could they pull in another person beyond kkr? >> we know that other private equity firms had also looked at walgreens, so there are probably others out there. carol: does not mean they would. >> exactly. they have also been talking to lps about going in with them because pension funds and sovereign wealth funds also have a lot of money to put to work. so there are a lot of people looking at this deal. i think they would need about $30 billion of equity. as well as the $50 billion of debt. jason: right. so, the equity equation and debt equation are two different things. looking forward, let's assume this does happen. what has become clear is people are thinking big in this market. if maybe there is not a $70 billion-$80 million deal happening, we could go back to an era, when we are thinking about $40 million deals. what are your hearing from bankers about new ideas? are they saying i hadn't thought maybe this was possible but now we should start doing some books? >> people are saying you can easily raise $10 million-$20 billion i

kkr was initially in discussions. we learn a put in a formal approach. what happens next is they will and we do some diligence are working to find out what we are talking about and how the deal unfolds. shery: others looked at the deal and did not pursue it. what were the challenges? nabila: how you raise this amount of money for this take private. this would be the biggest leveraged buyout in history, debt levels of $50 billion to $60 billion in equity on top of that, something like wendy million dollars to $30 billion -- like $20 million to $30 million. it is tough to do in the market. kkr is very familiar with this management team. they have done deals with them before. while grain -- walgreens came out of their alliance. it remains to be seen how the details figure out. very kkr has been convincing over the years when approaching companies and talking about the benefits of going ride it. a, --e case of walgreen walgreens, will be the benefit? nabila: they are coming up to an election cycle, you will see drug pricing come under massive pressure. this

it is still likely kkr will partner with someone in order to see through a buyout of this size. it would be historic and that is exciting and exciting for the bankers. why does it make it a better company. walgreens has not been doing as well? kailey: it has not. it is one of the worst performers in the doubt and they've been taking different strategy than cvs, which has it at the acquisition, which had been vertically integrating, but walgreens is doubling down on brick-and-mortar retail. partnering with kroger, but you still see it struggling in the front of the store, and in the back of the store in the pharmacy business, you are seeing a lot of startups in that space delivering to people's homes. there's been a public outcry over drug pricing on capitol hill and that weighs on the revenue as well because drug prices are not picking up the same rate they were a number of years ago. that is weighing on the bottom line. it is an interesting question. what the return could be for kkr or another private equity firm in this deal. what is the strategy. david: one of the questions i

dani burger with us, talking about the kkr news. coming up, pandora's lay sick -- pandora's ceo joins us for his first interview of the day. do not miss that after the results hit the wires. goldman sachs chairman and ceo david solomon joins us for an exclusive interview in berlin in just about 45 minutes time. do not miss that conversation. this is bloomberg. ♪ matt: this is "bloomberg daybreak: europe." i am matt miller in berlin. here is a look at what you should be watching today. lyons asspeaks in christine lagarde made her first address, the ecb president, yesterday evening in berlin. she called for strength, resolve, and courage, and steered clear of monetary policy. we will be watching for an update on germany's future plans for electric mobility as the government meets with representatives from the car toustry to discuss how speed up the transition to battery-powered cars. angela merkel was hanging out with volkswagen executives yesterday at the opening of their id3 plant. worldublishes its annual oil outlook from vienna

it will be interesting to see kkr taking the leap. it raises the question of who they will partner with and whether blackstone will set this out. alix: we were talking about this on break and who would kkr wind up teaming up with and what opportunities today see where schwartz was no way, no how? brooke: i think you can make the mathworks but what exactly is the strategy? how will you make walgreens a more viable company than it is now. brooke: the third company -- alix: the third company both of us are watching his saudi aramco. mark rosanno joins us on the phone. lots of risks labeled. some we are used to, we are looking at big oil. others we were not. that is opec rules what you will do with your oil production. what was your take on the prospectus? mark: a lot of different pieces about the prospectus that have not been focused on. it is the royal rate that is piggybacked to the saudi government. it will be what does the growth look like? realistically you are looking at something that is still state owned and will still be beholde

