mark: warren buffett's berkshire hathaway has made another bet outside of the united states. uffett took a further step to expand his commercial insurance operations virtually. archer hathaway will take a 3.7% stake in insurance australia for just under $390 million. we spoke with the ceo after it was announced. berkshire terms -- extended it to the maximum. they are going to expand here. mark: let's take a look at the top stories. in russia, it is playtime for patriots at a place that will never be mistaken for disneyland. vladimir putin is opening the army's biggest defense exhibition at a military and recent park. -- an amusement park. london.t lady is in michelle obama and her daughters are on the european visit. she arrived at number 10 downing street. she will also take tea with prince harry. the goal of her trip is to promote education for girls worldwide. one of baseball's most intossful teams hacked player data. the st. louis cardinals are being investigated. there's evidence that they broke database.stros that is a look at some of the top stories at this hour. talk a

berkshire hathaway making another bet outside the u.s.es reports on latest moves into the pacific. >> he took a further step to expand his operations globally. 3.7% stake into berkshire hathaway. we spoke with iag's ceo after the deal was announced. for iag, it frees up capital. they can then deploy that to build and expand in asia and markets like china, malaysia, and thailand. olivia: bloombergs david ingles reporting from hong kong. now here are a some of the top stories crossing the bloomberg terminal. the golden state warriors have two shots to win the nba finals, but they want to get the job done this time. they hold a 3-2 lead going into tonight in cleveland. the meantime, lebron james says he will do what he -- whatever you can to get a divisive -- decisive victory. the chicago blackhawks won its third series title in six seasons. thean keith scored one of goals and was named the plant m.v.p.. the two biggest makers of videogame consoles are squaring off at the e3 convention. microsoft previewed the next game in his halo franchise

they have a well-known relationship with berkshire hathaway.nk of warren want to put money behind the maker of guinness doubt and johnny walker whiskey? here with wisdom is devon energy. we have not been able to confirm the rumor yet. that is right. we have not been able to independently confirm the rumor. clearly the market taking it a little bit seriously, sending shares of 9%. mark: what is the significance if it goes through? >> this is huge. this company's 70 billion in equity value. this would be an asset. the question is whether the rumor is true or not, could a deal like this happen theoretically? it could. the relationship between 3g and warren buffett. he has helped in the past. the other question is what they buy this and keep it an independent company, or would it , as it has with companies in the recent past, by it and combined with another company? mark: does warren buffett want to put his money behind it? >> a great question. those of us who follow warren buffett in berkshire hathaway the company he -- company see own, they are s

won this auction have ended up or at least one gentleman in particular ended up working for berkshire hathaway as a portfolio manager. maybe the high price tag is worth paying. >> it could be huge with the future dif vends there. a story that skrumped out to me last night. a big change for americans on whether they buy or lease their vehicles. i've heard a lot of this. leasing is in in the united states. what's going on leasing over buying? >> yeah. it's also happening here in the uk. a lot of people looking at leasing because compared to new car prices and the loans that you'd have to take out to buy those cars quite often the monthly payments on leasing are lower. let me just give you an example here. perhaps it explains why leasing is now at an all time high. looking at the averages experience says the first monthly payments in a lease deal a little over $400. they give the price here as $405 and that's against $488 a month if you bought the car outright. with the price of new cars rising perhaps no surprise that those looking at their cash flow want the lower option. and you always get the

usually we are at berkshire hathaway meetings. congratulations. 75 years.ce hot sandwiches now? a 75-year-old brand, we are constantly changing. we are responding to the needs of our consumers and today consumers want healthier options and they want more made for you options. so our lineup, we have sandwiches, snack melts, and our dq treats. when you put the famous dq softserve on top of those streets, they are wonderful. betty: i am looking at some of these items. the triple chocolate brownie. turkey blt. chicken bacon. have you tried all of these items? i have. this has been underway about three years. it actually was discovered in china. we are -- we were working on a project and we said we really think we can offer something other hamburger chains do not have. so dq bakes. betty: who are you targeting here? john: well obviously millenial customers today are looking for more options. at dairy queen, we span all generations. a recent survey came out and dairy queen did as well as anyone from boomers all the way down to millenials. when you look at the men

