To stay after brexit. Haidi send in Senate Republicans launching a new health care bill. Anywhere. Uyers chinas most acquisitive dealmakers under scrutiny after 2016 overseas spending. Dont miss some of the big interviews coming up. We will talk to hong kongs incoming chief executive, carrie lam 10 minutes from now. Later, we will be joined by David Rubenstein, Carlyle Groups chief executive. Lets start off with the look at some of these companies doing a lot of business are broad, particularly last year. It got the attention of regulators. Lets bring up this chart and see what the reaction was by hna , fosun, and wanda. 10 billion of overseas acquisitions. Toulators stepping up scrutiny of these prolific buyers. Will there be any sanctions impose . Some people suggesting they may well be. The selloff of some of these Companies Taking place. On thursday. We have that and lots more as we limp towards the end of the trading week. Thats right. If you look at those four companies, accounting for half of that 310 billion in out m a. Him in we are 30 minutes away from the open in china and hong kong, quite a bit of downside from these big conglomerates. Singapore, taiwan, and malaysia coming on line for the friday fray, if you will. Happy friday. Asian markets are limping towards the end of this week, but the crotch could be that tech rebound helping Global Equities stay near record highs. It is a mixed picture in asia. Apanese stocks fluctuating elsewhere, the kiwi looking softer, down. 1 . This after thursdays gains. Said the kiwi outlook is looking neutral to mildly bearish. Societe generale are liking the kiwi, saying the slowmoving Central Banks are keeping the hunt for yields alive. Aussie is looking steady as bond yields are sliding in australia. Ex highyield emerging for space over the g20 currencies. And the snapdeal headed for ringgit headed for its first weekly loss. Some technicals are indicating a move lower, 359, the msci gauge tested the 55 day moving average, the line in green, and now it is eyeing the 100 day line, the line in red. That lead line is indicating more sharp deterioration in sentiment, dropping to the lowest since january. We do have another technical right here in blue, potential upside, but in emerging market assets looking to remain attractive given lower inflation and the Global Outlook intact. Had then onshares the hunt for a white knight as it seeks to restore confidence. Up 16 to date as one investor thinks noble could be just right. Goldilocks be based investment has boosted its stake. Abu dhabi apple delly noble shares have rallied 40 this week. 72 ,s are still down about now popping on the back of the goldilocks stake. A little risk bite, but not even close to making up those losses for noble group this year. Lets get you caught up to date with first word news. Paul theresa may has pledged that eu citizens in britain can stay there after brexit. She laid out her position at a summit of eu leaders, saying she does not want to break up families or deport anyone. Reject maysely to insistence that eu citizens be adjudicated by british judges, saying that must be the role of the European Court of justice. I hope there might be some room to think again about the Brexit Process and to prevent and over the cliff scenario, a no deal scenario come a which i think well have a big impact on oureconomy in the u k and economies, and it is still room to discuss the situation. Trump has ended weeks of speculation triggered by himself by saying he did not tape james comey at the white house. He used twitter to say he did not make any such recordings. The president raise the issue when soon after firing james comey he tweeted, he had better hope there are no tapes before he starts leaking to the press. The biggest banks in the u. S. Have cleared the first hurdle and the feds latest stress tests, indicating they are able to withstand future shocks. All beat the minimum threshold, although Morgan Stanley brought up the rear for the second year running. The tests show how the banks would handle hypothetical turmoil. North korea is said to have carried out another engine test for a potential icbm. In the city where previous tests had taken place. Earlier this month, pyongyang said it was not far away from developing the technology to deliver a missile to the u. S. Mainland. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Rishaad some of chinas most acquisitive foreign dealmakers are in the spotlight with regulators asking banks to report their exposure after last years takeovers. Lets start off with what are the regulator said to be looking at . Details are thin. Rishaad you can say that again. Clear that they want to look at the overseas loan exposures of these companies that have been at the forefront of this outbound takeover boom. What clear to deduce from is going on that the main issue is how under spotlight aggressive they have 10 in purchasing have been in purchasing companies abroad and systemic risks upstream and downstream. Rishaad you mentioned aggressiveness. 