Month: August 2019

Dear Friends,

Tangents: HAPPY FRIDAY!
On Aug. 16, 1977, singer Elvis Presley died at Graceland Mansion in Memphis, Tenn., at age 42.  Go to article »

In 1977 I spent the summer travelling around  Europe.  I met an English woman in the south of Italy, in Brindisi to be exact, where there is a ferry terminal.  I was alone as was she and we started chatting.  I was waiting for the ferry to go to Crete and she was heading to Ios in the Cyclades.  She met friends there every summer.  They spent the winters in North Africa and the summers on the tiny island of Ios.  After a couple of hours hanging around the ferry dock together, she persuaded me to go with her to Ios and then move on to Crete from there.  It turned out that I was having such a great time on Ios,  I never left until that day in 1977 – August 16^th.  I headed back to Paris in order to get my flight back to Montreal so I could prepare to continue my undergraduate studies at university.  As I was hustling through the Athens airport, a young woman around my age, noticed my backpack, and rushing up to me asked tearfully if I had heard the news.  Of course, in those days, there were no smart phones or i-Pads for news and in fact, Ios didn’t even have cars, just donkeys.  I didn’t see a newspaper, television or even hear a radio while I was there – a sort of blissful reprieve.  I realized that I had heard no news for a couple of weeks.  She then told me that Elvis Presley was dead.  So it is now an indelible memory for me – where I was when I first heard that  Elvis had died.  I must admit, my musical affinity at the time wasn’t to Elvis, but to the Stones, David Bowie, Led Zeppelin, Van Morrison, Steely Dan….but I instantly comprehended the profound significance of this tragedy.  He was an amazing musical iconoclast and he influenced many of the musicians I loved.

I don’t know anything about music.  In my line you don’t have to.  –Elvis Presley, 1935-1977

Weekend reading from Bloomberg:
Bugatti’s one-off La Voiture Noire debuted at the Pebble Beach Concours D’Elegance. It’s already been sold , for $18.68 million.
Robert Ballard, discoverer of the Titanic, is exploring a startling clue that may help him find Amelia Earhart’s plane .  
PHOTOS OF THE DAY

Firework explode in front of the full moon during celebrations marking the feast of the Assumption of Our Lady in Mosta, Malta
CREDIT: REUTERS/DARRIN ZAMMIT LUPI

Icebergs are photographed from the window of an airplane carrying NASA Scientist as they fly on a mission to track melting ice in eastern Greenland. Greenland has been melting faster in the last decade and this summer, it has seen two of the biggest melts on record since 2012
CREDIT: AP PHOTO/MSTYLAV CHERNOV

People gather during the Marian procession the shrine of Our Lady of Lourdes during the annual Catholic pilgrimage of Lourdes
CREDIT: PASCAL PAVANI/AFP
Market Closes for August 16th, 2019

Market Index	Close	Change
Dow Jones	25886.01	+306.62 +1.20%
S&P 500	2888.68	+41.08 +1.44%
NASDAQ	7895.992	+129.375 +1.67%
TSX	16149.79	+137.26
		+0.86%

International Markets

Market Index	Close	Change
NIKKEI	20418.81	+13.16
		+0.06%
HANG SENG	25734.22	+238.76
		+0.94%
SENSEX	37350.33	+38.80
		+0.10%
FTSE 100*	7117.15	+50.14
		+0.71%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.160		1.094
CND. 30 Year Bond		1.377		1.299
U.S.    10 Year Bond		1.5538		1.5269
U.S. 30 Year Bond		2.0348		1.9729

Currencies

BOC Close	Today	Previous
Canadian $	0.75362	0.75098
US $	1.32693	1.33160
Euro Rate 1 Euro=		Inverse
Canadian $	1.47185	0.67942
US $	1.10921	0.90154

Commodities

Gold	Close	Previous
London Gold Fix	1515.65	1513.25
Oil
WTI Crude Future	54.87	54.47

Market Commentary:
For the first time, the owner of the New York Stock Exchange will allow investors to buy derivatives that pay out in Bitcoin.
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks recovered some losses after a two-day slump, following U.S. stocks higher as investors got a break from a tumultuous week of concerns regarding trade.
The S&P/TSX Composite Index rose 0.9% Friday. Pot shares led most of Canada higher, with only materials stocks lagging. TheScore Inc. jumped 10.2% after getting the green light to launch a mobile application for sports betting in New Jersey.
And, looking ahead, the Royal Bank of Canada is set to report earnings Wednesday morning. Despite pressure on rates, the bank is expected to post 3Q earnings gains above its targeted 7%, according to Bloomberg Intelligence.
In other moves:
Stocks
* Horizons Marijuana Life Sciences ETF (HMMJ CN) gained 1.4% after plunging 7.3% Thursday
* Crescent Point Energy Corp. gained 7%
* Interfor Corp. rose 6.6%
* Enerplus Corp. advanced 5.2%
* Semafo Inc. fell 6.2%
* Osisko Mining Inc. dropped 3.9%
Ratings
* BB CN: Blackberry Rated New Neutral at Macquarie; PT $8
* BBD/B CN: Bombardier Downgraded to Neutral at Goldman; PT C$2
* BYD-U CN: Boyd Group Upgraded to Buy at Desjardins; PT C$195
* CG CN: Centerra Gold Upgraded to Outperform at Credit Suisse; PT C$14
* EXE CN: Extendicare Upgraded to Outperform at CIBC; PT C$9.50
* HR-U CN: H&R REIT Downgraded to Hold at Desjardins; PT C$24
* JE CN: Just Energy Group Downgraded to Underperform at CIBC; PT C$2
* LGO CN: Largo Resources Rated New Outperform at RBC; PT C$3.50
* WEED CN: Canopy Growth Cut to Market Perform at Cormark Securities
Commodities
* Western Canada Select crude oil traded at a $12 discount to WTI
* Gold spot price fell 0.5% to $1,523.60 an ounce
FX/Bonds
* The Canadian dollar gained 0.3% to C$1.3272 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.15%
US
By Jeremy Herron and Sarah Ponczek
(Bloomberg) — U.S. stocks rose for a second day as investors got a reprieve from trade posturing and speculation mounted that European officials will bolster stimulus if growth in the region continues to sputter. Treasuries nudged lower, lifting yields from multiyear lows.
The S&P 500 jumped more than 1%, notching its 13th straight session with an intraday move of that magnitude as August volatility persisted. The index lost 1% in the five days for a third straight drop. Bulls got ammunition when on a report Germany would engage in deficit spending in the event of a recession. A day earlier, a European Central Bank official said monetary stimulus would be greater than investors anticipated. Germany’s Dax surged and the region’s bonds retreated.
In the U.S., chipmakers paced Friday’s advance after Nvidia Corp.’s after quarterly sales and profit beat estimates. Banks also rose as the yield curve steepened, with two-year rates slipping and 10-years turning higher. Deere & Co. rebounded even after cutting guidance, blaming in part the trade war for undermining sales. In Asia, shares in Hong Kong rallied, Chinese stocks edged higher and Korean equities fell.
The prospect for strong European stimulus bolstered confidence that the U.S. economy would be spared some of the ill-effects of the slowdown in that region. Investors remained on edge over trade after a week of back-and-forth headlines delivered wild swings in the equity and bond markets. With traders gunning for more rate cuts from the Federal Reserve, chair Jerome Powell may give a hint of his thinking when he speaks Aug. 23 at the annual central bankers retreat in Jackson Hole, Wyoming.
“The Fed, in order to keep this expansion going, needs to provide additional accommodation,” Tiffany Wilding, U.S. economist at Pacific Investment Management Co., told Bloomberg TV. “Whether they are able to arrest the downturn — there is some question around that. Ultimately we think that they will be able to.”
Here are the main moves in markets:
Stocks
* The S&P 500 Index gained 1.45% as of 4 p.m. New York time.
* The Dow Jones Industrial Average rose 1.2%.
* The Stoxx Europe 600 Index rose 1.2%.
* The Shanghai Composite Index climbed 0.3%.
* The MSCI Emerging Market Index increased 0.7%, trimming the week’s loss to 1.1%.
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%, pushing its weekly advance to 0.5%.
* The euro fell 0.1% to $1.1092.
* The British pound jumped 0.5% to $1.2146.
* The onshore yuan dipped 0.1% to 7.04 per dollar.
* The Japanese yen declined 0.2% to 106.34 per dollar.
Bonds
* The yield on 10-year Treasuries rose two basis points to 1.5454%.
* The yield on two-year Treasuries fell one basis point to 1.48%.
* Germany’s 10-year yield rose three one basis points to -0.685%.
* Britain’s 10-year yield climbed six basis points to 0.466%.
Commodities
* West Texas Intermediate crude rose 0.6% to $54.76 a barrel.
* Iron ore climbed 0.3% to $86.75 per metric ton.
* Gold futures decreased 0.6% to $1,522.60 an ounce.
–With assistance from Nancy Moran, Adam Haigh and Yakob Peterseil.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Success is not final, failure is not fatal: it is the courage to continue that counts.
                                                               -Sir Winston Churchill, 1874-1965

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Full Moon Tonight!
2001 Astronomers announced the discovery of the first solar system outside our own – two planets orbiting a star in the Big Dipper.  Go to article »

Napoleon Bonaparte, born 1769.
Sir Walter Scott, born 1771.
T.E. Lawrence,  born 1888.
Julia Child, born 1912.

Portland, Maine: An Incomparable Insider’s Guide:  James Beard award-winning restaurants line cobblestone streets, breweries turn out serious suds and the lobster roll is in a constant state of upscale reinvention. Portland, Maine, is a food-lover’s fantasyland, but the culture goes well beyond the plate.– from The Wall Street Journal.

