it is midnight at soft bank headquarters in tokyo. it's 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ double vision ♪ good friday morning. welcome to "squawk alley." i'm carl quintanilla a long with morgan brennan and jon fortt we will start with buffet and tech as berkshire buys up shares

of amazon. becky joins us from omaha. joins us with her conversation with buffett ahead of a weekend where there is a ton of subjects where they could make news. >> yes that's the thing about this weekend. berkshire is involved in so many different businesses, so many industries, and owns so many different equities that anything, basically, could come up and it could be a topic of conversation here and it can definitely make news sometimes when we catch up with warren buffett he will tell us what he is buying, what he is not buying what is interesting this time around when we talked to him is what he told us berkshire is buying but he made it clear he is not the person behind the scenes pulling the strigs on that listen in. >> i will tell you one thing you will see in the 13-f which comes out in a couple of weeks which may cause you to ask me that question in the next two weeks which is really not significant from my standpoint

one of the fellows in the office that manage money. >> todd and ted. >> todd and ted. one of them bought some amazon so it will show up on the 13-f it is not true to say that i am buying amazon. it is true to say that berkshire has bought whatever shows up there. >> you have been a fan of amazon and bezos for a long time. >> i have been a fan and an idiot for not buying i just want you to know there is no personality changes taking place here it is somebody else's. >> the fellows faud and ted would be todd coles and ted wesler they joined in 2011 and 2012 they each have a portfolio that they manage. the last they heard it was $13 billion they each were managing. it sounds like a big amount of money and would be for most managers but in the case of berkshire hathaway you are talking about an equities portfolio that totals $210 billion at last

count. not to mention the $110 billion plus that berkshire has on hand. that's a lot of money to manage. a lot of things to do. a lot of times when buffett himself doubles down on something he i will try to buy massive stakes we dent know how much of the amazon stake we will be talking about. the 13-f comes out in a couple of weeks buffett earlier this year wanted to clarify that in the 13-f it showed that berkshire hathaway was selling shares of apple. he wanted to clarify that was not him. again, that was one of the other guys in the office who decided to sell that position to buy something else when you are working with $13 billion, and they tend to have all of it invested todd and ted tend to sell something if they are going to move into something else buffett said that was not him selling shares of apple. apple came out with earnings this week. we asked him what he thought of apple's earnings

he said i don't pay that close attention to quarterly earnings, he said i don't pay close attention to berkshire's quarterly earnings we will get those numbers tomorrow tomorrow this thing kicks off. there are a lot of managers here preparing for this we see a lot of shareholders already in the surrounding areas and the hotels across the street tomorrow, 40,000 people will be here at the center waiting to hear what charlie amonger and warren buffett had to say to the crowds back to you. >> quickly, i was making a list of potential headlines we migh be looking at on monday morning. aside from apple, amazon, macro, wells, khc, oxy, succession, buybacks, what would you want to ask first? >> the first thing i asked him yesterday when i got a chance to talk to him was the objection ideal. we knew that hamd. berkshire is going to be giving $10 billion for occidental to

back up the bid for anna darko they are in a battle with chef ron, we think. we haven't heard back from chef ron yet. i asked him about that he said it took place in about an hour's time last weekend here in omaha they flew in, sat down to the terms of the deal, agreed to it and told the lawyers to get it worked out within a day's time what i didn't realize is he also said that brian moynihan of bank of america is the one who called him a week ago today to tell them they were involved in all of it and to tell him he might want to talk with the ceo of oxy. he owns a stake in bank of america as well. it is interesting how deals happen, how any of these trends happen and how everything is related because when you are involved so many different businesses you hear from a lot of places. >> interesting the way the connections work becky, we can't wait more from becky and buffett coming on monday beginning at 6:00 a.m. eastern on squawk.

