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Warren Buffett has announced that he will not endorse any investment products or political candidates, aiming to combat fraudulent claims exploiting his reputation. This decision follows the rise of fake endorsements, particularly highlighted by a false political endorsement on Instagram.
Treasury yields rose for the third consecutive day, with the 10-year rate hitting 4.25%, the highest since July. This increase is driven by expectations of gradual interest rate cuts by the Federal Reserve and concerns over inflation linked to the upcoming presidential election, particularly with speculation around former President Donald Trump's potential victory. Signs of a resilient US economy and persistent inflation are further contributing to the upward trend in yields.
CMC Markets has seen significant growth in Australia, generating over £62.3 million in revenue in H2 FY23, surpassing its UK earnings for the first time. In contrast, IG Group's Australian revenue has declined from £65 million in H1 FY21 to £41.1 million in H2 FY24, while Plus500 also reported a drop in Australian earnings. Notably, Singaporean traders are the most lucrative for IG, averaging £4,914 in revenue per trader, compared to £3,054 in the UK and £2,977 in Australia.
Starbucks has faced challenges in its fiscal fourth-quarter results, reporting a 3.2% decline in sales to $9.1 billion and a 24% drop in EPS to $0.80, both below expectations. UBS raised its price target to $95, citing new strategic initiatives from CEO Brian Niccol, while several analysts adjusted their outlooks amid a CEO transition and ongoing market pressures. Despite these hurdles, Starbucks continues to expand its global coffee research efforts and has increased its quarterly dividend by 7%.
The US dollar has recently strengthened due to rising Treasury yields and stronger-than-expected economic data, with a 3.4% increase in the DXY index over the past month. However, expectations of Federal Reserve rate cuts and growing fiscal concerns are likely to pressure the dollar in the long term. Meanwhile, other currencies, particularly in Europe, may gain support from anticipated economic recovery and positive data surprises.
UBS has raised its price target for Starbucks shares from $85 to $95 while maintaining a neutral rating, following the company's preliminary fourth-quarter results and the announcement of new strategic initiatives. Despite a decline in same-store sales in the U.S. and China, Starbucks reported a 3.2% drop in revenue to $9.1 billion and a 24% decrease in EPS to $0.80, prompting the suspension of guidance for fiscal year 2025 amid ongoing CEO changes. The company continues to expand its global coffee research with new innovation farms in Guatemala and Costa Rica.
Warren Buffett has expressed concern over impersonators misusing his name to endorse investment products and political candidates, prompting Berkshire Hathaway to issue a statement clarifying that he does not endorse such entities. He emphasized that any claims of his endorsements, especially on social media, are fraudulent, and he is particularly worried about the rise of deep fakes. Buffett's actions were partly triggered by a fake political endorsement on Instagram, a platform he does not use.
Barclays strategists indicate that the potential for trade tariffs linked to a Donald Trump election victory has already been factored into the stock prices of major European exporters. They warn that a full-scale trade war could lead to a significant decline in earnings per share growth for these companies.
The US elections on November 5, 2024, featuring candidates like Donald Trump and Kamala Harris, are poised to significantly influence both the US economy and Switzerland, according to Sandro Merino, Chief Investment Officer at BKB. Additionally, Wacker & Schwob AG in Läufelfingen is participating in the Basel Autumn Fair for the 96th time, showcasing its Käskiecheli.
Extreme tariffs proposed by Donald Trump could disrupt disinflation efforts and lead to higher U.S. interest rates, according to Tim Adams, head of the Institute of International Finance. He warned that while some inflationary impacts might be absorbed in the short term, the overall economic package could exert upward pressure on prices. As Trump positions himself as a change candidate focused on protectionism, analysts express concerns about his potential isolationist policies compared to his opponent, Kamala Harris, who is expected to engage more with the global community.

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