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Berkshire reduces cash stake, as buybacks increase and reports higher profit
Berkshire Hathaway started reducing its huge?stockpile in the second quarter. It invested billions of dollars in stocks, including 'Alphabet, and purchased billions more of its own. Conglomerate announced on Saturday that it repurchased $4.5 Billion of its own shares in the second quarter, and another $3.3 Billion in July. This is an acceleration of repurchases begun in March after a two-year break. Between?April to June, it bought more than $20 billion in stocks. This marked the end of 14 consecutive quarters where stocks were sold at a loss. Berkshire added $10 billion to its already large investment in Alphabet, the parent company of Google and YouTube. Berkshire finished June with $364.7 Billion in?cash. This is down from $380.2 Billion a month earlier. The second-quarter operating profits rose by 16%, to $12.98 Billion, or $9.068 per class A share. This compares with $11.16 Billion a year ago. The results were boosted by higher earnings from the BNSF Railroad, manufacturing, retail and service operations and foreign currency fluctuations. From $12.37 billion, net income has more than doubled to $25.67 billion or $17.928 per class A share. The year-ago results included a writedown of $3.76 billion for Berkshire’s stake in Kraft Heinz,?a packaged food company. This was the second quarter since Greg Abel, Berkshire's new chief executive, succeeded Warren Buffett as chairman. Investors and analysts are eager to learn how Buffett's management of Berkshire Capital differs from Abel's. Buffett had trouble deploying cash towards the end of his 60-year tenure at the head of the Omaha, Nebraska based conglomerate. The pace of stock repurchases has a similar pace to Buffett's peak pace in the early part of this decade. Berkshire’s largest year for stock buybacks occurred in 2021 when it purchased $27 billion worth of stock.
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China closes its ports before Typhoon Dolphin reaches Japan's Okinawa
Typhoon Dolphin hit Japan's southern Okinawa Prefecture Saturday, injuring six people and cutting power to over 50,000 buildings. China closed ports and stopped ferries as it prepared for the storm's arrival on its eastern coast. Authorities reported that five elderly people in Okinawa, including three who fell because of strong winds, sustained non-life-threatening wounds. Another person was injured by strong winds in Kagoshima Prefecture. Kagoshima was affected by nearly 39,000 buildings without power, while Okinawa was only impacted by just over 12,000. Domestic airlines ANA and Japan Airlines cancelled flights from and to Okinawa. The maximum sustained wind speed was 162 kph (89.9 mph), with gusts up to 216 kph. In Japan, the two main areas that are expected to be affected by the earthquake and tsunami are Okinawa island and Amami Island in Kagoshima Prefecture. Dolphin is a typhoon of orange category, the second highest level, in China. Concerned about the 'risk of flooding and land slides,' authorities raised the level of emergency response for Dolphin to a level?III. This is the second lowest level. According to China's National Meteorological Center, the typhoon will most likely make landfall between Zhoushan City in Zhejiang Province and Fuding City in Fujian Province and is expected bring winds of up to 85 mph (38-45 m/s) near its center. Ports and airports are unable to operate. Through August 12, eastern China, including Shanghai and neighboring provinces, is expected to experience rain and strong winds. Forecasters predict that some areas in eastern Zhejiang may receive up to 600 mm (23.6 inches) of rain. Zhejiang has raised its coastal typhoon warning to the highest level. It has also halted all port operations, and suspended 162 passenger routes. Fujian has also suspended ferry routes. Ningbo Lishe International Airport in Zhejiang announced that it would cease operations at 11:30 pm (1530 GMT) Saturday, and will suspend all flights on Sunday. Shanghai's Yangshan port was cleared of ships by Friday evening, and some rail services will be suspended in the Yangtze River Delta from Sunday. The government reported that 78 international flights in Taiwan were cancelled due to the typhoon. The weekend was set to bring heavy rains in the northern part of the island, but authorities hadn't ordered any evacuations. China ordered ships passing through the Taiwan Strait to obey its traffic control instructions due to the typhoon. Taipei called the measures "ridiculous" and said that Beijing had no right to restrict the access to international waters. China claims Taiwan, a democratically-governed island. Both Taipei, and Washington, reject this claim.
