Key Takeaways
- Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) has fully divested its 17-year investment in Chinese electric vehicle (EV) maker BYD (BYDDY, 1211.HK), a move that generated a staggering 30-fold return but comes amid slowing EV sales and intense price competition in China.
- The U.S. federal government faces an increased risk of a partial shutdown on October 1, 2025, after the Senate rejected competing funding measures, with lawmakers now on recess until September 29.
- Copper prices are holding steady near $10,000 per tonne as a persistent halt at Freeport-McMoRan's (FCX) Grasberg mine in Indonesia continues to disrupt global supply, with analysts suggesting prices could reach $12,000 by 2026 if disruptions persist.
- BBVA (BBVA) has sweetened its all-share takeover bid for Banco Sabadell (SAB) by approximately 10%, now valuing the smaller lender at around €17 billion, though Sabadell's CEO remains skeptical of BBVA reaching a 50% stake.
- Apollo Global Management (APO) has decided against submitting a bid for Coca-Cola's (KO) Costa Coffee, leaving the future of the coffee chain uncertain as Coca-Cola seeks to offload the asset at a potential loss.
Berkshire Hathaway Concludes Landmark BYD Investment
Warren Buffett's Berkshire Hathaway has officially completed its exit from Chinese EV manufacturer BYD (BYDDY, 1211.HK), ending a 17-year investment journey that began in 2008. The divestment, confirmed by a first-quarter filing from Berkshire Hathaway Energy, indicated a zero position in BYD as of March 31, 2025. This strategic move follows a series of stake reductions initiated in 2022, culminating in a significant profit for Berkshire, with BYD's stock price surging approximately 3,890% during the investment period.
The exit comes at a time when China's EV industry is grappling with slowing sales, shrinking profits, and intense price competition, issues exacerbated by global oversupply concerns. Despite the sale, BYD's public relations head, Li Yunfei, acknowledged the normalcy of stock transactions and expressed gratitude for Buffett's and late partner Charlie Munger's long-term support and recognition of the company.
U.S. Government Shutdown Risk Escalates
The prospect of a partial U.S. federal government shutdown on October 1, 2025, has intensified after the Senate failed to pass competing measures to fund federal agencies. Lawmakers are now on a one-week recess, with senators returning on September 29 and House Republicans not planning to be back until October, effectively pushing the responsibility to the Senate to approve the House-passed measure or face a shutdown.
The House had passed a Republican-led funding bill that would extend government funding at current levels for seven weeks, including an additional $88 million for security. However, the Senate's inability to secure the necessary 60 votes on either partisan proposal highlights the ongoing political stalemate. A shutdown would suspend various federal functions, including some immigration services and E-Verify, though fee-based processing would generally continue with potential delays.
Copper Prices Buoyed by Indonesian Mine Halt
Copper prices continue to trade near the $10,000 per tonne mark, supported by ongoing supply concerns stemming from a persistent halt at Freeport-McMoRan's (FCX) Grasberg mine in Indonesia. The temporary suspension of operations at the world's second-largest copper mine was triggered by an incident involving a large flow of wet material that trapped workers, with rescue efforts ongoing and no clear timeline for resuming full production.
Analysts estimate that a prolonged halt could remove approximately 125,000 tonnes of copper from the market, representing a significant reduction in global supply. This disruption, coupled with resilient demand from the energy transition and technology sectors, has led some analysts, like those at Citigroup, to project copper prices could approach $12,000 per tonne by 2026.
BBVA Sweetens Sabadell Bid Amid CEO Skepticism
BBVA (BBVA) has increased its all-share takeover offer for Banco Sabadell (SAB) by approximately 10%, now valuing the target at around €17 billion. The revised offer, which entails one new BBVA share for every 4.8376 Sabadell shares, aims to make the deal more attractive to shareholders, particularly by improving the tax treatment for those with capital gains if acceptance exceeds 50% of voting rights.
Despite the improved terms, Sabadell's CEO has expressed skepticism regarding BBVA's chances of securing a 50% stake, previously stating that the bid offers "poor value" and lacks a control premium. The offer period, which began on September 8, runs until October 7, and BBVA has stated it will not make further improvements to the price.
Apollo Withdraws from Costa Coffee Bidding
Apollo Global Management (APO) has decided against submitting a bid for Coca-Cola's (KO) Costa Coffee, according to reports from Sky News. This decision leaves the future of Britain's largest coffee chain in question as Coca-Cola explores strategic options, including a potential divestment, after acknowledging that its investment in Costa has "not delivered" as expected.
Coca-Cola acquired Costa Coffee in 2018 for £3.9 billion, but current valuations suggest a sale could result in a significant loss, with estimates placing the business at around £2 billion. Other potential bidders, including private equity firms like TDR Capital, the owner of Asda, were reported to be in initial discussions, but Apollo's withdrawal underscores the challenges in finding a suitable buyer.
UK Banking Regulator Proposes Reduced Reporting
The Bank of England's (BOE) Prudential Regulation Authority (PRA) has proposed a reduction in regulatory requirements for banks by deleting 37 individual reporting templates. These proposals are part of the PRA's "Future Banking Data project" and aim to reduce the administrative burden on firms, particularly in financial reporting, where overlapping and complex requirements have been identified. The PRA will consult on these proposals for a month, with an implementation goal of January 1, 2026.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.