October 12, 2017 Newsletter

Dear Friends,

Tangents:

On this day in 1810, the German festival Oktoberfest was first held in Munich.
On Oct. 12, 2000, the Navy destroyer Cole was attacked in an al-Qaeda suicide bombing while in port in Aden, Yemen, killing 17 sailors and injuring dozens more.
Go to article »
October 12, 1970 – Canadian Army troops from Camp Petawawa deploy in Ottawa to meet FLQ terrorist threats
October 12, 1999 – World population reaches 6 billion.

POINTS OF PROGRESS:

THE NETHERLANDS
All Dutch trains are now powered by the wind.  In January, Dutch railway company NS switched to using wind power, generated from newly constructed wind farms, for 100% of the energy it needs to move roughly 600,000 daily passengers.  The decision means that NS has cut carbon emissions equivalent to those emitted by the annual production of electricity for Amsterdam.  On Jan. 1,2018, all major Dutch airports will begin getting all their electricity from wind power.  –CLEAN TECHNICA

AUSTRALIA
The land Down Under now generates enough renewable energy to power 70 % of its homes.  Despite the ramp up in output, renewable contribute only 18.8 % of energy to the national grid, which fossil fuels still dominate.  However, the steep uptick in renewable generation in recent years means that Australia will reach its goal to have 20 % of its energy come from such sources by 2018, instead of its original 2020 target.  When renewable energy started in 2016-17 are completed, there will be enough renewable energy to power 90 % of homes.  TREEHUGGER, FUTURISM.

LOS ANGELES
Animal shelters in the City of Angels may soon reach “no kill” status.  Thanks to the No-Kill Los Angeles movement, led by Best Friends Animal Society and a small army of volunteers, the rate at which homeless animals are  put down has plummeted in the city since NKLA started in 2012.  That year, the city’s shelters euthanized 18,000 cats and dogs, but in 2016 that number fell by 82 % to 3,236.  Working with a network of groups across the city, NKLA aims to make Los Angeles a no-kill city by year’s end. –LOS ANGELES TIMES.
PHOTOS OF THE DAY

In this aerial image, volcanic ash spews from the crater of Mt. Shinmoedake in Kirisima, Kagoshima, Japan. The eruption sends a plume of ash 300 meters into the air. The volcano, part of the Kirishmia range in southern Kyushu, straddles the border of Miyazaki and Kagoshima prefectures. It previously erupted September 7, 2011.
CREDIT: THE ASAHI SHIMBUN VIA GETTY IMAGES

All gardens need a sprucing up after the summer, and this week marks the end of the four-week-long task at the home of Lord Barnard – Raby Castle in Teesdale, County Durham. A team of gardeners using shears, hedge trimmers and a cherry picker have been cutting the curvaceous, evergreen Old English Yew hedges that date back to the 18^th century and dominate the ornamental walled garden of the medieval fortress of Raby Castle. Pictured is Gardener Craig Nodding using a cherry picker and hedge trimmer to delicately clip the 4 metre high Old English Yew, which date back 300 years.

