In today’s top stories, Berkshire Hathaway only added to three existing positions in the fourth quarter, while reducing its holding of Taiwan Semiconductor Manufacturing Company by 85%. Elsewhere, Barclays has underlined the pre-eminence of Tesla in the global electric vehicle (EV) space, while defence giant Babcock has secured a major contract to manage the British military’s satellite communications system. Chinese stocks have received five consecutive weeks of inflows on the back of the country’s reopening, while Tata’s Air India has ordered 470 aircraft with an estimated value of over $60bn.
Berkshire Hathaway slashes TSMC stake
Warren Buffett is known for putting his cash to work when the markets are fearful, but Berkshire Hathaway [BRK-B] only added to three existing positions in the fourth quarter, according to the latest 13F filing. Its Apple [AAPL] holding increased by less than 1%, Paramount [PARA] by 3%, and Louisiana-Pacific [LPX] by 22%. The firm slashed Taiwan Semiconductor Manufacturing Company [TSM] by 86%, and overall bought fewer shares than it sold.
Barclays names Tesla as EV leader
Elon Musk has pushed back naming Twitter’s new CEO until the end of the year, something that the Street won’t want to hear, according to Wedbush’s Dan Ives. Nevertheless, Tesla [TSLA] has a “clear lead in both the global EV transition and the emergence of the software defined vehicle”, according to a Barclays [BARC.L] analysis seen by CNBC.
Babcock wins major MoD contract
Defence giant Babcock [BAB.L] has won a £ 400m contract to operate the UK military’s Skynet satellite communications system for six years. “Space is increasingly important for maintaining battlefield advantage”, the UK’s defence procurement minister Alex Chalk said in a press release. The contract is one aspect of a £6bn program to bring battlefield communications to British and allied forces worldwide. The system is expected to reach operational status by March 2024.
Correction risk for Chinese equities
Chinese stocks have received five consecutive weeks of inflows on the back of China’s reopening, reported the Wall Street Journal. However, Chinese stocks in Hong Kong could be on the verge of a correction, with the Hang Seng China Enterprises Index having fallen more than 9% from its 27 January peak, reported Bloomberg. Banny Lam, research head at CEB International, says that investors are clearly taking profits as they wait to learn more about the economy’s direction.
Air India buys Airbus and Boeing aircraft
Air India, which Tata [TATAMOTORS.BO] bought from the country’s government over one year ago, has announced an order of 470 aircraft from Airbus [AIR.PA] and Boeing [BA] with an estimated value of over $60bn. The new aircraft will contribute to modernising and transforming the carrier’s fleet, and help it to compete on a global scale. Mark Martin, an aviation analyst, told the BBC that, to him, “it looks like a big game plan to counter the dominance of Gulf carriers”.
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