E Trump's Kvittle

I will head for Britain in early June so my husband can vote in the June 8 poll. I had hopes of learning more about the Royal Bank of Scotland 2008 capital increase, over which over 9000 British individual and institutional investors in RBS were suing the bank and its ousted management. However over the weekend current management offered 80 pence in special compensation to those who had subscribed based on the misleading terms. This will of course further delay the eventual privatization of RBS (and Nat West C) by the UK Government. But we own the RBS non-cumulative preferreds, and we like the delay because Her Majesty is standing behind our prefs.

The Trump dump which started last week in stocks is continuing in currency markets. The Greenback is off 0.93% in euros; 0.78% in sterling; 0.65% in loonies and Mexican pesos; and the Israeli shekel hit at a 3-yr high in dollars as Pres. Trump flew in. I am trying to guess what he wrote on the slip of paper he put into the cracks on the Wailing Wall, as the first US President to visit the site while in office. I wonder what he wrote on his "Kvittle"?

The President should not be blamed for all the fall in our currency, because even before he hit the scene the US$ was up way over trend, and near its 1985 peak. To revive industry, as Trump proposes, he needs a cheaper currency.

This is of course good news for those who are into foreign shares, especially ones which are not linked to dollar earnings. We typically invest abroad without currency hedges. You can see the divergence most clearly in the market to our north, in Canada, which is most roiled by the impact of US$ forex moves. We discuss the currency trend there and also examine news from Israel, Australia, Argentina, Chile, South Africa, Mexico, Brazil, Japan, Hong Kong, India, Ireland, Sweden, Britain, Switzerland, Spain, and Cuba.

O Canada!

*Computer Modelling (CMDXF) lost 4.44% yesterday in pre-market trading in Canada after it posted Q4 and full-yr results after Friday's close. The hydrocarbons reservoir simulation firm Q4 earnings came in below forecasts at 7 cents/sh on sales which were up 0.03% to C$19.058 mn. Its unadjusted Q4 earnings were minus C$24.6 mn but reflected one-offs. Its full year revenues fell by 10% mainly because of problems in Venezuela and Canada, to C$75.1 bn, so its growth in Asia and the Middle East and flat US business was insufficient to overcome this. G&A spend by 7% and lowered staffing levels. Contracts with oil explorers in emerging markets in particular are lumpy from quarter to quarter and include deferred revenue on contracts in force.

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