then did a deal with kkr. eventually, they went on to buy walgreens. they have made, over the nine years, three times their money. they started off with $2.1 billion. they made 7 billion for investors. surprise thato when dealmakers are looking around at what is out there to buy, what do we know, what might be undervalued. and this isstressed a guy we know. foris well known cultivating these managers. now that we have dealt with the equity side, let's go to the debt side. the leveraged buyout means you have got to borrow tens and tens and billions of dollars. is that possible? you willts are saying need about $50 billion of debt. not for no reason is that the biggest buyout in history. there are questions about whether that can actually be raised in a leverage loan market. people are starting to push back. in the past few months you have -- people are selling them off. people are getting worried about riskier assets and gravitating towards investment-grade. if they were to do the deal they would have to do some kind of financial engineering to make it

would thinkment, we that kkr needs some partner. we have talked about other private equity players being around this previously. you would expect them to perhaps be tapping their investors, they might go to a different private equity fund. that all remains to be seen how they pull it together. thank you. a quick check on the latest business flash headlines. the ceo of uber calls the murder a journalist jamal khashoggi mistake by the saudi government. meanwhile, uber co-founder travis kalanick has sold about 20% of his stock in the company. daytrade came after a 180 lockup period. kalanick still owns a 4.6% stake in the company. meat areers in beyond rushing to sell shares now that restrictions have ended. the ceo is holding onto his shares. shares have lost more than eight quarter of their value since the lockup expired last month. musk's company tesla has unveiled its first car built in china. tesla's newilt in factory in shanghai. that is your business flash update. joe: coming up, goldman sachs being investigated for alleged disc

i think is a good opportunity to say hey, for example, you said with kkr, black stone and kkr both sold off when she started coming up in the polls, that's a good opportunity to own those companies because the reality is that rarely even happens >> thanks for that civics lesson because it's incredibly important. >> we got the lesson in november of 2016. when everybody thought you had to run for the hills with president trump's election and next thing you know the stock market has an incredible run from election day going forward. >> there's a strong comparison because the belief was that the market would fall president trump's protectionist mentality and that he would go after the chinese use iing tariffs. dwesz what he did? he used tariffs to go after the chinese and the market rallied i think the surprise is that senator warren didn't moderate her persona in response to leon couper man's letter. she pushed the chips to the center of the table. >> wouldn't do that now. >> she, the belief i think, the belief for many who say don't worry about senator warren becoming president warren, it

kkr owned it. they would be a logical partner if somebody showed up. you have to look at who can actually do this. of this many sponsors scale that could make this deal happen. you look at the brazilian firm, kkr, blackstone, but then the list gets thin on who could execute a transaction like this. shery: how has the company been performing so far? we have seen some cost reductions. ed: they have been good driving down the cost of the whole industry has been under pressure. we have seen a wave of consolidation over the past three or four years. a lot of the benefits from that have been realized. like a lot of things in health care, it is on a downward. drug prices, insurance is under pressure, and it filters down. amanda: this news is out, we see the stock reacting. options, isother there other pressure on this company and its executives to do something about the valuation? ed: there is always pressure on a company and its executives to do something, especially when they are below their all-time high. i don't know that he feels like he needs to do some

kkr is looking at doing a $70 billion leveraged buyout of walgreens. this would be the biggest leveraged buyout ever, but it's really not about drugstores, it's about debt and the fact that debt is very cheap today because we have such low interest rates. so there's a desire to lend at low rates, and there's a desire to buy. jack: you don't have to have great returns on a company as long as you can get up off that low bar. >> that's exactly right. we've seen the appetite, basically $30 billion in bonds to finish its deal for allergen. >> they make botox. [laughter] >> i look at walgreens, i'm thinking are they eyeing cvs. they're moving to health care. we now think of cvs as a health care company. maybe there's some sort of way to expand or extend this business to address health care and, you know, grab some of that margin instead of trying to show more in the candy kyle. jack: can you explain that dynamic, maybe they could cobble together that sam sort of -- >> there's so much cost bloat at hospitals and other places that if you can offer health care

but apparently kkr really sees things differently unlike me, kkr is a gigantic multibillion dollar leverage buyout firm. at this point it doesn't matter. it doesn't matter what i think about how crummy the business is there is a potential acquirer who believes in it so bears it doesn't matter. exhibit c, apple at least i got this one right. the new iphone 11 is place holder something between the 10 and the 5k hardly anyone expects this to be a big seller why would anyone upgrade with 5g right around the corner? was i stupid i dropped my phone i have to fix this thing so i wept to get a new one at that brant new store at 59th street and i had to weight for agents to get a sales person the line was too long. all i wanted to do, as i said to the sales person, i like to give you $1,000 i mean, you know can i give you $1,000 how about you? i'd like to give you $1,000? i needed a phone and i got glass splinters. okay turns out no one wanted my $1,000 unbelievable hey, why don't -- $1,000 hey? but someone finally wanted my $1,000 mast, as a matter of fact, they wanted $1200 because i got that appl

