ani'm very happy to report that last year we were sold to kkr, and kkr has spun us off and made us trulyndependent company again. and one of the biggest independent companies, in fact, the biggest independent publisher of adult and children's books in the usa. and we hope to two to grow even further and become even better than we already are. how many titles are you planning to publish this year, your centennialit's about 1200. i haven't i haven' and that number is a little bit ambiguous because sometimes we first of all, we publish all over the world. so we're publishing in the united kingdom original books and in canada and india and australia, in addition to those in the usa and also sometimes we'll do two editions of a book. so a children's book might be a board book and also a hardcover. so that's why the number is an many books will you sell in a year. about? well, i know that we sell about you know about $1,000,000,000 woks, but i actually don't know how many units that translates to. mr. karp if somebody picks up a macmillan book or a scribner book or an atria book, those are all

you hear kkr's propensity to lean into triple c's.uestion is, do you buy the spreads you are seeing now? ken: spreads are clearly tight. it is hard to say go out and buy the entire market. i think you need to be very selective. chris is an old friend. i have known him a long time. i agree there is credit risk in the marketplace. i don't, however, see a likelihood of increased default in the next 9 to 12 months. sonali: you may this point earlier about how you're not really getting much bang for your buck over treasuries, so why go into credit risk at this point in time? oksana: that is my question. b's, the highest quality of junk, have a 6 handle on -- our base case is the economy will continue to do fine, will continue to do ok. these rates obviously are not super restrictive. however, if we continue to see growth, the higher for longer environment, which will make it more difficult to refinance -- that 12.6% rate hertz financing. that was not the case even three years ago that will continue to fight. furthermore, if strength someho

with this conversation with kkr about things weakening in certain parts of the economy. how do you think things are headed from here, especially given the recalibration of where investors think interest rates are going? >> by the way, great to see you. always great to catch up. look, there's been a lot of questions about portfolio performance, a lot of issues around, ok, what is the impact on hire for longer, how are these companies handling it? i was to overall the answer is, quite well. if you look at our portfolio, for example, today we have $22 billion portfolio. we have incredibly small percentage, less than 1% overall, having issues. i think for the better managers, i think you're seeing quality hold up quite well. i think it is leading to a dispersion among managers, margins, chasing higher yields. they really were not sticking to focus and quality and starting to see issues in their portfolio. if you look at recent research coming out, the widest dispersant along time, and managers that have 9% or 10% of their portfolios in high quality managers with no percentag

might be interesting to see whether it looks back higher and go daddy, crowdstrike and kkr, the newsstocks are being rebalanced into the s&p 500 on june 24. they are higher because it means index managers needs to -- need to buy the stocks. katie: a lot of technical forces at work in the markets today. coming up, new york governor kathy hochul has decided to halt congestion pricing. we will be joined by sam schwartz to discuss the potential fallout. this is bloomberg. ♪ >> mrs. bloomberg markets. i am abigail doolittle. mcgough, an exclusive interview with steve wozniak. that is at 3:00 p.m.. this is bloomberg. ♪ katie: it's time for our daily wall street week conversation. we are looking at kathy hochul's halt of congestion pricing. joining us is sam schwartz and david westin. it's a hot topic. >> everyone is talking about this. sam, you have lived this longer than anybody else. give us the history. this isn't the first attempt at this. it seems like it has been going on for some time. how much money is involved? sam: a lot of money is involved. you are right. it's been going on sin

ashley: we will see, moving on, crowdstrike, go daddy and kkr are joining the s&p, the question becomesrowdstrike up 8% when does that happen before the open on june 24, the cybersecurity crowdstrike replaces company america go daddy, there replacing illumina and kkr is replacing robert half this means when you're in the s&p 500 many investment funds track it, they track you to. >> absolutely, microsoft unveiled the xbox console, explaining how does it work, the council will not have a disk drive you cannot put again physically into the consul it'll be available later this year in time for the holidays and cost $450 that would be cheaper than the regular high end consul, there are reports that microsoft knows that this is a little bit of a gamble and are going to offer an attachment that you could buy at a later date. >> it's kind of like music you don't need to put a cd it's all digital. sometimes it's just easier. we are old-school and very old-school, southwest getting into the airlines what is southwest doing today, there up 7%. >> the wall street journal is reporting that elliott c

