, ibm is not. it seem he's losing patience. so am i. the fact he's not selling it here at least he's talking about not selling it here, that's a statement as well. >> you think it's a value trap and you think it's a formality at this point that you think buffett's going to sell rest. just a matter of when, not if. >> i do and pete, it's jimmy. i had this bug before about two and a half years ago. i owned ibm for a while. i heard what you said a second ago, like i'm losing patience. sorry, but you got one more quarter, then you're going to tear your hair out and head for the hills. which i think is what's warren's doing. the ai business, cloud business, big data, but particularly, artificial intelligence, it's great business, but it's a tiny part of their overall profit bability. the market cap is too big. and i know you know this, there's 40 billion of debt at this company. i just don't like the exx combination of a shrinking market cap, that much debt. got your largest shareholder walking and i th

buffett's move to sell ibm? >> it was surprising, equally surprising as the day he announced he bought the shares, because for a very long time he had said he would not buy te technology, he didn't understand it. maybe warren didn't understand his purchase fully. i think that's why we're staying in while warren is getting out. >> why are you staying in, and what would change your time? it's been a long time, this stock has underperformed the s&p over the past six years it's up 8%, the s&p is up 90%. >> when warren bought in, a lot of the sales were going to china. there was a political change there and they became china first buyers. so a lot of those sales dried up. but there's a lot of changes that are going on, that's not the only thing. the cloud came in, big data came in. and ibm has really great clients, and by that i mean they're really big companies that depend on the systems that ibm sells them. but here's the thing. we're going to the cloud. so a lot of spending has not been done on what ibm does. and

great other expandability than ibm's pc. >> ibm's entry heated up an already volatile market.uter was forced into bankruptcy last month. and apple, the industry's number one had to concede it was now number two, behind ibm. >> all of a sudden, you were in an old-fashioned competitive business in which you really have to be better than the other guy. >> there are 150 micro computer businesses, and all of them want 10% of a the market and that just isn't going to happen. carnation breakfast essentials light start®. it has protein, and fiber and it's just 150 calories. to help you be your best. try light start. mattress firmness? enter sleep number... she likes the bed soft. he's more hardcore. you can both adjust the bed for the best sleep of your life. save $700 on the temperature balancing i8 bed. go to sleepnumber.com for a store near you. ...where each drop was formulated to be smarter.... ...even smarter than that... ...so if a color didn't go on evenly, it would balance itself out to reveal its truest, richest state. if a paint could realize the fullest potential of any co

ibm's been around a long time.erprise purchases. >> what about real quick internal management team? does this have any impact in terms of the confidence that the board or shareholders will ultimately have? >> at the margin it might. i mean i will say, you know, institutional investors don't have particular confidence in the company. i mean, it's only 60% institutionally owned. that's a lot below other companies like hewlett-packard. you know, they just passed -- the shareholders just did a vote on compensation and it barely passed. it was 46% voted against so there's not a whole lot of confidence in the company right now, and ibm is going through a lot of tough times and so you know i guess internally, you know, maybe there's at the margins some -- that's somewhat morale reducing. but i'm not sure it makes a huge difference. >> okay. james, appreciate your perspective this morning. thank you. >> yep. >> here's what else is making headlines this hour. uber is reportedly the subject of a criminal investigation by the

he sold a third of his stake in ibm. i wonder if that's all he has in store for us as far as the margins. it's always been a fools game to invest in stocks when becky sits down with buffet. i wonder what he'll say about coca-cola's new transition. wha what about the leadership at wells fargo. buffet's aura usually lasts about 24 hours, then it's back to business as usual. first we have newell branch, you might remember this as the old newell rubber maid. mi my travel trust has been pulling back a bit. if you're selling to target, for example, no matter how good your products are and newell's products are good. newell's products don't have any borders and if the company is still able to cut costs in its merger to jarden. it could be a reset quarter for newell. then again if there's enough innovation, there's climbing sales numbers. is it too soon to find out if jarden is still -- any newell pay too much given declining store traffic? as for international fragrances and fashions, you want to sell more products, you make it

he spoke negatively about ibm. about the $7 billion reduction in earnings since he's owned it. sounds like he's got more to sell. is that typical of what you might expect? >> you know, david, i asked him why he was telling us this, when you have the majority of the position, you're holding on to it. i'm sure he knows saying something like this will put some pressure on the stock and will have people watching. he said the reason he told us is that the 13-f filing has to come out next week. if you call it the one year chart of ibm, you'll see where the stock was at $180. at that point he said he's constantsdzly looking at price, looking at what the company is doing and making a value judgment on that. at $180 he thought he'd sell it. the reason he stopped selling it, selling the stock was because it fell below $160. now that came after the earnings news. the reason he had to go ahead and make the filings public in the 13-f he's no longer actively sell it off. he says right now he's not buying it or selling it. but if

