International News 06 March 2026
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Berkshire Hathaway Resumes Share Buybacks Under New CEO Greg Abel
Berkshire Hathaway has resumed its share buyback program after nearly two years, marking the first repurchase since May 2024 following Greg Abel officially taking over as CEO in January from Warren Buffett. The move, which began on Wednesday, could help reduce Berkshire’s massive cash pile that reached about US$373.3 billion at the end of the year—funds that had accumulated as the company struggled to find attractive acquisition opportunities. The announcement is also seen as a signal to investors that Berkshire is willing to deploy capital again after a long period of caution. At the same time, Abel revealed he personally purchased 21 Berkshire Hathaway Class A shares worth roughly US$14.6 million using after-tax income from his US$25 million annual salary. The purchase increases his holdings to 249 Class A shares valued at around US$187 million. While Buffett, now 95, has stepped down as CEO, he remains chairman of the conglomerate, which has a market value of about US$1.08 trillion. Abel said buybacks are typically conducted when Berkshire believes its intrinsic value exceeds the market price, creating long-term value for shareholders. The move comes as Berkshire’s shares have underperformed the S&P 500 over the past 10 months, even though the company still holds a massive US$297.8 billion equity portfolio led by investments such as Apple.
China to Raise Defense Budget by 7% in 2026 Amid Regional Tensions
China plans to increase its defense budget by 7% in 2026, marking the slowest pace of growth in five years but still exceeding the country’s economic growth target and most military spending increases across Asia. The announcement came during the annual parliamentary session, where Premier Li Qiang said the government would strengthen combat readiness and accelerate the development of advanced military capabilities. Beijing continues to pursue an ambitious military modernization program aimed at completion by 2035 while expanding deployments across East Asia amid rising regional tensions, particularly around Taiwan. The government also projected economic growth of around 4.5%–5% for the year, while emphasizing the importance of strengthening national sovereignty, security, and development interests under the leadership of Xi Jinping. The increased budget will support the development of next-generation missiles, modern warships, advanced submarines, and upgraded military surveillance systems. Analysts note that China’s military spending has grown steadily in recent years—averaging about 7.2% annually—and generally tracks economic expansion and inflation. At the same time, Beijing has intensified anti-corruption efforts within the military leadership. Senior generals including Zhang Youxia and He Weidong have been caught up in disciplinary investigations, leaving the leadership of the Central Military Commission more concentrated around Xi and newly appointed vice chairman Zhang Shengmin. Analysts say the purge signals Beijing’s intention to tighten oversight of military spending while continuing its large-scale modernization drive.
US Labor Productivity Slows in Q4 2025 but Remains Resilient
Labor productivity in United States slowed in the fourth quarter of 2025, though overall growth remained solid and helped contain rising labor costs. Data released by the Bureau of Labor Statistics showed that nonfarm productivity—measuring output per hour worked—grew at an annualized rate of 2.8% in the final quarter of the year. The figure marked a slowdown from the revised 5.2% growth in the third quarter but still exceeded economists’ expectations of 1.9%. On an annual basis, productivity rose 2.8% year over year, while full-year 2025 productivity growth reached 2.2%, highlighting continued efficiency gains despite softer economic momentum. The moderation in productivity growth came alongside slower economic expansion, with US GDP growing at a 1.4% annualized pace in the fourth quarter, down from 4.4% in the July–September period. Meanwhile, unit labor costs—which measure labor expenses per unit of output—rose 2.8% in Q4 after declining 1.8% in the previous quarter, surpassing forecasts for a 2.0% increase. For the full year, unit labor costs increased 1.9%. Economists note that rapid adoption of artificial intelligence technologies could boost productivity in the coming years while helping reduce long-term labor cost pressures.