. >> three new companies joining kkr, private equity firm, crowd strike, and go daddy. the changes are effective monday, june 24. it coincides with a quarterly balance and you see shares are moving here in after hours. >> kkr, crowd strike, go daddy. thanks very much. appreciate it. >>> it was painful for game stop shares. shares of the video game retailer tumbling nearly 40%. you heard me right. after posting an early earnings report and they weren't good. sales fell far more than expected and also announced stock sale plan. that news came before roaring kitty aka keith gill made youtube return with a live stream this afternoon. in the web cast, it draw more than 600,000 viewers. there he is. it claimed he didn't have institutional backers supporting his stake in game stop and he still believes the stock is a turn around story. to help us break this down, let's bring in greg zucker man, a special writer for "wall street journal." what did you make of roaring kitty today? >> he is our new warren buffet. >> say that again. >> he is the new generation's warren buffet it s

before blackstone and kkr. real estate, private credit and vc. different views on commercial real estate. what are your thoughts? has the bottom occurred? ben: i think the bottom occurred around december of last year. we have seen that strongly across our portfolio. we have 20,000 departments. around february of this year, we saw demand come back. way stronger than anyone expected. the surprise was because rates were so high, it drove demand into renting. there was a fear last year there would be a huge oversupply of apartments. it turned out to be misplaced because the demand was more than enough to meet supply. abigail: that is a confident view given that some investors -- join bloomberg television to talk about office values potentially going lower than $.10 on the dollar in new york city. would that spread out? if that goes under what that tie up funding, allocations for institutional investors? what are the repercussions of that? ben: that is totally right. we are talking about a $3 trillion asset class. i think you will see a $1 trillion-$2

partner celebrating pride month this year. >> at kkr we invest in companies which is really investingen this at work in so many parts of my life. the story of pride is also the story of america. we're proud of who we are, who we love and how together we can expand life, liberty and the pursuit of happiness. [thunder rumbles] ♪ ♪ ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ [thunder rumbles] ♪ ♪ >>> welcome back. time for today's three-stock lunch. all hour we've been discussing what to do with some of the big winners in your portfolio. nice question to ask. here with our trades is david bonson, chief investment officer at the bonson group. what would you do with nvidia up 160% this year. >> we would sell it because it's overvalued. nothing do with the fact that we don't think it's a huge company that will be a major player in ai for years to come, but when you're trading at 60 times forward earnings, that's already priced in and the cisco of 1999 narrative i

so you've got the kkr up 12%, crowdstrike up 9.5% godaddy up 2 %. day you just heard charles talking about a.i. chip king nvidia, today is the day its 10- for-one stock split takes effect, rallying out of a shallow hole at the open and is up just half a percent. it's 30% by the way above its 50 -day moving average and while nvidia has liberally used the term "artificial intelligence" tim cook waited until almost the end of the keynote to pair the words intelligence and artificial intelligence. announcing apple intelligence along with a myriad of new developments some of them positively futureistic, but will they make a dent in the revenue? joining me now at a fox business exclusive, apple app stores founding director and now the executive director of identity.com phillip shumaker and cfra research angelo zeno. we know the initial stock reaction. okay, usually, in these big days where apple has events the stock goes down a little bit upon the news. we need to wait on the consumer reaction, but you're the analyst let's get the analyst reaction. >> yea

