also, erik schatzker. -- cofounder and ceo, steve schwarzman. you guys are on a roll. you are an earnings machine. you've got assets at $300 billion. can you keep this pace going? steve: we've been keeping her momentum going for a long time. earnings have been compounding at 46%. in the latest quarter, we raised $30 billion of new money for our products. that is more money than any alternative manager of the than ourselves has raised for entire year. we are in a simple business. we have been in it for 30 years. our job is to earn high returns with very low risk. we have been compounding around 10%. if we can do something like that over a 30 year period in a world of low interest rates come if you, you can use that type of return. that is the business we are in, doing it with safety. betty: what is the fundraising environment like right now? steve: for us, pretty remarkable. we are the only firm of our type in the world. our stockmarket value is six times what the other competitors are. when institutions are looking for different types of products because errors have all

>> let's get back to our special guest, chairman, ceo, and founder of the blackstone group, steve schwarzmann steve, you've done really well with the way the economy and the united states has performed. did it help that it was, you were able to pick you know, maybe more value because its been kind of a tepid environment? >> well as it worked out, it allowed us to invest more money over a longer period of time. and when we invest we invest to fix companies, accelerate their growth or fix real estate and lease it up and better prices. and sell that and do the same thing in credit. so its been, you know 2.5% growth which i guess is what we've had over a long period of time. has ended up working out quite well for us. >> is this what we should expect? is this where we are now as we -- >> i think given the government regulations and the society and where we are and the fact that the dollar's gotten stronger. and you know growth around the world is a little less, i think if we can do 2.5, that's pretty good. it'll look strong in the developed world. the whole world's economy is shifting a bit now

blackstone's chairman and ceo steve schwarzman. he's sitting alongside brad sullivan. >> scott, thank you very much. steve schwarzman, runs a bunch of stuff. all of our audience knows what he does. they teased you with china, steve, welcome, thanks for joining us. i want to start with real estate. a lot may not realize you are the biggest owner of homes in the united states. what's your view? is housing still a good investment? >> housing is a good investment. its been coming back for quite some time. we're only building about half of the houses we did at the top of the last cycle. people need to be in houses as immigration continues in the united states. >> so we'd still buy. you bought at the bottom, would you put new money in housing right now? >> we still put a little bit in now. not as much, nearly, as we did at the bottom, but we're finding that the market continues to go up. for the value of houses. though not at the same rate that it did obviously off the bottom. >> it's good, but it's less good. is that a fair way to sum i

blackstone's ceo steve schwarzman says his firm is like apple, google or boeing.ike those companies, blackstone has clients who need the firm. he drew an analogy between what he does and sports. steve schwarzman: we are like a basketball team without a 24-second clock. we do not have to shoot. we do not have to be invested. we just wait for an easy shot. we keep passing the ball and we go for a layup. we only in private equity have to do 10-12 investments a year to invest our money. mark: laxton reported first-quarter profit that doubled from a year ago. the firm said that for the first time it has more than $300 billion in assets. that's a look at the top stories on this thursday. coming up on bloomberg, scarlet fu with a special edition of off the charts and a look at take-home pay of gisele bundchen and tom brady. time for the commodities report. good afternoon. sue: audio higher for a six today, recovering from a dip earlier on concern that saudi arabia has boosted production to the highest in three decades. check out the swing in oil, at one point it was down

blackstone chairman and ceo steve schwarzman joining us.s biggest real estate a management fund. are we hitting a netflix moment in music streaming? competing for your ears. anthony bay joins us for his strategy. the founder of the international law firm weighs in on u.s. politics and her friendship with hillary clinton. what does she think about clinton making a run for the presidency? citigroup releasing their results. scarlet fu has those numbers. scarlet: let's start with earnings per share. citigroup reporting items 152

when i sat down with steve schwarzman -- betty liu and i, in fact sat down with the chairman of the boardrning -- we talked about this, but eventually the conversation got around to valuation. because if schwarzman's firm like stone is doing that well, why is it not being -- blackstone is doing that well why is it not being reported in the market? if you look at a traditional asset manager like black rock which ultimately gave birth to blackstone the valuation is 20. so one dollar blackstone earnings is worth have as much as blacrock earning -- blackrock earnings? why is this the case? steve: i think the world will realize we have a differentiated model. we are like a great branded company. we are more like an apple, a google, a boeing, a cat we have customers who need us just like those firms, those companies do. betty: so you are like a tim cook? stephen: not exactly. we are not as big. but in our sector, we have grown at 46% compounded earnings over six years. we are one of the great companies in the world. we look at them. what do they have? they have great products. they have custome

the thing about blackstone, steve schwarzman as i mentioned, has just put in place his new maternityfrom 12 weeks to 16 weeks for his female employees. that is one step in the right direction, but private equity is terribly behind other sectors in terms of employee high-level women. matalin: we have seen private equity only has about 10% on average which is considerably below. and private equity firms primarily recruit from banks. there is something happening at the recruitment level where there are not enough women actually applying stop betty: there is a dearth of talent that they find. matta line: --madeiline: not necessarily a dearth but there are two different thoughts on how they are bringing women into the workforce. one is that the entry-level and there are a few different initiatives for that. some firms are trying to find women who will in turn them in the undergraduate level. betty: what is the second thing? madeline: the second thing is retention. that is not so specific to private equity, because a lot of other businesses have that issue as well. maternity leave is a gre

