the other thing that should be progress that has been at berkshire hathaway is the deal he did in augustn cast parts which is a supplier to the aerospace industry. berkshire shareholders like that because over the long haul, they think the addition of that business will improve earnings. scarlet: this speaks to his relationship with 3g? alix: that has helped some of these mergers? >> yes, no doubt, it has been a hugely lucrative partnership for berkshire hathaway. he has taken some heat about some of their business practices. 3g has aggressive managers and they tend to cut jobs and make operations very lean. financially, it has been very profitable. scarlet: i want to turn to valeant firm ascetical because charlie monger has pushed against the idea that valeant is a value stock he would pursue. he made some strong statements there about it. like andt looks buffet it could be a deep value play. what can you tell us about charlie monger and his discussion of valeant. >> he did not pull any punches. charlie speaks his mind. is in theirn here business model, he does not like the idea of a co

profits at berkshire hathaway a record thanks to a big gain on the stake in craft heinz. but what are some of the losers? we are half an hour into the trading session and we will head to the markets desk, where julie hyman has a look at where stocks are. we are kind of dropping you. seems as though we are pausing, if you will, because we had weeks of gains on the s&p 500, and investors are taking a step back. that seems to be reflected in the drop we are seeing today across the board, sort of a reassessment of what we have been through, sort of our valuations -- our valuations right now worth it? take a look at the bloomberg terminal. price-earning ratios for the s&p 500 -- you can see decline we have had over the past couple years, trading at more than 18 times earnings. that is a little bit above the average, if you go back over the past 10 years, for example. now investors are taking a step back and there is a debate that has been going on about whether valuations are going to be able to expand at the same rate once the fed starts raising rates. the other thing that is

. >> the warren buffett berkshire hathaway beating on earnings but >>> welcome back, let's get a market flash on ibm. seema mody back at headquarters with that. >> the warren buffett berkshire hathaway beating on earnings but a loss of $2 billion from the investment in ibm. but berkshire is sticking behind the company saying ibm continues to be profitable and generate significant cash flows. we have no intention of disposing our investment in ibm common stock. and that we expect the fair value of our investment in ibm will recover and ultimately exceed our costs. sara, ibm shares have been underperforming, down about 14% year-to-date. definitely not a winner so far this year. >> seema mody. thank you for the update. dan, we knew this was the loser recently for warren buffett and now we know it is a $2 billion loss this quarter. >> he talked about how there is a lot of cash flow that they are using to buy back their stock. >> and they are arguing they are buying stock and investing. >> they are just managing earnings and the earnings and the sales are declining. i'm shocked -- >> the jus

buffett's berkshire hathaway is expected to report quarterly profit friday. e reason, a pretax gain of $7 billion on a staking craft times. that is a bright spot in a challenging year for berkshire. geico is struggling with higher costs in claims. over the weekend, the ecb -- great,you are doing david and we have way too bank many davids on the set today. we are going to europe for global go. mario draghi said in an interview over the weekend that further stimulus for the eurozone is still an open question, a little bit of a surprise after what he said in the press conference. our new york chief, jason kelly, is still with us. mark barton has more on this from london. mark: only about a year ago, mario draghi was accused of being unreliable boyfriend for flip-flopping on where u.k. rates were heading. somebody called mario and unreliable way friend. that the ecb will add to stimulus in december. now on saturday with an interview with an italian newspaper, he said it is an open question whether adding further stimulus will be necessary at the ecb's next meeting

and berkshire hathaway cutting a deal in walmart. why the company is backing up its cash. ramy inocencio has the latest on the markets. ramy: good afternoon, we are at session highs, looking at the markets, a bit of a surprise. the dow and s&p reaching toward gains of 1%. .6%.asdaq is up this might be a bit of a surprise after paris but there is growing proof that markets are getting more resilient to terror attacks ever since 9/11. concerning what happened, it might be a surprise that the cac 40 closed pretty much flat. . couple movers to talk about consumer discretionary was the biggest loser, investors pulling example.mh, for energy stocks on the other side. an interesting lack of reaction for the most part. i wonder how the markets have reacted with past terrorist events? here is a look at past events. markets have sharp reactions and then increasingly short-lived. you to the s&p, oil, and the dollar after 9/11. the s&p 500's performance right after september 11, 2001, you see a drop of 12%. here on september 24, the index starts to pull back up. at levelsr, basically

