Your Financial Future Secured Today

Because Tomorrow Never Comes...

CI Associates
Financial
Week 49
27th November 2017

GREEN BUSINESS NEWS

German Wind Power Beats Hard Coal,
connections
Nuclear Power for First Time

Power generated this year by onshore

and offshore wind in Germany
exceeded the amount of electricity
coming from hard coal and nuclear
plants for the first time, the Fraunhofer
ISE institute said on its website.
German coal plant operators choked
generation from hard coal plants in
favor of cheaper-to-run lignite units
this year and nuclear power operators
kept plants like Grundremmingen B,
which were offline for extended periods,
Bruno Burger, a professor at Freiburg-
based Fraunhofer ISE, said by phone
on Friday.
Lignite generation rose 0.3 percent
to about 117 terawatt-hours so far
this year, highlighting the addiction
of utilities to one of the cheapest and
dirtiest forms of energy, said Burger.
Hard coal
generation
dropped 14
percent to 69.3
terawatt-hours,
he said.
Onshore and
offshore wind
power has
an installed
capacity of about
54 gigawatts
-- outstripping all
other main sources of power capacity.
About 46 percent of Germanys
generation came from wind farms on
Thursday, according to Wind Power
Europe.
Market Highlights
Oil Rally, Holiday Retail Push U.S. Stocks Higher
A rally in oil and optimism at the mall buoyed U.S. stocks to a record at the traditional start of the American holiday
shopping season. Retailers sought to build on positive earnings as consumers descended on stores looking for Black
Friday bargains. Meanwhile, West Texas crude reached a two-year high, boosting shares in energy companies. Macys
Inc., and Amazon.com Inc. were among the S&P 500 Indexs top performers in a shortened post-Thanksgiving session,
as were Hess Corp. and Marathon Oil Co. Stocks in Europe pared earlier gains as the euro headed for a two-month high,
while bonds fell as Germany moved closer to ending a political impasse and business confidence in the regions biggest
economy improved. Higher Treasury yields werent enough to sustain early gains in the dollar, which headed for a third
weekly loss.
Chinese Stocks to Remain Under Pressure After Rout, Analysts Say
Chinese shares continue to reel after their worst day in more than a year, and the pain is likely to persist as
liquidity conditions tighten. Credit Suisse Group AG analyst Li Chen is among those blaming bond market
volatility for the sudden turmoil in equities, warning that fixed-income rates are likely to remain elevated for
the rest of this year, the day after a gauge of large-cap A shares plummeted the most since June 2016. The
rising rates make A shares less attractive to banks and insurance institutions, and also give some investors
legitimate reasons to take profits now, Chen wrote in a note Friday.
European shares snap two-week losing streak as DAX gains
European shares ended little changed on Friday, underpinned by gains among heavyweight financial stocks,
which helped the pan-European STOXX 600 index snap a two-week losing streak. The STOXX 600 ended 0.1
percent down but rose 0.7 percent on the week, while the export-heavy German DAX .GDAXI index advanced
0.4 percent, shrugging off strength in the euro. The growing prospect of a grand coalition in Germany boosted sentiment
that had kept the DAX stuck around the 13,000-point level for the past two weeks. Theres a lot of impetus there to
resolve the situation without recourse to another election, said City Index market analyst Ken Odeluga. Germanys Social
Democrats said that they were ready to hold talks with other parties on breaking the political deadlock. The German
political crisis is not really looking very crisis-like, Paul Donovan, chief economist at UBS Wealth Management, said in a
note.

TERMINOLOGY :
Audit
An audit is an objective examination and evaluation of the financial statements of an organization to make sure that the records are a fair and
accurate representation of the transactions they claim to represent. It can be done internally by employees of the organization, or externally
by an outside firm. The IRS can perform audits to verify the accuracy of a taxpayers returns or other transactions. When an audit is being
preformed by the IRS, it usually carries a negative connotation and is seen as evidence of some type of wrongdoing by the taxpayer.
www.ci-associates.com