kkr has been preparing a proposal to buy out the shareholders of walgreens. the report says it's unclear that a deal is feasible because of the financing required for an lbo of that size, but kkr has a track record large buyouts in the past walgreens' current market cap is $55 billion, meaning an lbo, if it reaches that stage, would surpass history's largest buyout of txu from 2007 and the takeover of first data in 2007 and also by kkr, guys? >> leslie, it's interesting that the story has emerged in this way, because there's been some talk that the family behind walgreens has considered taking it private for the last two or three weeks. i guess my question is, any kind of reporting on who initiated this, was the company looking for someone to help them take it private or was kkr looking for this type of company >> i think that's the key question here. because, obviously, this is a massive deal and those other deals that i mentioned, particularly txu was a consortium deal, meaning that kkr wasn't the sole private equity firm beyond that buyout consortiums have

you would raise an additional -- speaking of people around, another 10, 12 billion in equity kkr would not be alone in this in any way, shape or form. do you have sovereign wealth funds that might be interested other pools of capital as opposed to lbo funds it is a heavy lift it would be the largest lbo maybe of all time. and by the way, it would be putting debt on a company and sort of -- and preventing flexibility, jim, at a particular time when a lot of people say walgreens needs transformation the competitor cvs which transformed itself what has walgreens really done >> they had -- >> they own a stake in amerisource. >> thanks for nothing. the front end here versus cvs, where you shop, for nondrugs, minus 1.2. minus 3.8 february versus the front end of cvs .4 .6 2.9, .4. the front end is something that cvs tried to diversify from and it is still doing better than what -- turned out to be a good deal merlot, larry merlo turned into a healthcare company you're going to load up walgreens against amazon right in the death star's purview and there is no force field. >> i think you're ki

. >> would you advice kkr to put money into saudi arabia? >> we have looked at deals in the past i did pull out of davos in the desert last year we have put money in the region as i think you know. we put $2 billion into abu dhabi national oil along with black rock that is the first direct investment by kkr in this region >> money into uae but not saudi. >> we trust the government we know the crowned prince very well we know the ceo very well. we have a lot of confidence. it was a complex deal but that's what we do we think this is a great partnership and hope it will lead to more we are looking elsewhere in the region as we do that, we evaluate not just the economic aspects, the geopolitical issues what saudi arabia has to do is regain confidence of all of the investors of the world so that it can attract the investors so much more to talk about willem, i'll hand it back over to you >> coming up, don't mess with the mouse. disney cheers with 10 million sign ups on the first day of its new streaming service. more details after this break. a

kkr was one of the groups in initial discussions. we have learned they have put in a formal approach. what happens next is they will probably look to do some diligence. we are looking to find out how the deal unfolds. >> cg capital is among the groups elevating the unit. sources say it is one of the businesses that submitted by last week's deadline. the business could fetch more than 15 billion euros. why 3g capital? they are better known for burgers and ketchup. >> that is a very good question. what is the link between burgers and french fries and elevators. really, there is none other than they are looking for a good investment. they have put the asset on the block. they need the money, because this is a company that is struggling. a couple of suitors have been sniffing around this particular asset. for them, it is a new industry. one that is still growing fairly well. for them, it would offer an interesting new avenue. >> boeing shares surged after it provided a new timeline for the 737 max to return to service. the company says t

this is not just kkr there's no way this has to be kkr with their largest lps perhaps, a gic or saudi arabia i can't imagine kkr unless they were going to raise a one-time fund for a particular deal would be doing this alone. >> this would be the largest private equity deal by double in terms of enterprise value. also point out the largest lvos have not done well if you remember txu is the largest ever did not go well at all the number two was first data which was ultimately a huge success story but at one point before frank came in, it looked like it was going to be wiped out. >> first data, what was that, 20 years ago? >> about 20, right no, this is a new realm. this is a new realm. this puts a lot more businesses in the sights if this deal is actionable i bet some private equity analysts are redoing their screens. >> elsewhere there are growing concerns over insider spying at social networks. last week federal prosecutors charged two former twitter employers with spying on users on behalf of saudi arabia's government the next guest warns there's more to come joining us is alex stam

