kkr wants to pay less, fiat has a floor of an unacceptable price, and right now kkr is about $1 billionhat they are doing now is returning to the negotiation with with others readers the kind of asset that principally attracts private equity. they could have several other negotiators, they do want to sell this business and would like to do it sooner, they have looked at a stock market, a clean sale is probably what they would like more. snag now it is a bit of a but the price is the sticking point. >> right. what does this mean for the new ceo? fiat's new ceo guide rather , andnly a couple weeks ago mike manley is the new man in charge. this is his first big transaction and he has to prove he can handle it, he needs to get it strategically right, putting it on the back burner might be an option. this is a difficult market with the trade wars going on. generally the market for car parts suppliers are difficult, so they might be well advised that they can to get the current price, to wait, and the question is will he have this kind of patience? we will watch closely to see what he does, f

a private equity firm kkr is hoping to get a lower price.ler had a competing offer from apollo. city group facing down's skeptics -- skeptic second region's financial goals as it raises of profits and attributes part of the approved outlook to u.s. tax reforms an additional investment spending. that israel bloomberg -- that -- that is your business flash. vonnie: lehman brothers fell 10 years ago, the official beginning of the financial crisis. we are talking with key players recovering from the crisis. they were then and today they are around to tell their story. welcome angel gurria, oecd secretary-general. thank you for joining us. you are about to have a conference about what you learned from the conference and whether the global financial system is more resilient now. what is the conclusion? is it resilient enough to withstand a future financial crisis? >> we have made a lot of progress on some of the tech go aspects. we have made progress in capitalization. most banks are 7-10 times better capitalized than before the crisis. we made a

is financing kkr's leveraged buyout. italy auctioned the five internet in your debt.s, despite the treasury auctioning off two and five-your notes, buyers but the two-year note that's all the weakest level since 2008. all those auctions were held before the federal reserves decision to raise rates once again. >> the fed the note to shock the markets by making as much of a change at all. >> right now things are booming. the fed is reacting to that. >> assuming the fed itself -- >> there is no sign the fed plans to pause. >> it is a recipe didn't quietly and judiciously and don't do anything radical in one way or the other. four expect we will see rate hikes next year after another one at the end of this year which is above what is being priced in. >> the committee will simply said policy and the best long-term interest of the country and of the economy. i think they will do their very best to ignore outside pressures. >> the economy has been doing quite well. i think that is because of the tax and regulatory reform. the fed's policy about normalizing is part of that in

a host of owners, kkr, lots of others.for any of their businesses to get money out, ipo plans, some others its decision, is that in the offing? nicole: currently we are just keeping up with the demand, to be honest. the company has been growing in credibly fast, and at this point we don't have any plans for a public offering. anna: not being discussed at this time? nicole: not at this time. matt: what about plans for other people to get their money in, nicole? with this kind of growth, surely you need funding. i am sure other investors are interested in getting in alongside kkr and the others. are you looking to do another capital raise round? nicole: because we continue to grow the company, we do open up new offices, hire more people. employees, to 750 probably up to 1000 employees this year. that will require capital. anna: is it becoming increasingly busy, this space? other companies, clad strike, offering -- cloudstrike, offering machine learning based cybersecurity? nicole: there is no so over bullet when it comes to

fiat once at least $6 billion and kkr is offering a billion less. car partsthere are other private eqy companies swirling, so this is a test case for the new ceo, who tok over a couple weeks ago pull back and say the time is not right. they are hearing the stock is down because investors have hoped the money would be in the bank. >> what's the latest on the casinos? ceo is fighting back attacks from short-sellers that plunged his stock to a 22 year low over the summer, while the french retailer announced overnight that it will finally have 500 million euros in fresh liquidity. the company is heavily indebted, the whole group is heavily indebted, which has raised a lot of concerns about the sustainability of the group, of the company. this should bring some fresh air to investors and they expect the shares to open higher. >> all right. we will watch both of those. thanks very much. the market opens in four minutes. ♪ >> a minute to go to the start of equity trading. looks as if we could see weakness at the start of the trading day. the euro is fairly

