August 23, 2018 Newsletter

Dear Friends,

Tangents:
August 23, 1541 – Jacques Cartier Builds Fort Charlesbourg-Royal for Roberval.

1977: First human-powered flight

Back Story, NY Times:
Forty-five years ago today, an escaped convict burst into a busy bank in Stockholm, fired at the ceiling and shouted in English, “The party has just begun!”

The man, Jan-Erik Olsson, took four employees hostage, and a tense, six-day standoff followed.

Police officers wearing gas masks escorted Jan-Erik Olsson out of a bank after a hostage drama that gave rise to the term “Stockholm syndrome.”
Egan-Polisen, via Pressens Bild/Agence France-Presse — Getty Images

But the police were stumped by the terrorized hostages’ apparent sympathy for their captor, behavior that is now widely known as Stockholm syndrome.

In a phone call set up with Sweden’s prime minister, one hostage said she felt safe with Mr. Olsson but worried that “the police will attack and cause us to die.”

The authorities agreed to some of Mr. Olsson’s demands: a getaway vehicle, hundreds of thousands of dollars and the release of another convict, who joined Mr. Olsson at the bank.

After 130 hours, the police pumped tear gas into the vault and the captors surrendered. The hostages pleaded with the authorities: “Don’t hurt them — they didn’t harm us.”

Evaluating the hostages after their release, psychologists compared the experience to wartime shell shock, and they soon coined the term Stockholm syndrome. It wasn’t until the next year, with the abduction of the American heiress Patty Hearst, that the term went into wide use.

Joumana Khatib wrote today’s Back Story, August 23, 2018. 

PHOTOS OF THE DAY

Workers collect salt crystals at Aigues-Mortes France. After harvesting the ‘fleur de sel’, a hand-harvested the salt, they must wait until September to harvest the salt which is used as table salt. Fleur de sel is one of the most expensive salts in the world. Credit: Pascal Guyot/AFP

Cyclists look at paintings on walls of a limestone quarry during the “Street art on the Roc” festival in Villars-Fontaine, central France. Since 2016 the village in CA’te-d’OR opens up the walls of an old quarry to street-artists. Credit: Philippe Desmazes/AFP

Finishing touches are applied to pictures being hung in the Morning Chapel at Salisbury Cathedral in preparation for an exhibition by Professor Stephen Farthing. The works, The Miracle Painting 2011-2018, took eight years to complete. Credit: ben Birchall/PA
Market Closes for August 23^rd, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Tatiana Darie
     (Bloomberg) — Canadian stocks followed their global peers lower amid lingering trade concerns as the latest round of China tariffs became effective on Thursday. Commodities sank, with gold seeing its biggest drop in a week.
     The S&P/TSX Composite Index slipped 0.1%, with materials, consumer staples and discretionary stocks leading losses. Optimism about cannabis stocks has boosted health-care shares higher again.
     In other moves:
                            Stocks
* Iamgold Corp., Alamos Gold Inc. led losses among the gold miners, down 6.6 percent and 5 percent, as the metal’s price continues to fall on a stronger dollar and signs that indicate Fed may keep raising interest rates.
* Baytex Energy Corp. rose 7.9 percent after its merger close with Raging River Exploration.
* Canadian Imperial Bank of Commerce gained 0.6 percent after CEO Victor Dodig on an earnings call said he sees a “supportive” macro environment in Canada and anticipates further interest rate increases.                         
                            Commodities
* Western Canada Select crude oil traded at a $27 discount to WTI
* Gold fell 0.8 percent to $1,194 an ounce
                             FX/Bonds
* The Canadian dollar fell 0.6 percent to C$1.3083 per U.S. dollar
* The Canada 10-year government bond yield little changed at 2.26 percent
US
By Randall Jensen and Sarah Ponczek
     (Bloomberg) — U.S. stocks dropped and the dollar rallied the most in two weeks as the trade dispute with China showed no signs of easing. Commodities sank.
     The S&P 500 Index edged lower for a second day as trade- sensitive stocks paced declines, while a rally in tech shares helped mute the benchmark’s drop. President Donald Trump signaled Thursday he’d press on with the trade war. Low-level delegates from China and the U.S. are wrapping up two days of trade talks as the nations hit each other with new levies on $16 billion of goods.
     The dollar rose for the first time in six days, pressuring commodity prices on products from copper to soybeans. The two- year Treasury yield gained ahead of scheduled comments by Federal Reserve chairman Jerome Powell Friday. The Mexican peso dropped against the greenback as investors waited to see if a deal would be reached on Nafta. A tweet by President Donald Trump fueled speculation of possible sanctions against South Africa, pushing the rand lower.
     Trade remains in the spotlight after the U.S. and China levied more duties, while Mexico appears close to an agreement on Nafta. And in the background., investors are left to wonder how the political drama in Washington may impact negotiations. All of this could get pushed aside at the end of the week as traders look for hints on the future of monetary policy during a gathering of central bankers in Jackson Hole, Wyoming.
     “One of the bigger risks that we keep watching is the trade talks with China. The fact that there’s still discussions going on is good and the fact that both sides are still willing to negotiate is good, but I don’t think that there’s going to be anything monumental that’s going to happen before the midterm elections,” Liz Young, senior investment strategist at BNY Mellon Investment Management, said in an interview at Bloomberg’s New York headquarters. “China is probably going to wait and kick the can down the road until we get there and then see what happens.”
     Elsewhere, the British pound fell the most in two weeks after U.K. officials warned that Brexit could raise prices. The Russian ruble swung from a loss to a gain after the central bank said it’s suspending purchases of foreign exchange through the end of September.
     Here are some key events coming up this week:
* Central bankers gather at the Kansas City Fed’s annual Jackson Hole symposium, where Powell speaks Friday.
     These are the main moves in markets:
                            Stocks
* The S&P 500 Index fell 0.2 percent as of 4 p.m. New York time.
* The Nasdaq Composite Index rose 0.1 percent.
* The Stoxx Europe 600 Index fell 0.2 percent.
* Germany’s DAX Index declined 0.2 percent.
* The MSCI Emerging Market Index fell 0.3 percent.
* The MSCI Asia Pacific Index fell 0.6 percent, the first retreat in a week.
                            Currencies
* The Bloomberg Dollar Spot Index gained 0.7 percent, the biggest rise since June 14.
* The euro fell 0.5 percent to $1.1541.
* The British pound dipped 0.7 percent to $1.2816.
* The Japanese yen decreased 0.7 percent to 111.29 per dollar, the weakest in a week.
* The South African rand fell 1.9 percent to 14.4289 per dollar.
                            Bonds
* The yield on 10-year Treasuries was little changed at 2.82 percent.
* The yield on two-year Treasuries rose two basis points to 2.61 percent.
* Germany’s 10-year yield was steady at 0.34 percent
* Britain’s 10-year yield was little changed at 1.276 percent.
* Italy’s 10-year yield gained five basis points to 3.115 percent.  
                           Commodities
* West Texas Intermediate crude fell 0.1 percent to $67.79 a barrel, the first retreat in more than a week.
* Gold declined 0.7 percent to $1,187.40 an ounce, the biggest drop in more than a week.
–With assistance from Yakob Peterseil. 

Have a great night.

Be magnificent!

As ever,

Carolann

Knowledge of what is possible is the beginning of happiness.
                                           -George Santayana, 1863-1952

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
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