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tv   Bloomberg Markets Americas  Bloomberg  July 17, 2017 12:00pm-1:00pm EDT

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from bloomberg world headquarters in new york. here are the top stories on the bloomberg and from around the world that we're following. uber has faced its fair share of scandals this year. we hear from their head of west coast business on how the $69 billion company plans to pick up the pieces. procter & gamble faces a proxy fight for a board seat. a deeper look and trends and activist investing with morninging -- with morgan stanley. and k.k.r., private equity firm named for its founders, is preparing for a day when those leaders are no longer at the helm. an inside look at the company's succession plan. before we get to all of that, let's check in on the news. >> thank you. president trump continues to enjoy overwhelming support from the people who voted him in. but they're less enthused with his leadership on health care.
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that's according to the latest bloomberg market poll. 60% of respondents think it's unrealistic that a bill that lowers premiums and increases coverage will be passed in the next several years. health care also ranked as the most important issue facing the country. the second round of brexit talks began today in brussels. u.k. brexit secretary david davis is urging negotiators to push for progress on the rights of citizens living in each other's nations. the e.u. says that citizens' rights is one of three issues where there must be progress before it will discuss future ties with the u.k. and american doctors specializing in treaty rare genetic conditions is in london to assess a critically ill 11-month-old for the first time. the visit by the doctor of columbia university was organized during a court hearing last week after he testified a new treatment was worth a try. charlie guard suffers from a rare genetic disease that has left him brain-damaged and
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unable to breathe unaided. the baby's parents have fought in court for permission to take him to the united states for treatment. the european union is considering tougher sanctions on north korea. over its first intercontinental ballistic missile test to prevent the country from funding further nuclear weapons development. in a statement today, the e.u. foreign ministers condemned the test earlier this month as a, quote, serious threat to international peace and security. and they urged an end to such actions. global news 24 hours a day, powered by more than 2 had, 700 journalists and analysts and over 10 countries. this is bloomberg. >> thanks for that. we head now to boston where bloomberg editor at large is with a senior executive at uber from the global business travel association convention. >> thanks very much. i'm here with peter jonas. and in addition to being head of the west coast business for
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uber, he runs uber for business. it's an important sounding role. i want you to tell me to begin with, what's different about uber for business than the uber i know and presumably everybody else knows? >> so i assume you're a rider so you know the app well. reporter: i do. >> good. uber for business is effectively a tech layer, a platform we've put on top of the existing application. where that came from was, in the early days of uber, we saw a ton of momentum coming from the business traveler community. and as a result we realized there was a lot of friction for business travelers that we could remove. uber for business initially was intended to remove that friction. and we're continuing to extend the reach for business outside of that and into other avenues as well. reporter: so as you're trying to appeal to corporate customers, what services do you feel you need to add or is this tech layer, as you described it,
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fully baked already? >> i think of it as -- uber moves people and things. in the most fundamental sense. we're putting people in cars and moving things in cars. for businesses, this is about your employees, it's about your customers, moving your customers either to bring them to an event like this, or to send them home from the auto dealership when they drop off their car for repair. and then finally, there's the movement of goods. so you want to get goods to customers. as we start to build this business out further and this platform out further, we focus on the low hanging fruit, which is business travel, where we know the most. because there's so many people already using it. and it's $250 billion market opportunity globally. just for the business travel portion. reporter: relative to -- how would you define the market for all of uber servicess?
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>> it's really hard to define. for an uber for business perspective, it's really hard to define. because we're solving problems that have never really been solved in this way before. so you think about the hotels, hotel angelyno out of l.a. it's a boutique hotel. if you haven't been there, the beautiful. they're a little off the beaten path. they're using uber central, our moving customers platform, they're using that to move customers in and around los angeles. and that's just not something that has been serviced before necessarily. auto dealers are using it to move people home rather than -- reporter: so this is uber in a way many people don't actually think of the company in the way that it delivers service. >> exactly. reporter: of this 2ds50 billion total addressable market, what percentage do you think you already have? >> it's tough to say off the top of my head. reporter: small? >> i would say we're fairly small percentage. i think it's growing. reporter: highly fragmented.
