tv After the Bell FOX Business December 9, 2013 4:00pm-5:01pm EST
hitting all-time highs. [closing bell ringing] >> domino's pizza and papa john's. all new highs. cheryl: another stock we're watching as the bells ring on this monday. the dow, really talk about that before we get to twitter. dow and s&p and nasdaq eking a gain. we're in the green, david. david: again, it was a lot of, get the feeling, cheryl we're on kind after pause until what happens. whether that lasts whole week we're not sure. there would be other events that transpire that affect it. at least for now, as you know the fed is about to enter its cone of silence they go into until the meeting. they start that tomorrow. a couple of fed presidents getting their last licks in before that happens. again the market is waiting on what happens. cheryl: three of them. david: let's get you into your front page headlines before we go any further. we have a fascinating day including jon hilsenrath. first us airways officially completed their merger with new york carrier, world's
largest, called american airlines group. this a combined entity. trading under nasdaq ticker symbol, aal. we'll be watching that very closely. cheryl: the stock is jumping today. mcdonald's today reported weaker-than-expected global sales at established restaurants in november the world's biggest hamburger chain was hurt by sharp drop in comparable store sales in the u.s. david: cisco's stock is on a tear today. after the company announced it is buying rival u.s. foods -- sysco. paying 3.5 billion for the purchase and assuming 4.7 billion in debt. cheryl: upgrade from morgan stanley, wall street firm raising stock from overweight to equal weight with a 60-dollar price target. david: teen apparel retailer abercrombie & fitch is extending ceo mike jeffries contract for another year. that is good for him, not necessarily for the stock. this is days of an activist investor called in the company to replace him. abercrombie stock fell sharply
on the news. cheryl: much of the country struggling to recover from a huge snow and ice storm that forced cancellation of nearly 3,000 flights. that happened yesterday. more than 1600 today and oh, yes, more snow is forecast for the northeast! "after the bell" starts right now. david: let's break down today's action. boy, a lot of selling into the end of the day's session. we have jamie cox, harris financial group managing partner. he will tell us why he is not really that worried about the federal reserve's taper timeline although there is a budget timeline he is worried about. lincoln ellis, green square capital management managing director. he is in the pits of cme. i want to start with you. it appears even though there was a selloff at the end of the day it appears the market is generally okay with the taper. that was brought into sharp focus on friday when good job
numbers came in. >> i think that's right. if you take a backward looking view what went on in the summer, bernanke is leading the market to the idea of a taper in the august and september meeting, the idea was that was the preamble, the first chapter of taper and what we saw that the economy actually did quite fine. job creation stayed at 175 to 200 level. maybe we had a little shift around in the complexion of the economy and housing took a bit of a dip but actually closing and contracts we saw coming to market particularly in the middle part of the real estate market continued pays. what they were doing in terms of setting the table for the real taper that is due to happen later this week or in january, actually seems not to affect the economy as much and market seems fine with it. cheryl: okay, jamie, lincoln just said it, the taper that could possibly happen next week. there has been more of a chorus of analysts and traders, investors like yourself saying hey, look if the data is there for the december meeting we'll see a taper but the market may
not be ready for that. they're thinking march or january. what happens? >> well, i think the market is actually more ready for taper than people get it credit for. we got a preview what it will look like. one of the things that people recognize, that the taper means things are improving. that is good. that is not bad. we don't need bad news being good news. we need good news being good news and if we have jobs numbers that continue to come in postively, and we have economic data continuing to get better that's a good thing. we want the economy to get better, the currency to get stronger and people to get richer for the right reasons, not because the fed is buying assets. david: jamie says maybe the fed is absorbing taper news but could it absorb a new budget crisis in d.c.? >> that is always the wildcard. absent in all this, all the things that happened over last couple of years is fiscal contribution. it has been nothing but fiscal
takeaway. if congress and president get themselves together and add positive contributions to this conversation, i think it would be good. we have yet to see them come together though. i mean there is all kind of talk on the table which always the way it is. my worry we'll get right up to the deadline again and market starts to get nervous and sell off into whatever deals comes up. i don't like this govern by crisis thing at that we have been dealing with for the last three years. i think it is bad policy. cheryl: lincoln, as we look at market activity today, fair enough, we did dip into negative territory just for a few moments on the dow and nasdaq but do you worry here that the markets are actually going to pick up in volatility as volume decreases and we get more taper talk? >> absolutely. look the biggest, the biggest enemy of the u.s. is the u.s., right? we've talked about the complications of the political system. our inability to actually get any sort of clear path, not only in terms of federal reserve
