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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (4920)	11/21/2002 11:37:42 AM
From: Smiling Bob	Read Replies (1) \| Respond to of 19256

Why are these stocks not trading nearer to 52 week lows??? Morgan Stanley Axes 2,200 Jobs - Sources Thursday November 21, 10:50 am ET By Jane Merriman and Vicki Kwong LONDON/HONG KONG (Reuters) - Investment bank Morgan Stanley (NYSE:MWD - News) is firing about 2,200 employees worldwide in a move to cut costs amid the slump in global financial markets, industry sources said on Thursday. ADVERTISEMENT The job cuts, around four percent of total headcount, affect staff across different business areas at the U.S. brokerage, the sources said. Industry sources in Hong Kong said the latest round of lay-offs at the firm would affect about 100 employees in Asia including Japan. Morgan Stanley officials in London and Hong Kong declined to comment and New York representatives were not immediately available. Morgan Stanley and other Wall Street banks have been under pressure to slash costs as their revenues are hit by dwindling underwriting and merger advisory deals. Faced with the worst downturn in their industry for more than three decades, investment banks have cut an estimated 67,000 jobs since the start of 2000 and more reductions are in the pipeline. In the last few weeks, most of the other big investment banks have axed more jobs to cut costs in line with the slide in revenues caused by the prolonged market downturn. NEW WAVE OF CUTS Last month, J.P. Morgan Chase & Co. (NYSE:JPM - News) fired about 130 investment bankers and analysts in Asia as it grappled with loan and trading losses, sources familiar with the situation said. "It's not surprising," said Philip Middleton, a partner in Ernst & Young's financial services group. "The surprising thing is that they (Morgan Stanley) were able to hold off for so long." Middleton said cuts in the industry, which initially affected mostly junior and support staff, were now beginning to reach managing director level. "I think everybody now recognizes we are going through a structural change in the industry. The boom times (of 1999/2000) will not return for a generation." Most of the Wall Street investment banks, plus Credit Suisse First Boston (CSGZn.VX), French bank Societe Generale (Paris:SOGN.PA - News) and Germany's Commerzbank (XETRA:CBKG.DE - News) have cut swathes of staff in the last two months. CSFB, for example, last month announced cuts of up to 1,750 more jobs worldwide as the slump in the industry deepened. It had already slashed more than 6,000 jobs since July 2001 in a bid to contain costs. Morgan Stanley had until now held off making any major cuts to its work force, which stood at 57,799 when the firm reported third-quarter earnings in September. The bank currently ranks number one in mergers and acquisitions in Europe and number two globally, according to industry data. The firm advised global bank HSBC (London:HSBA.L - News) on its $14 billion purchase of U.S. credit company Household, unveiled last week, giving its European league table ranking a boost. The bank suffered a 17 percent fall in third quarter profits and has reported lower profits for eight quarters in a row. (additional reporting by Elizabeth Lazarowitz in New York) biz.yahoo.com