we want to think about what does kkr bring to the space.es brought, but what does kkr bring? the strategy we lost is something that builds on our core competencies. alix: the buzzwords are all out there and some are greenwashing and some are not and are different definitions of different things, so i would like an example of a company you invested in and what kind of return profile you can expect? elizabeth: i can talk all day on the terminology issue. i know we do not have all day. everyone who knows me knows i could. one thing that has gone the way of progress on esg's confusion around what are we talking about when we say those terms? for us, esg is thinking about how does the company operate and how do we partner with that company to improve that performance to enhance value? impact investing is about investing in companies whose core products or service is helping solve a challenge. we are using the u.n. sustainable develop goals as a framework for that. alix: give me some specific examples. elizabeth: one of the things we started doin

another kkr in london contracting coronavirus. italy has become the first country in the world to attempt a nationwide lockdown to try to stop the spread of the disease. here now is dani burger. a nation in lockdown. good morning. >> it's not even the nation. it's these corporate says well, seeing more people trying to contain this. deutsche bank and kkr are latest financial firms to contend with workers who have contracted coronavirus. deutsche bank will provide sales and training teams in frankfurt. it is sending personnel into recovery until march 27. some employees might also be asked to work from home. kkr said it is closing both its london office is to have them completely sanitized. staff are working from home until further notice as well. a representative from the firm said the individual was at home and recovering well. whether it is italy or firms located in financial hubs, the goal is to limit the potential outbreak spread through a disruption that could disrupt businesses or markets. other companies that have seen indi

kkr is more drastic so that the ill employee was in their london office.t down the london office. they say anyone who has come into contact with the employee needs to self quarantine for 14 days. everyone works from home until further notice, and they will sanitize their london offices. i would not be surprised if at we are speaking -- as we're speaking there is a cleanup crew at kkr right now. let's interrupt the conversation briefly because we have information coming through from japan. shinzo abe, the prime minister there, is putting together ¥430 billion fiscal support package, around 4.1 billion u.s. dollars. we are seeing reaction coming through from the japanese with regard to the virus. we are going to have to bring our conversation to a close, but thank you, dani burger, with how businesses and banks and the financial markets are coping with coronavirus. up next, we will bring you stock movers, including infrastructure company lance here. more on the market reaction next. this is bloomberg. ♪ matt: welcome back to the european open. right now 50 m

stephen: you got blackrock, kkr to move there. you have to go to them and say "move from where you are to hudson yards?" david: the appeal was -- corporations today survive by getting talent. they are in an obsolete place and they knew this is where their talent wanted to live. when we sold them, they saw what we were creating and we were very fortunate to get the top companies in each field in new york. it was not -- across industries and without building it and ,pening it, -- i love saying it we have the highest rents in new york today. david: you don't mean to say the highest rents. you mean the rents that are the most appropriate. let's suppose i want to buy an apartment in hudson yards. what would it cost to buy an apartment there? stephen: now is a good time to buy. i have a deal for you. stop the interview right now and take my deal. david: if somebody is watching "i want to be a successful real estate developer," what is the skill set? stephen: you have to have a passion for what you are doing. ♪ >> let's talk about your f

were advised by one of the leaders of the leverage buyout industry then and now, george roberts from kkrand so you had a lot of leverage. in those days, leverage was higher than it is today. so you had a lot of your net worth tied up there, and you also had a lot of your debt ahead of you. charles: i had all of my net worth and then some. david: so you decided to try to deleverage pretty quickly. the same year you bought it back, you decided to go public. charles: i did. david: that was pretty courageous. did anybody tell you that was not a good idea? charles: a lot of people. i said i needed to deleverage as quickly as i possibly could. and fortunately, we did. because shortly after going public, we had the crash of 1987. that was another complication. david: did that affect your business at all? charles: of course it did. our stock dropped from 15, the ipo price, down to 6. david: so your net worth went down a little bit. [laughter] charles: yeah, more than half. that did not bother me. because we still had the company, we still had the opportunity, and having been a student of stock m