that he thought were a threat to ibm.lked before about amazon, how amazing that company is, but big cloud competitor there. >> he talks at length about that. we'll run more of that today on "squawk box." he talks about the competitive environment. he goes out of his way to praise jeff bezos and the amazing runway he's had when it's come to amazon web services, the cloud division they set up. jeff bay soezos set that up and long ahead of the competition. bezos said he thought he had two years of runway before people jumped in, turns out they had more like seven years. we'll run more of those clips later this morning. >> thank you very much. look forward to that great stuff. >> thanks, guys. >> awesome knowledge on the fly of ibm share prices. warren buffett's number of shares. >> how open he is. just answers the question. >> cool under fly. even more to look forward to monday morning. >> our other guest shareholders could learn a thing from that. >>> to france, where today is the last day of campaigning before sunday's pre

is that was getting worse and worse for ibm. -- these numbers are getting worse and worse for ibm.nie: the thing i understand is yes, he says he doesn't understand technology. but also, ibm is almost no longer a technology company. we don't think of it that way. it is a blue-chip, almost. is in a difficult time where you have hewlett-packard, cisco, hardware slingers aren't the leading technology companies anymore. they are stuck with a world that is moving towards the cloud where the companies don't own their own computing stuff. on the other hand, he did not spark a wave of selling, this news. down 3%. we got a clue from warren buffett himself in the annual letter. on the saturday when the annual letter comes out -- vonnie: do we want to hear the rest of the sentence? cory: i go through the annual letter and mark the letter up. vonnie: oh, cory. cory: how can this guy who writes this -- cringe when you hear analysts talk about management who always "make the numbers." this is too unpredictable for the numbers to be met. tended tohey do -- make up numbers. vonnie: but berkshire ha

one of them is ibm. "bloomberg technology" this is ibm in cambridge, massachusetts., the company's cognitive technology watson, famed for winning jeopardy, is now applying its deep learning from everything from technology to cyber attacks. >> ibm was founded in new york. the company has grown into a technology powerhouse. it makes cambridge, massachusetts as its space. ibm security got its start in boston in 2011. >> through the acquisition, we have since grown to 8000 people and we are operating in 133 countries around the world and we have not stopped acquiring companies. more than one dozen companies focused on cybersecurity. >> ibm security brings into billion dollars in annual revenue, and is using watson to monitor potential cyber attacks on its clients around the world. ibm's vice president of security explains how the company applies the technology. about of the real things watson that makes it advantageous for ibm and our customers is its ability to parse massive amounts of information. caroline: and they offer customers a chance to face a simulated cybertek

you own ibm. what do you think about warren buffet selling a third of the position, a sizable position. >> sure. it's always alarming when a large and very public investor is selling out of something that you own. it makes you, you know, take a good look at it, but i think warren and i are on the opposite sides of that trade because i came from the world of software, and i think i understand what ibm is about, and, you know, it would alarm me somebody gets out at this point. because -- you want to know why? >> yes. >> she's teasing us along here now. >> yes, i am. the software that they are selling, they do it by subscription for this cloud kind of stuff, and for watson, so you don't see the same sort of financial characteristics on the income statement and the balance sheet, so he's a very big financial, you know, big in the financials, but the model changes it. >> right. >> that's essentially why i'm not surprised. >> okay. i got it. we're playing 20 questions with kim today. >> and having audio

we talked to warren buffett about ibm, apple, a lot of different issues but let's start with ibm.ren buffett says the case for ibm doesn't make quite as much sense to him as it used to. he told us last night that he went ahead and sold about one-third of the position he held in big blue over the first and second quarters. that's pretty shocking because berkshire hathaway was the largest shareholder and shares of ibm that controlled about 9% of the shares outstanding. buffett told us they went from 81 million shares down by 25 million. they still hold more than 50 million shares, which means there is still a major shareholder. the news is coming out next week, his hand would have been forced with an s.e.c. filing of 13-f filing that was going to be coming out. he told us about it now because he didn't think he could go through the shareholder meeting and not be forth right with telling people what was going on. you see where the stock got above $180, that's when he started selling shares. he says at this point he has stopped selling shares, the stock is back below $160, got there a

joining us, professor gordon, good to see you again. >> hi, sue. >> what do you make the ibm's move? some say that this is basically the company's way of shrinking its workforce, giving employees a choice, but as a result, if you leave, they shrink the workforce. others say it's better to be in an office for the collaborative type of environment that that fosters. >> this is one where you just have to ask yourself, what were they thinking? now, if what they're thinking is this is a backdoor way of shrinking our workforce because people don't want to travel two hours to one of these locations, then it's smart. but if that's not their intent, it doesn't seem smart at all. >> what has been the experience of other companies that have done this, have reversed these kinds of policies? i'm thinking of yahoo! i believe bank of america and others. >> so it varies depending on what your company is. if you're a bank or an insurance company, most of your workers aren't tech workers. they probably like coming to work. in fact when you told them to work from home, they thought they were losing the

