October 16th, 2013 Business & Market Update

The debate continues on in Washington as there are less than 15 hours remaining to get a budget and debt limit deal done.  Will it get done is the question and if it does what will it mean.  IF it doesn’t what are the ramifications.  It would seem that there are some in regard to this debate that do not care about the ramifications, which in my view is insanity.  However, my view does not count.  All we can hope for is cooler heads will prevail in the end.

Asia was mixed overnight as Japan was higher on a weaker yen and China sold off more than 1.8% on concerns with the US political fight.

Europe is lower by about a quarter point at midday once again on the US uncertainty.

In contrast, US futures are higher by about 0.75% on earnings news as both Bank of America and US Bank both beat estimates with good revenue numbers and decreases in loan losses.  As we go through the five year line on the 2008 decline, many of those bad mortgages are now off the books of many of the big US banks and balance sheets continue to strengthen.  Both stocks are mandate positions.

Gold is up 8 bucks to 1281, oil is lower by 0.13 to 101.07 and the loonie is stronger by 0.10 to 96.47.  Bond yields have been inching higher this week as the 10 year US and Canada bonds are yielding 2.74% and 2.66% respectively.

Bond rating service Fitch has put the US on credit watch with a negative bias, which was to be expected as the deadline on the debt ceiling continues to near.  I would expect Moody’s and S&P to do the same if no deal is reached today.

Lastly, the NYSE has scored a coup over Nasdaq by getting the listing for the new Twitter IPO due out later this year.  After the debacle at the Nasdaq last year when Facebook went public, the NYSE was the favored exchange going into the negotiations.

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

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management


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