any, warren buffett will be joining becky.8th, 2017 and "squawk box" begins now. >> announcer: live from new york where business never sleeps, this is "squawk box." >>> good morning, welcome back to "squawk box" right here on cnbc. we're live at the nasdaq market site on times square. i'm andrew ross sorkin along with joe kernin. becky quick is live with warren buffett in omaha. hi, becky. >> you made it back. >> i made it back okay. we're going to make it back to you in just one minute with the oracle of omaha. emanuel macron winning and defeating the far right candidate, 64% to 54%. macron i

any, warren buffett will be joining becky. it's may 8th, 2017 and "squawk box" begins now. >> announcer: live from new york where business never sleeps, this is "squawk box." >>> good morning, welcome back to "squawk box" right here on cnbc. we're live at the nasdaq market site on times square. i'm andrew ross sorkin along with joe kernin. becky quick is live with warren buffett in omaha. hi, becky. >> you made it back. >> i made it back okay. we're going to make it back to you in just one minute with the oracle of omaha. emanuel macron winning and defeating the far right candidate, 64% to 54%. macron is expected to be inaugurated on sunday next on the agenda, in france, two rounds of parliamentary elections in june. we should mention the jueuro jumping to six-month highs. you're looking at european markets right now, across the board, they are down. in large part, they had risen, of course, on friday in expectation ever this news. in asia, japan rising 2.3% overnight. the hang seng was slightly higher. u.s. equity futures up

berkshire ceo warren buffett warning on "squawk" that buying bonds over stocks is a big mistake. that our next guest has quote probably done more for the average investor than any man in the country. joining us this morning, vanguard founder and former ceo, jack bogle. jack, what a nice contribute over the weekend and we would be doubly remiss if we did not wish you a happy birthday today. so happy 88th. >> thank you, carl. when warren announces it to the world, a lot of people find out. >> he called you a hero, man. i mean, how do you take that? >> well, i mean, to be called a hero by a hero gives it more credibility than being called a hero by a non-hero. but i already written him a letter this morning of thanks. i'm not a hero. i'm an ordinary guy who gave a damn about the people who were investing. i wanted to make sure they had a fair shake. if that's heroism, well, so be it. >> yeah. >> but it was wonderful to be out there. >> you had a lot of occasion to talk over the weekend about say the level of indexing and at what point that gets dangerous after a week in which that's

warren buffett's head is right there. and inside the shoe is warren buffett.do you think of that? >> nice. >> i guess that's good. yeah. i can see -- >> i feel like i'm stepping on warren every time i have my foot in there. >> it's a quite picture of him. becky -- >> they run small, the brooks. do yours fit? back to the berkshire hathaway annual meeting. becky quick is there. >> we have a pair right here that i have not tried on just yet. but they are sitting here. andrew got his early and tried them out. i don't know, joe, i'll give them a try and let you know if they're small or not. nice looking shoes. i like the shoes, it's the socks i have issue with. we'll talk to these guys who are watching all of this take place. among the companies that berkshire hathaway knows are some consumer brands that make batteries, to paints, to shoes and chocolates. joining us now are jim weber, ceo of brooks sports. these are his shoes. mike searles, ceo of benjamin moore, and brian kinsler. welcome to all of you. >> thank you. >> one thing we talk about with warren buffett,

great stuff from warren buffett. let's bring in nick and josh. , buffett's comments on apple come as citi is putting out a note listing the top potential targets. netflix topping the list. i want to talk about buffett first. is tech his kryptonite? it was contrary to his bet on ibm years ago anyway. apple and aprmazon have done amazing. if he bought into those five, ten years ago, he would have done a lot better. nick? >> yeah, i mean, i think it probably is. i have a tremendous amount of respect for warren buffett, i think he's an incredibly smart guy, but he has a flip phone. how can you understand how consumers are going to interact with technology when you don't use them. maybe his bets are wrong sometimes with technology and, you know, for me, i do agree amazon is a big and scary company that is going to be a competitor to a lot of the people that he's invested in. >> and, josh, one of the things that strikes me about this area in technology is how much parity there is between big giants. i don't remember the last time we have seen a time lik

ibm shares falling on news warren buffett has sold a third of his stake in the company. what does it mean if you own the stock? with us for the hour today, jim, john, steve weiss here as well, so the erin brown. also with us today from minneapolis is pete. let's begin with shares of ibm under big time pressure today. pete, you own this stock. i'm going to you first. when buffett buys, we always call it the greatest endorsement you can get. isn't this the biggest indictment of ibm that you could find? >> i would say that an indictment, but he didn't completely sell his entire position. he sold 30%. at 180, not 160, so the reaction we're seeing today is an overreaction in my opinion, scott. because $160 stock got into the 153 range, now, i think it's around 155, but he didn't sell at 160, nor did he say he would sell it at 160. he did comment about how he has revalued this stock low eer so he once thachlt and he was the largest shareholder, he's no lopger that. vanguard now has a larger position. but seems to me like this was a shot across the bough telling the board at ib

