Top US financial services&nbsp;firm&nbsp;Morgan Stanley is all set to cut around 3,000 positions by the end of June, reports US TV network CNBC. This will be the second round of layoffs in the US-based multinational company in the last six months.&nbsp;

According to Bloomberg, the layoffs are expected to have the greatest impact on banking and trading staff. The layoffs will affect around 5% of the bank's employees. But financial advisors and support staff&nbsp;will be exempt from the reduction, say reports.&nbsp;

Wall Street's biggest firms are shedding jobs as the industry grapples with a slump in public offerings&nbsp;and mergers this year. As per reports, IPO volumes are down 74% compared to last year, while mergers and debt issuance have remained muted.

From boom to bust

This downturn is a significant change from last year's boom in deals ignited by the pandemic, followed by a bust that began after the Federal Reserve started raising rates to cool an overheating economy.

Wall Street's woes have been exacerbated by rising costs and falling revenue, with Morgan Stanley facing criticism from analysts for posting higher costs in the first quarter as revenue dwindled. Investors are wary of the reduced profit margins due to expenses in the firm's investment bank and wealth management division.

Morgan Stanley's moves are not isolated. The industry began to cut jobs&nbsp;from September 2022, when Goldman Sachs started culling low-performing staff. After other big Wall Street businesses followed suit, Goldman had to resort to yet another, more extensive round of layoffs in January.

In recent weeks, large banks such as Citigroup and Bank of America have also slashed a few hundred positions each, claiming that this will position them well when a resurgence in deals occurs.

Ultimately, Wall Street's future remains uncertain, but the current slump is a reminder that the financial industry is subject to the same boom-and-bust cycles as any other. As firms like Morgan Stanley&nbsp;cut jobs, employees across the 'street' are curious about the industry's future.

(With agency inputs)&nbsp;

Top US financial services firm Morgan Stanley is all set to cut around 3,000 positions by the end of June, reports US TV network CNBC. This will be the second round of layoffs in the US-based multinational company in the last six months.

Top US financial services firm Morgan Stanley is all set to cut around 3,000 positions by the end of June, reports US TV network CNBC. This will be the second round of layoffs in the US-based multinational company in the last six months. According to Bloomberg, the layoffs are expected to have the greatest impact on banking and trading staff. The layoffs will affect around 5% of the bank's employees. But financial advisors and support staff will be exempt from the reduction, say reports. Wall Street's biggest firms are shedding jobs as the industry grapples with a slump in public offerings and mergers this year. As per reports, IPO volumes are down 74% compared to last year, while mergers and debt issuance have remained muted. From boom to bust This downturn is a significant change from last year's boom in deals ignited by the pandemic, followed by a bust that began after the Federal Reserve started raising rates to cool an overheating economy. Wall Street's woes have been exacerbated by rising costs and falling revenue, with Morgan Stanley facing criticism from analysts for posting higher costs in the first quarter as revenue dwindled. Investors are wary of the reduced profit margins due to expenses in the firm's investment bank and wealth management division. Morgan Stanley's moves are not isolated. The industry began to cut jobs from September 2022, when Goldman Sachs started culling low-performing staff. After other big Wall Street businesses followed suit, Goldman had to resort to yet another, more extensive round of layoffs in January. In recent weeks, large banks such as Citigroup and Bank of America have also slashed a few hundred positions each, claiming that this will position them well when a resurgence in deals occurs. Ultimately, Wall Street's future remains uncertain, but the current slump is a reminder that the financial industry is subject to the same boom-and-bust cycles as any other. As firms like Morgan Stanley cut jobs, employees across the 'street' are curious about the industry's future. (With agency inputs)

Layoffs loom over Wall Street as Morgan Stanley plans to cut 3,000 jobs

Mutual funds managed by Morgan Stanley, Fidelity, and BlackRock have been hit hard by the recent collapse of Silicon Valley Bank and Signature Bank, according to Morningstar data.

US bank failures impact mutual fund portfolios

A senior official of Morgan Stanley chased a phone thief on foot and caught him. The incident occured in Mumbai. According to the police, 41-year-old Sudhanshu Nivsarkar, who is vice president at Morgan Stanley, was sitting in an autorickshaw when his mobile phone was snatched from his hand.

The incident occurred on a busy road in the metropolis. Nivsarkar was stuck in a traffic jam. He held his phone in his left hand when the thief snatched it.

Nivsarkar immediately gave a chase and caught up with the thief but was pushed by him. He soon regained balance and continued the chase. The chase was soon over when the thief tripped and Nivsarkar, along with passerbys overpowered him to procure the phone.

Nivsarkar then called police station. A mobile police unit was sent at the scene and the thief was arrested.

The thief, 32-year-old Sagar Thakur, was&nbsp;roughed up by the crowd before he was handed over to the police.

“Thakur has been arrested and charged with robbery under the Indian Penal Code. We are looking into his background to check if he has similar cases registered against him in the past,” a police official said as per Hindustan Times.

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

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A senior official of Morgan Stanley chased a phone thief on foot and caught him. The incident occured in Mumbai. According to the police, 41-year-old Sudhanshu Nivsarkar, who is vice president at Morgan Stanley, was sitting in an autorickshaw when his mobile phone was snatched from his hand.

A senior official of Morgan Stanley chased a phone thief on foot and caught him. The incident occured in Mumbai. According to the police, 41-year-old Sudhanshu Nivsarkar, who is vice president at Morgan Stanley, was sitting in an autorickshaw when his mobile phone was snatched from his hand. The incident occurred on a busy road in the metropolis. Nivsarkar was stuck in a traffic jam. He held his phone in his left hand when the thief snatched it. Nivsarkar immediately gave a chase and caught up with the thief but was pushed by him. He soon regained balance and continued the chase. The chase was soon over when the thief tripped and Nivsarkar, along with passerbys overpowered him to procure the phone. Nivsarkar then called police station. A mobile police unit was sent at the scene and the thief was arrested. The thief, 32-year-old Sagar Thakur, was roughed up by the crowd before he was handed over to the police. “Thakur has been arrested and charged with robbery under the Indian Penal Code. We are looking into his background to check if he has similar cases registered against him in the past,” a police official said as per Hindustan Times. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Morgan Stanley VP chases phone thief on foot, hands him over to police

Wall Street major Morgan Stanley is expected to start a fresh round of layoffs globally in the coming weeks, as dealmaking business takes a hit due to rising inflation and an economic downturn.

Morgan Stanley to reduce employee headcount in coming weeks as dealmaking slows

The German branch of Morgan Stanley was searched by prosecutors in Frankfurt in relation to "past activity" on Tuesday, a spokesperson for the U.S. bank said.

German prosecutors said earlier Tuesday that they were searching a bank in Frankfurt as well as the private homes of two suspects in relation to the "cum-ex" tax fraud scandal, but they did not name which bank.

Also read |&nbsp;<a href="https://www.wionews.com/world/why-hong-kong-plummeted-68-places-in-the-recent-press-freedom-rankings-476076">Why Hong Kong plummeted 68 places in the recent press freedom rankings</a>

The Morgan Stanley spokesperson said the bank was continuing to cooperate with German authorities. 
Prosecutors said the search was being conducted in particular to collect relevant emails and written correspondence.

The scandal is Germany`s biggest post-war fraud involving a share-trading scheme that the authorities say cost taxpayers billions of euros.

A large number of banks were involved in the cum-ex deals: In the past few weeks alone there have been raids on the German branches of Barclays&nbsp;and the investment bank Merrill Lynch.

The German branch of Morgan Stanley was searched by prosecutors in Frankfurt in relation to "past activity" on Tuesday, a spokesperson for the U.S. bank said. German prosecutors said earlier Tuesday that they were searching a bank in Frankfurt as well as the private homes of two suspects in relation to the "cum-ex" tax fraud scandal, but they did not name which bank.

The German branch of Morgan Stanley was searched by prosecutors in Frankfurt in relation to "past activity" on Tuesday, a spokesperson for the U.S. bank said. German prosecutors said earlier Tuesday that they were searching a bank in Frankfurt as well as the private homes of two suspects in relation to the "cum-ex" tax fraud scandal, but they did not name which bank. Also read | Why Hong Kong plummeted 68 places in the recent press freedom rankings The Morgan Stanley spokesperson said the bank was continuing to cooperate with German authorities. Prosecutors said the search was being conducted in particular to collect relevant emails and written correspondence. The scandal is Germany`s biggest post-war fraud involving a share-trading scheme that the authorities say cost taxpayers billions of euros. A large number of banks were involved in the cum-ex deals: In the past few weeks alone there have been raids on the German branches of Barclays and the investment bank Merrill Lynch.

