takataled airbag maker has had talks with kkr.company surged after reports of kkr's dental interest -- potential interest. carmakers have recalled at least 60 million airbags globally before they ordered the replacement of 40 million more. made age fund industry quarter of its assets and the next year on a slump. that is according to tony james. he says the industry which is having its worst start two years since the global financial crisis faces a day of reckoning that will be pretty painful. hillary clinton use of a private animal system while she was secretary state did violate state department rules. that is the conclusion of report by the agency of the inspector general. it gives republicans an additional line of attack as the election campaigning gets underway. richard branson says he would be devastated if britain votes to leave the eu. speaking exclusively to bloomberg, the founder of virgin group says a brexit would be damaging to both u.k. and europe. -- to both the u.k. and europe. >> i would be devastated if we vote to

kkr.e for despite the scandals and recalls, takata has a large portion of the market share. rishaad: how tough would it need to bailout this company? it seems like the list of recalls keeps on mounting. >> right. to be aninitely going uphill battle. let's look at the numbers. as of the end of march, $54 billion in cash, $120 billion of capital, but the penalties for compensation are estimated at ¥1 trillion, so it is a huge burden. a lot of their customers have shifted away from the company and are looking for other suppliers to supply their new models. it is very difficult for them to come back to takata. it seems theishaad: market would welcome a bailout, but they're not so sure today given the drop back we are seeing. >> right. it is a very common view among analysts here that the most shouldavior for takata be a manufacturer from the japanese automotive industry. a requirest of takat more than just cutting off assets or laying off employees. the japanese automotive industry has more re

kkr are interested in taking 60% stake in takata. that is subjective to approval from takata's auto maker clients. remember this is important because only a handful of other companies aside from takata are involved in the air bag manufacture i manufacturi manufacturing stuff. so takata is in dire straits. having a lot of problems and it's been plagued by the defects with the air bag since 2008. 11 deaths at least and more than 100 injuries so there is a backlash from the public and auto pagers. including honda which was its biggest client. it's now walked away from supply deals and they have been hit by mounting recalls costs. and really not enough to account for to compensate for this mounting legal bill it is facing so short-term it needs a cash injection. longer term it needs to restructure. we need details of a road map. lasard apparently are going to help on both fronts. so we need to see what kkr and private equity can really bring to the table in terms of turning this company around. worst case scenario, takata's steering comm

are in talks with kkr and other companies.ng for a white knight, so to speak. this company because of the airbag problem, they will explode, send out shrapnel to drivers doing the opposite of the life-saving that they are supposed to be doing. -- diede have died and in to contact airbag incidents in the u.s.. and they've got $40 million to go -- 40 million to go. guy? guy: very tough world for them to live in. see j-roll could be a story as well. watch out what is happening in the energy sector. oil going above $50 a barrel. let's talk about what is happening in bp as well. you could see some news related to cap are. it may be on the move. watch the energy sector as we move through $50. i am not sure it is a particularly significant move in terms of the actual reality of drilling oil, but nevertheless, it also starts to bring back some of these supplies in the states into the market. mark burgess is to what this. -- is still with us. do you worry that is not sustainable? mark: for the art -- for the large integrated automakers

are you seeing more aggressive competition from the likes of kkr, the other big players, blackstone?pushing up their prices? guest: to be honest, there are more options within the larger sized deals, and the big boys are coming from the u.s. and europe. blackstone acquired a stake, and kkr invested in the company here, and that is good news for local private equity firms. me, we welcome them, because we are a been market firm, and we like to sit with the big boys -- a midmarket firm am i am we like to sit with the big boys. manus: thank you so much for joining bloomberg markets: middle east. up, a fugitive goes to trial over his collapse. that is next on bloomberg markets: middle east. ♪ -- we aree are black back here with bloomberg markets: middle east. to that rally we were talking about just a few days ago, it has evaporated into thin air. reporter: and then some. we are entering 1:00 p.m. here in hong kong. that a lot ofure people in the middle east and europe will be waking up too, are waking up to at the moment. this global selloff is extending, at least for this benchmark. jap

so kkr and lazard really have the work doubt for them. no surprises there. and we went limit up yesterday and now we are down by 8% for takata. >> broadly. solid picture in the asian markets. but we are in something of a holding pattern until we genoty get some clarity from q1 and hear from janet yellen and see what kind of tone she strikes when she speaks at harvard university. so that is where we stand. also next week it will be interesting to see the competition and what pmi from china tells us. the factory and services activity data. the latest print will be released so it is doing going to tell us tentative stabilization in the global economy or are we hit with news of a deeper contraction. back to you now. >> thanks for that and as you suggest we'll be looking out for janet yellen later. >> she speaks on the 6th as well which people say could be even more important because right after non pharm payroll day. >> still to come here on "street signs," there is no love lost between these two football neighbors. we'll tell you why as we look ahead to tomorro

