July 25, 2018 Newsletter

Dear Friends,

Tangents:
July 25, 1909 Louis Blériot makes the first crossing of the English Channel by air:
Four thirty-five a.m.  Tout est prêt!  In an instant I am in the air, my engine making 1,200 revolutions – almost its highest speed – in order that I may get quickly over the telegraph wires along the edge of the cliff.  As soon as I am over the cliff I reduce my speed.  There is now no need to force my engine.  I begin my flight, steady and sure, towards the coast of England.  I have no apprehensions, no sensations, pas du tout.  The [destroyer] Escopette has seen me.  She is driving ahead across the Channel at full speed.  She makes perhaps 26 miles per hour.  What matters?  I am making over 40 mph.   Rapidly I overtake her, travelling at a height of 250 feet.  The moment is supreme, yet I surprised myself by feeling no exultation,  Below me is the sea; the motion of the waves is not pleasant.  I drive on.  Ten minutes go.  I turn my head to see whether I am proceeding in the right direction.  I am amazed.  There is nothing to be seen – neither the destroyer, nor France, nor England.  I am alone.  I am lost.
  Then I saw the cliffs of Dover!  Away to the west was the spot where I had intended to land.  The wind has taken me out of my course.  I turned and now I was in difficulties, for the wind here by the cliffs was much stronger, and my speed was reduced as I fought against it.  My beautiful aeroplane responded.  I saw an opening and I found myself over dry land.  I attempted a landing, but the wind caught me and  whirled me round two or three times.  At once I stopped my motor, and instantly my machine fell straight on the ground. I was safe on your shore.  Soldiers in khaki ran up, and also a policeman.  Two of my compatriots were on the spot.  They  kissed my cheeks.  I was overwhelmed.
  On July 25, 1943, King Victor Emmanuel announced to Italy that he had accepted the “resignations” of Premier Benito Mussolini and his entire cabinet, leading to the end of Italy’s alliance with Nazi Germany in World War II. 
Go to article »

PHOTOS OF THE DAY

A slow shutter speed picture shows lava streaming down from Mount Anak Krakatau (Child of Krakatoa) during an eruption as seen from Rakata island in Lampung, Indonesia. Credit: Jefta Images/Barcroft Images

A crowd watches as Australian Aboriginal paintings by six First Nations artists are projected onto the Sydney Opera House as part of the project “Badu Gili 2018”, meaning “water light” in the local Aborigine’s Gadigal language, in Sydney, Australia. Credit: David Gray/Reuters

