investment fund led by warren buffett will inject $5 billion into bank of america to boost the health of the largest u.s. commercial bank. beshg shaw hathaway made the announcement thursday. bank of america has seen its stock price plunge 28% this month due to mounting losses on home mortgagees as the u.s. economy remains sluggish. concerns over the impact of worsening financial health at european banks are also weighing on the stock price. focus is whether the investment in bank of america will be enough to ease worries over the financial systems in the u.s. and europe. >> let's check on the markets here in tokyo. the dow jones declined after three days of gains ahead of a key speech by federal reserve chairman later today in jackson hole, wyoming. we are going to cross over now to the tokyo stock exchange to see how stocks are changing this friday morning. good morning. we had consumer prices out for japan. how are markets reacting? >> good morning to you, ai. showing consumer price index in july excluding fresh food was up 0.1% from a year earlier. both indexes, nikkei and topix in

prime minister david cameron sought to reassure the public and warren buffett is that the authorities would get top. >> you will feel the full force of the law, and if you are old enough to commit these crimes, you are old enough to face the punishments. to these people, i would say this -- you are not only wrecking the lives of others. you are not only wrecking your own communities. you are potentially wrecking your own life, too. >> in london, volunteers are reviving the tradition of standing together and helping one another in defiance of mindless violence against their city. that let's get an update on the situation. for that, i'm joined on the line by kitty logan, standing by in london. what is the latest? is the violence continuing there? >> it is indeed. many of the additional police forces were brought down to london from regions across the u.k., and now, the looters and writers have turned their attention to those areas where there is perhaps a weaker police presence. we are seeing in manchester the scenes of many scuffle's there. there have been a couple of fires breaking ou

. >>> warren buffett will invest in bank of america. buffett made $280 million. >>> let's talk hurricane irene. analysts talking about damage estimates in the tens of billions of dollars. it's already been a rough year for the insurance agency and with hurricane season just getting started it looks like it will guess worse. many oil refineries on the east coast will close before the storm hits. once the storm passes it will take several days for the refineries to get back up and running. they'll need almost a month to get back up to full operations. >>> air travel taking a hit as well. many airlines are issuing waivers allowing passengers to change their travel plans without penalty. travel between the east coast and the caribbean are suspended. amtrak canceled service south of washington at least through sunday. trains operating along the northeast corridor are moving at reduced speeds. >> terrell brown here in new york thank you for that live report. we bump, and bromance, a close non-sexual relationship between men. >>> in sports, sl

if you look at the warren buffett plan does that get from suze an approval or deny? >> it gets an approved. if you watched me recently or even over the past year or two i was absolutely against president obama wanted to raise taxes on anybody for $250,000 or more. because you can be in new york city make $250,000 and you don't have enough money to pay your bills, believe it or not. but once it gets to the tune of $1 million or $10 million a year, i'd be more than happy to pay extra money in taxes if it solved the problem. because it's true, john, you know, you look around and when you're making a few million dollars a year, our lives haven't been affected, but everybody around us has, so would a difference of $50,000 or $100,000 from me in more taxes make a difference? no, not to my lifestyle, but if it would help the economy, i think every one of us should do that and i don't have a problem with that. >> as always, appreciate the frank and very blunt and some sober advice from suze orman. thank you for coming in. >> any time. >> thank you, my friend. >>> next, chris

here's bachmann. >> we also believe unlike warren buffett, that taxes are high enough already. now, the president's friend, warren buffett, just came out and said, all the billionaires should be paying more money. i have a suggestion. mr. buff ett, write a big check today. there's nothing you have to wait for. >> so there she was. michele bachmann in south carolina, here's rick perry. governor perry in iowa. you know, as we've told you, rick perry talks about god, he talks about jobs and he talks about the federal government. in particular, federal regulations. many of which he doesn't like. here's rick perry. >> what this country needs is jobs. they don't need symbolism. we need new jobs. we don't need new federal agencies. if you want to create jobs, don't create a new agency. solve all the unnecessary regulations that these agencies are already implementing and, frankly, out of control in some places. market the confidence that -- i think we should go into a six-month freeze of all federal regulations, new federal regulations. get the epa and the department of labor out of t

