Latest News
-
Berkshire increases investments in Japanese trading companies
Warren Buffett announced on Saturday that Berkshire Hathaway, the conglomerate he leads, will likely increase Berkshire Hathaway's ownership of its five Japanese trading companies. In his letter to Berkshire shareholders each year, the billionaire investor stated that Itochu Marubeni Mitsubishi Mitsui Sumitomo and Sumitomo had agreed to "moderately" relax limits which limited Berkshire's stakes to below 10%. Berkshire’s investment in these companies will total $23.5 billion by the year 2024. Buffett wrote that Berkshire's holdings in all five companies will increase over time. Buffett, who is 94 years old, said that he and Berkshire Vice-Chairman Greg Abel, the Berkshire CEO he has designated as his successor, invest for a "very long-term." Buffett wrote: "I expect Greg and his successors to hold this Japanese position for decades, and Berkshire will work with the five companies in other productive ways." Buffett said that he and his partner liked their capital allocation, their managements, and their attitude towards their investors. Japanese trading houses, also known as "sogo-shosha," trade in many different materials, food and products. They often act as intermediaries and provide logistical assistance. The real economy is also a major concern for them, including commodities, shipping, and steel. Berkshire started investing in trading houses in 2019 due to their financial strength compared with their low stock price, and revealed their 5% ownership stakes at Buffett's 90th Birthday in August 2020. Buffett avoids businesses that he doesn't understand. He told Nikkei that in 2023, the trading houses were "really similar to Berkshire," a conglomerate with headquarters in Omaha, Nebraska which he led since 1965. Buffett stated in his shareholder letter that Berkshire has spent $13.8 billion in its current holdings, and it expects to receive $812 million in dividend income by 2025. "This was a great investment, when other people may have seen them as value traps," Cathy Seifert said. CFRA Research analyst Cathy Seifert rates Berkshire a 'hold. She said Buffett’s comments showed Berkshire had a positive relationship with trading houses. Berkshire also issued fixed rate, yen denominated bonds. Buffett, however, said that the company seeks to be "currency-neutral" and does not have a view on currency changes in the future. The conglomerate on Saturday reported $1.15 billion of foreign currency gains after taxes in 2024 from non-dollar-denominated senior debt. Reporting by Jonathan Stempel in New York, writing by Carolina Mandl in New York, editing by Rod Nickel
-
Draft shows EU will reduce sustainability rules for businesses
A draft document obtained by revealed that the European Commission intends to reduce the number of businesses subject to EU sustainability reporting obligations as part of its efforts to reduce red tape. Brussels will publish next week a "omnibus proposal" to simplify green regulations for businesses. The aim is to make local industries competitive and to respond to U.S. president Donald Trump's pledge to abolish regulations. Spain and Germany, among others, have called for the European Union to weaken the rules on green reporting. The Commission's partial draft proposals for the future, seen on Saturday by the media, revealed that it is planning to make changes to the EU Corporate Sustainability Reporting Directive, which requires companies disclose information about their social and environmental sustainability. According to the proposed rules, which may still be changed before publication, only those companies with over 1,000 employees and net revenues exceeding 450 millions euros ($471million) will be required to comply. The rules currently apply to companies with over 250 employees and 40 million euros in turnover. According to the draft, the EU will also abandon its plans to adopt industry-specific reporting standards before next June. The document also detailed the plans to delay EU's Due Diligence Law - CSDDD, which aims at ensuring companies find and fix environmental and human rights issues in their supply chain by imposing due-diligence requirements on large companies. The draft proposal would only require companies to conduct in-depth evaluations of their direct business partners and subsidiaries and leave out all other subcontractors or suppliers in their supply chain.