we're back now with warren buffett. he is still got lots of energy to speak to our viewers. they want this border adjustment tax. this weekend a conservative senator from georgia said it's dead on arrival in the senate what do you think happens. i don't know the politics at all. in the end the world will do better including the united states free trade. we ought to take care of those people in some way because there is a greater good done by free trade. if you start taxing certain imports here just raising the price. for example many things that they make have parts from elsewhere and we sell things over there too. our exports were 5% of gdp in 1970. we found many thanks that the united states makes. we ought to take the people of the people that have been there. speaking of taxes and tax reform. the top economic advisor he rolled out a tax reform plan its streams lines the tax bracket it would eliminate the estate tax from what you saw of that plan is or anything you would embrace within it. if the look at any plan in

why is warren buffett wrong?> well, the reality is that warren buffett is one of the richest men in the world because of a giant tax break, which is that he's made a fortune and instead of markets to market at the end of every year and paying tax, he gets to roll it forward. liz: meaning his capital gains. wants to raise everyb income taxes. >> he doesn't pay until he sells. liz: right. >> by virtue of not selling. by the way, i'm no different. nobody whose ever accumulated any serious wealth in this country has done anything other than allow it to roll forward, not have to pay taxes on an ongoing basis. i don't know why warren buffett feels the need to make the kind of comments that he's making. i personally think that the health care bill is hardly a gift to the rich, and it's a long way from being anything, they think is passable. liz: do you think warren buffett is being honest about this debate? >> i think that the kind of comments he's made have fit into the pattern that he has exemplified over the last eig

on the other side of the dow is warren buffett's big investment now of apple, which by no coincidencee best performer now. i like how buffett said he looks at his furnishing store to look at consumer insight, tell the people don't want to buy the cheapest smart phone, they want to buy the expensive one and that's apple. >> it's the worst case for apple ever. he doesn't even own a smart phone. that would scare me. >> a lot on the apple. >> okay. our thanks to becky for good coverage over the weekend. scott wapner at the sohn conference. >>> welcome to a special edition of the halftime report. i'm scott wapner and we are live today from the sohn investment conference at lincoln center in new york where some of the biggest money managers in the world are pitching their best ideas to try and end childhood cancers. cnbc is the exclusive broadcast partner and we'll speak to two of those investors in a little bit about their big ideas. brad and keith meister, also with us for the hour today, three of our own. joe, steve and josh brown. it is a

a lot of people idolize warren buffett, dan. they think he knows a great deal, and certainly he does. and they might well think, well, gosh, maybe i should sell all my bonds. should they? >> no. we don't believe they should. obviously we have tremendous respect for mr. buffett, he's the greatest investors in equities of all time. we don't think it's an all or none type of answer for a lot of individual investors. there's not a whole lot of warren buffetts running around there. some people can't stomach the volatility that stocks bring. we think equities like bonds are appropriate in this environment. even warren buffett, tyler, has mentioned the extreme valuation in equity prices. i believe even within his berkshire hathaway operation he's built up a huge cash hoard. >> so if you need a decent return, not stellar but a decent return, and you want to stay within the bond universe, what would you recommend? >> well, we think a number of areas are attractive. if you are concerned about the fed raising rates, which we do think will

god knows i'm going to defer to warren buffett. he says we're not yet overexcited about stocks, looks as though we're excited about the stocks for the last two or three years. i don't know how much more excitement is left in the market. melissa: yeah, steve, what do you think? . >> i think frankly there is more excitement left if we can grow the way we're supposed to. what's been missing from the american economy is productity growth. what we have n seen in the century, in the 2000s is the productivity growth in the 1980s and 90s. the reason is we haven't seen enough capex spending, investing in people, plants, technology, the tax proposals that president trump has put forward can excite that investment and that kind of growth. i think the stock market is properly pricing that in. melissa: gentlemen, thank you, breaking news, former acting attorney general sally yates testifying before the senate subcommittee investigating russian interference in the presidential election. senator ted cruz is asking the questions, let's listen. >>

warren buffett has stood by you all the way. nope punishment at all by this company.ave you changed anything about the way you write mortgages. >> we don't care where they finance their home we just want to help them with the home. that's why we give them what it is. we have boards in our offices. but everything to us. and always will be. you want a second opinion but people keep coming back for more. 45,000's of these homes expected to sell. it actually looks pretty good. it's interesting stuff all the way around. we will count you cut you down to the closing bell with the dow jones was session highs of 32 today. the former president. weill talk about that. they were on it first and has some new details. they are taking aim at the former president newfound wealth. ♪ ♪ after becoming one of the largest broadband companies in the country. after expanding our fiber network coast to coast. these are the places we call home. we are centurylink. we believe in the power of the digital world. the power to connect. and that's what drives us everyday. your insurance on time. t

