White house. We expect that service to end just before 10 00 this morning. Then its off to the white house for coffee and tea with president and mrs. Obama and the joint Congressional Committee on inaugural ceremonies. Guys, back home it truly is a hallmark of our democracy and it will be on full display this morning. Very much so. Just kind of the peaceful transition that we all expect even though its been such an unexpected election year. Doesnt look like theres anything different, carl, from what ive seen from all the other inaugurations which is a new president comes in, old president s there and it just transitions. Do you feel that are people saying, no, this ones going to be different this time . I think the general take down here this morning is that as different and nontraditional as the campaign was, trump is demonstrating real respect for the traditions of the inauguration. Going through the traditions of, for instance, this Service Today at st. Johns. That goes back to fdr. Were going to wait and see how that translates to the inaugural address about midday today. The market, you know, jim, has been looking for cues throughout the transition about policy expectations, timing of those expectations. Who knows. Who knows whether or not that makes its way into something as pure and with as much sanctity as the inaugural address. This is one of those where i keep thinking about what we think is most different about him. This is a tweetfree day, then i think it would show some sort of reverence to the process. I put it that way, im not saying, listen, if he tweets its terrible. He could tweet its a great new day. But i think were beginning to think, okay, yesterday, mnuchin, those hearings went the kind of way hearings go. Maybe trump as president will be less likely to tweet about the apprentice, less likely to tweet about saturday night live. Im hoping boe in im thinkin parties are hoping it goes that way. With all the pomp and circumstance, its going to be amazing and awesome to watch, but no one is writing off the possibility that we begin to get some executive actions rolled back, the workman like quality of this transition could start to make itself known as early as this afternoon or this weekend. Yeah, carl, i mean that certainly will be begin to be the focus. I know the people we speak to so often have been wondering about and questioning will begin to be put in motion. And you mention the easiest things to do are start to reverse some of the actions that were taken under the Obama Administration through executive orders. They can be reversed. And the president elect a few more hours until hes the president , has said he would do that. Thats expected, i think, this afternoon. Nothing that may make the front page in the newspaper, jim, but it will certainly set the tone for the deregulatory approach. Right. That the Trump Administration is going to have. In that sense i thought the mnuchin hearings were a bit of a throwback saying theres going to be some deregulation but were not going to upend the entire edifice that was created in the, you know, indymac narrative. We put in through regulations and a lot of those regulations are important, not going to have banks that are provided by the fdic during a violating volcker rule. So i think people got kind of a level of, all right, its going to be passive deregulation, not dismantled. And i think that thats going to be the issue, carl. I think dismantled versus dereg is going to be the issue of what happens the next 100 days. Right. The dismantle would be radical. The dereg is what people are hoping for. So one big question is whether or not this tepid performance in the financials of late is tied to people coming around to that idea that you just expressed, that its not going to be haphazard deregulation. Right. Well, its not going to be were going to regulate the financials the same way we regulate the industrials. I think thats one of the things people are coming to grip with which is that, no, theres still going to be youre not going to get the government off the backs of the banks. What youre going to get is more transparency and more leniency. But i think youre right, one of the reasons why the banks have stalled is because the whole rhetoric about the idea of, you know, the banks should have unfettered lending. Its not part of the narrative. And i think that there were people three months ago who felt it was. Right. But you know, guys, its interesting when you look at things from the prism of an Earnings Report, for example, ge, which we got this morning. Right. Which looked okay. Not great. And the stock of which is going to be down a bit at the open it would appear given some concern about industrial profits. Power. Estimates. Power, yes, absolutely. But look at so many ways ge will be impacted by whether its a rollback of regulation or tax reform, you have to wonder certain things. For example, Renewable Energy was up 20 in their portfolio. Right. Is that going to slow as a result of the rollback of certain climate initiatives that have been undertaken by the Obama Administration . Will the focus on renewables no longer lead to growth in that area for the likes of a ge . And by the way, they may benefit certainly from the export no tax on exports, if we get tax reform the way it may be in the blueprint from house ways and means. But adjusted was 12 . Right. Theyve always been masterful at that. What i kind continue to find, people raising numbers 201. And i dont want to get too in the weeds about earnings versus whats going on where carl is. But lets just say that we are looking at trump stock versus no trump stock even more aggressively given the fact that if you can try to find companies that are high taxpayers that have been stuck in regulation, they are in the cross hairs of higher numbers for 2018. Thats what youre looking for. Yeah. Theres one in