the investor gro including hillhouse capital and kkr were said to be concerned with softness in yem's financial pormtz. yem china shares plunged 13%o 31.94. boeing ramped up deliveries of top sling 737 airliner last onth after hitting a low in july. the aircraft maker delivered 48 jets in august. and that ism up f 29 the prior month. production bottle necks are causing a growing numbe of boeing planes to sit unfinished. that's resulting in delivery delays. boeing shares were up 1% to 345.25 p. >>> and the fcc sayst needs more time to review the proposed merger between telecom cop sprint and t-mobile. the agency said it's pausing the 180-day informal transaction time line so a third p review the deal. shares of sprint rose half a% to $6. and t-mobile shares finish up a fraction to 65.91. >> payment technology company usa technology says it would miss its filing that is required the 10 k form with the sec by th sday's deadline. the company says it's launching an internal investigation to its counting practices and its financial reporting systems. shares cratered as a result, falling nea

the deal is helping to finance kkr's leveraged buyout. the united states, despite the treasury auctioning off two and five-year notes that offer the highest yields in a decade, buyers bought the two-year note, the weakest level since 2008. all those auctions were held before this week's federal reserve's decision to raise rates once again. >> the fed didn't really want to shock the markets by making much of a change at all. >> things are great right now, things are booming. the fed is reacting to that. >> assuming that the fed moves very gradually. >> there is no sign the fed plans to pause. >> it is really a recipe to move quietly and judiciously and don't do anything radical in one way or the other. >> we actually expect we will see four rate hikes next year after another one at the end of this year, which is above what is being priced in. >> the federal open market committee will simply set policy in the best long-term interest of the country and of the economy. i think they will do their very best to ignore outside pressures. >> the e

>>> bane and kkr are reportedly ng a $20 million fund that will be used to pay severance to acousands of former toys "r" us workers. rding to dow jones, the fund's creation by the private equity owners is an unusual move. a third party will help structure the fund. >>> meanwhile, there are reports out tight that mexico's incoming president has spoken with canada's prime minister about the ongoing efforts to redo the north american free trade agreement. theresident president-elect lopez obrador said he spoke with prime minister justin trudeau and told him he will insist that nafta remain a trilateraldeal. at this point as you know only the u.s. and mexico have reached a new agreement. the deadline for an agreement with canada is this sunday. >>> american households are optimistic about their personal finances. according to the latest reading from the university of michigan's monthly survey, sentiment ieas r highs. expectations for improved personal finances a at the highest level since 2004. the survey showed gnat only concer was about the impact of trade tariffs. >>> speaking of which

kkr and blackstone are among potential buyers for extracting in anressing and it interest investmentuld total $3 billion. that is your "bloomberg business flash." david: it has been 10 years since the financial crisis and many agree it is more secure now than before. wall street's biggest names way in and this is what they had to say. >> we probably have another 18 to 24 months minimum in the cycle just on the back of the adrenaline rush from trump's policies. >> from the u.s. economy perspective, the chances of something happening in the next 12 to 18 months is low. we have 15% to 20% as you get , and the months chances go up materially. >> despite the rally, the market is pricing in more risk david:. . is johnoining us rogers. you saw the last one and it was not pretty. give us a short synopsis of where we were and how it got to where we are. e.ik it was an extraordinary opportunity to buy bargains because so many stocks had gotten crushed and people had given up. says, usefett always maximum pessimism. we had that. inevitably, the economy came back to store narrowly strong and it

includes china chickasaws and wealth fund and the private equity firm kkr.n automakers are losing ground in the shrinking chinese market. the market share of u.s. brands fell from more than 12% to below 11% in the first eight months of this year. the group says the drop was caused by ford and other automakers not refreshing their lineup has enough. car sales in china have fallen for three months in a row. stocks -- shortrs who bit long and gained 1.1% last month. on average, they are up 3.5% for the year. that is your bloomberg business flash. alix: now to wall street meat. -- wall street beat. the micro-finance fund the only firm out of 251 emerging-market funds bigger than one billion had positive returns this year. ing cfo stepping down, resigning following a money laundering settlement. david: joining us now is jason kelly, bloomberg's new york bureau chief. let's start with blue orchard. jason: it is micro finance and how often do you get to say a feel-good story about a money manager? this is blue orchard micro-finance. i love this story because it was