do you sell when warren buffet sells and what do you think of ibm?i think it's dangerous to sell when ier anybody sells. warren buffet is such an amazing long-term investor. when you think, they haven't been great. that's not his point. that's not his angle. when i think about it and i look at the berkshire portfolio and those that have moved and haven't, i think the addition of the airlines seem to be those of the first quarter, delta, southwest, american, are all places where they are heavily invested and i think these are places where the valuation and the business cycle and economic cycle for me. >> one of the most remarkable business people of our era. >> he's right, he is. >> he doesn't own any stock as far as we know. >> that would be out of the bailiwick of berkshire atmosphere jay whathaway. >> i know you don't like ibm. >> what's the animal with the quills? >> pork mocupine. >> stay away from it. his price got cheaper because his stock has only gone down the last six years. >> amazon, i have been a fan forever. now i'm saying maybe you get

ibm pine nut the concept of letting its employees work from home but ibm is ending that policy in an effort to create what it calls a more collaborative environment. ibm has 380,000 employees all over the world. >>> 4:38 am. new information about the death of one of the founding fathers of fox news. roger ailes. the corridor in palm beach florida said roger ailes died from bleeding on the brain after he fell last week at his home. roger ailes was a pioneer of conservative, cable tv news and helped turn fox news into a ratings powerhouse. he is credited with helping to elect three republican presidents and he was a major force in american conservative politics. ailes step down last summer after several women came forward with the stories of sexual harassment. roger ailes died at the age of 77. [ music playing ] >>> more reaction to the death of musician chris cornell. the lead singer for the pioneering grunge band, soundgarden. he died wednesday night after performing in detroit. officials there said it was a suicide. that cornell hanged himself in his hotel room. he was 52, born and

bailing on big blue, ibm shares taking a big hit. we'll go back live to berkshire hathaway's annual meeting. more problems at uber. it is now facing a criminal investigation from the justice department. what this means for the company, the future of the ceo. and a sign of the times on the west coast. we all know that home prices are through the roof in many parts of california, but you're going to be shocked how much this little tiny rundown shack went for. i'm brian sullivan and the always undervalued "power lunch" begins right now. ♪ >>> welcome to "power lunch." i'm melissa lee. ibm is certainly the big drag on the dow shaving off about 25 to 30 points. check out wall street. the fear index, not much fear there. the vix around ten-year lows. it was below ten earlier in the session. still, a bunch of movers out there. herbalife of note up 10% right now. now to michelle. >>> i'm michelle caruso-cabrera live in paris, france, because the big presidential election is on sunday. the polls suggest there is no existential threat to the e

later hear how ibm respond.is helping lead the charge when it comes to streaming original content. ben silverman back on the show. "squawk alley" back on the show with the dow now negative 8 points. because geico was a heavy user. the answer is we missed it. i never made a trade in a stock based on gdp figure. every smart guy tempted by leverage, and some of them are broken by it. i never called the president in my life, never. we have not made significant acquisition for 15 months or thereabouts. >> getting a little itchy. a li. >>> some strong words for ibm from social capital ceo and founder just days after warren buffett says he slashed his stake in big blue. he is taking aim at the company's watson product. >> watson is a joke. just to be completely honest, i think what ibm is excellent at is using their sales and marketing infrastructure to convince people who have asymmetrically less knowledge to pay for something. >> ibm released a statement this morning. watson is not a consumer gadget but the ai platfo

lauren: big change for ibm workers.y telling thousands of employees that work from home that they would have have to relocate to regional office. if they do not, they will have to quit. bringing workers to the office will accelerate pace of work. the company is not saying how many workers are affected by the change, but in the past it said more than 40% of employers worked outside of traditional offices. nicole: gathering this week in las vegas. merging markets discussing north america free trade agreement with liz on the countdown. >> you to look at the two countries and focus of attention with the u.s., china and mÉxico and i believe that trump will negotiate a deal that will be beneficial to both sides. there's no question there are problems with trade with these countries, too much in terms of exports going to these country and imbalance with u.s. nicole: well, liz will have more from the conference today including interview with founder and chairman of equity group investments. also maria bartiromo's guests will in