Morgan Stanley's German branch searched by prosecutors in relation to tax fraud scandal

Morgan Stanley has agreed to pay 60 million dollars to settle a lawsuit by customers who said the wall street bank exposed their personal data.

Morgan Stanley has agreed to pay 60 million dollars to settle a lawsuit

American multinational Morgan Stanley has agreed to pay $60 million in order to settle a lawsuit by customers who have claimed that the Wall Street bank exposed their personal data. This was done when the bank failed twice to properly retire its old information technology.

Nearly 15 million customers filed a preliminary settlement of the proposed class action in Manhattan federal court. However, it still requires approval by US District Judge Analisa Torres.&nbsp;

The customers have accused Morgan Stanley of failing to decommission two wealth management data centres before the unencrypted equipment was resold to unauthorised third parties. The customers also claim that few old servers containing customer data went missing after Morgan Stanley transferred them in 2019 to an outside vendor.&nbsp;

<a href="https://www.wionews.com/technology/technology-giants-spy-on-staff-to-prevent-unionising-report-says-441951">Also read |&nbsp;Technology giants spy on staff to prevent unionising, report says</a>

However, as per court papers, the servers were later recovered.&nbsp;

The customers will be receiving at least two years of fraud insurance coverage. Also, each person can apply for reimbursement of up to $10,000 in out-of-pocket losses.

As per the settlement papers, Morgan Stanley has denied wrongdoing and has made "substantial" upgrades to its data security practices.

(With inputs from agencies)

American multinational Morgan Stanley has agreed to pay $60 million in order to settle a lawsuit by customers who have claimed that the Wall Street bank exposed their personal data.

American multinational Morgan Stanley has agreed to pay $60 million in order to settle a lawsuit by customers who have claimed that the Wall Street bank exposed their personal data. This was done when the bank failed twice to properly retire its old information technology. Nearly 15 million customers filed a preliminary settlement of the proposed class action in Manhattan federal court. However, it still requires approval by US District Judge Analisa Torres. The customers have accused Morgan Stanley of failing to decommission two wealth management data centres before the unencrypted equipment was resold to unauthorised third parties. The customers also claim that few old servers containing customer data went missing after Morgan Stanley transferred them in 2019 to an outside vendor. Also read | Technology giants spy on staff to prevent unionising, report says However, as per court papers, the servers were later recovered. The customers will be receiving at least two years of fraud insurance coverage. Also, each person can apply for reimbursement of up to $10,000 in out-of-pocket losses. As per the settlement papers, Morgan Stanley has denied wrongdoing and has made "substantial" upgrades to its data security practices. (With inputs from agencies)

In a data security lawsuit, Morgan Stanley agrees to pay $60 million

Morgan&nbsp;Stanley's staff and clients will not be allowed to enter the bank's New York offices if they are not fully vaccinated, according to a source familiar with the matter.

Employees, clients, and visitors will be required to attest to being fully vaccinated in order to access the bank's offices in New York and Westchester, a source familiar with the matter told Reuters late Tuesday (June 22).

Those who are not fully vaccinated will need to work remotely, the source added.

The new policy will come into effect on July 12, the source said, adding that the policy will allow removal of COVID-related restrictions on face coverings and maintaining physical distancing inside office premises.

Morgan&nbsp;Stanley&nbsp;had already implemented "vaccine-only" workspaces in some divisions including institutional securities and wealth management, according to Financial Times, which first reported the news.

Morgan Stanley's staff and clients will not be allowed to enter the bank's New York offices if they are not fully vaccinated, according to a source familiar with the matter.

Morgan Stanley's staff and clients will not be allowed to enter the bank's New York offices if they are not fully vaccinated, according to a source familiar with the matter. Employees, clients, and visitors will be required to attest to being fully vaccinated in order to access the bank's offices in New York and Westchester, a source familiar with the matter told Reuters late Tuesday (June 22). Those who are not fully vaccinated will need to work remotely, the source added. The new policy will come into effect on July 12, the source said, adding that the policy will allow removal of COVID-related restrictions on face coverings and maintaining physical distancing inside office premises. Morgan Stanley had already implemented "vaccine-only" workspaces in some divisions including institutional securities and wealth management, according to Financial Times, which first reported the news.

Morgan Stanley to bar unvaccinated employees, clients from New York offices

From the pinnacle of the City of London's largest skyscraper, Stuart Lipton is wagering a $1.2 billion bet that the British capital remains a master of the international financial universe no matter what happens with <a href="https://www.wionews.com/world/brexit-on-october-31-a-priority-for-british-government-queen-255851">Brexit</a>.

The 76-year-old property developer is not alone. Bankrolled by a host of global investors, including France's Axa, his big-ticket gamble in London's financial district is - so far - on the money.

The cataclysmic warnings during the 2016 referendum that London would lose its financial throne if it voted to leave the European Union (EU) have, so far, been proven wrong. London is still the world's banker, only bigger by some measures.

"London is extraordinarily resilient and its future as a finance centre is secure because what we have here is unique," Lipton told Reuters on the 61st floor of 22 Bishopsgate, set to become western Europe's second tallest skyscraper when it opens next year.

In the year to June, London has attracted more cross border commercial real estate investment than any other city. It has overtaken New York as a destination for fintech investment and it has increased its dominance of the world's $6.6 trillion daily foreign exchange market.

Since the vote to leave the EU, Britain has leapfrogged the United States to become the largest centre for trading interest rate swaps, despite calls by ex-French President Francois Hollande to end London's dominance in clearing euro-denominated derivatives.

That London has expanded its influence as an international finance centre is one of the biggest riddles of the United Kingdom's tortuous three-year <a href="https://www.wionews.com/business-economy/uk-economy-starts-to-shows-cracks-under-brexit-and-global-strains-254409">Brexit crisis.</a>

The city's standing ensures the United Kingdom keeps one of its last big chips at the top table of world politics just as it splits from the EU.

It also means EU companies will still come to London to raise finance outside the bloc after Brexit, a fact not lost on Wall Street heavyweights such as Goldman Sachs and JP Morgan.

Just a mile away from 22 Bishopsgate, Goldman opened its new 1 million square foot European headquarters - complete with mothers' rooms and wildflowers on the roof - in July, three years on from the 2016 referendum.

Largely abandoned by the British government during Brexit talks, ten senior industry officials told Reuters London's financial services sector has grown since 2016 because there is no realistic competitor in its time zone.

And high-rolling bankers are too attached to its Anglo-Saxon, work-hard, play-hard culture.

The chief executive of the British division of one of Europe's largest banks said although some business will move to the EU, most senior bankers will be reluctant to leave London. He would consider taking a 20 per cent&nbsp;pay cut to remain in the city.

"If you are an Italian banker, who moved out to London 20 years ago, and your kids go to private school around the corner then you are not going to move to Frankfurt," he said.

A global hub for trading, lending and investing, London is the largest net exporter of financial services in the world, with the EU accounting for a quarter of the business.

The 2016 referendum shocked many of the masters of London's financial universe, triggering the biggest one-day fall of the pound since the era of free-floating exchange rates was introduced in the early 1970s.

But so far, most major financial institutions have opted against moving large numbers of people and activities until the loss of access to the EU's lucrative single market is confirmed.

Banks, insurers and asset managers have shifted over a trillion euros of assets such as derivatives and bonds from London to the continent and opened new EU hubs as a hedge against London suddenly being cut off from the bloc if Britain exits the EU without a formal agreement.

The Bank of England estimates around 4,000 people may have moved by the time Britain has exited the EU. But the key decisions are still taken in London.

Reuters contacted JP Morgan and Goldman, and rivals Citi, Bank of America, UBS, Morgan Stanley, Credit Suisse&nbsp;and Deutsche Bank, to seek details on how a 'no-deal Brexit' might accelerate the transfer of resources and activities from London.

All banks said they were prepared for a no-deal Brexit, and had been since the first quarter.

Earlier this year, Morgan Stanley's chief executive, James Gorman, said that he scarcely worried about Brexit. "That's not in my top 200 issues," he said.

British data shows the total number of people employed in the City between 2016 and 2018 overall rose by 31,000, though the total number of people employed specifically in banking and insurance is down 3,000 over the period.

It is not clear how much of that drop is due to Brexit and how much is due to new regulations or structural changes, such as higher numbers of tech specialists at lenders while traditional banking jobs shrink.

