BUSINESS WITH PERSONALITY BLONDE ON BLOND GLOBAL TREMORS HOW LIZ TRUSS ON WHY THE US SHALE REVOLUTION SHE BELIEVES IN HAS SHAKEN POLITICS P14 BORIS FOR PM P15 MONDAY 8 JULY 2019 ISSUE 3,408 CITYAM.COM FREE McDonnell denies rift at Labour helm HARRY ROBERTSON @henrygrobertson SHADOW chancellor John McDonnell has denied reports of a civil war at the top of his party as Labour found itself dogged by fresh antisemitism claims and reports of a bitter rift among the leadership. According to reports McDonnell and shadow home secretary Diane Abbott confronted Labour leader Jeremy Corbyn and demanded he stop listening to his two top aides, Seumas Milne and Karie Murphy. Abbott told friends Milne and Murphy “were holding Corbyn captive”, the Sunday THE AXE FALLS Times reported. McDonnell and Abbott are among those pushing Corbyn to back a second Brexit referendum. McDonnell told the BBC yesterday the report was “rubbish” and said he had confidence in Corbyn’s aides. The denial came as Labour HARRY ROBERTSONATwhich isDEUTSCHE home to the bank’s largest to hive off €74bn of unwanted assets such William Wright, founder of the capital was once again engulfed by an investment finance operations – making as long-dated derivatives. Deutsche will markets think tank New Financial, said argument about antisemitism @henrygrobertson major cutbacks likely. also create a corporate bank which will “The restructuring at Deutsche Bank is the and bullying. THOUSANDS of jobs are at risk in the City of Deutsche said it will feel the cost focus on transaction finance. result of 10 years of tinkering at the edges Up to six ex-staffers breached London after Deutsche Bank announced it immediately, predicting a loss of €2.8bn in Sewing will take responsibility for both of a business that had grown too big and non-disclosure agreements will slash 18,000 roles globally in an the second quarter of 2019 as it shells out the new corporate bank as well as the too quickly in the decade before the (NDAs) and spoke to the BBC attempt to stem its 10-year decline. for severance and restructuring costs. investment bank. Garth Ritchie, who financial crisis.” for an upcoming documentary. Germany’s biggest lender will shut Chief executive Christian Sewing said previously headed the investment unit, left Wright added that Deutsche had hoped Some received letters from down its global share-trading business and Deutsche was “refocusing the bank around Deutsche on Friday. it would be able to turn a corner but “the Labour’s lawyers, Carter Ruck, significantly reduce its investment banking our clients”. It will also cut back its fixed income structural challenges haven’t blown over, saying they may face legal operations in a drastic overhaul. Deutsche “We are returning to our roots and to operations, which deal in instruments such its main rivals haven't dropped out and action for breaking NDAs. said the move will cost it €7.4bn (£6.6bn). what once made us one of the leading as government and corporate bonds. Deutsche’s cost base, culture, structure and McDonnell told Sky News The bank did not reveal where the job banks in the world,” he said. Sewing called the plans a “restart” but share price have finally caught up with it”. that the programme would be losses would be felt but around 7,000 As part of the plans Germany’s flagship they will be interpreted as an admission by driven by “a few members of people work for Deutsche in London – bank will also create a so-called bad bank Deutsche that it cannot compete with rivals. £ CONTINUES ON P3 staff who have a political axe to grind”. FTSE 100 ▼ 7,553.14 -50.44 FTSE 250 ▼ 19,655.27 -142.34 DOW ▼ 26,922.12 -43.88 NASDAQ ▼ 8,161.79 -8.44 £/$ ▼ 1.253 -0.005 £/€ ▲ 1.116 +0.002 €/$ ▼ 1.123 -0.005 YOUR KEY TO ALL THE BEST DOORS IN THE CITY 02 NEWS MONDAY 8 JULY 2019 CITYAM.COM HANGING AROUND More than £100,000 raised as City A.M. joins lord mayor for 500ft charity abseil at Barclays HQ in Canary Wharf THE CITY VIEW Bears are gathering to welcome bullish Boris ID THE economy shrink in the second quarter of the year? While it is impossible to be sure, we will get Danother clue this week when the Office for National Statistics (ONS) publishes its GDP estimate for May – and so far, the signs are not good. One month ago the ONS estimated a 0.4 per cent contraction in April, notably worse than economists had been expecting. Such monthly figures can be erratic and prone to significant revisions, yet bearish signs are increasingly commonplace. The latest private sector business surveys point to a decline in quarter two, with economists in both Westminster and the City forecasting a negative reading. This morning accountancy giant EY predicts a 1.6 per cent drop in business investment in 2019 as a whole, MIKE WILLIAMS PHOTOGRAPHY while fellow beancounters at Deloitte report that chief STAFF at Barclays had to put up with a steady stream of thrill-seekers