why the investor is cutting his stake in ibm.loomberg tech's live streaming on twitter weekdays 5:00 p.m. in new york. this is bloomberg. ♪ emily: ahead of its annual shareholder meeting, berkshire hathaway's ceo announced he would be -- ceo warren buffett announced he would be tricking his influence. one point trading at its lowest level since november. for more i bring in cory johnson in new york. what is your read on this? cory: the fundamentals of ibm are not the kind he likes. he is not afraid to step into a business to turn around and make progress. if you look at ibm's progress -- his first purchase was of a lower-level. he bought a lot of stock when it was at its all-time highs in 2012 and 2013. it has been a money losing position for warren buffett, a difficult one. the corporate results reflect a business that is contracting, not growing, which is what buffett wants. emily: how much has he lost? cory: we do not know what he has paid for the stake itself. fundamentally, it is a reflection of ibm's business. if you look a

the time we worked together most intensely was after the ibm pc came out.ve had a small group at apple that was doing the macintosh. and he came to us early on and asked us if we would commit resources? so we actually put more people on the project than apple did and did the early application software that used that mouse-graphics interface. and so, it was a huge win both for microsoft and for apple when the macintosh became so successful. david: when your mother first said that i would like you to come and have dinner with me and warren buffett will be here and you should meet him, you didn't seem interested? why is that? bill: i thought he was -- not -- i thought he bought and sold securities. that is not curing disease or a cool piece of software. and the idea of looking at volume curves -- that is why it was so shocking when i met him. ♪ ♪ david: so your company grows, becomes successful. it becomes the most valuable company in the world at one point. at what point to you say, i have made a fair money and i don't need to do this anymore? i want to do so

than ibm.-to-head and see how they do. >> and but just so i understand because i hear this from people in the valley all the time when people talk about watson in fairness to you, frankly, not even to ibm in this instance, they say the technology, the stuff that deep minds is doing, for example, at google, and what done is just at a different level. >> it's at a different level. >> having said that these guys are doing this in a very different way which is to say that they are actually reading and taking in huge volumes of text, things that amazon and google are not doing at all, at least as of yet. >> again, here's the thing. depending on the type of problem you're trying to solve, what you really need to capture is not what is publicly and easily accessible on the internet, but it's sort of all these arcane heterogenus kinds of data. and when you frame the problem that way, people are the resources of an amazon and a google can go out and tesla, which is another example, can go out and collec

ibm pioneered the concept of allowing employees to work from home, but ibm is ending the policy to createit calls a more collaborative environment. ibm has 380,000 workers around the world.>>> still to come up bay area student fulfilling his dream work >> ♪ [ music ] >> how he is making his mark on music despite a debilitating disease. >>> chief meteorologist is tracking a big warm up in the weather. >>> ♪ [ music ] >>> icon set featuring the music of a student who refuses to let parkinson's disease stop him from following his dream.>> amber lee is on campus and this is an older student who wants to share his challenges to help others.>> reporter: tonight the concert was put on by the music department here at cal state east bay. one of the six selections was written by the student coping with parkinson's disease. ♪ [ music ] this composition was written by then rivers. performed by a group of professional musicians. >> it's an amazing feeling. >> reporter: music that plays in his head is now come to life. composing starts with him at the piano. >> hearing voices and birds, i hear music in

he owns apple and ibm. we can glean something from both of these investments if you're looking at the buybacks. you're getting ramped up again at apple, whether it's a consumer products company. talked about watson as an ai play. you can glean miss tech incite there. >> and effectively, i think it was a bet on his part both on the fact that the stocks were cheaper than most of the largest leading tech stocks. to maybe it made more sense. his comments about the firm pricing power of apple and iphone reflects that. he views it not so much as an innovation machine but as a company that everybody is willing to pay up for. that's different. by his admission, miscalculated that company. >>> speaking of the pc market, gates was at the table with buffett and munger this morning. let's take a listen. >> i don't think that the success of the technology sector will be improved by some tax change. the tech companies are not starving right now, and it only comes up when you have profits and these companies have very hig

the ibm security got started in 2011. peopleave grown to 8000 and we are operating in 133 countries around the world and have not stopped acquiring companies. we have now acquired more than one dozen companies focused on cybersecurity. >> ibm security brings in -- it is using watson, the system, to monitor cyber on clients around the world. the vice president of security explains how the company applies the technology. >> one of the things about watson that makes it advantageous is the ability to go through massive amounts of information. >> it offers customers the opportunity to face a cyberattack. theying on the success, have set up a health care unit in cambridge. theyfficer explains why lay down roots in the city. >> there is extraordinary talent and partnerships that we have evolved and continue to evolve a -- and we are in a hotbed of innovation. >> they have the hopes of coming up with the next medical breakthrough. >> why the grey parts of watson is that it is a system that understands natural language and it has

