Latest News
-
Berkshire supports Japanese trading houses and could hold them "forever"
Warren Buffett gave his full support on Saturday to five Japanese trading companies in which his conglomerate is involved. Berkshire Hathaway Has invested. Buffett spoke to Berkshire shareholders at their annual meeting in Omaha, Nebraska. This was 1-1/2 months after Berkshire announced that it had increased its stakes in Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo as high as 9,8%. Berkshire had invested $23.5 billion in these companies by the year 2024. Buffett stated, "We won't even consider selling them in the next 50-years." "We were treated very well by these five companies ..... Our main activity was to cheer and clap." Greg Abel is a Berkshire vice-chairman who will succeed Buffett in the role of chief executive. He said that Berkshire would own trading houses "forever" or for at least 50 years. He said that "we're building relationship" and "we really hope to achieve big things with them." Japanese trading houses, also known as "sogo-shosha," trade a wide range of products, materials and foods, often acting as intermediaries and providing logistical support. The real economy is also very important to them, including commodities, shipping and the steel industry. Berkshire started investing in trading houses in 2019 and revealed 5% ownership stakes at Buffett's 90th Birthday the following August. Buffett has said that he prefers not to engage in businesses he doesn't understand and has compared trading houses to his conglomerate.
-
Wildfires reduce Berkshire's profits; cash soars $347.7 Billion
Berkshire Hathaway, owned by Warren Buffett, posted a lower operating income in the first three months of this year, impacted by wildfire insurance losses and currency fluctuations. However, its cash holdings grew to an all-time high $347.7 Billion. The operating profit of the Omaha-based conglomerate fell 14%, to $9.64 Billion, or approximately $6,703 for each Class A Share, from $11.22 Billion a year ago. The net income fell 64%, to $4.6 billion or $3.200 per Class A Share, from $12.7 Billion, due to unrealized losses in common stock holdings, including Apple. Berkshire has had difficulty buying things, as evidenced by the increase in cash. For the third quarter in a row, it did not repurchase any of its own shares. It was also a net seller for the 10th consecutive quarter. They bought $3.18 billion of stock and sold $4.68 billion. Berkshire has said very little about the impact of President Donald Trump's tariff policy on results. Berkshire said that it was "unable" to predict the impact of the uncertainty on the company's product costs, supply-chain costs and customer demands. The wildfires that ravaged the Los Angeles area in January caused insurance claims to total $1.1 billion. The overall net insurance income fell by almost half to $1.34 billion. Geico's underwriting profit increased 13% before tax due to lower accident claims and higher premiums. The results also included 713 million in currency losses due to the weakening of the U.S. Dollar, compared to a gain of $597 million a year ago. The results were announced ahead of Berkshire’s annual shareholder meeting, which takes place in Omaha as part of an event that attracts tens and thousands of people. Buffett has been leading Berkshire, a textile company, for over 60 years. He transformed it into a conglomerate whose companies include Geico and the BNSF railway, Berkshire Hathaway Energy as well as Dairy Queen, See's Candies, and Berkshire Hathaway Energy. Berkshire shares outperformed the market in 2025. Many investors view the company as an economic safe haven, especially from potential tariffs. Tariffs have helped BNSF Railroad, which has seen its profit rise 6%. BNSF reported increased volumes of consumer products including imports from the west coast and automobiles, which indicates a higher demand for shipments prior to tariffs being implemented. Berkshire Hathaway Energy did better as well, with a 53% increase in profit through a broad-based gain and fewer losses at the HomeServices unit of real estate brokerage. Berkshire Hathaway's manufacturing, retail and service businesses saw their profits fall by 1%. Berkshire’s car dealerships have benefited from increased sales of both new and used vehicles. Berkshire said that home furnishings retailers and other retailers were struggling with "increased competitiveness, sluggish demands and the impacts of increased economic uncertainty."
