In the unlikely event that you are unaware of the significance that tomorrow holds for Deutsche Bankers, let us fill you in. Tomorrow is Deutsche’s investor day. It also the occasion of a major strategy presentation by co-CEOs Anshu Jain and Juergen Fitschen. Tomorrow, the entire strategy of Deutsche Bank may change.
The investment bank, which uses up 70% of Deutsche’s capital is likely to bear the brunt of any alterations. Entire business lines may be exited. Compensation may be cut. Clarification may be provided regarding the victims of Deutsche’s 1,500 extra redundancies.
While we wait, it’s worth refreshing our memories with what Anshu Jain said at Deutsche’s last investor day presentation, back in June – a mere four months ago. Then, Jain said the investment bank had been ‘successfully recalibrated.’ He was investing in various product areas, even while cutting headcount in support functions. In particular, financial institutions, industrials, and natural resources, were areas of IBD focus.
The most telling chart from Anshu’s June presentation was, however, the one below. This suggests equities staff in Asia and the US should be fine, along with commodities staff. Credit solutions professionals may, however, be in for a challenging future – at least until rival banks pull out of the market.
Unfortunately, however, Anshu’s June strategy presentation may not be worth the screen it’s presented on. It clearly states that Deutsche intends to invest in Asian equities, and yet the bank cut 10% of its Asian equities sales and trading staff last week. Anything that is stated tomorrow could yet be altered in the months to come.
If Mr. Jain proves himself, it is widely expected within the bank that he will be asked to stay on as single head when Mr. Fitschen’s contract expires in three years.(Wall Street Journal)
Having tripled headcount to 142 in the past six years, AHL has possibly hired too many people and is struggling to make them all work together. (Financial News)
Towards the end of this year, BNP Paribas will announce a strategic plan to turn away from Europe and towards Asia and America. In particular, it will be hiring for fixed income in Asia. (Financial Times)
Credit Suisse has been hiring…in the Philippines. (Wall Street Journal)
Nomura plans for its overseas operations (including London) to be profitable by June 2014. (Bloomberg)
Robus Capital Management, an investment firm focusing on German-speaking countries, has been hiring for a distressed fund in London. (Bloomberg)
Guess what? Senior managers at JPMorgan might get paid less this year. (Bloomberg)
If you’re interviewing with Simon Dangoor, portfolio manager, fixed income, Goldman Sachs Asset Management, make sure you’ve read ‘Thinking Fast and Slow’ first. (Financial News)
Perhaps your authentic self is an accountant. (Financial Times)
Very high earners in France may still have to pay 75% tax and are being implored to, “participate in a patriotic movement to help restore the country”. (Financial Times)
Excessive egotism and low self-awareness are the psychological profiles associated with the ‘dark side.’ (INSEAD)