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Berkshire Cash sets record profit, signals caution before Buffett's exit
Berkshire Hathaway said on Saturday it was cautious in the markets. It let cash reach a record of $381.7 billion, even though profits rose. This is its final financial report before Warren Buffett steps down as CEO. Buffett's conglomerate has sold more shares than it purchased for the 12th consecutive quarter. Its $283.2 billion portfolio of equity holdings includes Apple and American Express. Berkshire did not buy back any of its stock either, marking the fifth consecutive quarter that it hasn't done so, despite its stock price being significantly below the market. Net income increased 17% to $30.8 billion. Lower insurance losses helped increase third-quarter operating profits by 34%, exceeding analyst expectations. Revenue grew by just 2% - slower than the growth rate of the U.S. overall economy. Berkshire stated that economic uncertainty and waning confidence in consumers have been drags. This has slowed down sales growth for the Clayton Homes homebuilder, and reduced revenue from Fruit of the Loom clothing, Squishmallows toys, and Jazwares. Berkshire isn't keeping up, said CFRA Research analyst Cathy Seifert. She has a "hold rating" on Berkshire. Investors will find it difficult to find a catalyst that can move this stock. BUFFETT READY TO BOW OUT; ABEL to take over Buffett, 95 years old, has been building up cash as he prepares for his end-of-year departure as CEO after six decades. The legendary investor will be succeeded by Vice Chairman Greg Abel (63), though Buffett remains chairman. Abel is more of a hands-on manager compared to Buffett. The Omaha, Nebraska-based Berkshire has a lot of cash. He could pay the conglomerate its first dividend since 1967. Berkshire plans to spend $9.7 billion in cash to purchase Occidental Petroleum’s OxyChem chemical business. The transaction was announced on October 2. James Shanahan of Edward Jones, who in September upgraded his Berkshire rating from "buy" to "buy", said that the company's refusal to spend more cash during the current market rally was disappointing. He said that if you think stocks, even your own, are too expensive, you will eventually be right. But you can be wrong a long time. That's what happened in this case. NET INCOME RISES, HELPED BY GAINS ON STOCKS The operating profit of $13,49 billion, or $9,376 for each Class A share, increased from $10.09billion a year ago. More than two fifths of the growth was due to currency fluctuations. The results were boosted by the absence of major disasters like hurricanes. Geico, the car insurance company, reported lower profits because it spent more on advertising to obtain new policies. As interest rates fall, insurance will face a headwind. This was also the case in the third-quarter. BNSF increased its profit by 6% in the first quarter of this year, citing "lower fuel costs" and "improved productivity". Berkshire Hathaway Energy's 9% decline in profit was due to legal costs from wildfires as well as higher costs for natural gas pipelines in Britain and Northern Powergrid. Berkshire continues to evaluate how the One Big Beautiful Bill Act, signed by U.S. president Donald Trump in July, might impact its renewable energy project viability. The net income of $30.8 billion, or $21,413 for each Class A share, increased from $26.25 billion the year before. Net results include gains or losses on stocks Berkshire does not sell. Buffett thinks that such results do not help him understand his company. STOCK PRICES LAGS in the Broader Market Investors are selling Berkshire stock in response to their concerns about the company's future and pending changes in management. Berkshire stock has dropped 12% since Buffett announced he was stepping down on May 3. It is now 32 percentage points behind the Standard & Poor 500. Berkshire will be 11 percentage points below the index by 2025. "Impatient Investors feel that Berkshire needs to deploy its money urgently and are casting their nets in other directions," said Tom Russo. Tom Russo is a partner of Gardner Russo & Quinn, a $10 billion investment firm in Lancaster, Pennsylvania. Russo owns Berkshire shares since 1982, and he said that Berkshire is "extremely well positioned" over the long-term. He said that Berkshire would not deploy capital if it didn't add intrinsic value to each share. Knowing what guides Berkshire allows investors to make an informed decision. Conglomerate has close to 200 companies that include Dairy Queen, See's Candies and chemical and industrial businesses. Since 2016, it hasn't made any major acquisitions since paying $32.1 Billion for Precision Castparts, a maker of aerospace parts. Shanahan stated that "Abel is a great opportunity."