Your next San Francisco salad may have been raised entirely by robots. (h/t James Greiff) –Bloomberg.
PHOTOS OF THE DAY
Artist of the Tbilisi Opera And Ballet theater perform during dress rehearsal of the spectacle ‘Un Ballo Maschera’ in Tbilisi, Georgia
CREDIT: ZURAB KURTSIKIDZE/EPA -EFE/REX

Flames rise from a forest fire near the village of Makrimalli on the island of Evia, northeast of Athens
CREDIT: ANGELLOS TZORTZINIS / AFP

Swedish activist Greta waves to well-wishers while leaving Plymouth, Britain, 14 August 2019. GretaThunberg is making her way from Plymouth to New York aboard the Malizia II to attend the climate change conference in September. Swedish activist Greta Thunberg press conference in Plymouth ahead of trip to New York aboard the Malizia II, United Kingdom
CREDIT: ANDY RAIN/EPA -EFE/REX
The moon appears to be hanging from a crane as it rises up last night. Tom Duffin photographed the moment close to Waverly Station, Edinburgh, Scotland. Mr Duffin photographed the moon, ‘hanging’ from the crane, which will be at it’s full tonight.
CREDIT: TOM DUFFIN/SOLENT NEWS
Market Closes for August 15th, 2019

Market Index	Close	Change
Dow Jones	25579.39	+99.97 +0.39%
S&P 500	2847.60	+7.00 +0.25%
NASDAQ	7766.617	-7.322 -0.09%
TSX	16012.53	-33.41
		-.21%

International Markets

Market Index	Close	Change
NIKKEI	20405.65	-249.48
		-1.21%
HANG SENG	25495.46	+193.18
		+0.76%
SENSEX	37311.53	+353.37
		+0.96%
FTSE 100*	7067.01	-80.87
		-1.13%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.094		1.149
CND. 30 Year Bond		1.299		1.355
U.S.    10 Year Bond		1.5269		1.5843
U.S. 30 Year Bond		1.9729		2.0220

Currencies

BOC Close	Today	Previous
Canadian $	0.75098	0.75087
US $	1.33160	1.33179
Euro Rate 1 Euro=		Inverse
Canadian $	1.47956	0.67588
US $	1.11112	0.90000

Commodities

Gold	Close	Previous
London Gold Fix	1513.25	1498.40
Oil
WTI Crude Future	54.47	55.23

Market Commentary:
The yield on the 30-year U.S. Treasury note—the longest type of U.S. government debt and one of the most sensitive to changes in expectations for long-term growth and inflation—fell to a record low of 2.038% Wednesday. Yields fall as prices rise and have slid on fears about slowing growth recently. 
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks fell after a brief intraday recovery as volatile trading whipsawed financial markets. The biggest loser was the health-care sector, which was mainly hurt by Canopy Growth’s surprise revenue decline.
The S&P/TSX tried to make a comeback after Wednesday’s massive sell-off that saw Canadian stocks tumble the most in nearly a year amid mounting signs of a global economic slowdown. That rout wiped off almost C$47 billion from the S&P/TSX in just one trading session, according to data compiled by Bloomberg.
However, the index fell 0.2% on Thursday in Toronto to 16,012.53, as health-care stocks sank 6.3%. Consumer staples and materials were the best-performing sectors. The turbulence in markets globally has had equity traders sitting on the edge of their seats all summer long. In Canada, volatility has risen to its highest in seven months amid a fraught geopolitical backdrop, escalating U.S.-China trade tensions and global recession concerns.
In other moves:
Stocks
* Just Energy tumbled 40% after cutting its year Ebitda guidance. Canaccord said the company’s “house cleaning” signals intent to sell
* Canopy Growth fell 15% on a surprise revenue decline. Other pot stocks such as Cronos, Aphria and Hexo also tumbled
* Birchcliff Energy fell 9.1% despite having boosted its net average production forecast for the full year
* Boardwalk REIT was among the best performing stocks, up 4.4%, after it raised its annual FFO per share guidance
* Hudbay Minerals rose 3.8% after falling 8.2% yesterday
* Stars Group rose 1.7% after news activist ValueAct built a new stake in the company during the second quarter
Ratings
* BHC CN: Bausch Health Upgraded to Buy at TD
* CAR-U CN: Canadian Apartment Raised to Outperform at National Bank
* FTT CN: Finning International Rated New Equal-weight at Stephens
* GFI SJ: Asanko Gold Targets 8-10 Years of Remaining Life in Asanko Mine
* MTL CN: Mullen Group Cut to Sector Perform at National Bank; PT C$11
* PL CN: Pinnacle Renewable Energy Resumed at GMP With Buy; PT C$14
* SPB CN: Superior Plus Raised to Strong Buy at Industrial Alliance
* TD CN: TD Bank Downgraded to Neutral at BofAML; PT C$77
* TVE CN: Tamarack Valley Energy Rated New Sector Perform at RBC
Commodities
* Western Canada Select crude oil traded at a $11 discount to WTI
* Gold spot price rose 0.4% to $15,22.29 an ounce
FX/Bonds
* The Canadian dollar was little changed at C$1.3316 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.081%
US
By Sarah Ponczek
(Bloomberg) — U.S. stocks finished the day higher after getting whipsawed throughout the session as Treasury yields plummeted to levels unseen in years amid concerns about the prospect of a global recession.
The S&P 500 swung more than 1% from its high to low for a 12th straight day in volume more than a third above its 30-day average before finally ending the day up. Treasuries also
suffered whiplash. The 10-year Treasury yield slid below 1.5% for the first time in three years, while the 30-year dropped under 2% for the first time. Trade headlines set investors on
edge, though volatility has gripped markets for most of August since Donald Trump escalated his spat with China. Walmart’s strong results and retail sales that topped estimates did give bulls ammunition. But big declines weighed on indexes as Tapestry Inc. tumbled more than 20% on poor sales and General Electric sank more than 10% on accusations of financial fraud. Cisco Systems fell the most in two years after blaming a slowing global economy for a weak outlook.
The trade war still hung over markets, with discordant headlines sending risk assets on a wild ride throughout the day. Stocks sold off after China said it would retaliate against
fresh tariffs before bouncing back after official comments struck a more conciliatory tone. President Donald Trump added to concern by saying any deal with China must be “on our terms.”
“We’re getting a lot of mixed signals on the trade war. There are messages from both the U.S. and China, sometimes they’re tougher messages and sometimes they’re less tough
messages. It’s hard to sort out,” said Janet Johnston, portfolio manager at TrimTabs Asset Management. European assets took a jolt when a top official at the European Central Bank said stimulus measures would exceed investor expectations next month, according to a Dow Jones report. The common currency turned lower against the dollar and stocks erased losses before finishing lower.
The morning volatility continued a bout of turmoil sparked two weeks ago when Trump escalated his trade war with China. The uncertainty the rising tensions caused and growing signs of a slowing global economy inverted a key version of the U.S. Treasury yield curve for the first time in 12 years, exacerbating the flight from risk assets. “It’s a tough week with markets as volatile as they are,” said John Roe, the head of multi-asset funds at Legal & General. “Fundamentals are playing a central role but it’s not helped by trade war politics. Markets seemed calmer today after Trump’s more positive tone yesterday, but now China’s upping the rhetoric and it’s becoming a case of he said-Xi said.”
Here are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.3% at 4 p.m. New York time.
* The Dow Jones Industrial Average rose 0.5%.
* The Nasdaq 100 was little changed.
* The Stoxx Europe 600 Index dropped 0.3%.
* The MSCI Asia Pacific Index declined 0.7%.
Currencies
* The Bloomberg Dollar Spot Index was steady.
* The euro fell 0.2% to $1.1112.
* The British pound gained 0.4% to $1.2110.
* The Japanese yen fell 0.1% to 106.00 per dollar.
Bonds
* The yield on 10-year Treasuries decreased seven basis points to 1.51%.
* The two-year yield fell 10 basis points to 1.48%.
* Germany’s 10-year yield dipped six basis points to -0.713%.
Commodities
* Gold futures rose 0.4% at $1,533.20 an ounce.
* West Texas Intermediate crude declined 1.1% to $54.64 a barrel.
–With assistance from Adam Haigh, Joanna Ossinger, Ksenia
Galouchko, Laura Curtis and Jeremy Herron.

Have a great night.

Be magnificent!
As ever,

Carolann

You grow up the day you have your first real laugh  –  at yourself.
                                                -Ethel Barrymore, 1879-1959

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
On Aug. 14, 1945, President Truman announced that Japan had surrendered unconditionally, ending World War II.  Go to article »
 

Skip and Ping moved to the Berlin zoo in April, where zookeepers observed the king penguins trying to nurture a rock and a fish. So when their zoomate Orange ignored the egg she laid, the zoo gave it to the fellas. “We are sure they would be good parents because they were so nice to their stone,” said a spokesman. If the egg hatches, it would be the first penguin chick at the zoo since 2002. The whole thing has delighted Germany.  -New York Times

PHOTOS OF THE DAY

Light installation the Sziget (Island) Festival on Shipyard Island, Northern Budapest, Hungary
CREDIT: TAMAS SOKI/EPA-EFE/REX

A green light trail created by long exposures in the form of bug. The creative photographer creates some amazing long exposures as he is capturing the view while rock climbing.
CREDIT: LUKE RASMUSSEN/ CATERS NEWS

A long exposure shows stars behind a tree during the annual Perseid meteor shower near the town of Mitzpe Ramon, southern Israel
CREDIT: REURERS/AMIR COHEN
Market Closes for August 14th, 2019

Market Index	Close	Change
Dow Jones	25479.42	-800.49 -3.05%
S&P 500	2840.59	-85.73 -2.93%
NASDAQ	7773.938	-242.421 -3.02%
TSX	16044.48	-306.36
		-1.87%

International Markets

Market Index	Close	Change
NIKKEI	20655.13	+199.69
		+0.98%
HANG SENG	25302.28	+20.98
		+0.08%
SENSEX	37311.53	+353.37
		+0.96%
FTSE 100*	7147.88	-103.02
		-1.42%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.149		1.241
CND. 30 Year Bond		1.355		1.465
U.S.    10 Year Bond		1.5843		1.7035
U.S. 30 Year Bond		2.0220		2.1633

Currencies

BOC Close	Today	Previous
Canadian $	0.75087	0.75622
US $	1.33179	1.32237
Euro Rate 1 Euro=		Inverse
Canadian $	1.48358	0.67405
US $	1.11397	0.89769

Commodities

Gold	Close	Previous
London Gold Fix	1498.40	1504.70
Oil
WTI Crude Future	55.23	57.10