walgreens hasn't commented, neither has kkr. from a fundamental perspective, barron's highlights the fact walgreens has struggled because the retail fapharmacy business general is more competitive. earnings were down, roughly flat earnings projected going forward. barron's last week noted that a sale of walgreens boots to berkshire hathaway could be interesting. could be that that $128 billion was burning a hole in buffett's pocket. liz: he is dying to spend that money. it's all he thinks about. right? reporter: this could be a potential for them. but berkshire, mum's the word on that. liz: always, right? jackie, thank you very much. jackie deangelis from the floor of the new york stock exchange. putting it all, and i mean all, on the line. with the closing bell ringing in 41 minutes and the dow clinging to nine points of gains, we know on this veterans day you have heard a lot of veterans' stories. but we've got a trifecta that will floor you. here in studio, army master sergeant george vera, paralyzed after being shot four tim

you may recall, tyler, that just last week cnbc reported that kkr was in the mix to possibly look at walgreens boots alliance. still, that stock one of the best performers in the s&p 500 today. back over to you. >> thank you very much stocks, as dom pointed out, have erased most of their losses with the dow hitting another record high so which stocks do you buy in a lofty environment like this one? bill smead knows, art hogan knows. gentlemen, welcome to both of you. i know you both came armed with picks, three each. bill, i'm going to start with you because dom just mentioned one of your picks, and that is wall green boots alliance. what do you see there, down 8% year to date but up 6% today. >> you know, you've got to love the wall street analysts' consensus because coming into this recent rise on these rumors, there was only one analyst on wall street that recommended buying the stock, even though they filled 23% of all the prescriptions in the united states, have 17,000 attractive locations not only in the united states but in europe, and generate massive free cash flow and have

so far no official comment from walgreens or the company that wants to buy them, kkr. >>> and the world's biggest online shopping day just broke its own record. alibaba just raked in a billion dollars in just over a 1 on single's day. it was created in the 90s, like an anti-valentine's day. alibaba adopted it a decade ago. >>> and dozens of florida residents were forced out of their homes on the second time. this is no sinking ship, it's an apartment building. the residents are dealing with heavy flooding after their roof top pool sprung a link. it send water pouring down the walls, pooling in the hallways and getting inside at co e ceiling thexact me issue6 weeks water poured from the roof top pool, forcing 250 residents to evacuate. residents were assured the pool was patched. to the right person. the bay area dispatcher who knew exactly how to help. >> 3, 2, 1, 0, lift off with gratitude to our veterans today and always, go usa! >>> another spacex falcon 9 launch lifted 60 satellites into orbit today. it's the second batch that will eventually put thousands of linked satellites and ser

kkr is looking at doing a $70 billion leveraged buyout of walgreens. this would be the biggest leveraged buyout ever, but it's really not about drugstores, it's about debt and the fact that debt is very cheap today because we have such low interest rates. so there's a desire to lend at low rates, and there's a desire to buy. jack: you don't have to have great returns on a company as long as you can get up off that low bar. >> that's exactly right. we've seen the appetite, basically $30 billion in bonds to finish its deal for allergen. >> they make botox. [laughter] >> i look at walgreens, i'm thinking are they eyeing cvs. they're moving to health care. we now think of cvs as a health care company. maybe there's some sort of way to expand or extend this business to address health care and, you know, grab some of that margin instead of trying to show more in the candy kyle. jack: can you explain that dynamic, maybe they could cobble together that sam sort of -- >> there's so much cost bloat at hospitals and other places that if you can offer health care

we have seen headlines about kkr looking into the likes of walgreens. that would make walgreens potentially come down to high-yield. the discussion we need to have is the length of the cycle. the decision-making that we are seeing from corporations and what signal that gives you about how long they think this cycle will go on for. matthew: i don't think people are particularly pessimistic. if you look at ceo optimism, yes, it's come down from the peak of the economy, but the economy has decelerated to a great trend of growth. what is so bad about that? inflation near the fed's target, not exactly 2%, but still relatively elevated compared to other developed markets. why should we be so pessimistic about the outlook for next year? it may not be that bad. that is what you are seeing in investor sentiment today. kathy: i would agree with that. we seem to be in a good place, as jay powell said. that is translating into ceos and cfos saying this is an opportune time to borrow, rates are low, we can borrow long-term at long rates. why not do it? jonathan: som

