PRESS RELEASE. Dubai, April 12, 2024: The Global Blockchain Show is pleased to announce Global Market of Artification (GMA) as its diamond sponsor at the upcoming two-day conference, set to take place at the Grand Hyatt, Dubai. Artworks by renowned masters like Rubens and Rembrandt will be featured at the event. With the inclusion of […]
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The Bank of England in the City of London, after figures showed Britain’s economy slipped into a recession at the end of 2023.
Yui Mok | Pa Images | Getty Images
LONDON — The Bank of England is widely expected to keep interest rates unchanged at 5.25% on Thursday, but economists are divided on when the first cut will come.
Headline inflation slid by more than expected to an annual 3.4% in February, hitting its lowest level since September 2021, data showed Wednesday. The central bank expects the consumer price index to return to its 2% target in the second quarter, as the household energy price cap is once again lowered in April.
The larger-than-expected fall in both the headline and core figures was welcome news for policymakers ahead of this week’s interest rate decision, though the Monetary Policy Committee has so far been reluctant to offer strong guidance on the timing of its first reduction.
The U.K. economy slid into a technical recession in the final quarter of 2023 and has endured two years of stagnation, following a huge gas supply shock in the wake of Russia’s invasion of Ukraine. Berenberg Senior Economist Kallum Pickering said that the Bank will likely hope to loosen policy soon in order to support a burgeoning economic recovery.
Pickering suggested that, in light of the inflation data of Wednesday, the MPC may “give a nod to current market expectations for a first cut in June,” which it can then cement in the updated economic projections of May.
“A further dovish tweak at the March meeting would be in line with the trend in recent meetings of policymakers gradually losing their hawkish bias and turning instead towards the question of when to cut rates,” he added.
At the February meeting, two of the nine MPC decision-makers still voted to hike the main Bank rate by another 25 basis points to 5.5%, while another voted to cut by 25 basis points. Pickering suggested both hawks may opt to hold rates this week, or that one more member may favor a cut, and noted that “the early moves of dissenters have often signalled upcoming turning points” in the Bank’s rate cycles.
Berenberg expects headline annual inflation to fall to 2% in the spring and remain close to that level for the remainder of the year. It is anticipating five 25 basis point cuts from the Bank to take its main rate to 4% by the end of the year, before a further 50 basis points of cuts to 3.5% in early 2025. This would still mean interest rates would exceed inflation through at least the next two years.
“The risks to our call are tilted towards fewer cuts in 2025 – especially if the economic recovery builds a head of steam and policymakers begin to worry that strong growth could reignite wage pressures in already tight labour markets,” Pickering added.
A key focus for the MPC has been the U.K.’s tight labor market, which it feared risked entrenching inflationary risks in the economy.
January data published last week showed a weaker picture across all labor market metrics, with wage growth slowing, unemployment rising and vacancy numbers slipping for the 20th consecutive month.
Victoria Clarke, U.K. chief economist at Santander CIB, said that, after last week’s softer labor market figures, the inflation reading of Wednesday was a further indication that embedded risks have reduced and that inflation is on a path towards a sustainable return to target.
“Nevertheless, services inflation is largely tracking the BoE forecast since February, and remains elevated. As such, we do not expect the BoE to conclude it is ‘home and dry’, especially with April being a critical point for U.K. inflation, with the near 10% National Living Wage rise and many firms already having announced, and some implemented, their living wage-linked pay increases,” Clarke said by email.
“The BoE needs data on how broad an uplift this delivers to pay-setting, and hard information on how much is passed through to price-setting over the months that follow.”
Santander judges that the Bank could decide it has seen enough data to cut rates in June, but Clarke argued that an August trim would be “more prudent” given the “month-to-month noise” in labor market figures.
This sentiment was echoed by Moody’s Analytics on Wednesday, with Senior Economist David Muir also suggesting that the MPC will need more evidence to be satisfied that inflationary pressures are contained.
