November 4th, 2103 Business & Market Update

A light overnight session as China was closed for a holiday.  Japan was off about a point on continued US dollar strength.

Europe is up about a half a point at midday on continued positive factory data, however deflation is still a problem and it will be interesting to see what Mr. Draghi has to say this week in his monthly presser in regard to a more accommodative stance.

Futures in the US and Canada are pointing higher this morning by about a third of a point as traders position themselves going into the employment numbers that are due out Friday.

Gold is up a couple of bucks 1317, oil is down 0.34 to 94.28 and the loonie is stronger by 0.12 to 96.09.  The 10 year bonds in the US and Canada are both trading higher this morning with yields at 2.60% and 2.48% respectively.

Lastly this morning, it would seem that the Fairfax team couldn’t get the financing together for the Blackberry purchase that was to close today, so they have done the following:  Fired the CEO, brought in John Chen (former Sybase exec to run it), Watsa is now on the board, float a $1bn convertible bond which Watsa and Fairfax and some other investors will invest in and keep the company a public entity.  It would seem the street is not to happy with it as the stock is trading down in the pre-market about 18%.  Interestingly, the stock price is now getting to a level where the company is trading for the cash in bank.  It will be interesting to see where it goes today and to further disseminate the news.

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

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management