Greg Abel to Become Berkshire CEO in 2026 as Buffett Stays on as Chairman

Local Market Commentary

The FTSE/JSE Top 40 Index declined 0.23% to 84,543.9 points, while the broader All Share Index fell 0.29% to 92,063.1 on Monday. Eskom expressed confidence in maintaining grid stability through the southern hemisphere winter, aiming to avoid load-shedding over the next four months if plant breakdowns remain within current limits. This follows nine consecutive months without power cuts, aided by a notable improvement in plant performance. Economic indicators in focus this week include the S&P Global PMI on Tuesday, followed by manufacturing and foreign reserve data on Thursday.

European Market Commentary

European equities rose for a tenth consecutive session on Monday, with the STOXX 600 index gaining 0.2%—its longest winning streak since August 2021—as markets turned their focus to the upcoming US Federal Reserve policy meeting and trade tensions. Euro zone investor morale rebounded more than expected in May, with the Sentix index improving to -8.1 from April’s -19.5 (consensus: -12.5). The current situation index rose to -19.3—still negative but at an eight-month high—while expectations jumped 19.6 points to 3.8. In corporate news, Tesla’s April vehicle sales in Spain dropped 36% year-on-year to 571 units, underperforming peers as overall electric vehicle sales advanced.

U.S. Market Commentary

The S&P 500 snapped its longest winning streak in two decades on Monday, as investor sentiment was dampened by renewed tariff concerns following US President Donald Trump's latest announcement and heightened inflation signals ahead of this week’s Federal Reserve policy meeting. Treasury Secretary Scott Bessent reiterated confidence in the administration’s economic agenda—tariffs, tax cuts, and deregulation—suggesting long-term investment benefits despite short-term volatility. The ISM services index showed renewed growth in April, while input cost inflation accelerated to a two-year high, reflecting tariff-driven pricing pressure.

Asia Market Commentary

Asia-Pacific markets advanced on Tuesday as investors weighed signs of potential de-escalation in U.S. trade tensions with key regional economies, alongside continued currency strength against a softening dollar. India reportedly proposed zero tariffs on select goods—steel, auto components, and pharmaceuticals—under a reciprocal framework, while Malaysia noted progress in talks with Washington, including the possibility of tariff reductions. However, sentiment was tempered by a soft reading on China’s services sector, where the Caixin/S&P Global PMI slipped to a seven-month low of 50.7 in April (from 51.9 in March), still signalling modest expansion amid uncertainty over U.S. tariff policy.

Currency Market Commentary

The South African rand rose to its highest level in five weeks on Monday, buoyed by Eskom's positive outlook for power supply stability over the southern hemisphere winter, with no electricity cuts expected in the next four months. Meanwhile, sterling gained against a weaker dollar ahead of the Bank of England's policy decision later this week. The U.S. dollar faced difficulty making progress on Tuesday, as a surge in Taiwan’s currency impacted regional peers, highlighting the vulnerability of the dollar. Additionally, Hong Kong's de-facto central bank intervened by purchasing $7.8 billion (HK$60.5 billion) to maintain its currency peg to the dollar.

Commodity Market Commentary

Gold prices climbed to a two-week high on Tuesday, driven by escalating concerns over U.S. President Donald Trump's tariff plans, sparking renewed demand for the precious metal as a safe-haven asset. Meanwhile, oil prices rebounded by over 1%, supported by technical buying and a market correction following recent declines, despite persistent concerns over a potential supply surplus. Oil has fallen more than 10% in the past six sessions, exacerbated by expectations that production will outpace consumption, as tariff-related economic slowdown fears loom. The return of Chinese market participants after their public holiday provided additional support for oil prices.

Gold Fields Limited (GFI) +5.98%

Gold Fields has announced a binding agreement to acquire 100% of Gold Road Resources through an Australian scheme of arrangement, valuing the target’s equity at approximately A$3.7 billion. The offer includes a total cash consideration of A$3.40 per share, comprising a fixed component, a variable amount linked to Gold Road’s Northern Star Resources stake, and a potential fully franked special dividend of ~A$0.35. The Gold Road Board unanimously supports the transaction, which is subject to shareholder, court, and regulatory approvals. Shareholders representing 7.5% of the register have provided voting support in the absence of a superior proposal. The deal consolidates Gold Fields’ interest in the Gruyere JV and is aligned with its strategy of acquiring quality, cash-generative assets within tier-one jurisdictions.

Harmony Gold Mining Company Limited (HAR) +4.46%

Harmony delivered a 20% year-on-year increase in revenue to R50.9 billion (US$2.81 billion) for the nine months to 31 March 2025, underpinned by a 25% rise in the average gold price and stronger underground grades, with full-year grade guidance revised up to 6.00g/t. While group production fell 6% due to adverse weather and safety incidents, output from South African high-grade underground operations rose 7%. The balance sheet remains robust, with net cash up 49% to R10.8 billion (US$592 million), despite inflationary pressure on costs, which saw total cash costs up 8% and AISC rising 17% to R1.03 million/kg (US$1,765/oz). Core capital projects remain on track, and the rand cost base continues to provide stability amid global volatility.

Astral Foods Limited (ARL) -1.70%

Astral has issued a trading statement flagging a material decline in earnings for the six months ended 31 March 2025, with EPS expected to fall between 55% and 45% year-on-year to 415–508 cents (1H2024: 923 cents), and HEPS anticipated to contract by 60% to 50% to 354–442 cents (

Berkshire Hathaway Inc. (BRK.A) -4.87%

Berkshire Hathaway confirmed that Warren Buffett will remain chairman after Vice Chairman Greg Abel succeeds him as CEO, with the transition taking effect on January 1, 2026. This announcement followed Buffett's surprise revelation at the annual meeting in Omaha, Nebraska, that he would step down as CEO after over six decades. While Abel's ascension had been anticipated for years, Buffett's decision to retain the chairman role came as a surprise. The leadership change occurred amid Berkshire’s first-quarter results, where insurance losses from wildfires led to operating profit falling short of analyst expectations.

Hon Hai Precision Industry Company Limited (2317) -3.39%

Foxconn, the world's largest contract electronics manufacturer and Apple’s primary iPhone assembler, reported a 25.54% increase in revenue for April compared to the same month last year. The company expressed optimism for continued growth in the second quarter, while also noting that evolving global political and economic conditions will require ongoing monitoring.

Skechers U.S.A., Inc. (SKX) +24.35%

Skechers has agreed to a $9.42 billion buyout by 3G Capital, marking the largest footwear industry buyout to date. 3G Capital will pay $63 per share in cash, a 28% premium to Skechers' closing price on Friday. The deal comes as Skechers grapples with the impact of steep U.S. tariffs, particularly on Chinese imports. Skechers, known for its comfort-first sneakers, has seen challenges in recent months, including withdrawing its annual results forecast. Despite this, the brand remains competitive with its global expansion and strong market presence. The buyout is set to close in Q3 2025, with 3G Capital financing the deal through a combination of cash and debt commitments.

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