International News 04/10
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Warren Buffett has sold US$338 million worth of BofA shares in response to a reduction in expenditure.
Warren Buffett, a prominent investor, has proceeded with the sale of Bank of America shares for the third time, resulting in some of the lowest prices since he initiated the liquidation process in mid-July. Berkshire Hathaway has realised $338 million from this week's sale, which represents a significant drop from the average of $750 million per round over the past few months. The average price obtained was $39.40, representing a decline from previous trading days. The rationale behind the sale remains unclear. However, it is notable that Buffett's Berkshire still holds the largest stake in Bank of America, with 10.2% of shares valued at over $31 billion. The repeated sales have prompted questions about the bank's future direction. They could indicate greater risk or uncertainty in the financial markets or the bank's performance.
Oil market faces a rude awakening if Iran’s energy infrastructure is targeted.
Analysts have cautioned that oil markets are underestimating the risk of significant supply disruptions in the Middle East, with one forecasting that oil prices could reach over $200 a barrel. The possibility of Israel launching a retaliatory strike against Iran's oil infrastructure is a cause for concern, given Iran's status as a key player in the global oil market. Any disruption to its oil exports could have a significant impact on the world's oil supply, representing up to 4% of the global total. Bjarne Schieldrop, chief commodity analyst at SEB, has highlighted the potential consequences of rising tensions in the Middle East, suggesting that if Iran's oil installations were targeted, oil prices could exceed $200.
Sterling plunges more than 1% against the dollar, euro.
The British pound saw a notable decline against both the US dollar and the euro following remarks by Bank of England Governor Andrew Bailey suggesting the possibility of more aggressive interest rate cuts due to positive inflation data. The pound's value against the dollar declined by 1.17%, representing the largest drop in over 20 months, and settled at $1.3112. Despite recent highs following the Bank of England's September monetary policy meeting and the Labour Party's general election victory, concerns have arisen about the upcoming budget announcement and its potential impact on UK assets. Furthermore, the pound saw a 1.1% decrease against the euro, reaching its lowest point since 20 September.