Market Commentary:
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks tumbled most in almost a year alongside U.S. stocks as mounting signs of a globaleconomic slowdown stoked fears of an economic recession. The
sell-off saw almost C$47 billion wiped-off the S&P/TSX in just one trading session, according to Bloomberg data
The S&P/TSX Composite Index fell about 1.9%, the most since Oct. 24, 2018 on Wednesday to 16,045.94. The index seems to have found some support around 16,000, a level previously seen in around June this year, from which the index rebounded to record levels.
All 11 sectors within the index fell, with health care the worst performer and utilities posting the smallest decline. The few stocks that were positive today were mostly found among gold and silver miners, with some outliers such as Chemtrade Logistics Income Fund.
In other moves:
Stocks
* Gold stocks such as Eldorado, Novagold, Detour Gold were among the best performers as prices climbed
* Chemtrade Logistics rose after 2Q adjusted Ebitda beat estimates and said it’s set plans to sell two specialty chemical businesses
* CAE slumped 4.6% after reporting a first quarter adjusted EPS that missed the lowest estimate
* Pot companies fell alongside Tilray after its earnings loss; CannTrust Holdings declined 4.4% and Canopy Growth retreated 5.8%
* Canada Goose fell 6.7% after guidance was unchanged amid a revenue surge for the firm
Ratings
* ABT CN: Absolute Software Upgraded to Buy at Canaccord; PT C$9.25
* BABA: Canada Goose Keeps View; RealReal Tops: N.A. Consumer Pre-Market
* CG CN: Centerra Gold Raised to Outperform at National Bank; PT C$13.50
* LTG LN: Learning Tech Rated New Outperform at Macquarie; PT 1.55 Pounds
* NUAG CN: New Pacific Holdings Rated New Speculative Outperform at BMO
* SYZ CN: Sylogist Downgraded to Buy at Cormark Securities; PT C$15
* TOT CN: Total Energy Services Cut to Sector Perform at Alta Corp
Commodities
* Western Canada Select crude oil traded at a $11.15 discount to WTI
* Gold spot price rose 0.8% to $1,513.78 an ounce
FX/Bonds
* The Canadian dollar retreated 0.7% to C$1.3315 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.
US
By Jeremy Herron and Sarah Ponczek
(Bloomberg) — U.S. stocks suffered one of the deepest sell-offs of the year and Treasuries surged as mounting signs of a global economic slowdown stoked fears of an economic
recession.
The S&P 500 sank almost 3% and the Dow Jones Industrial Average plunged 800 points in its worst rout of the year, sparked when the 10-year Treasury rate slid below the two-year for the first time since 2007. The 30-year yield fell to the lowest on record. Financial shares plunged 3.5% led by a 4.2% rout in Goldman Sachs Group Inc. All of the 30 Dow components retreated.
Volatility has gripped the S&P 500 since President Donald Trump rekindled the trade war at the start of August. The index has swung at least 1% intraday for 11 straight sessions and is
now down 6.1% from its July record. Oil sank 3.5%, gold rallied and the dollar rose.
“With U.S.-China trade uncertainty lingering, investors are increasingly selling first and asking questions later,” Said Alec Young, managing director for global markets research at FTSE Russell. “The only thing seemingly capable of reversing the volatility is credible evidence global growth is bottoming out. That seems too much to hope for right now.”
European shares lost more than 1.5% after Germany’s economy contracted in the second quarter, adding to angst fueled by weak Chinese retail and industrial numbers. The British yield curve also inverted for the first time since the financial crisis and the pound edged higher after inflation unexpectedly rose. Government bonds rallied across Europe, with the yield on benchmark bunds sliding to another record.
The warning emanating from bond markets spooked investors already seeking shelter from the fraught geopolitical climate and the impact of the global trade war just a day after equities rallied on a tariff reprieve from President Donald Trump. While curve inversions normally precede economic downturns, they do not necessarily signal imminent doom. “This is not a positive sign for the market,” Jonathan Golub, chief U.S. equity strategist at Credit Suisse, said on Bloomberg TV. “The Fed is totally empowered to change this dynamic and the market is saying they have to.”
Meanwhile, Hong Kong’s airport resumed normal operations after a chaotic night of protest in which demonstrators beat and detained two suspected infiltrators and Trump warned of Chinese troops massing on the border.
Here are the main moves in markets:
Stocks
* The S&P 500 Index fell 2.9% as of 4 p.m. New York time.
* The Dow Jones Industrial Average lost 3.1% and the Nasdaq 100 fell 3.1%.
* The Stoxx Europe 600 Index fell 1.7%.
* Germany’s DAX Index sank 2%.
* The MSCI Emerging Market Index rose 0.2%.
* The MSCI Asia Pacific Index jumped 0.9%.
Currencies
* The Bloomberg Dollar Spot Index rose 0.3%.
* The euro increased 0.3% to $1.1143.
* The British pound climbed 0.1% to $1.2073.
* The Japanese yen jumped 0.7% to 106.01 per dollar.
Bonds
* The yield on 10-year Treasuries sank 12 basis points to 1.59%.
* The yield on two-year Treasuries declined nine basis points to 1.58%.
* The 30-year rate fell to 2.034%.
* Germany’s 10-year yield declined four basis points to -0.65%.
Commodities
* Gold futures rose 0.8% to $1,526.60 an ounce.
* West Texas Intermediate crude decreased 3.5% to $55.11 a barrel.
–With assistance from Adam Haigh, John Ainger and Laura Curtis.

Have a great night.

Be magnificent!
As ever,

Carolann

We are all in the gutter, but some of us are looking at the stars.
                                                      -Oscar Wilde, 1854-1900

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
On Aug. 13, 1961, Berlin was divided as East Germany sealed off the border between the city’s eastern and western sectors in order to halt the flight of refugees.  Go to article »
PHOTOS OF THE DAY
A view of the Manneken Pis sculpture dresses with a floral creation by Belgian artist Geoffroy Mottart, on the occasion of the ‘Flower Time” event in Brussels, Belgium. Every other summer, in alternation with the Flower Carpet, the City Hall of Brussels and the Grand-Place run the Flower Time international plant and flower arrangement event. The entry hall, the corridors, the offices, meeting and reception rooms of the buildings are adorned with dozens of floral arrangements. The floral creations are created by internationally renowned landscape architects and artists. This year’s event runs from 14 until 18 August.
CREDIT: STEPHANIE LECOCQ/EPA-EFE/REX

 World-famous trials rider Danny MacAskill performing some stunts from his Fringe Debut show in Edinburgh. The Edinburgh Festival Fringe has come top a list of 500 must-do experiences in the UK complied by travel guide Lonely Planet. The festival was voted into first place by seasoned travellers asked to rank their most memorable experiences, beating the British Museum and Giant’s Causeway.
CREDIT: THE TELEGRAPH, AUGUST 13, 2019

Argentina’s Jose Torres competes to win the silver medal in the Cycling BMX Men’s Freestyle Final during the Lima 2019 Pan-American Games in Lima.
CREDIT: THE TELEGRAPH, August 13, 2019
Market Commentary:
On this day in 1979, BusinessWeek’s cover famously proclaimed “The Death of Equities,” citing a Labor Department ruling that allowed pension funds to diversify into other asset classes beyond stocks and bonds, high inflation and the reduction by seven million in the number of shareholders from 1970. 
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks alongside U.S. equities got a big boost Tuesday, erasing yesterday’s losses, after the Trump administration said it will delay tariffs on some Chinese goods until December.
The S&P/TSX Composite Index rose 0.7% to 16,350.84 at the close in Toronto, with ten of the 11 sectors rising. Health care sector was the best performers, led by pot stocks, while materials were the worst, weighed down by precious metal miners.
Meanwhile, the sharp moves by several pot stocks in the final minutes of trading last week may be the result of trades
by the largest cannabis exchange-traded fund. The $1 billion ETFMG Alternative Harvest ETF recently added about 5.5 million shares of CannTrust Holdings Inc., according to holdings data compiled by Bloomberg. The medical cannabis producer jumped about 40% in the last hour of trading on Friday after spending most of the day in the red. Conversely, the fund, known as MJ, has significantly reduced its positions in Auxly Cannabis Group Inc., Vivo Cannabis Inc., Supreme Cannabis Co. and Canopy Rivers Inc., which all fell by at least 13%.
In other moves:
Stocks
* Pot stocks such as Aphria, Cronos, Hexo were among the top performers within the marijuana sector. Cronos was earlier initiating with an overweight rating at Piper on U.S. CBD growth otential
* Diversified miners such as Lundin Mining, NexGen, Teck Resources were among the outperformer as metal prices rose on trade optimism, while gold miners such as Centerra, Detour Gold, Yamana fell with the prices
* Stars Group rose 3.2% after Eight Capital said the sell-off in shares was overdone
Ratings
* ABX CN: Barrick Gold Upgraded to Buy at Argus; PT Set to $22
* CFP CN: Canfor Downgraded to Hold at TD; PT C$16
* CFX CN: Canfor Pulp Products Upgraded to Buy at TD; PT C$13
* CHH CN: Centric Health Downgraded to Hold at Echelon Wealth; PT 20 Cents
* CL CN: Cresco Labs Inc Rated New Overweight at Piper Jaffray
* CL CN: Cresco Labs Inc Rated New Speculative Buy at Echelon Wealth
* EMA CN: Emera Cut on Valuation at BMO Despite Improved EPS Visibility
* GTII CN: Green Thumb Rated New Overweight at Piper Jaffray; PT $13
* GTII CN: Green Thumb Rated New Buy at Echelon Wealth; PT C$24
* LB CN: Laurentian Bank of Canada Upgraded to Neutral at CIBC; PT C$49
* RUF/U CN: Pure Multi-Family REIT Cut to Sector Perform at RBC; PT $7.61
* SCL CN: ShawCor Downgraded to Sector Underperform at Scotiabank; PT C$20
* USA CN: Americas Silver Cut to Hold at Laurentian Bank Securities
Commodities
* Western Canada Select crude oil traded at a $11.00 discount to WTI
* Gold spot price fell 0.5% to $1,503.24 an ounce
FX/Bonds
* The Canadian dollar rose 0.1% to C$1.3225 per U.S. dollar
* The Canada 10-year government bond yield climbed to 1.232%
US
By Jeremy Herron
(Bloomberg) — U.S. stocks halted a two-day slide and Treasuries tumbled after the Trump administration de-escalated
its trade war with China. Oil surged and gold fell.
The S&P 500 Index jumped as much as 2% after trade officials granted a grace period before tariffs take effect on a
broad swath of consumer goods Americans shoppers covet at the holidays. Makers and sellers of consumer electronics, toys and apparel led the advance.
* Apple surged more than 4% to pace gains among hardware makers
* Best Buy rose the most in the S&P 500, while Target added 3%
* Gap and L Brands jumped more than 3%; Hasbro surged
* Soybeans rose 1.5%, oil added 3.8%
* Gold lost more than $50 an ounce from its high

     The trade headlines sparked demand for risk assets that had been under pressure for more than a week as investors grew increasingly concerned the spat with China would slam global growth. President Donald Trump said he delayed the tariffs to spare the Christmas shopping season after his representatives had a “productive” call with China.
“This news creates a lot of this upside volatility,” said Bruce Bittles, chief investment strategist at Robert W. Baird.
“If the news is sustainable and indeed they are moving to a trade agreement, this is a very important development and we can go to new highs.”
Before the trade headlines landed, fresh inflation data showed an unexpectedly hot reading, denting arguments for cutting interest rates and flattening the Treasury yield toward inversion. The spread between two- and 10-year yields hit the narrowest since 2007. The tariff detente did halt the bond rally, pushing the 10-year rate toward 1.7%. Some investors also remained cautious about the prospects for a trade truce as signs of the war’s impact grow. Singapore’s
government cut its forecast for economic growth this year to almost zero. In Europe, Henkel was among the worst-performing stocks after missing quarterly profit estimates, which the detergents maker blamed on the trade conflict and a competitive retail environment.
“It’s an encouraging first steps but it’s difficult to speculate how far it will go,” Peter Jankovskis, co-chief investment officer at Oakbrook Investments. “We’ve certainly gotten into these situations before where the market believed we
were headed toward a deal and then it was derailed by comments from various officials.”
Meanwhile, the situations in Hong Kong and Argentina remained unstable. The South American nation’s peso tumbled anew amid rising concern the nation will default on its debt, while Hong Kong equities slumped after its airport canceled flights for a second day as protesters clashed with police.
Here are some key events coming up:
* Companies releasing results include China’s JD.com, Tencent and Alibaba; Cisco, Walmart and Nvidia of the U.S.; the U.K.’s Prudential; Australia’s Telstra; Europe’s Swisscom and brewer arlsberg.
* Wednesday brings data on China retail sales, industrial production and the jobless rate.
* Thursday sees the release of U.S. jobless claims, industrial production and retail sales data.

