December 12, 2018 Newsletter

Dear Friends,

Tangents:
Frank Sinatra, b. 1915
Gustave Flaubert, b. 1821

Dec. 12^th, 1901 – Marconi Claims to Have Received a Transatlantic Radio Signal in Morse Code. Go to article »

Our ignorance of history makes us libel our own times.  People have always been like this. -Gustave Flaubert.

A heated session of the British Parliament turned to chaos Monday night when a member of the House of Commons grabbed a five-foot-long, silver-gilt mace and tried to leave the chamber.

Lloyd Russell-Moyle, center foreground in light blue suit and glasses, was intercepted while trying to remove a ceremonial mace.  Reuters 

The mace represents the crown’s authority, and Parliament can’t sit or pass laws without it.

Traditionally, the person in charge of guarding the mace — and restoring order after rare mace-snatchings — is the sergeant-at-arms.

The sergeant’s role, which dates to 1415, is to escort the speaker of the house before each sitting, carrying the mace during the procession, and to maintain order during the sitting.

You can’t miss the sergeant — the traditional uniform includes a frilly lace collar and cuffs, silk stockings and black patent-leather shoes. A sword can also come in handy.

After Monday’s breach of protocol, the troublemaking lawmaker said: “They stopped me before I got out of the chamber and I wasn’t going to struggle with someone wearing a huge sword on their hip.” -from The New York Times, December 12, 2018

PHOTOS OF THE DAY

The sun sets behind the Statue of Liberty from Battery Park. Credit: Gary Hershorn/Getty Images

Dog walkers at dawn under a fireglow sky on the beach at Tynemouth, on the coast of northeast England. Credit: Owen Humphreys/PA Wire

Sun rays fall through the clouds over the banking district as a runner passes by in Frankfurt, Germany. Credit: AP Photo/Michael Probst

Internationally acclaimed artist Olafur Eliasson, working in collaboration with leading geologist Minik Rosing, will display blocks of melting ice across two public sites in the centre of London to create a major artwork, Ice Watch. Supported by Bloomberg Philanthropies, Ice Watch will serve as a visceral reminder of the impact of climate change. Credit: Alex Lentati/Evening Standard/Eyevine
Market Closes for December 12^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1914, the New York Stock Exchange reopened after closing in July amid jitters over the outbreak of World War I. By the end of 1915, the stock market had risen nearly 82% as Western Europe supplied its war effort with American-made goods and weapons.
Canada
By Aoyon Ashraf
     (Bloomberg) — Canadian stocks closed the session higher, with the broader U.S. market, after the S&P/Toronto Stock Exchange Composite Index reached a two-year low yesterday. The best performing sector was technology, led by Shopify Inc.’s three-day advance.
     The S&P/Toronto Stock Exchange Composite Index rose 0.8 percent. Real estate was the worst performing sector on the TSX, led by Canadian Apartment Properties REIT, which fell 4.3 percent after announcing an offering of C$250 million in a bought deal.
     Meanwhile, Canadian exporters are worrying they could be caught in the cross hairs amid tensions between Canada and China after Canada’s arrest of Huawei Technologies Co. CFO and as China’s spy agency detained former Canadian diplomat Michael Kovrig. China is one of Canada’s biggest buyers of agricultural products, from oilseeds to softwood lumber, and is a growing market for the nation’s banks, insurers and luxury-goods makers.
Stocks
* Maxar Technologies Ltd. rose 7.6 percent after falling for 3 days
* Kelt Exploration Ltd. climbed 7.3 percent, to post a 2-day gain of 9.7 percent
* Pretium Resources Inc., Endeavour Mining Corp and Iamgold Corp. were among some the best performing precious metals miners as gold, silver rose
* Bombardier Inc. gained 2.6 percent amid plans to debut a $73 million luxury jet
* Pot stock Aphria Inc. fell 4.5 percent after rising for the last 2 sessions
Commodities
* Western Canada Select crude oil traded at a $12.75 discount to WTI
* Gold gained 0.2 percent to $1,244.40 an ounce
FX/Bonds
* The Canadian dollar rose 0.2 percent to C$1.3368 per U.S. dollar
* The Canada 10-year government bond yield gained 4.2 basis points to 2.12 percent
US
By Sarah Ponczek and Luke Kawa
     (Bloomberg) — U.S. stocks advanced as the outlook for trade took a positive turn and the British prime minister defeated a challenge to her leadership.
     The S&P 500 rose 0.5 percent after an afternoon slump that pared its gain by more than half. It marked the fourth straight day that investors sold an early rally, a trend that’s a stark reversal from months where traders bought any meaningful dip.
     Oil’s retreat coincided with the move, amid reports that deep discord exists among OPEC members ahead of planned output cuts.
     “We’re in a stock market correction. All rallies are suspect,” said Michael Antonelli, the managing director at Robert W. Baird & Co. The early gains came as signs emerged that trade tensions would ease, first after the arrested Huawei executive was granted bail and then when President Donald Trump suggested he could use his influence to calm that situation as part of a deal with China. For its part, China hinted that it would ease access to local markets. The Asian country is also making its first sizable purchase of U.S. soybeans since the countries imposed tariffs.
     The British pound surged the most in a month on speculation Theresa May will survive the vote of confidence and mostly held onto the gains after her victory was confirmed. Treasuries and the dollar both slipped as data showed a key measure of U.S. inflation picked up as expected in November.
     While developments on trade tends and Brexit have been at the forefront for investors, they’re also keeping watch on the risk of a shutdown of parts of the U.S. government. Trump is at odds with Democratic leaders in Congress over funding for a border wall with Mexico.
     Elsewhere, India’s bonds rallied after an ally of Prime Minister Narendra Modi was named as the new central bank chief.
Here are some key events on the calendar this week:
* The European Central Bank is set to end asset purchases at its final policy meeting of 2018 on Thursday.
* China industrial production, retail sales data for November is due Friday.
And these are the main moves in markets:
Stocks
* The S&P 500 Index advanced 0.5 percent at the close of trading in New York.
* The Stoxx Europe 600 Index jumped 1.7 percent to the highest in a week.
* The Nikkei-225 Stock Average added 2.2 percent.
* The MSCI Emerging Market Index advanced 1.6 percent.
Currencies
* The Bloomberg Dollar Spot Index decreased 0.4 percent.
* The euro increased 0.5 percent to $1.1373.
* The British pound jumped 1 percent to $1.2615.
* The Japanese yen gained 0.1 percent to 113.24 per dollar.
Bonds
* The yield on 10-year Treasuries climbed three basis points to 2.91 percent.
* Germany’s 10-year yield climbed five basis points to 0.28 percent.
* Britain’s 10-year yield jumped nine basis points to 1.28 percent.
Commodities
* West Texas Intermediate crude fell 1 percent to $51.14 a barrel.
* Gold advanced 0.2 percent to $1,245.86 an ounce.
–With assistance from Andreea Papuc, Adam Haigh, Christopher Anstey, Samuel Potter and Robert Brand.

Have a great evening. 

Be magnificent!

As ever,

Carolann

It is better to know some of the questions than all of the answers.
                                             -James Grover Thurber, 1894-1961

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
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www.carolannsteinhoff.com