but warren buffett disappears. he said you know what, it's all about being fair. >> poppy, i've been waiting for this list. what are some of the best towns. >> the third one on the list, third from the top is solon, ohio. a small town but big tax base. nestle, l'oreal, about 8% unemployme unemployment, better than the national average. milton, massachusetts, right outside of boston. 6.6% unemployment. far below the national average. big focus there is home prices. across this country, the only down side really according to money magazine is the high taxes, of course. >> and number two is? >> louisville, i've never been there. lots of high tech, mountain biking, hiking. right outside of boulder. again home price, not hit in the housing crisis, and they've got some of the lowest crime rates in all of colorado. so louisville, colorado. if you haven't been there, check it out. the number one small town to live in. we've got it all on the home page. >> >> solon, ohio. you know how hersey, p.a. smells like chocolate? >>

and we saw that validated by warren buffett in his bank of america deal. so our view is this is a washed-out sector. it's time to be nibbling at it, raising rates, do it broadly. >> tom: and you're doing that with real estate and with banks, and the banks idea is regional banks, kre is the ticker symbol for this exchange-traded fund, what gives you confidence that the bottom is in for the regional banks? >> well, the valuation of banks, regional and the big banks, there are questions. this is not a clear-cut situation. it is a problematic situation. and so you say to yourself, if they are beaten down for four years, if the auditors have taken the notes, if they've built in reserves for bad loans, all the things that have been going on for a year, writeoffs, capital, we know the story. then you have to say, can i start to believe these numbers, because there isn't an auditor in their right mind who would fudge a number today. they'd get murdered. so you can begin to think of these things as maybe over reserved, not underreserved. >> think all the worries ar

. >>> republican presidential front runner mitt romney is taking warren buffett to tax for saying taxes need to be higher. he says the ceo is not straightforward with his comments. he said he paid a lower interest rate than his employees. romney says buffett didn't take into account the corporate taxes the company pays. >>> dump the junk. san jose is fighting waste one mailbox at a time. they're teaming up with catalog choice. it helps rid the mailbox of catalogs and the other junk mails you get. it is a free online service that contacts any company you designate and has them remove you from their mailing list. san jose has one of the highest recycling rates in the nation at 62%. but the city says this partnership will kick it up a notch. >> what we've seen when we've done this with cities, we get between three to five times more participation in the city. we're seeing more when we do a sponsorship with the city. >> this partnership is part of the zero waste initiative. >>> groups advocate for the poor, sick, and elderly called for a boycott of the retailer until they begin collecting s

particularly when talking about taxing -- nobody wants to talk about raising taxes, but even warren buffett this week raised that and got a tremendous amount of publicity. >> belva: we're hearing at least from the local progressive democrats. >> right. right. >> belva: rachel gordon, this week hackers broke into confidential information from b.a.r.t. yet again. personal information about their officers. where is this whole problem going? >> this whole issue is really a debate between at this point between free speech and public safety. that's how b.a.r.t. is casting it. we have to look back a little bit of what happened. it was last week when b.a.r.t., which is the regional rail service, 350,000 boardings a day. 4 counties. b.a.r.t. decided because there was anticipated protest to shut off cell phone service, texting ability in the downtown stations? san francisco. they said this was the way organizers protest. i mean, protesters organize. i'm sorry. is to go and say, we're here, we're here, go to this way to get people moving. we've seen that happening not just here but across the world re

