online retailer amazon warren buffett's berkshire hathaway and j.p. morgan chase teaming up to offer american stuff quality health care at a reasonable cost the three c.e.o.'s say the new company will be independent and free from profit making incentives the initial focus will be on technology that provides simplified high quality and transparent care shares in health care companies took a big hit in early trading on the new york stock exchange hinting at the threat that you entity poses to existing healthcare structures in the u.s. . and let's go over to the stock exchange we're going to go to standing by for us yes good to see there this is got to be a pretty or could set a pretty amazing president considering that it's usually governments that look after this sort of thing or to take care of this sort of thing the american system of course not being as solid as well as what we have here in europe. well it's a big announcement and the u.s. health care industry is one of the most expensive in the world americans roughly are spending about three point

amazon.. warren buffett's berkshire ha >>> three u.s. corporate giants are teaming up to tackle the skyrocketing costs of healthcare, amazon, berkshire hathaway and jpmorgan chase announcing they are partnering to form a new nonprofit healthcare company for their employees in the united states. the news of the landmark deal sent shares plummeting across the healthcare industry. but that wasn't >>> and it turns out it was the worst day on wall street since last may with the dow dropping more than 360 points. that wasn't the only thing ailing the market today. >> also interest rates are on the rise hitting their highest levels in about four years. the stock market has really thrived over the past several years due in large part to the low interest rate environment. >> another factor drying stocks lower, general profit taking after a series of record highs. >>> sfo is celebrating a major milestone this evening. the airport has announced a new all time record for passenger traffic. serving nearly56 million people last year alone marking 14 ye

the online retailer amazon, warren buffett's berkshire hathaway and j.p.gan chase are teaming up to offer u.s. employees quality health care, they say, at a reasonable cost. the three ceo's said the new company would be independent and free from profit-making incentives. the initial focus being on technology that provides simplified, high-quality, and transparent care, they said. shares in health care companies took a big hit on the new york stock exchange, hinting that the threat the new entity poses to existing health care structures in the u.s. our financial correspondent jens korte is in new york for us tracking that story. jens, with the future of the u.s. health-care reform unclear, is this a case of businesses seizing on an opportunity, or is it that they sense that something is lacking? jens: well, probably both, but it is a very interesting story. first of all, the american health care system is probably the most expensive in the world. americans are spending roughly $3.5 billion per year on health, roughly 20% of total gdp. if you look at the his

companies fail when we talk about affordable and quality health care so the online retailer amazon warren buffett's berkshire hathaway and j.p. morgan chase they're teaming up to offer their u.s. employees quality health care they say at a reasonable cost now the three c.e.o.'s at the new company will be independent and free from profit making incentives the initial focus on technology that provides simplified high quality and transparent care they say well shares in health care companies took a big hit in early trading on the new york stock exchange hinting at the threat that he entity poses to existing health care structures in the u.s. . when our financial correspondent yes court is a new york for us tracking that story up against what the future of the u.s. health care reform unclear is this a case of businesses seizing on an opportunity or is it a bit of a sense that something is lacking. well probably both but it's a very interesting story first of all the american health care system is probably the most expensive in the world some americans are roughly spending three and a half billion dolla

online retailer amazon warren buffett's berkshire hathaway and j.p. morgan chase teaming up to offer american stuff quality health care at a reasonable cost the three c.e.o. who say the new company will be independent and free from profit making incentives initial focus will be on technology that provides simplified high quality and transparent. shares in health care companies took a big hit in early trading on the new york stock exchange ending at the threat the new entity poses to existing healthcare structures in the u.s. . and let's go over to the stock exchange where you are standing by for us yes good to see there this is got to be a pretty or could set a pretty amazing president considering that it's usually governments that look after this sort of thing or are meant to take care of this sort of thing the american system of course not being as solid as what we have here in europe. well it's a big announcement and the u.s. health care industry is one of the most expensive in the world americans roughly are spending about three point five trillio