310 billion worth of foreign acquisitions. That doesnt include the failed ones as well that would lift that number even more. That is why it is these companies, is it . We are able to tell in the context of how anban gs chairman had been detained for questioning, and anbang has been one of the most prolific acquirers of Companies Worldwide , and that in conjunction with the fact that these particular companies are set to be targeted give a very clear signal that regulators are taking this very seriously and want to know what more look beneath these loan portfolios. Haidi we are seeing the reaction on the markets, but what are the longerterm implications of this if it is a crackdown . Mentioned, we have party scene deal so far this year slump by a must 60 . If this continues, we will see even more deals fall through for these players not initiating any deal activity. In the case of some of these companies, especially anbang, you have seen they have pulled out of deals or some deals have been put on ice. We can expect more of that Going Forward if this pressure from regulators continues to persist. Will be watching this story very closely indeed and some of these related stocks to see if there is further downside. Ahead, what asian investors want these days. We put that to David Rubenstein live at the Wharton Global Forum in hong kong. Challengesng kong are mounting it we speak live to carrie lam about how she plans to tackle them. She is still addressing the Wharton Global Forum. We will talk to her directly afterwards. This is bloomberg. Haidi this is Bloomberg Markets asia. Inhaad i am Rishaad Salamat hong kong. Haidi i am haidi lun in sydney. Financial doubled as it expanded into Wealth Management and overseas markets, pretax profit jumping 86 . Ant financial is chinas biggest financial operation, controlling half of the 5 trillion mobile payments market. Rishaad flipkart planned rival of snapdeal has hit a snag. Objections to special payments cofounders andal backers. It is seen as an attempt to win over larger investors. Qatar airways has made a surprise bid for a stake in american airlines. It wants to buy 10 , putting it on par with berkshire hathaway. Gulf rivals were accused of enjoying unfair government subsidies and comes weeks after President Trump accused doha of supporting terrorism. Rishaad theresa may has taken a big step towards brexit as she presented a step to protect the rights of eu citizens living in the u. K. , but European Union leaders in brussels gave it a mixed response. Kathleen hays has more now. What has theresa may proposed here . What has been the mixed response so far . So far what she has done is take an important step, because there are nearly 3 million citizens of the eu living in the u. K. , and there is another 1. 5 million or 2 million brits they are the eu, so wondering how this will be resolved. Whatts to the heart of people call divorce issues, divide the kids, who gets what, so this is something that has to be tackled before they move on to bigger issues. It is not clear on a cut off date. It is all about how long you have lived in the u. K. The cutoff date for determining whether you are eligible to stay without too much difficulty is somewhere after article 50 was triggered on march 29, and before the u. K. Actually exits from the eu. U. K. Fivelived in the years, you get settled status. If you live to their less than five years, you have to live years,ntil you get five then apply later for the settled status. What if you moved to the u. K. After the cutoff date is determined or starts . You get a grace. Period. Grace statusu get settled colleague at pension come Education Rights come all of that. Angela merkel says it is a good start, but it is leaving open the question of who would adjudicate the right of eu citizens living in the u. K. The eu wants the court of justice to adjudicate. The u. K. May be pushing for the European Courts to do that. Around, issue swirling does the u. K. Stay in the customs union, do they want to. If they do stay, they dont set up a hard border between the republican ireland and Northern Ireland and creates problems for the irish in one of those groups that theresa may is trying to form her new coalition with, so it gets complicated. Emmanuel macron said i would note want to get too involved in brexit because this summit is about larger european issues as well. Haidi the other issues, of which there are many . Anlets start with interesting story that has to do with the europe first eu trade rift that has emerged. Take a look at this chart. It tells the story on Foreign Direct Investment. Look at china, Foreign Direct Investment in the eu has surge. It creates jobs, but European Companies want the same ability to invest in china, and that orange line tells you this story. The reciprocity is not there yet. The vice chair of kissinger negotiate helped to and manage Richard Nixons first. Ntry into china years ago he said that security is at the top of the list of issues that the european leaders are going to be talking about in this summit. There are a lot of uncertainties about internal security in the eu and how to deal with the United States as a potentially less reliable out like him and how to deal with president putins interference in elections throughout the eu and in virtually every country, trying to weaken eu governments, the cohesion of the eu, weaken nato. It is clear that there is a russian strategy. On day one of this twoday ,ummit in brussels, donald tusk one of the specific decisions he announces that the eu would extend russia sanctions for another six months. Those are the sanctions are put in place after the annexation of crimea. A big issue ifis you are in Central Europe or Eastern Europe and one the entire eq is looking at. Brexit is probably the biggest deal certainly for the u. K. , but this is where they are on day one, and we will see how it proceeds in the weeks of brexit negotiations ahead. Thank you so much for that. Kathleen hays joining us from carrie lam will be sworn in next week on the 20th anniversary of the territories returned to chinese rule. Lets take you to the wharton summit where betty liu is standing by for an exclusive interview. Lots of challenges facing carrie lam. Take it away. There are. We will go through all of that in the next