is kkr ready to get aggressive?e: we feel over the last 15 to 18 months that we've managed our risk in a prudent fashion. as a result, our capital basis with regards to the principal and agency side of our businesses are in very good shape and the opportunities we are seeing, senior down to junior opportunities are very interesting, so, yes. when you put that together we feel we are nimble and and and opportunistic position. sonali: how much of this is waiting for a fed pause waiting for stability in the rates? cade: it's probably some of that but also some's debate -- some sustained -- we know what the big factors are weighing on this marketplace. what we are trying to be thoughtful around is what is it we are not seeing? what is around the corner? the banking crisis and all that ensued after that -- i'd don't think we saw that coming and it's causing further uncertainty . it hit the pause with what i referred to earlier with pipeline activity and that kind of backdrop is going to leave us in the position we are in

exchange setting the agenda today, huge lineup the ceos of bank of new york mellon, brookfield management, kkr and mondoles talking about the takeover of first republic bank, the state of commercial rae, the consumer and a whole lot more >> it's going to be big. >>> as earnings season continues, our next guest is forecasting a drop with the year-end s&p target 4k and also says bulls -- she asks if bulls are becoming an endangered species with sell side indicating that equity allocations have hit a six-year low. joining us, savida great to have you back. >> great to be here, carl. thanks >> how you've been processing earnings season, the notion there is earnings momentum we know there's some natural suppress ants that could come during the summer in the form of the debt ceiling, but what is the most constructive you can be at this given moment >> yeah. you know, i think that what's interesting is when you think about what we're all talking about and focused on is all of the bad stuff. it's the idea that inflation hasn't been contained and the fed might be forced to continue to hike. it's the fa

guy: would you rule out working with kkr?signed an agreement with them, we value their presence to be part of the team so we don't -- but at present we are with mcquarrie prevent -- working on our offer. alix: for those who do not know, the italian government owns about 10% of the carrier ti and a hold of the golden power, they can veto any possible offer. have you talked to the italian government? dario: clearly it's their prerogative to work on this aspect. we do not deal with this aspect. alix: you have not talked to giorgia meloni? dario: we enjoy wide autonomy when deciding on these issues. guy: how are you thinking about italy and how you will invest in the strategic priorities? those that represent those strategic priorities. if you do not end up getting ti's business, where else do you shift your attention? where are you focusing your attention right now? dario: we decide to remain establishing orders for assets. we own the majority of the national transmission grid. the system for the gas, there we are long-term stra

kkr shares fell 4.3% following the announcement. citigroup's u.s.jumped after bloomberg reported the company will give employees a 5% raise. a staff memo says the bump comes with the cash balance increasing. it signals prospects for the e-commerce and gaming firm that last year had to cut 10% of its workforce. shery: take a look at how u.s. futures are trading. we had a mixed picture in the regular session, s&p 500 staying afloat but the dow under pressure. we seen that continue in the after hours session after the federal reserve said the credit market was tightening. business and demand was weakening. that has stocks fluctuating between gains and losses. with a 10 year yield at the 350 level and crewed prices in the asian session really under pressure. and reversing those gains that we saw in the new york session. and of course we have been following emerging markets. trading has been volatile. the shifts in the political landscape are really not helping, putting investors on edge. with a slew of upcoming elections adding pressure. let's bring in

that moves to kkr in terms of the response. boohoo coming in with them to upgrade optimistic after struggles with supply chains and inflation for the fast fashion retailer. a stock rallying 11%. they upgrade their guidance in terms of what they expect the rest of the year and improvements they are seeing coming through from cost-cutting at boohoo. they are starting to see deflation in the supply chains as well. optimism coming through for that stock that has been under pressure. coming up atlanta fed president raphael bostic says he will hold off from raising interest rates again. more from our exclusive interview next. this is bloomberg. ♪ raphael: in today's environment where there is so much uncertainty in the economy, we can't rule out anything. if i had to vote now, i would probably vote to hold. but as you noted, we have two more inflation readings we have a jobs number report that has to come out. there is a lot more information that we're going to have as to what is going on. >> we hit the federal reserve probably have

matt: we got disappointing earnings from kkr yesterday.ow is this earnings season going to shake out for private equity, most of which we don't see in public markets? sonali: if you look at the stocks so far this year, you have blackstone heavily weighted toward real estate and there are worries about private valuations under the surface, particularly at mna markets. we had a conversation earlier over at goldman sachs and they see green shoots particular this week when you see best and great come back at scale. there is a problem with the debt ceiling debate and some of that activity can be pushed along further into later this year. without exit opportunities, you will see some depressed marks when you look at the private equity universe because that's a huge avenue in which you are not able to exit opportunities and that puts pressure on pricing. jon: let's shift from wall street to columbus, ohio. it's starting to look different. you were talking about palantir's big ai push and when these has its own ai push. katie: it feels like every

