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Shares of the five trading firms in Warren Buffett-backed Berkshire Hathaway 's portfolio — Itochu Corp , Marubeni Corp , Mitsubishi Corp , Mitsui & Co , and Sumitomo Corp — have surged, with one rising as much 30% in 2024. These five names are also the biggest of Japan's so-called sogo-shosha, or general trading companies, in which Berkshire placed big bets in 2020 and subsequently increased stakes in later years. Japan's trading houses, which trade in a wide range of products and materials, played a big role in Japan's economic growth. Though it holds Japanese and Chinese equities, it mostly invests in American companies, with Apple, American Express, Bank of America Corp. and Coca-Cola Co forming the bulk of its portfolio. Here are the Asian companies which Berkshire has invested in:
Persons: Warren Buffett, Berkshire Hathaway, Buffett Organizations: Berkshire, Itochu, Marubeni Corp, Mitsubishi Corp, Mitsui & Co, Sumitomo Corp —, Apple, American Express, Bank of America Corp Locations: U.S, Omaha , Nebraska, Berkshire
Leasing giant SMBC places order for 60 Airbus A320neo planes
  + stars: | 2023-11-21 | by ( ) www.reuters.com   time to read: +2 min
The logo of Airbus is seen at the Milipol Paris, the worldwide exhibition dedicated to homeland security and safety, in Villepinte near Paris, France, November 15, 2023. REUTERS/Sarah Meyssonnier/File Photo Acquire Licensing RightsDUBLIN, Nov 21 (Reuters) - SMBC Aviation Capital placed an order for 60 Airbus (AIR.PA) A320neo family aircraft, the world's second largest aircraft leasing firm said on Tuesday, without disclosing the financial details of the deal. Nikkei Asia, which first reported the deal, said it was thought to be worth around $3.4 billion, based on the A320neo's market price. Boeing won new orders for 196 aircraft while Airbus agreed deals for 55 jets amid soaring demand for wide-body planes. "This transaction is further testament of sustained global demand for technologically advanced, fuel-efficient aircraft, and comes amidst the continuing strong recovery in air travel worldwide," SMBC CEO Peter Barrett said in a statement.
Persons: Sarah Meyssonnier, Peter Barrett, Padraic Halpin, Kirsten Donovan Organizations: Airbus, REUTERS, Rights, SMBC Aviation Capital, Nikkei, Boeing, Dubai Airshow, Japan's Sumitomo Corp, Sumitomo Mitsui Financial Group, Thomson Locations: Paris, Villepinte, France, Nikkei Asia
SMBC agrees $3.7 bln deal for 25 Boeing 737 MAX jets
  + stars: | 2023-09-12 | by ( ) www.reuters.com   time to read: +1 min
DUBLIN, Sept 12 (Reuters) - Global leasing giant SMBC Aviation Capital said on Tuesday it had concluded an order for 25 Boeing (BA.N) 737 MAX aircraft in a deal worth more than $3.7 billion at current list prices that would support its growth plans and meet customer demand. SMBC, the world's second largest aircraft leasing firm, said the new planes are scheduled for delivery in 2028 and 2029 and will increase its orders of Boeing's more fuel-efficient MAX jets to 81 aircraft. "Our customers have demonstrated clear long-term demand for the 737 MAX and our expanded order pipeline positions SMBC Aviation Capital for future growth against the background of a strong global recovery in air travel," SMBC CEO Peter Barrett said in a statement. The Irish-based lessor, which is owned by a consortium including Japan's Sumitomo Corp (8053.T) and Sumitomo Mitsui Financial Group , currently owns or manages 65 MAX aircraft, out of a total portfolio of 711 planes. Boeing said last week that it is set to meet targets to deliver at least 400 narrowbody 737s this year despite a recently discovered production flaw that has slowed deliveries of the best-selling 737 MAX.
Persons: Peter Barrett, Padraic Halpin, Jason Neely Organizations: DUBLIN, Global, SMBC Aviation Capital, Boeing, Japan's Sumitomo Corp, Sumitomo Mitsui Financial Group, Thomson
Factbox: China's incumbent and upcoming LNG traders
  + stars: | 2023-08-21 | by ( Chen Aizhu | ) www.reuters.com   time to read: +5 min
A liquefied natural gas (LNG) tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan November 13, 2017. Below is a list of China's main gas traders and their operations globally, according to information from company sources and traders. In May, PCI became the first Chinese firm to gain long-term access to gas storage at a European gas terminal. CNOOC also plans to create a London desk in the coming year or two, following PCI and Unipec. Sumitomo Corp (8053.T), which has a desk to trade piped gas in London is considering expanding into LNG trading, said a company spokesperson.