they come from boilers, not exactly a sexy industry, but they were involved in a deal alongside kkr. the family behind lego was also involved in a big deal. so it is kind of happening all over the world involving some of the biggest ee names, involving fortune bonds on both sides of the atlantic, and we are seeing a variety. sonali: we have to leave it there. thank you so much for your time. i love some of the reactions we are getting to the story as well. for example on the platform x -- "all for earning a few percentage points below their beta going forward, but feeling so much more clever than the average joe in an index fund." the private versus public debate keeps going. also watching shares of gamestop. keith gill, a.k.a. roaring kitty, speaking now in a youtube livestream. he started late, but since he started, the stock of gamestop has been halted, down more than 33% on the day. more than 600,000 people are watching this livestream at the moment. of course, a lot of questions about that potential share sale, plan to share sale from gamestop. for today, roaring kitty goes on,

he's chief investment officer at balance sheet at kkr.or having me. >> let's talk about this. you say opportunity knocks. what is different than six months ago when you put out the glass half full? >> i think there's probably going to be more election uncertainty and political uncertainty as we head into the second half of the year, so our point was don't complain about the noise if opportunity is knocking. when we look around the world right now, our businesses is actually picking up and our infrastructure business continues to be strong. what is different that we are seeing now, there's a lot of activity around the world where companies want to shed unprofitable subsidiaries. and look in the public markets, and we focus mostly in the private, and energy is still interesting to us. i think within credit, there's a huge wave of refinanceings. when you look at what is happening on the supply side, there's not a lot of credit creation. i was recently in europe, and you see this in the u.s., about 40% of the debt issuance is refinancing. it'

. >> reporter: for example, she said today that kkr, blackrock and rockefeller foundation and othersad committed $25 billion in the region for infrastructure. $23 billion of projects have been identified at the investor forum which she led 22 american companies. i also asked her about trade with china, specifically president biden's steep tariffs that he slapped on china for the alleged overcapacity. she did not rule out further action. this is what she said. >> so, we just kind of have to evaluate the challenges as they arise. >> you are not ruling out anything? >> i don't think we rule anything out nor am i announcing that we're planning anything. we have to stay vig ilvigilant. >> reporter: frank, she leaves singapore today. >> leaving singapore today. you mentioned a number of u.s. companies. one company i have to ask about today is nvidia. did she talk about nvidia and at all a.i. chips? >> reporter: she did because i was asking her about other possible measures that the biden administration could take potentially with tighter export controls on nvidia. again, she said there are

a ton of -- it's harder -- hard to fault kkr. >> we did get the 30-year fixed down to 6.93%.t's three weeks down. >> i don't care. i need supply, not -- i do not need lower mortgage rates. i need supply. what should happen is we should get to a point where you build a marginal house and then suddenly, you realize, i don't care. i got to sell my house. the price is too great. that hasn't happened. that defies what, i'm sure, jay powell was sitting there saying, we'll have a tipping point. we always have had a tipping point. this is the cycle that has not been like any other housing cycle. >> yeah, yeah. >> it's just not. it's confounded the fed. >> yeah. you mentioned general mills. we did get an upgrade of campbell today out of jpmorgan. they go to overweight. >> when i spoke to mark clouse, and he's a terrific ceo, by the way, and huge eagle fan. he had the jason kelce stew, which, very good. i didn't want to open it because i liked the can so much, but then i was in a jam because my wife wasn't around. man, that stuff was great. here's the stuff with campbell's. this rao's

kkr. why is it the right time to buy? >> they call it alts.re finding ways to get in front of the mom and pop clients. that marketplace is huge and growing. the expectation of the growth in private credit and other opportunities out there. managers are able to bring something in. >> that will do it for "worldwide exchange." "squawk box" will do it right now. >>> good morning. the s&p 500 and nasdaq both closed at new highs and indicated they will continue that this morning if they open where the futures are right now. the dow broke a four-day losing streak. today, we get retail sales data later this morning. >>> boeing's outgoing ceo dave calhoun will be in the hot seat on capitol hill to address safety and the manufacturing process. >>> and apple cutting its buy now pay later program and instead allow third parties to offer installment loans through its apple pay platform. it's tuesday, june 18th, 2024. it's tuesday, but i believe tomorrow's a holiday. >> it is. >> juneteenth. "squawk box" begins right now. >>> good morning, everybody. welcom

