Deutsche Bank is being slammed for paying $52 million 'golden parachutes' to fired execs — right after ma.. - Business Insider

Deutsche Bank is being slammed for handing out 'golden parachutes' while junior staff get the axeChinaFotoPress/Getty Images

• Deutsche Bank is being slammed for paying out millions to departing senior managers.
• A picture of two men thought to be fired Deutsche bankers went viral on Twitter, after they were photographed leaving the bank bags in hand. 
• It turns out they were fitting $1,800 suits for the German bank's directors, all while hundreds of staff were being fired. 
• Deutsche earlier this week announced a massive overhaul which would over the next few years cut 18,000 jobs.
• Read more stories on Markets Insider.

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Deutsche's overhaul just seems to keep getting messier.

On the morning of the announcement that 18,000 jobs were being cut, the bank's managing directors were having suits fitted worth over $1,800. Adding to the sting, the Financial Times reported on Wednesday that some executives were paid £52 million in "golden parachute" severance packages. 

The Financial Times reported that the bank has spent more than €52 million on payouts to departing senior staff since May 2018. The FT said that is almost equal to the whole management board.

Gerhard Schick, head of lobby group Finance Watch Germany called the payments "inappropriate."

"Golden parachutes for failed managers while thousands of employees are losing their jobs just do not match," Schick told the Financial Times. 

Suited while employees get booted

It's a "Let them eat cake" moment for the bank, which was seen as being tone deaf to the gloom of junior staff when on Tuesday Financial News reported that a viral photo of what many thought were fired employees actually were tailors fitting out lavish suits for executives. 

The photo went viral on Twitter, and was used by The Financial Times, Guardian and Reuters as well as Business Insider. 

Ian Fielding-Calcutt and Alex Riley, who work for Fielding & Nicholson Tailoring, had been fitting suits for senior directors unaffected by the cuts. 

Fielding and Nicholson/ Twitter

Fielding and Nicholson/ Twitter

Fielding-Calcutt told Financial News: "Our timing was not great," and that he had been fitting suits for managing directors at the bank for more than a decade. 

He added: "Almost 30% of our business comes from investment bankers. I think a lot of the people getting laid off were traders of some sort, who don't wear suits, and so we just went ahead as normal with our clients who obviously weren't affected by the cuts."

The German bank's turbulent 14 months culminated in 18,000 jobs being cut across its offices from Sydney to New York.

Deutsche Bank's severance payments started with John Cryan, the former CEO getting nearly a €11 million pay off. After that six more board members left,  cashing in on at least €41 million according to the Financial Times. 

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2019-07-10 09:11:04Z
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Dow futures slightly lower ahead of Fed Chair Powell's testimony - CNBC

U.S. stock index futures were slightly lower Wednesday morning, as market participants eagerly anticipated comments from the world's most powerful central banker.

At around 05:30 a.m. ET, Dow futures slipped 40 points, indicating a negative open of more than 41 points. Futures on the S&P and Nasdaq were both seen slightly lower.

Market focus is largely attuned to the testimony of Federal Reserve Chairman Jerome Powell, with investors anxious to learn whether he will confirm or confound expectations for U.S. policy easing this month.

Over the next two days, Powell is expected to talk about slowing economic activity and increased risks — showing that the Fed is ready to cut interest rates as needed.

However, Powell is also likely to keep the markets — and the White House — guessing about how soon and how deep the Fed intends to trim rates, when it meets at the end of July. The prevailing view, priced into the futures market, is for a 100% chance of a quarter point rate cut July 31.

Overnight, Atlanta Fed President Raphael Bostic said the U.S. central bank was debating the risks and benefits of letting the world's largest economy run "a little hotter."

On the data front, wholesale trade figures for May will be released at around 10:00 a.m. ET.

In corporate news, AngioDynamics and MSC Industrial Direct are both set to report their latest quarterly earnings before the opening bell.

AAR, Bed Bath & Beyond and PriceSmart are scheduled to release their corporate results after market close.

— CNBC's Patti Domm contributed to this report.