Persons: Issei Kato, Keith Martin, Wang Bingsi, CNOOC, Norinco, ENN, Chen Aizhu, Yuka Obayashi, Florence Tan, Tom Hogue Organizations: REUTERS, Rights, PetroChina International, PCI, London, Gazprom, China National Offshore Oil Company, Gas Co, ENN, LNG, Beijing Gas, Zhejiang Energy, Zhejiang Energy Zhejiang Energy, Exxon Mobil, Mexico, China Gas Holding, China Gas, JOVO Energy, Privately, SOUTH, Mitsubishi Corp, Marubeni Corp, Tokyo Gas, Korea's SK E, Sumitomo Corp, Thomson Locations: Futtsu, Tokyo, Japan, London, Singapore, Beijing, Dubai, Houston, Sinopec, China, Jiangsu province, ENN, U.S, Hebei, Shenzhen, CNOOC, Zhejiang Energy Zhejiang, Zhejiang, Ningbo, Wenzhou, Zhejiang province, HK, Guangxi province, Yantai, Shandong province, Guangdong, Guangzhou, JAPAN, SOUTH KOREA, Asia
REUTERS/David GrayLONDON, Aug 3 (Reuters) - Rio Tinto (RIO.L) is finding out just how hard it is to produce low-carbon aluminium. The company's biggest carbon headache is its aluminium business, which last year accounted for 21.1 million metric tons of carbon emissions out of a group total of 30.3 million metric tons. The pilot plant will produce around 6,000 metric tons of alumina per year while cutting carbon dioxide emissions by about 3,000 metric tons per year. Capacity at the low-carbon AP60 smelter, also in Quebec, will be expanded by 160,000 metric tons per year, with commissioning expected in 2026. Rio is investing heavily in recycled aluminium, which can be remelted using just 5% of the power needed to produce virgin metal.
Persons: David Gray, Rio, we're, Jakob Stausholm, Peter Cunningham, Jan Harvey Organizations: Rio Tinto, REUTERS, David Gray LONDON, Queensland Aluminium, Japan's Sumitomo Corp, International Aluminium Institute, Alcoa, Giampaolo, Reuters, Thomson Locations: Rio, Gove, Darwin, Australia's Northern, Pacific, Queensland, Australia, Portland, U.S, Canada, Quebec, North
Copper M&A more than doubled in 2002 to $14.24 billion from the previous year, according to an S&P Intelligence report. "So the large miners are saying it is difficult to build new supply, so let's just buy companies," McDonald said. Copper prices have been gradually losing steam since hitting their strongest levels in over seven months in January when optimism abounded about the reopening of China. The lower copper price presents M&A opportunities for Hudbay, Kukielski said, but it will also get "squeezed" if the price of copper falls below $3.50. With lack of large mines up for grabs, he is expecting that large miners will be looking to expand their production by acquiring smaller mines.
Persons: Lundin, Newmont, Stuart McDonald, Taseko, McDonald, Antaike, Peter Kukielski, Kukielski, Minto Metals, Aaron Colleran, Colleran, David Lennox, Divya Rajagopal, Melanie Burton, Denny Thomas, Marguerita Choy Organizations: TORONTO, Reuters, Nippon Mining, Metals, P Intelligence, Taseko, London Metal Exchange, Reuters Graphics Reuters, Hudbay, Japan's Sumitomo Corp, Minto Metals, Yukon, Royal Bank of Canada, Quantum Minerals, Ivanhoe Mines, Capstone, Barrick Gold, Bloomberg News, Barrick, AIC Mines, AIC, Sydney, Thomson Locations: SYDNEY, Toronto, Chile, Vancouver, Arizona, China, Hudbay, Canada, Yukon, Ivanhoe, Australia, Queensland, Melbourne
Berkshire Hathaway Energy has agreed to purchase a 50% stake in the Cove Point liquefied natural gas facility for $3.3 billion in cash. Warren Buffett's big energy and utility division bought the stake from Dominion Energy and will now own a 75% limited partnership stake in Cove Point LNG located in Lusby, Maryland. The Cove Point LNG Terminal has a storage capacity of 14.6 billion cubic feet and a daily send-out capacity of 1.8 billion cubic feet. Berkshire Hathaway first bought a stake in Dominion's gas pipeline and storage assets for $4 billion in 2020. Abel is now vice chairman for noninsurance operations at Berkshire Hathaway and the successor to the 92-year-old "Oracle of Omaha."
