KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Germany’s Commerzbank is preparing major job cuts and new financial targets as part of its strategy to remain independent and block Italy’s UniCredit from a takeover, multiple sources told Reuters.
🚨 Thousands of Job Cuts in the Works
🔹 Commerzbank plans to cut between 3,000 to 4,000 jobs out of its 42,000-strong workforce as part of cost-saving measures.
🔹 The cuts aim to be evolutionary rather than radical, allowing the bank to remain competitive without unsettling remaining staff.
🔹 Many affected employees may be offered early retirement packages to soften the impact.
📌 Why It Matters: These moves are intended to boost investor confidence in Commerzbank’s ability to thrive independently and dissuade a potential UniCredit merger.
💰 New Strategy & Financial Targets
Commerzbank’s management, led by CEO Bettina Orlopp, will present a revamped strategy on Thursday.
📈 Key Highlights:
- Leaner operations through technology investments.
- Potential small-scale acquisitions rather than major deals.
- Building on strong 2024 results, which saw a 20% increase in net profit.
- Tighter cost controls to demonstrate financial strength.
💬 Commerzbank’s goal: Prove to investors that it can grow independently and does not need a foreign buyer.
⚔️ A High-Stakes Takeover Battle
🔹 UniCredit CEO Andrea Orcel shocked Germany’s financial and political elite by acquiring a significant stake in Commerzbank and pushing for a merger.
🔹 Commerzbank has labeled UniCredit’s approach as "hostile."
🔹 Germany’s political and business leaders—including Chancellor Olaf Scholz—oppose the deal.
💬 Boris Rhein (Premier of Hesse, Commerzbank’s home state): "Nobody wants what you are doing. Withdraw!"
📌 The Bigger Picture: The battle for Commerzbank is seen as a test of Germany’s ability to protect its key financial institutions from foreign takeovers.
🌍 The Broader European Banking Landscape
📌 While Commerzbank fights off a takeover, Europe is seeing a wave of banking mergers.
- Spain & Italy: Large-scale banking consolidation is underway.
- Netherlands: ING is exploring acquisitions.
- UniCredit remains open to walking away if the deal does not go through.
💬 Industry experts say that consolidation is inevitable, but Germany appears determined to keep Commerzbank in local hands.
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