. >> has that gotten too big last week it emerged that kkr is considering the largest leverage buyout in the history of the earth. $53 billion for walgreens boots. is that a concern to you as somebody making investments in the same realm and is in that private equity hedge fund world of credit? the last tomb we saw something this big is $45 billion for txu in 2007. when you see echoes of that, has the world changed enough where it's not a sign post or do you say maybe we should pull the reins back >> i think what you've got is because of negative interest rates. >> liquidity >> banks -- yeah banks are lending. they want to do bigger and bigger deals because those are going to get approved. so i'm not worried about those as much. i think a lot of it is just because of where rates are so people are able to borrow more i think for us it's hard to play in that space, because you're not -- you know, you're not getting paid for that. so we can only play in a space where people have issues and if you've got issues, then you'll end up paying 10% or 15%. but in a walgreens, you know, in any of

he's done a large buyout with kkr before. kkr is one of the people they've talked to. the other reason i love this story, it allows us to look back at 2007. the largest deal before this was tsu, which also ended up as one of the largest bankruptcies. so this is such late stage behavior, where people believe that if you go private at the end of the cycle, it will allow you to weather some trouble ahead, but that is not always the case. alix: also, the only reason you would go private is an exit strategy, which would assume you would go public later, but it would have to be that much better. it's not like walgreens is a highflying tech company like wework. sonali: this has created so many zombie companies because not only do you have to have an exit strategy, if you are taking on a lot of debt to buy these companies, you have to pay back that debt as well. that's part of the value proposition. alix: we got believe that there because boris johnson is now speaking outside 10 downing street. thank you so much for joining me. let's go live to london, where boris johnson is s

since walgreens is a market value of $650 billion a deal by kkr would be the biggest buyout leverage how difficult could it be to get a deal of this size done >> it could be really difficult to get a deal of this size done, credit markets are always changing, depends how much equity they have, when they go to market to do a deal like this we're so far away from there i'm pretty skeptical actually about a deal getting done here because it is so massive one of the things i read was if they were taken private they would be out of the public spotlight and they could run their business better. that doesn't make sense to me because if you're more levered it's harder to run your business better, whether or not you're in the spotlight, it's harder you have to make more interest payments i don't get that the only downside is the stock has not exploded to the upside because of this story, only up $3 so i guess it could happen i'm sitting on the sidelines on this one a lot would have to go right to get the deal done, to get to the finish line. pass. >> yeah. so i think in this case what do you

according to bloomberg, kkr is interested in purchasing the company. the acquisition would be the largest private takeover in history. shares of walgreens surged 6% in early trading due to the report. >>> new at 11, president trump is set to meet with representatives from the vaping industry ahead of new rules from the administration this week. he just tweeted out this news this morning. you may recall the president suggested he wanted to ban flavored vape products. according to the cdc, there has been 2,000 vaping-related injuries across the country. >>> and cold weather is expected to shatter records across the midwest and east coast. more than 200 record lows could tie or even set from today to wednesday. the arctic blast will bring below freezing temperatures to some places impacting 230 million people. now in kansas city, missouri, temperatures were in the high 60s this weekend. but are now dropping to an expected 29 degrees today. it is the same for the rocky mountains, colorado, wyoming are both expecting temps to drop as much as 30 degrees toda

and that's where we begin tonight's market focus with bloomberg reporting that private equity firm kkr has formally approached the drugstore chain about a deal to take it private. as we told you last week, if walgreens is taken iprivate, would likely be the largest leveraged buyout in history. shares rose another 5% in today's trade. close to $62.25. >>> sun power is splitting itself into two t publiclyded companies separating its solar panel manufacturing unit from itsnergy storage and services division. company says that the split will help lower costs and improve efficiencies. sun power shares were up more an 1% today to 8.47. >>> nectar therapeutics reports posiesults from combining theer eental skin care drug and bristol-mrs squibb. it's up to 20.98. >>> tupperware said it will be improving financial flexibility and driving profits in the short term. the shares fell more tha to 9.23. >>> a recent report in "the new york times" says child abusers are running rnepant on and big tech companies are looking the other way as they take advantage of the loopholes by recirculating old porn

