liz: here's the year to date of berkshire hathaway compared to the s&p 500, with berkshire up about 2%sus the s&p 500 up 19%, mr. buffett has underperformed when it comes to berkshire overall, but why -- because you have owned it for 20 years, why are you selling every single share? >> two big reasons. the company's bigger. the cyclical businesses are slowing down in a slower economy. the other reason is capital allocations and there's two parts to that. the first part is mr. buffett has stated repeatedly for years that his preference is to buy companies outright, then maybe common stocks and then his own shares. but when you look at his track record on the companies that he's bought, either on the common stock side outside of apple and you look at precision castparts -- liz: that wasn't common stock. he outright bought those. >> those were the businesses, it is hard to give mr. buffett anything more than a c in capital allegation, businesses he bought outright or common stock picking over the past five, ten years. liz: but you are telling me that the value of berkshire, with its 70 pl

warren buffett made a late night phone it's the financial crisis berkshire hathaway c.e.o. warren buffett made a late night phone call to then treasury secretary henry hank paulson with an idea about how the got called to then treasury secretary henry hank paulson with an idea about how the government might be able to turn the economy around paulson was asleep he had a busy not verman might be able to turn the economy around paulson was asleep he had a busy night working through various policy ideas with his team to restore confidence and wall street working through various policy ideas with his team to restore confidence and wall street egos on to say 1st he woke up he didn't know where he was who is this egos on to say 1st he woke up he didn't know where he was who is this person warring call and he said my mom has a handyman named warren person warring call and he said my mom has a handyman named warren and i'm saying who it why is my mom's handyman calling me you know so he was and i'm saying who it why is my mom's handyman calling me you know so he was so sleepy he cou

its filing with the federal reserve said berkshire hathaway would remain a passive investor.bal news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. i am oahn ha. this is bloomberg. matt, anna? news outr first word of hong kong. minutes away from trading. a look at stocks to watch at the open, including roche, boosting their outlook for a third time as new treatments gain traction. severintalk to the ceo, schwan. this is bloomberg. ♪ welcome back to "bloomberg markets: european open." trading this wednesday morning, your stocks to watch. we are looking at roche. and we have also got a focus on the tech sector. let's talk about roche first. reporter: this stock up 2%. third quarter sales beat the analysts' estimates, for the third time this year, raising estimates, they are starting to move outside cancer drugs, and that is gaining traction. and i know you will be speaking to the ceo. matt: yes, we will be speaking to severin shortly after the market open. withhen what is the story online retail? r

it's kind of cool for people to be able to own a share or par a hare of a company like berkshire hathawaylargely inaccessible to most americans. but by and large, the vast majority of consumers really need a diversified portfolio and any shouldn't have atr concion in any one particular equity. and so i thinkt's an interesting move by schwab. but i think it's lebron jamesly meaning lets for the vast majority of consumers. also, i think there is another point which is important to make which is that it's possible to -- to have this sort of actional exposure currently through exchange traded funds. and so that -- tft sort mechanism already exists. >> you know, there are those also critical of this type o a move. because any say it stcourages ins who should be long-term invested to buy and sell shares and its you know even the pros have a hard time finding the right inpoint and out point and could be detrimental to financial health. >> yeah, i think for the vast majority of oonsumers it really needs to start with thinking about your long-term financial goals and taking a more planning cent re

duracell is a unit of berkshire hathaway.ommented on the lawsuit but energizer seeking damages for false advertising and want to stop the improper advertising as well. they say they are the best but whose is cute you they are similar. rob: who is best? the cheaper one. thank you so much. a student government banned the pledge of allegiance at its meeting. the group when university of oklahoma says it is incompatible with the constitution for saying one nation under god limits freedom of religion and speech. one student points out the pledge was into silver columbus day which is recognized as indigenous peoples day. many students call this move un-american. jillian: a high school taking heat for a banner at its homecoming game. take a look at this. you saw the football team smashing through the sign that reads, quote, make america great again, blasted on social media, proving what appeared to be a political message. a lawyer for the school district said that was not the students intention. rob: chicago police ordered not to he

