david sachs, ceo of yammer, in my home game. dave goldberg, my wife. is a really, really good player. i have been on a two-year down streak. i have lost for two years straight in this game. emily: you and your wife have been together before you were very, very rich. how do you manage that transition? you have kids. chamath: we've made a decision that we are giving it all away. emily: how do you want to be remembered? chamath: i want to be a person who hopefully will say generally, you know, did what he felt was the right thing, and then lived a life that was morally true to his beliefs, and in a small way, paid off the debt to his parents. emily: chamath palihapitiya, thank you so much for joining us today on studio 1.0. chamath: thanks. ♪ i just had a horrible nightmare. my company's entire network went down, and i was home in bed, unaware. but that would never happen. comcast business monitors my company's network 24 hours a day and calls and e-mails me if something, like this scary storm, takes it offline. so i can rest easy. what. you don't have a

to contest -- contrast him, david at goldman sachs predicting another flat year. -- a lot of the trendseen this year continuing next year. the strong dollar. goldman is protecting, basically, parity with the end euro by the end of the year and -- with the euro by the end of the year. industries based on strong balance sheets and i u.s. sales -- some of the names that pop up, one that pops up high and the list of both is chipotle. basically no overseas sales. all domestic. scarlet: but then you have to screen for things like e. coli. joe: that is true. that isk -- michael: true, the black swan of burritos. monster beverage is high on the balance sheet. that shows up on the balance sheet, pretty high up there. he is looking at a bifurcated market where these exposures to u.s. sales will do well. strong balance sheets will do well. otherwise, not such a great year. scarlet: they come up with their thesis and what they think will happen. what tends to happen after stocks have a flat year? do they come back roaring back to life? i wrote a column defining flat as less than 2%. scarlet: sounds

david from goldman sachs. alking about the fed in the green room and there is more to come. david: offside all the time. -- all fed all the time. stephanie: a developing story we are following this morning, vladimir putin says there will be "serious consequences in turkey." that is in response to turkish forces shooting down a russian warplane earlier today. vladimir putin says he will not tolerate such crimes. i would like to bring back ryan chilcote joining us from london. trying to get our heads around the ramifications of a statement like this from vladimir putin. what this means for turkey. ryan: i think the ramifications are to fall. i wouldn't be surprised if the russian president on the back of this one after turkey's economic interests. -- they are two fold. there were some suggestions immediately after the russian jet was down by the senators and russian politicians that russia should cut off airlines with turkey. that would hurt turkey. russian tourists are a big part of the turkish tourism business.

. >>> when we come back, david kostin of goldman sachs.ay to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ >>> good tuesday morning. welcome back to "squawk on the street," i'm carl quintanilla with david faber and simon hobbs. s&p has gone slightly positive. dow trying to get there, down three, four points. apple is the laggard today as credit suisse cuts their earnings estimates. let's get to rick santelli with breaking news on wholesale trade. >> september read on both inventories and trade on the wholesale side, but they're both the same. up 0.5% on both. this is larger than expectations by a long shot. expectations were close to unchanged. some revisions to mention. last month on the inventories, 0.1 is now the number versus -- excuse me, 0.1 original, 0.3 now. down 0.1 on sales, now down 0.9. on inventories that half of one percent comes back to the best number of the year, 0.7, in june. kind of interesting. sales comps had the best read of the year as well, except it was april, 1.7. we'll continue

he may say he is changing his mind because we are getting more support from -- jason, david at goldman sachs and was evident that dividend growth and buybacks continue. do you agree? jason: i do, largely because the cost of capital is going to stay very low. other uses of cash that might be more productive, achievee difficult to when rates are this low. they are difficult to pull off as a corporation. it is so much easier to do things that are more immediately accretive, like share of purchases, m&a, dividends. that is likely to continue. tom: call has had the worst of the worst. it is dirt cheap, and is that in,thing we are investing that i just have got to own it? jason: my own inclination is that the regulatory overhang of it andustry would make poor long-term investment for people in the united states. i take no pleasure in saying that. i just think it is difficult to see that being a growth industry. tom: so there is the investment perspective of jason trennert. among other themes, the organization beyond call, maybe we are supposed to get there, but bill nye is with us as well. there i

james gorman has had huge success at goldman sachs. davidrisk and volatility, that's the sort of person i would like to be supervising. it seems like he's got a sense of it and command of it and will not panic. in this particular time in banking, he's the right personality. stephanie: it sure seems that way. we have erik schatzker down in d.c. with mary jo white. erik: thank you very much. i'm honored to be here with sec chair mary jo white, thank you very much. >> glad to be here. erik: you are no doubt aware over the increasing or growing controversialhe role that short-sellers play in financial markets, particularly the stock market. how concerned are you that some short-sellers may be manipulating the market and prices of certain stocks either by publishing research or making public comments that benefit their position? a specificy from matter. the marketplace is built for buyers and sellers to come together with long and short positions so short selling has a legitimate, positive purpose marketplace. that is different than if you manipu