. >>> coming up, amazon, warren buffett and the new partnership that could become the model for the rest of america. >>> now just in. the pharmacist convicted in the 2012 meningitis outbreak that killed six people is sentenced to eight years in prison. he apologized to the victims before he was sentenced. >>> plus, the marine mammal center for marin during the busiest time of the year, the pupping season. the animals are returning to give birth to their pups. the st taking to help people figure out pot licensing requirements. plus-- a south bay landmark on the silver screen. the new movie about the winchester mystery house. join us tomorrow from 4:30 to 7. you could generate your own energy, at home. or to save energy, unplug unused appliances. do your thing, with energy upgrade california. earthquake ...with news that three of the nation )s biggest companies... including >>> the health care industry fearing it may be in for an earthquake of schwartz news three of the biggest companies including amazon are determined to drive health care prices lower for their own employees. >> amazon ha

jeff bezos of amazon, warren buffett of berkshire hathaway and jp morgan chase want their employees tod quality health care at affordable costs. it will create a new company free of profit making incentives. they will focus on technology solution that's simplify the health care system. when the opening bell rang this morning, the health care stocks, including aetna, cigna and united health dropped on that news. analysts speculate that the collaboration will mean these companies will be forced to provide better services and reduce costs. >>> now, that is contributing to some of the sell-off this morning. there is also most likely profit taking. we have seen some record days for the entire year so far. they're is a look at stocks. down 266 points. down a full percentage point. the nasdaq and the s&p 500 coming back a little bit from their earlier losses. but the nasdaq still losing half of a percent. the s&p 500 down a bit to 2832. >>> exxonmobil is planning to give the economy a boost by investing more than $50 billion in u.s. businesses. the oil company says it will expand its business

jeff bezos, the ceo of amazon, warren buffett of berkshire hathaway and jp morgan chase are forming aartnership with each one's companies to create an insurance company for their employees. they say it will be free from profit-making incentives and constraints, while concentrating on technology solutions to provide simplified high quality health care at a reasonable cost. we talked about the chances of this succeeding. ceeding. >> for any of this to work, you don't just need, you know, bezos and buffet and diamond, you need buy-in from the people in their companies that ultimately will get better health outcomes and have a better experience with the delivery system but it will require changes. >> the three companies combined are worth more than a trillion and a half dollars. >>> new information after the false missile warning in hawaii in recent weeks. up next, why the employee that sent out the warning thought that hawaii was under a missile attack. but what i see here never ceases to amaze me: change. i see it in their eyes. it happens when people connect with nature, with culture,

they're reporting and watching the news we still have a lot more to tell you about including warren buffett amazon j.p. morgan just three of the biggest names in business and they're trying to change the way health care works in the u.s. we'll have more in our business that would then base your comment all right up. and i will see you at the top of the hour with more news. when i'm travelling to be comfortable. but i also want to stay up to date on the latest news conference. and e.w. makes a.

. >>> coming up, warren buffett along with amazon and j.p. an chase announced they are creating a new healthcare company. >>> three big names in business are teaming up to help the us workforce. warren buffett, brookshire hathaway, amazon and j.p. morgan chase want their workers to be able to find quality medical care at a reasonable cost. the business leaders say the project is in early planning and have not released the name of the healthcare business but the new cooperative company will be independent as well as free of profit-making incentives. they have not said if there were plans to expand beyond amazon, j.p. morgan chase and brookshire hathaway but they are taking a bite out of healthcare stocks already with them sliding and amazon is on the rise, overall stocks on pace for the worst day since august and it would be the first today losing streak in one month. that dow jones down by almost 350 points with the s&p down 1%. >>> a new report says airbnb is driving up rental prices and housing availability in new york city. the report was c

