Now well get to business at hand this morning. If youre just waking up lets get you up to speed on the markets and whats going on in the futures. Looks like a little bit of a mixed morning. The dow might open slightly higher. Nasdaq would open marginally off and the s p well call it across the board. Well see how things play out this morning. Joe. It used to be mostly new york social sociallights wasnt it . Five years ago it became very strange that it became sort of a moment. Its almost like the white house correspondence dinner. Its for not nerds. For real celebrities. For actual celebrities. Very few cross overs for the two i would think. Probably a hand full. Maybe a hand full. Other big stories were watching today a packed earnings count are among the names set to post results today before the bell. Disney archer daniels, discovery, kellogg and bloomg brands and disney moving its release up to 8 00 eastern. So executives can attend a Memorial Service for survey monkey ceo who died over the weekend. His wife Cheryl Sandberg sits on disneys board. On the economic front, two reports of note today, International Trade at 8 30 eastern and then ism, nonmanufacturing at 10 00. And in Global MarketNews Australia central bank cutting Interest Rates for the second time this year. This is an all time low as policy makers are trying to protect the economy from decreased Mining Investment and fend off tim pact of a stronger currency. We got some stock to watch. We should talk about Dave Goldberg at some point. Among the stocks to watch this morning, texas roadhouse share with a boost on better than expected Quarterly Results. Profits also more than doubling. Wall street expectations more people with Health Insurance use the hospital chains facilities. Well talk to the ceo at 8 15 eastern time this morning. Dont want to miss that. Also Anadarko Petroleum with a loss. The output rose to a record level during the quarter. Also on our stocks to watch Eog Resources plans to resume fracking if oil hit 65 barrel. Posting better than expected earnings in the latest report and then the shares of the Armored Car Company get a bump. An 8. 2 stake in the Company Called it undervalued and ubs posting its highest quarterly profit in near flooif years today. The Swiss Banking giant also announcing its in advanced talks to settle allegations of foreign exchanged market rigging. We have a lot this morning. Germanys adidas with better than expected sales. Among the driver a recovery in its north person unit and strong from its running and fashion. Underarmour, nike its tough. Yeah but they used to be a big deal. I remember when reebok was a big deal. Its competitions and millennials who knows the way theyre going to go. Lets check on the markets this morning. The futures are indicated pretty flat. So far up 6 or 7 points on the dow. S p up fractionally and the nasdaq up as well. We had two days of gains but were just around 18,000. We have been sort of up theyre going to be at the halfway mark and well talk to someone in a moment about which way this reconciles its but we havent made a lot of head way. Theres europe today. Nothing more than a half a point move on the upside but greece is down 3 . It was back above 800 but maybe ready to breach that level again. Asia hang seng and shanghai. Getting the worst of it. Other markets are closed today. If you didnt see the equity futures they changed. They were up 6 and now theyre up 8. That was a fat finger. Be glad it wasnt a trader with a lot of money or it could be the start of another flash crash. And then the euro 111. Thats kind of retraced as oil has as the dollar has, retraced some of those moves that people thought were going to go further. Check out gold quickly and then well move on and get to the afore aforementioned next guest. Lets get more on all of this. On the markets and the key economic and employment figures coming out this week. Really . Is it the first week of may, the big jobs report . Friday is the jobs report already again . I have to come up with another thing to do on my sign i hold up. Its hard every month to come up with something. So you did watch the fight. Yes. So you saw juan 316 on Manny Pacquiao. Maybe we could hear those bands around our head. And you saw Freddie Roach had the geico band. I mentioned that to warren yesterday. How are you . Good. Do you think theres going to be a reassertion of some of these trends. Im going to summarize. You think the economy reasserts itself as being stronger than most people thought although you do acknowledge descent on that. You think the dollar gets the parity with the euro. Oil is probably going to stabilize. My guess would be around 60 because thats a level you can make money. We just heard someone would start fracking at 65. Thats right. In that ballpark is where economically it probably levels out. I eluded to the stock market which i dont know if id say stall but weve been flat the whole year. It doesnt take much of a sell off for the media to say were down for the year. So were right there. Do you think that finally when it breaks out one way or another you think its higher . I think that the direction of stock prices is higher as the economy grows and the earnings grow but i think this year if im right about the economy getting stronger in the United States ironically that makes me better for european stocks. Because the fed. Because of the currency. So if the u. S. Economy is strong as i think it is and wage growth is strong as i think it will be that might prompt the fed to move sooner and that should help the dollar and ironically that might help the earning of companies in europe more than it helps the earnings in the United States so you might have a more robust 6 to 8 in europe. You think the fed goes twice this