it's interesting, we're long term berkshire hathaway shareholders and have owned berkshire since 19 3s interesting to get the quarterly numbers and to observe the commentary around berkshire's quarterly numbers. buffett's probably no more or no less smart than he has been. he, perhaps, has learned some things about the business as he's gone through this period. my guess is, it's not really new learning. it's probably just a relearning of some old lessons he's had d through the way. >> what do you think about a lot of the bets that berkshire has made over this incredible chaotic time in the markets? things like investing in goldman sachs and general electric and making these derivative bet. were they smart bets or smart bets over the long haul? >> well, you're exactly right. you need to think about these things in the long-term context. buffett said in the quarterly commentary that those investments will add about $2 billion a year to the investment income at berkshire hathaway as we look out. it's really important to think about those investments in that context. it's interesting to u

in frankfurt at this hour, berkshire shares up 4.5%. j&j off fractionally while home depot and united health both fractionally higher. >> today's sell-off in the market, you want to stay up-to-date with information. you can get news, video, blogs, anything moving the market today at cnbc.com.m. >>> still to come on "worldwide exchange" -- it's emerging markets week on cnbc. we'll be heading out to india to see how china is faring. plus a check on the latest currency markets. back after this break. $$$$$ >>> welcome back to the show. we are going to take a check on the currency markets before we get to our guests here. we'll get analysis on these figures. let's take a check on the dollar-yen. a bit of yen strength coming through today. the euro, dollar, 1.41. significant pressure on sterling. dropping by 1.1% against the dollar. we're joined by the director of fx institutional sales at deutsche bank. thanks for coming on today. why don't we start by talking sterling and the pressure ta we're seeing there. a few important things come

. >>> matt nesto has the latest on berkshire hathaway. >> thank you very much. it's interesting to see hoar warren buffett does. if you look at their operating earns, which includes about a billion dollars in investment gains, it gets you to $1147 per share. the estimates are out there for $1238. that arguably could be a disappointment. the company also pointing out that they have over $24 billion in cash on hand, and they are also talking about the fact that their book value increased to 73,806 per class-a share, up about 5% from yearend and 11% from the first quarter. the net earnings appear to have gone up, but if you break it down, underwriting down sharply. investment income, as i mentioned, a big jump there, almost 50%. non-insurance businesses down about 50% to 574 million and other we won't even talk about it, because it's so minuscule. the big picture there is that operating income, the operating earnings at 1780, which is a pretty strong figure. >> okay. matt, once again, investment income was up 50%, so that is what in their portfolio essentially. >>>

the airline's revenues areff $3 billion so far this year >> warn buffett's berkshire hathaway reported a biion and a halfollars inerivative gains it poste its best report in two years. $210a share 14% higher than a year ago. the derivativesains were tied maly to the performance of four mart indexes in the u.s., europe and japan. here's a look athat's happening xt week. our frid market monitor guest is james stack, presidenof stack financiamanagement and ves-tech research. on the economic calendar: tuesday, june olesale trade... d federal reserve policymake begin a two-dameeting on inrest rates. ey release their decision on wednesday. so on wednesday, internation trade fojune. thursday, it'seekly jobless claims and the july rerts on tail sales and import prices friday, july consumer price inx is released. our market mitor guest tonight says the economy is not as good as thearkets are reflecting. joing us now to explain: richard steierg, president of steinberg obal asset management. hi, rich. >> nice to see you. >> the ns on the job marke was goodtoday. we got a good rall you're cautious