we will see you then, if not before. >> that's not all. our eamon javers sitting down with the vice president of the united states earlier. he jones us now with more on the interview. >> a fascinating sit-down with the vice president this morning. i have been talking with his staff since we did the interview and getting more nuance here on what his proposal is here to get rid of the dual mandate at the fed. it is just an idea he is discussing receipt now what he would like to do is focus just on inflation rather than on unemployment the idea here being that if inflation is low, the fed should be able to just let it rip, basically, and not worry so much about employment that's the opposite of what i said earlier because of the way the conversation flowed. but his view is that if you focus just on the idea of inflation, ultimately, you can have a much higher economy for everybody and the fed has a lot more leeway. it is an idea he kicked around in congress years ago and it is

an idea he is still didn'ting today. something to watch also interesting was our conversation about herman cain and steven moore, the president's two picks for the fed who flamed out here's an answer to my question whether or not the president is simply picking the wrong people here. >> i think the president is very interested in bringing fresh ideas to the federal reserve board. i think as you see him make nominations in the future he's going to be bringing people in that will bring kind of a renewed and fresh prospect ierse that's what both of those men represented. there is a process that we go through in washington, d.c., respect steve moore's decision to withdraw. what the president is really looking for is people that understand that the dynamic approach to this economy that he has been putting into practice since the first days of this administration. >> also had the chance to ask mike pence about the china trade talks that are ongoing i asked him if we are going to see a deal signing next week

here's what he said on that one. >> we have made it clear across the board that things have to change with china, whether it be the debt diplomacy through the one belt one road policy they are advancing, whether it be freedom of navigation, particularly in the south china sea, where we have asserted america's interests there in new and in renewed ways, or whether it be domestic political enter earns confuse. all of that is a backdrop to these trade negotiations but what we want is a better relationship, a more honest and more level relationship with china across the board and president trump believes that by beginning by resetting our trading relationship, by literally bringing china up to the standard that other nations around the world live up to with regard to intellectual property and force technology transfers we will begin a process of addressing all of those issues. >> the vice president talking about beginning a he process in

terms of the negotiations with china but no hard and fast day for ening the process that's going on now in terms of the trade negotiations lower level aides have been back and forth between beijing and washington over the past couple of weeks no hard and fast deadline for this nerk to be over with and no indication of what ultimately is going to be in the deal. i asked him whether or not it's true as one report had it this this week that the president is prepared to drop his demand that chinese stop hacking american companies. he said he hadn't seen that report also not a whole lot of commitment from the vice president about where tariffs are going to be in this process, what tariffs will be in place if inside a new deal signed all of that because the negotiation is still ongoing still unclear. >> fantastic interview i want to go back to the irv you of the fed's dual mandate. >> sure and the vice president's idea of focusing just on inflation. right after your interview we had on cnbc james bullard from

the st. louis fed saying he didn't think that would actually change the fed's process that much did the vice president or his staff tell you exactly what their expectation would be, what would change if the fed's dual mandate were to change to just one thing? >> yeah. the vice president said this is not something he has discussed with the president obviously it is not at that level yet. you about it is something he kicked around since his years in congress he had legislation back in congress that would do exactly that, folk us the dual mandate just on inflation not on employment as i said earlier the idea here is that if they are just focused on inflation and you have a situation like you have now where inflation is relatively low and the economy is strong you don't necessarily have to stop cutting rates or start raising rates because ultimately the fed will have more freedom to let it rip that seems to be what the vice president is talking about, backing up the president's point that he wants to see the fed continue to cut rates at a time when the fed seems to want to

hold fast, at least stay where they are right now the vice president sort of offering d harkening back to legislation that he had on capitol hill that offers an intellectual framework for what the president is talking about here in terms of cutting rates in times when a lot of people would be surprised that you would be advocating cutting rates because the economy is doing so well. >> fascinating content great interview. what i seized on there in terms of some of the sound from the vice president was the idea that this potential trade deal with china is really essentially a first step especially when he talks about things like militarization of the south china sea. from a security and defense standpoint, certainly having i have heard within that sphere of u.s. policy, i know the vice president is also at the helm in terms of her space policies, too, this idea of the u.s. and china -- the riflery there from a national security and defense standpoint, to hear his comments, it sounds like there is a much longer term trajectory