These are the main moves in markets:
Stocks
* The S&P 500 Index rose 1.4% as of 4 p.m. New York time.
* The Dow Jones Industrial Average rose 1.2%.
* Nasdaq Composite Index gained 2%, while the Nasdaq 100 Index rose 2.2%.
* The Stoxx Europe 600 Index rose 0.5%.
* The MSCI Asia Pacific Index decreased 1.4%.
* The MSCI Emerging Market Index decreased 0.3%.
Currencies
* The Bloomberg Dollar Spot Index advanced 0.2%.
* The euro fell 0.4% at $1.1174.
* The British pound slipped 0.2% at $1.2057.
* The Japanese yen fell 1.3% to 106.678.
* The Argentine peso slumped 4.8% to 55.55 per dollar.
Bonds
* The yield on 10-year Treasuries rose four basis points to 1.68%.
* The two-year rate rose eight basis points to 1.66%.
* Germany’s 10-year yield fell two basis points to -0.609%.
Commodities
* Gold futures fell 0.1% to $1,515 an ounce.
* West Texas Intermediate crude rose 3.8% to $57.04 a barrel.
–With assistance from Katherine Greifeld, Andreea Papuc, Todd
White and Olivia Rinaldi.
Have a great night.

Be magnificent!
As ever,
Carolann

A wise man will make more opportunities than he finds.
                                -Sir Francis Bacon, 1561-1626

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
1851 – sewing machine invented.
On Aug. 12, 1981, IBM introduced its first personal computer, the model 5150.  Go to article »

Night of the Shooting Stars: 
Tonight is the peak of the Perseid Meteor shower – don’t forget to gaze at the night sky.
Peak: Aug 12–13 in Victoria
            Up to 150 meteors per hour
Made of tiny space debris from the comet Swift-Tuttle, the Perseids are named after the constellation Perseus. This is because the direction, or radiant, from which the shower seems to come in the sky lies in the same direction as Perseus. The Perseids are widely sought after by astronomers and stargazers because most years at its peak, one can see 60 to 100 meteors in an hour from a dark place.
How to See the Perseids
You don’t need any special equipment or a lot of skills to view a meteor shower. Even though all you really need is a clear sky, lots of patience, and our handy Interactive Meteor Shower Sky Map with a visibility conditions meter to see a meteor shower, the following tips can help maximize your shooting star viewing experience.

• Find a secluded viewing spot, away from the city lights. Once at the venue, your eyes may take 15 to 20 minutes to get used to the dark.
• Dress for the weather, and make sure you are comfortable, especially if you plan to stay out long. Bring a blanket or a comfortable chair with you—meteor watching can be a waiting game.
• Once you have found your viewing spot, lie down on the ground and look up in the direction of the radiant. Use our Interactive Meteor Shower Sky Map or the table above to find the current direction of the radiant in the sky. –from TimeandDate.com

PHOTOS OF THE DAY

The shoreline of Penmon on the island of Anglesey is lit up by glowing neon blue plankton.
CREDIT: ROB AMSBURY/SOLENT NEWS

Staff a wildlife park have expressed their delight after hatching a pair of snowy owl chicks. One of the chicks is being nursed by zookeepers at Beale Wildlife Park and Gardens, who removed it from its parents, to ease the burden of raising a hungry, demanding twosome.
CREDIT: BEALE WILDLIFE PARK/ SWNS
 

This Saturday, Aug 10, 2019, photo provided by the North Korean government, shows what it says the launch of a short -range ballistic missile from the east coast of North Korea. North Korea on Saturday extended a recent streak of weapons displays by firing what appeared to be two short- range ballistic missiles into the sea, according to South Korea’s military.
CREDIT:KOREAN CENTRAL NEWS AGENCY /KOREA NEWS SERVICE VIA AP
Market Closes for August 12th, 2019

Market Index	Close	Change
Dow Jones	25896.44	-391.00 -1.49%
S&P 500	2882.70	-35.95 -1.23%
NASDAQ	7863.410	-95.730 -1.20%
TSX	16237.77	-103.57
		-0.63%

International Markets

Market Index	Close	Change
NIKKEI	20684.82	+91.47
		+0.44%
HANG SENG	25824.72	-114.58
		-0.44%
SENSEX	37581.91	+254.55
		+0.68%
FTSE 100*	7226.72	-27.13
		-0.44%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.198		1.273
CND. 30 Year Bond		1.448		1.521
U.S.    10 Year Bond		1.6454		1.7429
U.S. 30 Year Bond		2.1325		2.2594

Currencies

BOC Close	Today	Previous
Canadian $	0.75523	0.75669
US $	1.32410	1.32155
Euro Rate 1 Euro=		Inverse
Canadian $	1.48492	0.67344
US $	1.12146	0.89169

Commodities

Gold	Close	Previous
London Gold Fix	1497.70	1495.75
Oil
WTI Crude Future	54.93	54.50

Market Commentary:
The market value of negative-yielding debt in the world recently rose to $15.6 trillion, or about 28% of the global total, per BAML. 

On this day in 1920, Charles Ponzi was arrested for financial fraud in Boston after taking in more than $6 million from thousands of investors. He repaid each $1,000 invested with $1,500 just 90 days later—but only by taking more money from newcomers or, as a judge later put it, “robbing Peter to pay Paul.” Such pyramid arrangements were forever afterwards known as “Ponzi schemes.”
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks fell with U.S. equities as political unrest in Hong Kong and Argentina fueled a rally in global bonds, continuing to raise the specter of a looming recession.
The S&P/TSX Composite Index fell 0.6% to 16,237.77 on Monday, with all 11 sectors declining, led by consumer discretionary and financial stocks.
Meanwhile, Monday saw two high profile deals. Canadian billionaire Jim Pattison, offered to take lumber producer Canfor Corp. private for about C$982 million ($742 million). And Air Canada boosted its takeover offer for Transat A.T. by 38%, or C$200 million ($151 million), securing support from the tour operator’s largest shareholder in the process.
In other moves:
Stocks
* Canfor rallied +73% on Pattison’s offer. Other lumber stocks also gained.
* MAG Silver rose 3.7% after reporting second quarter earnings and gold/silver rallied
* Sleep Country climbed 3.3% after CIBC upgraded the stock, citing an earlier-than-expected return to same-store sales growth
* CannTrust plunged 28% as Health Canada found more breaches of pot rules
* Stars Group plunged 19% after cutting its adjusted annual EPS guidance to below analysts’ average estimate
Commodities
* Western Canada Select crude oil traded at a $10.75 discount to WTI
* Gold spot price rose ~1% at $1,511.72 an ounce
FX/Bonds
* The Canadian dollar fell 0.1% to C$1.3240 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.199%
US
By Sarah Ponczek and Olivia Rinaldi
(Bloomberg) — U.S. stocks fell more than 1% as political unrest in Hong Kong and Argentina fueled a rally in global bonds that continues to raise the specter of a looming recession. Gold surged.
The S&P 500 Index slumped for a second day and now sits almost 5% below its all-time high as the rally in Treasuries sparked by last week’s escalating trade tensions picked up steam. Risk assets came under pressure after authorities closed Hong Kong’s airport and a Chinese official said the city was at a “critical juncture.” Argentina’s peso and equities sank after voters turned on the president in a primary vote. Corn futures plunged the most since 2013 as more of the grain was planted than analysts had estimated.
The weakness in stocks fed demand for haven assets, pushing the 10-year Treasury yield lower by 10 basis points and boosting the yen for a fourth day. China’s central bank fixing continued to signal its determination to manage an orderly depreciation.
Italian bonds led gains in European debt after Fitch affirmed the country’s credit rating on Friday. The pound strengthened following three sessions of declines.
Monday’s sell-off in risk assets provided another reminder of the fragile mood across markets as it extended the tumultuous start to August. Gains for the safest government bonds show lingering caution by traders who’ve increased bets for central bank easing in recent weeks, as the U.S. and China escalate their trade war and a slew of global data point to slowing growth.
“It’s a day with very little news in terms of economic calendar and earnings and a week that’s going to have a lot of earnings that are very important. But it doesn’t look like there’s true sort of resiliency in the sell right now,” said JJ Kinahan, chief market strategist at TD Ameritrade. “The flight to bonds is really the more concerning element only because it flattens the yield curve.”
Here are some key events coming up:
* Companies releasing results include China’s Tencent, JD.com and Alibaba, Cisco, Brazilian utility Eletrobras, the U.K.’s Prudential, Australia’s Telstra, giant retailer Walmart, Nvidia, Swisscom and the Danish brewer Carlsberg.
* The U.S. consumer price index, out Tuesday, probably picked up to a 1.7% annual pace in July, according to economist estimates. Core prices, which exclude food and energy, are seen rising 2.1%.
* Wednesday brings data on China retail sales, industrial production and the jobless rate.
* Thursday sees the release of U.S. jobless claims, industrial production and retail sales data.
These are the main moves in markets:
Stocks
* The S&P 500 Index fell 1.2% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index dipped 0.2%.
* The MSCI Asia Pacific Index decreased less than 0.05%.
* Hong Kong’s Hang Seng Index declined 0.4%.
Currencies
* The Bloomberg Dollar Spot Index rose less than 0.1%.
* The euro climbed 0.1% to $1.1211.
* The Japanese yen strengthened 0.3% to 105.33 per dollar.
Bonds
* The yield on 10-year Treasuries fell 10 basis points to 1.65%.
* The two-year rate lost six basis points to 1.5857%.
* The spread of Italy’s 10-year bonds over Germany’s declined five basis points to 2.33 percentage points.
* Germany’s 10-year yield decreased two basis points to -0.59%.
Commodities
* Gold futures rose 1% to $1,524 an ounce.
* West Texas Intermediate crude added 0.5% to $54.75 a barrel.
* Corn futures for December delivery fell by the limit of 25 cents to $3.9275 a bushel, down 6%.
–With assistance from Luke Kawa, Adam Haigh and Samuel Potter.
Have a great night.

Be magnificent!
As ever,

Carolann

Luck is a matter of preparation meeting opportunity.
                                   -Oprah Winfrey, b. 1954

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
​​​​​​​www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Friday!