Persons: Warren Buffett's, Bill Stone, Buffett, Berkshire Hathaway, Greg Abel, Tom Farrell, Abel, Stone Organizations: Berkshire Hathaway Energy, Dominion Energy, Brookfield Infrastructure Partners, Glenview Trust, Sumitomo Corp, CNBC, Berkshire Hathaway, Oracle, Occidental Petroleum, Chevron Locations: Point, Lusby , Maryland, Berkshire, U.S, Glenview, Omaha, Iowa
Japan Airlines is trialing a new service to rent clothing to passengers. The airline is trying to reduce its carbon emissions by getting passengers to bring fewer clothes. Japan Airlines has launched a new service to help customers cut down on baggage. To offer this new service, the airline is partnering with Sumitomo Corporation, which will handle the reservation system and fulfillment of the clothing. It's possible to order up to nine items of clothing for rent and keep these for up to two weeks.
Organizations: Japan Airlines, Sumitomo Corporation Locations: Japan
Venture capital funding into startups has drastically slowed. Corporate venture capital grew in 2022 and looks to grow again in 2023, bucking the broader downturn. Continuing a pullback in funding activity in 2022, venture capital into European startups fell by 32.1% in Q1 of 2023, per Pitchbook data. Faced with the prospect of raising down rounds at slashed valuations, startups are turning to an alternative mode of funding — corporate venture capitalists. A corporate venture capital firm, or CVC, is the investing arm of a specific business.
Persons: Ekaterina Almasque, Almasque, Sabrina Maniscalco, Luis Valente, Valente, iLoF, Charlie Bullock Organizations: Corporate, GV, Google, Catalyst, Catalyst Fund, Presidio Ventures, Japan's Sumitomo Corporation, Microsoft, OSRAM Ventures
Since then, Japanese equities have rallied. Even so, Strategas Securities' Chris Verrone has remained optimistic on Japanese equities, saying this week that the rally is not yet overbought. Meanwhile, JPMorgan chief market strategist Marko Kolanovic said in a note, also on Tuesday, that the rally in Japan still has "staying power." For international investors, those remarks signaled that Japanese companies may be more transparent with shareholders in the future. Investors can also take a company-specific approach, according to Diamond Hill's Mohanraj, who favors Japanese companies that boast differentiated products.
OMAHA, Nebraska, May 6 (Reuters) - Warren Buffet on Saturday said he is more comfortable with Berkshire Hathaway Inc (BRKa.N) deploying capital in Japan than Taiwan, reflecting the growing tensions between the United States and China. The billionaire investor contrasted Berkshire's recently increased investments in five Japanese trading houses with its recent U-turn on a multi-billion dollar investment in Taiwan Semiconductor Manufacturing Co, or TSMC (2330.TW). "It's a marvelous company," Buffett said at Berkshire’s annual meeting, referring to Taiwan Semiconductor. But "I would feel better about capital that we've got deployed in Japan than in Taiwan.... That's the reality." Tensions between the U.S. and China have simmered in recent months, with some investors worried that China might invade Taiwan.
But Warren Buffett added a spark in April when he visited Japan to announce that Berkshire Hathaway boosted its investment in Japanese trading houses to 7.4%. Buffett said the five — Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui, and Sumitomo Corp. — are comparable to Berkshire itself. Samurai roots for Buffett's Japanese stocks The five trading firms that Berkshire has invested in are the biggest of Japan's so-called sogo-shosha, or general trading companies. Today, Japan's trading companies derive most of their revenue from non-trade activities. Shosha: The Big Five Mitsubishi The largest of Japan's trading companies is Mitsubishi Corp. , set up in 1954.
MP Materials efforts to build a local supply chain demonstrate the challenge for American producers. Challenging China’s dominanceWhile the 60% might not sound that concentrated, the dependence on China is even more pronounced further down the supply chain. James Litinsky, CEO of MP Materials, stands in front of the Mountain Pass mine in 2018. But if you miss one step then you do not have a supply chain that’s secure,” Mr. Litinsky said. Defense Metals’ Ms. Moreno said that little knowledge exists outside of China in building the whole supply chain.