david: you convinced a lot of famous companies, blackrock, kkr, among others, to move there.u have to say, move from where you are to hudson yards? stephen: i was involved in selling all of that. the appeal was corporations today survive by getting talent. they saw they were in an obsolete space. they knew this is where their talents wanted to live. when we sold them, they could see what we were creating and we were very fortunate to get the probably the top companies in each field in new york. it was not one industry. we did it across all industries. without building it and opening it, i love saying it, you get the highest rents in new york. today. it is the area that is most in demand. stephen: you don't mean to say the highest rents. you mean the rents that are most appropriate. stephen: for what we built, yes. david: let's suppose i want to buy an apartment in hudson yards. what would it cost to buy an apartment there? stephen: now is a good time to buy because the real estate market in new york is soft. david: any deals i could get? stephen: i have a deal for you, trust

and kkr at the top of pe median salary pay. joining us is bloomberg's sonali basak. do business from home? sonali: not everybody, for sure. you can't trade a big amounts from home. volatility is going wild. there's a lot that can go wrong. short answer is no, but let's see how people start to play into these contingency plans, and security. the traders can't trade from home, but just a couple of weeks ago, we were talking about the bulletproof windows at retail banks. like even those measures are not enough. people are rushing to do more and seeing how well they can bear this weather. alix: i'm having a hard getting a real read of what is happening in the credit market. sonali: as of right now, the window is pretty close. leverage loans are much trickier than typical debt. if that window was just open for a little bit, the leveraged loan market is really going to be impacted. so what does this mean? private equity sponsors will have to pay up a lot more for saw someey probably tension in the market through the end of last year, and this is really adding to it. alix:

financialexample, services sector, we love kkr, jll, cbre are great real estate services companies.orthern trust bank is a well-known institution that has been challenged lately with the stock price dropping the way it has been, but they have a terrific management team, great brand. continueddia stocks to be very cheap. you look at a company like cbs viacom. it seems to be so undervalued. content still matters, people are home watching television. cbs viacom owns so many great properties, has such great content from paramount to show time to the cbs network, nickelodeon. it makes a lot of sense for us. finally, in the health care space, we have some favorite vista.like in they are big in a dental marketplace. when people start going back to their dentist, inevitably, they will need to have work done a good they are one of the major providers of those products. greg: in an environment like this, the pencil does the homework. picks the right names. i'm curious as to the dramatic moves we have seen in the past month, from all-time highs, to being down more than 30%. we talk about panic

rebalancing strategic asset aallocation across different categories is the strategy >> i remember a kkrort last year that called for the end of the 60/40 portfolio because as global governments switched to fiscal policy, that would be inflationary and bonds would get hurt nobody saw this coming >> and neither did we. in some sense, with one of the things that we've done that has really benefited us is defined what each role is in a more pure sense and historically we've had a big tilt towards quote/unquote alpha or trying to outperform in investment grade fixed income. our view is the defining fixed income as downside protection and not seeking alpha or excessive returns or added risks in that strategy and as such, it's been working in the current environment. notwithstanding the fact that there's no way to avoid a 10, 15, close to 20% draw down in public equity markets. >> so in light of the entire conversation we're having, jon, how low can interest rates go and we talk about something like negative rates could mean based on case studies in other parts of the world could mean to the f

business in the book, her name is monica mandel he she was a managing director at goldman sachs and now at kkrig private equity firm. she did talk about one of the things she finds herself doing much of her time is encouraging young women and telling them it's okay, recognize your amazing. recognize you can do good work and don't let anyone stop you. >>. >> define genius from your perspective. [inaudible question] >> i think the point is that junior is Ãbgenius is a lot wider than we understood before. my point here is extra new woman doing extraordinary things. because we define as a geniuses always been just by who gets to say who is a genus. >> we will take a couple here. >> i bet there are and one of the things that are particularly delightful for me as when i was finishing the book and word of the book started getting out. i hope by using these women as examples we all start doing if the book inspires that feeling that's exactly what i hope it will do. >>. [applause] >> as the non-author i would only say what i found very interesting about this is that if you look in the book there's a lo

an employee at kkr in london also has been diagnosed with the coronavirus.s temporary both offices in the city to sanitize them. staff will work from home. that theee points out firm has had employees work from home in its manhattan office. will give firms more flex ability as it advises employees to work remotely. if they need more time to respond to inquiries, filing deadlines, or investigations, firms can also seek extensions. i'm viviana hurtado. that is your bloomberg business flash. alix: thanks so much. we turn to wall street beat. first up, searching for liquidity. investors having a hard time handling the record market moves as they face collapse of liquidity. and then robin hood's second outage. the free stock trading app went down again yesterday. and from record m&a to companies looking for new transaction credit, some are doing better than ever despite the coronavirus outbreak. joining me is salon a bostick -- is sonali basak. what are you hearing? sonali: the market makers didn't show up. bloomberg has cited issues in italian, portuguese, indon

