International News 04 August 2025
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Berkshire Hathaway Posts $3.76 Billion Write-Down on Kraft Heinz, Operating Profit Slips Amid Market Uncertainty
Berkshire Hathaway recorded a $3.76 billion post-tax write-down on its Kraft Heinz holdings in Q2 2025, reflecting ongoing struggles at the food giant and increasing market skepticism. The Warren Buffett-led conglomerate also reported a 4% decline in operating profit to $11.16 billion, driven by lower insurance premiums and weaker consumer business performance, including a 38.5% revenue drop at Jazwares. Overall net earnings plunged 59% to $12.37 billion, while cash reserves swelled to nearly a record $344.1 billion as Berkshire continued its cautious approach, selling more stocks than it bought for the 11th straight quarter. The write-down on Kraft Heinz came after the company announced potential strategic alternatives, including a possible split, as it grapples with shifting consumer preferences and weak brand performance. Buffett acknowledged the initial 2015 Kraft-Heinz merger was a costly misstep. Meanwhile, despite holding a $5.3 billion unrealized gain on Occidental Petroleum, Berkshire opted not to mark it down. Analysts noted investor frustration over lackluster results, no recent share buybacks, and an impending management transition as Buffett prepares to step down by year-end, placing Berkshire at what CFRA’s Cathy Seifert described as a “critical juncture.”
Swiss Signals Readiness to Revise Trade Offer Amid US Tariff Threats
The Swiss government has expressed its willingness to revise its trade proposal to the United States after President Donald Trump announced a steep 39% import tariff that could significantly impact Switzerland’s economy. Economy Minister Guy Parmelin stated that such a high tariff—one of the most aggressive under Trump’s new trade policies—caught Swiss officials by surprise and could threaten tens of thousands of jobs. A special cabinet meeting is scheduled to address the next steps, including the possibility of increasing Swiss imports of U.S. LNG or boosting Swiss investment in America to reduce the $48 billion trade deficit. President Trump reportedly viewed previous tariffs as insufficient and emphasized his dissatisfaction with the current trade imbalance. While Swiss leadership remains open to further dialogue—even willing to travel to Washington—economists warn of potentially severe consequences. ETH Zurich’s Hans Gersbach estimates that the tariffs could shrink Swiss GDP by 0.3%–0.6%, and over 1% if pharmaceutical exports are targeted. With risks of a recession mounting, analysts expect the Swiss National Bank may respond with a 25 bps rate cut in September to counter economic and deflationary pressures.
https://internasional.kontan.co.id/news/swiss-siap-revisi-tawaran-dagang-ke-as-terkait-tarif-trump
Trump to Nominate New Fed Governor, Signals Possible Shake-Up at Central Bank
U.S. President Donald Trump announced he will soon nominate a replacement for Federal Reserve Governor Adriana Kugler, who resigned early, creating an opportunity for Trump to shape the central bank’s leadership. Known for his sharp criticism of the Fed’s policies, Trump reiterated his dissatisfaction with current interest rate levels, which he considers too high. Meanwhile, New York Fed President John Williams stated he would approach the September policy meeting with an “open mind” regarding potential rate cuts. In a separate interview, Trump hinted at replacing Fed Chair Jerome Powell once his term ends in seven to eight months, unless doing so would destabilize markets. While suggesting Powell would likely serve out his term, Trump made it clear he intends to appoint a new chair afterward. These developments come amid heightened political pressure on the Fed, as monetary policy becomes a key issue ahead of the 2026 election cycle.