July 23, 2019 Newsletter

Tangents:

On July 23, 1914, Austria-Hungary issued an ultimatum to Serbia following the killing of Archduke Francis Ferdinand by a Serb assassin; the dispute led to World War I. Go to article »

On July 23, 1934, T.H. White wrote, England Have My Bones:
Flying over Wiltshire yesterday, we followed the course of a little river. Hanging over Corbett’s favorite country, with the sharp downs to provide a skyline of useful beauty, and the fertile valleys full of comfort and richness between them, it was almost an agony of affection to look down into the clean water. You could see the whole geography of the stream, the bright green cresses, almost the shadowy trout with their under-shadows.
     Nothing will beat the dry-fly…the highest of the arts.  You have got to endure for a salmon, and there is a pleasure in the absolutely straight sizzle of gut culminating in the plop of a lure that will be fishing efficiently through the whole arc, and the ten minutes with the fish on are at the tip f life.  But you can’t stalk a salmon.  You don’t caress your cast on to the water with a feathery anxiety.
     There is something in our effete old English waters after all.…And in them stands absorbed the ruminant angler, unconscious of time, deft with his fingers, puzzling his beloved fly-box, breathing his pipe smoke regularly in the bliss of concentration, pitting his quivering wits and tackle against the rosy-spotted tiger-fighters of the drinkable water, sun struck into another infinite universe like the heron.  I suppose the heron must be the happiest of living creatures. -T.H. White, 1906-1964,  from The Book of Days.32

Travelling:
A Trip to Ireland’s Hauntingly Beautiful Burren: On Ireland’s west coast, the rocky Burren region is home to ancient crypts, medieval holy sites and a wildly idiosyncratic garden. -from today’s Wall Street Journal.

PHOTOS OF THE DAY

Part of a headdress from a helmet belonging to a real-life Asterix resistance fighter against the Romans that has been discovered on a West Sussex building site. Archaeologists have described the discovery, which will go on display at Chichester’s Novium Museum in January 2020, as “the most elaborately equipped warrior grave ever found in England.
CREDIT: STEVE PARSONS/ PA WIRE

People sunbathe at Levante Beach in Benidorm, Spain. More than 39 million of tourists are  expected to visit Spain by the end of July, 7% more than the same period in 2019, but Spain’s tourist industry remains tepid with UK visitor’s figures. Spain is expected to host 8.5 million UK tourists by the end of July, just a 0.4% increase of same period in 2018 which confirms a deceleration dating from 2016 with the worst figures in 2018.
CREDIT: DAVID RAMOS/ GETTY IMAGES

London’s last working shire horses cut the grass Thames meadows at the National Trust’s Ham House and Garden. The National Trust’s Ham House and Garden. The National Trust is replacing heavy machinery with a 17^th century technique of using shire horses to cut rare hay meadows in the heart of the capital. The herd of working heavy horses have been called in by the conservation charity to cut the hay on its Ham House estate, near Richmond, as part of efforts to manage the land in a more sustainable way. The towering horses, which belong to charity Operation Centaur, weigh up to a tonne each but are a lighter alternative to tractors, reducing compaction of the soil which encourages wildflowers to grow and in turn provides habitats for wildlife.
CREDIT: JAMES LINSELL-CLARK/SWNS
Market Closes for July 23th, 2019