they say go daddy and kkr are join the s&p 500 on june 25th.res down half a percent but off their lows of earlier today. here is what we are watching in the week ahead. oracle and cpi and ppi the fed's latest policy decision followed by j. powell's press conference a big one, of course. we have tesla's annual shareholder meeting and the conclusion of the shareholder vote on e molon musk and pay package. president biden and other world leads gather in fitaly for the 7 summit so a busy week ahead. a look at futures. been in the red all morning long. still in the red. looks like the dow would open 140 points lower. for much more on the trading day ahead, keith lerner. good to see you. >> good morning, frank. a busy monday already. >> it is! how do you see today shaping up? what is your word of the day? >> yields. all about yields short-term. we saw a popping yield on friday after the preliminary report and high yields which are a little bit up today but were about ten points on friday driving the relationship between the u.s. international because

less than a week after controlling sherry redstone terminated the talk with skydance and red bird and kkrtoday they're down over 4% over the very long period of time. >> coming up, broadcom, the latest to announce a stock split joining the likes of nvidia and chipotle. shares are up 25% since then, our trader isn't entirely convinced. the name he is splitting with next. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. >>> welcome back. stocks blitz are certainly back. we're trading some of the biggest ones so far in today's three buys and a bail. our trader is jeff kilburg, founder and ceo at kkm financial and a cnbc kricontributor. thanks, jeff. appreciate it. broadcom is up. semis up 20% since the announcement. do you think the momentum continues

and put and lennar has more in term of the monetization in terms of the other non-building assets and kkr are buying apartment buildings which we have to get the detail on and that's the kind of thing that would convert and that's not net income and into buybacks and it does have a good roe which we like. >> good to speak with you. thank you. >> ken zeener of sea port. how do we feel about this trade saying that diana olick was saying just today that 7%. even if we get below seven, even a hair below seven it triggers more interest. >> as much as it's somewhat counterintuitive and it can do well with the stocks have done very well. if you think that the unemployment rate will tick up in a meaningful way, now is the time to get out of this. i don't think it has as much to do with rates as it does in the job market. >> i do think we have a dynamic where in much of the way different segments of the market have behaved differently in this fed cycle. it doesn't mean that homebuilders can't also have been one of these groups that should have traded off when they didn't -- when they traded higher

we had them on the show last week, along with kkr and godaddy, the website builder and digital marketingmg. that's why all three jumped like they did because everybody knows the index funds will be forced to buy them when the change becomes official two weeks from now. you know what, something different, i want to twist things around. i'm going to focus on the three stocks that got cut from the s&p 500. comerica, a diagnostics company and robert half. i'm wondering what happens to these companies aside from the initial wave. any hope for them? are they doomed? the answer is nothing good happens. not just by the seat of the pants but recent expulsions of the s&p 500. the last two stocks were vf corp, the troubled apparel play and dense play serona that happened in april. both have continued to go lower since the initial announcement. meanwhile the index got kicked out of rallied more than 2% over the same period. vf's decline was worse than that for most of april before it started showing signs of life. the company reported yet another very bad quarter on may 22nd and the stock fell to a

the upgrade comes after its first sale of its fixed line network to kkr was approved by the eu's antitrustrity the sail, which could be worth up to 22 billion euros, offers a key part of italia's debt restructuring strategy and shift to a retail focus. >>> now also i want to show you how we're trading in terms of european outdoor shares uncertain interesting sector in the wake of the eu's announcement of new tariffs on chinese evs. as you can see on your screen, we are seeing quite a lot of downside momentum for some of the european alto names. just to highlight volkswagen, down by almost 3% and stellantis down to 2.7% and bmw also down by about 2%, and then compare that, compare that picture with the chinese ev-makers. we are seeing shares, for instance, in byd they were up by more than 4% er in up by almost 2% and same for alto it goes to show at this stage the chinese ev names are to some extent really not paying too much attention to this announcement from the european commission however, investors seem to be concerned about the impact of this policy on european names, and we have hear

