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Breakingviews: Financial shrinkage lead by UBS

Monday, Oct 29, 2012 - 04:15

Oct. 29 - The UBS plans for restructuring, including up to 10,000 job cuts, could lead the way for a financial sector looking to deleverage, says Reuters Breakingviews.

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Story throughout focused on from our -- John Reuters breaking news UPS he's restructuring. Said that assistant ad at -- -- It's heads told me through -- -- I know you write about us on Friday of course as well. On -- -- okay. It was announced late Friday -- right it's not well we get the full the tell -- hopefully tomorrow morning with the this is so spectrum but I'm the -- kit is cheering UBS's. Even though this is an extremely expensive. And -- re going to be quite a painful. Exit and from victory. Yeah that's a significant rise in the market reaction in. Schering. UBS's. Likely attend it's the pool -- fixed income trading. Fast track to some that it which in the industry people -- -- content that's -- social within it here in its. It's associate unwinding some income for any of the long. Slow process I mean if you. If you stall if you stop with the new business I think that having -- and the revenue coming in go to people who people. You have these long. Long long tail exposes. So you credit derivatives positions. -- the market is saying you know what. Says Jim -- -- -- you've -- yes that Jerry if you wanna try this -- I don't know I took it to the alternative. Is it. Return -- -- -- news that the cost of capital. That threat issued today with the that is this ongoing risks. I -- and the home pages for what you tell me. Is the hope that other banks follow them up off because it says -- palaces -- -- -- today a it's steady process and making the world a less dangerous that. With the two efforts -- with the the the world becomes safe I mean just remember that the activity between banks in -- trade today fixed income trading. Between banks -- in goals in some crucial time financing it that. Can he needs proportion of global financial activity -- -- competitive. And it is that the legacy with these incredible. Risks and the crisis saying we want to see that our -- to -- -- house come tomorrow. But when you -- to have one is she's -- you know what. This. Activity is no longer a vehicle business for us -- that really gets us this need it. Label deleveraging -- second issue is is it all about experience full well. Military action is -- with -- things CEOs of all the banks that. We'd like you to focus and even if they're big. So it's restructuring costs we've not straw -- you focus I would must roll over. You focused on the lower risk businesses say you put it into Illinois is next to his craft -- axis. Well let's let's let's see how -- how radical is is -- They torture and Barca you know I think Barca. What Barclays investment bank has -- -- You know on the new and new leadership since the events of the some. It is going through big resource right now another of the historic strength of Barclays. But in the -- biking hasn't been in the fixed income side. But it's you know it it it really doesn't is that it. Think it's basically balancing and how much is that going to be pad back. Likewise it -- -- -- -- you struck you know that he's right talking about very aggressive deleveraging how far -- got a guy. What will sell most useful and details tomorrow right. You don't tomorrow from from UBS of that that that put thing that. The if there's any any doubt about that in the market correction phase is -- telling them that you -- different -- -- know about -- course management. So that no doubt what about tomorrow as well my thanks Chris Hughes and brightest breaking news -- brackets have a big day for -- -- from market pulse. -- -- -- -- --

Breakingviews: Financial shrinkage lead by UBS

Monday, Oct 29, 2012 - 04:15

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