fiat chrysler seeking $7 billion for auto parts, and is in exclusive talks with equity firm kkr, howevernd is aiming to pay less for spinning off the union -- unit have deteriorated. it has a japanese parts maker. haidi: elon musk says tesla is overwhelmed by demand. largeeted, due to a increase in vehicle delivery volume in north america, we experience larger -- longer response times. would be tesla in do or but ultimately successful debut in new york. after pricing shares at the low end. this is bloomberg. ♪ xfinity mobile is a new wireless network designed to save you money. even when you've got serious binging to do. wherever your phone takes you, your wireless bill is about to cost a whole lot less. use less data with a network that has the most wifi hotspots where you need them and the best 4g lte everywhere else. saving you hundreds of dollars a year. and ask how you get xfinity mobile included with your internet. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. haidi: it is a: 30 a.m. here in a.m. h

is evaluating new potential buyers for one of their units, saying an additional -- initial bid from kkrlow. that ended the exclusivity of the talks. a former -- final decision is yet to be made. the ceo said they could be possibly preferred to spin it off on the milan stock exchange. shery: south korea has softened newimpact of taxes with a contract. the sanctions throws a russian giant. that could disrupt supply chains for parts critical to the automotive and aerospace industry. the global illumina and this -- aluminum industry has been bracing for turmoil for the october 23 deadline. haidi: widespread flooding caused i florence continues to wreak havoc. the latest from the scene. this is bloomberg. ♪ ♪ xfinity mobile is a new wireless network designed to save you money. even when you've got serious binging to do. wherever your phone takes you, your wireless bill is about to cost a whole lot less. use less data with a network that has the most wifi hotspots where you need them and the best 4g lte everywhere else. saving you hundreds of dollars a year. and ask how you get xfinity mobile

that's a tord willing -- they're reporting that fiat and kkr are close to reaching a deal but bloombergat least two other groups have expressed interest in that business. >>> u.s. president trump is set to announce tear rifts on ariffn additional $200 billion of chinese goods. the tariffs will be set at 10%, well below the 25% the trump administration had discussed earlier this year. the target list of products released back in july includes electronics, consumer and industrial products. china said it will not negotiate with a gun to its head one state newspaper said, quote, china will not just defend they said the key risk was contagi contagion. >> the trade tenses haions haveb a concern. there will be an economic impact there's been no material impact so far i would say there's a little bit of fear or lack of confidence that's causing people to hold back on investments, in particular investments that would further complicate nothing. for center charter, we're particularly going and it's less accurate in trade between china and the united states. if the only issue were u.s. china trade

. >> right some will say, well, one of the reasons you traded the discount is you're not a c-corp kkrided to move that way you continue to study it, but it is not something -- coming to this meeting, there were people who expected that would be the major news item. why not say, we're going to do that, as well, given what has been a positive market response to kkr's move? >> we've seen what's happened to their stock and others, and we've been impressed we're looking at it closely. we said, i think, on the board, actively considering this is an important decision. we want to be thoughtful we'd like to see sustained stock price performance. we'd like to see what happens in index inclusion. we'd like to see in terms of mutual fund ownership. it is something we're open to, but we're still studying. >> asset flows are so important, and it is something you, of course, focused on today per pepetual or otherwise, what you've had versus your competitors. what gives you the confidence those flows can increase or continue at the rate they currently are? >> i would say the key thing, again, is per

rumors out there that blackstone might, by the end of this year, convert to a c-corp, which is what kkr tax legislation changed. essentially, right now, blackstone is not paying taxes to the degree that they would on performance. if that changes, all of a sudden, you could have more owners mutual funds, other institutions that don't own it will be able to own it. if it is a catalyst, i think it'll work the company is doing well anyway. >> jim in orlando asks you, steph, if you're on stanley black & decker. >> yeah, i got back into it. the stock has fallen 17% on the year it's had a nice rally. down at 9% 8% discount trade to the peers trades at 15.5 times forward estimates. this is a great, diversified company. i love the craftsman deal. be patient this is a tariff-exposed name. on the bad days, that's when you pick away at it. >> jim, andrew in new jersey adobe, buy, sell, hold, after the acquisition. >> before we get to the acquisition, the stock has kw quadrupled in four years price earnings to growth ratio is not expensive it is not cheap but certainly not expensive. the problem is,

