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EXCLUSIVE - Barclays to close down energy business within Macro trading division - memo

Reuters  |  LONDON 

(Reuters) - will close the business within its 'Macro' division, the said in an internal memo on Thursday obtained by Reuters, in a move that will affect dozens of jobs at the British lender.

The said it would have required "significant incremental investment" to maintain and grow the business, and that the resources would be better deployed growing other businesses.

The business is responsible for the sale and of energy-related products, largely derivatives such as oil futures contracts, and sits within the 'Macro' division that also trades foreign exchange and interest rate products.

"This is the right decision for and the broader firm as we invest for the long term to best serve our clients," Joe Corcoran, head of markets at Barclays, said in the memo.

Macro's business accounted for less than 2 percent of overall revenue for the markets business at Barclays, the memo said.

"has made the decision to wind-down its business within which will create the additional capacity to invest in and accelerate the growth of our Rates and FX businesses," a spokesman told Reuters by email. "We have made the decision to redeploy capital, technology resources and people into our core areas of strength so that we can best serve the needs of our global Markets and Banking clients and earn an attractive return for our shareholders."

Investment banks have increasingly struggled to make money from commodities such as oil in recent years amid weak prices and muted investor appetite for related products.

Commodities-related revenue at the 12 biggest investment banks fell 22 percent in the first nine months of this year due to weak industrial metals and lacklustre investor interest, a report by financial industry analytics firm Coalition said on Nov. 16.

has been scaling back its commodities exposure this year, announcing in January it would exit the precious metals business and in May that it would sell its gold vault, one of the largest in Europe, to ICBC Standard Bank.

(Reporting By Lawrence White; Editing by Susan Fenton)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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EXCLUSIVE - Barclays to close down energy business within Macro trading division - memo

LONDON (Reuters) - Barclays will close the energy business within its 'Macro' trading division, the bank said in an internal memo on Thursday obtained by Reuters, in a move that will affect dozens of jobs at the British lender.

(Reuters) - will close the business within its 'Macro' division, the said in an internal memo on Thursday obtained by Reuters, in a move that will affect dozens of jobs at the British lender.

The said it would have required "significant incremental investment" to maintain and grow the business, and that the resources would be better deployed growing other businesses.

The business is responsible for the sale and of energy-related products, largely derivatives such as oil futures contracts, and sits within the 'Macro' division that also trades foreign exchange and interest rate products.

"This is the right decision for and the broader firm as we invest for the long term to best serve our clients," Joe Corcoran, head of markets at Barclays, said in the memo.

Macro's business accounted for less than 2 percent of overall revenue for the markets business at Barclays, the memo said.

"has made the decision to wind-down its business within which will create the additional capacity to invest in and accelerate the growth of our Rates and FX businesses," a spokesman told Reuters by email. "We have made the decision to redeploy capital, technology resources and people into our core areas of strength so that we can best serve the needs of our global Markets and Banking clients and earn an attractive return for our shareholders."

Investment banks have increasingly struggled to make money from commodities such as oil in recent years amid weak prices and muted investor appetite for related products.

Commodities-related revenue at the 12 biggest investment banks fell 22 percent in the first nine months of this year due to weak industrial metals and lacklustre investor interest, a report by financial industry analytics firm Coalition said on Nov. 16.

has been scaling back its commodities exposure this year, announcing in January it would exit the precious metals business and in May that it would sell its gold vault, one of the largest in Europe, to ICBC Standard Bank.

(Reporting By Lawrence White; Editing by Susan Fenton)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

EXCLUSIVE - Barclays to close down energy business within Macro trading division - memo

(Reuters) - will close the business within its 'Macro' division, the said in an internal memo on Thursday obtained by Reuters, in a move that will affect dozens of jobs at the British lender.

The said it would have required "significant incremental investment" to maintain and grow the business, and that the resources would be better deployed growing other businesses.

The business is responsible for the sale and of energy-related products, largely derivatives such as oil futures contracts, and sits within the 'Macro' division that also trades foreign exchange and interest rate products.

"This is the right decision for and the broader firm as we invest for the long term to best serve our clients," Joe Corcoran, head of markets at Barclays, said in the memo.

Macro's business accounted for less than 2 percent of overall revenue for the markets business at Barclays, the memo said.

"has made the decision to wind-down its business within which will create the additional capacity to invest in and accelerate the growth of our Rates and FX businesses," a spokesman told Reuters by email. "We have made the decision to redeploy capital, technology resources and people into our core areas of strength so that we can best serve the needs of our global Markets and Banking clients and earn an attractive return for our shareholders."

Investment banks have increasingly struggled to make money from commodities such as oil in recent years amid weak prices and muted investor appetite for related products.

Commodities-related revenue at the 12 biggest investment banks fell 22 percent in the first nine months of this year due to weak industrial metals and lacklustre investor interest, a report by financial industry analytics firm Coalition said on Nov. 16.

has been scaling back its commodities exposure this year, announcing in January it would exit the precious metals business and in May that it would sell its gold vault, one of the largest in Europe, to ICBC Standard Bank.

(Reporting By Lawrence White; Editing by Susan Fenton)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

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