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Shooting on Greek island Crete leaves two dead and 10 injured
In a shooting that took place in a village in Crete, Greece on Saturday, a man and woman were both killed. At least 10 other people were injured. A senior police official called it a family vendetta. The police have not released any immediate information on the suspect shooter who opened fire at the village of Vorizia. Unknown to the first police official, a second said that an explosion occurred on Friday evening at a building site in which a bomb had been placed. Both police officials spoke under condition of anonymity. Crete is a place where violent feuds have been fought between families in the past over disputes fueled by revenge, insults and hurting honour. The second official confirmed that Greece's top officials in the police, including the chief of the force and the leader of the unit combating organised crime, would be heading to Crete this Saturday. Reporting by Yannis Soulieotis, Renee Maltezou and Peter Graff.
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The UK's Port of Dover delays the new EU border controls for tourist traffic
The Port of Dover in Britain has put on hold the rollout of new biometric border controls for car passengers that are part of the European Union, as the French authorities have not yet given their approval. The EU began implementing its long-delayed Entry/Exit System last month for all non EU citizens, including British tourists. This automated system requires travellers to register their passports at the border, and have their fingerprints and photographs taken. The process for British travellers who use the Port of Dover or the Eurotunnel Terminal at Folkestone, or the Eurostar Terminal at St Pancras International will be completed at the border, before they leave the UK. From October 12, the Port of Dover has been subject to EES inspections for freight and coach traffic. The planned start of the tourist traffic checks on Saturday has been postponed. The French authorities are guiding us as to the date of activation. Doug Bannister is CEO of Port of Dover. Bannister, who spoke last month about the traffic checks in peak summer season, said that he was confident they would not cause congestion but warned that it would take six time longer to process every car.
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Indian temple stampede kills nine, injures several
Government officials reported that a stampede early Saturday morning at a temple located in the southern Indian state of Andhra Pradesh resulted in at least nine deaths and several injuries. According to Pawan Kalyan the deputy chief minister of the state, the stampede happened as people crowded into Sri Venkateswara Swamy Temple in Srikakulam, on Ekadashi. Hindus regard this day as auspicious. In a press release, Kalyan stated that "an inquiry will be conducted" into the tragic event. He added that the temple is run by private individuals. Nine people were killed, he said. Anam Ramanarayana Reddy, minister of state, said that 25,000 people crammed into the temple which could only accommodate 2,000. This led to the crush. District officials were also instructed to give medical attention to those injured. Swapnil Pundkar, collector and magistrate for Srikakulam District, said that 18 injuries had been reported. Two critically injured patients were transferred to a tertiary hospital for treatment. In a recent post, Narendra Modi, the Prime Minister, said that the government would pay compensation to the families of those who died and 50,000 to those injured. $1 = 87.8950 Rupees (Reporting and editing by Clarence Fernandez; Ashwin Manikandan, Rishika Sadam)
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Indian temple stampede kills nine, injures several
An official from the state of Andhra Pradesh in southern India said that a stampede early Saturday morning killed nine people and injured several others. According to Pawan Kalyan the deputy chief minister of the state, the stampede occurred as Hindus crowded into the Sri Venkateswara Swamy Temple in Srikakulam, on Ekadashi. In a press release, Kalyan stated that "an inquiry will be conducted" into the tragic event. He added that the temple is run by private individuals. Nine people were killed, he said. Anam Ramanarayana Reddy, minister of state, said that 25,000 people crammed into the temple which could only accommodate 2,000. This led to the crush. District officials were also instructed to give medical attention to those injured. In a recent post, Narendra Modi, the Prime Minister, said that the government would pay compensation to the families of those who died and 50,000 to the injured. $1 = 87.8950 Rupees (Reporting and editing by Clarence Fernandez; Ashwin Manikandan, Rishika Sadam)
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Hoi An, Vietnam's ancient city, is working to rebuild tourism following devastating floods
