China Closes Record 670 Banks as Oil and AI Fears Deepen

China has shut down a record 670 banks, about a quarter of its banking system, as Beijing accelerates consolidation of smaller lenders to strengthen its financial system. The move comes amid concerns over an economic slowdown in the country.

In oil, Saudi Aramco chief executive Amin Nasser warned on Monday that global oil stockpiles could take two years to rebuild as the Iran-U.S. war drags on.

China's Bank Consolidation

Beijing's decision to close 670 banks is part of an effort to create fewer, larger and better-capitalized institutions, according to Fitch Ratings analysis. Fitch said small and rural commercial banks 'remain the weakest part of the system' in China. It flagged their 'poor asset quality, low capitalization and governance shortcomings,' especially in less developed regions of the country.

Oil Supply and AI Warning

Oil traders are concerned about supply disruptions after Nasser said Monday that global oil stockpiles could take two years to rebuild. The squeeze on supplies could get worse as the Iran-U.S. conflict continues, Nasser cautioned.

In technology, former Google DeepMind researcher Alex Turner warned during a New York City Council meeting on Monday that 'misaligned' AI could prove more dangerous than China's aggressive development push. 'Misaligned AI is everyone's adversary, including our own, and one day may be more powerful than China,' Turner said.

Worries over AI development also continue to reshape Wall Street jobs. An analysis by enterprise hiring data firm Draup showed posts for AI-related roles at banks including JPMorgan Chase have risen 49% so far this year, compared with 2025.

Markets, Asia and Trump Ads

The Nasdaq Composite hit a fresh all-time high as investors looked past rising U.S. Treasury yields and focused on tech shares.

U.S. stock futures were little changed. S&P 500 futures rose 0.08%, Dow futures gained 57 points, or 0.1%, and Nasdaq-100 futures added 0.09%.

In Asia, markets in mainland China and South Korea were closed for holidays on Monday. Japan's Nikkei 225 was 2.4% higher on Monday, while Australia's benchmark S&P/ASX 200 ended flat.

President Donald Trump said Monday evening that he and his political action committee will pay for controversial television ads that praised him and had been funded from what reportedly is up to $20 million from the U.S. Department of Homeland Security. The ads ran in the weeks leading up to November's midterm elections, which will determine whether Trump's fellow Republicans maintain their majorities in both chambers of Congress. 'The Radical Left is upset with the fact that I am taking Ads, which I consider to be a positive promotion for our Great U.S.A., and paying for them with U.S.A. money,' Trump said in a post on Truth Social.

For Nigeria, the oil supply warning matters for crude earnings and petrol costs, while China's bank consolidation could affect trade finance and commodity demand.