CI Associates, Caledonian House, Golda Meir 79 , Las Condes, Santiago, Chile

 How a Reverse Mortgage Can
Benefit You in Retirement - 1
There are few terms in the finance industry
more reviled in the minds of the general
public than reverse mortgage. However, as
is often the case in the world of finance, long-
held perceptions and biases are not always
reflective of the financial reality of todays
economy and, as a result, can be counter-
productive.
Regardless of what you think you
know about reverse mortgages,
and barring some new revolutionary
change in the world of retirement
income sources, these products will
likely be an absolute must for many
Americans in the coming years.
Therefore, it is a mistake for retirees
and pre-retirees to shun this option
without doing some research. By
gaining a deeper knowledge about
how they work, they can determine if
a reverse mortgage might have some
value for them going forward.
To understand todays environment,
we first take a brief trip into the past.
Since the days of the homesteaders,
the family-owned house has been the
quintessential icon of security and prosperity
in our nation. It was a tangible asset that
protected us from the elements, was a
gathering and living place for our extended
families, and said something about our social
class in society.
Our home (or quite often, farm) was the place
where several generations lived, worked and
cared for each other. Wives and daughters
often stayed in the home and took care of
parents and grandparents as they aged. In this
environment, the idea that the house could
provide an income stream in retirement never
even occurred to people.
They were able to live off what they produced
or worked to earn, and they had enough
family members at home to care for the
elders when they could no longer work.
Also, life expectancies were so much shorter
that planning for a 20-, 30- or even 40-year
retirement was completely unnecessary.
How Homeownership and Retirement Have
Changed
Today, things look very different. Rarely do
we see children living with aged parents or
grandparents anymore. Wives and daughters
are not expected to stay home to care for their
elders, but to become a part of the workforce.
Homes are infrequently held for many
generations, instead they are sold on average
every 5.9 years. In the past 100 years, life
expectancies have increased by over 30 years,
resulting in the need to acquire significantly
more assets to fund these non-working years.
CI Associates, Caledonian House, Golda Meir 79 , Las Condes, Santiago, Chile
Commodities
Oil ends at more than 2-year peak on bullish bets ahead of OPEC confab
U.S. oil prices rose on Friday, settling at a 21/2-year high, as investors focused on a disruption to
a major crude-oil hub in Oklahoma and looked ahead to a key meeting of the Organization of the
Petroleum Exporting Countries next week. West Texas Intermediate crude oil trading on the New York
Mercantile Exchange for January delivery CLF8, +1.64% finished up 93 cents, or 1.6%, at $58.95
a barrel. For the week, WTI crude oil, the U.S. benchmark, closed with a weekly climb of 1.8%,
according to FactSet data.
December gold settles lower, books 1st weekly drop in three weeks
Gold futures closed modestly lower on Friday, in shortened trade following the
Thanksgiving holiday Thursday. December gold GCZ7, -0.33% settled down $4.90,
or 0.4%, at $1,287.30 an ounce. After an up-and-down week, the yellow metal logged
a roughly 0.7% weekly decline, marking its first weekly decline in three weeks,
according to FactSet data. The exchange-traded SPDR Gold Trust GLD, -0.25%
meanwhile, slipped 0.2%. Metals markets settled at 12:30 p.m. Eastern on Black
Friday.
BASF in talks with LetterOne over oil-and-gas deal
BASF SE said Friday that it is discussing a potential merger of its oil-and-gas
activities with those of DEA, which belongs to LetterOne. In such a combination,
BASF would hold the majority of the shares, BASF said. It added that an initial public
offering of the enterprise would be an option in the medium term. The outcome
of the discussions is open and there is no assurance that any transaction will be
consummated, BASF said. BASFs oil-and-gas activities are part of Wintershall,
which focuses on exploration and production.
International Economy
United States and Canada
Dollar near two-month low as strong economic data underpins euro
The dollar fell to its lowest since late September against a basket of currencies on Friday as
investors grew optimistic about the strength of the euro zones recovery and lost appetite for the
greenback. The euro hit its highest since Sept. 25 against the dollar, up 0.65 percent on the day
and more than 1 percent for the week. It was the single currencys third straight week of gains, its
best run since July, and second straight 1 percent weekly gain. Against the Japanese yen, the euro
rose more than 1 percent to 1.3323, its highest since Nov. 16. You had good data (this week) from
Europe, pretty good news from Germany and nobody guarding the dollar as were all eating turkey,
said John Doyle, director of markets at Tempus Inc in Washington.
Canadian Stocks Close Near Record
Canadian stocks closed near a record high amid higher oil prices and retail optimism, with all
but one sector in the green. The S&P/TSX Composite Index gained 34 points or 0.2 percent
to 16,108.09, the highest in nearly three weeks. The weekly gain was 0.7 percent. Consumer
discretionary stocks added 0.6 percent as Black Friday deals drew shoppers to bricks-and-mortar
stores. Dollarama Inc. rose 1.2 percent. The energy sector gained 0.3 percent as the price of crude
jumped 1.6 percent. Russia and OPEC have reportedly reached the outline of a deal to extend
production cuts.
S&P 500, Nasdaq close at records, book weekly gains
The S&P 500 and Nasdaq Composite finished at all-time highs Friday, with all three main
benchmarks booking their first weekly gains in three weeks. Retailers were in focus amid the Black
Friday shopping holiday, a day after domestic markets were closed in observance of Thanksgiving.
The S&P 500 SPX, +0.21% gained 5.34 points, or 0.2%, to 2,602.42, closing at a record. Seven of
the 11 main sectors finished in positive territory. Technology and materials shares led gains, while
telecoms lagged behind. The Nasdaq Composite Index COMP, +0.32% advanced 21.80 points, or
0.3%, to 6,889.16, also clinching an all-time high.
 Your Financial Future Secured Today
United Kingdom and Ireland Because Tomorrow Never Comes...

