August 22, 2019 Newsletter

Dear Friends,

Tangents:
1942 – Battle of Stalingrad
On August 22, 1902, President Theodore Roosevelt became the first United States chief executive to ride in an automobile in public.  Go to article »

From Bonjour Paris today:
     This week marks the 75th anniversary of the Liberation of Paris. After four years of Nazi occupation during the Second World War, the city was triumphantly freed by Allied forces, led by Général Leclerc’s 2nd French Armored Division. A victory parade took place on the Champs-Élysées on August 26, 1944, and this week– 75 years later– the city will stage a host of commemorative events. 
At noon on Sunday, August 25th, a ceremony will take place at the Eiffel Tower, honoring the moment when six Paris firefighters climbed the Iron Lady to raise the French flag. Then at 3:30pm, there will be a celebratory parade from Porte d’Orléans to Denfert-Rochereau, following the same route as the original parade. At 6:30 pm, enjoy a concert at the Hotel de Ville, while at the same time, the newly redesigned Musée de la Libération will be inaugurated in the 14th arrondissement. — Mary Winston Nicklin, Editor, editor@bonjourparis.com. 

• The longest direct flight ever is here: NYC to Sydney in 20 hours. 

PHOTOS OF THE DAY

A vibrant display of purple heather in the New Forest was captured by Matt Pinner at dawn today.
CREDIT: MATTPINNER/BNPS

A late summer sunrise creates a pink glow over the famous arch of Durdle Door in Dorset.
CREDIT: RACHEL READ/ SWNS

The sunsets behind wild sunflowers as seen from near Taos in northern New Mexico.
CREDIT: ROBIN LOZNAK/ ZUMA WIRE/ALAMY LIVE NEWS
Market Closes for August 22^nd , 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Bond yields in many countries world-wide have fallen to record lows this summer. Yet few governments have responded as many bankers and investors say they should, by locking in ultralow rates for decades
Canada
By Kristine Owram
(Bloomberg) — Canada’s equity benchmark retreated as pot stocks continued a several monthlong slide and lower crude prices weighed on energy shares.
The S&P/TSX Composite Index lost 0.3% to 16,253.46. Eight of 11 sectors fell, with the health-care index leading the decline as pot stocks fell for a third day in four. Canopy Growth Corp. lost 5.2% and Hexo Corp. slid 3.5%. Financials edged higher after Canadian Imperial Bank of Commerce beat profit estimates amid strength in its U.S. operations. The bank’s stock rose 2.1%, the most since December 2017.
In other moves:
Stocks
* Saputo Inc. slid 4.8%, the most since June. The dairy company plans to offer 10.1 million shares at C$39.60 a share, 5% below Wednesday’s closing price
* Zenabis Global Inc. tumbled 14%, the most since April. The pot company is taking on C$25 million in additional senior secured debt at an interest rate of 14% per year
* Canadian Tire Corp. closed with a 0.6% gain after dipping 0.6%. Steve Eisman, the money manager who foresaw the collapse of the U.S. housing market, said he’s shorting the retailer
Commodities
* Western Canada Select crude oil traded at a $13.15 discount to WTI
* Gold fell 0.5% to $1,497.30 an ounce
FX/Bonds
* The Canadian dollar weakened 0.1% to C$1.3300 per U.S. dollar
* The Canada 10-year government bond yield rose 6 basis points to 1.28%
US
By Rita Nazareth and Vildana Hajric
(Bloomberg) — U.S. stocks were mixed as a slide in technology companies offset a rally in bank shares. Treasuries dropped as Federal Reserve officials cast doubt on further
interest-rate cuts.
The S&P 500 Index closed little changed, while the Dow Jones Industrial Average outperformed as Boeing Co. surged. The Nasdaq-100 Index fell. Ten-year yields climbed after Philadelphia Fed President Patrick Harker told CNBC that he’s “on hold” right now for further monetary easing. His comments were in line with those of Kansas City counterpart Esther George, who said the U.S. doesn’t need lower rates. Fed Bank of Dallas President Robert Kaplan said that he wanted to be careful about cutting interest rates again “unless we have to.”
Markets have been whipsawed amid concern over economic weakness, the path of interest rates and U.S.-China trade tension. Fed Chairman Jerome Powell could provide more guidance on policy when he speaks Friday at the annual Jackson Hole symposium. Investors have priced in a quarter percentage-point rate cut next month, but dissenting Fed voices may limit the prospects for the larger move that some have advocated, including President Donald Trump.
“The big question mark is just going to be Jackson Hole — what’s Powell going to say?” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “You’re seeing the market going higher and lower this week heading into tomorrow, where we could get some market-moving commentary out of Powell’s speech.”
Elsewhere, most euro-area government bonds fell as the European Central Bank expressed concern that investors were losing faith in its ability to revive inflation and after a
measure of German manufacturers reinforced recession concern. The British pound jumped as investors seized on hints from European leaders that a Brexit deal could still be reached.
Here are some notable events coming up:
* Kansas City Federal Reserve Bank hosts its annual central banking symposium in Jackson Hole, Wyoming. It started Thursday.
Here are some of the main moves in markets:
Stocks
* The S&P 500 was little changed at 2,922.95 at 4 p.m. in New York.
* The Stoxx Europe 600 Index declined 0.4%.
* The MSCI Asia Pacific Index fell 0.4%.
* The MSCI Emerging Market Index dipped 0.8%.
Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro was little changed at $1.1081.
* The British pound climbed 1% to $1.2256.
* The Japanese yen strengthened 0.2% to 106.40 per dollar.
Bonds
* The yield on 10-year Treasuries increased two basis points to 1.61%.
* Germany’s 10-year yield gained three basis points to -0.64%.
* Britain’s 10-year yield rose four basis points to 0.517%.
Commodities
* The Bloomberg Commodity Index dropped 0.5%.
* West Texas Intermediate crude fell 0.6% to $55.35 a barrel.
* Gold dipped 0.5% to $1,508.50 an ounce.
–With assistance from David Wilson, Paul Allen, Adam Haigh, Yakob Peterseil, Todd White and Sarah Ponczek.

Have a great night.

Be magnificent!
As ever,

Carolann

Justice is the right of the weakest.
     -Joseph Joubert, 1754-1824            

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
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www.carolannsteinhoff.com