Issue #41

Trump becomes president, Palantir now priciest software stock, AI sparks renewable energy boom, and more. 

News from October 31 - November 7, 2024

Trump Becomes President 

Donald Trump won the 2024 presidential election, claiming victory over Kamala Harris with decisive wins in key battleground states and securing the popular vote—a feat no Republican has achieved in decades. 

With Republicans projected to control the White House, Senate, and House, Trump’s party is set to drive its agenda with a “unified government.” President Biden congratulated Trump and offered to ensure a smooth transition.

Harris conceded, congratulating Trump and calling for a peaceful transfer of power.

Source

Buffet Sells Apple and Hoards Cash

Warren Buffett has sold nearly two-thirds of Berkshire Hathaway’s Apple stake, cutting it down to $69.9 billion from a high of $178 billion. Over the past two years, Berkshire has offloaded $166 billion in stocks, finding few appealing buys in the U.S. market. 

Buffett is now holding a record $325 billion in cash, investing heavily in short-term Treasuries instead. The 93-year-old investor expects higher taxes in the future, which could affect profits. 

This shift leaves Buffett’s successor, Greg Abel, with a massive cash pile to manage as Berkshire navigates an uncertain investment landscape.

‍Source 

Palantir Now Priciest Software Stock

Palantir Technologies, founded by Peter Thiel for US intelligence, has surged as it becomes the most expensive software stock, trading at over 100 times future earnings. Driven by demand for AI tools, Palantir's technology supports major clients like the US government, BP, and the UK’s NHS, boosting its market value by 140% this year. 

Its inclusion in the S&P 500 and popularity among retail investors have further propelled the stock, while its focus on AI for defense and commercial applications continues to attract large contracts, solidifying its position in the AI-driven tech landscape.

Alex Karp, CEO of Palantir: “The world is in the midst of a US-driven AI revolution that is reshaping industries and economies, and we are at the center of it.” 

‍Source 

Bulletin Board

• Chocolate Companies Oppose Deforestation. Nestlé, Michelin, Ferrero, and over 50 companies have opposed the EU’s decision to delay its deforestation law, which restricts imports from deforested land in sectors like cocoa, palm oil, and rubber. The one-year delay, prompted by lobbying from countries like Brazil and Malaysia, has created instability and risks for businesses investing in compliance. Companies urge the EU to maintain the law’s core framework to avoid further uncertainty and costly setbacks. Source 
• Authorities Raid Netflix Offices. French and Dutch authorities raided Netflix’s Paris and Amsterdam offices as part of a probe into potential tax fraud and labor law violations. The investigation, which began in 2022, focuses on Netflix’s practice of booking French subscription revenues through its Netherlands-based subsidiary from 2019 to 2021. France previously audited Netflix over this setup, and similar cases have targeted multinationals like McDonald’s, which paid a fine to settle a tax fraud probe. Netflix is cooperating, but no charges have been filed. Source 
• AI Sparks Renewable Energy Boom. AI’s rapid growth is pushing oil giants like Adnoc, Shell, and BP to reconsider renewable and nuclear energy investments to support the technology’s escalating demand. Tech firms have committed to using green power, with discussions around integrating renewables, battery storage, and nuclear as stable sources. Sultan al-Jaber, Adnoc’s CEO: “The size of this opportunity only became very apparent about 18 months ago when ChatGPT took off.” Source 
• Botswana Seeks Diamond Reset. Botswana’s new president, Duma Boko, pledges to repair ties with De Beers, following his surprise victory over the long-ruling Botswana Democratic Party. Former president Masisi’s confrontational approach to diamond negotiations, which sought to increase Botswana's share of profits, hurt relations with De Beers and contributed to his election loss. Now, Boko faces the challenge of negotiating stable terms with De Beers as diamond revenues dip, while managing potential ownership changes of De Beers. Source 
• Prison Vans Hacked. A cyber attack on software provider Microlise disrupted tracking and alarm systems for Serco's prison vans and DHL’s delivery fleet. The attack, reported on October 31, left Serco’s vehicles transporting prisoners without tracking or panic alarms for three days, raising staff safety concerns. Serco, which oversees over 300,000 prisoner transfers yearly, implemented contingency measures like frequent check-ins and paper maps. Microlise is working with cybersecurity experts to restore its systems. Source 

Disclaimer: This blog offers insights into international business and global events for informational purposes only. It is not intended as investment or business advice. WeavePay is not liable for any decisions made based on the content provided.

We're on a mission to partner with ambitious international businesses. If your team has the vision and meets the criteria, join us at WeavePay for tailored payment solutions that have helped hundreds of global companies succeed in the complex global market. Subscribe and reach out to see if we're a match.