so what he is basically talking about in berkshire hathaway, are the transports.y have had a terrible year. the eyt trades back down to 140. if they leave the broader market, you could see the pullback in the broader market. i always agree with carter braxton worth, by the way. >> we are talking about his big holdings not doing sol. >> and remember, again, it is a portfolio of things. he owns ups and dear and the transports. but alsoveri sign and visa. and if you look at the names, this is an interesting analysis but when you look at the places where he made money, i think they will continue to work. ge has turned some things around. has air behind it. so if you look at it, it is not just a transport story. >> but mr. buffet needs a good old fashion crisis. if you think about the bailouts from ge and goldman and the list goes on and now seven years into the recovery with seven years and he owns a bunch of crap, let's be honest. >> whoa. >> outright crap. >> that is a crazy thing to say. >> coca-cola, kraft, wells fargo, goldman sachs. what i'm saying is -- >> they

. >>> we have a new earnings report on berkshire hathaway.y. >> berkshire hathaway reporting third quarter earnings and it's a beat, earnings up $2769 versus the $2.20 estimate. their equity have increased $8.1 billion and its book value per class a equivalent share was increased to $151,083 that's as of september 30th, 2015. we're still driging through the results but for now back to you. >> a very different order of magnitude than we're used to this hour. thank you. our seema mody. >>> time for a cnbc newsup date over to sharon epperson. >> here is what's happening at this hour. the supreme court has decided to hear another challenge to the affordable care act. this one from religiously affiliated nonprofit groups. they say providing free contraceptives violates their beliefs. >>> a texas jury found a 23-year-old man guilty of capital murdering for killing four people when he plowed a crowd into people at the south by southwest festival last year. he faces a sentence of life in prison without parole. >>> former nfl quarterback donovan mcnab

berkshire hathaway's ceo has had a number of bad bets.ut the one that paid off got the company $9 billion. making up not so hard to do. shares of hewlett-packard rising on the first way of trade since the company split into two. we are about 90 minutes into the trading session. we go to matt miller. are looking at games after the best month we have seen since october of 2011. we are looking at the s&p. 2091. a gain of 12 points. 17,755.s at take a look at the bloomberg pay rip,you pick up wp -- w let me get rid of these pop-up alerts, which is great when you are not on live tv -- the chance of the fed moving in december now at 48%. we have seen that at 50% all day. think theore traders fed will raise rates in december. that has an effect on investors across asset classes. look at the 10 year. the yield declining. investor selling bonds. and change in december when you have that fed rates rise. when the dead raises rates, you do not want to be holding bonds. when the fed raises rates, you may want to get in after about rise and buy bonds r

kansas city southern and berkshire hathaways railway has been expanding their operations ties to the border. rider system xpo logistics and western ker enterprises say the cross border business is one of their fastest growing segments. >> it's a big part of our business. mexico is 20% of revenue as it relates to our one-way trucking operations. it's 14% of total revenues, thing we see getting bigger and bigger over time. >> it isn't just companies doubling down. stat have become more aggressive about capturing trade through their border crossings, as well. until now new mexico has lagged neighbors with the most and biggest crossings in texas followed by california and arizona. but the state has taken dramatic steps to change that and santa teresa is now the 9th busiest freight border crossing in the country. >> governor martinez's vision and certainly the vision of our department is to make new mexico the gateway of trade for the americas. >> a fast track customs program for freight is in the process of rolling out and the state and its mexican counterpart are working to develop a bi

warren buffett's berkshire hathaway beating on earnings but it saw unrealized losses of approximately $2 billion from its investment in ibm. but berkshire is sticking behind the company saying ibm continues to be profitable and generate significant cash flows. we currently have no intention of sfoezing our investment in ibm common and that we expect the fair value of our investment in ibm will recover and ultimately exceed our costs. sara, ibm shares have been underperforming the major indices, down about 14% year to date. definitely not a winner so far this year. >> seema mody. thank you for the update. dan, we knew this was the loser recently for warren buffett and now we know it is a $2 billion loss this quarter. >> it's funny, he talks about how they're generating a lot of cash flow that they are using to buy back their stock. just blow it up. so like at the end of the day -- >> they had argued that they are buying that stock and investing. >> they are just managing earnings, and that's all they're doing. the earnings are declining and the sales are declining. >> the justification

