STOCK MARKET WATCH -- Monday, 1 October 2012

[Ghost Dog]

12. Asset managers 'most optimistic' as profits rise for third quarter in row

Investment managers' optimism about their business prospects rose for the third consecutive quarter, despite difficult conditions for the financial services sector, according to the latest survey from the CBI/PwC.

The Financial Services Survey, which was conducted in September, found growth in the volume of business for investment managers was a little slow over the last quarter and concentrated with financial institutions. However, growth is expected to accelerate strongly during the next quarter and spread to private individuals.

Value of incomes (from trading, interest and investments) grew marginally, and is predicted to be faster over the next three months, while profitability also rose for the third quarter in a row. This was helped by falling costs, and rising fees and commissions. Although profits grew at a slower pace during the last quarter, this was considerably faster than the long-run average and a similar rise in profits is expected for the next quarter...

...The level of demand is a key factor likely to limit business expansion in the next year for the sector. This is followed by legislation & regulation, although risks from the latter have fallen back since June.

New products are expected to be the main driver of growth over the next three months, but cross sales to existing customers decreased considerably in importance....

...Investment managers' optimism comes despite a difficult backdrop for the financial services sector. ..

/... http://www.investmentweek.co.uk/investment-week/news/2213251/asset-managers-most-optimistic-as-profits-rise-for-third-quarter-in-row#ixzz281tfIuJx


Financial services feels squeeze

THE financial services sector has seen its first fall in profitability for two years, according to new figures.

The number of firms seeing business volumes fall outnumbered those enjoying rises by 19 percentage points while the figure for income from fees was -15% and -29% from net interest, investment and trading.

Headcount also fell with firms reporting staff reductions outweighing those seeing rises by 22 percentage points...

/... http://www.thebusinessdesk.com/yorkshire/news/377513-financial-services-feels-squeeze.html?utm_source=RSS&utm_medium=news%2Bfeed&utm_term=Financial+services+feels+squeeze#

The financial services sector has cut 9,000 jobs over the past three months as business volumes and profitability fell for the first time in more than three years according to CBI employers & PwC (FT-MORE) Financial services groups think growth in business volumes will resume in the next quarter but they also expect to cut 3,000 more jobs...

/... http://www.proactiveinvestors.co.uk/columns/ransquawk/10760/european-opening-news-including-the-financial-services-sector-has-cut-9000-jobs-over-the-past-three-months-10760.html


'Twas brillig, and the slithy toves / Did gyre and gimble in the wabe...