October 23rd 2013 Business Update

It would seem that real estate news out of China yesterday spooked investors in Asia and Europe in regard to a possible tightening of monetary policy in the region.  Markets in Asia were off about 1.5% overnight.  In Europe markets are lower by about a point at midday on the Asian news and the fact the ECB will holding financial institutions to a higher level of disclosure when it comes to capital requirements.  This is a good thing in my view longer term as it will breed more confidence in the Euro banks, however the short-term view is less profitability for these institutions.

US Futures are off about a third of a point and Canadian futures are down about a quarter point.

Gold is retreating this morning down 8.00 to 1333 as is oil down more than 1% to 96.80.  The loonie is off 0.34 cents this morning to 96.85.  Bonds are up slightly with US and CDN 10 year yields at 2.50% and 2.46% respectively.

In mandate earning news, CNR reported after the close last night and beat estimates by about 10% on earnings and about 5% on revenues.  The all important operating ratio feel below 60% to 59.8% which shows continual improvement (the lower the number the better).  Carloads and tonnage were both up more than 3% and the company will buy back more than 15 million shares over the next year.  The stock will open higher about 2% this morning according to the pre-market.

The Bank of Canada will release its policy statement this morning at 11am EDT and the assumption is nothing much will come of it.  If there is anything interesting worth getting out I will send another mail later today.

Lastly, yesterday was Apple day as the company announced the new iPad Air for the holiday season.  The lower priced and not as heavy tablet boast loner battery power and higher resolution.  Not really a big Apple announcement by any means.  It would seem that the company needs some “wow” factor to continue the run it has been on the last while.

Kenneth A. Dick, BA, CIM, CFP, FCSI

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management

www.glwm.ca

July 17th, 2013 Business & Market Update

Today is the day of central bankers as Mark Carney – BOE Governor, Stephen Poloz – BOC Governor and Ben Bernanke – FOMC Head all are providing guidance on monetary policy for each of their respective countries.  Carney has already made his comments and basically is leaving the current asset buying program and interest rates as is.  Poloz and Bernanke are due to speak later this morning and I would suggest that Poloz will do nothing and Bernanke will continue to put the clarify the tapering program parameters (employment levels, inflation levels etc.).  His testimony to congress starts at 10am EDT however the minutes of the speech have been released.  Highlights of the speech, the US economy is still vulnerable to outside shocks (Europe, China etc.), employment is far from satisfactory and bond purchases are not on a pre-set course.  Markets did not move substantially on the remarks but did move slightly higher.

Staying with the US, Housing Starts and Permits both missed by large margins in June which most of which is attributed to the increase in mortgage rates, the weather and supply issues in the South.

In earnings news, mandate companies Mattel and US Bank reported this morning. Mattel missed in both earnings and revenue while US Bank beat on earnings and missed on revenue.

In Asia overnight markets were mixed with China down about a point and Japan flat.

Canadian markets are poised to open higher by about a half a point anticipating no change to the BOC policy position.

Gold is up a couple of points to 1294, oil is higher by 9 cents to 105.77 and the loonie is flat at 96.30.

Kenneth A. Dick, BA, CIM, CFP, FCSI

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management

http://www.canaccord.com/

June 6th, 2013 Market Update

After the big hit in North America on the ADP Jobs report yesterday we are seeing a relatively flat opening on the way.  Japan was off a point in sympathy with the North American decline as was China.

In Europe markets are higher by a quarter point at midday on bargain hunting and the fact the BOE and ECB are both leaving the asset purchase programs and interest rates alone basically playing the wait and see game going into the summer.

In the US, Initial Jobless Claims came in down 11000 to 346000 last week which is a good number, but really failing to move markets in that the Non-Farm Payrolls are being released tomorrow morning.  Futures in the US are virtually flat this morning.

The new Bank of Canada Governor Stephen Poloz is giving his inaugural talk to the finance committee this morning and I managed to last about 10 minutes until I started to dose off.  It would seem we have in knack in this country of appointing the most boring, dry bank governors on the planet to the job.  Nothing new is coming out of his mouth and it looks like he is doing the right thing and staying the course for now.

Gold is off slightly to 1400, oil is up 1% to 94.62 and the loonie is down 12 bps to 96.60.

Kenneth A. Dick, BA, CIM, CFP, FCSI

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management

www.glwm.ca