coming up kkr has been investing , in tech startups for decades but has stepped up its game.xplore where the firm can make a splash, next. if you have a moment, check out our new interactive feature on tv . you can watch us live. if you miss an interview you can go back to it. you can send messages, ask questions play along with the , charts on air. it is for bloomberg subscribers only. this is bloomberg. ♪ emily: honeywell is starting a venture fund for a technology $100 million company. and the office will be located at ground zero for silicon valley venture capital. on sand hill road in menlo park, california. honeywell plans to take stakes and 50 to 70 startups. kkr is also launching a new fund, putting more than $700 million to work in the fields of tech, media, and telecommunication. here to discuss the fund and potential deals is our ipo reporter, who is with the kkr growth equity director for tech, media, and telecom in new york. >> when you think about the investment strategy, i compare that to venture capital, which is not necessarily thinking about the exits li

kkr has been investing in tech startups for decades but has stepped up its game. confirm -- explore where the firm can make a splash, next. check out tv . you can watch as live and go back to interviews, send messages, as questions, play along with the charts on air. it is for bloomberg subscribers only. this is bloomberg. ♪ emily: honeywell is starting a 100 million dollar venture fund for a technology comedy, and the opposite will be located at ground zero for silicon valley venture capital. honeywell plans to take stakes and 50 to 70 startups. kkr is also launching a new fund, putting more than $700 million to work in the fields of tech, media, and telecommunication. here to discuss the fund and potential deals is our ipo reporter, who is with the kkr growth equity director for tech, media, and telecom in new york. thehen you think about investment strategy, i compare that to venture capital, which is not an is is early thinking about the exits like a private equity fund would. with this new growth equity fund , what are you all thinking about that is diffe

some involved kkr making a $150 million investment in pandora. it's a financing deal that will close in 30 days. david faber has been doing a lot of great reporting op this story. i just want to add some of my own. i'm told from sources that pandora is not only actively trying to sell itself, but it believes that it can get a deal done before that 30-daytime period ends. in which case, it would have to pay kkr $15 million basically in insurance policy as david was saying, certainly as i'm hearing, that's how the company views that $15 million payment. giving the company a 30-day option to sell itself, which it thinks it can do, i'm told. the company's adviser are actively working to get a deal done. according to my source, pandora is confident that the investor makes it more likely to happen and that's why they were will be willing to spend the $15 million for an insurance policy, much more to come on that, but again, my reporting is that pandora is confident that it can get a deal done in the next 30 days before the financing deal with kkr would

kkr raised $150 million for them last week, and it could be more, at least according to my sources. payments they had to make to music rights holders for that, so they needed to cover that and do some marketing so more people know pandora now has is paid option. scarlet: awesome color. julia: thank you so much. come, oiltill to jumps as saudi arabia and russia say they are in favor of extension to supply cuts. can the rally be sustained? this is bloomberg. ♪ scarlet: this is "bloomberg markets." it is time for options insight. is the chief today market strategist at bullseye option. great to see you on the day where the s&p and nasdaq are both making records. what are you seeing in the options world that encourages you are discourages you from thinking that this rally will continue? >> which are seeing today is all about oil. now in terms of volatility, not much happening. plusde those new decade lows and now around the 10.50 even, a bit positive though the s&p as at that high. today's options are somewhat light. that is what happens on a typical day here. >> when it comes to oil, w

kkr has indicated it would pay at least $16 billion.eprices in the u.k. faced a quarterly decline for in years.time -- the changeover is costing southwest over $500 million. that is your bloomberg business flash it >> joining us from -- oliverya much out michelle -- >> that is true. very strong sentiment of optimism in france this morning. the outcome was good news for economy andin the europe as well. >> we've seen countries take big pushes to achieve reform. the british did it in the 1980's. talk to me about how long it takes to implement the reforms and really generate the fruits of our labor. only talking years, five years, decades? -- are we talking years, five years, decades? if you look back at the -- ple of germany that managed to turn around at the levelut it of economic health every know today. >> when you are talking to clients and advised leaders on marketing, how do they feel about this? ?o they feel populism is dead what is the feeling incorporates right now. >> well, to feelings. first of all come upon was him is not dead