Initial estimates of potential job losses ranged from about 30,000 roles within a year of Britain leaving the EU, estimated by the Brussels-based Bruegel research group, to up to 75,000 by 2025 by Oliver Wyman.

Oliver Wyman said they stand by their predictions because it is important to distinguish between job losses on the first day of Brexit and over the longer term. The final number will depend upon the level of market access, which is not clear yet.

Bruegel did not respond to a request for comment.

Financial capitals such as London have remarkable longevity and their rise and fall typically happens at a glacial pace, said Youssef Cassis, a professor of economic history who specialises in financial centres.

"There is no precedent for decoupling between a major economic power- in this case, the European Union- and its financial centre, London," he said.

Some key activities have moved out of London ahead of Brexit. Eurozone government bond and repurchase agreements trading worth around 230 billion euros a day, along with clearing, switched to Amsterdam, Milan and Paris earlier this year.

London-based CBOE Europe, the EU's largest share trading venue, began trading euro shares at its new Amsterdam hub at the start of October.

Nicolas Mackel, who heads a body promoting Luxembourg's financial centre, said it would be a shift in activities and not jobs that will affect London most.

"It's not between now and Christmas you have to look, but on a five, 10, 15 and 20-year framework. It's a false comfort that you are providing by only focusing on jobs," Mackel said.

After Brexit, the $15.9 trillion EU 27 economy will still be reliant on a financial capital outside its borders, which could be politically hard for Brussels to stomach indefinitely.

One European Commission official, speaking on condition of anonymity, told Reuters that the EU had no intention of smothering Britain's financial sector to accelerate its own plans for an EU capital markets union.

But there is scepticism in the market about the longevity of such pledges.

"Why should one expect the EU to give an economic answer to what is a political challenge?" said Xavier Rolet, former head of London Stock Exchange and CEO of investment manager CQS.

"I would expect them to respond politically, even if those answers are not necessarily in the best economic interests of EU-based investors, corporates and banks."

Rolet, who said in the aftermath of the referendum that half of all finance jobs in London may disappear if derivatives clearing left the capital, said it was too early to assess the implications of Brexit.

"I do stand by my statement," he said of the potential job losses.

From the pinnacle of the City of London's largest skyscraper, Stuart Lipton is wagering a $1.2 billion bet that the British capital remains a master of the international financial universe no matter what happens with Brexit.

From the pinnacle of the City of London's largest skyscraper, Stuart Lipton is wagering a $1.2 billion bet that the British capital remains a master of the international financial universe no matter what happens with Brexit. The 76-year-old property developer is not alone. Bankrolled by a host of global investors, including France's Axa, his big-ticket gamble in London's financial district is - so far - on the money. The cataclysmic warnings during the 2016 referendum that London would lose its financial throne if it voted to leave the European Union (EU) have, so far, been proven wrong. London is still the world's banker, only bigger by some measures. "London is extraordinarily resilient and its future as a finance centre is secure because what we have here is unique," Lipton told Reuters on the 61st floor of 22 Bishopsgate, set to become western Europe's second tallest skyscraper when it opens next year. In the year to June, London has attracted more cross border commercial real estate investment than any other city. It has overtaken New York as a destination for fintech investment and it has increased its dominance of the world's $6.6 trillion daily foreign exchange market. Since the vote to leave the EU, Britain has leapfrogged the United States to become the largest centre for trading interest rate swaps, despite calls by ex-French President Francois Hollande to end London's dominance in clearing euro-denominated derivatives. That London has expanded its influence as an international finance centre is one of the biggest riddles of the United Kingdom's tortuous three-year Brexit crisis. The city's standing ensures the United Kingdom keeps one of its last big chips at the top table of world politics just as it splits from the EU. It also means EU companies will still come to London to raise finance outside the bloc after Brexit, a fact not lost on Wall Street heavyweights such as Goldman Sachs and JP Morgan. Just a mile away from 22 Bishopsgate, Goldman opened its new 1 million square foot European headquarters - complete with mothers' rooms and wildflowers on the roof - in July, three years on from the 2016 referendum. Largely abandoned by the British government during Brexit talks, ten senior industry officials told Reuters London's financial services sector has grown since 2016 because there is no realistic competitor in its time zone. And high-rolling bankers are too attached to its Anglo-Saxon, work-hard, play-hard culture. The chief executive of the British division of one of Europe's largest banks said although some business will move to the EU, most senior bankers will be reluctant to leave London. He would consider taking a 20 per cent pay cut to remain in the city. "If you are an Italian banker, who moved out to London 20 years ago, and your kids go to private school around the corner then you are not going to move to Frankfurt," he said. A global hub for trading, lending and investing, London is the largest net exporter of financial services in the world, with the EU accounting for a quarter of the business. The 2016 referendum shocked many of the masters of London's financial universe, triggering the biggest one-day fall of the pound since the era of free-floating exchange rates was introduced in the early 1970s. But so far, most major financial institutions have opted against moving large numbers of people and activities until the loss of access to the EU's lucrative single market is confirmed. Banks, insurers and asset managers have shifted over a trillion euros of assets such as derivatives and bonds from London to the continent and opened new EU hubs as a hedge against London suddenly being cut off from the bloc if Britain exits the EU without a formal agreement. The Bank of England estimates around 4,000 people may have moved by the time Britain has exited the EU. But the key decisions are still taken in London. Reuters contacted JP Morgan and Goldman, and rivals Citi, Bank of America, UBS, Morgan Stanley, Credit Suisse and Deutsche Bank, to seek details on how a 'no-deal Brexit' might accelerate the transfer of resources and activities from London. All banks said they were prepared for a no-deal Brexit, and had been since the first quarter. Earlier this year, Morgan Stanley's chief executive, James Gorman, said that he scarcely worried about Brexit. "That's not in my top 200 issues," he said. British data shows the total number of people employed in the City between 2016 and 2018 overall rose by 31,000, though the total number of people employed specifically in banking and insurance is down 3,000 over the period. It is not clear how much of that drop is due to Brexit and how much is due to new regulations or structural changes, such as higher numbers of tech specialists at lenders while traditional banking jobs shrink. Initial estimates of potential job losses ranged from about 30,000 roles within a year of Britain leaving the EU, estimated by the Brussels-based Bruegel research group, to up to 75,000 by 2025 by Oliver Wyman. Oliver Wyman said they stand by their predictions because it is important to distinguish between job losses on the first day of Brexit and over the longer term. The final number will depend upon the level of market access, which is not clear yet. Bruegel did not respond to a request for comment. Financial capitals such as London have remarkable longevity and their rise and fall typically happens at a glacial pace, said Youssef Cassis, a professor of economic history who specialises in financial centres. "There is no precedent for decoupling between a major economic power- in this case, the European Union- and its financial centre, London," he said. Some key activities have moved out of London ahead of Brexit. Eurozone government bond and repurchase agreements trading worth around 230 billion euros a day, along with clearing, switched to Amsterdam, Milan and Paris earlier this year. London-based CBOE Europe, the EU's largest share trading venue, began trading euro shares at its new Amsterdam hub at the start of October. Nicolas Mackel, who heads a body promoting Luxembourg's financial centre, said it would be a shift in activities and not jobs that will affect London most. "It's not between now and Christmas you have to look, but on a five, 10, 15 and 20-year framework. It's a false comfort that you are providing by only focusing on jobs," Mackel said. After Brexit, the $15.9 trillion EU 27 economy will still be reliant on a financial capital outside its borders, which could be politically hard for Brussels to stomach indefinitely. One European Commission official, speaking on condition of anonymity, told Reuters that the EU had no intention of smothering Britain's financial sector to accelerate its own plans for an EU capital markets union. But there is scepticism in the market about the longevity of such pledges. "Why should one expect the EU to give an economic answer to what is a political challenge?" said Xavier Rolet, former head of London Stock Exchange and CEO of investment manager CQS. "I would expect them to respond politically, even if those answers are not necessarily in the best economic interests of EU-based investors, corporates and banks." Rolet, who said in the aftermath of the referendum that half of all finance jobs in London may disappear if derivatives clearing left the capital, said it was too early to assess the implications of Brexit. "I do stand by my statement," he said of the potential job losses.

London retains global finance throne amid Brexit chaos

Eurozone inflation slowed in September to near a three-year low because of cheaper energy although core inflation edged higher, highlighting the challenges facing the European Central Bank.