true to warren buffett holds court in comes out swinging against border tax plan. liz claman is buried the story. cheryl: comcast and charter set to announce a partnership to answer the pressing business of mobile telecom. all the details this morning. train to the prime chance in the cleveland cavaliers with the toronto raptors in a marathon team in baseball as the yankees go 18 minutes against the chicago cubs. chicago cubs. we'll have highlights. cheryl: and is 5:01 a.m. here in new york. welcome to "fbn:am," your first look at morning markets and breaking news. nicole: nice to see you, cheryl. glad you're here. president trump congratulates french president-elect emanuel macron after the 49ers investment candidate defeated marine le pen by a big margin. the president tweedy and congratulations to emanuel macron on his big win today is the next president of france. and it's very much forward to working with him. cheryl: ashley webster life in paris. following of course the events there. ashley. reporter: good morning, cheryl. yes come in the end it wasn't even a

we will watch that carefully. >>> big overnight news from warren buffett. lusive comments to becky quick, buffett said he sold about a third of his stake in ibm. becky is live in omaha, nebraska with the details. meeting hasn't started yet and we have moves on the buffett portfolio. >> i know. this is definitely news people will want to pay attention to. warren buffett talking about his holdings. he built up a significant stake in ibm. when we caught up with him last night, he said he changed the way he values this stock since he started buying it. listen to what he had to say as to why. >> i don't value ibm the same way that i did six years ago when i started buying it. overall i think in six years i revalued it somewhat downward. as a matter of fact, when it got up over 180, we sold a reasonable amount of stock. >> you sold a reasonable amount of ibm? >> right. >> least that i had seen you owned something like 13 billion or $14 billion of worth -- >> done down the price. >> i'm trying to think back the number of shares. >> we owned about 81 million shares.

the big mistake warren buffett said some investors like you may be making. >>> hot topic. ab old drug gets a new price tag to treat a rare and debilitating condition. that and more tonight on "nightly business report." >>> welcome. gains were small today. minuscule really. but they were good enough to lift the s&p 500 and nasdaq composite to all-time closing highs. investors seemingly concluded the market had dodged yet another risk. namely, that france might elect a far right opponent of the european union and the euro currency. the french for now voted for a moderate and the status quo. and that was enough to let investors globally focus not on european vote counts, but on the improving health of europe economy and stock market which has been climbing. we begin with two reports. bob pisani takes a look at the markets. but first, michelle caruso-cabrera in paris. >> reporter: last night marked yet another major upset in global politics. emmanuel macron started a new party one year ago, wiped out the socialists and republicans who dominated french politics since world war

nicole: coming up, what does warren buffett most admire?his is what he told our liz claman. >> virtually everybody in the world asking who they worry about the most. they worry about amazon. trade to move a hot bath with amazon's new latest gadget. the golden state warriors with a second play of serious eliminating the utah jazz. turning to hockey playoffs, washington capitals dominate the pittsburgh penguins for us in a decisive game seven in their series. we will have all the highlights. you are watching "fbn:am." dow futures up about 18 points with your first look at morning markets and breaking news. ♪ bye-bye miss american pie ♪ drove my chevy to the labbe, but the levee was dry ♪ this'll be the day that i die ♪ this'll be the day that i die ♪ lauren: they may cannot do that at first speaker today. it will feature a screen that will operate video calling capabilities and allow users to make internet-based phone calls to the device i have a seven-inch touchscreen mobility facially inseparable questions. it has been in data testing for a

david: when your mother first said it she wanted to come to dinner and warren buffett would be there,e not interested. why was that? bill: warren, i thought with -- was someone who bought and sold securities. that is a zero sum thing. that is not curing a disease or a cool piece of software. and the idea of looking at volume curves, and it doesn't invent anything. so i thought that my way of looking at the world, what i wanted to figure out and what he looked at, that there wouldn't be much intersection. and that is why it was so shocking when i met him. he was the first person to ask me about software and software pricing, and why wasn't ibm with all their strength able to overwhelm microsoft, and what was going to happen in terms of how software would change the world? and he let me ask him about why do you invest in certain industries, and why are some banks more profitable than others? he was clearly a broad systems thinker. so it started a conversation that has been fun and enriching, and an incredible friendship that was completely unexpected. david: and he taught you how to pla

warren buffett is rarely challenged.the greatest investor of our time and some people felt he was without his own mantra when he bought ibm. he bought a lot of apple which has a lot of competition. even tim cook said we're not seeing the switches back to samsung, but i counsel that ibm has tried mightily to change its hand and david, it was not a good hand. i wonder about the pressure on jenny. i think as long as you have warren buffett's backing whether it be a coca-cola or american express you have the ace in the hole. >> you won't get an activist in the stock going after you if you have warren buffett. american express thought about doing something about it, forget about it. >> activists get involved everywhere these days. >> believe me, all companies are aware of it and ready for it and waiting for that potential. but what do you do? i mean, what wouldn't you do -- what would you do differently if you're ranetti. >> you could have bought salesforce. >> it was once a typewriter company and they repositioned themselves