Lights from 2,807 LED form the number “15” on the twin domes of Singapore’s Esplanade. Esplanade, Theaters on the Bay, will be projecting the light show from Oct. 12 to 31 as part of its 150^th anniversary celebrations.
Market Closes for October 12^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks fell the most in five weeks as energy shares tumbled following a bearish report on crude prices from the International Energy Agency.
     The S&P/TSX Composite Index lost 58 points or 0.4 percent to 15,742.20, the biggest drop since Sept. 5. The energy sector fell 1.1 percent, closely tracking the 1.4 percent decline in West Texas Intermediate crude prices. The IEA said progress in clearing the global oil glut may stall next year.
     Consumer staples were the biggest gainers, adding 1.3 percent as Alimentation Couche-Tard Inc. jumped 3.9 percent. The company is buying back 4.4 million shares from Metro Inc., a move that Eight Capital called “an elegant solution.”
     In other moves:
                            Stocks
* Kirkland Lake Gold Ltd., the best performer on the S&P/TSX this year, fell 8.9 percent. The stock was downgraded by two analysts after third-quarter production results missed estimates
* Shaw Communications Inc. lost 3.7 percent. Scotia Capital downgraded the stock, saying Shaw will need to spend more to make its wireless network “truly competitive”
* Canopy Growth Corp. fell 3.8 percent. The stock was cut to sell at Canaccord Genuity
                           Commodities
* Western Canada Select crude oil traded at an $11.15 discount to WTI
* Aeco natural gas traded at a $2.08 discount to Henry Hub
* Gold rose 0.6 percent to $1,293.30 an ounce
                           FX/Bonds
* The Canadian dollar weakened 0.1 percent to C$1.2473 per U.S. dollar, its first decline in three trading days
* The Canada 10-year government bond yield fell three basis points to 2.08 percent, the biggest drop this month
US
By Jeremy Herron and Sarah Ponczek
     (Bloomberg) — U.S. stocks retreated and the dollar rose slightly as investors weighed the prospects for tax reform and the Federal Reserve’s next policy move. Crude slumped following an inventory report.
     The S&P 500 Index traded lower and pulled back from an all- time high as energy producers slid with oil nearing $50 a barrel and telephone shares sank after AT&T Inc. reported a substantial loss of video subscribers in the third quarter. JPMorgan Chase & Co. and Citigroup Inc. were lower after reporting third-quarter results.
     The dollar was higher for the first time this week, while Treasury yields fell after data showed a spike in gasoline costs pushed wholesale prices higher by the most in five months. The pound slumped after Brexit talks were said to reach a deadlock. The yen edged higher versus the dollar, showing little reaction after Bank of Japan Governor told reporters in Washington that he intends maintain stimulus to hit an inflation target of 2 percent. Bitcoin surged to a fresh record, climbing above $5,300.
     The Trump administration’s tax plan remains nebulous, as the president was said to voice frustration with certain aspects of the existing framework. Some Congressional Republicans have aired concerns, while Treasury Secretary Steven Mnuchin reiterated his confidence that a plan will get passed this year. In the meantime, investors will look to consumer price data Friday for the latest clue on inflation in attempts to assess the Fed’s next move.
     “We are very much keeping an eye on the potential tax reform process,” Dennis DeBusschere, head of portfolio strategy at Evercore ISI, said by phone. “The other thing we’re focusing on is all indicators of inflation, especially post-CPI tomorrow.”
     The selection of Fed Chair Janet Yellen’s replacement is also coming into focus. President Donald Trump is meeting this week with Stanford University economist and rates hawk John Taylor, who’s on the shortlist of candidates, according to people familiar.
     Meanwhile, the European Union said scant progress has been made in the latest round of Brexit talks, increasing the chances of a messy departure as time is running out to clinch a deal. Lack of sufficient progress adds to pressure on businesses to speed up contingency plans for what could be a chaotic withdrawal in March 2019.
     West Texas oil extended losses after three days of gains. Crude stockpiles will fall this year for the first time since prices slumped four years ago, the IEA said Thursday. Gold climbed for a fifth day. In Asia, Japanese stocks extended gains, with the Nikkei 225 Stock Average ending at the highest level since 1996.
     What’s coming up this week:
* The active Atlantic hurricane season will probably figure prominently in U.S. data on retail sales and consumer prices.
     Here are the main moves in markets:
                             Stocks
* The S&P 500 Index declined 0.2 percent to 2,550.93, and the Nasdaq Composite Index also fell 0.2 percent.
* JPMorgan slipped 0.9 percent and Citi lost 3.4 percent.
* The Stoxx Europe 600 Index was little changed.
* The MSCI All-Country World Index rose less than 0.1 percent to a record.
* The MSCI AC Asia Pacific Index jumped 0.4 percent to the highest in about 10 years.
* Japan’s Topix index gained 0.2 percent to 1,700.13, the highest in more than 10 years.
* The MSCI Emerging Market Index sat at the highest in more than six years.
                             Currencies
* The Bloomberg Dollar Spot Index gained 0.1 percent.
* The euro dipped 0.2 percent to $1.1835.
* The British pound rose 0.3 percent to $1.3262.
* The Japanese yen advanced 0.2 percent to 112.28 per dollar, the strongest in more than two weeks.
                             Bonds
* The yield on 10-year Treasuries decreased three basis points to 2.3177 percent, the lowest in two weeks.
* Germany’s 10-year yield fell two basis points to 0.445 percent.
* Britain’s 10-year yield was little changed at 1.381 percent.
* Japan’s 10-year yield was essentially unchanged at 0.062 percent, the highest in two weeks.
                             Commodities
* West Texas Intermediate crude declined 1.3 percent to $50.65 a barrel.
* Gold increased 0.1 percent to $1,293.45 an ounce, the highest in more than two weeks.

Have a wonderful evening everyone.

Be magnificent!

Nonviolence and cowardice go ill together.
I can imagine a fully armed man to be at heart a coward.
Possession f arms implies an element of fear, if not cowardice.
But true nonviolence is impossible without the possession of unadulterated fearlessness.
Mahatma Gandhi

As ever,

Carolann

Write what should not be forgotten.
            -Isabel Allende, b. 1942

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

Tel: 778.430.5808
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