kkr and clayton and rice bought u.s. foods in 2007 for --.shares trade today under the ticker usfd. could it be a sign that the market is opening back up? we're seeing some big m&a this. >> the m&a dill still hasn't happen. >> you're talking about bayer monosanto. man sanity monosanity the brexit referendum is one month away. world leaders are discussing the potential impact of a uk exit and of course much must have more. >> before we head to break it was on this day in 1896 that charles dow published the first edition of the dow jones industrial average. of that dozen, only general electric remains in the dow today. >> a great little stat. >> look at that. how much we've changed. real is making new friends. amazing is getting this close. real is an animal rescue. m there is only one place where real and amazing live. seaworld. real. amazing todd spaletto, president of the north face, we are working on the prototype to match customers to gear. watson, let's give it a try. say it's mid-june and i'm backpacking in yosemite. of our 353 jackets,

this is the 40th anniversary of kkr. the business is radically different.private equity back then. it made a be need to be call that anymore. how to unify and it? >> i think we are in the middle of a massive shift in asset management. in the public markets, you can pick up share. there are plans for act of management. that is growing and healthy in the area of alternatives. some time todefine exactly what it is i do for a living. i invest. traditionally, people have sometimes called them buyouts. we've moved from buyouts to private equity. our job is pretty simple. any not to define ourselves one way. it's defined cutting-edge , differentiated opportunities and bring them back to our testers. that,g as we keep doing there is a place for our kind of investing. >> if you look at your traded,ors, publicly across lots of different types of alternatives, how do you fit into that definition? >> we have never defined ourselves by how large we are. that's a fallacy in the market place. ourselvesd to define as being large enough to address opportunities across class

central and assets are said to have drawn interest from private equity adventincluding international, kkrrtner holdings. this is according to people with knowledge of the matter. the firms are it's going to whether to make an offer for the assets vita $5 billion. deutsche bank said to be stopping boyit's for employees as it examines whether they improperly traded with the firm. that is according to a person with knowledge of the situation. six employees are tied to personal investments alongside a hedge fund. others estimate that they gained about $37 million. that is the bloomberg business flash. "what'd you miss?" the fed minutes sent a strong signal that an increase may come as early as june. the economy has been unable to keep growth momentum, and in fact been expanded in the first quarter, gaining .5%. for the economy have enough the fed to act decisively? joe: thank you for joining us. so you found a very interesting thing, which is that after these fed minutes on wednesday, the rate hike probability, the distribution of different possibilities almost perfectly mirrored what we saw

. >> we usa the walgreens -- >> kkr, nxpi i think there was some selling, i think it was kkr, free scalea carl english piece, it's amazing how they're all trying to get these secondaries in, david. they really need to raise cash or -- >> they want to get out. exits have been the rule in private equity. there have been purchases. they don't make headlines because they typically are smaller. >> the one that no one should have let go is dollar general. it's been such a win. they did a great job. and i have to love those guys. i know this ipo market has made things difficult but, gees, they've had some wins, too. if you bought from them in some cases, you did quite well. and they like that. >> they do. we'll keep an eye on us food shares. apple looking to extend a winning streak now that is four sessions so it would be five today. and an incement -- incremental 5 billion spent by apple on r & d. >> i pushed netflix hard. >> last fall there was a lot of talk around silicon valley and some interest in media companies and i made calls as well as a lot of other reporters on time warner, didn't g

a harvard graduate and a kkr minister? >> he was the longest-serving central bank president we had. very respected. he has already made some statements that he will try to stabilize the debt, and that is important thing, stabilizing the debt trajectory and make sure everyone knows brazil can pay its debrts. and getting it going -- growing again gradually. rate decision that many people expect to remain unchanged. that decision on change. the bank of england holding at 0.5%. voting 9-0 to keep rates there. mark: interesting, interesting. the bank of england voting 9-nil. thanks england -- america merrill lynch said they could've had a cut -- that didn't happen. the fourth consecutive period. its growth forecasted it lowered its 2016 gdp forecast to 2.2%. that has been a great surprise. the economy is clearly slurring ahead of the referendum. the bank of england has a tricky judgment call -- the economy is clearly slowing. what the economy would do if they would vote against staying in the e.u. > >> the mpc can't duck it. he tried very well, triple on and delicate knife edge, people c

what we know about the finance minister -- a harvard graduate and also a kkr person?, morales was the longest serving central bank president we had. he was very spectre, and he has made statements that he will try and thatize the debt is the most important thing, stabilize and the dead trajectory, and making sure everybody knows that brazil can pay its debt and getting it growing again, gradually. mark: -- vonnie: how is he proposing to do that -- has he come up with policy statements, or when it -- would it have been indiscreet to do that? julia: not yet. he has given broad strokes, but no actual measures. he might speak this afternoon. news dilma rousseff gave a conference the nation. it sounds like she is in fighting spirits. she is. she spoke to journalists inside the presidential palace and then walked outside to speak to supporters along with former president lula, her mentor, and most popular politician, and basically said she would fight every step of the way, reiterated this is a coup and continued with the same speech she had been giving for a while. vonnie:

