Credit Suisse faces the triple challenge of record low interest rates, low commodity prices and slower growth by announcing more cost cuts and staff reductions. As Grace Pascoe reports, the cuts include 2,000 jobs at its Global Markets business.
More job cuts and cost slashing at Credit Suisse. Raising an overall savings target from 3.5 to 4.3 billion Swiss Francs. With new cuts in addition to those announced after a new CEO took over last year. Economists wondering whether even tougher operating conditions now were beginning to bite. (SOUNDBITE) (English) WORLD FIRST, CHIEF ECONOMIST, JEREMY COOK, SAYING: "They said in October they were looking to increase redundancies, cut people off, cut spending. And they are only increasing that today, so what has happened in the last six months." 2000 more jobs will be cut - putting the total up to 6,000. It also plans to shrink its investment bank further With hopes its restructuring plan will revitalise earnings. Banks are facing a pretty dismal first quarter - with a slump of 15 percent in market trading revenue. Low interest rates, low commodity prices and slower growth in emerging markets like China have all hit banks hard. (SOUNDBITE) (English) WORLD FIRST, CHIEF ECONOMIST, JEREMY COOK, SAYING: "This is a larger sectoral change, we are seeing, you know, Deutsche Bank cutting back on the dividend, we are seeing Barclays cutting positions as well and cutting back their investment banking operations, this is a whole sector starting to shrink." Shares in the company rose 2 percent on the news, having fallen by more than a third this year.