Paramount cuts costs, SoftBank sells its Nvidia stake, Buffett's letter and more in Morning Squawk

Investors are starting their day on a positive note following the Senate's approval of a deal that may avert a government shutdown. All three major stock indexes experienced a significant rebound in Monday's trading session after facing notable declines last week. In a major financial shift, SoftBank announced on Tuesday its decision to sell its entire stake in Nvidia for a staggering $5.83 billion. This move has led to a nearly 2% dip in Nvidia's shares during premarket trading. SoftBank is now turning its focus toward OpenAI, the artificial intelligence startup known for developing ChatGPT. Nevertheless, the investment firm maintains connections with Nvidia through various AI projects that utilize the chipmaker's technology, including the Stargate initiative. Additionally, SoftBank partially divested from its T-Mobile holdings, bringing in $9.17 billion. Meanwhile, Paramount Skydance revealed its intentions to implement further cost reductions, including employee layoffs and price hikes. Following the announcement, shares climbed as much as 5% in after-hours trading. The CBS parent company aims to cut an extra $1 billion from its operations, building on the $2 billion in savings it previously outlined post-merger completion in August. This latest restructuring will see approximately 1,600 employees affected due to the divestiture of parts of its South American business, and Paramount plans to increase prices for its Paramount+ streaming service starting in the first quarter of 2026. Air travel is feeling the strain as the ongoing government shutdown impacts airport operations. Reports indicate that over 6% of U.S. flights were cancelled yesterday, according to data from Cirium. Air traffic controllers, who are deemed essential workers during the shutdown, missed their second paycheck recently. In response, former President Trump has suggested a $10,000 bonus for controllers who remain on the job, while also threatening pay cuts for those who take leave. In the private aviation sector, demand for flights has surged, according to Flexjet's global CEO, Andrew Collins. However, the Federal Aviation Administration has responded to staffing issues by limiting private flights at 12 major U.S. airports. In other news, Berkshire Hathaway CEO Warren Buffett has announced plans to accelerate the distribution of his $149 billion fortune to his children's foundations. However, he intends to retain a substantial amount of Class A shares to bolster confidence in his successor, Greg Abel, who is set to take over as CEO next year. Buffett expressed optimism that shareholders will quickly adapt to Abel's leadership, and he revealed that his annual letter will become a Thanksgiving tradition, with Abel assuming the responsibility of writing future shareholder communications. Additionally, the U.S. is currently facing a shortage of commercial explosive TNT, which CNBC's Macklin Fishman notes could lead to increased prices for everyday products. This edition of CNBC's Morning Squawk encapsulates the essential updates investors should be aware of before the market opens each weekday.