policy but in terms of budgeting policy. that kind of volatility will pick up not only because of what is going on in washington but what is going on in terms of the taper. you have to remember we're at very low levels of volatility across all major asset classes, equities, fixed income, and commodities and we're not -- cheryl: volatility did actually pick up last week and look what happened to oil. >> one small increment off of a very low level is not a real volatility increase. we're talking significant levels of volatility. vix back above 19, right into the 20 level and the broad base of the commodity complex really moving back into the 25 level. just hasn't been there. hasn't been there for almost two years by the way. david: jamie, i'm looking at your stock picks. you're optimistic about the market. you think it's absorbed any kind of fed tapering but you're going all to defensive stocks. you have gm, p&g, coca-cola, boeing. these are, this is about the
most defensive-looking stock lineup i've ever seen. >> david, one thing that i, it is important to look in all those different companies. i'm looking at positive, i'm looking at interest rate rises. these particular companies i listed there, are actually ones i think will do well when interest rates rise because they have pension plans. for the last couple years these companies have been hiding their pension liabilities in a lot of different numbers in earnings reports. for the first time as rates rise on the long end we'll start to see pension plan liabilities drop and contribute to the earnings in the future. although it looks defensive i'm actually, my theme is, pension plan liability. so i think that is going to be something that people aren't paying attention to. cheryl: that is interesting, rising long-term interest rates are actually a good thing. i want to get your take if we can for just a moment. looking ahead to 2014, we're getting into the time to try to predict with we'll see in markets in 2014. barclays came out today. ubs, goldman sachs, came out with bullish reports.
bullish reports do you agree and what will the volcker rule to the banks is nynex question? >> talk about the volcker rule for a second. one thing we have to be careful about. the volcker rule will be decided next couple days. we'll get good details about it. the thing isn't implemented until 2015. it will be a lot of time to lobby away sharp edges. people need to look at financials as maybe a buying opportunity. but the real rule, the teeth of it won't happen for a year. so i wouldn't take too much, i wouldn't worry too much about that one in the short run however if i were looking at future trying to predict what would happen in 2014 it will be the put up or shut up year. really, we have been leading up all the way up into the end of this year with positive economic data. the fed has been very, very accommodative. once they start tapering the economy is either going to do super well and taper was the right decision or it will do poorly and they let go of stimulus early. the reason people are bullish, people really believe the data
is supportive of economic growth and i tend to agree with that just because i -- david: for a second here i want to go to a bellwether stock. a lot of people look at mcdonald's, mickey d's as a bellwether. their same-store sales were down. does that concern you? are you worried that might be sort of a canary in the coal mine signal? >> if you look at other food group earnings, papa john's and dominoes, maybe people are eating pizza than hamburgers this quarter. you have to look what the consumer choice across the board. that has been trouble for mcdonald's. as choice proliferates and costs become a negligible issue as incomes begin to incrementally rise, people will move away from the low cost provider and slightly healthier choice. that is what we're seeing across the consumer spectrum. that is a tough transition for mcdonald's to continue to have to shift its menu around and cater to more healthy lifestyle. i don't think they have got that message through and you're seeing some consumers, particularly in the medium and
lower end make different kinds of choices. david: some of the healthy eating stocks have done extremely well, if you look at them them. guys, thank you very much. cheryl: i still like french fries. david: jamie cox, good to see you my friend. ellis, lincoln, we'll check in with you in couple minutes when s&p futures close. appreciate it, gentlemen. cheryl: it is an unprecedented alliance against unrestricted government surveillance programs. some of the biggest names in the tech world putting aside their rivalry for this campaign. we'll tell you which companies are involved and why. we mentiol reserve chairman ben bernanke could be ready to pull the plug or pull the lever on the fed's tapering as soon as next week. coming up "wall street journal's" jon hilsenrath will give us inside scoop on what investors should look out for. cheryl: our facebook question is about the tech companies demanding strict new limits on government surveillance. we want to know is it a sincere move or a pr student to keep
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cheryl: well the home carbonation maker soda scream is it making a come back after earlier losses. nicole petallides on floor of the new york stock exchange. nicole. >> soda stream was an interesting stock to watch because it was under some pressure. late in the day it got a pop and managed to finish higher today when most of the news seemed negative. the stock was up about 4.5% and closed at 55.76. however, let's start with what we know for a fact. long boat research cut-rating on the stock to neutral from a buy. they talked about discounting and may not be good for holidays, williams sonoma and costco. you get carbonated drinks out of this. lot of people love it. i don't have one but it seems to be popular. there was a report that there may have been some positive industry news which made the stock jump up and we saw it selloff.