>> i'm joined by jim burns and henry mcvey from kkr. i have toto complement you, i don't get a lot of reports coming across to my desk starting with a quote from through the looking glass. jim, let me ask you, what is an ultrahigh net worth individual? who are we talking about? jim: if you ask 10 different people you would get 10 different definitions so it was important for us to lay out exactly how we define it. investorst that with which we define as 10 million to $20 million in assets. henry, when you are talking to vault, you talk to many other people of upwards of a billion dollars, right? henry: one thing we do is interact with all different types of investors, global endowments. we did a survey of 15 -- 50 high net worth families and what .truck us is the sheer size every five is one in people that we surveyed, it was an operating business, which is quite unusual, and they are focused on absolute return relative to relative return. in the pension world drive their business that way. i think they have a demand for a barbell strat

that is according to kkr. fall from 9.3% to 5.3%, historically. seeess that if they want to indices in the next five years. trump says he may release his tax returns but not until he is out of office. in it and to be economist, the president says no one cares about his tax returns except for reporters but he may make them public because they showed the -- they show he did a good job. global news, 24 hours a day. powered by our more than 2600 journalists and analysts, in more than 120 countries. i am taylor riggs. this is bloomberg. a guy: 28 minutes until the bank of england releases its latest decision on interest rates. we do have a busy morning. we get a super -- we get a press conference from mark carney. the number of dissenters will be part of the conversation. the mathematics are little bit different this time around. i'd they? -- around. arnot aren't they? ra: the inflation forecast is expected to be raised. the market attention is really on whether we are going to get one dissension or two dissensions on the hawkish side. there is a conse

private equity firm kkr is in talks to make a bid for toshiba's memory chip business.d completion of the sale. kkr said it would pay at least $16 billion. the two largest cable operators in the u.s. have agreed to explore ways to work together in the wireless business. comcast and charter want to better compete with the giants in the mobile phone industry such as verizon and at&t. they plan to negotiate better rates or reselling wireless data. cutting out companies that don't spend heavily on research. the pharmaceutical research and manufacturers of america would raise the research threshold to $200 million a year. that would be a high bar for these that focus on buying older drugs and raising prices. prescription drug prices have recently come under increased scrutiny. that is your bloomberg business flash. tom: thank you so much. guy johnson and tom keene in paris. it is victory in europe today. it is also victory in macron d ay. with us now is someone that knows president olland, laurence boone. to work forlike president hollande? he is staggered in the polls. what

kkr now a money in pandora, money in lyft?listen, it's private invest to public equity, $115 million, convertibility that gets 7.5% in cash. the thing is pandora needed the money. we skid wester about it. they did. they needed it. they got is it. i don't know why the market sees it as more likely -- guys, it's less likely. >> you're ruining the narrative. >> so. >> were they eries investigate rating. >> i don't know why that's a positive. >> this is -- >> a lot of $70 million ebitda. i don't quite follow this one. i take to mcfay about it last week at, and he said bike it at ten bubbles maybe. he didn't quite say that, but that's what it was like -- >>> and alexis, wow, she's better than the dog, better than the -- well, let's leave it at that. >> we have them cutting the price from 150 to 180. we do expect another version to be announced today. according to this we're talking about -- >> the echo. >> echo scratches my back. >> we're at the very, very beginning of it. you can ask it business questions, foreign policy request h

company going public kkr real estate that industries doing well lately.g. live look at the dough, off 85 points, 20,008 57. nasdaq below that 6100 level today. s&p 500 down half percent. parent company of snapchat drags stocks down. down 80%, back to where it went public 18% $18 per share snap reports revenues growing in triple digits compared to last year snapchat app adds fewer users. not doing as well as facebook, twitter. it had to pay money for going public in the way of employee compensation packages because of the ipo. ceo donna $750 million bonus for taking the company public apple expands operations cupertino-based company announced one billion-dollar expansion in reno. it plans to add 100 permanent jobs doubling the size of the current workforce. second phase of the arizona data center under construction. there's reports phase 3 is about to begin. as usual apple is not commenting on the report. >>> u. s. post office wants to raise the price of stamps by one penny or more despite upticks and delivery the postal service is reporting an overall los

kkr. >> long, i'll take the stand on retail. >> disney, pick your spot. >> afl, aflac, bought it. >> perfect ending. >> amazon unveiling a new echo with a touch screen. it can, by the way, be used to make video calls. alexa, are you invading my privacy? another back eye for the bruised and battered airline industry. a brawl involving spirit airway. supermodel christie burns turning her attention to health care and childbirth. she will join us live this hour. "power lunch" starts right now. ♪ >>> and here is how your money is doing today. the good news it's not down much. the bad news is it's not up much either. a narrow range for stocks. still, as melissa noted, amazon as well as apple keeps surging ahead. they are both trading at record levels. believe it or not consumer stocks are your best sector today. if you own marriott, under armor mour or wynn resorts. tyler? >> brian, thankful. welcome. i'm tyler mathisen. volatility not so much. all but dried up this year. let's get straight to bob pisani at the new york stock exchange. the fear gauge hasn't been this low in a quarter centu

