they own almost 5% of kkr.hey are discussing the possibility of converting kkr from a partnership to a corporation. their shares as 5% overnight to a one year high. foriba said to favor kkr its memory chip operation. but the selling of the unit vettingce a prolonged process with the japanese government, desperate to avoid the technology going abroad. they are inclined toward assisting the capital investment and funding. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am courtney collins, this is bloomberg. yvonne: a big story the asian markets will be watching is the data from japan. bank of japan says it is too early to talk about it exit plan from a high-powered policy of monetary still -- stimulus. but they stuck to their guns when it comes to the 2% inflation target. bring our policy editor kathleen hays, joining us live from tokyo. what are we expecting, is data going to match what kuroda said yesterday? kathleen: governor kuroda is staking a lot

reveals it on 5% of kkr.ssing possibility of converting kkr from a partnership to a corporation. kkr shares surged 5% overnight to a one-year high. kkriba said to favor the group's bid for its memory chip says thes, however nhk sale of the unit could face a prolonged antitrust vetting process. the japanese government is desperate to avoid the technology going abroad. toshiba is also likely to talk withple, likely to assist investment and funding. the tense relationship between the u.s. and canada now sees iering accusing bombard of selling planes at low prices. to byear, welker agreed the sea-serious just for $19.6 million of these, parlous than what boeing says is the $33 million a costs to build. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. rishaad: china's big energy companies reported higher earnings last quarter. sinopec's net income doubling seeing surging revenues. let's get more. tell us about these companies. they have do

mcveigh,with henry head of global asset allocation at kkr.talk about the second round of the french election. emmanuel macron is against marine le pen. we should look at what the polls say. they show a 60% of ability of macron winning the second round. do you feel as confident about these polls as the markets do today and yesterday? henry: i do. i think we have made it through the most difficult period. macron is antiestablishment. view at kkr is he would be embraced by being somewhat antiestablishment relative to donald trump or hillary clinton went hillary clinton was perceived to be establishment in the u.s. marine le pen has been around for some time. she is not a new force like donald trump. it is not over until it is over. but our base assumption is that france will move forward. recently, right before the election, growth remains strong. it is better than what most people think. i think the markets are reacting to that. eric: let's talk about european growth. we can get to how much of a tailwind or not a manual micron would be for -- e

kkr is the name and if you notice it's up over 4.5, almost 5%.nounced a moment ago, and why they said it's another morgan stanley for them. that's the position they took over a year ago in the mid 20s. they see kkr as very much undervalued. remember there's super voting stock here. the position has been taken through derivatives. worth $750 million. not an insignificant amount, but what they're attracted to simply is the franchise at kkr and the fact that at least according to their math there's about a $13 book value. so there's $5 or so you're paying for the actual business. when you back out a multiple, you only get 3 1/2 times multiple, hence they see it as cheap. that presentation ongoing for mr. more fete right now. it's had a response in the stock. by the way the company did report earnings that were pretty good as well. so the stock had been up. but again this is not about them getting on the board necessarily. although in the case of fox, another family controlled company, mr. oven has a place on the board of directors so this is a new a

scarlet: that was kkr's henry mcvey. we have some headlines from president trump.eting with farmers. oliver: he says he loves canada, obviously in relation to what we were talking about with tariff. i love canada but they have outsmarted our politicians. he says we want to make life better for our farmers and ranchers. again, trump says i love canada but they have outsmarted our politicians. as he issues an executive order on rural areas. slapping tariffs on canadian softwood lumber. questions about how open candidate is to u.s. dairy. said that we had politicians that have been outsmarted, talked about the trade, and now we are seeing how that is enacted in policy. scarlet: this is bloomberg. ♪ oliver: this is "bloomberg markets." i'm oliver renick. scarlet: i'm scarlet fu. it is time for options inside with abigail doolittle. abigail: joining me is kevin kelly. thanks so much for taking the time. two weeks ago, everyone is talking about the idea that the reflation trade could be reversing. you have this risk on rally for stocks. what is going on? you could start