watch sodastream tomorrow. it had a wild day on wall street. cheryl: somebody tell me you're giving me a sodastream for christmas. david: you have to buy it. because we advertise it on a fbn all the time. you have to go out and buy one. it doesn't cost much. cheryl: thank you, nicole, s&p futures about five seconds ago they closed. head back to lincoln ellis. we know we were selling toward the end of the session. was the same thing happening with the futures? >> yeah, absolutely. there was a lot of selling right on the close with that 3:05. it pulled market back from moving towards all-time highs. we are beginning to hunger time and lock in the year-end gains. as long as we're talking about before with cheryl to anticipate some of that volatility a couple of things. we have a 10-year auction on wednesday. tomorrow we get the jolts numbers job opportunities and
labor turn over statistics. that is economic underpinnings to the jobs market. this in our mind is more interesting an insightful piece than the bureau of labor report last week. you see where the jobs are happening and where opportunities are and that can lead to consumer spending we're looking for. david: good stuff. lincoln ellis from the cme. >> watch out for that report tomorrow. >> you bet. cheryl: the fed's last meeting of the year is just over a week away and with recent strong economic data just as last friday's employment report will the fed begin tapering as early as west week? david: joining us is a guy with inside scoop on the fed, "wall street journal's" jon hilsenrath. good to see out sight of the beltway here in new york where you belong. despite it appears the market didn't do too much. down at end of the day. friday was booming t appears the market was ready for a taper. is the fed ready for a taper? >> they're close, they're close.
it is not clear at this point if they're ready to do it in december, possibly in january which will be ben bernanke's last meeting running the place but certainly getting closer. they want to see improvement in the job market. the economy looks better today than it did in september when we remember decided not to, when they balked at -- david: lucy moved the football. >> now the football is here. we'll see. i mean it is certainly going to be on the table. what they could do is set the stage for it. say after the meeting put out, in their statement in the chairman's press conference, you know, that they're getting closer to or might go ahead and do it. cheryl: you are one of the few reporters really has such inside track on the fed and one thing i noticed under ben bernanke stewardship, no matter how many analysts come on and tell us they will do x, they will do z. they seem to tune out everything when it comes to noise in the market s that really going on with them? >> i think analysts sometimes tune out what the fed is actually saying. so september was a really good
example of that. a lot of us were reporting and people at fed were saying it was a close call going into this but people in the market just convinced themselves that it is going to happen in september and the fed surprised them. but i think a lot of people in market got ahead of themselves. this december meeting is another close call. so people shouldn't be surprised if it happens. there is also a chance that they might wait. david: the time they didn't tune it out was last spring when ben bernanke first started talking about the taper, the market crashed, interest rates spiked. >> right. david: it seemed like it really shook the foundations of this federal reserve, am i wrong on that? >> absolutely. that is one of the reasons they're very nervous acting now. they saw the mere act of talking about pulling back unsettled markets, shot rates up. david: rates are going up again. >> rates are going up again. one thing is much different today than was the case in september. if you look at expectations in the markets for short-term interest rates, they have really
hung in there. so back in september when you look at futures markets, fed funds futures, futures for euro dollars, the expectation was that the fed was going to start raising interest rates by sometime next year. now, that was the message the fed did not want to send. they want to convince people even after they fall back they're going to keep rates low for a long time. it looks different in the futures markets. they really believe the fed when the fed says they're not going to raise rates until sometime in 2015. cheryl: i have to disagree with you on the point they say their words actually move markets because i have never seen such an open fed. this is not alan greenspan's federal reserve anymore. >> right. cheryl: three fed officials came out today. not all voting members but, the language, rhetoric, speeches, whatever, are pretty clear and pretty dead on. i think -- >> this is part of problem. so if you look at what people were saying just today, you've got fed officials all over the map. you could call it the federal open mouth committee. everybody is talk right. david: i like that.