particular as you guys are talking go ahead, carl. Im sorry. Thats all right. Some shots of the crowd on the right side of your screen, people already making their way to the mall. Braving some of the rain, which is expected to be its worst around midday, but actually the forecast has been getting a little bit better as weve gone on. Eamon javers has one of the best seats you could possibly ask for. Hes live on the Capitol Steps this morning. Good morning, eamon. Good morning, carl. Boy, do you feel that we are at an Inflection Point in American History here on the west front of the capitol. Behind me is the podium where the president will take the oath of office later this afternoon the seal of the president of the United States is up behind us and it symbolizes one man this morning, it will symbolize an entirely different man later this afternoon. The military bands are here taking their position. The choirs have gotten into position just above where the president elect and the president of the United States will appear in just a couple of hours time. One of the Big Questions though you guys have been talking about regulations this morning. One of the Big Questions is what steps will President Trump take once he gets back to the Oval Office Later this afternoon . We havent been told a whole lot of detail. Were told to expect four, maybe five executive actions early on in the day today. Soon after the president takes that oath of office. But we can start by some of the things hes talked about on the campaign trail including taking steps to roll back nafta. Under the nafta treaty, there is a process to start that. We might expect to see that later today. We have a couple others including withdraws from tpp, the trade negotiation has been such a key point of the Trump Campaign. And we expect to see that happening. Thats been viewed as a dead letter here in washington for awhile. Also clearing a path for the keystone pipeline. Theyve said they want to do that and other Energy Matters we can expect maybe something on that as early as today, perhaps monday. And then theyve said theyre going to start moving immediately on replacement for justice antonin scalia, late justice of the Supreme Court. Not clear who donald trump would pick for that slot but hes put out a list in the campaign of conservative justices. He says one of those will be his pick. So all of that starting to move into action this afternoon, guys, but it all starts here on the west front of the capitol in just a few hours. Back over to you. Where we will see you very soon, eamon. Eamon javers. Jim, david, as trump tweeted today, it all begins today see you at 11 00 a. M. For the swearing in. The movement continues. The work begins. Jim, i wonder whether you think the flow of news so which the market is sensitive is going to accelerate or decelerate from the last six or ten weeks . Big time acceleration. I think eamon gave you a good list there. Nafta, anything that touches nafta could be considered to be good for people who are in the workforce if youre not looking at the later consequences of having to pay more for certain product. Viewed very negative among most ceos that have taken advantage of nafta because they thought thats what they were supposed to do. Tpp, i mean, i think there are a lot of people said that was a dead letter exactly the way eamon said. But keystone is really a metaphor. A metaphor for why you have to own the u. S. One of the things clearly happening in this country is that the Oil Companies will tell you, and i speak with probably the ceos of probably maybe a dozen Oil Companies in the last six weeks, this is where the hope is. Immediately theyre going to get relief. Immediately its going to cost less to be able to get oil out of the ground. Not unlike what schlumberger said this morning. Positive commentary about north america and the United States. Of the three i think youll see something youll get that, i also think the drug stocks acted so badly yesterday. I expected an immediate assault on the cost of health care. You do . Yes, immediate. In what fashion would that be undertaken . I think that the details will be shy. I think it will once again be somewhat like what we saw against the autos, picking on companies you think it could be a tweet storm or something along those lines . Im hoping its certainly more rigorous than that. Because you cant really do much in a few characters. But i think the drugs and the drug business and health care is in for the biggest punishment because thats where the biggest money could be saved. To jims point, carl, i think the expectations for action certainly have to be focused on what a president can do upon coming into office whether it is trade, which is typically something thats run out of the white house, and the rollbacks of some of these regulations and orders that weve discussed. Of course china comes into that trade discussion. And given people weve announced in terms of china policy and asia policy, there is an expectation that rhetoric could turn into action and not necessarily lead to a particularly good place given at least the seeming way that the administration views a zero sum game between us and china, their loss being our gain and vice versa. But the legislative actions as weve said are going to take months and months and months, right, carl . Whether its the repeal and replacement of obamacare or of course tax reform or infrastructure spending, all of these are going to be in the congress. And that certainly will not be something that today or next week we necessarily have a great deal more information on. Yeah. That is indeed the longer term story. Of course were going to help viewers understand todays impact on markets, earnings, taxes, regulation, jobs, trade as david and jim just said. Cnbc special coverage of the inauguration of donald trump continues in just a moment. When we