global investment firm kkr taking a $250 million stake in san at moms -- vietnam's ma group.ty because the leading producer holds less than 1% of market share. are expected to close the deal this month. completed the uae's largest lender was completed. of 100 $80l assets billion, making first abu dhabi bank the second-biggest lender in the gulf corporation counsel. about 3.5 million shares exchanged hands by the close. one of five nordeaal suitors for hsh bank. .ffers will be reviewed hsh's5, the eu ordered owners to sell the blank -- bank by february next year. among japan's large manufacturers has improved for a second consecutive quarter, good news when it comes to the manufacturing sector. economics atapan bank of america merrill lynch izumi devalier joins us from tokyo to talk about this gradual recovery. it is a gradual recovery, but also a patchy recovery. we have been talking about the places where we are not seeing much of an uptick, wages, and capex. manufacturing sentiment improves. >> we got a strong february ip print and manufacturers are optimistic about product

alix: kkr is having breaking news. stake -- in kkr.n and they own it through derivatives. reported aas kkr killer quarter. the game came from the first data. one of the biggest balance sheet holdings, 9.2% in the first quarter. big news in multiple fronts. that stock is up the highest level since november 2015. reallyn: i get to work early and there are only two people there. one of them is alix steel. i usually make a sound that is like good morning. this is cake time for alix steel. eat the cake at 1:00 p.m. today. happy birthday. alix: that is amazing. i'm actually going to eat this, this time. a special birthday wish for alix steel and to our producer, as well. that does it for us. the coverage continues. this is bloomberg. ♪ vonnie: from new york, i'm vonnie quinn. mark: i'm mark barton. welcome to bloomberg markets. ♪ vonnie: we will take you from new york to london this hour and cover stories out of washington and frankfurt. first we have some breaking economic data. pending home sales for march down .8%, not as much of a drop a

and ackers include kkr handful of asset managing firms.ors who back public companies or provide funding ahead of an ipo. while the company has kept quiet about its exit plans, investors have long speculated it would the smart to go public before uber. afterhit a new milestone surpassing general motors to become america's most viable auto company. take a look inside my bloomberg and see where tesla push past #7410, thetion, white line is the increasing a -- of tesla. for more, we spoke with bloomberg's detroit bureau chief. >> tesla has more debt. this is more of a symbolic moment where tesla has crossed the line of being more valuable than gm and ford. investors see tesla as this possible dominator of electric cars, maybe electric storage. they have a lot of businesses with potential. it is a long-term play. with general motors and ford, auto sales are starting to trail down. both companies will make a lot of money this year, but investors are seeing this as the best is behind us over the last 12 months and may be we will put our money som

kkr is one of a handful of asset management funds.is tapping a set of investors who have frequently backed public companies or provide funding ahead of an ipo the company has. cap quiet about exit plans investors have. -- still with us is our guest host for the hour, roger mcnamee. you are a man who has every single app out there. do you think this is a wise move by lyft to get bigger players in? it in a much simpler fashion. i think they need more capital. full disclosure, i am, through a fund i'm invested in, indirectly an investor in lyft. my observation about the category, the category has deep economic issues. for all intensive purposes, it got commoditized before it got near breakeven. they don't own even the cars or have control over the drivers. what has been shown, at least in new york city, is that it is possible to segment and slice pieces of the market off and and uber by lyft taking narrow subset of the marketplace. there is a company in new york that just goes up and down the avenues, like a jtney. it's very cheap. you c

new backers include kkr and a handful of asset managing firms and the canadian pension fund.ors who frequently back public companies or provide funding ahead of an ipo. while the company has kept quiet about its exit plans, investors have long speculated it would be lyft would be smart to go public before his larger competitor uber. meanwhile, tesla hit a new milestone after surpassing general motors to become america's most valuable auto company. and, take a look inside my bloomberg. teslan just see win pushed past the competition. the white line is the increasing ascent of tesla. assed ford and p gm. for more, we spoke with bloomberg's detroit bureau chief. >> tesla has more debt. look, this is more of a symbolic moment where tesla has crossed the line of being more valuable than gm and ford. but you really have to look at why. investors see tesla as this possible future dominator of electric cars, maybe electric autonomous vehicles, maybe electric storage. they have a lot of businesses with potential. it is a long-term play. with general motors and ford, the problem they h