. >>> and warren buffett's berkshire hathaway saw its operating profit actually slip in the most recenter. that's the number the investors look at in this firm's report as it offers the best read of the conglomera conglomerate's performance. the company did see quarterly profit double following its recent kraft heinz acquisition, though. class b shares fell initially after the close but during the regular session the stock was off a fraction to $136.38. >>> and now to our market monitor who says individual stock selection is key in this low-return environment. the last time he was on in february he recommended symantec, which is down 19%. microsoft, which gained 25%. and qualcomm, which is down about 25%. he's jordan posner, senior portfolio manager at matrix asset advisers. and jordan, thanks for being here. >> pleasure. >> we don't have that much longer in 2015, but what is your outlook for u.s. stocks for the end of the year? >> well, we think there's still a chance for bouts of volatility as we've seen in the third quarter. and then of course over the course of october in reverse. w

berkshire hathaway reduced its stakes in goldman sachs.y wanted to liberate cash complete the acquisition of something else. expected to be completed next year. urban outfitters tumbling after buying a restaurant. the deal comes amid concern about a retail. starwood tumbled by the most in two months after receiving an off her marriott the create the world's biggest hotel company area su keenan reports of new york. >> a multibillion-dollar merger deal between married on her with it all appears to be sending the message that bigger is better. it also signals further deals ahead. the $12.2 billion deal to create the world's largest lodging company. 1.1 million rooms worldwide. brands marriott ritz-carlton courtyard darwin w weston and saint regis. at least three chinese companies and rest interest in buying starwood. >> evan contacted by several chinese and their slow. i think the process of starwood it's hard to run the company. it's still possible to show up there's no real good for the company area >> the deal with marriott in which starwo

that was a bright spot for a challenging year for berkshire hathaway. bloomberg business flash. tom: david gura, thank you. westin andext, david stephanie ruhle. what do you have with us today yeah cap stephanie: good morning, tom. we have a lot. this is a big weekend we just came off of in new york city. we are not going to talk about the beloved mets, we are going to talk about the beloved market. we are coming off and extraordinary month where we ended on a high note, but so much was absolutely chewed up. we are going to look at did markets and china. and turkey, the big victory for the ak party, erdogan really entrenching his party. joined byng to be a good friend of yours, tom, and francine. stephanie: if there is anybody -- tom: greatly appreciate it. "bloomberg ." .e talk a lot about revenues will they generate profits? do they take it all from expense control? steven: i think there is going to be a bit of pickup late in this economic recovery. dragll lose the tremendous of a 60% drop in crude oil. but take a look away from that. in the unite

buffett'sarned berkshire hathaway has reduced its stake in goldman sachs by 13%. cording to a regulatory filing, berkshire also cut its stake in walmart by 6%. that frees up cash for buffett purchases the aerospace maker. alix: long-term spending on private jets is starting to slow down for the first time since 2009. a study from honeywell says deliveries from now until 2025 will fall almost 4%. the reasoning is that solid big commodity prices have hurt demand and emerging markets it -- her demand in emerging markets. you can always get news at bloomberg.com. scarlet: let us go to our market desk, starting with the hotel deal that alix steel is talking about. major news in the hotel industry indeed. marriott international says it is winter by starwood. the share price right now is down there by 6.2%. 6/10 of aown by percent here. that new hotel company will be the biggest in the world with 1.1 million rooms. one interesting thing to note is that usually the company that gets bought sees a jump in shares, but we are not seeing that right now this morning because thi

