Investment banks, asset managers shedding jobs

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INVESTMENT banks and asset managers are trimming their headcount as bottom lines get battered by the US-China trade war, rising US interest rates and slowing economic growth. Read more at The Business Times.

Société Générale SA is the latest to fall victim to the industry's increasingly challenging environment.INVESTMENT banks and asset managers are trimming their headcount as bottom lines get battered by the US-China trade war, rising US interest rates and slowing economic growth.

UBS Group chief executive officer Sergio Ermotti has also guided that income from its investment bank will decline by about a third in the first quarter from the year-earlier period. Over at JP Morgan Chase & Co, about a hundred staff in its asset and wealth-management division have been told to go in late March after a periodic review of staffing. The US bank employed nearly 24,000 people in its asset and wealth management at the end of last year.

Nomura is said to have axed eight of its nine staff from its Singapore equities research team. Most of Nomura's cost cuts in its wholesale business will be completed by March 2020. It also plans to eliminate at least 30 of its 156 retail brokerage branches dotted across Japan. Nomura declined comment.

"Overall, the market in 2018 was challenging. Across the board, asset management firms are facing rising costs and lower fee revenue. We have been reviewing all areas of our business to determine which initiatives and activities should be prioritised in the current operating environment," an Eastspring spokeswoman said.

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