International News 10/09
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Volvo cuts targets again this year.
Volvo Cars, the Swedish automaker majority-owned by China's Geely, has revised its profit margin and revenue targets for the second time this year. The decision follows the company's encounter with obstacles posed by tariffs and a decline in demand for electric vehicles. The lack of affordable electric car models and the impact of tariffs imposed by the EU, US and Canada on Chinese-made electric cars have created challenging market conditions for automakers. Volvo Cars has revised its operating profit margin target to 7-8% and cancelled its sales target of 550 billion-600 billion Swedish crowns ($53.5 billion-$58.4 billion). Nevertheless, the company anticipates exceeding the premium car market. In a statement, CEO Jim Rowan indicated that the revised targets reflect the increased complexity of global trade and tariffs. This is the second time in a year that Volvo has revised its targets in response to changes in the automotive industry.
https://internasional.kontan.co.id/news/volvo-kembali-pangkas-target-margin-dan-pendapatan-tahun-ini
Warren Buffett sells Bank of America shares, making a profit of US$7 billion.
Warren Buffett's company, Berkshire Hathaway Inc., has been gradually divesting its holding in Bank of America Corp. since mid-July, with total proceeds to date amounting to $6.97 billion. In its latest regulatory filing, Berkshire Hathaway revealed that it has sold $760 million worth of shares in a matter of days. Notwithstanding these divestments, Berkshire Hathaway continues to be the largest shareholder in Bank of America, with an 11% stake, valued at approximately $34.7 billion. However, should the share sales persist, Berkshire Hathaway's stake may fall below the 10% regulatory threshold, resulting in a change to the transaction reporting rules. The company would only be required to report share sales within a few days if its stake exceeds 10%. However, should it fall below this limit, Buffett may choose to wait until the end of the quarter to disclose the full transaction. The recent changes to Berkshire Hathaway's portfolio indicate a shift in the company's investment strategy.
Indian Rice Prices Fall to 3-Month Low on Weak Export Demand
The price of Indian rice for export has reached a three-month low due to weak demand, while the price of Thai rice has risen to its highest level since late June. The price of Indian parboiled rice with 5% breakage has reached a new low of $535-$540 per tonne, down from the previous record set on 16 May. Indian exporters are adjusting their prices to remain competitive, but demand remains low. Farmers and millers are requesting that Indian authorities consider lowering or removing the basmati rice export floor price to stimulate overseas sales and prevent an oversupply. In contrast, Thailand's 5%-damage rice price saw a slight increase to $585 per tonne, driven by a stronger baht. It is anticipated that the African market will remain relatively inactive, although supplies in November are expected to be sufficient due to favourable water levels.