berkshire hathaway up 20% and merck up 21%. are you still with these stocks?>> yes, i am, paul. >> paul: let's have two more. general dynamics up almost 60% and overseas ship 47, you are really on all burners there. are you still with these? >> yes, i'm still with those as well. >> paul: you had one stock you said to sell short, star scientific. sell short at 4.32 and it is now less than a dollar, a profit of 77%. congratulations, john, great call. >> thank you very much. and we have covered that star scientific short now about a buck. >> paul: do you have any new recommendations? >> i sure do and i had-- like to start right out with general dynamics again, even after rising 60s%, it's still at nine times earnings. unfortunately, we're in a world where we need military equipment and i think that's still a good buy. >> paul: g.d. is the trading symbol on the big board. number two selection. >> number two i'd like to go with a small energy company called boots and coots, named after two of the three fellows who started it, their nicknames. boots and coots puts o

today, up $1 and change, despite the fact that warren buffett's berkshire hathaway cut its stakes in unh, according to its most recent filings. the health care services are riding right along with the managed care providers, benefits manager med co-health, up a new high today, up 15% the last two months, double that the last six months. and while we are talking about berkshire hathaway, cut back on health insurers, took a new 1.2 million share stake in medical device maker becton dickinson, one to watch, not just this afternoon but the long haul here, it is down on the year and a real underperformer, interesting to see if it gets that buffet boost here as we look ahead the next couple of quarters. taking a look at the big box stores today, of course, you know there is a headline on lowe's, but home depot is the one to watch, especial had i going into tomorrow. home depot will be reporting tomorrow. today is a hat trick of bad news, got the lowe's disappointment. both warren buffett and eddie lamp the's hedge funds cut their positions on hd. and this afternoon, we are going to get tha

>> i like great old berkshire hathaway.run by the greatest genius in the history of investing. still lots of cash. still buying in lots of positions. i will bet on warren buffet any day. i will take warren buffet at 100 over anybody else at 25. neil: rob? >> he uses leverage in a way i don't like. he also uses derivatives which scare me. he has underperformed the last five or so years. neil: who do you like? >> i like the health care sector, the i.y.h. this sector is undervalued even after it's rallied quite a bit. i actually think it doubles. >> rob, you have been one of the hottest guys on the street, but i think you're getting too cute. neil: all right. [captioning made possible by [captioning made possible by fox news channel]

berkshire-hathoway. what is his basis and berkshire-hathoway? close to zero. take the market capital of berkshire-hathoway and that is his wealth, it is what we call on realized capital gains. do any of you know the tax rates on on realized capital gains? [laughter] it's a zero. steve's fang on capitol unions and market it will help that one. it's zero and if he gives it to the bill and melinda gates foundation it will never see taxes, it will never see it. but when you look at this when he says i payless taxes and my secretary he's telling you the truth. it is a bad tax loop and i am not blaming him for high finding it tax free way, the last thing is rich people can change the volume of their income so when you look the tax codes loss 2530 years the top 1% i forget what the number is, steve, but the top 1% in 1980i think pete 17.5% of all the income tax in the united states. the top 1% today p42% of income tax in the united states. not only that is true but also the only group, the only group in the tax groups that have increased their taxes as a share of gdp

berkshire hathaway. what is the basis for his valuation in berkshire hathaway?pretty close to zero. and then you take the market capital of berkshire hathaway and that is what his wealth is in what we call on realized capital gains. do any of you know what the tax rate is on unrealized capital gains? [laughter] is zero. they think it won't help that one. jazeera it is said to the bill and melinda gates foundation it will never see a tax. but when you look at this world when he says i.p. less taxes than my secretary is telling you the truth. it is a bad tax and i'm not blaming him for finding a tax-free way of pulling and having his wealth here the last thing is a rich people can change the volume of their income. cellular the tax code over the last 25 or 30 years the top 1%, i forget what the number is but the top 1% in 1980i think kids 17 and a half percent and the top 1 percent today pay 42 percent of all the income taxes and not only that is true but also the only group, the only group in the tax groups that have increased their taxes as a share of gdp is the

