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Airline shares tank after Warren Buffett reveals he dumped airline stocks – Yahoo Canada Finance

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Shares of airline stocks are tumbling on Monday morning after billionaire investor Warren Buffett said Berkshire Hathaway (BRK-A,&nbsp;BRK-B)&nbsp;exited all of its airline stock holdings earlier this month. He made the comments during Berkshire’s annual shareholders’ meeting on Saturday.” data-reactid=”16″>Shares of airline stocks are tumbling on Monday morning after billionaire investor Warren Buffett said Berkshire Hathaway (BRK-ABRK-Bexited all of its airline stock holdings earlier this month. He made the comments during Berkshire’s annual shareholders’ meeting on Saturday.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="American Airlines (AAL), Delta (DAL), and United Continental Holdings (UAL) all dropped more than 12% on Monday, while Southwest Airlines (LUV) fell more than 8%.” data-reactid=”17″>American Airlines (AAL), Delta (DAL), and United Continental Holdings (UAL) all dropped more than 12% on Monday, while Southwest Airlines (LUV) fell more than 8%.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Berkshire picked up large positions in the airlines in late 2016, years after Buffett had sworn off buying an airline stock.” data-reactid=”18″>Berkshire picked up large positions in the airlines in late 2016, years after Buffett had sworn off buying an airline stock.

In a departure from his normal practices, Buffett went into detail about transactions he made in April, which would normally be disclosed in an SEC 13-F regulatory filing several weeks after the close of the second quarter. Specifically, he said in April that Berkshire sold $6 billion worth of securities from its massive stock portfolio.

“I wouldn’t normally talk about it, but I think it requires an explanation,” he said on Saturday. “We were not disappointed at all in the businesses that were being run and the management, but we did come to a different opinion on it.”

Because of the COVID-19 pandemic, airlines are among the industries being hurt by an exogenous shock “far beyond their control,” Buffett said. He later added that if Berkshire owned airlines now, “it would be a tough decision to decide whether to sustain billions of dollars in operating losses when you don’t know how long it’s going to happen or occur.”

Warren Buffett, chairman and CEO of Berkshire Hathaway (Yahoo Finance)
Warren Buffett, chairman and CEO of Berkshire Hathaway (Yahoo Finance)

Buffett also suggested that the pandemic might also change consumer behavior long-term, pointing out that he hasn’t cut his hair in seven weeks and has been wearing a sweatsuit instead of a suit.

“The world has changed for the airlines, and I don’t know how it’s changed, and I hope it corrects itself in a reasonably prompt way,” he said. “I don’t know whether the Americans will have now changed their habits or will change their habits because of an extended period if it happens that we’re semi shut down in the economy.”

Earlier, the “Oracle of Omaha” said the “future is much less clear” to him as to how business will turn out on the other side of the pandemic. What’s more, he said, if the airline business comes back at 70% or 80% there will still likely be “too many planes” and an “oversupply of airline seats.”

“[It] didn’t look that way when the orders were placed a few months ago when arrangements were made,” he said. “But the world changed for airlines and I wish them well.”

Click here for complete coverage of Warren Buffett and Berkshire Hathaway.Click here for complete coverage of Warren Buffett and Berkshire Hathaway.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Julia La Roche is a Correspondent at Yahoo Finance. Follow her on&nbsp;Twitter.&nbsp;” data-reactid=”50″>Julia La Roche is a Correspondent at Yahoo Finance. Follow her on Twitter

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All Addition Elle and Thyme Maternity stores in Canada to close down – CBC.ca

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Reitmans will shutter 77 Addition Elle and 54 Thyme Maternity stores across Canada as part of its restucturing process, the Montreal-based retailer announced Tuesday.

Last month, the 94-year-old fashion chain announced that it would restructure its operations partly because of COVID-19, which hammered retailers hard.

In addition to its eponymous chain focusing on work clothes for career-aged women, Reitmans also runs the Addition Elle, Thyme Maternity, RW & Co. and Penningtons chains.

As past of the restructuring process, Reitmans has decided to permanently close Addition Elle and Thyme Maternity. The former focuses on plus size fashions. The latter on maternity wear.

The move will result in the loss of about 1,400 jobs — 1,100 in store and about 300 at head office.

Reitmans has been around sine 1926 but the COVID-19 pandemic hurt the retail business hard. (Evan Mitsui/CBC)

“The strategic decision to close two beloved Canadian fashion brands was not made lightly, but it is necessary to enable our business to move forward as a profitable organization,”  CEO Stephen Reitman said.

“All of the efforts we put forth to turn these brands around were derailed by the COVID-19 pandemic and, unfortunately, we can no longer afford the required resources to bring them back to profitability.”

Locations of both chains are set to reopen in the coming days, subject to physical distancing restrictions across the country, but the two retail chains will be in wind-down mode, liquidating as much inventory as possible to pay back creditors.