year . Its based on my relief that the labor market is stronger than most people think. Part of the reason why some of the pressures of wages and change in Hourly Earnings are weaker than people think is because some of our fellow baby boomers are making a lot of money being replaced by less than expensive work. Some show wages are already growing at close to 3 . Thats a better measure of what the underlying wage pressures are and thats good. America need ace raise but that will also put the fed on watch that they need to start to tighten monetary policy. Youre a big time asset manager now. Youre not a one trick pony anymore. So do you pick different sectors here for your clients or say im going to europe . It depends. We have been moving some of the money this year into europe that didnt workout well in april but we still like the United States. Were still overweight u. S. Stocks but not as aggressive. Any particular area here . If you like the u. S. Market you want to look for parts of the market that will benefit from higher Interest Rates and Higher Movement in the market. We tend to be very diversified. Were not making big bets on industry or individual stocks but theres good opportunities in stocks but maybe not as dramatic as a few years ago. Youre hearing people he said theres an easy way to short the bond market. The 30 year and maybe even the ten year that he would its getting pretty common. Two things make it contradictory. Rates will raise but 3 is the new 6 it will seem like a more normal rate and it will have a ten year bond for quite some time. Theres still a tremendous demand for safe secure returns and that tremendous demand for bonds and relatively constrained supply means that rates will low for quite sometime. Are you 60 yet . Im over 60. Doesnt look it. Im older than you are. 60 is the new what now that youre over . I hope its new 40. Is it the new 40 or 35 . Im with you. I glued my price target down. Youre 30. Im thinking 30. Ill go with you. My mother never turned more than 29. So you go with 40. And youre there and you know what youre talking about, right . I hope so. I shoenlt be afraid. Thank you. Nice to see you. Were going to turn to d. C. For a moment 2016 is the big focus. Governor Mike Huckabee will be the latest to declare his candidacy. John joins us now. Good morning. I wanted to run through some of the highlight of this poll. Lets first start with a very fluid republican race that grew by two yesterday. Jeb bush is in first place. Right behind is marco rub i cant from florida. Hes at 18. Scott walker at 14 and the votes carved up before that. Jeb bush improved a quit in terms of his potential vote from our last poll in march. Then you look at the democratic race its absolutely locked in with Hillary Clinton even though she has taken a bunch of hits over the Clinton Foundation and various scandal stories. 8 in 10 democrats think she is knowledgeable and effective enough. Experienced enough. Can get things done. Shaez she has taken a hit on how straightforward she is. 52 of democrats rate her as being honest and straightforward. Now when you look at the other elements of the race president obamas improvement in the polls polls, he is now up to more positive than negative in terms of his approval. 48 approve of the job performance. Thats a benefit going to democrats in 2016. One final note on trade we see the effect of the improving economy on the number and the assessment of American People of whether trade is good for the United States or not. You now have a 37 31 pluerality. And that will help as they try to get votes for trade Promotion Authority and the Transpacific Partnership coming down the pike later this year. Its weird to watch all of this. Ive seen editorials written about how at this point even democrats are desensitized. Theyre like were used to this and we dont care. They said that bill was going to take a backseat and not be real involved. They put him out and he is he is as good as he ever was. Hes like i just dont see how if we get money from other countries and its used to help poor people i dont see how thats a bad thing. Youre good at that. And im listening to him and then he gets a little teary eyed. Hes unbelievable and they better not put him in the back corner. Thats their strongest asset is that guy. Joe, you were talking about democrats and new information. When you have been in the public high for a high level for as long as bill and Hillary Clinton have been your image is pretty well fixed. It takes a whole lot of information to change how people look at you and so i think thats why the stories will take a nick at Hillary Clinton and with certain characteristics, people thinking she is candid youll see some knock on effect and the question is whether its enough to change the race. I asked buffet yesterday i said all of this stuff and then i said let me ask you, is there anything, anything that could come out that would cause you to change your opinion . I dont think there is. Maybe murder or something. I dont know. I dont think theres anything that could come out there was a saturday night live skit with the president when they were talking to six obama voters and they all complain and then they said but would it be enough for you to not vote for him. No. Its funny. 