The divergence between the headline and core figures underlines the split of opinion over the state of the eurozone economy among the governors of the ECB. It wants to keep inflation below, but close to 2 per cent over the medium term but has so far failed to boost price growth despite years of unconventional steps.

Eurostat said on Tuesday that consumer prices in the 19 countries sharing the euro rose 0.2 per cent month-on-month in September for a 0.9 per cent year-on-year gain. Economists polled by Reuters had expected an unchanged reading of 1.0 per cent.

The weaker than expected September number, the lowest year-on-year figure since November 2016, was mainly due to a 1.8 per cent year-on-year fall in energy prices.

Excluding energy and equally volatile unprocessed food, price growth accelerated to 1.2 per cent in September from 1.1 per cent in August. This number is called core inflation by the ECB which it monitors for monetary policy decisions,

An even more narrowly defined core inflation measure, which excludes energy, food, alcohol, and tobacco and looked at by many market economists, also accelerated to 1.0 per cent from 0.9 per cent year-on-year.

"It should continue to rise slightly in the coming months. However, the strong increase in underlying inflation hoped for by the ECB is still not in sight," said Christoph Weil, economist at Commerzbank.

The ECB decided on September 12 to resume asset purchases to inject more money into the slowing economy and in this way make prices grow more quickly.

But the decision was opposed by a third of ECB policymakers, including Germany's Sabine Lautenschlaeger who resigned before the end of her term last week.

ECB chief economist Philip Lane said last week the division was due to "ambiguity" over the state of the eurozone economy among ECB governors.

"We expect the central bank to take time to assess the impact of last month's easing package before taking further action," a team of Morgan Stanley economists said in a note.

They saw only a minimal boost to the economy even once quantitative easing restarted in November, with inflation remaining subdued. There were also a variety of downside risks to growth.

"With fiscal policy remaining reactive for now, we expect the ECB to take further action. Our base case is for another 10 bp cut in March, though the timing remains rather uncertain at this stage," the Morgan Stanley note said.

Eurozone inflation slowed in September to near a three-year low because of cheaper energy although core inflation edged higher, highlighting the challenges facing the European Central Bank.

Eurozone inflation slowed in September to near a three-year low because of cheaper energy although core inflation edged higher, highlighting the challenges facing the European Central Bank. The divergence between the headline and core figures underlines the split of opinion over the state of the eurozone economy among the governors of the ECB. It wants to keep inflation below, but close to 2 per cent over the medium term but has so far failed to boost price growth despite years of unconventional steps. Eurostat said on Tuesday that consumer prices in the 19 countries sharing the euro rose 0.2 per cent month-on-month in September for a 0.9 per cent year-on-year gain. Economists polled by Reuters had expected an unchanged reading of 1.0 per cent. The weaker than expected September number, the lowest year-on-year figure since November 2016, was mainly due to a 1.8 per cent year-on-year fall in energy prices. Excluding energy and equally volatile unprocessed food, price growth accelerated to 1.2 per cent in September from 1.1 per cent in August. This number is called core inflation by the ECB which it monitors for monetary policy decisions, An even more narrowly defined core inflation measure, which excludes energy, food, alcohol, and tobacco and looked at by many market economists, also accelerated to 1.0 per cent from 0.9 per cent year-on-year. "It should continue to rise slightly in the coming months. However, the strong increase in underlying inflation hoped for by the ECB is still not in sight," said Christoph Weil, economist at Commerzbank. The ECB decided on September 12 to resume asset purchases to inject more money into the slowing economy and in this way make prices grow more quickly. But the decision was opposed by a third of ECB policymakers, including Germany's Sabine Lautenschlaeger who resigned before the end of her term last week. ECB chief economist Philip Lane said last week the division was due to "ambiguity" over the state of the eurozone economy among ECB governors. "We expect the central bank to take time to assess the impact of last month's easing package before taking further action," a team of Morgan Stanley economists said in a note. They saw only a minimal boost to the economy even once quantitative easing restarted in November, with inflation remaining subdued. There were also a variety of downside risks to growth. "With fiscal policy remaining reactive for now, we expect the ECB to take further action. Our base case is for another 10 bp cut in March, though the timing remains rather uncertain at this stage," the Morgan Stanley note said.

Euro zone inflation slows to three-year low on cheaper energy

Saudi Aramco is pressing ahead with its listing plans this week, although some investors and analysts doubt it can now meet its timeline as it has not said when oil output will be restored after attacks on its facilities.

Reuters has reported it could take months for <a href="https://www.wionews.com/world/saudi-aramco-trading-arm-wants-refined-products-after-attacks-sources-250148">Aramco</a>, the world's biggest oil firm, to restore output after Saturday's attacks, which cut production by 5.7 million barrels per day, some 5 per cent of world oil supply.

The state-owned oil group will meet local Saudi banks to discuss the initial public offering (IPO) plans, but bankers at international lenders working on the IPO told Reuters there had been no communication from Aramco's management on any delay.

Aramco, which did not respond to a Reuters request for comment, is continuing to prepare for a local IPO, which the sources said may happen as early as November.

Reuters has reported that Aramco plans to sell 1 per cent this year, in a potential $20 billion deal, and another 1 per cent in 2020 in Riyadh ahead of an international sale.

Three sources close to the deal said meetings scheduled this week with Saudi banks to discuss the underwriting work they will do in the offering are still scheduled to take place.

But other sources, including bankers and <a href="https://www.wionews.com/business-economy/sensex-crashes-over-600-points-after-saudi-arabias-aramco-attacks-250193">investors</a>, said while work would continue, the attacks would have an impact.

"The train has left the station. But it's a pretty major event and a lot will depend on how quickly the damage will be repaired," one banker said.

The Aramco IPO is a pillar of an ambitious economic diversification drive by Crown Prince Mohammed bin Salman, who has put the firm's valuation at $2 trillion. The domestic flotation is the first step of a targeted 5 per cent sale.

"It would seem logical that Aramco's IPO will be delayed while the damage is assessed but beyond this, we would expect that the risk premium that investors will require should the IPO go ahead will now be higher," said Piers Hillier, chief investment officer at Royal London Asset Management.

Saudi Arabia, the world's top crude exporter, recently accelerated plans for the IPO, naming a new chairman for Aramco and mandating 9 banks in top roles.

A separate source with knowledge of the deal said Aramco has already carved up the different tasks for banks such as determining valuations, organizing roadshows and focusing on certain geographic areas.

"The banks continue to work on it until they are told otherwise. The sense is that they want it done as quick as they can," the source said.

Aramco Vulnerability

An Aramco pre-IPO meeting with analysts, both local and international, is scheduled for next week at Aramco's headquarters in Dhahran, two sources, said, with one adding that the meeting would still go ahead as planned despite the attack.

Even before the attack, Aramco was looking to place part of the offering to wealthy Saudi individuals to ensure demand, two other sources familiar with the matter told Reuters.

However, some analysts and investors said the strikes could pose a major setback to the Aramco offering. Oil prices surged oversupply concerns and the threat of a military response to the assault on the heartland of the Saudi oil industry, which US officials blamed on Iran, a charge Tehran denies. Dollar-denominated bonds issued by the Saudi government and Aramco hit multi-week lows on Monday, but rebounded on Tuesday.

"Even if Saudi Arabia’s oil facilities are quickly restored, the weekend’s attacks will raise concerns of potential geopolitical risk and the level of premia required," said Monica Malik, Chief Economist at Abu Dhabi Commercial Bank, in a research note.

"The developments also have significance ahead of the planned part-IPO of Aramco, highlighting the potential vulnerability of its key infrastructure and raising questions over the appropriate level of risk to be factored in the valuation."

Banks including JPMorgan, Morgan Stanley and Goldman Sachs have been appointed to coordinate the deal, which has already faced repeated delays and is crucial for Prince Mohammed's plans to diversify the Saudi economy in an era of low oil prices. 
&nbsp;

Saudi Aramco is pressing ahead with its listing plans this week, although some investors and analysts doubt it can now meet its timeline as it has not said when oil output will be restored after attacks on its facilities.