The last day for Thyme Maternity will be July 18.

The last day for Addition Elle will come the next month, on August 15.

Company wide, before the restructuring process began Reitmans had 576 stores across Canada, including 259 Reitmans, 106 Penningtons and 80 RW & CO. locations. Many stores for the surviving three brand names will also close, as the company plans to put more focus into selling online.

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Bell selects Ericsson, not Huawei, to build 5G cellular network – CBC.ca

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BCE Inc. has decided to partner with Swedish telecommunications equipment maker Ericsson to build its 5G network in Canada.

The Montreal-based telecom firm said in a press release Tuesday that it will use Ericsson equipment to build its next generation cellular network, known as 5G.

Ericsson is already a component supplier for Bell’s existing networks, including 4G, but 5G will allow the network to handle far more quantities of data, faster.

“Bell’s 5G strategy supports our goal to advance how Canadians connect with each other and the world, and Ericsson’s innovative 5G network products and experience on the global stage will be key to our rollout of this game-changing mobile technology across Canada,” BCE president Mirko Bibic said, citing Ericsson’s existing role in 92 other 5G cellular networks around the world.

The decision means BCE will not be using 5G equipment from Huawei, a Chinese equipment maker that is currently installed on existing networks around the world, including Bell’s. But many countries around the world say Huawei’s close relationship with the Chinese government could expose cellular networks to spying.

The United States and Australia have forbidden telecom firms in those countries from working with Huawei to develop their 5G networks.

The Canadian government is currently mulling whether to allow Huawei to work on Canadian 5G networks, as part of a comprehensive governmental review of cybersecurity protocols.

BCE rival Rogers also announced in 2018 that it would work with Ericsson on its 5G network. Telus, meanwhile, announced this past February that it would use Huawei equipment in its 5G network.

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Stock market news live updates: Stock futures steady amid unrest, US-China tensions – Yahoo Style

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Stocks were slightly positive Monday, steadying against a backdrop of protracted protests in some of the nation’s largest cities, many of which had already been struggling to reopen amid the coronavirus outbreak.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="[Click here to read what’s moving markets heading into Tuesday, June 2]” data-reactid=”17″>[Click here to read what’s moving markets heading into Tuesday, June 2]

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Market participants also eyed tensions between the U.S. and China, after Bloomberg and Reuters reported China had ordered some state-run agricultural companies to halt purchases of American farm goods.” data-reactid=”18″>Market participants also eyed tensions between the U.S. and China, after Bloomberg and Reuters reported China had ordered some state-run agricultural companies to halt purchases of American farm goods.

This came after President Donald Trump on Friday said his administration would take action to respond to China’s crackdown on Hong Kong, including removing Hong Kong’s preferential trade status with the U.S. and requesting a working group study Chinese companies listed on U.S. stock exchanges for potential unfair financial practices.

The protests over the past several days centered on constituents’ outrage over the death of George Floyd, who was killed by police in Minneapolis last week in one of the latest public instances of police brutality against an unarmed black man.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Demonstrations since erupted in dozens of cities across the nation, accompanied by looting and destruction of some retail stores and other large and small businesses. The escalation of these protests led governors in two dozen states including Minnesota, California, Illinois and Washington to activate the National Guard, along with mayors in some cities to impose curfews.” data-reactid=”21″>Demonstrations since erupted in dozens of cities across the nation, accompanied by looting and destruction of some retail stores and other large and small businesses. The escalation of these protests led governors in two dozen states including Minnesota, California, Illinois and Washington to activate the National Guard, along with mayors in some cities to impose curfews.

