Deutsche Bank staff "sent home" as 18,000 job cuts begin – economic life | Business

Hello and welcome to our slippery coverage of the global economy, financial markets, the eurozone and businesses.

This is a dark day for Deutsche Bank staff, after the banking giant announced plans to cut 18,000 jobs worldwide, about one-fifth of its workforce.

The ax is hovering over the staff of the City of London, where Deutsche employs thousands of people, as well as that of New York and offices in the Asia-Pacific region. Reuters reports that "whole teams" in some Asian operations have already been sent home today (more information on this soon).

The job cuts are part of a drastic restructuring of the troubled Deutsche Bank, which has suffered from poor profitability and heavy fines.

As part of this plan, it will reduce its investment banking business, close its equity trading business and reduce bond and rate trading. This will help reduce its workforce to about 74,000 people.

It is also turning about 74 billion euros of non-performing loans into a new dubious bank, while CEO Christian Sewing is desperately trying to revive the company.

Wayne McCurrie
(@WayneMcCurrie)

Deutsche Bank will lay off 18,000 people worldwide and transfer 60 billion impaired loans into a special vehicle. Also going out of the equity business. Morgan Stanley has reduced equity exposure to the lowest level for a long time. They say that lower bonds = slowdown

July 8, 2019

My colleague Simon Goodley said:

Hundreds of city employees fear for jobs after World Bank, one of Square Mile's largest employers, announces plans to cut 18,000 employees around the world revitalize its reputation and activities.

The layoffs, equivalent to 20% of the bank's workforce, come after CEO Christian Sewing announced a major restructuring in May, when he promised shareholders "severe restrictions" to the bank of investment and that it would continue with an additional 1 billion euros. 880m) in cups this year.

This promise came after similar measures taken in 2018, which resulted in 6,000 job cuts and prevented the merger with competitor Commerzbank.

Also coming today

Investors will also digest the Greek legislative elections yesterday, which saw the right-wing NDP New Democracy party overthrow the leftist Syriza party.

Prime Minister Alexis Tsipras conceded, so Kyriakos Mitsotakis of ND should be sworn in today.

The Turkish lira is also under pressure after President Recep Tayyip Erdoğan fired the governor of the country's central bank.

The sudden withdrawal of Murat Cetinkaya undermines confidence in the bank's independence, given Erdoğan's regular requests to lower interest rates. The pound went down 2% this morning.

L & # 39; s calendar

• 7 am: data on German industrial production and trade
• 9.30am: Sentix study on investor confidence in the euro zone