Saudi Aramco is pressing ahead with its listing plans this week, although some investors and analysts doubt it can now meet its timeline as it has not said when oil output will be restored after attacks on its facilities. Reuters has reported it could take months for Aramco, the world's biggest oil firm, to restore output after Saturday's attacks, which cut production by 5.7 million barrels per day, some 5 per cent of world oil supply. The state-owned oil group will meet local Saudi banks to discuss the initial public offering (IPO) plans, but bankers at international lenders working on the IPO told Reuters there had been no communication from Aramco's management on any delay. Aramco, which did not respond to a Reuters request for comment, is continuing to prepare for a local IPO, which the sources said may happen as early as November. Reuters has reported that Aramco plans to sell 1 per cent this year, in a potential $20 billion deal, and another 1 per cent in 2020 in Riyadh ahead of an international sale. Three sources close to the deal said meetings scheduled this week with Saudi banks to discuss the underwriting work they will do in the offering are still scheduled to take place. But other sources, including bankers and investors, said while work would continue, the attacks would have an impact. "The train has left the station. But it's a pretty major event and a lot will depend on how quickly the damage will be repaired," one banker said. The Aramco IPO is a pillar of an ambitious economic diversification drive by Crown Prince Mohammed bin Salman, who has put the firm's valuation at $2 trillion. The domestic flotation is the first step of a targeted 5 per cent sale. "It would seem logical that Aramco's IPO will be delayed while the damage is assessed but beyond this, we would expect that the risk premium that investors will require should the IPO go ahead will now be higher," said Piers Hillier, chief investment officer at Royal London Asset Management. Saudi Arabia, the world's top crude exporter, recently accelerated plans for the IPO, naming a new chairman for Aramco and mandating 9 banks in top roles. A separate source with knowledge of the deal said Aramco has already carved up the different tasks for banks such as determining valuations, organizing roadshows and focusing on certain geographic areas. "The banks continue to work on it until they are told otherwise. The sense is that they want it done as quick as they can," the source said. Aramco Vulnerability An Aramco pre-IPO meeting with analysts, both local and international, is scheduled for next week at Aramco's headquarters in Dhahran, two sources, said, with one adding that the meeting would still go ahead as planned despite the attack. Even before the attack, Aramco was looking to place part of the offering to wealthy Saudi individuals to ensure demand, two other sources familiar with the matter told Reuters. However, some analysts and investors said the strikes could pose a major setback to the Aramco offering. Oil prices surged oversupply concerns and the threat of a military response to the assault on the heartland of the Saudi oil industry, which US officials blamed on Iran, a charge Tehran denies. Dollar-denominated bonds issued by the Saudi government and Aramco hit multi-week lows on Monday, but rebounded on Tuesday. "Even if Saudi Arabia’s oil facilities are quickly restored, the weekend’s attacks will raise concerns of potential geopolitical risk and the level of premia required," said Monica Malik, Chief Economist at Abu Dhabi Commercial Bank, in a research note. "The developments also have significance ahead of the planned part-IPO of Aramco, highlighting the potential vulnerability of its key infrastructure and raising questions over the appropriate level of risk to be factored in the valuation." Banks including JPMorgan, Morgan Stanley and Goldman Sachs have been appointed to coordinate the deal, which has already faced repeated delays and is crucial for Prince Mohammed's plans to diversify the Saudi economy in an era of low oil prices.

Saudi Aramco pursues IPO planning despite attack damage doubts

The dollar charged to its highest in more than two years on Thursday after the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/stormy-sterling-sinks-again-stocks-wilt-before-fed-239448&amp;sa=U&amp;ved=2ahUKEwjO-ZbLuOHjAhUBr48KHSApDvgQFjAFegQIBBAC&amp;usg=AOvVaw3Y8jTTDaVY7qnK939Bej7w">Federal Reserve</a> spoiled hopes of a run of US interest rate cuts.

A blizzard of global data and events was going on, but it was Fed Chair Jerome Powell's remarks on Wednesday that set the markets running. Powell said the first US rate cut in over a decade was "not the beginning of a long series of rate cuts".

The dollar’s reaction said it all. The DXY index surged to its highest in more than two years, euro/dollar dropped below $1.11 for the first time since May 2017, and Brexit-hobbled sterling hit 30-month lows just above $1.21.

World stocks had recoiled overnight and emerging markets had their longest run of falls in almost a year.

"Markets interpreted the Fed’s communication as slightly hawkish and therefore further rate cuts in the immediate future were somewhat priced out," said David Milleker, senior economic advisor at Union Investment. "And the dollar strengthened. All in all, the Fed did not achieve what it presumably wanted."

US Treasuries were sold off as investors scaled back their pre-Fed expectations for at least 100 basis points of cuts in the near term. Yields on 10-year notes climbed as high as 2.058% in Europe from a US close of 2.007%.

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Core eurozone bond yields were rising, too, although -0.428% German Bund levels were still extraordinary. "I didn’t say it’s just one rate cut," Powell had been careful to emphasise after Wednesday's 25-basis-point move.

Instead, he characterised it as "a mid-cycle adjustment to policy", citing signs of a global slowdown, US trade tensions and a desire to boost inflation.

Wall Street fell afterwards and E-minis futures for the S&amp;P 500 were pointing 0.15% lower.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8%, extending losses for a fifth day to the lowest since mid-June and posting its biggest one-day percentage drop in a month.

Japan's Nikkei rose, reversing early declines. Australian shares declined 0.4%. Losses by Chinese shares ended down 0.8%.

"We believe the Fed is trying to thread the needle, balancing market jitters about slowing global growth with robust consumer spending and a strong job market in the US," said Nick Maroutsos, co-head of global bonds at Janus Henderson.

"In other words, by cutting just 25 bps, the Fed is trying to bolster market confidence while also keeping some dry powder in reserve in case of an economic shock."

Trade Talks

Adding to worries, the United States and China on Wednesday ended a brief round of talks without much progress in ending their year-long trade war.

Downbeat data and factory surveys on Thursday had also pointed to further weakness for Asia's trade-reliant economies.

South Korea's exports fell for an eighth straight month in July amid weak global demand and a dispute with Japan. New export orders shrank the most in about six years.

South Korea, the world's sixth-largest exporter, is the first major industrial economy to release trade data each month, providing an early assessment on the health of global demand.

Pressure on Chinese factories eased slightly, but manufacturing activity continued to shrink.

"The broader global trade dynamic remains a challenge," Morgan Stanley strategist Michael Zezas said. "Trade should continue to drag on corporate confidence, CapEx and global growth in the near term."

In Europe's foreign exchange markets, sterling dropped as low as $1.2101 before a Bank of England meeting that's expected to leave its 0.75% interest rate unchanged but result in plenty of interesting discussions.

Fears of a <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/britain-to-spend-an-extra-26-billion-on-no-deal-brexit-planning-239860&amp;sa=U&amp;ved=2ahUKEwjd24uDu-HjAhUW8XMBHSfID2IQFjAAegQIBhAC&amp;usg=AOvVaw05e85f7pwO51L5lCnpMiS3">no-deal Brexit</a> now that Boris Johnson is prime minister continue to afflict the pound, although it was fractionally higher against a weakening euro at 91.17 pence.

"Sterling remains vulnerable to a further escalation in Brexit tensions and we anticipate the market will likely discount higher risks of a ‘no deal’ outcome in the weeks ahead," said Roger Hallam, currency chief investment officer at JP Morgan Asset Management.

Elsewhere, the Aussie dollar slipped below key chart support of $0.6832 to as low as $0.6828, a level not seen since an early January "flash crash".

The kiwi hit a six-week trough of $0.6535 on expectations the Reserve Bank of New Zealand will cut rates next week.

US crude futures fell 76 cents to $57.82 per barrel after comments on the rating outlook. Brent was down 71 cents at $64.34.

Spot gold also fell, to $1,405.26.

The dollar charged to its highest in more than two years on Thursday after the Federal Reserve spoiled hopes of a run of US interest rate cuts. A blizzard of global data and events was going on, but it was Fed Chair Jerome Powell's remarks on Wednesday that set the markets running.

