November 27, 2017 Newsletter

Dear Friends,

Tangents:
Jimmy Hendrix, guitarist, b. 1942
Bruce Lee, actor, b. 1940

POINTS OF PROGRESS:
SWEDEN
The Scandinavian nation has opened a mall that sells only recycled and upcycled products.  ReTuna, named after the town of Eskilstuna in which it’s located, allows customers to drop off unwanted goods for staff to restore and repair for resale.  The mall also has a training college that teaches recycling, a restaurant, conference facilities, and a shop for local entrepreneurs and artisans to sell their items.
The World Economic Forum/Good News Network

INDIA
The South Asian giant plans to sell only electric cars by 2030.  The ambitious plan has both an economic and an environmental aim.  While it is part of the government’s broader push for a renewable energy revolution, the overhaul of the country’s auto industry is also expected to save India $60 billion on diesel and gas costs, as well as reduce carbon emissions by 37 percent by 2030.  India, a signatory of the Paris climate agreement, is home to some of the world’s most polluted cities.  Quart, CNN TECH.

BENIN
A 20-year forest restoration project in the African nation’s south is helping protect and revive endangered plants and monkeys.  Professors from two Beninese universities worked with local assistants to restore tiny remnants of depleted forest that harbor 64% of all critically endangered red-bellied monkey.  Science Daily
PHOTOS OF THE DAY

Mount Agung’s eruption is seen between Balinese temple at Kubu sub-district in Karangasem Regency on Indonesia’s resort island of Bali.

Years of the dragon: it took artist Jim Poolman, pictured, 12 years and more than 50,000 horseshoes to create this dragon sculpture after being told by the curator of The Sculpture Park, in Farnham, Surrey, that his original vision was not big enough.

A white bronze turkey is seen amongst Norfolk black turkeys hatched in June and raised free range for Christmas are seen ready for market on David McEvoy’s Turkey farm in Termonfeckin, Ireland.
Market Closes for November 27^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1991, Congress passes legislation bailing out the savings and loan industry. The bill authorizes $25 billion for the bailout and up to $35 billion in new borrowings to finance the government’s purchase of bad loans.

Number of the Day
4%
The number of people visiting U.S. stores on Thanksgiving and Black Friday fell 4% from last year, according to RetailNext Inc. Meanwhile, online sales increased 18% over that period.
Canada
By Carolina Wilson
     (Bloomberg) — Canadian stocks were less than 100 points shy of their closing record as energy stocks held back the benchmark Toronto index.
     The S&P/TSX Composite Index fell 66 points or 0.4 percent to 16,042.12 at the market close. Healthcare stocks were the biggest gainers, rising 0.5 percent.
     The energy sector fell almost 2 percent as West Texas intermediate tumbled 1.8 percent and hedge funds trimmed bullish Brent bets ahead of OPEC’s meeting later this week.
                         Stocks
* Sierra Wireless gained 11 percent. It climbed the most intraday in five months as Raymond James upgraded to buy owing to the outlook for internet connectivity in automobiles
* Cameco fell 7.2 percent. CCO fell the most intraday in a month after spot uranium posted biggest the biggest weekly loss since May
* MEG Energy fell 6.7 percent. MEG faces a heavy debt burden and tight liquidity after reporting 3Q results
* Kirkland Lake gained 6.5 percent. It was upgraded to buy at Desjardin.
                         Commodities
* Western Canada Select crude oil traded at a $17.00 discount to WTI
* Aeco natural gas traded at a $1.31 discount to Henry Hub
* Gold gained 0.5 percent to $1,293.40 an ounce
                          FX/Bonds
* The Canadian dollar was unchanged at C$1.2763 per U.S. dollar
* The Canadian 10-year government bond yield fell to 1.865% from 1.886% Friday
US
By Sarah Ponczek and Julie Verhage
     (Bloomberg) — U.S. equities ended Monday little changed as declining oil prices pulled down energy stocks at the start of a busy news week.
     West Texas Intermediate crude slipped after U.S. drillers expanded operations while OPEC and Russia prepare to discuss longer supply curbs. The S&P 500 Index fell less than 0.05 percent, giving up early gains, as companies including Marathon Oil Corp. and Newfield Exploration Co. dropped. 
     “After rallying to a two-and-a-half year high, WTI is stumbling lower ahead of the OPEC meeting later this week, as fears creep in that a production cut extension may not be formally announced,” Matt Smith, director of commodity research at Clipper Data, said in an email.
     Western Digital Corp., Seagate Technology Plc and Micron Technology Inc. dragged on the Nasdaq 100 Index after Morgan Stanley downgraded Western Digital. Reports of North Korea preparing a missile launch may also have affected markets, as the yen moved higher.
     Meanwhile, investors are gearing up for a big week, with U.S. President Donald Trump scheduled to address Senate Republicans Tuesday ahead of a potential vote on a tax overhaul. Federal Reserve Chair Janet Yellen testifies before the congressional Joint Economic Committee in Washington, and the confirmation hearing for her nominated successor, Jerome Powell, begins. Adding to the mix are data on U.S. GDP, prices and jobs.
     “To me, Powell is probably going to largely continue the existing policy,” Jerry Paul, senior vice president of fixed income and portfolio manager at Icon Funds in Denver, said by phone. “But the real question is what’s the real composition of the Fed gong to look like in 2018? People keep talking about the Fed’s intentions for 2018, but we’ve largely got an empty board there.”
     The Stoxx Europe 600 Index fell as defensive sectors such as real estate and utilities outperformed cyclical shares, with Deutsche Bank AG recommending a switch. The euro declined and German bonds gained as the country moved closer to forming a new government.
     Nickel led a slump in industrial metals, with copper declining for the first time in seven sessions. Precious metals had a better day, with gold and platinum rising.