-
Berkshire increases investments in Japanese trading companies
Warren Buffett announced on Saturday that Berkshire Hathaway, the conglomerate he founded, will likely increase Berkshire's ownership of five Japanese trading companies it owns. In his annual Berkshire shareholder letter, the billionaire investor stated that Itochu Marubeni Mitsubishi Mitsui Sumitomo and Mitsui agreed to "moderately loosen" limits on Berkshire's equity stakes. Berkshire’s investment in these companies will total $23.5 billion by the year 2024. Buffett wrote that Berkshire's holdings in all five companies will increase over time. Buffett, who is 94 years old, said that he and Berkshire Vice-Chairman Greg Abel, the Berkshire CEO he has designated as his successor, invest for a "very long-term." Buffett wrote: "I expect Greg and his successors to hold this Japanese position for decades, and Berkshire will work with the five companies in other productive ways." Japanese trading houses, also known as "sogo-shosha," trade in many different materials, food and products. They often act as intermediaries and provide logistical assistance. The real economy is also heavily involved, including commodities, shipping and the steel industry. Berkshire started investing in trading houses in 2019 due to their financial strength compared with their low stock price, and revealed their 5% ownership stakes at Buffett's 90th Birthday in August 2020. Buffett avoids businesses that he doesn't understand. In 2023, Buffett told Nikkei that trading houses were "really similar" to Berkshire, the Omaha-based conglomerate which he led since 1965. Buffett stated in his shareholder letter that Berkshire has spent $13.8 billion in its current holdings, and it expects to receive $812 million in dividend income by 2025. "This was a great investment, when others might have seen them as value traps," Cathy Seifert said. CFRA Research analyst Cathy Seifert rates Berkshire a 'hold. She said Buffett’s comments showed Berkshire had a positive relationship with trading houses. Berkshire also issued fixed rate, yen denominated bonds. Buffett, however, said that the company seeks to be "currency-neutral" and does not have a view on currency changes in the future. The conglomerate reported on Saturday that it will have $1.15 billion in foreign currency gains, after taxes, by 2024. (Reporting and writing by Jonathan Stempel in New York, Carolina Mandl in New York, editing by Rod Nickel).
-
Warren Buffett warns Washington after Berkshire announces record profits and cash
Berkshire Hathaway reported record profits on Saturday, even as it increased its cash stake from $334.2 billion to $334.2 trillion. Warren Buffett warned Washington in his annual shareholder letter that they should spend their money "wisely," and to take care of people who "get the short straws in life." In the letter, Buffett, who is 94 years old and arguably the most famous investor in the world, acknowledged his age, telling shareholders that he uses a cane now and will spend less of his time answering their questions at Berkshire’s annual meeting, which takes place in May. Abel's ability to manage capital has been "vividly demonstrated" by the 62-year old Abel. Berkshire reported its annual report along with Buffett's note, which showed a record operating profit of $47.44 Billion, up 27%. Berkshire Hathaway's net income was $89 billion. This includes gains from Berkshire shares such as Apple, American Express and American Express. Apple included. Berkshire’s cash stake was a reflection of high business valuations, and nine consecutive quarters in which the company sold more shares than it purchased. Buffett wrote: "Often nothing seems compelling, but very rarely do we find ourselves in the midst of opportunities." AMERICAN MIRACLE Buffett is celebrating his 60th year at Berkshire. He transformed the company from a failing fabric company to a conglomerate of dozens of companies in industries such as insurance, railroads, energy, retail, and industrial. Buffett added that Berkshire was "not done" and will continue to favor owning stocks, especially U.S. ones, over cash. He sent a warning message to Washington and lamented that capitalism has "faults and abuses, which are in some respects worse than ever," and "scoundrels" and "promoters" have been at it full force. He urged legislators to preserve the stability of the U.S. Dollar, saying that "paper money could see its value disappear if fiscal foolishness prevails" and that in the United States' history the country has "come very close to the edge." Buffett said that the long-term success and growth of Berkshire, as well as the American economy (which he called "the American miracle") depended upon the ability of people to participate. He said Uncle Sam could encourage or discourage that. Buffett, in a letter to the government, wrote: "Take care for the many, who without their fault, are the ones that get the short straws of life." "They deserve more. Never forget that you are needed to maintain a stable exchange rate, and this requires both your wisdom and vigilance. Cathy Seifert is an analyst with CFRA Research, who rates Berkshire as "hold." She said: "His way of addressing politics and the impact of the macroeconomic climate was to talk about America's business being messy." He's warning Washington, "Be careful where you step." Fewer buying opportunities Buffett stated that Berkshire had not purchased an entire company in 2016. However, he said the company is likely to increase their combined $23.5 billion investments into five Japanese trading companies: Itochu Marubeni Mitsubishi Mitsui