The dollar charged to its highest in more than two years on Thursday after the Federal Reserve spoiled hopes of a run of US interest rate cuts. A blizzard of global data and events was going on, but it was Fed Chair Jerome Powell's remarks on Wednesday that set the markets running. Powell said the first US rate cut in over a decade was "not the beginning of a long series of rate cuts". The dollar’s reaction said it all. The DXY index surged to its highest in more than two years, euro/dollar dropped below $1.11 for the first time since May 2017, and Brexit-hobbled sterling hit 30-month lows just above $1.21. World stocks had recoiled overnight and emerging markets had their longest run of falls in almost a year. "Markets interpreted the Fed’s communication as slightly hawkish and therefore further rate cuts in the immediate future were somewhat priced out," said David Milleker, senior economic advisor at Union Investment. "And the dollar strengthened. All in all, the Fed did not achieve what it presumably wanted." US Treasuries were sold off as investors scaled back their pre-Fed expectations for at least 100 basis points of cuts in the near term. Yields on 10-year notes climbed as high as 2.058% in Europe from a US close of 2.007%. WATCH VIDEO × Core eurozone bond yields were rising, too, although -0.428% German Bund levels were still extraordinary. "I didn’t say it’s just one rate cut," Powell had been careful to emphasise after Wednesday's 25-basis-point move. Instead, he characterised it as "a mid-cycle adjustment to policy", citing signs of a global slowdown, US trade tensions and a desire to boost inflation. Wall Street fell afterwards and E-minis futures for the S&P 500 were pointing 0.15% lower. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8%, extending losses for a fifth day to the lowest since mid-June and posting its biggest one-day percentage drop in a month. Japan's Nikkei rose, reversing early declines. Australian shares declined 0.4%. Losses by Chinese shares ended down 0.8%. "We believe the Fed is trying to thread the needle, balancing market jitters about slowing global growth with robust consumer spending and a strong job market in the US," said Nick Maroutsos, co-head of global bonds at Janus Henderson. "In other words, by cutting just 25 bps, the Fed is trying to bolster market confidence while also keeping some dry powder in reserve in case of an economic shock." Trade Talks Adding to worries, the United States and China on Wednesday ended a brief round of talks without much progress in ending their year-long trade war. Downbeat data and factory surveys on Thursday had also pointed to further weakness for Asia's trade-reliant economies. South Korea's exports fell for an eighth straight month in July amid weak global demand and a dispute with Japan. New export orders shrank the most in about six years. South Korea, the world's sixth-largest exporter, is the first major industrial economy to release trade data each month, providing an early assessment on the health of global demand. Pressure on Chinese factories eased slightly, but manufacturing activity continued to shrink. "The broader global trade dynamic remains a challenge," Morgan Stanley strategist Michael Zezas said. "Trade should continue to drag on corporate confidence, CapEx and global growth in the near term." In Europe's foreign exchange markets, sterling dropped as low as $1.2101 before a Bank of England meeting that's expected to leave its 0.75% interest rate unchanged but result in plenty of interesting discussions. Fears of a no-deal Brexit now that Boris Johnson is prime minister continue to afflict the pound, although it was fractionally higher against a weakening euro at 91.17 pence. "Sterling remains vulnerable to a further escalation in Brexit tensions and we anticipate the market will likely discount higher risks of a ‘no deal’ outcome in the weeks ahead," said Roger Hallam, currency chief investment officer at JP Morgan Asset Management. Elsewhere, the Aussie dollar slipped below key chart support of $0.6832 to as low as $0.6828, a level not seen since an early January "flash crash". The kiwi hit a six-week trough of $0.6535 on expectations the Reserve Bank of New Zealand will cut rates next week. US crude futures fell 76 cents to $57.82 per barrel after comments on the rating outlook. Brent was down 71 cents at $64.34. Spot gold also fell, to $1,405.26.

Mind your backs, dollar coming through!

<a href="https://www.wionews.com/world/goldman-sachs-ditches-single-use-plastic-products-193983">Goldman Sachs Group Inc</a> reported a better-than-expected quarterly profit on Tuesday as the <a href="https://www.wionews.com/world/wall-street-notches-all-time-highs-as-rate-cut-hopes-lift-investor-spirits-235406">Wall Street investment bank</a> benefited from higher equity trading and an increase in lending to its wealthy clients and companies.

The bank, like its rivals, is facing several challenges in growing its revenue in the face of rising geopolitical uncertainties and concerns about the impact of future interest rate cuts by the US Federal Reserve.

Goldman is also shifting its business model away from a focus on trading to a more stable, consumer-focused revenue stream.

Revenue fell at three of its four major businesses, with the biggest declines in trading and investment management.

Institutional client revenue, which includes trading, slipped 3 per cent, while investment banking revenue was down 9 per cent. However, revenue from the bank's investing and lending business rose 16 per cent.

"Given the strength of our client franchise, we are well-positioned to benefit from a growing global economy," Chief Executive Officer David Solomon said in a statement.

While revenue slipped in the quarter, lower compensation expenses provided some relief. Total operating expenses were nearly flat at $6.12 billion.

The bank is aiming to generate $5 billion in new revenue by 2020, and is currently undergoing a front-to-back review of all its businesses started last October when Solomon took control as CEO.

While the final strategy is not expected until early next year, the bank has already made moves to expand its consumer division, by growing online bank Marcus and launching a credit card with Apple Inc. It also announced plans in May to acquire United Capital, a boutique wealth management firm.

The bank's net earnings applicable to common shareholders fell 6 per cent to $2.20 billion in the quarter ended June 30. Earnings per share fell to $5.81 from $5.98 a year earlier.

Total net revenue fell 2 per cent to $9.46 billion. Analysts had expected earnings of $4.89 per share and revenue of $8.83 billion, according to IBES estimate from Refinitiv.

Goldman's main rival Morgan Stanley is expected to report quarterly results later in the week.

Goldman Sachs Group Inc reported a better-than-expected quarterly profit on Tuesday as the Wall Street investment bank benefited from higher equity trading and an increase in lending to its wealthy clients and companies.

Goldman Sachs Group Inc reported a better-than-expected quarterly profit on Tuesday as the Wall Street investment bank benefited from higher equity trading and an increase in lending to its wealthy clients and companies. The bank, like its rivals, is facing several challenges in growing its revenue in the face of rising geopolitical uncertainties and concerns about the impact of future interest rate cuts by the US Federal Reserve. Goldman is also shifting its business model away from a focus on trading to a more stable, consumer-focused revenue stream. Revenue fell at three of its four major businesses, with the biggest declines in trading and investment management. Institutional client revenue, which includes trading, slipped 3 per cent, while investment banking revenue was down 9 per cent. However, revenue from the bank's investing and lending business rose 16 per cent. "Given the strength of our client franchise, we are well-positioned to benefit from a growing global economy," Chief Executive Officer David Solomon said in a statement. While revenue slipped in the quarter, lower compensation expenses provided some relief. Total operating expenses were nearly flat at $6.12 billion. The bank is aiming to generate $5 billion in new revenue by 2020, and is currently undergoing a front-to-back review of all its businesses started last October when Solomon took control as CEO. While the final strategy is not expected until early next year, the bank has already made moves to expand its consumer division, by growing online bank Marcus and launching a credit card with Apple Inc. It also announced plans in May to acquire United Capital, a boutique wealth management firm. The bank's net earnings applicable to common shareholders fell 6 per cent to $2.20 billion in the quarter ended June 30. Earnings per share fell to $5.81 from $5.98 a year earlier. Total net revenue fell 2 per cent to $9.46 billion. Analysts had expected earnings of $4.89 per share and revenue of $8.83 billion, according to IBES estimate from Refinitiv. Goldman's main rival Morgan Stanley is expected to report quarterly results later in the week.

Goldman Sachs profit beats expectations on equity trading, lending

Asian shares fell on Monday after strong US jobs data tempered expectations for a Fed rate cut, while the Turkish lira hovered near two-week lows on worries about central bank independence.

Share sentiment was also dampened by US investment bank Morgan Stanley's decision to reduce its exposure to global equities due to misgivings about the ability of policy easings to offset weaker economic data.

Asian shares were broadly weaker on Monday, tracking Wall Street which fell from record highs last week.

MSCI's broadest index of Asia-Pacific shares outside Japan lost more than 1%, with every market in the red.

Japan's Nikkei faltered 0.9%. Chinese shares started lower with the blue-chip index off 1.7% and Hong Kong's Hang Seng index down 1.5%.

South Korea's KOSPI was off 1.8% and Australian shares slipped about 1% to a five-week low.

"We are lowering our exposure to global equities to the range we consider 'underweight'," Morgan Stanley's London-based strategist Andrew Sheets said in a note. The previous range was 'neutral'.

Expensive valuations and pressure on earnings were among the reasons for the downgrade, Sheets said, while the bank increased its exposure to emerging markets sovereign credit and safe haven Japanese Government Bonds.

Global equities have generally been bolstered by expectations that central banks will keep interest rates at or near record lows to boost economic growth.

Those expectations were tempered by a US labour report that showed nonfarm payrolls jumped 224,000 in June, beating forecasts for 160,000, in a sign the world's largest economy still had fire.

Given the strength shown in that data, investors now expect US Federal Reserve chair Jerome Powell to go slow on rate cuts this year.