in addition to being the vice chairman of berkshire hathaway and one of warren buffet's longtime businessartners and friends, he is also the chairman of hospital in los angeles, where he lives. he said he had seen up front what he called price gouging valeant by -- price gouging by valeant. for him, what that signaled was a littles that maybe long term would not be sustainable. he really is not a fan of their practices and thought that they used -- the word he used was gamesmanship -- to help boost their profit. he just wanted no part of it. betty: he wants no part of it. itt come- valeant's back to life. it was not moral the first time, and the second time it is not better. he says i am holding my nose. >> that was actually a comment he made back in march. he has been critical of this company for quite some time. that was at a meeting he held with investors in los angeles back in march. that is actually the reason that i called him up this past week and we actually spoke on saturday. betty: and he reiterated that to you? >> exactly. this is something he has been thinking about for a whil

bill lachman is dismissing berkshire hathaway's criticism of the drug company. back about investment in coca-cola. he calls the company's policy deeply immoral. ackman says coca-cola contributes to obesity and diabetes. valley and fought back and said those comments are irresponsible. canceling hundreds of flights scheduled for tomorrow after losing two bids to stop the strike by flight attendants. the strikes continue at habs in frankfurt, munich, in dusseldorf. and a dark is says it is no longer pursuing anadarko says it is no longer pursuing apache. stephen colbert has landed a post-super bowl timeslot on cbs this winter. it will air directly after the game. the slot is the most desired and television. it follows the telecast watched by more than 100 million viewers. you can always get more business news at bloomberg.com. the dollar may be weakening today, but it has still been on a terror of late. now the currency has support of a key ally. the interest rate market. joe wiesenthal joins us now with more. interest rate expectations are rising. colin the keywo

joining us is dean shiverly, from a subsidiary of berkshire hathaways.ne of your products is air care, but what about these things like weather and terror alerts. >> right, melissa. there's two distinct products. the first, air care, is perfect for this time of year, where people are flying, but generally staying with relatives. it covers you for probably six common problems, traveled delays, missed connections, canceled flights. tarmac delays as well. but if you're going out of the country and you're concerned about terrorism, things like that, we have a product called exact care, and then that would cover you for those kind of instances where you either have medical or you need to get evacuated out, but all of those products come with our renown assistance program. that's really what travelers care about, having someone they can talk to to help them. >> how much do these products cost, dean? as a traveler, i look at the costs of my ticket, maybe $300, and pays 10% or 15% of the price of the ticket for insurance that you may never use doesn't necessaril

berkshire hathaway had a lot of energy.way, railroad was good and energy good. >> the core insurance business the only fly in the ointment. you mentioned retail. jpmorgan cutting lb. city cutting their targets on macy's and kohl's. the weather, elevated inventory. what kors and lauren said about the channel. >> i went to macy's. you walk in, the warm weather stuff is right there. it's just very, very difficult. macy's, i remember a time when that stock was trading at 72. it's at 48. what are the activists saying? did they become passivispassivi? >> no, they haven't. i think there's still some hope there will be some sort of a transaction involving their real estate. i said hope. i don't know that it will be reality. they are reviewing it as we know at macy's. in the meantime since starwood first announced the position, the plan, how much value could be created, that stock has done nothing but go down. >> the fundamentals were something that people didn't talk about. one thing that the activists were famous for is that they

berkshire hathaway out before the close and don't forget charles evans will be on our channel as steve has an exclusive with him. still to come on the program, worldwide exchange, great takeaway from investors. shake shack beating on the top and the bottom lines and raises it's out look. we'll chew over the details. that comes your way next. netwo ad revenue and got higher fees from cable and satellite providers. revenue lower than analysts predicted as disney lost subscribers from some of the cable channels. the ceo saying he is still sticking with the company's august forecast when it lowered the cable profit guidance for the year after saying espn suffered modest subscriber loss losses. >> we are continuing to do what we can to make the traditional platforms as successful as possible in this era. we feel good about a number of the steps that we're taking in that regard. we think there will be more to come but generally speaking, as we look at the media environment, the opportunities that we have today to distribute our product to each more people are greater than we have ever seen b