“In particular, services inflation, and wage growth, need to moderate further. We expect this necessary easing to unfold through the first half of the year, allowing a cut in interest rates to be announced in August. That said, uncertainty is high around the timing and the extent of rate cuts this year,” Muir added.
For nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been putting on a clinic for Wall Street. Whereas the benchmark S&P 500 has delivered a total return, including dividends, of a little north of 33,000% since the “Oracle of Omaha” took over as CEO in the mid-1960s, Berkshire’s Class A shares (BRK.A) have galloped higher by an aggregate of more than 5,000,000% as of the closing bell on Feb. 28, 2024! An outperformance of this magnitude is going to get you noticed by professional and retail investors.
Warren Buffett’s phenomenal track record is a big reason why there’s a buzz surrounding Berkshire Hathaway every time the company files Form 13F with the Securities and Exchange Commission (SEC). A 13F gives investors an over-the-shoulder look at what Wall Street’s greatest money managers have been buying and selling, and is a required quarterly filing for institutions and investors with at least $100 million in assets under management.
Throughout 2023, the Oracle of Omaha and his investment aides, Todd Combs and Ted Weschler, were very selective about their purchases. One core holding that’s continued to see somewhat regular additions is energy stock Occidental Petroleum (NYSE: OXY).
Accounting for Berkshire’s latest share purchases during the first week of February, Buffett’s company has gobbled up more than 248 million shares of Occidental Petroleum since the start of 2022. That’s a roughly $15 billion position, with $34 billion, in total, devoted to energy stocks, including Berkshire’s position in Chevron.
Having 9% of Berkshire’s invested assets tied up in two integrated oil and gas stocks is a pretty clear message that the company’s brightest minds anticipate crude oil prices will remain elevated for an extended period. With the global supply of oil remaining tight following years of capital underinvestment tied to the COVID-19 pandemic, there’s a real possibility the spot price of crude oil heads even higher.
What makes Occidental Petroleum an intriguing investment in the energy arena is its revenue breakdown. Despite being an integrated operator that generates some of its revenue from downstream chemical plants, Occidental derives the lion’s share of its sales from drilling. If the spot price of crude oil climbs, it’ll benefit more than virtually any other integrated oil and gas company.
Beyond Occidental, we’ve also seen Warren Buffett and his team piling back into satellite-radio operator Sirius XM Holdings (NASDAQ: SIRI). Though radio operators are often highly dependent on advertising revenue to keep the lights on, Sirius XM has an assortment of competitive advantages working in its favor that should help it navigate any economic climate better than terrestrial and online radio companies.
To start with the obvious, Sirius XM is the only licensed satellite-radio operator. While this doesn’t mean it’s free of competition for listeners, it does give the company reasonably strong subscription-pricing power.
What’s arguably even more important with Sirius XM is how the company generates revenue. Whereas terrestrial and online radio providers are reliant on advertising revenue, only 20% of Sirius XM’s sales came from advertising in 2023. Meanwhile, a whopping 77% of Sirius XM’s revenue can be traced to subscriptions. Subscribers are less likely to cancel their service during an economic downturn than businesses are to meaningfully pare back their advertising budgets.
Sirius XM is also historically cheap. Shares are currently trading for a multiple of 13 times forward-year earnings, which is a 32% discount to its average forward-year earnings multiple over the trailing five-year period.
Although Berkshire’s 13Fs have told an interesting story for more than a year — Buffett and his team have been net sellers of equities for the past five quarters — it’s what’s not in Berkshire’s 13Fs that’s an even bigger deal.
Warren Buffett’s favorite stock to buy isn’t Apple, Occidental Petroleum, or any of the nearly four dozen securities currently listed in Berkshire’s quarterly filed 13F. The only way to find this mystery stock that the Oracle of Omaha can’t stop buying is to dig into his company’s operating results. That’s where you’ll find the quarterly share-repurchase activity, because Warren Buffett’s favorite stock to buy is none other than shares of his own company! Don’t you love a good plot twist?
