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(Bloomberg) -- Warren Buffett’s $9.7 billion bet on natural gas looks even more contrarian today.As Democrat Joe Biden unveils a staggering $2 trillion clean-energy plan—the most ambitious climate package ever offered by a presumptive presidential nominee—Buffett’s recent deal to buy Dominion Energy Inc.’s natural gas assets is a stark sign he’s expecting that the market’s shift away from fossil fuels won’t happen overnight.The deal is “a bet that the future doesn’t come as fast as some people think,” said Jim Shanahan, an analyst who covers Buffett’s Berkshire Hathaway Inc. at Edward Jones. “I think they want to be bigger in renewables, but it’s going to take time. In the meantime, they have to be able to provide power generation to their customers.”On its face, Berkshire’s deal last week to buy gas assets including some 7,700 miles of pipelines seems risky even for a contrarian like Buffett. The energy industry is under increasing pressure from...
(Bloomberg Opinion) -- The Covid-19 pandemic may have hurt the economy, but for technology stocks it feels like 1999 again. The Nasdaq Composite Index just reached a record high having rebounded about 50% from its low of the year in March. The stock market is not the economy, but it does feels strange for stocks to be soaring in the middle of a deep recession.The difference is timescale: stock prices represent revenue and earnings very far out into the future, not today. If plans for new technology are sound, the outlook can still look bright even though the present seems gloomy. The rationale for sky-high valuations for tech stocks in the late 1990s also came from projected profits in the decades to come. These so-called concept stocks won investors through a compelling story about future potential, even though the company in the near term would generate little-to-nothing in terms of real...
(Bloomberg) -- Stocks fell with U.S. equity futures on Thursday as investors parsed mixed economic data from China and waited for guidance from the European Central Bank over its bond buying program.The Stoxx 600 Index tracked Asian shares lower after Chinese retail sales in June came in softer than expected. Nasdaq 100 futures slumped, with Twitter Inc. falling 6% in the pre-market after accounts of some of America’s most prominent political and business leaders were hacked. Tesla Inc. dropped in early trading.The euro fluctuated and regional bonds were mixed ahead of the ECB’s policy decision, where it’s expected to keep its emergency bond-buying program unchanged but will likely face questions over whether the current level of support is sufficient.The slump in tech shares and the reminder of the long road ahead to a full global recovery is quashing optimism seen earlier in the week spurred by progress in developing a coronavirus...
Shares in Dell Technologies (DELL) surged 7% in pre-market trading as the PC maker said that it is considering a spin-off of its 81% stake in cloud computing software maker VMware Inc. (VMW), which could unlock value for shareholders.The stock soared to $56.40, while VMware rose 1.9% to $142.40 in Thursday’s early market trading. Dell said that a divestment could benefit both Dell and VMware shareholders by simplifying capital structures and creating additional long-term enterprise value. A potential spin-off is not expected to occur before Sept. 2021 and would qualify to become tax-free for U.S. tax purposes.If the PC maker decides to pursue a spin-off, it would set up a special committee to negotiate mutually beneficial commercial arrangements, including intellectual property agreements. In that event Dell would seek to negotiate the payment of a special cash dividend by VMware that would be paid on a pro rata basis to all VMware shareholders."For...
Alibaba Group Holding Ltd's subsidiary UC Web is slashing staff in India after a ban on 59 Chinese-origin mobile apps that includes UC Web's browser and two other products, according to staff and a company letter seen by Reuters. India last month outlawed the apps following a skirmish between Indian and Chinese forces on a disputed stretch of Himalayan border in which 20 Indian soldiers were killed. It said the apps threatened India's sovereignty and security and its tech minister described the ban as a "digital strike"....
(Bloomberg) -- Oil retreated from its highest close in four months after the OPEC+ alliance confirmed it would start tapering output cuts from next month.Futures in New York dropped below $41 a barrel. Saudi Arabia and Russia said the producer bloc would proceed with its plan to add more supply next month and were confident that it wouldn’t hurt oil’s rally, with the tapering to be offset by extra cuts from countries that didn’t meet their targets.Oil was also under pressure from a drop in equities in Europe and Asia. That was despite figures that showed China’s economy returned to growth and expanded more than forecast last quarter.The recovery in China is in stark contrast to other corners of the globe, where the coronavirus continues to rage out of control. That’s leading to a patchy rebound in crude, though there are pockets of strength in some parts of the oil market,...
(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. raised its outlook for 2020 revenue and spending, counting on global 5G smartphone and high-end computing demand to stay strong despite growing signs of a second coronavirus wave.Apple Inc.’s main iPhone chipmaker is now projecting more than 20% growth in sales, up markedly from an earlier forecast for a mid- to high-teens percentage rise. It expects to spend $16 billion to $17 billion on technology upgrades and expansion this year, up about $1 billion.TSMC, a bellwether for the industry because of its critical role in crafting silicon for everything from mobile devices to high-powered computers, raised both forecasts after June-quarter profit beat analysts’ estimates by the widest margin in six years, surprising analysts who’d factored in a hit from the pandemic and U.S. curbs on No. 2 customer Huawei Technologies Co.Taiwan’s largest company is betting on 5G smartphone demand to take off during coronavirus lockdowns,...
