January 17, 2013 Newsletter

Dear Friends,

Tangents:

Carolann is away at a meeting this afternoon therefore I will be writing the Newsletter on her behalf.

On Tuesday evening I went to the theatre and saw “Les Miserables” with a girlfriend of mine.  I had previously seen the musical in Vancouver years ago, so I was a bit apprehensive as to how the movie would live up to the live performance. Let me tell you, it was incredible!  The actors/actress’ they chose to play the roles, were absolutely amazing!  The Golden Globes recognized this and awarded “Les Miserables” with the Best Picture, Musical or Comedy this year.  Directed by Tom Hooper, this great film defeated other top competitors such as “Silver Linings Playbook”, “The Best Exotic Marigold Hotel” and a few others.  Along with the Golden Globe Award, “Les Miserables” also received many nominations for the outstanding acting in the movie.  If you haven’t seen this film yet, I encourage you to do so before it leaves the theatre!

“It is easy to sit up and take notice, What is difficult is getting up and taking action.”- Honore de Balzac

On this day:

1806 – James Madison Randolph, grandson of U.S. President Thomas Jefferson, was the first child born in the White House.

1852 – The independence of the Transvaal Boers was recognized by Britain.

1882 – Thomas Edison’s exhibit opened the Crystal Palace Exhibition in London.

1893 – Hawaii‘s monarchy was overthrown when a group of businessmen and sugar planters forced Queen Liliuokalani to abdicate.

1900 – Yaqui Indians in Texas proclaimed their independence from Mexico.

1912 – English explorer Robert Falcon Scott reached the South Pole. Norwegian Roald Amundsen had beaten him there by one month. Scott and his party died during the return trip.

1916 – The Professional Golfers Association was formed in New York City.

1928 – The fully automatic, film-developing machine was patented by A.M. Josepho.

“Continuous effort – not strength or intelligence – is the key to unlocking our potential.” – Winston Churchill

Photos of the day January 17^th, 2013

A man rides his horse through the flames during the “Luminarias” annual religious celebration on the night before Saint Anthony’s, Patron of animals, Day in the village of San Bartolome de los Pinares, about 62 miles northwest of Madrid, Spain, January 16, 2013. According to tradition that dates back 500 years, people ride their horses trough the narrow cobblestone streets of this small village to purify the animals with the smoke from the bonfires.

Photo: Sergio Perez/Reuters

Clearing skies await a tripod-toting photographer looking for a spot to capture the early-morning light at Portland Head Light in Cape Elizabeth, Maine. A snowstorm that ended before dawn temporarily transformed Fort Williams Park into a snowy scene. Photo: Robert F. Bukaty/AP

Market Closes for January 17^th, 2013:

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Canada

By Eric Lam

Jan. 17 (Bloomberg) — Canadian stocks rose to a 10-month high as banks rallied and crude advanced after U.S. reports showed housing starts climbed more than anticipated in December and initial jobless claims dropped to a five-year low.

Canadian Natural Resources Ltd. gained 2.1 percent as oil rose to a four-month high. Ivanplats Ltd. climbed 2.1 percent after more than doubling resource estimates at its Kamoa copper mine. Sun Life Financial Inc. added 1.1 percent after partnering with Malaysia’s state investment fund to buy an insurance joint venture. H&R Real Estate Investment Trust dropped 2.1 percent as it offered to acquire Primaris Retail Real Estate Investment Trust, trumping a hostile offer from another investor group.

The Standard & Poor’s/TSX Composite Index rose 65.91 points, or 0.5 percent, to 12,674.73 in Toronto, the highest level since March 1. The benchmark gauge has gained 1.9 percent this year.

The U.S. housing and jobs data “is definitely a positive, it’s more validation of a trend that’s been in place,” said Jeff Parent, investment manager with Quadrexx Asset Management in Toronto. The firm manages about C$100 million. “The markets want to move higher but have been pausing and waiting. I’m quite bullish.”

U.S. Commerce Department figures showed housing starts rose 12.1 percent in December to a 954,000 annual rate, exceeding all forecasts in a Bloomberg survey and the most since June 2008.

Initial jobless claims fell 37,000 to 335,000 last week, the lowest since January 2008, Labor Department figures showed.

The Toronto-Dominion Bank climbed 1 percent to C$82.69 and Royal Bank of Canada rose 0.6 percent to C$61.44 as financial and energy companies contributed most to gains in the S&P/TSX.

All 10 industries advanced, on trading volume 6.7 percent lower than the 30-day average.

Canadian Natural Resources rose 2.1 percent to C$29.33 and TransCanada Corp., builder of the Keystone XL pipeline project, added 0.8 percent to C$48.58. Crude for February delivery surged 1.3 percent to settle at $95.49 a barrel in New York, the highest settlement since Sept. 17.

Ivanplats rose 2.1 percent to C$5.30 after reporting a 115 percent increase in resource estimates compared with September 2011 at its Kamoa copper project in the Democratic Republic of Congo. Copper futures for March delivery rose the most in two weeks, gaining 1.5 percent to settle at $3.662 a pound in New York.

Aecon Group Inc., a Toronto-based construction company, jumped 7.3 percent to C$11.75 after Michael Tupholme, an analyst with TD Securities, raised his price target to C$16 from C$15.50 while maintaining the stock as a top pick.

“We continue to see meaningful upside potential from current levels,” he said in a note to clients today.

Rogers Communications Inc. gained 1.4 percent to C$45.44 after Phillip Huang, an analyst with UBS Securities, said he expects the telecommunications giant to boost its dividend by 10 percent and renew a share buyback program on Feb. 15.