amazon founder jeff bezos and billionaire bff warren buffett along with jamie dimon reveals a plan to revolutionize health care, and in doing so, put the entire health care sector in the emergency room at this hour. multiple subsectors from insurers to drugstore chains to big pharma painting the broader markets a deep shade of blood red. president loves to watch the stock market, not sure he's loving this first major sell-off of 2018 coming just as he gears up to deliver very first state of the union address to the american people, scheduled for six hours from now. we know that he is rehearsing for the big speech as we speak. no doubt ready to take a big victory lap as the job market, the stock market and tax reform have done great things so far for the country, but could today's sell-off inspire him or force him to make any last minute edits? >>> plus can he deliver a plea to both sides of the aisle in order to kick his 2018 economic agenda into full gear? fair and balanced. we'll hear from two congress members in leadership positions who will be front and center at the state of the

million to 12 million people insured with a 1.2 million people that the three companies, warren buffett, a amazonand te other one, j.p. mororgan, havee together, it is reasonable to offer them a plan. from this model, to extend a model of new health care to affordable and equitabable, to many american people. it is a step that one could anticipate. >> you think it may be based on an existing insurance model using existing insurers? well, they will cover medical consultations, drugs, they will cover x-rays and labs. they will cover classic medical care but on top of that, no doubt that the data model, e-medicinescience, will be a part of the model and they would be stupid not to use their skills and knowledge in the field. this is already in the pipeline by many caregivers. they have probably the means and advance,to make a new a new achievement in that field, based to start with their own employees and extended -- extend itit to many more american peop, especially those with no access to serious care. think itsiness leaders is necessary, warren buffett says the u.s. health care system is a tapewo

.>> reporter: calling the current situation a hungry tapeworm on the economy, amazon's jeff basals and warren buffettunced the formation of their independent health insurance company. it is free from profit-making incentives that will concentrate on technology solutions to provide simplified, high quality and transparent healthcare at a reasonable cost. collectively the three companies worth more than $1.5 trillion employee more than 1 million people. j.p. morgan chase said the three companies have extraordinary resources and our goal is to create solutions that benefit our employees, their families and potentially all-americans. >> it is exciting. or mac michael weinberg of the bay area council, is president of the economic institute and has worked on healthcare issues for more than a decade.>> for any of this to work, you need by an from the people within the company's that will ultimately get better health outcomes and have a better experience. it will require changes. >> reporter: the three were not specific about what they intend to do or how. >> the insurance industry is seven cents on the doll

. >> someone who worked heart and soul, how about berkshire hathaway, warren buffett, amazon, jeff bezosjpmorgan chase coming up with their plan to compete and fill the gaps and potentially take over? >> look, what we have seen and this is what motivated president obama to pursue health care reform in the first place, we have a system that is inefficient, too expensive and delivering subpar results. the goal of obamacare was to encourage innovation and to encourage entities to go out there and look for new ways to provide health care to people at lower costs and that would generate better results. so this kind of innovation we're seeing being announced by amazon, berkshire hathaway and jpmorgan chase is a testament to the foundation put in place by the affordable care act to encourage companies to try new things. this kind of innovation can only be good for the process and it's a testament to the real kernel of idea in the first place to take our health care system, make it more transparent, more accountable to customers, force companies to compete for that business and see what the resu

amazon is a high flyer. berkshire hathaway tends to be more tangible. investing in things that warren buffett can touch. an interesting union as well. david: warren buffett thinks he missed out on a big opportunity with amazon originally. he should have gotten in a at the ground level and he missed that. he has been more open now to investing in tech. he has invested in apple. alix: what do you make of the news? >> exact same thing as david. i think back to something that --eron kreis has pointed out amazon is a really expensive public good. we have seen the market caps they gain or that the acquired company gains generally is exceeded by the drop in the competitors and this kind of crystallizes. they are not trying to make a profit here. this is just something that should eat away at margins and revenues at other places presumably and when you team up with the likes of jpmorgan and berkshire to do this they don't have a motive in this industry but they have a lot of runway to succeed or fail and they are defining success differently than other companies in the space would be. david killed the one thing

