December 5, 2012 Newsletter

Dear Friends,

Tangents:

Today on my lunch break I was strolling through Chapter’s and came across a book that caught my attention. While reading the synopsis on the back, I had about three people approach me and tell me what a wonderful read this book was.  Even when I was at the counter paying for the book, it has a guarantee. What does that mean? Even if you read the book and are dissatisfied, Chapters will still refund you the original price of the book.  The name of this book is “Rules of Civility”. It’s set in New York City in 1938, and is the story of an uncompromising twenty-five-year-old named Katey Kontent. Armed with little more than a formidable intellect, a bracing wit, and her own brand of cool nerve, Katey embarks on a journey from a Wall Street secretarial pool through the upper echelons of New York society in search of a brighter future.  Throughout this book Katey will learn how individual choices become the means by which life crystallizes loss.

So next time you are in your local book store looking for a good read, check out Rules of Cilvility! Care for a good read?

“Go confidently in the direction of your dreams. Live the life you have imagined.” – Henry David Thoreau

And also on this day in…

1848 – U.S. President Polk triggered the Gold Rush of ’49 by confirming the fact that gold had been discovered in California.

1876 – The Stillson wrench was patented by D.C. Stillson. The device was the first practical pipe wrench.

1901 – Movie producer Walt Disney was born in Chicago. He created his first Mickey Mouse cartoon at the age of 27.
Disney movies, music and books

1904 – The Russian fleet was destroyed by the Japanese at Port Arthur, during the Russo-Japanese War.

1908 – At the University of Pittsburgh, numerals were first used on football uniforms worn by college football players.

1913 – Britain outlawed the sending of arms to Ireland.

1932 – German physicist Albert Einstein was granted a visa making it possible for him to travel to the U.S.

photos of the day December 5, 2012

People struggle against wind and drifting snow in Stockholm. Sweden’s main airport was paralyzed due to a snowstorm in the country’s capital, just as the winners of this year’s Nobel prizes were to arrive to receive their awards.

Anders Wiklund/Scanpix Sweden/Reuters

A man blows his trumpet from the Old Town Hall Tower as a Christmas tree is illuminated at the Old Town Square in Prague, Czech Republic.

David W Cerny/Reuters

Market Closes for December 5th, 2012:

International Markets

Bonds

Currencies

Commodities

Market Commentary:

Canada

By Nikolaj Gammeltoft and Eric Lam

Dec. 5 (Bloomberg) — Canadian stocks rose, snapping a two- day retreat, as optimism grew over U.S. budget talks and energy producers advanced following an easing of Chinese restrictions on investing in banks.

Primaris Retail Real Estate Investment Trust jumped 15 percent after real-estate investor KingSett Capital Inc. said it plans a C$4.4 billion ($4.4 billion) bid for the company.

Canadian Pacific Railway Ltd. added 4.1 percent after the company said it plans to shrink its workforce by 23 percent.

Suncor Energy Inc., the nation’s largest oil producer, rose 1.3 percent. Canadian Western Bank fell 0.9 percent after analysts with Macquarie and Canaccord Genuity downgraded the stock.

The Standard & Poor’s/TSX Composite Index rose 20.11 points, or 0.2 percent, to 12,157.29 in Toronto. The equity gauge has gained 1.7 percent this year.

“China is reversing the path it took a year ago to cool its economy,” said Barry Schwartz, fund manager with Baskin Financial Services in Toronto. His firm manages about C$450 million. “It looks like they’ll be in some kind of stimulus mode, so that helps the resources today.”

China’s regulators abolished a rule limiting insurers’ investments in commercial banks and Xinhua news agency said yesterday after a meeting of top party leaders that China will actively promote urbanization and expand domestic demand.

In U.S. budget talks, a few dozen Republicans have joined a bipartisan call to break the impasse between President Barack Obama and House Speaker John Boehner over taxes for the highest- earning Americans. The Republicans signed a letter calling for exploration of “all options” on taxes and entitlement programs, a signal that some rank-and-file members are ready to bargain.

Energy and financial stocks contributed most to gains in the S&P/TSX as nine of 10 industries advanced. Trading volume was 9.4 percent higher than the 30-day average, according to data compiled by Bloomberg.

Suncor added 1.3 percent to C$32.68 and Canadian Natural Resources Ltd. gained 1.3 percent to C$27.78.

Primaris jumped 15 percent to C$26.40 for its biggest gain since November 2008. The potential offer from KingSett Capital is worth C$26 per unit of Primaris, the Toronto-based real estate investor said in a statement today.

The S&P/TSX REIT Index rose 2.3 percent on the news, the biggest gain for the index since August 2011. Allied Properties REIT increased 4.4 percent to C$32.19 and Calloway REIT gained 3.2 percent to C$28.94.

Canadian Pacific rose 4.1 percent to C$96.82 after Chief Executive Officer Hunter Harrison said yesterday he plans to eliminate 4,500 jobs by 2016. The company also plans to shutter container-car terminals and will evaluate assets from its 2007 acquisition of Dakota, Minnesota & Eastern Railroad.

Canadian Western Bank fell 0.9 percent to C$27.74. Sumit Malhotra, analyst with Macquarie Research, lowered his rating to neutral from outperform while Scott Chan, analyst with Canaccord Genuity, cut his rating to hold from buy. The bank yesterday reported earnings that fell short of analysts’ estimates.

Canadian Western Bank has fallen 4.3 percent in the past two days.

