CCTV Script 06/03/13
This is the script of CNBC's news report for China's CCTV on March 5, Tuesday.
"Welcome to CNBC business daily.
U.S. stocks close near a whisker of all-time highs.
Investors are treading with caution as the sequestration cuts play out in the economy.
Meantime, billionaire investor Warren Buffett says that he believes the economy won't take a major hit from the cuts and that there's still a lot of stimulus out there.
As he tells CNBC's Becky Quick, a budget deal will get done, but right now it's not being carried out in the best way.
[Sound on tape by Warren Buffett, Chairman & CEO, Berkshire Hathaway: It's a very dumb way of attacking a serious problem. The problem is particularly serious, if you think about it, you have people on both sides, rushing to television cameras on Sundays and other days, to lock in positions and to say: "I won't do anything but this."
If you had a labor negotiation, and you have a number of people on management side, going on television, saying: "I won't budge an inch from this", and while a bunch of people from labor going: "I won't budge an inch from this" - that does not set the stage for negotiations.
On top of that, if you have somebody negotiating from management, say me, and one labor union leader out there and I negotiate with him and finally we get in private instead of on television and then he can't go back to his membership and get his positions ratified.
You couldn't negotiate under more difficult conditions. And I think there's strong evidence that one or perhaps even both parties, but certainly one party, is in a position where you can't make a deal in private that you know is going to get ratified by the membership.]
The Oracle of Omaha also sounded a dire warning about the end of quantitative easing.
Have a listen.
[Sound on tape by Warren Buffett, Chairman & CEO, Berkshire Hathaway: When you start selling, at that point you, start sopping up reserves. That's a much different action than buying. You saw just the whiff, about 2-3 weeks ago, just the whiff of the fact that they might, start tightening up.
All over the world, everybody that manages money is waiting to catch the signal that the Fed will reverse course. And I think they're on a hair trigger. I think the Fed will try to give little signals here and all of that, but in the end, there will be an awful lot of people who want to get out of a lot of assets if they think Fed is going to tighten a lot.
And we've never quite had, at least in my knowledge, we've never had the degree of disgorgement that might be called for down the line and who knows how it will play out, but it will be noticeable. I'll put it that way.
Becky Quick: Have you done anything at Berkshire to prepare for that?
It's interesting Becky, nobody believes this but Charlie Monger and I have been buying stocks and business for 50 years. In that entire time, we've never had a discussion on macro-economic factors, in making a decision as to whether or not to buy or sell a business or buy or sell securities. It just doesn't get into our consideration.
If I were buying a farm, I would not be thinking about what the Fed was going to do. If I were buying an apartment house, if I were buying a business outright I wouldn't. So when I buy a piece of a wonderful business - say Coca-Cola or American Express - it is not a matter of consideration. Charlie and I will talk about the business, we will not get into discussions about the Fed or Goverment.]
Li Sixuan, from CNBC's Asia headquarters."