i hadn't heard that before. >> hawks on the fed want to pull back right away and doves want to keep the programs going forever. people have a hard time digesting this message. one of the problems this summer was that bernanke decided no the to go to jackson hole this year. yellen was kind of hiding hidina bunker because she was in the whole succession debate that was going on. bill dudley wasn't talking. the key decisionmakers were silent while all these other voices were out there. i think that is one of the things that confused people. david: when the fed does sort of taper its bond buying who will buy those bonds? is the fed at all concerned there may not be a market for these bonds they have been buying up? >> well so, couple things. one is the deficit has been get being smaller. there are fewer of them out there than there were a couple years ago. but there are also, i mean there are a lot of buyers out there, insurance funds, pension fund and don't forget foreign central banks who are trying to control
their own currencies. david: there is no concern that there won't be demand there for the bond among fed officials? >> what the fed will tell you there are not, what they're trying to do is lower interest costs for households and companies. they're not trying to make it cheaper for the government to go out and run big deficits. i don't think they're worried about that. cheryl: jon hilsenrath, aka, bruce springsteen. >> thank you very much. how old is bruce these days? i think you don't need to worry. you're a lot younger than because. cheryl: kind of looks like bruce. david: will new york mayor-elect bill de blasio's wealth tax proposal cause wall streeters to move to main street? steve forbes talks about the potential implications of the new mayor's plan in just a moment. cheryl: they might be corporate rivals, apple, google, facebook are a few of the names teaming up to challenge the government surveillance programs. we'll take a look what they think the solution is. ♪
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cheryl: we are getting some breaking news. fox business now confirming that treasury secretary jack lew has himself confirmed that treasury has sold its final remaining stake in general motors. the common stock, the shares that the government owned, all of it has now been sold. the stock hitting a 52-week high. as you can see the stock is moving to the upside in the after-hours with this news crossing over all the u.s. government from general motors investment. made $39 billion. this investment going back 3 or 4 years with the tarp. that was general motors and when
chrysler did take tarp money. ford never took any tarp money. breaking news on gm. david? david: time for a quick speed read of some of the day's other headlines, five stories, one minute. galaxy brand holdings carlyle group company is purchasing linen 'n things. linen 'n things went bankrupt in 2008. before being recreated as a e-commerce site a year later. >> time warner is reportedly delaying the spin-off of time, inc. from 2014 to later this year. this because of time, inc.'s poor performance last quarter and its expected performance this quarter. microsoft has deals leading up to christmas and customers need to facts because supplies are limited. the promotion is 12 days of deal. they could get a dell tablet for only 99 bucks. over past two weeks the price of gasoline increased by 3 cents a gallon according to "the lundberg survey." the price of regular gasoline is $3.29 a
gallon. king, the company behind the candy crush popular game fears the company is too popular. it is delaying the ipo until next year hoping to prove it is not a one-hit wonder. that is today's "speed read." [buzzer] take my cue. take my cue. cheryl: they are normally fierce competitors but now apple, google and facebook are uniting in a letter to the government. david: they are among eight large tech companies calling for limits on government surveillance. jo ling kent covering the story and has more details. jo? >> dave, you're right. the tech companies publicly agree that spying hurts their industries and they banded together to push president obama and members of congress to action saying they quote, strongly believe current laws an practices about surveillance need to be changed. aol, apple, facebook, google, linkedin, microsoft, twitter and yahoo! created reform government surveillance coalition and said in open joint letter we
understand that governments have the duty to protect our citizens but this summer's revelations highlight urgent need to reform government surveillance practices worldwide. the letter says the balance in many countries tipped too far in favor of the state and away from the rights of the individual, rights enshrined in our constitution. this undermines the freedoms we all cherish. ceos including twitter's, marisa mayer off yahoo!, facebook mark zuckerberg and ceo of google larry page put forth five goals. they're calling on government to limit surveillance to specific users, not to collect data in bulk. they say the company has the right to publish what the government is demanding from them, how much is asked for and how often it is being asked of it. the change comes at the same time reports that american and british spies are using popular videogames like "world of warcraft" and second life to conduct surveillance and gather data about millions of users online. inttlligence operatives disguise
themselves with avatars like no, ma'ams, supermodels. this was unveiled in the guardian things to linked documents from edward snowden. back to you, cheryl and david. cheryl: thanks, jo ling kent. david: incoming new york mayor bill deblasio wants to have a new tax on wealthier people. will it cause rich people to move to other parts of the u.s.? steve "forbes" editor and chief will weigh in. cheryl: buffett on buffett. howard buffett will sound off on his father, warren buffett and how his dad's leadership of berkshire hathaway inspired him to help some of the world's hungriest people. ♪ ya know, with new fedex one rate
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aluminum proction in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, glal economy. it's just one reaso over 70% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. cheryl: time for a look at today's market drivers. stocks pushed higher following positive inflation data out of china. the dow traded in a range of 43.11 points the narrowest trading range in six months. telecoms and materials led today's gains. oil declined the first time in seven consecutive sessions on speculation that the fed could taper the bond buying program. natural gas had a six-month high on a increased demand for heating fuel as it is chilly outside.
