Core Viewpoint - Caterpillar (CAT) shares fell 2.4% ahead of Friday's market open, following the company's warning that tariffs could lead to losses of $1.5 to $1.8 billion this year [1] Company Summary - Caterpillar has indicated potential financial impacts due to tariffs, estimating losses between $1.5 billion and $1.8 billion for the current year [1]

Five things to know ahead of today's opening bell. Shares of industrial giant Caterpillar, they are down in the pre-market. The company says that tariff related costs will be higher than previously forecast.For 2025, CAT is now expecting a tariff hit of between 1.5% and$ 1.8% billion. That's up from its guidance earlier this month of up to$ 1.5% billion. Meanwhile, shares of retailer Gap, they're under pressure.retailer that has Gap and Outer Republic Old Navy brands all saw comp sales increase, but Athleti ...

Core Viewpoint - Caterpillar Inc. has issued a warning to investors regarding the impact of tariffs, expecting the total effect to reach up to $1.8 billion this year, which is higher than the guidance provided in early August [1][2]. Group 1: Tariff Impact - The company anticipates that the net impact of new tariffs in the third quarter will be between $500 million and $600 million, with an overall net impact for the year projected to be between $1.5 billion and $1.8 billion [1][2]. - The previously provided guidance in August indicated a lower range of $1.3 billion to $1.5 billion for the total tariff impact, with a maximum of $500 million for the third quarter [2]. Group 2: Financial Performance - Caterpillar expects its adjusted operating profit margin for the year to be close to the lower end of its target range [2]. - Despite the adjustments in tariff impact, the company emphasized that these changes are not expected to affect its sales and revenue outlook released in August [3]. Group 3: Market Reaction - Following the announcement, Caterpillar's stock price experienced a decline, dropping as much as 3.6% in after-hours trading, and was down 2.75% at the time of reporting [4].

A Republican senator closely allied with US President Donald Trump suggested imposing tariffs on Norway in retaliation for a decision by the country’s sovereign wealth fund to divest its holdings of heavy-equipment maker Caterpillar https://t.co/6uLmTNrjAQ ...

Core Viewpoint - The world's largest sovereign wealth fund, Norway's oil fund, has divested from Caterpillar and several Israeli banks due to ethical concerns related to their involvement in actions against Palestinian property and settlements [1][2]. Group 1: Divestment Actions - Norway's oil fund has completely sold its shares in Caterpillar, which accounted for 1.2% of the company, valued at $2.1 billion as of June [1]. - The fund has also reduced its holdings in five Israeli banks that finance settlement construction in the West Bank, decreasing the number of Israeli companies it holds from 61 to 33 [1][2]. - This divestment marks the first time the fund has sold non-Israeli companies due to their actions in Israel and Palestinian territories [2]. Group 2: Ethical Considerations - The divestment was based on recommendations from Norway's Council on Ethics, which advises on companies that violate international law [2]. - The Council stated that Caterpillar's products are being used to illegally destroy Palestinian property, constituting serious violations of international humanitarian law [3][4]. - The fund's actions reflect a response to public and political pressure regarding Israel's actions in Gaza [5]. Group 3: Political Implications - Some Norwegian officials express concerns about balancing public sentiment against Israel's actions with maintaining relations with the U.S., a strong supporter of Israel [5]. - There are fears that excessive divestment could lead to repercussions from U.S. states invoking anti-boycott laws, potentially impacting Norway and the fund [5].

Group 1 - The Norwegian Sovereign Wealth Fund has withdrawn investments from one American company, Caterpillar, and five Israeli financial institutions due to ethical considerations related to human rights violations in conflict situations [1][2] - The fund's decision is based on the assessment that these companies contribute to serious infringements on personal rights during wars and conflicts, with specific mention of Caterpillar's equipment being used for large-scale destruction of Palestinian property [2][3] - As of June 30, the fund held 1.17% of Caterpillar's shares valued at $2.1 billion and a total of $661 million in shares across the five Israeli banks [2][3] Group 2 - The fund has sold its stake in an Israeli aircraft engine company that maintained military aircraft for the Israeli military, indicating a broader review of its investments in Israeli companies [3] - The fund's second-quarter report showed a 6.4% return, driven by an 8.45% return on stock investments, with significant holdings in major tech companies like Apple, Microsoft, and Nvidia [3] - The fund has reduced its holdings in major oil and gas companies, including ExxonMobil and Chevron, reflecting a strategic shift in its investment portfolio [4]

