November 7, 2017 Newsletter

Dear Friends,

Tangents:
November 7,1917 – Russian Revolution.

Joni Mitchell, b. 1943
Albert Camus, existentialist, b. 1913
On this day in 1944, President Franklin Delano Roosevelt is elected to an unprecedented fourth term. He remains the only president to have served more than two terms in office.
1885 – Donald Smith Drives in CPR Last Spike at Craigellachie, BC

As Winter Sets In, A Shrew’s Tiny Brain Gets Even Tinier
Bad news, bears. Hibernation is no longer the coolest thing animals do to survive the winter. 
  As cold weather approaches, tiny mole-like creatures known as red-toothed shrews will shrink their own heads, reducing their skull and brain mass by as much as 20%, according to new research.  When warm weather returns, they will regrow the region.  The study speculates that the shrinking helps them conserve energy when resources are scarce. -Douglas Quenqua, NYT.

Too many have dispensed with generosity in order to practice charity. –Albert Camus.
PHOTOS OF THE DAY

An abyss of red sea can be seen encompassing the adventurous diver, as he swims around the Cenote Carwash – a popular cavern just outside of Tulum, Mexico.  These incredible photographs show a diver exploring a darkening red sea, with just a small wrist flashlight to light up the way.

Rowers out on the River Cam in Cambridge, UK, as the temperatures hit minus 4 degrees.

A beautiful sunrise can be seen amidst a break from heavy rain in Galera Point, Trinidad. The area is where the Caribbean Sea and Atlantic Ocean meet.

Starling mumuration over Tarleton. Last dance before bed as tens of thousands of starlings gather over Martin Mere as the onset of colder weather, and early nights triggers this autumn gathering and winter groupings. The noise they make described as a mumur or chatter, but is quite intense and is thought to form part of a communication of sorts. The interaction between the huge numbers is amazing and is thought to be formed on the single principal of maintain a defined distance to nearest the bird.
Market Closes for November 7^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
     (Bloomberg) — Canada’s equity benchmark continued the rally that has seen it gain eight of the last nine trading days as health-care stocks jumped and telecom shares moved higher.
     The S&P/TSX Composite Index rose 36 points or 0.2 percent to 16,127.72 at 9:49 a.m. in Toronto, on track for a third consecutive record high. The health-care index was the biggest gainer by far, adding 6.3 percent as Valeant Pharmaceuticals International Inc. jumped 16 percent. Valeant maintained its profit forecast, indicating progress in its recovery plan.
     Telecom shares added 0.4 percent as BCE Inc. gained 0.3 percent. The company is buying Alarmforce Industries Inc. for about $166 million.
     In other moves:
                           Stocks
* Tahoe Resources Inc. tumbled 8.9 percent. The miner’s third- quarter loss was wider than the average analyst estimate
* Alaris Royalty Corp. fell 3.3 percent after reporting an unexpected third-quarter loss
* Cineplex Inc. lost 2.9 percent after revenue missed analyst estimates
* Alarmforce Industries Inc. surged 71 percent. BCE Inc. is buying the company for $166 million
* Finning International Inc. gained 2.3 percent after earnings per share and revenue beat estimates
                            Commodities
* Western Canada Select crude oil traded at a $14.00 discount to WTI
* Aeco natural gas traded at a 93-cent discount to Henry Hub
* Gold fell 0.2 percent to $1,279.20 an ounce
                            FX/Bonds
* The Canadian dollar weakened 0.6 percent to C$1.2777 per U.S. dollar as the greenback strengthened
* The Canada 10-year government bond yield fell two basis points to 1.90 percent, the ninth decline in 10 trading days
US
By Sarah Ponczek
     (Bloomberg) — Stocks fell while the dollar strengthened and Treasuries nudged higher as investors turned their attention to fiscal policy, with tax writers from the House of Representatives expected to hammer out their plan this week.
     The S&P 500 Index drifted lower, led by financial companies, which were the worst performing group in the gauge. The Stoxx Europe 600 Index slipped, erasing an earlier advance, but remained close to an all-time high. The Nikkei 225 Stock Average climbed to a level last seen more than 25 years ago.
     “Tax reform is the number one thing on everybody’s minds right now,” said Michael Hanson, the chief U.S. macro strategist at TD Securities in New York. “The Senate has indicated they’re going to announce their own bill Thursday, and that bill is extensively based off of the House bill, but there’s likely to be some important differences.”
     Equity indexes across the Persian Gulf were among the world’s worst performers amid a widening a crackdown on corruption in Saudi Arabia. The kingdom’s Tadawul All Share Index at one point fell the most in a year before regaining some of its losses. Oil slid from Monday’s climb, when it reached the highest price since June 2015.
     “The current news backdrop argues against any correction in the near future: the latest developments in Saudi Arabia justify a risk premium on the oil price,” commodity researchers at Commerzbank AG wrote in a note Tuesday. “President Trump has expressly approved the clean sweep, which is likely to encourage the king and crown prince in their plans to build on their power and to take action against Iran.”
     Investors’ focus on geopolitics sharpened further as President Donald Trump continued his tour of Asia. Speaking next to South Korean President Moon Jae-in in Seoul, Trump said he saw some progress on North Korea and called on the rogue state to “come to the table” and make a deal on its missile and nuclear program. He added that the U.S. and South Korea will act together to confront North Korea’s actions, and the U.S. stands ready to use its full range of military capabilities “if need be.”
     Elsewhere, industrial metals pared some of yesterdays gains and gold declined.
     Here are key events to watch out for this week:
* U.S. consumer sentiment probably cooled in early November from a more than 13-year high; the University of Michigan’s report is out on Friday.
* OPEC releases its World Oil Outlook.
* Argentina, Mexico, New Zealand, Malaysia and Thailand also have monetary-policy decisions this week.
* The European Commission’s chief Brexit negotiator Michel Barnier and U.K. Brexit Secretary David Davis resume talks.
* Earnings season continues with announcements from Walt Disney Co., Adidas AG, and Siemens AG. European financial companies set to report include Banca Monte dei Paschi di Siena SpA, Credit Agricole SA, Allianz SE and Zurich Insurance Group AG.