Prior to July 2018, the rules governing Berkshire’s share-buyback program didn’t allow its then-dynamic duo of Warren Buffett and Charlie Munger to get off the proverbial bench. Repurchases could only be undertaken if Berkshire’s share price fell to or below 120% of book value (i.e., no more than 20% above its listed book value, as of the end of the latest quarter). Because Berkshire’s share price never fell to or below this preset threshold, no buybacks were undertaken for years.
On July 17, 2018, everything changed for Buffett, Berkshire, and the company’s shareholders. The company’s board amended the buyback rules to allow their star players to “get in the game.” As long as Berkshire holds at least $30 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet, and Buffett and Munger agreed that their company’s stock was intrinsically cheap, buybacks could commence without a ceiling.
During the December-ended quarter, Berkshire retired 3,623 shares of Class A stock and 660,585 shares of Class B stock (BRK.B) at a total cost of $2,147,823,075! This marked the 22nd consecutive quarter that Buffett’s company has repurchased its own stock, and it brought the grand total of buybacks since July 2018 to more than $74 billion. To put this into context, Buffett and the late Charlie Munger spent roughly twice as much buying Berkshire stock compared to how much they spent purchasing shares of Apple.
Since Berkshire Hathaway doesn’t pay a dividend, share repurchases are the direct way Warren Buffett and his investment team can reward investors who align with their long-term vision. Steadily buying back stock should increase the ownership stakes of the company’s shareholders.
Furthermore, businesses like Berkshire Hathaway that tend to grow their operating income over time should enjoy a hearty boost to their earnings per share as their outstanding share count declines. This is only going to make the stock more attractive to fundamentally focused investors.
Buying back tens of billions in his own company’s stock is also a pretty clear indication that Buffett is betting on himself and the business he, Munger, Combs, and Weschler have built to succeed over the long run.
With a record $167.6 billion in cash on hand and few, if any, values piquing the interest of the Oracle of Omaha and his team, look for repurchases of Warren Buffett’s favorite stock to continue throughout the first quarter (and likely well beyond).
Should you invest $1,000 in Berkshire Hathaway right now?
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Sean Williams has positions in Sirius XM. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Chevron. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
Warren Buffett’s Latest $2.1 Billion Buy Brings His Total Investment in This Stock to More Than $74 Billion in Under 6 Years was originally published by The Motley Fool
Crypto Aid Israel, an emergency relief fund created to support Israeli victims of Hamas terrorism, has received over $185,000 in donations despite suffering a phishing attack.
In an Oct. 19 statement shared with CryptoSlate, Crypto Aid Israel said it had completed two rounds of aid distribution of 200,000 NIS, around $49,000, to various organizations spearheading the relief efforts in the region.
Some of the beneficiaries of the donations include the Foundation for Advancing Citizens of Eshkol Regional Council, Zaka, Latet, and Lev Echad. They are spending the funds on search and rescue movements, securing medical equipment, and providing essential provisions like food and transportation for needy citizens.
Eyal Gura, the New Digital Initiatives advisor to Latet’s board, said:
“The crypto channel is an important, speedy and innovative one and will enable new contributors to join our global ecosystem and support Israel in such an important hour.”
However, the initiative has faced challenges, including a “serious phishing attack” and “a brief disruption” that lasted 30 minutes to its website. It was unclear if any funds were lost to these incidents.
Meanwhile, the initiative revealed it has enjoyed support from more than 30 companies, including accounting giant KPMG, crypto wallet provider Zengo, and Fuse, helping it raise awareness and financial contributions for its cause.
Crypto Aid Israel is a collective led by influential leaders within the Israeli cryptocurrency community. The collective includes organizations like 42Studio, MarketAcross, Collider Ventures, CryptoJungle, Nilos, BlockchainB7, Efficient Frontier, Ironblocks, Israel Blockchain Association, Bits Of Gold and KPMG.