. >>> well, after creating a retailing revolution amazon is taking on america's health care. they are teaming with warren buffett and jp morgan chase to form a health care company for their employees and eventually focus on technology to provide simplified reasonably priced care and the goal is to reduce health care burden on the economy. >>> now a look at today's numbers in a rare market slump on wall street today. the dow was down 362 points and nasdaq dropping 64 and the s&p 500 falling 31 and some analysts say that the drop is due to uncertainly ahead of the president's state of the union in washington. but a down day for stocks. >>> time to check the "action news" traffic report. now matt pellman in the traffic center. closing time and time to head home. you are headed home on wet streets not snow covered streets, i would take it easy on it's overpasses, they may be colder and could find slickness, for now we are looking good on the highways, congested 95 from penn's landing to this point at s the vine street expressway on avee. we have a number of suburba accidents on this tuesday afternoon. one if hanks p

amazon it moving into the healthcare business as well. >> that's right. scott mcgrew, brand-new news this morning. >> billionaire warren buffett, the guy who spilled the means, he says berkshire hathaway is teaming up with amazon and jpmorgan chase to create a new healthcare company. he said they will not worry about profits. now, the announcements very vague but healthcare stocks are down this morning on news that they may have a new competitor. >>> big news out of facebook as well.c2'(t&ho the company earlier announced it would get rid of news articles in your news feed and facebook says that so you see more baby pictures, but many suspect it was facebook's latest attempt to combat fake news by just getting rid of all the news. in a facebook posting ceo mark zuckerberg now says the company has changed its mind and will include local news on your facebook feed. he said people consistently tell us they want more local news on facebook, local news helps us understand the issues that matter in our communities and affect our lives. give some of the credit this morning to audrey cooper on the right, she is the editor and chief at

i applaud even warren buffett certainly amazon for et being involved in this. -- [inaudible conversations] >> the stock they really hammer middle man stocks yesterday in hilton. hammering indeed yesterday. it's that time i have to say good-bye and thank you for shaw, and jonathon gentleman thank you very much indeed up very solid tbain on the big board we're up nearly 240 points as we speak 236, 26,314. that's where we are. the cajun navy remember them they're group of volunteer who is rescue people stranded in hurricane flood zone hon or medical record at the "state of the union" speech. the founder of that tbrowp sat with the first lady last night and he will join us after the break. >> we have endured floods and fires and a storms. but through it all, we have seen the beauty of america's soul and the seal in america's spying. each test has forged new american heros to remind us who we are and show us what we can be. we store volunteer of the cajun navy racing to rescue with their fishing boats to save people in the aftermath of a totally devastating hurrican

jeff bezos, jamie diamond, and warren buffett are teaming up to combat high health care costs. their companies, amazon, berkshire hathaway, and jpmorgan chase will form a new company to provide better health care benefits for their u.s. workers. buffett calls rising costs, get this, a hungry tapeworm on the american economy. details are scarce, but the company will be free from profitmaking incentives and constraints. given the resources of the three companies, they could disrupt health care. and that spooked health care stocks. shares of leading insurers and big drug companies and stores tanked yesterday. top insurer united health fell 4%, helping drive the dow down 360 points yesterday. the worst day for stocks since may. >> what a fascinating revelation from a few of the world's richest men. >>> president trump's attorneys trying to keep him from testifying in front of robert mueller's team. they're arguing the special counsel has failed to meet the high threshold required to interview a president even though mr. trump has publicly state he is looking -- stated he is looking forward to meeting with