     On Aug. 9, 1945, the United States exploded a nuclear device over Nagasaki, Japan, instantly killing an estimated 39,000 people. The explosion came three days after the atomic bombing of Hiroshima. Go to article »
     Two days later, Japan surrendered.  My brother-in-law, Tsuyoshi Hasegawa,  is  Japanese and is a professor at the University of California in Santa Barbara.  He is an expert on Russo-Japanese relations and spent many years living in Russia (he is fluent in Japanese, Russian and English).  He has written many books, mostly historical in nature about Japan and about  Russia.  In one of his books, which The New York Times described as “a brilliant and definitive study of American, Soviet, and Japanese records of the last weeks of the war”, Racing the Enemy: Stalin, Truman, and the Surrender of Japan (Harvard University Press), he contends that the American A-bombs were not the primary cause of Japanese surrender.  Examining in detail the deliberations of the Japanese leadership immersed in squabbling over how to end the war with the emperor system intact, he argues that only when the Soviets, jockeying with the United States for post-war influence in Asia, declared war and invaded Japanese-held Manchuria, did the Japanese leadership capitulate in order to prevent their falling under Soviet dominance.  He asserts that the Americans misunderstood the Japanese value system.  “The American assumption was that if you dropped the bomb on Japan, Japanese leaders would immediately surrender because that’s what American leaders would do in that situation.  But not everyone has the same value system.  However sad or tragic, Japanese leaders were more concerned with maintenance of the Japanese emperor system than with the lives of ordinary citizens.”  Even though the Soviets had let the Japanese know in April 1945 of their intention to abrogate the neutrality pact when it expired one year later, they “lulled the Japanese to sleep,” as Soviet premier Josef Stalin put it, by leading the Japanese to believe that the neutrality pact was still in force.  But secretly, the Soviets were sending troops, tanks, artillery, and equipment to prepare for the war against the Japanese.  When the Japanese ambassador met with the Soviets in Moscow on August 8^th, 1945, he got some unexpected news.  The Soviets declared war on Japan and within one hour, invaded Manchuria.  Several hours later, the U.S. dropped a second atomic bomb on Nagasaki.  Again, the Japanese authorities were not swayed.  Despite the destruction visited upon a second Japanese city, it was the invasion by the Soviet Union that got Japanese attention. 
     Finally, on August 10^th, with the Soviets gobbling up Manchuria, the Japanese, extremely fearful of falling under the influence of the Communists, tendered their unconditional surrender.
     Tsuyoshi asserts that the Japanese should have exited the war by accepting the Potsdam ultimatum.  Had the Japanese government had the foresight to do so, there would have been neither the atomic bombs nor the Soviet entry into the war.  He also raises the question of the Emperor’s responsibility.  He thinks that the Emperor should have abdicated after the war.
     “After all , the war was fought in his name.  If he was crucial in Japan’s decision to end the war, he was also responsible for prolonging the war until August.”  This view has provoked debate among the Japanese many of who believe that the emperor, in his intervention in the decision to surrender, saved Japan.
PHOTOS OF THE DAY
A Chinese blacksmith throws molten metal against a cold stone wall to create sparks during a summer carnival at Beijing World Park in Beijing, China.

CREDIT: ZHAO JUN/CHINA NEWES SERVICE/VCG VIA GETTY IMAGES
Muslim pilgrims perform morning prayers at the Grand Mosque in Saudi  Arabia’s holy city of Mecca, prior to the start of the annual Hajj pilgrimage in the holy city. Muslims from across the world gather in Mecca in Saudi Arabia for the annual six-day pilgrimage, one of the five pillars of Islam, an act all Muslims must perform at least once in their lifetime if they have the means to travel to Saudi Arabi.

CREDUT: ABDEL CHANI BASHIR/AFP/GETTY IMAGES
Marking the 50^th anniversary of the iconic Beatles zebra crossing images outside Abbey Road recording studios. Look-a-like band ‘ Fab Gear’, arrive in a replica of John Lennon’s psychedelic Rolls Royce, to lead everyone across the famous crossing 50 years to the minute since the Beatles. London, UK.

CREDIT: MARTYN WHEATLEY / I-IMAGES
Market Closes for August 9th, 2019

Market Index	Close	Change
Dow Jones	26287.44	-90.75 -0.34%
S&P 500	2918.65	-19.44 -0.66%
NASDAQ	7959.141	-80.015 -1.00%
TSX	16341.34	-63.19
		-0.39%

International Markets

Market Index	Close	Change
NIKKEI	20684.82	+91.47
		+0.44%
HANG SENG	25939.30	-181.47
		-0.69%
SENSEX	37581.91	+254.55
		+0.68%
FTSE 100*	7253.85	-32.05
		-0.44%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.273		1.243
CND. 30 Year Bond		1.521		1.492
U.S.    10 Year Bond		1.7429		1.7172
U.S. 30 Year Bond		2.2594		2.2243

Currencies

BOC Close	Today	Previous
Canadian $	0.75669	0.75560
US $	1.32155	1.32345
Euro Rate 1 Euro=		Inverse
Canadian $	1.48031	0.67553
US $	1.12021	0.89269

Commodities

Gold	Close	Previous
London Gold Fix	1495.75	1506.05
Oil
WTI Crude Future	54.50	52.54

Market Commentary:
On this day in 1995, the internet stock sector was born when 16-month-old Netscape Communications issued its initial public offering on the Nasdaq at an initial price of $28 per share. Because none of the initial buyers were willing to sell, lead underwriter Morgan Stanley had to raise the opening price all the way to $71 before public trading could begin.
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks dipped after two days of gains, following U.S. equities lower as President Donald Trump fanned trade-war flames anew.
The S&P/TSX Composite Index retreated 0.4% to 16,341. Materials were the worst-performing stocks while consumer discretionary shares were also weak after Linamar’s second- quarter sales missed estimates. Pot stocks also dropped.
Meanwhile, Inter Pipeline Ltd. confirmed reports that it had received an unsolicited takeover proposal but said it is not currently in negotiations regarding a potential buyout.
In other moves:
Stocks
* CannTrust rallied 33.8%
* MediPharm Labs jumped 13.3%
* Enerplus gained 8% after raising production outlook
* Auxly Cannabis Group lost 16.5%
* Canopy Rivers fell 13.9%
* New Gold lost 10% after a bought deal
* Ivanhoe Mines slid 7%
Ratings
* Black Diamond Upgraded to Outperform at National Bank; PT C$3
* Cervus Equipment Cut to Sector Perform at National Bank
* CES Energy Downgraded to Market Perform at BMO; PT C$2
* CES Energy Upgraded to Strong Buy at Raymond James; PT C$4.50
* CES Energy Upgraded to Buy at GMP; PT C$3.25
* Crombie REIT Downgraded to Hold at Canaccord; PT C$15.75
* Medical Facilities Cut to Hold at Industrial Alliance; PT C$8.50
* Iamgold Cut to Market Perform at Cormark Securities; PT C$5.50
* Recipe Unlimited Corp Cut to Sector Perform at RBC; PT C$29
* TransAlta Renewables Downgraded to Sell at Veritas; PT C$12.50
* SmartCentres REIT Upgraded to Buy at Canaccord; PT C$36
* Stantec Downgraded to Hold at Canaccord; PT C$31
Commodities
* Western Canada Select crude oil traded at a $12.35 discount to WTI
* Gold spot price about flat at $1509.50 an ounce
FX/Bonds
* The Canadian dollar gained 0.1% to C$1.3207 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.29%
US
By Vildana Hajric
(Bloomberg) — U.S. stocks slipped after President Donald Trump fanned trade-war flames anew. Treasuries edged lower while the dollar held steady.
The S&P 500 Index sank as much as 1.3% after Trump warned that talks scheduled for next month could be canceled, but pared about half that drop after a White House aide reportedly walked back comments that suggested the U.S. wouldn’t do business with key Chinese telecommunications firm Huawei.
The 10-year Treasury yield inched up to 1.74%. Chipmakers were among the worst performers as the benchmark stock gauge halted a three-day rally and closed the week down 0.5%. It got off to a rough start Monday, when China’s currency devaluation sparked the biggest rout of the year. As the protectionist showdown between the U.S. and China drags on, investors are struggling to gauge the likely outcome and potential impact on asset prices. That’s driving up market volatility as traders try to predict the road ahead for corporate profits, interest rates and economic growth.
“The market is very sensitive of the comings and goings and narratives around trade,” said Arthur Hogan, chief market strategist at National Securities Corp. “There’s a lot of volatility, it’s scary, it’s headline-driven.”
Elsewhere, the offshore yuan weakened and the yen gained. Oil jumped and gold held near $1,500 per ounce. Italian bonds tumbled as the government coalition teetered, raising the prospect of snap elections. The Stoxx Europe 600 fell, capping a second weekly decline. The pound weakened after data showed the U.K. economy shrank for the first time in more than six years.
Asian stocks were broadly higher, though Shanghai equities finished lower for the seventh time in eight sessions and Hong Kong shares also fell.
Here are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.7% at the close of trading in New York.
* The Stoxx Europe 600 Index declined 0.8%.
* The MSCI Asia Pacific Index increased 0.2%.
* Italy’s FTSE MIB Index declined 2.5%.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The onshore yuan declined 0.2% to 7.0623 per dollar.
* The euro advanced 0.2% to $1.1203.
* The Japanese yen climbed 0.4% to 105.61 per dollar.
* Britain’s pound fell 0.9% to $1.2028.
Bonds
* The yield on 10-year Treasuries rose two basis points to 1.74%.
* Italy’s 10-year yield surged 27 basis points to 1.8%
* Germany’s 10-year yield declined two basis points to -0.58%.
Commodities
* Gold slipped 0.2% to $1,498.07 an ounce.
* West Texas crude gained 3.5% to $54.39 a barrel.
* Copper fell 0.5% to $2.594 a pound.
–With assistance from Cormac Mullen, Adam Haigh, Todd White and Luke Kawa.

Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Our scientific power has outrun our spiritual power. 
We have guided missiles and misguided men.
                    -Martin Luther King Jr., 1929-1968

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:

August 8 is Happiness Happens Day, a day to celebrate all things happy. Created by the Secret Society of Happy People in 1999 as Admit You‘re Happy Day, this unofficial holiday encourages people to be open about their happiness and to share it with others.

On Aug. 8, 1974, President Richard Nixon announced he would resign following damaging revelations in the Watergate scandal. Go to article »

Did people say that back then, too? -By Melissa Mohr
…we’ve been talking about words and phrases that are surprisingly old, and this week we have one final set of examples: computer, hipster, dude, and “No pain, no gain.” This was a bit of a trick question, because all four of these happen to be old.
     The very first computers were actually people, as you may know from the book and movie “Hidden Figures.” These tell the story of the female African American mathematicians who worked for NASA calculating, or computing, the trajectories for spaceflights in the 1960s. These women are perhaps the most famous “computers,” but the word has been used in this sense since 1613. In the mid-19th century, it began to refer to a machine that could perform simple mathematical functions, a calculator, in essence. By the 1950s, these machines were evolving into the programmable computers we know today.
     The first hipsters were musicians in Harlem in the 1920s and ’30s, who wore zoot suits (long jackets with padded shoulders and baggy trousers pegged at the ankle), played jazz, and had their own slang: jive. We know a lot about this language because Cab Calloway, the famous band leader, published the “Hepsters Dictionary” in 1938. He defined the hepster or hep cat as “a guy who knows all the answers.” In the 1920s, hepsters were hip to the jive; in the 2010s, hipsters are hep to the artisanal coffee. 
     “No pain, no gain” is not just the mantra of muscle-bound people lifting weights at the gym. It is a venerable English proverb, first found in a collection of such sayings from 1577: “[T]hey must take pain that look for any gain.” It reflects the difficulty of this earthly life. In the 1980s, Jane Fonda seems to have popularized the proverb in relation to exercise when she encouraged people to “feel the burn” while following her aerobic workout videos.
     t’s perhaps not as surprising that dude is old, since the American West is full of dude ranches that seem to link the word to cowboy life. Dude originally had more to do with Yankee Doodle than with ranching, though. A doodle was a fop in the 18th century, a man who took too much care over his ostentatious clothes, just as Yankee Doodle was a “dandy” who tried to pass himself off as one of the “macaroni,” a set of ultra-fashionable 1770s young men.
      Doodle eventually became dude, so a dude ranch is not where real cowboys gather, but where delicate city slickers can go to get a taste of ranch life. In the 1960s, dude was rehabilitated to mean a cool guy, a later version of the hepster, and now often simply means guy, with neither positive nor negative connotation.