the times says citi tried to sell the unit berkshire hathaway, but talks went nowhere. citi shares are up about 4%. ross. >> and investors with royal bank of scotland today investors shared a cautious outlook in the and posted a loss in the fist half of the year. the bank has warned the results will be poor for the next two years, as well. in a move to overhaul its top management team, rbs approved the appointment of bruce vansohn. come up within we'll have an interview with the ceo of rshs, stephen hester. stay tuned for that. shares in allianz are low today, as well. net profit was up 22%. operating profit hit by lower income on investments and underwriting. allianz delivered a cautious outlook. we'll get more on that when we speak to the ceo, dr. helmut perlet. >>> coming up, the central bank says it's ready to hike interest rates if needed. what other economies could follow suit? >> we'll talk about that and take a look at the kwurntsy markets on the employment report. snoor >>> ekfy markets, a little caution ahead of the employment report, dollar/yen steady at 95.1

pursuit of the good or a google, until, wikipedia and in their pursuit of the truth or beautiful berkshire hathaway or the heroic microsoft and the grameen bank and gates foundation what is the purpose? stakeholder theory hour debate opponents will attack today is conscious capitalism thinks of business differently than 85 capitalism has a ballistic ecosystem view of the business as a complex itsf adapting stakeholders customers, employees and communities that are injured dependent upon one another. instead of focusing on the trade-off we found it is better to focus on the synergies that exists between the stakeholders instead of thinking of this zero sum game or somebody loses and somebody else wins and think of how to create value for everybody at the same time. a win-win scenario. when you begin to think this way you ask different questions then you begin to discover different answers. we believe the human mind is infinitely creative and conscious capitalism opens new pathways for creativity to begin to continue to progress to humanity. we believe the creative entrepreneurs and colleg

berkshire hathaway, freddie mac. you know last week we spent a little bit of time on fannie mae's numbers, which were not good. freddie mac, a bit of a different story, worth mentioning. 79.9% of the company owned by the u.s. government. there's a look at what is an option on the company in terms of that stub of equity. as for the results, freddie mac reported the first profit in two years. that is right. and it was up last week, of course, like freddie, fannie, aig, cip, a number of short squeezes there. there's freddie, first profit in two years. it earned -- well, it actually lost -- if you take it out before it had to pay the government the interest, it made money. otherwise, it lost 11 cents. that's still way better than what people expected. look what it lost a year ago. net nrk was $768 million, compared to a loss of what's called a $10 billion a year ago. revenue, $7.74 billion. virtually no revenue a year ago. all of the write downs that took place, they take hits on revenue. now, freddie is paying interest

to waleden pond and to the homes of he remember min melville and natsdz anal haw thorn and the berkshireshe had letters from many of its former senators hanging on his walls. inspired by things heroic. he was a civil war buff. when we were growing up he would pack us all into his car or rented camper and we would travel around to all the great battle fields. i remember he would frequently meet with his friend at a particular site on the anniversary of an historic battle just so he could appreciate better what the soldiers must have experienced on that day. he believed that in order to know what to do in the future you had to understand the past. my father loved other old things. he loved his classic wooden schooner, the myia. he loved white houses and his 1973 pontiac convertible. my father taught me to treat everyone i meet, no matter what station in life, with the same dignity and respect. he could be discussing arm control with the president at 3:00 p.m. and meeting with the union carpenter on fair wage legislation or a new bed fered fisherman on fishries policies at 4:30. i once told

. >>> warren buffett's berkshire hathaway has cut back on home depot and carmax and eaton and raising stocks in johnson stakes and adding 1.2 million shares of beck t becktin dickinson. >>> that's "cnbc.com news now." i'm julia boorstin. "fast money" with melissa lee starts now. >>> is the summer selloff finally here? not on this desk. we've got your correction covered. >>> welcome to "fast money," we're live from the nasdaq market site. i'm melissa lee and these are your "fast money" traders. a big show tonight. we'll show you a correction next week. and later a company that's helping america and its profits recover from giant job losses, and breaking all night, new holdings from warren buffett and george soros and other investment whales that you may not believe. what we may find. >>> a word from the street, a nice rebound from the session lows. what was that? a technical bounce there? >> i think there were late guys coming in to cover shorts and it was working for them. nail biting. i think people were watching 992 and guys were expecting a sloppy monday if we broke that. today's r