A boy enjoys himself as he cools off in an outdoor water fountain in Seoul, South Korea. A heat wave warning was issued in Seoul as temperatures soared above 37 degrees Celsius. Credit: Ahn Young-Joon/Ap
Market Closes for July 25^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Stefanie Marotta
     (Bloomberg) — Canadian stocks closed at session highs as news spread that President Donald Trump may have secured concessions from Europe to avoid a trade war.
     The S&P/TSX Composite Index rose 0.2 percent to 16,420.76, ending a 3-day decline. Industrials led gains, climbing 2.4 percent to a record. Toromont Industries Ltd. soared 15 percent to a record high after second-quarter earnings beat analyst estimates, and it was upgraded at BMO to outperform from market perform.
     Real estate companies climbed 0.6 percent, pulled up by FirstService Corp. as the firm jumped 6.8 percent after earnings beat analyst estimates.
     In other moves:
* Aimia Inc. continued its record gain, climbing 36 percent after Air Canada proposed to buy its Aeroplan loyalty program for C$250 million
* AltaGas Ltd. fell 1.6 percent as the Canadian pipeline, natural gas-processing and power-generating company said its chief executive officer stepped down while the board investigates a complaint against him
* Loblaw Cos. recovered slightly from its earlier initial drop, closing down 0.3 percent. The grocer warned of trade war impacts on prices.
                            Commodities
* Western Canada Select crude oil traded at a $26.75 discount to WTI
* Aeco natural gas traded at a $1.75 discount to Henry Hub
* Gold rose 0.6 percent to $1,241.50 an ounce
                            FX/Bonds
* The Canadian dollar strengthened 0.9 percent to C$1.30395 per U.S. dollar
* The Canada 10-year government bond yield rose five basis points to 2.3 percent
US
By Sarah Ponczek and Olivia Schaber
     (Bloomberg) — U.S. equities jumped after Donald Trump reached an agreement with European Commission President Jean- Claude Juncker aimed at averting a trade war. Treasuries declined on the news, while automakers, battered by the threat of tariffs, pared losses.
     The S&P 500 Index pushed higher for the third straight day, and the Dow Jones Industrial Average jumped after word of an agreement was first reported by Dow Jones shortly before U.S. markets closed. The two sides agreed to expand European imports of U.S. liquefied natural gas and soybeans and lower industrial tariffs on both sides, Trump later said in a joint statement with Juncker.
     “Today’s agreement between President Trump and EC President Juncker serves as an example of how the trade negotiations can lead to a positive outcome,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “Although the market hates uncertainty, it’s important to realize that the removal of that uncertainty can allow the market to move higher.”
     Trump’s meeting with Juncker came amid a raft of earnings from U.S. companies, some of which reflected the impact of recent trade threats from the White House. General Motors shares plunged after the carmaker cut its profit forecast on surging metals prices. Fiat Chrysler also cut its profit outlook.
     Earlier, the Stoxx Europe 600 Index retreated. Asian equities advanced, although Shanghai stocks finished lower as positive sentiment spurred by Beijing’s willingness to support the Chinese economy showed signs of fading.
     The yen edged up after the Bank of Japan refrained from scaling back its bond purchases at a regular operation Wednesday. Most European government bonds rose ahead of Thursday’s European Central Bank meeting. Turkey’s lira regained some of the previous session’s losses, sustained after the central bank unexpectedly kept rates unchanged. Gauges of emerging-market currencies and shares climbed. Texas crude ticked up on stockpile decreases, and gold gained.
     Here are some key events coming up this week:
* Earnings season continues with the following tech companies among those reporting: Amazon.com, Twitter, Advanced Micro Devices, Qualcomm and Intel. Others include Nissan and Shell.
* The European Central Bank’s policy decision is Thursday.
* U.S. gross domestic product probably increased by about 4.2 percent at an annualized rate in the second quarter, the most since 2014, economists forecast ahead of Friday’s data.
     These are the main moves in markets:
                            Stocks
* The S&P 500 Index gained 0.9 percent as of 4 p.m. New York time.
* The Stoxx Europe 600 Index fell 0.3 percent.
* The U.K.’s FTSE 100 Index declined 0.7 percent, its biggest decline in over a week.
* The MSCI Emerging Market Index gained 0.8 percent to the highest in more than a month.
                           Currencies
* The Bloomberg Dollar Spot Index sank 0.5 percent to the lowest in almost seven weeks.
* The euro advanced 0.4 percent to $1.173.
* The British pound climbed 0.3 percent to $1.3191.
* The Japanese yen increased 0.2 percent to 110.97 per dollar, the strongest in over two weeks.
                            Bonds
* The yield on 10-year Treasuries increased two basis points to 2.97 percent.
* Germany’s 10-year yield decreased less than one basis point to 0.40 percent.
* Britain’s 10-year yield fell less than one basis point to 1.274 percent.
                           Commodities
* The Bloomberg Commodity Index increased 1 percent to its highest in over two weeks.
* West Texas Intermediate crude rose 1.3 percent to $69.39 a barrel, the highest in more than a week.
* LME copper fell 0.1 percent to $6,290.00 a metric ton.
* Gold advanced 0.6 percent to $1,231.88 an ounce.
–With assistance from Hans Lee, Adam Haigh, Justina Lee and Eddie van der Walt. 

Have a great night.

Be magnificent! 

As ever,

Carolann

Be as you wish to seem.
-Socrates, c. 470 BC-399 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
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com