CNNMoney - Last Updated: August 6, 2008: 6:46 PM EDT

Consultant firm projects bonuses in financial sector to sink in 2008 on credit problems, decline in business, and mounting layoffs.

NEW YORK (CNNMoney.com) — Looks like Wall Street bankers can kiss those fat bonuses goodbye this year.

Some bankers’ bonuses will be slashed by nearly half in 2008, and most can expect a 15% to 25% reduction from last year’s levels, according to a recent projection from compensation consultancy firm Johnson Associates.

Johnson Associates expects the big wigs to give up the most, with bonuses of senior firm managers at investment banks tumbling 35% to 45% from 2007 levels. With the public scrutinizing deep-pocketed CEOs when most Americans are penny pinching, shareholders may not stand for executives taking home millions while their companies lose billions, the consultancy firm said.

Read the rest of this entry »

International Herald Tribune - MARKETS, Published: July 28, 2008

( Craig Ruttle/Bloomberg News)

By Michael M. Grynbaum

An all-day stock sell-off on Monday accelerated in the afternoon, as investors leaped out of shares of investment and commercial banks, many of which have given back all of their gains from last week.

The sharp losses in financial stocks sent the Dow Jones industrial average to a 239.61 point decline, after a day spent entirely in negative territory. The blue-chip index finished at 11,131.08, down 2.1 percent. The broader Standard & Poor’s 500-stock index fared little better, closing down 23.39 points, or 1.9 percent, at 1,234.37. The tech-heavy Nasdaq composite index lost 46.31 points, or 2 percent, to close at 2,264.22.

Read the rest of this entry »

BUSINESSWEEK - Market Snapshot July 28, 2008, 4:50PM EST

Financial stocks gave up recent gains as a rise in oil prices and word of a record U.S. budget gap weighed on the market Monday

by Ben Steverman

Major U.S. stock indexes skidded Monday as a recent rebound for financial stocks faltered, oil prices rose and a report said the U.S. budget deficit could swell to a record. Traders also weighed news that private equity firm Kohlberg Kravis Roberts & Co. plans to go public.

On Monday, the Dow Jones industrial average fell 239.61 points, or 2.11%, to 11,131.08. The broader S&P 500 fell 23.39 points, or 1.86%, to 1,234.37. The tech-heavy Nasdaq composite index lost 46.31 points, or 2%, at 2,264.22.

S&P’s diversified financial services index plunged 5.44% Monday, and the market’s worst performers included insurer AIG (AIG), down 12.3%; brokerage house Merrill Lynch (MER), off 12%; and investment bank Lehman Brothers (LEH), down 10.4%.

Read the rest of this entry »

CNNMoney - Last Updated: July 28, 2008: 10:33 AM EDT

Financial sector worries weigh on Wall Street despite better-than-expected corporate results and stabilizing oil prices.

By David Goldman, CNNMoney.com staff writer

Shares rose 13% Monday.

Market breadth was mixed. On the New York Stock Exchange, advancers just edged out decliners on a volume of 140 million shares. On the Nasdaq, losers edged out winners on a 3-to-2 ratio on a volume of 260 million shares.

Energy: Oil prices fell 5 cents to $123.21 per barrel as traders weighed slumping demand with renewed concerns about Iran’s nuclear capabilities. Crude has still plummeted $24 from its high of $147.27 set on July 11. (Full story).

The average price of gasoline fell 1.2 cents to $3.958 per gallon in the United States, declining for the eleventh straight day, according to a daily survey from motorist advocacy group AAA. It was gasoline’s lowest level since May 29. (Full story).

Other markets: In currency trading, the U.S. dollar slipped against global currencies. The greenback fell against the euro, even as a measure of German consumer confidence fell to a more-than five-year low. (Full story).

Read the rest of this entry »

Reviews July 28, 2008, 3:39PM EST

Demand is so great for the zippy, fuel-efficient Clubman that most buyers won’t get one until the fall—but it’s worth the wait

by Thane Peterson

The Good: Excellent fuel economy, sporty handling, roomier interior

The Bad: Long wait to get one, quirky interior, rear seat still cramped

The Bottom Line: The best high-mileage vehicle this side of a Toyota Prius

BMW’s sporty but fuel-efficient Mini Coopers are among the hottest cars on the market right now. The company’s plant in Oxford, England, is running 24/7 and still can’t keep up with demand. Jim McDowell, vice-president of the Mini Division, recently told Automotive News magazine that U.S. Mini Cooper dealers are out of cars and will be mainly selling pre-ordered units for the rest of the model year. So, unless you get lucky and find an ‘08 Mini Cooper on a dealer’s lot, your best option is to sign up now for an ‘09 model that won’t be delivered until this fall.

Read the rest of this entry »

BUSINESSWEEK - Stocks in the News July 25, 2008, 1:19PM EST

The huge slowdown in ad dollars has hit the Times hard, and the parent company’s stock is worth about half what it was a year ago

Mario Tama/Getty Images

by Jay Yarow and Jon Fine

On Wednesday, New York Times Co. (NYT) reported disappointing second-quarter earnings, and on Thursday the stock continued in its steep descent. At the end of trading it stood at 12.48, or virtually half the price it commanded one year ago.

This part of the story is unsurprising, given how the Street is slamming any newspaper stock. What’s startling is something else: If you back out much of the rest of the company’s portfolio, you arrive at a surprisingly teeny valuation for the vaunted New York Times itself, despite all the respect the brand commands.

Read the rest of this entry »

CNNMoney - July 25, 2008: 4:25 AM EDT

In the tug of war with sellers, these days you’ve got all the pull.

By Bob Tedeschi, Money Magazine

(Money Magazine) — If there’s any silver lining to this sluggish economy, it’s this: You, the consumer, are back in charge. For most products and services, “you have a lot more power to name your price,” says Nancy Koehn, a retail history professor at Harvard Business School.

The proof? Nearly 70% of Americans have managed to negotiate a better deal on a purchase in recent months, according to America’s Research Group - a 12-percentage-point jump from a year ago. While you’ll still hit walls with certain businesses (don’t expect much luck at the gas station), you’ll find wiggle room now in unexpected places, including health clubs, cell-phone stores, even big-box retailers, says G. Richard Shell, author of “Bargaining for Advantage.”

To gain leverage, you need to know three things: where the industry’s weak spots are, how much competitors are charging and what value you bring. Start with the negotiations here (listed easiest to hardest) - and watch the savings pile up.
Read the rest of this entry »