“Mass gatherings could spark concerns about a second wave of the virus. We’ll let the medical experts handle this debate, but will weigh in on why this matters for stocks,” Lori Calvasina, head of U.S. equity strategy for RBC Capital Markets, said in a note Monday. “It bears on how quickly the US economy can get back to something resembling normal. Second wave fears could halt reopening or keep behavior cautious.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A number of major companies temporarily changed operations as they assessed the violence that ensued in recent days. Target (TGT) which is headquartered in Minneapolis and has 73 stores in Minnesota, closed or adjusted hours at 200 stores this weekend. Meanwhile, tech giant Amazon (AMZN) shifted delivery routes in some cities due to the protests, Amazon confirmed in an email to Yahoo Finance after a Bloomberg report, and Apple (AAPL) reportedly extended store closures of some of its outlets.” data-reactid=”23″>A number of major companies temporarily changed operations as they assessed the violence that ensued in recent days. Target (TGT) which is headquartered in Minneapolis and has 73 stores in Minnesota, closed or adjusted hours at 200 stores this weekend. Meanwhile, tech giant Amazon (AMZN) shifted delivery routes in some cities due to the protests, Amazon confirmed in an email to Yahoo Finance after a Bloomberg report, and Apple (AAPL) reportedly extended store closures of some of its outlets.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A number of other corporate executives – including BlackRock CEO Larry Fink, Goldman Sachs CEO David Solomon, Citi CFO Mark Mason and Apple CEO Tim Cook – also issued public remarks on the protests and the events that spurred them.” data-reactid=”24″>A number of other corporate executives – including BlackRock CEO Larry Fink, Goldman Sachs CEO David Solomon, Citi CFO Mark Mason and Apple CEO Tim Cook – also issued public remarks on the protests and the events that spurred them.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="These developments coincided with a historic downturn in the U.S. economy, rendering tens of millions of Americans jobless as the coronavirus pandemic and measures to contain it swept the country and world. Though many states and cities across the U.S. have begun to undergo a phased reopening process, many economists expect domestic data to hold at very low levels for now. The Labor Department’s May jobs report set for release later this week is expected to show the unemployment rate jump to a record high of 19.6%,&nbsp;the highest based on monthly&nbsp;Bureau of Labor Statistics (BLS) data spanning back to 1948.&nbsp;” data-reactid=”25″>These developments coincided with a historic downturn in the U.S. economy, rendering tens of millions of Americans jobless as the coronavirus pandemic and measures to contain it swept the country and world. Though many states and cities across the U.S. have begun to undergo a phased reopening process, many economists expect domestic data to hold at very low levels for now. The Labor Department’s May jobs report set for release later this week is expected to show the unemployment rate jump to a record high of 19.6%, the highest based on monthly Bureau of Labor Statistics (BLS) data spanning back to 1948

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="4:04 p.m. ET: Stocks rise in first session of June, stabilizing amid protests and US-China tensions” data-reactid=”27″>4:04 p.m. ET: Stocks rise in first session of June, stabilizing amid protests and US-China tensions

Here were the main moves in markets as of 4:04 p.m. ET:

  • S&P 500 (^GSPC): +11.42 (+0.38%) to 3,055.73

  • Dow (^DJI): +91.91 (+0.36%) to 25,475.02

  • Nasdaq (^IXIC): +62.18 (+0.66%) to 9,552.05

  • Crude (CL=F): +$0.06 (+0.17%) to $35.55 a barrel

  • Gold (GC=F): -$1.20 (-0.07%) to $1,750.50 per ounce

  • 10-year Treasury (^TNX): +1.4 bps to yield 0.6620%

2:44 p.m. ET: US crude oil prices tick down 0.1%, or 5 cents, to $35.44 per barrel

Futures for U.S. West Texas intermediate edged down 0.1%, or 5 cents, to $35.44 per barrel Monday. The commodity held onto May’s gains, which sent prices up more than 80% for the month as states’ reopenings stoked hopes of a rebound in energy demand.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Earlier in the session Monday, multiple media outlets reported that OPEC and Russia were weighing extensions of oil output cuts, which would help ease months-long concerns of a global supply glut.” data-reactid=”39″>Earlier in the session Monday, multiple media outlets reported that OPEC and Russia were weighing extensions of oil output cuts, which would help ease months-long concerns of a global supply glut.

12:45 p.m. ET: New York Governor Andrew Cuomo considers curfew for NYC amid unrest

New York Governor Andrew Cuomo said during his daily coronavirus briefing Monday he is weighing a possible curfew in New York City following unrest, lootings and vandalism of stores over the weekend.

“Something has to get done because last night was not acceptable,” he said during the briefing.

Separately, New York state reported a daily death toll of 54 on May 31 from the coronavirus, or the lowest level so far in the period after the virus’s peak. Overall, new cases of the coronavirus in New York state fell below 1,000 for the first time in 11 weeks.

10:13 a.m. ET: Stocks turn positive, led by Financials

The three major indices turned positive Monday morning after opening slightly lower. The Financials and Consumer Discretionary sectors led gains in the S&P 500, while Boeing, American Express and Goldman Sachs led advances in the Dow.

Here’s where the three major indices were trading as of 10:13 a.m. ET:

  • S&P 500 (^GSPC): +5.23 points (+0.17%) to 3,049.54

  • Dow (^DJI): +57.14 points (+0.23%) to 25,440.25

  • Nasdaq (^IXIC): +26.33 points (+0.28%) to 9,518.12

10:03 a.m. ET: Construction spending falls 2.9% April, or less than expected

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Construction spending in the U.S. declined by 2.9% in April over the prior month, the Census Bureau said in its monthly report. This was a less drastic decline than expected, with consensus economists bracing for a 7.0% drop in construction spending for the month.” data-reactid=”59″>Construction spending in the U.S. declined by 2.9% in April over the prior month, the Census Bureau said in its monthly report. This was a less drastic decline than expected, with consensus economists bracing for a 7.0% drop in construction spending for the month.