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China closes its ports before Typhoon Dolphin reaches Japan's Okinawa
Typhoon Dolphin slammed Japan's southern prefecture of 'Okinawa' on Saturday. It injured 'five people' and cut power to '14,000 buildings'. Meanwhile, China closed its ports and ferry routes in preparation for the storm's arrival on their east coast. As of 0300 GMT the storm was located about 160 km (99 mi) northwest of Kume Island, Okinawa. It was moving north at a speed of 15 kph (9mph), according to the Japan Meteorological Agency. Okinawan government officials reported that five elderly people sustained non-life-threatening wounds, three of which were caused by the wind. ANA and Japan Airlines cancelled flights into the region. The sustained maximum wind speed of the typhoon was 162 kph (89.9 mph), with gusts up to 216 kph. Okinawa, and Amami Island in Kagoshima Prefecture will be the most affected areas in Japan. China National Meteorological Centre says Typhoon Dolphin is expected to land along China's east and south coast between late Sunday and Monday. It will most likely be between Zhoushan in Zhejiang Province and Fuding in Fujian province. Near its center, it is expected to bring winds between 85-101 mph (38-45 m/s). Through August 12, eastern China, including parts of Shanghai, and the neighbouring provinces will be affected by rain and strong winds. Forecasters predict that some areas in eastern Zhejiang may receive over 600 mm of rain. Zhejiang has raised its coastal typhoon warning to the highest level and suspended 162 passenger ferry services. Ningbo Lishe International Airport, Zhejiang, has announced that it will cease operations at 11:30 pm (1530 GMT) Saturday and all flights will be suspended on Sunday. Yangshan Port in Shanghai was cleared of all vessels by Friday evening, and some rail services?in the Yangtze River Delta will be suspended on Sunday. The government announced that 63 international flights in Taiwan were cancelled due to the typhoon. The weekend was set to bring heavy rains in the northern part of the island, but authorities hadn't ordered evacuations as of Saturday. China ordered ships to obey its traffic control instructions due to a typhoon in the Taiwan Strait. Taipei called the measures "ridiculous" and said that Beijing had no right to limit access to international waters. China, who claims strategic strait, too, as it views Taiwan, a democratically-governed territory, as its own. Both Taipei as well as Washington deny this claim.
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Taiwan says China's order to control traffic in the Taiwan Strait when a typhoon hits is 'ridiculous.'
Taipei has called China's attempts to implement traffic controls on ships heading into the Taiwan Strait when Typhoon Dolphin hits "ridiculous". Beijing does not have any right to restrict access to international waters. China, which claims democratically governed Taiwan as its territory, also claims a strategic strait that is used by billions of dollars in trade every year. Both Taipei, and Washington, reject this claim. Chinese state media announced on Wednesday that, due to the approaching typhoon and starting Thursday night, all ships entering the Taiwan Strait from the south must adhere to traffic control measures. It said that all vessels must adhere to the requirements, select'safe waters to shelter against the storm and follow the instructions given by the maritime management authorities on site to ensure safety at sea. The statement made by the relevant Chinese Communist department reflects ignorance, disregard and a violation of international norms and order. It's utterly absurd!" In a late-Friday statement, the Taiwan Mainland Affairs Council stated that it was utterly ridiculous! The Chinese Communists should not interfere in Taiwan's internal affairs, it said. Taiwan's Coast Guard released a statement at the same time stating that it had not detected "abnormal movement" by Chinese vessels nor had any shipping company reported "broadcast interference". The Coast Guard said that merchant and cargo ships passing through the area should ignore any Chinese broadcasts and report incidents immediately. The typhoon will make landfall on China's east side late Saturday or early Sunday. China's military?operates almost every day in the Strait. Taiwan's government rejects Beijing’s claims of sovereignty, saying that only the island's citizens can decide its future. (Reporting and editing by Edwina G. Gibbs; Ben Blanchard)
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US Postal Service reports $2.5 billion quarterly loss
