. >>> and carlyle, kkr, blackstone, is the sector presenting an opportunity? first let's check the s&p sectors. there you go utilities are leading the way today. financials are in the back what's up with that? >> not a good day. great day yesterday. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. you'll only pay $4.95. you're gonna do great! thanks, dad! break a leg! aflac?! not that kind of break. oooh! that had to hurt. aflac?! not that kind of hurt. yeah, aflac paid us cash in just one day to help with our car payments and mortgage. aflac! perfect timing! see how aflac helps cover everyday expenses at aflac.com. your but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-

is they willr kkr implement the 200 billion come september.his is the additional $200 billion of chinese imports? that they threatened to impose august 31? henry: yes, and that is not where i think the market is. last time when we spoke in january, i said people were behind the curve in terms of the fed would do more than you pushed me and said that is crazy. what i'm saying today on trade is we think that has a longer tail than what the market today thinks. we don't think there will be an all-out trade war, but the china thinklan is really -- i the u.s. administration is focused on that, and probably for good reason. second, i do think they want more of the level playing field or on autos. as we think of investments globally, that has impacts on supply chain. my team is spending a lot of time working with our deal teams, and making sure we think through that and have our basis covered -- bases covered. erik: in a simple set of terms you can come up with, trump aggressive on trade, more aggressive than the market anticipates, that makes, broad

analysts and investors say kkr is growing share in the i industry kkr was behind two of the biggest buyouts in the quarter and has been diversifying it's asset pool of course a big challenge that all of these buyout firms have are how exactly do you put a trillion dollars to work with evaluations where they are >> this is an incredibly important story. private equity, when i began in this business, there was about 8,500 stocks there's now half that. the private equity world was small. public capital markets are shrinking, which are the markets that most viewers invest in. the private market, which is generally only available to the wealthy, they continue to grow this is why we're seeing 10, 15 private equity executives get these paychecks. >> i think there's about 4,000 publicly traded stocks in the united states. >> there were over 8,000 20 years ago. you're looking at double the number of companies owned -- or have some -- the private equity world has some piece of about 8,000 companies. >> this market that was fairly small 20 years ago continues to grow but is inaccessible to most people

take a look at blackstone, kkr, they've been firing to the upside, up 7%, 8% in the last five or six trading days there are pieces that are not performing the xlf, no, it's not there. >> you're not talking about the banks, right >> i still own bank of america i'm still waiting on bank of america. i guess bank of america, citigroup, some of these names will catch a bit, they haven't but i guess they will. >> what i've done naturally is narrowing the portfolio. microsoft will continue to work. but i like mastercard and visa much more. >> but you're only liking the financials at this point because of your ownership. if you didn't own these stocks, would you run out and buy them no way >> no, no, you're absolutely right. they're legacy positions with mastercard and visa, i added to it not that long ago. i don't really view those as financials, right? even though we talk about them as financials, they're consumer stocks, right? as long as consumer growth keeps going and they keep benefitting without the liability of the bank or the balance sheets of the bank -- >> i actually think they're

does kkr, who we list as a potential bidder, have the firepower to acquire $40 billion listed companyequity is sitting on a ton of capital and they raised a $9.3 billion fund direct only focused on the asian market, which makes it one of the largest private equity players in the region. billion have a $14 listed company. we need extra firing power. they could team up with strategic, another private equity. also trading with institutional investors. definitely has firing power but it needs help. matt: there could be a consortium. my microphone was off. there could be consortium here. do they ever go in with strategic buyers? to the only do have an equity? sara: we are seeing a big trend with private equity. it gives them an extra edge. they can say it has potential synergies to the deal. we're seeing have it equity funds get creative, bringing institutional investors, their peers, and strategic's. matt: young china earnings missed estimates. does that make this a better time to buy? obviously when there's love in the streets it's a better deal. sarah: they don't want to be seen as ambu