Sumitomo. Other stocks are more expensive, however. The Standard & Poor’s 500 hit a new record on Wednesday while the Nasdaq is only 3% off its peak of December 16. Berkshire shares are also too small to dominate the indexes like they used to do decades ago. In the past year, the company's share price rose 15% while the S&P 500 grew 18%. Data show that over the past decade, Berkshire stock has increased 225%. The index, however, rose 241%, including dividends, and 185% without dividends. Bill Smead of Smead Capital Management, Phoenix's chief investment office said: "They will be able to buy a lot but Berkshire won't ever be that large compounder with double-digits." "Berkshire is a great way to own major companies and avoid trouble. Buffett, Abel, and Berkshire Vice-Chairman Ajit Jain will spend less of their time on stage at the annual meeting. Buffett told Fortune magazine in the last month he still had fun and was able to do some things fairly well while other activities were "eliminated" or "greatly minimized". The traditional film created by Buffett’s daughter Susie will not be shown at the meeting. Buffett, when asked about his age, said that he speaks regularly with his 91 year-old sister Bertie on Sundays, using a traditional phone. He said, "We discuss the relative merits and joys of canes as well as other exciting topics such the joys that come with old age." In my case, its utility is to prevent me from falling on my face.
-
The oil ministry has announced that the northeast of Syria will begin supplying oil directly to Damascus.
Ahmed Suleiman, spokesman for the Syrian oil ministry, said on Saturday that Kurdish-led officials in northeast Syria are now supplying oil to Damascus from the local fields they control. This was the first time that the oil rich northeast of Syria was acknowledged as a source of oil for the islamist-run government, which was installed in December after the former president Bashar al Assad was overthrown by rebels. Suleiman claimed that the oil came from Hasakeh, Deir el-Zor provinces and the deliveries were made based on a revised version of a prior agreement between the Assad Government and Kurdish Authorities. He claimed that the new Syrian leaders had changed the articles of the deal which "served people connected to the Assad regime's interests". Sources from the semi-autonomous administration in northeast Syria said that the deal involved the shipment of 5,000 barrels a daily of crude oil from the Rmeilan Field in Hasakeh, and other fields in the Deir el-Zor Province to a refinery located in Homs. In 2010, Syria exported 380,000 barrels per day of oil (bpd), a year prior to the protests against Assad’s rule that spiraled into a 14-year conflict that destroyed the country’s infrastructure and economy, including its oil. The oilfields have changed hands several times. The Kurdish-led Syrian Democratic Forces eventually captured the northeastern fields. However, U.S. sanctions and European sanctions made legitimate imports and exports difficult. In January, the United States granted a six-month exemption from sanctions to allow certain energy transactions. The European Union will soon suspend sanctions related to transport, energy and reconstruction. Several trade sources said that Syria wants to import oil through local intermediaries in the meantime, after its first post Assad import tenders attracted little interest due to sanctions and financial risk. Internal oil trade also plays a major role in the talks between the Northeast region and the new Damascus authorities, who want to centralise control over all of Syria. According to sources, the SDF will likely have to give up control of oil revenue as part of any settlement. Mazloum Abdi, the SDF commander, said that he was willing to give up control of oil revenues to the new government if the money was shared fairly among all provinces. Reporting by Maya Gebeily from Beirut, and Timour Azhari from Damascus. Editing by Bernadette and Emelia Sithole Matarise and Kirsten Donovan.
-
Iraq's Oil Ministry says that procedures for oil exports via Turkish pipeline are complete
In a statement issued on Saturday, the Iraqi oil ministry stated that all procedures were completed for the resumed exports via the Iraq-Turkey pipe. Iraq's Oil Minister said Monday that oil exports will resume from the semi-autonomous Kurdistan Region next week. This resolves a dispute of nearly two years that has disrupted oil flows, as relations between Baghdad Erbil have improved. Sources have confirmed that the Trump administration has put pressure on Iraqi officials to allow Kurdish exports of oil to resume or else face sanctions along with Iran. Later, an Iraqi official denied the pressure and threat of sanctions. Following the statements made by the oil minister earlier in the week, the federal government of Iraq (FGI) and the Kurdistan Regional Government(KRG) held technical discussions to work out the details needed for the resumed exports. This included a payment system that was acceptable to the oil companies. The Iraqi Oil Minister's announcement follows the Iraqi Parliament's approval of a budget amendment on February 2, which set a rate for oil transportation and production costs to be $16 per barrel in Kurdistan. The KRG is also required to transfer its oil production to the State Oil Marketing Organization, which is run by the government. In a statement issued on Saturday, the oil ministry asked that KRG begin delivering crude oil to SOMO to allow exports to resume. (Reporting and writing by Ahmed Rasheed, Ahmed Tolba, and Maha El Dahan. Editing by Sharon Singleton.)