-
Wolff: Sustainable F1 fuel costs more than expected
Toto Wolff, Mercedes' team chief, says that the switch to 100 percent sustainable fuel in Formula One from next season has proven to be more costly than anticipated. One of the engine makers raised the issue of fuel costs at a recent Formula One Commission meeting, which included team managers and other major stakeholders. Wolff, speaking to reporters at the Miami Grand Prix round six of the year, said that it is expensive because the entire supply chain and the energy contribution must be green. "To achieve that, you'll need to use a very specific set of ingredients which are expensive. It's much more expensive than expected. We need to see if there is anything we can do to reduce the price per litre. Wolff stated that Mercedes' fuel partner Petronas is fully committed to sustainable fuels, but they are also looking at whether a change in regulation could make it more financially viable. Christian Horner, the Red Bull boss, acknowledged that there were many development costs involved but claimed it was not an issue for his team. "Perhaps a new bracket could be introduced in the future." Fuel is one of the biggest performance differences. Fuel companies are very involved in this," he said. Formula One has a goal to become carbon-neutral by 2030. This plan covers the cars and sports operations on race weekends. (Reporting from Alan Baldwin in London and editing by Ed Osmond.)
-
Source: OPEC+ will agree to another accelerated increase in oil production for June
A source said that eight OPEC+ nations will meet on Saturday and agree to a new accelerated oil production increase for June, of 411,000 barrels a day. This was shortly before a meeting online of the countries. The eight countries increased their output in May by 411,000 barrels per day more than they had planned. This, combined with the U.S. tariffs on trade, drove oil prices to a record low of $60 a barrel. Sources made the comment just before countries began an online meeting to determine June output after bringing the meeting forward by one day. Four other sources had earlier stated that the accelerated increase was likely to be approved. Oil prices dropped over 1% Friday, as traders prepared for more OPEC+ supplies. Concerns about an economic slowdown due to a trade conflict between the U.S. Brent crude futures closed Friday at $61.29, down 84 cents or 1.4%. This week, it was reported that Saudi Arabian officials, de facto leaders of OPEC+ and allies, had informed industry officials and other officials that they were unwilling to support oil markets by cutting further supplies. Sources have reported that Riyadh is angry because Kazakhstan and Iraq are producing more than their OPEC+ target. Helima Croft, an analyst at RBC Capital Markets, said that "discussions seem to be pointing in the direction of a third three-month rise". Croft added, "Compliance appears to be the main focus. Kazakhstan, Iraq, and Russia continue to miss their compensation goals, although to a lesser degree." OPEC+ (which includes the Organization of the Petroleum Exporting Countries, as well as allies like Russia) is cutting production by more than 5 million bpd. Many of the cuts will remain in place through the end of 2026. The group intends to hold a full-ministerial meeting on 28 May. (Reporting and writing by Alex Lawler; Editing and writing by Barbara Lewis.
-
Sources say that OPEC+ is set to increase oil production again in June.
Four sources familiar with the matter said that eight OPEC+ nations will likely agree on Saturday to a further accelerated increase in oil production for June. This is the latest step of a plan designed to undo the most recent layer of cuts made by the group. The eight countries increased their output by 411,000 barrels a day in May. This decision, along with the U.S. tariffs on trade, helped drive oil prices to a 4-year low below $60 per barrel. After moving the meeting from Monday to today, the countries will hold an online discussion to decide on June's output at 1000 GMT. Four sources told Reuters that a similar hike to the one approved in May is likely to be approved by the four countries for June. Oil prices dropped over 1% Friday, as traders prepared for more OPEC+ supplies. Concerns about an economic slowdown due to a trade conflict between the U.S. Brent crude futures closed Friday at $61.29, down 84 cents or 1.4%. This week, it was reported that Saudi Arabian officials, de facto leaders of OPEC+ and allies, had informed industry officials and other officials that they were unwilling to support oil markets by cutting further supplies. Sources have reported that Riyadh is angry because Kazakhstan and Iraq are producing more than their OPEC+ target. Helima Croft, an analyst at RBC Capital Markets, also said that she didn't think a decision had been finalized but "discussions seem to be leaning towards another three-month hike". Croft added, "Compliance appears to be a key focus. Kazakhstan, Iraq, and Russia continue to miss their targets for compensation. OPEC+ (which includes the Organization of the Petroleum Exporting Countries, as well as allies like Russia) is reducing output by more than 5 million bpd. Many of these cuts will remain in effect until the end of the year 2026. The group intends to hold a full-ministerial meeting on the 28th of May. (Reporting and editing by Barbara Lewis, Maha El-Dahan, and Ahmad Ghaddar)