quietly become one of the most successful credit-focused firms on wall street, beating its peers like kkr and plaquestone rallying 20% in the past year. 286% in the past five years. joining us now in an exclusive interview is aris management corporation, cofounder, ceo, and president, mike arengeti so the explosion of private credit you see a big opportunity here why? >> absolutely. >> if you think about generally what the economy needs, it's reliable liquidity somebody needs to come in and fig that void. but at the end of the day, it's what does the investor want or need and what they need is reliable yield. what people probably don't appreciate most about private credit, it's a floating rate have instrument. for the last 16 months, it's been meaningful outperforming while most traditional fixed income instruments are not doing what they're supposed to be doing for the investor >> we hear this from kkr, from blackstone, from tcw everyone's in the private credit game now how do you distinguish yourself? or is it just there's so much demand >> it's a huge addressable market there's more eq

it's a breakneck pace of restructuring that include vice media as well as kkr backed envision healthare. the first thing to break was regional banks and now we are starting to see a string of bankruptcies. maybe this is central bank policy having an effect. jon: and also, it has to do with a particular industry but when one player has challenges in going through the process, it opens the door for others to go. this is a range of different companies but you are right, the reality of where we are and where rates are for many companies dealing with challenges, maybe not a surprise to see a number of companies racing to get their situation under control and going through the bankruptcy process. matt: we will continue to watch bankruptcies. it could be a new turn that we start to throw around as we cover rising rates in if we have a debt ceiling issue, we can expect that number to increase drastically. we will discuss the state of the economy through the lens of one canadian company. we are joined by a heavy equipment company and they are getting into the salvage business as well. this is

haslinda: kkr earnings fell 26% in the first quarter.fell 4.3% following the announcement. pilot error shares gained as is says that expects to be profitable every quarter this year. it describes demand for its new ai products as without precedence. rishaad: let's have a look at markets. we have brokers driving things to the upside. we also have the financial index up 1.7%. it is a speculative frenzy. state run lenders hoping to give traders momentum in the market. we are looking at developers as well which are moving to the upside. regulators ordering them to put out the commission they charge. that is a look at the markets. the hang seng down marginally. bloomberg daybreak middle east is next.

kkr have lost their last three at home too.ll you that it's the last day of the english championship season going on right now. coventry and sunderland claiming the last two playoff spots as it stands. follow it all on the bbc sport website and app. the prince and princess of wales are among thousands of people across the uk taking part in volunteering events to mark the final day of coronation celebrations. william and kate visited volunteers and lent a hand in slough as part of today's big help 0ut. people are being encouraged to take part, to build what is being called a "lasting volunteering legacy of the king's crowning". the british prime minister rishi sunak has also taken part. he visited a youth group in hertfordshire alongside his wife akshata murty and he's been helping out with food preparations. meanwhile, the duke and duchess of edinburgh have taken part in a puppy class at the guide dogs for the blind association training centre in reading. 0ur north of england correspondent fiona trott, who's in durham, has more

sonali: we were joking before this you have kkr here.nt and of the other hand they are a huge competitor. but the financing markets from the private side is very significant. deals are getting bigger. one of the largest deals on record in the market. how hard is it to compete? christina: they are both great options. we look at it. we have a residence inside large private credit business. for us we like to show our clients we look at the direct credit deal. we think of them as options. they do compete and there's a good example recently of the transaction with the direct market stepped in to a commitment for a client november of last year. and the last couple of weeks it was refinanced saving the issuer over 320 basis points. that's a good dynamic for our clients. they have two sources of capital to compete and they can find sources that are the most effectively supported. we are pretty excited about both markets. at goldman because we have the direct credit lending business it's a good thing. sonali: the increased competition keeping cos

earnings plunged 26% at kkr. the dealmaking drought continues to weigh on the asset manager.ets under management group 600% to $510 million. they fell 9% over the past 12 months as they firm -- the firm -- and that is your business flash. alix: we want to get to your start up, we cover the tech stories. joining us is ed ludlow. apple is going into the market, issuing a lot of debt. i wonder is it pre-cpi, getting in before it is too late? ed: it is interesting timing, we have cpi and ppi on wednesday and thursday, 15 issuers in the market this monday. it indicates $5 billion and up to five parts, the longer duration part of the deal, 30 euro -- 30 year bond and 30 basis points over treasuries. in the context of apple, you look at the massive -- last august they sold 5.5 billion dollars of debt. share buybacks and dividends. if you think of the strategy going forward, the shareholder returns, strategy is in line with that. dani: what is it? is it that we are confident we will have cash flow? ed: they have a net cash neutral goal long-term. common expectation is that shareholde

