Macquarie Bank follow ANZ & Westpac in bonds issue
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Macquarie Bank became the third major Australian bank to issue bonds priced ar US$1.7 billion in the US Bond market as it’s rivals secured funding sources.
ANZ Bank earlier in the week issued bonds of US$1.75 billion, while Westpac followed shortly behind with a US$1.5 billion issue.
Macquarie cut 100 jobs
Macquarie have made in the vicinity of 100 jobs cuts today, the cuts have been to their investment bankers and advisers and are believed to mostly be in the Sydney, Brisbane and Melbourne offices.
Macquarie have around 13,000 employees and there is speculation the cuts could amount to 1000 in the coming months.
Macquarie deliver better than expected profit
The Macquarie Group delivered a better than expected profit today amid the continuing economic gloom unveiling a net profit of $604 million for the xic months to 30 September 2008.
Macquarie’s profit fell by 43%, however profits where ahead of analyst expectations.
What had pleased the market and pushed the Macquarie Group share price up immediately was news that the bank had surplus capital of $3.3 billion and had no plans to access capital markets for funding.
Macquarie’s statement of considering acquisitions was also a major positive for the share price. The CEO Nicholas Brown confirmed the bank was planning job cuts and expected profits to grow although at a lower level amid difficult trading conditions.
To read the announcement click Macquarie Bank.
Australian Banks to cull jobs
Australian banks are about to hit the panic button with a new host of job cuts across the sector.
The biggest cuts have been flagged with 2000 job cuts coming from the Westpac & St George merger that was approved by shareholders today.
The National Australia Bank yesterday cut 179 technology jobs, while ABN Amro will cut 150 jobs as part of a review by the Royal Bank of Scotland.
A host of other financial institutions such as Commonwealth Bank, Suncorp, Merrill Lynch and Macquarie Bank have either frozen recruitment or indicated job cuts are likely.
Do you work in the finance industry? If so share you story of how times have changed in recent months in our comments section.
Is now too late to lock in Term Deposits?
Where you ahead of the pack a few months ago and locked in your savings into term deposits, well if you did then you may have timed it perfectly.
With the Reserve Bank having cut interest rates by 1.75% in the last two months, term deposir rates have started to fall in response.
At the moment we are still gripped by the credit crisis and all the major institutions have increased the deposit rates to secure other forms of funding through deposit rates instead of seeking funds through the market.
This has created good opportunities to secure a term deposit at what on several months ago were sensational returns in a falling market.
In recent weeks the term deposit rates have started to fall in line with the Reserve Bank cuts and now may be one od the last chances to secure a solid term deposit if your planning to lock your funds away for a while in a safe guaranteed investment.
A return over 6% can still be secured for a term deposit in excess of 1 year from institutions such as CUA with 6.75% for over $10,000 and Macquarie with 6.50% for over $10,000. The best deals from the big banks is from NAB and Westpac at 5.50% for a 1 year term deposit.