Tuesday, 27 Oct 2020

One in 6 US employees will not receive a raise in 2021, according to top compensation advisory firm Willis Towers Watson

European Economics Preview: Germany’s Industrial Production Data Due

Industrial production from Germany and house prices from the UK are due on Wednesday, headlining a light day for the European economic news.

At 2.00 am ET, Destatis is scheduled to issue Germany’s industrial output for August. Economists forecast output to grow 1.5 percent on month, following a 1.2 percent rise in July.

In the meantime, industrial production figures are due from Norway and Denmark.

At 2.45 am ET, foreign trade and current account figures are due from France.

At 3.00 am ET, Spain’s INE releases industrial output for August. Economists expect production to decline 5.7 percent on year, after easing 6.4 percent in July.

Also, industrial and construction output and foreign trade figures are due from the Czech Republic. Industrial production is seen falling 2.8 percent annually, after easing 5 percent in July.

At 3.30 am ET, UK Halifax house price data is due. Economists forecast house prices to rise 1.5 percent on month in September, following a 1.6 percent rise in August.

At 4.00 am ET, Italy’s Istat is scheduled to issue retail sales for August. Sales had decreased 2.2 percent on month in July.

At 4.55 am ET, the Central Bank of Iceland will publish the statement of the Monetary Policy Committee, including the Committee’s interest rate decision.

At 7.00 am ET, Poland’s central bank is set to announce its interest rate decision. The bank is expected to hold its key rate at 0.10 percent.

Goldman Sachs' partner class this year will reportedly be its smallest in decades

  • Goldman Sachs intends to name its smallest partner class in decades, The Wall Street Journal reported Tuesday. 
  • 60 or fewer senior bankers will likely be promoted to the elite level, and the perks will also increase, the paper said. 
  • The bank declined to comment on the report. 
  • Visit Business Insider's homepage for more stories.

Goldman Sachs Group will likely name fewer than 60 partners in 2020, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.

That number is down from more than 100 in some recent years, and shows a continued slowing of the upper echelon's growth. 

Partners will receive carried interest, a portion of future profits taxed at low rates, in four of Goldman's private investment funds starting this year, according to the report. The title comes with a guaranteed minimum salary of $1 million, the paper said, before stock bonuses. 

Read more: We mapped out the power structure at Goldman Sachs and identified the bank's 125 top execs. Here's our exclusive org chart.

The firm will also lend partners up to half a million dollars to increase their personal investment, the report added.

Goldman declined comment on the report.

Get the latest Goldman Sachs stock price here.

Stock Alert: Levi Strauss Rises 9% After Quarterly Results Beat Estimates

Shares of Levi Strauss & Co. (LEVI) are climbing more than 9 percent or $1.36 in Wednesday’s morning trade at $16.10, after the apparel retailer reported results for the third quarter that beat analysts’ expectations.

Tuesday, Levi Strauss reported net income for the third quarter that fell to $27 million or $0.07 per share from $124 million or $0.30 per share last year. Adjusted earnings were $0.08 per share, compared to $0.31 per share last year. Analysts polled by Thomson Reuters had a consensus estimate for loss of $0.22 per share.

Third-quarter revenue declined 27 percent to $1.06 billion from $1.45 billion last year, while the Street expected revenues of $822.24 million.

Levi Strauss has traded in a range of $9.09 to $20.70 in the past 52 weeks.

Stock Alert: MGIC Investment Climbs 8%

Shares of MGIC Investment Corp. (MTG) are rising more than 8 percent or $0.80 in Wednesday’s morning trade at $10.73 despite no company-centric news that could move the stock.

U.S. stocks are rising on Wednesday after U.S. President Donald Trump urged Congress to approve airline payroll support and other stimulus.

Wisconsin-based MGIC Investment is a provider of private mortgage insurance and other mortgage credit risk management solutions to lenders and government sponsored entities.

MGIC Investment has traded in a range of $4.34 to $15.24 in the past 52 weeks.

One in 6 US employees will not receive a raise in 2021, according to top compensation advisory firm Willis Towers Watson

  • Some 35% of the 705 U.S. employers surveyed by consulting firm Willis Towers Watson said they were reducing their salary increase budgets for 2021, with some firms citing budgetary restraints and weaker financial results from the pandemic. Salary increase budgets are where firms pull funds for bonuses. 
  • The median salary increase expected is 2.6%, lower than the 2.8% median when Willis Towers Watson asked the same question a few months ago. 
  • The survey found that one in six employees will not receive a pay raise in 2021. Some 84% of employers will deliver pay raises on schedule. 
  • “The pandemic’s economic implications have led employers in virtually every industry to rethink their compensation plans and budgets for the coming year,” said Catherine Hartmann, North America Rewards practice leader, Willis Towers Watson. “For many companies, reducing salary budgets, and in some cases, suspending pay raises, was the most viable option, as they balance remaining competitive with maintaining financial stability.”
  • According to survey results, executives and management employees are much more likely to receive bonuses than hourly employees. 
  • Visit Business Insider's homepage for more stories.

 

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