berkshire hathaway is reporting third-quarter net income that doubled from last year to a record $9.4on. the company also reporting unrealized losses on its ibm stake the client to $2 billion as of september 30 or about 15% of the cost of accumulating the holding. berkshire says ibm continues to be profitable and generate significant cash flow and says it has no intention of selling. bloomberg news is reporting hello fresh, the german food delivery startup, is postponing is frankfurt ipo due to market volatility. hello fresh fetched a valuation of $2.8 billion in september. the company delivers weekly meal kits with recipes and ingredients to customers in several countries including the netherlands, the u.k., and the u.s. videogame giant activision blizzard says it is creating a studio to turn its popular videogame franchises into movies and tv shows. the first project will be an animated tv series based on the sky lenders game and toys. the brand has generated more than $3 billion in sales for activision. a startup backed like chinese a startupe has -- backed up by chinese billionair

. >> and the biggest of them all, berkshire hathaway. buying up more of big blue. he also cut his goldman sachs by 7%. they're looking back at his rescue in 2008. providing liquidity for goldman but that's done. cutting walmart by 7%. reporting later on today. >> but he's doing that in part to fund a purchase. he's buying another company. so it's not really a verdict on how he feels about goldman or how he feels about walmart but i think that the one that you mentioned before, that's interesting because the stock has actually fallen 28% since he has taken that stake back in 2011 and he has never made a technology bet before. this is his only real technology bet. he always talks about i only invest in companies that i understand but he likes the if i recall because of its financial management and share buy backs. >> i agree. i think more to the buffet sale of goldman sacks. but let's move on and selling stakes in gold mines which is interesting given the global uncertainty and gold just really apart from a fraction hasn't reacted to the weekend's event. new stake in

>> caller: will berkshire hathaway stock price rise? >> well, what we're going to do is we're not going to think short-term about berkshire hath ai way. we're going to own it. we like the stock. is it going up tomorrow? no, that's not the point when we invest with warren buffett. let's think years not quarters and months. let's think luke in washington. luke. >> caller: boo ya, jim. >> boo ya, luke. >> caller: spirit airlines. >> that was a tough one. remember that last time when stock was down 50 straight points and here i am still telling you to be in delta and if not delta then southwest air. they have better growth prosp t prospec prospects. go to brian in new jersey. brian. >> caller: hey, jim. acp, buy, sell or hold. >> i was speaking with brian the other day. cut back, here's why, they raised the distribution, which is what made me encouraged enough to tell you to buy the stock, and then they didn't cover the distribution when they announced their quarter. and that is not what you do. still own some for the trust but it was very d

warren buffet telling cnbc berkshire hathaway raised it's stake in the quarter.y cut the position by 13% and walmart by 7% to help pay for the acquisition. he is also selling investments. ibm, goldman and walmart are higher today than in europe. >> good tuesday morning. let's get you caught up. here are the headlines today. secretary of state john kerry says cooperation could not be higher with france in fighting isis following talks in paris. moscow is a step up as military efforts in syria as it blames terrorists for downing a russian airliners over egypt and hedge fund filings release that george soros raised his investment in netflix in the third quarter. is a really big deal.u with aches, fever and chills... there's no such thing as a little flu. so why treat it like it's a little cold? there's something that works differently than over-the-counter remedies. attack the flu virus at its source with prescription tamiflu. and call your doctor right away. tamiflu is fda approved to treat the flu in people 2 weeks and older whose flu symptoms started within the l

okay, punches have been thrown between activist investor billionaire bill ackman and berkshire hathawayett and charlie munger over the morality of their respective investments, and this from a guy who wants to be warren buffett. yes. most recently, bill ackman, after saying he wanted to be like buffett, has criticized the oracle of omaha's massive holdings in coca-cola. so does warren buffett have an image problem? charlie gasparino thinks so. the debate is on, because i think it's ackman who might have an image problem. >> i'm to not going to defend bill ackman here, but i think what's going on with warren buffett right now is after, you know, decades of great investment success, i think what he did in the last, i would say since president obama's become president, has gotten way too political. and now, i mean, i don't think you can with a straight face go out there and advocate higher taxes -- and this is what he's done -- on small businesses and turn around and take most of your, take most of your income in capital gains and get taxed at a lower rate. i think that's underscoring a so

