♪ sonali: welcome to bloomberg markets. investors are bracing for a u.s. jobs report tomorrow, economists anticipating the the slot with pace of growth since november. we are in the green, but still in the red on the week. the s&p -- s&p 500 now up about half of 1% and the nasdaq also feeling some love right before the apple earnings and about 8/10 of an percent higher interestingly enough, the two year yield back down to 4.90 after flying past 450 -- no,

just 5% days ago. we had a 50 basis point move in that two year yield seven days, so tremendous volatility in some people data still ahead. the 10 year yield hanging out now below that 4.60 level. send midday movers on the equity side, that shows you a little bit of the exuberant under the surface. qualcomm suggesting that demand for smartphones is increasing after two year swap. the company has been trying to decrease reliance on phone chips by pushing its personal computers, vehicles and other markets. qualcomm shares rising the most in more than two years. in apollo global rose 26% in the first quarter, just shied estimates, but the firm has launched the best performance among of publicly traded peers this year. you see a polish shares up more than 4%. and take a look at peloton also because the ceo announced lance to step down at the company looks to another restructuring to reduce annual expenses by more than $200 million.

they plan to reduce headcount by 50%. have a ton shares down now more than 12% on the day. speaking of jobs, the next big thing that marcus their focus on is the april -- markets are focused on is the april u.s. jobs report and more rain says the data is -- laura rhame says the data is key to her outlook. >> if you said i would get one economic indicator it would be initial claims. until that moves higher it is hard to get too nervous about the health or the state of the labor market. >> the broader risk sentiment in the market, you are getting the bed in the equity market. we are not yet done with earnings season. what is most important to you right now? > what is more important is the -- that meeting. you might hear some hawkish from fed chair powell, but that did

not occur. but we got was a dovish and instructive message. first of all, as you know, he very explicitly pushed back this notion of rate hikes and i think the markets really needed to see that because the 10 year treasury has been priced sufficiently for a one rate cut. but the fact that we don't have to bake into rate hikes into the scenario i think is a really positive one for treasury yields. the other thing he said that i thought was constructive is that this notion of stagflation that the news article severally pickup is that no, we don't have that scenario, and the data supports strong economic growth. and of course, the last point is core pce is at 2.8%. that is below three, and he sort of subtly mentioned that, but i think it is really important because we've been waiting to find this last mile of inflation and here we are. i don't think the fed is really -- willing to break the economy to suddenly get us to 2%.

>> how do you think about this in the context of jobs given that you seen such a drastic movement and yield? do you look at wage data tomorrow and worry more about inflation, or do you look at the absolute number year and start to think more about the weakening of the economy? >> i don't expect any big surprises from the jobs data. if we see slightly slower path of job creation that should be constructive fed. i do think that the wage number is going to be the most important one because we do get the employment cost index early in the week which showed this top, and to the extent that the wage number that we get tomorrow in age that, i think that would be constructive for the market. and that is consensus. year-over-year wage growth slows, so that is the number unto them to be looking at most. >> it's interesting because even if you saw some primacy signals and earnings so far you do have some event bearishness under the surface year. we are still down on the week for the s&p 500 and the nasdaq

how do you think about how to play equities right now, especially getting into apple earnings after the lows today? watching another tech giant come out. where is the risk? >> the risk/reward for equities is actually improved relative to where we were in april. my price target give or take for the end of the year is 5400 on the s&p, and the way we get there is looking at next year earnings and the multiple which is a little bit rich, but i think you can hold so the fact that we are now somewhere between 5000 and 5200 on the s&p. the lower the entry point, the better the wrist-reward the price target becomes. i actually like the opportunity now that we've seen a bit of a pullback and i think you can be selected in the spots that you buy. but the playbook i would continue to stick with his tech. to the extent we see some selloff i would be buying that. you buy semiconductors and you also bison cyclicality because even the many actually number this week was disappointing, i still think inventories are low enough to have a multi-month