you have kkr investing in lyft. apple getting a permit to test driverless in california.here does uber stand right now? >> it's a tough market for uber now. i think most of this stuff having an uber is self-inflicted. let's be honest. around sexism and sexual harassment and lawsuit. obviously not spending this money on hr or technology infringement compliance. i mean, really. it's a lot of money to lose. a lot of money. i think they released these numbers to show how much they're growing and how strong they are and that's absolutely true, but they are certainly a money burning machine. and i think they're trying to make comparison to amazon, which did that for many years, and of course it's turned out to be the best thing, and you could make an argument that uber is doing that and they're growing revenue and growing their businesses. they're in 75 countries. but they're worth 68 billion at this point and raised, i forget how much, a lot of money. many, many, many billions of dollars. the question is can they move it into a profitable business especially with all of these

. >> love kkr, tradiing nine time earnings, tax reforms coming, taking the option to go into etfs.held by the passive investors, kkr is who we love. >> i like that. looking outside the bubble. visa earnings out, a slew of earnings headed our way after hours, the busiest week of the year, and we have results from the car giant. deidre? >> kelly, that's right. shares popping 3% in after hours after the company handedly beat expectations once again. a good quarter, etfs, 79 cents expected. visa reporting for fiscal year 2286 cents, a beat, up to 27% jump year over year. in terms of revenue, visa reporting $4.8 billion in the quarter, $4.3 billion expected. in terms of transactions processed, 26.3 billion, up 42% year over year. payment volume up 37% year over year to 1.7 trillion dollars. i want to note this is the second best performing dow stock this year just behind apple. it's risen 17% year to date. kelly, back to you. >> all right, a buyback plan to boot. thank you. shares up neearly 3%. earnings out, you have the numbers? >> strong earnings report from trading firm e-trade. wal

kkr today made an acquisition overseas of $7 billion. that's where it's going to get interesting. >> citi leaves its price target at 225. says you can't extrapolate what happened in the first quarter in terms of trading into future quarters. josh brown, you agree with that? >> no, it's actually, it's weird to see what morgan stanley was able to do. >> every other bank on the street was due in terms of trading. the thing about goldman people in general, if others are finding success in a certain way, what do you think they're going to eat crayons for the next 90 days? they're going to figure it out. we've seen that time and again. >> are you? >> merrill lynch run away. >> one quarter means nothing. they're going the make money. >> what's going on with the stock here, down two days in a row. you would think it -- it got an upgrade in the rest of the s sector. the price action is telling us there's a foot in the market. >> probably means people are in it. it went doup. they don't feel like they want to be in it anymore, but that's not analy

assetvestors include kkr, managers, and a canadian consent --pension firm. provide funding ahead of an ipo. investors have long speculated lyft would be smart to go public before its much larger competitor, uber. tesla hit a new milestone this week after surpassed general motors to become america's most valuable auto company. take a look inside my bloomberg. you can see when tesla pushed past the competition. the white line being the creeping asset of tesla now worth $49 billion. it just went past g.m. and ford. for more, we spoke with david welch. has more debt that as to the value. this is more of a symbolic moment where tesla has crossed the line of being more valuable than g.m. and ford. you really have to look at why. investors are seeing tesla is this possible future dominator of electric cars, may be a leader in autonomous vehicles and electric storage. they have a lot of businesses with potential. it is a long-term play. with general motors and ford, the problem may have his sales are starting to trail down. not by a lot. both companies will still ma

kkr jumping sbo lyft the last few days. what is the future tr that?hould we think of them in a pepsi and coke kind of way? >> i would love it if lyft was eventually worth as much as pepsi or coke for sure. these are both fantastic companies. the space is huge. the space is extremely important to get right for the future. and again, the lyft management team has done a phenomenal job this executing on their strategic vision of what they have had for a very long time. we're very excited about the future of lyft. >> of the two, what about them pushed you in their direction opposed to others? >> i like travis. i love the lyft founders as well. we had had a chance to spend more time with the lyft founders ask they were the founders that had the tragic vision to get it done to make the investment. it was pure ly a pro we just really loved the lyft guys. >> you say that it's an enormous space that's important to get right. how do you define what that space is? it seems a as if just the ride hailing business on its own, that business model doesn't necessarily

