Home' Trinidad and Tobago Guardian : September 4th 2014 Contents BG30 INTERNATIONAL
BUSINESS GUARDIAN www.guardian.co.tt SEPTEMBER 2014 • WEEK ONE
Manufacturing expanded in August at the fastest pace
in three years as orders grew by the most in a decade,
showing US factories will help power the economy into
the third quarter.
The Institute for Supply Management s index unexpect-
edly climbed to 59, the highest level since March 2011,
from July s 57.1, the Tempe, Arizona-based group reported
today. Readings greater than 50 indicate growth. The
median forecast in a Bloomberg survey of economists was
57.A drive to update plants and equipment is propelling
gains in business investment that will probably keep Amer-
ican factories busy even as consumer spending shows signs
of cooling. Better wage growth could broaden household
purchases beyond automobiles and help sustain the pickup
in manufacturing, which makes up about 12 per cent of
The gain in manufacturing was "so broad-based," Bradley
Holcomb, the ISM survey chairman, said on a conference
call with reporters. There is not one particular driver, "it s
just sort of a continuation of the trend that we ve had
Estimates for the factory index from 78 economists in
the Bloomberg survey ranged from 55 to 58.5, all falling
short of the actual result.
The news on manufacturing was less positive overseas
as UK factory growth slowed more than forecast last month
and Italian manufacturing shrank as Europe suffered the
fallout from weakening demand and mounting geopolitical
risks, other report showed today.
Stocks fluctuated between gains and losses after the
Standard & Poor s 500 Index had its best month since
February, as investors assessed the data. The S&P 500 was
at 2,003.43 at 10:34 a.m. in New York compared with
2,003.37 at the close on August. 29.
The increase in the ISM index came as the group s new
orders gauge climbed to 66.7, the highest since April 2004.
The group s production gauge rose to the strongest since
May 2010, reaching 64.5 from 61.2 the prior month. The
measure of orders waiting to be filled climbed to 52.5 from
The report also showed gauges of factory inventories
and customer stockpiles both advanced in August from a
month earlier. The group s factory employment measure
was little changed in August at 58.1 compared with a three-
year high of 58.2 the prior month.
The figures showed the economy expanded at a 4.2 per
cent annualised pace in the second quarter after shrinking
2.1 per cent in the first three months of the year.
Consumer spending, which accounts for almost 70 per
cent of the economy, started the third quarter on soft foot-
ing. Purchases retreated in July for the first time in six
months as wages failed to accelerate, a report last week
showed. At the same time, a healing job market could pro-
vide momentum going forward: the economy has added
more than 200,000 jobs for each of the six months through
People who are confident in their employment prospects
may be more willing to take on big purchases such as
automobiles. Cars and light trucks sold at a 16.4 million
pace in July, a slowdown from 16.9 million in June that
was the fastest rate since mid-2006, figures from Ward s
Automotive Group show.
Gains in business investment may help make up for
some of the shortfall among households. New orders for
durable goods soared 22.6 per cent in July after a revised
2.7 per cent gain in June that was bigger than previously
estimated, according to Commerce Department data issued
Wall Street firms are hiring more junior bankers and giving
more interns full-time jobs this year.
Bank of America Corp hired about 40per cent more full-time
analysts and associates this year than last, according to a person
familiar with the bank s hiring practices.
JP Morgan Chase & Co aims to hire 10 per cent more junior
bankers than last year, according to a person familiar with the
hiring process. The New York bank already has identified or hired
about 80 per cent of these junior employees, who will start next
summer, the person said.
Goldman Sachs Group Inc s intern class swelled to more than
2,500 world-wide this summer from roughly 2,300 last summer,
according to a person familiar with the company s recruiting. At
Barclays PLC, the number of interns rose about 20 per cent this
summer from a year ago, a spokeswoman said.
Wall Street is wooing young workers as business picks up in
areas such as mergers and acquisitions.
"Wall Street is famous for over-hiring and over-firing," said
Michael Karp, chief executive and co-founder of financial recruiting
firm Options Group. With an upturn in merger activity, he said
large financial firms "are looking to get younger blood into the
As well, many younger analysts and associates have been
leaving to get higher degrees such as the master s of business
administration, or MBA, or to take other positions.
Wall Street is also facing recruiting competition.
Consulting bumped investment banking as the most popular
career choice for MBA students and recent graduates, according
to a June survey by Training the Street, a New York firm that
trains incoming Wall Street analysts and associates. Among
survey respondents, 25 per cent said that they would prefer
working at consulting firms, compared with 22 per cent who
preferred the large investment banks.
At private-equity and hedge funds, job seekers are finding
pay often is greater and the hours sometimes shorter, university
career officers said.
About 30 per cent to 40 per cent of analysts at bulge-
bracket firms leave Wall Street for private-equity and hedge
funds by the end of the traditional two-year stint, said Patrick
Curtis, founder and CEO of Wall Street Oasis, an online dis-
cussion forum geared toward young bankers. And more analysts
have begun leaving for private-equity or hedge funds earlier,
after just one year on the job, said Adam Zoia, CEO of Glocap,
a financial-services search firm in New York.
At Harvard Business School, about 5.0 per cent of Harvard
Business graduates in 2013 took jobs in investment banking
and sales and trading, down from 12 per cent in 2006. During
that same time, graduates accepting job offers in the tech-
nology sector rose to 18 per cent from 7.0 per cent.
In response, several banks raised young bankers pay, accord-
ing to people at the banks. They have also implemented
restrictions on the days of the week or hours junior bankers
are permitted to work.
"The banks are starved for talent at the junior levels," said
Richard Stein, senior partner at executive-search firm Caldwell
Partners. "They are looking for all sorts of ways they can
keep and attract talent."
Increasing the number of lower-level employees should
help ease weekly workloads that historically were about 80
to 100 hours, according to people with knowledge of the
Of course, many Wall Street employees don t mind the
long hours, seeing it as a rite of passage and a way to learn
about the markets and corporations in a short time.
"When you enter banking, you understand what the culture
demands of you, you know what you re signing up for," said
Jonathan Duarte, an investment-banking analyst in Barclays s
Speaking of his experience as an intern in the summer of
2011 and analyst at Barclays, Duarte said: "You get to work
with senior managers and watch how they interact with
clients. You re learning how to handle business at a high
level. Especially at such a young age, it s very beneficial."
Wall Street Journal
Wall Street woos
young workers as
business picks up
grows at fastest
pace in three years
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