erik schatzker and stephanie ruhle are there joined by steve schwarzman, chairman and ceo and cofounder of blackstone. erik: thank you. steve is sitting right here. thank you for spending time with us. in some respect, this celebrates a culture of risk taking. your firm is in the business of taking risk, high returns for low risk. where do you feel best about taking risks today? >> there are a variety of different places. if you are buying fixed income instruments, that is a good place to be. if you are buying real estate in a variety of places, that is a good place to be. if you are finance energy company is that have a need for money, and you can make a satisfactory arrangement, that is a good base to be area there are always many good places to be. .: how many satisfactory places have you found an? you have said the collapse in prices in oil with amazing and extraordinary opportunities. yet there have not been that many transactions. >> let happen is the public markets for energy have really valley. just really rallied. they financed a number of companies that would have turned to pr

steve schwarzman put the firm's strategy in basketball terms. >> we are like a basketball team withoutsecond clock. we do not have to shoot. we do not have to be invested. we just wait for an easy shot. we keep passing the ball around and go for a layup. we only in private equity have to do 10 to 12 investments in a year to invest money. emily: blackstone led a deal to buy $23 billion in assets from general electric last week. joawbone taking apple pay with its own feature. the ceo explains how it came about. >> we teamed up with american express while ago about how could we use that real estate to create a seamless payment experience and that is what we have done. i think it is -- forget wearable payments, it is the easiest way. you take the device and it has a mark that shows where the tag is. you tap it and that is it. emily: the up4 will sell for $200 and ship this summer. nearly a week after apple watch preorder sales began, how successful was the launch? apple says feedback has been positive. so positive you will not be able to buy the watch and store until june. apple's svp of r

these assets in steve schwarzman's hands. there are other great leasing businesses.e going to get good prices for these deals and be able to buy back stock. create the same eps by buying back stock. have a concentrated -- they will be back doing other things. ge is the only company left in the dow jones. when i got the job for my predecessor i inherited utah international. that was ge and mining. 21%. charlie: looking at ge today, no itit was, the house that tech built. they are going back now, for some of the reasons we said, to the core business. jack: going back to what jack built. the engine business. the number one health care business. the number one railroad business. the first acquisition we made in 2000 in the oil and gas business which he has done a great job of building up. where are we going back to? all those businesses we made number one. charlie: if you were to come in out of business school, what do you think you would like to do. suzy: i would love to have worked in a kind of industry. i often talk to jack, what if he had hired me out of business sch

blackstone's steve schwarzman, john chen from the conference in l.a.ou in about 15 minutes. >> all right. we won't miss it. >>> meanwhile, it's that time of year when digital contact companies make their pitch to madison avenue trying to snag more advertising dollars. julia joins us now with a look at the billions of dollars in ad spending at stake, julia. >> well john, this could be the year that digital ads prove they are a real alternative to the 30 second tv spot. today kicks off the two-week long digital new fronts. it's internet giants answer to television upfronts when they sell about two-thirds of tv ad dollars. as giants from youtube and hulu argue that their ads are more effective than tv. u.s. digital digital ad spending is projected to grow 30% to $7.8 billion while tv advertising. % this year, but it's more massive. expected to reach 70.6 billion dollars. digital video will become as important as a tv programming within three to five years. advertising just in the 5% of youtube channels. youtube says its drawn more than 30 traditional tv a

erik: steve schwarzman told us last year i think it was, of course of the group, said look what he. is liquidity overrated? erik: you can get yourself in a situation where -- they got a margin call could not sell assets and went under. aig in essence got a huge margin call that they could not meet so you could make it very important, or you can make it un important. the best thing you can do is set up your fares so you're not dependent on the presence of liquidity. one of the things i say in my recent memo is that liquidity is plentiful when you do not need it and disappears when you need it most. stephanie: how do you price that in? when you look at the overall credit market when things are going well, no one is thinking about liquidity. howard: right. as i say, you never know if it is going to be there when you decide to sell, so you should -- erik: pretend that it won't be. howard: well, it is good to assume that it will not be, but that may make you over conservative. i think it is better to not be reliant on its presence. i things you will not have to sell. erik: what about all

steve schwarzman is incredible. ge did an amazing deal.ou have dodd-frank saying you're at $50 billion, regulated beyond anything you can imagine. moving those assets from an area where they used to find themselves -- finance themselves on commercial paper. commercial paper is floating every 30 days. we saw what happened in 2007 you've got cut short and it is over. ge, by getting out of the finance business, the stock goes up $9. they give $90 billion back to the shareholders. what if there is a blip? what if there is a blip? erik: where is the weakest link? mr. barrack: the weakest link is that values are priced to -- stephanie: real estate values? mr. barrack: every value. real estate for sure. if you look at -- everything is dis-intermediate it if you are looking at true assets assets depreciate. office buildings. true rent of downtown office buildings in most urban areas, forget new york city. true net affected rents. leasing commissions, tenant improvements, property taxes. if you effectuate down in current dollars, about the same as

erik: no, i just saying that is a conversation you have to have with steve schwarzman.ll pretty. ge shares are up 8%, and the covenant will have to pay a boatload of tax on the money bringing -- they are bringing over from overseas. $4 billion in cash. nobody should be liking that. what are they in love with, the fact that ge's getting out of commercial real estate, not going to be an originator of commercial real estate loans any longer, and it is doing this gargantuan buyback, where if they do $50 billion, it will rival apple for the biggest of all time? rick: it is a huge buyback, a move geared toward satisfying shareholders, with a long-term view. there might be a number of cost now, but they see industrial earnings growing significantly. erik: i was think about who is getting the right price. stephanie: with ms amount of money blackstone has, it is crazy town. devin: you have a $15.8 billion fund coming online soon. stephanie: they are buying the sears tower. devin: they will be up to $100 million in the next learning -- earnings report. erik: there is some precede