restocking cycle. so back to the comment about big tech, i think largely big tech has delivered and it is benefiting from of course the solid economy, the solid consumer, but also the aa adoption trend. >> speaking of hot topics, once i get all fair the conversation i'm having is that the public markets, for the private ones consistently. the public markets are getting smaller, a lot of money moving into private equity, private credit in particular more so. how do your clients think about that movement? >> our clients are certainly participating in that and i'm speaking specifically about the private wealth channel. you have the opportunity to step in and to be able to earn that coupon in private credit which at the moment is quite attractive given with the fed funds rate isn't given where the spreads are. so clients are often looking for yields between 10% and 12% and when you think about equities and equity volatility in the

risk reward that we just talked about, private credit definitely stands out. as we look at some of the flows going into some of those spaces, we continue to see very strong demand for private credit. sonali: what is driving that demand? you had kkr and apollo this week and you do see investors give them very warm response here in the vehicles doing very well. private wealth being some of the biggest of engines. what our clients really looking for at this point, especially thinking he rate cut is coming? why buy the credit? >> the reason i think private clients are embracing private credit is because it is increasingly accessible in a semiliquid. the fact that you can participate in still have core liquidity, that is really driving some of that interest. the other issue is that if you look at the history of credit over the last 17 years, 16 of them deliver positive returns. so there's only one year in 2008 when private credit was down

something like 5% were 6%. so looking at that history and these higher for longer interest rates and the ability to earn that coupon of tempers and-12%, i think that is why clients continue to stick with that. sonali: we thank you so much for going around the investment universe for us. the pioneer total return strategy in the 1980's revolutionized the bond market. but now he is saying that approaches "dead." this mccormick joins with the details here, going from private credit the public credit. what is so data total return investing in the bond market right now? >> my colleague has the story about philip, and he is saying something that i will say and a lot of other investors are saying, that you are not going to be able to bank on yields on these bonds plunging. and then you get this huge capital gain, which was kind of

an extra kicker for bonds which are usually thought to be boring. bill gross thinks rates are going higher, the 10 year is going to 5%. but overall many investors say even the ones that like bonds say i'm really looking for the income i'm going to get every half year. i'm not banking on capital gains, so bill is kind of going forward to say forget total return. i think he even ended insane don't don't summon so you a bond fund that is his view, but i think many people say rates are very attractive. i like fixed income because of the coupon payments, but i'm not expecting a big bang as far as rates falling substantially. like your guest laid out about the fed yesterday, indicating no hikes but higher for longer is going to be here for a while. sonali: it's interesting because he says that those who argue for lower rates have to counter the upward climb in treasury supply. how does the thinking change

given the rate environment that investors are expecting going into next year? coupled with that treasuries five. >> you saw yesterday and the so-called quarterly why the expected they kept all the coupon bearing debt issue unstable, and the kind of indicated we are going to sit there for the rest of the year, maybe the next few quarters. but let's just say a lot of the forecasters i here say beyond that, the next move is more supply. a bond. i think stephen stanley was saying next year you are seeing more issuance. others are. so looming in the background is fly is not going down there a lot of supply to digest. sonali: i always like to get your sense on how people are feeling the you say so close to the trading world now that we have finally seen that come back to the market on the hills of powell yesterday, how are people feeling today? >> you know, we have this

diverging camp, a lot of shorts in futures, the asset managers keep saying yields are attractive. but i think the net of all of this is that people feel like ok, we got that tail risk of a hike out yesterday but it is really all about the data. there is no rest for the weary. every data point like you're talking about tomorrow, i'm always worried, boring would be nice that there are always surprises. so like the fed is going to have to still be dictated by data markets, every kind of key data point is a window for yields to really move up or down. so i think volatility, i keep saying that, but i think that if the name of the game for now. sonali: we have some incredible interviews for the next 24 hours. stick with us, everybody. thank you so very much for keeping an eye on that market for us. coming up next, we are going to

talk about discussing more pain to come for the commercial real estate industry. after all, rates are still high. stick with us, this is bloomberg.