. >>> coming up, the top stories and a round up of the global markets, and ibm can't catch a break.irst buffett takes a step back and now someone is calling watson a joke. "worldwide exchange" will be right back. right back. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov ♪ i love you, basement guest bathroom. your privacy makes you my number 1 place... ...to go number 2. i love you, but sometimes you stink. ♪ new febreze air effects with odorclear technology cleans... ...away odors like never before. because the things you love the most can stink. and try febreze small spaces to clean away odors for up... ...to 30 days. breathe happy with new febreze. if you want to stay on top of your health, one simple thing to do -- is take the pledge to go and get screened for the cancers that might affect you. so stand up to cancer and take the pledge at getscreenednow.org it only takes a minute to take care of yourself, and nothing rhymes with "org"..

but let's contrast that to ibm which he bought six years ago. it's now about 7 bucks below when he started buying. but more important, back then, google which subsequently became alphabet was trading at about $300. now it's $958. of course buffet probably learned of google before that. but it wasn't clear who would dominate the space. you could have bought google even lower than the price i mentioned, because even six years ago. first we have to recognize a hum humbling thing. by the way, it's interesting that he bought ibm stock, without much firsthand knowledge of the company's situation. back when asked about watson, the artificial intelligence platform, it's emblematic of the new ibm. pointing out that it's fast growth is coming off of a very small base. when you put buffet's ibm pick alongside his failure to pull the trigger on google, you have to conclude that nobody in this business gets it right all the time. if even the oracle can make this kind of mistake, you can understand why i'm so adamant that you keep your retirement money in a l

. >>> ibm's reportedly reversing course on having its employees work from home.ioneer in remote work, but it plans to tell thousands of workers to return to the office or leave the company, according to the "wall street journal." ibm says working in the office will improve collaboration and pick up the pace of work. >>> and uber's getting into the trucking business. the ride-hailing company is launching uber freight. the app connects professional truck drivers with shippers looking to transport big loads. uber says for the drivers, it takes the stress out of finding and booking freights. anne-marie. >> all right, jill wagner at the new york stock exchange. thanks a lot, jill. >>> still to come, the skinny on whole milk. why nutrition experts say drinking whole milk instead of skim could be better for you in the long run. lindt excellence created by our master chocolatiers. pure, rich, elegantly thin. experience excellence with all your senses. from the lindt master chocolatiers. the toothpaste that helps new parodontax. prevent bleeding gums. if you spit blood wh

>> yes, ibm is a pioneer in remote work. but it plans to tell thousand it is of workers to return to the office or leave the company. according to the wall street journal, ibm says working in the office will improve collaboration and pick up the pace of work. so interesting there. see how the workers react to that. >> jill, see you in the next hour, thank you. >>> tonight, at 11:00, cbs-3 anchor jessica dean takes you behind the scenes of madam secretary as the cast and crew shoot on location, in washington, d.c., for the first time since the pilot episode. hear from stars like tim dale what i it is like on the set, what to expect from sunday's season three finale. go behind the scenes of madam secretary tonight at 11:00. >>> and coming up after the break, another check on weather and traffic. >> plus, katie, apparently we have another scorcher? >> yes, look that way here guys. eventually there is pattern change that waits in the wings for us. ill he let you know how long that is expected to last, what the seven day has up i

ibm yields 3.9%.writing partner matt, i think that dividend is secure and it might be a decent price to have to buy the stock in order to wait until they turn the champion around to a faster growing company but i think you're okay there. i really do. can we go to anna in florida. anna. >> caller: hi, jim. thank you for taking my call. >> sure. >> caller: i have a couple of questions for you, so i own a few shares of box, b.-o-x that i really purchased and wanted to get your thoughts on the company as a long-term, short-term investment. should i buy more shares. >> i don't want aaron levy the ceo. they report next week. wait till we see the report. stock up 35% for the year. and i fear that there's going to be profit-taking so let's wait. you're in a good position. aaron is going a good job. cash flow positive. can't ask for more. taken over the enterprise and he's done a good job. turns out good guys don't always finish last. last thing the hp won and i couldn't be more thrilled. expect hpq to be amon

. >>> ibm telling workers to get back to the office. they are ordering employees to give up at home workspace and relocate to a regional office more find menu job. ibm pioneered the concept of allowing employees work from home but it is ending the policy in an effort to create a more collaborative environment. ibm has 380,000 workers around the world. >>> this leads to the question of the day. do you work as effectively at home as you do at work? yes, no or maybe you can't work from home. 43% say you can do it. 29% you can't do. 20% say you don't have that option. i love reading comments. diana little says, i work at home as a caregiver and its cost-effective. >> max says i love both. >> laurie says, i prefer to be in the office but only because i live 10 minutes away. >> we will keep taking your responses. thank you for using #ktvu . >>> coming up, pater breakers -- bay to breakers and the race. we talked to police about security measures. food. water. internet. we need it to live. but what we don't need are surprises, like extra month