berkshire earnings are tomorrow after the bell. we've got your setup tonight. >>> plus, why options traders were bringing on put production today. we'll tell you what they were worried about. >>> but first, the fate of the rally after tomorrow's jobs reported. will the number confirm or deny the market's recent strength? joining us on what he's seen from the pit, the pit bull himself, rick san tell hely. himself, rick santelli. rick, we've got a lot of -- goldman sachs coming out more bullish. adp coming out better than expected, but that doesn't reflect the government layoffs. that we've seen in the past month. where do you fall? >> the whisper numbers are getting silly. every guy at that desk has heard the same thing. these numbers are getting into the low 200s. having said that, let's look at the facts. 18 straight months of job losses starting in january of '08. my opinion is is that the traders in general do not believe you're going to see a shocking number to the upside. however, as we head from trim tabs today, even though t

>> we have the 13-b filings of warren buffett's berkshire hathaway just out and i want to give you an update as to the changes in his portfolio as of june 30th. he increased his position in johnson & johnson. and he decreased his position in a number of companies. i'll run through the companies for you. decreased holdings in united health care by 1.1 million shares. decreasing his holdings in car max by 3 million. he also decreased his position in conoco phillips, eaton down 1.2 million shares. home depot down a million shares to 2.7 million total. and wellpoint, the share holdings there declining by 1.2 million. as expected, his stake in constellation energy has been completely sold, but we knew that already. so again, an increase in his holdings in johnson & johnson. decreases in united health care, car max, conoco phillips, eaton home depot, as well as wellpoint. back to you. >> mary thompson, thanks so much. david, when i was listening to steve's report there, deflation always scary because you like to inflate away your debt especially if you're a small nation. if you're a company

earnings did miss forecast, reflecting lower insurance underwriting and the impact of the recession on berkshires manufacturing. shares up nearly 30% in the past month. general motors' public relation campaign continues this week as the ceo meets with customers and civic leaders in michigan today. it includes a behind the scenes turn of the automaker. in a filing on friday, gm says it will attempt to sell shares in an ipo before the one-year fa anniversary of bankruptcy next july. gm also plans to announce a partner with ebay in a plan to sell cars. ebay currently only sells used vehicles. if successful, they will extend nationwide. >>> the next domino in the madoff scandal could fall tuesday. prosecutors say frank pascali plans to wave his rights to an indictment. he was the chief financial officer for madoff's investment business. customers say he was the main contact at the firm, answering questions about their account. christine? >> first on cnbc, the ceo of credit suisse said asia seems to be leading the world out of financial crisis. he said the financial services industry looks to be recov

>> this is a reuteres column and $26 billion in companies through berkshire hathaway and bank of america and wells fargo, which is a particular favorite of buffett and he got a better deal on goldman investments than the u.s. taxpayers, his preferred stock warrants returned 30% paper profit and taxpayers return only 23%. >> what about the fact he was in before the government? >> that's good to point out. why couldn't the government get those terms? >> if you're looking for ways to jump start the economy, how about the amount of money being spent on health care reform? >> we love it here at the networks. >> it's a full employment act for those of us in media, but, in fact they've been 5 $2 million spent since the beginning of this week with health care advertising with tens of millions to come. one of the ironies is, despite the perception that it's by people opposed to health care reform, the large majority, substantial majority of the money so far has been by people supporting reforms. >> in terms of that support, how are people coming in in response to that story? >> this is one of the

