Morning business round-up: UBS cuts 10,000 jobs


What made the business news in Asia and Europe this morning? Here's our daily business round-up:

Swiss bank UBS has confirmed it is cutting 10,000 jobs worldwide as it slims down its investment banking activities.

The jobs will go over the next three years, and amount to 16% of its current workforce of 64,000. The cuts are aimed at saving 3.4bn Swiss francs.

UBS lost 39bn Swiss francs (£26bn; $42bn) during the financial crisis and had to be bailed out by the Swiss authorities.

The Bank of Japan has boosted its key stimulus measure amid concerns that Japan's economic recovery may be running out of steam.

It has extended its asset purchase programme, under which it buys bonds to keep long-term borrowing costs down, by 11 trillion yen ($138bn; £86bn).

It will also offer unlimited loans to banks to encourage lending and boost domestic demand.

However, analysts said the bank may need to take further measures to spur growth.

Oil giant BP has reported a fall in third quarter profits, with replacement cost profit of $4.69bn (£3bn), down from $5.27bn for the quarter last year.

However, chief executive Bob Dudley said the figures showed "strong progress" at BP, which is raising the quarterly dividend by 12.5%.

The profit figures were helped by better-than-expected margins in BP's refining operations.

Deutsche Bank has reported flat profits for the three months to September, but the results still beat analysts' expectations.

The German financial services giant said its net income was 755m euros (£608m), hit by a larger tax bill, compared with 777m euros in the same quarter last year.

Net revenues grew by 18% to 8.7bn euros due to "improved market conditions and increased market activity".

Much of that came from corporate banking and securities trading.

Japan's Hitachi has signed a £700m deal giving it rights to build a new generation of power plants in the UK.

Hitachi is to buy Horizon Nuclear Power, which was intending to build reactors on two existing sites in Britain.

Hitachi is buying Horizon from Germany's E.On and RWE, which are withdrawing from the UK nuclear market.

Singapore Airlines has bought a 10% stake in Virgin Australia as it looks to counter the growing strength of competitors in the region.

The A$105m ($108m; £68m) deal will also help Virgin Australia challenge Qantas, its main rival in the domestic market.

India's central bank has kept interest rates unchanged, despite signs that the country's economy is being hit by a global slowdown.

Media caption,
Biz Heads

However, in an effort to boost lending, it cut the amount of money that banks need to keep in reserve.

It said cutting the cash reserve ratio to 4.25% from 4.5% would inject 175bn rupees ($3.2bn; £2bn) into the market.

Critics have called for more stimulus measures, and the Indian rupee and stocks fell on the news.

Baidu, China's biggest search engine, has reported a 60% rise in quarterly net income to 3.01bn yuan ($478m; £299m) compared to last year.

Baidu said its income jumped in the three months ending 30 September, as the company continued to attract increasing amounts of advertising.

The company said revenue from online marketing surged nearly 50%.

The latest Business Daily podcast from the BBC World Service looks at how well American businesses have prepared for the storms battering the country.

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