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Trump will consider blocking Saudi oil imports as US prices crash – Aljazeera.com

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Hours after United States benchmark crude prices stunned even hardened oil veterans with a sudden, sharp crash into negative territory, President Donald Trump said his administration will look at a proposal to block Saudi Arabian oil shipments to the US to help buoy the US shale oil industry against an unprecedented rout that threatens its survival. 

“Well, I’ll look at it,” Trump told reporters at a daily news conference after he was asked about requests by some Republican legislators to block the shipments under his executive authority.

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The May contract for West Texas Intermediate (WTI) crude went into a death spiral on Monday, plunging more than 300 percent with prices turning negative. At its lowest point, the May WTI contract touched -$40.32 before settling at -$37.63.

The contract is due to expire on Tuesday. Negative prices signals that traders are willing to pay to have oil taken off their hands.

Trump described the historic fall in oil prices as more of a short term financial squeeze on traders and said his administration would like to take advantage of historically low prices to top up the nation’s Strategic Petroleum Reserves.

The Department of Energy is in the process of leasing some of the roughly 77 million barrels of available space in the Reserve to US oil companies to help them deal with the dearth of commercial storage as the coronavirus outbreak crushes domestic energy demand.

The coronavirus pandemic has decimated oil demand globally as businesses shutter, borders close, travel is disrupted and consumers go into lockdown. Into this maelstrom, Saudi Arabia unleashed an oil-price war last month after it failed to convince Russia to join it in an aggressive output cut.

Despite an intervention by Trump that paved the way for an historic production-cut agreement of 9.7 million barrel a day between Saudi Arabia-led OPEC (The Organization of the Petroleum Exporting Countries) and its allies led by Russia, a tsunami of crude continues to overwhelm markets. 

This is acutely felt by higher-cost US shale oil producers who are running out of places to store crude with oil storage tanks at the hub in Cushing, Oklahoma nearing capacity.

On Monday, US Senator Kevin Cramer of North Dakota – a state highly dependent on revenues from oil production –  called on Trump to stop Saudi oil tankers from unloading crude on US shores.

In a statement, Cramer said: “We cannot allow Saudi Arabia to flood the market, especially given our storage capacity dwindling. Right now, the highest number of Saudi oil tankers in years is on its way to our shores.”

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Al Jazeera and news agencies

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Scotiabank's loan-loss provisions double on coronavirus risks – The Globe and Mail

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A Bank of Nova Scotia building stands in Toronto on Aug. 22, 2017.

Nathan Denette/The Canadian Press

Bank of Nova Scotia on Tuesday reported quarterly profit that beat analysts’ estimates due to a strong performance in the capital markets business, but the bank’s loan loss provisions jumped two-fold.

Provisions for loan losses at Scotia more than doubled to $1.85 billion from a year earlier as it set aside more money to meet future losses.

Canadian banks are expected to face loan defaults as the coronavirus pandemic drives the world into a recession, leaving small and medium-sized businesses scrambling to meet their debt payments.

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The bank said commercial and corporate performing loan provisions increased by $275 million, hurt by the poor macroeconomic outlook and a plunge in oil prices that impacted the energy sector globally.

Adjusted net income at its global wealth management segment rose 3 per cent to $314 million, while profit at the global banking and markets business jumped 25 per cent to $523 million.

Canada’s third-biggest lender said net income fell to $1.24 billion, or $1 per share, in the quarter ended April 30, from $2.13 billion, or $1.73 per share, a year earlier.

On an adjusted basis, the lender earned $1.04 per share, compared with analysts’ estimate for profit of $0.98 per share, according to IBES data from Refinitiv.

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Asian stocks rise, boosted by 're-opening optimism' – CNN

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Japan’s Nikkei 225 (N225) was among the biggest winners in Asia, climbing 2.6% after Prime Minister Shinzo Abe on Monday lifted the state of emergency for the entire nation and gave his support for a huge new stimulus package. Benchmark indexes in Shanghai (SHCOMP) and Taipei added 1%, while Australia’s ASX All Ordinaries added 2.8%
In Europe, Germany’s DAX (DAX) increased by 0.8% in early trading and France’s CAC 40 (CAC40) added 1.3%. The FTSE 100 (UKX) gained more than 2% in London. UK Prime Minister Boris Johnson on Monday announced plans to reopen all shops by the middle of June.
US stock futures also rose after Americans crowded onto packed beaches in Florida, Maryland, Georgia, Virginia and Indiana for the Memorial Day weekend. Many states have begun lifting restrictions on businesses and public spaces.
Dow futures were up 490 points, or around 2%. Futures for the S&P and Nasdaq added 1.9%.
There is a sense of “re-opening optimism” among investors, Stephen Innes, global market strategist at AxiCorp, wrote in a research note.
Oil prices, which have been slammed by the sharp drop in demand caused by the pandemic, jumped during Asian trading hours Tuesday. US crude futures were up 3.7% to trade at $34.46 per barrel. Brent crude, the international oil benchmark, rose 2.3% to $36.36 per barrel.