of this, a number of executives at the company that was on the other side of this deal, a unit of berkshirehaway, ended up going to jail. under the terms of the settlement, greenberg will pay the s.e.c. $15 million to settle past accounting issues. also, aig's former cfo howard smith is going to pay $1.5 million in a settlement. the "wall street journal" saying an official s.e.c. announcement is expected as early as today. a call to the s.e.c. earlier today, agency responding in a no comment to cnbc. but again, former aig ceo ken greenberg settling with the s.e.c. over civil fraud issues that occurred back in 2000 or 2001. back to you. >> i'll take it from here at the nymex, mary. we're watching mixed trade in the energy trading. and we are seeing oil lower, although it's very interesting thing to watch in terms of the split between brent and nymex crude. the present, the spread has now widened to nearly $4, with present hitting a new high for the year earlier today. part of that is fundamentals. in the north sea, there is a bit of outage there because of maintenance. so that's what's suppo

this is a subsidiary of berkshire hathaway. we will fully commit to take the necessary actions to meet these goals at the lowest possible cost to our customers. controlling costs is critical because it will make the polluters pay. it will be your constituents that will pay for the programs that are implemented. [unintelligible] it will force companies to provide productive investments. we oppose the trade part of the cap and trade and the allocation of the collegmethodology. the cost of buying and production -- unproductive emissions alone while paying for the new infrastructure. we do not need market signals in the trading program to act. the bill's formula for distributing a that split between commissions and sales. that means the utilities with nuclear and hydro generation will receive allowances that they do not need it also means that utilities with coal and natural gas generation will not receive enough allowances. this inequity will be costly for the customers in the west pacific. mid-america will only receive 49% of the

. >> are you satisfied with the accounting on berkshires s&p -- going to make money. >> good yes. >> it. you know, he was so anti-these derivatives calling them financial weapons of mass destruction. and i thought it was a contradiction. but he's going to end up making money. the stock as you know, $145,000 march 2008 he covered the stock, actually went long at one point down to $82,000 a share, $98,000 a share now. i thought it was somewhat of a contradiction in strategy and in theory. however, he is going to make money. >> not all derivatives are created equal. selling a put is not that esoteric, even long-term. >> your question is a valid question. there was understatement of the unrealized loss, that's why increasingly bearish. >> if we were in a ten-year period, god for bid, like the '30s, he may not -- if we ended up five or six years down 1,000. >> some dreyfus tifs were like 18 year derivatives. >> shottened them up. >> ten years from now, aren't they? >> i think he'll end up making money. >> i do, too. >> premium on the puts was $4.7 billion. >> talk hp checking into earning

berkshire bought the interests back in 1998. socul, santulli have both ben heralded as possible warren buffett successors. >> he's got a 9-year-old, a 7-year-old and a 5-year-old. and he sold net jets. i don't know if they pay him anything -- >> he sold the company to them for a lot back in -- >> back in the '90s. so i don't know whether he was like bloomberg working for -- why is bloomberg working?  he's got $15 billion. he's in government. we have similar callings. yes. >> government, public service. >>> the treasury department reportedly plans to ramp up sales of inflation protected bonds to help fund the nation's growing budget deficit. china is among investors that have indicated that they want t buy more of the securities. speaking of that part of the world, what's the deal with kim jong-ii? it's kim jong il. >> every paper in america, there's a picture of him and president clinton. >> and nobody is smiling. it's like this is serious stuff. >> we have to be here. you requested me, i'm here to get back our two journalist

his ructance seemed entirely hamid berkshire accepted that myusband, like many peopl@@ preferred torocess his miserynd pte. will fel better if you talk about a but wheneve think abou it i think, no. he will tell mehat hets to tell me when he wantq to if he wants to but iouldot as even though i was curious see the wl beten us that experience my gorld from his it was part of a wor of likely not ever know. would be enterg that world agaivery soon and would be shut out. i would know little more about it than a space on t candar, 365@@ ds, 52 days -- 365 days, 12 monthsone year. and the zipper was undone and open we. he tried to convinc me this deploynt w not a b deal after a f wks ofrain atort dixhe battalion ulstart out doing arief@@ in in toait then go north and spenthe rest o the time that spdnd intelligence supporin baghdad. hisas tsuppor but commander with psonnel tbe the righarm man. he assured me over and over he wono aanger if i was not convinced of was le ightedy hi goi t baghd u.s.ust acro t rd who rll kne h farhis nflictouead? i i could fit you in heaid. hen you l me now beuld sold