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i long it. >> starting to sound like ibm. that's already a warning flag, and you're still holding it. >> let me draw a distinction. this is important. it has 30% of its market cap in cash. they've been doing little 900 million acquisitions. >> they've been sitting on the cash for a very long time. >> there's plenty of international companies that can be bought. you look at qualcomm, that doesn't worry me so much. >> i just was going to say that you mentioned ibm as the comparison. you could say microsoft. and think what microsoft did after years of really doing nothing. they got their act together and it's not as if you're an owner of cisco and i love the name, but it's nine times earnings if you do a cash benefit and it's higher, but not much higher. if if you don't, so it's a cheap stock, they've got a lot of legacy business, but maybe it's fading. they could surprise us in the next couple of years and do something the way microsoft built up new businesses. >> do you own it for a surprise? >> a little bit. >> i'm with quou

and he was a 9% holder of ibm altogether.that's there, he looks at what he has, how he can take advantage of that and then have more cash to invest. >> it was interesting to hear how he talked about some regrets. missed google and amazon. and around technology. i wonder what the take away is. >> i think adding on to the further comments in how berkshire hathaway might change and look over the next five to ten years i think the comments about google and apple were very telling. that they were a sign that you know maybe i need to look at new industries and look at things in different ways so i don't miss that the next time around. >> yeah. the comments i mean both on google and amazon this idea that it's very tough psychologically to pay 10 x when you could have bought it at 1 x. if he was forced to do it, he would do it, but hard to get your head into that place. >> it is. going back to that, the stock doesn't know what price you bought it at. it could be more than 10 x. that's the thing about the market. you know, my grandmot

ibm shares fell on friday. he said he was too optimistic about the prospects for the company.blew it byhat not investing early in google. the broadcast group is close to buying the view media. shareld pay about $45 a or $4 billion. they said an agreement may be announced as early as today. a spokesman declined to comment. that is your bloomberg business flash. manus: thank you. china's overseas shipments were up in april but down from the hike we saw in march. imports have increased by 11.9%. surplus ate trade just over a billion dollars. a third monthor in april beating estimates. the people's bank of china says their cash pile climbed by $25.4 billion. a magic number three. to tighter capital controls keeping money from flowing out of the country and the yuan was stable. manus: our guest is still with us. capital controls worked. above three.ber monthlye the chinese reserves in blue. capital controls work but they cannot work forever. you cannot have that roadblock for if you want to a global currency. >> i think this is good news. again, they are trying to slow down a littl

warren buffett has sold off 1 /3 of his stake in ibm.fett is that ibm had not performed up to his expectations when berkshire made the investment, pointing to tough competition. arthur daniels midland says it is planning an expansion in europe this year. that statement contradicts previous reports that it was going to be cutting in europe and ireland. international brain trading are hurting its profits. finally for business, it is the merely successful versus the truly giants, as tech companies battle over the european markets. a group of internet businesses, including spotify, are calling on european commission to rein in what they consider unfair business practices by internet titans like apple and google. those two companies together control over 90% of the mobile operating system market. says they're using that to promote their own streaming expense.at its the european commission is currently in the myths of overhauling digital policy for of block -- in the midst overhauling digital policy for the block your i want to keep my spotify

as a result ibm shares are falling on that bit of news.t overall is fairly flat and mixed this morning. let's check it. a a 900- square-fo a little bit of health from the tech sector as they rebound from yesterday's results. >> thank you, jason brooks from kcbs radio. >>> a broken-down 80-year-old 900-square-foot home in palo alto just sold for $2.6 million. the home hit the market in february for an asking price of just under $2 million. and it sold well over the asking price. tech workers say they have launched many public complaints about the obscene cost of life in the valley. >>> fremont is going green. earlier there week a city council member changed the rules for new housing developments. they must have solar panels and wiring for electric vehicle charging stations. the city says it's an attempt to reduce energy consumption. >>> heads up this morning for bart riders some stations shut down this weekend. bart is closing the tracks between fruitvale and lake merritt in oakland tomorrow and sunday for some maintenance. crews are upgrad

this is ibm and cisco teaming up to try to get ahead of the hackers. >> cisco and ibm historically haven competitors, maybe you don't think of yourselves that way, but what is the view? you come together and be stronger and play against google, amazon, and microsoft? is that what this is really about? >> it's all about cisco and ibm coming together against the hacker. in cybersecurity we have complimentary portfolios. we have both risen to be two of the largest players in the space. $2 billion portfolio at ibm, grown to 8,000 people. cisco is about the same size. we compliment each other to help defend against hackers. i think it's more about the hackers. these guys are relnt leentless. we saw that with wannacry. >> what is the product? >> we have many capabilities. cisco is defending at the network layer. ibm is analytics and watson with cyber. so now we're integrating them. so we're not trying to sell something new. we're saying when you have one plus one, we want to make sure they work together and that ibm and cisco are sharing threat intelligence. that's how you get ahead of the ha

