warren buffett when it comes to investing, genius. bill gates, what he does, a genius. same can be said about ted turner for what he did. just because these people are superb in one area doesn't mean they are fountains of wisdom. i think it is insane, they're giving away their fortune to charities. i am reasonably familiar with charities and the way they work. they dissipate capital. often times the money given to people to -- thousands of people, for the good of the donor to make some feel good, or to help from compensate for their past sins in their own mind but the people who get the money, tends to cement them to the bottom of society. most of the charities's money goes to fund-raising parties, so no, i think it is foolish. warren buffett really wanted to help the people of the world he would just continue what he is doing forever, growing capital, the way we all become wealthier, by increasing the amount of capital in the world, not by kissing it away to people who haven't earned it. >> host: who is st. louis k. alex the book's structure? >> guest: lewis worked for

warren buffett is coke's biggest shareholder, so maybe that's hard to imagine.hen again, think about anheuser-busch and sab miller, or kraft and mondelez. big, transformative deals do happen, and sometimes they surprise. >> joining us now to talk more about coke and whether it needs to do something big is ally debage, senior analyst at sanford bernstein. welcome. thanks for being with us. >> thanks for having me. >> talk to me about the future of coke. you know, ty's piece just left off with, you know, big deals maybe need to be done. is that the case for coke or no? >> i think there's certain things they can do structurally. i think one of the big things they are doing and they have to do is get out of the distribution system, right? they have to get rid of their bottlers. that's something they're starting to do slowly. we would like them to do a little bit more. but you know, they are a branding company. they should stick to branding. that's one of the major things they should focus on. >> what can get the stock going? is it the kind of stock that an activist

-- trish: park talking warren buffett. carried interest. >> if you consider warren buffett engaging class warfare -- trish: is she going to, i would like, obama had the opportunity to change it. he hasn't, in part because he is getting handouts from all the private equity players on wall street helping to back his campaign same as her. donald trump has offered to change the carried interest exemption but i haven't heard a firm plan from hillary clinton other than a ton of rhetoric to do the same. >> you may not be listening i will tell you. she is at least in favor of taxing carried interest which is the manner that people escape paying or doing income taxes by calling it something else and get capital gains treatment which is lower. she said, as donald trump, that is fair. but warren buffett, i come back to is not railing against the rich. he is very well them himself. when he says there should be fair taxation system, it is not moving to the left. trish: when you say fair, aside, get away from carried interest for a minu

charlie: warren buffett. liz: i mean berkshire hathaway owns that much. mom and pops it matters more. he's got other companies to offset that. charlie: i will say this, journals make mistakes all the time. this isn't an ethical mistake. liz: it could happen to anyone. but not on the ceo side. he should have been a little more up-front. or not gone out there. maybe not gone out there. charlie: i think they should have pressed him. you know? i think they should have said are there any surprises, and investors would not have been as surprised. liz: for those driving listening on xm, the stock is down nearly 10%, the biggest drop in walmart's history. charlie: totally took the market by surprise, even after cnbc had the ceo on hours earlier. that's what's getting hooem people crazy, and here's where it gets really interesting. did the new york stock exchange have a duty to halt the stock knowing the news was coming out. we're going to unravel this. liz: charlie gasparino, thank you very much. we have breaking news on the debt ceiling. fox news obtained a repo

our warren buffett's -- billionaire warren buffett's saw a plunge,away a one-to decline of more than370 million. walmart's drop adds to other declines for warren buffett 42015. wells fargo, american express, and several other holdings are down for the year. eirs see a loss as well -- a paper loss. four members control more than half of the walmart shares. four shareholders are among the years worst-performing billionaires, holding their declined by a total of $39 billion since january -- totaling -- holding the declined by a total of $39 billion since january. you can get more business news and bloomberg.com. speaking of walmart, ceo doug put a positive 10 on his company and his stock when he spoke to david westin and stephanie ruhle. mr. mcmillon: part of what we announced with a $20 billion share repurchase program and it is our intent to invest that in the next couple of years. we believe in our stock price and you see it because we are putting our money where our mouth is. betty: gentleness with more is our bloomberg news reporter who covers walmart, shannon pettypiece. shannon:

