Post by dgriffin on Nov 29, 2009 10:01:56 GMT -5
Just thought you'd be happy to hear that while your economic downturn isn't over, times are better on Wall Street.
Bonus rebound set to move the dial for Swiss watches
ZURICH (Reuters) - A return to lavish bonuses for Wall Street's top earners could be just the tonic that the Swiss watch industry needs this Christmas after months of austerity depressed sales.
The country's watch sector, which makes up around 7 percent of exports, has been grappling with a sharp drop in demand over the past year after the worst economic crisis in decades killed consumers' desire and ability to splurge on pricey treats.
But watchmakers are eyeing a modest rise in sales over the key festive period -- the fourth quarter accounts for some 30 percent of sales -- as a recovery in Wall Street earnings could lift bankers' bonuses by up to 50 percent.
"The consumer mood between the continents varies, but on average it is better than last year," said Philippe Merk, chief executive of privately owned Audemars Piguet, whose watches cost around $20,000 to $30,000.
"Luxury consumers, who are bankers, are better off now as this is the sector that has recovered the fastest. These are the indicators that tell us that this year's Christmas sales will be better," he said.
Bonuses are expected to be substantially higher this year despite pressure from politicians and regulators to restrain payouts.
Goldman Sachs (GS.N), for example, has set aside nearly $17 billion for bonuses so far this year and looks well on track to break the $20 billion mark, which could mean higher payouts per employee than in the previous record year, 2007.
This comes after a revival in profits for most investment banks, and contrasts with a bleak year for the financial sector that has seen governments bailing out major banks and nearly 400,000 job cuts.
FULL ARTICLE AT:
www.reuters.com/article/ousiv/idUSTRE5AP2Y920091126
Uh ... did we get our bailout money back, with interest? And frankly, I'd expect my stocks to be back up to at least where they were before Wall St. congratulates itself and begins handing themselves bonus money.
Bonus rebound set to move the dial for Swiss watches
ZURICH (Reuters) - A return to lavish bonuses for Wall Street's top earners could be just the tonic that the Swiss watch industry needs this Christmas after months of austerity depressed sales.
The country's watch sector, which makes up around 7 percent of exports, has been grappling with a sharp drop in demand over the past year after the worst economic crisis in decades killed consumers' desire and ability to splurge on pricey treats.
But watchmakers are eyeing a modest rise in sales over the key festive period -- the fourth quarter accounts for some 30 percent of sales -- as a recovery in Wall Street earnings could lift bankers' bonuses by up to 50 percent.
"The consumer mood between the continents varies, but on average it is better than last year," said Philippe Merk, chief executive of privately owned Audemars Piguet, whose watches cost around $20,000 to $30,000.
"Luxury consumers, who are bankers, are better off now as this is the sector that has recovered the fastest. These are the indicators that tell us that this year's Christmas sales will be better," he said.
Bonuses are expected to be substantially higher this year despite pressure from politicians and regulators to restrain payouts.
Goldman Sachs (GS.N), for example, has set aside nearly $17 billion for bonuses so far this year and looks well on track to break the $20 billion mark, which could mean higher payouts per employee than in the previous record year, 2007.
This comes after a revival in profits for most investment banks, and contrasts with a bleak year for the financial sector that has seen governments bailing out major banks and nearly 400,000 job cuts.
FULL ARTICLE AT:
www.reuters.com/article/ousiv/idUSTRE5AP2Y920091126
Uh ... did we get our bailout money back, with interest? And frankly, I'd expect my stocks to be back up to at least where they were before Wall St. congratulates itself and begins handing themselves bonus money.
