Lunchtime Links: Bank hiring freezes blamed for the very nasty plunge in the share price of Michael Page
Last week it was SocGen and Bank of America. This week it is Michael Page.
This morning, Michael Page published its second half results.
They weren't bad. They were even quite good. Revenues rose 28% year-on-year in the first half; pre-tax profits rose 38% before non-recurring items. Even revenues in the accounting and finance sector specifically rose 22% year on year.
And yet. This morning, Michael Page's share price fell 18%.
Even though banking accounts for only 10% of gross profits at Michael Page, the monumental share price decline is being attributed to the recruiter's comments about hiring freezes in financial services, which it said had been "recently announced...in the last few weeks."
Hiring freezes in the middle and back office where Michael Page mostly operates are usually less common than in the front office.
A senior recruiter at a rival contingency recruitment says banks have freezes in place this year because they're making redundancies. Even those that aren't making redundancies are changing their minds about hiring. "There's been a recruitment sweep at certain houses," she tells us (reluctantly). "It's happened every year since 2007 - firms go through all their recruitment plans and pull back from non-critical hires.
"Normally that happens in October. It's a bit early," she adds.
Goldman increases exposure to French banks by 30% in the first half; Citigroup increases 40%. (Bloomberg)
US bank shares are now trading at about 0.7 times book value and their European peers are trading at about 0.5 times book (Asian banks excluding Japan trade at 1.5 times). (Financial Times)
Harry Samuel, current global co-head of fixed income and currencies and global head of treasury services, has become chief executive officer of RBC Capital Markets Europe. (Financial Times)
RBC Capital markets has hired 620 people in Europe in the past 2 years. (Financial News)
Junior partners at second-tier City firms will earn as little as 165k this year, while the lowest-paid partners in the magic circle will take home about 500k. (The Times)
US bond manager Loomis, Sayles & Company is opening an office in London and may be hiring. (Financial News)
Deutsche Bank is building its precious metals vaulting operation and wants to open its very own vault. (Financial News)
Goldman Sachs' returnship programme may be coming to the UK. (Evolved Employer)
Lloyd Blankfein may have a hairy back. (DealBook)
Top ten things I have heard in an investment banking elevator. (EpicureanDealmaker)
"Given your background in academia, blackjack gambling and hedge fund management, can you talk a little about the differences in those?" (EdwardoThorp.com)
Jon Moulton: "For about two years I have been firmly of the opinion that the economic system in the Western world is poised for a really painful collapse." (SundayTimes)
People with symmetrical faces are more self-sufficient and less likely to co-operate. (Guardian)
There are not enough North Sea oil engineers to go around. (Evening Standard)
