axel springer shares rocket after the group says it is in talks with private equity firm kkr about a strategic investment. >>> and u.s. national security adviser john bolton directly accuses iran of ship attacks in the uae as gulf leaders meet for an emergency summit amid rising tensions in the region >>> good morning a very warm welcome to "street signs. european markets as you can see are on the mend today. this comes after very steep losses yesterday the stoxx 600 ended nearly 1.5% lower bringing month to date losses to more than 5% lingering u.s./china trade concerns were in focus yesterday. also concerns emanating from the bond market weighing on equity investors. yesterday we saw a further inversion on the u.s. treasury curve yesterday. we'll get into that in more detail having a quick look at where things stand here. italian markets are trading about 0.3% higher. german stocks are racing ahead outperforming the broader european space up nearly a half percentage point in the uk, we have the ftse 100 trading about 0.27% higher let's get into european bond markets. the yield curv

alix: there were a lot of hitters, kkr, colgate-palmolive. i wonder if that is specific to the asset. >> private equity firms were interested in different pieces. that you cane probably market some the pieces of this or take it public and the will be interest into specialist are's -- in the investors. alix: coming up, the health of the housing market, permit data on deck. what the numbers could say about the economy after numbers were iffy in april. this is bloomberg. ♪

matt: annmarie, you are talking axel springer and kkr. >> that's right.berg has confirmation of the story that the two are in talks about a strategic investment. not sure exactly where the talks will lead exactly, but we do know they are in talks about the strategic investment. axel springer, they are the build guys. they published germany's biggest tabloid. we expect shares to really skyrocket at the open. matt: that's right. although it is colorful, i'm not sure you would call it a tabloid. it is still a broadsheet, but it is the most widely read paper in germany. it might be the most widely circulated paper in europe. i got to double check that. of course, we have 80 million people living in germany, a little more. they have a huge market to start with. thanks very much. appreciate your time. get all the latest stocks stories from her equities team, type first go on your bloomberg terminal. get them under news on the bloomberg mobile app. i also want to point out a small company, but it prints money and passports and official documents. it seems to hav

one from sort of traditional investment banking and one from the world of private equity kkr and then equit the world of silicon valley venture capital. >> yeah. >> where's the money going and are the most exciting things happening not in the m&a space but earlier? >> the earlier investments, which are obviously important. and there's a good amount of capital. and jason horowitz, jorge cande our guests there, they're investing with literally a couple of guys in lab coats. they could go that small but those kinds of entrepreneurs now have opportunities to begin companies in part because of shared work shais and the ability stort of do things that might have not been possible even a few years ago because of advance that's have been made in technology and the way you can go about creating a company in life sciences or biotechnology kkr surprisingly, this is not really a private equity effort as in buying out a company as much as it's -- >> strategic investment. >> yeah, strategic investment along the way. not quite as early as jason horowitz but not typically what we'd expect from a lar

the idea here is kkr as a partner can do more acquisitions.e to go through, the future might be a lot more exciting for the deal right in front of us. barry: so if you take a whole bunch of struggling online media outlets and put them together, they no longer struggle? i guess there's economies of scale. there's an infinite number of webpages, and we watched cpm's drop over the last 10 or so years from fairly rich to practically free. sonali: that's exactly the question here. the people they are competing with our google and facebook. in 2004 they wanted to buy the "daily telegraph." what will online be in five years. at least now if they do this with kkr, they can do it in the private i. wework is our third story. he had $6 billion in cash at the beginning of the year. what did they burn through to need this line of credit? typical fors pretty companies to get a pre-ipo revolver. jp morgan is leading it. they have a stake in the company as well, so it is not surprising. the reason this is an exciting story for the rest of wall aneet is it is

and i sold at a good price and happy to wait on the sidelines i'm happier with kkr. >> i bought cition i disagree expose ush in china is limited for citi if the supply chain gets disrupted, they're well positioned outside of china to benefit from that. but i really bought it, i read the note and the note is about higher rates, higher growth. that's not why you buy citi. it's about digital transformation it's why i own jpmorgan and goldman sachs. citigroup will have $500 million to $600 million in cost savings because of digital savings the cost of digital in q 1 were $1 billion the entire year 2018, they didn't reach that number there's a transformation on the digit aside. that's why i like hem. >> true it's digital selling and cheapest bank out there, but i don't think you change that. if i want too own a bank i would rather own jpmorgan. >> we will leave that there. your questions coming in on fied yu, luluemon you have time to reach out to us go to cnbc.com/halftime and tweet us $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95

the publisher in talks with kkr to go private and that is helping the dax higher. , andchrysler downyncratic as wells the overall story about germany and european car exports. there are cars being made by renault in france and fiat chrysler in italy. that is weighing on those stocks. those stocks are at an impasse. decisions be made late in the summer. renault down .7%. let's move to the u.s. markets. the s&p 500 is up .2%. the retailing index contributing is up .5%. the 10 year yield at 2.25% is bouncing around. demand for treasuries has been waxing and waning. todayrkish lira stronger by 1.9%. turkey is a story to keep an eye on as well. let's get more insight on the credit market as the yield on the 10 year and treasuries in general starts to wax and wane. jonathan ferro spoke with pimco's ceo manny roman and cei dan ivacsyn about their trading strategies. emmanuel: we will push hard to call the turn of the market. what you want to have is a framework where you take a value and given a scenario, what we you do, what are the things you want to buy and make sure we do what we say we

talks with kkr potentially happening about a going private. later this hour, we are speaking exclusively with martin franklin . his thoughts on the landscape for m&a deals, turnarounds, and of course, activist investing. always a great conversation with martin franklin. trade talks between the united states and europe have stumbled in the 10 months since president trump and european mission president junko juncker struck a truce aimed at clearing the way -- european commission president jean-claude juncker struck a truce aimed at clearing the way for negotiations. allocate. you farm out the trust that people are giving you. what kind of phone calls are you getting from your managers and clients these days? guest: certainly all focused on these geopolitical risks everyone is watching in the headlines. we've been encouraging the advisors and clients we work with to really focus on the fundamentals. while economic growth and the earnings backdrop certainly are decelerating, it is still moving along in a positive direction, so we are suggesting a

