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Firms Now Focus On Axing European Staff

Bloomberg reports that, according to 'two (unnamed) people with knowledge of the matter', JPMorgan is axing 10% of its European investment banking staff due to the fall-off in M&A activity. Dealogic figures show that M&A activity in Europe, Middle East & Africa has fallen around 42% this year so far compared to 2007.

UBS Says It's Bad, But It Could Be Worse

UBS came out Friday and gave us a quick estimate of its Q2 profits. Bottom line is that the investment bank lost more money in the period (although the firm didn't specify the likely asset writedown number, which has been put as high as $7.5bn), but that a tax credit of $2.9bn and profits from the company's wealth management and asset management units means that second-quarter earnings are likely to be 'at or slightly below break-even'. The bank also said that there is no current need to raise additional capital.