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of all. they challenges one interest rate environment that is brought a huge amount of uncertainty is challenging the investment sales market. that coupled with the banking crisis about a year ago still leaves people with ptsd, depositors in particular, and thanks traditionally lend -- borrow short and lend long, and that model is rogan. so it kind of start with the banking sector in terms of challenges and capital available. while it is a very slow investment sales market, we have a huge opportunity in making loans to real estate developers, owners and operators. we have the opportunity to buy performing and nonperforming loans from banks that need to clear the balance sheet and one interesting major opportunity that we added on the last three years lending to other lenders you have this huge private credit industry that has evolved and we started this business about 20 years ago, just to give you some scale. the challenges that alternative lenders and private credit really needs leveraged to provide the returns they once

did. and if they can't get leverage from banks, that is a challenge. so we've seen this huge void in we have a pretty big business in providing it to other alternative lenders in the form of warehouse lines, financing and notes. sonali: sounds like conditions a relatively tight and you just mentioned the original banking crisis or at least, sort of implied it from last year. is that over, is there more to come? some people we have been interviewing thinks there's not too much more of the crash were any sort of the crash with commercial real estate you think the worst is over? >> i think we are very early innings. the beneficiaries have been the largest banks such as the jp morgan's of the world and private credit, but the challenges that banks don't have the -- they once had for deposits, and they are saddled with a portfolio that is a lot of times long-term financing

that they provided at some 4% rates. and loans are taking a lot longer to pay off, so that coupled with a lot of office loans is a real challenge. >> we've been hearing also about so much dry powder on the sidelines to provide some sort of a floor. do you not think there is all that money there the people are talking about? >> i think there's a lot less capital than you would expect. the real problem around the interest rate volatility right now, typical equity buyers of real estate are not really there. many of the institutional equity funds want to provide more structured credit they don't want to take common equity, they want to provide preferred equity, some sort of structure capital. and that is a challenge. so again, it's very hard to make a market in real estate with a year treasury volatility between four and five in change. that is the problem right now. >> when people think about the distress starting to form, the kind of make this discrepancy. there's office and this other types of commercial real estate

as well. where are the most concerns in office in particular? either areas with an office you would be most comfortable putting your dollars toward? >> even if you are an a-class office that has just been built, you have a difference of valuation. second, i would say b+, a -quality office buildings, the demand just isn't there the way it once was. wasting commissions, and a lot of capital outlay from an order, and who is providing that capital today? you see a lot of institutional owners handing over the keys to banks and there is a back and forth between the bank not wanting to take the keys and owners wanting to hand over the so the question is where will capital come into an office deal and what will that mean over? there's been a lot of talk about repositioning for other asset classes. easier said than done. the real reason is zoning constraints, cost to improve. just sort of cost of carry to

actually vacate the office building. that is a real challenge right now. >> you just mentioned rates with all eyes on the fed and yesterday to the relief of a lot of people it seems like they are not going to hike this year. the jamie dimon says he thinks he could see interest rates going to 8%. they've already backed up 50 to 100 this year. have you seen an effect on all of your different businesses and if we did go to a percent or anywhere near it, would that be absolutely devastating to commercial real estate? >> it would be devastating but at the same time i think spreads have come in a bit. where are we in the context of spreads and base rates? the capital markets have opened up. see mds has opened up a bit more than it was in the recorder of last year and that is because spreads have come in. they have all this money that does want to come into sector, and some of it is going from what would be equity investments into credit. so that naturally leads to tightening of spreads because you have demand and very little

deal volume going on right now from the investment sales standpoint. >> so we don't want to focus on all doom and gloom. what is the next opportunity with the eyeing? >> right now we are seeing interesting opportunities to provide capital to complete deals that were broken that needed to finish but had cost overrun. we are a very big construction lender. one of the largest private instruction lenders in the u.s. that is an area that banks have not been able to provide capital because of regulation. and again, lender finance. a huge opportunity to provide credit to other private capital lenders, that is a very big opportunity in the form of financing and warehouse funds. >> we thank you so much for keeping an eye on this market for us. on a very granular level, that is josh zegen as well as abigail doolittle who is so very well- versed in the real estate market for us at a very critical time. still ahead, we are going to

talk about carvana because shares climbed after a jump in sales and surprise profit spurring an upgrade. stick with us, that conversation up next. this is bloomberg. ♪