i agree with warren buffett.arren buffett said, every millionaire should have to pay at least 30% because right now, a lot of them are not paying 15, and a lot of companies aren't paying anything. so part of the job that i will take on as your president is to get the wealthy to pay more and give the middle class a tax cut. give the middle class that is working hard and doing the best you can in the face of the pressures you face more of a chance to be able to make ends meet. since your pay hasn't gone up , but the price of everything else has, i think that's exactly what we need to do. the republicans seem to forget that what makes america great and what makes our economy strong is the middle class. you know, it's the middle class who built this country. it's the middle class that does most of the work. it is the middle class that gets up in the morning. it is time for us to give you the tools you need to make the most out of your own lives, at home and at work. and i will tell you what else would really help us

winners in four categories not surprising barack obama won for individual politicians and i think warren buffett buffet on for individuals but here's the point nobody likes the crony system that we are in that is the nature of the welfare state they must do did generate either to the authoritarian system or the crony system in which it's not i produced it decides that

i talked to warren buffett.y were more optimistic. >> the china group is 10% on average for 30 years in a row. it has a $3 trillion economy. going to grow at 6.5% this year. >> you have been bullish on china? >> bullish on china. it has a long way to go. david: there are some astute investors who have a different view on china in the long-term. do you want to respond to that? jim: i don't disagree with either of them. i think long-term china is going to be fine. that unrealistic to think they are going to stay at the growth rate. that is consistent with what we said. 7% real. downs been on a ratchet for the past five years. i see no reason why that shouldn't continue. the first international airport in the region is a boon for growth. we are between the second and third to use this analogy in the to throw is continuing money at fixed asset investment. the problem is the model. despite all of the china bowls saying they are -- bulls say they are reforming. 2010, household consumption is 38% of gdp. it is just not

. >> real quick on ibm, the fact that warren buffett buys ibm down is one of the problems right now with ibm, and i think there's many people out there that use that as an excuse and lose their sell discipline on it because warren buffett is in it, does not mean you have to be in it. remember that. >> all right. coming up after a rough few months, one of our traders sarat is feeling better over his bet on yum as the company splits in two. will he take a bite into the chinese business? find out next. we head into year end -- as we head into year end, our trade rerz feeling the heat and making moves. we break down their moves next. you are watching cnbc first in business worldwide. >> yum brands announce it will split off its business after naming keith meister to the board. cnbc contributor and yum shear holder sarat joins us now on the phone. hey, sarat. >> how are you? >> good. we talked about this on friday. i said i didn't think that this was going to take that long to happen. i don't know that any of us expected it would take a matter of a weekend. >> i agree. i thought they were goi

warren buffett advice for a young silicon valley billionaire , give early and often.ld's third richest person has been urging tech entrepreneurs to pledge to give away have their fortunes. "the financial times" if he had been worth billions in his 30's he would have started donating to charity in a big way. volatility out of china has caused a ripple effect around the globe. we know that, but it's possibly had the worst personal impact on one particular person. the telecommunications entrepreneur was one of the world's 200 richest people. he had a $10.2 billion at the peak of the chinese markets in june. his net worth has dropped more than 80% since then. bloomberg of the billionaires index is here with this story. is he related or linked to commodities in any way? >> no, he's related to the volatile chinese stock market, which is why all of this has happened. the stock surged the first half of the year. since then it is down 57% on the year. robert works for us on the billionaire index. this is what you see. he's not within the top 400, right? >> that's correct. he w

what is $1.25 billion for warren buffett? he gives $3 billion a year to the gates foundation, on whose board he serves. i've had rich people--very, very rich people--tell me, "we know how to make a lot of money. we do not have a clue what to do with it, and that includes us." so if we want to be very practical about it and speed things up, if we know very rich people--and silicon valley has a few of them--recognize the following: that a lot of them could care less. they want to make more money, or they're into their little gadgets. it's amazing how much brain power is being poured on technical changes and innovations of minimal significance. just look at the apps lately. i mean, they're embarrassing as a culture. [laughter] people can find ways to save millions of lives and not make anywhere near the amount of money that some little quigley app for some idiotic whim that is promoted, ok? but there are people in silicon valley--you should try to bring them together for a dinner. i would be glad to attend--who i can show can le