below normal temperatures blasting much of the east coast. natural gas closed the trading day up 2.9%. david. david: new york has a lot of rich people. upon whom the city is relying more and more to pay the bills. and now new york's mayor-elect bill de blasio wants to make them pay even more. he propose ad misnamed millionaire's tax. it is misnamed because it kicks in on all those make $5 million to pay for kindergarten education programs. will the tax catch on? steve forbes, "forbes" editor in chief lives in new jersey. >> i saw 60 years ago this was coming along. david: wealth tax, it is small increment increase. i think city tax would go 3.9 to 4.3, 4.4. it is small but all of these wealth taxes always start out small. i think of the amt, alternative
minimum tax, originally designed for a couple dozen people. now it affects millions. >> that's right. it also sends a signal out that new york city takes prosperity such as it is for granted. new york does have unique advantages. it won't kill the city but sends a message out, we're not interested in entrepreneurs. more importantly we don't understand real wealth creation. if anything you should be doing the opposite. in terms of what he wants to finance, in terms of education, if he is really a believer in hecation why does he have the hostility to charter schools which demonstrated to help people who need help the most? david: specifically on the tax issue is there any evidence that people do vote with their feet when people raise, when people come up with these wealth taxes, folks actually move to places with lower taxes? >> yes. especially when they are thinking about retirement. they look at death taxes. they look at income taxes. even though they candying up some studies every now and then that purport to show this has no effect, the fact is a lot of people move to florida, people move to texas and some people even move to states like
wyoming, nevada and state of washington. david: people affected are very small, 1.4%, but when you look at the disproportionate amount of money that 1.4% pays in tax, that could be a big, if they move out, that could be a big crimp in an already-strained budget in new york. >> that's right. new york already has when you combine city and state taxes one of the highest tax burdens in the country. it devastated new york state. look at up state. again to think new york city's impervious to these kind of demand, look what happened in the 1960s and '70s they literally drove the city to bankruptcy. so why start on that path again? david: let's talk a little bit about the rhetoric of income disparity. we heard the president talking about it. there is bigger gap between the richest and poorest in this country but look what happened with the bush expansion in the early 2000s. you had income growth for top 1% of 65% which was impressive but look what happened during the
obama recovery. when taxes went up, the top 1% did a hello of a lot better. richest got richer. and poorest got poorer. >> that's right when you have an economy that is stagnating, those who want to get ahead have the least chance to do it. we should have learned that from the 1980s. you had more income disparity. people like bill gates and state steve jobs were coming along doing very well but the economy blossomed and people had a chance to move up. david: all boats rose. as jfk said, rising tide lifts all boats. look what happened during the reagan tax cuts when they went in the opposite direction deblasio goes. top income group went up 20%. bottom 20%, went up almost 12% as well. everybody does better when tax rates are cut. >> yes, instead of looking at a stagnant pie and figuring out how to cut more from it, how do you grow the pie? john kennedy who is portrayed as a great liberal on taxes and
spending was quite conservative. i wish people like mr. deblasio, would realize, you want prosperity, you get a lot more creating new businesses good environment, than by driving apeople away. you don't understand how prosperity is created. david: leads us to governor mario cuomo. he is more after kennedy-style democrat on tax cuts, is he not? >> he is certainly making the right noises. there made very clear he would like tax cuts. we'll see if he follows through and push it through. he had a mixed record. he allowed taxes to go up a year, year-and-a-half, two years ago. if he pushes for tax cuts i think that will be -- david: he would have to sign off, first of all new york state senate is controlled by republicans. they will not sign off on a tax increase, are they. >> republicans in name only. in albany you don't know. david: there are rynos that may raise taxes? >> if you get deals i give you this, give you that, good lord. david: would governor cuomo sign
off on tax increases when he says he is against them. >> we'll see how politically he is behind the scenes and kiboshing this thing and getting word to mr. de blasio. make all the noise you want. this ain't going to happen. david: the man responsible for "forbes on fox" every saturday morning on fox news at 11:00 a.m. >> we follow your lead. david: thank you, steve. cheryl, over to you. cheryl: david, legendary billionaire investor warren buffett is leaving the bulk of his fortune to philanthropy. up next, we're talking to his sons, howard buffett, chairman and ceo of the howard g. buffett foundation on how he is putting his father's money to work. it is official. american airlines and us airways merged to create the world's largest airline. what does it mean for you, the flying public? coming up we'll talk to our own jeff flock at chicago o'hare airport. ♪ won't trap me in a rate. that's correct.
