February 14, 2019 Newsletter

Dear Friends,

Tangents: HAPPY VALENTINE’S!

Love is never lost.  If not reciprocated, it will flow back and soften and purify the heart. –Washington Irving.

POINTS OF PROGRESS:
COSTA RICA:
In the past four years, the country has gotten 98.5 % of its electricity from renewable sources.  Energy from wind turbines, hydroelectric dams in rivers, solar panels, and geothermal plants powered by volcanoes all contribute to Costa Rica’s impressive clean power record.  The country has spent at least 1,197 days during those years without using any kind of fossil fuel source. –The Tico Times

UNITED STATES:
In Key West, Fla., the sale of sunscreens that harm reefs will soon be banned.  Some studies show that the chemicals oxybenzone and octinoxate – often found in sunscreens – can decrease coral’s defenses against bleaching events (when coral polyps expel symbiotic algae, usually because of high temperatures).  The Key West City Commission unanimously approved the measure recently.  Other ocean-adjacent communities have already taken this step; Hawaii passed a similar law in 2018. –NBC.

THE NETHERLANDS:
The Dutch government is planning a bike-filled future.  About $390 million will be invested in the creation of new cycling infrastructure, including bicycle storage facilities, bike parking spaces, and highways for bikes.  And the government will encourage more companies to participate in its bike commuting tax credit program, in which those who cycle to work are rewarded based on the distance they go.  The Dutch government hopes to have 200,000 new cyclist commuters in three years. –CNN.

The Google Arts and Culture app has been around since 2011.  The apps main purpose is to make the world’s artwork widely accessible.  One of its newest collections is the complete (known) work of Johannes Vermeer, the Dutch painter famous for “Girl with a Pearl Earring.”  In total, 18 museums across seven countries have contributed 36 painting to the Meet Vermeer feature. 

On Feb. 14, 1929, the St. Valentine’s Day Massacre took place in a Chicago garage as seven rivals of Al Capone’s gang were gunned down.  Go to article »    

PHOTOS OF THE DAY

King, the wire hair fox terrier, poses after winning “Best in Show” at the Westminster Kennel Club 143rd Annual Dog Show in Madison Square Garden in New York. Credit: Timothy A Clary/AFP/Getty Images

People looking at displays at the Yellow River Lamp display in Gucheng Village, in Zhangye City, in northwest China’s Gansu Province. The display was opened on February 12th and is made up of a temporary maze layout where locals and tourists can view displays of traditional stories, paintings, cartoons and lamps. Credit: AFP/Getty Images