offering admires a chance to get some one-on-one time with the founder of berkshire hathaway.carlet: here's another top story we both like. starbucks,a cue from free collegeers a education. employees can sign up for online degrees in business and health care at of the new venture universities college for america. anthem will reimburse up to $5,000 a year. employees are eligible if they've been employed for six months and work 20 hours a week. scarlet: the latest job perk. -- youinsurance is so can get health insurance without necessarily being employed full-time. mark: some of the other companies offering tuition. offering up to 5250 th. it seems the other companies are stepping up as well. scarlet: we will also subsidize some people's graduate school degrees as well. what do the companies get out of this? it's great pr. you are buying attention at a nominal cost. to let them go to an online college. starbucks requires students to apply for federal financial aid. the taxpayer subsidizes this as well. i applaud the private sector, but i think the bigger question, the bigger iss

--ks are hathaway is another berkshire hathaway is another one it does not pay dividends. -- beg brookshiret rkshire aside, google wants to spend its money on r&d. the driverless cars. google glass. it is interesting because so many are criticizing companies paying too much in dividends and not investing. here is and what example of the other side. you'll hear about it too. does google wind up getting a lot of pressure? it is so stiff in some ways. money and buybacks is a way to woo the money to some side. guest: their stock price has flattened out over the last couple of years. the last time they were at a record was 16 months ago. alix: that is pretty significant. guest: right, but think of google if you go to the ipo in 2004, it was a dutch auction. google wanted all of wall street to google what a dutch auction was. when they created the new share class, they do things their own way. people can complain all that they want, but these two guys have the voting control. unless they somehow cede control, they can do whatever they want. alix: complain all you want but at the end of the day, t

. -- berkshire hathaway. pimm: do we get any information about what they do speak about?ty: we don't get a lot of information. buffett and the better -- winning bidder, they do an interview together before hand. this is just down the avenue. they do several interviews. then they go into this private luncheon they can invite whoever they want. they have their stake and their wine and they can ask buffett anything it. it's not often they will reveal what they talk about. bidders, it's up to them if they want to talk about what they are asking him. hem: is it revealed what eats? i would imagine he has a cherry coast to drink. betty: he loves his red meat. fries, there you go. he is not a huge eater. he eats like a kid. he likes his ice cream. also auctions off a lunch. . he has done this the last three years. guess with the winning bid was? pimm: $200,000. the money raised by warren buffett goes to a profit -- nonprofit in san francisco. thank you very much. now it's time for the options insights. julie? look at what's going on in the major averages. the answer today is not

berkshire hathaway's warren buffett is increasing his stake in h.j. heinz to 52.5%.% was able to add stake in hinds for one cent a share under terms of a 2013 deal . putburger chain that supersize into the american lingo is slimming down. for the first time in more than 40 years, mcdonald's says the number of u.s. restaurants it has is shrinking. those are your top stories at this hour. it beganp, fit b trading today. its ipo was $20 per share. a strong debut. how will it sustain these gains? we will hear from james park shortly. one professor says all of us should use math to solve life's daily problems. the death of jimmy lee yesterday shocked wall street. one of the greatest dealmakers in history. a formidable golf partner as well. for many he was much more. this morning, matt miller and olivia andns spoke to jack walsh bill cohan. they started by asking bill what it was like to work with jimmy. bill cohan when he had a deal in his sights, there was no one else you wanted more on your side. he could get deals done by snapping his fingers. people on wall street tal

for a look at some of the top stories making headlines -- berkshire hathaway has replaced the ceo ofubled net jet unit. johnson be the new chief executive and he replaces jordan hansell. net jet cells fractional private jets to wealthy individuals and corporate clients. staying on warren buffett -- his annual lunch option drew a top offer topping a million dollars in a charity event plus first full day, better than the pace of last year possibility. the charity event is now at 60 year and concludes on friday. he has raised close to $18 million for san francisco plus glide foundation by offering admirers a chance to get face time with him. microsoft will come out next month with its latest version of the operating system. it will be available for pcs and tablets as a free upgrade for people using windows seven and windows 8.1. senate,standoff in the three controversial nsa programs have expired. the senate could not reach a deal extending the programs because of objections raised by senator rand paul of kentucky. what does this mean for the future of the nsa program and how does it im

