July 25, 2014 Newsletter

Dear Friends,


Annually, July 25th marks the Pilgrimage of St. Anne d’Auray, Brittany, France.  Thousands of pilgrims will make their way to Sainte Anne d’Auray today to attend celebrations and worship at the basilica.

The basilica was built in the 19C, when pilgrims were too numerous to fit in the small chapel of Yves Nicolazic. Around 800,000 visitors travel here every year (it is the third place of pilgrimage in France after Lourdes and Lisieux).

You’ll be amazed by the number of hotels in this small town of 2,000 inhabitants.

Let’s go back to the place of worship. It began in 1622 when, in the hamlet of Ker Anna, a farmer, Yves Nicolazic had “visions” … Only a year later, in the night of July 25 to 26… Sainte Anne, the grandmother of Jesus will introduce herself … And later still, when the mother of Mary led the farmer with some other believers to the statue of St. Anne … hidden in the place where once stood a chapel. Anne asked them to rebuild it… 924 years later.

This is the beginning of the legend … Sainte Anne (St. Anne), mother of the Virgin Mary and grandmother of Jesus chose Yves Nicolazic.  The miracles continued and popular enthusiasm began: the farmer was married for many years but had no children.  Soon after, he was blessed with 4… Then the Catholic pilgrimages began…
The place was venerated already during the 5th C, at the beginning of the evangelization of Brittany. The chapel was ruined for many centuries. The building which replaced it soon became too small for pilgrims. A chapel, a cloister, a Scala Sancta and a miraculous fountain were added.

The chapel of the 17th C was replaced in 1865 with the present church. It still hosts thousands of pilgrims during the feast of Anne (25 and 26 July).

You can see the Scala Sancta in some movies where the pilgrims were climbing. Breton women in knee cap in reciting prayers roamed the stairs … Another world

Near the basilica, a place dedicated to John Paul II, only pope to have come to Brittany. More than 150,000 people came to see him in 1996.

You can also visit the house of Yves Nicolazic, which is located near the Basilica (free admission). And every year, at Saint Anne d’Auray, and for those who have not obtained the favors of Saint Guirec, the singles can meet, during a weekend held in May and find true love!

-Taken from Bretagne-tours.com

Photos of the Day

The pack of riders cycles on its way during the 208.5km 19th stage of the Tour de France cycling race between Maubourguet and Bergerac.Jean-Paul Pelissier/Reuters

A seahorse swims in its basin in the zoo in Frankfurt, Germany. Michael Probst/AP

Market Closes for July 25th, 2014



Close Change






S&P 500 1978.34 





NASDAQ 4449.563 






TSX 15455.04 +60.59 




International Markets



Close Change
NIKKEI 15457.87 +173.45 






24216.01 +74.51 




SENSEX 26126.75 -145.10 




FTSE 100 6791.55 -29.91 





Bonds % Yield Previous % Yield

10 Year Bond

2.113 2.156 




30 Year


2.667 2.709

10 Year Bond

2.4655 2.5007 




30 Year Bond

3.2377 3.2913 



BOC Close Today Previous
Canadian $ 0.92465 0.93087 




1.08149 1.07427
Euro Rate  

1 Euro=




1.45244 0.68850


1.34299 0.74460


Gold Close Previous
London Gold  


1307.44 1293.00
Oil Close Previous  


WTI Crude Future 106.34 105.32 


Market Commentary:

By Eric Lam

July 25 (Bloomberg) — Canadian stocks rose a fourth day to a record as TransForce Inc. and MDC Partners Inc. jumped on better-than-forecast earnings and metal producers advanced with gold amid mounting conflicts overseas.

TransForce, which provides staff for trucking companies, surged 10 percent as revenue climbed after a series of acquisitions. MDC Partners, an advertising firm, gained 4.9 percent as the company also raised its dividend. Semafo Inc. and Iamgold Corp. increased at least 4.1 percent as gold rallied the most in a week.

The Standard & Poor’s/TSX Composite Index rose 60.59 points, or 0.4 percent, to 15,455.04 at 4 p.m. in Toronto, extending a record. The S&P/TSX advanced 1.2 percent this week for a second weekly gain. The equity index trades at 21.1 times earnings, the highest level since 2010.