FTSE 100 ends in the red as retailers pull back, but scores weekly gain
U.K. stocks ended lower for a second straight session Friday, with retail
stocks in the red, but Londons blue-chip benchmark still notched a win for
the week. How markets are faring: The FTSE 100 index UKX, -0.10% shed
0.1% to close at 7,409.64. Tech, health care and consumer-related shares
fell, but the financial and oil-and gas sectors ended higher. For the week, the
benchmark rose 0.4% and that snaps a two-week run of losses. The pound
GBPUSD, +0.1879% changed hands at $1.3333, up from $1.3307 late
Thursday in New York.

UK car production rises in October

The number of cars built in the UK last month rose by 3.5% compared with a
year earlier, driven by higher exports. Just over 157,000 vehicles were made
in UK factories in October, according to the Society of Motor Manufacturers
and Traders (SMMT). Production for export increased by 5%. But output
for the domestic market fell by 2.9%, as a result of lower business and
consumer confidence, combined with confusion over governments diesel
policies, the SMMT said. In Wednesdays Budget, the chancellor announced
that new diesel cars that do not meet latest emissions standards would face
a one-off tax increase in April.
Budget 2017: UK growth forecast cut sharply
Growth forecasts for the UK economy have been cut sharply following
changes to estimates of productivity and business investment. The Office for
Budget Responsibility (OBR) now expects the economy to grow by 1.5% this
year, down from the estimate of 2% it made in March. Growth, it says, will
drop to 1.3% by 2020 and then rise to 1.5% in 2021.
Continental Europe
Euro breaches $1.19 level for first time since September
The euro EURUSD, +0.6920% rallied past the $1.19 mark on Friday, breaking
that level viewed as psychologically significant for the first time since late
September. The common currency has been gaining momentum all week
thanks to supportive economic data, underlined on Friday by better-than-expected German Ifo indicators. The Ifo indexes are a closely watched
measure of business sentiment in the eurozones largest economy. One euro last bought $1.1918, compared with $1.1850 late Thursday.
The 4 Phases
of Retirement and
How to Budget for Them - 4
Peri-retirement is also a good time to reevaluate your monthly and
annual expenses and cut back on costs that have crept up over the
years to eliminate any wasteful spending and give your retirement
budget some breathing room. Also, at this stage (as well as, possibly,
the early stages of your retirement), you may still have major expenses
like putting your kids through college, making a down payment on a
home or paying for a wedding. Finally, you might want to replace your
usual vacations with trips to places youve envisioned yourself moving
to during retirement.
Early Retirement (62 to 70)
Some of the biggest changes in your budget will occur when you first
retire. Youll no longer have a steady paycheck from your employer,
unless you get a pension. Youll need a plan for managing your
income during retirement, and youll need to decide when to start
claiming Social Security benefits. Youll also no longer have employer-
sponsored health insurance. Make sure to plan for how your spouse
and any dependents will get health insurance if they are on your health
plan.