sachs leads the way. joinings now with more this morning on this block buster year for deeals, what's ahead i banking, and culture issues transforming the business, davidsach's co-head of banking. good morning. >> morning, andrew. >> animal spirits in the business, you look in the pipeline, and you any we are where when it comes to the market and the economy? >> well, there's certainly a lot of activity, no question that activity's accelerated. m&a volume you highlighted up over 40% this year, and, you know, hard to say where things are going. our pipeline looks robust, corporate acquirers continued to get rewarded by the market to make acquisitions. an environment where there's growth, but the growth is not robu robust, the best way to characterize, and that environment with reasonable ceo confidence, there's ceos and boards looking at managing portfolios and looking to buy growth in areas. >> how much do you think the fed plays into all of this? we have a running debate on the program every morning about whether the fed's low interest rate policy effectively creates perverse incentives for mergers and acquisitions or different types of travnsactions

hey look, david at goldman sachs was correct this year saying it was a flat year.s also saying next year might be a flat year. and we have high valuations, relatively high valuations and currents underneath it. but if there is no recession, you rarely get a bear market or a lasting one. >> do you think you will see this rotation from growth into value. >> that is the big question. that is the interesting one. people say, hey, it is a narrow market, only the growth stuff is working. exactly. so the bear market already happened in industrial stocks and other things like energy so maybe you could have those guys come back to the fore. >> that might help. because we were talking to adam parker who said it is the new economy stocks that continue to power us forward. and that is what we've seen. >> i think adam is talking to portfolio managers that need a bench mark. if you are hunting for bench market beating stuff, don't go into the beaten up stuff. >> because it hasn't worked. i'm a portfolio manager. >> can tell you firsthand. >> he's preaching. >> if we go from grow

when you think things are going awfully bad, the goldman sachs risk managers to make them go worse. davidcause the reason he took the money was to make a charitable donation. erik: some of it was. it was to duke university and building amenities swimming pool. some of it was to pay his taxes and some of it was to buy yet more valeant stock. stephanie: it seems strange when you think about all the people who have negative opinions about market participants and corporate ceos and the banking industry, they look at this and say i'm sorry, this does not add up. erik: this is what happens when your stock is in a freefall. it's not that unusual for corporate executives to pledge stock in return for loans if they do not want to sell or if they don't have the cash. if they do that, they better be prepared for it to get sold as the value goes down. the bank wants to protect themselves. erik: it's a double edged sword, that leverage. stephanie: the bank should protect itself. i will take you to number 2 -- business is in talks with a voice brokerage business. it would reduce costs and a shrinking m

. >> he actually talked about goldman sachs when he was referring to david costen and his projectionsear that we were going to be flat. he's predicting another flat year next year. i think there will be some areas we'll see a little bit of shifting around. we all know this year it's been about rotation. different sectors always in movement. i think next year the key will be which sectors are the ones leading the market for the majority of the year. i think there's a couple different categories and i would go to the financials once again. >> i think some people could get caught flat-footed, judge, going in 2016 because they will be waiting to see exactly what the reaction is to this interest rate increase and how many we get and that might keep them on the sidelines longer than they should and, thus, they could be chasing rather than participating. >> i agree. i think you need to start positioning your portfolio for next year now. absolutely right with industrials that have been shut out, retailers, some of the stocks that have had a bear rotation coming down. the psychology is i don't

david: are we seeing more people get on board with what goldman sachs wrote last week, that essentiallywill not be big enough and we have to see an uptick in chinese demand? 2% tonese demand is down 4%. the rest of the world is not helping. copper production is up 6% through nine months of the year. thing that could really make things move is priced. until price punishes copper enough that you see even more cutbacks, it continues to be worse and worse. what about production costs, is that pretty stable? >> snooki are copper prices were almost too high to begin with. 202 though we were around per pound, they can get their .ash in under $150 a pound auto traders are looking at saying, we do not think we will see massive copper production unless we see the prices drop further. david: let's talk about naples. seeing the same thing as well? >> similar but nickel has been used as a financial means inside of china. was a big scandal a year-and-a-half ago where banks stopped using nickel as a financing tool and that cost a lot of the nickel come back onto the market in a very big manner. nickel

goldman sachs setting it in a nine dollar -- and $89 price target for exxon mobil. david: julie, thank you very much. that's julie hyman at the markets desk. now let's go to mark crumpton at the news desk. mark: david, thank you. the airworthiness of the passenger jet across from the weekend is being questioned. regulators found its safety and documentation in order earlier this year. an irish company at least to the russian owned metro jet. officials say only an external impact could have caused the crash. >> in less than a minute, the speed of the plane dropped by more than 300 kilometers an hour twoit was a loss of out the . it is impossible for a big transport or passenger plane to move like that, which means the plane was not flying, but following. clapper says he cannot rule out an act of the planebrought down over egypt's sinai peninsula. president obama has signed a thertisan budget bill for debt limit. it increases discretionary spending by $112 billion over the next two years and avoids the default on u.s. financial obligations by suspending the debt limit throu