The Aid was launched following a terrorist attack from Hamas on Israelis, resulting in the loss of properties and lives. Critics of the crypto industry highlighted its role in funding such incidents, prompting a broader discussion on the regulation and transparency of digital assets.
As a result, regulators worldwide are clamping down on Hamas’s financial resources. For context, the U.S. government recently sanctioned a Gaza-based crypto broker, Buy Cash, and its operator, Ahmed M. M. Alaqad, for facilitating crypto transactions for Hamas.
Welcome back to The Station, your central hub for all past, present and future means of moving people and packages from Point A to Point B. Kirsten is away, so I’ll be your host this week.
It’s been another week of probes into Tesla that appear to be coming from all sides:
First, let’s start with Autopilot, Tesla’s advanced driver assistance system (ADAS). As part of an ongoing investigation into the ADAS after a series of Teslas crashed into emergency vehicles, the National Highway Traffic Safety Administration (NHTSA) is requesting more info from the automaker. This time, it’s about a software change that allows drivers to use the system for extended periods of time without prompting the driver to place their hands on the wheel. The NHTSA said this could “lead to greater driver inattention and failure of the driver to properly supervise Autopilot.”
Meanwhile, in Tesla’s battery department, federal prosecutors are investigating Tesla’s performance claims after Reuters reported that the EV maker exaggerated the potential driving distance of its vehicles.
And finally, the Elon Musk–owned automaker is reportedly under the microscope from the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) for using company funds to — *checks notes* — build a giant glass house for Musk near Tesla’s Austin HQ.
Have I missed anything?
Before we jump into the news, a little update about TechCrunch Disrupt. Kyle Vogt, CEO and co-founder of Cruise, will be joining us September 20 on the Disrupt Stage in a session called “The Robotaxi Revolution.”
Want to reach out with a tip, comment or complaint? Email Kirsten at kirsten.korosec@techcrunch.com or Rebecca at rebecca.techcrunch@gmail.com.
Reminder that you can drop us a note at tips@techcrunch.com. If you prefer to remain anonymous, click here to contact us, which includes SecureDrop (instructions here) and various encrypted messaging apps.
If you’re into e-bikes, you’ve probably noticed that the new ones are being built with GPS tracking enabled, ostensibly so you can find your bike if someone steals it. But most people aren’t going to track down their bike and confront a potentially dangerous thief, and the police probably have more important things on their plates.
Enter BackPedal, a UK-based startup that’s building a business model around e-bike recovery. Using a network of on-the-ground recovery agents, good relationships with police, and GPS tracking, the company will go and get your stolen e-bike for you.
The business model is a monthly subscription service, starting at £8.99 per month, that also includes insurance in the event that the startup can’t reclaim the bike. But so far, BackPedal boasts a 90% success rate and is working on improving that rate as it grows across the U.K.
Chinese EV startup XPeng will acquire the smart EV assets of ride-hailing giant Didi for $744 million. The Didi assets will become a new sub-brand called “Mona” under XPeng and is scheduled to launch in 2024. There are several reasons why this piqued my interest.
The deal marks Didi’s surrender of its carmaking dream. The firm has been slowly climbing out from under a dark cloud following a series of regulatory crackdowns from the Chinese government, so selling off a money-hemorrhaging EV business was a good way for Didi to focus back on ride-hailing.
The deal might also help XPeng, a Tesla competitor, expand its market reach, particularly if Didi features Mona vehicles as a preferred option for riders.
A partnership between the two companies could boost both XPeng’s autonomous driving technology and Didi’s robotaxi pursuits. In April, Didi said it was working with Chinese carmakers to deploy self-developed robotaxis to the public by 2025. And while XPeng has mainly focused on ADAS, the automaker has been making moves to test its G9 SUV as a commercial autonomous vehicle.
Real quick before we get to the other deals . . .
