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Financial services firms expected to make job cuts in Q4

Financial services firms are expected to reduce headcount by 11 per cent in the next three months due to a slow-growth environment, according to the latest CBI/PwC Financial Services Survey.

The pace of growth in the UK financial services sector continued to slow in the three months to September. Firms expect growth will be slower in the final quarter of 2011 and, for the first time in two years, say there will be no improvement in profitability.

Firms expect the pace of growth to slacken in the coming quarter, with business volumes expected to ease by 5 per cent and profitability to flatten out.

Of the 84 financial services firms surveyed, 33 per cent saw business volumes rise in the quarter to September and 24 per cent reported a fall.

34 per cent of firms reported a rise in profitability and 18 per cent recorded a fall. Sentiment has fallen for the first time since March 2009, as firms anticipate more challenging conditions. Around 20 per cent firms are less optimistic than three months ago.



FSCS scraps £4m advertising campaign

The Financial Services Compensation Scheme is scrapping its £4m advertising campaign after it failed to raise consumer awareness of the scheme. The FSCS launched the campaign in January but now admits the ads did not have the desired impact. Speaking to Money Marketing, FSCS chief executive Mark Neale (pictured) says: “We have looked at the […]


Trade union: Government ministers at odds over pension reforms

Trade union leader Brian Strutton says ministers at the Department for Communities and Local Government are at odds with Whitehall over plans to hike pension contributions in the Local Government Pension Scheme. Last week, the Local Government group, which represents local authority employers, wrote to communities secretary Eric Pickles outlining proposals it says will deliver […]

BlackRock launches absolute return bond fund

Blackrock has launched an absolute bond fund that will invest across all fixed income market sectors including global rates, emerging markets, investment-grade credit, and high yield credit. It will be managed by Ian Winship. The fund will not be run in line with a fixed income index but instead with “positive performance above sterling cash […]


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