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

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news