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https://www.cnbc.com/2019/07/10/stock-market-fed-chair-powells-testimony-in-focus-on-wall-street.html

2019-07-10 07:01:04Z
52780328813959

Dow futures slightly lower ahead of Fed Chair Powell's testimony - CNBC

U.S. stock index futures were slightly lower Wednesday morning, as market participants eagerly anticipated comments from the world's most powerful central banker.

At around 03:35 a.m. ET, Dow futures slipped 63 points, indicating a negative open of more than 64 points. Futures on the S&P and Nasdaq were both seen slightly lower.

Market focus is largely attuned to the testimony of Federal Reserve Chairman Jerome Powell, with investors anxious to learn whether he will confirm or confound expectations for U.S. policy easing this month.

Over the next two days, Powell is expected to talk about slowing economic activity and increased risks — showing that the Fed is ready to cut interest rates as needed.

However, Powell is also likely to keep the markets — and the White House — guessing about how soon and how deep the Fed intends to trim rates, when it meets at the end of July. The prevailing view, priced into the futures market, is for a 100% chance of a quarter point rate cut July 31.

Overnight, Atlanta Fed President Raphael Bostic said the U.S. central bank was debating the risks and benefits of letting the world's largest economy run "a little hotter."

On the data front, wholesale trade figures for May will be released at around 10:00 a.m. ET.

In corporate news, AngioDynamics and MSC Industrial Direct are both set to report their latest quarterly earnings before the opening bell.

AAR, Bed Bath & Beyond and PriceSmart are scheduled to release their corporate results after market close.

— CNBC's Patti Domm contributed to this report.

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https://www.cnbc.com/2019/07/10/stock-market-fed-chair-powells-testimony-in-focus-on-wall-street.html

2019-07-10 06:51:57Z
52780328813959

Dow futures slightly lower ahead of Fed Chair Powell's testimony - CNBC

U.S. stock index futures were slightly lower Wednesday morning, as market participants eagerly anticipated comments from the world's most powerful central banker.

At around 03:35 a.m. ET, Dow futures slipped 63 points, indicating a negative open of more than 64 points. Futures on the S&P and Nasdaq were both seen slightly lower.

Market focus is largely attuned to the testimony of Federal Reserve Chairman Jerome Powell, with investors anxious to learn whether he will confirm or confound expectations for U.S. policy easing this month.

Over the next two days, Powell is expected to talk about slowing economic activity and increased risks — showing that the Fed is ready to cut interest rates as needed.

However, Powell is also likely to keep the markets — and the White House — guessing about how soon and how deep the Fed intends to trim rates, when it meets at the end of July. The prevailing view, priced into the futures market, is for a 100% chance of a quarter point rate cut July 31.

Overnight, Atlanta Fed President Raphael Bostic said the U.S. central bank was debating the risks and benefits of letting the world's largest economy run "a little hotter."

On the data front, wholesale trade figures for May will be released at around 10:00 a.m. ET.

In corporate news, AngioDynamics and MSC Industrial Direct are both set to report their latest quarterly earnings before the opening bell.

AAR, Bed Bath & Beyond and PriceSmart are scheduled to release their corporate results after market close.

— CNBC's Patti Domm contributed to this report.

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https://www.cnbc.com/2019/07/10/stock-market-fed-chair-powells-testimony-in-focus-on-wall-street.html

2019-07-10 06:12:04Z
52780328813959

Dow futures slightly lower ahead of Fed Chair Powell's testimony - CNBC

U.S. stock index futures were slightly lower Wednesday morning, as market participants eagerly anticipated comments from the world's most powerful central banker.

At around 03:35 a.m. ET, Dow futures slipped 63 points, indicating a negative open of more than 64 points. Futures on the S&P and Nasdaq were both seen slightly lower.

Market focus is largely attuned to the testimony of Federal Reserve Chairman Jerome Powell, with investors anxious to learn whether he will confirm or confound expectations for U.S. policy easing this month.

Over the next two days, Powell is expected to talk about slowing economic activity and increased risks — showing that the Fed is ready to cut interest rates as needed.

However, Powell is also likely to keep the markets — and the White House — guessing about how soon and how deep the Fed intends to trim rates, when it meets at the end of July. The prevailing view, priced into the futures market, is for a 100% chance of a quarter point rate cut July 31.