in the ppm industry envision health care in the process of being bought out by private equity firm kkr. chainos trying to make the case the business models for position roll-up-type companies is not sustainable long term and questions whether profit growth can be sustainable given pushback from the hospital service side of things moving downward on that news and waiting to see if he makes those comments and takes them further durings with interview right after his best ideas conference. two shares to watch. >> over to you. >> we are, dom, thank you very much look forward to being joined by mr. chainos once he leaves the stage behind us as well. tune in with leslie delivering alpha as well. les? >> scott, as you know a content-filled morning here at delivering alpha, but one theme has rung throughout every single ke session we've seen, trade. you mentioned starting with larry kudlow, spoke at the national lead of the economic counsel for the president, saying the president is absolutely doing the right thing but he did say his sources tell him that china knows they are doing the wrong t

kkr's profits becoming officially a corporation. 36%, but ift were , theyok at shares of kkr rose 29%from a partnership. this will allow it to take advantage of new tax breaks. and that is your business flash update. of theresident trump's european union will start the buying american supplies right away. the news of an announcement of plan to government's a provider $12 billion of assistance to farmers. >> it is a big deal for american agriculture. thehere is why, 95% of world's consumers live outside of the united states. we just comprise 5%. we have aapita basis, high year purchasing power but the long-term where the future markets are for our producers in the united states, it is in the international market. it also was announced yesterday that it is not just the ag side but also on energy. that can see itself and fuel itself is more secure. the next step, having the united states feed the world and fueled important forery us economically but also important as it relates to national security. kevin: sticking with agriculture for one more question in terms of soybeans and a host of

. >>> finally, unilever says it has completed the sale of its food spreads business to kkr. that deal, which was announced last year, is intended to help unilever focus on its stronger owth areas. shares were up more than 1% to 55.77. sue? >>> bill, the lighting company acuity brand said strong demand for its infrastructure and utility products h spedes rise and top estimates. profits fell, but they still came in well ahead of expectations. the shares popped more than 12% to 132.05. >>> micron technology says it has not yet received an injunction, halting sales in china. earlier today, bloomberg reported its rival, united micro electronics, said a chinese court had temporarily banned micron from selling hard drives after a patent infringement lawsuit. shares fell 5.5%. >>> we told you last night thato axium was to reaching a deal with ad companyntpublic group. now it's official. interpublic will pay nearly $2.5 billion for axium's marketing sotions business. they said them trim debt and add to the stock buyback program. shares jumped to 39.45. meanwhile, interpublic fell to

i think people are waiting to see what happens on kkr.ht now the results are favorable for kkr. >> last time we had you on what is we when the proun prince of saudi arabia was in town now that months have passed any better sense for what he means in saudi arabia. do you own the domino's pizza franchise there. >> it is the best pizza in saudi arabia i will give you the number if you want to order it the crown prince is doing something in saudi arabia that nobody thought could be done chaining the social more rays, changing the business practices. i think it's working out i think the economy is doing well, oil prices being firmer has helped the economy as well. >> let's talk politics you are an expert not only in private equity in the markets but also in politics you spent a lot of time in washington what do you think we are facing in the mid terms what's conventional wisdom. >> conventional wisdom today is that the house will probably go democratic but not by as much as was thought to be the case before generally the president in power in

kathleen: a consortium led by kkr is buying a taiwanese chemicals company for $1.4 billion u.s.an dollars a share, 70% remy him to friday's posing price. elsie y be listed when the --lcy will be listed pending regulatory approvals. haidi: that is just about it this morning, but kathleen, you and i are sticking around. around. as we continue to watch the yuan stabilize, i should point out early this monday morning, but the doubt was down 8% since march. we saw that fixing from the pboc for the first term in a year. a weakening gap in two years. watching for that fixing today and key is the contagion effect on emerging markets. we are speaking about e.m., the perfect storm. global advisors president and ceo joins us. he says if you are looking at this background of the fed, interest rate differentials, no worrying about the chinese currency and a trade war. things are not -- things are looking quite different. kathleen: he made that call a couple months ago, so he was appreciative on that, but speaking of emerging markets we are speaking to dws aipac cio and head of emerging marke

the takeover of the california company was a move from kkr to create the world's biggest provider of, engineering, development services an idea was completed in march with shares -- shareholders worried. sending the shares down by 20%. -- 28%. vonnie: tight ranges and low volume for socgen. interesting movements in the last game -- in the last few days. with the currency movement, you highlighted the emerging-market currencies, which have been selling off, we see dollar-yen at 112.48. some saying this is due to technical factors but trade discussions and negotiations and all of the geopolitical turmoil and constant rotation of characters is weighing on markets. the renminbi trading at 6.70. movers, themacro g20 countries, i thought we would look at mexican sovereign buyinga little bit of with the yield at 7.58%. italy is weaker. mexican peso strengthening today. a currency that is bucking the week trend. mark: talking about wedding anniversaries. the impact of the geopolitical tensions on the markets. whoed by marcus ashworth celebrates his 25th wedding anniversary next week. he did