the site getaround offers $1 million in liability coverage backed by warren buffett's company berkshire-hathaway and you want to check policies before you hand your keys offful you could potentially cover all the coasts of owning a car if you get into that. >> just thinking about this. >> nina on the four wheeler. >> she's tough. >> it's pretty cool right? >>> a bold smoking ban that >> exactly where it would be in place and why some say it just goes too far. next. flush. >> and i'm bill ritter new at 6:00 we are getting reaction into the eyewitness newsroom in the verdict in the trial. stunning verdict of repoussed mobster for the -- reputed mobster for the lufthansa heist. wait until you hear his reaction to his not guilty verdict. >> plus the best and most expensive solution to the frequent delays on new jersey transit? tonight a new deal to build new tunnels. but who's going to pay that $20 that and more next at 6:00. meet the moore's! we're the moore family, and as you can see, we need an internet that can do more. we do more games, and more streaming. so we need more speed. that's why we s

. >>> berkshire hathaway is driven by a large gain on berkshire's stake in kraft heinz. operating profit did decline from insurance underwriting. a couple of the high profile recent stock picks of some blue chip companies isn't really working that well so far. >> at the moment. >> when you have kraft heinz in your portfolio for one quarter's marks, the rise in those shares is pretty stunning. >> you have a lot of rationalization with that brazil oncompa ian company. it cuts stocks? >> what's the line about the fingernai fingernails? costs are like fingernails, you have to keep cutting them. >> i don't like that. >> unless you're howard hughs. if you do cut them, you store them with the urine and feces back in the -- yeah. he's coughing. >> nice, warm wakeup for you at 6:00. >> you've got to go pretty far out there to start doing that, right? i mean, if you are working for him you'd say, sir, are you -- you know, you'd have to question. there's a lot of companies still named hughes, too, which is weird, isn't it? >> yes. you know who owns the howard hughes company -- >> n

craft counts berkshire hathaway is its largest shareholder in his closing seven factories to cut coststion to the 2500 job cuts announced in august. a spokesman says the reductions will take place over the next 12-24 months. xp is says it is agreed to acquire home away for 3.9 billion dollars. it will pay $38.31 per share. home away hopes the deal will bolster its position in the marketplace fending off competition from air bnd. -- bnb. facebook reported third-quarter revenue of 4.5 billion dollars beating estimates. is $.57. facebook says there are now more than one billion people checking on other people and checking status updates. that sounds creepy. we are with brian belski. the earningsout report and they would talk about organic revenue growth. that's what you do inside the company, like a nominal gdp proxy. will we see a non-growth in organic revenue? >> in totality yes, but what we have seen in earnings so far, there almost through the third quarter, and is very selective. we think even the fact that 55% of revenue come from andrnational and the second third quarter are slow,

companies participating in the parade of earnings, facebook, aig, billionaire warren buffets berkshire hathawayting u.s. vehicle sales. various fed policy members will be making speeches likely to fed headlines, including chair janet yellen makes testimony before lawmakers on wednesday. china's long-held desire to challenge the world's established names turns another ofe today with the arrival its first domestically designed airliner. the -- thetion of 19, what does this mean for china and the global aviation industry? >> china has been really trying to grow its aerospace industry as part of the efforts to really join the ranks of the advanced industrialized countries in the world. that is where the error focus is coming in. they are not just stopping with a single aisle, they are also looking to do wide bodies and develop their own engines. china has a lot of ambitions going forward. i guess the next step for this aircraft is to get some sales. >> right now, most of the commitments they have gotten are focused on the chinese local companies. what they really need going forward is they need to

