June 5, 2019 Newsletter

Dear Friends,

Tangents:

MICHELIN STARRED*:
At a ceremony in Huntington Beach, Calif., on Monday, June 3, the 2019 Michelin Guide California announced its inaugural stars, including updated awards for San Francisco. There are now seven three-star restaurants in California, all in San Francisco or Napa Valley. That number is fewer than a year ago, but the overall number of restaurants with stars has increased to 90. The new guide features restaurants in greater Los Angeles, Monterey, Orange County, Sacramento, San Diego, and Santa Barbara.
The guide named 14 two-star restaurants, split between San Francisco and Los Angeles. The newly two-starred include N/naka, a kaiseki restaurant in Culver City; Providence, a fish temple in Los Angeles; and Campton Place, the rare Indian restaurant to claim two stars. Saison, a San Francisco restaurant with a $298 tasting menu, fell from three stars to two.

A dish at Single Thread, awarded three stars by Michelin on Monday.
Photographer: Eric Wolfinger
Even so, San Francisco still has two more three-star dining rooms than New York does. The new guide demonstrates the increasing importance of California in the culinary world, as well as that of secondary cities away from traditional epicenters such as New York.  –from Bloomberg Pursuits

June 5, 1723~ Adam Smith, Economist, born.
June 5, 1883 ~ John Maynard Keynes, Economist, born.
June 5, 1968~ Robert F. Kennedy assassinated.
PHOTOS OF THE DAY

Apple’s Worldwide Product Manager, Colleen Novielli shows off the new Pro Display XDR during Apple’s Worldwide Developer Conference (WWDC) in San Jose, California
— FROM TELEGRAPH, June 5, 2019

A group of Tunisian observer using binoculars and telescope gather for observing the new crescent moon which marks the end of the Muslim fasting month of Ramadan and heralds the coming of Eid al-Fitr holiday, in Aryanah, Tunisia
CREDIT: YASSINE GAIDI/ANADOLU AGENCY/GETTY IMAGES

The iconic ‘Emirates’ Spinnaker Tower, in Portsmouth, adorned with commemorative lighting as a mark of respect for the D-Day 75 anniversary celebrations.
CREDIT: SHAUN ROSTER/ SWNS

Mouse doing the splits on some wheat last week.
CREDIT: GEORGE LOCKWOOD/ BAV MEDIA
Market Closes for June 5th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
The S&P 500 has finished higher 54.9% of the time in June, with an average gain of 3.9% for the up months and an average drop of 4.4% for the down months, according to an S&P Dow Jones Indices analysis of data going back to the index’s inception in 1928. The month has averaged an overall gain of 0.7% in that span. 
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks rose for a second day as gains in most sectors offset a steep decline in crude prices, which entered a bear market.
     The S&P/TSX Composite Index added 0.3% to 16,212.66. Technology shares led the gains, rising 2.7%. Shopify Inc. climbing 6.6% to a record high, continuing a rally that’s made it the best-performing stock on the benchmark this year. Industrials gained 1.3% as Bombardier Inc. jumped 9.7%, the most since February. The company is in talks to sell its CRJ regional jet unit to Mitsubishi Heavy Industries Ltd.
In other moves:
Stocks
* Cronos Group Inc. jumped 12%, the most since February. The pot stock received a double upgrade at Bank of America Merrill Lynch on the potential for a near-term launch in the U.S. CBD market.
* Sherritt International Corp. fell 7.3%. The Cuba-focused company’s debt costs are rising as its cash flow shrinks.
* Cineplex Inc. gained 3.6% after the stock was upgraded to outperform at National Bank Financial.
Commodities
* Western Canada Select crude oil traded at a $13.50 discount to WTI.
* Gold rose 0.4% to $1,328.30 an ounce, its sixth straight session of gains.
FX/Bonds
* The Canadian dollar weakened 0.2% to C$1.3421 per U.S. dollar.
* The Canada 10-year government bond yield fell 3 basis points to 1.44%.
US
By Rita Nazareth and Vildana Hajric
     (Bloomberg) — Stocks climbed on optimism Mexican tariffs will be avoided, while Treasury yields fell as data bolstered rate-cut wagers. Oil entered a bear market after U.S. supplies jumped the most in almost 30 years.
     The S&P 500 Index rose a second day as President Donald Trump said Mexico wants to make a deal and White House trade adviser Peter Navarro told CNN the nation still has time to prevent the tariffs from taking effect. Treasuries rose as weak private-jobs data outweighed solid service-industries figures.
     Trump’s tariff threat has led several analysts to forecast increased risk of a recession in the world’s largest economy, putting pressure on the Federal Reserve to cut rates. The steepening U.S. yield curve shows bond traders betting the case for Fed easing is only strengthening, even as top policy makers signal they’re not yet ready to act.
     “We’re continuing to see that wave of momentum,” said Ryan Nauman, market strategist at Informa Financial Intelligence. Traders are “hoping that the Fed will cut rates and hoping that a resolution to the trade concerns will come to an end sometime soon as the economy slows.”
Here are some notable events coming up:
* China President Xi Jinping begins a two-day visit to Russia on Wednesday.
* Theresa May steps down on Friday as leader of the Conservative Party.
* Friday’s U.S. jobs report is projected to show payrolls rose by 180,000 in May, unemployment held at 3.6%, a 49-year low, and average hourly earnings growth sustained a 3.2% pace.
These are some of the main moves in markets:
Stocks
* The S&P 500 climbed 0.8% to 2,826.15 as of 4 p.m. New York time.
* The Stoxx Europe 600 Index gained 0.4%.
* The MSCI Asia Pacific Index jumped 0.8%.
Currencies
* The Bloomberg Dollar Spot Index climbed 0.4%.
* The euro fell 0.2% to $1.1224.
* The Japanese yen dipped 0.3% to 108.43 per dollar.
Bonds
* The yield on 10-year Treasuries declined one basis point to 2.12%.
* Germany’s 10-year yield fell two basis points to -0.23%.
* Britain’s 10-year yield fell four basis points to 0.863%.
Commodities
* The Bloomberg Commodity Index declined 1.6%.
* West Texas Intermediate crude fell 3.4% to $51.68 a barrel.
–With assistance from Cormac Mullen, Adam Haigh, Robert Brand, Todd White, Benjamin Purvis, Sophie Caronello and Sarah Ponczek.

Have  a great night.

Be magnificent!
As ever,

Carolann

Nothing can stop the man with the right mental attitude from achieving his goal;

nothing on earth can help the man with the wrong mental attitude.

                                                                     -Thomas Jefferson, 1743-1826

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