he has backing from redbird and kkr. i would just say this is in flux.dlines. obviously this is an arb play. when you see that, the arb is, people -- liz: arbitragers. >> that is m&a arbitrage. as you see the headline your algorithm kicks in and starts selling. the only thing definitive, in the minutes before the journal came out, my guy who is pretty good, we've been on the money on this whole story, said, we believe we're inching closer and, but don't write anything definitive because this thing could blow up. you know shari redstone, i don't want to say peculiar, but this is a very bizarre. liz: hard to let go of something that has been sew very much a part of your genetic material. >> your father created the company. it is melting ice. liz: gets to go to the sun valley event. >> meanwhile her fortune is evaporating before our eyes. if they don't do a deal, watch the stock go into the digits at that point, single digits. liz: like warner brothers/discovery? >> yeah. why wouldn't it? by the way in many ways it is more financially troubled company than

. >> kkr, strike and godaddy. >> good stuff. we will see you on "closing bell." i can't wait as the developer's conference is rnd way. "the exchange" is now. >>> thank you very much, scott. welcome to "the exchange." i'm kelly evans with a very big hour ahead. apple's worldwide developer conference officially getting under way. before we get out to that, let's get a quick check on the markets as we count down to the fed's big event this week and they're largely in wait and see mode. for the most part edging higher on the s&p and new highs for the tech sector in general and the dow is down 43 points. the ten-year yield moving higher and more hawkish talk out of the ecb, of course, and the rate hike and still the efforts to explain what they'll do next and they're 4.46 on the trend and bucking the trend is apple and right now it is under pressure and down 2/3 of a percent and they're off session lows and we have full team coverage of wwdc this hour. steve cove sackovac is live in o and ed lee says apple needs it show him the money and we'll see if anything apple an

well, they added kkr. >> you seen the co-dadly chart?go daddy. look at that. >> small business, we didn't mention nfiv, jim, highest independent business survey reading of the year. more firms looking to increase capx, expecting a better economy, seeing easier credit conditions. >> when you tweeted that, i said to myself, you're the fed, and you've just got to be like, wow, we've got to be -- we have to be longer forever, not longer for for long, but long, long, long. like long may she run long, like neil young long. >> affirm is up, about 6% on the am news. let's tell you what the news was. affirm payment products expected to be available to apple pay users in the u.s. that would be later this year. so you will be able to check out online or in app with apple pay on your iphone and ipad and apply pay over time. that's helping affirm shares. they did say, though, they don't expect the partnership to have a material impact on revenue or gross merchandise volume in fiscal year '25. >> where is goldman on the card with apple? >> on the cred

you're right, ellison is obviously stepping up for a lot of the capital commitment as is red bird, kkrarry is going out the data center as quickly as the other guys, as the hyper scale -- he is hyper scaling. do they need a lot of data -- is this just something that you would want to have if you're going to be in that business? >> i think so. i mean, you are talking about creative content, driven business that would -- you know, obviously ai is going to be an important part of and change the media business and so you're going to be at the forefront of that. you would be one of the few or first sort of leaders of one of these companies in his 40s not an older guy. >> and increasingly what we're seeing -- first william shire's voice, a new series about hitler and world war ii, it's just ai -- i have to listen to books on tape -- >> "rise and fall of the third l reich." >> excuse me ignorance because i have not watched the production but the narrator is -- >> ai created. >> i mean, the narrator. i mean, william -- he died years ago. what a distinctive voice he had, just incredible. i thin