warren buffett and jamie dimon say they are joining forces. o mplifying their forces enhance technology and drive down health care costs. >> with amazon in play itts refln almost evangelical faith that people have thatru ty can d established business patterns in the way they have done in many other induries. ng we really need to see more details. >> reporter: it's still in the rly planning stage but what could make this different from other employer cost cutting initial tiffs is that the firms are forming their own company. the question is whether they will try to save money by knocking out the middle men who negotiate hospital networks and prices and pharmacy benefit contracts with drug makers. >> i think those who are selling their shares in health care stocks are reading this all wrong. the middleen here have an interest that is aligned with the employers. they are the intermediaries with the health care providers. and the main problem with health care these days is the fact that costs and qualityot are aligned. >> reporter: in fact,msealth care f hailed the news. tona and cvs which want merge their insurance and pharmacy into ante integ h

warren buffett, jeff days us. -- bezos. i figured out what they will do. here's what i think might happen, amazonhink about getting a license to provide drugs, we are good at delivering services and data really quickly. j.p. morgan understands pricing. withhave real-time data how much individuals are paying and how much they will spend and managing insurance is the core specialty at the heart of berkshire hathaway. do you think that is how this shakes out? >> i would characterize it more simply as employers want to have more control over how they spend their health care dollars and the experience that their family and employees receive as a result of that. i think this announcement validates what we have been working on for the last five years in boardrooms across america which is employers are fed up with paying for a lot of health care costs and getting too little in return. they want more control and i think they believe that technology is essential in giving them more control over that experience and spending. our success validates that. >> give me the elevator pitch for what you guys do. >>

early adopter of e-commerce recognizing amazon's retail model would be a winner, he turned it into a party supply, absolute levi anth powerhouse, warren buffettd sam was a wonderful manager and a wonderful human being. sam, we'll miss you. sam taylor dead at the age of 56. "countdown" coming right back. building a website in under an hour is easy with gocentral... ...from godaddy! in fact, 68% of people who have built their... ...website using gocentral, did it in under an hour, and you can too. build a better website - in under an hour. with gocentral from godaddy. . liz: one of the biggest names, if not the biggest, when it comes to hedge funds, stevie cohen, now unshackled by the sec after being suspended for two years from the hedge fund industry, starting off the new year with a bang as he prepares to open up a new wall street firm. what can we expect from his return? do investors who are watching follow what he's investing in, charlie? what's going on? >> here's what we know, and we'll try to unpack this, steve cohen the greatest hedge fund investor of his time, firm was shut down after investigation. he has reemerged because he's barre

and amazons jeff bezos said the health care system is complex and we enter this challenge open eyed about the degree of difficulty. warren buffettdded that our group does not come to this problem with answers, but we also do not accept it as inevitable. >> healthcare is extraordinarily difficult. >> reporter: healthcare stocks slid an average of 5.6% today. we will see how it goes moving forward. >>> the chp is investigating another possible attack on a tech bus on the peninsula. the bus was going north on interstate 280 at about 4:30 pm yesterday. some kind of projectile shattered the window and no one on the bus was injured. this is the seventh time that a tech bus has been targeted on i- 280. in response to these attacks, the chp is stepping up patrols. >>> a new report says that some of the busiest highways and interstates in the bay area have bridges and overpasses that are structurally deficient. some of those spots are 280 in the south bay and 101 on the open edge up. >> hundreds of thousands of cars pass on the structures every day, and our reporter shows us the list. >> reporter: this inspection data was revealed in thi

care stocks take a tumble on the big news that amazon, jpmorgan chase and berkshire hathaway are coming together to find a way to fix health care. warren buffett health care problem is a hungry tape worm on the american economy. >> jo, thank you very much. >>> and one more thing before we go, epa head scott pruitt had some explaining to do after the left-leaning watchdog group resurfaced an old interview where he appears -- well, is pretty critical of candidate donald trump. >> i believe that donald trump in the white house would be more abusive to the constitution than barack obama, and that's saying a lot. >> our own garrett hake attempted to get a formal response from pruitt. key word there, attempted. >> any comment about that radio interview, administrator pruitt? any comment at all, sir? >> excuse us. back up. >> pruitt was hiding there from hake and he had no comment for him but he's now issued a believe me now that i'm employed by him not then when i was not statement. after meeting him, donald trump, and having the honor of working for him, it is abundantly enclosure that president trump is the most consequential leader of our time. n