buffett announced his stake. b. of a.'s latest move to raise money was today's agreement to sell half its stake in china construction bank. b. of a. will make more than $3 billion from that sale while still owning 5% of the china bank. since buffett announced his investment thursday, bank of america has added $11 billion to its market value. fellow dow component travelers shows just how strong property casualty insurance stocks were during the first trading day since hurricane irene. travelers jumped more than 5% as insured losses from the storm are expected to be less than feared. shares of travelers are above where they started last week as irene was gathering strength. hartford group led the broader financial sector, gaining 13%. while overall volume was lighter today, hartford saw heavier- than-average trading. allstate gained 8.5% and tower group, which has a big exposure to the new york area, rebounded almost 7%. each of these stocks sold off late last week as irene approached the northeast. drug giant pfiz

warren buffett holds stock in a lot of companies, wells fargo, u.s. bank corp. he invested $5 billion in goldman sachs in the middle of the financial crisis. this is a big boost for bank of america. you'll want to watch the market in nooine minutes when it opens. shares of bank of america are trading up 25% on that news. >> all right, poppy harlow, thanks. >>> next hour we'll take a closer look at the state of steve jobs' health with our dr. sanjay gupta. he'll tell us what he thinks jobs' next steps might be. >>> also just ahead, the news that could impact apple's stock and what will it do to the markets overall? we're watching the numbers. the opening bell moments away. wg and my itchy eyes took refuge from the dust in here and the pollen outside. but with 24-hour zyrtec®, i get prescription strength relief from my worst allergy symptoms. it's the brand allergists recommend most. ♪ lily and i are back on the road again. where we belong. with zyrtec®, i can love the air®. if you don't have airplay.e, where we belong. which makes it easy to play music from

for every one warren buffett, there is tens of millions of people maybe like myself that don't necessarily have a steel spine. but if you set a strategy in place and you're following it for the long-term, you can let periods like this wash on past and still feel confident. >> you know, it's really interesting. this week we had some good data on insiders. and apparently insider buying is up. executives at s&p 500 companies buying their own company's stock at a greater rate than any time since the depth of the financial crisis. what do you think that tells you? >> well, you would like to think that those on the inside know best about the future prospect of their companies. now there is always some examples that you can show otherwise. but in general, i think when insiders are buying with the information that they have, that that's a good sign for investors for the long-term. i don't think it's a call for any short-term movement. but for the long-term, probably a positive. >> all right. we will leave it there. walt, good to have you on the program. we so appreciate your time today. >> maria,

buffett says you take something from. on the earth you dig it up and all of a sudden you put dollars into it and you have to get your money back. from selling the goal itself doesn't make sense to me if things were to get that bad to where you have to put your money in gold i don't think the u.s. government would allow. go to on the mind the currency so is there a chance that we could go back to a system of bartering or more local kind of exchanges of all things so right now we live in a less. well there's the there would be my view and that's what is there was the money though that war is the worse things than the end here with what's going on with the economy i think so no matter where you keep your money these days the bottom line is no place will ever be completely inviolate. twenty years ago history was in the making on the streets of moscow then the city was under military curfew on the second day of an attempt to overthrow me while got a bunch of then president of the soviet union party's dumbarton looks back at th

buffett has just been fined two percent of one year's proppants for laundering three hundred seventy eight billion dollars in drug money for the mexican drug cartels what about the settlement isn't an adequate deterrent first of all you know absolutely none if you're if your business model is ended on attracting those revenues and processing those revenues there's no way a fine like this can be had to turn to something you know is something is part of what i do an essential part of the business model of a sign like this would stop it ok let's talk about the proportion of these banks first of all the banks in the u.s. and in the u.k. because i want to kind of talk about the u.k. a little bit the g.d.p. numbers that are quoted in both of these economies as their relationship to what comes out of the banking sector has grown fantastically over the past twenty five years and over the past ten years in particular from five or six percent twenty five years ago to twenty five thirty forty depending on how you make the calculation fifty percent sixty. g.d.p. directly tied to financial leisur

sure this seems reasonable i mean why should billionaire warren buffett collect an eleven hundred dollars on social security check why should billionaire charles koch get medicare thus the means and means testing if somebody has the means to pay for their own retirement or health care then they are eligible to get a social security or medicare system it sounds as i said so very reasonable especially with so much stress already on the system because when bush added medicare part d. he forbid the government from negotiating drug prices so medicare is painful retail for millions of pills but the v.a. the veterans administration for example could buy it wholesale for pennies on the dollar so the average person. looks at businesses you know means testing seems to make sense but in reality needs testing is the poison pill that will kill off social security and medicare as we know it and that's why these guys are pushing it sir. why will it kill it off because once you means test these critical programs as in only give benefits to people who have who actually need them don't have the means then