doubt, the outperformers is french equipment maker seb because they have bought their german rival from kkror just over 1 billion euros. now, the firm expects to get regulatory approval for that deal in the second half of the year. investors cheering the stock up higher 11%. >>> and kingfisher of dr "y" retailer saw sales up 3% in the first quarter. the company did see weak innocence russia but it's keeping its overall financial targets on hold for the year. >>> let's get another look at ftse 100 at old mutual. the group is confirming several assets in its stake in new york's am. >>. this is part of old mutual's broad restructure. we know they are intending to split the company in four units as well. let's give you a check of deutsche bank trading in higher about a0.8 percent. this as moody's has moved to downgrade it. the rating agency said the lender's outlook is stable, reflecting potential benefits of the five-year plan. yes, confidence coming from moodies. still concerns for the short term. however, investors pushing the stock higher. louisa. >> yeah, thank you, nancy. people tweeting

the buyout firm is kkr. this is according to people familiar.n competing with chinese bidders, as well as european companies, for this company, wmf. this comes after after it agreed to purchase germany's company last week. this has been in an mma mode. now, kingfisher is also a little higher. this stock, according to my bloomberg is actually asked dividenex dividend today. the estimate was 2.7 2 billion pounds, but it be estimates. so, we had a beat on those units. perhaps, that is why we can see the stop moving higher. little lowera after exports suffered a second straight double-digit decline. he shipments plunged 11% in april after a 16% drop in march. this comes a few days after richemont seized a challenging market. guy? guy: thank you very much indeed, i, nejra. let's go from nejra to nigeria. the decision will be made later today. reporter, our nigeria who is only phone now. so, what are we going to get today, paul? are we finally going to see the valuation we have been talking about? paul: yes, we could possibly get that. the rates could

. >> this week marks the 40th anniversary of kkr.is radically different than it was in the 70's and 80's. it wasn't even called private equity back then. it?do you define >> i think we are in the middle of a massive shift in asset management. within the public markets passive is winning in a lot of ways but there is still a place for active management. it is growing and healthy in the area of alternatives. it's hard to define sometimes exactly what i do for a living. i invest. people have sometimes called it buyouts. we have moved from buyouts to private equity to alternatives. our job is really pretty simple. it is not to define ourselves as anyone type of transaction. cutting edge opportunities in the marketplace and bring those back to our investors. doing thatwe keep there's a place for our type of investing. >> if you look at your competitive set broadly diversified -- carlyle, blackstone. publicly traded across lots of different types of alternatives. how do you fit into that definition? >> we have never defined ourselves by ho

kkr expressing interest in taking control of the japanese firm. this coming a it is air bag supplier facing billions in cost due to the recall of those faulty parts. and u.s. foods raising a billion dollars in its ipo making the second biggest of the year. shares are trade on the nyse today under usfd. >> stocks to watch this morning. hp, inc. reporting better than expected second quarter profit. cost cutting offset a drop in revenue. amid continued weak demand for pcs and printers. outlook is below and lower degree not much watch in that stock. and costco, a pull back in spending by high income consumers who make up cost key's business base led to weak sales in april. and pvh is raising guidance after posting better than expected first quarter results. phillips van huesen. >> strong results from tv operations including orange is the new black helped offset a softer performance at the box office. during the quarter the studio released gods of egypt and allegiance. and guess swung to a first quarter loss on currency head winds and restructuring cha

according to a person familiar with the matter, to caught i has had discussions with kkr and other can mets -- candidates. shares have fallen 65% in the last year. has cleared an important hurdle in getting its new diabetes drug approved in the u.s. it's once a day shot that combines two jobs should be okayed for sale. another drug similar appeal -- received backing. valued asy may be high as $16 billion when it goes public the second week of june. they will sell 17% of its existing shares. francine: thank you so much. above $50e breaking per barrel for the first time in six months. having a blast joins us now -- javier blas joins us. life gets easier if oil is at $50 instead of $20. javier: i think life is getting easier for all oil companies, particularly small oil companies, and also for the banks who are financing these companies. let's not just call mission accomplished for the oil sector. at $50 oil the level we were back in mid-november, and that is when ceos of exxon mobil and bp were saying, we are going to do a lot of cost-cutting because at $50 we really need to do things. i

in may have found a buyer kkr. also finishing higher by 9%, mitsubishi. offering investors some uncertainty about how bad the scandal would be. we have the southern bank stocks selling off, led by a spanish 2.8 down more than 20% on a million share offering. rallying in europe, the miners as gold trades higher for the first day in seven days. it looks like maybe the huge housing number on tuesday could be helping out copper. the g-7 summit has wrapped up in japan. president obama met with the leaders of six industrialized nations to discuss ways to get the global economy moving. so far, we'vea: discussed issues of the global economy and the continued accelerated growth. to use all the tools at our disposal to make sure we are not only putting people back to work, but also helping to lift wages. vonnie: tomorrow, president obama becomes the first sitting president to visit hiroshima. in france, strikes at oil refineries may spread today. the union has called for electrical workers to go on strike. hollande madencois it easier to fire employees. the hedge f