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Goldman Sachs Looking to Improve Public Relations Through Renumeration

June 27th, 2010 | Comments Off | Posted in Economy

When the downward spiral of the global economy first took off down its course in 2008, many through out the United States and around the world found themselves outraged at the bonuses bankers were being given. The worst economic times brought out the harsher instincts of the public and investors alike, allowing politicians to leverage the sentiment to impose a whole slew of banking regulations in the US. These penalties and re-structuring meant banks had to shift the way they were being run and struggle to bring their public image back to a more positive level. Goldman Sachs is now going an extra mile to appease the public by renumerating its employees for 2010 through a series of items such as grocery store loyalty card points for its workers in the United UK. With loyalty cards being big business in the UK, the cards are seen as an alternative to cash that can save the company money while giving value to its employees. By working with a US firm, it decided the Nectar Points loyalty rewards programme would work best since these points are redeemable at giant retailers such as Apple, Amazon, Sainsbury’s and Argos.

The company’s cost will be high as it looks to pay out nearly 200 million points which are worth 2.5 pounds sterling for every 500 points. Certain restrictions will exist on a high end luxury goods. The programme is designed to cool public anger while at the same time rewarding loyal workers in the financial giant itself. Analysts believe it could get the company back on track.

Prices for Top London Property May Be Headed Down

June 22nd, 2010 | Comments Off | Posted in Real Estate

The London property market had been experiencing some of the highest prices in resent years but conditions appear to be changing in the United Kingdom now. Certain highly sought after post codes were able to command top real estate prices, but that was largely due to UK optimism and a surge in the economy that is no longer happening. This, added to a looming cap on bonuses, an upcoming general election and even higher levels of tax being levied against citizens, does not bode well for property prices as incomes get pulled down further. Although prices are currently rising, the real estate adviser Saville’s prime central London index shows that the increase actually slowed to an unimpressive 3 per cent over the course of the last 3 months which is a full 1.6 per cent lower than the same time period during 2009. Compared with the steady drop experienced for London property owners who held the best real estate in the city from the end of 2007 until the beginning of 2009, this is not that drastic. During that era, a mind blowing 22 per cent drop occurred and vendors even accepted up to 40 per cent discounts which could never have been expected in the past. With prices improving in the economy after the second half of 2009, an average of 4 per cent rise in value each quarter was seen. Peak levels of price growth for the best properties in central London are currently close to the peak of 2007, around 17 per cent annually.

Economists worry this may prove to be a tipping point for the market and advise investors to be wary.

50 Per Cent UK Tax Rate Spurs Head Hunter Frenzy

June 20th, 2010 | Comments Off | Posted in Economy

Dramatic news in the United Kingdom has struck the top earning workers at firms across the city of London due to a recent spate of reports indicating that the government may levy a 50 per cent tax against these top earners. The recent revelation that of all the main finance hubs in the nation, the UK’s capital would become the most punitive in terms of tax has lead to some level discontent among the work force in London firms. A survey has shown that 80% of those working at finance companies in the UK have already been approached by recruitment firms since the first days of 2010, a phenomenon which nearly half the respondents said was far more than in 2009. Those responding also said that the higher taxes would definitely spur them to consider their options if they should choose to move abroad where opportunities may be stronger. With these Britons looking over seas for their next work place, head hunters are swooping in to try for the best candidates that are now uncertain about remaining with their present company. By offering better salaries, UK firms hope they will be able to keep these top earners in the country. The salary hike has come to meet both the ego and financial desires of the workers and thus helped some firms be able to keep their present staff more easily than those firms which were not willing to consider raising the worker salary.

Bonuses may also keep these workers in place, but the bottom line is that London may experience a severe shake up due to this taxation, an effect that will be felt throughout the nation according to analyst predictions.

Oil Trading at Highest in Over a Year

June 12th, 2010 | Comments Off | Posted in Stocks and Shares

As one of the most basic elements of the modern economy, oil sales and production are a genuine bell weather for the economic health of the United States and most other industrialized nations where petrol based products such as diesel and gasoline are essential to trade. Crude oil has recently reached a 17 month high in New York City’s stock market as the demand for petrol has increased thanks to major growth in the service industry sector of the US economy. The recession had hit levels that closely mirrored those seen in the 1930’s, but research analysts at the Sydney, Australian firm CWA Global Markets Pty are hailing the news as a powerful indicator that the global recovery is definitely progressing due to rising prices that directly correspond with rising business and consumer demand across the world. Crude oil for May delivery alone already had reached $86.43 per barrel which is down a full 19 cents in the New York Mercantile Exchange, but then bounced back to the highest levels seen since October 8, 2008 around the time the economy took a massive nose dive. A gain of 8.8 per cent in futures this year alone is a very positive sign, say economists.

Oil demand for most of the world will be strong through out the course of 2010 with commercially held inventories of crude oil expecting to reach around a million barrels. This 10 week recovery is the longest period of gain since late in 2004 when stock piles had leveled out at 354 million barrels, nearly 7 per cent above the 5 year average.

Japanese and Australian Stocks on the Rise

June 1st, 2010 | Comments Off | Posted in Stocks and Shares

The dark era of the global melt down may now be passing according to many economists around the world, thanks to re-structuring of economic expectations in a variety of major player nations. Stock futures in Japan have gained recently, along side Australian shares traded by the US due to growth in American service industries. Home sales have jumped due to the reigning optimism about the US economy and a general sentiment that a global recovery of the economy is not only possible, but to be expected. Commodity prices in the US have also risen, in particular gold and other precious metals essential to the base line economy of that nation. In Japan, Sony Corp. gained 0.9 per cent in Tokyo, significant due to the fact that it is Japan’s largest exporter of TV’s. The Sharp Corp. rose 0.8 per cent, another major boost to the Japanese economy as the largest producer of liquid crystal displays which are proving to be hot sellers around the world. In Australia, the nation’s largest oil company and the largest mining company in the world shot up a full 2.4 per cent.

The improvements with the fundamental elements of the global economy are definitely gearing up to produce a much brighter forecast for the coming year, a feat many analysts felt may have been nearly impossible only a year ago. With a strong Yen proving globally that the Japanese economy is back on track towards its previous goal to maintain its status as global economic power house, many have turned to the Asian markets for solid growth investing and are continuing to do so as China, also, expands the potential of its yuan to become a staple for currency investors.