Aug 6, 2020 Newsletter

Dear Friends,

Tangents: Hiroshima Day.

On Aug. 6, 1945, the United States dropped an atomic bomb on Hiroshima, Japan, that instantly killed an estimated 66,000 people in the first use of a nuclear weapon in warfare. Go to article »

If I had only known, I would have been a  locksmith. -Albert Einstein.

Setsuko Thurlow was 13 years old and in Hiroshima when the U.S. dropped the first of two atomic bombs on Japan. Ever since, she has been fighting for the abolition of nuclear weapons, sharing a Nobel Peace Prize for the work in 2017.  Our Tokyo bureau chief’s profile of Ms. Thurlow, now 88, comes on the 75th anniversary of the Hiroshima bombing and serves as a reminder of the urgency of hearing the stories of a dwindling number of survivors.  A new book documents the human impact of the bombings, which ended World War II,
with photographs that the U.S. once banned both at home and in Japan. -The NY Times.

The front page of The Times from Aug. 7, 1945. –The NY Times.

Alfred Lord Tennyson, poet, b. 1809.
Lucille Ball, actress, b. 1911.
Andy Warhol, artist, b. 1928

Giuseppe Paternò graduated with honors last week from the University of Palermo, with a degree in history and philosophy. Mr. Paternò is 96.
That he reached his lifelong goal — despite an impoverished childhood, World War II and family demands — drew attention across Italy, resonating as millions of schoolchildren faced extraordinary uncertainty amid the pandemic.  “Don’t get lost because you find obstacles — because there will always be obstacles,” Mr. Paternò said after donning the traditional red-ribboned laurel wreath.
“You have to be strong.” –The NY Times.
PHOTOS OF THE DAY
A full moon is seen just right behind the Christ the Redeemer monument in Rio de Janiero, Brazil
CREDIT: ANTONIO LACERDA/EPA-EFE/SHUTTERSTOCK

Family of marmots who live in the Austrian countryside
CREDIT: @MURMELTIERFOTOS.DE/CATERS NEWS

Locomotive SR 926 Repton travels through Goathland on the North Yorkshire Moors Railway on route from Grosmont to Pickering in North Yorkshire this morning.
CREDIT: ANDREW MCCAREN/LNP

Iceland horse raise dust as they run in their paddock at a stud farm as the sun rises early Wednesday, Aug 5, 2020, in Wehrheim near Frankfurt, Germany.
CREDIT: AP PHOTO/MICHAEL PROBST
Market Closes for August 6^th , 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1957, with Japan’s postwar economic boom underway, the Nikkei 225 stock index surpassed the level of the Dow Jones Industrial Average (which closed at 494.13) for the first time.
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks rose Thursday after a slew of corporate earnings and U.S. equities climbed on optimism that officials will come to terms on fresh economic stimulus.
The S&P/TSX Composite Index rose 0.5%, with seven of eleven sectors advancing. Industrials led the way, with energy also climbing.
The Trump Administration will reimpose tariffs on some Canadian aluminum imports, hitting a crucial trade partner just weeks after the president’s landmark North American trade agreement went into effect, according to several people familiar with the matter.
Canadian Natural Resources, the country’s largest oil and gas producer, is prioritizing maintaining a streak of 20 years of dividend increases but won’t rule out making acquisitions as low crude prices create motivated sellers.
Meanwhile, supply chain software provider Kinaxis is hiring proactively as its business booms amid the Covid-19 pandemic that has led to countries globally closing their borders.
Commodities
* Western Canada Select crude oil traded at a $12.10 discount to West Texas Intermediate
* Spot gold rose 1.4% to ~$2,066 an ounce
FX/Bonds
* The Canadian dollar weakened 0.3% to C$1.3305 per U.S. dollar
* The 10-year government bond yield fell 3.9 basis points to 0.464%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite rose for the third day, climbing 0.5 percent, or 77.49 to 16,579.10 in Toronto. The index advanced to the highest closing level since March 4.
Canadian National Railway Co. contributed the most to the index gain, increasing 1.3 percent. Pretium Resources Inc. had the largest increase, rising 25.7 percent.
Today, 125 of 221 shares rose, while 93 fell; 7 of 11 sectors were higher, led by industrials stocks.
Insights
* So far this week, the index rose 2.5 percent
* The index advanced 2.7 percent in the past 52 weeks. The MSCI AC Americas Index gained 16 percent in the same period
* The S&P/TSX Composite is 7.7 percent below its 52-week high on Feb. 20, 2020 and 48.4 percent above its low on March 23, 2020
* The S&P/TSX Composite is up 1.7 percent in the past 5 days and rose 5.8 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 23.1 on a trailing basis and 25.3 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.1 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.52t
* 30-day price volatility fell to 12.48 percent compared with 13.86 percent in the previous session and the average of 16.77 percent over the past month