Hong Kong stocks

Hong Kong’s Hang Seng Index (HSI) advanced more than 2%, recovering some ground after investors were stunned by news last week that Beijing plans to implement a controversial national security law in the financial hub.
The Hang Seng had its worst day in nearly five years on Friday after Beijing said that it would effectively bypass Hong Kong’s legislature to enact the law.
China’s foreign ministry commissioner in Hong Kong, Xie Fang, moved to reassure rattled investors on Monday evening.
The legislation won’t affect freedoms of speech, press, publication and assembly, Xie said, according to state-run news agency Xinhua. Xie added that the controversial legislation will protect the operations of international businesses in Hong Kong.
The “clouds of dust in Hong Kong have settled quicker than anyone had expected. Local risk sentiment isn’t nearly as gnarly as everyone had feared,” said Innes.
Still, the move by Beijing is expected to fuel another round of clashes between pro-democracy protesters in Hong Kong and the city’s police force.
— CNN’s Laura He and Kaori Enjoji contributed to this report.

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Stock market news live updates: Stock futures open higher, Dow futures gain 200+ points – Yahoo Canada Finance

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Stock futures jumped Monday evening, pacing toward advances Tuesday when traders return from the Memorial Day holiday weekend in the U.S. Contracts on each of the S&P 500, Dow and Nasdaq rose more than 1% shortly after futures began trading after 6 p.m. ET.

Overseas, equities in Asia also rose, though market participants continued to eye developments around Hong Kong after China announced a new national security law that would give it more control over Hong Kong, potentially stirring up further volatility in the region and further straining relations with the U.S., with whom Hong Kong holds special trade status.

Developments around the coronavirus outbreak still remained front and center for many market participants, though signs of improving consumer behavior in the U.S. after weeks of social distancing have recently started to take hold.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Transportation Security Administration (TSA) data showed the number of travelers passing through checkpoints north of 250,000 for each of Saturday and Sunday, which, while still well below the more than 2 million during the same days last year, was well above the just 87,534 travelers from mid-April. And data from the hospitality firm STR showed hotel occupancy increased to 32.4% for the most recently reported week ended May 16, up from 21.0% the period ended April 11.” data-reactid=”19″>Transportation Security Administration (TSA) data showed the number of travelers passing through checkpoints north of 250,000 for each of Saturday and Sunday, which, while still well below the more than 2 million during the same days last year, was well above the just 87,534 travelers from mid-April. And data from the hospitality firm STR showed hotel occupancy increased to 32.4% for the most recently reported week ended May 16, up from 21.0% the period ended April 11.

“In the wake of the easing lockdowns, the economy is beginning to pick itself up from the floor, though the monthly indicators will be grim for the next few weeks because of the lags in data collection and publication,” Ian Shepherdson, chief economist for Pantheon Macroeconomics, wrote in a note. And still, many economists are forecasting double-digit percentage declines in second-quarter gross domestic product on an annualized basis, given the economic weakness in April and much of May.

Overall, U.S. Covid-19 cases rose 1.3%, or less than the past week’s average, from Sunday to Monday, according to data from Bloomberg News and Johns Hopkins University. The death toll edged up by less than by less than 1% to just under 98,000.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Individual companies and institutions also announced new developments around potential coronavirus treatments and vaccines over the long weekend. Novavax (NVAX) said Monday it began human testing of its coronavirus vaccine candidate, and expects preliminary results around the trial in July.” data-reactid=”22″>Individual companies and institutions also announced new developments around potential coronavirus treatments and vaccines over the long weekend. Novavax (NVAX) said Monday it began human testing of its coronavirus vaccine candidate, and expects preliminary results around the trial in July.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Separately, the World Health Organization (WHO) decided to temporarily pause its trial testing hydroxycholoroquine as a coronavirus treatment due to safety concerns, WHO Director-General Tedros Adhanom Ghebreyesus said during a news briefing, while noting “other arms of the trial are continuing.” Recently, President Donald Trump has touted the anti-malarial drug, typically used to treat conditions like rheumatoid arthritis and lupus, as a safe and effective treatment for COVID-19, and said in a media interview Sunday he had finished taking a two-week course of hydroxychloroquine.” data-reactid=”23″>Separately, the World Health Organization (WHO) decided to temporarily pause its trial testing hydroxycholoroquine as a coronavirus treatment due to safety concerns, WHO Director-General Tedros Adhanom Ghebreyesus said during a news briefing, while noting “other arms of the trial are continuing.” Recently, President Donald Trump has touted the anti-malarial drug, typically used to treat conditions like rheumatoid arthritis and lupus, as a safe and effective treatment for COVID-19, and said in a media interview Sunday he had finished taking a two-week course of hydroxychloroquine.

6:01 p.m. ET Monday: Stock futures open higher

Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:01 p.m. ET:

  • S&P 500 futures (ES=F): 2,986.5, up 33.5 points (+1.13%)

  • Dow futures (YM=F): 24,692.00, up 268 points (+1.1%)

  • Nasdaq futures (NQ=F): 9,517.75, up 111.5 points (+1.19%)

A man holds the hands of two young girls wearing masks as they cross the street as residents of New York City adjust to living with the ongoing outbreak of the coronavirus disease (COVID-19) in the Manhattan borough of New York U.S., May 20, 2020. REUTERS/Lucas Jackson
A man holds the hands of two young girls wearing masks as they cross the street as residents of New York City adjust to living with the ongoing outbreak of the coronavirus disease (COVID-19) in the Manhattan borough of New York U.S., May 20, 2020. REUTERS/Lucas Jackson

<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=”43″>Follow Yahoo Finance on TwitterFacebookInstagramFlipboardLinkedIn, and reddit.

<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=”44″>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 Cashay” data-reactid=”45″>For tutorials and information on investing and trading stocks, check out Cashay

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