Buffett surprises investors with 2025 exit

Good morning. Here's what happened overnight and what you need to know today.

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1.

Omaha oracle: Warren Buffett will step down as chief executive of Berkshire Hathaway at the end of 2025, capping a 60-year run at the helm which saw the conglomerate reach a USD1.16 trillion ($1.8 trillion) valuation. Buffett will hand over the reins to vice chairman of non-insurance operations, Greg Abel. Buffett had not given Abel or Berkshire’s other directors any advance notice about the announcement, surprising Abel and investors with the news at the end of Saturday’s annual shareholder meeting. Buffett also took a parting shot at the Trump administration on trade, arguing that tariffs should not be a "weapon," warning that the pace of industry changes, including trade policies, has accelerated this year and is causing considerable uncertainty. Buffett’s success saw Berkshire achieve a 20% compounded annual gain in stock between 1965 and 2024. Berkshire's share price has increased 19% this year, compared with a 3% drop in the S&P 500. (Capital Brief)

2.

Federal election: Senior Liberal moderates are privately urging colleagues to back deputy leader Sussan Ley as a four-way race to replace Peter Dutton begins, following the Coalition’s worst-ever defeat. Contenders discussed include Ley, shadow treasurer Angus Taylor, immigration spokesman Dan Tehan and defence spokesman Andrew Hastie. Ley has said leadership decisions will wait until preference counting is complete. The Albanese government increased its majority and Dutton lost his seat of Dickson, one he had held for over two decades, sparking renewed calls for gender targets to help win back metropolitan voters, (especially women). Former minister Simon Birmingham criticised the party’s failure to learn from its 2022 defeat, while the party’s decision to delay most of its advertising spending until the final week of the campaign has also drawn criticism for its failure to account for a massive turnout in pre-poll voting. (Capital Brief)(Capital Brief)

3.

Trump says: In a wide-ranging interview with NBC’s Meet the Press aired Sunday, US President Donald Trump repeatedly said “I don’t know” when asked if he must uphold the US Constitution and provide due process to people on US soil, despite the Fifth Amendment. He said following it would require “a million or two million or three million trials.” On China, Trump said he will not drop the 145% tariffs to bring Beijing to the negotiating table but may lower them “at some point.” He said “we’re essentially not doing business with China” and described the trade halt as going “cold turkey.” Trump also said US Fed Chair Jerome Powell is “a total stiff”, called for him to cut rates, but said he will not remove him before his term ends in 2026. Trump added he is “not looking at” a third term despite the Trump Organisation selling “Trump 2028” hats. He also said he may again extend the deadline for TikTok’s US sale. (Reuters)(Bloomberg)(Capital Brief)(NBC)(NYT)

4.

Dome breached: A ballistic missile launched by Iranian-backed Houthi rebels in Yemen struck near Israel’s Ben Gurion Airport on Sunday, briefly halting flights and commuter traffic and injuring six, according to emergency services. The Israeli military said it failed to intercept the missile, which landed near an access road and caused panic among passengers. It was the first time a missile had struck the airport grounds since the Gaza war began. The Houthis said they fired a hypersonic ballistic missile. Hours later, Israel’s security cabinet convened to vote on plans to expand military operations in Gaza, ahead of a planned visit to the region by US President Donald Trump. The army said tens of thousands of reservists had been called up. Prime Minister Benjamin Netanyahu said Israel would respond to the Houthis “and... to their Iranian terror masters,” while Defence Minister Israel Katz said the response would be “sevenfold”. (Bloomberg)(AP)(The Guardian)(WaPo)(Capital Brief)

5.

Musk’s city: Elon Musk’s South Texas SpaceX hub is now an official city named Starbase, after residents voted 212 to 6 to incorporate, according to the Cameron County Elections Department. Nearly all eligible voters work for SpaceX or live with someone who does. The move shifts control of zoning, development and local rules from the county to the new city. Starbase spans 1.5 square miles, with 260 employees living there and 3,100 commuting. SpaceX, the largest landowner, said incorporation would streamline building amenities. All three new city officials ran unopposed and have ties to the company. Critics, including environmental activists and local pre-SpaceX residents, warn the new city could edge them out, restrict access to Boca Chica Beach, which they call sacred, and threaten a sensitive coastal habitat near where the Rio Grande meets the Gulf of Mexico. Musk posted on X that Starbase is “now a real city!” (Bloomberg)(AP)

6.

Stacked up: 1Breadcrumb acquired its more established rival SignOnSite after four years of direct competition in Australia’s construction safety software market. The deal brings together two of the most recognised names in commercial construction tech, creating a client base of 900 companies and serving over 1.5 million workers across Australia, New Zealand and the UK. Founded in 2020, 1Breadcrumb grows from 48 to 64 staff, with most of SignOnSite’s 16-person team joining. In a market where 65% of sites still use paper-based workflows, both platforms digitise safety processes such as check-ins, inductions, permits and compliance documentation. The deal, a mix of equity and cash, included a $4.5 million raise led by Five V Capital and Tribe Global Ventures. Alexandria Garlan becomes Chief Commercial Officer, while Simon Elliott remains CEO. (Capital Brief)

7.

Floating dreams: Five years since Beijing pulled the pin on Ant Group’s efforts to list in Shanghai and Hong Kong in a USD37 billion ($57.3 billion) IPO, Jack Ma’s Ant Group is reportedly planning to list its overseas unit in Hong Kong. Chinese media outlet Caixin reports that Ant is in communications with regulators about the potential listing, but did not specify whether the talks were with regulators in China or elsewhere. Registered in Singapore, Ant is 33% controlled by Alibaba and operates the Chinese payments behemoth Alipay. Authorities cracked down on Ma’s empire in 2020 after the entrepreneur criticised China’s watchdogs for stifling innovation, leading to a massive restructuring and USD1 billion fine. The Group has denied periodic media reports since 2020 that claim it was eyeing IPO options, denying claims made as recently as December that it was exploring a possible backdoor listing. (Reuters)(WSJ)

8.

Oil glut: OPEC+ will further accelerate oil output hikes and could unwind its 2.2 million barrels per day (BPD) of voluntary cuts by the end of October if members refuse to improve compliance with their production quotas, according to Reuters. On Saturday, OPEC+ agreed to increase output again in June, taking the total it plans to release in April, May and June to nearly 1 million bpd. Saudi Arabia warned members against any non-compliance at the meeting, after Kazakhstan’s energy minister said that he will prioritise national interests over those of OPEC+ when determining oil production levels. Sources told Reuters that the cartel will maintain the strategy, and will likely agree in June to release another 411,000 bpd in July. Oil prices fell to a four-year low in April on news of the accelerated output hikes by OPEC+ and concerns that Trump’s tariffs would cause a global slowdown. (OPEC)(Reuters)(Bloomberg)