continue to hold in uptrend they have to in velocity as pete said before there are names, blackstone, kkr, these names are performing incredibly well i added to bank of america, i think you're going to see financials in the next 30 to 60 days continue to appreciate. >> you know what's so interesting here a year ago, two years ago, three years ago, pick any timeframe longer than six months if you would have said this market is going to reach new highs without google reaching new highs, without facebook reaching new highs >> without even amazon >> that's what's new is you point out, megan about the breadth of the market. >> that's a really good point. does it romaine that way can you -- we were asking the question, account market take the next leg higher without tech, some of the biggest names in tech may not be taking us there. but as long as you have the financial participation, maybe you don't need the googles or the facebooks or the amazons >> you've got industrials kicking in caterpillar up 3%, boeing up 6%, these were stocks that we talk about all the time as far as they virtually tra

bloomberg has learned the investment group, which includes kkr, has decided not to continue pursuingl after its initial proposal was rejected. representatives of the investor group and yum china declined to comment. that is your bloomberg business flash. nejra: debra mao in hong kong, thank you. let's take a look back at a few key dates of the financial crisis. on september 15, 2008, lehman brothers filed for bankruptcy and merrill lynch was taken over by bank of america. manus: september 17, the u.s. government took control of aig , an $85 billion bailout to prevent the bankruptcy of the nation's biggest insurer. nejra: on september 23, ben bernanke and henry olson testified before the senate banking committee about the bush administration's $700 billion plan to remove assets from the banking system. for a look back at what it was like of the height of the financial crisis, we spoke with michael spencer. guy johnson started by asking if he could remember where he was when he found out the news of lehman's collapse. michael: i was at the conference, 2008 conference in birmingham. cam

kkr which will be in the spotlight about if they have reached a deal with the parts maker. u.s. equities breakaway. you can find our charts in our library on g tv . notice the blue line. it notice -- it shows may through august. it shows a breakaway from the u.s. stocks. we are near record highs. get more headlines on trade conflict, it tends to force the market lower. >> the semi conductor index, for example, you can see it rebounding, dipping below the 200 average and then bouncing back. the key issue when it comes to the u.s. harkin and how that whole industry performed on thursday. reports.n to economic florenceat hurricane is going to affect the economic reports but it will be delayed. >> yes, at least one week delayed. we'll get the weekly report this week but we will not see an impact their. -- there a big focus on the fed. we are going into the blackout." -- blackout period. start remaining silent so that they do not impact the news. look at the big data. the weekly jobs report will be out thursday. minimal impact. we're not expecting more of 1/10 of 1% impact. but t

fiat chrysler is in talks with kkr over its auto-parts. there were reports about this earlier.asking for $7 billion. deal and really big would be the first big deal from the new ceo of fiat chrysler. in the markets we are losing a little bit of steam. s&p futures slipping into negative territory. nonetheless sort of a calmer day. a couple things going on here. there was a report be a time government would be looking for 10 million euros -- 10 billion euros for its citizen income program. that has been denied that there are concerns about the finance minister being forced to resign. -- but there are concerns about the finance minister being forced to resign. crude up by 1%. the risk premium gets priced in a little bit. david: at 8:30 eastern time, we are going to get u.s. ppi numbers for the month of august. later, we will hear from two fomc members. is going toasury auction $23 billion in 10 year notes at 1:00. at 2:00 this afternoon, the fed will release its beige book. now, we want to find out what is going on outside the business world. we turn to emma chandra with the "firs

kkr offer thus than the $7 billion minimum that fiat was looking for. david: thank you.hain concerns and drove asia equity markets lower today and that was before the president tweeted this more request saying tariffs have put the u.s. in a strong position with jobs flowing into our country, yet cost increase has been a noticeable. if countries will not make fair deals with us, then they will be terrified. tariff-fied. i am getting used to that word. alix: you are still good with the grammar. [laughter] david: chinese official signaling those talks with the u.s. may stop before they get started, saying china will not negotiate with a gun pointed at its head. -- welcome now, richard lacaille. o will start with a chart -- i will start with a chart. there we go. it basically shows the degree to which u.s. stocks, the white line at the top, for over performing the blue line, and em way down below. there is a divergence right now. how long can this continue? rick: as well as earnings growth remains strong. there are confounding factors, but they removers -- they they may reve