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> highly fragmented. growing rapidly. the opportunity as we start to evolve the product and start to add more and more solutions for our customers is we're going to capture more and more market share for sure. reporter: uber has been prospecting for growth on a lot of fronts. food, logistics, freight, self-driving cars, flying cars, for example. how fast is uber for -- does uber for business need to be growing to remain a strategic priority? >> at uber we really focus primarily on the customer experience. are we solving big enough experiences for our customers? and the answer is -- yes. the road map that we have is going to continue to have us solving more and more interesting problems. as we evolve the business. reporter: do you see growth accelerating? >> yes. reporter: and how fast is it growing now? >> i can't share that today.
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reporter: but it's -- >> it's at a significant clip. reporter: how much of a threat does lift pose to you in the business travel market here in america? >> so we really think about it on a global scale. when we're trying to solve problems for business travelers. business travelers care about having a solution for them in every market they travel in. we're in 450-plus cities, 70-plus countries. when you land in one of those cities or countries, you want to be able to click a button and get the service that you're used to. so -- reporter: i want that -- [inaudible] -- consumer or i'm a company. >> absolutely. the expectations are even higher for business travelers. on top of that, the expectations of the companies are higher. the expectation is you're able to manage the policies, the expectation is you can report on data as it flows in. the expectation is that you can have more control as a business
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to know where your people are from a duty of care perspective. reporter: a lot of uber success was the product of deals that michael did. and he was instrumental in the early days of uber for bills. how no -- now that he's left the company, where does that leave uber? >> we're set up for success. the work that's been done by the team over the last five-plus years, six years, has set us up in many ways to strategically domestically, internationally for success. so we're in a really great place. reporter: what about travis? how have changes changed since he left as c.e.o.? >> so, it's been a very short period of time. the company incredibly focused on solving the issues that we have in front of us. we're focused on solving the cultural issues. the leadership aspect, we're focused on. nd then finally, from a driver perspective, you've probably seen the recent releases around
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tipping, the wait time pay, all of these sorts of things are our action to start to solve for some of the things that have been exposed over the last few months as issues. reporter: you came in only a few short months ago from facebook. given the culture that you knew there, did you see those as deficiencies at uber when you arrived? did you see a need for them to be changed? in the way that they're being changed now? >> i'll tell you this. coming in from facebook, facebook has an amazing culture. facebook, that is something that's been cultivated over the years. uber absolutely has all of the nuggets of -- that you need to build a great culture. and it's just a matter of maturity and the leadership structure, the organizational structure continuing to evolve. which we're heavily focused and invested in now. reporter: here's what outsiders wonder, and perhaps insiders as well.
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whether it's uber for business or the uber app that we know that is evolving. how does a company make big and important decisions without a c.e.o.? >> i don't know that i'm the right person to answer that question. reporter: but you have to live with the consequences of that situation. >> yeah. reporter: who is calling the shots for you right now? >> there are a myriad of different people who were already in place when the executive team that left left. and they're increditably competent leaders, they understand the business at great depth and they've really taken the reins. >> do you -- reporter: do you think morale is a risk? given the fact that something so many employees are looking forward to, an i.p.o., is effectively on hold until the management issues are resolved? >> we're really focused on resolving any sort of morale issue. i think as we start to really have things like what you saw from the driver rollout, as we start to put the people and the pieces in place for an evolved
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culture, i think that's going to be solved. reporter: having spent so many years, seven years, at faceback, -- facebook, you know what a cheryl sandberg can do and has done for that company. would you like to see her come and run uber? >> i can't comment on that. [laughter] i think any company would be happy to have someone like cheryl. reporter: that's peter jonas, head of the west coast business. runs uber for business. at of course, uber. back to you. >> fantastic stuff. thanks there to our bloomberg editor at large. he said with peter jonas, west coast head of business at uber. don't miss eric's interview with boston tomorrow at 1:00 p.m. eastern. we're halfway into the trading day. at least we found a direction. but not very much of a direction due. >> an upward direction but a very, very modest one. remember, any gain at all, however modest, for the dow and the s&p would be another record close.