      And these are the main moves in markets:
                          Stocks
* The S&P 500 slid less than 0.1 percent to 2,590.64.
* The Stoxx Europe 600 fell 0.5 percent.
* Japan’s Nikkei 225 climbed 1.7 percent to the highest since January 1992.
* The MSCI Asia Pacific Index gained 0.9 percent to the highest in about 10 years.
* The MSCI Emerging Market Index jumped 0.3 percent to the highest in more than six years.
                           Currencies
* The Bloomberg Dollar Spot Index gained 0.3 percent.
* The euro decreased 0.2 percent to $1.159, the weakest since July.
* The British pound declined less than 0.1 percent to $1.3168.
* The Japanese yen fell 0.2 percent to 113.94 per dollar.
                            Bonds
* The yield on 10-year Treasuries slid less than one basis point to 2.3109 percent.
* Germany’s 10-year yield fell one basis point to 0.327 percent.
* Britain’s 10-year yield decreased three basis points to 1.231 percent.
                            Commodities
* West Texas Intermediate crude dipped 0.2 percent to $57.23 a barrel.
* Gold declined 0.4 percent to $1,276.53 an ounce.
* Copper fell 2.1 percent to $3.09 a pound, the lowest in a month.

Have a wonderful evening everyone.

Be magnificent!

When restraint and courtesy are added to strength, the latter becomes irresistible.
Mahatma Gandhi

As ever,

Carolann

I always find it more difficult to say the things I mean than the things I don’t.
                                                         -W. Somerset Maugham, 1874-1965

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Portfolio Manager &
Senior Vice-President

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

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