-
US worker safety agency informs employees of terminations
The Trump administration terminated employees late Friday of a worker safety and health agency, which provides services and research for coal miners and firefighters, despite pleas from a Republican lawmaker to keep its programs. According to a copy of these notices, the National Institute for Occupational Safety and Health employees received notices of reduction in force that stated the job losses would be necessary to reshape workforce of Department of Health and Human Services. The union representing NIOSH's employees reported that, while nearly all employees were put on administrative leave during February, around 40 employees who were responsible for coal mining and firefighter safety had been asked to temporarily return to work a few days earlier. Two of these employees have been terminated. U.S. U.S. After regular business hours, the Department of Health and Human Services (which oversees NIOSH) did not respond immediately to a comment request. A spokesperson said earlier this week that NIOSH functions will join multiple agencies in the new Administration for a Healthy America. It is not known if any of the terminated staff will be relocated. Last month, it was reported that the NIOSH key services had been halted, which meant vital health and safety programmes for coal miners were no longer available, including mobile health screenings and lung screenings. Another program, to move miners with black lung to less dusty areas of a mine, has also been discontinued. In the past decade, black lung disease has resurged among coal miners of all ages. The President Donald Trump is leading a high profile campaign to revive coal use and mining in the U.S., which was declining.
-
PD Ports Outlines Plans to Develop UK Offshore Wind Hub
U.K.-based PD Ports has outlined its plans to develop one of the U.K.’s largest offshore wind manufacturing and installation hubs - the Teesport Offshore Gateway.The proposed project could unlock 180 acres of development potential for a range of offshore manufacturers, assembly, marshalling and supply chain support services.Representing a multi-million-dollar investment in the River Tees, the Teesport Offshore Gateway would include an up to 1 km long deep-water riverside quay, permitting unrestricted access to the North Sea and suitable for both floating and fixed bottom offshore wind development. Set within the heart of PD Ports’ Teesport industrial port complex, the U.K.’s sixth largest port, the site offers a strategically located position for development, supported by quality infrastructure, strong road and rail links and a skilled workforce. While the plans are at an early stage and subject to a variation of existing deep water berth development consents, it is anticipated that development of Teesport Offshore Gateway could cost in the region of $267 million and would secure critical port facilities in support of the Government’s offshore wind development ambitions.PD Ports is looking to engage with the offshore renewables sector to explore the potential of the proposals, working with original equipment manufacturers (OEM), developers, the UK Government and industry experts to shape the strategic direction of the site and identify opportunities for collaboration and funding. It is hoped that by announcing the initiative at an early stage, insight from the offshore sector will aid the design of more detailed plans to meet future industry requirements. The site has already secured both planning consent and marine consent, subject to amendments, to extend an existing riverside berth to develop the 15.5m deep-water mooring, which would be large enough to accommodate all current and planned offshore installation vessels available globally.The creation of a new deep-water berth for Teesport will also future-proof the port, opening up wider opportunities for additional bulk and container facilities, in support of PD Ports’ existing Teesport Container Terminal and the Tees Bulks Quay. “As the U.K. and the wider world turns its attention to large-scale renewable energy sources, here at PD Ports we see the opportunity – and the responsibility – to play our part by offering an offshore wind development site that is perfectly positioned to unlock the capability of our region, not only as a hub for trade and industry, but also to deliver the clean energy revolution.“Teesport and the River Tees has everything required to successfully operate what we believe will be one of the largest offshore wind manufacturing and assembly hubs on the east coast of the UK, offering unrivalled access to the North Sea.“Although these proposals are at an early stage, we are confident that this development will support the UK Government’s ambitions for future offshore wind power generation,” said Frans Calje, chief executive officer of PD Ports.
