UBS has revised its 12-month target on the S&P/TSX composite index to 16,400, up from 15,000—a level it closed above last week.
The bank says companies in the energy sector are expected to have improved earnings as a result of strong commodity prices, which will send the index higher.
UBS is also forecasting oil prices to remain very close to current levels, averaging US$113.50 per barrel this year and $120 per barrel in 2009. Last week, oil hit a new record of $135 per barrel.
“With more than a third of TSX earnings in energy, and including higher estimates in the materials sector for this year,” says a research note, “TSX earnings are now expected to rise 27% this year and 20% in 2009.”
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Some Companies Try to Retain Boomers
American companies seem to be all over the map in dealing with possibly soon-to-retire boomers, according to a survey.
The survey by Novations Group—a Boston-based provider of consulting and training services—finds that 36% of employers don’t expect an unusually large loss of talent with baby boomer retirements, 18% expect a serious loss of talent but have no plans in place to help prevent this loss and 20% are unsure of the situation at their organization, and 26% of employers have plans to mitigate their loss.
“These 26% are probably best practice organizations that will have a competitive edge over other companies that don’t have plans to address the issue,” says Novations executive consultant Tim Vigue.
“Since organizations are not able to anticipate how many vacancies they’ll need to fill, in what critical areas or when, they are leaving a great deal to chance,” he adds. “Succession planning, internal development planning, and recruitment and hiring processes are all compromised as a result.”
There were 2,556 senior human resources, and training and development executives that took part in the survey.
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Court to Hear BCE Appeal
The Supreme Court of Canada has granted BCE’s motion to expedite its leave application regarding last week’s Quebec Court of Appeal decision, which ruled that the telecom company’s sale to a consortium led by the Ontario Teachers’ Pension Plan was unfair to bondholders.
The appeal will be heard on June 17, 2008.
In light of the Quebec Court of Appeal’s decision, the closing of the transaction will be contingent on the Supreme Court of Canada granting leave to appeal and the reversal by the Supreme Court of the judgment of the Quebec Court of Appeal relating to the plan of arrangement.
For more about the BCE deal, click here to read our special section, The Rise of Private Equity.