employee wo warren buffett calling health care costs a hungry tape worm on the american economy bezos and dimon making comments about broadening this to all americans if this works out. amazon has been the specter hanging over health care stocks with questions about what they're going to do in this space. we have asked every health care ceo when they come on our network in the last six months take a listen to what we were told recently. >> amazon, if they were to look at sort of coming in as a retailer or coming in and taking care of cash patients, we think could actually make an interesting partner for us, but i'm not -- i can't comment on how interested they would be coming into a market that's so competitive already. >> we have a very good partnership with them on the consumer side. we sell through many of the big chains that we work with we also sell directly. what i would encourage everybody, we should be acting like amazon is getting into our business. >> you're hearing pretty rosy comments there stocks not react that way. pharmacy benefits managers down significantly as folks worry about the potential competition. same thing for insurers as people worry that this coa

warren buffett's stock? they haven't paid a dividend for years. >> you put it on all the big stocks that have cash flow. people want to be part of the shareholder effort on amazond with cisco go to nader.org, give us your contact. david: you did have success with cisco. god bless you on that. ralph, thanks for coming in. interesting. >> thank you. melissa: head of three major carmakers talking taxes to fox business at the detroit auto show. ford ceo jim hackett said he is opting not to give his employees a one-time bonus because of other profit-sharing programs that are in place. meanwhile fiat chrysler's ceo, sergio marchionne is giving 60,000 employees a bonus check for $2,000. ceo of toyota telling fox business he says he will sell 200,000 more cars because of tax reform and consumer confidence. interesting. david: false alarm fallout, it continues. why one democratic congresswoman is partially blaming the ballistic missile warning mistake on president trump. lieutenant-general thomas mcinerney sounding off coming next. ♪ it's okay. this is what we've been planning for. knowing what's important to you is why 7 million investors work with edward jones. type 2

you like -- and database right, well amazon has hr chief who was rock star, and she oversaw the fulfillment center and brook shire hathaway successor to warren buffett he's in on it, so three rock stars. so insurance expertise, and insurance company that's what they are, and jpmorgan what do they deliver? >> yes, financial expertise they also bring the employee -- employee base, i that also -- three of them combined what they're saying we're going to give you better health care had and a cheaper price so -- it >> woman who -- the wol who was there jpmorgan ran those, so -- there's a lot of that. i don't to dwell on this development in health care to explain the entire stock market decline that we're about to see. because that's not the entire explanation. i suspect that from nervousness ahead of the everybodyings reports from the big technology companies. you know, they're out performing. i don't think so. they're low and they're doing well. i think there's a almost over, tealing of we know we've been talking about the correction is this it? is this it a sense of push this button. >> stuart's point 43.4% of the nasdaq waiting reports today or tomorr

amazon bought whole foods. so we think kroger is a comp compelling value. >> all right >> mark, what about that strategy which, by the way, has made the likes of warren buffett very wealthy over the years. >> it has. and buying some of the winners has been a great strategy. i sometimes call it the high enough to buy strategy all the people who have not paid attention to facebook and amazon and some of the great winners of 2017 and '16 are, i think, capitulating a little bit. i sat around for christmas -- >> wait a minute, mark, do those poem exist who hasn't been paying attention to facebook and amazon over the last couple years? >> i -- we at jp, i said on your show a year ago and told you to buy facebook and amazon and apple. a lot of people said they were too high then. i'm not sitting here a year later th later saying they're uncommon values as i sat around over christmas, we had amazon packages show up, my kids were staring at facebook all day long not a lot as changed stocks are still growing 30%, 40%, 50% i think you want to stick with the winners. >> i'm sorry, does that include apple? >> it does i -- i think it does include apple. i think the names