“The index is benefiting from its rich resource content,” said Martin Roberge, a strategist at Canaccord Genuity Corp., in a note to clients. “It is very sensitive to global economic growth prospects, and the strong flash manufacturing PMIs released this week bode well for further outperformance.”

The combined average purchasing managers’ index measure across the U.S., Europe, Japan and China so far this year is 52.7, ahead of levels in 2012 and 2013, suggesting potential further gains for the S&P/TSX, Roberge said.

Semafo surged 7.4 percent to C$4.82 and Iamgold added 4.1 percent to C$4.07 as raw-materials stocks jumped 2.1 percent as a group, the most in the S&P/TSX. Seven of 10 industries in the benchmark equity gauge rose on trading volume 13 percent lower than the 30-day average.

Gold for December delivery rose 1 percent to settle at $1,305.30 an ounce in New York, the biggest gain since July 17.

Royal Bank of Canada, the nation’s second-largest lender by assets, added 0.7 percent to C$79.89 and Canadian Imperial Bank of Commerce advanced 0.2 percent to C$100.34, the highest close since 2007. Financial stocks have rallied 1 percent in the past four days.

TransForce jumped 10 percent to C$27.82, a record, after reporting second-quarter profit and sales ahead of analysts’ estimates. Acquisitions including Vitran, Clarke Transport and Clarke Road Transport contributed C$102.3 million to sales in the quarter, the company said.

TransForce also agreed to buy Contrans Group Inc. in a cash deal for C$14.60 a share, or a total equity purchase price of about C$495 million.

MDC advanced 4.9 percent to C$23.92, a one-month high. The company raised its 2014 estimate for adjusted earnings before interest, taxes, depreciation and amortization, Chief Executive Officer Miles Nadal said in a release.

SNC-Lavalin Group Inc., the Montreal-based construction and engineering firm, added 2.2 percent to C$57.74, the highest in three years, after its Candu unit signed a cooperation agreement with the China Nuclear Power Engineering Co. for construction of reactors in Romania.

Dragonwave Inc., a network communications equipment provider, plunged 14 percent to C$1.72, the biggest decline since September. The company said it will sell shares for C$1.80 a unit to raise about C$25 million.

By Oliver Renick

July 25 (Bloomberg) — U.S. stocks fell, pulling the Standard & Poor’s 500 Index down from a record, as earnings at Amazon.com Inc and Visa Inc. missed estimates and durable goods data fueled concern corporate investment remains stop-and-go.

Amazon plunged 9.7 percent after trailing analysts’ predictions for the second successive quarter. Visa sank 3.7 percent percent after lowering its full-year revenue forecast. Pandora Media Inc. slid 10 percent after the number of active listeners reported by the biggest Internet radio service missed some analysts’ estimates. Baidu Inc. rose 11 percent after earnings topped projections.

The S&P 500 slipped 0.5 percent to 1,978.34 at 4 p.m. in New York. The Dow Jones Industrial Average lost 123.23 points, or 0.7 percent, to 16,960.57 today. About 5 billion shares changed hands on U.S. exchanges today, 12 percent below the three-month average.

“The market is really looking at micro level numbers on a lot of these companies,” Ian Kerrigan, global investment specialist at JP Morgan Private Bank in Seattle, said in a phone interview. “There is skepticism going into the weekend. We have a lot of important numbers coming out next week with GDP, inflation and jobs, so we might see some profit-taking today.”

Goldman Sachs Group Inc. said equities are at risk of a temporary selloff, citing rising bond yields and high valuations for lowering its rating on stocks.

The S&P 500 closed little changed for the week. The gauge was up 0.5 percent over the past four days as corporate earnings reports boosted confidence in the economy and inflation data signaled the Federal Reserve won’t be compelled to raise interest rates in the near future. The Fed announces its next policy decision at the conclusion of a two-day meeting on July 30.

Fed Chair Janet Yellen said last week the central bank must press on with stimulus with record easing to combat persistent weakness in the job market. A report on Aug. 1 will show employers added 231,000 jobs in July and the unemployment rate held at 6.1 percent, according to economists in a Bloomberg survey.

The S&P 500 has advanced 7 percent this year, as the U.S. economy shows signs of recovering from a 2.9 percent contraction in the first quarter. Investors will get a reading on second- quarter growth on July 30.

