September 25, 2017 Newsletter

Dear Friends,

Tangents: Happy Monday!

1956, The first trans-Atlantic telephone cable went into service.
Also on this day in…
1789, the first Congress of the United States passes twelve amendments to the Constitution, and sends them to the states for ratification. Ten of the amendments are ratified and become known as the Bill of Rights.
1981, Sandra Day O’Connor was sworn in as the first female justice on the U.S. Supreme Court.

POINTS OF PROGRESS:

KENYA: now has one of the toughest bans on plastic bags in the world.  Effective August 28, 2017, a new law aims to  eliminate the ubiquitous items, which clog oceans and kill marine life.  The rule will punish those manufacturing, selling, or importing plastic bags with as many as four years in prison or a $19,000 to $38,000 fine.  Kenyan shoppers are estimated to use 100 million plastic bags per year. –The New York Times.

INDIA: Muslim men can no longer dissolve their marriage by uttering three words.  For centuries, Muslim men here only had to say the Arabic word “talaq” (divorce) three times to divorce their wives, while women had to obtain a husband’s consent.  But on August 22^nd, India’s five-member Supreme Court declared that law unconstitutional in a 3-to-2 decision, placing  a six-month block on the practice pending a parliamentary debate on a law to ban it permanently.  The country is home to 172 million Muslims, 14% of its population. –The Washington Post, Los Angeles Times.
PHOTOS OF THE DAY

Startling photos show a cluttered housing block reaching towards the sky in Hon Kong. Made up of wildly different looking flats, it almost appears as if the apartments have been added on ad-hoc as buildings close in on all sides. The pictures of the Yick Cheong building in Quarry Bay, Hong Kong hint at the extraordinarily crowded living conditions in the city.  Professional photographer Jesus M. Garcia, travelled half way around the world from his home in the city of Toledo, Spain, just to capture the amazing scene.
CREDIT: JESUS M.GARCIA/SOLENT NEWS & PHOTO AGENCY

On your bike. This mantis looks to be riding a bicycle but is in fact climbing up two stems. Taken alongside the Po river in Province of Reggio Emilia, Italy, photographer Alberto Ghizzi Panizza was walking along the river bank when he spotted the insect. Alberto did not see the connections to the mantis looking like was riding a pedal cycle until he looked at the picture back at his computer. Alberto said, ‘I just spotted this mantis on this plant and I tried to take the most interesting pictures of it. A lot of people are scared of mantis but they are harmless to people. So I love to have taken this nice photo of this wonderful insect’.
CREDIT:  ALBERTO GHIZZI PANIZZA/SOLENT NEWS & PHOTO AGENCY

The Great Sheep Drive of London Bridge & Wool Fair 2017.  Mary Berry CBE, TV Presenter and Cook, and Liveryman driving sheep over London Bridge, London, UK.
CREDIT: PAUL GROVER FOR THE TELEGRAPH
Market Closes for September 25^th, 2017