Oil Rally, Holiday Retail Push U.S. Stocks Higher

Stocks in Europe pared earlier gains as the euro headed for a two-month high, while bonds fell as Germany
moved closer to ending a political impasse and business confidence in the regions biggest economy
improved. Higher Treasury yields werent enough to sustain early gains in the dollar, which headed for a third
weekly loss. Iron ore climbed to a two-month high, while industrial metals headed for the best weekly gain
in six. Crude rose as OPEC and Russia were said to have agreed on a framework to extend supply cuts.
Germanys biggest opposition party said its open to talks on backing a government led by Chancellor Angela
Merkel, offering a way to restore political stability to Europes biggest economy. A jump in German business
confidence in October added to positive sentiment, with global stocks heading into the final weeks of 2017 at
record highs as investors place their faith in economic growth and an earnings expansion.

France, Italy Get EU Warning Over Debt Level, Spending Plans

Budget plans by Italy, France and four other euro-area countries risk violating the European Unions spending
rules, the blocs executive arm said, while it delivered a warning to Rome about high government debt. In a set
of assessments presented by the European Commission as part of the euro areas fiscal framework, the 2018
spending plans for France, Italy, Belgium, Austria, Portugal and Slovenia were found to be at risk of non-compliance with the blocs rules. Budget
plans for these countries might result in a significant deviation from the adjustment paths towards the respective medium-term objective, the
commission said. For Italy, France and Belgium, debt reduction was also projected to not be in line with the foreseen level.

CI Associates, Caledonian House, Golda Meir 79 , Las Condes, Santiago, Chile

Asia-Pacific Business News
Japan to spend around $17 billion to subsidize education
ThyssenKrupp kicks off talks with union
Japans government will set aside around 2 trillion yen ($17.93
on steel merger
billion) to subsidize education costs and improve elderly care
Managers and labor leaders at Germanys
as part of an economic package due early next month, the
ThyssenKrupp have struck a conciliatory
Asahi newspaper said on Saturday. The government will
tone as they seek to resolve a dispute over
earmark 800 billion yen for a new program that will offer free
job cuts resulting from a planned merger of
day care for children 3 to 5 years old and free childcare for low-
its steel operations with those of Indias Tata
income households with children up to 2 years old from April
Steel. The de-escalation came after 8,000
2019, the newspaper said.
steel workers protested on Wednesday, the
day the Essen-based company announced
S&P affirms Indias rating at BBB-minus with stable outlook
improved annual results and a record order
Standard & Poors stuck with its BBB-minus sovereign rating and stable outlook for India on Friday,
book, demanding guarantees to preserve
declining to follow Moodys recent decision to upgrade the countrys rating, citing low income levels,
jobs and production sites for 10 years.
high debt and weaker government finances. Moodys Investors Services had a week ago upgraded
The negotiations started in a matter-of-fact
Indias credit rating to Baa2 from Baa3, one notch higher than S&Ps current rating, citing progress
atmosphere, a company spokesman said
on economic and institutional reforms would lift the countrys growth potential. But in a statement,
late on Friday after a working group held
S&P said it was comfortable with its current rating, which leaves India at its lowest investment-grade
a first round of talks. A spokesman for the
standing, despite welcoming recent actions such as the unveiling of an ambitious national goods and
IG Metall trade union said the two sides
services tax (GST), Indias biggest-ever tax reform.
had agreed on two of its demands - for an
independent appraisal of the deal, as well
Hong Kongs Hang Seng Index Rises Above 30,000 to Decade-High a study of the risks arising from Tata Steels
Hong Kongs benchmark equity gauge rose above the 30,000 level for the first time in a decade as pension obligations to its British workers.
energy producers and Chinese developers climbed. The Hang Seng Index gained 0.6 percent to
30,003.49 at the close. Hong Kong Exchanges & Clearing Ltd. was the top performer on the day after Uber to disclose price on SoftBank deal
Morgan Stanley raise its price target and turnover on the bourse climbed to a two-year high. Among early next week: sources
this months gainers, Tencent Holdings Ltd. has surged 22 percent, taking its market value above Uber Technologies Inc plans to move ahead
$500 billion, while Ping An Insurance Group Co. has jumped 23 percent amid optimism over its digital with a deal to bring in Japanese technology
expansion. company SoftBank Group Corp (9984.T)
as a major investor by disclosing the pricing
Latin America and Carribbean early next week in formal tender offers to the
Colombia Central Bank to Reduce Frequency of Rate Decisions ride-hailing services investors, two people