few moments. I am pleased to welcome carrie lam, the incoming chief executive of hong kong. Thank you for joining us. Watching your speech a few eloquently laid out hong kongs place in this region and also the world. You are just about a week away from being sworn in as the next chief executive, so how do you feel . I feel excited. After all, this position of the chief executive is an extremely important and rather unique position. The basic law that is our constitution, the chief executive is elected by an election committee, appointed by the central group, and he or she is required to be accountable to hong kong and the central peoples government, so i am very excited to take up this position, but also feeling a huge challenge. I am match in. What will be your first orders of business once you are in office . There are quite a lot i have rdf accomplished a have already accomplished a few and announcing my officials. They have to be nominated by me and appointed by the central peoples government. I have also formed and announced my senior advisers, members of the executive council. That was also done. The next thing is to prepare for the inauguration on the first of july. Thereafter, we will get right to business. I have to go before the Legislative Council to talk about my vision, my plan. I will beestingly, able to roll out a package on education measures. You mentioned that before in some interviews about how important it is to have Young Children get the proper education and rise up within hong kong and see hong kong as an opportunity. There are lots of Foreign Investors who come and gather at this forum. Top of mind when you think about hong kong, how does this special Administrative Region stay relevant in the face of a fastgrowing china where you have cities that have a clips to the growth of hong kong . How does it stay relevant . Hong kong has been very relevant to the opening up and development of the chinese economy, and we are now even more relevant because there are major initiatives and Economic Development that have been rolled out by our nation. Positionvery unique under one country, two systems, strengths, and advantages, we will not only benefit from this opening up, we will be able to contribute to these major initiatives because we are one of the Worlds InternationalFinancial Centers. We have years of experience in working with the outside world. , andve the rule of law protection of intellectual Property Rights them a so i feel the relevance is becoming even more important. Will hong kong remain one of the premier Financial Hubs of the next 20 years . Definitely. I confident. How do you ensure that . Financial Services Account you lookf gdp, and if around, the entire country, we will remain as a very important International Financial center. For example, in the internationalization of the renminbi, we are the biggest alsoore renminbi, and we provide very important platform for Mainland Companies to go out to the world using hong kong for raising funds, and also for investment. There are always questions about how independent hong kong can remain and whether beijing has hardened their stance on hong kong, particularly over independent voices here. Has aging hard in its stance on hong kong at all . I dont think so. Independence,bout that is a sensitive term. Law,reamble to the basic the major fundamentals of one country, two systems, is hong kong is an inalienable part of the republic of china, but we do enjoy a high degree of autonomy provided under the basic law. We have beens, operating very successfully under one country, two systems, preserving hong kongs unique system, but that does that mean we need not take care in ensuring a relationship with the central authorities is in accordance with the basic law. People now seem to be making all sorts of allegations about of the grip of central authorities of hong kong. Just give us the evidence. Ts leade the incidenc people to that allegation . How can you reassure people who may come in with this mindset . How do you reassure them that hong kong does remain a, and the rule of law is respected in hong kong . Actions speak louder than words. If you look at hong kongs strengths, one is the rule of law. The other is the independent judiciary. Hong kong ranks very high internationally on both. On the judicial independence, there was a report coming out from the World Economic forum last year ranking hundred 38 economies on judicial independence. Hong kong came number eight, first in a share, even ahead of the united kingdom, where we inherited the common law system, louder thann speaks the words, but as the chief executive of the Hong Kong Special ministry for the region, if i notice there are worries, fears, then it is my duty to speak up and i sure people. Haidi what about the National Security legislation that has hung over many legislation that administrations in hong kong. It is a constitutional requirement for hong kong to an local legislation to prevent treason and sedition and so on. No one can dispute the need for that sort of protection and safeguards. The question lies in what sort of legislation we will an act that would strike the needed balance and a sure people of the freedoms and rights that they will continue to enjoy, so i said in a manifesto that within my term of five years that i will work fast to create the necessary environment that will be conducive to a rational debate on the needed legislation. How do you make housing prices affordable here and hong kong . U. S. Asa problem in the well with property prices rising. We have seen that around the world. Many people are left behind, so how do you make it more affordable here . That