-
France’s EDF Reports $944M Impairment on US Offshore Wind Project
State-owned French power giant EDF is taking a 900 million euro ($944.4 million) impairment charge on the Atlantic Shores offshore wind farm project in the United States after partner Shell pulled out of the joint venture."We have every intention of pursuing the interests of the (joint venture) company to the end, but in order to reflect the new American political landscape ..., the board of directors has decided at this stage to depreciate the developments that we have carried out offshore at Atlantic Shore," EDF CEO Luc Remont told reporters.($1 = 0.9530 euros)(Reuters - Reporting by Forrest Crellin, Editing by David Goodman)
-
Cuba opens the first of 92 new solar parks to combat energy crisis
Cuban President Miguel Diaz-Canel opened the first of 92 Solar Parks on Friday, as part of an initiative backed by China to reduce the number of blackouts that can last for hours in the Caribbean Island nation. The park in Havana is one of 55 that are expected to be online by this year. It will generate 1,200 megawatts. Last year, the outdated power grid of this Communist-run nation collapsed multiple times. A severe fuel shortage made it impossible for smaller clusters to operate diesel-powered generators which typically backup the system. Blackouts that lasted for years have weakened the economy, and prompted scattered protests by residents who are tired of the multi-faceted crisis which includes a scarcity of basic goods such as food and medicine. The government is heavily promoting the parks as a partial answer to people's problems, which they blame primarily on U.S. sanction. Diaz-Canel tweeted on Friday that "the recovery of the grid is a top priority, and this is its safest route." Cuba's maximum demand is around 3,500MW. However, it fails to meet 1,500MW of this, leading to power outages. Cuba and China agreed to boost solar energy in Cuba's grid in April, but neither government provided details on the financing. Hua Xin attended the Havana solar park's inauguration. Foreign journalists were not allowed to attend the event. Presently, less than 5% (or a little more) of Cuba's energy is derived from alternative sources. Cuba's 2030 goal is 24%. Marc Frank (reporting; Paul Simao, editing)
As wildfires erase forests, Greeks argument: to replant, or not?
When a wildfire tore down a. hillside towards Athens last month, its southernmost flank. stopped in a treeless area burned by fire two years in the past. A few. miles west, nevertheless, the blaze found fresh fuel: woods and scrub. that provided a course towards the city's residential areas.
In its way stood the leafy village of Penteli, where Marlena. Kaloudi has lived considering that the 1970s. The fire swept through her. house. However what harmed most when she returned was the sight of her. pine trees, some over 100 years of ages, charred to an autumnal. brown.
The most significant catastrophe ... is not our house - this can be. brought back, stated Kaloudi, sitting by her gutted back deck. It's. those trees that were here before us and we hoped and prayed. would be here after us.
The devastation is a familiar sight in Greece and throughout the. Mediterranean region where fires have ended up being more regular and. strong, driven by greater temperatures and drier conditions that. researchers connect to environment change.
In the Attica region surrounding Athens, blazes have. destroyed 37% of its forests and meadows considering that 2017,. according to information launched in August by the National Observatory. of Athens, a government-funded research study centre. More than 60% of. broad-leafed forest and 41% of coniferous forest has actually been burned. and has not completely regrown.
The loss raises the risk of flash floods from rains on. denuded grounds no longer safeguarded by tree canopies and root. systems, in addition to greater air temperatures brought on by the. heating of unshaded ground, desertification and poorer air. quality, four experts stated.
It has actually likewise ignited an argument about what the government. reaction ought to be: continue with a program of replanting trees. that might offer fuel for future fires, or, as some scientists. desire, search for brand-new methods to adjust.