Colombias central bank is following Chiles example and reducing the frequency of its policy meetings familiar with the plans said on Friday. The
start of the tender follows Ubers disclosure
to eight a year, from twelve, to give board members more time to weigh key data. The change follows
on Tuesday that it covered up a 2016 data
best international practices with the policy meeting months decided in accordance with the publication
breach which compromised data of some
of important economic statistics, central bank Governor Juan Jose Echavarria told reporters Friday.
57 million customers and drivers. That
Chiles central bank said in September that it would also cut the frequency of its policy meetings to eight,
revelation prompted governments around
from twelve, citing similar reasons. The less frequent meetings will improve the process of preparation
the world to launch probes into the breach
which serves to support the taking of monetary policy decisions, increasing the amount of information
and Ubers handling of the matter. The
and the time available for the analysis, Echavarria said.
people familiar with the plans did not say
how much investors would be offered for the
Mexico economy shrinks for first time in nearly two years
shares, or say if the price had been cut do to
Mexicos economy contracted more than previously thought in the third quarter due to the impact from
the breach or governments response to the
storms and quakes on the oil and tourism industries, the government said on Friday, adding to concerns
disclosure.
that stalled NAFTA talks are hurting growth. Third-quarter gross domestic product shrank by 0.3 percent
compared with the previous quarter, the first contraction in almost two years. The economy grew 1.5
percent compared with the same period a year earlier, the slowest pace of growth since the fourth BNP Paribas Says It Will Stop Funding for
quarter of 2013. Mexican stocks .MXX were down nearly 0.8 pct following the data. Tobacco Industry
BNP Paribas SA will cease funding and
advising tobacco companies, the latest
Crystallex, Venezuela Agree to Settle $1.2 Billion Mine Dispute
financial firm to distance itself from the
Crystallex International Corp. and Venezuela agreed to settle a $1.2 billion dispute over the 2011
industry over health concerns. The French
nationalization of a gold deposit in the South American nation. Ontario Superior Court Justice Glenn
bank will halt transactions and investments
Hainey in Toronto approved the settlement on Friday after it was announced two days earlier through
related to the sector and progressively
filings in Canada. Parts of the agreement remain sealed, including the amount to be paid. The Canadian disengage from relationships with tobacco
mining company, which was forced into bankruptcy in 2011 after the seizure of the Las Cristinas deposit, clients, Laurence Pessez, the banks global
had asked the judge to approve the deal, saying it may be the largest settlement that Venezuela has head of corporate social responsibility,
ever agreed to relating to an arbitration award. That would put the deal at more than $1 billion, based said in an interview in Paris. The decision
on Venezuelas prior settlements. applies to all types of products and services,
though the bank will honor all contractual
commitments, she said.
CI Associates, Caledonian House, Golda Meir 79 , Las Condes, Santiago, Chile
 Market Data Emerging Markets
Close : Friday, 24th November 2017 S&P affirms Indias rating at BBB-minus with stable outlook
Standard & Poors stuck with its BBB-minus sovereign rating and stable outlook for India on Friday,
Index/Com/ Fridays Weekly % declining to follow Moodys recent decision to upgrade the countrys rating, citing low income levels,
Currency Close Change high debt and weaker government finances. Moodys Investors Services had a week ago upgraded
AMERICAS Indias credit rating to Baa2 from Baa3, one notch higher than S&Ps current rating, citing progress on
economic and institutional reforms would lift the countrys growth potential.
Dow Jones (USA) 23,557.99 0.85%