from what we understand, major private equity firms, blackstone, kkr, carlisle, all representatives are carlyle is here. they're planning to got their deals done, the deals that are in the pipeline done in the next couple of months before this private, before tax reform, if it does hit. so what they're doing right now, they're rushing to get these deals done, the deals in the pipeline because they want to get them done before this private equity loophole is -- liz: are they hiring lobbyists or just accepting the fact it is probably going to come? >> that's a great question. first they're pushing you out deals from what i understand. how many deems we're talking about? we're talking about hundreds. we don't know the exact numbers because they are private equity deals. they don't announce it. you can imagine these are hundreds of deals they want to get done quickly before they lose this loophole. the second plan of attack, it is kind of interesting, doing it two-prong, exactly what you say. sources telling fox business network is that private equity is about to unleash the sort of mother

>> my favorite names are kkr and blackstone.ot in the indices because their partnership, the stocks are really working. when we get a drop, they're going to become corporations and get bid up. we still love blackstone, kkr and lizard. >> you must have loved the news of the saudi partnership with blackstone. >> absolutely. $40 billion new fund. this is a great business, trading at less than 10 times earnings, and it is all because of the shift to passive investing. everybody is putting their money in index funds which can't own blackstone. it is a great business. >> danny, what about you? what do you think is interesting here? >> i would agree a lot with charlie, ee special on the passive tip. i think that lends itself to the story we were talking about earlier in the hour where, you know, everything is staying where it is and that has a lot to do with passive investment. i think a lot of people have actually set it to forget it, especially in their retirement accounts. so that could be the reason why we're not seeing the vix so

private equity firms like blackstones, kkrs, why they need, they save companies., they save a lot of them. they get this sort of benefit known as carried interest on their long-term investments. that's why staples or other companies like that can be saved. hilton, 2008 during the financial crisis. liz: at some point -- no, no. they say that billionaires -- >> let me thick this point. liz: billionaires are paying 15% because of that carried interest loophole and rest of the world is paying 25, 35, 45. >> well, listen, capital-gains taxes are boeing loner this bill but for the same reason. liz: don't shift it. >> you want to promote capital investment, so businesses buy other businesses. liz: president trump, candidate trump said they're getting quote, away with murder by using the carried interest loophole. he said that during the campaign. >> let's be real clear, candidate trump said a lot of things so, i think that they, they, we don't have to go into everyone of them. and what he is saying now. listen, there is going to be, listen, some of this i'm not carrying

joining us now is david rockecharlie, the head of kkr's real asset investment.eagle furred. you never do tv, so thank you for doing this. the big question, you have oil rigs continuing to increase its opec production continues to come down. how does that resolve itself on the curve. the most important to think about is oil companies are trying to make body and they have money to spend. they look at the forward curve for signals, when to invest in their capital but they are a growth business and will keep investing until they run out of money. alix: when you look at prices out in the year, around 52. i'm trying to get a read on what level would stop that production level increase. oil companies think they can make money at $50, so they will continue drilling. moneyhas been a lot of invested in land, particularly in the permian basin. you cannot spend $40 billion on an asset that does not produce cash flow and just let it sit there. how long does that story play out for? 40 billion yes, but maybe not in the next nine months, if the curve stays around 50. spent tha

pandora announcing a new 1$150 million in the stock from kkr.ine radio services posted a first quarter loss of 24 rents a share, better than the 34 cent loss that wall street was expecting. >>> fallout from that united passon rer drenger dragged off t last month didn't seem to dent the bottom line. we'll see if that changes in the ensuing month. >>> munich re reporting a net profit of 6$608 million for the first quarter. the company also reaffirmed its full-year outlook. >>> and toshiba warning american digital not to interview with the sale of its chip unit. this foll th this. >>> now time for top trending stories, watson doesn't have a fan. watson was slammed at the sohn conference in new york. >> watson is a joke. to be completely honest. what ibm is excellent at is convincing people who have less knowledge to pay for something. >> on a programming note, he'll be back on cnbc this morning, guest hosting "squawk box" from 8:00 a.m. to 9:00 a.m. eastern. >> it's a blunt slam, but people are trying to figure out what is watson. it's not a produc