in terms of how this administration is thinking about the relationship between the two countries. >> exactly right nobody should be under the impression that if they get a deal next week, then all of a sudden all the engs thes between the united states and china are going to evaporate right? i mean there are clearly military and diplomatic points of contention that are going to continue as you have the power diplomacy between the dhoinz and the american side. what is interesting in terms of the military in our conversation i asked the vice president whether when the u.s. administration talks about the idea of all options being on the table in venezuela, he said those options are on the table i asked him if that includes the military he said yes. i asked him if ultimately the american people would support military actions by the u.s. in venezuela. he didn't really go there on that answer but clearly the united states doesn't want to take the military option off the table when it comes to venezuela either. >> eamon javers, thank you. >> you bet. when we burn, beyond meat's

insane first day of trading. beyond expectations. up 4% today. a soft bank offering as well we will discuss the ipo rush after the break. stay with us what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

w to "squawk alley. new this morning, soft bank's vision fund is considering an ipo. that's according to the "wall street journal." we go to san francisco for more. >> he said he wants to be the warren buffett of tech so a

vision fund ipo would sort of be a bark shire hathaway but instead of utilities and insurance investors would be getting the high flying tech start-ups they wouldn't have access to because they are so private. many of these investments made just over the last two years by cutting some very large checks, the amounts of which are unprecedented in the start-up landscape. nearly $8 billion in uber. $10 billion in webber. hundreds of millions of dollars in other companies the fund tore through the $100 billion it raised two years ago. the first fund is made up of capital from your asia and abu dhabi. massa told david faber there has

already been a lot of inbound interest for a second fund. >> lots of interest that i am receiving that they would like to invest into our next investments. >> you think you can do it again, raise another $100 billion fund >> i wouldn't say what is the size, but i am getting a lot of inbound call that they would like to come into your new investment, into us. >> now n the past, masa said he couldn't just do it again, but he was planning on raising these kinds of funds every two or three years. the first one is already the biggest tech fund in history guys >> deirdre, thanks have you got something >> i do. i have a quick question. so many i guess uncertainties and question marks around something like this moving forward. but how much of it would hinge on a deal actually going through between sprint and t-mobile? >> an ipo? well, if you are talking about a vision fund ipo that would be a

way of sort of this pure play in the vision fund. there is already a way to play the vision fund. but you have to get in the conglomerate and they spun off the teleco unit that is fairly separated are you talking about more regulation inside the u.s., something like that happening if they wanted to list here >> i am talking about the financials of the companies as it is trying to go public. the fact there are high debt levels and you have a pending sprint merger with t-mobile that's being watched closely. >> i get it. that's a really good question. that would be sort of incentive to maybe break off the vision fund and make it sort of like a berkshire hathaway of technology so you can get the pure plays and you wouldn't have to worry about what the conglomerate is doing so you wouldn't have to worry about what is happening with sprint. >> we will see if it is actually berkshire like. >> it hasn't returned anything yet. that's the point. >> we are only week away from

uber's first trade 16 companies going to ipo in the first ten days of this month including beyond meat which surg surged 170% in its first day of trading. we have guests paul, let's get a sentiment check from you after zoom, pinterest, after beyond meat, where are we in terms of froth. >> if you look at each one of the companies, zoom, pinterest, beyond meat, each one of them had incredible viral growth because the products are beloved. when you see these kinds of products coming to market i am not particularly worried about them because i think they have lots of head room. it is when i see things thaer that are weaker when they come into the marketplace not surging with strength but sort of

falling off on their growth those are the ones i worry about more because each of those are category winners. >> would you put uber in that category >> absolutely. if you look at uber, uber is on the way to, if not putting out a business five different categories, large categories, within transportation, cabs, rental cars, other different pieces of that marketplace you see very, very large mark opportunity. they are clearly the number one player i think they have got a lot of head room ahead of them. >> joel, to me the idea of a soft bank ipo is the first sign of a tech stock apocalypse this is a guy who has been inflating the values of these start-ups for years to the point where the whole market is skewed now he wants to sell that to investors? i mean, what would that mean what would that do if that were to actually happen >> you kind of hit the nail on the head

