International News 05/08
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Berkshire Hathaway continues to cut its stake in Bank of America
Warren Buffett's company, Berkshire Hathaway, has continued to sell its shares in Bank of America for the ninth consecutive day, with sales totalling 18.4 million shares worth $767 million. This has resulted in a reduction of its holding by 71.2 million shares, representing a value of over $3 billion. Notwithstanding these sales, Berkshire continues to hold 961.6 million Bank of America shares with a market value of approximately $39.5 billion. However, should the sales continue, Berkshire's position as the second-largest shareholder could be overtaken by American Express, which is currently valued at $37.6 billion. Berkshire continues to hold the largest stake in Bank of America, representing 12.3% of the company. As the holder of over 10% of the company's shares, Berkshire is obliged to report any share transactions within two business days. Warren Buffett initially invested $5 billion in Bank of America in 2011, following the financial crisis. By the end of March 2024, the value of Berkshire's stake was approximately $39.2 billion.
Germany's Unemployment Rate Higher than Analysts Expect
The number of unemployed individuals in Germany increased by a greater amount than anticipated in July, which is seen as a reflection of the challenges currently facing the country's economy. The latest data from the Federal Labour Office shows that the number of unemployed people in Germany has risen by 18,000, reaching 2.8 million. This is above the projected increase of 15,000. The seasonally adjusted employment rate remained at 6.0%. The weaker economic conditions are said to be impacting the labour market, with unemployment and underemployment rising above the usual levels at the beginning of the summer holiday period. Germany's economy has encountered difficulties in recovering following a number of challenging factors, including elevated energy costs, weak global orders and record-high interest rates. The economy unexpectedly contracted in the second quarter, further exacerbating the country's economic situation. While the robust labour market has helped maintain economic resilience in recent years, it has not been enough to prevent a decline in private consumption. The upward trend in bankruptcies and a reduction in hiring plans are viewed as positive indicators for the economy.