berkshire hathaway replaces the ceo of net jet again. souring relationships with their pilots.de him move locations again? ♪ betty: welcome back to the bloomberg "market day." has replaced the ceo at the private jet services company. he is replaced by adam johnson. it is the force time buffett has replaced the ceo of the jet ownership company since 2009 when he replaced richard. what does this tell us? lawrence is here. four ceo's in six years. it makes you wonder whether this is a mistake. lawrence: a lot of people make it -- say it is a mistake. i'm not show sure. i think the business model has succeeded, but they've got to figure out whether they want to be a commodity type business, or a luxury business, offering the full napoli of services. betty: you think this is what is going on, the debate here. lawrence: that is my understanding of it. it was built as a luxury brand. betty: he looked like a slick guy. i great spokesperson and salesmen. that is right. it was very prosperous. it's got into trouble when all asset classes got into trouble. and so david got warren , and so

berkshire hathaway will pay $388 insurersor a stake in australia group. l accelerate commercial coverage and give berkshire 20% of premium payments and make it liable to pay 20% claims over a decade. search teams are back in the woods in northern new york looking for two convicted murderers who broke out of a maximum security prison. state police say a received more than a thousand leads, but so far minogue confirmed sightings of the escapees. law enforcement officials say one of baseball's most successful teams hacked into another teams network to steal data. the fbi and justice department are investigating the st. louis cardinals. there's reportedly evidence that officials broke into the houston astros network containing databases. the mlb says it's cooperating with the investigation. up, it's the license plate every wall street professional should want or maybe not. we'll give you the price tag on that. and the government is panning trans fat. and the latest on the recent security breach at the office of personnel management. we will have that and more

berkshire hathaway is increasing its stake in heinz to about 52.5%.his comes ahead of their merger with kraft foods. buffett was able to add a 5% stake as part of the deal two years ago when berkshire and 3g capital took heinz private. that addedchain super size to americans -- to the american vocabulary is downsizing. mcdonald's is planning to close more restaurants that opens this year. that hasn't happened since at least 1970. those are some of the top stories we're following at this hour. fight overw to the free trade -- the house has passed the president's free-trade bill. mark: peter cook is joining us now. just a week ago, democrats staged what i guess can politely be called a rebellion. they almost killed the proposal. what has changed in a week? peter: politely is probably right. what has changed is not necessarily the votes, but the employed by a house and senate republican leaders to get this bill passed. they had originally linked the to providetrade will assistance to american workers displaced by trade deals. now they have separated thos

berkshire has the berkshire hathaway has replaced -- hasief executive replaced the chief executive at net jet. net jet cells fractional ownership of private jets to individuals and corporate clients. two countries that love baseball are reestablishing diplomatic ties after half a century, so naturally the first visit of a u.s. sports team to cuba involves soccer. arrivedos and pele have for a match against the cuban national team. talk that major league baseball will eventually play an exhibition game. those are the stories we are following at this hour. nextet: coming up in the half hour, expect more of the stock buyback bonanza, but it might not be the best use of cash. mark: the u.s. supreme court has increased the religious rights of workers as justices revive a lawsuit claiming abercrombie & fitch illegally denied it job to a muslim teenager. we will hear from the activist investor who waited tables to turn it around. that story and more coming up on the bloomberg market day. mark: manufacturing is starting to rev up again in the u.s. a new report shows industry expanded more tha