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nasdaq earlier caught up with its other companions here and got to a record closing level. but hasn't been able to maintain that. one of the areas of perhaps some surprising strength today is in retail. a lot of the retailers got a lift last week after targets better than -- target's better than estimated results. it helped lift the whole sector. that's continuing today. ot only the retailers, but the manufacturer/retailers are doing well in today's session. we're also watching activism once again. which has become quite a common theme this year. procter & gamble have been already targeted by nelson felts' try management. now it's a 1.5% stake. it is beginning a proxy fight now to win a board seat at the company. they've been going back and forth in discussionses.
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and p&g says he wants to accelerate changes they're already trying to enact. b.h.p. billen to being targeted by another -- b.h.p. billton being targeted by another activist. his company is kicking off a website to target retail investors, specifically he's criticized a number of different practices from its dual u.k.-us a trail aia corporate structure, to investments in the u.s. shale industry. what's interesting is, if you look at the hedge fund industry over the past several years, we've talked about this frequently. it's underperformed. activism, however, has done quite well. these are two hedge fund research indecease of hedge funds. the bottom is the global hedge fund index. at the top is activism index. the activism index not as bumpy here because it's monthly. as opposed to the weekly readings for the other. but still, the direction is
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clear. in this case, it looks like at least by in they are, i should say, it looks like activism has been paying off. >> fascinating. thank you for that. coming up, we're sticking with this activism theme. we speak with a top lawyer of morgan stanley next. ♪
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>> we sit down with the top activist lawyer who happens to be at morgan stanley. reporter: former lawyer, now banker at morgan stanley. happened to be joined by david rosewater. thanks for being here.
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global head of corporate defense at morgan stanley. a good day to have you. with the news that nelson pelt looking to get a board seat at procter & gamble. the largest committee company ever to face a potential proxy fight here. i'm curious, is this a trend or the targets just getting bigger and bigger? do we expect the targets to get bigger and bigger among the top activists? >> i think so. it's one of the trends we're seeing in recent particularly year or 18 months. the targets are getting bigger. if you look at the activity level that we're seeing among large companies, it's at all-time highs on an annualized basis. you just see very, very large companies, you had potential activist situations at g.m. and that was a full proxy contest. you had at bristol-myers. you see necessarily. lots of other ones. so big -- nestle. lots of other ones. big companies have been vulnerable for a long time. but it's become more intense
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recently. reporter: peltz himself had some success. looking for things a little different. do we really know exactly what he's looking for here? we know what the public statement is. sometimes is the actual goal not the public statement in these types of cases? >> as a general matter, it's certainly the case that, with any activist, you have to make sure that you're thinking about what the possible motivations are behind the public statements. it's not always right on the surface. reporter: i want to speak to activism more in general here. two charts. it's a bit interesting. i think what we're seeing here. maybe you can explain. if you look at the largest activist funds, the trend line actually is somewhat flat. if not a little bit down from what we've seen yesterday in terms of total campaign. but you if you look at activism in general, the trepped line is
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clearly up. why are we seeing this? why are the bigger funds maybe pulling back a little bit while funds in general, the just go time? >> sure. there's a couple of different things involved there. certainly some of the biggest funds, the celebrity activist that i tend to think of and many people tend to think of, some of them have had their struggles in . cent times some high profile fwale failures basically. and that i think, when you look at the assets under management, those -- that activists have, it's kind of leveled out. if you went back a few years, it was continually up. now it's kind of leveled off. the activity continues to go very significantly up. the gap is essentially being filled by what you can only refer to as nonactivist activists. they're essentially institutional investors, hedge funds, and others who are not
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traditionally activists. that's not what they do for a living. but they're starting to employ activist strategies much more frequently. whether that's behind the scenes with letters and just discussions with management, or public statements and even campaigns. reporter: is this healthy for the economy? to see that trend line up? if you look at the results, you do see that activist funds tend to do pretty well against the s&p 500. but is there such a thing as bad activism? >> everything is situational. it's not a -- i'm not here to tell anybody that all activism is bad, for sure. it really depends on what the situation is. if you take a situation where, let's say an activist came into a company and all they did was look to shut down spending on r&d or something like that, without any particular other