♪ sonali: this is "bloomberg markets." carvana shares are on a tear today. the online used car retailer reported a surprise profit with analyst positive about the company's growth acceleration david welch cover the auto sector rate joints me now. anybody that has no wanting the story knows that has been a wild ride over the last couple of years of the latest earnings -- so put the latest earnings into perspective. >> they had a good quarter by any stretch, compared to where they've been. i would call it progress. one thing with carvana, every quarter there are sort of one time or unrepeatable boost to the earnings.

in this time, and ensure actually push them into the black, otherwise it would have been a net loss. give them credit where it's due, the net loss would have been way left in the street expected their unit sales, they did much better than everybody expected. so they are selling more cars. we are any period where they spent the last year restructuring, cutting costs, and they want to get down to a more rational cost face after those years of breakneck growth pace. to where they can start to rebuild again. i think that is where they are and why the analysts are excited about it and why investors are. another think that is pushing these stocks, there was a nearly 30% short position as of market close yesterday, and i think a lot of those bears are running for cover and running to cover. that is pushing shares as well. clearly there's a lot of enthusiasm after a year of restructuring that they are finally getting it together, perhaps and then can start to grow.

sonali: plenty of credit, but what about the risk still? if you think about this being a progression and them being on the road to better days ahead, what are still the risks and what do they still need to get done? >> there is still a lot of risk. this company still has more than $6 billion in debt which actually went out in the order. their interest payments are higher because the debt they restructured last year was at higher interest rates and they really haven't that down yet ernest curcio, the ceo is talking about wanting to start to reduce their debt. analysts are saying they may have enough slack in the business, enough breathing room to start to do that but it is still quite a bit. the used car market is pretty volatile right now. there is risk ahead. they are not out of the ones. sonali: let's talk about ford for a second. we only have a minute or so left but you stop jumping the sales. i'll be in as you mentioned

earlier on a low base. put the jump into perspective. >> dv market is not dead. i think everybody kind of went bipolar. when sales are going great, everybody wants the ev. suddenly it slows down and everybody thinks nobody wants ev. tesla is not going that other companies that have new wants to market or production underway like order are starting to see some sales and growth. it is not growing double, triple like the past few years where tesla stock is rising in value rapidly, but there is interest. there is rising demand. it is going to take time to get big numbers, but is still really one of the only growing markets and transportation. sonali: david welch, thank you so much for keeping an eye on all things vehicles for us. coming up next, the global market risks and the loan environment with henry mcveigh. he is -- he is fresh off a trip from china and has been in touch with a lot of big investors were thinking a lot about how to

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♪ sonali: this is bloomberg markets. a day after the fed for the meeting, investors are still finding economic unease. head of the april u.s. jobs report. you're going to discuss this all with henry, chief investment officer of the kkr balance sheet. you kind of see it from all sides here. you come out of the fed meeting, you see that drop down yields, that bid in the bond market. is it a believable move downward here, do you think there is still more upward pressure to come? >> i don't think there's a lot more upward pressure to come. i do think that typically on fed data market gets optimistic. i think chairman powell does put

information out there that makes people react positively. our view is this whole notion of higher rest for inflation. we talking about for some time. that is still where we are. we don't have anything cap in the forecast here, but we do have a 10 year starting to come down, and that by year end. sonali: how do you feel about when the fed actually does cut. if you believe they can't get anything done this year, why is that given the market is still expecting at least one in december? >> on the shore and, this cycle has been very different. it has taken longer for the increase of directly impact the economy and zoomers in 2006 had about 30% of their mortgages and variable-rate. today that number is 3%. more people kept their jobs during the fed tightening cycles. the different backdrop we talked about fiscal impulse, geopolitics, energy transition. although things have led to this higher resting heart rate for

patient, so i think the market sometimes wants to get ahead. this is a classic that easing cycle. that is not the way we see it. and, i do think we can take some comfort in yesterday's announcement that they are going to start the taper. we have the balance sheet going down to about $6.8 trillion and then pausing on the taper, but that is still a huge number, probably 35%-percent of gdp. when i started it was 2% of gdp, so there is change. that is actually still very accommodative. when you look at a real rate basis which is what matters after asian, this isn't that restrictive. when you look at it on the long end, but that is still protecting you with a bunch of liquidity in the system. the offset that is that people are keeping their jobs and they did a really good job of kind of extending the duration of their mortgages and other pieces of credit, so i think we continue. our mantra for this year is the glass half-full. no doubt there's lots of