Goldcorp Inc. dropped 3.3 percent to C$36.61 and Barrick Gold Corp. slipped 2.4 percent to C$33.12 as the price of the metal fell to its lowest in almost a month. Gold futures for February delivery fell 0.1 percent to $1,693.80 an ounce in New York.

US

By Lu Wang and Susanne Walker

Dec. 5 (Bloomberg) — U.S. stocks rose amid optimism lawmakers will reach a budget agreement before the end of the year to avoid automatic spending cuts and tax increases.

Treasuries climbed and the Dollar Index halted its longest slump in more than a year. Oil and gasoline slid on supply data.

The Standard & Poor’s 500 Index added 0.2 percent to 1,409.28 at 4 p.m. in New York after earlier slumping as much as 0.6 percent. Ten-year U.S. note yields lost one basis point to 1.59 percent and the Dollar Index increased 0.2 percent after declining for five days. Spain’s bonds extended losses after the government missed a maximum sales target at a debt sale.

A few dozen Republicans joined a bipartisan call to break the impasse between President Barack Obama and House Speaker John Boehner over taxes for the highest-earning Americans, signing a letter calling for exploration of “all options.”

Obama told a business group in Washington that “nobody wants to get this done more than me” and lawmakers probably could solve the budget debate in about a week if Republicans move.

“The President had a more positive tone with regard to a resolution of the fiscal cliff today,” said Rick Fier, director of equity trading at Conifer Securities LLC in New York. His firm oversees $8 billion in assets. “People expected the worst when he gets on the TV and he didn’t come across so negatively so the sellers stopped.”

Citigroup Inc. surged 6.3 percent for its biggest gain in almost a year, and diversified financial firms led gains among 24 industries in the S&P 500, after announcing it will eliminate more than 11,000 jobs and scale back operations in some emerging markets. Bank of America Corp. rallied 5.7 percent. Trading in the two stocks led to a surge in volume, according to Miller Tabak & Co. chief technical analyst Jonathan Krinsky. Volume of S&P 500 stocks was 22 percent higher than the 30-day average, data compiled by Bloomberg shows.

Travelers Cos., the insurer in the Dow Jones Industrial Average, jumped 4.9 percent after saying it is resuming share buybacks and projecting that superstorm Sandy will cost the company about $650 million. Plains Exploration & Production Co. jumped 23 percent and McMoRan Exploration Co. surged 87 percent as Freeport-McMoRan Copper & Gold Inc. agreed to acquire them for about $9 billion.

Apple Inc. slid 6.4 percent, the biggest drop in four years, and led the S&P 500’s earlier decline amid concern Nokia Oyj is getting a leg up in China. Market researcher IDC said the company’s share in the global tablet market will slip to less than half by 2016.

Two-year Treasury yields decreased less than one basis point to 0.24 percent and 30-year rates were little changed at 2.78 percent. Treasury 10-year yields were in a range of 22 basis points last month, according to data compiled by Bloomberg, the narrowest since April 2007. This month, the gap has been 5.6 basis points, or 0.056 percentage point.

The Stoxx Europe 600 Index closed up 0.2 percent, after rising as much as 0.4 percent. A gauge of mining companies surged to a four-week high as Anglo American Plc and Rio Tinto Group climbed at least 2.5 percent. Nokia Oyj rallied 9.7 percent as China Mobile Ltd. agreed to carry the Finnish mobile- phone maker’s flagship Lumia 920T smartphone.

Tesco Plc advanced 3.3 percent as the U.K.’s largest grocery company said it will likely leave the U.S. after announcing a review of its Fresh & Easy unit.

Europe’s equity benchmark will rally 11 percent by the end of the first quarter of 2013 if it breaks above a key resistance, according to Natixis. The Stoxx Europe 600 will climb as high as 307 if it crosses above 278, said Ouri Mimran, a technical strategist at Natixis in Paris. The immediate resistance represents the 50 percent Fibonacci retracement of the decline from July 2007 through March 2009 in the aftermath of the financial crisis.

Spain’s bonds plunged as the nation sold 4.25 billion euros ($5.56 billion) of bonds, less than the 4.5 billion-euro target.

Ten-year Spanish bonds increased 15 basis points to 5.40 percent. Italian 10-year securities dropped for the first time in seven days. German bunds advanced, while French, Belgian and Swiss 10-year rates dropped to record lows as investors sought the safest assets.

Energy commodities led losses in the S&P GSCI Index, with gasoline falling 1.9 percent and crude oil decreasing 0.7 percent to $87.88 a barrel after the U.S. Energy Department said gasoline stockpiles climbed more than forecast.

The MSCI Emerging Markets Index climbed 1.1 percent to the highest level on a closing basis since May. The Shanghai Composite Index increased 2.9 percent, the most since Sept. 7.

China’s regulators abolished a rule limiting insurers’ investments in commercial banks and Xinhua news agency said yesterday after a meeting of top party leaders that China will actively promote urbanization and expand domestic demand. Spain sold 4.25 billion euros ($5.6 billion) of debt due between 2015 and 2022, less than the 4.5 billion-euro target.

Russia’s Micex Index added 1.7 percent and Brazil’s Bovespa index increased 0.2 percent.

“Discipline is the bridge between goals and accomplishment.” – Jim Rohn

Have a wonderful evening everyone!!!!!

Be magnificent!

“Be kind whenever possible. It is always possible.” – Dalai Lama

Amanda Bourke

Assistant to Carolann Steinhoff

Queensbury Securities Inc.

St. Andrew’s Square

Suite 340A, 730 View St.,

Victoria, B.C. V8X 3Y7

Tel: 778-430-5808

Fax: 778-430-5838