International News 19/02
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Berkshire Hathaway, the company owned by Warren Buffett, has sold 10 million shares of Apple.
In late 2023, Berkshire Hathaway, led by investor Warren Buffett, sold 10 million shares of Apple stock, reducing its approximately 1% stake in the company. This sale is notable as Buffett typically holds stocks for long periods of time. Berkshire Hathaway announced the reduction in their Apple position in a regulatory filing. Despite the sale, Berkshire still holds over 905 million Apple shares, worth approximately $174 billion. This accounts for around 6% of Apple's overall shares and a fifth of Berkshire's entire investment portfolio. The decision to trim the position suggests that Berkshire Hathaway lacks strong conviction in holding Apple stock for the long term.
Germany has replaced Japan as the world's third-largest economy.
Japan has fallen into a recession, losing its position as the world's third-largest economy to Germany. The country's central bank's plans to end its ultra-loose monetary policy have been thrown into doubt. Analysts predict another economic contraction this quarter due to weak demand from China, sluggish consumption levels, and production halts at Toyota Motor Corp's units. The primary concerns are the low levels of consumption and capital investment, which are the main drivers of domestic demand. According to government data, Japan's gross domestic product (GDP) fell 0.4% on an annualised basis in the October-December period, following a 3.3% decline in the previous quarter. This failure to meet market forecasts of a 1.4% increase has resulted in a technical recession, as two consecutive quarters of contraction are usually considered as such.
The UK economy has slipped into a recession, presenting a difficult challenge for Rishi Sunak.
In the latter half of 2023, the UK economy entered a recession, posing a challenge for Prime Minister Rishi Sunak, who aims to stimulate growth ahead of the upcoming elections. Official data indicates a 0.3% contraction in the country's GDP in the final quarter of the year, which is worse than the anticipated decline of 0.1%. The weaker GDP figures have caused the pound to weaken against the dollar and euro, while investors anticipate the possibility of the Bank of England reducing interest rates. Businesses are calling for more government assistance in the upcoming budget plan. Alex Veitch, the Director of Policy and Insight at the British Chambers of Commerce, emphasized the need for the Chancellor to provide a clear path for economic growth in the budget. Treasury Secretary Jeremy Hunt acknowledged signs of improvement in the economy but did not provide further details.