vonnie: kathleen mccarthy of blackstone. coming up, the end of the art tech era at gap. how years of missteps and trading brands run down the ceo, and what it means for the future of the retailer. this is bloomberg. ♪ amber: this is bloomberg markets. i'm amber kanwar in toronto. vonnie: i'm vonnie quinn in new york. an update on the vaping story. u.s. health officials think vitamin e acetate could be behind what has sickened thousands of americans who have used vaping devices. fluid taken from the lungs of 29 patients battling the condition all had signs of vitamin e acetate. some makers use the syrup substance as a filler for their product. of course, we heard president trump earlier talking about releasing rules next week to up the age at which vaping is legal. amber: amazing how quickly people have come around on this issue compared to things like smoking and alcohol use. certainly has hit a number of stocks. speaking of, let's take a look at the get. it needs a turnaround, but art peck will not be leading it. struggling retailer fired it ceo later -- late yesterda

it is now run by two people, ken kaplan and kathleen mccarthy. bloomberg sat down with kathleen. >> to figure out what is happening in the economy and people's preferences, and how we put that any real context, in addition to what we've been doing on the back of e-commerce, ucs investing in innovation cities, both in terms of office, as well as rental housing. these are the place is more than their fair share of population and job growth. >> seattle, for example. >> seattle, vancouver, los angeles, san francisco. in europe, place like stockholm or berlin. beyond housing and office, we also look at global travel. we think there is a real push for people to spend more on experiences rather than just things, and that has given us more conviction to invest in high-quality hospitality assets, particularly in coastal markets. >> it makes sense he would be chasing these knowledge centers or innovation cities, may these experienced based opportunities you described. what about the stuff being thrown out with the bathwater while that takes place? are some

erik schatzker spoke exclusively to blackstone's kathleen mccarthy. >> we have great relationships with investors and access to great funds, so we look at transactions more in terms of what we contrive in terms of performance. a transaction is not limited by size. alix: interesting blackstone is betting it all on real estate. michael: they have never done that before. [laughter] alix: if you keep having the light -- the rise in yields -- michael: it is interesting because of the repricing in the bond market. they must not think it will last forever. alix: what are you looking at? michael: speaking of real estate, madison square garden reported this morning big losses, $3.36 per share. the stock has been up. the reason is they have come up with their latest plan to separate out the two parts of the company, the entertainment part, which is madison square garden the arena, the beacon theater in new york, the forum in los angeles, from the two sports teams, the knicks and the rangers. analysts say the sports teams are worth more than the combined company is at this point. the view is they

francine: that was blackstone's kathy mccarthy speaking to erik schatzker -- kathleen mccarthy speaking to erik schatzker. quarterly profit for disney topped estimates thing to strong numbers from blockbusters. losses at the direct to consumer unit widens, reflecting the cost of the soon to launch disney+ streaming service. it is preparing to battle netflix. disney also reach an agreement to put its new streaming service on amazon devices, ensuring it will have access to more online viewers at next week's launch. joining us now from princeton is geetha ranganathan, bloomberg intelligence u.s. media analyst. thank you for joining us. when you look at what is helping disney confidently deliver such good results, what would you point to? geetha: yes, thank you so much, francine. there was really a lot to like in yesterday's results. disney not only consistently delivering on its traditional businesses. theme parks stood out, studio was absolutely gangbusters. operating income was up nearly 80% and we will see continued momentum with the frozen and star wars sequels. it was a streaming firs