Today's blog is a challenge because over the weekend I have lost my ability to write on a keyboard. This resulted from a visit by Spectrum-Charter on Saturday allegedly restoring my access to the internet which was cut off when the telephone was fixed. In fact, it cut off my desktop clunker, the attached keyboard, and even the printer. So I am writing on the mail site to eventually past the blog on-line, as I am also barred from writing on the site, allegedly for security. I intend to buy a software package from macrohard or some other vendor but I was staying in the office yesterday in case I can get help. It all seems to be the result of a Microsoft upgrade that the techie installed because this turns out to be a gap in the 2018 upgrade of windows for old desktops. 

What we are seeing in fact is that many groups in the web sphere have almost monopoly power and can force people to buy services they already bought before for older computers. There is not enough competition in tech. I am a Microsoft shareholder. I love the rally we were seeing yesterday, even if MSFT is not rising. But I am also a proponent of competition.

Yesterday the NYSE floor reopened which boosted stocks and spirits.

Banks

*Yesterday we had a result from Bank of Nova Scotia BNS which led the Canada pack with a surprisingly good net profit for its Q1, along with a flat dividend. This came despite a rigorous boost to loan loss provisions now at 1.19% of loans out (vs .61% in the prior quarter) and ones for weaker economic outlook because of the coronavirus. It also took a charge for shuttering its precious metals business in Britain, of C$212 mn. The numbers are down sharply but not as sharply as consensus forecasts expected. 

Net income was C$1.324 bn, down 41.5% from the prior-year level of 2.326 bn. The adjusted net was C$1.371 bn. Revenues were C$7.965 bn vs 8.141 bn. 

Earning/share were down 39% from prior year at 1.04 C$ vs 1.73 in the prior year. The dividend at 90 loony cents was flat, but yield now is 7.1%

There was one big negative--emerging markets. And some positives: a boosted digital banking system, both Tangerine and iTrade, used for the first time for Canada's relief programs. Another was a 4% rise in global wealth management levels, to C$31.4 mn. Global banking earnings rose 25% to C$523 mn. BNS shares on Wall Street are up 9.28%. 

Barclays analyst John Aiken wrote that his bank expected EPS of only 76 loony cents and the consensus was 91 cents. This is the first of the Bay 
Street results, and if they go on this way Canadian banking will look good.

*Its rise has also boosted that of Banco Latino-Americano de Comercio, BLX, up 8.74%. 

*Saudi Arabia's wealth fund bought Sumitomo Mitsui Financial Group SMFG shares, one reason they have done so well lately. We bought them for the program to reuse car batteries for street lighting.

Tech & Tel

*Abhimanyu writes from India: Reliance Chief Mukesh Ambani is now plotting to list Jio overseas after his $16 bn in recent deals. I think he may list in the USA where Chinese companies may be delisted.

*At Beijing's command, Tencent is planning to invest $70 bn in @infrastructure@, meaning te cloud, artificial intelligence, cyber-security, data centers, Internet of Things, Quantum computing, etc etc etc over the next 5 years. It is up 5.5% in Hong Kong because it is making nice to China.

*Renishaw RNSHF (metrology) was up 21.9% after trading a second time this year in the US. is hard to track here but it is now $49.07.

Pharmaceuticals

*Novo Nordisk NVO is spending up to DKK 17 bn this year buying back its stock. The Danish firm bought back 0.6% of its shares out so far (to May 11) for DKK 6.2 mn.

*Teva TEVA offered free hydroxychloroquine doses for US testing hoping thereby to be exempt from the charges of collusion on drug pricing but, alas, the WHO says the drug is useless against coronavirus and may cause other side effects. This was too slick by half. Now TEVA will hold its AGM virtually next month. TEVA was up 2.5% in Europe yesterday, at $12.26.

*Gilead's GILD remdesivir was written up in the New England Journal of Medicine, It cut recovery time by a third for Covid-19 patients.

*Moderna's MRNA vaccine will be available at the end of this calendar year.

*Novavax NVAX opened human trials of its vaccine in Australia and it will continue trials in the US if it works by July.

Funds

*Fibra Uno FBASF gained 2.8% in Mexico yesterday.

*Western Assets Emerging Markets Income Fund XEMDX closed Mar. with NAV of $12.48 vs year-end level of $15.7 which helps explain why the discount rose. Its earnings and assets were down $3.27 and $2.99 per share respectively.

*Ascendas India Trust ACNDF is up 1.5% and yields 7.7% after it raised to funds in Singapore to acquire a private developer, Arshiya Northern. It is now S$3.05/sh.