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plan other than simply return it to the shareholders, that can be a negative thing. it really depends, even on that, in the situation. so where activists are doing short-term actions that are really designed for that real short-term gain, that is certainly not healthy for companies in the long term. reporter: in your role, if you face an activist that may be feels like it's pushing more toward the short term than long term, what advice typically are you giving to a company in order to prepare for that? that's your job in many ways. sometimes you're called in before campaigns even begin. how are you advising a company to say, look, you need to cultivate your share base so that you have some job security just in case this happens? how do you do that? >> what we try to focus on is, what is an activist going see from the outside, if they're looking at a company? and try to diagnose what those
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vulnerabilities are. and then most companies are pretty good at messaging about the things that they do. here's how we're returning capital, here's what we're doing in terms of costs and things like that. what often companies are not as good at, and one of the things we often then focus on, when we're talking to a company about how to defend themselves, i don't love the word defend, but in any event, we often talk about the things they're not going to do. how do you message about things that you're not planning to act on? because they look like they make sense from the outside. and that's trickier. there's certain things you don't want to say, if you've got some asset that you don't want and want to sell it, but nobody wants to buy it, that's certainly not something you're going to message. but there are lots of things that you can talk about in terms of -- we always -- we the company always look at all the various opportunities for shareholder value creation. and focus on what's best for the
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shareholder. ultimately that's what we're trying to help companies do. is to make sure that their shareholders understand that they're putting the shareholders' interests first. reporter: david rosewater. global head of corporate defense at morgan stanley. thank you for joining us. >> thanks to bloomberg reporter alex scherman. there with david rosewater. still ahead, it's tough being the amazon of e.t.f. they keep getting bigger but still is making as much money as analysts expected. this is bloomberg. ♪
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>> it's time for the latest bloomberg business splash now. biggest stories in the news. blackrock second quarter revenues missed analysts' estimates for a fourth straight quarter -- quarter. they zpite a record billion dollars in exchange traded fund
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flows. blackrock cited lower performances and a drop in activity. their c.e.o. said the u.s. economy is growing more slowly than expected. he also reiterated the concern for the market and asked whether president trump president trump can pass key reforms. bank of new york mel oon has a new c.e.o. -- melon has a new c.e.o. he replaces has hol will remain chairman through december. worked for jpmorgan chase's equity fund and also former c.e.o. of visa. and that's your latest bloomberg business flash. coming up, it's classic subprime loans, rapid defaults, sometimes fraud. we'll speak about the u.s. auto industry. ♪
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♪ vonnie: live from bloomberg world headquarters in new york, this is "bloomberg markets." a quick check on u.s. stocks in the see the major averages not
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doing too much, but they are all in the green. the nasdaq has paired its games. not all groups are in the green today. there are some areas in the market where investors are little mixed. let's go to abigail doolittle to tell us more. abigail: with the major averages trading in very small moves, investors may be on hold as earnings season moves into the heart of earnings season. one high-profile company reporting is netflix. shares had been higher earlier with the nasdaq higher earlier. netflix fluctuating between small gains and losses. investors are looking for $.25 on a little more than $2.7 billion. that represents more than 20% year-over-year growth. the stock does tend to be very volatile after the company reports making a 13% move up or down. this time around only 8%.
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another big piece of the story is always subscriber growth. these are stocks are putting tomorrow -- bank of america, goldman sachs, charlie schwab, and harley davidson. trading revenue will probably very much be in the spotlight after that miss by jpmorgan. byrles schwab trading down 3/10 of 1%, but it does look like analysts are looking for a fairly strong quarter based on client asset growth after the company did lower online fees earlier this year. harley davidson, this is a pretty interesting one. shares are down this year and investors are expecting the company to report about one , down from its estimates. this is on channel check suggesting that the retail segment is weaker hollered davidson -- week for harley davidson. kind of tying all these
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companies together, 25% of their operating profit does come from their financing unit. apparently the credit standards there have gone down. we happened to the bloomberg and take a look at g #btv four 590. there is a reason to think the shares move down more. 2014, aback to 2012 and pretty big move up for shares, but in this range of uncertainty. this is basically when the sellers overwhelmed the buyers and the 50 day moving average moved to love the 200 day moving average. more recently, we have had that big move up over the course of 2016, but this area of uncertainty, it may suggest that the risk identified by compass point financial as the financing arm of harley davidson could come into play. one salesperson told me that it is the equivalent of subprime loans for harley davidson and it could be a problem in the future. vonnie: abigail doolittle, thank you for that.