it is a flashlight thing i don't know if it is yellow or red. but you have got to question the irony of a guy trying to ipo a fund that essentially went and scooped up a lot of these companies that would have ipo'd a long time ago if he hadn't bought them. i mean i guess we will see if this actually comes about. you know, what the market truly -- you know, what the market values, some of his investments, and maybe they have gone pear shaped a little bit. paul hit the nail on the head. there have been good companies that debuted in april, pinterest, zoom, ju mia tech check check the then you look at years past and companies were hammered snap chat had a tough time blue apron we will see what the others in the pipeline bring. >> certainly we could take it on a case by case basis and talk about the strong traction of the

products of some of the companies going public but when you consider soft bank considering a ipo is this a top, a market top in terms of the ipo pipeline and what's coming out and what it means for the coming years in the market? >> i actually have to completely disagree with that line of reasoning. when i see something like a soft bank vision fund coming out and thinking about an ipo, it is simply an indication of how the world of venture and private equity has evolved over the last 15 or 20 years we talked about it before where when i made the of moey something ventured it was about chronicling dreamers, people inventing new marketplaces now moving forward we are talking about disruptors, people going into the largest markets in the world, transportation, uber, media with netflix and so forth. we are seeing different things the mention of these companies, one, they are bigger and healthier as they come out and two they are going after much

larger market opportunities. i think vision by being able to pour into these they are showing a lot of vision, to be honest. they have invented effectively a new category at the top of the stack in venture where they can come in and be the capper that anoipts the winner of a private company. there are after effects in terms of the impact to the other companies in the says when they don't get the vision fund investment. >> yeah. i think we all understand, joel, why you want to let mom and pop have a crack at these companies in a world where they otherwise would have been private. but there's also meant to be protections in there to keep them from companies that maybe the retail unfocused investors shouldn't be playing how do we balance that >> i will leave that to the regulators how it is going to work out i do disagree, again, because i do think for visionary, obviously a genius like masa

son, extremely successful, has had some huge bets i wonder the aim, what's the kind of thinking going after the retail market with some of his investment we all know he has been paying through the roof over the past several years. arm holdings is one of his first investments in the global tech space. disrupted the economy at the time smart phone market has declined since. that's a reflection on his performance. i am raising the question, is this the right kind of investment for the retail. we will see pension funds, insurance companies, especially when some of the bigger holdings where going to be public as well. >> all right joel, paul, thanks for being with us. >> thank you >> thank you. >> after the break, tableau software out with some very strong growth numbers, particularly in its subscription business the ceo joins us next. stay with us $4.95. delivery drones or the latest phones.

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i'm sue herera here is your cnbc news update at this hour. the strongest cyclone to hid india in 20 years made land fall today on the country's east coast. two people have been reported killed by the winds and the downpours. more than one million people had been evacuated in advance of the storm. a new pentagon report says the chinese military is using espionage to steal cutting edge technology from the united states methods include targeted foreign direct investment, cyber theft, and the exploitation of private chinese national's access to these technologies the report says china has already acquired sensitive dual use or military-grade equipment. general motors is recalling 368,000 medium and heavy-duty trucks because the engine blocks can hatch fire no reports of injuries or fatalities according to the company.

and peter mayhew, the actor who played chewbacca in the original "star wars" franchise has died his family reported it late yesterday. the 7'2" actor played chewbacca in the original three movies as well as episode three. he was 74 years old. i should clarify, when he was in his costume, he was seven feet that's the news update at this hour guys i will send it back downtown to you. jon. >> shares of tableau moving higher after beating on earnings missing revenue expectations but for a good reason. the subscription business surging. the stock up around 40% over the past 12 months and 5% just this morning. joining us now for a cnbc exclusive is adam selipsky, the ceo of tableau software. good morning. >> good morning. >> strong quarter. analysts are looking past the revenue thing because of the subscription business. explain. >> well, we have been in the

