October 17, 2019 Newsletter

Dear Friends,

Tangents:
On Oct. 17, 1931, mobster Al Capone was convicted of income tax evasion and sentenced to 11 years in prison. He was released in 1939. Go to article »
1989~ San Francisco earthquake.

R.I.P. Elijah Cummings

POINTS OF PROGRESS
AUSTRALIA
Starting next year, the country’s capital will be powered by 100% renewable energy.  Canberra will be the first city outside Europe to achieve this milestone.  Also, the Northern Territory has committed to reaching net-zero carbon emissions by 2050.  Prime Minister Scott Morrison has faced criticism, however, for his stance on climate change; observers say more must be done to protect the Great Barrier Reef.  Mr. Morrison did not participate in this year’s Climate Action Summit during the United Nations General Assembly. -The Australia Institute.

FRANCE
Forty-three climate scientists have relocated their research to France as part of a French-sponsored initiative.  James Clark arrived at the foot of the French Alps in the midst of a historic heat wave.  It was a fitting welcome, given his work.  The Duke University professor is one of the scientists who are part of the “Make Our Planet Great Again” initiative.  Launched in response to America’s withdrawal from the Paris climate agreement in 2017, MOPGA aims to draw top scientists from around the world to conduct climate-related research in French and German Labs. —   -Jingnan Peng/Multimedia producer.

UNITED STATES
For the first time, New York’s 136-year-old Metropolitan Opera will stage an opera written by a black composer.  Terence Blanchard’s “Fire shut Up in My Bones” will debut in an upcoming season.   The opera is based on a memoir written by a black journalist.  The Met’s general manager told a reporter for The New York Times that they are looking  improve their diversity of voices. -The New York Times.

GABON
Norway is giving Gabon $150 million to protect its rainforests.  Gabon has 90% forest coverage and contains 12% of the world’s second-largest rainforest.  It’s also home to more than half the continent’s forest elephants.  For almost 20 years, the country has taken steps to preserve its natural resources by creating more than a dozen national parks.  This United Nations -led partnership with Norway will further Gabon’s efforts.  The national forest minister says the government will be able to create more jobs while preserving natural resources. -Africa News

PHOTOS OF THE DAY

King Penguins are seen at Volunteer Point, north of Stanley in the Falkland Islands.
CREDIT:PABLO PORCIUNCULA BRUNE/AFP

An AI Gamer ‘Q56’ robot plays a video game during a demonstration at the Bandai Namco Holdings Inc. booth at the combined Exhibition of Advanced Technologies in Chiba, Japan.
CREDIT: KIYOSHI OTA/BLOOMBERG

A woman walks past a piece of art by Swedish artist Andreas Eriksson, during the press visit of the 46^th edition of the FIAC, Europe’s biggest contemporary art fair, at the Grand Palais in Paris.
CREDIT: ALAIN JOCARDI/AFP

The moon rises behind One World Trade Centre on a clear night in Lower Manhattan neighborhood of New York.
CREDIT: J. DAVID AKE/AP

Market Closes for October 17^th, 2019  

International Markets

Bonds

Currencies

Commodities

Market Commentary:
The British pound rose 0.8% against the U.S. dollar on Thursday, reaching a five-month high of $1.2987, after U.K. and EU negotiators struck a compromise agreement intended to ensure a border doesn’t appear on the island of Ireland after Brexit.

On this day in 1919, Radio Corporation of America was formed by General Electric lawyer Owen D. Young to control the “wireless” patents of GE, AT&T, and Westinghouse and to outflank the companies founded by Guglielmo Marconi. By 1929 it was the greatest growth stock in America, peaking at just under $575 a share—but by the end of that year it had lost 77% of its value.
Canada
By Aoyon Ashraf
(Bloomberg) — Canadian equities ended Thursday’s session little changed, even as pot stocks rebounded from Wednesday’s slump and materials got a boost from First Quantum Minerals. Consumer discretionary and communication services were among the worst sectors. The S&P/TSX Composite declined slightly to 16,426 in Toronto. The move follows the previous session’s increase of 0.1%. Royal Bank of Canada contributed the most to the index’s decline, decreasing 0.5%. Gran Tierra Energy Inc. had the largest drop, falling 5.5%. First Quantum rose 11%, and briefly rose the most in more than three years, after Pangaea Investment Management Ltd. said it acquired 6 million shares of the miner and may evaluate strategic transactions.

