Berkshire Hathaway Q2 Earnings, Iran: Hormuz Deal Close, More

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Bloomberg News Now 7 min 10 speakers 7 chapters transcribed 1 month ago
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What is Bloomberg News Now and who is hosting this episode?

Barry Ritholtz 0:00
Hi, I'm Barry Rittholz, inviting you to join me for the Masters in Business podcast. Every week, we bring you conversations with the people who shape markets, investing, and business. I speak with CEOs, Nobel laureates, market innovators, and legendary investors. Whether you own stocks, bonds, real estate commodities, even crypto, these are discussions you absolutely need to hear. Subscribe to The Masters in Business Podcast on Apple, Spotify, or anywhere you listen.
Ed Kalecki 0:31
News when you want it. With Bloomberg News Now, I'm Ed Coleggi.

How did Berkshire Hathaway’s Q2 earnings and share buyback compare to previous quarters?

Ed Kalecki 0:35
Berkshire Hathaway released earnings Saturday, which showed the company spent about four and a half billion dollars to buy back its own shares in the second quarter, providing shareholders with the largest quarterly payout since twenty twenty one. Bloomberg's Matthew Palazzola says operating earnings also surged sixteen percent in the three months through June.
Matthew Palazzola 0:54
Earning, but I think uh some of the gains they're making are sustainable. So I think he's looking at that a little bit better. Burlington Northern, the railroad, he's got his eyes on that. He called them out at the annual meeting. He said they're gonna improve their margins there. So I think the underlying earnings power of those businesses are improving. They have tons of cash. So I think he's putting some of it to work.
Ed Kalecki 1:13
Bloomberg's Matthew Palazzola, the firm's cash pile fell to $365.5 billion in the second quarter, as its net purchases of equities reached nearly $20 billion.

What progress has Iran made on a temporary maritime transit route through the Strait of Hormuz?

Ed Kalecki 1:23
Iran says it's very close to a deal with Oman on a new maritime transit route in the Strait of Hormuz, even as the Islamic Republic renewed a list of demands for the US to agree to. Before the waterway would open, Iranian Foreign Minister Abbas Arachi said Saturday that negotiators are closing in on a temporary maritime transit route for ships entering and exiting the Persian Gulf. Cautioned that any agreement won't result in an immediate reopening of the straight. signalling that any respite for energy supplies may be limited. Besides compensation, Iran wants the US to lift the naval blockade and withdraw military forces from around Iran, remove US sanctions on Iran and unconditionally release frozen assets, among other things.
Ed Kalecki 2:06
In an interview with Fox News, Vice President J.D. Vance says that the US is currently in the middle of the game regarding the conflict with Iran, noting that some progress has been made in recent talks.
J.D. Vance 2:18
Right now we're trying to see if they're willing to make the kind of long term changes that would be necessary to have a better relationship with the United States, and if not, uh that's fine too. We're just gonna keep on applying the pressure that we can apply and getting as much oil and gas out of the Middle East so that Americans can enjoy lower gas and energy prices.
Ed Kalecki 2:38
The U.S. Senate confirmed Todd Blanche's attorney general, elevating President Trump's one-time personal defense lawyer to lead the nation's top federal law enforcement agency. Republicans closed ranks and supported Blanche in a 50 to 49 vote, even after two GOP senators joined Democrats in opposition. Republican Senator Bill Cassidy of Louisiana, one of the holdouts, came out in support of Blanche.

How is the U.S. Army changing access to test ranges for defense contractors?

Ed Kalecki 3:01
After Senators Susan Collins of Maine and Lisa Murkowski of Alaska voted against him. Army Secretary Daniel Driscoll says the US Army is aiming to make it easier for defense firms to get access to military test ranges to experiment with critical weapons technology in the latest effort to shake up Pentagon procurement and replenish stockpiles drained by the war against Iran. Secretary Driscoll spoke with Bloomberg Television's Tyler Kendall.
Daniel Driscoll 3:27
When we slow things down in the innovation loop by twelve or eighteen months at a time, that is just bad for soldiers, it's bad for taxpayers, and it's bad for companies. And so what we're announcing today is basically a new front door to access all of the US Army's or many of the US Army's ranges. We're layering in international partners, we're gonna give concierge access and we are going to aspire to get these companies onto our range within thirty days every single time.

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