Financial News reports that some of the biggest players in the equity derivatives market took a bath in October due to a 'sudden rise in volatility and correlation'. According to the newspaper, BNP Paribas, Deutsche Bank and Natixis all sustained losses of between $382m - $636m during the month.
And Bloomberg reports that BNP Paribas's stock fell to a 5-year low during trading Tuesday, on concerns that the bank may need to go to the well for additional capital.
Bloomberg also reports that Bank of America will spend around $7bn to increase its stake in China Construction Bank from 10.8% to 19.13%.
Financial News also reports that JPMorgan is to go ahead with the $352m relocation of its European HQ from the City to London's Docklands. The building, which will house firm staff currently in 7 locations around the City, will be completed no earlier than 2012. The bank does, however, have the flexibility to scale-back its plans for the building in the event that it needs less staff than it currently envisages.
Reuters reports that inter-dealer broker ICAP's shares where on the rise in early trading Tuesday, after the firm posted a better-than-expected first-half profit. Net income rose 5% to $126m.
Finally, ChannelNewsAsia reports that Macquarie has posted a 43% fall in first-half net profit, which came in at $399m. Writedowns and one-off costs came in at $748m. The bank said in a statement that: 'The result was achieved during a period of unprecedented global financial market conditions that resulted in significant restructuring costs, provisions and writedowns'. The bank also said that it has no need to raise additional capital. Macquarie's stock responded well to the news Tuesday, rising as much as 25% in early trading in Sydney.
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