he trails only bill gates and warren buffett on her billionaire index. profitrted an unexpected .hat is your bloomberg business flash. group joeier, arco in weisenthal spoke to george magnus. in addition to discussing emerging markets they also talked about china, and why they are getting so close with u.k. been cozying up to each other for some time. obviously, this year. the finance minister went on a date, let's - - -- went on a big, much publicized trip recently. the president had the invitation made in march of this year. there is something going on in the letter i like to bring the countries-- the closer together. the united kingdom has been china's preferred destination in europe for direct investment. we have had a number of projects in which the chinese capital has been involved. obviously now we have some publicity and some information about new projects, particularly in power stations, in which new details are being fleshed out. there is something a little bit different about this, which did not feel quite right. why is the british government cozying up to china in a wa

allow the political class, people like john boehner and nancy pelosi as opposed to bill gates, warren buffett. reduce spending and grow prosperity. >> don't the folks in silicon valley believe that, rich? >> yeah. they do. i want to push back a little bit against john. why did we used to be able to do these things well? what has happened? i think it's public sector unions, crazy environmental laws. that's what the democrats should be talking about. >> go ahead, john. >> imagine how much better the highways and infrastructure would be if they were run by the private sector. we would have gotten to the moon more quickly. >> they wouldn't have been built. >> you're saying there would bnt a road from los angeles to san francisco? >> hold on. i have to bring up an example here. hold on, guys. it does involve donald trump. back in the 1980s. remember the goth of new york city, the local government was trying to build an ice skating rink. took five years, they were over budget. he said, give it to me. within six months he had it done, under budget. i would argue, rich, that's an example of the priva

warren buffett, mary bara.bama speaking and another powerful woman in the corporate world, irene rosenfeld. our kate kelly is there with highlights. importantly, this was the first time we've heard from her since bill abbingman announced that stake. >> that's right. it was very interesting to hear what she had to say since that $5.6 billion announcement. she didn't really give us a lot of color on any other discussions with abbingman other than to say he has not asked for a seat on the board. activists generally, she spoke about nelson pelz and said it was tough to come to the decision to invite him to be on the board, but that he had been a constructive member. mentioned also as i said that abbingman had not asked for a board seat, but said also what has to engage with activists, you don't do that at your own peril. let's hear more about her words on activism in general as it applies to her company? take a listen. >> you have to engage with your shareholders. i spend a great deal of time with shareholders in t

warren buffett, one of the greatest investors, his bed year -- his bad year was down 48%, 47%.me, i feel like i'm fine. tom: there are people here that are actually in the racket. coverage in august, was it -- we went to 50 intraday. you took six weeks off in august. right? it was wild. ray: let me be clear, just to get the facts right. we have our all-weather fund which is down 6% for the year now because of those reasons. i know it will be balanced. we have our alpha funds that are up materially. tom: how much are they up? ray: depends on which fund you are in, some were about 6%. michael: where are you getting the alpha? ray: we could go long and short in a lot of different markets. michael: you are applying the hobby machine works to this time period. you said we are in secular stagnation, i will go back to where is american business right now, and even global business? what is the ability of businesses to turn a profit so you can make money? ray: american businesses right now are the number one thing, they are flush with cash. they are the biggest floors on -- as a result,

. >> dinesh d'souza, we have doctor alinsky, reparations, taxation, warren buffett. tie all this together. how do they fit into america -- into "america: imagine a world without her." >> america's based on a very good idea to most people don't wealth through conquest. if he did with way that the boards of countries are established. mostly that's through crime. one country invades another country and absorbs it unto itself. historically kings and aristocrats have gotten money i invading, by looting, by taking things from other people. whole aristocratic order of medieval europe was based upon fact that it was based upon taking from the peasants by force. now, america generate a new idea which is the idea of wealth creation which means i don't have to take your stuff. i can actually create wealth. it by five marbles in my pocket i can get to 10 marbles without taking your marbles. it's a very radical idea. it would've been incomprehensible to the ancient greeks. this idea is a magic formula that made america the richest country in the world. america has highes the high