will be a main priority in the external government. The ultimate solution is to provide more land and build more housing, so it is a supply strategy, but since supply takes land building houses and seems to be controversial, so my need tostrategy is we take stock of what we already have in hong kong and try to theseze the use of all things. For example, i got an Interesting Initiative of introducing a pilot that will allow owners of Home Ownership schemes which were subsidized and sold to people in hong kong, that they could be set out to the market without paying the land premium. Originally when they bought, they were subsidized. We want to gain some profit out of that having the subsidized flat, you need to share profits by paying a land premium, but that is a major hurdle for some moderate income earners to pay a hefty premium. Toant to try to pilot release more units into the markets, then i also have an initiative which is pretty welcome by the people, to build starter homes. Nowadays, you mention about affordability. That is a big issue. Even for a professional couple, it is difficult to buy, so i said i would try my best to give people a chance to buy a affordable starter homes. Before we go, the greater bay , which is based on other tech hubs. What you take away from what is going on in Silicon Valley and had you will apply that to this initiative . Andn respect of innovation technology, that is an area where hong kong has to catchup. In some sense it is moving so fast. Are in th the direction must be cooperation. Hong kong, shinji in, and maybe even one or two cities in the greater bay area, which are very strong in manufacturing, so you can imagine this relationship of hong kong doing the research, it doing the prototype, and needs massive commercialization of manufacturing. This could happen in one of the cities in the greater pearl area. The greater cooperation in this bay economy will go beyond innovation and technology. AreFinancial Services, we the leading Financial Services center and this hub. Secondly, our port is coming are sobit because we expensive. Other ports are growing, but we could turn ourselves into the highvalue maritime services, insurers, registration. If you were to say hong kong is going to be one thing in the next 20 years, a Financial Hub . Technology . What is it . I am a bit ambitious. I want it all. We will continue to be a Financial Services have and at the same time transform itself into a technological and cultural hub. We want it all we want it all. Thank you so much. That was carrie lam. Rish, back to you. Rishaad thanks a lot for that. Carrie lam talking about, well, housing and education being her top priorities. On top of that, seeing hong kong as a major Financial Center in 20 years time. As we saw carrie lam speak to betty, the hang seng up. 3 , halting at three date drop. The csi 300 just marginally higher. We do have the yuan falling for a seventh straight day, a long losing streak for that currency. I want to focus on hong kong given that we just have the hong kong chief executive on the show. Asked her about housing prices, the affordability issue, when it comes to hong kong. Carrie lam says the solution is on the supply side. Real estate stocks up point 3 following those comments. The government will sell for pieces of land in the third quarter, so up part of the Bigger Picture when it comes to opening up supply of land in hong kong. We have financials leading gains on the hang seng, up. 5 as we have hong kong vying with the likes of singapore to remain a major financial have. Some potential movers in hong kong as chinas most Acquisitive Companies are in the limelight. Chinese regulators seeking info , asted to wanda, anbang well as the owner of the ac milan soccer team, sending these chairs sliding. Wanda film currently unchanged, but did you up the most since january, now up. 1 after resuming trade this morning. Wanda film says it is planning to boost holdings in the three month starting to buy one billion yuan in shares. It is worth noting that chinese 60 around m a has dropped as the government clamps down on outflows. Enn other early movers, energy, China Resources up 11 , and china unicom gaining, up 2. 3 . Shanghai at that is a look at some of the early movers in china and hong kong. So much for you that. Lets get first word news with paul allen. Mexicos central bank has raised borrowing costs for a seventh straight time, the most hawkish Monetary Authority in the g20 extended its hiking cycle. It is said the decision is congruent with official convergence and inflation towards its 3 target. Analysts a what that means is the hiking cycle is over. We believe the actions we have taken with information we have up to now should be sufficient to take us to our objective towards the in the of 2018. Paul Senate Republicans issued a new health care will which was immediately attacked by senior party figures. It includes sharp cuts to medicaid and other reductions in subsidies and tax cuts for the wealthy. Pharma ands Life Sciences and biotechs index all its biggest gains. Indian Prime MinisterNarendra Modi heads to washington, hoping to persuade President Trump to extend a program that allows i. T. Companies to send a to america. He will attempt to explain how the scheme has benefited both countries, boosting innovation and competitiveness. Tesla says it is working with the Shanghai City government to make cars in china and avoid import taxes. Most production will remain in the u. S. , the tesla hoax manufacturing in china will boost its presence in the rapidly growing electric car market there. The 25 let tesla avoid import tariff that makes its cars more expensive than local rivals. It hopes to have a deal by year in the. By yearend. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Rishaad all 34 of the biggest banks operating in the United States have passed the first phase of the feds annual stress test. Lets get the details from new york and get this from remy inocencio. All 34 ofdicted come the biggest banks pass to the first phase of the feds annual stress test. The banks the fed deemed as systemically important all exceeded the minimum capital requirement. Four banks and yellow came within two Percentage Points of that 3 ratio. Morgan stanley was the worst of its peers for the second year and a rope. Jerome powell said this years results show that even during a severe recession that our large banks would remain wellcapitalized. The Economic Disaster scenario painted is akin to the great recession. Equity prices would lose half of their value and unemployment 10 . Sort to as for foreign banks operating in the u. S. , they did better than their u. S. Counterparts. They were above the minimum by more than two Percentage Points. Deutsche bank trust past with the most flying colors with the leverage ratio of 13. 5 . To june 28,ahead phase two, the comprehensive capital analysis review. Thank investors will find out whether and how much more or how much less they can return in dividends as well as buybacks. Expectations of Dividend Growth there. Exclusivelye hear from David Rubenstein about Carlyle Groups plans for asia from the wharton global form in hong kong. This is bloomberg. The Indian Government is expected to discuss its flag carriers future next week. On named official said the council of ministers will decide whether a stake in air india should be sold. Group said it would be interested. Nomura has picked frankfurt as its european headquarters. It will transfer 100 people from london. Nomura it employs 3000 people in london. Bed bath and beyond , a surpriseer hours decline in samestore sales, down 2 for the first quarter. It had been predicting a small gain. Profit also falling shy of projections. The company has also been spreading spending more on shipping, coupons, and advertising. Thes get back to 50th wharton global form in hong kong, where betty liu is joined by the head of one of the Worlds Largest private equity outfits, Carlyle Group. Thats right. Im here with David Rubenstein, the cofounder of the Carlyle Group and host of the David Rubenstein show on bloomberg. It is a modestly named show. You are here 24 hours. Thats right. That is a very short trip. That doesnt signal the small opportunities. You are here quite often. I typically come here 68 times a year. Billion ofested 17 equity since 1997 in 210 transactions. Worlds 60 of the population and 30 of gdp, so this is where most of the growth in the world will be. Youve mentioned you have been here since 1997, but hasnt picked up to you in your view in the last few years . When i came here in 1997, the only places you could do minority equity were hong kong, singapore, taiwan, some korea. There was no china and india. Now china has opened up. We have invested 7 billion. You could not do that in 1997. What is interesting to you right now . What are the areas where you are seeing the most growth . India, and china and japan is important to us. We have been there since 2000. We are looking at companies in china heavily involved in the growing middle class, things that service the middle class, not so much the export economy. Health care, Financial Services, consumer retail. The entrepreneurial sector in china is growing at a high rate. The sme sector is growing at 2 or 3 , but the entrepreneurial sector is growing at 15 to 18 per annum. Valuations . In asia by 20 er for cognitive assets as the United States. Onlyairy is that asia has seemed expensive, but it is cheaper than the United States right now, which is very expensive. There is less competition i imagined as well. Much less competition. In asia, private equity has the penetration of 16 or 17 of the United States. 1 7 of the United States. China is very entrepreneurial. 10 in china isy an entrepreneur by the of the united nations, higher than any other country in the world. There is a lot of welcoming of private capital. Historically india has been more complicated. We have made it investments and profits there. Now we are making more investments in india and we believe the Indian Government is more receptive to foreign capital coming in. Why do you think that is . They see what is happening in china. It has created a local private equity class. In india, you dont have as large a private equity class indigenous. You mentioned you are buying into this domestic demand story, the rising middle class in china. In india, it is more about what . The indian middle class is 250 million people, fairly big. A gigantic middle class, and as they get wealthier, they want it or health care, better Financial Services, a variety of things in retail and consumer areas. Do you find there is an education process at all because private equity is not as well developed as it is in the u. S. Or europe. Do you find this is an education process as well. You have to explain to people what private equity is. Any nine states, you have to explain it to people as well. Members of congress dont understand it as well as they hope, but they are getting better. Some people in the United States dont know what private equity is all about. The 1980s, it is where we did Different Things than we do now. The same thing for india and china. They realize we are adding value, creating jobs, and doing good things for the economy. What is the story you tell about carlisle here . Global firm, one of the largest, and we can deploy resources to help companies in china and india and add value to the companies. Addo a lot of things to value, improve management, and train them. It is a story where our investors are very happy. We have a lot of investor interest in asia. That is because why . Prices are lower than the United States and europe. We have seen and normans growth rates. The u. S. Is growing at 1. 