. -- berkshire hathaway has replaced the ceo of its air travel unit.ompany has been locked in a fight with pilots overcompensation. jettional ownership -- net tols fractional ownership wealthy clients. i want to start by heading over to europe where hans nichols has lucked out with the market wrap assignment. hans: did is my gain as well is yours. we see mostly a mixed picture in europe. the dax is down a little bit. we saw a few big movers. we have henkel trading up. athens is closed today so i want to make that. , we see muted numbers. not a whole lot of movement. i want to bring you to the euro. let's take a look at what is happening in the currency market . we saw a sharp drop-off. the swiss franc. we see a little bit of movement but let's take a look at what happened to the euro. throughout the morning it was trending upward and there was some negative news. we are all the way up. we came back up again. quite a bit of fluctuation. last time i checked, this was not there. let's see what's happening with the pound. it looks like the pound has not re

so does warren buffett as berkshire hathaway is a big investor.t was michael moore on the best banking ceo on wall street. mark: missing from that list couldemales, but that soon change. these three women all with three different murray backgrounds are within striking distance of the c-suite, a feat that no woman has done before at the biggest u.s. investment banks and financial firms. scarlet: for some context, we have with us from charlotte via skype, someone with many years of experience as a woman on wall street, mary and, president of turnberry advisor group. we keep hearing about banks are encouraging the number of senior-level women but the numbers indicate that this is just not happening. we have enough women graduating as mbas, banks offering affinity groups, apparently, return to work programs, what is not being done? from my opinion, the primary challenge of what is not being done is we need to get more male leaders engaged in the process. they need to make sure that diversity is a business imperative, not just that they will pay lip se

berkshire hathaway exxon mobil, terrific credits they, they are treated the same with great flexibility as a result. forced by the market to prioritize debt so that people no exactly what they have and when they get it. it strikes me as a misguided idea to force the government into a position where was signaling to the world that we are weak credit. >> i cannot agree more. the technical question i could you pay principal and interest is the. if you pick and choose you will default on something. >> and present very differently. >> if you reach the conclusion that you had to because it would be disastrous not too is to is a terrible place to be because you are still in default. >> the 2nd question is about the liquidity crisis. >> october 15 the fact of any kind of regulatory environment. >> the people running these environments. >> sometimes perception becomes reality. >> i have heard i have heard them say that voelker is the reason. >> treasuries. >> in treasuries you have to question that something in the leverage rules. >> it used to be no matter how many treasuries you had. now you k

berkshire hathaway owns -- [ inaudible ] -- shareholders vote in july on whether they should sell theirny to heinz. >>> mandatory restrictions being put in place for farmers in california. >> the nba champion warriors will celebrate their victory in oakland today. >> we're back in a moment. first erica with a look at the weather. >> you might want to bring the umbrella with you as you head out the door, just in case one of those showers or thunderstorms pops up. basically everyone south of the beltway yesterday. today you might not be so lucky. we'll have the isolated storms popping up and high temperatures between 85 and 90 and more soggy weather ahead for the first people of the coffee drinking world, dunkin' has a dark roast coffee that's deliciously roasted just right for a bold start and smooth finish that's never bitter. put down the dark roast you've been putting up with and reach for the one you deserve. i love the taste. always smooth, never bitter. my cup of coffee is always awesome when i go to dunkin'. man: i see the steam rising off the cup 'cause you know it's a fresh pot.

buffett was able to add a stake for a penny a share under a deal when berkshire hathaway and 3g capitalprivate. facebook's mark zuckerberg and his wife gave $5 million to a scholarship bond called the dream u.s. the money will benefit more than 400 san francisco area students over the next five years. president obama's trade agenda may get second life despite the opposition. the house will vote to give him fast-track trade authority. peter cook is standing by with one of the few democrats who actually supports it, delaware senator chris coons. peter: thanks. i'm joined by senator coons who met with the president yesterday along with other pro-trade democrats. what do you make of this new strategy? are you prepared to cast another tough vote? sen. coons: this is a difficult and unclear path forward. it is my understanding that the house is voting on tpa today. many of us who supported tpa among the democratic caucus believe we should be moving forward customs and taa and that the better -- the help for workers who would be displaced. what many democrats want to see is stronger enforcemen