Overnight, Atlanta Fed President Raphael Bostic said the U.S. central bank was debating the risks and benefits of letting the world's largest economy run "a little hotter."

On the data front, wholesale trade figures for May will be released at around 10:00 a.m. ET.

In corporate news, AngioDynamics and MSC Industrial Direct are both set to report their latest quarterly earnings before the opening bell.

AAR, Bed Bath & Beyond and PriceSmart are scheduled to release their corporate results after market close.

— CNBC's Patti Domm contributed to this report.

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https://www.cnbc.com/2019/07/10/stock-market-fed-chair-powells-testimony-in-focus-on-wall-street.html

2019-07-10 06:10:17Z
52780328813959

Stocks slide as investors await more clarity on Fed rate-cut plans - MarketWatch

U.S. stocks fell at the start of trade Tuesday, putting them on pace for a third-straight losing session for Wall Street on Tuesday, as investors grew wary of equities ahead of key testimony from Federal Reserve Chairman starting Wednesday.

What are major indexes doing?

The Dow Jones Industrial Average DJIA, -0.32%  fell 117 points, or 0.4%, to 26,687, while S&P 500 futures SPX, -0.16% dropped 9 points, or 0.3%, to 2,968. The Nasdaq Composite COMP, +0.04%  dropped 12 points, or 0.2%, to 8,085.

On Tuesday, the Dow Jones Industrial Average fell 115.98 points, or 0.4%, to close at 26,806.14, while the S&P 500 index  declined 0.5% to finish at 2,975.95. The Nasdaq Composite Index declined 0.8% to end at 8,098.38.

Need to Know: Weaker growth will offset a Fed rate cut — so sell stocks, warns Morgan Stanley

What’s driving the market?

Investors appear less willing to hold stocks and other perceived riskier assets as they wait for two-day testimony before Congress by Fed Chairman Jerome Powell due to start Wednesday. Markets are hoping the central bank’s chief will shed some light on a meeting of the central bank’s interest-rate setting committee, slated for July 30-31, with investors clinging to hopes for a rate cut.

Expectations for interest-rate reductions have been scaled back since last week’s strong June jobs report, though a quarter-point reduction at the Fed’s meeting at the end of the month is still seen by market participants as virtually certain.

“A cut in July will be difficult to dodge given current market pricing but Powell may use the opportunity to manage expectations beyond the meeting,” said Craig Erlam, senior market analyst at OANDA, in a note to clients. “How successful he’ll be is another thing as investors don’t appear to want to hear it and may instead continue to apply the pressure going into the September meeting.”

Read: Could the Fed surprise the stock market by skipping a July rate cut? It’s not out of the question

On Tuesday, Powell gave opening remarks at a conference at 8:45 a.m. Eastern Time to discuss recent stress tests for banks. Vice Chairman Randal Quarles will speak at that same conference at 2 p.m. Eastern Time. St. Louis Fed President Jim Bullard and Atlanta Fed President Raphael Bostic are also due to make appearances elsewhere Tuesday.

Trade concerns may also be weighing on market sentiment, after the US announced new preliminary tariffs on certain steel imports from Mexico and China, pending an investigation into subsides, with a final decision due in November.

Meanwhile, a diplomatic dispute between Japan and South Korea, which has led to Japan imposing new export restrictions on three materials used in the production of advanced consumer electronics, appears to be worsening after comments Tuesday from South Korean Industry Minister Sung Yun-mo suggested the country will soon impose countermeasures, according to Reuters.

The dispute — over a Seoul court ruling allowing the seizure of some assets of Japan’s Nippon Steel & Sumitomo Metal Corp. to compensate South Korean citizens for forced labor during World War Two — could lead to added disruption in the global supply of smartphone and chips, analysts say. The PHLX Semiconductor index SOX, +0.02%   was down 0.3%.