she interviewed some of the richest minds, warren buffett, bill gates, charlie monger on the show. running ceo. and informed us that mr. buffett still, god bless him, uses a flip phone. come on. watch all the exclusive video clips and interviews on lizclaman.com, check that out. lizclaman.com. closing bell, seven or eight minutes away now as we continue. the dow is down 51. looks like we're kind of settled into that range. we'll track it here for the last few minutes of trading. "guardians of the galaxy" 2 meantime, second film, that marvel franchise, debuted last weekend at number one. raking in $145 million. will movie magic prevail over the some of the problems at espn. layoffs and cord cutting, what you need to know ahead of disney's second quarter report coming out after the bell. details what to expect here on "countdown." when they thought they should westart saving for retirement.le then we asked some older people when they actually did start saving. this gap between when we should start saving and when we actually do is one of the reasons why too many of us aren't prepared

or warren buffett reveals he reduced his stake.his is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn. warren buffett gave berkshire hathaway investors something to talk about at the annual meeting this weekend at has he has sold about one third of berkshire's investment in ibm. isning us with more bloomberg editor-at-large cory johnson. how has he done with his ibm investment -- not that he ever really lets at returns, right, because he typically holds something ever. but not this case. cory: this was a stock trade that did not work out for him. he talked about it glowingly in the annual letter every year. we can see the holders in berkshire, this great little chart -- you click on the holding and see how he did. you see his position growing as the stock is rising. he is adding to his position. start adding even more. fundamentally, it was a trade that did not work out for him. vonnie: nothing for a game to worry about, they could completely ignore it -- naahhh -- cory: buffett has said things about technology

among it, apple, as berkshire's warren buffett nearly triples his stake in the company to more than $19illion. stock hit yet another all-time high this morning. walter, let's take a quick listen to what buffet said amid all of his mea culpa's of miss in amazon and missing alphabet why he is increasing his stake in apple. >> the shares when we bought them were much more reasonable in relation to current earnings. apple didn't have to do a lot better in the future than they were doing at the current time. when you get into a google or amazon, you are paying for the future more. the future may be more than justified. >> so, walter, here we have a very smart man who laments missing a big chapter in tech, doubling down on this one. what does that tell us? >> well, it tells us that apple is a very secure, stable, good company because warren buffett is incredibly smart. he goes with companies he knows will be doing fine in five, 10, 15 years. i think he is right about that. apple is no longer the most -- in my mind the most innovative of companies. it doesn't surprise us with new products but

warren buffett's done that already. advice from the world's greatest . >>> just remember, the person you're talking to, your fees are their income. >> the big controversy over calorie count. should restaurants be required to tell you exactly what you're eating? >>> the plain truth about the airline industry. what people really think when they f. >>> and the first step. an amazing high tech tool to help people who thought they'd never walk a "on the money" starts right now. >>> this is "on the money," your money, your life, your future. now, becky quick. >>> we begin with a food fight. this week the fda once again delayed the implementation of a law that would require many restaurants and grocery stores to display calorie their menu. and while many major chains are already complying with the regulations the cry to scrap them altogether isn't going away. is it a way to make us healthier or is this a case of the nanny state? that is today's cover story. the numbers are staggering. about 70% of adults in the u.s., 20 or old

i think warren buffett, you always get the halo from warren buffett. the greatest, most immersive -- >> yeah, she really did. >> to your point, sentiment, mfib, pretty steady, plans to hire, steady at 16. not quite the highs that we had earlier in the year. it hasn't budged as policy wavered. >> that's also reflected in hertz, the used car market. and then retail we're going to hear later this week. i'm going with matthew on this, february was the trough. i also think the kate spade/coach was good. >> you liked that deal? >> i was reading it last night, basically they go with some estimates that a quarter of retail space will eventually need to be repurposed. a quarter. at last year's pace that would take 30 years. >> that was a bearish piece. it says there's so much capacity taken out, so much capacity left. they're there are really just way too many, and wayfair, that ended in a pretty good place to sell, because the home store it was good, and wayfair is a bit of a short squeeze, but wow. >> how about targets testing next-day delivery in minneapolis

news that warren buffett cut his take in ibm.ll you how you should view the stock going forward, and it's got a surprise kicker to it. you think traffic's bad now, the future's going to be a nightmare! does nobody like the future? c'mon, the future. he obviously doesn't know intel is helping power autonomous cars and the 5g network they connect to. with this, won't happen in the future. thanks, jim. there's some napkins in the glovebox. okay, but why would i need a napkin? you could have just told me a bump was coming. we know the future. because we're building it. ♪ ♪ i'm dr. kelsey mcneely and some day you might be calling me an energy farmer. ♪ energy lives here. >>> whenever i come back from san francisco, i always feel an enormous respect for what the people out there are accomplishing. whether it's going to the top of the tower in san francisco, or chatting with apple ceo tim cook about job creation and a beautiful patch in the company's soon to to be old headquarters. or how to demodmem advertise mo every time i go to cnbc