. >> and charlie, you like the nonindex names >> we like kkr and blackstone. blackstone is convert to go a corporate structure so everybody can buy them great businesses we love the alternative. >> finally on this what do you think the damage has been and where does it leave us as we go back >> as i mentioned the last time on the show i think we are going to see a recession, that it will be self-inflicted. if we see a recession it's not going because because of the china trade tensions it's something domestically. somebody mentioned here that portfolio companies are saying, you know what, we agree with the idea of going hard on china. watch for a lot more earnings guidance saying, you know what, the china situation is hurting our earnings this year as a way -- >> to be super conservative. guys, thank you all. great stuff. appreciate it. have a great weekend >>> here is what's still coming on "the exchange." >>> coming up -- oh, deere. the farm equipment company falling as the trade war hits its bottom line. is this a warning sign for investors? a lucky opening

kkr said their mutual and indetection fund ownership did rise by 64% but their hedge fund and brokeredler ownership. the move by less than 1% suggests perhaps the benefits aren't as big and long lasting as some might have hoped sara, what's your stock ruler? kellogg down a little more than 3% today the company reporting earnings very disappointing weaker profit in north america a surprise cfo change didn't get much encouragement to investors. also lowering expectations for the year bottom line, not much to get excited about in this food company. not much growth. really lower volumes, any growth at all due to pricing. millennials just don't want rice krispies and frosted makes cereal sales continue to decline. it's been a theme at the big food companies, especially those that are exposed domestically. here in the u.s. and those exposed to packaged foods like cereals and also frozen foods. up next on "closing bell" our reporters will tell you the key numbers to watch from cbs, expedia and activision those earnings coming up at the top of the hour. "closing bell" will be right back we've

axle springer, that is the best performer on the broader stock it is in talks with private equity firm kkr investment stock up 22% for the month of may. european stocks are down over 4%, almost 5%, slightly better than the s&p 500 for the month of may again, this tariff backdrop, these economic concerns still permeating across the nation figures out of the u.k. show april car production plunging 44% year-over-year that's the largest annual drop since 2009, some movement in the british pound today, but still trading at the worst levels of the year against the u.s. dollar let's also turn to the ipo market we have an ipo in europe, watches of switzerland, and it is up about 13% on its first day of trade in london after pricing at the highest end of its expected range this is europe's luxury watch retailer it has plans to further expand into the u.s private equity backers like apol apollo global management and unlike in the u.s. where we've had over 30 listings in 2019, keep in mind in europe there have been only ten ipos. two reasons there, one is the ongoing political uncertainty surrounding

alix: there were a lot of hitters, kkr, colgate-palmolive.. >> private equity firms were interested in different pieces. that you cane probably market some the pieces of this or take it public and the will be interest into specialist are's -- in the investors. alix: coming up, the health of the housing market, permit data on deck. what the numbers could say about the economy after numbers were iffy in april. this is bloomberg. ♪ alix: this is "bloomberg daybreak." i am alix steel. some markets it is a risk on day , other markets risk aversion during s&p futures still high up .3%. european autos weaker and continuing to grind lower during in the currency market, the risk on currencies are outperforming but you are still seeing a move into the bond markets in europe. here in the u.s., a little bit of selling on the margin but still very low yield on some spreads. housing data out just now. month by month coming in 5.7%. march was revised upwards by 1.7% fromt, up to -.3%. permits coming in higher than expected. up .6%. david: to reiterate, it i

. >> last mile over kkr.r of bytes and the our of streaming >> it is never comcast, right? >> last question, last mile 5g always comes to mind and what it looks like >> how about desk star >> you still need a lot of back quality and fiber in the ground for 5g it is not like it is traveling long distances it is getting from point a into your home which is not that long of a distance but nonetheless could compete with those >> it is building 50 locations as you say -- it is worth following. >> walmart, the worst performance dow component. are we going to talk about the impact of tariffs and consumer products >> absolutely. we have been moving away from china. it is still not over, we all have the same problem. i know that by 9:50 we'll hear from walmart some what on the background that we are ready so a lot of these guys say they are ready but who's going to eat it is it going to be you, me or china or the margins of walmart? >> 10% or 15% easy to imagine how it gets a portion. 25 is top not to pass. >> now "us

hold an ipo like this or provided it's set up the right way and i guess highlighted by the like of kkrckstone who have changed their own status recently, is it quite manageable >> that's a good question, wolf. if it's a partnership structure, a lot of index funds and other specific mutual funds would be precluded from owning it, but it would of course be open to any public market investment so long as you don't have some sort of charter that prohibits you from investing in a partnership structure if that is the route that soft bank chooses to list we've seen these types of permanent capital structures with some hedge funds in the past i'd be curious to know what structures soft bank is pursuing because 100 billion in assets is no small amount. dp pursuing the public market for listing a fund of course comes with its own challenges especially when you look at kind of a liquidity mismatch. >> we will leave the soft bank discussion there dee, thank you for joining us. leslie, while we've got you i wanted to move on and talk about carl icahn's fund reporting a loss of 5.8% in q1 what's beh