For Kaloudi, it's an apparent choice. After the last fire,. which went on to smother the city's northern residential areas, her. neighbours asked her to cut down the staying trees in her. garden. She refused.
The loss of this forest frightens me, she stated. What. scares me is the fact that there are individuals who want to cut the. trees that are left.
PLANT MORE TREES?
Wildfires have drastically modified Attica's landscape,. satellite images show. Hillsides, forested a few years earlier, have. become bald and rocky. Locations where forests do resprout are often. reburned. Bird song has actually vanished with the trees.
Data from Global Forest Watch, an effort that utilizes. satellites to track deforestation, shows that of all the. fire-related forest loss in Attica given that 2000, 74% has actually taken place. since 2017.
Greece is not alone. The U.N.'s Intergovernmental Panel on. Environment Modification (IPCC) has actually highlighted the Mediterranean region. as a 'international environment hotspot', with an increase in surface. temperature levels of 1.5 C from pre-industrial levels already driving. an increased threat of wildfires and drought.
Wildfires are also a growing danger in the United States,. Canada, Australia, and even the rainy United Kingdom. With that. threat has actually come an argument about what to do with a forest once it. has actually burned.
Some wish to replant trees to bring back root systems and to. recover lost carbon sinks. Others state forests and fire zones do. not mix.
Up until now, there is no clear evidence of which side is appropriate,. and regional elements identify what is best, the 4 specialists said. Still, some say a rethink is needed, specifically in areas where. the same locations are being repeatedly burned.
There is no terrific consensus on what to do, stated Camille. Stevens-Rumann, associate professor of fire ecology at Colorado. State University. Individuals typically want places to look like how. they did before, but that may not be suitable in a new fire. program.
Greece desires its forests back. With the aid of 450 million. euros from the EU, the federal government has embraced a nationwide fire. prevention plan that likewise consists of planting 1 million trees in. Attica.
The increase of greenery and its conservation is not only a. objective of the government but of the entire European Union, said. Efstathios Stathopoulos, Greece's General Secretary of Forestry.
The EU has a strategy to replant 3 billion trees throughout the bloc. by 2030, although the plan is not concentrated on replanting after. fires.
Not everyone believes resowing forests after fires works.
Theodore Giannaros, a fire meteorologist at the National. Observatory of Athens, surveilled a hillside outside Athens. blackened by last month's fire.
Next year, he said, the ground there, currently baking in. summer, will be even hotter for the absence of shade. The loss of. tree root systems will make the soil looser, increasing the danger. of floods or landslides, he said. There will be more dust.
Less flammable vegetation like some kinds of turfs or. agricultural land is the response, not trees, he said.
We have to seriously concentrate on how to bring back the landscape,. not just planting trees and forests, however in a way that will. be ... more durable versus natural catastrophes.
Fernando Pulido, teacher of forestry science at the. University of Extremadura in Spain, advised planting crops. or creating other barriers between dense forests in the. Mediterranean region.
This involves a modification in mentality ... however it's the only. method to guarantee that there won't be another fire at the very same. place after eight or 10 years, he stated.
THE FALLOUT
Meanwhile, areas previously untouched by fires are being. hit.
Thodoris Arvanitis has actually been a natural farmer on a 100-acre. plot in a woody location north of Athens for 35 years. He had actually a. school for aiming farmers, living quarters for employees, and. rows of polytunnels for his fruit and vegetables.
Last month, most of what he developed - up to 1 million euros of. devices and crops - was burned by the fire. Now, the sheet. metal of a gutted farmhouse clatters in the wind. A line of. newly planted fig trees is wiped out; stacks of charred. potatoes have actually been delegated rot.
Not all the crops were lost, and Arvanitis plans to reconstruct. On a current afternoon, personnel bagged up aubergines, french beans. and melons for delivery to consumers.
But he had a hard time to include his feelings when he talked. about the blaze, which was brought towards his home on the. surrounding trees. Without any assistance from the fire brigade, he. depended on other residents to help that day.
We were putting out fires occasionally. However new ones kept. breaking out. At some point we could not do anything more. The. fire was right outside our farm..
(source: Reuters)