================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Industrials | 34.8355| 1.9| 21/7
Financials | 30.6162| 0.7| 16/9
Energy | 25.2641| 1.2| 20/4
Communication Services | 7.9280| 0.9| 5/2
Consumer Staples | 5.6791| 0.8| 7/4
Information Technology | 5.6498| 0.3| 8/2
Real Estate | 2.1936| 0.4| 20/6
Utilities | -2.4491| -0.3| 5/11
Health Care | -4.3309| -2.5| 1/8
Consumer Discretionary | -6.6182| -1.2| 9/4
Materials | -21.2958| -0.8| 13/36
US
By Claire Ballentine and Vildana Hajric
(Bloomberg) — U.S. stocks climbed on optimism that officials will come to terms on fresh economic stimulus, putting a gauge of global stocks on the verge of erasing this year’s losses. Gold extended gains amid speculation interest rates will stay low for longer.
The S&P 500 rose for a fifth straight day, with Apple Inc. leading the charge as it reached a record and helping lift the MSCI All-Country World Index to little changed for the year. Stocks got a lift in the afternoon as lawmakers pledged to keep working toward a coronavirus relief package and President Donald Trump said he could act unilaterally on some measures. The dollar slipped.
Equity gains have mounted in the past week amid better-than-forecast earnings and optimism on a coronavirus vaccine, but any hint that negotiators won’t be able to resolve differences over a new U.S. relief package has sparked jitters. The White House and congressional Democrats are up against a self- imposed Friday deadline to strike a deal as data Thursday showed almost 1.2 million unemployment claims.
“Anything that we can do to continue to provide a bridge to people as we get through this crisis is going to be really important,” said Chuck Cumello, president and chief executive officer of Essex Financial Services. “The U.S. consumer is driving two-thirds of the economy.”
Elsewhere, mining and energy producers were among the laggards as European stocks slumped. Turkey’s lira touched a record low against the dollar as interventions by state banks failed to reassure markets. Gold climbed above $2,050 an ounce in a fifth straight day of gains.
Here are some key events coming up:
* Germany’s June industrial production figures are scheduled for Friday.
* July U.S. jobs reports expected Friday.

These are some of the main moves in markets:
Stocks
* The S&P 500 Index rose 0.6% at 4 p.m. New York time.
* The Stoxx Europe 600 Index declined 0.7%.
* The MSCI Asia Pacific Index rose 0.2%.
Currencies
* The Bloomberg Dollar Spot Index slipped 0.1%.
* The Japanese yen was little changed at 105.56 per dollar.
* The Turkish lira weakened 2.5% to 7.2253 per dollar and fell as low as 7.31.
Bonds
* The yield on 10-year Treasuries decreased one basis point to 0.54%.
* Britain’s 10-year yield dipped two basis points to 0.11%.
* Germany’s 10-year yield declined three basis points to -0.53%.
Commodities
* West Texas Intermediate crude fell 0.4% to $42.03 a barrel.
* Gold strengthened 1.2% to $2,061.90 an ounce.
* Copper fell 0.1% to $2.9135 per pound.
–With assistance from Gregor Stuart Hunter, Adam Haigh and Todd White

Have a great night.

Be magnificent!
As ever,

Carolann

A doubtful friend is worse than a certain enemy.  Let a man be one thing or the other,
and we then know how to meet him.
                                                                              -Aesop, c. 620-564 BCE

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