kkr and facina -- >> but that barons piece was a pure -- almost a suggestion. in fact it starts saying, warren, here's your elephant here's an idea. >> i'm not saying buffet is going to take equity but all of his deals are preferred with warrants that way if it works out really well, you have immense up side that's exactly what he did on oxy. >> i want to talk about another pick you have. by the way, it's a company that warren buffet has liked. american express. >> excellent business. >> has been in business since 1950 what's the future of amex? "the wall street journal" had a piece about how much money they're spending to attract merchants. >> yeah. >> in some case giving incentive fees that won't pay off for five, six, seven years. >> because they know there's a ton of 35-year-olds like me, andrew 40% of millennial card use is coming out of amex right now why are they going at merchants? they want to entrench themselves with the customers when sapphire came at them and jpmorgan took that shot, what it did is it woke up american express. that's after the costc

financial, kkr joining us from the cme. you are waiting for the fed minutes, i assume. is somewhatket focused on the impeachment proceedings as well, but the driver will be the fed minutes. the weakness overnight is very interesting. you see weakness overnight in the commodity markets, as well as index futures, and yet we still see buying pressure as we move through the trading day. we will have to see if that theme continues, but certainly it seems like the market is waiting for fomc minutes. guy: you bring up impeachment, so let's talk about it. at the moment, the market seems to be putting impeachment to one side, some plea for the reason that they expect impeachment, but no conviction. if there was impeachment and conviction in the senate come would that be good or would that be bad for risk assets? volatile,uld be that's for sure. would bem, i think it bad. depending on how the narrative evolves within the power structure in washington, i think that will be the longer-term impact. when you look at short aspects of it, i believe that certainly, it would be a negativ

walgreens is jumping on renewed reports that kkr has made an offer to take the pharmacy market giant >> i covered the 25 feet from the exchange's desk over here in about a minute and a half. i haven't lost a step. boeing shares having their best day since june after the company upgraded its progress on returning the 377 max to the skies. phil has the developing story. hi, phil >> let's run down the time line that boeing put out this morning. looks at december and january. those are the crucial months for the max getting back in the air. in december what the company is planning is that you have faa certification. once that happens you'll resume deliverie deliveries in january they expect the pilot training rules to be set and then depending on which carriers are ready, they could resume commercial flights by the end of january. southwest and american, two of the larger airlines around the world that have the max in their fleet. they both said they are not going to be planning on flying it until march we expect to hear from united this week or next week if it's going to push back if pl

. >> stefano casino worked with kkr in 2007 to form an alliance to buy walgreens. he is familiar with a private equity buy out situation. he wants to take the company private. they are in a sector that is challenged at the moment, margins are strong -- are not strong, they are under pressure, we are not sure what is going to happen with the new government that comes in, so it is that retail health care next asked -- andil health care nexus there is competition from amazon as well. ♪ linedox is said to have up financing from citigroup as it weighs a cash and stock bid for hp, huge game -- huge names from a bygone era. doesn't make sense for them to come together now? >> this is mostly an engineering driven transaction. about $50raise billion and even with a slightly higher cost of capital, we think potentially that they can swallow the hp deal. when you put them together, you get a printer giant and more importantly, a supplies giant that can tell you up in a long-term sales contract when they sell you a printer. the pc business is a castle generator that augments

kkr raising $6.5 billion for its largest european buyout fund. ae firm, cofounded by billionaire, will focus on transaction in western europe. kkr already has taken a stake in german publisher axel springer. the firm also invested in soderbergh and partners. i'm viviana hurtado. that is your bloomberg business flash. alix: we turn to wall street beat. first up, david solomon says profit matters. or i should say, solomon says profit matters. goldman sachs ceo david solomon says markets are correcting themselves after years of pursuing growth at all costs. then, softbank sets new standards according to a report. the company is outlining new governance rules after the breakdown of wework. founder is paying the price for his startup bets. the network takes a massive hit. joining me is bloomberg's sonali basak. in the exclusive interview with david solomon, he talked about public valuations. here's what he had to say. david: it is important for people to grow, but there's got to be a clear path to profitability, to earnings of some sort. over time, a

up after reports that kkr was approaching the company about going private. bloomberg reporting a formal offer has been made. baron's analysis saying it take steve o75 to 80 bucks for sharer approval. melissa: thank you. >> this afternoon, ohr more tr s released from capitol hill today on impeachment. reporter: melissa. we got transcripts released today, i start with cooper, told house investigators, it was unusual that there was a hold on aid to ukraine, her testimony cooper testified there was an effort by envoy to ukraine voke target ukraine to state it would try to prosecute people involved in election interference, and aid thersaid there was concern t trying to withhold the assistant. ukraine received aid from russia after the rush -- from washington after the russia incursion. was a way to help defend itself from russia. catherine croft, said that she got calls from ukraine embassy as they quote approached me quietly and in confidence to ask about the omb hold on ukraine securitsecond. >> and that mulvaney placed an informal hold on security assistance