warren buffett berkshire hathaway is number 4. at number three, oil giant chevron.t for a third straight year is walmart. >> it's like you're calling a race. >> the belmont right here. >> alan did you bring me a horse? he's the editor of fortune. it's so interesting. walmart had $486 billion in revenue and they're announcing they're going to give raises to mary managers. what's the message they're sending? >> i think the gap that's involved. over the course of the last decade while wages have been stagnant is a problem and all the ceos i talk to recognize that. they know it's a big problem and they're trying to think of creative ways to deal with it without undercutting their profits obviously. >> this obviously as norah suggested was ranking by revenues. >> yes. >> what's interesting to me is sam walton died as a relatively young man. he would be hugely wealthy today. probably the richest man by far in his world wouldn't he? >> yeah. his descendants are doing oklahoma. >> $150 billion or something. >> what's interesting is walmart has had a tough patch in the past

berkshire hathaway has replaced the c.e.o. of its troubled air travel unit. be the new chief executive. the company has been locked in a fight with pilots overcompensation. netjets cells fractional ownership to wealthy individuals and corporate clients. enterprise is buying a texas pipeline corporation from pioneering natural resources and reliance industries. the price? $2.1 billion. this deal calls for pioneer and reliance to use the eagle ford pipeline system for 20 years. eagle ford is the most prolific oilfield in the united states. next month, the latest version of microsoft windows operating system. windows 10 is being released in time for the back to school personal computer season. it will be available as a free upgrade for people using windows seven and 8.1. those are your top headlines. erik: we are taking a quick commercial break. coming up, olivia sterns and i will be joined by drew greenblatt to talk about manufacturing. is the manufacturing industry in america alive? if so, what does the trans-pacific partnership mean for manufacturing? ♪ erik:

. >> i'll have something when berkshire hathaway splits. >>> up next we'll continue to follow this breaking we'll speak to the man behind what some are calling the greatest hoodie ever made. the ceo of american giant and his cult hoodies will join us in a moment. ah! aflac? aflac! i thought you said this guy was the best? oh, he's a horrible stylist. gah? but he's the best at paying claims fast! really... mmhmm. paid mine in just one day. one day? yea. aaaflaaaac! in just one day, we approve and pay. one day pay, only from aflac. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business. >>> our next guest makes a hoodie that has been du

berkshire hathaway, exxon mobile, all their debts are treated the same where as weak credits are forced by the market to priorityize their debts. so it strikes me it would be a misguided idea to force the united states government into a position where it was somehow signaling to the world that we're a weak credit. very quickly if you don't mind. >> i couldn't agree more. i think that the reality is the technical question of could you pay a principle and interest misses the point which is that if you pick and choose what you pay you're going to default on something. >> and present very differently than the way we want the united states to present. >> even if you reach the conclusion that you had to do that because it would be disastrous not to, it's a terrible place to be because you're still in default. the only thing that solves the issue is that raise the debt limit. >> when you think about the role of banks which have been very important to our economy for a long period of time which is why the government has supported them which is why we also try to regulate them in ways that make

. >> what's weird about the munger argument though berkshire hathaway they own bsf.n north dakota. i have been to williston a number of times, senator. you can't get the oil out. if you pump let's say they overcome this export ban and all of a sudden we start pumping a bunch more oil again, how are you going to get it out of there? you can't build a pipeline t. irelands are full. >> i think we have proven we can move the oil if we pacific, can find a market. the question is we are moving the oil we are producing, albeit we thought we would be closer to 2 million barrels, we have peaked and are going down in terms of our problems. this export ban has actually had the opposite relate. >> the export ban, i don't know that's responsible as much as oil prices have come down drastically the price itself has been what killed the job. >> that's true across the world. it's much trueer in places like north dakota. >> it's more expensive to get oil out of the ground here. for a lot of people it doesn't make a lot of sense there the expense has flattened. i think it's transporta

berkshire hathaway exxon mobil, terrific credits they, they are treated the same with great flexibility as a result. forced by the market to prioritize debt so that people no exactly what they have and when they get it. it strikes me as a misguided idea to force the government into a position where was signaling to the world that we are weak credit. >> i cannot agree more. the technical question i could you pay principal and interest is the. if you pick and choose you will default on something. >> and present very differently. >> if you reach the conclusion that you had to because it would be disastrous not too is to is a terrible place to be because you are still in default. >> the 2nd question is about the liquidity crisis. >> october 15 the fact of any kind of regulatory environment. >> the people running these environments. >> sometimes perception becomes reality. >> i have heard i have heard them say that voelker is the reason. >> treasuries. >> in treasuries you have to question that something in the leverage rules. >> it used to be no matter how many treasuries you had. now you k