March’s construction spending was revised to unchanged from a 0.9% gain previously reported.

By category, private construction spending declined 3.0% in April, comprising a 4.5% drop in residential construction spending and a 1.3% drop in nonresidential spending. Government construction spending fell 2.5% in April.

10:00 a.m. ET: ISM Manufacturing PMI ticks up less than expected in May

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Institute for Supply Management’s manufacturing purchasing managers’ index (PMI) rose to 43.1 in May, but missed consensus estimates for 43.8. However, the reading stabilized slightly from April’s 11-year low of 41.5.” data-reactid=”64″>The Institute for Supply Management’s manufacturing purchasing managers’ index (PMI) rose to 43.1 in May, but missed consensus estimates for 43.8. However, the reading stabilized slightly from April’s 11-year low of 41.5.

Subindices tracking new orders, prices paid and employment each rose marginally from April’s low levels. All of these were still in contractionary territory, or below the neutral level of 50.0.

“The coronavirus pandemic impacted all manufacturing sectors for the third straight month. May appears to be a transition month, as many panelists and their suppliers returned to work late in the month,” Timothy Fiore, Chair of the Institue for Supply Management, said in a statement. “However, demand remains uncertain, likely impacting inventories, customer inventories, employment, imports and backlog of orders.”

9:45 a.m. ET: Decline in U.S. manufacturing activity suggests ‘any recovery will be frustratingly slow’: IHS Markit

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="U.S. manufacturing activity held in deeply contractionary territory in May, according to IHS Markit’s final monthly purchasing managers’ index. The manufacturing PMI registered at 39.8 in the final print, matching the advance print. This followed a reading of 36.1 in April.” data-reactid=”69″>U.S. manufacturing activity held in deeply contractionary territory in May, according to IHS Markit’s final monthly purchasing managers’ index. The manufacturing PMI registered at 39.8 in the final print, matching the advance print. This followed a reading of 36.1 in April.

Readings below the neutral level of 50.0 indicate contraction in a sector.

“Manufacturing remained in a deep downturn in May, as measures taken to contain the spread of COVID-19 continued to cause production losses, disrupt supply chains and hit demand,” Chris Williamson, chief business economist at IHS Markit, said in a statement. “Job losses meanwhile continued to run at one of the highest rates in over a decade, and pricing power has collapsed.”

“There remains a high risk that any recovery will be frustratingly slow as ongoing social distancing measures, high unemployment, job insecurity and damaged balance sheets constrain consumer and business spending,” he added. “The recovery will of course also fade quickly if virus infections start to rise again. For now, however, we focus on the good news that we may be past the worst in terms of the economic decline.”

9:31 a.m. ET: Stocks open mostly lower

Here were the main moves in markets, as of 9:31 a.m. ET:

  • S&P 500 (^GSPC): -9.27 points (-0.3%) to 3,035.04

  • Dow (^DJI): -98.94 points (-0.39%) to 25,284.17

  • Nasdaq (^IXIC): -4.89 points (-0.03%) to 9,485.95

  • Crude (CL=F): -$0.92 (-2.59%) to $34.57 a barrel

  • Gold (GC=F): -$5.90 (-0.43%) to $1,745.80 per ounce

  • 10-year Treasury (^TNX): +3.5 bps to yield 0.679%

7:23 a.m. ET Monday: Stock futures mixed

Here were the main moves in markets, as of 7:23 a.m. ET:

  • S&P 500 futures (ES=F): 3,044.00, up 2 points (+0.07%)

  • Dow futures (YM=F): 25,422.00, up 44 points (+0.17%)

  • Nasdaq futures (NQ=F): 9,540.5, down 19.75 points (-0.21%)

  • Crude (CL=F): -$0.99 (-2.94%) to $32.72 a barrel

  • Gold (GC=F): -$8.20 (-0.47%) to $1,743.50 per ounce

  • 10-year Treasury (^TNX): +2 bps to yield 0.664%

6:04 p.m. ET Sunday: Stock futures open lower

Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:04 p.m. ET:

  • S&P 500 futures (ES=F): 3,017.75, down 24.25 points (-0.8%)

  • Dow futures (YM=F): 25,378.00, down 79 points (-0.31%)

  • Nasdaq futures (NQ=F): 9,476.00, down 84.25 points (-0.88%)

Protesters completely surround a line of police officers during nationwide unrest following the death in Minneapolis police custody of George Floyd, in Raleigh, North Carolina, U.S. May 30, 2020. Picture taken May 30, 2020. REUTERS/Jonathan Drake
Protesters completely surround a line of police officers during nationwide unrest following the death in Minneapolis police custody of George Floyd, in Raleigh, North Carolina, U.S. May 30, 2020. Picture taken May 30, 2020. REUTERS/Jonathan Drake

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