June 20, 2018 Newsletter

Dear Friends,

Tangents:
1948: Ed Sullivan Show premieres.

Queen Victoria ascends throne at age 18

Today’s New York Times back story:

Steven Spielberg’s genre-defining film “Jaws” was released on this day in 1975. It was his first big-budget film, and it ushered in one of the industry’s most successful careers. 

But the production was troubled with delays and budget-busting costs. Crew members called it “Flaws,” and Mr. Spielberg — not yet 30 years old — worried he might never work in Hollywood again. “No one had ever taken a film 100 days over schedule,” he said. 

The director Steven Spielberg and the star of his breakout film, “Jaws.”
Steven Spielberg, via Associated Press 

Especially problematic were three animatronic sharks meant to serve as the focal predator. Collectively known as Bruce (after Mr. Spielberg’s lawyer), they proved disappointingly unmenacing. And they corroded and malfunctioned because the young director insisted on the realism of filming in the ocean, not in a tank. 

Unable to show more than a few scenes of the film’s linchpin, Mr. Spielberg improvised. He filmed some scenes from the shark’s point of view and signaled its presence with John Williams’ now-iconic theme song. The result: a Hitchcockian buildup of tension and suspense. (The Times review was a bit dismissive.) 

Even the production delays ended up helping. “Jaws” missed the traditional Christmas window, and a later release (and a marketing blitz) made it one of the first summer blockbusters. 

Emma McAleavy wrote today’s Back Story. 

PHOTOS OF THE DAY

Columbia fan inside the Mordovia Arena Stadium ahead of the 2018 FIFA World Cup First Stage Group H football match between Columbia and Japan. Credit: Stanislav Krasilnikov/Tass

A woman walks along a passageway past apartments at a building in Tokyo. Credit: Martin Bureau/AFP/Getty Images

Swimmers exercise in the Serpentine River in front of Christo’s “The London Mastaba”, in Hyde Park, London, Britain. Credit: Reuters/Henry Nicholls

People compete for a duck in the river to celebrate the Dragon Boat Festival at Fenghuang Ancient Town in Fenghuang, China. The Dragon Boat Festival as a traditional Chinese Festival is celebrated by eating rice dumplings and holding dragon boat races. Credit: VCG/Getty Images
Market Closes for June 20^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Stefanie Marotta
     (Bloomberg) — Canadian stocks reached a record high, rebounding from yesterday’s slump, as cannabis stocks soared and energy recovered.
     The S&P/TSX Composite Index rose 0.6 percent to 16,420.95 points. Canopy Growth Corp. rose 6.7 percent, with pot stocks climbing after the Canadian government took the final steps toward legalizing recreational marijuana.
     Even as Canadian stocks accelerated, Great Canadian Gaming Corporation plummeted 10.9 percent as analysts expressed caution about the company’s Greater Toronto Area (GTA) bundle to operate gaming facilities.
     In other moves:
                                   Stocks
* MEG Energy Corp. climbed 6.4 percent as energy stocks rose 1.4 percent amid increasing oil prices and a positive outlook on OPEC reaching an oil-production deal
* Canada Goose Holdings Inc. fell 5 percent after an eight day rally
* Bombardier Inc. rose 5.5 percent after Delta Air Lines Inc. agreed to purchase 20 CRJ900 aircraft in an order valued at $961 million
                                   Commodities
* Western Canada Select crude oil traded at a $24.00 discount to WTI
* Aeco natural gas traded at a $1.94 discount to Henry Hub
* Gold fell 0.7 percent to $1,270.60 an ounce
                                    FX/Bonds
* The Canadian dollar strengthened 0.2 percent to C$1.3310 per U.S. dollar
* The Canada 10-year government bond yield rose two basis points to 2.18 percent
US
By Brendan Walsh
     (Bloomberg) — U.S. stocks were lifted by a rally in tech shares as concerns eased about a potential global trade war. Treasury yields rose and oil jumped.
     The S&P 500 broke a three-day losing streak and the Nasdaq Composite Index added to an all-time high, buoyed by Facebook Inc.’s rally past $200 a share. European equities advanced for the first time this week and Canada’s stock benchmark hit a record. The pound edged higher after Prime Minister Theresa May won a key vote on Brexit.
     A sense of calm is returning to markets after President Donald Trump stepped up trade threats against China earlier in the week, proposing moves that economists reckon could cut as much as half a percentage point from the Asian nation’s growth. Traders may well be siding with Goldman Sachs Chief Executive Officer Lloyd Blankfein, who characterized the escalation in rhetoric as simply a negotiating strategy.
     Elsewhere, the onshore yuan climbed after the People’s Bank of China set its daily reference rate at a stronger-than- expected level. Facebook reached a record as investors bet the company’s Instagram and Messenger units will continue to boost advertising revenue.
     Here are some key events to watch for this week:
* A Brazilian central bank decision is due Wednesday.
* The Bank of England sets rates on Thursday.
* Also on Thursday: U.S. jobless claims, New Zealand GDP, South Korea export data.
* The Organization of Petroleum Exporting Countries meets in Vienna on Friday.
     And here are the main market moves:
                            Stocks
* The S&P 500 rose 0.2 percent at the close of trading in New York.
* The Stoxx Europe 600 Index climbed 0.3 percent.
* The U.K.’s FTSE 100 Index rose 0.3 percent.
* The MSCI Emerging Market Index climbed 0.7 percent.
                            Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro slipped 0.1 percent to $1.1581.
* The British pound rose 0.1 percent to $1.3182.
* The Japanese yen fell 0.3 percent to 110.4 per dollar.
                             Bonds
* The yield on 10-year Treasuries rose four basis points to 2.93 percent.
* Germany’s 10-year yield rose one basis point to 0.37 percent.
* Britain’s 10-year yield rose two basis points to 1.30 percent.
                             Commodities
* West Texas Intermediate crude rose 1.8 percent to $66.22 a barrel.
* Gold slipped 0.4 percent to $1,269.64 an ounce, the weakest in six months.
–With assistance from Adam Haigh, Cecile Vannucci, Andreea Papuc, Todd White, Christopher Anstey, Samuel Potter and Jeran Wittenstein.

Have a great evening.

Be magnificent! 

As ever,

Carolann

You cannot climb the ladder of success dressed in the costume of failure.
                                                                   -Zig Ziglar, 1926-2012

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