crosscurrents, but we tend to think that the market is going to continue to do ok. sonali: how does that set you up for jobs? on one hand you have optimism around tomorrow's report and where does it stand relative to where you see the rest of the year going? realistically there's a lot of uncertainty around how hard we land here, or have soft. >> most of their capital is 5-7 your duration. we've been focusing on the structural changes in the job market. one is 55 years and older professionals are actually retiring at a record clip. that is putting pressure to keep the unemployment rate lower. the offset of that is when you look on friday, let's focus on the three structural areas. one is the government, two's health care and education, and three is travel and leisure. structurally they are below trend and they've accounted for, depending on the month, somewhere between 75% and 100% of all the job earth. people don't pay much attention to that of the really haven't had a lot of road outside those sectors.

if there is really a problem in those areas, i probably would have more nervousness, that is not my base case. by the way, the thursday jobless claims was 208,000, which is really, really low. i know that we are worried about not as many john added when you look at the unemployment claims, see that data, we are still in very healthy levels. sonali: this conversation talking a higher resting heart rate with a report recently cios in the insurance sector in particular looking at a regime change these are some of the largest fixed income investors in the world looking at what you're are saying potentially, higher for longer, maybe higher forever inflation. put that into perspective. >> we actually own our own insurance company. more importantly we partner with a lot of our clients.

we surveyed about $8 trillion of assets around the world, and what you see as a couple of things. one is most of the cios agree with us that there this regime change driven by this higher resting heart rate for nation, and what is most interesting about the report that is out that when rates went to zero, last time we did a survey there was $15 trillion in negative interest today that is zero. they were looking for ways to find young, defiant diversification, defined returns. that percentage is fairly come off. what it tells us as they had a really good experience using alternatives and other forms of nontraditional stocks and bonds, but they are preparing to create kind of cold-weather portfolios. the number of times that a cia told us we want to find something that can actually write out the storm, we see extraordinarily low rates, now we have a very high rate, i think they are ready for that volatility but it has led to a

dramatic positioning of the folios sonali: i could make a lot of insurance jokes about all weather right now but i will refrain from that. what are you seeing from client on expectations for interest rates vs. what the fed is saying? >> i think where we probably differ over time is starting with transitory. depending on the day, 150-200 companies, we get pretty good real-time data in the area were we continue to see sticky inflation. chairman powell talked about how he doesn't see the stag or the flation. on the stag we would agree. productivity exactly quite strong. companies invested a lot around the infrastructure to make it more efficient with covid hit, and we are now seeing the productivity gains. where we might disagree morris around this flation comment. we see that in wages, medical cost, insurance cost. one of the great things about

partnering with insurance companies is when you have inflation going up or down italy, they see it. they see what it cost to repair a bumper. what i would take away from them is they are probably in the same spot we are, which is our businesses are saying yes there is an patient coming down, but probably hitting the 2% target is going to be quite hard. sonali: that is going to be so hard. does the fed have room to rates rate -- raise rates if they need to and you think that is something we could see? >> that is not our base view. the fed has done a great job moving aggressively and starting to move the taper. one of the new nuggets that we took away that was positive yesterday is i think chairman powell did introduce the notion that under 3% inflation you get a little more emphasis on the dual mandate of employment and not just inflation. remembering your it is 100% inflation, no growth in employment mandates.

i think they've done a good job, i just think it will take a little bit longer to play out. sonali: so let's talk about something else because you recently came back from china and the other big question mark that is sitting over the market's geopolitical risk and the relationship between the u.s., china, and the rest of the world in what has been a very volatile period with tons of geopolitical tension. how do you think about this when you come home from the other side of the world? >>-spending an inordinate m&f time in china and japan. japan is actually coming out of deflation. on the china question i think there are a couple of really important points to keep in mind. one is on the housing market that you have excess homes, and that is putting disinflationary pressure on the economy. that is the fixed investment that drove the economy for years. that is the kind of slowing that will continue to slow. the offset are -- of that is around industrial automation and the green trajectory, the green economy. those are booming and there are