a la, ben graham, warren buffett's beacon in the sky. warren buffett followed ben graham.anies? >> exactly as an investor we're rewarded for providing cap at that areas starve for it and these are areas starved for capital. we'll be rewarded providing capital to the areas. it may not be next year but over next couple years we will be. liz: you're a gutsy guy. what is keeping you up at night? what are you completely avoiding right now? >> i would say areas that are trading, most expensive areas are the bonds. and those really popular stocks, the biotechs, ones trading at multiple times earnings. you know those assets priced to perfection. we rarely get perfection. those are, what i'm most concerned about. david: tim, you and i know wall street climbs a wall of worry. we have stocks on their best four weeks in four years. so, we'll see what happens. trees do not grow to the sky. there is another cliche. we've seen pretty good four weeks. good to see you, tim. >> good to see you. liz: tim courtney essential wealth advisors with a billion plus under management. that is it for

warren buffett was speaking. i can' t remember the environment. he mentioned, if you really wanted to get into investments, the best place was in insurance. anthony: and his explanation was what? john: they have tax auto invest. he based his whole career on an insurance company. i was 23 years old at the time. i didn' t know any better but it made sense to me. i was lucky that metropolitan life was recruiting. gary: a lot of the kids coming out of business school or college, they want to get involved in the business world. but they think the investment world is stocks and bonds. how do describe how insurance fits into that whole asset product category? john: we are selling products, making promises to people to sell -- two pay them 20, 30 years in the future. to make good on those promises, we have to invest that money. northwestern mutual invests into the markets. securities, new markets, new sectors. preponderance in mixed income? john: our asset allocation is fixed income and 17% in what we call risky assets. private bonds. insurance companies

gary: if i listen to warren buffett, a number of years back 500 index fund, is it now time to sell? ms. kroft: there is a place for allocations. but today when you might have been more heavily weighted is going to make much more of a difference today. t think volatility is going anywhere. gary: what about the mr. haynes: we are reopening the london office. we are doing it especially because while the time was not great over the past few years, we have a much more positive outlook gary:. gary: your thoughts? mr. cahill: our thoughts are around china and the slowing significantly. it has had several tough quarters and now there' s a little bit of stabilization. we hope that it has an adjustment time in funny 16 -- 2016. ms. kroft: the concerns about china had such a huge impact in domestic markets. it is what happened in august when the markets really plummeted. we think that is overblown. there is headline risk and headline volatility and fundamental risk. gary: we have had a number of guests joined the program over the last several weeks and months, and they said that they think 90%

rishaad: another story we are following, why warren buffett is skipg companies should paying wall street for advice. has clinchedrewer a deal to take over its biggest rival. but there is an interesting dilemma. we will tidy what that is. -- tell you what that is. an in-depth look at the chinese consumer. ♪ japan, leading the charge. following what is happening at the global be rally. -- equity rally. it looks like in korea and singapore. taipei, also there. positively with the gdp numbers. not in a technical recession. 0.1 percent growth. equity markets are reacting to the data out of china. the threat of deflation still lingering. the managing director, thank you for coming in. what was your first reaction to this? it is 0.2% below expectations, the consensus. china has been having a low inflation. think this is going to be changed in the near term or medium-term. what does it mean for policy? we don't see any particular risk for agriculture commodities. 30% is food and beverages. pork prices, particularly would make it higher but that effect has waned. overalles impact the trend. low i

i think whether it is warren buffett, but now you are taking it to the next degree.s and equity and all of a sudden you have a lot more volatility and a lot more capital changes. brendan: all the capital chases insurance is -- for all of the people holding lower risk insurance portfolios. there are two different ways to think about risk. if you think about it like an insurer, it is on the road. you take in premiums, look at the possibility of a hurricane, and you think up to five years. as an investor, you have a different way of thinking about gains. so you can have a mix of these two strategies. sonali: einhorn took losses on the investment portfolio and the reinvestment portfolio. $1 billion to reinvest and now if your insurance business is also not doing that well, then that is less money. it was supposed to be permanent capital. brendan: matt, you have something? looking at something that was caused by hurricane patricia. and it is not doing well right now. there is concern that mexican bonds may have to pay off if hurricane patricia goes below 920 millibars in

