mr. buffett is a man of consistency in that. i think accounting is really -- i'd even quote mr. ffett in this capacity. if you really want to understand what a company is all about, what its strategy really is, you simply look at its financial statements and that will tell the tale of where the company is allocating resources, what type of activities it's doing and how well it is doing those things. i think that's what mr. buffett is getting at, you need to understand accounting because that's going to tell the tale of what a company is trying to do, where their weaknesses may be and ultimately where some opportunities may be. . there dean ellis, where are your graduates going when they finish? >> a lot of them start in consulting so they get a sense of what es going on in industry across all lines. many of them will start off in consulting but so many of them want to do their own business down the road. they'll go into finance and pick up their financial skill set so that they can help themselves when they go to start their own companies. but so many of emthis want to start thei

mr. buffett can move quickly. ability to shop itself and it's unclear whether they did that prior to the deal. >> that's one hell of a read. >>> good morning. it is 8:00 a.m. at twitter headquarters in san francisco. 11:00 a.m. here on wall street. and "squawk alley" is live. ♪

mr. buffett can do a transaction why other -- while other americans are harmed?e low interest rates are designed to help the recovery of the economy. they have done that well. 5, and that 10 to is what they are intended to do. they are also intended to help investment. we would be happier if we saw more physical investment and financial investment probably, ,ut they are doing their job and the fed has handled this very well. i can say that. tom: everything was not your fault. you at-- i sat behind your speech, and i saw the physical force that you put into that phase -- that phrase, ultra accommodative. what is ultra accommodative, and why do we have this reticence worldwide to raise interest rates? stanley: ultra accommodative was said at a time when we thought that zero was as low as you could go. it could not be any more accommodative than zero. now we know you can go negative as well. but it is extremely, extremely accommodative to not have to pay nominal interest, to be sure, when you make an investment. that is what this monetary policy is about, and it has

mr. buffett is long gone. jonathan: not much detail on price. a market cap of $27 billion. forward, is the big take away for warren buffett this and weto heavy industry are likely to see much more of that? elliott: we've seen metal working in israel, the biggest acquisition in that country carried out by warren buffett. we've also seen kraft heinz and the railroad. that he said was a bet on the u.s. economy. rather than relying on the likes of insurance, which caused berkshire hathaway to miss analysts estimates on friday, instead of focusing on insurance, which is much more volatile, and stockpicking, he's going for these really big bets that he feels will pay off handsomely over the long term. certainly his stockholders are prepared to stump hundreds of thousands of dollars for a share in berkshire hathaway. that is the kind of thing they expect from the man who is the oracle of omaha. jonathan: thank you very much for breaking that down for us. 47 minutes into the session. here is a picture of the markets. the ftse 100 lower by 0.6%. anglo down by 2.3%. it is the big mine

mr. buffett was trying to say.d quibble a little bit with fred, the markets are not completely there for september. he is 100%, has to do with new tool of reverse repo. the markets are not quite sure how it is going to work. if it will be totally effective racing rates as the fed wants to so it will be volatile until then. liz: viewers wonder what happens if we see a tightening and do you guys think it will be a quarter after point or less than that, fred? >> definitely quarter of a point. that is set in stone i think in terms of what they like to do. the main thing watch the long end of the curve, rather than shortened. liz: talking about yields which by the way hit 2 1/2-month lows for 10-year. >> today is an indicator. if you think fed raising rates will change the structure of interest rates you better be careful. what is going on the fed is raising rates but in china and europe they're pushing rates down, continuing quantitative easing. liz: does that throw us out of whack with the rest of the world with the n

mr. buffett. >> yeah, exactly. one to watch there. >>> dick costolo may step down once a replacement is found for the ceo job. that person would now have to report to three, costolo and three other investors. let's have a look at twitter's stock, down 1.8% on friday. of course, that now fractionally above the ipo price. and down significantly over the last three months. for me, i have to say this kind of comes back to the area where one where he does step down, costolo people thinking if he did step down, he would stay on the board and now he's considering not staying on the board. >> absolutely a possibility. i think this highlights that there is this desire to bring in some new blood on to the board. and perhaps take out some of the old names and bring in some new people. but the question is, it's now been over, what, seven, eight weeks? and we still don't have a name in terms of who is going to be the new ceo of twitter. does that highlight that it's that hard to find a candidate. or is it just when fall comes w

