International News 04 November 2025
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Amazon Shares Hit Record High as AWS and AI Drive Strong Q3 Performance
Amazon Inc. shares surged 11% to a record high on October 31, 2025, after the company reported Q3 earnings that exceeded analyst expectations, fueled by strong growth in its cloud division, Amazon Web Services (AWS). The company posted earnings per share (EPS) of US$1.95 on revenue of US$180.2 billion, beating estimates of US$1.58 and US$177.8 billion, respectively. AWS revenue rose to US$33.01 billion, surpassing projections and reflecting rising global demand for AI and cloud computing. CEO Andy Jassy said Amazon plans to continue investing heavily in cloud capacity amid surging demand, supported by rapid adoption of its Trainium2 AI chips, which grew 150% quarter-over-quarter. Despite the strong results, Amazon’s stock performance has lagged behind peers—up just 2.4% year-to-date, compared with Microsoft’s 24% and Google’s 49%. Analysts attribute this to perceptions that AWS trails rivals in the AI race, as Microsoft strengthens ties with OpenAI and Google expands Gemini. Amazon’s partnership with Anthropic, which will use one million Trainium2 chips for AI model training, marks a key win for AWS. Jassy emphasized that the planned layoff of 14,000 corporate employees is unrelated to financial or AI automation concerns, but part of a cultural reset. The company’s strong performance underscores how AI and cloud computing have become core drivers of growth in the tech sector amid intensifying competition.
Bank of England Expected to Hold Rates Amid Split Policy Outlook
The Bank of England (BoE) is widely expected to keep its benchmark interest rate steady at 4% in its upcoming meeting on Thursday, signaling a pause in the easing cycle that began in August 2024. While recent data showing weaker inflation and wage growth have revived speculation of a rate cut, most analysts predict the central bank will maintain its cautious stance. Inflation in the UK remains the highest among advanced economies at 3.8%, though it came in below the BoE’s 4% projection. Market pricing suggests a one-in-three chance of a rate cut on November 6, rising to two-in-three by year-end, with Goldman Sachs now forecasting a reduction this month. However, a Reuters poll shows most economists expect the next cut only in 2026, as policymakers remain divided. Chief Economist Huw Pill and external MPC member Catherine Mann warn that easing too soon could undermine public confidence in BoE’s 2% inflation target. ING economist James Smith anticipates another narrow 5–4 vote in favor of holding rates, noting that any potential rate cut may come in December, depending on fiscal measures from Finance Minister Rachel Reeves later this month. With inflation still sticky and growth softening, the BoE faces a delicate balance between supporting the economy and preserving price stability—a challenge that continues to test Governor Andrew Bailey’s leadership.
Berkshire Hathaway Hoards Record $381.7 Billion Cash Despite Profit Surge
Berkshire Hathaway posted a 34% jump in operating profit to US$13.49 billion in Q3 2025, surpassing analyst forecasts, while net income rose 17% to US$30.8 billion, supported by stronger insurance operations. However, revenue growth of just 2% lagged behind the broader U.S. economy, reflecting a cautious stance by the Warren Buffett-led conglomerate. Despite the solid results, Berkshire continued its conservative investment approach, amassing a record US$381.7 billion in cash—the highest in its history—and extending its streak of 12 consecutive quarters as a net seller of equities, including holdings in Apple and American Express. The company also paused share buybacks for a fifth straight quarter, signaling restraint even as Berkshire’s stock performance trails the market. With Buffett preparing to hand over the CEO role to Greg Abel, investors are watching closely for clues on how Berkshire will deploy its massive cash pile. Analysts suggest options could include initiating the firm’s first dividend since 1967 or pursuing selective acquisitions, such as the planned US$9.7 billion purchase of Occidental Petroleum’s OxyChem unit. “Investors are eager to see Berkshire put its cash to work,” said Tom Russo of Gardner Russo & Quinn, adding that as long as capital allocation enhances intrinsic value, confidence in the firm’s long-term strategy will remain strong.