tom: think about warren buffett. warren buffett is measured in terms of stock bets.ok 10 years out. stephanie: that is what makes in the smartest guy in the room. does he have an unfair vantage? no, he has the foresight to lock the money up. tom: another thing that is true, if, one of the mistakes i think of investing is the idea of beat the clock. it is a good idea until it is not a good idea. i honestly think that is a huge mistake. the real thing to do is have something where you feel the wind at your back. the longer you wait the better it is. are you laughing at your neighbors? a california guy at where everybody has the best idea. are you saying that you will see a lot less of them? tom: no. the idea of starting a company that will change the world is a california idea. to go into a garage in change the world, i think that is great. i'm a huge fan. stephanie: people in new york do not have a garage. we will talk with some of the new tech companies. before that, we know you have been out for a few years. if your sense of business itself changed? would you go bac

amazon ceo jeff bezos is now the third wealthiest person in the country, with bill gates and warren buffett ahead of him. that's after shares of amazon jumped 10% in extended trading after the company reported a surprise earnings beat. this increase raised his fortune by almost $5 billion. >> not bad for a day's work, right? i'd take it >> i'd take it, too. >>> now to sports and thursday night football. the san francisco and seattle both struggling at 2-4. face off at levi stadium. hitting early mar shawn lynch powers over the pile in the seahawks' first drive of the night. lynch finished with 122 yards. later in the second, deep to rookie tyler lockett for a 44-yard td and 17-0 lead. in the end, seahawks dominated the niners at home 20-3. >>> talk about fighting words. three days before they square off the new england patriots tweeted out this image of the jets' infamous butt fumble with the caption, this seems relevant. oh, boy. it's going to be a good game, folks. >>> find out one of the main reasons that dr. ben carson is surging past donald trump in the polls. >>> plus a horrific bus c

he ran for charlie munger and warren buffett in the preferred space. two closed end funds that are trading at a discount to their net asset values with really decent yields. >> let's turn back to the market more broadly after today's jobs report. are you optimistic the market could end the year higher even though in this most immediate term you describe yourself as selective and cautious? what do you think? >> well, our models turned cautious in the first part of july. we said the markets are going into a period of contraction. i didn't think it would be this deep. i do think we've made a capitulation low on the 24th and 25th of august. so if i had to bet i would bet stocks are higher by year end rather than lower. >> and what does the fed do and when? >> you know, i think that when it does it is not important. i think it's the trajectory and the pace of rate increases. my model has always called for a november inkracrease even thoug there's no fomc meeting. that's certainly an out of consensus call. >> it sure is. we'll have to have you back in novemb

after bill gates, and of course warren buffett. all of the moves coming after-hours.ow we have to check on asia. we know that they have been following the market. rebecca has everything for us. walk us through it, the warm breezes coming from the ecb, potential to stimulate has been helping the equities. zeb: you see that green on your screen, the asia-pacific index advancing. take a look, this is something unusual as of late, the entire map it's showing green -- is showing green. that gives you the indication that investors are optimistic. they are taking on a bit of risk. 225 rallying 2.3%. the hang seng up 1.5 -- 1.25%. the jakarta market, all advancing on the prospect of additional stimulus. we are closely watching the ecb. we will be watching of course what is happening in the asia pacific with central bank action. wilby boj stood like the market? -- will the boj stimulate the market. we have 39 out of 70 major cities of the chinese -- the chinese government monitors posting rice gain -- price gains. that tells us the stimulus efforts are helping the economy. the

i agree with warren buffett.n buffett said, every millionaire should have to pay at least 30%, because right now, a lot of them are not paying 15, and a lot of companies aren't paying anything. so part of the job that i will take on as your president is to get the wealthy to pay more and give the middle class a tax cut. give the middle class that is working hard and doing the best you can in the face of the pressures you face, more of a chance to be able to make ends meet. since your pay hasn't gone up but the price of everything else has, i think that's exactly what we need to do. the republicans seem to forget that what makes america great and what makes our economy strong is the middle class. you know, it's the middle class who built this country. it's the middle class that does most of the work. it's the middle class that has to get up every day and take care of their families and their job. and i think it's time we start rebuilding the middle class, giving you the tools you need to make the most out of your