PHOTOS OF THE DAY

Cast members of the Shakespeare’s Rose Theatre’s production of Twelfth Night take to the River Ouse to celebrate the play, which runs until the 1 September in York.
CREDIT: DANNY LAWSON/PA

Acrobats Nikki Rummer and JD Brousse perform arial hand to hand Circus Lane in Edinburgh, Scotland
CREDIT: DUNCAN MCGLYNN

A worker putting salad seeds to grow onto a water basin at the Sfera Agricola hydroponic farm in Gavorrano, Italy. The Italian tomato is prized around the world, but its flavour has sourced in recent years over reports of mafia infiltration, slave labour and toxic fires that poison water sources. Southern Europe’s biggest hydroponics farm is out to change all that, by growing pesticide-free crops in environmentally-friendly greenhouses – and getting bumblebees to do the hard work.
CREDIT- ALBERTO PIZZOLI/AFP/GETTY IMAGES

Market Closes for August 8th, 2019

Market Index	Close	Change
Dow Jones	26378.19	+371.12 +1.43%
S&P 500	2938.09	+54.11 +1.88%
NASDAQ	8039.156	+176.330 +2.24%
TSX	16404.53	+139.31
		+0.86%

International Markets

Market Index	Close	Change
NIKKEI	20593.35	+76.79
		+0.37%
HANG SENG	26120.77	+123.74
		+0.48%
SENSEX	37327.36	+636.86
		+1.74%
FTSE 100*	7285.90	+87.20
		+0.23%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.243		1.241
CND. 30 Year Bond		1.492		1.485
U.S.    10 Year Bond		1.7172		1.7342
U.S. 30 Year Bond		2.2243		2.2522

Currencies

BOC Close	Today	Previous
Canadian $	0.75560	0.75146
US $	1.32345	1.33074
Euro Rate 1 Euro=		Inverse
Canadian $	1.48071	0.67535
US $	1.11875	0.89385

Commodities

Gold	Close	Previous
London Gold Fix	1506.05	1465.25
Oil
WTI Crude Future	52.54	51.09

Market Commentary:
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose for the second day, climbing 0.9 percent, or 139.31 to 16,404.53 in Toronto. The move was the biggest gain since June 18. Shopify Inc. contributed the most to the index gain, increasing 4.3 percent. TMX Group Ltd. had the largest increase, rising 12.1 percent. Today, 189 of 239 shares rose, while 45 fell; 9 of 11 sectors were higher, led by financials stocks.

Insights
* In the past year, the index had a similar or greater gain 11 times. The next day, it advanced nine times for an average 0.5 percent and declined twice for an average 0.2 percent
* So far this week, the index rose 0.8 percent, heading for the biggest advance since the week ended July 5
* The index advanced 0.5 percent in the past 52 weeks. The MSCI AC Americas Index gained 2.6 percent in the same period
* The S&P/TSX Composite is 1.6 percent below its 52-week high on April 23, 2019 and 19.1 percent above its low on Dec. 24, 2018
* The S&P/TSX Composite is unchanged in the past 5 days and fell 0.4 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.5 on a trailing basis and 15.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.49 trillion
* 30-day price volatility rose to 6.75 percent compared with 6.32 percent in the previous session and the average of 6.37 percent over the past month
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | 37.9585| 0.7| 24/2
Energy | 29.6264| 1.1| 32/7
Materials | 22.0632| 1.2| 39/6
Information Technology | 20.2696| 2.3| 10/0
Industrials | 19.8370| 1.1| 25/5
Consumer Staples | 6.6386| 1.0| 9/1
Utilities | 2.6015| 0.4| 13/3
Real Estate | 1.7587| 0.3| 16/9
Health Care | 1.4167| 0.5| 9/2
Consumer Discretionary | -0.9890| -0.1| 10/5
Communication Services | -1.8841| -0.2| 2/5
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Shopify | 13.7800| 4.3| 21.6| 150.6
TD Bank | 8.8760| 0.9| -13.2| 10.6
Canadian National | 7.3320| 1.2| -26.9| 22.9
CI Financial | -2.7790| -8.8| 200.0| 6.0
Canadian Tire | -2.8460| -4.8| 224.5| -4.5
Restaurant Brands | -4.5690| -2.4| 11.1| 42.0
Biggest Gainers | % Change |Points Move|20D AVG (%)| (%)
================================================================
TMX Group | 12.1| 3.1360| 132.3| 60.7
Inter Pipeline | 8.7| 5.5390| 246.9| 22.2
Cott | 7.4| 1.1850| 158.1| -7.3

Biggest Losers | % Change |Points Move| (%) | (%)
================================================================
Iamgold | -14.6| -2.6070| 244.9| -8.6
NuVista Energy | -9.4| -0.3380| 431.7| -50.2
AG Growth | | | |
International | -9.0| -0.6080| 389.9| -1.4

* The benchmark 10-year bond was little changed at 1.241 percent
* The S&P 500 Index advanced 1.9 percent
US
By Vildana Hajric and Brendan Walsh
(Bloomberg) — Equities rallied after China’s stronger-than-expected daily fixing of its currency eased fears about a worsening trade conflict. The S&P 500 Index posted its biggest advance in two months, building on gains in Europe and Asia and erasing its loss for the week. A surge in technology companies pushed the Nasdaq Composite up more than 2%. Treasury yields edged lower and the dollar weakened. Oil climbed. Thursday’s move by the People’s Bank of China was seen as an effort to stabilize its currency and went some way toward easing market concern that peaked Monday, when a weak reference rate spurred concern that the trade war was heating up. Despite evidence of some renewed risk appetite, stocks are still well off the record highs reached last month and traders remain jumpy about the potential for escalation in the conflict.
“For now, as far as volatility, the worst is over,” Rick Bensignor, the founder of Bensignor Group and a former strategist for Morgan Stanley, said in an interview at Bloomberg’s New York headquarters. “China’s smartly doing what they can. On their part, I think it’s a good tactical move.” The dollar extended its decline after President Donald Trump said a strong greenback was hurting U.S. manufacturers and urged the Federal Reserve to cut interest rates. The Stoxx Europe 600 rose the most in seven weeks. A gauge of Asia stocks increased as China’s Shanghai Composite rebounded from the lowest level since February. The Australian dollar gained from its lowest level in a decade. Bitcoin hovered below $12,000, a level it’s failed to close above for one month.
Oil snapped a three-day losing streak after Saudi Arabia contacted other producers to discuss options to stem a rout that’s been driven by the worsening China trade conflict. Here are the main moves in markets (all sizes and scopes are on a closing basis):
Stocks
* The S&P 500 Index increased 1.9% at the close of trading in New York; the Nasdaq Composite added 2.2%.
* The Stoxx Europe 600 Index jumped 1.7%, the biggest increase in more than seven weeks.
* The MSCI Asia Pacific Index climbed 0.6%, the largest increase in almost three weeks.
* The Shanghai Composite Index jumped 0.9% for the biggest increase in more than five weeks.
Currencies
* The Bloomberg Dollar Spot Index dipped 0.2%.
* The onshore yuan rose 0.2% to 7.0451 per dollar.
* The euro slipped 0.1% to $1.1187.
* The Australian dollar jumped 0.7% to $0.6807 for the biggest increase in three weeks.
* The Japanese yen climbed 0.3% to 106.01 per dollar.
Bonds
* The yield on 10-year Treasuries fell one basis point to 1.72%.
* Germany’s 10-year yield increased two basis points to -0.56%, the first advance in two weeks.
* Britain’s 10-year yield rose four basis points to 0.52%.
Commodities
* Gold rose 0.1% to $1,502.94 an ounce.
* West Texas Intermediate crude rose 3.2% to $52.75.
–With assistance from David Ingles, Adam Haigh, Andreea Papuc,
Laura Curtis and Andrew Dunn.
Have a great night.

Be magnificent!
As ever,

Carolann

Every man desires to live long, but no man would be old.
                                       -Jonathan Swift, 1667-1745

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents:
1942 U.S. forces landed at Guadalcanal, marking the start of the first major allied offensive in the Pacific during World War II.  Go to article »

1960: Sir Winston Churchill died.

1959: First Photo of Earth from Space was released.  The U.S, satellite Explorer VI transmitted the first picture of Earth.   But it would take years for the general public to see the pictures of Earth from space.

“In 1966 I conceived and sold buttons which read, ‘Why Haven’t We Seen A Photograph of the Whole Earth Yet?’  Legend has it that this accelerated NASA’s making good color photos from distant space….We saw the photograph of the Earth from space that we got  from the Apollo program in 1969.  The first Earth Day was in 1970.  This is not an accident.  The ecology movement really took off once we had those photographs from space.” -Stewart Brand, founder, Whole Earth Catalog.

ICYMI -from Scott Kominers , Bloomberg.
Scientists bake bread with 4,500-year-old yeast. 
Ancient parrot was more than 3 feet tall.

PHOTOS OF THE DAY

A flock of sheep crosses alpine terrain in Flaesch, Switzerland.
CREDIT: GIAN EHRENZELLER/ KEYSTONE VIA AP

Ashtalaxmi Dinakaran (L) holding onto a canvas as her son Yugan Navin Jeyaratnam, 4, creates a watercolor and acrylic painting in at Splat Paint House in Singapore. -Singaporeans dressed in overalls squirted paint onto walls and canvas using water pistols and syringes at a new pop-up art studio where people get messy to relieve stress.
CREDITS: ROSLAN RAHMAN/AFP/GETTY IMAGES

A festival-goer rests in a hammock on the premises of the Sziget (Island) Festival on Shipyard Island, Northern Budapest, Hungary, on the eve of the opening. The festival is one of the biggest cultural events in Europe, offering art exhibitions, theatrical and circus performances and above all music concerts in seven days. Sziget Festival on Shipyard, Budpest, Hungary.
CREDIT: MARTOM MONUS/EPA-EFE/REX

Market Closes for August 7th, 2019

Market Index	Close	Change
Dow Jones	26007.07	-22.45 -0.9%
S&P 500	2883.98	+2.21 +0.08%
NASDAQ	7862.824	+29.559 +0.38%
TSX	16265.22	-115.73
		-0.72%

International Markets

Market Index	Close	Change
NIKKEI	20516.56	-68.75
		-0.33%
HANG SENG	25997.03	+20.79
		+0.08%
SENSEX	36690.50	-286.35
		-0.77%
FTSE 100*	7198.70	+27.01
		+0.38%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.241		1.239
CND. 30 Year Bond		1.485		1.501
U.S.    10 Year Bond		1.7342		1.7023
U.S. 30 Year Bond		2.2522		2.2330

Currencies

BOC Close	Today	Previous
Canadian $	0.75146	0.75278
US $	1.33074	1.32841
Euro Rate 1 Euro=		Inverse
Canadian $	1.49117	0.67060
US $	1.12056	0.89240

Commodities

Gold	Close	Previous
London Gold Fix	1465.25	1465.25
Oil
WTI Crude Future	51.09	53.63

Market Commentary:
With worries about tariffs slowing the U.S. economy intensifying, federal-funds futures used to wager on the direction of monetary policy now show a market-implied probability of about 43% that the Fed lowers rates at least three more times in its final three meetings of the year. 
Canada
By Bloomberg Automation
(Bloomberg) — The S&P/TSX Composite rose 0.7 percent at 16,265.22 in Toronto. The move was the biggest since rising 0.9 percent on June 18 and follows the previous session’s decrease of 0.8 percent. Today, materials stocks led the market higher, as 10 of 11 sectors gained; 131 of 239 shares rose, while 103 fell. Enbridge Inc. contributed the most to the index gain, increasing 2.5 percent. B2Gold Corp. had the largest increase, rising 11.5 percent.

