When people are leaving the business, it's usually the sign of a bottom, conversely when everyone wants in it's a top. Look at the recent news from London.
N.M. ROTHSCHILD & SONS TO WITHDRAW FROM BASE METALS TRADING
2001-10-11 12:50 (New York)
(The following is a reformatted version of a press release
issued by NM Rothschild and received via electronic mail. The
release was confirmed by the sender.)
London, Oct. 11 -- N M Rothschild, the international
investment banking group, today announced that it was withdrawing
from participation in the base metals market. Following a thorough
review of its Treasury business, this decision has been taken in
the context of limited opportunities in base metal markets. N M
Rothschild remains fully committed to its core business of
precious metals and will continue to provide clients with a full
range of services in the gold, silver and platinum group metals
markets.
The decision to cease base metals activity will involve the
closure of Rothschild's metals sales desk in New York and a
limited number of redundancies in both London and New York
trading, sales and support areas. This does not affect
Rothschild's base metals business in Australia which has a strong
local franchise.
Sir Evelyn de Rothschild, Chairman, said:
"In light of difficult trading conditions in the base metals
markets, we have concluded that our limited base metals operation
is no longer viable. N M Rothschild remains strongly committed to
our core business in precious metals and continues to be at the
forefront of spot, forward and option bullion markets and a
leading member of the London Bullion Market Association."
For further information contact:
Geoffrey Spice
Managing Director - Head of Treasury
Tel: + 44 20 7280 5501
and also
LME Says Scotiamocatta to End Open-Outcry Floor Trade (Update2)
(Adds bank quotes in second, fifth paragraphs.)
London, Oct. 10 (Bloomberg) -- The London Metal Exchange said
Scotiamocatta, a metals-trading unit of the Bank of Nova Scotia,
will cease open-outcry transactions on the LME floor.
It was not immediately clear when the company will end floor
trading, said Caoimhe Buckley, a spokeswoman for the exchange, the
world's biggest metals-trading bourse. The bank is planning to cut
about 20 base metals staff in London, said Pam Agnew, a
spokeswoman in Toronto, though its floor dealing is unaffected for
now. ``At this time, it's business as usual,'' she said.
Scotiamocatta is the latest defection from the LME, whose
number of floor traders has more than halved to 11 in the past
decade because of declining margins. This year, the price of
copper has dropped 23 percent and aluminum has declined 17 percent
as slowing economies cut demand and reduce trading commissions.
``It detracts from (the LME's) standing as a marketplace
because it's another one gone,'' said Richard Starsmeare, head of
commodity and trade finance at Raiffeisen Zentralbank in London.
The bank's decision to cut its London metals staff is related
to the ``downturn in the economy,'' Agnew said.
The LME's director of corporate affairs, Jonathan Haslam,
later said the exchange couldn't officially comment on
Scotiamocatta's role at the exchange.
``The LME wishes to make clear that it has made no formal
statement about the position of the Bank of Nova Scotia,'' Haslam
said in a statement. ``Any statements about their future trading
must come from them.''
The LME's other floor-trading members, or ``ring dealers''
include Enron Metals Ltd. and Refco Overseas Ltd.
--Jon Hurdle in the London newsroom (44) 207 673 2095 or
jhurdle1@bloomberg.net/tc/cm |