david: there's a lot of competition. goldman sachs is at the top.ion. morgan stanley is just a hair behind you and jpmorgan and bank of america are there. and there is a bit of a gap before we get to number five. how intense is that competition? >> it's an incredibly competitive business. it's a good business for the banks and everyone focused on it. and on the heels comes a bunch of additional business. it doesn't be the core of a goes on of these investment banking firms and it is quite competitive. meg whitman, ceo for the new company, hewlett-packard enterprise. when we hear greg talk he is on seven of 10 deals, more to come. them this is the -- it won't be simple because of the leverage they used to have in the trading business is no longer applicable. that has only been the franchise, little have little capital with higher attempts. thatu represents lust presents less than 5% of goldman sachs earnings. >> what you are saying is the jewel of the company for the overall company, you are not going to get this back in the trading business. >> when

sachs was down, walmart was up. certainly, that is a consideration. he must take into account. davidg back to the acquisition of precision castparts. i understand standard & poor's was looking into berkshire's credit rating in light of that. noah: buffett has said he wants to use of more than $20 billion in cash to finance the deal. standard & poor's came on with a note saying they are putting berkshire hathaway on credit watch for a downgrade. they have not made a decision recentlyhey just decided to extend their review period another 90 days, so we are still waiting for the final word. david: how common is this, for warren buffett to trim like this? i know he has professed want to hold onto stocks as long as possible. how rare an occurrence is this for him to trim the portfolio? noah: it is not too rare. it all comes down to opportunity cost. when he buys a business, like he is doing with precision castparts, he fully intends to hold it for ever. stocks, he likes to hold on for as long as he can, but he is more flexible there, and has been willing in the past to sell to make a purc

david: welcome back to "bloomberg markets." let's look as some of the biggest business stories in the news. valiant pharmaceuticals says goldman sachsd 1.3 million shares of the company. they were holding them as collateral as part as a $100 million for the loans to mike pearson. he used the loans to finance journal contributions to duke university and find a community swimming pool. 1/5 of the total holdings. we will talk more about valiant in a few minutes. square is selling its initial public offering at 27 million shares with a price range of $11-$13. hoping to raise about $285 million. jack dorsey will have about 26% voting power. facebook is building a virtual reality content creation. a trio of microsoft researchers. they were previous at microsoft research working on projects like hyperlabs technology for stabilizing videos. you can get more business news at bloomberg.com. let's head back to the markets desk with julie. julie: based on earnings. disney, we got this after the close of trade, but he was higher by 2.5%. dreamworks animation, disney coming up with reassuring numbers on espn in particular. those espn numbers and

sachs. they did not know what the hell they even had. davidowitz with this on black friday. brandon of toys "r" us, talk about managing a headache. david brandon, look at that at the 7:00 hour. ♪ jonathan: good morning this is bloomberg "surveillance". i'm jonathan ferro live from london alongside tommy keene and vonnie quinn. vonnie: thanks so much. we are talking about the volkswagen emissions scandal first because some early models could be swept into that cheating scandal. "the wall street journal" is reporting the u.s. and germany engines.tigating audi regulars think the car has a software that tricks pollution control test. china is expected to pass the u.s. as the world's largest airline market within 15 years. industry group predicts the world's passenger total will double by 2030 42 7 billion. this will be a long day for shoppers and even longer for some workers. many of the nation's 15 million retail employees will be back on the job is black friday it a tempsgroup says 700,000 have been hired for the holiday season. that is our bloomberg business flash. wahlberg turned on the -- walmart turned on the black friday magic at 6:

david o'connor will receive a restricted stock grant. it is compensation for what he left behind at the agency. >> their global mergers and acquisitions group at goldman sachsng for the 202011 games. he will step down for his response abilities but serve the firm in a limited capacity. patrick -- magic johnson has been named vice chair of that group. >> you can always get more business news at bloomberg.com. >> let's look at the action around the globe. were littleindexes changed. one market in the asia-pacific region has been outperforming. south korea is dominating asian equities. reporting from hong kong. >> companies driving impressive returns to korean shareholders. seven of the 10 best performers in asian equities are in south korea. 968 and 699% respectively after deals to sell lung cancer and diabetes treatments overseas. shares standout, its climbed by more than 100% this year next to positive reviews for its foundation cream. accolades are another for south korea which tops the innovation index. on bloomberg markets, closed with mark barton and betty liu with earnings from siemens and rwe. spelling giving them more breathing room. what they did wi