on monday, warren buffett will be joining us for three hours, live from the annual berkshire hathaway meeting in omaha. berkshire is the largest owner in many of these airlines. also also be joined by charlie munger and bill gates for the 8:00 hour. that is monday at:00 a.m. eastern. >>> in other washington news, president trump says he is considering breaking up the nation's biggest banks. it's a promise he made on the campaign trail but put it on the back burner. major averages slipped and rebounded on the news, while government bonds hit the highs of the day. bank stocks dipped and then rallied with investors taking a win-win view that breaking open

coming up, is warren buffett saying bye-bye to big blue?hy the investor is cutting his stake in ibm. bloomberg 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

. >>> and later, warren buffett's simple plan that can help build your retirement nest egg. right now a look at how the stock market ended the week. >>> after a gain of 0.1% in march. department stores were week. people were still spending but their buying habits are changing. retail sales are closely wachd because consumption makes up more than 2-thirds of the u.s. economy. stocks fell as weak retail earnings reports pushed the market lower. although the nasdaq and s&p 500 hit new highs earlier in the week. the producer price index rose by 0.5% last month ahead of expectations. the ppi measures changes in prices that u.s. companies receive for their goods and services. the increase is a sign of inflation and a sign that inflation pressures are building. if you want a tesla now you can have one on your roof. sort of. the company's ceo elon musk says tesla will begin selling and testing solar roof tiles in the united states this summer. musk says the tiles will be lighter, cheaper and more durable than the typical tiles. a new survey says travelers in america are happier than

apple, mcdonald's, warren buffett touting apple calling the iphone a incredie consumer product. 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

manus: even warren buffett with say "look, i got it slightly wrong.t ibm and it did not quite work. i missed on google. i have got $100 million in cash." he is the personification of success. cash on the sidelines. peter: in terms of the things that do not work -- manus: he says he hopes apple does better than ibm might. last to stage anyway with apple, possibly. his original criteria was that it is a consumer products company. i think that have not actually changed great deal. he has a lot of cash now, but he is looking for the products company. you can argue that people are busting business models to pieces. projectst a leading manufacturer. it is interesting he has got into there. the one causing the chaos are people like amazon and google, who are general me tearing the book up. that is the problem. anna: big test to apple. peter: lots of tests. they are snapping up the heels. seeing it in the context of the western world, that is not how the rest of the world thinks. apple is not as popular elsewhere. it is not the big thing in asia or etc. micro

. >> warren buffett said they should buy invest funds, take that advise or follow the stock picks?>>> by the way, deep tease, we call it, next week, exclusive coverage of the sohn investor conference monday. kelly will be there live. we have a great lineup of guests and speakers, plus, a live broadcast of bill ackman's presentation. that's at 1:25 p.m. eastern time. that's on "power lunch," but don't miss what we do as well on "closing bell," don't miss a second of that at the sohn conference next week. kevin, meet your father. kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you. >>> welcome back. the annual meeting this weekend in omaha, and becky quick caught up with warren buffett, and she asked if he thought his original purchase was a mistake. >> a mistake in the sense i could have done better if i bought the s&p. we made quite a bit more money than if we just sat in treasury bills, but there were a lot of things to make money in that we missed.

brian, you agree with warren buffett. lot of people do, but what do you recommend investors do about that? >> absolutely agree. i think the bond situation is one where assets are priced very much above fundamental values. look at equities and look at equities in europe predominantly. central banks normalizing balance sheets means these prices diverge back on values, and you got to look at places like italy, spain, financials all in europe. >> rick, we all know the obituary for the bond bull going on since 1982 has been written over and over and over again. prematurely over and over again. do you agree with warren buffett now at this stage that bonds are not as good an investment as stocks? >> i'd think the simple answer is yes, but, you know, there's a lot of as risks here, bill. last july, record low yields, meaning records high prices on the treasury curve. of course, many of the years, 2012-2014 saw pretty nice gains with respect to the fixed income market, but, yes, i think he's right. the other note is it all depends

betty: warren buffett looks to the future, say they will be fine after he is gone.ello from sydney where it is just past 8:00 a.m. this is daybreak australia. we are two hours away from the open of the first major market. betty: it is after 6:00 p.m. in new york. we will be looking at how the french election, how that will play into the asian pacific trading day. we know for the euro, it is strengthening right now. a lot of the macron victory was already priced in to the european currency, so sophie has more on the market action so far. sophie: markets liking the defeat of le pen in the vote. we are seeing the euro climbed following that victory, signaling appetite for risk in the early trading station -- session. whenonly go up about $.01 it comes to the euro gains, but it is more than the two percent we saw in the first 15 minutes of trading. this is a fairly muted again for today, traders largely priced in the macron win. and find to the boat, is that we should not expect fireworks. it is not the case today, but the exceptions -- elections are a positive for the