middle of a multi-year transition from selling perpetual or one-time software to a subscription business in just eight quarters we have gone from a 20% subscription mix up to 80% give or take in this last quarter we are at 84% subscriptions. it is been a great transition. it's really great for customers. it's essentially a risk ruks program where customers get to use the software for a year. >> adam we are going to keep talking about earnings in just a moment first we want to break in with breaking news out of fed steve liesman has it in san francisco. steve? >> morgan, thanks very much. story to interrupt we want to make sure the viewers have the latest from the monetary conference. the ranking monetary economist on the fed the board says the fed can afford to be data independent, the u.s. economy is in a good place, inflation is stable, inflation right now

pressures are muted. and wagthe funds rate is neutra and not below the natural rate positive comments. we have the cleveland fed president coming up. resident kaplan, the dallas fed president as well. and many other members from the fomc will be here talking about policy coming just a couple of days after the federal market committee. back to you morgan. >> i will take it, stev. thank you. important stuff about the fed. >> adam selipsky, tableau's ceo, finish your thought now, please, about the subscription transition. >> we are far into the transition customers are really enthusiast particularly embracing a subscription licensing that as well as just the underlying demand for bringing analytics into the core of what all of their employees do at large organizations around the company -- around the world,

excuse me, are really driving young underlying demand. >> that's one of the things i cued in on during the earnings call is your role based subscription licensing, particularly the viewer segment. it sounds to me like you are able to do kind of a tiered pricing based on how deeply various roles in an organization need to get into the data. and more people need to see the data and understand it than necessarily create it and manipulate it that way is that the path forward in spreading this technology to more people in an organization and growing revenue for you? >> that's absolutely one of the big drivers. we are really entering the early stage of an age of analytics you big with it where more approximate more organizations are bringing analytics into the core of what their employees do. in order to do that, it is not just sophisticated analysts. we are absolutely going to continue to fully cater to and develop product for them in addition, you are now into

tens of thousands of employees just this quarter we sign a big expanded deal with one of the largest retailers in the world to deploy tableau to well over 100,000 employees. as you can imagine not many of them are technical people. it is important to have stripped down more basic functionality of product and options for all employees. >> adam, you mentioned that big deal with a retailer in terms of who is buying these subscriptions, across different industries and sectors, where are you seeing the most demand >> what is encouraging is we are seeing it broadly. we are seeing it in the government sector at the u.s. department of agriculture. a lot of educational institutions, non-profits like path are literally helping to cure malaria in africa then in the enterprise sector worldwide. financial services, j.p. morgan

chase, and charles schwab. in pharmaceutical and health care it is pfizer, and the cancer care alliance in seattle. neck flicks, verizon, it is broad based and global it is encouraging to see the escalating demand. >> adam, quickly, does this mean we need to expect more sales and marketing spend from companies like yours that are not part of huge enterprise companies but trying a best of reach strategy? >> we are really just leaning into the opportunity we are going to continue to invest across the business we are actually adding a lot of r and d resources to continue to build product. we are really intent on building the truly broad and deep platform foran analytics that or customers are going to need as the deluge of data continues to hit them over the coming years at the same time we will continue to invest in our field teams to help support dhurs and help make sure they are truly

successful in deploying and a79 ding anding inning tableau well after the sale. >> adam selipsky, ceo of tableau, the stock up again about 5% this morning. thanks for being with us. >> thank you my pleasure. when we come back, only two other companies in the last decade have had a bigger day one surge than beyond meat up more than 160% in the first day of trading od will talk to former whole fos coceo waller robb about that debut we are back in a minute. the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

beyond meat, as you know, the best performing ipo so far this year. up 173% on day one santoli is back at post nine with more charts about this and what the expectations now are. >> this is interesting, everyone slept on it. we saw a tremendous first day pop and added another 5% to it right here obviously this is a somewhat unique deal in the sense there is a passionate customer base that loves the big picture story not just about what this company can do because really the revenues and profits don't justify it look at a few of the other hot every ipos in the last couple of months lyft is the one that hasn't performed well down 15% less of a disaster this is from the ipo price not the price it went up to initially. zoom is more than double doom video.