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one piece of breaking news -- the procter & gamble board has responded to the fund management, saying the board will give a formal recommendation in proxy and that try and has not provided any new or actionable ideas. responding, saying there have not been any new or actionable ideas. a decade after the subprime mortgage debacle, the industry has embraced another some private debt -- auto loans. joining us now is the detroit bureau chief david welsh. it is $1.2 trillion market, the auto financing market. who is to blame? auto dealers, banks, people taking out the subprime auto loans? david: it's kind of all the above. car companies have their subprime units and then they contact with banks to do other was subprime lending.
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what they want to do is sell cars. they cut deals with lenders who will find a way to get somebody who has credit or lower income financed. yields are pretty good and consumers like to buy cars, particularly a car that they should maybe not be responsibly be buying. you can blame everybody that subprime lending is going up and that delinquencies have gone up. it is typical of any lending bubble and we have seen this happen before. the good news about some prime auto is that you do not see quite the default rates you do with a mortgage because people often pay off their car first because they need that to get to work and get around. it's really necessary for everything that is. vonnie: at what point do we start worrying about the delinquencies? on mortgage payments, people don't try to get out of them. orlet themselves get evicted
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-- they let themselves get evicted or go bankrupt, but they tend not to. damaging thed of whole financial system the way the mortgage crisis did, you don't have that sort of thing, but it's a risk to investors. it's also a risk to car companies because credit terms are tightening. when that happens, the people on the margin just have a tougher time buying a new car. you are seeing some of that already and that is why we have seen auto sales sink this year. 12e people getting financed or .4 months ago cannot get financing now. it sort of plays with the reasons that car sales have fallen. the average new car's expense of these days and .5% of people can afford them. the financing of that plays in. credit ratingsn and incomes cannot get financing for that car and end up going to the used market where they are financed on less of a printable. vonnie: that is why we are
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seeing a little bit of a drop-off in auto sales, but were auto sales overstated? were people buying cars that should've waited longer? david: i think there was to a certain degree. we had very easy credit and we really had favorable terms, low interest rates as well. it made financing and purchase it pretty cheap. as you see in the story out today, which was very well done, you were seeing lenders who are not even checking incomes for every buyer. when that sort of things happen and people get financing, it was even more free vizio euro to ago. there are probably a lot of loans being put out and people who are buying too many cars and should not have been financed in the first place. 2.9 billion dollars worth of subprime auto bonds and by 2016, 20 $6 billion.
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protection gets spilled into a lot of these bonds in the get upgraded through their lifetime. was the risk to bondholders? david: serious default. you are not seeing serious damage to those portfolios yet, but eventually does come back on the bondholders and the originators. the value of their investment goes down. these are less tradable assets if they see damage to the collateral behind them. we are seen that because used car prices have fallen. the collateral behind those loans is not as valuable as it was. no investment is risk-free and they have been pretty solid. subprime auto lending has not really been the kind of business where you have seen a lot of big buyers for 20 years. gmf has always been a pretty solid lender. the rates are higher than normal , but not at alarmist levels by any means. vonnie: the attorney general started to take note of this and
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we have seen at least one settlement. federal allegations brought by an delaware massachusetts. -- delaware and massachusetts. david: when credit is freely given and standards are not checked all the time, you will start seeing people get finance to should not be financed. you will see dealers playing with loan terms because they know they are not being checked. that is where we have seen some of the conflict and litigation. when attorneys general see that, they will have a look and see if everybody is aboveboard. bloombergg thanks to bureau chief david welch. here's mark barton. mark: president trump is preparing to shake up his legal team and the changes may not stop there as investigations into his campaign ties with russia heats up. the president is likely to put his longtime attorney and to a less prominent role.