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cheryl: legendary investor warren buffett said to his son, if you have the resources to accomplish something great in the world, what would you do? well today, howard buffett has given himself a deadline of 40 years to put more than $3 billion to work on easing lives of people who don't have enough to eat. so where has the journey taken him? joining us now, howard buffett, howard g. buffett chairman and foundation ceo and author of finding hope in a hungry world. great to have you in the studios. >> thank you very much. cheryl: the book, 40 chances it's a farming saying that you've got 40 years, 40 crops to make your mark. >> it was, i went to this planters school they call it to improve your planting for a farmer at the local john deere dealer. this guy says to us, you think about one season goes and next season. you have only 40 seasons or 40 years to do the best job you can do. especially made me think about how we do things at the
foundation differently. cheryl: what has your father taught you about giving back? the charitable arm has been important to you, but how do you bring the business lessons back from him in trying to, well, feed the world basically? you're talking about world hunger a lot in the book. >> of course it is funny because the first thing he always asks me, how many people do you have working for you? always worried about how efficient are you. so we try to be very efficient. but on the other hand there are big issues. so i think i've been very fortunate because i had a lot of lessons from him over a period of time. some of them transferred to philanthropy and some of them don't. cheryl: one of the things we've seen, and this is what we've been watching from washington is the farm bill. something you as a farmer know much more about than most. >> yeah. >> the criticism, it's a bloated bill. there is too much added on to it because people want x, y, z for their districts. when you look at something like the farm bill, do you think we're in the place in this country where the farm bill is even an effective tool for the farmer? >> well, the first thing have to
stop and realize that the largest proportion by far, is, you know, for, the snap program and other benefits that come through the social safety network. so they all fall under the farm bill. so the farm part of it is always a smaller part. but the farm bill is an important part of keeping fabric of the u.s. rural economy together and making sure we have, inexpensive food, safe food and you know a lot of available food. we've accomplishes that in this country. david: what do you think, what are the economic conditions right now that you're seeing in the farm bill? >> well, i think, you know, the big argument is over crop insurance and, you know, is it too much or not enough. basically the bottom line is, there is always, people have different agendas. bottom line farmers should have a safety net in this country because this country depend heavily on a lot of what they contribute. cheryl: one of the things you also do, you're on several boards. one of those boards, speaking of food and beverage is coca-cola. >> well -- cheryl: what do you learn and add from your time on the board
at coca-cola? what does that experience do for you? >> first of all, it is great. we have incredible ceo. cheryl: mukhtar kent. >> mukhtar is great person. he set great targets for coca-cola in terms of water availability, entrepreneurship for women, particular any in africa. he said hard and high targets for the company. and i think to see that happen in, in the u.s. corporate culture is a great thing and it also helps create jobs in place where people can be pulled out of poverty through business. cheryl: well, have to ask you this. of course you will take over chairmanship from your father at some point. one of the companies you own is benjamin moore. benjamin moore had struggles recently. how closely are you following the story of benjamin moore and frankly all the company your father owns? >> frankly he is ceo and chairman. i don't have to do anything. i don't have to follow that ccosely. we have a lot of great companies. they have their ups and downs. you know, i just think berkshire is an amazing portfolio of
companies. an amazing group of ceos. i don't think you can find a better group much ceos in this country. cheryl: your dad calls it, quote, likes to go game hunting. that is what he calls it. that is for companies. when you look to the future, what kind of companies do you foresee? in your portfolio? >> in what? cheryl: in your portfolio? >> it won't be my decision. i will be a little guy off to the side. as non-executive chairman you will have a very good ceo and a board with tremendous amount of experience and it will be a collective effort. cheryl: i think you, i watched watched liz's interviews with you and your father. seems you evolved and taken his lessons to heart how to run a business. warren buffett is so famous of saying i don't invest in something i don't understand. we didn't listen to him in 2000. we should have. >> he always talks about the circle of competency. you have to remember most people's circle of competencies are not that large.
