Investment Markets Overview — W/E 5th June 2015

The Chartered Management Institute’s National Salary Survey, released this week, surveyed the pay of 70,000 UK managers and concluded that a third of those given bonuses were rated as “not meeting expectations.” Its CEO, Ann Francke said, “too many managers are reaping the rich rewards of their positions despite being poor performers,” with the average bonus for under-performing company directors put at £45,000 and sub-par managers at £9,000. Management in businesses and organisations is the function that coordinates the efforts of people to accomplish goals yet another observation within the report states that, “it seems to be a lot easier to reward poor performance than to face the awkwardness of having difficult conversations with underperforming staff.” It’s not just the UK problem either, as shown within last year’s Towers Watson’s “Talent Management and Rewards Study” of 320 US and Canadian organisations, recognising that 24% of companies responding to this survey pay bonuses to employees “who fail to meet even the lowest possible performance ranking,” which is surprising given an era where companies are constantly under financial pressure and relentlessly trimming costs. Aside of helping to explain the declining productivity figures of late, the clear message is that poor performance will not only be tolerated – it will be rewarded. It is also management without really managing.

5 June 15 .

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Additional Commentaries:
•US economic data . . .
•Euro-Zone . . .
•The UK . . .
•Out East . . .
•The $US index . . .
•Within the commodities complex . . .
•Economic data due next week includes . . .

The casinos in Macau may be suffering at present, but they are alive and well in mainland China and in Hong Kong, albeit that for the latter two it’s their respective stock-markets ……

Charts:
1.  Indices Weekly
2. US ISM Sevices V US Personal Spendng
3. UK Base Rate V UK Market Rates
4. HK Stockmarket V HK Retail Sales
5. Commodity YTD  Moves

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

“It is generally agreed that casinos should, in the public interest, be inaccessible and expensive. And perhaps the same is true of stock exchanges.” – John Maynard Keynes. 

Click Here to view Details of the full version of this Newsletter which includes full text and detailed

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