berkshire hathaway is seeking remission from the fed to potentially increase its stake in bank of americare than 10%. anything over 10% will often trigger a regulatory review. bank of america is now higher by 3%. this is something that people have been speculating about. it appears they are asking permission to go over 10%. u.s. pullback in syria has created a power vacuum and let russia as the dominant power broker in the region. we speak with former defense secretary -- carter about what -- ash carter about what the u.s.'s next move should be. this is "balance of power" on bloomberg television and radio. ♪ and radio. ♪ david: this is "balance of power" on bloomberg television and radio. i'm david westin. ash carter has spent his career in and around the pentagon serving as the number three and number two official at the defense department before becoming the secretary of the defense department under president obama. he has written about his experience in a new book. now he is director of the belford center at the harvard kennedy of school. we welcome him back for today's conversation in

high-quality names such as apple, visa, berkshire hathaway, boeing also lower.any places to hide for investors as we are contending with the selloff. it is not new, we had the disappointing eyes imprint, but it goes back months. let's look at the chart in the terminal. the third quarter tracking as risk off all the way in april. what we are looking at here going back to the third quarter in july, in yellow, we have gold. in white, we have treasury futures. in blue, we are lay at the s&p 500 futures. in orange, we have the nasdaq. prior to july 31, all of these assets were trading higher. gold taking off, treasuries taking off, investors going into those haven assets. that has been the story. the nasdaq having its first down quarter of the year, perhaps a tell on the volatility we are seeing now. we are certainly seeing that continue on the day. truly a bearish day for the financial markets. david: that chart really tells the story, thank you. we want to turn to the opioid crisis. this has hit the united states hard, and the health of our citizens and the expendi

haidi: berkshire hathaway is seeking permission from the fed to raise its taken bank of america abouta level of it offers triggers a regulatory review. the company revealed in july the holding has reached the threshold and has filed an application with a number of insurances it will remain a passive investor in bank of america. if you are away from the screen, you can always find analysis and the day's big newsmakers on bloomberg radio. ♪ haidi: 9:30 a.m. in sydney and the market open is 30 minutes away. here is what it comes to futures. gains on wall street, seeing upside of 4/10 of 1% ahead of the open. it is quite rare we are seeing the trade situation between u.s. and china take a backstage as u.s. earnings drove the majority of gains we saw overnight as well as optimism a brexit deal may finally be in the mix. i'm haidi stroud-watts. shery: i'm shery ahn. let's get the first word news with riddick a coopetika gupta. ritika: sterling jumped as negotiators seem to be closing in on a new draft brexit deal. officials in brussels said the talks have not concluded and there could still

well energizer is taking the matter to court now suing berkshire-hathaway owned duracell for falselytating its quote optimum batteries can outperform all the other batteries. according to energizer, customers actually need to read the tiny little mice-sized print to see -- that's their term, mice-sized print to see that optimum batteries may actually outperform duracell's copper top batteries not rival batteries. duracell is a small part of berkshire business. energizer still getting hurt, down about 7% at the moment. to the economy, u.s. manufacturing saw its biggest contraction in september since june of 2009. that's when the great recession last month the manufacturing index fell to 47.8% from 49.1% the previous month. now, we should tell you that anything below 50% in this number indicates contraction, shrinkage. to our floor show and john, we know the markets hate it right now, but can you glean from this manufacturing number and the impact this data will have on the markets let's say beyond today? >> i think there's so much going on that's on our plate. you throw this number on

warren buffet positive on b of a, looking to increase berkshire hathaway's stake. good morning.t yesterday. jp morgan, stock at a record high. they say the consumer is strong. are you seeing, though, any troubling trends, interest rates coming down, that's a sign of trouble for the banks. are you worried by anything. >> not really, i'm worried politically after the debate last night. other than that, i think china will be resolved by next year's election. we have phase one going. we have phase two, phase three, we'll probably have phase four. lauren: but the banks particularly? >> the banks, no. i'm worried about the interest rate cut an the net interest margins. other than that, i think they trimmed their balance sheet in the last correction in '08 and they've been sitting on hordes of cash. how many people do you know with beg accountbank accounts and the earning 0.01% interest. lauren: what do retirees tell you? >> they're worried they're not saving enough, they're not saving tax smart, that's why i wrote the book, retirement reality check. people are buying stupid stuff. lau