descending past their office windows on Friday as the annual Lord Mayor’s Appeal abseil challenge kicked off with City A.M. founder Lawson Muncaster (left), lord mayor Peter Estlin financial officers are at their most risk-averse since the collapse (centre) and editor Christian May (right) – pictured with their instructors – the first to go over the edge. Over 90 people took part. of Lehman Brothers. The lingering uncertainty It requires a large around Brexit is not helping, degree of insular of course, and EY’s thinking to blame economists say growth will be even lower if the UK is Brexit entirely City rat race intensifies as forced to extend Brexit once more at the end of October. However it requires a large degree of insular thinking to blame Brexit entirely. Growth levels are abysmal across Europe and the Trump-led trade war is exacerbating an already-portentous job opportunities decline slowdown throughout much of the world. All of a sudden the prospect of monetary easing is back on the table and markets AUGUST GRAHAM have returned to their seemingly-perverse post-crisis habit of is especially vulnerable to regulatory Separate data published by Deloitte uncertainty and remains slow,” he revealed more than eight in 10 jumping at the sound of bad economic news. @AugustGraham said today. finance chiefs believe the long-term Here in London, the FTSE is up nearly 400 points in little more CITY workers had to fight harder for The number of new financial servic- business environment will suffer than a month. This is the mood music greeting the Tory new jobs last quarter as the number of es jobs on the market has declined because of Brexit. available opportunities halved. fairly consistently from a high of The proportion of chief financial favourite to enter Downing Street a fortnight tomorrow. Boris Research showed that the number of 24,105 in the beginning of 2017. Last officers (CFOs) who believe it is a good Johnson’s fans adore his ability to inject optimism into the available jobs in financial services quarter the number of roles available time to take more risk on their most miserable of party conferences and the former mayor of decreased 50 per cent year-on-year, lay at 7,363. balance sheets has fallen to just four London has already talked up his determination to lift the and 33 per cent quarter-on-quarter. Meanwhile, the number of profes- per cent, marking the lowest level Meanwhile, the number of jobseek- sionals looking for new roles was since Lehman Brothers collapsed 11 mood around Brexit. But rhetoric is one thing, and raw ers in the sector fell 22 per cent. This 11,848 in the quarter. years ago. economic realities are another. The political circumstances contrasts with the technology sector, Enver said that banks have been cut- “Brexit has not happened, but it is paving the way for Johnson’s long-touted journey to Number 10 which has 60 per cent more jobs in ting jobs and putting projects on hold acting as a drag on corporate senti- London today than it did in 2010. due to the uncertainty. ment and spending,” said Deloitte’s have been fortunate, but he may find that it is not an It comes as the City is worried over “If we have a no-deal Brexit, those chief economist Ian Stewart. altogether lucky time to be the man at the top. the future of Britain’s relationship projects and all the jobs they would “Ironically, risk appetite in the cor- with the European Union, said Hakan have generated go from being on hold porate sector has slumped just as it Enver, the managing director at to being cancelled,” he said. has taken off in the equity market. Morgan McKinley, which carried out “If those jobs keep being treated like Measures of financial market the research. collateral damage, eventually volatility have declined, even though a “While most sectors in Britain have someone else is going to have to pick majority of CFOs rate uncertainty as seen an increase in hiring despite the up the tab for the government’s being at high or very high levels,” he Follow us on Twitter @cityam deadlock, the financial services sector expenses.” added. FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL JEFFREY EPSTEIN HELD ON WHAT THE POLICE BATTLE ACTIVISTS IN BORIS JOHNSON TO BOOST WEWORK TO RAISE BILLIONS SEX TRAFFICKING CHARGES OTHER LATEST HONG KONG CLASH FUNDING FOR APPRENTICES SELLING DEBT AHEAD OF IPO Jeffrey Epstein, the billionaire US hedge Hong Kong riot police used batons and Apprentices can have as bright a future Wework has a plan to shore up fund manager and one-time friend of PAPERS SAY tear gas against democracy activists last as university graduates without confidence in its business before it goes Bill Clinton and Donald Trump, has night after the campaign of protest incurring “huge debts”, Boris Johnson public: offer billions of dollars in debt been taken into custody and, according THIS spread to new areas of the territory.