A New Era for Berkshire Hathaway Begins; Up to 50% off London Homes; it’s TACO Thursday; and Outer Space Gets a Lot More Crowded

21st January 2025

Warren Buffett’s long-awaited successor, Greg Abel, is already making waves as he steps into the spotlight with a potential shake-up of Berkshire Hathaway’s prized Kraft Heinz stake, signaling that the post-Buffett era may be far less sentimental. In the UK, central London house prices are sliding at their fastest pace since the financial crisis, raising a once-unthinkable question: is the capital finally becoming affordable again for buyers priced out for a decade?

Markets, meanwhile, are snapping back into risk-on mode as the so-called “TACO trade” — Trump Always Chickens Out — makes another appearance, sending stocks higher after fresh tariff threats quietly fade. And in orbit, Jeff Bezos is preparing to challenge Starlink with a satellite network designed not for consumers, but for data centers, governments, and enterprise clients — a bold move that could reshape the economics of global connectivity.

All this and more in today’s Read It And Eat!

MAJOR HEADLINES 

• Warren Buffett's successor eyes selling off Berkshire Hathaway's 325 million Kraft Heinz shares

Berkshire Hathaway’s newly installed CEO is signaling a potential shift away from one of Warren Buffett’s most symbolic investments: Kraft Heinz. In a regulatory filing, the food giant disclosed that Berkshire may consider selling its 325 million shares, a stake dating back to the high-profile 2015 merger Buffett helped engineer alongside private equity firm 3G Capital.

The possible divestment would mark the successor’s first major strategic decision and a clear departure from Buffett’s long-standing patience with underperforming holdings. Kraft Heinz has struggled for years with slowing growth, brand erosion, and write-downs, making it a laggard within Berkshire’s portfolio despite its iconic status.

While no sale has been confirmed, the disclosure alone underscores a broader recalibration underway at Berkshire. Investors are watching closely to see whether the new leadership will prioritize portfolio discipline over legacy loyalty, potentially ushering in a more active capital allocation era at the conglomerate. Yahoo Finance 

• Inner London house prices fall at fastest rate since global financial crisis

House prices in inner London are falling at their sharpest pace since the global financial crisis, highlighting the deepening strain on the UK housing market. Prices dropped 4.6% year-on-year, accelerating from a 4.3% decline in October and marking the steepest contraction in more than a decade.

The downturn reflects a convergence of pressures: higher mortgage rates, stretched affordability, weak buyer demand, and a post-pandemic recalibration of where people choose to live. Prime central districts, once insulated by international buyers and wealth inflows, are now among the hardest hit.

The trend raises broader concerns for the UK economy, as housing has long been a key driver of consumer confidence and wealth effects. If price declines spread beyond London’s core, policymakers may face renewed pressure to stimulate the market amid an already fragile economic backdrop. Financial Times

• Trump backs off from tariff threat over Greenland

President Donald Trump has stepped back from a threatened wave of tariffs against European countries tied to opposition over Greenland, signaling a temporary de-escalation in transatlantic trade tensions. Trump said a framework agreement had been reached with NATO leadership, prompting him to suspend tariffs that were set to take effect on February 1.

The announcement marks a tactical retreat after weeks of heightened rhetoric, during which Trump linked trade penalties to Europe’s resistance to U.S. ambitions involving Greenland. While details of the proposed framework remain unclear, the move suggests diplomacy has, for now, overtaken confrontation.

Markets welcomed the pause, but uncertainty lingers. Trump’s willingness to weaponize tariffs for geopolitical leverage remains a persistent risk, leaving businesses and allies wary that trade policy could once again become a flashpoint in broader strategic disputes. Yahoo Finance 

• Jeff Bezos' Blue Origin launches satellite internet service to rival SpaceX, Amazon

Jeff Bezos’ space company Blue Origin has unveiled plans to launch a massive satellite internet network, escalating competition in the rapidly expanding space-based communications market. The project, dubbed TeraWave, aims to deploy 5,408 satellites to provide high-speed connectivity primarily to enterprise, data center, and government customers.

The move positions Blue Origin against heavyweights such as SpaceX’s Starlink and Amazon’s Project Kuiper, intensifying rivalry in a sector increasingly viewed as critical infrastructure. Unlike consumer-focused networks, TeraWave’s emphasis on institutional clients suggests a strategy centered on higher-margin, mission-critical services.

The announcement underscores how satellite internet is becoming a strategic battleground, blending commercial opportunity with national security considerations. As space becomes more crowded, execution, regulatory approval, and launch capacity will determine which players ultimately dominate the next generation of global connectivity. CNBC

MINOR HEADLINES 

• BofA will award $1B in equity bonuses to all non-exec employees Fox business 

• Supreme Court expresses scepticism over Trump’s bid to sack Lisa Cook  Financial Times 

• Amazon launches AI health-care tool for One Medical members CNBC

• Global fund managers are the most bullish since July 2021 Reuters

• Apple to Revamp Siri as a Built-In iPhone, Mac Chatbot to Fend Off OpenAI Yahoo Finance 

• Elizabeth Holmes Asks Trump for Early Prison Release After Fraud. Yahoo Finance