he broadcast out to warren buffett last week that he hoped berkshire hathaway energy, a huge part of the besrkshire umbrella, was practically begging them, come on, buy this in bankruptcy. >> i recognize as the governor described, there's going to need to be a competition of ideas. we need better ideas than are currently in the bankruptcy court which are two hedge funds looking to take over this company. i would expect like any hedge fund, that it would be looking to extract value from the assets and this company may go back into bankruptcy for a third time in just a few years and the taxpayers of course will be left to pick up the tab. so fundamentally, we have a situation where we know either the rate payers or taxpayers are going to be picking up the bill for this and most of us know those are one and the same. i think we should just call the question, at least align the financial interests of the company with the public interests. liz: you really think this has -- well, it wouldn't be the government, it would be the owners, i suppose, the customers could run it better than the pe

dow jones reports that chief investment officer of wedgewood partners which has held berkshire hathaway stock for 20 years sold his firm's entire position by the end of last q2. now, in a letter to investors, he expressed frustration and annoyance that the oracle of omaha has not done enough to return value to shareholders, arguing that share buybacks have been stingy and acquisitions have been more hit -- more miss than hit. as he writes, quote, thumb sucking has not cut the heinz mustard during the great bull market of 2009 to 2019. he is joining us on wednesday to explain why he has sold out of his berkshire position. another investor is demanding buffett use at least 15 billion of the company's 122 billion cash pile to pay out a dividend. now, buffett has expressed to fox business and to me multiple times that he -- [inaudible] -- at the thought of paying a dividend and he would rather make acquisitions. berkshire stock is up 1.9% while the s&p is up 18%. that may have something to do with it. to the u.s. china trade war where the markets clearly believe it is still a war. why? beca

stake in bank of america two more to 10%, a level that often triggers a regulatory review, and berkshire hathaway threshold back in july. its filing with the federal reserve says berkshire will remain a passive investor in the lender. unveil eu is expected to antitrust measures against broadcom, according to financial clients. for them torare pause the activity before the conclusion of a full investigation. the watchdog could talk to the clients about buying chips elsewhere. to is agreeing sell the bellagio resort to blackstone for over $4 billion. it will continue to operate the property under a lease agreement. it is under pressure from investors to unload its casinos. just twots will have owned properties then. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2,700 journalists and analysts in more than 120 countries. i am oahn ha. this is bloomberg. ha, thank you. j.p. morgan rose to a record after posting a jump in fixed income trading revenue and investment banking fees. goldman did not do as well, taking a hit on investments such as uber. city paired losses af

did you see gavin newsome actually said if berkshire hathaway wants to put in an offer to take over.r pg&e, now is the time. >> now is the time there was a period looking for him to do that remember that? >> yeah, i'm sure they would love to see somebody come in and step in. that's an infrastructure that's been underinvested in for decades and decades. they have a major problem on their hand yeah, they may seem the easiest answer for a lot of these people. >>> in the meantime, lvmh confirmed it is in preliminary takeover talks with tiffany. reports say the luxury goods maker whose brands include christian dior, louis vuitton offered $120 a share in cash for the upscale jeweler to value the company at $14.5 billion tiffany shares this morning up by 21% on this news. gain of almost $21 to $119.50 lvmh is trading flat at this point. >> i spent the night as you imagine on the phone about this deal i think what you're going to see just to sort of tell the viewers what's going to happen here, over the next week, as you imagine, tiffany will go through, quote the motions they will reject th

berkshire hathaway six permission from the fed to raise its stake in bank of america above 10%, thatat often triggers regulatory review. the company revealed in july its holding had reached that threshold and is now filed an application with a number of assurances that it will remain a passive investor in bank of america. saudi aramco may have to pay as much as 450 million dollars in fees to advisors working on its upcoming share offering. we are told a group of about 20 banks are off -- are involved in preparations and the fees would represent around 1% of the $40 billion aramco is hoping to raise in the ipo. ♪ that is usually important this is a durable solution because the negative impact of these trade policies are coming through confidence of facts. if we don't think there will be a durable solution, these effects continue to have very weak manufacturing, very weak global trade, and we need to stop that. >> technologically, you are going to correct more and more. targeting or protect is. -- to the 21st century. >> what we are seeing is day-to-day tit-for-tat which is a normal pa