you within them. doesn't mean you don't get outside of comfort zone to learn. you stay in the circle of confidence, particularly in his case he would invest in that circle of confidence. cheryl: the book is called, "40 chances, finding hope in a hungry world." we'll see what happens with the farm bill, your book. great to have you here? thank you very much. cheryl: how are ward buffett. -- howard buffett. david, over to you. david: we have breaking news concerning the volcker rule. a lot of what is in the volcker rule is coming out. we have a preview. forgive me looking at my computer. the volcker rule will bar compensation arrangements that reward proprietary trading. a lot of question as to what that is. also for rin banks who have operations in the united states will be affected. there have been some question about banks like hsbc for example. it will affect their operations in the united states and that could lead to a lot of changes in terms of what kind of
operations they have here. also the rule requires ongoing review of hedges to insure compliance of the a lot of details are beginning to come out now what the volcker rule is. of course there still remain a lot of questions about things like proprietary trading and what is, and what is not. we'll wait and see tomorrow once we go through the details as to whether they are addressed. just about two weeks from christmas and decking of the halls has already begun. how much are you willing to pay for a christmas wreath? wait until you hear how costly the world's most expensive christmas wreath is. also the merger that is creating the world's largest airline finally closing today but how long is it going to take to get the nuts and bolts together? how will the increasingly bad weather impact the airline industry? do you have a flight today or tomorrow, one of your loved once? we'll go live to the biggest airport in the world, o'hare international in chicago. in just a moment. ♪
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family? cheryl: his response was, because i'm right. great to have him on the show. liz in trouble for not being here. david: it was fun. cheryl: the merger for the world's largest carrier closed today amid heavy airport delays caused by a massive winter storm. david: huge storm. jeff flock is live in chicago with more on this. >> i love warren buffett invested in airline stocks. if we had been around when the wright brothers were out there we would have shot them down. even if you're the biggest airline in the world, if you have weather, look at arrival boards, if you see yellow, your flight is delayed or canceled. boy, there are plenty of delays. this is not the worst of it. where you are in the northeast. look at laguardia and look at numbers on newark and philadelphia. two hours worth of delays. so big trouble there. but a big day for american overall. cheryl, your interview with doug parker, the new ceo of the new
american, fascinating interview. listen to what he said about where the growth is. he doesn't think the growth is domestically. listen where he thinks it is. >> i think internationally mostly is where there may be some more growth opportunities. the u.s. market, certainly not saturated but largely mature. there is growth still left in the u.s. market but probably as the economy froze. >> and, there you go. maybe it is overseas and look who they're competing with overseas. this industry might finally be right-sized. delta, united, now american having consummated mergers that make them what looks like pretty solid. take a look at the stock, not only of those guys but look at the stock today of the new american. ticker symbol aal. no more amr. today that closed up about 3% last i saw. i think that's what it was. that is not a bad day for a first day out of bankruptcy for a new company. at o'hare a lot of people
waiting. glad it is not me today. cheryl: now the fun part begins. that is integration and doug parker saying they certainly learned from the mistakes that united and continental made. jeff, you had a front row seat yourself. >> and themselves. david: and overseas. great interview, it was terrific. regulations over there are so much more onerous in many way that is than regulations here. it's a tough deal for airlines. cheryl: funny he said international. david: they will need to go for. >> it thank you, jeff flock. live out of o'hare. david: thanks, jeff. starbucks, selling out $450 metal gift card in seconds. you can still get your hand on one of the limited edition cards. there is a catch though. isn't there always a catch? we have details when we go "off the desk." ♪ e.
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starbucks metal cards sold out in seconds only $450 and only a thousand cards were available. people are selling them on ebay. david: we'll get your response. we had millions today. we'll get your response in tomorrow. melissa: welcome to a new week of health care hell. shocking numbers show seven out of 10 doctors in california refuse to participate in the state health care exchange. it is the latest blow to obamacare that could end up burning a hole in your pocket. even when they say it's not it is always about money. >> you know the president is in trouble when he is fighting pushback from one of the nation's bluest states out there. from the looks of it obamacare is getting anything but a sunny reception from doctors in california. a new study estimate that is 70% ca