Schoolchildren from Avrankou-Houeze school pose for a photo in front of the BloLab container at Avrankou city hall, in Avrankou, south of Benin. Designed by BloLab, a non-profit group, the 13-metre (43-foot) trailer is powered by 12 solar panels and equipped with enough laptops to give students in the countryside a chance to familiarise themselves with computers, which most families cannot afford. Credit: Yanick Folly/AFP/Getty Images
Market Closes for February 14^th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
On this day in 1982, in the depths of a recession, Ford Motor announced that it would skip paying a quarterly dividend for the first time since the company went public in 1956. 
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks gained on the back of strong earnings in technology and industrials, even as U.S. stocks retreated.
     The S&P/TSX Composite Index added 0.4 percent to 15,696. Technology shares were the highest since July as Constellation Software Inc. jumped 14 percent, the most ever, to a record high. Constellation reported fourth-quarter earnings and revenue that beat the highest analyst estimates.
     Industrials gained 1.3 percent as Bombardier Inc. surged 24 percent, the most since November. The company beat analysts’ expectations for cash flow and reaffirmed its 2019 forecast.
     Consumer discretionary was the only sector to post a significant decline, falling 1.2 percent as Canada Goose Holdings Inc. tumbled 13 percent. The parka-maker boosted its annual forecast for the second time in six months but got caught up in a broader rout in retail stocks following weak U.S. retail sales in January.
In other moves:
Stocks
* Sierra Wireless Inc. tumbled 27 percent, the most since 2008, after lowering its 2019 guidance due to restructuring costs
* New Gold Inc. slid 26 percent, the most since 1999. The company’s fourth-quarter loss was wider than analysts expected and revenue also missed expectations
* Chemtrade Logistics Income Fund lost 20 percent, the most ever, after an unexpected loss prompted Raymond James to cut its rating on the stock
Commodities
* Western Canada Select crude oil traded at a $10.50 discount to WTI
* Gold fell 0.1 percent to $1,309.80 an ounce
FX/Bonds
* The Canadian dollar weakened 0.3 percent to C$1.3295 per U.S. dollar as factory sales unexpectedly fell in December
* The Canada 10-year government bond yield fell 6 basis points to 1.88 percent
US
By Reade Pickert
     (Bloomberg) — U.S. stocks edged lower in listless trading as disappointing economic data and reports the president will declare a national emergency overshadowed news that another government shutdown will be averted.
     The S&P 500 Index fell, with a late-session drop sealing the decline initially sparked by a disappointing — and contested — report of the worst drop for retail sales in nine years. Initial jobless claims also came in higher than estimated. Signs Congress would avert another shutdown boosted sentiment midday and shares drifted until the late slide that came with news that President Donald Trump intends to sign a government funding bill and simultaneously declare a national emergency to get more money for a border wall.
     Investors were surprised by the December sales data, which suggested economic growth is cooling and may reinforce the expectation that the Federal Reserve will avoid raising rates this year. But some observers suggested the retail figures, delayed four weeks due to the government shutdown, are out of sync with reality. More recent data on consumer comfort point to a robust buying climate in the U.S.
     Three stocks fell for every two that advanced in the S&P 500. Bank stocks were among the hardest hit, as the 10-year Treasury yield briefly sank below 2.65 percent. Consumer staples also fell: Coca-Cola saw its biggest loss in 10 years after a disappointing forecast. On the positive side, energy companies advanced as crude prices climbed.
     Trade tensions between the U.S. and China continue to weigh on stocks, with the two sides said to be far apart on reform demands as high-level talks begin in Beijing. A headline that the two sides remained far apart briefly sent the S&P 500 lower in late morning trading.
     Food and industrial-goods shares had spurred the Stoxx Europe 600 Index amid a slew of company news, but the gauge tracked the early slide in U.S. equities and finished lower. 
     Stock benchmarks drifted in Japan, China and Australia, and ticked lower in Hong Kong. European core sovereign bonds rose and the single currency strengthened after data showed the euro region’s biggest economy stagnated in the fourth quarter, but dodged recession.
     Elsewhere, emerging-market shares fell. Oil advanced as falling shipments from Saudi Arabia and Venezuela offset gains in U.S. crude stockpiles. The British pound weakened while gilts advanced as Prime Minister Theresa May lost another round of Brexit voting in Parliament.
Here are some key events coming up:
* Steven Mnuchin and Robert Lighthizer are in Beijing for high- level talks, and will meet China President Xi Jinping on Friday, the South China Morning Post reported.
* U.S. Congress is close to voting on legislation to avert another partial government shutdown, with the Friday deadline quickly approaching.
These are the main moves in markets:
Stocks
* The S&P 500 Index fell 0.3 percent as of 4 p.m. New York time.
* The Dow Jones Industrial Average fell 0.4 percent and the Nasdaq 100 rose 0.1 percent. 
* The Stoxx Europe 600 Index fell 0.3 percent.
* The U.K.’s FTSE 100 Index rose 0.1 percent.
* The MSCI Emerging Market Index sank 0.1 percent.
Currencies
* The Bloomberg Dollar Spot Index fell 0.2 percent.
* The euro rose 0.3 percent to $1.1299.
* The British pound fell 0.4 percent to $1.2798.
* The Japanese yen rose 0.4 percent to 110.54 per dollar.
Bonds
* The yield on 10-year Treasuries sank four basis points to 2.66 percent, the biggest drop in two weeks.
* Germany’s 10-year yield fell two basis points to 0.10 percent.
* Britain’s 10-year yield fell three basis points to 1.15 percent, the lowest in 14 months.
Commodities
* West Texas Intermediate crude rose 1.2 percent to $54.56 a barrel.
* Gold futures were flat at $1,315.20 an ounce.
–With assistance from Andrew Dunn, April Ma, Adam Haigh, Jeff Kearns and Todd White.

Have a great night.

Be magnificent!

As ever,

Carolann

Of all forms of caution, caution in love is perhaps the most fatal to true happiness. -Bertrand Russell, 1872-1970.

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