. >>> ibm is reversing course on letting people work at home. the "wall street journal" says they plan to tell thousands of workers to return to the office or leave the company. ibm says working in the office will improve collaboration and pick up the pace of work. >>> taking a look at the financial markets right now on wall street, the dow surging right now up 143 points. >>> the self-proclaimed greatest show on earth is about to take its final bow after 146 years of performances. ingling brothers and barnum & bailey circus is holding its final show this weekend. the circumstances had recently retired its elephant act following backlash from animal rights groups and declining ticket sales are forcing the organization to call it quits. clowns and trapeze artists will perform in their final show this sunday in new york. >>> on the healthwatch, more and more people are ditching low fat dairy products and choosing whole milk instead. many people think low fat is better for your health. but nutrition experts say there could be big benefits to workin

on the down side, disney and ibm. we learned that mr. buffett decreased his holdings in ibm. we had a nice shot not arm. blue chip average, the dow closing up 55. but as you said s&p and nas nasdaq that put in record closing levels, across the board, modest gains for the week. on the s&p, up about a half of one percent. good earnings, solid job report for april out of the labor department. and looking at calla way -- callaway golf, benefiting as nike u unwinds its golf apparel and acces accessory line. shares of callaway golf. david: those brand names, apple, mcdonald's, callaway, brand names sell, jeff, oil, finally finding a floor there to the freefall it has been going on for the last 3 weeks. energy leading today's stock rally. why did oil shore up? reporter: bargain hunters, we got to a level that people had to buy into it. we really got down low today, long at that infrom day chart, we got low as 4376. that is a 4% ls comparedo yesterday. but then, rallie right now in after hours we're up 82 cents to 4634. good for oil, gas prices, well, this is the time of year they go

and ibm losing the confidence of one of its biggest investors, warren buffett saying he sold off about a third of his stake in the company since the beginning of the year. the tech giant hasn't performed the way he expected when he first started buying the company's shares six years ago, but he still owns more than 50 million shares of ibm and he has stopped selling for the moment. >> always one to watch. thank you very much, susan. >>> hard to take your eyes off the warriors these days. a live look at oracle arena. where you can probably hear the reverberations still from last night's rocking crowd. a second straight dominating performance. the warriors go on to win this one, game two against the jazz, at home in the western conference semifinals. you see stuf curry with the signature mouth guard. he hit five threes last night. k.d. led the way with 25 for the warriors, 11 boards and 7 dimes. that is draymond green, in the fourth quarter. he left the court and managed to return to the game. >> i knew my knee was locking up a little bit. i had it before, a little tweak. it wasn't like

why ibm is getting rid of its work from home program. >> it is back.own cup day at 7-eleven today and tomorrow from 11:00 a.m. to 7:00 p.m. you can fill your cup for just $1.50. here's the deal al. i know you like to take the paint can size cup in there to fill it up. keep in mind. the cup cannot be larger than 10-inches in diameter. >> now they're putting parameters on this thing. >> that's the size of a paint can. >> it must be watertight though and just one cup per person. >> are they telling me what to do. >> if you could drink a whole paint can of slurpee. >> brain freeze. >> business beat next. ♪ ♪ >> uber getting into the trucking business. first though we'll check the markets this morning. joining us from fox business network simonetti. hey, it's friday. good morning. >> reporter: good morning. happy friday. >> after that downer of a day on wednesday things rebounded a little bit yesterday. >> reporter: i know. >> we should be in a good mood today. >> reporter: down 372 on wednesday, up 56 yesterday so we got some of it back and up about 20 thi

such as ibm as you just mentioned not paying taxes.se corporations actually going to a 15% rate and reducing deductions and loopholes, which what is this plan is supposed to do, that would increase taxes for those corporations. so you would punish the people who are taking advantage of the system now, but you would lower the rates so people weren't encouraged, people that don't take advantage of the system, wouldn't be encouraged to incorporate overseas. so i think a 15% rate, even if it went to 20%, but a rate in that range would be huge for american businesses. white keep business here. it would be -- it would keep business here. there would be more jobs. encourage corporations to either pay the right amount of tax or stay in the united states, both of which are good. >> i have to ask you, when i look at jeb bush now spending his time buying the marlins with derek jeter, he might be saying, i'm pretty stoked i'm not president. you were in a position where you may have been labor secretary. do you wish you were? >> absolutely. i feel