. >> j&j one of the only names berkshire hathaway adding to have. >> and then ackman into mcdonald's, right? >> right. after the loss he took on target. piling into mcdonald's, trimming holdings in one of the other eating companies as well. >> we'll talk more this hour about lowe's. one more exposed to appliances than the other. >> the conventional line of thinking is that women shop at lowe's and men at home depot. we'll hear more of that today. we're expecting in 45 minutes to be hearing from lowe's. >>> the white house appears ready to drop the ongz of government-run insurance as part of a new health care system.m. administration officials are leaving open the chance for a compromise with republicans that would lead health insurance cooperatives instead of the government-run plan.n. under a program by senator chairman conrad, consumer-owned nonprofit cooperatives would sell insurance in competition with private industry. there is back and forth as to whether the administration is stepping away from this. they said this is not the only issue they're looking at in health reform. >> t

princeton university ranked number two, followed by cal tech, williams college in the berkshires of massachusettsthen harvard. others in the top ten, wellesley, air force academy, amhurst, jail and stanford. >>> this is a woman actually doing a tango with a horse. why she's doing it and who else is dancing with horses these days. >>> the votes are in. will sonia sotomayor be our next supreme court justice? the final senate tally, and also president obama's reaction. >>> if you use twitter, you probably noticed your thumbs went from tweet to twiddle earlier today. what brought down twitter for a while. >>> controversy erupts over using jesus' name at a council meeting. your views on using religious figures at government's vents. >>> the latest from hln "news and views." i'm richelle carey. let's recap the breaking news from the united states senate, the next justice of the u.s. supreme court will be sonia sotomayor. minnesota senator al franken presiding over the vote announcing the final tally on sotomayor's nomination. 65 ayes, 31 nays. 68 yeses. let me get that right. sotomayor will be sworn in

. >> they subcontracted 15% of the berkshire. >> so they weren't on the l-3, the college shea attica linguistics and my question is very large subcontracts during, were they the, we heard organizations that have been in the linguistics feel the with race exceptions and concerns about shared contracts the question. they supported the field and they're knowledgeable. had it is shea added at any experience with you read them as a subcontractor. there are an alaskan native corporation based in alaska. did they bring arabic and kurdish and whenever background as part of their proposal? >> they do have a proposal of wang was contracts. >> that meant -- in other words for the record alan ask for that. >> yes, sir. >> is there anything in terms of what i look at it in my going to see their providing 2,000 interpreters or linguists now the end of their high water mark for kurdish and arabic was 12 people or something like that? >> i don't have the specifics of the contract. >> for the record and the chairman is just about done. >> dave don sali, haven't they? the contracts are in spanish and

i was up in the berkshires, and visited a home built by the morgan stanley and there on the wall was a portrait of morgan with his japanese bride. i was trying to imagine what it would have been like if we could see -- what if it had not been a sign of the morgan family but rather the roosevelt family that was in the house with his japanese bride in 1941. what with the nation have thought of the president married to someone who was from the enemy? the tragedy of mrs. lincoln's wife. on the other hand summer boycotted the white house and he was struck down on the senate floor he was concerned with this abolition of slavery. he was a great friend. he attempted to play partisan politics but never quite found her way. it was always a mess step ahead of the game. but i do try to say to let's try to conceptualize her legacy today. i suggest and many of my colleagues prevented me from doing a recent work that i was going to call "what if both had been a bad shot -- booth had been a bad shot?" if it had been misled in that had been shot, how would we look at her? what'd be a reconciliation i