-
Shareholder returns from Big Oil show a split in production strategies
Big Oil's earnings for the first quarter of 2018 show a clear division in how companies are positioning themselves to weather a downturn caused by the drop in oil prices, which reached a four-year-low in April. Investors focused on the question of whether companies would reduce share repurchases because lower crude prices would mean that they would have less cash available to fund these programs. Investors' interest in the oil sector is largely driven by buybacks and dividends. Exxon Mobil, a US oil company, and Shell in the UK kept up their share buybacks. Chevron, a U.S. oil company, and BP (a UK-based oil company) said that they would decrease buybacks during the second quarter. The differences reflect where each company is at in its business cycle. Exxon's Guyana oilfield has produced prolifically, making it the largest offshore oil discovery in more than a decade. Exxon, a major player in both the Permian basin, the largest U.S. oilfield in terms of production, and in Guyana, has increased its production by 20 percent year-over-year. Exxon CEO Darren Woods said that both areas are highly lucrative and the company is trying to reduce its operational costs. Woods stated in the first-quarter earnings report of his company that "in this uncertain market our shareholders can have confidence in knowing that we are built for it." This week, oil prices fell to their lowest monthly level since 2021 as investors priced the impact of U.S. President Donald Trump’s trade policies on the global economy and fuel demand. Exxon had a net debt-to-capital of 7%. Kim Fustier of HSBC's European Oil and Gas Research said that Exxon was the only integrated company to not have increased its net debt in the third quarter. Chevron's oil and gas production in the first quarter of the year was the same as the previous one, due to a combination of growth in Kazakhstan and Permian and a loss from the sale assets. In an attempt to streamline the business and reduce costs by up to $3 billion, Chevron announced earlier this year that it would be laying off up to 20 percent of its employees. Chevron wants to get into the Guyana game by acquiring Hess, one of Exxon’s minor partners in the project. Exxon has been in arbitration for that deal and claims the right of refusal over Hess stake in the project. Exxon bought $4.8 billion worth of shares in the first quarter. This puts it on track to reach its annual goal of $20 billion. Chevron announced that it would reduce its buybacks from $3.9 billion to $2 billion-$3.5 billion during the current quarter. This is a reduction of $3.9 billion made between January and march. Jake Behan is the head of capital market at Direxion, a financial products company. He said that Exxon was able to maintain its buybacks due to low production costs, while Chevron reduced theirs as oil prices fell. Shell impresses, BP disappoints In Europe, Shell’s first-quarter results exceeded analyst expectations. The company announced that it would buy $3.5 billion of shares in the next three month, marking the 14th quarter in a row of a program worth at least $3 billion. BP's profit fell by 48% to $1.4 billion, missing earnings expectations. It also reduced its share buyback from $1.8 billion a quarter to $750 millions a quarterly. Biraj Borkhataria is an analyst with RBC Capital Markets. He said that after the disappointing results BP may miss consensus expectations by 20% for the second quarter earnings. He wrote: "The combination (of a weaker free cash flow), higher leverage and patchy implementation leaves us more conservative on the name in comparison to peers." After a failed effort to aggressively move towards a low-carbon business model, the British oil major has shifted its strategy back to oil and gas. BP underperformed before the recession, which made it a possible takeover target. Shell CEO Wael Sawan stated on Friday that he would prefer to buy more shares of his own company than bid for BP. Shell's investment budget for the year was between $20 billion to $22 billion, while BP announced that it would cut its spending by $500,000,000, to a budget of $14.5 billion. BP has also said it may sell more assets this year, upping its forecast for sales to between $3 and $4 billion from $3 billion. Reporting by Sheila Dang, Houston; Shadia Nasralla, London; editing by Rod Nickel
Korea Zinc takeover fight tests Seoul's resolve on taking on 'Korea discount rate'
A takeover battle over Korea Zinc is adding pressure on Seoul to pass legislative reforms to guarantee much better defenses for all financiers in a. nation with a stock exchange dominated by familyrun. conglomerates.
Korea Zinc Chairman Yun B. Choi, a grand son of a co-founder,. recently agreed to ditch a questionable plan to provide new. shares in the world's largest zinc refiner to help ward off a. takeover effort from the co-founding family's Youngpoong Corp. and its partner, personal equity group MBK Partners.
The share concern plan had exasperated many investors, as two. days before it was revealed, Korea Zinc settled a buyback at. a 25% higher cost.
Choi pulled back after a regulative probe and extreme. investor pressure that brought international attention to. business governance drawbacks in Asia's fourth-largest. economy.