Bets for aggressive Fed easings are already off, with the market now pricing 27 basis points easing this month, from 33 basis points prior to payrolls.

Powell will provide further cues on the near-term outlook for monetary policy this week at his semi-annual testimony to the US Congress.

There was some positive news on the protracted China-US trade war with White House Economic advisor Larry Kudlow confirming that top representatives from the United States and China will meet in the coming week for trade talks.

"Whether the negotiators can find a solution to the difficult structural issues that remain between the two sides is another matter, and Kudlow cautioned there was 'no timeline' to reach an agreement," National Australia Bank strategist Rodrigo Catril said.

Currencies and geopolitics

In currency markets, action was in the Turkish lira which weakened to 5.8245 per dollar, the lowest since June 25 after Turkey's central bank governor Murat Cetinkaya, whose four-year term was due to run until 2020, was replaced by his deputy Murat Uysal.

President Tayyip Erdogan sacked Cetinkaya for refusing the government's repeated demands for rate cuts, raising questions about central bank independence.

The lira pared some of its losses to last hold near 5.7575.

The dollar index, which measures the greenback against a basket of major currencies, was a shade weaker at 97.239 after climbing to a 2-1/2 week top of 97.443 on Friday.

The euro was flat at $1.1226, not far from a 2-1/2-week low of $1.1205 touched on Friday.

The Australian dollar, which has been on an uptrend since June 18, slipped below 70 US cents to last trade at $0.6985.

Geopolitics may be in focus this week following news on Sunday that Iran will boost its uranium enrichment, in breach of a cap set by a landmark 2015 nuclear deal.

"So far US-Iran tensions have not had a material impact on markets, but if tensions escalate it could be a different story," said NAB's Catril.

In commodity markets, oil prices rose with Brent crude futures, the international benchmark for oil prices, up 16 cents at $64.39 per barrel while US crude added 22 cents to $57.73.

Spot gold fell 0.1% to $1,398.33 an ounce.

Asian shares fell on Monday after strong US jobs data tempered expectations for a Fed rate cut, while the Turkish lira hovered near two-week lows on worries about central bank independence.

Asian shares fell on Monday after strong US jobs data tempered expectations for a Fed rate cut, while the Turkish lira hovered near two-week lows on worries about central bank independence. Share sentiment was also dampened by US investment bank Morgan Stanley's decision to reduce its exposure to global equities due to misgivings about the ability of policy easings to offset weaker economic data. Asian shares were broadly weaker on Monday, tracking Wall Street which fell from record highs last week. MSCI's broadest index of Asia-Pacific shares outside Japan lost more than 1%, with every market in the red. Japan's Nikkei faltered 0.9%. Chinese shares started lower with the blue-chip index off 1.7% and Hong Kong's Hang Seng index down 1.5%. South Korea's KOSPI was off 1.8% and Australian shares slipped about 1% to a five-week low. "We are lowering our exposure to global equities to the range we consider 'underweight'," Morgan Stanley's London-based strategist Andrew Sheets said in a note. The previous range was 'neutral'. Expensive valuations and pressure on earnings were among the reasons for the downgrade, Sheets said, while the bank increased its exposure to emerging markets sovereign credit and safe haven Japanese Government Bonds. Global equities have generally been bolstered by expectations that central banks will keep interest rates at or near record lows to boost economic growth. Those expectations were tempered by a US labour report that showed nonfarm payrolls jumped 224,000 in June, beating forecasts for 160,000, in a sign the world's largest economy still had fire. Given the strength shown in that data, investors now expect US Federal Reserve chair Jerome Powell to go slow on rate cuts this year. Bets for aggressive Fed easings are already off, with the market now pricing 27 basis points easing this month, from 33 basis points prior to payrolls. Powell will provide further cues on the near-term outlook for monetary policy this week at his semi-annual testimony to the US Congress. There was some positive news on the protracted China-US trade war with White House Economic advisor Larry Kudlow confirming that top representatives from the United States and China will meet in the coming week for trade talks. "Whether the negotiators can find a solution to the difficult structural issues that remain between the two sides is another matter, and Kudlow cautioned there was 'no timeline' to reach an agreement," National Australia Bank strategist Rodrigo Catril said. Currencies and geopolitics In currency markets, action was in the Turkish lira which weakened to 5.8245 per dollar, the lowest since June 25 after Turkey's central bank governor Murat Cetinkaya, whose four-year term was due to run until 2020, was replaced by his deputy Murat Uysal. President Tayyip Erdogan sacked Cetinkaya for refusing the government's repeated demands for rate cuts, raising questions about central bank independence. The lira pared some of its losses to last hold near 5.7575. The dollar index, which measures the greenback against a basket of major currencies, was a shade weaker at 97.239 after climbing to a 2-1/2 week top of 97.443 on Friday. The euro was flat at $1.1226, not far from a 2-1/2-week low of $1.1205 touched on Friday. The Australian dollar, which has been on an uptrend since June 18, slipped below 70 US cents to last trade at $0.6985. Geopolitics may be in focus this week following news on Sunday that Iran will boost its uranium enrichment, in breach of a cap set by a landmark 2015 nuclear deal. "So far US-Iran tensions have not had a material impact on markets, but if tensions escalate it could be a different story," said NAB's Catril. In commodity markets, oil prices rose with Brent crude futures, the international benchmark for oil prices, up 16 cents at $64.39 per barrel while US crude added 22 cents to $57.73. Spot gold fell 0.1% to $1,398.33 an ounce.

Asian shares fall as bets off on sharp US rate cuts

Oil prices rose&nbsp;on Monday&nbsp;as markets reacted to news that China and the United States have put a looming trade war between the world's two biggest economies "on hold".

Brent crude futures were at $79.06 per barrel at 0650 GMT, up 55 cents, or 0.7 percent, from their last close. Brent broke through $80 for the first time since November 2014 last week.

US&nbsp;West Texas Intermediate (WTI) crude futures were at $71.71 a barrel, up 43 cents, or 0.6 percent, from their last settlement.

The US&nbsp;trade war with China is "on hold" after the world's largest economies agreed to drop their tariff threats while they work on a wider trade agreement, US&nbsp;Treasury Secretary Steven Mnuchin said&nbsp;on Sunday, giving global markets a lift in early trading&nbsp;on Monday.

"The temporary trade dispute will de-escalate over time through negotiation," US&nbsp;bank Morgan Stanley said.

"Both sides plan to work on implementing agriculture and energy purchases and to continue to negotiate on manufacturing and service trade, bilateral investment and intellectual property protection in coming months," it added.

Still, crude prices were some way off the November 2014 highs reached last week as many traders and analysts say there is enough supply to meet demand despite ongoing production cuts led by the Organization of the Petroleum Exporting Countries (OPEC), plunging output in crisis-struck Venezuela and looming US&nbsp;sanctions against major oil producer Iran.

"Without a further escalation in geopolitical risk, oil might be a&nbsp;due&nbsp;pullback," said Greg McKenna,&nbsp;chief&nbsp;market strategist at futures brokerage AxiTrader.

BP's Chief Executive Bob Dudley told Reuters he expected a flood of US&nbsp;shale and a possible reopening of OPEC taps to cool oil markets after crude rose above $80 a barrel last week.

Dudley said he saw oil prices falling to between $50 and $65 a barrel due to surging shale output and OPEC's capacity to boost production to replace potential falls in Iranian supplies due to sanctions.

The US&nbsp;oil rig count, an early indicator of future output, was at 844, according to energy services firm Baker Hughes. That was the same count as the week before, which marked the highest level since March 2015.

