Good morning and welcome to Markets Desk.
Berkshire Hathaway is making headlines after new CEO Greg Abel deployed a significant portion of the conglomerate's enormous cash reserve, committing ten billion dollars to Alphabet and repurchasing four and a half billion in Berkshire shares. Cash holdings dropped to three hundred sixty-five and a half billion, signaling Abel is willing to move decisively where Buffett held back.
Shifting to commodities, arabica coffee futures surged more than four percent Friday, closing at a one-week high as the dollar index fell to a seven-week low, making dollar-denominated commodities cheaper for foreign buyers. Tight inventories at ICE warehouses added further upward pressure, while robusta slipped modestly, leaving the complex mixed on the session.
And on the geopolitical front, tensions in the Strait of Hormuz are lifting a specific cluster of equities. RTX is drawing attention on depleted missile inventory restocking demand, ExxonMobil benefits from elevated crude prices, and Frontline is catching a bid on tanker scarcity. The risk across all three remains the same — a ceasefire could deflate the premium quickly.
That's the tape. Markets Desk, signing off the floor.