mr. buffett like this is company.laughter] >> he doesn't do very sexy did you see his hand in that picture. doing imitation of an airplane. and, of course, precision cast parts a like a -- because he only had one bad experience with an airline. but he's never had a bad experience with an airline part maker. because he has owned precision for three years. he absolutely loved this company. one of the things iemg dying to ask him ashley is have you been waiting for the fly, waiting to buy it or a lightning bolt moment recently, and i would imagine that it was a price fall. because the stock is down nearly 20% since the years beginning here. so ting that he looked at precision cast parts and said nobody really beats them at what they do. so there's that competitiveness and hey, why not. but you see it is $231. he's paying $235. >> yeah. >> overpay i don't know? >> he, obviously, believes as you said he's been much in this stock for a long time. it's the supplier of choice for the aerospace industry so who are we to doubt

mr. buffett on talking about. david: a sage obviously talking about long-term vision.ls permanently. liz: that's what he says of course. >> there will being moment when there is increase in demand. to your point then, is it wrong to start getting involved now? to a certain extent he is making a play in the airline industry. doing it through a parts supplier. again i think for long-term perspective. you have to time the bottom. i think about things like exxon and chevron. they're the best players in very tough space. i do believe there are companies that will weather the storm. when we come out of it, they're the best performers in the market as well. >> todd, if you had to, gun to head, buy a commodity, which one would you now? >> go back to gold. it is very unpopular commodity. it doesn't pay you. not something you can put in your car and use. however i think is way overpricing fed tightening at least, fed tightening cycle which isn't even on the map. that gold is beaten up based on expectations. until we see the fed do something and economy pick up i think gold is ch

mr. buffett is making now, kind of interesting. >>> and then chinese hackers stealing everything from designsrcrafts, source code, negotiating positions. well, now the president plans to fight back against cyber economic espionage. we'll tell you how, the details next on "countdown." ♪ ♪ do you want to know how hard it can be to breathe with copd? it can feel like this. copd includes chronic bronchitis and emphysema. spiriva is a once-daily inhaled copd maintenance treatment that helps open my airways for a full 24 hours. spiriva helps me breathe easier. spiriva respimat does not replace rescue inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva respimat. discuss all medicines you take, even eye drops. if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain or problems passing urine, stop taking spiriva respimat and call your doctor right away. side effects include sore throat, cough, dry mouth and sinus infection. nothing can reverse

mr. buffett this morning. sense for you get any mr.hether he thought an interest rate rise was an appropriate way of popping a bubble or whether like janet yellen he favors macro tools? clearly, the chairman does not talk about the policy of janet yellen or ben bernanke. i did not ask him about gaming the system. but he made very clear he agrees with stan fischer, his good friend, that they have got to relieve the distortions in the market. erik: thank you for bringing us both stan fischer and alan greenspan this morning. tom keene is in washington. tracy alloway is with us in new york. thank you for the three things and more. stephanie: when we return, warren buffett becoming more of an industrial guy. $37 billiontt's deal when we return. you are watching "market makers" on bloomberg television. ♪ erik: this is "market makers" on bloomberg television. i'm erik schatzker with stephanie ruhle. agreed tohathaway acquire precision castparts in a deal valued at $37.2 billion. buffett is no stranger to big transactions, but precision is not

mr. buffett going downstream over the weekend. vonnie: is this a value play or an energy play?e honest, i almost lost track of phillips 66. it will be interesting to talk about. vonnie: as summer driving season comes to a close. right now on this monday, let's get straight to our top headlines. here's vonnie quinn. vonnie: stocks headed for the worst month in more than three years. msci global index down more than 6% in august, and chinese stocks continue the largest two-month selloffsi

mr. buffett going downstream over the weekend. vonnie: is this a value play or an energy play? tom: i'll be honest, i almost lost track of phillips 66. it will be interesting to talk about. vonnie: as summer driving season comes to a close. right now on this monday, let's get straight to our top headlines. here's vonnie quinn. vonnie: stocks headed for the worst month in more than three years. msci global index down more than 6% in august, and chinese stocks continue the largest two-month selloff since 2008. there is concern that government intervention to prop up the market will fail. meanwhile, fed vice chairman stanley fischer hinted that raising rates has not been ruled out. mohamed el-erian said investors should not count on the fed to ride to the rescue. market has been conditioned to view the central banks as their best friends, so whenever there is a hiccup, people look to the central bank. i do not think this time around the central bank is going to respond. the fed has reason to not do qe4. a new poll shows bernie sanders is now with hillary clinton and iowa. he has p

