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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

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Find live stock market quotes and the latest business and finance news” data-reactid=”55″>Find live stock market quotes and the latest business and finance news

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For tutorials and information on investing and trading stocks, check out&nbsp;Cashay” data-reactid=”56″>For tutorials and information on investing and trading stocks, check out Cashay

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Follow Yahoo Finance on&nbsp;Twitter,&nbsp;Facebook,&nbsp;Instagram,&nbsp;Flipboard,&nbsp;LinkedIn, and&nbsp;reddit.” data-reactid=”57″>Follow Yahoo Finance on TwitterFacebookInstagramFlipboardLinkedIn, and reddit.

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TSX Composite ends strong week on a down note – BNN

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TORONTO — Canada’s main stock index wrapped up a solid week on a down note while U.S. markets were closed for the Independence Day holiday.

Crude oil and gold prices were down a little bit but not enough to “really spook” the market so the Toronto Stock Exchange followed the path set in Europe where investors took some profits after recent gains, said Philip Petursson, chief investment strategist at Manulife Investment Management.

“It’s kind of one of those wishy-washy days where when you don’t have the leader, which is the U.S. equity markets, 1/8so 3/8 the market is searching for direction,” he said in an interview.

Petursson said the market is hitting that third phase of exhaustion after the prior two of a bear market and a sharp rebound.

“In this phase what we’re doing is we’re waiting for the results and it’s not necessarily just the economic results, more importantly its the earnings results or anything that leads to a positive earnings outlook in Q4 or into 2021 to really drive the market to that next leg higher.”

Second-quarter earnings, which start mid-month are expected to be very bad, said Petursson.

“No matter what the earnings look like the market is just going to shrug it off,” he said.

Rather than recent performance, investors are going to be looking for signs in company guidance that “baby steps” are being taken back to normal despite the increase in COVID-19 infections in the United States.

The S&P/TSX composite index closed down 25.65 points at 15,596.75. It ended the week up 2.7 per cent on a rise in oil and gold prices.

The Canadian dollar also appreciated with oil surpassing US$40 a barrel. It traded for 73.72 cents US compared with 73.61 cents US on Thursday.

Petursson expects the loonie will reach 75 to 77 cents as crude rises to US$45 per barrel, gaining to hit about US$60 over some 18 months.

On Friday, the August crude contract was down 33 cents at US$40.32 per barrel and the August natural gas contract was up 1.6 cents at US$1.75 per mmBTU.

Husky Energy Inc. was the weakest performer as its shares dropped 2.6 per cent, followed by Vermilion Energy Inc. at 2.1 per cent and Cenovus Energy Inc. off two per cent.

Nine of the 11 major sectors on the TSX were lower amid low trading because of the U.S. holiday.

Health care, real estate and materials decreased.

The August gold contract was down US$2.70 at US$1,787.30 an ounce and the September copper contract was down 2.75 cents at US$2.72 a pound.

Consumer staples and telecommunications were slightly higher.

The market choppiness should continue, rising one day and then dipping as investors take some profits, Petursson said.

“This is what I expect to happen until the fall where I think we will have a better picture on what the start of 2021 is going to look like, not only with respect to COVID, more importantly to earnings.

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Oil Prices Fall As Demand Outlook Worsens In U.S. – OilPrice.com

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Oil Prices Fall As Demand Outlook Worsens In U.S. | OilPrice.com

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

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    Oil prices fell early on Friday amid surging new coronavirus infections in the United States, which had market participants worried about the U.S. oil demand recovery trend.

    As of 9:20 a.m. EDT on Friday, WTI Crude was down 1.28 percent at $40.13, and Brent Crude traded down 1.23 percent at $42.61. Prices recovered somewhat later in the afternoon but were still trading about 1% off.

    Oil prices were still headed for a weekly gain this week as low supply from OPEC, encouraging economic data from the U.S. and China, and a drop in U.S. commercial inventories had supported prices earlier this week.

    However, the U.S. reported on Thursday its highest level of new daily coronavirus cases so far—at more than 55,000, raising fears that a surge in infections will dent the gradual oil demand recovery in America, which consumers 20 percent of the world’s daily oil supply.

    Nearly half of the U.S. states have either paused or rolled back the easing of the restrictions, Texas governor Greg Abbot mandated statewide face-covering in public spaces, while Florida reported more than 10,000 coronavirus cases in a new grim record. Related: U.S. Shale Needs To Rethink Its Strategy To Survive

    Earlier this week, oil prices rallied after the EIA reported a draw of 7.2 million barrels in crude oil inventories in the United States in the week to June 26, down from an all-time high level of inventories reached the previous week.  

    A Bloomberg survey of OPEC’s crude oil production in June showed that the cartel’s output fell to a three-decade low of 22.69 million barrels per day (bpd), as Saudi Arabia fulfilled its promise to cut an additional 1 million bpd on top of its quota in the OPEC+ pact.

    Apart from tightening supply, oil prices were supported this week by optimistic economic news from the U.S. and China. In the United States, the economy regained 4.8 million jobs last month, data showed on Thursday, which sent equity and oil markets rallying. In China, the manufacturing sector conditions continued to improve in June, the Caixin China General Manufacturing PMI showed, while the Caixin China General Services survey showed on Friday that China’s services sector activity expanded at its fastest pace in a decade and business confidence improved to a three-year high.  

    By Tsvetana Paraskova for Oilprice.com

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      Canada's biggest banks join boycott of Facebook platforms – Reuters

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      FILE PHOTO: The Facebook logo is displayed on a mobile phone in this picture illustration taken December 2, 2019. REUTERS/Johanna Geron/Illustration/File Photo

      TORONTO (Reuters) – Canada’s biggest lenders confirmed on Friday they had joined a widespread boycott of Facebook Inc (FB.O) begun by U.S. civil rights groups seeking to pressure the world’s largest social media platform to take concrete steps to block hate speech.

      More than 400 brands have pulled advertising on Facebook in response to the “Stop Hate for Profit” campaign, begun after the death of George Floyd, a Black man who died in police custody in Minneapolis on May 25.

      Canadian lenders Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO), Bank of Nova Scotia (BNS.TO), Bank of Montreal (BMO.TO), National Bank of Canada (NA.TO) and Canadian Imperial Bank of Commerce (CM.TO) all said they will pause advertising on Facebook platforms in July.

      Desjardins Group, Canada’s largest federation of credit unions, also said on its website on Thursday it will pause advertising on Facebook and Instagram for the month “barring any exceptional situations where we need to communicate with our members or clients.”

      Most cited their commitments to inclusion and diversity.

      Facebook has opened itself up to a civil rights audit and has banned 250 white supremacist organizations from Facebook and Instagram, a spokesman said by email. Its investments in artificial intelligence mean it finds nearly 90% of hate speech it takes action on before users report it, he added.

      BMO said it is continuing its “ongoing dialogue with Facebook on changes they can make to their platforms to reduce the spread of hate speech.”

      RBC said one way to help clients and communities is to stand against “misinformation and hate speech, which only make systemic racism more pervasive.”

      Reporting by Nichola Saminather in Toronto; Editing by Matthew Lewis and Marguerita Choy

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