Core Viewpoint - The Norwegian Sovereign Wealth Fund has withdrawn investments from one American company and five Israeli financial institutions due to ethical concerns related to human rights violations in the context of the ongoing conflict in Gaza [2][5]. Group 1: Investment Withdrawal - The fund has sold its shares in Caterpillar, a U.S. construction and mining equipment manufacturer, and five Israeli banks: Hapoalim, Leumi, Mizrahi Tefahot, First International Bank, and FIBI Holdings [1][5]. - The decision to divest was influenced by the fund's assessment that these companies contribute to serious violations of personal rights during conflicts [5]. - As of June 30, the fund held 1.17% of Caterpillar's shares, valued at $2.1 billion, and a total of $661 million in the five Israeli banks [5]. Group 2: Fund Overview - The Norwegian Sovereign Wealth Fund is the largest sovereign wealth fund globally, with assets totaling $2 trillion, approximately 14 trillion RMB [3]. - The fund owns nearly 1.5% of all publicly listed companies worldwide, equating to shares in around 9,000 companies [5]. Group 3: Recent Performance - In the second quarter, the fund achieved a return rate of 6.4%, marking its best quarterly performance since the beginning of 2023, driven by an 8.45% return from stock investments [6]. - The fund has reduced its holdings in major oil and gas companies, including ExxonMobil and Chevron, with the stake in ExxonMobil decreasing from 1.46% to 1.32% [7].

Core Insights - The world's largest sovereign wealth fund, Norges Bank Investment Management (NBIM), has divested from U.S. machinery manufacturer Caterpillar and five Israeli banks due to concerns over their involvement in conflicts in the West Bank [2][3] - NBIM's decision was influenced by its ethics council, highlighting the risk of these companies contributing to serious violations of individual rights in war situations [3] - The fund's divestment includes a $2.4 billion stake in Caterpillar, which was reportedly involved in the unlawful destruction of Palestinian property [4] Company Actions - NBIM will divest from several Israeli banks, including First International Bank of Israel, Bank Leumi, Mizrahi Tefahot Bank, and Bank Hapoalim, due to their financial services supporting construction in Israeli settlements deemed illegal under international law [5] - The fund is under increasing political and public pressure to divest from firms linked to conflicts in Palestinian territories, especially with upcoming elections in Norway [6] Investment Strategy - NBIM is reviewing its investments in Israeli companies following a request from Norway's Ministry of Finance, which raised concerns about the situation in Gaza and the West Bank [7] - The fund plans to sell all holdings in Israeli companies outside its equity benchmark index and has already reduced the number of Israeli companies in its benchmark from 56 to 38 [7] - NBIM is balancing its mandate to generate high net returns while managing potential political backlash in the U.S., where approximately 55% of its equity investments are located [8]

Investment Decision - Norway's 2 trillion USD sovereign wealth fund excluded Caterpillar [1] Ethical Considerations - Exclusion based on Israel's use of Caterpillar bulldozers to destroy Palestinian property in Gaza and the West Bank [1]

Core Points - The Norwegian Sovereign Wealth Fund announced the divestment from one American company and five Israeli financial institutions due to ethical considerations, citing serious violations of personal rights in the context of war and conflict [1][2] - The divested companies include Caterpillar Inc., which held 1.17% of the fund's shares valued at $2.1 billion, and two major Israeli banks, Bank Hapoalim and Bank Leumi, with a total value of $661 million in shares [1] Group 1 - The Norwegian Sovereign Wealth Fund, managed by the Norwegian Central Bank, is the largest sovereign wealth fund globally, with assets totaling $2 trillion [1] - The fund's ethical council stated that Caterpillar's products are used by Israeli authorities for large-scale illegal destruction of Palestinian property, while the Israeli banks contribute to maintaining Israeli settlements through financial services [1] Group 2 - The fund's leadership indicated a review of its investments in Israeli companies due to the humanitarian crisis in Gaza, suggesting potential further divestments [2] - On June 30, the fund had already announced the divestment from six companies associated with the situation in the West Bank and Gaza, with plans to disclose the names and reasons for these divestments [2]