Berkshire Hathaway's stakes in all five trading houses is now 7.4%. Buffett's trip is a "stamp of approval" — especially for domestic investors in Japan, according to Monex Group's Jesper Koll. He emphasized Buffett's trip has the potential to boost confidence among Japanese investors as the nation continues to grapple with low consumption. "The real focus is confidence for Japanese investors, and that's where Warren Buffett's visit was very, very important," Koll said. The trading houses have helped grow the Japanese economy and contributed to the globalization of its business.
Buffet breaks out of Japan’s value trap
  + stars: | 2023-04-12 | by ( ) www.reuters.com   time to read: +2 min
HONG KONG, April 12 (Reuters Breakingviews) - Berkshire Hathaway (BRKa.N) has upped its stake in iconic Japanese trading houses, according to an interview boss Warren Buffett gave the Nikkei newspaper on Tuesday. Worries that the nonagenarian was walking into Japan’s infamous “value trap” now look overwrought. The rise in global interest rates and the popping of the tech bubble have pushed funds back into the boring nuts and bolts companies Buffett loves. Given that the trading houses are themselves Berkshire-like investors, Buffett says he is open to doing deals with them, and investing more in Japan. The hedge funds and activist investors who have been banging their heads against Japan Inc might watch what Buffett does next.
TOKYO, April 11 (Reuters) - Berkshire Hathaway Inc's (BRKa.N) Warren Buffett is considering additional investment in Japanese stocks and said he holds a 7.4% stake in each of five Japanese trading houses, including Itochu Corp (8001.T), the Nikkei reported on Tuesday. In an interview with the newspaper, Buffett also said he would visit Japanese trading houses and Tungaloy Corp offices during his stay in Japan this time. Berkshire Hathaway had more than a 6% stake in each of those five trading houses, according to regulatory filings made in November last year. read moreThe other trading houses are Mitsubishi Corp (8058.T), Mitsui & Co(8031.T), Sumitomo Corp(8053.T) and Marubeni (8002.T). Reporting by Elaine Lies; Editing by Christopher Cushing and Kim CoghillOur Standards: The Thomson Reuters Trust Principles.
Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc., in Iwaki City, Fukushima Prefecture, Japan in 2011. Shares of Japanese trading houses rose in Tuesday afternoon trade after Warren Buffett, chairman and CEO of Berkshire Hathaway , said he plans to increase his holdings. In an interview with Nikkei, Buffett said he is considering additional investment in five major Japanese trading houses, adding that he was "very proud" of his existing investments in them. Shares of Mitsubishi Corp. rose 2.7% in Japan's afternoon trade, Mitsui & Co. gained 2.6%, Itochu Corp climbed 2.5% and Marubeni Corp. advanced 3.7%. Buffett told Nikkei that he is planning to meet with the companies later in the week "to really just have a discussion around their businesses and emphasize our support," according to the report.
"The new cuts are underpinning that the OPEC+ group is intact and that Russia is still an integral and important part of the group," SEB analyst Bjarne Schieldrop said. Higher prices will likely spell more income for Moscow to fund its expensive war in Ukraine, upsetting Saudi-U.S. relations further, Schieldrop said. "The U.S. administration may also argue that higher oil prices will counter its efforts to put out the inflation fire," he added. [1/2] An OPEC flag is seen on the day of OPEC+ meeting in Vienna in Vienna, Austria October 5, 2022. "Producing countries apparently want to see oil prices rise to $90-$100/bbl, but higher oil prices also mean higher risk of economic downturn and sluggish demand," he added.
Factbox: Warren Buffett's investments in financial firms
  + stars: | 2023-03-23 | by ( ) www.reuters.com   time to read: +3 min
[1/2] Warren Buffett, CEO of Berkshire Hathaway Inc, pauses while playing bridge as part of the company annual meeting weekend in Omaha, Nebraska U.S. May 6, 2018. Here is history on Buffett's involvement with banks and current holdings in his investment portfolio. The investment gave Berkshire preferred stock that paid a 10% along with warrants to pay $5 billion for 43.5 million Goldman shares at $115 each. Berkshire has financial services investments in other countries. Reporting by Jonathan Stempel in New York Editing by Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.
REUTERS/Nir EliasSINGAPORE, Jan 15 (Reuters) - Israel's Cognyte Software Ltd (CGNT.O) won a tender to sell intercept spyware to a Myanmar state-backed telecommunications firm a month before the Asian nation's February 2021 military coup, according to documents reviewed by Reuters. Intercept spyware can give authorities the power to listen in on calls, view text messages and web traffic including emails, and track the locations of users without the assistance of telecom and internet firms. MPT uses intercept spyware, a source with direct knowledge of the matter and three people briefed on the issue told Reuters although they did not identify the vendor. Reuters was unable to determine whether the sale of Cognyte intercept technology to MPT was finalised. While intercept spyware is typically described as "dual-use" technology for civilian and defence purposes, Israeli law states that "dual-use" technology is classified as defence equipment.