compared the situation with the that of american express in the 1960s when a young investor named warren buffettought the stock at a discount after a scandal drove its shares down. ackman last week increased his stake in valeant. the drugmaker, however, still has several things on its plate. multiple government inquiries into its drug pricing and patient assistance programs plus the threat of another report from short zoeller citron research. that's the firm that sparked the controversy. citron coming out on twitter said saying it's got a new report it will release on monday. no word on what it will contain but valeant's stock slumped 16% intraday heading into the weekend. for "nightly business report" i'm meg tirrell. >>> coming up, why rising interest rates may actually be a good thing for the housing market. ♪ ♪ ♪ >>> the federal reserve is proposing new rules to help further prevent taxpayers from being on the hook for another bailout. the proposal's goal is to work toward the end of banks being too big to fail. the rules would require six of the nation's eight biggest banks to issue a total

warren buffett has said the reinsurance market is a tough place to be.ers have a different outlook on the reinsurance market. we will see what happens. betty: thank you so much. , staying with insurance companies, hank greenberg is not giving up on his fight to set the record straight about the aig bailout. he has some choice words for ben bernanke. ♪ >> live from bloomberg world headquarters in midtown manhattan, you are watching the bloomberg market day. i'm betty liu. mark crumpton has more from the news desk. mark: thank you very much alahoma judge has ordered psychological evaluation for a woman charged with driving her car into a homecoming parade, killing four and injuring others . she is being held on for preliminary accounts of second-degree murder. attorney says she is mentally ill. of also faces charges driving under the influence. belgium on high alert after a suspected attack or try to smash his jeep through army barracks. soldiersct fled after opened fire. they obtained the suspect after a manhunt with helicopters taking part in the search.

i agree with warren buffett. warren buffett said, every millionaire should have to pay at least 30%, because right now, are not paying 15, and a lot of companies aren't paying anything. of the job that i will take on as your president is to wealthy to pay more and give the middle class a tax cut. give the middle class that is working hard and doing the best can in the face of the pressures you face, more of a be able to make ends meet. since your pay hasn't gone up everything else has, i think that's exactly what we need to do. seem tothe republicans seem tot that what makes our economy great and the middle class strong as the middle class. the middle class to build this country. the middle class does most of the work. it's the middle class that has to get up every day and take care of their families and their job. and i think it's time we start rebuilding the middle class, giving you the tools you need to make the most out of your own lives, at home and at work. and i will tell you what else would really help us

he trails only bill gates and warren buffett on the billionaire index.atest bloomberg business clash. eric: there is an lot of attention in the hospital industry. systems,nity health guided down in a big way. one company that was affected in the selloff, universal health services down almost 11%. on a tear, outperforming the s&p 500 as you can see here. stock is recovering. alan miller is the chairman, ceo, and founder of universal health services with us in downtown matt -- in midtown manhattan. broadly speaking, what on earth is happening in this industry? not just community. alan: the third quarter is a down quarter generally in the industry. there was a lot of reaction, maybe over reaction. erik: york item states that to july. is that guidance still good? alan: i'm not going to talk about earnings. if that is our guidance, that is what it is. erik: to what degree does your company, universal, experiencing any of -- experiencing the same volume and cost pressures we see play out? >> we were a long-term player. i know one of the companies had reorganiz

we know that's index funds and warren buffett will tell you.401(k)'s most offer one, they say you're not big enough for middling and small businesses. and we do analysis, a large company, they say we'll give you vanguard. their vanguard was 149 basis points, 1 1/2%, ours is .05, 5/100's. >> and the irony for vanguard. >> get it off the shelf. that's 30 times more expenses do you want that for 900,000 or $30,000. people are buying the same product and paying 30 times more to the manager. so i believe in transparency, get it in front of people and they can create a change. any presidential candidate you like? >> it's too early and i'm trying to see what's real. neil: put them all on coals and see who survives. [laughter] . >> thank you, neil. neil: we'll be looking at the markets that few of you are participating in. tony just told you why that is. how we change that after this. test. neil: first it was beth bernanke. financial executives not entail. hillary clinton speaking to and audience in davenport, iowa today. she, too, wants to hold citize