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that's according to a person familiar with his thinking. the president is also considering what to do with his communication staff. and venezuela, opposition leader say more than 7 million people thevotes against president's plan to rewrite the constitution. impact, but it could pressure the president to withdraw his proposal. the war in afghanistan killed a record number of civilians during the first six months of this year. reportaccording to a released today which blame the majority of the deaths on bombings by insurgents. the commissioner for human rights called the deaths of more than 1600 people horrifying and said the numbers can "never fully convey the sheer human suffering of the people of afghanistan." o.j. simpson will ask officials this week to let him out of a prison after serving more than eight years for an ill-fated bid to retrieve sports memorabilia.
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the former football star has been serving his sentences for 2007 armed robbery. he is due to appear by videoconference from the correctional center to be questioned by pearl commissioners. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. vonnie: kkr announces new heads and uniform rules as the firm's cofounders prepare for their succession. this is next. this is bloomberg. ♪
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vonnie: this is "bloomberg
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markets." to veteran ated executive members to president and co-chief operating officers in effort to prepare the firm for the future. through this is bloomberg news executive editor and bureau chief. what were investors looking for and expecting this? jason: this has been something long-awaited at kkr specifically the firm was founded back in 1976 and they started with a mentor who left in the 80's, but this has been their shop here people wonder as they get into their 70's who was in line to sort of takeover. this answers the big question not for the public investors and
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the public shareholders but the institutional investors and the endowments who do aliens of dollars to kkr every year. they're only in their 40's and i guess the thinking is that they will get another few years experience. they started at the same classes at kkr back in the mid-90's and they spent their adult lives at kkr. they really came up through the private equity business and they went over to asia and home that. scott has been more of the public face and worked in a number of businesses that are outside of the traditional private equity business. he is the voice that people often here on investor conference calls. there's this balance between the two of people who know different sides of it in an ever-changing an ever-growing and ever-changing business. vonnie: who might have been on
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the list that was not chosen? jason: when you look back, one name that kept rising in the and he waslex in th the head of private equity and one of the dealmakers who has been at the front also for the better part of two decades. he will be leaving as part of this tradition. this transition. unrelated,te and todd fisher, a bit of a. course, is going to leave later this year. it's an interesting evolution of these firms as they get institutionalized. they are publicly traded and for decades in. vonnie: the likes of alex navab and todd fisher, where might they go and could pose competition? jason: they could but on a much smaller scale.
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a longtime partner at left last year and early 2016 to start a credit fund. he started it with a guy from blackstone. there definitely is the possibility and again, this is the thing we have seen on wall street over the years where people leave the brand-name firms and start their own thing and morbid boutique basis. vonnie: what be pressure on other pe firms to come up with a succession plan and make it public? bridgewater came up with a succession plan and it was a bit of a surprise. people tie up their money for a long time with these funds. jason: i do think the conversation will get more robust around the private equity firms. as an industry, it has not been around for that long. if you look at blackstone or carlyle especially, they're still run by their founders. has been where there something of a succession is ppg .
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toy brought in john winkle w be the co-ceo. an outlier because he's only in his 50's. the 90'sd ppg back in when he was just a puppy. vonnie: jason kelly, executive editor and new york bureau chief. time now for the latest bloomberg business flash. respondedgamble has to try and fund management saying it has not provided any saysdeas for the fund and that there will be a proxy fight. peerss outperformed its and try and had attended to gain a seat on the board with its 1.5% stake. ceo mark light is stepping down, citing health reasons. light has been accused of misconduct as the company is
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facing sexual harassment and fraud allegations. they own the kay jewelers and jerod stores. fedex's unit may not recover from last months data virus breach. it could impact financial results. significant amount of tnt operations are run manually and there are no evidence that -- third parties are affected. credit suisse is working out a new strategy for their plan that will focus on its most probable areas. the swiss bank has been working on cutting costs and building up capital over the past year and a half. credit suisse is the new plan should help the bank valuation after 2018. that is your latest bloomberg business flash. coming up, disney says it's going to build an immersive star wars hotel at its orlando resort
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. we discussed the company's growth strategy next. this is bloomberg. ♪
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vonnie: this is "bloomberg markets." i am vonnie quinn. star wars fans are getting a treat. disney announced it will build an immersive star wars hotel at its resort in orlando. the comfy has been investing heavily in theme parks and the premise that they cannot be copied by competitors. joining me now is director of research ivan. the shanghaik from disney, so you suffer yourself a operations are moving in china. shanghai disney is running ahead of expectations. they just had the first year in the first three -- anniversary
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in attendance is stronger than expected. people stayed was much longer. vonnie: the likes of orlando needed an upgrade. it's been a long time like the epcot got an upgrade. ivan: the real power of disney is there content. they have tremendous content and value in action and adventure with mor marvel and star wars and the halo effect is incredible because it spills over to rides, themepark attractions, merchandise. it is a real powerful driver and has tremendous equity and value. vonnie: why did it take so long for disney to decide to do this? its major capital to spend, but that cannot be the only reason. ivan: the have produced now to star wars movies. the have the third star wars movie coming out.