we do have some breaking news from berkshire hathaway. the company is out with their filing. little bit about what warren buffett has been up to. what he's been buying and selling. if you do go through the math on there there are some changes in his portfolio. ibm that stock increased as buffett mentioned to us last time he was on cnbc he was buying some more. that stake in ibm did go up. more importantly perhaps there's a couple of major holdings that saw a decrease. walmart, his stake in walmart dropped by 7%. his stake in goldman sachs looks like it's down 13%. i just got off the phone with mr. buffett and asked him why he was selling. he said what he's doing with precision castparts. he plans to spend $22 billion of berkshire cash and borrow the other $10 billion. sales of goldman sachs and walmart said these were both non-insurance subsidiary. that's why they were sold. it's not a reflection of a loss of confidence in walmart or goldman sachs. he also talked a little bit of what he's doing because of the paris attacks. i'm not selling any securities because of the attack

pledges 5% of berkshire hathaway every year. they are functioning charitable businesses.all sorts of billionaires. and there are some who don't. some use the tax structures who are legal in place. giveawayot necessarily what gates or buffett is giving away. betty: he has done something with -- >> and he is right in the middle. betty: we talked about that with howard. how does he keep the tradition going. i want you guys to hear what he said. it is when you set a different expectation for your kids and when they think every time i travel, i'm getting into a private jet and every time i land somewhere, i will have a limousine. you set a different vacation. if vacation is, you know, we will save some money and go to florida for a week, and we will go down to the local putt putt to play golf, versus, i will go you just set different expectations to it i'm not criticizing people who have a yacht. if you want your kids to grow up a certain way, then you as a parent have to set the standard. betty: he is much more comfortable being on the farm. thatou hear from others, this topi

we look at a company on by berkshire hathaway, warren buffett realized you are storing raw materialsnd when they want a new carpet you take it back and just created a relationship that goes on and materials don't need ned.e remie it puts money back into your pocket instead of drilling a hole. >> what about governments and the public sector? what can they learn? bill: congress is the engine of change and they often chase businesses. when the government shows up to regulate they decide they don't need to. that's what they can learn. the government can benchmark against these good practices and hold them out as the examples of what society is asking for. they say we like the sick products -- these safe products. reducing toxins, you can say, see these good people, copy them. we have carrots and sticks. regulators are sticks, businesses are carrots. the idea is create a caret big enough for the stick. -- a carrot big enough for the stick. >> has sustainability investment changed corporate interest in being more sustainable? has there been a flow-through impact? bill: people have decided

kansas city southern and berkshire hathaway has been expanding operations tied to the border.n the trucking side, warner enterprises says this is 14% of overall revenue and continues to be one of the fastest growing segments for that company. ryder says every single one of its metrics from revenue to shipment growth has been growing by double digit percentages over the past few years. and acquisitions of conway and pacer were geared towards boosting cross-border business. this continues to be a big opportunity for all of these companies as well as the states. some manufacturing companies as well. we'll get into that as the day goes on. >> will be a huge issue as we head further into the holidays. >>> when we come back, geopolitical issues center stage. markets reacting to turkey's downing of that russian jet. obama and holland set to speak in about an hour's time. california's coastline is a welcoming, wonderful home to everything from surfers to seals. attracting visitors from around the world, around the year. along the coast, protected areas are set aside to preserve a frag

that means investors in the stock market think that facebook is worth more than berkshire hathaway orares now trading at all-time record high. this comes as the company is making more money from advertising. it's also signing up even more members. the numbers are incredible. take a look at this. more than 1.5 billion people have a facebook account. about 1 billion people check it almost every day. remember, it's not just facebook itself. since the company went public a few years ago, they've also been buying up other apps or spinning them off. so they've got 400 million people on instagram alone. that's well above what twitter has. 900 million people on the what's d what'sapp. and they've got 700 million people on the facebook messenger app alone. incredible numbers out of facebook. this one also struck me, jose. they said that 90% of facebook users who are checking daily are now checking from mobile. it was only about 500 million a few years ago. jose? >> what an incredible number. also this morning, some not-so-good numbers coming out of kraft. >> right, not-so-good numbers but we w