kkr, i think there's not enough float to handle without a big move, and godaddy is a conundrum.k box to it, but i think godaddy is a company that's not that well understood on wall street. and i'm being polite. >> replacing robert half, comerica, and illuimina. >> i'm eager to find out why that thing keeps going down. illumina is a change of pace. comerica is the worst regional, is my feeling, and that's a shame. it's a growth area, and comerica is a once-great company, and i would like to think they could be great again >> we did get an initiation of axp, to citi, neutral, great model, but the bar is high. >> i thought that piece was gratuitous. i think that we have a terrific ceo in squeri, and that was a piece that basically said, squeri can't do it. and i think squeri can. i continue to believe that that stock goes higher. >> meanwhile, as we watch consumer, jim, i know you saw this upgrade of walmart out of jpmorgan. >> makes a ton of sense. when you roll back the prices on 7,000 different goods, that's the place i want to shop. i think that one of the things they never tal

. >> ellison -- skydance is controlled by ellison and redbird and kkr is a smaller investor there. put it into the new company. they get high four billions in new stock. that's why you end up with, when this is all said and done, and by the way, we don't know how long the regulatory will come. we don't even have a deal announcement yet, let me make it clear. you're going to have roughly 60% of the equity controlled by ellison, skydance, redbird, and roughly a third owned by shareholders who they hope will be signing on to what they believe is an opportunity to get the stock from current price into the high 30s or $40 based on their plan, a lot more of which we have to hear about. jim, i do want to come back to a couple of things on the activism front. we talked about penn gaming on friday, that activist who got in the shares. and they basically said, sell the company. i'm definitely hearing that there's some stuff around. we'll see if anybody actually comes to the fore with a bid. you know, could there be interest from a boyd? could there be interest from some other names that are

dani: as you're talking about these different lifeboats, i am reminded of a conversation i had with kkrince 1995, there are 40% less. is there some degree whether or less lifeboats because there are less companies and some of the really good companies are public anymore? mike: because of the ai narrative, we have seen people perceive certain boats as lifeboats when in fact they have holes in them. that is a mistake. i think there's been a rising tide in many cases that is taking a lot of stocks up incorrectly. those are the names were talking to clients about now. there the ai winners in the ai pretenders. there are many companies that mention ai and the stock goes up to. those are the things you need to be worried about them buying that you ai winners and saying this has a business plan or the particular beneficiary. we are more interested in the doctors -- now it is about who will take advantage of this technology to make a better mousetrap, better business while tuan -- to win competitive balance. lisa: you want to tell us any of those names? mike: we publish this every week. lisa: m

kkr buying into apartment real estate this morning.lly the apartment-based residential real estate sector actually nosing ahead of home builder. more existing supply. rates are troubled for affordability on the new home side and actually you see excess supply of apartments and rental deflation. maybe abating on a forward-looking basis. interesting dynamic. watchlications for inflation reading. >> hope the market was broadening. >> yeah. >> overall markets didn't fall much when nvidia fell out of bed, but yesterday when we reversed, like the old playbook came right back. you know? weakness in the banks. weakness in all other sectors that did not show any leadership. >> as if it's a seesaw and s&p 500, not moving as much. everything going each way around it. at least for now. again, that did happen back in the spring. a lot of people saying, finally the broadening of the rally is here. it was for a period of time and held the market together until the leaders kind of refreshed themselves and then sprinted higher again. >> all right. mike

you saw kkr announce a relationship with capital group.s a long-term secular tailwind that will drive these companies. they are not very expensive. >> to like all of the financials that you mentioned, what rate back drop do up want to see? do you an seem we have seen the highs and fed will have the next cut and down from here? >> we think we can put the fed aside for a while. for the past 18 months, we have a.i. and the fed. if you think about it, we came into the process and nobody had a 5 handle for where the fed would go. there was a massive disblocatio. when we got to 5, everybody priced in five cuts in six months. now we're at convergence. i think for the next 12 months, we can sort of say, we know what the fed will do and it is close enough that it will not matter and focus on the fundamentals. i think as you get to 26, you have to be thoughtful of the fed because they pencilled in the 3 handle for the fed funds rate. >> do not have to think about the fed until 2026? >> and middle of 2025 is where i put it. >> all right. jackie, we w