U.S.?Postal Service announced a $2.5 billion loss for?the third fiscal quarter. This is nearly $600 millions less than the same quarter last. They also urged Congress to take a number of?actions?to address their mounting financial crisis. U.S. postmaster general David Steiner has said that legislation passed by the Senate to add dozens new ZIP codes will cost the cash-strapped USPS $800 million. He also said the agency wants approval for a new stamp price increase in January, rather than wait until July 2027. Steiner stated that without the action of?Congress in this year's budget, "our plans will certainly include changes to service, such as taking a look at service levels, closing thousands unprofitable postal offices and raising prices." He warned in June: "We are running out of money." Steiner stated that we are borrowing money from the?retirement fund of our employees to continue operating. He urged Congress to compensate for its losses and implement other reforms. USPS hired restructuring advisors in March to address its financial problems. Steiner stated that the key question was whether USPS should deliver to 170 millions addresses six days per week. This costs $3.4 billion annually and 70% of these routes are losing money. Around 58% of the 18,000 Post Offices in the USPS also lose money. The Postal Service has suffered net losses in excess of $120 billion over the past decade. This is because the most profitable product - first class mail - has declined sharply due to the move towards digital communication, while the agency still has to maintain expensive nationwide delivery operations. USPS announced in May that it would suspend non-essential spending on travel, office products and consultants. Postal Service announced in May that it would suspend payments to employers for a federal pension plan and raise the price of stamps for first-class mail from 78 cents to 82, starting July 12. By suspending employer pension contributions, you can save up to $15 billion by 2030. (Reporting and editing by Chris Reese, Aurora Ellis and David Shepardson)
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Russia dismisses German drone incident as 'fabricated provocation'
The Russian Embassy in Berlin on Friday dismissed a suspected 'drone attack' at a major German?air?freight hub as a "fabricated provocation", saying that it was yet another example of accusations made against Russia without any evidence. The?embassy expressed its concern over a new wave in anti-Russian hysteria that has swept Germany, according to a statement posted on the website of its German and Russian versions. The German Federal Prosecutors launched an investigation this week on what they described as a serious incident that could have affected foreign and domestic security. The drone was discovered late Tuesday night at the Leipzig/Halle Airport, an important civilian freight and NATO logistic hub in eastern Germany. It is also home to several giant An-124 aircraft operated by Ukraine’s Antonov Airlines. According to prosecutors, the?drone had?explosives as well as a detonator. A cargo plane, which was performing a go-around because of a runway closure at the airport, collided with what prosecutors believe to be another drone. The jet operated by logistics company DHL?suffered minor damage and was ultimately diverted to Hanover, in northern Germany. German officials and government members have not publicly blamed foreign countries for the incident. However, some legislators have pointed the finger towards Russia, who launched a full scale invasion of Ukraine in 2022. The?Russian Embassy said that it was "clear" that the hastily-fabricated provocation served only the interests of Kyiv, and the militarist side of the European political classes. In the past, German officials have often blamed Moscow on what they called hybrid attacks -- incidents of aggression which do not amount to war. Reporting by Thomas Seythal, Editing by Alistair Bell
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Senate confirms Trump's pick to oversee TSA, as administration pushes for private airport security
?The U.S. Senate voted Friday to confirm a Serco senior vice-president, David Cummins, as head of the 'Transportation Security Administration, in response to the 'Trump administration's push to privatize screeners at smaller airports. Cummins, along with dozens of nominees, were confirmed by a vote of 51-47. These included members of the Consumer Product Safety Commission and the National Transportation Safety Board, as well as Christopher Phelan, who will chair the Whitehouse Council of Economic Advisors, and Cameron Hamilton, who will head the Federal Emergency Management Agency. In April, President Donald Trump proposed cutting 9,400 employees and $1.5 billion or 20% of the annual budget for the TSA, which has 60,000 employees. Serco provides engineering, IT and training services for federal, state and local governments as well as commercial clients. Trump proposed that smaller airports be required to use private security. This would reduce the TSA's payroll by over 4,500 jobs, and is a step towards privatizing the agency, which was created in the wake of the 9/11 attacks. Recently, airports in Tampa and Des Moines, Iowa as well as Charleston, South Carolina announced that they plan to privatize airport security. Around?20 airports have been using private security screens for years, including those located in San Francisco and Kansas City. Trump sacked TSA chief?David Pekoske in 2025 on his first day as president and did not nominate a successor for 16 months. Pekoske was nominated by Trump during his first term, and Joe Biden had?nominated for a second 5-year term. The long government shutdown in the spring of this year forced 50,000 TSA employees to work without pay for six full weeks. This led to major disruptions including airport security lines that lasted four hours or more. Airlines for America, the organization that represents the?major U.S. carriers, has stated its opposition to the White House proposal that smaller airports be required to use private security screening instead of TSA. (Reporting and editing by Nia William, Alistair Bell and David Shepardson)