Chinese startups are beginning to get the OK to sell shares abroad — but they have to adhere to China’s strict new set of rules. Two startups that have surfaced recently are Zeekr, a young yet well-financed EV brand under Chinese auto giant Geely, and WeRide, an autonomous driving startup that’s raised over $1 billion in funding. Zeekr has been given the green light to issue up to 926 million common shares on the New York Stock Exchange (NYSE), and WeRide is allowed to issue 159 million shares on either the NYSE or Nasdaq.
Both the guidance set by Beijing and an agreement by the U.S. to accept auditing of Chinese companies by Chinese accounting firms means there’s now a path forward to IPO abroad. This has led to a slight rebound in Chinese IPOs.
The Biden administration is offering $15.5 billion in funds and loans to spur the EV transition. The money will go toward retooling existing auto factories for electric, hybrid and hydrogen fuel cell vehicles, as well as boosting battery manufacturing domestically.
Bosch’s deal to acquire TSI Semiconductors has gone through, but it’s facing some hurdles. The company said it needs subsidies from the U.S. government to carry out its full expansion plans. California has approved a $25 million tax credit for the factory.
Lyft lead independent director, Sean Aggarwal, bought over $1 million in Lyft shares. The company’s share price rose around 11% in the days that followed.
Redwood Materials, the battery recycling and materials startup founded by Tesla co-founder JB Straubel, raised $1 billion to expand the U.S.’s battery supply chain.
VanMoof, the flashy e-bike startup that declared bankruptcy this summer, has gotten a lifeline. British e-scooter company Lavoie has acquired the business, with plans to invest in the brand and relaunch the business. Sources told TechCrunch that Lavoie paid “tens of millions” of euros for VanMoof.
Ford‘s BlueCruise hands-off ADAS has been approved for use in Germany.
Tesla has dropped the price of its “Full Self-Driving” (FSD) beta software to $12,000, down from $15,000. The EV maker didn’t say why, but I have my suspicions. As other ADAS, like Ford’s BlueCruise, takes off, Tesla could be trying to implement dynamic pricing to stay ahead of the game. But I think it’s more about data. Musk has made no bones about the importance of achieving actual full self-driving, and to do so with only cameras and no lidar or radar will require all the data Tesla can get its hands on. A cheaper FSD cost might incentivize more buyers to install the controversial software.
AB316, a California bill that would ban fully driverless heavy-duty AVs in the state, is getting close to making it to the state’s Senate floor. The California DMV has spoken out, saying the ban will not increase safety and will instead have a chilling effect on the development of technology in California that’s intended to increase safety on roadways.
Cruise is beginning manual data collection in Seattle; Washington, D.C.; and Las Vegas, even as its tech comes under scrutiny in its hometown of San Francisco. This article runs through what that means and lists all the markets Cruise is in today.
Volvo Autonomous Solutions has successfully removed its safety driver in an active commercial mining operation in Norway.
FreeWire Technologies, an EV charging tech company, unveiled an AI-enabled prediction tool to help business and C-store retailer customers to determine the optimal locations to place EV charging stations. The tool will be available across the U.S. and in four Canadian provinces in Q1 2024.
Fisker revealed more details about its Pear crossover EV, but what we found most interesting was the automaker’s confirmation that Foxconn would indeed be building the EV at its Lordstown, Ohio, factory. CEO Henrik Fisker told TechCrunch in August that the deal was still not finalized, and indeed we still have some questions. Like, what other details do Foxconn and Fisker need to hammer out? And how on earth does Fisker think it’ll be able to pull off building a sub-$30,000 EV at a profit?
Mercedes-Benz is opening its first EV DC fast-charging hubs in Atlanta, China and Germany, starting in the fourth quarter of 2023. This is the automaker’s first step toward installing 2,000 charging hubs worldwide by the end of 2024, and 10,000 chargers by 2030.