. >> nine years ago, an investor made a ten-year bet with warren buffett and the wager pitted activegainst passive. with one year left in the that, it is clear buffett will prevail. he reflects back on what he is learned in a bloomberg review column. he writes warren discusses a bet explaining the high seas active management charge created a headwind. he is correct it is high and his reasoning is convincing. it is just not the whole story. we are joined now for the whole story. podcast. thank you for joining us. you list a couple of lessons you learned here the first is price matters eventually. the s&p 500 was at a high starting point and it should be that that leads to low returns except for this time. >> history will tell you if you started a high valuation or high price point, subs when returns are subpar. over time, that is what played out. it turned out that has not really happened. the last several years, there has been an extraordinary influence in the number of people saying it is the only way to go. what does the argument get wrong and why do you still believe? >> i think i

warren buffett dumps a third of his ibm shares. should you? >>> repurpose for a purpose. meet the sisters who are part of the military. now they're giving back. those stories and more for "nightly business report" for friday, may 5th. >>> good evening, everyone, welcome. the nasdaq and s&p 500 set records, even as ibm shares tumble. we'll have more on that in just a moment. but we begin with jobs. the labor market hasn't looked this good in a decade. job growth recovered in april after a lousy march. most agree that the economy is getting very close to full unemployment. employers added 211,000 positions last month, more than expected. the unemployment rate dropped to 4.4%, which is a ten-year low. a broader measure of unemployment that includes discouraged and part-time workers also fell. although wages grew compared to a year ago, the federal reserve wants them to pick up even more. hampton pearson has more on the employment picture. >> reporter: from 79,000 jobs in march, more than doubling to 211,000 workers added to payroll last month. at 4.4%, the unemployment rate

likes of warren buffett, bill lakes, charlie monger. you have the news, wind at your back. , i guess, liz, buffett might be considering offering a dividend, right? >> which is stunning, neil, it is stunning, because in 55, 57 years, he, 52, you know, ever since he started berkshire he has only put out a dividend once that was 1967. he likes to joke that back then, he was in the bathroom while that decision was being made. he doesn't like to give dividends. he feels the money should be better spent buying great companies or great invests, great stocks. so he does not like dividends. that was a real, sort of news breaker during the meeting, fairly soon, possibly soon, you could see berkshire give a dividend. why? >> because they have 9billion dollars in cash waiting to use it, to buy a great big company. he doesn't want to do small deals anymore. he can't find that great big company yet. so he said he mutt be forced to turn to the shareholders and say, you know what, i can't find negative yet. it is not fair to leave the money sitting there parked so i will give it as a divide

china is so enam mored with warren buffett they put him on there. hathaway annual shareholder meeting will be selling lots of coca-cola with the bottles. we got it here first. the meeting kicks off friday in omaha. you i will head straight there after the show thursday. it will take over the entire city three straight days. i have live updates about anything said about united, coca-cola, wells fargo and more throughout my entire "weekend with warren." you can follow me on twitter. live tweeting @lizclaman. we're 84,000 followers right now. austin, you were with me back when we had 30,000. >> yes. 5000 i think. liz: he is not impressed at moment. he wants to see 100,000. >> more claim. liz: help impress austin, my floor director, get to the 100,000 mark. follow lee @lizclaman. tell your friends and family. exclusive material is on lizclaman.com. friday live from omaha, my one-on-one interview with nebraska governor pete ricketts. oh, look at that stamp. a little custom liz stamp. charlie monger, you warren buffett and bill gates sit down with my, ric

is warren buffett right and should you bet with the airlines and bet with buffett? tim? >> i do.hink you should. i think airlines are very different businesses. i think they're trading in many cases, look at delta as if the economy is in a recession. if there's growth there, they're certainly to be owned. the function as airlines as efficient players in their own market is what it all comes down to. delta, analyst on the 11th, always a good day for the stock. these are dividend plays as well. >> efficient player is the key. warren buffett said if capacity gets out of control, if they put out too much capacity, that's going to be a problem. that's the key metrics you have to watch. in the short term, how the stocks traded, i would wait for a little pullback. you might take another week or two before you get in these. it's probably not a bad trade. >> valuation is compellincompel. priceline made an all-time high today. still, i think very reasonable valuation-wise. it will be interesting to see how they perform after earnings. a lot of people raising their price targets. >> raymond