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After the Texas data center shutdown, hundreds of millions of dollars in grid deposits are still in doubt
Interviews with over a dozen data center companies and attorneys reveal that after spending tens or even hundreds of millions to connect to Texas' grid, companies in the Lone Star State are now at risk of losing their deposits if they don't have a way to power their server warehouses. The Texas Governor Greg Abbott's decision to halt data centers this week has put the future of artificial intelligence infrastructure in one of the fastest-growing markets on the planet into doubt. Those with data center plans are now forced to decide whether they want or need their projects, which can be multi-billion dollar projects. Abbott's directive calls for audits of proposed data centers in the state, which would require more electricity than is required to power the entire U.S. South. The governor did not give a timeline for completing this audit, despite claiming that it was to protect "Texans’ safety and quality-of-life". The state grid operator paused its newly-established program, Batch Zero, to study and decide whether or not to connect data centres to the electrical network, following the announcement by the governor. According to Butler Snow, in order to be considered for Batch Zero, a number of data center projects had to provide $50,000 as security for every megawatt their grid-connected project. Data center projects are paused ahead of the September meeting of state regulators, which may result in an increase in nonrefundable data center interconnection deposit amounts. According to data center companies, and their lawyers, an early draft of the Public Utility Commission of Texas' rule would change the nonrefundable portion of data center deposits from 20% to 80%. However, these figures are not yet finalized. Texas is expected to surpass Virginia by 2030 as the largest hub for data centers in the world. This is due to its land, abundant power and business-friendly climate. Some companies have already invested more than $100,000,000 in projects announced by the state. This money could be non-refundable under the new PUC rules that may take effect next month. John Crossley, managing partner of corporate law firm K&L Gates?that advises on data center projects, said: "The rub is that no one knows how long it will take." The Governor's Office did not reply to a further request for comment. His directive comes in response to a?increasing amount of scrutiny on data centers that?are used as cloud storage and artificial-intelligence compute and their impact on the electrical grid. Grid operator ERCOT reported in June that they were tracking over 400,000 megawatts in proposed data center capacity seeking to connect. However, it is unclear how much total deposit was collected for Batch Zero. Multiple other transactions - including land leases - which lay the foundations for major data centre projects to be realized are dependent on project approvals via the Batch Zero Process, putting these projects at risk. Data center companies and their supporters?say that they want more guidance on how to proceed from the?state, but there is not a rush to cancel projects. Cameron Poursoltan is the director of energy policy for the Data Center Coalition in Texas, a trade association with around 50 members.
Radev, Radev: Bulgarian airspace was affected by a drone explosion
In a statement released by the Bulgarian Prime Minister, Rumen Radev, he said that a drone had entered Bulgarian airspace via Romanian airspace and exploded near the village of Kardam.
He said that the drone had entered Bulgarian airspace around 0810 local time (0500 GMT). It then landed in a field of sunflowers near the border to Romania.
The explosion'site' is located 1,000 metres (3,281 ft.) away from Bulgaria's compression station on the 'Trans-Balkan Gas Pipeline', which stretches between Turkey and Ukraine. It's also 200 meters from Romania's 'compressor'station.
Western governments are increasingly linking drone incursions to the Russia-Ukraine conflict. This has increased the frequency of these attacks and prompted NATO members to beef up their security measures.
Radev stated that the surveillance and security along the Bulgaria-Romania border will be enhanced.
He said that the site of the explosion was cordoned off, and that the exact type of drone would be determined after the remains of the drone and the site are examined.
Radev said that it was confirmed by the fact that drones are still difficult to detect and identify. Radev also noted that the delivery of high-precision Radars to the Bulgarian Army had been delayed and vowed to take action. Reporting by Renee Maltezou, Stoyan Nennov and Philippa Fletcher; editing by Barbara Lewis and Philippa Lewis
(source: Reuters)