S&P/TSX Composite index Head Start: Bank of Montreal (TSE:BMO) Buys Back Shares, Potash Corporation of Saskatchewan Inc (TSE:POT) Earnings, Slashes Dividend
The S&P/TSX Composite index (INDEXTSI:OSPTX) looks poised to kick off with a lift today as Bank of Montreal (TSX:BMO)(NYSE:BMO) announced it would buy back shares, and Potash Corporation of Saskatchewan Inc(TSE:POT) (NYSE:POT) released full year earnings announcing a severe cut in dividends for the first time in years.
Adding to the positive undercurrent in the market this morning is the fact that oil staged a bit of a rally recovering to over $32 a barrel on news that Russia and OPEC members were in discussion to cut output.
Gold plunged to US$1,113.78 after the usual predictable futures contract dump as gold flirted with highs approaching $1,130 last night in Asia, which clearly has Fed sponsored gold market manipulators spooked. The level and intensity of intervention globally underway in G7 markets is almost overt to the point of obviousness.
Mohommed El-Arian was a featured guest on Bloomberg Radio this morning, and to hear him categorize the Fed as ‘politically independent’ almost made me choke on my grapefruit. But such comments show how the most visible financial news personalities are just such because their views reliably echo the glib data points interventionist central banks need repeated to project their image of competence.
Potash Corp of Saskatchewan Inc a Better Indicator of Global Economy
A better signal of the actual lay of the global financial landscape came today in the form of Potash Corp of Saskatchewan Inc’s publication of full year financial results, which were sufficiently dismal to prompt the company to cut its dividend for the first time since becoming a public company in 1989. The company’s earnings plunged by 50 percent, and came in nearly 30 percent below analysts’ expectations.
The outlook for near-term earnings for Potash Corp are not favourable, and the company expects to earn US$1.20 a share vs. $1.52 per share in 2015.
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