kkr's cohead of private credit joining sonali bassett. sonali: thank you so much.e are on a day where the regional banking system is facing another wave of concerns. from your perch i know a lot of rivals and you are looking at the holes this may cause in the economy and the credit markets. what are you most concerned about when you look at how regional banks are faring? daniel: obviously a tough day for the regional banks. people were hoping yesterday's news of first republic would've put a stop to that. you have to remember there's been no credit issues in the banks yet. that credit is an overhang. looking at a recession. the second half of the year, how severe will it be. what risk exists on the sort of bank balance sheets. you have the further overhang of will there be an increase of regulation. will they make acceptable returns for their investors. i think the broad thing people are worried about, will that resolve in credit contraction. it's bad for the overall economy and presents an opportunity for folks in our shoes. >> first we've been going through this

people do not realize that goldman sachs, the private assets within the firm are almost the size of kkrprivate asset manager itself. is there that much demand and i'm asking is someone who is a liquid credit manager and a private credit manager? julian: there is tremendous interest and demand. i think it is a great diversifier for the portfolio. although one might think the fact that the rates return in the public markets are higher and therefore it might reduce the interest, what it has meant is nominal rates return on private credit are getting up to a point where people are willing -- increasingly interested in making part of their strategic asset allocation. more demand for private credit from a full range of investors, insurers, endowments, and also high net worth individuals and retail channels as well. sonali: when there is that much demand you can start to worry about when things are getting frothy. julian: that is always something to watch over time. it still feels like we are very early in that cycle. right now that is displacing, taking up the baton because the banks are will

of kkr and the ceo of mond on. >> a good list of guests coming up for our ceo sa areisen.s. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. >>> good monday morning. i'm sara eisen live at the milken conference in beverly hills, california, along with carl quintanilla at the new york stock exchange setting the agenda today, huge lineup the ceos of bank of new york mellon, brookfield

we have joe bay on from kkr, that's the biggest source of growth apollo, that's the source of growthy on the earnings call at black stone said it was a golden moment for private credit. can there be a bubble in this market what's the danger that everyone is getting in and growing so much so fast on this lending >> well, those are wonderful firms. i agree with their favorable view of direct lending that's why we built a business that is all about direct lending. blue owl was built from the bottom up to deliver those solutions. which is why we've become a market leader in the space in terms it of the risk, look, at the end of the day, it's a multitrillion dollar capital market, credit market. we and all the other direct lenders are a small part of it but what's happening is we're delivering a solution that works for the users of the capital and the investors. i actually think what we found is this step function up, this role that private markets can play that is stabilizing for the economy and delivers great results for investors. it's a very appealing time i think the outlook is very

mood where you talk to some of the biggest and best investors in the world and ceos of companies like kkrequity, hedge funds here, and there's a con seven tus that we're going into a rocky period whether it's the stickier inflation, whether it's the uncertainty over what the fed will do and whether it's the fact that stocks have remained remarkably resilient and are not pricing in some of these big risks according to investors i would note today it's not just the move in regional banks a move higher in gold and a move higher in the vix, the volatility index, which has been complacent something to watch as fears creep in on a day like today it does reflect some of the conversations i've been having here >> vix back to 19. a one-week high. 8 to 1 down volume you do have all s&p sectors in the red. kre, as we mentioned earlier, down 7%. ten-year, sara, down to 3.43 take you back to probably april 28th and oil as well five-week lowery after bp's quarter is sort of implying some sort of downward shift in global activity >> weaker economic data, right weaker economic data by treasury what a set

first-quarter earnings plunged to 6% at kkr. assets under management grew 6% to $510 billion. kkr's portfolio fell 9% as a firm -- the firm marked down the value of investments. six flags reported first-quarter revenue that beat estimates. attendance was 1.6 million. that was down almost 6% for the previous year. still, better-than-expected. global news powered by more than 2700 journalists and analysts in over 120 countries. i'm lisa mateo. this is bloomberg. ♪ >> the truth of the matter is that if those banks, the regional banks and midsized banks and community banks are not financing commercial real estate transactions, they won't get financed. the role of these banks in the u.s. economy is so high that people actually underestimate what these banks mean for our financial ecosystem. tom: the former chair of the fbi see, i can't say enough about how she has experienced what so many are going through. her father was wiped out in yugoslavia during a banking crisis. she wandered over to america, excelled at berkeley and has moved