Tesla has also packed higher-end Model S and Model X features — like ambient lighting and ventilated seats — into the refreshed Model 3.
Apple has filed a patent for an augmented reality heads-up display. Whether or not Apple is actually working on its mythical Apple Car, this product would make good use of the company’s XR tech.
General Motors is using Google’s AI chatbot, Dialogflow, to power its OnStar in-car concierge service. The AI will be able to handle non-emergency requests, like routing, navigation and answering questions about GM vehicles in an oh-so-lifelike way.
Speaking of Google, Google Flights has released a new feature that will help travelers figure out the cheapest time to book. The new insights tool will lean on historical trend data to let consumers see when prices have typically been the lowest to their chosen destination on their selected dates.
Toyota Motor Europe has launched Toyota Open Labs, an innovation platform designed to bring together startups with business units across the Toyota ecosystem. The goal is to help transform Toyota into a mobility company with expertise across energy, circular economy, carbon-neutral tech, smart communities and more.
Rivian has brought on Dr. Kjell Gruner as chief commercial officer and president of business growth. Gruner comes to the table with 25 years of automotive experience, most recently serving as CEO of Porsche Cars North America. He also worked as director of strategy at Mercedes-Benz for six years.
We’re covering all things sustainable mobility at TechCrunch Disrupt 2023, taking place in San Francisco on September 19–21. Last-minute passes are still available. Save 15% with code STATION. Register now!
A Target logo is displayed on the screen of a smartphone.
Sheldon Cooper | SOPA Images | Lightrocket | Getty Images
Target has a new way to speed packages to customers who live in the farther-out suburbs and neighborhoods of major cities, as it tries to give its e-commerce business a jolt.
The big-box retailer said Wednesday that it is testing an extension facility that helps it get online orders to more shoppers the day after they click “buy.” It opened the first one last month in Smyrna, Georgia, about 16 miles northwest of Atlanta, and may open them in other cities.
Drivers from Target-owned delivery service Shipt pick up packages from the extension facility and deliver them to customers’ doorsteps. The drivers are independent contractors, similar to those who deliver for Uber.
The extension facility is part of Target’s effort to offer next-day delivery to more customers. Early this year, it said it would spend $100 million over the next three years to build a larger network of supply chain hubs to support the effort.
More than 96% of the company’s online orders are fulfilled at stores. The retailer has opened supply chain facilities, dubbed “sortation centers,” that then help group those boxes into denser and more efficient delivery routes. It has opened nine facilities and plans to have at least 15 by the end of January 2026.
The extension facility adds to that model and expands the radius for faster deliveries.
Target did not disclose the price of the extension center, but a spokesperson said it is not part of the planned $100 million in supply chain investments. Target said the extension facility will bring next-day delivery within reach of 500,000 more customers near Atlanta. It now can provide next-day delivery to a total of three million people in the Atlanta area.
Target’s push to deliver online orders faster and more profitably comes as its e-commerce sales shrink and shoppers pull back on discretionary purchases. In the most recent quarter, which ended April 29, Target’s digital sales declined 3.4% year over year, mirroring the downward trend seen by Costco, Best Buy, Kohl’s and others. One of its rivals, Walmart, bucked the trend as online sales jumped 27% year over year in the U.S. in the fiscal first quarter.
Plus, in recent weeks, several analysts have downgraded Target’s stock, saying its sales may have peaked during the Covid-19 pandemic. They cited a tougher backdrop for selling apparel and other items that aren’t food or necessities. Those challenges added to blowback Target has faced for including and then later removing some LGBTQ+ merchandise from its Pride Collection.
Shares of the company have fallen about 11% this year, underperforming the 14% gains of the S&P 500. Its stock closed at $132.72 Tuesday, down nearly 30% from its 52-week high.
On a call with reporters in May, Target CEO Brian Cornell said customers are still shopping online. Yet, he added, many items shipped directly to customers’ homes are discretionary merchandise — and those sales have slowed.