Deutsche Bank AG vowed to maintain its position in fixed-income trading after recording its weakest second quarter in that business since the global financial crisis, as Chief Executive Officer Christian Sewing accelerates the lender’s turnaround effort.Income from buying and selling fixed-income securities slumped 17 percent from a year earlier to 1.37 billion euros ($1.6 billion), the lowest figure for a second quarter since 2008. Equities trading fell 6 percent, Germany’s largest bank said on Wednesday. The five largest U.S. investment banks saw total debt trading revenue rise by 6.7 percent over the same period while stock trading surged 16 percent.Sewing, who assumed his post less than four months ago, is trying to reverse what the bank has called a “vicious circle” of declining revenue, sticky expenses and rising funding costs. While revenue stabilized in the quarter and adjusted costs fell slightly, the bank’s asset management business warned that … [Read more...] about Deutsche Bank Vows to Defend Fixed-Income Trading After Cuts
On Britain’s railways, a double yellow light is an instruction to exercise “preliminary caution”. On seeing it, a train driver should continue to move forward but be prepared to begin slowing at the next signal; there may be an obstruction ahead. These are the conditions under which investors seeking income currently operate. Financial assets in general, and those that produce a yield in particular, are no longer receiving unconditional support from central banks. In the US, interest rates are creeping higher and quantitative easing is being unwound. Broader uncertainties, political and economic – and elevated valuations in many areas – also indicate that caution is prudent. Equally, however, sources of income still lie ahead. In managing the Artemis Monthly Distribution Fund, we are aware of the calculated risks we must take to produce a good level of monthly income. Here, we explain why we proceed with caution and with an eye for any dangers that might … [Read more...] about ConsumerBusinessSpotlightConsumerBusinessSpotlightConsumerBusinessSpotlightConsumerBusinessSpotlightConsumerBusinessSpotlight Artemis: Investing for income
Arielle O'Shea NerdWallet.com Published 3:02 p.m. UTC Jun 16, 2018 If you’re not scared of dying broke, you probably should be. It’s a concern that’s fairly unique to today’s savers as many of those before us had pensions, guaranteeing them at least some income for life beyond Social Security. By contrast, two-thirds of working Millennials — defined here as those born from 1981 to 1991 — say they have nothing saved for retirement, according to research this year from the National Institute on Retirement Security. The fault isn’t all their own: Close to half have no retirement plan at work and only 10% have access to a defined benefit plan like a pension, according to The Pew Charitable Trusts. Matt Carey hopes to change that. Carey is one of three co-founders of Blueprint Income, a New York City startup that launched nationwide this year. The company is offering the “personal pension” — a monthly paycheck in retirement, … [Read more...] about Personal pensions: Here’s how Millennials can buy retirement income
NEW YORK (Reuters) - Morgan Stanley (MS.N) Chief Executive Officer James Gorman called the bank’s fixed-income group its “most attractive business” on Tuesday at a conference the Wall Street firm held in New York. FILE PHOTO: The corporate logo of financial firm Morgan Stanley is pictured on a building in San Diego, California, U.S., September 24, 2013. REUTERS/Mike Blake/File Photo Despite being one of Morgan Stanley’s smallest divisions, Gorman said, it has enormous incremental upside. Last year, the bank set a target to produce $1 billion (£747.6 million) in quarterly fixed-income revenue, on average, each year. Gorman, who is also chairman of Morgan Stanley, added the U.S. bank will move 400-500 employees out of the United Kingdom to other European nations as a result of Britain’s vote to leave the European Union. Reporting by Elizabeth Dilts in New York; Editing by Matthew Lewis … [Read more...] about Morgan Stanley’s ‘most attractive business’ is fixed income -CEO
James “Jes” Staley’s hiring as chief executive officer of Barclays Plc in 2015 came with a sense of déjà vu. Three years earlier, the U.K. establishment drummed out Bob Diamond, the American architect of Barclays’s investment bank who’d risen to CEO. Now another New Englander steeped in Wall Street risk-taking had come to London with a similar playbook focused on growing the bank’s securities unit.More than two years later, Staley is racing to avoid the same fate as Diamond. First, the U.K.’s Financial Conduct Authority is considering whether he can keep his job after he tried to find out the identity of a whistleblower who raised concerns about one of his hires. Should Staley survive that threat, he faces a countdown to convince skeptics his bet on building a trans-Atlantic investment banking powerhouse will succeed, according to executives, board members, and shareholders interviewed for this article.Staley has faced down calls … [Read more...] about Can Jes Staley Fix Barclays Fast Enough?