. >> and talked to warren buffett. and he learned -- he learned it is important to remove your self from all the noise. he was struck that warren buffett sits in his office in omaha and reads all day long. he doesn't get wrapped up in things. he thinks big picture. that was an incredible meeting. he wrote a 4000 word memo to send to his executive team about this. even to sunday night emails for the whole company that are always on a different theme and he wrote one about his philosophy of going to sources versus mentors. at one point i asked one of their investors who was telling me how special this was and he is in a pretty privileged spot. if i could pick up the phone and call mark lederberg i would have a lot of good ideas too. he has got this privilege of calling all these a lists in silicon valley. it is true but a lot of entrepreneurs have the same privilege and don't make the most of it and don't use it and they use it but they don't necessarily see the results of scaling, do you scale with the company, that was

like a warren buffett? that warren has realized that the capital allocation, he no longer believes it. >> but was that the right decision in your mind? >> at the time, yeah. for a value investor there was a period when ibm was a fantastic stock. they were buying back ee noormous amounts of their own stock which meant you could count on inflation. >> let me make it a little harder for you. the other company of course that warren buffett has bought recently is apple. >> yeah. >> do you think of them comparably? they're obviously in different spaces but in terms of growth trajectory. >> meares what i would say and i've changed my mind on apple somewhat. i think what that is misunderstood about that business and i'll be the first one to say i misunderstood it is there is an emerging business there that none of us are really paying enough attention to which is the ios business. so all of the business of apps and selling subscriptions is extremely cruelly misunderstood including by me. and if you look at that bus

but warren buffett, if he were to buy in to amazon.com, you heard him making these comments how much aising jech bezos, what would that mean? do you think there would be any kind of a buffett bounce if he were to buy in? >> i would imagine so though it's hard to believe with all the amount of funds indexed into amazon that there would be a huge uplift. i think most consumers already believe in the story. it's really not warren's value, amazon trading where it does. certainly long term i think it doesn't hurt the long term story at all, brian. >> dan, we'll leave it there. have a good weekend. thank you. we have a news alert. weekly rig count time. we've been up 15 weeks coming into this week. what do we do? >> now it's 16 weeks. six oil rigs added. we're at 703 now. this is up from last year so more than double. and that's one of the reasons we've seen oil prices come back under $50. u.s. production is up. rig counts keep climbing and people are concerned about that supply/demand rebalance. at $9.3 million. back to you. >> jackie, thanks very much. more problems for uber, the company

warren buffett said the airline industry had 80 bad years. i mean you're finally getting to , a place where you're making money. so from our standpoint up here, we expect to see some of the profits driven back into the company to make sure the customer experience is better , because as i said in my remarks before i left, i'm glad i got back here in time. i'm just going to reiterate them . if you don't take this as a silver lining, if the industry doesn't sit down together collectively and figure out how to move forward in a positive way, put aside your marketplace differences where you do what you have to do, but come together because the last thing in the world you'll want is this committee and this congress to put out things out there that, as i said, will be one size fits all and it's not going to fit anybody at the end of the day. so, again, i appreciate you being here. i appreciate taking the time and we look forward to hearing from you and watching as you move down the road and watch these things take hold. so thank you very much. with

. >> i love warren buffett, but we beat him to the punch. >> the industry has become an ol goply.pricing control in the hands of the major airlines. and you're generating a lot of free cash flow. buying back equity. look at my spread sheet, multiple is eight times in a 17 multiple market, so it's half the market multiple. with big free cash flow generation. i think warren buffett being the guru he has has brought more attention to the company. >> you were last here just before the man was drag ged off the plane. did you waiver at all in your support for the stock. >> we made a mistake. they handled something poorly. they settled. talking about a billion dollar company. i don't know what they gave to go away, but they, it is what it is, it's like you know, it sounds very cold and callous, but you know, if a drug company winds up with a bad drug and they kill somebody, everybody wants to know the earnings per share impact. at the end of the day, if united has right plane going to the right place at the right time, i'm flying united. not going to go out of my way to go to a different

. >>> warren buffett also against the new health care bill. >> republicans getting earful of constituentsoed intensely by saying nobody dies because they don't have access to health care. end quote. most republicans are standing about i their votes. >> at least i can look in the mirror at our constituents and say i tried to be part of the effort to fix this. >> faces a more difficult vote ahead in the senate. needs support from all but two republicans to pass. >> big topic on "meet the press" sitting down with health and human services tom price feinstein at 10:30 on news4. >> mourning loss of stephen holcomb, gold medal winning found dead in his room in new york. no cause of death released. made history in 2010 vancouver game led the four-man bobsled team to gold. first win since 1998. expected to be in pyeongchang, just 47 years old. >> we have a recall you need to know about. aunt gemima products could be contaminated with wisteria. all frozen pancakes, waffles and french toast with best buy date listed on the product. no syrups are part of the recall. >>> embassy open house. got a cha

warren buffett is under that umbrella, makes those parts to let the f35 stop midair and hover.jet that hovers, austin. have you ever seen that? beyond cool. i got to see it at the berkshire hathaway shareholder. plus, it could double its gains over the next year and a half, even if warren buffett steps down. is the president gaining some political momentum during his trip? here to talk about it horizon investment chief global strategist and democratic political analyst cathy. gregg, when he left his approval ratings were not great. but something tells us that they will be better upon the return because he so far is looking very presidential, he's fair, going both to the palestinians and the israelis and to the pope. what do you think is going to happen? >> well, the big thing is that nobody is talking much about russia, and i think we have several days until that cools down. we get comey testifying in another week or so, liz. but i think for now a little hiatus on russia helps him as well. liz: kathy, there's a deal that has been struck, and that is certainly good news for u.s.