      Here are some key events coming up this week:
* The U.S. Senate as soon as this week could debate and vote on tax-cut legislation.
* Minnesota Fed President Neel Kashkari, New York Fed President Bill Dudley, Philadelphia Fed’s Pat Harker are among other Fed speakers this week.
* President Trump will meet with Democratic and Republican congressional leaders Tuesday to discuss a federal spending plan to prevent a partial shutdown and keep the government open after current funding expires Dec. 8.
* Bank of England publishes annual stress tests Tuesday alongside its Financial Stability Review looking at the health of U.K. banks.
* In China, the official and Caixin manufacturing PMIs are expected to show mostly steady momentum.
* Japan industrial production is forecast to have rebounded in October, but CPI may show a sharp divergence between headline and core inflation, Bloomberg Intelligence said.
* The second print of third-quarter U.S. GDP on Wednesday may be revised up thanks to consumer spending and inventory accumulation, Bloomberg Intelligence said. The core PCE deflator, the Fed’s preferred gauge of inflation, is due Thursday
* OPEC meets in Vienna on Thursday.

      These are the main moves in markets:
                           Stocks
* The S&P 500 Index fell less than 0.05 percent as of 4:04 p.m. New York time.
* The Stoxx Europe 600 Index decreased 0.5 percent.
* The U.K.’s FTSE 100 Index fell 0.3 percent.
* Germany’s DAX Index declined 0.5 percent.
* The MSCI Emerging Market Index dipped 1 percent.
                           Currencies
* The Bloomberg Dollar Spot Index gained 0.1 percent.
* The euro decreased 0.3 percent to $1.19, the first decline in a week.
* The British pound declined 0.1 percent to $1.332.
* The Japanese yen climbed 0.4 percent to 111.10 per dollar, the strongest in 10 weeks.                            
                            Bonds
* The yield on 10-year Treasuries declined one basis point to 2.33 percent.
* Germany’s 10-year yield fell two basis points to 0.34 percent.
* Britain’s 10-year yield gained less than one basis point to 1.253 percent.                        
                            Commodities
* West Texas Intermediate crude fell 1.8 percent to $57.89 a barrel.
* Gold increased 0.4 percent to $1,293.58 an ounce, the highest in over five weeks.
* Copper declined 0.9 percent to $6,942 a ton.
                             Asia
* Japan’s Nikkei 225 Stock Average sank 0.2 percent.
* The MSCI Asia Pacific Index sank 0.3 percent.
* Japan’s 10-year yield climbed one basis point to 0.043 percent, the highest in more than a week.

Have a wonderful evening everyone.

Be magnificent!

When you have an ideal will you think it helps rid you of “what is,” but it never does.
You may preach non-violence for the rest of your life
and all the time be sowing the seeds of violence.
Krishnamurti

As ever,

Carolann

A signature always reveals a man’s character – and sometimes even his name
                                                                          -Evan Esar, 1899-1995

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

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

Tel: 778.430.5808
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