warren buffett has made some comments about investing in single-family homes, saying it is very attractive new idea? at what the -- what other point in history did institutional investors consider single-family homes as an investment class? jeff: it is not a new idea. 15 million single-family attached homes in hands of investors who rent them out. recently been until they have become more institutionalized. the credit crisis, the home values that allowed institutions to come in and aggregate large portfolios has made headline press. have publicly traded reads that are buying and owning single-family as a traditional asset class. it is always -- it has always been there. joe: is there anything more attractive? jeff: we love the western u.s. for various reasons. primarily -- primarily the stability of the rental income with upward price depreciation in those marketplaces. you can win two ways. your downside is protected by the stability. scarlet: out is looking at the large buyers. they have amassed about $68 billion since 2011. what would categorize a bubble in this space? jeff: the bubble

and warren buffett has advice for young silicon valley billionaires, give early and give often.ld's third or richest person has been urging tech entrepreneurs to give away half their money. buffett tells the financial times if he had been worth billions in his 30's he would be donating to charity in a big way. hour, up in the next half general motors is taking on new or. we are going to ask a gm executive why automakers are getting in this crowded sector. we will get a live report from the french capital. federer preserve vice-chairman will be making a speech at a conference in boston. we will bring you his remarks on monetary policy. fed, tradersof the are saying goodbye to a rate hike. 55% of those. weakness shown across the board. wages stagnating. joining us now is mohamed el-erian. chief economic advisor. let's start with the comments we are waiting for. picture seems to really try to get out there. report,er today's jobs do you think you will be coming that table for a rate hike? mohamed: i think he want's keep his options open. we grew vision, week hourly worked,ours part

. >> warren buffett came out this week in a conference sponsored by fortune magazine and he talked about how they are pushing too hard to find targets. julie: this chart. >> you are looking at traditional stocks in yellow, compared to others under hedge fund research. the blue line there and the orange line is for activists. when you read the numbers going back to data, you find that berkshire was up 150%, beating out 100% gain or so for the activists. betty: it goes to show, if you are patient, a long-term investor that he will be out these other guys. the positive of returns comes back. >> and i really to companies is key, you want to be part of a culture. activist investors would rather change the culture. and he is a maybe it is not a good idea. and try to sell to companies as an activist, maybe why not. betty liu there you go. betty: thank you so much, dave. julie whoas well, to will keep her eye on the markets. next, ayou miss?" is big week for stocks on a mixed note. we will be back on bloomberg. ♪ ♪ scarlet: we're moments away from the closing bell. alix: i am alix steel. u.s. st

warren buffett says the executive looking to fend off activist investors should consider passing on strategiesitched by wall street. the ceo said activist investing is too proud and has zero interest joining ranks. today in washington. he set a rebound in the real estate market is helping to sustain growth in the u.s. economy. you can always get more business news at bloomberg.com. now you can get your skinny cappuccino delivered straight to your door if you work at the empire state building. starbucks has launched the delivery program at the iconic empire's -- empire state building. what is the cost of this? two dollars. joining us now on the phone is tony moffatt, chairman and ceo of the empire state realty trust , which operates empire state building and other key commercial properties around new york and elsewhere. did you order one yourself to i have not had>> caffeine for over 25 years here yet i did get someone in office to order one for me. betty: how did it go? >> it is terrific. the empire state building 2.5 million square feet of office space in the middle of manhattan. to have this

warren buffett, one of the greatest investors, his bad year was down 48 -- 47%.i feel like i'm fine. tom: i want to defend the hedge fund industry. there are people here that are actually in the racket. coverage in august, was it -- we went to 50 intraday. he took six weeks off in august. it was wild. these guys are down. ray: let me be clear, just to get the facts right. we have are all weather fund which is down 6% for the year now because of those reasons. i know it will be balanced. we have our pure alpha funds that are up materially. tom: how much are they up? ray: depends on which fund you are in, somewhere about 6%. brendan: where are you getting the alpha? ray: we could go long and short in a lot of different markets. brendan: you are applying the how the machine works to this time period. you said we are in secular stagnation, i will go back to where is american business right now and even global business? what is the ability of businesses to turn a profit so you can make money? ray: american businesses right now are the number one thing, they are flush