S&P 500 (USA) 2,602.42 0.92%

Mnangagwa vows to rebuild Zimbabwe and serve all citizens
NASDAQ (USA) 6,889.19 1.54%
New President Emmerson Mnangagwa laid out a grand vision on Friday to revitalise Zimbabwes ravaged
IPC (Mexico) 47,941.88 0.18% economy and vowed to rule on behalf of all the countrys citizens. Sworn in days after the overthrow
of Robert Mugabe, the 75-year-old former security chief promised to guarantee the rights of foreign
Bovespa (Brazil) 74,157.38 0.97%
investors and to re-engage with the West, and said elections would go ahead next year as scheduled. In a
30-minute speech to tens of thousands of supporters in Harares national stadium, Mnangagwa extended
EUROPE
an olive branch to opponents, apparently aiming to bridge the ethnic and political divides exploited by his
predecessor during his 37 years in charge.
FTSE100 (UK) 7,409.64 0.39%

DAX (Germany) 13,059.84 0.51% Saudis Eye Oil Sales to Worlds Biggest Plants Emerging in China
CAC 40 (France) 5,390.46 1.32% Saudi Arabias status as the biggest oil supplier to China has been usurped by Russia. OPECs biggest
producer is now trying to regain ground in the worlds largest crude importer. State-run Saudi Arabian Oil
IBEX 35 (Spain) 10,053.50 0.43%
Co., known as Aramco, is in supply talks with petrochemical conglomerates that are building some of the
RTSI (Russia) 1,166.09 2.88% worlds biggest plants in China, said Mushabab Al-Qahtani, vice president of the marketing department
at its Asia unit, without identifying the firms. He also sees the country expanding imports of sulfurous sour
crude -- the type typically pumped by the Middle East nation. Firms currently forging facilities include
ASIA
Rongsheng Petrochemical Co., which is building a $24 billion refinery in Zhejiang province, and Hengli
SENSEX (India) 33,679.24 1.00% Group thats planning a plant in the Liaoning region. As Saudi Arabia led OPECs output cuts this year to
Nikkei (Japan) 22,550.85 0.68% shrink a global glut, its lost out on market share in the worlds biggest energy consumer.

Hang Seng (H.K.) 29,866.32 2.23%

Shanghai C. 3,353.82 -0.87%

Stealth hedging shows investors not so complacent

With the U.S. stock market at a record high and daily stock gyrations near multi-decade lows, some inves-
COMMODITIES tors have raised concerns about the lack of fear in the market, but U.S. equity options market data suggests

Brent Crude Oil 63.86 -6.04%

investors are far from complacent. Positioning in options on S&P 500 index .SPX and CBOE Volatility Index
.VIX shows investors have been gradually adding to hedges over the last few months. We didnt see it on
Gold 1,288.37 -0.31%
our desk and no one seems to care much about hedging but somehow its happening, said Jim Strugger,
Silver 17.06 -1.50% derivatives strategist MKM Partners in New York. Its sort of under the surface, more like stealth hedging,

Platinum 942.04 -1.01%

he said.

Copper 319.55 3.27%

The S&P 500 index .SPX has climbed 16 percent this year and is on pace for its eighth straight month of
Sugar 15.45 0.52% gains, the longest such streak since just before the 2007-2009 financial crisis. The CBOE Volatility Index

Cotton 71.93 3.59%

.VIX, better known as the VIX and the most widely followed barometer of expected near-term stock mar-
ket volatility, closed at a record low earlier this month. Some investors warn that heightened reliance on
Coffee 127.55 0.24%
strategies that profit from continued calm in stocks, and months of frustration over hedges that have gone to
Cocoa 2,107.00 -1.14% waste while the market powered on, have left the market extremely vulnerable to a shock.

Boom-time complacency should top the worry list for investors, according to participants in the recent
CURRENCIES
Reuters Global Investment 2018 Outlook Summit in New York. The options market, however, suggests that
MXN/USD 18.55 -1.94%
investors are not as vulnerable to a sell-off in stocks as the anemic level of the VIX would suggest, analysts
MXN/EUR 22.14 -0.72% said.

MXN/GBP 24.75 -0.97%

For instance, for the S&P 500 index options, there are 2.1 puts open for each
USD/GBP 1.33 0.68%
open call contract, close to the most defensive this measure has been over the
USD/EUR 1.19 1.26% last five years, according to options analytics firm Trade Alert data.
Caledonian International Associates
Caledonian House, Golda Meir 79
JPY/USD 111.48 -0.43% Las Condes
Santiago, Chile
T: (56-2) 2481-7220 - F: (56-2) 2481-7458
www.ci-associates.com