come back, well hear from Warren Buffett who addressed the Incoming Administration last night. Back in a moment. Re erthayafrshst g hthtth ts. S terming spthkk age tiodoayti twointhm. Glalna ssentiismobiing desk cra atrer u wi ssyn dee rkiodoayti twointhm. Glalna pl ad Warren Buffett talking about the Incoming Administration last night. Cnbc caught up with him at the new york city premiere of a new documentary called becoming Warren Buffett. Certainly he has the most important job in the world, but america works. And it will work and ive said this before. It will work wonderfully under Hillary Clinton. I think it will work fine under donald trump. I mean, weve got the secret sauce. And it doesnt work all the time perfectly. But you just look at where we go milestone after milestone and never bet against america. I have no idea what the stock markets going to do in the next year. I know it will be a lot higher ten years from now and 20 years from now. I try to do things i know how to do. Interesting. Of course they got a deal this morning with aig, berkshire, big holder of ibm which also reported great numbers. They have a great portfolio for trump. Do they . Big pipeline, big locomotive. Right. Those are fabulous businesses. A lot of kind of per se infrastructure that they do. It wasnt set up for trump. It was set up for america and growth. But it just so happens to dovetail far more, i think, with trump than with hillary although the Insurance Business is a Good Business no matter what. I always feel that a lot of his comments are steeped in the long tradition of businesses that do well kind of no matter what. No matter what. He created a secular grower based on the idea of progress, the country would continue to be on a path of progress. And thats why i think he can be so sanguine at all times because its based on progress, not based on technology that can be outmoded. The only bet being ibm. Yep. Yep. And, carl, of course berkshire had a good year last year. And weve haeshd heard the refrain before from mr. Buffett, i dont know about next year but i know the next ten years are going to be better than the last. Yes. He is nothing if not consistent, guys. And considering how hard he worked for the clinton campaign, its interesting he sort of he could be used as a proxy for bringing two sides together especially on a day like today when were reflecting on all the division during the campaign. Theres certainly a lot of enthusiasm here among business leaders, the aid aiddd lsons a bob crafts, but how much of these businesses he has in mind intended fo benefit all americans. I think its going to come back to hiring. The most consistent theme since hes been elected is i am about trying to create jobs in hiring. So anybody who is on board, its very interesting. There was a piece yesterday by morgan stanley, again not to get too granular, about how maybe the ultimate trump stock is tesla. Tesla is 25,000 workers here, they build all their cars here, elon musk has a very Good Relationship with trump, according to the piece. So you start thinking, well, what trump is standing for is we are going to keep and create jobs, the keep is controversial, the create is not. The create involves deregulation, create involves more lening, create involves bringing more money back. So it actually is in many ways its simple. Which is different from simplistic. Its simple. And i think its resonating with a lot of people even if you think it might not be able to be doable overnight. Interesting. You know, its funny, guys. The Obama Administration, looking at a story here, i dont know if you saw it, the most he said the most scary moment he ever had in his presidency was when he thought there was the possibility of the Government Shutdown and defaulting on the debt. Really . Its just interesting that of all the things in the Obama Administration over the last year it was an economic issue that was the scariest one to him. And there i am thinking the one thing im not worried about is that the president has complete control of it. Fooled me. They were going to mint a coin worth 1 trillion, carl, to pay off a portion of the debt if in fact we defaulted. Of course we didnt. Looking back at some of the events weve had over the last few years certainly we were too proud. And the division of course taken place in the houses of congress we were just looking at. Right. I think one thing thats going to be made more and more clear today but especially leading into the weekend and monday is sort of the corporate efficiency veneer of the campaign, of the transition and now the administration, guys, as mike pence said yesterday, even saving a Million Dollars in transition funds and returning that to the treasury, i think to the administration is a symbol of how theyre not going to let pennies fall into the couch. Does that make sense . Well, i would say that the work that hes doing to try to bring down our joint fighter is actually not pennies. I mean, its kind of impressive. And said drugs are next. The government has historically not negotiated great contracts, i believe, with our trading partners. But more importantly not negotiated great contracts with american business. And that seems to be over. I think the idea that you can roll the government as he views it, is not going to happen anymore. Now, Lockheed Martin i felt made a very good made a good living off the jet fighter. And i think that what hes saying is wall streets not understanding is the Gross Margins are too high from some of these companies we deal with. Too high from drug companies. Hes not using that language because hes using much more basic, look, theyre making too much money. But hes going to squeeze Gross Margins out of business and we have to focus on that. Lockheed martin is actually unchanged pretty much during this period. But again, thats whats going to happen. Carl, while you were t