. >> going into financials, kkr. giddy up. >> alibaba, keep buying it. >> tim >> mexico, i would be saving it. big move, get out of there. i melissa lee >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money. welcome to cramerica you want to make friends and get you understood money call me or tweet me@jimcramer. the three ts are the ts that are trouble with a capital t, which rhymes with p andit stands for deep dark pool that readily threatens any rally in the second half of the year and today's rally. the dow climbed and indeed climbed 1.12%. yep, we're drowning in this rule of pens and tariffs. and the market got a sweet reprieve today on a great day for the market, why don't i explain to you what so many commentators, pundits and money managers are wringing their hands about, obsessing about so you can understand their nonstop tale of

now it's been a while, it's not loick it's overnight it's not trade in the private equity world, kkr, blackstone, some of these name, they are absolutely performing >> absolutely. let's welcome erin brown nice to see you on this friday >> thanks. >> here we are give us your view. we have gotten it from the fellas on where you think we are, the trade war gets real. jobs report was good set the stang for us >> with respect to the trade war, everything that's been announced today was things we now about. this is a skirmish still part of the back and forth. i think though we've seen markets come down pretty substantial substantially july sa great month to be long equities. over the last five, ten and 30 years. i think it's setting up for a good environment going going into earnings season >> why do you think it's low. >> weath've seen a lot of steam getting taken out. i think people are expect iing earnings are going to be good, but i don't think they realize how good it's going to be. we had extremely strong second quarter bounce back in terms of the macro economic data. we've seen that

and kkr among the private equity firms considering whether to buy young china.loomberg has learned that they are talking to banks about financing the deal. yum china operates kfc restaurants and has a market value of almost $14 billion. the steve eisman has a several companies he is shorting now. in thea central figure movie "the big short. he's" short." tha is your business flasht. vonnie: speaking of shorting, we will be talking to karl some block of muddy waters in a little bit. and shares diving after a weaker earnings report. that is next. this is bloomberg. ♪ caroline: from london i'm , caroline hyde. vonnie: i'm vonnie quinn. this is "bloomberg markets." center features in focus, the dollar taking a small leg lower, but gdp at 4.1%, so what gives? us is us is -- joining paul. why didn't we get -- from the gdp report? paul: that is true. it was a very good report. it was a little bit below expectations. i think the dollar has run in advance of that a little bit, but the component -- key component of that was -- coming in a little bit lower than 2%, which c

you can watch the event on live go. , at kkr,ry mcveigh opened up his playbook.d details with erik schatzker. >> the u.s. economy is 70% consumer. confidence is high. taxes are low. we have strong momentum. i was in china last week talking to business executives from the chinese companies as well as the u.s.. isoverall view is the market overly optimistic about trade. the trump administration is focused on autos and high-end technology. our base view is they will implement the 200 billion in september. i don't think that is -- billion oftional $2 tariffs. >> that is not where i think the market is. i think last time when we talked in january i said the fed -- people were behind the fed. you push me and said that is a little crazy. i said here is my view. we think that has a longer tail than what the market things. it doesn't mean there's going to trade war. plan,ina 2025 land is -- the administration is focused on that good reason. they want more of a level line field around autos. around investments globally, that has impacts on supply chains. my team has spent

. >> going into financials, kkr.> alibaba, keep buying it. >> tim >> mexico, i would be saving it. big move, get out of there. i melissa lee >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money. welcome to cramerica you want to make friends and get you understood money call me or tweet me@jimcramer. the three ts are the