Data today showed orders for U.S. business equipment rose in June following a revised drop the prior month, indicating corporate investment could hold back growth.

“Durable goods orders continue to be anemic relative to where they should be in the capex cycle,” Lincoln Ellis, managing director at Green Square Capital Management LLC in Memphis, Tennessee, said in a phone interview. “CEOs in America are very cautious about reinvesting in capital expenditures because they understand the underlying economy continues to be lackluster.”

Investors have also been watching geopolitical tensions in the Middle East and Ukraine. The U.S. today accused Russia of shelling Ukrainian military positions across its border, raising tensions after the ruling coalition in Kiev broke apart.

Russia’s central bank unexpectedly increased borrowing costs for a third time this year as the intensifying conflict and the threat of wider sanctions squeeze the economy and undercut the ruble.

Israel and Hamas are considering a U.S.-backed proposal for a temporary cease-fire as the conflict in the Gaza Strip intensified.

Goldman Sachs cut its rating on stocks to neutral, the equivalent of hold, for the next three months, according to a quarterly research report from its portfolio strategy group on July 25.

“The acceleration in economic growth is largely behind us and geopolitical risks are elevated,” a group of 11 strategists, including David Kostin, Kathy Matsui and Peter Oppenheimer, said in the report, known as the global opportunity asset locator.

Eleven companies on the S&P 500 reported earnings today. Of the members that have posted results so far, 79 percent have beaten estimates for profit and 66 percent have exceeded projections for sales.

“The results season has been going fine, not spectacular, but fine,” Matthew Beesley, head of global equities at Henderson Global Investors Holdings Ltd., said. “There’s a worry that growth is slowing worldwide, so people have been watching corporate data very closely. It’ll be the financial results that will be moving markets, as none of the geopolitical events going on right now have much effect.‘‘

The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 options prices known as the VIX, rose 6 percent to 12.55 to erase a decline for the week.

Eight of the 10 main S&P 500 groups retreated today. Consumer-discretionary shares, a sector that includes Amazon, sank 1.2 percent to pace declines and financials lost 0.6 percent as a group.

Amazon tumbled 9.7 percent, the most since April. The world’s largest online retailer reported a second-quarter loss of $126 million, compared with the average estimate by analysts for $66.7 million, as its cloud-computing business showed signs of cooling and investments in new distribution warehouses and gadgets curtailed earnings.

‘‘I’m not overly concerned with Amazon’s losses,” said Patrick Spencer, managing director and head of U.S. equity sales at Robert W. Baird & Co. “They’re focusing on building a business rather than reaping short-term earnings.”

Visa dropped 3.6 percent. The world’s largest payments network said revenue for the accounting year ending Sept. 30 may climb 9 percent to 10 percent from a year earlier. That’s lower than an April forecast of 10 percent to 11 percent.

Pandora lost 10 percent for the steepest drop in three months. The number of active listeners grew 7.5 percent to 76.4 million users in the second quarter, the company said yesterday. That missed the 76.6 million estimate of Corey Barrett, an analyst at Pacific Crest Securities, and a projection of 77 million by Mark Mahaney at RBC Capital Markets.

Baidu advanced 11 percent, rising for a sixth day to extend an all-time high. The operator of China’s largest Internet search service reported second-quarter net income of 3.55 billion yuan ($572.5 million), beating the analysts’ average prediction of 2.85 billion yuan.

VeriSign Inc. climbed 12 percent for the biggest advance in the S&P 500 and its steepest climb since 2009. The company reported earnings that beat analysts’ estimates.


Have a wonderful weekend everyone.


Be magnificent!

Nonviolence and cowardice go ill together.

I can imagine a fully armed man to be at heart a coward.

Possession of arms implies an element of fear, if not cowardice.

But true nonviolence is impossible without the possession of unadulterated fearless ness.

Mahatma Gandhi, 1869-1948

As ever,




There are only two options regarding commitment.  You’re either in or out.  There’s

no such thing as a life in-between.

-Pat Riley, 1945-

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM, FCSI

Senior Vice-President &

Senior Investment Advisor

Queensbury Securities Inc.,

St. Andrew’s Square,

Suite 340A, 730 View St.,

Victoria, B.C. V8W 3Y7