(Reuters) - The euro steadied in early trade in Asia after falling to a more than one-week low against the dollar overnight as worries about Spain's debt persisted and weak German business data fanned fears of slowing growth.The recently resurgent yen also gave up some ground against the dollar and euro, but market participants expected it to face continuous upward pressure this week from Japanese repatriation ahead of half-year book-closing.A drop in German business sentiment to its lowest since early 2010 stoked concerns about a slowdown in the euro zone's largest economy, despite the European Central Bank's recently announced bond-buying plan.Spain also remained in focus, as its government bond yields rose on concerns that the country is dragging its feet in requesting the international bailout that most market participants expect, through facilities such as the European Stability Mechanism (ESM)."Market sentiment weakened amid signs of weak EU growth and worries about whether Spain will accept conditionality in exchange for ECB and ESM support," said strategists at Barclays in a note to clients on Tuesday."Growth worries are also spreading to other parts of the world, includingChina," they said.Germany's Ifo think tank said its business climate index fell to 101.4 in September from 102.3 in August. A Reuters poll of 45 economists had forecast a slight rise to 102.5.This week, Spain is expected to unveil new structural reforms and its draft budget plan for 2013. Investors also await results of stress tests on its banking sector.A Moody's credit review of Spain is also expected this week, and the ratings agency could downgrade Spanish debt to junk status, although it has said it would welcome news of an aid request.http://www.reuters.com/article/2012/09/25/us-markets-forex-idUSBRE88N0YI20120925
California Pension Freezes Executives’ Pay, Cuts Bonuses
The California Public Employees’ Retirement System, the largest public pension in the U.S., paid 12 percent less in bonuses to investment officers after stocks dragged down returns. Most also went without pay raises.The pension distributed $3.6 million in performance bonuses among 55 investment officers, down from $4.1 million last year, according to Calpers data. The sums are based on investmentresults over three years, including a 1 percent return last year and 21.7 percent a year earlier. Chief Investment Officer Joe Dear was granted $87,750.Enlarge image
The California Public Employees' Retirement System spends $40 million a year on compensation and benefits for investment staff, compared with $44 million for consultants and $1 billion on external managers. Photographer: Ken James/Bloomberg“The performance awards are based on multiple years of performance and we are a long-term investor, and that’s what we are trying to incentivize,” Brad Pacheco, a Calpers spokesman said yesterday. “For us to keep highly skilled investment managers to run this fund, we have to be competitive and these awards are part of that compensation.”Volatility in capital markets has caused swings in the $244.5 billion pension fund’s returns while it assumes it will earn 7.5 percent annually to meet projected obligations. When it underperforms, the state and its municipalities must make up the difference. The pension’s 20-year investment return is 7.7 percent.The average Wall Street bonus fell 13 percent to $121,150 in 2011, the lowest since 2008, and down almost 40 percent from a peak of $191,360 in 2006, according to estimates by New Yorkstate Comptroller Thomas DiNapoli in February.
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