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they see the power and the fan base continues to grow. it makes sense to expand the fan interest and movies into themepark rides. they can create a whole star wars part and interactive hotel makes a lot of sense. vonnie: if things are as good as you make them sound, why is disney stock struggling? i was looking at it earlier and it has really gone nowhere. a little bit of a rebound, but we are not at the 2017 highs. we are down several percentage points. ivan: there are two issues. the declining viewership of espn , as people cut the cable or unbundle, and also overall declining viewership and television. people are watching content, but they are consuming it on different platforms. they're watching it strange to their computer or downloadeing things. disney will get ahead of that because the power of the content. content. the king of
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if you do not have content, people will be staring at a blank screen. vonnie: there's revenue from different areas of disney and the media networks make up almost half the revenue. 21%s and resorts where at -- are at 21%. is disney looking to rebalance the pie chart in some way or make sure it stays the way this? ivan: two things will happen. on a speculative prediction, they may sell some of its tv stations, the media networks, which is the big orange part. and themeparkdio are becoming a greater portion of their revenue. vonnie: that high chart is incorrect. it is 30% of revenue something parks and media -- from thing parks and media. tell us more about the next things that disney will have to do. you have to keep coming up with new things for people to revisit the part. it's not an inexpensive holiday to visit a disney theme park.
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ivan: it is a good value and one of the best family vacations. the other area they are expanding as the cruise area. i've been covering crew stocks and i've been bullish on the cruise industry. the cruise industry continues to grow. the biggest strength this capacity and disney cruise ships are adding capacity. disney says they will double the number of cruise ships they have from seven to 14 over the next five to six years. vonnie: how much room is there for the stock to go higher? once all this is of limited, will it take a significant bump in revenue for investors to be excited about the stock again? ivan: i think it should be trading at a premium to all the other media stocks. they are in a class by themselves. 120 right should be now and are trading at a significant discount.
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they will realign the growth drivers and the growth will primarily be driven by theme parks and the studio and tv will become less important. succession, is it a problem for investors? ivan: investors are always concerned, but i think the have a strong mention. bob iger says he will be there for a while. he has had some headwinds outside of his control and i think he will continue for some time and continue to deliver. vonnie: sorry, have to cut you off. chief investment officer and director of research at tigress. more "markets" straight ahead right here on bloomberg tv. ♪
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the lowest price... ...on the hotel you want. go on, try something fresh. tripadvisor. the latest reviews. the lowest prices. david: its 1:00 in washington, 6:00 in london, and 1:00 a.m. in hong kong. i'm david gura. welcome to "bloomberg markets: the trump economy." here top stories we're watching at this hour.
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americans feeling good about the economy, but the same optimism is not holding for president trump. we will look at the latest bloomberg national poll. top officials from the u.s. and china are talking about economic corporation to find out what to look for. we will talk to a professor from cornell university. ♪ david: i want to begin with that new bloomberg national poll that shows americans feel fairly optimistic about the economy, but those good feelings do not extend to the president of united states. pollf respondents to the approve of the job that president trump is doing in the white house. here with more details is john mccormick in our chicago bureau and kevin cirilli joins us as well on capitol hill. john, let me start with you with that first set of data.


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