However Korea Zinc's actions under his leadership have actually fuelled. scepticism over whether the government's require voluntary. efforts by business to boost depressed stock evaluations is. adequate, according to interviews with more than a dozen. financiers, governance experts, regulators and legislators.
After Choi became chairman in 2022, Korea Zinc signed deals. with LG Chem and Hanwha Corp to invest. in each other, in a plan referred to as a cross-shareholding,. though it sold shares in the latter this month to help pay back. financial obligation. Under Choi, it also sold stock to strategic partners. consisting of Hyundai Motor Group and Trafigura.
Why do you use company funds, not your own money to. increase your control? asked Park Yoo-kyung, a managing. director at Netherlands-based APG Asset Management, who kept in mind. Korea Zinc might have formed joint ventures or used other types. of agreements.
Numerous business in Japan are relaxing cross-shareholding. offers, which have been criticised as unfavorable for business. governance due to the fact that they can insulate management from having to. satisfy the interests of shareholders.
Korea Zinc said the cross-shareholdings were needed to. ensure steady partnerships as it expanded into battery. products, hydrogen and other organizations.
Hahm Yong-il, senior deputy guv of the Financial. Supervisory Service, said Korea Zinc's relocations had fuelled. financier doubts about board self-reliance.
The regulator's dedication to reforming and enhancing. capital markets is being tested, said Hahm, whose company is. examining apparently unjust practices in Korea Zinc's. proposed share concern plan even after it was cancelled.
LEGISLATION PUSH
Korea Zinc's actions show legislation is required to protect. the interests of minority shareholders and resolve the absence of. board self-reliance, especially at family-run corporations. called chaebols, said individuals spoken with .
In South Korea, board members have a fiduciary task to. perform their tasks in the company's interests, but not to. protect investors' interests.
The Democratic Party, which has a bulk in. parliament, on Tuesday proposed a commercial law revision to. extend the responsibility to investors, stating the Korea Zinc saga. included seriousness to long-delayed legislation.
But President Yoon Suk Yeol's Individuals Power Party and. company groups have actually raised issues that business could be. based on attacks from abroad hedge funds if the law was. changed.
Yoon can veto bills, and his office this month took an action. back from its earlier favorable position on the commercial law. modifications.
In January, Yoon had vowed to attend to the so-called Korea. discount rate to fortify assistance from the nation's more than 10. million retail financiers, taking a leaf from Japan's business. governance reforms over the last couple of years that have actually drawn. interest from worldwide financiers and sent Tokyo stocks to record. highs this year.
The Korea discount rate describes a tendency for South Korean. business to have actually lower appraisals compared to their abroad. peers due to low dividend payouts and the supremacy of chaebols. that often have weak governance practices.
Benchmark KOSPI index shares traded at a. price-to-book multiple of 0.87 as of Wednesday, below an average. of 1.2 for business on Japanese exchanges and 4.8 for the S&P. 500 in the U.S., according to data from the exchanges.
FIRST HOSTILE TAKEOVER
Korea Zinc's Choi vowed to give up his role as chairman. and come up with procedures to secure minority investors as he. braces for a showdown with Youngpoong and MBK at a shareholder. conference early next year.
Their quote for control, if effective, would be the first. hostile takeover of a South Korean company by a private equity. fund, and ought to function as a wake-up call for chaebols, according. to LSEG information.
What MBK is doing on Korea Zinc could potentially spur. dozens of similar disagreements at some 200 locally listed Korean. business, stated Mike Cho, a business school professor at. Seoul's Korea University.
The nation has actually generally been a tough ground for. activist financiers such as Elliott, which over the last years. made not successful efforts to block deals at Samsung affiliates. and Hyundai Motor Group companies.
The variety of activist campaigns yearly in South Korea. grew more than nine-fold between 2019 and 2023, according to. Diligent Market Intelligence, though the outcomes have actually been. blended.
There is a buzz amongst regional capital market players that. MBK's deal with Korea Zinc might be a video game changer, said. Sanghyun Park, an analyst at Clepsydra Capital. It's seen as a. essential action to tackle the Korea discount by shocking ownership. structures..
(source: Reuters)