pinterest is up 50%. that's very big. you are talking about lyft and pinterest, relatively large, over $1 billion offering proceeds then beyond meat up 175 from again its ipo price. lot of talk here that the sly that's already come out and to come with uber, maybe with the soft bank vision fund maybe with other deals lined up slack and the rest might be swamping the market year to date proceeds $10.6 billion. stock buybacks just as a way to scale this, year to date, probably tracking around $300 billion. goldman says we could hit $1 trillion in stock buybacks that goes into investment portfolios the money is there it might not be in the same kinds of funds or brokerage accounts that would be buying a fresh ipo in the high growth stocks that's why managers have to sell something to buy an ipo. it is not in a the market itself can't swallow this dollar amount

but is the market going to counter some of the assumptions some of these items that get priced in an aggressive way? we don't know that answer yet. we have to see how the market handles it. >> thank you for breaking that down for us. right now looking closer at beyond meat. pulling in 15 million of revenue from retail sales in 2018. supermarket in sales of meat overall surged last year according to data from nielsen the plant based protein producer is at stores across the country. let's bring in walter robb walter, thank you for joining us today. >> good morning to you >> when you see a company like beyond meat surge more than 160% in its first day of trading it is not a tech company. technically it is a food company. were you surprised to see the investor demand as strong as it

has been in these first two days. >> first of all, shout out to ethan brown the founder. reminds me that businesses are started buy people and entrepreneurs and a shut out to seth goldman the askedive chair of the company again the two of them working together have done a fantastic job bringing this company forward. and whole foods, too, for taking a chance and bringing the product in i mean, ethan started demoing this product a few years ago at a single whole foods store and look at where it is today. i think it demonstrates the appetite for growth and sustainability for growth in the public sector. >> in terms of this ipo it sets up a narrative around some of the other start-ups also focused on plant based proteeps like impossible foods. >> right. >> how do you think the broader sector is looking at this, especially some of these other bigger food manufacturers that might be looking to get in and compete at well? >> i think you are exactly

right. it is on trend with the plant-based future i think it shows it is being sold as a burger i mean of the roughly $80 million sales 70% of it are beyond burger but they have many other products in the line as well there is an ingredients channel, a restaurant channel, the supermarket channel. i think it demonstrates this has real legs. >> waller i am curious about the supply chain for a company like beyond meat. pea, protein, which is a key raw ingredient is in such high demand tyson wants in on this business. we had dunkin donuts on earlier today talking about their increasing demand for plant-based proteins how is a smaller company like a beyond meat going to be able to secure the high-quality plant-based protein that they are going to need? >> i know ethan is out there working on it. they have a headstart on that in terms of the source. but you recognize that overall

globally that the food market is moving beyond a single 12 a plants that supply 75% of the food and then the peas and the legumes and other crops are finding more acreage they will have to find their way forward. the demand for this product, the growth of this product, 180% year over year, two years running is going to definitely raise those sorts of questions listen, there are a lot of conventional farmers out there looking for a different path to go the path of farmers the last four years has been difficult. conventional farming has been a difficult place to be. farmers are looking for alternative crops the grow this would fit perfectly in in a profile. >> john mentions tyson they had 6% of beyond meat when they filed for the ipo in november and then they exited amid tensions. >> right. >> do you expect the big players to try to do this on their own vertically or are they going to leave it to smaller players to work out and then they come in

later and bring it to scale? >> of course what we have seen is a lot of the larger players have chosen to buy smaller companies as a way to get into the market faster. i think this demonstrates, again, from a food perspective, that, clearly, this plant based trend is real, it's here there is serious demand. the demand for this product is not coming from vegans or vegetarians. the demand is come from people who eat meat saying i want the eat less meat or i want a choice that's going to impact the environment less the demand is real it has real legs it is going to continue to he gro. i think the reason why tyson exited is they want a shot for it themselves. other companies are thinking in a similar fashion. i think you are going the see both in attempts of smaller companies coming up and larger companies saying they want to take a go at it bus the demand for these products is simply too strong at the customer level.

