Nomura said it would cut $1bn in costs over the medium term, and close 30 of its 156 domestic retail branches, after Japan’s biggest brokerage and investment bank recorded large losses in the April to December 2018 period.

The plans to streamline operations involve an unspecified number of job cuts at Nomura’s US and European operations in what the company described as a “radical simplification of its operating model”.

The plans to close Japanese brokerage branches represents a key moment for Nomura, whose domestic network has long been regarded as the backbone of the business and among the last areas that would be subjected to the kind of severe cost cutting that has been carried out in its overseas operations.

In a presentation to investors on Thursday, Nomura set out plans to turn around its business, which has been struggling at home and abroad. The plan aims to build a wholesale business that “delivers consistent pre-tax income of $1bn”.

Nomura incurred a net loss of $907m between April and December 2018, its worst performance since the financial crisis. (more…)

Edward Heath allowed a cross party vote to get in

There is a perfect sense of symmetry that the way into the EU should also be the way out: namely through cross party consensus. In 1973, when I was still just a twinkle in my father’s eye, Edward Heath allowed a cross party vote on Britain entering into the EU. Party politics were momentarily placed to one side and Britain was in. Now Theresa May formally offers a cross party approach to Jeremy Corbyn to get us out.  See the details here that Adam reported on at the time. It is worth following the link if only to see the sight of Jeremy Corbyn dressed as Obi Wan Kenobe.

The GBP has rallied on the news as Theresa May tried to ‘break the logjam’. One thing Theresa May is particularly gifted at is the ability to weather a storm. As Trump seems to be immune to controversy – there is accusations about Trump everywhere and even his golf is reported to be highly dubious. Here is one report by the Guardian, but there are a few around. The writer concludes, with the completely unsurprising statement, ‘Somebody should point out that the way Trump does Golf is sort of the way he does a presidency, which is to operate as though the rules are for other people’. Shock, horror? No, everyone kind of knows it already and no-one is surprised. I think that is part of the reason Trump has weathered the storms of payments to lawyers and his relationship or otherwise with Stormy Daniels etc. No surprise from anyone, not least Trump. In a similar way, the rejection that would normally crush another politician doesn’t seem to hurt Theresa May. You know the images we have seen of Theresa May wandering alone around Europe telling the EU 27, ‘we are making progress’ and ‘nearly there’. Only for May to turn back to good old Blighty and face another slap in the face with a rejected deal. There are calls for her to resign, coups from the Tory party, exasperation from Europe and May…just shrugs it off and comes back. It is a little bit like the guy who asks the girl to marry him, but she says, ‘No’. So, he decides to swallow all pride and ask again, again and again. Publicly, regularly and without shame. He wants the girl and that’s all he thinks about. At heart I think this is what drives May. She wants to serve her people and this is the way she is convinced will best help them deliver on their decision. Whether right or wrong, she seems correctly motivated.

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Wall Street Journal with perhaps a bit more light on why Trump is meeting with China’s Vice Premier today

• signalling that contentious trade talks between the two countries may be nearing conclusion
• An announcement of a summit date is “likely” to come while Mr. Trump meets with the Chinese leader’s special envoy, Vice Premier Liu He, at the White House on Thursday, according to an administration official, but discussions remain fluid and those plans could change.