International Markets

Bonds

Currencies

Commodities

Market Commentary:
Canada
By Kristine Owram
     (Bloomberg) — Canadian stocks extended their latest advance, propelled by rising oil prices that pushed energy shares to their highest in more than three months.
     The S&P/TSX Composite Index added 62 points or 0.4 percent to 15,516.23, its highest close since May. The benchmark has now gained for seven of the last eight days.
     The energy sector, which accounts for one-fifth of the Canadian index, rose 1.5 percent. West Texas Intermediate crude prices jumped 3.1 percent, the most since April, as Turkey threatened to shut down Kurdish oil shipments through its territory. Ensign Energy Services Inc. gained 7.6 percent and Crew Energy Inc. added 5.9 percent.
     In other moves:
                         Stocks
* B2Gold Corp. jumped 8.9 percent after being upgraded at Eight Capital and National Bank
* Cascades Inc. lost 7.8 percent. The company was downgraded at CIBC
* Bombardier Inc. fell 4 percent. Germany’s Siemens AG is exploring a rail-equipment deal with Alstom SA after months of talks with Bombardier
                        Commodities
* Western Canada Select crude oil traded at an $11.30 discount to WTI, the narrowest gap in more than two weeks
* Aeco natural gas traded at a $2.06 discount to Henry Hub
* Gold rose 1.1 percent to $1,307.10 an ounce, the biggest gain this month
                         FX/Bonds
* The Canadian dollar weakened 0.3 percent to C$1.2379 per U.S. dollar, the lowest in three weeks
* The Canada 10-year government bond yield fell two basis points to 2.09 percent
US
By Eric J. Weiner
     (Bloomberg) — U.S. stocks fell as selling in large-cap technology shares intensified, while Treasuries advanced with gold after North Korea ratcheted up tensions with America.
     The Nasdaq 100 Index posted its steepest loss in five weeks, with the FANG cohort of megacaps leading declines. Small- cap shares fared better as investors continued to rotate into the year’s laggards. Haven assets advanced after North Korean Foreign Minister Ri Yong-Ho described President Donald Trump’s recent comments as tantamount to a declaration of war.
     “Without a doubt, North Korea is hovering over the market, but it sort of zigs and zags onto the scene,” said Quincy Krosby, chief market strategist at Prudential Financial Inc. “What you are seeing is those tech names pulling back. The fact is that right now, you have a fully valued market and little catalysts at this point to push the market higher. ”
     Ri, speaking in New York Monday, also declared that North Korea can shoot down U.S. warplanes as part of its right to self-defense under the United Nations charter, adding to weeks of rhetoric that has intermittently rattled financial markets. U.S. markets also kept an eye on the latest domestic political developments, with the most recent effort to overhaul the health-care system on life support and a Republican tax proposal still lacking details.
     Elections dominated trading overseas. The Stoxx Europe 600 Index climbed, and the euro weakened after Chancellor Angela Merkel won Germany’s election, while the country’s main far- right party had a surprisingly strong result. The process of building a new government could take weeks, so markets may well move on from the result quickly.
     “Investors were expecting a victory for Angela Merkel, but there has been a surprise in the relatively poor performance of the CDU and SPD, who suffered their worst results since 1949,” Nick Peters, multi asset portfolio manager at Fidelity International, wrote in a note.
     The yen stayed weaker as Japan’s prime minister unveiled a fresh stimulus package and said he’ll dissolve the lower house of parliament ahead of a general election. Most government bonds advanced.
     What to watch out for this week:
* Fed Chair Janet Yellen speaks in Cleveland on Tuesday. Later in the week, Bank of England Governor Mark Carney speaks, as does soon-to-depart Fed Vice Chairman Stanley Fischer.
* European Union chief Brexit negotiator Michel Barnier and U.K. counterpart David Davis begin their next round of negotiations.
* Household spending last month in the U.S. probably posted the smallest gain since February as motor-vehicle sales shifted into a lower gear, economists forecast government figures to show.
* The euro-area inflation rate may have accelerated a touch to 1.6 percent in September from 1.5 percent but the core will probably remain at 1.2 percent on Friday.

      Here are the main moves in markets:
                           Stocks
* The S&P 500 Index fell 0.2 percent to 2,496.66, the Nasdaq Composite Index lost 0.9 percent, the Dow Jones Industrial Average slid 0.2 percent and the Russell 2000 gained less than 0.1 percent after rising to a record high earlier in the session.
* Stoxx Europe 600 climbed 0.2 percent to the highest since July.
* The MSCI All-Country World Index declined 0.4 percent to the lowest in two weeks.
                           Currencies
* The Bloomberg Dollar Spot Index climbed 0.4 percent to the highest in more than three weeks.
* The euro dipped 0.9 percent to $1.1847, the weakest in a month.
* The British pound slipped 0.3 percent to $1.3466.
                           Bonds
* The yield on 10-year Treasuries dropped three basis points to 2.2198 percent.
* Germany’s 10-year yield declined five basis points to 0.399 percent.
* Britain’s 10-year yield fell two basis points to 1.334 percent.
                           Commodities
* Gold jumped 1 percent to $1,310.25 an ounce.
* West Texas Intermediate crude rose 3 percent to $52.18 a barrel, the highest since April.
                            Asia
* Japan’s Topix index advanced 0.5 percent at the close in Tokyo. Australia’s S&P/ASX 200 Index ended virtually unchanged and South Korea’s Kospi index slid 0.4 percent.
* The Hang Seng Index in Hong Kong fell 1.4 percent with Chinese property developers slumping after several cities on the mainland tightened rules on home sales.
* The Japanese yen fell 0.2 percent to 112.22 per dollar.

Have a wonderful evening everyone.

Be magnificent!

Though they may take various roads, all are on the way.
Swami Vivekananda

As ever,

Carolann

Tact is after all a kind of mind reading.
   -Sarah Orne Jewett, 1849-1909

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
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com