. >> pelley: warren buffett is putting his money in the bank. the billionaire investor said today he will invest $5 billion in bank of america. it is a high profile vote of confidence for america's biggest bank as bank of america struggles with its portfolio of bad real estate loans. that real estate mess still has a grip on the economy and we saw it again today in a new report that says nearly one out of every three home sales in the second quarter of this year was a foreclosure. one out of three. elaine quijano tells us some are blaming the mortgage giant fannie mae, the nation's largest owner of foreclosed homes. >> reporter: the mount pleasant neighborhood of cleveland is anything but pleasant these days. >> it's scary. i mean, this neighborhood's at a tipping point. >> reporter: mark seiffert is a housing activist. he says his fight to reduce foreclosures is being made harder by fannie mae, the government-backed mortgage giant. >> this is a house that fanny acquired about seven months ago for a whopping $5,000. that's about a third of what

. >> reporter: it's an approach endorsed by a new book called "warren buffett invests like a girl," claiming women survive better in the market by trading less. make unemotional stock decisions, and pick stable investments, not trendy. >> they think frankly they know more than they do and this can lead them to make some pretty bad choices. >> reporter: women do more research and hold on to stocks longer. >> this is a great time to come out and look for stocks that are on sale. >> reporter: a more feminine portfolio that avoids testosterone-based snap decisions may be the way to stay safe in the long run. jim avila, abc news, new york. >>> now to that breaking news on the american airlines flight which was forced to make an emergency landing in charleston, south carolina. 152 passengers and 6 crew members were on board when the flight from miami to washington was forced to the ground by severe turbulence. abc's jim sciutto is in washington now with the latest. i know, jim, the story is still developing, but what do we know right now? >> well, george, what we know is this was turbulence seriou

but warren buffett, one of the richest men on earth said, there's a class war going on and my class is winning and i think mr. buffett is right. >> paul, your southern accent has gotten more southern over the course of this interview. >> it's from the e-mail from willie nelson. >>> still around, coming up, kentucky's junior senator, rand paul, plans to vote "no." why he's not willing to compromise on the debt ceiling. he said he's willing to compromise. we'll figure it out. >>> and a moment everyone, no matter which party could embrace, congressman gabby giffords to cast her vote. debbie wasserman schultz joins us with a behind-the-scenes look. memories, or getting lost in a good book. we'll always cook dinner, and cheer for our favorite team. we'll still go to meetings, make home movies, and learn new things. but how we do all this, will never be the same. and today, we're re-inventing aspirin for pain relief. with new extra-strength bayer advanced aspirin. it has microparticles so it enters the bloodstream faster and rushes relief right to the site of your tough pain. ♪ in fact, it

buffett says you take something from. under the or you dig it up and all the sudden you put dollars into it and you have to get your money back out from selling the gold so it doesn't make sense to me if things were to get that bad so really you have to put your money in gold i don't think the u.s. government would allow. gold to undermine the currency so is there a chance that we could go back to a system of artery more and more local kind of exchanges of all things so right now we live in an. the guys who were there. with these there was the money that more is the more things kind of and here with what's going on with the economy i think so no matter where you keep your money these days the bottom line is no place will ever be completely in private hands. well it is now less than twenty four hours before this year's international airshow closes in the moscow region but the actions that showing no sign of waning russia's newest fighter jet still classified two hundred fifty prototype has been the main headliner of the ev

