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

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news