Barclays PLC has just had a hiring spree in aim to expand its investment funding and marketing performances in Japan after a year of closing its cash equity business in the country which lead to a loss of 120 employment titles.
In this fiscal year, Barclays is looking forward to having beyond 10 bankers and sales personnel to advise a planned merger and sell investment goods, President of Barclays Securities Japan Ltd, Kentaro Kiso told reports. In Tokyo, Kiso has just hired beyond 30 people for investment banking and markets just right after taking the post of Eiji Nakai in the previous month of July.
The President who is in his early 50’s has been planning to reshape Barclay’s Japan branches in a goal to pull up its revenues which has declined just right after withdrawing from the belligerent stock-brokerage occupational in the preceding year. Kiso is hoping that Japanese firms will continue to seek more mergers and acquisitions from foreign firms in which will also avail investment products especially right now as low interest rates lower revenues on assets such as government bonds.
Kiso, 50, has been rebuilding the British bank’s Japan operations in an effort to boost revenue that fell after it withdrew from the struggling stock-brokerage business last year. He is betting that Japanese companies will seek more acquisitions abroad and financial firms will buy more investment products as low interest rates depress returns on assets such as government bonds.
“We’re in the process of lining up good people for investment banking, which could generate steady revenues. Japanese financial institutions are keen to make acquisitions overseas, such as asset managers or leasing assets.” Kiso explained further.
With around 35 branches in Tokyo, Barclays plants to hire five advisors to manage mergers and work with companies counting financial companies, Kiso added. At about five to seven people will also be hired to market products.
In further details, Yuzo Otsuka was hired from Lazard Ltd. last December as the head of mergers and acquisitions. Former head of M&A at Citigroup Inc., Takeshi Inoue, also joined the roster in October as head of the financial institutions group.
Last year, Barclays cut at around 120 jobs in equity research, sales and trading in Tokyo, Kiso said. The move was a measure of slashes through Asia as Chief Executive Officer Jes Staley wanted to reduce costs internationally to gather earnings.
“There’s no doubt that we’re facing a shortage of people,” Kiso specified. “But it’s a good opportunity to upgrade.”
At the time being, Barclays is having a hard time surging to a higher level. It has been trading around the levels of 200-220 since April of this year. Currently, it is down at 206.10, continuing is bearish trend from yesterday’s trades.
As for its indicators, Barclays is having a hard time trading beyond the 50’s region. For 5 months now, it has not surpassed the 60’s region and it seems like it is going downhill as it is currently at 50.07.
Lastly, the Coppock curve is seen inching down a bit. Can this be an opening to a potential downfall? Possibly. It is currently at 4.34 and a buy would be recommended as it is on a positive region anyhow.
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