kkr recently closed its fund focusing on telecom midstream sectors.oining me is the man in charge, roger agarwal. >> thank you for having me. alix: the opportunities in the u.s. and western europe, what is it? infrastructure has been massively underinvested for decades, so we are investing in midstream telecom. we are also investing in renewables, water, social, transportation, across the spectrum. alix: when you talk about the public-private partnership, that is polls, roads, bridges. that is not what you are interested in. >> about 5% of what we have invested. invested $4 billion of equity capital last year, a lot of that going into midstream telecom and renewables. alix: how much of this fund have you been able to allocate? >> 10%. if everything goes right, 20% shortly. alix: would this change if the government tries to help, is this irrelevant to how you invest in your strategies? >> it is very relevant and we are grateful that the government is promoting infrastructure. s, we can unlock more ppp' there would be significant growth in the opportuni

chrysler,r -- fiat kkr offered less than the 6 billion euro valuation which ended the x facility of thethe italian carmaker can evaluate other offers it received while it prepares to separate the milan-based company and distribute shares. david -- jamie dimon says he is done with politics. that he has no intention of making a run for the white house, saying the current administration is handling the economy well. last week, he boasted he could beat the president in an election before rapidly backing away from that claim. >> i shouldn't have said it. more out of frustration and my on mckee's not, but i should not have said it -- my own much ease know, that i should not have said it. much.ne: thank you so frankfurt as its post-brexit hub. is assuming there will not be a deal between the u.k. and the eu. >> we are preparing ourselves. is fact, whatever solution coming out, de facto no longer relevant for us. a few weeks ago, we had to make a decision to go and execute for a worst-case scenario. de facto, the financial system isn't really operating under the assumption that there is no agre

kkr are among the private equity groups. could be studying the company.rget, and activist funds may also try to buy a stake in the company. one of the biggest ego battles in the tech company may end. says his company and apple have -- the two companies will soon face legal proceedings. qualcomm and apple have sued each other over licensing fees. the billionaire founder of japan's second e-commerce company will be the first passenger to fly around the moon. he will be on board a rocket scheduled to last off in 2023. the spacecraft will make a week long trip around the moon, but no word on what miyazawa is paying. francine: in nine days, italy's populist coalition government will present new fiscal growth targets. by a few pledges ministers to stick to it european rules. italian bonds fell. investors appear to be staying the course. i am pleased to be joining by spaxs' ceo and, founder. answer with us, nouriel roubini. -- still with us, nouriel roubini. at italy, there was a lot of anxiousness over the summer. you think investor concerns have been a late, b

other potential buyers for its parts unit reports say the automaker got a bid from private equity firm kkrlow. >>> a new report says that ai, artificial intelligence, and robotics will create almost 60 million more jobs. artificial intelligence and its impact on jobs has become a hot topic of debate. many experts have said -- ai will also create new jobs and there's an analysis out from global audit firm wpc making similar predictions. it says ai and robotics could boost productivity and create better products and services >> before we do movies really good, dona, jail was started by will wide who was one of the activist informsers. >>> the sci-fi thriller earned $24 million in its opening weekend. film encountered some controversy when it had to cut a scene featuring an actor that was a registered sex offender. "the nun" went to second place in its second place. following closely in third was "a simple favor" is $16.1 million for its opening weekend. >> he was a horse. >> who was a horse >> donarail. >> the horse that ran? >> upset the big favorite of the kentucky derby in 1913 >> that's

the narrative may be different from what we actually know in the background for example, henry mcvey kkrdon't know whether you've had him on, but he wrote a terrific paper from his last trip to china in which one of the observations that he made was where we assume that we have a multihundred billion dollar deficit with china, that is because in our numbers, we're only counting direct sales, exports from the united states homeland, we are not including foreign subsidiary sales in china. apple for example is doing $45 billion a year of sales from its sub sird arsidiary in china ands growing 20% annually versus about $84 billion a year in the united states pretty soon apple will be selling more in china than it is selling in the united states and if we don't consider that, we're putting ourselves at huge risk now, tim cook has met with the president many times i cannot believe -- i'd be shocked if that wasn't a topic of conversation. so again, the narrative might be different from what is really going on >> all you're talking about is trade. do you dispute the narrative that they steal tec