$523 billion microsoft 434, exxon still up there, always up there on that list $354 billion berkshire hathaway shares worth 338. you have that idea that amazon and facebook these new world companies now taking their top in the spot. if you go back in our time machine back to 1995 at the end there we asked the folks over at s&p dow jones indices about which stocks were worth the most at the end of 1995, so about 20 years ago and take a look at this, it's general electric, ge back then was worth about $120 billion and then at&t, the two biggest companies out there, about 103. exxonmobil just about 100 billion dollars, coca-cola pushing that mark and merck at $81 pll. this old world industrial type companies, pharmaceutical type companies dominated the s&p 500 at the top versus what we see today more on the technology side. just to put it in perspective back then with $120 billion that valuation for ge made it roughly worth about three times the size of general motors or a pfizer and about six times the size of cisco and worth more, guys, back in at least 1995, bigger than the combined market cap

the berkshire hathaway symposium was yesterday in new york so on he has been insulting valiant pharmaceuticalsey have immoral business practices, believe in the way they operate from a moral perspective. he shows up at the symposium and says coca-cola, who by the way berkshire has a gigantic -- warren buffett walks around with a coca-cola bottle all the time, basically attacked him. attacking coca-cola at this symposium. if you are talking about my company of will talk about yours. saying it causes obesity and diabetes. ashley: is this just childish by billionaires? >> two parents using them as pawns. it is ridiculous. >> he loves 2 billion on valiant. i can understand why he is upset. ashley: that is away it goes. value and has been in the news for a lot of not so positive reasons. cheryl: it is about the cards so watch it. this is that dicey game to play. ashley: so who won? >> i don't think anybody feels sorry for two billionaires. refined sugar is an epidemic but so is cigarette smoking and alcohol, buying drugs from a company and pricing those drugs and fairly. ashley: very well put. stil

berkshire hathaway has reduced its state by 13%.l almost 11 million shares of goldman sachs. confirms that the japanese economy fell into its becond recession since kenzo a took office. pressure on him and the janco -- and the bank of japan to boost interest rates. the former united states secretary of defense william cohen joins us from washington. help us get a broader sense of how the attacks in paris or changing the security situation. you are head of the defense department and have been inside the situation room. as you face this, one of the options open to the united states and the european governments? >> the question would be what is the mission going to be? is it simply to contain isl or try and destroy it. then you try to decide that issue and ask your military advisers given these options, what would you devise as a military strategy to achieve these goals. first we have to decide what we want to do and to accomplish and secondly, how do we do this, unilaterally or with the french were with nato? then you formulate your s

berkshire hathaway, facebook, and agricultural bank of china refuse to participate in these rankings.o not suppose you are a climate change expert. it always strikes me as so curious to companies, supposedly the backbone of support for at least one of the two main parties in america, which the party being skeptical of climate change, these companies are doing something about it. on their own. mike: it's not only corporations. investors, our clients are asking us more and more to incorporate principles into how we are investing. there is clearly a bigger and broader trend that work here. erik: i have to ask -- when you tonvestors ask incorporate environmental, social, governance responsibility to the way that you invest, do they indicate any willingness to compromise returns and exchange for that? mike: no, they don't. erik: that's what makes it so hard, right? mike: yes, however they want us to police that. and we see one of these risks, they want to be sure it that they are getting paid for that risk. it is up to the investors and the people putting the money to work to encourage com

it that metlife is considered a systematically important financial institution and berkshire hathawayiel: i do not want to get into specifics, although i will a metlife because of stock has made a decision and it is on the public record. there i think the emphasis as always is on the characteristics when itirm, which could is in distressed mean problems for the entire financial system. been, the emphasis has with respect to metlife and credential and aig -- the extent of their business, whether derivatives or some of their products, which create funding risk runs, that the f-stop placed them in that a system. , although adgment very well documented judgment, about the participation of these rms in activities that are not traditional insurance activities but activities that connect them with the rest of the system. everyone watching rooms of what happened with aig in 2007 and 2008. david: talk to us about the stress test. daniel: i think the stress test has been the most important and limitation to come out of the crisis in several decades. we started our stress test the mineral of the

profits at berkshire hathaway a record thanks to a big gain on the stake in craft heinz.f an hour into the trading session and we will head to the markets desk, where julie hyman has a look at where stocks are. we are kind of dropping you. seems as though we are pausing, if you will, because we