4 More Pieces Of News That Underline Just How Tough It Is Out There

Here are four more pieces of news that underline just how tough it is out there at the moment.

1. The Financial Times reports that Nomura has revealed that it is to implement a $400m cost-cutting program in its wholesale banking operation, after the division sustained a $193m Q2 loss.

Jesse Bhattal, Nomura's wholesale banking CEO, said that the move was designed 'to strike the right balance between continuing to grow selectively and rooting out underperformance across all the businesses and geographies'.

2. Dow Jones Newswires reports that Morgan Stanley Smith Barney 'will bring on fewer recuiters to its adviser-training program next year, as the big brokerage looks to cut costs'.

The firm seems likely to bring on around 1,750 trainees this year, but will whittle them down to 1,250 fairly quickly.

3. Reuters reports that UBS is no longer looking at relocating staff to New York's World Trade Center site.

The bank is thought to have been in advanced talks about moving investment banking staff from Stamford, but the plan is now said to have been ditched. The news agency quotes a source who said: 'This wasn't about not being able to come to an agreement on a price. The explanation is about earnings (or lack of them)'.

4. The Telegraph reports that City job cuts could cost the UK government around $2.12bn in lost tax revenues, 'as investment banks draw up plans to cut thousands of staff after the summer break'.

The newspaper says that it believes that, based on 'sources and other estimates', as many as 16,000 jobs could be cut by investment banks in the City by the year-end.

image: © antaean

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