Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Citigroup slashes jobs, Wall St up

While you were sleeping: Citigroup slashes jobs, Wall St gains

Dec. 6 (BusinessDesk) – Citigroup chief executive Michael Corbat has wasted little time in cost cutting since taking over the helm of America’s third-largest bank from Vikram Pandit in October.

The New York-based firm has announced plans to eliminate 11,000 jobs worldwide, about 4 percent of its workforce, and will take a US$1 billion charge in the fourth quarter. Investors cheered the news, sending the shares up 6.3 percent on the New York Stock Exchange

More than half the cuts will come from Citigroup’s global consumer-banking business in countries ranging from Pakistan to Uruguay.

The Dow Jones Industrial Average rallied almost 1 percent, snapping a two-day slide, and the Standard & Poor’s 500 Index gained 0.6 percent. Investors said equity markets are still beholden to stalled fiscal cliff talks in Washington though with a drop of optimism both sides could be softening.

Plains Exploration & Production jumped 25 percent and McMoRan Exploration soared about 83 percent after Freeport-McMoRan Copper & Gold agreed to acquire them for about $9 billion. Freeport dropped 13.4 percent as some analysts questioned the wisdom of merging a miner with an energy company.

Apple fell 4.2 percent after reports that a clearing house, COR Clearing, had raised its margin requirements for Apple to 60 percent from 30 percent because of what it called “high concentration.” Facebook slipped 0.3 percent as Nasdaq OMX Group said the social media company will replace Infosys on the Nasdaq 100 Index on Dec. 12.

Helping lift stocks, a gauge of services industries in the US rose faster than expected last month.

The Institute for Supply Management’s non-manufacturing index rose to 54.7 from 54.2 in October, surprising economists who were projecting a decline. Still, the employment gauge fell to 50.3, the lowest since July, though still indicating expansion.

Another report showed the US companies added fewer workers in November though this can be put down to the disruption from Hurricane Sandy.

Employment rose by 118,000, less than the 125,000 estimate in a Bloomberg survey and down from 157,000 the previous month, according to the ADP Research Institute. Storm disruptions probably reduced payrolls by 86,000.

The data provides a clue to the private hiring component of the Labor Department’s non-farm payrolls survey tomorrow, a key measure of employment growth. The jobless rate is expected to have held unchanged at 7.9 percent.

The euro fell from a seven-week high after against the greenback after the indebted nation sold fewer bonds than it had targeted, stoking concern a further request for euro financial aid could come sooner rather than later.

Spain sold 4.3 billion euros of debt, missing the top end of the 3.5 billion to 4.5 billion euros it targeted.

The euro traded recently at $1.3082, having earlier reached a session high of $1.3126 according to Reuters data, the highest since Oct. 18.

Services and manufacturing output contracted for a 10th straight month in November, according to Markit Economics’ composite index of purchasing managers, which edged up to a still-negative reading of 46.5 from 45.7 a month earlier.

Finland became the latest European nation to slide into recession, with its economy contracting 0.1 percent in the third quarter, following a 1.1 percent contraction three months earlier. Economists had expected growth in the third quarter.

Poland, which is hoping to avoid recession, cut its seven-day reference rate a quarter point to 4.25 percent, the second reduction in as many months.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news