Today’s Stop Press

Intesa Job Cuts

Italian bank Intesa has announced it has reached an agreement with trade unions to cut 9,000 jobs during the next three years. Cost cutting and digitalization has led to the need to trim the bank’s 94,000 workforce. Four thousand of these cuts will come from retirements. The bank has booked a provision of Euro 350 million for this year. Whilst the majority of the cuts will come from the closure of branches in Italy it should be noted that two thousand will come from its overseas network.

UK Civil Service Sets Office Work Target

Going forward all UK civil servants will be required to spend a minimum of 60 per cent of the week in the office. It is understood that quarterly figures will be published tracking how the target is being met. Interesting to note that the Business Secretary complained about a culture of presenteeism in the civil service. Difficult to avoid given this high-profile stance with tracking.

Barclays Reports

Barclays reported an increase of 23 per cent in third quarter profits to £1.6 billion. The bank was boosted by higher interest rates and increased deal making. Its investment bank reported increased revenues of £2.6 billion, up six per cent. Equities trading and debt orientated deals were key contributors. The retail bank announced new loan loss provisions of £82 million. All sounds very benign.

Deutsche’s Record Results

Deustche Bank reported record third quarter results with profits up 31 per cent to Euro 2.3 billion. Investment bank profits rose 11 per cent. It should be made clear that my departure from the organization had nothing to do with these results! A word of warning. Loan loss provisions increased by Euro 300 million to Euro 1.8 billion causing a slump of 4 per cent in the share price.

Jupiter Retains Key Fund

Jupiter has decided against allowing star fund manager, Ben Whitmore, to continue managing the £616 million Global Value Equity Unit Trust fund. Mr. Whitmore is leaving Jupiter to set up his own business. Jupiter has suffered £ 5 billion in fund withdrawals as the market shifts from a focus on stock picking to index tracking.