>> people listen to it -- i think the kkr money to me -- >> well, we'll see.ng it -- that would be june 8th. but you know yesterday "the new york post" reporting they're in talks with sirius. listen, they have been in talks with sirius on and off since i first reported on december 1st that they were open to it. the question is will they ever get there on a deal? when you track sirius and the various things said over time it is kind of funny. february 28th at the right price it's interesting. not clear this is the right price. i wouldn't hold my breath. >> right. >> fast forward up to where we are today. but i'll tell you is this. people close to sirius say that the two companies while talki talking -- this is the last thing he had said back on may 9th. i think he said that to me. but the two companies while talking remain -- they're not reaching an agreement on value. and from the perspective of sirius at this point they look at the last quarter of pandora which was not a particularly good one. they do seem to have some qualms with the subscription business, b

the company posting narrower than expected loss and revenue below consensus but announced kkr agreedo invest $150 million into the music streaming service. while pandora explores strategic differences. down though. >> a cnbc exclusive with john wald r waldron. and then later facebook, google, apple, twitter, all making big bets on original content. we will talk with one producer helping lead the streaming push when "squawk alley" comes back. ♪ >>> dow up about 11 points. send it to wilford frost live from goldman sachs's second annual director's symposium in chicago with a special guest. take it away. >> reporter: hi, sara. good morning. thank you very much. i'm with the cohead of the investment bank at goldman sachs. good morning to you. thanks for joining us. >> thank you for having me. >> still announcement in terms of leadership changes including you have two heads of investment banks. what's the rational. >> we made a third move yesterday to reflect next generation leaders stepping into new roles across the division. obviously two new coheads of investment banking, so i will get

that involves strategic investment from kkr to the tune of about $150 million.ng, melissa, because as you recall, pandora had been in the process of looking to sell itself. it has retained morgan stanley to do so. it had an activist investor in the stock that had been prompting it to sell. you heard from him earlier today. talking about century link. this seems to be the path that pandora has chosen. we're still listening to more of robbins' presentation. we'll get back to you with his justification for urging investors to buy those three stocks. melissa? >> leslie, thanks so much. interesting names. ones that we hardly trade here on this desk. >> fmc is an integrated company, in the fertilizer space. this is a brutal place to be investing. i've been long a couple of these names in the last few months. it's not been easy. a name like this comes up at a conference like this, and they've done their work, it's worth taking a look at. >> the ftc is interesting. it's a name we're active on the desk recently. they've got no bid for this as far as covering their shorts

>> no, no, no, you want to hold this as long as the stock market gets better, it's great for kkr, great for carl icahn, we want to hold on to blackstone. they're all good. how about steve in missouri? steve? >> caller: this is a big boo-yah from brother jim's church of cramerica. i have invested in amazon, and due to that, i have tried to concentrate my online purchases to amazon, but i've noticed that amazon appears to almost always limit free shipping to prime members. so i found the same things on other sites, mostly ebay, that ship for free. so due to this, i'm questioning amazon's is online selling. i know it's only part of amazon, but it's what the company was built on. what do you think? >> no, i think amazon is fine. it's -- you know, it's a great revenue growth story. it actually had good profits last time. i prefer it to ebay. ebay had a so-so quarter. i say stick with amazon. all right, ready, set, rotate! we saw the recession stocks rally today and that will happen until oil turns. but you know what, tomorrow's non-foreign payroll number will give you a new slate to draw. on

. >> when you think about that mission, you have spent a lot of time under the auspices of kkr over theand transformed the company. where do you look to go from here? where are your focus is in terms of investment going rwd? >> the transformation we did, the way we like to say it is we are still in our second inning. this is just the beginning of a great long-term ow play. we have 35% we play in a more than $26 billion market highly fragmented. we have, thiscash tremendous room for us to grow. >> more than half your cash last year came from selling to industrial clients. we've heard a lot of banter from the u.s. administration about by a american, higher, boosting manufacturing here in the u.s. will this have an impact on gardner denver's business going forward? >> we have 37 manufacturing sites globally, so we are able -- what we make in the u.s. primarily stays in the u.s.. what we make in europe stays in europe and also in china, so i think it will help tremendously. not only because of that, but the uniqueness of our products that are helping save energy consumption, and this is som

rod, and kkr are the front runners in the bid for its semiconductor unit.ad a number of broker upgrades. we've been talking about the political turmoil in brazil and that has followed through to asia. we have seen asian investors dump their brazilian equity holdings by selling out of etf's. as much asnd linked 9.6%. quite a lot of sell down and that was reflected in what we've seen in that market overnight as well. anna: thank you very much. juliette saly in hong kong. let's turn our attention to washington. president trump goes on the defensive. yesterday, trump denied trying to quash an fbi investigation of his former national security advisor and said there was no collusion by his campaign with the russians. >> the entire thing has been a witchhunt. there is no collusion between myself and my campaign, but i can only speak for myself and the russians, zero. manus: the president said it was totally ridiculous to think he'd done anything that would amount to an impeachable offense but he said he respects the decision to appoint robert mueller special couns