5 . 6. 5 , sogrowing at that is a pretty good growth rate. India is growing at 7 or more. It is pretty attractive. Lam heret had carrie talking about how she firmly believes hong kong is going to remain the premier financial held in the next 20 years as it has been in the last 20. Do you believe it . If she did not say that, i would be surprised. , dont know enough to know except that every time someone predicted hong kong is not as it is, they have been wrong. I first came to hong kong in 1970. There werent as many highrises then. I would any money then, have made a lot of money if i invested in real estate. Even in 1997, you would have done extremely well. Anyone selling hong kong short is making a mistake. Stay with us. We will take a brief commercial break and be right back to talk more about private equity. We will be back right here. Welcome back. We are live from the wharton 50th annual global form with Carlyle Groups David Rubenstein for an exclusive interview. I know you will be on a panel in a few moments. I imagine people will ask you about what you think is going on in the United States. Where is the economy . Is the fed on the wrong path . The u. S. Economy is slowing a little bit. It is not going quite at the rate people thought six months ago. It was expected that economy year. Grow 2. 5 this i think the fed will increase Interest Rates. I think the economy as good, but not as strong as people would like. There is some uncertainty about taxco legislation and health care legislation. Do you think it will go through . It will probably drag into next year before it happens, and i think that slowed the market down. The market thought the president would be able to get these hills through, but it is taking more time than anybody thought it would take. Have we hit the trump trade . Sure, but say for many people say it would take longer to get some of the things he wanted to get done to get done, and i think he recognizes that as well. Do think the fed is making a mistake by continuing to hike . The fed is increasing Interest Rates by modest amounts. And i worked at the white house, we had Interest Rates above 15 . Im not bragging about that. Are relatively low. Even if you go up 50 basis points for the year, you still have a lopez, so i dont think it is a big problem. Inwe have economic problems the United States, it is probably because we have fewer people in the workforce, an aging population, large entitlement programs, Infrastructure Spending, those of the things that are slowing the u. S. Growth rate. Issuethere any particular you are waiting for that will make a difference for you and your business . Knowing that tax rates will be important. The Infrastructure Spending program is important as well. We need in norm us infrastructure in the United States. The roads have potholes everywhere you go, so we need infrastructure. When that bill goes through congress, that will be helpful. The private sector will take a bigger role. You talked to a lot of ceos in your job. How do they feel about the economy . How do you feel about it . This confidence still high . Confidence is high, but people are not saying this is the greatest time we have seen. What people want in the Business World is certainty. Dont know what the tax rules will be, the health care rules will be come all the deregulatory policy, infrastructure. The president is working on these, but it is taking longer than he would like. I think once we know these policies, you will see more confidence. Does it stop you from doing business . No, it just means you have to adjust the prices you pay. You have to adjust the way you react to where the policies are now. How do you adjust to the way President Trump leading the country and the economy . Clearly he is learning the job much more than he thought he would the. I worked in the white house with president carter, and president takes a while before you adapt. President trump has been in office a short time compared to the time of his first term. It will take a while. He is learning the ropes. He would admit that to anybody. We have talked to you about how it would be nice for the public to participate more in the private equity world, and that has not happened. Why do think that is . Because i think there have been regulatory issues. They are moving in the direction ,f getting the public nonaccredited, to participate in private equity. Right now the wealthy people have the right to get into private equity. I think that will be adjusted in some of the things the sec will do will take a lead in that effort. Great to see you. Thank you so much. David rubenstein of the Carlyle Group. Up, we hear from the threetime Pulitzer Prize winner Thomas Friedman in hong kong. This is bloomberg. Announcer from our studios in new york city, this is charlie rose. Charlie we begin this evening with politics. Republican karen handel defeated democrat jon ossoff in georges six Congressional District yesterday. It was the most expensive house race in history. It drew national attention. Many viewed it as a referendum on President Trump and his agenda. For democrats, ossoffs loss raises question about the partys tragedy and doubts about its leadership. They strengthened efforts to push an agenda forward and the pr