May 9, 2018 Newsletter

Dear Friends,

Tangents:

Peter Pan helps sick children. Not fictionally, financially.

The author J.M. Barrie, who was born on this day in 1860, donated the rights to his most famous creation to the Great Ormond Street children’s hospital in London in 1929. In a front-page report at the time, The New York Times estimated their worth at “roughly $10,000 a year,” which it said was equivalent to a sixth of the hospital’s income.

An undated photograph of J.M. Barrie, the creator of Peter Pan.
Getty Images

It would have been clear that the gift was of lasting value: The boy who never grows up was introduced in 1902, becoming the subject of a hit play two years later, and then a novel. He had already inspired a statue in a London park, and even begun his long career in movies.

But few would have guessed quite how long Peter Pan would pay. The copyright first expired in Britain at the end of 1987, 50 years after Barrie’s death. Within months, however, Parliament passed a measure granting Great Ormond Street a permanent right to royalties from the stage play and adaptations of it.

Peter Pan’s adventures in America are also helping the hospital; according to its website, the U.S. copyright does not expire until 2023.

Peter Robins wrote today’s Back Story., New York Times.

PHOTOS OF THE DAY

The sun rises at Christchurch Quay in Dorset. Credit: Nick Lucas/SWNS.COM

An aerial view of an avenue crossing fields in Laatzen near Hanover, northern Germany. Credit: Julian Stratenschulte/DPA/AFP/Getty Images

People dance next to the lake in the grounds of Lismore House and Garden as they celebrate Helston Flora Day in Cornwall, England. Credit: Matt Cardy/Getty Images
Market Closes for May 9^th, 2018

International Markets

Bonds

Currencies

Commodities

Market Commentary:
$ ~On this day in 1901, Northern Pacific railway shares hit $1,000, up from $96 only five weeks earlier, as competing bull and bear factions tried to corner the market in the stock.
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks closed at the highest level since January as crude passed $71 for the first time since 2014.
     The S&P/TSX Composite Index added 68 points or 0.4 percent to 15,910.81. Energy shares rose 1.1 percent as U.S. crude stockpiles shrank and President Donald Trump walked away from a nuclear deal with Iran.
     Kinross Gold Corp. was the biggest decliner on the benchmark, tumbling 11 percent, the most since October 2016, amid uncertainty in both Mauritania and Ghana. The materials sector rose 0.2 percent.
     In other moves:
                          Stocks
* Maxar Technologies Ltd. jumped 14 percent, the most since 2012, after first-quarter revenue beat the highest estimate and the stock was upgraded to outperform at National Bank Financial
* Paramount Resources Ltd. slid 8.8 percent, the most since 2016. The energy company cut its 2018 sales volume outlook
* Spin Master Corp. added 7.3 percent to the highest in two months on better-than-expected quarterly results
                          Commodities
* Western Canada Select crude oil traded at a $15.45 discount to WTI
* Gold fell 0.1 percent to $1,313.00 an ounce
                           FX/Bonds
* The Canadian dollar strengthened 0.8 percent to C$1.2855 per U.S. dollar, the most in a month, on stronger oil prices
* The Canada 10-year government bond yield rose four basis points to 2.39 percent, the highest since 2014
US
By Sarah Ponczek
     (Bloomberg) — U.S. stocks advanced as energy shares rallied with oil on speculation crude supplies may not keep up with demand. Ten-year Treasury yields topped 3 percent.
     West Texas oil climbed above $71 per barrel after an unexpected drop in U.S. stockpiles and as the market came to terms with President Donald Trump’s decision to withdraw from the Iran nuclear deal. Bank shares rallied as the 10-year yield spiked. Walmart Inc. weighed on the major gauges after its deal to buy a controlling stake in India’s biggest online seller was met with skepticism. A measure of emerging-market currencies erased its 2018 gains.
     Stocks extended gains in afternoon trading, with the risk- on tone in markets spreading after North Korea’s good-will gesture of releasing U.S. citizens as captives. Still, markets remained bound in a trading range amid the threat of increased geopolitical tension in the Middle East just as concern spreads over the implications of higher Treasury yields and recent dollar strength. A $25 billion auction of 10-year U.S. notes drew yields of 2.995 percent, just short of carrying a 3 percent coupon for the first time in almost seven years.
     “This tug-of-war remains in the market, regardless of the positive headlines on North Korea, regardless of the positive headlines on earnings,” said Quincy Krosby, the chief market strategist at Prudential Financial Inc. “This is a market that has to sort that out, and that 10-year yield flirting with 3 percent again is a reflection of that tug-of-war.”
     Elsewhere, stocks in Europe climbed as the MSCI Asia Pacific Index fell. Indonesia’s rupiah weakened to a two-year low on worries about capital outflows from emerging markets. Turkey’s lira gained after President Recep Tayyip Erdogan called a meeting to discuss issues including the exchange rate, fueling speculation that authorities may take measures to stem a market rout. Argentina’s peso fell toward a record low as the government begins meetings with the International Monetary Fund to discuss a possible credit line.
     Some key events coming up this week:
* The Bank of England decides on policy Thursday.
* U.S. inflation data for April is due the same day.
     And these are the main moves in markets:
                           Stocks
* The S&P 500 Index added 1 percent to the highest close since April 18.
* The Dow Jones Industrial Average rose 0.8 percent and the Nasdaq Composite climbed 1 percent. Small caps lagged behind.
* The Stoxx Europe 600 Index rose 0.6 percent.
* The MSCI Emerging Market Index rose 0.1 percent.
* The MSCI Asia Pacific Index sank 0.4 percent.
                          Currencies
* The Bloomberg Dollar Spot Index was little changed.
* The euro slipped 0.1 percent to $1.185.
* The British pound was little changed at $1.3545.
* The Japanese yen fell 0.5 percent to 109.72 per dollar, the weakest in a week.
                          Bonds
* The yield on 10-year Treasuries rose two basis points to 3 percent.
* Germany’s 10-year yield was little changed at 0.56 percent.
* Britain’s 10-year yield increased two basis points to 1.46 percent.
                          Commodities
* West Texas Intermediate crude increased 3.1 percent to $71.17 a barrel, the highest in more than three years.
* Gold slipped 0.2 percent to $1,311.72 an ounce.
–With assistance from Andreea Papuc, Yumi Teso, Christopher Anstey, Todd White, Samuel Potter and Janine Wolf.

Have a great night.
 

Be magnificent!

As ever,

Carolann

Every man desires to live long, but no man would be old.
                                     -Jonathan Swift, 1667-1745

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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www.carolannsteinhoff.com