buffett says you take something from. on the you're. to get up an older certainly put dollars into it and you have to get your money back. from selling your gold so it doesn't make sense to me if things were to get to where you have to put your money in gold i don't think the u.s. government would allow. gold to undermine the currency is there a chance that we could go back to a system of artery or more local kind of exchanges oh i don't think so right now we're living in the last days of gaza where there's the. money and that's what is that was the money so that aristide was being signs of it and here with what's going on with the economy i think still no matter where you keep your money these days the bottom line is no place will ever be completely. hamas has announced its pulling out from a de facto cease fire with israel the statement comes after two days of israeli air strikes on gaza more than a dozen palestinians have been killed in the strikes reportedly including children israel began a campaign following a serie

in an opinion piece in the "new york times," billionaire investor warren buffett told congress it must increase taxes on people earning more than a million dollars. "my friends and i have been coddled long enough by a billionaire-friendly congress. it's time for our government to get serious about shared sacrifice." the chairman of starbucks took his concerns a step further. he called for a boycott on campaign donations to incumbents in washington until the president and the congress find agreement on the deficit. in an e-mail to c.e.o.s, howard schultz wrote "the government needs discipline; the people need jobs, and leaders need to lead. our country is better than this." schultz grew starbucks into the world's largest coffee house, with 11,000 stores and 135,000 employees in america alone. i asked him today how he came up with the idea of boycotting campaign contributions. >> as a result of what we all witnessed with the debt ceiling crisis and the uncertain any the markets, i just feel like watching what took place in washington, the lens in which the leaders in washington, d.c. wer

but warren buffett, one of the richest men on earth said, there's a class war going on and my class is winning and i think paul is right. >> paul, your southern accent has gotten more southern over the course of this interview. >> it's from the e-mail from willie nelson. >>> still around, coming up, kentucky's junior senator, rand paul, plans to vote "no." why he's not willing to compromise on the debt ceiling. he said he's willing to compromise. we'll figure it out. >>> and a moment everyone, no matter which party could embrace, congressman gabby giffords to cast her vote. debbie wasserman schultz joins us with a behind-the-scenes look. >>> more on tonight's breaking news on the debt deal. the latest, the house voted to pass the agreement reached yesterday by president obama congressional leaders. final vote, 269-161. liberal democrats for the most part and tea party republicans joining in opposition. house majority liter eric canter downplayed this. >> i feel like we accomplished a lot by passing that bill. it is the beginning of a process but we'll change it. it also, i think, sends

but warren buffett, one of the richest men on earth said, there's a class war going on and my class is winning and i think paul is right. >> paul, your southern accent has gotten more southern over the course of this interview. >> it's from the e-mail from willie nelson. >>> still around, coming up, kentucky's junior senator, rand paul, plans to vote "no." why he's not willing to compromise on the debt ceiling. he said he's willing to compromise. we'll figure it out. >>> and a moment everyone, no matter which party could embrace, congressman gabby giffords to cast her vote. debbie wasserman schultz joins us with a behind-the-scenes look. ♪ [ male announcer ] every day, thousands of people are choosing advil. here's one story. my name is lacey calvert and i train professional athletes with yoga. i know how my body should feel. if i have any soreness, i'm not going to be able to do my job. but once i take advil, i'm able to finish my day and finish out strong. then when i do try other things, i always find myself going back to advil. it really works! [ laughs ] [ male announcer ] make

buffett says you take something from. under the earth. and all the sudden you put dollars into it and you have to get your money back out from selling the gold so it doesn't make sense to me if things were to get to where you have to put your money in gold i don't think the u.s. government would allow. go to on the mind the currency so is there a chance that we could go back to a system of artery or more local kind of exchanges of all things so right now we live in a new. where there. were these that was the money those that were is being with things going to the ends here with what's going on with the economy i think still the matter where you keep your money these days the bottom line is no place will ever be completely in violence. there are thirty one from moscow it's thirteen minutes past the hour coming up the sky's the limit. it's the two thousand and eleven a much air show just outside of moscow here with me rule receiver on t.v. it's really heating up out here high flying. jets putting massive g. forces i don't w

