Morning Market Roundup: Warren Buffett’s Heir to the Throne, China 2030, G-20

Here’s what’s important in the financial world this morning:

Buffett: On Saturday in his annual investor letter, Warren Buffett said he has found a successor for Berkshire Hathaway but the person remained unnamed. Buffett does not have immediate plans to retire. He said he expects a “seamless” transition, but whether or not the new leader will keep shareholders happy post-Buffett is yet to be seen.

Berkshire also reported its fourth quarter earnings and said its profit dropped 30 percent to $3.05 billion ($1,846 per share) due to declining gains from its derivatives portfolio. Berkshire’s cash increased to $37.3 billion on Dec. 31, up from $34.8 billion from the third quarter’s end.

World Economy: Over the weekend, G-20 officials met in Mexico City and discussed various topics about the global economy. They included rising oil prices and their effect on the global recovery and changes to the Volcker Rule, which bans the proprietary trading of foreign sovereign debt. The group delayed taking any action for international support of Europe and plan to discuss it at their next meeting in April.

China: In a research report called, “China 2030″ created by a group from the World Bank and the Development Research Center of China’s State Council, it laid out steps for the country to address its risks over the next 20 years. This included a potential hard landing in the short term, an ageing and diminishing workforce, increasing inequality, environmental concerns and outside imbalances. The report also emphasized that in order for China to have a feasible expansion economically, the government’s role needs to be redefined; state-owned enterprises should decrease and markets should set interest rates.

HSBC Holdings PLC reported an annual profit of GBP 13.8 billion, up 15 percent thanks to a year of “major progress.” The company’s commercial banking unit saw a record year with its pretax profit rising almost 31 percent to GBP 5 billion. The fast-growing markets of Asia, Latin America, the Middle East and North Africa accounted for 49 percent of group revenue. The company declared a 2011 dividend of $0.41, a rise of 14 percent.

[Editor’s note: the above is a cross post that originally appeared on Wall St. Cheat Sheet.]