25 think she is trustworthy. Anyone else would think thats a bad number but not her but i think you need to add a couple of those republicans together. I dont think you can when bush has only got 23 and then you have 18 17 14 you cant do a fair evens up comparison against Hillary Clinton. Sure t republican field is fractured. Then it will be much closer i would venture because she has the democrats but i dont know about swing voters. If she moves left she may lose swing voters. Joe the race is already close so we matched up Hillary Clinton and she leads all of them but margins arent huge. She leads rand paul by 4 marco rubio by 6, jeb bush by 6. This is not a situation where Hillary Clinton is running away from it. Jeb bush leads. So it is not fated what the outcome of this election is going to be. Theres another part of the survey that ran as a separate story in the wall street journal this morning and i dont know if this is something you focused on. This was about our favorite topic at this table, maybe mine joe, which is economic inequality but what was so interesting was it said the survey finds americans are more concerned about moving up the economic ladder than about the rich becoming richer. If that is true do you think its going to impact the way Hillary Clinton approaches the issue. Its not only true it is impacting the way Hillary Clinton and everybody else is approaching the race. The issue of the ability of the middle class to make gains is much more important to people. We saw that in our poll by Something Like 30 points. As long as the middle class is move ago head the gap wont be debilitating. But the left played this class warfare issue with it being about the rich being richer. The two are linked. The middle class, yes the rich are getting richer and the middle class are not getting ahead. Those things exist. But the emphasis is do you try to make the rich poorer or do you try to make the poor richer . Thats really about how this discussion gets framed . Yeah true but the discussion is being framed about the middle class getting ahead. The campaign is not going to be about making the rich poorer. I can guarantee you that and its not going to be about income inequality itself. Its going to be about the ability of average families to move ahead as they have not moved ahead for 40 years and one element of that as i said it overlaps with and is related to trends in income inequality. Larry summers said his values havent changed but his view has changed because of the rise of inequality and when you have the trade offs between economic efficiency, what makes the engine run most smoothly and fairness. Some level of redistribution, what you do at the top end the balance has shifted. Youre doing good damage control. Hold on a second. But when Hillary Clinton says im going to topple the 1 . Im going to topple the 1 . Topple. What does that mean . What does it mean . It means its a 0 sum game and im going to take from the rich. No. Im going to be hillary hood. Thats a cartoon picture. She didnt mean it. She didnt mean the private sector doesnt create jobs. She never means the stuff she says. What she and democrats want is not to topple or make the rich less rich. Theyre trying to theyre trying to raise some money. In this case i think she has approached it in terms of framing the issue a little bit differently. No, no. But its with the middle class. Ill leave you with this. Were in trouble. Weve gone too long. Their approach is government needs money and theyre going after it from the 1 . Not to make them poorer but to pay for things they think need doing. Okay. I think were going to agree to disagree this morning. Its wonderful to see you. Well see you soon. In the meantime well talk about changing the world because becky quick sat down with warren buffet and get this she also sat down with bill and Melinda Gates. They talked philanthropy. Find out why gates argues profits shouldnt be the sole motivating factor for entrepreneurs but first, heres a look back at this date in history. New performance numbers today on the worlds most powerful Hedge Fund Managers. Last years Fund Performance was the worst since 2008 with the top 25 Hedge Fund Managers bringing home half of what they did the previous years. The founder and ceo on top of the list for the first time with earnings a billion dlee. Thats not the fun and me management. Becky caught up with the gates in omaha. Also joining their conversation warren buffet who pledged much of his fortune to that foundation. I know that this is an important year for berkshire but theres other anniversaries too. Its been 15 years since the bill and Melinda Gates has been founded and nine years warren since you made your pledge to the foundation. I just wonder from your perspective how things are gone. Up until now its perfect. Warren hasnt aged in that time and neither have we. If you look at what the foundation is doing before what you have been able to do since the pledge was made to the foundation, do you mark that time as before and after . Yeah it was pretty phenomenal. We learned a lot of things. We got this doubling of capacity an we were able to be unbelievably ambitious in what we were going to do. Thats our lifes work now is making sure the money is well spent. All three of you are very busy. You have been traveling all over the globe. Why was it important for you to get here for the 50th anniversary too. This is such an amazing time for berkshire. I wanted to come. Its been a few years since been here. Its been tricky with children. Warren has a great time and bill has a great time. Its a huge milestone and so exciting to see all the things the company has done and all the people that come in honor of berkshire. She may be busy on the 100th so she thought she should make this one. How would you say your threes friendship and partnership has evolved overtime. Well, with me started on july 5th 1991 and bill was reluctant reluctantly meeting with me and we hit it off and we had a lot of good time since. We started doing things together. One of the great things was the arranged so i could eat hamburgers the whole way. That was big. I tease bill because i think there came a point in our life where it seemed like omaha was always to or from the east coast. Ho