Commodities
* Western Canada Select crude oil traded at a $16 discount to WTI
* Spot gold rose 0.1% to $1,491.83 an ounce
FX/Bonds
* The Canadian dollar strengthened 0.5% to C$1.3143 per U.S. dollar
* The Canada 10-year government bond yield rose 1 basis point to 1.56%
Insights
* So far this week, the index was little changed
* This year, the index rose 15%, heading for the best year since 2016
* The index advanced 5.8% in the past 52 weeks. The MSCI AC Americas Index gained 6.4 % in the same period
* The S&P/TSX Composite is 3.1% below its 52-week high on Sept. 20, 2019 and 19% above its low on Dec. 24, 2018
* The S&P/TSX Composite is up 0.3% in the past 5 days and fell 2.4% in the past 30 days
================================================================
| Index Points | |
Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -21.5034| -0.4| 9/18
Consumer Discretionary | -4.9044| -0.7| 5/11
Communication Services | -3.8614| -0.4| 1/6
Utilities | -1.9127| -0.2| 5/10
Consumer Staples | -1.8035| -0.3| 4/6
Real Estate | -0.7405| -0.1| 10/15
Industrials | 0.1351| 0.0| 17/14
Energy | 1.9980| 0.1| 13/18
Information Technology | 2.5830| 0.3| 5/4
Health Care | 7.9542| 3.7| 8/2
Materials | 21.1582| 1.2| 44/5
US
By Claire Ballentine and Sarah Ponczek
(Bloomberg) — U.S. stocks climbed toward all-time highs amid a spate of mostly positive earnings reports. Doubts over whether a Brexit deal can win approval whipsawed the pound. The S&P 500 fluctuated for most of Thursday around the 3,000 level, while disappointing results from IBM caused the Dow Jones Industrial Average to lag the other main equity benchmark indexes. Morgan Stanley became the latest big bank to defy expectations for weak growth. Netflix’s international performance impressed analysts. “There’s no doubt there’s been some de-escalation of risk, global geopolitical economic risks relative to where we were two weeks ago,” said Michael Kushma, global fixed income chief investment officer at Morgan Stanley Investment Management. “But it may be just a false dawn. We don’t know yet. Our crystal ball is very cloudy at the moment.”
“The environment doesn’t support higher equity prices,” said Jeremy Zirin, head of Americas equities at UBS Global Wealth Management. “To move higher, markets have to get comfortable that you’re going to see a re-acceleration of earnings growth next year.” Risk appetite was stoked across the board earlier as the U.K. and European Union said they had agreed on a new withdrawal plan, but it quickly ebbed when a key Northern Irish party said it won’t vote for the deal. The Stoxx Europe 600 Index erased its gain. With doubts swirling over the Brexit deal’s chances of success, investors are also grappling with a mixed bag earnings from major European companies. Earlier in Asia, stocks fell in Tokyo, Sydney and Seoul, rose in Hong Kong and were barely changed in Shanghai. Taiwan Semiconductor, the primary chip supplier to Apple, projected current-quarter revenue ahead of analysts’ estimates. The Australian dollar strengthened after the country’s jobless rate unexpectedly fell and full-time employment climbed.
Here are some key events coming up this week:
* China releases third-quarter GDP, September industrial production and retail sales data on Friday.

Here are the main movers in markets:
Stocks
*The S&P 500 Index advanced 0.3% to 2,997.99 as of 4:02 p.m. New York time, the highest in more than three weeks.
*The Dow Jones Industrial Average increased 0.1% to 27,026.36, the highest in more than three weeks.
*The Nasdaq Composite Index climbed 0.4% to 8,156.85, the highest in more than three weeks.
*The Stoxx Europe 600 Index declined 0.1% to 393.08.
Currencies
*The Bloomberg Dollar Spot Index fell 0.4% to 1,199.72, the lowest in almost 12 weeks.
*The euro advanced 0.5% to $1.1126, the strongest in more than seven weeks on the biggest rise in almost four weeks.
*The Japanese yen strengthened 0.1% to 108.63 per dollar.
*The British pound gained 0.3% to $1.2869, the strongest in five months.
Bonds
*The yield on two-year Treasuries increased one basis point to 1.60%.
*The yield on 10-year Treasuries gained one basis point to 1.76%.
*Germany’s 10-year yield fell two basis points to -0.41%, the largest fall in more than a week.
*Britain’s 10-year yield decreased four basis points to 0.677%.
Commodities
*West Texas Intermediate crude gained 1.2% to $54.01 a barrel.
*Gold strengthened 0.1% to $1,492.20 an ounce.
Have a great night!

Be magnificent!
As ever,

Carolann

If faith asks, it will receive; if hope seeks, it will find; and if love knocks,
the door will be opened to it.
                                                   -Charles Spurgeon, 1834-1892

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