CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Barclays shares up on 8220 bold simplification 8221 of bank

Article By: ,  Financial Analyst
May 8, 2014 10:15 AM

The share price of Barclays is up this morning after the bank revealed thousands of jobs are being cut as part of a "bold simplification" of the bank.

Investors responded positively to the news, which was revealed in a statement by the bank's chief executive Antony Jenkins.

A "bad bank" is to be set up by Barclays and the plan is for this to sell or run down £115 billion of non-core operations. As a result of the major restructuring that is set to take place at Barclays over the coming months, it was stated by the bank that 14,000 jobs are going to be lost.

It is expected that around half of these are going to be in the UK and the figure is a considerable amount higher than the bank's previous estimate that it would cut 10,000 jobs in 2014.

"We will be a focused international bank, operating only in areas where we have capability, scale and competitive advantage," said Mr Jenkins in a statement.

Job cuts

Some 2,000 jobs will go at the investment division of the bank this year, while another 5,000 positions are going to be lost by 2016.

Investors responded positively to the news of the restructuring operations being pushed through by Mr Jenkins and in the early stages of trading on the London Stock Exchange this morning, the share price of the bank rose strongly.

By 08:21 BST, the bank was one of the major movers on the index and shares were already up by well over three per cent compared to the start of the session and stocks were continuing to increase. The bank's share price stood at 251.30, but this is still some distance away from the company's 52-week high for its stocks of 338.20.

Barclays is one of the biggest banks in the UK and the news of thousands of job losses could be a blow to the health of the financial sector in the country and this in turn may damage the economic recovery.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024