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CNBC Excerpts: Blackstone Chairman and CEO Steve Schwarzman and Hayman Capital Management Managing Partner Kyle Bass Speak with CNBC’s David Faber Today

WHEN: Today, Tuesday, May 3rd

WHERE: CNBC's Business Day programming

Following are excerpts from the unofficial transcripts of CNBC interviews with Blackstone Chairman and CEO Steve Schwarzman and Hayman Capital Management Managing Partner Kyle Bass with CNBC's David Faber today, Tuesday, May 3rd. Following are links to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000514661, http://video.cnbc.com/gallery/?video=3000514662, http://video.cnbc.com/gallery/?video=3000514664 and http://video.cnbc.com/gallery/?video=3000513582.

All references must be sourced to CNBC.

Steve Schwarzman, Blackstone Chairman and CEO:

Schwarzman on World Markets

Europe is stable, probably one percent growth. U.S. if you forget the first quarter, because it's been wrong tragically the last several years, U.S. is probably around two percent. That's not exciting, but it's good enough. And it's really the emerging markets that have pulled down growth rates pretty significantly and some of that is the commodities super cycle. Some of it has to do with less investment going in because the currencies have gotten so weak that you lose money before you start. But some of that will recover.

Schwarzman on China

China has been successful for us in the real estate business. And we're in the shopping center business. And to just give you an idea of how depressed China is, we're only experiencing same store growth of 10% a year. Now that's down from 15, but same store sales growth of 10% would be pretty phenomenal any place else in the world.

Schwarzman on Shorts

There was a concentration of those short positions. When the markets rallied, everything went up. And some of these shorts had a technical factor where so many people were short a specific name, for example, that when they tried to cover they drove up the amount of the stock price because there was so little stock to buy. And they were competing to just buy the stock of a not so good company which then looked like it was outperforming the market by 2, 3, and 4 times. So that should normalize.

Schwarzman on Flat Tax

It tends to work all over the world. So one should look empirically and we have a tax code that's got so many pages nobody can figure it out. And what happens when you get simple numbers – whether it's 10% on the bottom, 20% on the top, you get rid of all deductions. Just make life simpler. It has a sense of working. And you have a safety net on the bottom. So that nobody really gets hurt.

Schwarzman on the World Slowing

Steve Schwarzman: There will be significant debt money. It's a little constrained at the moment. Some from a regulatory perspective, some from pricing. But these things wax and wane. You'll be seeing larger things are certainly possible. And it also depends how long this cycle is going to last.

David Faber: Alright how long is this cycle going to last?

Schwarzman: Longer than you think.

Faber: Why?

Schwarzman: Rates are very low all over the world. World is slowing a bit.

Kyle Bass, Hayman Capital Management Managing Partner:

Bass on Yellen

They want everyone to focus on the new economy when the banking system's loans are all lent to the old economy. So they still have to deal with that. And so I think that the thing that has changed in the last 6 to 8 weeks is you had the G20 meeting in Shanghai where Yellen decided to go from hawkish to kind of uber bearish – or uber dovish, sorry. Moving from a hawk to a dove really weakened the dollar visa a vis all the rest of the currencies around the world. So it bought China some more time.

Bass on Reserves

Until China, the sovereign reveals the composition of their FX reserves, it's all conjecture anyway. So it's actually not even worth spending time on. I'm opinionated that we're right until they prove us wrong.

Bass on New Economy

When you go to a service based economy, whether you look at JD.com or you look at Alibaba, those are not let's say jobs intensive businesses. You're going from an economy where you had to come up with 20 million new jobs a year to almost break even and keep the current administration in place, to a new economy that's not capital intensive or jobs intensive and its growing very quickly, but what does it do for the nation where your trying to pull everyone out of poverty? Again, there are syntax errors in these views in my opinion.

Bass on Japan

I fear that they are going to have to go into some sort of jubilee where the central bank just forgives the debt that they own and then I don't know what happens to the yield curve then, but the unconventional policies are not working so they are going to have to go to unconventional unconventional policies next. And I don't know where that takes them.a

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