alix steel earlier spoke with the head of energy assets at kkr about he -- how the seas oil investment next year. >> oil companies are trying to make money and they have money to spend. they look at the forward curve for signals for when to invest their capital. they are a growth business and they will keep investing until they run out of money. >> when you look at the forward curve and prices, $50, $52, what level would stop that kind of shale production and oil rate increase? >> the oil companies think that they can make money at $50. they will keep drilling at this curve. i know you are well aware, there has been a lot of money invested in land, particularly the permian basin and the number is $40 billion in two years and you cannot spend $40 billion on an asset that does not produce cash flow and let it sit there. >> how long does that story play out? 40 billion, yes, but maybe not in the next nine months if the curve stays around 50. >> the $40 billion was spent that the idea that he gave them an opportunity to spend more once they acquired it and the most important thing to reali

shares trading higher as the streaming company announced a $150 million investment from kkr and a boardroom shakeup as it gears up for a potential sale. >>> a couple things on the agenda. at 10:00, the job openings and labor turnover survey along with wholesale trade data. three fed speakers, regional presidents neel kashkari, eric rosengren rosengren and rob kaplan. lots of earnings on tap. discovery communications, liberty media, dean foods and valeant all report before the opening bell. we'll bring you that news as it crosses the tape. after the close, electronic arts, news corp., tripadvisor and dow component disney. we will get comments from bob iger. don't miss it. an exclusive interview -- or a cnbc first interview with bob iger, that's at 4:10 eastern time on closing bell. >>> joining us is ed keon from qma, and jurian timmer. knowing both of you as i do, and i'm not sure that technicals necessarily are pairment in either of your view. i guess what the vix is indicating, that is a positive in the french elections, positive earnings, things like that. you would probably be part of th

nonetheless, a capital raise from kkr could renew optimism for pandora's (ticker: p) potential sale,ingful incremental downside in the near term. this may renew speculation about a potential acquisition of pandora, but does not meaningfully change our view of the limited potential for upside in an acquisition scenario. should i buy yelp? johanna [ birds chirping ] [ inhales, exhales ] [ announcer ] cigarettes are not just dangerous when they're smoked. [ rat squeaking ] they're dangerous long after. cigarette butts are toxic. they release chemicals that poison our water... and harm wildlife. and millions... are polluting our environment. [ sniffing ] [ seagulls squawking ] ( mark ) health officials are warning about the rise in ticks across the bay area and the wet weather is to blame.( darya ) kron 4's charles clifford reports on the areas you need to avoid. natsfollowing a wet winter, the bay area's parks and trails are covered in tall lush grass but there are also ticks lurking nearby. waiting to hitch a ride on pets or people. ticks also love moisture and they are thriving in the

finally, i want to note, kkr also got a reit -- mortgage reit going public right at the bottom end ofange. waiting for tpg to go public. >> i'll take it from there and talk about something else we have seen this week which of course is the -- well, the questions dealing with the media industry. questions we have been talking about for years and it seemed to come in and out of concern. one of them -- one of the key ones the foremost one being how many consumers are saying no more to their video subscription overall? just taking broadband and not subscribing to any of the new smaller packages that we call mmpds. the likes of hulu from yesterday, or sling which was the first one out there. directv now. you know what i'm talking about. some are taking those and a lot more are saying, see you later, video. i'm fine with my broadband and maybe my netflix and amazon. maybe i'll get a separate scribetion to hbo and i'm done. we got the numbers as they piled from the distributors like dish and comcast and charter and so forth. viacom was questioned because of something related to this. the cha

. >> by the way ringing the bell is kkr, celebrating a recent ipo., a provider of concept design and sketch to scale -- i think. >> that's the reason you could have nike personalization. personalization being a big theme running through a lot of what's still working in retail. you have your own. >> okay. >> personalization we hear about it a lot. not just in retail. remember iger talked about it on the disney call yesterday in terms of what you could see from the espn like product -- branded product. >> that stock doesn't do that poorly. i would love to know how you feel about it versus fox. >> well, fox actually did not have a bad quarter. >> no. >> the reviews are generally positive. certainly seemed to encourage a number of the analysts who follow the company. and what you're getting is more or less an inline kind of sense. you can see the stock is up. all the stocks that jim referenced had been pummelled on the overall concern about both the advertising environment, coupled with what we saw this significant increase in cord cutting that took plac