Insights
* In the past year, the index had a similar or greater gain 17 times. The next day, it advanced 10 times for an average 0.5 percent and declined seven times for an average 0.4 percent.
* The index was little changed in the past 52 weeks. The MSCI AC Americas Index gained 0.6 percent in the same period
* The S&P/TSX Composite is 2.4 percent below its 52-week high on April 23, 2019 and 18.1 percent above its low on Dec. 24, 2018
* The S&P/TSX Composite is down 1.2 percent in the past 5 days and fell 1.7 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 16.4 on a trailing basis and 15 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12- month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.48 trillion
* 30-day price volatility fell to 6.32 percent compared with 6.45 percent in the previous session and the average of 6.35 percent over the past month

Sector Name | Move | % Change | Adv/Dec
================================================================
Materials | 30.2667| 1.6| 29/17
Financials | 15.0428| 0.3| 12/13
Consumer Discretionary | 13.7743| 2.0| 11/5
Information Technology | 12.7133| 1.5| 9/1
Energy | 12.4788| 0.5| 7/31
Communication Services | 9.4201| 1.0| 5/2
Real Estate | 8.0945| 1.4| 25/0
Industrials | 6.8395| 0.4| 11/20
Consumer Staples | 6.0495| 0.9| 7/3
Utilities | 3.0901| 0.4| 11/4
Health Care | -2.0471| -0.7| 4/7

| Index | | 20D AVG |YTD Change
Top Contributors |Points Move| % Change | (%) | (%)
================================================================
Enbridge Inc | 15.6100| 2.5| 143.6| 5.2
Barrick Gold | 9.1330| 3.1| 108.8| 30.5
Shopify | 8.3390| 2.7| 26.9| 140.3
Canadian Pacific | -1.9270| -0.6| 68.2| 25.3
Manulife Financial | -2.1080| -0.7| 102.6| 13.0
TD Bank | -2.3490| -0.2| 5.1| 9.6

Biggest Gainers | % Change | Move | (%) | (%)
================================================================
B2Gold | 11.5| 3.8030| 288.1| 29.3
First Majestic | 6.1| 0.9930| 75.2| 73.6
Finning International| 6.1| 1.5280| 66.1| -3.7

Biggest Losers| % Change | Move |20D AVG (%)| (%)
================================================================
NuVista Energy| -13.5| -0.5630| 552.1| -45.1
Eldorado Gold | -8.1| -1.0430| 173.2| 160.8
ERO Copper | -8.1| -0.8030| 206.5| 119.8

* The benchmark 10-year bond rose and the yield fell 0.7 basis points to 1.232 percent
* The S&P 500 Index advanced slightly, up 0.1 percent

US
By Vildana Hajric and Olivia Rinaldi
(Bloomberg) — U.S. equities and benchmark Treasury yields mounted an impressive comeback late in the day, reversing sharp drops as investors turned more positive on the outlook for global growth amid central-bank moves to ease monetary policy. The S&P 500 Index eked out a modest gain after tumbling as much as 2%, with CVS Health Corp.’s biggest jump in almost eight years and an advance for the biggest tech companies supporting the gauge. Yields on 10-year Treasuries edged higher after an earlier plunge. Currency markets were volatile after rate cuts in New Zealand, India and Thailand. Traders are weighing asset valuations after this week saw the biggest one-day plunge in global equities since February 2018 amid fear an escalation in the trade war will spur a global recession. Threats of expanded tariffs are also creating uncertainty in corporate boardrooms, spurring concern there will be a pullback in capital outlays and a drop in earnings. Hope is resting on central banks to buoy growth.
“A lot of investors feel like we’re getting ready to hit a wall because of the actions of the trade war,” said Bob Phillips, managing principal at Spectrum Management Group. “I’m hoping wiser heads will prevail in this trade battle and something will work out.” New Zealand’s dollar tumbled after a bigger-than-expected rate cut. The yuan dipped after China set its reference rate slightly weaker than expected. India’s rupee and the Thai baht slipped. The U.S. dollar was steady, while the yen gained and gold rallied toward $1,500 an ounce. The dovish moves by three central banks underscore the global shift toward easier policy even after the Federal Reserve’s unexpectedly hawkish stance last week. President Donald Trump again on Wednesday urged the Fed to ease policy, saying in a tweet that “They must Cut Rates bigger and faster, and stop their ridiculous quantitative tightening NOW.”
Elsewhere, oil extended a decline after Brent crude closed in a bear market on Tuesday. The Stoxx Europe 600 erased most of an advance that reached 1.1% at one point. Shares were mixed and calmer in Asia, with Japanese stocks closing barely changed
while equities in Shanghai fell.
These are some key events to watch out for this week:
* A string of Fed policy makers speak this week, including Chicago’s Charles Evans on Wednesday.

Here are the main moves in markets (all sizes and scopes are on a closing basis):
Stocks
* The S&P 500 Index rose 0.1% at the close of trading in New York.
* The Stoxx Europe 600 Index rose 0.2%.
* The MSCI AC Asia Pacific Index rose 0.1%.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro rose 0.1% to $1.1215.
* The British pound declined 0.2% to $1.2146.
* The Japanese yen advanced 0.2% to 106.21 per dollar.
Bonds
* The yield on 10-year Treasuries rose one basis point to 1.71%.
* Germany’s 10-year yield decreased five basis points to -0.59%, hitting the lowest on record.
* Britain’s 10-year yield declined three basis points to 0.48%, the lowest on record.
* Japan’s 10-year yield dipped one basis point to -0.2%, the lowest in about three years.
Commodities
* West Texas Intermediate crude fell 2.4% to $52.32 a barrel, the lowest since early June.
* Gold gained 2% to $1,504.66 an ounce, the highest in more than six years.

–With assistance from Adam Haigh, Eddie van der Walt, Robert
Brand, Claire Boston and Vildana Hajric.

Have a great night.

Be magnificent!
As ever,

Carolann

Forever is composed of nows.
-Emily Dickinson, 1830-1886

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,
Tangents:
August 6, 1958 ~ Egypt and Syria united and renamed as the United Arab Republic.
On Aug. 6, 1945, the United States dropped an atomic bomb on Hiroshima, Japan, that instantly killed an estimated 66,000 people in the first use of a nuclear weapon in warfare. Go to article »

If I had only known, I would have been a locksmith. -Albert Einstein.

R.I.P., Toni Morrison.

How to spend $100,000 on a car in line at the grocery store. 

PHOTOS OF THE DAY

A Great Grey Owl utilising its amazing camouflage when hunting or sleeping in a tree. The playful owl camouflaged itself so well, making it impossible to spot between the trees, close to the rocky mountains, in Alberta, Canada.
CREDIT: ROB BROVOSKY / CATER NEWS

Shaolin boys practice kung fu in the sweltering heat during the zen shaolin music ceremony at a shaolin temple in Dengfeng, Henan province, China. These shaolin unique skills include: shaolin arhat formation, tiebushan, three gun sashimi, shaolin stick, shaolin stone lock skill, iron hand splitting bricks, water training, fist and foot sparring.
CREDIIT: ZUMA PRESS, INC / ALAMY LIVE NEWS

Lightning above South Shields in the North East if England as more as more storms are forecast for the UK this week.
CREDIT: ALEC JONES/ BAV MEDIA

Market Closes for August 6th, 2019

Market Index	Close	Change
Dow Jones	26026.52	+311.78 +1.21%
S&P 500	2881.77	+37.03 +1.30%
NASDAQ	7833.266	+107.226 +1.39%
TSX	16149.49	-122.17
		-0.75%

International Markets

Market Index	Close	Change
NIKKEI	20585.31	-134.93
		-0.65%
HANG SENG	25976.24	-175.08
		-0.67%
SENSEX	36976.85	+227.01
		+0.75%
FTSE 100*	7171.69	-52.16
		-0.72%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.239		1.374
CND. 30 Year Bond		1.501		1.614
U.S.    10 Year Bond		1.7023		1.8452
U.S. 30 Year Bond		2.2330		2.3820

Currencies

BOC Close	Today	Previous
Canadian $	0.75278	0.75712
US $	1.32841	1.32079
Euro Rate 1 Euro=		Inverse
Canadian $	1.48812	0.67199
US $	1.12023	0.89267

Commodities

Gold	Close	Previous
London Gold Fix	1465.25	1406.80
Oil
WTI Crude Future	53.63	55.66

