Late Lunchtime Links: The crazy cheapness of labour in the UK and the hole in the budget from lower bonuses

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Cheap labour here

Cheap labour here

This isn’t strictly related to banking and banking pay, but it’s nevertheless interesting and under-reported. Figures out today from Eurostat show the average labour cost per hour in Euros across the European Union. Notice anything significant about the UK? In theory, the country should be super-competitive compared with almost all its Western European competitors (except Portugal). Notably, however, financial services professionals in the UK tend to be paid more than financial services professionals elsewhere in Europe.

Source: Eurostat

Separately, as the average UK worker struggles along on 60% of the average wage of his/her French counterpart, the British government is struggling to make ends meet as bonuses plummet. The Evening Standard reports that the tax take fell £550m on the back of lower compensation in the financial sector.


Having got rid of 30 staff since last June, Panmure Gordon is happy again. (Evening Standard)

If Sergio Ermotti wants to get paid, he will have to restore UBS’s reputation. (Bloomberg) 

Just a reminder that Credit Suisse’s Partner Asset Fund 2 toxic bonus scheme contains $16bn of derivatives trades, upon which there could still be $1.26bn of losses, of which employees will now have to bear $750m. (Bloomberg)

VTB wants to hire 10-20 people in the US over the next 1-2 years. (Financial News)

Banks are preparing to cut M&A jobs and many M&A bankers are feeling "frustrated and underappreciated." (Wall Street Journal) 

Some equities brokers are getting out of Italy. (Financial News)

From May, JPMorgan will be basing its head of Asia Pac investment banking in Asia Pac for the first time. (Wall Street Journal) 

Chinese women often feel obliged to give up careers or decline promotions to avoid seeming too powerful in society, which would make it harder for them to find spouses.(Wall Street Journal) 

Lack of sleep may produce unethical behaviours. (Phys Org)