>> i want to shift gears a little bit, walter food delivery wars, another topic we like to talk about a lot here. >> yeah. >> amazon has been exnld paing delivery options for food, for whole foods. also a week from now, we are expecting this ipo from uber, uber eats has been a strong area of greta for that company. also a money loser to date in terms of tackling the last mile of delivery, where food is concerned, where do you think we are going? is there a point at which it becomes profitable >> that's a fair question. i mean what we are seeing again, the proliferation of those choices, you mentioned uber eats, you mentioned grub hub, we have seen door dark, all of these companies. amazon has their prime now program. it is clear that the customer wants that choice and wants those deliveries as far as i can tell the business model is a little bit suspect in terms of making money. but if you put it in the picture of the larger sense of serving your customer how they want to be served it fits into that

profile nicely so i think we are past the point of no return we are not going back in terms of these choices that the customer wants again, these products that we are talking about today, beyond meat, they are part of what gets delivered. and we are just looking at a future that's very different than the future that i -- the way that when i started in the late '70s and early '80s. >> walter robb, thank you for joining us today appreciate your ib sights. >> thanks for having me. appreciate it. still to come, the latest on tesla's proposed capital raise first, rick santelli, what are you watching today >> wow, listen to all the noise in here. there is a lot of trading going on we are at an important cusp with respect to the markets then we have all these big people talking about such big changes, the electoral college, the vice president talking about the dual mandate we will talk about allf at ghafr isreakth -driverless cars... -all ground personnel...

...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. i'm scott wapner here's what's coming up. what the berkshire amazon buy says about the tech sector right now. plus the noted strategist who moved his s&p target he's going to be here to explain where he thinks stocks are likely to go and the stocks morgan stanley just revealed as the best buys and sells right now. we have got the list we will bring it to you. we will do it at noon. jon we are about ten away. >> scott looking forward to that for now let's get to the cme

rick santelli has the santelli exchange >> so much going on. today in particular we get data points that are very large and it's hard to put everything in a nice box with ribbon and a bow. things are complicated yo you know, you have establishment survey, household urvey, nonseasonally adjusted data, the data we see and at least with respect to today's data, not all of it was perfect. as a whole, it was a good report and the farther you get away from what is consumed by the public, so you start looking at nonseasonally adjusted and other areas of this report that are, you know, much more in the weeds, the stronger it was, actually i think that's important but today's discussion is about economists in a way. you know, economists, analysts, these are all important people in the lives of viewers and listeners right now to try to handy cap what strategies they want to implement, how they want to have a profitable trade, most likely the end game is the retirement and you know, it's between risk and reward and the point is, i deal with a

lot of economists. you know, we have to go, breaking news, we're going to carl >> yep let me interrupt you, rick becky is in omaha. i think she might have munger. becky? are you there? >> and you know, i've spent a lot of time thinking about it. i read through the article >> you're on >> i thought about just the idea of when i was in college, would i rather have a roommate or a window, i would totally, like, rather have no window and no roommate than a window and a roommate >> of course, of course, i'm always right you know, i just -- i stick to areas. >> i want to make sure becky knows she's on national television that's charlie munger, obviously, on a golf cart as they're working their way around the annual meeting but maybe a comment or two from charlie. becky, are you ready to go >> you've got a lot of areas of expertise. >> no, i don't

i just stick close to the ones where i have it. >> tom, tom watson sr. said that he said, i'm no genius but i'm smart in spots and i stay around those spots. and that's a very good thing to keep in mind, and we don't try to jump over 7 foot bars, we try to find 1-foot bars that we can step over. and charlie happens to be the world's greatest architect >> i also find that other people are very intelligent, have isolated patches of massive stupidity and we just avoid those. >> yeah. >> such a simple formula >> actually, i don't avoid all of them, but charlie avoids all of them. >> but we avoid more than most >> yeah. so, what's an isolated patch of stupidity that you've avoided and steered clear of >> we don't think we can solve our problem of being terribly competitive business by buying one which is less competitive at