kkr has pulled off one of the biggest deals since the market turmoil began.t has agreed to buy pennant group'a waste management arm -- pennant group's waste management arm for $4.9 billion. it is a sign that businesses are still willing to deploy capital unstable assets with printable cash loads. the pandemic taking a growing toll on u.k. fashion brands. burberry saying sales have fallen by as much as half since late january. about 40% of its stores worldwide are closed. we end with an offer reminiscent of detroit contributions in world war ii. tesla has joined general motors in offering to make hospital ventilators. this as auto factories closed by the coronavirus outbreak. there's expect to be a shortage of the devices. white house economic advisor larry kudlow saying g.m. ceo mary barra floated the idea that the automaker could pitch in. alix: thanks so much. incredible story there. staying on what companies are doing to help hardship such as the virus, netflix wants you to be able to have a movie night with your friends while social distancing is happenin

what are you talking about >> the name we talked about probably the most is kkr the stock went from 32o 17 during this last month and the fundamental business wasn't really hurt at all they have ten-year lock ups on most funds they get paid two and two, three quarters and 15 sometimes, but that business is going to be fine and yet the stock acted like it was going out of business. so blackstone went from 60 to 30 there are great businesses that we've been adding to because they're going to be fine on the other side >> well a growing list of companies are suspending capital programs like dividends and share buybacks as they try to preserve funds amid growing economic uncertainty added to that, nordstrom, intel and chevron. both suspending their buyback while nordstrom halted dividend and buybacks mike werth explained the company's decision to preserve the dividend >> our dividend is our number one priority it's very secure we haven't cut the dividend since 1934 and we've come into this with a position that's stronger really than just b about anybody in our sector and we intend to stay t

. >> we think kkr. it's 25% cheaper you're getting two and 20 for $5 progressive is going to continue to grow in this market trading at ten times earnings. some bank stocks there >> thank you both so much. great to see you now markets saw u a brief move off u the low's session after the fed announced a range in maturities but is that enough to support the market jack liu joins us. thank you so much for joining us my first question, a broad question, can a recession be avoided? >> i think we're taking this one day at a time and anyone who e predicts exact hi where this is going or how far is going beyond what we know clearly, we're heading in a dmeg direction in terms of the economy. when it was a problem in other countries, we were seeing simply chain interruptions. we're seeing businesses closing b and it's going to have a demand we knew the direction was a slowing economy. where it's going l we have to see how the health issues are resolve d. to get you ahead of that, we need to make sure we're doing

kkr is our favorite name and largest position private equity is an extraordinary business but it also takes -- they're in an opportunistic moment. they can take their excess cash and buy bargains and it will help the performance of their funds going forward. we really love the private equity companies we also think companies like lazard has a big restructuring business to go along with the traditional banking. we think they are both really well managed those are our two favorite financial services companies >> john, on media, i know you knew gannett well back in the day. iwonder we're going into the election cycle people were talking about election budgets going in with a head of steam. how much of it is unwound as companies look for ways to trim back >> well, we've been spending a lot of time with management teams of the various companies as recently as yesterday, talking to a couple ceos, they're saying the advertising is really still very strong when it comes to the political advertising. they're seeing some weakness in traditional advertising. and so they'll probably be lower esti

largest position is kkr.ink that private equity is an extraordinary place to be more and more are allocating they're in a position to take advantage of the bargains because there's so much cash. >> >> that's interesting that's waiting because prices have been so high. this is a time to deploy >> exactly this is something that's very helpful for them i also strongly believe that northern trust, the old gray lady of chicago, real anchor institution is selling at ten times earnings unprecedented cheapness for the brand and strength that northern trust represents. >> private equities have become repriced at a lower level. let me ask you about the strategy of passive investing and the environment we're in now. do you think the passive investing is contributing to an acceleration in the volatility and the leverage liquidation we're seeing do you see a return to more active management strategies >> i do believe that the passive management phenomenon is exacerbating what's happening in the markets and the etf markets