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Starbucks Corp. said it is taking a stake in a digital technology company to speed up its offering of mobile ordering and payment options at its global stores to improve customer convenience.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian stocks gained for a second consecutive day, while U.S. stocks climbed amid some positive earnings results and optimism surrounding trade negotiations. The S&P/TSX Composite Index rose 0.3% to 16,572.68 on Tuesday in Toronto. Eight of 11 sectors rose, led by consumer discretionary stocks. Tech, materials and energy stocks were the worst sectors within the index.
Meanwhile, after years of Canada dominating the world of marijuana finance, the country’s head start is evaporating and U.S. bankers are increasingly answering the call of cannabis companies.
In other moves:
Stocks
* BRP Inc. rose 9.2% after completing its substantial issuer bid
* Cronos Group climbed 5.1%, while Hexo fell 4.1%
* SNC fell 9.6%, following the previous day’s declines, as the company’s largest shareholder said SNC’s performance is cause for concern.
Ratings
* ELD CN: Eldorado Gold Cut to Sector Perform at National Bank; PT C$11
* GTII CN: Green Thumb Rated New Buy at Craig-Hallum
* SMF CN: Semafo Downgraded to Sector Perform at National Bank; PT C$6.50
* VFF CN: Village Farms International Rated New Buy at Craig-Hallum
Commodities
* Western Canada Select crude oil traded at a $14.85 discount to WTI
* Gold spot price fell 0.5% to $1,417.18 an ounce
FX/Bonds
* The Canadian dollar fell about 0.2% to C$1.3146 per U.S. dollar
* The Canada 10-year government bond yield rose to 1.490%
US
By Vildana Hajric and Olivia Rinaldi
(Bloomberg) — U.S. stocks rose, sending the benchmark S&P 500 Index back above the 3,000 level, as investors assessed a batch of strong earnings and signs of progress in trade talks with China. Treasuries fell and the dollar rose. Equities extended gains after Blooomberg reported that U.S. Trade Representative Robert Lighthizer is set to travel to China next Monday for the first high-level, face-to-face trade negotiations between the world’s two biggest economies since talks broke down in May.
“We’re starting to see perhaps both sides are building more good faith for continuing negotiations,” said Michael Reynolds, investment strategy officer at Glenmede Trust Co. in Philadelphia. “It seems like they’re making progress, which is good, and the market applauds something like that.” The S&P 500 climbed for a second day as Coca-Cola reached a record high, while United Technologies jumped after the duo posted earnings that topped estimates. PulteGroup, Zions Bancorp and Whirlpool all tumbled after results disappointed. Strong earnings helped the Stoxx Europe 600 gain, with upbeat reports from heavyweights including UBS, Santander, Hermes and AMS.
One of the biggest risks is that people underestimate how much the U.S. companies actually rely on international and emerging markets for growth,” said Brian Kersmanc, a senior investment analyst at GQG Partners and deputy portfolio manager on the GQG International Strategy. “The lines between developed market, emerging market, and U.S. and international are blurring immensely.”
Elsewhere, the British pound stayed lower after Boris Johnson was officially named by the Conservative Party as Prime Minister Theresa May’s replacement. Oil gained amid the optimism on trade. Futures in New York shook off their earlier malaise and shot up 1% to close trading.
Here are some key events coming up:
* Earnings season rolls on with companies including Amazon.com, Alphabet, Unilever, Caterpillar, McDonald’s and Boeing still to report this week.
* Thursday brings the European Central Bank policy decision. Economists widely expect officials to signal their readiness to cut interest rates and potentially broaden stimulus. Some see the chance of an immediate rate cut. ECB President Mario Draghi holds a briefing afterward.

These are the main moves in markets:
Stocks
* The S&P 500 Index rose 0.7% as of 4:02 p.m. New York time. The Nasdaq Composite Index increased 0.6% and the Dow Jones Industrial Average climbed 0.7%.
* The Stoxx Europe 600 gained 1%, the third straight increase.
* The MSCI Emerging Market Index was little changed.
* The MSCI Asia Pacific Index rose 0.3%.
Currencies
* The Bloomberg Dollar Spot Index rose 0.4%, the third consecutive gain.
* The euro declined 0.5% to $1.1148, while the yen weakened 0.4% to 108.25 per dollar.
* The British pound fell 0.3% to $1.2435, the third straight decline.
* The MSCI Emerging Markets Currency Index dropped 0.2%.
Bonds
* The yield on 10-year Treasuries rose 2 basis points to 2.07%.
* Germany’s 10-year yield was little changed at -0.36%.
* Britain’s 10-year yield fell 2 basis points to 0.69%.
Commodities
* West Texas Intermediate rose 1.3% to $56.93 a barrel.
* Gold fell 0.6% to $1,417 an ounce.
* The Bloomberg Commodity Index gained 0.3%.
Have a great night.

Be magnificent!
As ever,

Carolann

Do not condemn the judgement of another because it differs from your own. 
You may both be wrong.
            -Lao Tzu, 570-490 BC

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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