The global investment world is paying tribute to the amazing career of Berkshire Hathaway’s Warren Buffett after the Oracle of Omaha surprised his faithful followers by announcing his retirement as chief executive at the end of the year.
New Zealand and Australian investors will make their own annual pilgrimage to Sydney for the Macquarie conference, where company executives often clear their throats and reveal how their businesses are going. Australia’s major banks are in focus this week with three of the Four Pillars – Westpac, National Australia Bank and ANZ – reporting their first-half results this week.
Meanwhile, Australia’s general election delivered a surprise result with Anthony Albanese’s incumbent Labor government securing a majority in the federal parliament while Singapore’s ruling People’s Action Party, led by Lawrence Wong, also increased its share of the vote in a landslide victory.
And as investors return to their desks after a strong showing on Wall Street and in Europe on Friday, all eyes will shift to the US Federal Reserve’s policy review on Wednesday and whether it will hint at any rate cuts later this year.
So long, farewell
Berkshire Hathaway’s annual meeting captured the headlines over the weekend as legendary investor Warren Buffett launched a defence of global trade, before surprising the audience by announcing his retirement as chief executive at the end of the year, when he’ll hand over the reins to Greg Abel. Buffett will remain chair, with his son Howard set to succeed him when he dies, albeit without an executive role.
The Berkshire annual meeting followed a strong day on Wall Street and in Europe as investors welcomed the softening tensions between the US and China, with the possibility of trade talks between the world’s two biggest economies, and after better-than-expected US employment figures.
The S&P 500 rose 1.5% on Friday, while the UK’s FTSE 100 advanced 1.2%, and Germany’s DAX 30 gained 2.6%. Wall Street’s major indices have clawed back their losses since US President Donald Trump’s Liberation Day tariff announcements injected chaos in global markets.
The Fed’s upcoming policy review is the major event of the week, with the world’s biggest central bank expected to keep its key rate unchanged, while the Bank of England is predicted to cut its benchmark rate another quarter point.
Feathered friend
The kiwi dollar traded at 59.46 US cents at 7am in Auckland from 59.30 cents last week.
That upbeat sentiment is expected to flow into Australian markets, with futures pointing to a 0.4% gain for the S&P/ASX 200 index.
Investors are descending on Sydney this week for the annual Macquarie conference, where firms typically provide guidance on how their businesses are tracking.
And Australian bank earnings are in focus this week, with Westpac Banking Corp kicking things off today when it reports its first-half result. NAB and ANZ are scheduled to report later this week.
Meanwhile, The Australian Financial Review’s Street Talk column reported that Trade Me is refinancing its debt, which is being seen as a precursor to an eventual exit for private equity owner Apax Partners.
There’s no major local data scheduled for release today, with March quarter employment figures on Wednesday the main focus. The Reserve Bank will also release its six-monthly financial stability report on Wednesday.
Reporting by Paul McBeth. Image from Jesse Duering on Unsplash.