acutely aware of the rising cost of capital if the fed is raising rates, if he's working with berkshire hathawayt if he's inherently aware of the value of the brands. stuart: he's not trying to bring in other brands for a superconglomerate he likes those brands. >> rumors of course and i'm hesitant to buy because of a rumor. but this guy is not stupid. he has successful mergers and he knows what he's doing. that's significant in this transaction. stuart: apple developers conference starts in san francisco. the stock usually goes down on the news at that conference. well, the conference hasn't started, but it's absolutely unchanged. now pandora's stock could take a hit if apple announces a $10 a month streaming service, as they are expected to do. we'll keep you up-to-date on that one. of course we follow mcdonald's very closely. sandra, give me the latest on seams overseas and here in america. sandra: not so good u.s. sales down 2.2%. asian sales down 3.2%. the only bright spot was europe where sales were slightly higher. mcdonald's the ceo says they've embarked on a turnaround plan a tough road

berkshire hathaway is now the majority shareholder in food maker heinz. a new s.e.c.dditional 5.4%. that puts its stake at 52.5%. >>> new york city is taking verizon to task. officials are upset that verizon has 40,000 outstanding requests for its fios tv service. >>> legendary nbc news journalist tom brokaw shares the story of his cancer diagnosis in the new memoir, "a lucky life interrupted." he writes i did not want to become a photo on the internet. tom brokaw cancer victim. we are very happy to have him here this morning. special nbc news correspondent, tom brokaw. great to see you. >> we had lunch at one point and i did not disclose. >> first of all, how you feeling? >> quite good. i'm in remission which is the big news. but i had more bone damage in my spine especially. and getting that back to where it needs to be means that i'm going through a lot of aches and pains with the muscles compensating for that. so i'm doing more yoga, more stretching. the fact is i keep advancing. i can't figure this out. i get older year by year but i'm doing fine. >> i read the b

. >> berkshire hathaway warren buffett, he's still there. >> geico. >> there aren't that many changesigger broader trends in the 500 over the years, it's interesting. for example, this year facebook moves up 100 spots which is huge. and we have a lot of interesting newcomers like expedia, netflix is on for the first time. salesforce.com. you can see the broader shifts. >> so apple doing darn well without steve jobs. >> apple is doing great. if we ranked this list by market value, apple would be number one by far. >> apple is twice as big on a market cap basis as the next biggest company. we talked about europe possibly breaking up because greece owe this is money and they can't pay it. apple has $195 billion in cash mika. they could pay greece's debt that we're all stressed about with .8% of their cash. they could solve greece's entire national debt crisis. >> they ought to buy greece. let's talk about cvs health. they banned cigarettes. and look their top ten. >> exactly. a great example of how a leadership move -- >> cvs health? >> they bought a company and changed the whole thing.

and every year he has a newspaper toss at his berkshire hathaway meeting.comes from the generation where you don't use rubber bands. >> yeah. >> and so i feel -- i will never throw papers as well as mr. buffett i feel a sense of victory that i learned this year how to -- he gave me a tutorial on folding newspapers and i was able to learn that skill. >> delivered the long island press. >> you did it, too! >> all right. >> competition next time you come on. >> isn't that right. >> great american story. paper boy cover, sports illustrated, kathy ireland great to see you. >>> the star of the new tv series and the photograph that is making waves online and in the (mom making airplane sounds) i was just showing him. give me the spoon. kraft macaroni & cheese, you know you love it. ooh that's hot. take it off amore take it off! no! you don't want me any more? you're a pizza, ok?! and we're done! don't let food hang around. nooo!!!!! for that just brushed clean feeling, eat, drink chew. orbit. ladies we need to talk... ... about haircolor. it's garnier nutrisse nou