actually disinflationary given that they are trying to export some of that and that is creating tension. i think some of that is the market. what i would say is not in the market is people missing what is going on around asia in terms of asian trade, including china. what you see is there is a huge boom leading to investment in transmission, logistics, data and infrastructure. there are a lot of ways to play that. china is not sitting around just depending on the u.s. for exports. they are doing a lot more in asia, particularly southeast asia and that is leading to kind of a virtuous cycle within the asian region. you see it in the data right now. five years from now they will look a lot more like north america, canada, mexico and the u.s. as well as europe and then the regional hubs. sonali: single best investment idea outside of china right now

given what you've seen? >> i am very bullish on what we are doing in private equity. you've seen us do that at s&p global come in the u.s., vmware in the u.s., hitachi in japan. even though rates are higher, those are great opportunities for investors that we are pursuing aggressively. sonali: we thank you so much for your time sandwiched between two big moments for investors were watching the federal reserve. coming up, we are going to stick to the ceo of mgm on the company earnings and online betting outlook for the casino operator. we have some big moments in the sports world coming up this year soon. stick with us. ♪ ♪ ♪ - [female narrator] they line up by the thousands. each one suffering with a story that breaks your heart. like 10 year old zakael. he had a growing tumor on his neck. his need for surgery was urgent. and ravette, who needed help,

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sonali: this is "bloomberg markets." it is time for the stock of the hour and for that i'm joined by katie because mgm shares are popping today after the casino giant reported first-quarter revenue growth of 13% to a record $4.3 billion. in the company is benefiting from the recovery and a new partnership with marriott that has stopped filled at least 130,000 hotel rooms. when we think through what the street is saying after this report, what are we getting out of after mark >> loss trade welcoming this report with open arms. i would take a look at some of the commentary saying that mgm deliver the best earnings report by a wide margin across coverage, surprising on both the top line and on the margin fund. if you take a look at the shares, they had been up about 9.5% they've given back some of those gains, currently up about 3% but still we are talking about their best day since late

march. >> we are going to both -- for the bus discuss this further with bill horn buckle. bill, another thing that analysts had said, if you buy mgm, you had better be right on las vegas. what is the promise of las vegas in terms of how much you can bring in this year and how booming the economy could get this year? >> las vegas fundamentally instill still the core of their business. we're in the luxury segment ended at 80% of our earnings cannot of luxury. the place i'm sitting at today, the bellagio, the cosmopolitan, mgm and to a certain extent even mandalay, it is all doing well. occupancy at an all-time high again. average rate, this quarter of 6%, 7%. so vegas continues to do well. i think the question would be not if they come, but with the spending will be around the periphery, around entertainment.

but our core fundamentals are falling and las vegas is continuing to drive that for us and if the cult movie for the industry. sonali: dale, how do you feel about inflation at this point in time, are there any signs that the consumers feeling the sting of laois and they couldn't back that trajectory in las vegas or anywhere else in the country? >> we are not immune from any other. at the end of the day people still cherish this experience. it is a getaway, and escape. factoring even the great recession when our company ran a 2%. 2008 and all that happen, people come to vegas. for they do when they are here come up with a spend money on, ultimately i think become that differential in the barometer. we have not seen a slowing down. somewhat in the lower end of our category, we've seen some minor pullback, but you saw the results as it relates to the overall totality of our business. judging by this particular

quarter with the super bowl in las vegas and the other events continued there, you become not only the entertainment capital of the world, but one of the sports capitals. that is the great thing about the entertainment drivers we have between -- and t-mobile and subsequently in a couple of years, the ace coming here. the long-term view is pretty strong. sonali: just to meditate a little longer on las vegas, you mentioned the super bowl for example. some of the other sporting events coming up, you have formula one coming up as well. when you think about those events and the benefit on las vegas properties, how tangible, how meaningful has that been? >> substantive. if you go back to 2019, even the pandemic with the last real for the we can measure off of, we had absolutely raised the bar but it comes to rooms of note and pricing. we're looking at 25%-30% more than we were at that baseline and that has been consistent and continues to be consistent last

year which was a record year now into this year. so we remain very optimistic. and we have now enough of those. it is not likely just have one. we consistently continue to motivate that activity. the stadium is destined to have about two dozen events per year. last year had 42. this year 35 or 36. so they are meaningful. literally that stadium sits in our backyard particularly at the south end of the strip, so the activity case is consistent. it raises the bar for all of us, particularly with nine properties. sonali: let's talk a little bit about your casinos because bloomberg news has been you are considering some of your domestic casinos and you actually said earlier today that your casinos must show real growth or risk sale. if you could find real growth and over what timeline you are thinking about potential sales, that would definitely be helpful. >> principally, it is an original properties.