this is an important part of the strategy of ibm that people like warren buffett and others are backinghinks it is too late because ibm has been too late into the game. betty: he was saying ibm is too late. david: i'm sorry. ibm. betty: not amazon. david: ibm is too late into the game because amazon is already there. yellow thing he was explicit on -- you cannot want to work for amazon. he said people left ibm for amazon and came back. betty: we will have to say about that. thank you, david weston. much more ahead in the next hour of the bloomberg market day. more talk on china and the news that likely the chinese currency included in the sdr back, the special drawing rights. we will ask economist alan blinder what he thinks about that. we will be right back. ♪ it is 11:00 a.m. in new york, 4:00 p.m. in london, and 11:00 p.m. in hong kong. welcome to the bloomberg market day. ♪ betty: from bloomberg world headquarters here in new york, good morning. i am betty liu. here is what we are watching this hour -- china tries to cushion the fall as central banks cut interest rates again to keep

trailing only bill gates and warren buffett.zon shares on the rise today because yesterday the company reported profits at the -- above estimates. scarlet: microsoft's push into cloud computing paying off, first quarter profit beat analyst estimates. the ceo has been focused on selling microsoft's cloud service and subtraction-based products. clout sales or than doubled from one year ago. -- cloud sales more than doubled for one years ago -- from one year ago. alix: julie hyman has a look at the broader market. julie: gains we are seeing sparked by earnings and by the chinese rate cut. part of the equation. part of the rally that we have been getting. this is a continuation as we see all three major averages rallying today. worst, weing best and are seeing a rally but there some things -- are some things in the reds, consumer staples. versusseeing defensive cyclical trade although energy falls into the cyclical category but technology is the clear leader because of the earnings and health care rebounding from the big declines we

warren buffett has some advice for some young silicon valley millionaires.often and give early. he has been pushing tech give away theto fortunes. he said if he had been giving away his billions in his 30's, he would have been giving to -- if he had been earning his billions in his 30's, he would have been giving the majority to charity. and now we go to marco is standing by. in europe went down to a decline of 6% before slowly reis -- slowly rebounding. uncertainty about the strength of the modern u.s. economy made havelobal economy gyrations. what a weird session. have some data on u.k. home-building, which reached its fastest pace in the year, and that is another sign that the u.k. economy is showing some momentum. ahead of the national elections, regardless of the outcome, a bloomberg poll suggests calm in aremarket as both parties looking at fiscal prudence. how about some of those big stock movers in the last week? notcore improved, but enough to raise that record 29% on monday. investors have expressed interest in buying stake in its agricultural busi

we never know how strong things are, sort of old warren buffett, when the tide goes up you get to seey truly looks like. i don't want to make it too visual like he always does always looking at warren buffett in a bathing suit. but having said that i do wonder why, 25 basis points. let's ticket up. i'm worried the way transportation stocks act. if you're sitting there about things to worry about, behavior of the federal reserve is at the top of the list. neil: all the deals delayed and postponed, they're now back on radar again. too many of them or will they get hoodwinked or what? >> no. big major deals in terms of the corporate side budweiser sabmiller, if regulators let it go through that's fine. coors would be attractive. samuel adams that ac, and dell that will probably go through like western digital. $77 million of semiconductor mergers. sandisk at top of the list. micron acting pretty interesting. bottom line all the deals probably go through. the fact the idea the fed may start to raise rates will actually expedite some deals. we'll see maybe a large wave of new deal-making.

swn, quanta and sea gate. >>> warren buffett, even the greats swing and miss sometimes. buffett owns last year as of the last filing date. walmart, american express, png and ibm are all done 10% or more thisst just this year. same goes for some of his other holds like via com, fox and john deere. let's get some advice maybe a buffett stock or two. and maybe some good picks for your portfolio. margaret, before we get to the stocks that you love, looking through your funds holdsiningsh didn't see any names i discussed close to the top. but you do own american express. that is that one you are sticking with in these times. >> yes. i think a good company that can really own and -- really been created away are the costco relationship. a lot of folks haven't focused on the fact that in the last quarter what american express reported was that net new accounts were up more than a million accounts in north america. that is versus more than 300,000 in the prior several quarters. and that tells you their spending back into the business to grow the revenue and grow accounts. it is w