August 19, 2019 Newsletter

Dear Friends,

Tangents:
Coco Chanel, b. 1883
Bill Clinton, b.1946
If you happen to be in Cape Town, South Africa you can check out the pop-up restaurant that focuses on insect cuisine. Yeah, you read that right. -CNN.
Staring at seagulls can stop them from stealing food. 
Bees are dropping dead, sending a message to humans

On Aug. 19, 1934, a plebiscite in Germany approved the vesting of sole executive power in Adolf Hitler as Fuhrer.  Go to article>>

Porsche’s Nazi Car Stalls in Auction Blunder
During Saturday night’s highly charged standing-room only auction in downtown Monterey, California, auctioneers at RM Sotheby’s premier sale dimmed the lights and showed a promotional video for the much-anticipated sale of the 1939 Type 64. The controversial silver coupe had been expected to sell for some $20 million, but the video rocked the audience. In the end, the car didn’t sell at all. -from Bloomberg.

PHOTOS OF THE DAY

A girl holds a sign that reads ‘pull the emergency brake’ as she attends a ceremony in the area which once was the Okjokull glacier, in Iceland. With poetry, moments of silence and political speeches about the urgent need to fight climate change, Icelandic officials, activists and others bade goodbye to the first Icelandic glacier to disappear.
CREDIT:FELIPE DANA/AP

A 3D light animation is projected by the Limelight Projection Mapping International Light Art Group onto the façade of the University of Debrecen during the Night of Lights in Debrecen, Hungary
CREDIT: THE TELEGRAPH AUGUST 19, 2019

Revellers leave after the Havana Carnival celebrations were suspended due to bad weather conditions.
CREDIT:YAMIL LAGE/AFP/GETTY IMAGES
Market Closes for August 19th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 2004, Google’s stock began trading in one of the most anticipated public offerings in years. Initially priced at $85, the stock has returned more than 4000% since then.
Canada
By Kristine Owram
(Bloomberg) — Canadian stocks rose the most since January after the U.S. struck a more conciliatory tone on Chinese trade relations and a drone attack in Saudi Arabia sent oil prices
higher.
The S&P/TSX Composite Index added almost 1% to reach 16,304.05 amid a global rally in equities. The U.S. will extend exemptions that protect some domestic customers from a ban on doing business with China’s Huawei Technologies Co., a development that was seen as positive for trade negotiations.
Energy stocks led the gain in Toronto, rising 1.6% after a drone strike by Yemeni rebels on a Saudi Arabian oil field raised fears about ongoing unrest in the region. Health-care stocks brought up the rear as cannabis stocks retreated.
In other moves:
Stocks
* Precision Drilling Corp. jumped 18%, the most since 1991. The company cut its 2019 capital expenditure guidance and announced a plan to buy back up to 10% of its stock
* Hudson’s Bay Co. gained 7.6% to the highest in two months. Private equity firm Catalyst Capital Group Inc. bought a 10% stake in the company as part of its efforts to block a proposed takeover by the retailer’s chairman
* AGF Management Ltd. rose by a record 19%, after confirming that Smith & Williamson is in exclusive takeover talks with Tilney Group Ltd. AGF owns a minority stake in Smith & Williamson
Commodities
* Western Canada Select crude oil traded at an $11.25 discount to WTI
* Gold fell 0.8% to $1,500.40 an ounce
FX/Bonds
* The Canadian dollar weakened 0.5% to C$1.3334 per U.S. dollar
* The Canada 10-year government bond yield rose 2 basis points to 1.18%
US
By Rita Nazareth and Sarah Ponczek
(Bloomberg) — Stocks climbed after the Trump administration signaled progress on trade negotiations and speculation grew that major central banks will shore up their economies. The dollar rose to this year’s high.
The S&P 500 Index gained for a third day, led by chipmakers, as U.S. Commerce Secretary Wilbur Ross said the nation will delay restrictions imposed on some business operations of China’s Huawei Technologies Co. The Treasury market was unfazed by President Donald Trump’s call for the central bank to cut rates by “at least 100 basis points.” Bunds tumbled as Germany was said to be preparing fiscal stimulus measures. Oil rallied as a drone attack in Saudi Arabia highlighted simmering Middle East tension. Gold fell. The week started on a positive note as the news on Huawei was seen as encouraging for the long-awaited trade pact between the world’s two largest economies. Still, the company said the temporary relief doesn’t change the fact that it’s been treated “unjustly.” The announcement of a reprieve followed a tweet from Trump over the weekend indicating the U.S. was “doing very well with China, and talking,” but suggesting he wasn’t ready to sign a deal.
“It’s kind of like a drunken walk,” said Paul Nolte, a money manager at Kingsview Asset Management in Chicago. “There’s no rhyme or reason from day to day as to what’s happening with trade, and trade is really what’s driving the markets. And there’s no way to handicap it. There is no glide path, there is no, ‘Here’s what happening.’ It’s a random walk.” Trump’s top economic adviser, Larry Kudlow, will speak with business leaders this week amid concerns about the rising odds for a recession, the trade war and whipsawing markets. Federal Reserve Bank of Boston President Eric Rosengren pushed back against further rate cuts, arguing he’s not convinced that slowing trade and global growth will significantly dent the economy. Investors awaited Fed Chairman Jerome Powell’s remarks about the challenges for monetary policy at the Jackson Hole symposium Friday.
In corporate news, Walt Disney Co. erased gains and was little changed at the close after a MarketWatch report cited a whistleblower who said the company had materially overstated revenue for years. Estee Lauder Cos. rallied after the cosmetics company forecast earnings that topped analysts’ estimates. PG&E Corp. tumbled after a judge said that a jury could now hear $18 billion in legal claims from a deadly 2017 wildfire. Blue-chip U.S. companies are likely to see a surge in demand for their bonds as the rising amount of negative-yielding debt globally forces more overseas investors to seek higher returns in dollar assets, according to Bank of America Corp. “There is a wall of new money being forced into the global corporate bond market,” strategists led by Hans Mikkelsen wrote in an Aug. 16 note.
Here are some notable events coming up:
* Minutes of the Fed’s July meeting will provide details on the discussions leading to the first interest-rate cut in a decade when they are released on Wednesday.
* Thursday brings the Bank Indonesia rate decision and press conference with Governor Perry Warjiyo.
* Flash PMIs are due for the euro area on Thursday.
* Kansas City Federal Reserve Bank hosts its annual central banking symposium in Jackson Hole, Wyoming, starting Thursday. Fed Chairman Jerome Powell will give remarks on Friday.
Here are the main moves in markets:
Stocks
* The S&P 500 rose 1.2% to 2,923.65 as of 4 p.m. New York time.
* The Stoxx Europe 600 Index increased 1.1%.
* The MSCI Asia Pacific Index climbed 0.9%.
Currencies
* The Bloomberg Dollar Spot Index gained 0.3%.
* The euro decreased 0.1% to $1.1078.
* The Japanese yen dipped 0.3% to 106.65 per dollar.
Bonds
* The yield on 10-year Treasuries rose five basis points to 1.60%.
* Germany’s 10-year yield jumped four basis points to -0.65%.
* Britain’s 10-year yield climbed less than one basis point to 0.47%.
Commodities
* West Texas Intermediate crude increased 2.4% to $56.21 abarrel.
* Gold for December delivery fell 0.8% to $1,511.60 an ounce; the spot price dropped below $1,500.
–With assistance from Adam Haigh, Todd White and Laura Curtis.
Have a great night.

Be magnificent!
As ever,

Carolann

A day without laughter is a day wasted.
             -Charlie Chaplin, 1889-1977

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