. >> you're seeing a lot of bets on -- well, look at some of the kkr move that we've seen, you know some of the big asset managers and so forth, judge. it is not just schwab, jpmorgan, and others this is also the asset managers. i think they've been doing phenomenal. >> you know, i think the sentiment has been largely against the banks. i mean, basically, wall street said, oh, the banks, forget about the banks. if you look at the valuations, the valuations, i think, are still compelling banks, when you talk to them, and a lot of the large financial institutions are making money on money market these days. they have more revenues, and they're watching this flat yield curve. basically, the higher yields are going to continue to benefit, too. i think they're cheap. >> you agree >> i feel i've been a broken record when it comes to the banks. one of my top calls. >> you have a lot of company don't worry. >> i'm with you. >> it hasn't worked for portions of the year. what i will say -- >> you're not wrong yet. >> -- they still have multiple drivers of potential outperformance i think the ackno

hillhouse capital and kkr are among the private equity firms considering to buy young china.rned they are talking about -- talking to banks for a possible deal. almost market value of $14 billion. that is your business flash update. joe: what you need to know for next week is coming up. this is bloomberg. ♪ scarlet: "what'd you miss?" a decline in u.s. stocks on the day, but the s&p finished tire. does nasdaq -- the nasdaq is the big loser this week. the boj and nonsense -- announces its rate position. joe: and i will be watching the fed decision on wednesday. no print conference this time -- press conference this time. julie: the bank of england announces its reposition on thursday. joe: and jobs report friday. scarlet: that does it for "what'd you miss?" isie: "bloomberg technology" up next. joe: have a great evening. this is bloomberg. ♪ this isn't just any moving day. this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up

erik: you compare that, as people do, to the kkr's. about the same size. blackstones.he we're the sixth largest alternative manager and growing. what do we all look like? we will be higher than number six in alternatives. erik: you need acquisitions to gain in alternatives? larry: we did a small acquisition. we are in the midst of growing our long-term capital fund right now. which we hope to have closed in the coming months. is, probably not. we see very good opportunities right now. in termse best quarter of flows and potential new flows going into the new quarter -- going into the third quarter. not, but on a case-by-case basis, does it make sense to do more partner type deals? larry: we are not presently looking at anything in that way. are said in the past, we looking at mergers that we think will be transformational. it will be more technology for us as we continue to build our aladdin services or technology services. lisa: that was part of the bloomberg extensive interview with larry fink, blackrock ceo. time for a look at the business flash, a look at some of t

kkr is considering whether to buy young china.alking to banks about financing a possible deal. yum china operates kfc restaurants on the mainland. bp has agreed to make its biggest acquisition in almost two decades. the energy company will pay $10.5 billion. that includes the price permian basis, the fastest growing oil region. david: this week, it has been about tech earnings in u.s. gdp numbers. next week, central banks will take stage -- will take center stage. guests.to our you, let's start with showing you what is going on jgb. the 10-year japanese there was speculation that the bank of japan might back off from some other loosening policies. overnight, they said, will buy them all. the bank of japan is trying to decide what is going on as well. next week, there are several central-bank meetings. the doj is the most important one. the analysis -- the boj is the most important one. it has had a huge impact on u.s. treasury yields and other central bank government bond yields as well. it is because of the relative value dynamic

kkr raising and infrastructure fund, a ton of money in general and private equity. set if want to picture yourself when there is somebody else that has invested money? >> at blackrock, a couple differences. we already have a legit a major corporate in the world. that is very easy to leverage, looking for opportunity. second, we have a global footprint. wen we turn up in a country, are already part of the business, political, regulatory ecosystem. that is a phenomenal advantage when you're looking to underwrite. strong on isery very deep expertise in assets. more expertise means you are less likely to make mistakes in the future. david: a lot of money has been raised for these funds. a lot of it has not been invested yet. are we waiting for public money? there was a time where the administration said and they would be doing public private partnerships. >> the energy and power markets are already deregulated. they are market-based. it dominates the infrastructure market in the u.s. what the government was trying to do here was stimulate other infrastructure -- social