After days of torrential rainfall that led to widespread flooding and deadly floods, residents of Vietnam's UNESCO listed ancient town of Hoian began cleaning up Saturday. Residents of Hoi An said they'd never seen flooding on this scale. Shop owners and residents worked to repair furniture and restore power as the water receded. They hoped to reopen soon and welcome tourists back. Restaurant owner Dang Quoc Dat (40) said, "Everything got swept away in the floodwaters causing major damage." Dat continued, "What was left were broken pieces of furniture that needed to be replaced... But I am determined to overcome this obstacle alongside other business owners from the town." According to Vietnam's disaster management agency, the central region was hit by heavy rains, causing flash floods and land slides that resulted in at least 29 deaths and five people missing. It said that nearly 100,000 people are still without power and 22,000 homes remain under water. Vietnam has not yet released official estimates on the financial damages caused by its deadly storms, which occur during the storm season, from June to October. Small business owners reported losses of hundreds of millions dong. We have to try, it's our livelihood. "Giving up is not an option," Dao Thi diu, 38, owner of a painting shop. Authorities have warned that heavy rainfall is forecast for central Vietnam. Some areas are expected to receive more than 700 millimetres of rain, which could cause river levels to rise, triggering new flooding. Reporting by Thinh Nguyen from Hoi An and Phuong Nguyen from Hanoi. Editing by Muralikumar Anantharaman.
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Hassan, a Tanzanian, is declared the winner of an election marred with violence.
Tanzanian President Samia Suluhu Hassan won a landslide election on Saturday, sparking deadly protests in the country over the exclusion her main rivals. Hassan was given a five-year mandate by the East African nation's Electoral Commission. She took over in 2021 when her predecessor died in office. Witnesses report that protests broke out during the vote on Wednesday for the president and parliament. Demonstrators tore down Hassan's banners and set fire to government building, while police fired tear gas and shotguns. Demonstrators were angry that Hassan's biggest rivals had been excluded from the race by the electoral commission, and human rights groups claimed there was widespread arrests and kidnappings of opponents. Hassan, after he was certified the winner in Dodoma, said that the actions of protesters were neither responsible nor patriotic. She said: "When it concerns the security of Tanzania there is no doubt - we need to use all the available security options to ensure that the country remains secure." The opposition claims that hundreds of protesters were killed. Tanzania's CHADEMA, the main opposition party that was banned from the elections for refusing to adhere to a code and had its leader detained for treason back in April, said on Friday hundreds of people were killed during the protests. According to credible reports, at least 10 deaths were reported in three cities by the U.N. Human rights office. The government has dismissed criticisms of its record on human rights and dismissed opposition claims that the death toll was "hugely overstated". Could not independently verify casualty numbers. Since Wednesday, the authorities have implemented a curfew across the country and limited internet access. Many international flights were cancelled and the port of Dar es Salaam, a major hub for metals mining in the region and fuel imports, was disrupted. In a Friday statement, his spokesperson called for "a thorough and unbiased investigation of all allegations of excessive force" and regretted the deaths. Foreign Affairs Minister Mahmoud Tabit Kombo has denied that the security services have used excessive force. He said there were only "very few incidents" which were caused by criminals. Recent Criticism for Hassan The Electoral Commission reported that the turnout was close to 87% of 37,6 million voters registered in the country. This number drew the attention of government critics who noted that Hassan’s predecessor John Magufuli won reelection in 2020 on a turnout of less than 15 million voters with only 12.5 million votes. Witnesses reported that the turnout was low, and some polling stations were disrupted due to protests. Hassan (65), who took office in 2021, was praised by Magufuli after easing government repression. However, he has recently been criticized by opposition parties and activists following a number of arrests and allegations of abductions. She said last year that she had ordered an inquiry into reports of abductions. However, no official findings were released. During her campaign, she praised the expansion of road and rail networks as well as an increase in power generation. (Written by Aaron Ross, edited by Clarence Fernandez & Hugh Lawson).
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Data shows that Russian LNG exports from January to October fell by 3.4% but jumped 21% in the month of October.