. >> well, think about the ones that you can trade, or black stone and kkr, well off their highs.ut both places where the balance sheet is unbelievable. i would almost call it pristine. these guys have an environment where a lot of the exists in the pe space they expect they can get to. the best are still the best. i think the sentiment for hedge funds right now is a low that will probably be the bottom. >> we'll find out a lot more tomorrow with goldman sachs. and they talked about the xl -- >> i told them, go chart it. they did. >> back to you. >> let's get more on the bank earnings here. guy mentioned goldman sachs. dan is over at the plasma. >> tomorrow morning we've got an active morning. they've moved about 1.5%. wednesday morning we have morgan stanley. mo o moved about 2%. the only real big mover there was wells fargo, the down side about 3.5% or so. it's made back a lot of that obviously just today. the other ones? good enough reports. the stocks held in here. i think it's important to go look at the charts a little bit here. the xlf when tim and i were go charting oursel

their development chief, vp of product, travis kalanik's number two, and on the day yesterday when kkr took a stake in lyft so the situation's getting interesting for uber after a tough run of publicity. this morning, amazon's jeff bezos talks about the central problem of large organizations, how do you maintain the urgency of a start-up. quote, day two is stay sis followed by irrelevance, followed by excruciating painful decline followed by death and that's why it is always day 1. i'm interested in the question, how do you fend off day 2. the question is what's next for amazon and tech in general. bezos points to ai. he says these trends are not hard to spot. we're in the middle of an obvious one right now. machine learning and ai, watch this space, much more to come. interesting report today that they considered taking a look at whole foods last fall. nothing ever became of that. but bezos, it's often been said there's no better entrepreneur at scale. this is a nice window into that. >> one of the best reads in that letter is the part where he talks about companies can get too whette

a technique utilized by kkr.pollo plans to raise $20 billion and can use 10% of the money to buy shares on the open market. it doubles the amount it could allocate in the previous pool. that is your bloomberg business flash. scarlet: a new iphone isn't due out for months but investors are smelling success. how the numbers are adjusted higher. this is bloomberg. ♪ scarlet: i'm scarlet fu. what did you miss? analysts are growing optimistic on apple. they have been ratcheting the price target for apple. that is the blue line. it has been taking place in february and the average price target is about $154. about 9% higher than the current price. see appleh analysts climbing to $185. apple's share price is in white. a for this would be the newest iphone, the 10th anniversary edition. morgan stanley was the latest price target -- morgan stanley says supply chain and data demand show a clear path to a super cycle for the next iphone model. joe, you check your iphone all the time and you're due for an update. joe: i just

the company will be sold to kkr for more than $1.8 billion. will make an announcement as early as today. forunit produces equipment makers and manufacturers of wireless here. a 6% increase on demand for business class flights. the carrier also sent to release profits. yvonne: related recall losses expected to push honda back in the black for fourth quarter. most of honda's japanese rivals are projected to post declines due to the stronger yen. , after the market close on friday. betty: speaking of the market, many of them have just come online. now we are seeing the risk on rally in the u.s. pointskei up 131 already. looking pretty good so far. thank you. china markets open a little later on this morning. a narrow gain on tuesday. that brought them off a three-month low. of course, triggered by fears of a regulatory crackdown. let's get some perspective from grace. great to have you. i'm sure you have been looking at this for weeks. the composite falling, hovering around the 200 day moving average. regulators cracking down on leverage. where d