mr. buffett has noticed the share price.as not been doing so great of late and things is a great opportunity, 3% of the company to add to his holdings to take over the company. a long-term bet not talking about six months or a year. we're talking perhaps a bet that will not pay off until warren buffett is long gone. manus: thank you very much. a big deal. francine: the world's biggest natural oil producer had a rise in profits for the first time. falling fuel prices. . quicker look bloomberg's managing editor for energy and commodities and erik nielsen at the unicredit who stuck around. profit is up. when you look at the real picture, underlying concern. reporter: one, the first quarter, that into january through march. and currency is the main driver. the ruble. and that boosts gas results because the cost. the bigger problems mostly the oil price and the contracts linked to oil price. we are now starting to see lower oil prices. manus: erik nielsen, the whole debate about oil and commodities has different implications for

mr. buffett our preferred holding period is forever. words of great wisdom. charles: so do i. go, ben, what about influences of things outside of fundamentals of market, politics, china? the feeling in this country consumer confidence coming down? people don't feel good about things. sometimes it feels like that also plays a role? >> well i have been around a awful lot of stock traders for awfully long time and spoken to them many, many times. they're wonderful group of people. they don't sell on macro events. they don't sell on macro news. they sell because the market is going down. they want to catch that wave. when market is going up, they buy and catch that wave. they're insulated from macro news. charles: ben, thank you very much. see you real soon. >> thank you. charles: breaking news on the atlantic. hurricane danny is now category 3 hurricane. upgraded twice so far today alone. see on the map, gaining steam and gaining power. bigger question for market players are we in correction? technically we're getting close to it. the bigger question how do we play it. you're goi

mr. buffett said he is looking at other smaller deals as well. >> we'll probably be buying a few small thingsthe next six months. we're in negotiations on a couple. but in terms of a deal of similar size, it pretty much takes us out. >> so we've asked two top stock pickers to size up the industrial sector for us, find out if there are more deals to be had. eric marshall and kevin caron join us. kevin, clearly the industrials were standouts in today's session, beaten up lately on concerns about china. do you expect the buffett effect to have more than a one-day move higher? are there going to be more deals and another catalyst for this sector to go higher? >> i think there will be. you have to have a longer-term view, though. the things that are, no pun intended, buffeting the sector are all the things we're worried about. we're worried about china, what's happening with the stronger dollar, global growth overall, emerging markets. all of these things have caused industrials to lag behind the broader market over the last number of months. it is creating some values there. if you're patient and

mr. buffett his legacy in place he already hassing h succesors in place. >> he made bets whether railroadties home builders this airline airplane parts. >> he wants to apply a company hold it forever, so he really does see this long term holding. >> transaction requires approval by majority pcc's outstanding shares closing expected to occur during the first quarter, of calendar year 2016. >> thank you. >> thanks, we will follow that for you this morning, as details break, congress moving to lift the longstanding ban, on u.s. exports america more energy independent nation as a result of this oil boom commodities expert phil flynn joining us to weigh in on this one. ♪ when broker chris hill stays at laquinta and fires up free wi-fi, with a network that's now up to 5 times faster than before you know what he can do? let's see if he's ready. he can swim with the sharks! book your next stay at lq.com! ...is as easy as it gets. wouldn't it be great if hiring plumbers, carpenters and even piano tuners... were just as simple? thanks to angie's list, now it is. start shopping online... ...from a l

mr. buffett was wrong there, they am i do a first step but they intend to move very, very slowly.et is saying right now, is that they are going to move more solely than their forecasting said. >> market -- keep changing what do you think is priced in for this market when we get data like we got last week, where the employment numbers below expectations, it is a moving target maybe not priced in nor september. >> they've been -- it is got to happen soon september because they've been so firm about doing something. >> think of got to get out of -- >> i wanting to ask because we have had people on show said they need a bullet in the gwynne they need the ability to lower rates if the economy weakens is that the reason to move up? >> no i don't think that is -- >> i won't refeat that. >> you don't do something that might threaten the expansion, just so that you can do something to help save the expansion after -- >> crux of the he issue raise rates and sort of interrupt the economy as getting -- >> only if they think the economy is strong enough to bear it, and there is -- because what