Market Commentary:
Canada
By Carolina Wilson
(Bloomberg) — Canadian stocks played catch up with a global rout following Monday’s holiday, with the nation’s benchmark falling the most this year before paring losses. The S&P/TSX Composite Index fell 0.8% on Tuesday, extending its slump for a sixth straight session — its longest losing streak since Sept. 10. Energy stocks were the biggest decliners on the benchmark as the price of oil continued to slide despite China’s move to stabilize the yuan. Gold miners soared following the precious metal’s rise to near $1,500 per ounce on Monday.
Consumer discretionary and financials also fell. Materials and health care stocks led to the upside. Separately, troubled construction firm SNC-Lavalin Group Inc. plunged 8.1% to a 15-year low after company’s top shareholder Caisse de Depot et Placement du Quebec said Monday SNC must build a culture of execution and take a “major step up in discipline” to implement new strategy.
In other moves:
Stocks
* Gold miners: Eldorado Gold gained 5.6%, Yamana Gold jumped 9%
* Aurora Cannabis rose 8.2% after saying it’s on track for positive adj. Ebitda
* Just Energy Group plunged 10.5% after CEO change amid strategic review
* Peyto Exploration & Development dropped 6.2%
* Gran Tierra Energy fell 5.4%
Commodities
* Western Canada Select crude oil traded at a $12.85 discount to WTI
* Spot gold rose 0.6% to $1,485.70 an ounce
FX/Bonds
* The Canadian dollar retreated 0.5% to C$1.3275 per U.S. dollar
* The Canada 10-year government bond yield fell to 1.23%
US
By Brendan Walsh and Olivia Rinaldi
(Bloomberg) — U.S. shares clawed back some of their recent losses after China’s move to stabilize its currency fueled speculation cooler heads will prevent a full-blown trade war. The S&P 500 Index rose 1.3%, though it remained well off the record high it reached just a bit more than a week ago. The dollar steadied and gold held near a six-year high after China fixed the yuan at stronger than 7 per dollar, the level that spurred a global sell-off Monday. Treasuries gave back some of yesterday’s surge, which had created the most extreme yield-curve inversion since the lead-up to the 2008 financial crisis. China’s move to stabilize the yuan offered some reassurance that the trade conflict between the world’s two largest economies might be contained. But it came hours after the U.S. had designated the country a currency “manipulator,” a move that could open the door to new penalties on top of the tariff hikes already imposed on Chinese goods. For its part, China said the recent yuan depreciation was decided by the market, not Beijing,
and denied the Trump administration’s accusation.
“It was encouraging to see China walk in and support the currency overnight,” said Ed Keon, a managing director and portfolio manager at QMA. “But there’s still a long way to go and it feels as if this has entered a new, and perhaps more dangerous, phase.” Meanwhile, White House Chief Economic Adviser Larry Kudlow said the U.S. expects China to visit for more trade talks in September. Bloomberg reported the People’s Bank of China reassured a number of foreign exporters the yuan won’t continue to weaken significantly and the companies’ ability to buy and sell dollars would remain normal. Brent oil slid into bear-market territory as investors speculated a slowing economy could sap demand.The Stoxx Europe 600 erased gains and dropped for a third straight day. The yen slipped from its strongest closing level in more than a year.The benchmark gauge for Asian stocks fell for a fifth session.
Elsewhere, Bitcoin broke above $12,000 for the first time in three weeks before pulling back. The pound strengthened as opponents of a no-deal Brexit hardened their plans to stop Prime Minister Boris Johnson from possibly trying to leave the European Union with no agreement.
These are some key events to watch out for this week:
* Earnings from financial giants include: UniCredit, AIG, ABN Amro Bank, Standard Bank, Japan Post Bank.
* Central banks with rate decisions Wednesday include India and New Zealand.
* A string of Fed policy makers speak this week, including Chicago’s Charles Evans on Wednesday.

Here are the main moves in markets (all sizes and scopes are on a closing basis):
Stocks
* The S&P 500 Index rose 1.3% at the close of trading in New York.
* The Stoxx Europe 600 Index fell 0.5%.
* The MSCI Asia Pacific Index declined 0.8%, hitting the lowest in almost seven months.
Currencies
* The Bloomberg Dollar Spot Index rose 0.1%.
* The euro was little changed at $1.1197.
* The British pound gained 0.2% to $1.2161.
* The Japanese yen sank 0.5% to 106.52 per dollar.
* The onshore yuan jumped 0.4% to 7.0198 per dollar, the biggest increase in six weeks.
Bonds
* The yield on 10-year Treasuries increased one basis point to1.72%, the first advance in more than a week.
* Britain’s 10-year yield was little changed at 0.51%.
* Germany’s 10-year yield decreased two basis points to -0.54%, hitting the lowest on record with its eighth straight decline.
Commodities
* Gold rose 0.6% to $1,472.63 an ounce, the highest in more than six years.
* West Texas Intermediate crude fell 1.9% to $53.68 a barrel.
–With assistance from David Ingles, Cormac Mullen, Andreea
Papuc and Laura Curtis.
Have  a great night.

Be magnificent!
As ever,

Carolann

Every noble work is at first impossible.
          -Thomas Carlyle, 1795-1881

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com

Dear Friends,

Tangents: Happy Friday!
On August 2, 2019, the Queen of Italy, Margherita Savoy, ordered the first pizza delivery.

An asteroid bigger than the Empire State Building is passing by Earth next week. You (probably) shouldn’t worry about it.

I just finished reading the book Happiness  last night by Aminatta Forna and I recommend it if you’re looking for something to read this summer.  It is a novel (fiction) that takes place in London and the main characters are a biologist who studies urban foxes and a psychiatrist from Ghana whose career was spent in war zones and conflict areas counselling those in the field and afterwards, those with PTSD.  They meet when he is in London for a convention of psychiatrists.  His definition of happiness which is expressed toward the end of the novel is intriguing and a profound conclusion to the novel.

PHOTOS OF THE DAY

Palestinian men perform fire breathing on the beach as an entertainment for children during the summer vacation in Gaza City.
CREDIT: MOHAMMED ABED/AFP/GETTY IMAGES

Fireworks illuminate the sky in Basel, Switzerland, on the eve of Switzerland’s birthday.
CREDIT: GEORGIOS KEFALAS/EPA-EFE/REX

A helicopter from the Swedish icebreaker Oden lands on an ice floe to pick up crew members involved in the retrieval of a scientific acoustic recorder containing valuable data on Arctic marine movements in the Canadian Arctic.
CREDIT: INNER SPACE CENTER VIA REUTERS ATTENTION

This satellite image provided by NASA shows winds carrying individual plumes of smoke in Russia, centre right, towards the southwest, mixing with a swirling storm system. Forest fires have engulfed nearly 30,000 square kilometres (11,580 square miles) of territory in Siberia and the Russian Far East – an area the size of Belgium.

Market Closes for August 2nd, 2019

Market Index	Close	Change
Dow Jones	26485.01	-98.41 -0.37%
S&P 500	2932.05	-21.51 -0.73%
NASDAQ	8004.074	-107.047 -1.32%
TSX	16271.66	-105.38
		-0.64%

International Markets

Market Index	Close	Change
NIKKEI	21087.16	-453.83
		-2.11%
HANG SENG	26918.58	-647.12
		-2.35%
SENSEX	37118.22	+99.90
		+0.27%
FTSE 100*	7407.06	-177.81
		-2.34%

Bonds

Bonds		% Yield		Previous % Yield
CND. 10 Year Bond		1.374		1.398
CND. 30 Year Bond		1.614		1.631
U.S.    10 Year Bond		1.8452		1.8935
U.S. 30 Year Bond		2.3820		2.4420

Currencies

BOC Close	Today	Previous
Canadian $	0.75712	0.75680
US $	1.32079	1.32136
Euro Rate 1 Euro=		Inverse
Canadian $	1.46815	0.68113
US $	1.11157	0.89963

Commodities

Gold	Close	Previous
London Gold Fix	1406.80	1427.55
Oil
WTI Crude Future	55.66	53.95

Market Commentary:
Canada
By Kristine Owram
(Bloomberg) — Canadian stocks tumbled Friday to close out their worst week of the year, as strong gains in pot stocks weren’t enough to offset declines in most other sectors. The S&P/TSX Composite Index fell 0.6% to 16,271.66 amid an escalation in the U.S.-China trade war, bringing its weekly decline to 1.6%. Technology stocks led the decline as Open Text Corp. fell 8.8%, the most since 2015, after Veritas Investment Research Co. downgraded the stock to sell from buy.
The health-care sector jumped 4.8%, the most in two months, as pot stocks rose. Aphria Inc. surged 40%, the most since December, on strong earnings that beat expectations on virtually all metrics. Cronos Group Inc. gained 8.5% after announcing it will enter the U.S. CBD market with a $300 million acquisition.
In other moves:
Stocks
* Restaurant Brands International Inc. rose 5.9% to a record high. Second-quarter profit beat estimates on strong global sales at Burger King
* SNC-Lavalin Group Inc. lost 5.9% to the lowest since 2004. The engineering firm cut its quarterly dividend to two cents from 10 cents after reporting a wider-than-expected loss
* Spin Master Corp. fell 4.2% after U.S. President Donald Trump announced plans for additional Chinese tariffs that could hit toy makers
Commodities
* Western Canada Select crude oil traded at a $12.60 discount to WTI
* Gold rose 1.7% to $1,445.60 an ounce, the biggest gain in six weeks
FX/Bonds
* The Canadian dollar was little changed at C$1.3215 per U.S. dollar
* The Canada 10-year government bond yield fell two basis points to 1.38%
US
By Randall Jensen and Vildana Hajric
(Bloomberg) — U.S. stocks suffered the worst week of 2019 as investors fretted over Donald Trump’s escalation of his trade war with China. Treasuries rose, while the yen strengthened. The S&P 500 fell for a fifth straight day, its steepest weekly loss since December’s sell-off. Trade angst recaptured center stage after Trump said Thursday he’d slap more tariffs on Chinese goods, adding to worries that the spat could derail the global economy. China vowed it would counter the threat. The president ratcheted up his rhetoric late Friday, saying he could boost the levies to a “much higher number.” Stocks were already under pressure after investors groused that the first Federal Reserve rate cut in a decade didn’t come with assurances of further easing.Ten-year Treasury yields held near the lowest level since 2016 after the July U.S. jobs report did little to alter views on the economy and path for future rate policy. The dollar was lower against most major currencies. West Texas crude clawed back some of its 8% slide on Thursday, while copper fell to a two-year low in London.
“The Fed is largely easing policy because of the possibility that trade tensions will impact the global economy and the feedback into the U.S. economy would be negative, and that calculus appears to be correct,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “Yesterday’s announcement of an escalation of trade tensions is the key risk to markets now that the Fed is easing monetary policy and it bears watching how far the administration will push tariffs that ultimately impact the consumer, which up to this point has been very resilient.” The jobs report Friday added another piece to an already large puzzle that includes the Fed, earnings and trade. While China has yet to offer details on what measures it would take, the sudden escalation of the spat has put markets in a spin in an already action-packed week of corporate earnings and central-bank meetings.
The developments come after the Federal Reserve chief cast doubt about a long cycle of interest-rate cuts, provoking the president’s ire and disappointing many investors. Elsewhere, most European government bonds rose alongside the common currency. The pound gained after a by-election loss reduced U.K. Prime Minister Boris Johnson’s House of Commons majority to a single seat.
Here are the main moves in markets (all sizes and scopes
are on a closing basis):

Stocks
* The S&P 500 Index dipped 0.7% as of 4 p.m. New York time, hitting the lowest in five weeks and capping the worst weekly loss since December 2018.
* The Dow Jones Industrial Average decreased 0.6% to the lowest in more than six weeks.
* The Nasdaq Composite Index declined 1.6%, hitting the lowest in five weeks.
* The Stoxx Europe 600 Index decreased 2.5%, the lowest in more than six weeks.
Currencies
* The Bloomberg Dollar Spot Index fell 0.1%.
* The Japanese yen gained 0.7% to 106.47 per dollar, the strongest in 16 months.
* The euro rose 0.2% to 1.1112 per dollar.
Bonds
* The yield on 10-year Treasuries fell four basis points to 1.85%.
* The yield on two-year Treasuries decreased two basis points to 1.72%.
* Germany’s 10-year yield dipped five basis points to -0.495%, hitting the lowest on record.
Commodities
* Gold dropped 0.2% at $1,441.85 an ounce.
* West Texas Intermediate crude gained 2.5% to $55.29 a barrel.
–With assistance from Elena Popina, Laura Curtis and Luke Kawa.
Have a wonderful weekend everyone.

Be magnificent!
As ever,

Carolann

Science is what you know; philosophy is what you don’t know.
                                           -Bertrand Russell, 1872-1970

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com