kkr is taking a $250 million vietnamese company, $18 billion meat industry for masan group.than 1% of the market share. >> the merger that created the uae's largest lender was -- as firstnday is abu dhabi bank began trading. it has total assets of $180 billion. that makes it the second-biggest lender in the gulf cooperation council the stock rose 1.5% with 3.5 million shares changing hands. group one of five potential suitors who placed a h nordea bank. offers will be re-feud -- reviewed. in 2015, the eu ordered the h to sell the blank -- bank by february of next year. i have to get my german on. >> that was a tough one. let's talk more about china. traders have been jumping ship for smaller funds in search of lucrative deals and pay packets. banks are facing a test to retain talent in the face of tighter regulation. joining us now to look at china's m&a landscape is chief partner of financial services aipac. reported about how we have seen this accidents out of banks like goldman sachs, merrill lynch, but what you think is driving this exodus? speak to a bigger picture of h

they acquired an $800 million software company called plando while kkr bought offseat security for $2illion. one thing that's avoiding the sector, though, evaluation, and the first quarter's yielded the highest buyout multiples of any period since before the financial crisis, guys? >> amazing about this is that they are just following the cash flows. >> yep. >> and the lows, this level, so why wouldn't the companies be perfect targets for private equities? >> now they finally are. >> assessing the valuation. >> crazy. >> how much a risk is that, leslie? >> well, that is the biggest risk to the sector as a whole. we're looking at 10.8 times when it comes to enterprise value relative to multiples. that's the highest it's been since before the financial crisis. we know what happened last time. >> right. >> so the issue here is that you've got private equity firms selling at high multiples, then in turn using cash to buy new ad risk. the problem is there's so much competition for the new assets, they drive multiples higher and higher and higher preventing turn around strategies that we se

. >> i think kkr with japanese financing is more likely to get it, but i totally agree with you.they want to go down market flash as opposed to up market. it will be a $28 billion bid if it happens. >> what's on "mad" tonight? >> we have john legere reporting. he's giving me some rolling papers -- is that like for tobacco? then we have on tool works, scott santi and then hasbro, brian goldner. he won't say woe is me like mattel. it's about the numbers. >> speaking of which you might have nasdaq 6,000 to play with. >> holy cow. you're the top, the louvre museum. baby, if you're the bottom -- >> on the bottom -- >> cole porter. doesn't get enough credit. >> it's lovely. see you tonight, "mad money," 6:00 p.m. eastern time. when we return, jean-claude trichet on the french elections. the dow is up 205. finally. hey ron! they're finally taking down that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered

. >> now kkr taking a stake in lyft.e'll talk more about that and some of uber's executive departures when we come back, we'll get more on the united fallout. also, ahead, the head of the world trade organization on president trump and the new state of global trade. look at the premarket. the s&p tech sector is down in eight straight days. that's the longest since november. we'll be back. we'll be back. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov ♪ say hello to at&t's best, unlimited data deal and never pay overages again. so now the whole family can binge, surf, shop, navigate, listen, game, stream and more. all without the hassle of worrying about overages or running out of data. in fact, you'll never pay overages again. and remember, it's at&t's best, unlimited data deal ever. so get at&t, get unl

so there are spots, and the names that i personally invest in are names like kkr trading at eight times market. so valuation is, i would say, number one on things that value investors are worrying about. >> joe, would you echo that? >> i absolutely do. i would just encourage everyone, when you have these dislocations where you see international is doing better than u.s., fixed income is moving a lot more than anyone expected, make sure to rebalance your portfolio so you have the right equity allocation you intend to have for your risk profile. >> and just i would add, kelly, that obviously today was a bit of a jarring move. we're still in this trading range. it is not as if it really change willed the overall story in terms of where the market has been going. you get in the volatility index dipped below 11 today. it did seem as if maybe it has gotten to some degree as calm as it is going to get right now. also the policy stuff, i have been saying i don't think the market is priced particularly tightly, any specific policy outcome. but if it is one less thing for people some say, well, t