berkshire hathaway disclosed it is filing with the federal reserve.y say they will remain a passive investor. is for the third time, roche boosting its outlook as sales look better than expected. the growth drivers are new drugs which performed well in the last quarter and the erosion in sales has not been as bad as some feared. that is your bloomberg business flash. francine: thank you. let's get the latest from hong kong. threatened unspecified countermeasures if the u.s. congress and next legislation supporting protesters. and in her annual policy address, carrie lam admitted the city has entered a technical recession. >> these industries have recorded the worst business performance ever. the hong kong economy has already slipped into a technical recession. in mid-august, the government lowered the economic growth forecasts for 2019. francine: joining us from hong kong is bloomberg's yvonne man. can the measures help break the political deadlock? >> it's hard to say. she delivered this 29 page policy address but not without drama. it was quite a ra

. >> governor, we have heard from governor newsome that he would like to see berkshire hathaway or someone to maybe run it better than it has been run to this point. we had tom fanning from southern company on he said no way would he invest in this because california politics is too hard to get your hands around and try and figure out what would happen here >> as you know, becky, utilities are guaranteed a rate of return. no other corporation is. and with that comes a certain responsibility to act in the public interest because you know you're going to make a profit. a warren buffett would make a lot of sense to me we need to look for responsible capital, people that realize when you're in the utility, a large part of what you do has to protect safety, ensure power is delivered, and to act first in the public interest. everyone else has to worry about making return on their investment for their shareholders utility executives and boards of directors do not so the leadership at the top of pg&e and on the board is very important and obviously warren buffett was interested, i think he would b

on these assets to come in and maybe step in he asked specifically for a warren buffet and berkshire hathawayid for these things and would like them to take them over. would you be interested in taking over these power plants does it make sense is it a situation you'd like to be -- >> you know, it's almost like the broader economy we've talked about in the past where business loves certainty, you know? we'll invest long-term capital if we see kind of calm waters to invest in. i think that california's not in that situation right now sure, there may be some people that want to come in and speculate on how this thing be's going to turn out but, boy, there are a lot of more cards to be turned over before, i think, you'll get credible long-term investors in this sector over there. >> tom, separately we had a congressman on yesterday from california who seemed to suggest it should be taken over by the state and that these should be run by the state. does that make sense to you? because i was sort of pushing is there a public/private partnership? how do you feel about the private sector being there

. >> we learned berkshire hathaway has requested to buy more. >> i think that's the story.nt to buy a lot more like with wells fargo, they own a stake. the buy backs are in the relative position. >> let's get to wolf, what do you see? >> the beat is 75 cents reported compared to an adjusted consensus of 58 cents or whether it is 54 adjusted for sustain a con sen sis of 51. either way that leads out to a bet of an eps beat revenue coming in at $23 billion against the forecast of $22 billion revenue is that it is essentially flat year over year. citi, wells fargo flat that highlights the general environment. this is an example of a bank very tied to the yield curve the net interest margin came in a little bit better than expected, 2.41% down four basis points many were worse than that. on top of that, net interest income is better than most rivals yesterday because loan growth was strong. the net business income came in in line with expectations versus others being a little behind it was up 1% yearfact, bank of has a slight increase in net income and i don't think any of the

. >> make a big -- spin it out >> spin it out it's sort of a -- it's a different version of berkshire hathawayreaking news overnight iran said one of its tankers were attacked by two missiles in the red sea. john kilduf, cnbc contributor. john, welcome. we're hess sent to say anything about what's really going on here that's why we have you can you say some really inflammatory, incendiary stuff >> i'm here for you. >> would the saudis attack iran? did iran -- did something happen that they -- i don't know, things happen, right things explode does it look like it was actually missiles from the outside? do you know anything at all about what's happening here, what's likely the real story >> i mean, there's complete disinformation about the whole incident, and i'm calling it an incident, not an attack. could be a very scared ship captain whose engine room blew up, felt like a missile, sounded like a missile so he's calling it a missile listen, the saudis swallowed their pride in whole but not responding to the abcac attacks weeks ago. they want to get the aramco ipo out the door they don't want a