buffett says you take something from. under your. dollars. you have to get your money back out from selling the gold so doesn't make sense to me if things were bad where you have to put your money and go i don't think the u.s. government would allow. both on the mind the currency if your chance that we could go back to the time of barter or more like all kind of exchanges. so right now we live in the last days of gaza with less. money and that would be if that was the money so that aristide we're seeing signs of the end here with what's going on with the economy i think so no matter where you keep your money these days the bottom line is no place will ever be completely. and i says announce it's no longer committed to a cease fire with israel the statement comes as the jewish state continues to retaliate with ass strikes on the gaza strip for a second day more than a dozen palestinians have been killed in the strikes began its campaign following an alleged terrorist attack that killed eight israelis on thursday popular re

buffett says you take something from. under the earth you dig it up and all the sudden you put dollars into it and you have to get your money back. from selling the gold so it doesn't make sense to me if things were to get that bad to where you have to put your money in gold i don't think the u.s. . go to. the currency is there a chance that we could go back to. all kind of exchanges. with these that was the money that aristide was being signed here with what's going on with the economy. where you keep your money these days the bottom line is no place will ever be completely. no longer committed to a cease fire with israel the statement comes as the jewish state continues to retaliate with strikes on the gaza strip for a second day more than a dozen palestinians have been killed in the strikes began its campaign following a terrorist attack that killed eight israelis on thursday popular resistance committees based in the gaza strip were blamed for the original incidents following friday's airstrikes palestinian militants

the other big news, warren buffett to invest $5 billion in bank of america. that stock up 14%. apple stock down 2% after the news about steve jobs, actually down 1 1/2% and gold is down 2 1/2% at $1712 an ounce. the dow down 130. s&p down 11. >>> the strike by verizon workers boosted those filing for unemployment the applications rose to 417,000, up 5,000 from the week before. 80 filed for unemployment been fits. >>> he is one of the great innovatetors of all times. now steve jobs is walking away from his day-to-day duties at apple. pam cook has a look back at his ground break career. >> reporter: steve jobs created the legacy, who swore by mac since it was introduced. that commercial probably had something to do with apple and the company being looked at as a cult. that commercial then turned into what is now macworld. his presentations have been nothing short of an entrance of a rock star. most software were written for pc's. it wasn't until jobs introduced the new ipod that apple started moving into mainstream. two years later the format changed computers and music for ever.

that is what warren buffett said. he pointed out he pays a lower tax rates than anybody in his office, including a secretary. he figured out that his tax bill, he paid about 17%. most of his wealth comes from capital gains. you do not get those tax breaks. you are paying more than that. i may be wrong, but i think you are a little less wealthy than warren buffett. that is just a guess. the point is, if we're willing to do something in a balanced way, making some tough choices in terms of spending cuts, the ratings and revenues for folks to have done very well even in a tough economy, we could get control of our debt and deficit and we could invest in things like education and basic research and infrastructure. [applause] it is not that complicated. it does require everybody being willing to make some compromises. i was in michigan the other day. i do not know about how things work in your house, but in my house, if i said, we have to cut back. you stoppedto have shopping completely. you cannot buy shoes, dresses. i am

warren buffett announced that he will be investing $5 billion and bank of america. steve jobs has announced his resignation from couple. stocks were down $20 a share during after hours trading but has rebounded. there was a spike of a number of publications last week. ford and 17,000 americans filed for unemployment benefits for the first time last week. that was the highest level in five weeks. that was skewed by the thousands of verizon wireless workers that or on strike. >> a new poll showing americans outlook on the economy has dimmed. confidence in president obamas handling of the economy has slipped as well although many blame george w. bush. nearly half a survey say that president obama should get a second term. this morning, there is a two million-dollar bounty on the head of muammar gaddafi. italy will be releasing over $5 million in libyan assets that have been frozen. the libyan opposition says they urgently need at least 5 billion in frozen at libyan assets to pay state salaries and maintain services as well as repair oil facilities. here is a live look