you think you have to marketplace, real growth over and they should, capital requirements and where it is best to put our capital, assets that are both international or as well in las vegas to a certain extent, what is the best use of our capital? when you think about a couple of our markets, we question, who challenges the going to be growth here, what are the capital requirements and how are we best service? in a couple instances, we probably will do something with this. time will tell. sonali: when you look at the excess cash you've reported, about $1.2 billion, it raises the question would you consider acquisitions at this, particularly when it comes to expanding in your digital presence online sports betting? >> i think less so. we are more interested in new jurisdictions that have real growth.

we are building in japan and that will take a great deal of our cash. we see that as the horizon. i know you know our partnership your domestically, we've invested a great deal of time, energy had money and will continue to do so internationally our real vegas acquisition. we now have a content company that helps us provide content. we are looking for other bolt on that would make it makes sense. we are very interested in live dealer, a proposition we like to motivate here from las vegas and broadcast to the rest of the world. we think it could be meaningful over time. so we're going to continue to invest in that space and relatively acidly, but realizing those are not massive capital allocations. they are more structurally getting the distance rate for long-term growth. sonali: we don't have much time left but we haven't even talked about china and we have to talk about what is going on where you've recently gained share. a lot of people got excited to see those details this morning. what do you attribute those gains to?

is that just the overall pie growing, recovery still going on? are you actively taking share of that market? >> i think we are actively taking share. we came into the pandemic with about 8% were 9% of the market. we've been aggressive in the context of what we've done to the properties, what we've done to the sales floor and the layout, how we approached a new era without jumping out. we had offices all over the globe, most notably in the far east. so our goal to leverage into our own networks in their own systems directly and understand the wants, needs and desires is somewhat unique and it is not you can see the results, obviously. over three and a million dollars in cash flow which is an all-time record, and we believe we can sustain this record. sonali: we thank you so much for your time on a busy business day. coming up next we are going to

talk about blackstone forging close ties with insurance firm as it marches forward in a $1 trillion push. more on the details of that next in today's "wall street week." stick with us, this is bloomberg. ♪ ♪ ♪

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fund that was focused on liquid credit and credit across the spectrum, and they did really well. since then they've branched out into other strategies. the news that we have today, not that surprising. if you want to outperform in public credit markets, you need to be nimble. you can walk around with way to many assets and not find the right places to deploy them. this is the second time in three years they are returning assets to that fund. that is par for the course for them, you could say. the most interesting aspect is the expansion into other part of the business. the one point $6 billion private credit fundraising is interesting. yes, private credit is a craze and everyone wants to talk about it right now but by the credit on raising will not continue unabated. first quarter it was less than anything we've seen since 2020. in that environment, that is a decent achievement. sonali: we should also talk

about blackstone. you have small, nimble diameter but then you have credit behemoth blackstone that is trying to get the $1 trillion in assets strategy. you cover this so closely threat your career. how is the new blackstone credit different from the old one it used to be? >> we could keep going on about that. you'll blackstone credit that we knew of the gsl vein, yes, they built a fully functional credit shop but we really knew them percent of the sharp, ample tactics in credit. you will remember all the clever trades, whether it is that spanish casino company, the gaming company, the real estate company where they did a lot of fun stuff. this is a much more state version that is focused on scale and using that scale to complete advantage. sonali: it is more boring for reporters like us but i'm sure much better for investors in some ways in this environment. thank you's a very much for

covering it all for us. that does it for "bloomberg markets" today. stick with us through the close. this is bloomberg.

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>> from the world of politics to the world of business, this is balance of power. ♪ ♪