billionaire investor warren buffett says he does not buy or sell stocks based on election results telling cnbc it's a question of owning businesses. if i wanted to own farms, i would not be buying and selling them based on an election. buffett also reiterated his confidence in the stock market telling cnbc that any short-term volatilities are outweighed by long-term gains. >> anybody that prefers bonds today to stocks is making a big mistake. i've been saying that year after year after year. now, i don't -- i won't say that under all circumstances, but it is ridiculous in my view for somebody to buy 30-year bond and some countries 50-year bonds, at these rates in preference to buying stocks. stocks will bounce around a lot more. they can go down 50%, but a 30-year bond can go down 50%, too. bonds are a terrible choice against stocks. >> buffett stressed the impact of interest rates on long-term investments. >> the most important item over time in valuation is obviously interest rates. i mean, if interest rates are destined to be at very low levels, not as low as they are now, but very low

i wonder if warren buffett would? is loyal to coca-cola. >> maybe put it in a glass, presend its a coke. >>> coming up, the must-read stories. as we head out, a check on the early european action. mixed picture. ftse 100 in the uk at a record. germany and france hovering near record highs but softer this morning. their experience is coveted. their leadership is instinctive. they're experts in things you haven't heard of. researchers of technologies that one day you will. some call them the best of the best. some call them veterans. we call them our team. rumor confirmed. they're playing. -what? -we gotta go. -where? -san francisco. -when? -friday. we gotta go. [ tires screech ] any airline. any hotel. any time. go where you want, when you want with no blackout dates. [ muffled music coming from club. "blue monday" by new order. cheers. ] [ music and cheers get louder ] the travel rewards credit card from bank of america. it's travel, better connected. >>> welcome back to "worldwide exchange." time for must-read storie

warren buffett admits he missed out on google and amazon. is there still opportunity for you to get into these internet names? in one year amazon up 40%. google up 32%. let's bring in ali who has a hold rating on google at morning star. a buy rating on google at canacore. ali, you think maybe at this point shares are, what, fairly valued? so it's not a buy. >> yes, actually we do think the shares are fairly valued. the company is a great company. it's one of the two behemoths in the online ad industry making some headway on the cloud side. the youtube is growing nicely. but we think all of that is priced in right now. >> michael, you like both of them. you think both amazon as well as google are buys with plenty of upside both your targets are well over $1,000 a share at this point. what would you tell mr. buffett in terms of looking beyond valuation because that's usually what gets it particularly value investors. >> mr. buffett certainly has a great track record. i think that amazon is probably the better stock of the two, if you have any

warren buffett says in tens years the retail industry will look nothing like it does right now.ares in wal- mart. ringing the opening bell this morning, another company celebrating its public offering. biohaven pharmaceuticals based in new haven, connecticut has been trading fora couple of days. doing pretty well. checking in on the numbers. the nasdaq and the s&p 500 opened at all-time highs this morning. down a little bit from their big gains of the day. but still the nasdaq is at 6119. the s&p 500 hanging on to the 2400 level. and you can see the dow fluctuating a bit. it has been up as much as 30 points. it is down a little right now to 21,010. >>> apple still one of the stop stocks to watch -- top stocks to watch as well. one analyst has set the price target for the stock at $202 a share. right now it is up another full percentage point this morning. at $154. so still room to go if that prediction is correct. apple has seen a big gain in friday when warren buffett released it owns $19 billion worth of apple stock. that is up from $7 billion worth in december. >>> well, at l

coming up next, top fund managers lost large tech stock, while warren buffett boosted his apple statedetails of the findings, next. this is bloomberg. ♪ betty: this is "daybreak asia." i am betty liu in new york. shery: i'm shery ahn in hong kong. let us get a quick check of the business flash headlines read hathaway fine-tuning investments in airlines and tech and pulling back from 21st century fox. its portfolio no longer lists fox holdings in american airlines. warren buffett previously disclosed he boosted a bet on apple the first quarter, as he pulled back from ibm. betty: the largest shareholder in ubs is flashing at holdings, offering a 2.4% state that is worth about $1.6 billion. singapore's sovereign wealth fund gic will have less than 3% of the bank after you the sale -- after the sale ubs is managing. they are purchasing bonds that converted into stop when ubs needed capital to cover losses. being bloomberg's told that a hong kong billionaire is exporting options for his fifth lines on business, including a potential sale. which is a global commit occasions is engaging inte