Sun Life added 1.1 percent to C$28.24. Canada’s third- largest insurer partnered with Khazanah Nasional Bhd., Malaysia’s state investment fund, to purchase 98 percent of Aviva Plc and CIMB Group Holdings Bhd.’s Malaysian insurance joint venture for 1.8 billion Malaysian ringgit ($600 million).

The deal is part of the company’s strategy to grow its business in Asia, said Kevin Strain, president of Sun Life’s Asian operations.

H&R REIT slipped 2.1 percent to C$23.28. It offered about C$27.33 in cash and stock for Primaris, the Canadian shopping mall owner that was the target of a hostile bid from an investor group led by KingSett Capital Inc. Primaris increased 0.3 percent to C$26.58.

US

By Stephen Kirkland and Rita Nazareth

Jan. 17 (Bloomberg) — Stocks rose for a third day and commodities rallied as a jump in U.S. housing starts and drop in jobless claims fueled optimism in the world’s largest economy.

The yen slid to the lowest since 2010 versus the dollar.

The Standard & Poor’s 500 Index gained 0.7 percent to 1,482.96 at 4 p.m. in New York, capping the longest rally in a month. Oil surged 1.3 percent to a four-month high of $95.49 a barrel to pace gains in commodities. The yen slid as much as 1.9 percent as Japan’s economy minister said the currency has more room to decline. The euro strengthened against all 16 major peers while the Swiss franc slid to the weakest level since the central bank introduced a currency cap in 2011. Yields on 10- year Treasuries rose five basis points to 1.87 percent.

Stocks jumped as applications for jobless benefits fell in the week ended Jan. 12 to the lowest level in five years, and housing starts climbed 12.1 percent last month, government data showed. Economy Minister Akira Amari said the yen is still in the process of correcting from excessive gains and that his remarks earlier this week on yen weakness were misinterpreted.

“We’re getting signs that both housing and the labor market are improving,” said Paul Zemsky, the New York-based head of asset allocation for ING Investment Management, which oversees $170 billion. “Housing, in particular, is a huge number. It’s positive for the economy, it’s positive for earnings and for the stock market.”

Intel Corp., Walt Disney Co. and Home Depot Inc. paced gains in the Dow Jones Industrial Average, which climbed above its highest close since 2007 during the day before paring gains.

PulteGroup Inc. led an S&P gauge of homebuilders to the highest level since 2007.

U.S. housing starts climbed to a 954,000 annual rate, exceeding all forecasts in a Bloomberg survey of economists and the most since June 2008, the Commerce Department reported today. Jobless claims decreased by 37,000 to 335,000 in the week ended Jan. 12, Labor Department figures showed. Economists forecast 369,000 claims, according to the median estimate in a Bloomberg survey.

CBS Corp. jumped 7.9 percent after saying it will convert its outdoor advertising division into a real estate investment trust and seek a buyer for the European and Asian parts of the business.

BlackRock Inc., the world’s biggest money manager, gained 4.4 percent after reporting adjusted fourth-quarter earnings of $3.93 a share, compared with the $3.71 a share average estimate of six analysts surveyed by Bloomberg.

Bank of America Corp. declined 4.2 percent after reporting earnings that decreased 64 percent. Of the 52 companies that posted quarterly results so far, 71 percent topped analysts’ profit projections, according to data compiled by Bloomberg.

Almost four shares rose for every one that declined in the Stoxx 600. Carrefour SA, Delhaize Group SA and Associated British Foods Plc led gains among retailers. Carrefour, France’s biggest retailer, climbed 6.1 percent and Delhaize, the owner of Food Lion supermarkets in the U.S., rallied 10 percent as fourth-quarter revenue increased. AB Foods advanced 3.2 percent as the U.K. sugar producer that owns Primark clothing stores reported a 10 percent gain in first-quarter sales.

The yen slid more than 1.5 percent against its 16 major peers before the Bank of Japan reviews its 1 percent inflation goal at a Jan. 21-22 meeting. Prime Minister Shinzo Abe has called for the target to be doubled as he works to spur economic growth.

BOJ and government officials reached basic agreement on a joint statement calling for a 2 percent inflation target and additional funds for purchasing assets, Nikkei reported without attribution.

The 17-nation euro gained 0.7 percent to $1.3377 as it strengthened against all 16 counterparts after Spain’s borrowing costs decreased at a 4.5 billion bond auction.

Switzerland’s franc fell as much as 1 percent to 1.2490 per euro, the weakest since May 2011. The currency declined against 15 of 16 major peers as signs Europe’s debt crisis is easing sapped demand for haven assets.

Major currencies have been roiled this week as policy makers stepped up warnings on swings in exchange rates.

Thailand’s finance minister today said the baht is “not at a good level,” while a Russian central bank official yesterday said the world is on the brink of a “currency war.” A JPMorgan index of volatility for currencies of Group of Seven nations jumped 5.9 percent to 8.9 today, the highest level since August.

The MSCI Emerging Markets Index rose 0.2 percent. India’s Sensex gained 0.7 percent as foreign investors added to their holdings of domestic shares for a 13th straight day. Russia’s Micex Index was little changed and Brazil’s Bovespa gauge gained 0.7 percent. The Shanghai Composite Index slid 1.1 percent before a report on fourth-quarter growth figures tomorrow.

Have a wonderful evening everyone!!

Be magnificent!

”One of the most tragic things I know about human nature is that all of us tend to put off living. We are all dreaming of some magical rose garden over the horizon instead of enjoying the roses that are blooming outside our windows today.” – Dale Carnegie

Kindest Regards,

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

Tel: 778-430-5808

Fax: 778-430-5838