LSEG data on Saturday showed that Russia's liquefied gas exports in January-October decreased by 3.4% compared to a year ago to 25.2 millions metric tons (mmt), but jumped 21% in October to new records due to the start of Arctic LNG 2. U.S. sanctions against Ukraine have slowed down the export of LNG from Russia, particularly the new Arctic LNG 2 facility. These sanctions have also significantly reduced the use by the fleet of tankers for fuel transportation. Ship-tracking data provided by Kpler and LSEG revealed that China received its LNG cargo at the end August from the sanctioned Russian Project, just days before a summit between Russian President Vladimir Putin, and Chinese President Xi Jinping. Since then, 13 tanks with cargo from Arctic LNG 2 has been unloaded at the Beihai LNG Terminal in southern China. Russian LNG exports in October increased 21% from 3.4 mmt one year ago, which was a monthly record. They also grew by nearly 27% compared to the previous month. In the first 10 months of 2014, LNG exports to Europe from Russia fell 17.9% on an annual basis to 11 mmt. Exports along the same route fell by 21% in October, to 0.79 mmt, compared with the same month last year. The Yamal LNG plant of Novatek saw a 17% increase in shipment volume compared to October last year, with an 8% growth year-on-year. Exports from Yamal are down 6% on an annual basis since the start of the year. Gazprom's Asia-oriented Sakhalin-2 increased its exports in October by 10% on an annual basis to 0.98 mmt. Lucy Papachristou, Lucy Papachristou's writing; Gleb Bryanski's editing
On the anniversary of a deadly roof collapse, Serbia witnesses tens of thousands of protests.
A year after the roof of a railway station collapsed, killing 16 people in Serbia's second largest city, tens of thousands protesters marched through the streets on Saturday. They were angry about alleged corruption as well as a perceived lack of accountability.
The anger at the lack of prosecutions for those responsible for the collapsed roof has shook President Aleksandar Vucic’s grip on power.
Witnesses said that protesters streamed in Novi Sad (a northern city), where the tragedy occurred, either by car, bus or foot. Some had walked long distances. One of Novi Sad’s main boulevards, which was crowded with people, was awash in protesters.
Many of the protesters were young. They observed 16 minutes silence, one for each victim. This began at 11:52 am (1052 GMT) when renovations to the roof led to its collapse on November 1, 2024.
The protesters wore white flowers, held large red hearts with the names of those who died in the train collapse and placed wreaths at the station.
The black-clad father of one victim, in tears, stared at the name of his daughter, amongst others, affixed to the perimeter fence of the station for hours.
No violence was reported, unlike during some summer protests when tear gas and stun grenades were used by riot police to disperse rallies.
"WE SAY THIS IS ENOUGH"
"This is an enormous tragedy for the Serbians." "We cannot bring them back, but we can feel their pain and say enough," said Sladjana BURMAZ, a 51 year old economist from Valjevo in central Serbia.
She said: "These people weren't killed by accident. Their deaths were caused by a bad system, poor politics... Justice would be served, if the responsible parties were held accountable."
Vucic published on Instagram a picture of himself holding a candle in a church at a ceremony to commemorate the victims of this disaster in Belgrade.
Vucic wrote: "Let their names serve as a reminder to all that the human life is more important than any divisions in society." He added that the government had declared Saturday a national day of mourning.
Students, academics, and leaders of the opposition are leading a protest movement that accuses Vucic, and his populist, nationalist party, of being responsible for corruption, poor public services, nepotism, and restrictions on media freedoms. They deny these accusations.
RAPPORT INDEPENDENT TO EUROPEAN PARLIAMENT
Last week, an independent commission made up of professors and judges as well as technical experts who investigated the tragedy reported its findings to the European Parliament. The report revealed that high-level corruption at the state level led to low construction standards and unqualified subcontractors being hired.
Such accusations have been denied by government officials. Vucic, as well as Parliament Speaker Ana Brnabic, recently said that the collapse of the roof could have been a terrorist act.
The prosecution has indicted senior officials of the state on charges that they endanger public safety. However, a court still needs to confirm this indictment. This prevents a trial. Reporting by Ivana Skularac, editing by Mark Heinrich
(source: Reuters)