Oil prices rose on Monday as markets reacted to news that China and the United States have put a looming trade war between the world's two biggest economies 'on hold'

Oil prices rose on Monday as markets reacted to news that China and the United States have put a looming trade war between the world's two biggest economies "on hold". Brent crude futures were at $79.06 per barrel at 0650 GMT, up 55 cents, or 0.7 percent, from their last close. Brent broke through $80 for the first time since November 2014 last week. US West Texas Intermediate (WTI) crude futures were at $71.71 a barrel, up 43 cents, or 0.6 percent, from their last settlement. The US trade war with China is "on hold" after the world's largest economies agreed to drop their tariff threats while they work on a wider trade agreement, US Treasury Secretary Steven Mnuchin said on Sunday, giving global markets a lift in early trading on Monday. "The temporary trade dispute will de-escalate over time through negotiation," US bank Morgan Stanley said. "Both sides plan to work on implementing agriculture and energy purchases and to continue to negotiate on manufacturing and service trade, bilateral investment and intellectual property protection in coming months," it added. Still, crude prices were some way off the November 2014 highs reached last week as many traders and analysts say there is enough supply to meet demand despite ongoing production cuts led by the Organization of the Petroleum Exporting Countries (OPEC), plunging output in crisis-struck Venezuela and looming US sanctions against major oil producer Iran. "Without a further escalation in geopolitical risk, oil might be a due pullback," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. BP's Chief Executive Bob Dudley told Reuters he expected a flood of US shale and a possible reopening of OPEC taps to cool oil markets after crude rose above $80 a barrel last week. Dudley said he saw oil prices falling to between $50 and $65 a barrel due to surging shale output and OPEC's capacity to boost production to replace potential falls in Iranian supplies due to sanctions. The US oil rig count, an early indicator of future output, was at 844, according to energy services firm Baker Hughes. That was the same count as the week before, which marked the highest level since March 2015.

Ascending oil prices make China and US put trade war 'on hold'

Amazon.com Inc expects groceries and household products to account for over half of its business in India in the next five years, as it moves to broaden offerings in the segment and foray into areas such as fresh produce.

Amit Agarwal, the India head of Amazon, said in an interview on Friday that groceries and goods such as creams, soaps and cleaning products, were already the largest product category on Amazon in terms of number of units sold in India.

"I would not speculate on when we would launch AmazonFresh but, absolutely, if you ask me the next five years of vision - from your avocados to your potatoes, and your meat to your ice cream - we'll deliver everything to you in two hours," he said.

AmazonFresh, which launched more than a decade ago in the U.S. market, is the company's flagship fresh grocery delivery service. In India, Amazon currently offers some groceries via a service named Pantry. It has also tied up with local vendors in four cities for Amazon Now, which promises two-hour deliveries.

"Probably in the next five years groceries and consumables would be more than half of our business," he told.

Agarwal said Amazon had already started experimenting with a few fresh groceries in India, already home to its largest active customer base outside of the United States.

India's e-commerce market is tipped to grow to $200 billion in a decade, according to Morgan Stanley, as cheap mobile data makes online shopping increasingly accessible.

And Amazon, which already has over 100 million registered users in India, is looking to cash-in on the opportunity.

"We want to get the next hundred million customers shopping with us," said Agarwal, adding that Amazon plans to woo new clients with product exchange and staggered payment offerings.

HUGE OPPORTUNITY

With almost 500 million Indians using the Internet in 2018, India, Asia's No. 3 economy, is a huge e-commerce battleground.

Retail giant Walmart is inching closer to buying a controlling stake into home-grown e-commerce player Flipkart, which is already backed by big-name investors like SoftBank, Tencent and Microsoft.

"I feel extremely excited that e-commerce is attracting so much funding," Agarwal said. "Otherwise, we'd have been wrong in going about it in such as big way."

Amazon's founder Jeff Bezos told shareholders in a letter https://bit.ly/2qGKiOl last week that Amazon India is the fastest growing marketplace in the country. He said Amazon added more members to its Prime loyalty programme in India in its first year than any previous geography in Amazon's history.

Still, profitability in India is years away from Amazon, admits Agarwal, as logistics, payments and other infrastructure needed to address the long-term opportunity are still being built.

He said the $5 billion Bezos had committed to investing in India was just a signal of intent, and the company was ready to invest significantly more to achieve its goals.

"Our ambition is so big it would be futile for us to think about anything other than to ensure we keep investing to bring the next 100 million customers online," Agarwal said.

'Probably in the next five years groceries and consumables would be more than half of our business,' said Amit Agarwal, the head of Amazon India

Amazon.com Inc expects groceries and household products to account for over half of its business in India in the next five years, as it moves to broaden offerings in the segment and foray into areas such as fresh produce. Amit Agarwal, the India head of Amazon, said in an interview on Friday that groceries and goods such as creams, soaps and cleaning products, were already the largest product category on Amazon in terms of number of units sold in India. "I would not speculate on when we would launch AmazonFresh but, absolutely, if you ask me the next five years of vision - from your avocados to your potatoes, and your meat to your ice cream - we'll deliver everything to you in two hours," he said. AmazonFresh, which launched more than a decade ago in the U.S. market, is the company's flagship fresh grocery delivery service. In India, Amazon currently offers some groceries via a service named Pantry. It has also tied up with local vendors in four cities for Amazon Now, which promises two-hour deliveries. "Probably in the next five years groceries and consumables would be more than half of our business," he told. Agarwal said Amazon had already started experimenting with a few fresh groceries in India, already home to its largest active customer base outside of the United States. India's e-commerce market is tipped to grow to $200 billion in a decade, according to Morgan Stanley, as cheap mobile data makes online shopping increasingly accessible. And Amazon, which already has over 100 million registered users in India, is looking to cash-in on the opportunity. "We want to get the next hundred million customers shopping with us," said Agarwal, adding that Amazon plans to woo new clients with product exchange and staggered payment offerings. HUGE OPPORTUNITY With almost 500 million Indians using the Internet in 2018, India, Asia's No. 3 economy, is a huge e-commerce battleground. Retail giant Walmart is inching closer to buying a controlling stake into home-grown e-commerce player Flipkart, which is already backed by big-name investors like SoftBank, Tencent and Microsoft. "I feel extremely excited that e-commerce is attracting so much funding," Agarwal said. "Otherwise, we'd have been wrong in going about it in such as big way." Amazon's founder Jeff Bezos told shareholders in a letter https://bit.ly/2qGKiOl last week that Amazon India is the fastest growing marketplace in the country. He said Amazon added more members to its Prime loyalty programme in India in its first year than any previous geography in Amazon's history. Still, profitability in India is years away from Amazon, admits Agarwal, as logistics, payments and other infrastructure needed to address the long-term opportunity are still being built. He said the $5 billion Bezos had committed to investing in India was just a signal of intent, and the company was ready to invest significantly more to achieve its goals. "Our ambition is so big it would be futile for us to think about anything other than to ensure we keep investing to bring the next 100 million customers online," Agarwal said.

Amazon thinks it may make its biggest profit in India from grocery sales

Around 20 startup banks and financial firms have reaffirmed plans to invest a total of up to 500 million pounds ($664.95 million) to open in Britain, consulting firm PwC said today. 
 
These investment plans will be a boost for Britain&#39;s financial services sector, beset by rumors of job cuts and firms moving overseas in the aftermath of Britain&#39;s vote to leave the European Union and potentially surrender some of its access to EU markets. 
 
The banks are a mixture of UK, European, and non-EU businesses and have already committed 200 million pounds, PwC said, with total funding of up to half a billion pounds featured in their business plans. 
 
Stephen Morse, financial services partner at PwC, said the around 20 clients investing in Britain were not only mainstream banks, mortgage lenders and asset managers. 
 
&quot;There are a range of new technology-enabled banks, fintech businesses, commercial banks and even niche investment banks who have identified gaps in the market in part caused by big global banks having pulled out of some businesses over the past few years,&quot; he said. 
 
Since the Brexit vote last week, banks, including Goldman Sachs (GS.N) and Morgan Stanley (MS.N), have denied rumors they are already moving thousands of jobs out of Britain as a result of the referendum. 
 
(Reuters)

The banks, which are a mixture of UK, European and non-EU businesses, have already committed 200 million Pounds

Around 20 startup banks and financial firms have reaffirmed plans to invest a total of up to 500 million pounds ($664.95 million) to open in Britain, consulting firm PwC said today. These investment plans will be a boost for Britain's financial services sector, beset by rumors of job cuts and firms moving overseas in the aftermath of Britain's vote to leave the European Union and potentially surrender some of its access to EU markets. The banks are a mixture of UK, European, and non-EU businesses and have already committed 200 million pounds, PwC said, with total funding of up to half a billion pounds featured in their business plans. Stephen Morse, financial services partner at PwC, said the around 20 clients investing in Britain were not only mainstream banks, mortgage lenders and asset managers. "There are a range of new technology-enabled banks, fintech businesses, commercial banks and even niche investment banks who have identified gaps in the market in part caused by big global banks having pulled out of some businesses over the past few years," he said. Since the Brexit vote last week, banks, including Goldman Sachs (GS.N) and Morgan Stanley (MS.N), have denied rumors they are already moving thousands of jobs out of Britain as a result of the referendum. (Reuters)

20 startup banks may invest up to 500 million Pounds to open in Britain

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