans in return for the banks agreeing to extend loans to clients feeling pressure from the virus and expect the topic of the functioning of markets and levels of liquidity to be discussed. ceos might be asked if there's tweaks in regulation in that area to help enhance the liquidity in the short term. we are not expecting anywhere near the level of widespread action seen by the government in italy, for example, where all interest payments have been su spenlded that said, it is rare that we see this level of financial ceo together in one place and the ability for them to try to calm wider market fears including about their own share prices is significant and want to listen to any comments on those lines late

, the hotel industry, the restaurant industry and by the way private equity goes bankrupt okay blackstone's a fabulous private equity firm. they do a tremendous firm but every one of the companies has a lot of leverage. every one of the companies goes bankrupt if it's out over 18 months. >> we'll finish this interview and some who have listened and listened intently are going to say, you know, on one hand, bill scared the living you know what out of me and now i'm even more concerned than i was before and yet he's buying stocks so you must have a level of belief in you that we're going to do what you suggest and that we will emerge better on the other side. >> yes okay because this is the only answer. okay and if the president hasn't already gotten to this answer, he will get there very, very soon he is a very smart man he's motivated to do what's in the best interest of the american people. he wants to get re-elected in november not very far away. if he can save the country from the coronavirus, he will get re-elected okay if we are in a long, drawn out disaster where the airline industry

heads of the ceos of the largest banks in america as well as a number of the goerldman sachs ceo, blackstone ceo, number of big, big financial minds in there. they are obviously talking about how to keep this going, how to turn the markets around and allay the fears that are out there in the markets right now. liz: got this hitting the tape. i promised our viewers as soon as we get this information out of the meeting with the president, the president is saying quote, he thinks there will be pent-up demand when coronavirus outbreak is over. hopefully in the not too distant future. jackie deangelis igs s on the fr of the new york stock exchange. you have headlines on amazon? jackie: yeah, these are coming from dow jones, saying that amazon is announcing paid leave for hourly workers who are ill or quarantined, and that it could announce new policy for these hourly workers on wednesday. that's today. so waiting to see if there's more on this. but amazon, hourly worker policy would cover warehouse employees and it's very specific to the coronavirus outbreak. finally, amazon to announce $25 milli

ian with blackstone group, reportedly on the verge of making of one of its biggest bets ever on china. produces soho china will be taken private, the price, $4 billion, twice what the market value was in january. that is the bloomberg business flash. francine: italy has gone into a nationwide lockdown, the first country in the world to attempt a complete shutdown affecting more than 68 million people per joining us via skype is the bureau chief. morningus -- sunday there was a dramatic press -- i don't know if he can hear me. i speak italian. he is telling his family not to come in while he is live on tv. i don't think he can hear us now. we are back with philipp hildebrand of blackrock. we are talking a little bit before about the need to give support to small and medium enterprises that would run out of cash. is there anyway that could save the consumer at this point? happeningell, what is here basically, if you think about -- i am not a medical expert, but if you look at the statistics, most countries have something between two and 10 hospital beds per 1000 people. what is clear is

the big companies like blackstone are already asking their companies to tap credit lines.nks in the long term, but then you have the banks looking to the shadow lenders and saying we need you to step up for all of these countries on the line for financing, so what are some of these companies looking for money? royal caribbean for one. we have seen massive companies already look to the credit market to tap the lines are really outstanding. alix: you know this world -- david: you know this world so well, at what point does liquidity turn to solvency? sonali: that's the absolute question now. i've mentioned this before in talked to bankers worried about the entire .conomies of bankers i just wonder how that filters through. i don't feel like banks are is exposed in the same way they were a few years ago. sonali: they are not come about that doesn't mean they will not take losses. this is not going to be a strain on their capital and liquidity like in 2008, but it will be called upon to take on these. alix: let's talk about where they might feel extra pressure, and that is the

are watching very aggressively because we know they are in talks with everybody, especially the blackstonesos of the world. they are seemingly working pretty symbiotically with the banks here. they know they can't take this on themselves, but they are looking to private financing. sovereign wealth funds, the big insurance companies. let's see if they are willing to come to the table. alix: softbank is what we love to talk about. [laughter] alix: what is going on with the buyback and all that stuff? sonali: a massive scoop yesterday about them really threatening to pull back on buying some of the shares from employees. including adam neumann. we knew, our gillian tan and giles turner broke last year, that they had been wanting to pull back on $3 billion commitment that they had made. this might just be a negotiating tactic. we don't know if they will pull back entirely, but a lot of things have been servicing during these negotiations, and as we know, tough times for wework at the moment. let's see where they leverage really falls. not to mention, tough times for softbank as well. cdx has re

if you're blackstone, you own the private companies. >> you're an investor, josh. what do you do >> that gets back to this out of abundance of caution i think everyone should expect to hear more of that whether we're talking about the golden state warriors playing games without the fans or google telling the employee base to work from home, this is going to be an ongoing kind of rolling motif for the moment we're in. i like abundance of caution. i would rather people be too cautious than not cautious enough i think we already played that game in the first four weeks of the coronavirus story. now we're playing a little bit more cautiously. things are happening meetings are taking place. again, it doesn't feel great if you're looking at the tape, but i think it's constructive and i think we're getting closer to the point where people will have more confidence in the policy response. >> by the way, from the banks' point of view, it's one of those deals where, you know, you agree to provide this money in a certain situation, but now it's on your balance sheet. now you

blackstone is a private equity fund, they have been advising the company to draw down credit so you don't have a liquidity crunch and that has people concerned about the comparison to 2008. stuart: that is what i was getting at. the beginning is of a liquidity credit crunch. that makes the whole financial system shaky and has a lot of people worried. ashley: which is why we have coordination from central banks, that is what we want to see. stuart: you have real concerns about a credit crunch, shaky financial markets. >> there are some but you are doing the terminology correct. it is not a credit crisis. it is a crunch. once they draw down these credit lines, what happens? you go back to the bank and say revenues have fallen 30% and we see the light at the end of the tunnel but for the next week humans we need more credit and that is where the differences 2008 versus now. officials are meeting with banks, getting ahead of the impending issue with other containment and other issues that will come with the virus as far as quarantines and stuff. they are saying we got your back if you cannot

by the way, he also said he called blackstone later on to say he was buying some of their shares even though he slammed private equity in that interview which some say may have taken down some of the share value. so there has been some questions as to whether or not you can take sincerely some of his comments. stuart: truth is, he said hell is coming but in fact, all hell broke loose when he said it and hell came down on him. now he's trying to walk it back a little bit. okay. let's have a look at the markets. for the first time in awhile, we are not limit down premarket. put out the flags, boys. we are down 250 points. we are still down, but 250 is nothing like the swings we have seen before. this is premarket. this is as we approach the opening bell. red arrows across the board but not huge declines expected at the opening bell. can you show me oil? that's the other crisis area we've got here. when it dropped to $19 a barrel, and it did yesterday, that's a crisis level, obviously, but so too is $22 a barrel. ashley: not great. stuart: that's where we are now. you've jumped 10%. so w