kkr was trading at nine times earnings so they went into the index. the indexes had to buy it and kkr is up about 80% since that decision happened. >> mike, we're waiting on quite a number of earnings again today. and actually if you look at the names, they're all largely consumer facing. shake shack is another one, for example. key i guess broader overall themes that we'd be looking for from some of these companies >> i think the consumer is the premise for why the economy is in decent shape here i think the backdrop is okay for each of these. now, we're getting to the latter part of earnings season. i think a lot of times what happens is people just assume. it's not necessarily going to -- the market is ignoring or looking through the fact that guidance has been pretty negative and the fourth quarter earnings on paper don't look all that great i think it's clearly trying to safe we're seeing enough evidence in the global economy we're willing to wait it out >> not great, keith. but not terrible either. i think the guidance has been okay >> yeah. >>

the best performer being walgreens on the report from bloomberg that kkr might make a bid. barons talking about warren buffett intentionally making a bid. let's look at some of the poor performers. there are varying reasons behind some of these performances. consumer research saying this is way overpriced and that sent that stop lower. the worst performer in the s&p 500. occidental petroleum, that is looking for a bid through some of the properties it secured in its anadarko purchase. that has cast a pall over that sector. amerisourcebergen is down 3.7% today. let's turn our attention to what has been happening in spain. failing to form a coalition government following april's election, spain held a fourth election in as many years and now i path to government remains as unclear as it did back then. the acting prime minister is getting blamed for much of the socialist party losses while the nationalist party saw it seat double. is getting a lot of criticism for having the election. maria tadeo joins us from madrid. most seats, but how is he form a government? maria: this co

walgreens and kkr declined to comment. softbank is disclosing the damage from its bets on we work uber, leadingnd to the investment powerhouse's first quarterly loss in 14 years. it comes as they try to raise a successor to its measure -- megavision fund. to the u.k., where philip hammond is quitting parliament after his expulsion from the conservative party for voting against boris johnson. he will stand down at the elections on december 12. he hit out at johnson for not allowing a wide range of you within the tory party -- of views within the tory party. global news, 24 hours a day on air, on tictoc, and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. anna? anna: thank you very much. let's talk about germany. the german finance minister olaf scholz says he will consider and enhance european banking union framework that would include a common insurance mechanism. this would ensure the eu is less dependent on the u.s. or china for its financial services. writing

of private capital is a big trend emerging in the global asset management industry reports servicing kkr has made a formal offer to take walgreens boots private. pace of new money flowing into private equity is on the rise with 15% growth in the first half of this year alone versus 8% for etfs. that had been, of course, a hot spot next guest helps raise money for private equity funds the founder and ceo of triago and private equity entrepreneur. good to have you back. >> thank you, tyler. >> why is money flowing into private equity compared to even etfs, which had been leading the flood? >> three main reasons. performance, private equity is one of the only asset classes with a two-digit return right now. >> historically? >> historically, yes it's been like 11.3 over the last ten years black rock expects the asset class to return 13% over the next ten years second reason is resilience. it's actually now proven that private equity is not that volatile and that even post l lehman it's quite good and third reason is liquidity. >> you couldn't get out? >> you couldn't get out. you were gettin

they have said, kkr said, it will be tough to find buyers of these loans. there isn't the appetite we had in 2007. and so, we'll actually see whether this actually happens. charles: we'll see. lbos are backed, folks. don't worry, erin will walk us through it. thanks very much. we'll need a lot of hand-holding. >>> by the way this is veterans day. fox giving veteran-run businesses the spotlight they deserve on fox square. he developed this in the service, and giving back by providing an outlet for inner-city youth. their stories are next. ♪. my body is truly powerful. i have the power to lower my blood sugar and a1c. because i can still make my own insulin. and trulicity activates my body to release it like it's supposed to. trulicity is for people with type 2 diabetes. it's not insulin. i take it once a week. it starts acting in my body from the first dose. trulicity isn't for people with type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you're allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neo