Derailed. Thats about 45 miles west of fargo. Smoke can be seen up to 20 miles away. Residents within five miles of the fire have been evacuated and urged to evacuate, rather, and residents within ten miles have been told to stay indoors. Both trains are owned by Berkshire Hathaways bnsf. No injuries so far have been reported. We should say the fire will likely raise some concerns, though, about the increasing volumes of crude that are shipped by rail. Right now, more than twothirds of the states Oil Production is shipped by rail. Were going to go to michelle with more of the top news stories. Happy new year. Its nice to ring it in with you, andrew. Its very nice to be here. Warren Buffetts Berkshire hathaway is buying philipps 66. Berkshire reported owning about 27. 1 million shares of philips 6 6 at the end of september. That stake is worth just over 2 billion. A phillips 66 filing said it would be getting 19 million of those shares in explaining for the specialty product focusing on the science of drag reduction, specializing in maximizing the flow potential of pipelines. So those two previous soers going together, right . Train derailment, lots more pressure for the Keystone Pipeline and something to make the oil move faster on the pipeline. Marvett tech jumps after kkr discloses increased stake. Its one of the top standout these year up about 09 in 2013. Hertz has adopted a poison pill after seeing unusual and substantial trading activity in its stock. Hertz says it is trying to reduce the likelihood that any person or group would gain control of hertz through open market accumulation. Joe. Fedex, new york city is suing fedex for shipping cigarettes. The big apple accusing the delivery giant of illegally delivering millions of contraband cigarettes to residents which violates a 2006 settlement. The city contends that fedex shipped rooufly 19. 5 million tons of cigarettes in nearly 10,000 shipments. Thats 55,000 cartons. The suit is seeking 52 million in civil fines and unpaid taxes from fedex. Crazy story. Shares of fedex at this hour how is the possible if you cant smoke in new york city . I dont know. I see like ray liota and other guys unloading a, you know, one of those trucks in the back and but these are illegally these are illegal cigarettes . Theyre not allowed to be here, are they . You can sell cigarettes in new york city. Just at a remarkable i guess i was wrong about that. So you can actually have it. You dont go to jail yet for having a cigarette in new york city . If he had one more term. One more term. Theres very few places that you can smoke what about Electronic Cigarettes . Pending, isnt it . No. I thought they said no, didnt they . No, i dont believe you can smoke an ecigarette in a like a bar or a public space or a restaurant. Because it looks like smoke . Its water. Its its nicotine, right . Yeah. But whats coming out is just water vapor. But the secondary smoke that they dont really care about actual the larger debate going on about ecigarettes. So the good part is its helping people smoking real cigarettes get off of them. Whats the bad part . The bad part is the potential that some people so you want to have a law that doesnt allow you to have the potential to start smoking . No, no, the bad part is there is anxiety thats going to encourage a new generation of people i understand. But you dont pass a law to make sure people dont start smoking, do you . To prohibit them from actually i think its right in the vain of the current new york city moment to do Something Like that. The thing about the shipping i think raises the whole we see this all the time, right . Geographic arbitrage, when the price of a product in one area is so much more than another that you raise taxes so high theyre going to look for ways around it. If Secondhand Smoke is hazardous to people around one its one thing. If all youre doing is not allowing it to be doing because you dont want someone to pick et up because it might lead to other that is very nanny sake. And youre paying for their health care. Well, we are now. You would say we were before. But he highlights what i think is one of the most the biggest issues when it comes to socialized medicine, which is you start to be able to tell people you cant do that because you cost me money. You infringe on freedom. But youre always costing me money. If you want to smoke, pay for it. Thats you should have your own individual responsibility to pay for it. But we weve never done that before. We could have. Let me ask you a separate question. If you were a smoker and you couldnt afford to take care of your own health care, would you just say good riddance . I mean, its a very interesting question. And i dont say it just to youve been smoking for 60 years and has been told over and over again its not good for you . You have to in a humanitarian society, you have to but youre talking about 10 of people or whatever it is going to Emergency Rooms and then the 90 are covered or 85 , whatever it was. There should be a way to cover them without taking over the entire system. Thats the only thing people say. There should be a way without what some people say will lead to the disruption of the quality of the entire system or the demand will be so high that the supply will shrink so that its going to be hard to get health care. All the things that have happened when other people try to deal with it to help pretend you basically make it tougher for the 90. But if youve been smoking all your life and you have money, whats tfoot the bill yo 1100 . But youre not going to tell a person that im sorry. Ill turn it off. You have two things. Where is your ipad . I have an iphone and a blackberry. I like redundancy of infrastructure. I think were putting that anyway, that may be a sound that turn off that cell phone. Netflix giving Ceo Reed Hastings a raise. Raised his salary by about 50 to see 6 million for 2014. Another phone number. Thats according to regulatory filings. Netflix shares have quadeled in value this year as it introduced original programming and saw growth in its subscriber base. Hastings will receive 3 million each in cash and Stock Options for the year. Netflix is ending its