Warren Buffett's investments in five Japanese companies are emerging as winners in Berkshire Hathaway's portfolio. A Bloomberg analysis points out that share prices in Mitsubishi and Mitsui have respectively climbed 100% and 130% since Buffett's initial investments in 2020. Buffett is the third-largest shareholder in Mitsui & Co. and a leading investor in Mitsubishi Corp., Itochu Corp., Sumitomo Corp., and Marubeni Corp. Meanwhile, share prices of Mitsubishi and Mitsui – the two most profitable sogo shosha – have climbed 100% and 130%, respectively, since Buffett's initial investment in 2020. Buffett's investment company, Berkshire Hathaway, made its first disclosure of the investment in the sogo shosha in August 2020, with 5% stakes in each then worth a total of $6 billion, said Bloomberg.
LONDON, Nov 30 (Reuters) - Aircraft leasing firms are suing dozens of insurers for around $8 billion in a string of lawsuits over the loss of hundreds of aircraft stuck in Russia since Moscow's invasion of Ukraine. Lessors argue the aircraft are covered by policies against war or theft, but insurers point out the planes are undamaged and might yet be returned. Here is a list of claims filed against insurers in London, Dublin and the United States, with the most recent filing listed first. SMBC AVIATION CAPITAL VS LLOYD'S OF LONDONSMBC filed a claim against Lloyd's of London (SOLYD.UL) in the Irish High Court on Nov 28. BOC AVIATION VS 16 INSURERSBOC Aviation has begun legal action against 16 insurers, according to an Irish High Court filing on Nov 3.
TOKYO, Nov 21 (Reuters) - Berkshire Hathaway Inc (BRKa.N), run by billionaire Warren Buffett, has raised its stakes in each of Japan's five biggest trading houses by at least 1 percentage point to more than 6%, regulatory filings showed on Monday, sending shares higher. The move is line with Berkshire's statement in 2020 that its investments in the Japanese trading houses were for the long term and the stakes could rise to 9.9%. The news boosted shares of the five trading houses, led by Mitsubishi and Marubeni, which were up more than 2% in morning trade, while the benchmark Nikkei (.N225) index was nearly flat. Berkshire's increased investments in the trading houses come as it this month bought more than $4.1 billion of stock in Taiwan Semiconductor Manufacturing (2330.TW), a rare significant foray into the technology sector by the conglomerate. Reporting by Makiko Yamazaki; Editing by Jamie FreedOur Standards: The Thomson Reuters Trust Principles.
Warren Buffett's Berkshire Hathaway has raised its stakes in Japan's five leading trading houses by at least 1 percentage point to more than 6%, regulatory filings showed on Monday. The conglomerate's stakes rose to 6.6% from 5% in Mitsubishi Corp. , to 6.6% from 5% in Mitsui & Co ., to 6.2% from 5% in Itochu Corp ., to 6.8% from 5.1% in Marubeni Corp. and to 6.6% from 5% in Sumitomo Corp ., filings showed. Marubeni and Mitsubishi shares jumped more than 2% after the news on Monday. Sumitomo and Itochu shares rose about 1%. Shares of Mitsui have climbed more than 40% this year, while Sumitomo and Marubeni have both risen about 30%.
Mitsubishi raises profit forecast on higher coal, LNG prices
  + stars: | 2022-11-08 | by ( ) www.reuters.com   time to read: +2 min
TOKYO, Nov 8 (Reuters) - Mitsubishi Corp (8058.T) on Tuesday raised its full-year net profit forecast by 21% to a record 1.03 trillion yen ($7 billion), amid strength in metals and energy segments thanks to higher prices of coking coal and liquefied natural gas (LNG). Like global energy companies, Japanese trading houses have benefited from surging oil, gas and coal prices this year in the wake of Russia's invasion of Ukraine. Mitsubishi boosted its profit outlook for the year to March 31 to over 1 trillion yen from its May estimate of 850 billion yen. The latest forecast was in line with a mean estimate of 1.08 trillion yen in a poll of 10 analysts by Refinitiv. For the April-September first half, net profit nearly doubled to a record 720 billion yen, helped by a rally in coking coal and LNG as well as a one-off gain from selling a real estate management company.
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