is called beam, which is not again revolutionary but also something that seems pretty attractive and kkrat 25% >> looking to make a big on the public markets and josh lipton in san francisco and he's got more >> michelle, xiomi just raised a lot of money the company priced its ipo at 17 hong kong dollars at $2.17 per share. at the bauottom of that range. but at the lower price it's now raising about $5.4 billion renaissance capital telling its clients its company is valued at close to $9 billion. large cap, chinese stocks remember they're down more than 20% now since their peak in january. internet services do make up about 10% of sales, but its smart phones that still account for the vast majority of total revenue. still this is big evaluation and the company is growing fast. execs apparently hope to make a push into the u.s. as well but consumers here have any concerns about a chinese company given alarms that are being raised by lawmakers over wuawei and zte. >> not unless there's anything major, i treat it like any other company. >> it's really about terms and agreements like that be

taiwanese chemical producer lcy chemical dropped by the daily 10% -- surged by the daily 10% limit after kkrremiumpaying a to friday's close. lcy will be delisted until the deal is approved. haslinda: here we go -- david: here we go again. long-standing hong kong property bears, renewing their warning a correction might be imminent. 13% first half gains. citigroup presented a 7% slide. a possibility of more than twice of that. nomura has a forecast of flat prices this year. bank of america merrill lynch sees a 20% -- 10% to 20% decline by the end of this decade. french current tudor -- computer services company atos has agreed to a deal in cash, giving them access to american customers including american express and state street. it is 4.8% more than cintel's friday closing price. shares already doubled in the last year. david: another company that will be very much in focus, chrysler naming a new ceo with the health of long-term ceo sergio marchionne suddenly worsening. mike manley, tested his first week, with earnings out on wednesday and investors wanting to hear his plans. ouring us on s

president and ceo, senior adviser to kkr bill and bill, nice to see you both bill johnson, i'll startay. >> good to see you >> i talked about the impact on consumer companies which are already feeling it as a result of the canadian tariffs on imported u.s. soups and ketchups, your former business and other key food products. how bad will this get for some of these companies >> if it continues and spreads across europe and asia it can get pretty bad it affects three parts of the business, it affects cost and affects price and most importantly in some cases it affects sourcing cpg gets a little bit of a break because of localized sourcing but in terms of raw material sourcing like aluminum, things like campbell mentioned, that becomes a big head wind and affects prices made in one country more than necessarily another. it becomes a big issue over time if it continues. i don't believe long term that it's in anybody's best interest to let it go on. >> speaking of u.s. business, feeling the heat as a result of the tariffs, the president continues to tweet about harley-davidson seconds ago.

kkr, head of global macro and asset allocation. it is to much. that is 10:30 a.m. in new york.this is bloomberg. ♪ with tomam nejra cehic keene in new york. let's get the first word news. may make a separate trade deal with mexico and have separate talks with canada later. he isent trump said building good rapport with mexico's president and the two countries are getting closer to reaching an agreement. on rewriting the three-way trade deal with mexico and canada. china is firing back at the trump administration over trade. beijing is rejecting the claim by larry cobo that the chinese president is blocking trade talks. china calls the accusation shocking. month, president trump imposed tariffs on $34 billion worth of goods with another $16 billion to follow suit. the trump administration is reviewing a plan to curb kickback protections. drugmakers offer rebates to insurance and pharmacy benefit managers. they want to make sure that pass along the savings to patients. in thailand, the boys soccer team rescued is getting help against future misfortunes. they attended a buddhist c

. >>> over the weekend kkr completed its transition from a publicly partnership to a corporation.ing it eligible to be included in stock indexes. >>> in other corporate news this morning, tesla shares are rising elon musk says the company produced 7,000 cars. this included 5,000 model 3 cars so tesla beat the self-impoessed deadline for the mass market sedan. shares up by almost 7% this morning. >> i haven't seen any of those >> the model 3 i drove one. >> you drove one but they're not around >> we should note the model 3s being produced are not the $35,000 versions the model 3s are still the more expensive ones tricked out at these higher premium prices. which elon talked about the needing to produce the more expensive versions for the next couple of months before he can get to the $35,000 version which is the key to the whole thing on a long-term basis. >>> let's get to our next guest. he joins us from london where he's setting the president's agenda u.s. commerce secretary wilbur ross joins us this morning the first question, how do you expect the reception to be like so many t