. >>> ibm is reportedly telling its employees that work from home is no longer an option.ner of cbsmoneywatch.com reports. >> reporter: stocks on wall street staged a comeback after their worst day of the year this week. the dow was up 56 points yesterday. the nasdaq was up 43 futures pointing to a higher open today. four automakers i had to, subaru mazda and bmw agreed to a $553 million settlement over recalls of that kach that airbags. they could be compensated for things while they were taking the car in for recall repairs. >>> ibm was a pioneer inletting employees work from home but now the company is reversing course. thousands of people will have to go to the office or leave the company. ibm says working in the office will improve collaboration and pick up the pace of work. >>> and fidelity investments checks 8 million of its customer's account and found women did better than men by 4%. women take a longer term view of investing and take fewer support risks. >> reebok trying to cash in on a new male ramper trend. >> reporter: reebok has a hood, carbo pockets, a half

. >>> ibm is telling its workers to get back to the office.company is ordering its employees to give up their at- home workspace and relocate to a regional office or find a new job. ibm pino the concept of allowing employees to work from home but they are ending that policy in an effort to create what it calls a more collaborative environment. ibm has 380,000 workers around the world. >>> almost 16 million car owners will be compensated after the biggest automotive recall in american history. four carmakers have agreed to pay $553 million to settle a lawsuit stemming from a massive takata air bag recall. those faulty airbags could explode and injure drivers and passengers. they are blamed for at least 16 deaths. the car owners who had those airbags will get up to $500 and compensation for out-of-pocket costs once the deal was approved by a judge. >>> controversy is brewing over a blue bottle coffee location in san francisco. the oakland-based company wanted to open a shop in lower haight where the mom-and-pop coffee shop shut down. to move to

no way ibm. >> no. >> i owed him. >> you can't say no way and you own it. >> i own ibm. i am selling calls. yesterday, all i do is sell calls against it. on top of the dividend deal, supercharge this thing, with the hopes that maybe they can turn it. >> why don't you. >> i think they will. >> are you waiting for buffet? >> i'm actually not waiting for buffet to sell aerial, i'm waiting for him to get more active to make radical changes there as well. >> speaking of the dow, our next guest says there is one compelling reason to buy, the cart master, carter is at the plasma, carter, details. >> at the plasma. it's getting down to tend. i want to start with that. the total return in investment blows away absolute investing. in fact, half of all long-term returns come from dividends. i try to remind myself of that, let's look at heard and now. so what we have is a two, three-year chart of the s&p itself, actual and total return. of course, it's quite clear, that you are starting to get a better result when you compound those dividends. let's pull it back a little further. th

. >> so in this conversation, ibm has not come up. ibm's watson has not come up.. he said watson is aic jo. walk it back vlt. it's behind. what is your take on it? you have been reading all crease crazy books. >> you don't see it. right. the difference is watson tried to product size it. they wanted to be the old ibm. you know, fear, uncertainty and doubt if you don't have us, you are out of luck. that's not how ai works, it's all implementation, how you build a newer network, assign the variables and test it and use it to generalize. you have to start developing that internal knowledge. that's why you see, i mean, facebook, google, netflix, they're hiring all over the world, trying to dominate it. our biggest threat isn't the market price, it's china. we can't do things with computer vision and facebook recognition. >> they can. >> they can do whatever, right? they get to push ahead further. so they're getting too far ahead of us our biggest risk. >> mark, thank you so much, mark cuban. billionaire investor. all right, we got a lot more coming up. a special appea

math and computer science, that's why worked for ibm.hat is why this presentation is a bit different than what normally happens. i hope you enjoy this unique way of looking at it. this is how it began. [laughter] of us had just one eye softball championship down in florida. we went out to celebrate. winter got a sam adams beer and my friend said, do you know much about sam adams? i don't know anything -- he sort of related to john adams. he sor said you should read a book on him. i said i don't read books about history, but i read it. when i thought of last night's that did you know that peers a gateway drug to american history? watch this. the first book i read since college in history was this book on sam adams. i read it and i was like, i don't know what this precious person did for our nation. , if this author can get me excited in history, what else did he write? he wrote one on henry knox. a bookstore owner that self educated, and then i just kept going. being a type a personality, i just kept going. i was focused on early american

cambridge,go to where ibm has made investments. big blue upblue -- to?bling powerful cognitive technology on jeopardy in 2011. it now is everything the company is bringing to its customers. machines applying deep learning to monitor for cyber attacks. it was foundedo, and the company has grown into a technology powerhouse, making cambridge the base for innovation in the health field. it got its start in boston in 2011. >> through the acquisition of in 133s, we are countries around the world and we have not stopped acquiring companies. thanw have acquired more one dozen companies focused on cybersecurity in the boston area. watson, theusing analytical computer system, to monitor potential cyber attacks on clients around the world. the vice president of security explains how the company applies the technology. >> one of the things about watson that makes it advantageous for ibm and customers is the ability to go through massive amounts of information. >> it offers customers a chance that ita cyber attack believes is a learning tool. it has set up a health