the value of the company has gone up so much and how much stock does he have . Hundreds of millions of dollars. Its the same story as the apple thing. Its like i only make 6 million. Meanwhile, there was a breaking bad marathon. I know. Did you dvr it . You need to. Yeah, i dvred it. Im not getting it from you at this point. And i dvred it and i saw episode one last night. The very first . No, episode one of the fifth season which was for me very unsettling because it starts out, i guess, near the end. Have you not did he lose weight for the role in the end . You caught no, no, one episode. No, were you caught up to that point . No. But he has his hair back and hes coughing between. So i figure it came back. But they dont really show it. It was the episode with the truck like this with the magnets getting the people may not have seen that. So i wont do that. I wouldnt worry about that. Its so far president obama doesnt want to know that walter white died. I know why he doesnt want to know. I saw someone retweet sdp and god forbid i say ann coulter. But someone retweeted her. They asked why did you shake the hand of a dictator . And r aoul castro said because i thought it was the right thing to do. Thats not true. No, its funny. Because you would think youre talking about why did the president no, no, i get it. I get it. Why do you think its not true . I dont think president obama is a dictator. In terms of executive orders. On a continually you know this is a joke, right . Its hyperbole. In every joke, there is a splinter of truth. But the reason why it is funny is because he is not a dictator. So thank you for explaining that because i was confused. But its funny because some people would suggest the way hes acted lately is a bit of a dictator. Its funny because its true. No, its funny because its not true. I know. Whatever. Something is happening here about a poison bill, investor carl icahn. He took a nearly 10 stake previously in netflix. They got rid of the poison pill, apparently. Did they get rid of it . I think they did. Let me see this. Yeah, they did. Lets check on the markets this morning in the last trading day of the year. The futures are suggesting we have a positive open. We had a really tight range yesterday and they looked like the same situation this morning, dow higher by nearly 9 within the s p up by 1, nasdaq up by nearly 4. The price of oil, wti is at 98. 95 per barrel. Brent is at 111. The tenyear note, 3 on the nose. Its lower by nearly 0. 25 on the price. Euro dollar, 1. 37. The pound will cost you 1. 65. The dollar is mixed and pretty flat. And the price of gold, this has been the worst year for gold in more than a decade. Lower by 1. 10. 1202 per ounce. Lets go across the pond. Its time for the Global Markets report this morning. Ross westgate is standing by in london. Good morning to you, ross. Good morning to you, andrew. We are on the last trading day, of course, of the year here. And only half the markets are trading today. A number of them closed yesterday. Already, the german, the swiss, the irish, the greek markets arent trading this morning. We have a shortened trading session today, as well. London closing up around 12 30 local time. Right now, advancers outpacing decliners 12 to 4. Volumes are very, very light. The ftse 100 up around 15 over the course of the year. Today, up 23 points. The cac 40 is currently up 0. 3 and the ibex is fairly flat. Lets show you where we have gone through the course of the year. The ftse has been an underperformer. The reason for that is because basic resources, many of which are listed in london have been underperforming. Theat thats the worst sector over the course of the year. One of the best performers has been the german market. The xetra dax up 25 . Autos have been the best performer over the course of the year, up some 38 . Tech and media doing fairly well. So the cac 40 up around 70 . The ftse mib up some 16 . Its worth pointing out the irish and greek markets up 34 and 28 . Iron coming out from the bailout to plans in athens showing signs of improvement and greece showing signs of improvement, as well. Its been a surprise how strong the euro has been this year and also against the dollar. Up 4 over the course of the year. And its worth pointing out just a short while ago, two sessions ago we hit the high for the year, as well, at 1. 3894. That was a 26month high on euro dollar. The nikkei up some 50 odd percent over the course of the year. 57 driven by the weakness in the yen. Dollar yen, up 21 over the course of the year. Thats the biggest gain since 1979 for the greenback against the japanese currency. Thats where we stand right now in europe as we dwindle our way into 2014. Happy new year to you all. Happy new year to you, roscoe. Great to see you. He got a haircut for the new year, it looks like. Yeah, it looks good. Hes always handsome, though. Youve got a thing for him. I do. I have for years, yeah. Coming up, some of the most annoying years of 2014. He does wear pants, which doesnt narrow it down that much, does it . Joe. Thats about come on. No, i have other standards. You do. Height. You have to get the checkbook out first, dont you . No. Thats a coincidence. Oh, its coincidence. It just happens every time. Why wouldnt you if you can choose . Out of that pool. Right, exactly. Find someone that fits in. I live in a financial tv in a tv town. It happens. Pope made headlines about his critical comments. Yesterday i had the chance to speak with the arch bishop of new york. Well tell you what he said next on squawk box. It grabbed the patients record before we even picked him up. It found out the doctor we needed was at st. Annes. Wiggle your toes. [ driver ] and it got his okay on treatment from miles away. It even pulled strings with the stoplights. My ambulance talks with smoke alarms and pilots and stadiums. But, of course, its a good listener too. [ female announcer ] today cisco is connecting the internet of everything. So everything works like never before. Tdd 18003452550] tlife inspires your trading. The internet of everything. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Welcome back to squawk box. Lets get over to Michelle Caruso cabrera with todays executive edge which is at the crosssection of on religion and money. Michelle. Yes, it is. The big story on our website is whether or not the popes recent comments about the wealthy and capitalism may be making it toughtory raise money for the 180 million restoration of st. Patricks cathedral. Billionaire ken langone, hes spearheading the effort. He told us at least one potential sevenfigure donor has expressed concerns about the popes recent negative statements about the free market and suggestions that the wealthy may be insensitive to the poor. Langone tells cnbc timothy dolean, quote, told the cardinal, your eminence, this is one more hurdle i hope we dont have to deal with. You want to be careful about general illustrates. Rich people in one country dont act the same as rich people in another country. I sat down with cardinal dolean yesterday. But what the pope and the church believes about which economic model in the world is the best. Here is what he said. Look, the pope is the inheriter of a legacy of teaching. Whats the hallmark of that teaching . Its that the church always recommended what we call a middle way. So he would find pope francis saying, look, both streams of the marketplace, in other words, unfettered cutthroat capitalism on one hand are total socialism on the other. Both of those dont work. Both of those are wrong. Somewhere in the middle where we protect private property investment, private wealth, but we also insist upon the wider societys just obligations to those without, somewhere between those two is where the economy should be. So the Catholic Church is always so we get blasted from both sides. Were not economists. We are moralists. We have prophetic. We are people of the bible and we are virtue. All we know is that however you do it, the Wider Community always has to be taken care of. Joe and andrew, this all stems from this 220 page writing by the pope. Ive read through it in english and some of it in spanish. I think cardinal dolean maybe softens what some of what the pope said. You get a sense that the pope is not a supporter of the free market in its totality. Ive picked out the graph ta i think is a relevant portion of what the pope wrote. And it goes specifically to this issue. He says some people continue to defend trickle down series which is Economic Growth encouraged by a free market will inevitably succeed by bringing about gator justice and inclusiveness in this world. This opinion expresses a crude and naive trust in the goodness of those wielding economic power and in the sack ra liejed workings of the prevailing economic system. Meanwhile, he says the excluded are still waiting. That to me is reclear cut. Sure. The one thing i would add is when you read the Spanish Language version, it doesnt say will inevitably read to more justice, it says the free markets alone wont lead to more justice. But there are sarcastic references to the market, hes critical at some points of capitalists but speculators preventing the state from doing their job. It is mostly thoughtful, but its clear hes not an economist. And he can be wrong. I think its good to emphasize that people need to give back. If you look at where a lot of if a lphilanthropy comes from. But with that aside, the only way capitalism succeeds, i dont know of any capitalists that succeed without somehow growing employment, growing jobs. You know, whether it the whole idea, when you call it, its a loaded term. Unfettered what did he call it . Unfettered cutthroat capitalism. Now, we know from adam smith its been how long . What a profit incentive does, it sets the price and allocates assets by competition. If theres true competition, then everybody has to on be on their toes when theyre trying to earn a living and to do that, you end up, you know, you may not even want to help society. But by creating jobs and by being successful and by doing it well, the jobs are created. Maybe its a and he doesnt seem to give any a lot of people dont understand that. A government, a socio weve seen what has happened where socialism has taken complete hold of a country. And you see what happens. The government doesnt create jobs and it doesnt create prosperity and it doesnt help the people its designed to help. The argument has been made over the last, say, five years to perhaps even a decade that as profit ves increased, the actual real number of jobs has not kept pace. That is in part a function of technology, in part a function of globalization. In part a function of a lot of things. But, therefore, does that change the dynamic around the profit incentive and, therefore, what the pope i disagree with your premise. But in a global world, those are global companies. Theyve created jobs just in other parts of the world. We shouldnt be grudge formerly poor people in the world of having jobs for the first hundreds of millions of people in china and in india, as well. But take the technology piece of it. Thats always we would still have buggy whips, andrew. Theyve demonstrate against machines that separated whatever it was over in england, whether it was the weaving machine and it put people out of business. Theres no more record companies. Think about this. If we didnt get rid of the switchers, the telephones, we would have to employ every single american in switching telephones, right . Weve got the two of us, michelle. And then theres the pope. But if you go back prior to the 17th century, for example, before there were property rights, before for 10,000 years, the average gdp per person, per capita was like 8el 00 total output. Until you can come up with an idea, own it, scale it. But it was almost like pancake batter spread around the planet. 800 a year is what gdp was, until this happened, until capitalism was able to blossom. So why do we need to talk about five years when you could see on a 10,000 year scale how it benefited all of us. We live until 80 years old now. Im not catholic so i am out of my realm on this piece. Ill ask the question of michelle. Do you believe what the pope has said is going to create a real problem not just for people like ken langone to raise money, but over the next 10 or 20 year