an enormously high price whereas everybody else thinks that will work wonderfully of course it doesn't >> we don't think -- and we also don't think that we can analyze every business or we don't think we can analyze 90% of the businesses or 80% of the businesses >> or 60%. >> yeah. >> yeah. and if you ask those who watch us, maybe try 5% >> all right, well, i love the article. >> three 3%. >> i loved the article today, and it's great to see you, both of you >> okay. nice to sit next -- >> increase my popularity in -- >> that's not your goal, is it >> no. >> never been his goal in anything ever. >> anybody else you want to say anything about before you drive away >> well, what's interesting to me is that trump is right about some things. >> like what >> oh, i'm not going into it >> all right, we'll try for more

tomorrow when we see you guys at the meeting but thank you both for your time. it's good to see you >> shut down that booth over there. >> the one where they're asking for charlie -- >> foreign object has worked its way into our exhibition. >> well, if nothing else, gives you a sense of color at the berkshire annual meeting, which is obviously woodstock for capitalists but to a large degree, it's a bit of a festive environment, as becky well knows. >> and clearly having a conversation about that "wall street journal" piece, charlie munger designing college dorms at places where he's donated quite a bit of money, unconventional ideas about how to fit more students in even if the dorm rooms don't have window >> and perhaps not unsurprising. >> meantime, dow is up 162 ostoesback to 2940 on the s&p, cle ssion highs back in a minute servicenow put our workflows in the cloud. this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead.

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welcome back take a look at the f.a.n.g. stocks, all around 1% except netflix lagging and amazon up nearly 3% on that news that berkshire hathaway, not warren buffett himself, necessarily, but berkshire hathaway has bought into that company, guys the market in general up just short of 1%. these stocks, all in that space, alphabet rebounding after disappointing earnings, but amazon, best of all. >> and certainly helping all the major averages to pare those losses for the week with the s&p now flat to the upside small cap transportation stocks

also higher on the nasdaq and dow industrials moving back toward the flatline for the week too. meanwhile, shares of tesla higher this morning, increasing the size of its proposed capital raise, now $2.7 billion up from the original number of $2.3 billion with an s.e.c. filing saying elon musk would buy more than 100,000 of those shares worth about $25 million that filing also showing that musk personally owes $507 million to wall street banks, helping tesla raise capital and guys, of course, we're getting this on the heels of reports -- cnbc report that elon musk did have a call with investors and was talking up the self-driving technology, saying that tesla could be a $500 billion company in the coming years as all of that technology comes to life, the robo taxis and the capabilities there. >> wasn't it a year ago, carl, he was saying tesla didn't need to raise any money >> it was may of last year, he was asked about it on the conference call, and his quote was, i specifically don't want

to but things have changed. and as jim said on twitter yesterday, we're no longer -- the goal line, apparently, is no longer trying to make the model 3 profitable it's about much longer term unicorn-related goals. >> well, he had a rough year last year. i hope he's having a better year this year but all kinds of goal posts keep moving for him whether it's twitter or capital raises or what >> one of the things that also hasn't gotten a whole lot of attention is his comments in recent weeks about the possibility of rolling out an insurance product for tesla owners as well that, too, potentially could require a lot of capital depending on how he were to structure an auto product as well >> what about an insurance product for investors who are relying on his statements about what tesla's going to do or not do >> i think that's the auctions part >> it's probably some money in that >> meantime, the earnings parade, next week is not going to be quite as intense as this week i think we have 50 some-odd s&p companies but there's some big names in there, some media

names. i think we get disney next week as well so that's going to be interesting and then of course how seriously do we take this countdown of a trade deal by next friday? market's going to have to somehow price that in. >> yeah, another insurance product there is a possibility, i would think. >> yeah. >> and watch for buffett headlines all weekend. let's get to the judge >> carl, thanks. speaking of buffett, is a berkshire boost for amazon another sign that tech remains the best trade in the market it's 12:00 noon, this is "the halftime report. >> is berkshire's buy-in of amazon the right move? the stock is up 31% so far this year how much higher can this stock run? plus, a new door to investing in the private companies making vc investors billions may soon be open to you. morgan stanley has a new list of stocks it says are about to shoot higher as tom lee hikes his s&p price target stephanie link also pouring money into three big