mr. buffett talked about he's got a solid base. the base is there, the base is sticking.e time? >> if he feels vilified, victimized, there are people that will rally behind him. this is not in any way to condone the misogynistic statements, and the attack on megyn kelly is pretty unforgivable. i'm sure he didn't mean it, and john mccain, defending the veterans, latino vote, can he offend all those constituencies and have it grow? yeah. i one party we're not talking about is the millennial. i took on "the apprentice" as a show. i was writing editorials and going and often debating him. he wasn't wild about it, but as i would talk about this, our generation are offended by the narcissism, the millennial just love that straight talk. they love your face, a cynical belief this is the pathway to success, the things that we found abhorrent. plus he's not a quitter. you snow, that art of the comeback i one got set up in a debate in kuala lumpur, but i asked him to talk about your failures and setbacks which he wouldn't do in the u.s. he talked about how leavitt, the homebuilder

mr. warren buffett? in january of two dozen 12 -- 2012, time had a headline about "the optimist.arren buffett is bullish on america." he has lived the american dream and has a great attitude and i think you could help many of the other candidates get grounded. host: thank you for that call. caller: lewis from missouri. what questions would you ask? caller: my question would be benghazi, why we so fixated on benghazi 14 people got killed when the war in iraq, 500 troops were killed and there is no nothing. no investigation. host: thank you for your call. this is from marie. why your democrats trying to cut a deal with iran? for the sanctions working? yes, they were. fox news is showcasing this debate on its website. this is the headline. "with trumpet centerstage, gop candidates ready to rumble in the first debate." caller: thank you. my first time calling. host: we are glad to hear for you. caller: in lakeland there was a letter to the editor said they should all hold up five fingers and was the most serious problems facing the u.s. in the next president. and then hold up the nex

mr. schumer: no. closing tax loopholes. we have been for closing all kinds of loopholes. we believe in the buffett rule. somebody making an average salary should not pay a high a higher rate -- of taxes than someone making over $1 million. lots of different tax changes. >> what would you use the revenue for? mr. schumer: some of these things. >> senator schumer, one of the advantages to your approach on funding highways the repatriation is that -- [indiscernible] passed,ill that just would become available for other purposes -- mr. schumer: first of all, we are not proposing funding through repatriation. we are proposing funding through tax reform, which will finally tax some of the money they make overseas in a fair way. advantage ofhe that is that it gives us a real source of revenue that is robust so we can have a longer-term highway bill funded at a much higher increase around the level of what the president proposed, but a 45% increase. that fund is getting depleted. that is the reason we prefer to take -- in the highway bill.

buffett's company and on the campaign trail -- >> every single one of the policies she is currently pursuing making committee quality worse. dagen: gop presidential candidate carly fiorina taking time at hillary clinton. meantime mrston is expected to announce a new giveaway plan for college students. we will tell you about the next free lunch you might be paying for. taking stock-index futures we have the across-the-board, you are watching "fbn a.m.," your first look at morning markets and breaking news. dagen: new violence in ferguson, missouri. dagen: i-man who opened fire on officers is in critical and unstable condition after being struck when officers returned fire. we have the latest on that story. in business warren buffett does after his biggest takeover target ever. we will tell you about a $30 billion deal burke hathaway has in the works. a big week for earnings, ali baba plus major e.u. as retailers like j.c. penney said to report their latest profits. we will tell you what to watch for. hillary clinton get ready to propose a tuition plan. we have details and shipping mergers, predicting u.s. stock futures ahead of "the opening bell," gains across the board holding steady. good morning, i am dagen mcdo

mr. trump saying what his cabinet may look like. >> look, i don't want to use names. i could say jack welch would be great, carl and you have henry kravitz, warren buffettaid the nicest things about me the other day. he said trump is here to stay. >> you know, he doesn't want to use names but jack welch, warren buffett. is this, i mean, i'm wondering if anybody has asked them if they would be interested in a possible cabinet job. what does this say? is trump just continuing to throw out proposals without any depth, or is this something that could be real? >> i don't know how much thought there was behind this prior to him being asked the question and answering. but you look at the answers he gave, they're all business men, very successful businessmen who came from the private sector. i think that's not surprising given the persona and the campaign he's trying to put forward. the female running mate question is interesting given what he went through last week in the debate. you know, but i really don't think, even talking to people around him, i really don't think a lot of what he does is planned beforehand. so you have to take every answer with a grain