“Japan’s decision to restrict exports on fluorinated polyimide, resist polymers and hydrogen fluoride is starting to resonate with the South Korean technology sector,” wrote Michael O’Rourke chief market strategist at JonesTrading, in a note, adding that Japan controls 80%-90% of these markets. “There is concern that the restrictions will hurt Samsung and Hynix’s chip production. The concern extends to US tech companies, which may see delays to the products they have manufactured in or parts sourced from South Korea.”

On the economic data front, the National Federation of Independent Business released its small business optimism index, which fell to 103.3 in June, from 105 in May. The decline follows gains in the previous four months, and remains above the historical average.

At 10 a.m. Eastern Time, the Labor Department will issue its estimate of employment openings in the U.S. in May, along with the rate at which Americans were hired, fired, or left their jobs.

Which stocks are in focus?

Shares of beverage maker PepsiCo Inc. PEP, -0.03%  were up 0.1% Tuesday, after reporting second-quarter results that topped expectations and affirming its full-year outlook.

Shares of Piper Jaffray Co. PJC, +0.55%   could be in focus, after a report in the Wall Street Journal that the firm is nearing a deal to buy Sandler O’Neill + Partners LP for $485 million in cash and stock. Piper stock rose 1.8% in early trade Tuesday.

Etsy, Inc. ETSY, +3.12%   announced its intention Tuesday to offer free shipping for customers with orders of at least $35. Shares were down 2.7% Tuesday morning.

Shares of Netflix Inc. NFLX, +2.09%   rose 1.5% Tuesday, after Raymond James reiterated its bullish call on the streaming video giant citing the record start for the new “Stranger Things” season.

How are other markets trading?

The yield on the 10-year U.S. Treasury TMUBMUSD10Y, +0.46%   note has edged up nearly 2 basis points, to 2.054%.

In Asia, stocks struggled, and the Hang Seng HSI, -0.76%  led decliners with a drop of 0.7%. European stocks SXXP, -0.61%  were under pressure, led by a 1.3% drop for the German DAX 30 index DAX, -0.97%  

In commodities markets, oil prices CLQ19, -0.24%   moved higher, while gold prices GCQ19, -0.46% fell 0.7%. The U.S. dollar DXY, +0.12% was higher, notably against the British pound GBPUSD, -0.4074%

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https://www.marketwatch.com/story/us-stock-futures-fall-as-investors-brace-for-comments-from-fed-chairman-powell-2019-07-09

2019-07-09 13:47:00Z
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IBM closes its $34 billion acquisition of Red Hat - CNBC

IBM closed its $34 billion acquisition of Red Hat, the companies announced Tuesday.

Shares of IBM were flat during premarket trading, while Red Hat shares were halted.

The deal was originally announced in October, when the companies said IBM would buy all shares in Red Hat at $190 each in cash.

The acquisition of Red Hat, an open source, enterprise software maker, marks the close of IBM's largest deal ever. It's one of the largest in U.S. tech history. Excluding the AOL-Time Warner merger, it follows the $67 billion merger between Dell and EMC in 2016 and JDS Uniphase's $41 billion acquisition of optical-component supplier SDL in 2000.

Under the deal, Red Hat will now be a unit of IBM's Hybrid Cloud division, according to the original announcement. The companies said Red Hat's CEO Jim Whitehurst would join IBM's senior management team and report to CEO Ginni Rometty.

IBM previously said it hopes its acquisition of Red Hat will help it do more work in the cloud, one of its four key growth drivers, which also include social, mobile and analytics. The company lags behind Amazon and Microsoft in the cloud infrastructure business. IBM has seen three consecutive quarters of declining year-over-year revenue. But some analysts are hopeful of the Red Hat deal's opportunity to bring in new business.

In an April note, Nomura Instinet analysts led by Jeffrey Kvaal said, "OpenShift [a Red Hat product] should help IBM win new customers and new workloads as enterprises begin to usher mission-critical applications from on-premise to public or private clouds."

Goldman Sachs, J.P. Morgan and Lazard advised IBM on the Red Hat deal. Morgan Stanley and Guggenheim advised Red Hat.

-CNBC's Jordan Novet, Alex Sherman and Lora Kolodny contributed to this report.

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Watch: Red Hat deal will grow cash flow, gross margins in first year: IBM CEO

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2019-07-09 13:03:34Z
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