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JPMorgan Chase to cut 4,000 jobs in 2013

Written By Unknown on Selasa, 26 Februari 2013 | 08.52

US banking giant JPMorgan Chase plans to slash 4,000 jobs in 2013 as part of a cost-cutting program, according to the company's presentation to investors on Tuesday.

JPMorgan Chase projected it would reduce overall expenses in 2013 to $US59 billion ($A57.63 billion), approximately $1 billion below the 2012 level, as the company seeks corporate and investment bank cost synergies, presentation slides showed.

JPMorgan reported earnings of $21.3 billion in 2012, up from $19 billion a year earlier. The jump in profits came despite an embarrassing $6.2 billion trading loss stemming from a London trader nicknamed the London "whale."

The trading losses led to several resignations and reassignments and resulted in a lower 2012 take-home pay for JPMorgan chief executive Jamie Dimon.


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Russian investigators search Rusal offices

RUSSIAN investigators say they are searching the Moscow offices of the world's largest aluminium producer Rusal as part of a probe into alleged tax violations which the company have dismissed as groundless.

"Items and documents (obtained as a) result of the searches... will be made part of the material of the criminal probe," the powerful Investigative Committee's Moscow branch said in a statement.

Rusal, owned by Russian billionaire Oleg Deripaska, said in a statement that the searches in its office were linked to a tax investigation against a subsidiary which it said had no foundation.

The investigators' actions "are connected to the groundless claims of the tax authorities and the Investigative Committee against Rusal Folga (a Rusal subsidiary) and its management," it said in a statement.

Rusal said the claims by tax authorities were based on a court decision which has not yet gone into effect.

The Investigative Committee earlier this month launched a probe into large scale tax evasion by the head of Rusal Folga, an aluminium foil subsidiary of the Hong-Kong-traded giant.

The subsidiary's head Igor Kasyanov is suspected of evading taxes in the amount of over 200 million rubles ($A6.35 million) according to the investigators, who said in a statement that Kasyanov doctored the subsidiary's books between 2008 and 2009 to record services of a "fictitious company".

The potential tax evasion charge against Kasyanov carries up to six years in prison.

Russia's tax authorities last year demanded that Rusal Folga pay over 289 million rubles of taxes and fines, however the firm filed a lawsuit against the claims in the arbitration court.

The court ruled in favour of the tax inspection on January 23. According to the publicly-available decision, the tax authorities are disputing transactions between Rusal Folga and a small firm from which it purchased paper, paint, and other materials. The firm was found by tax inspectors to be "fictitious".

Rusal said in a statement that "it cannot be held responsible" for actions of its suppliers, vowing to appeal the court decision.

Rusal Folga is located in the same office as Rusal's Moscow headquarters.


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Qld Health blueprint to be unveiled

PREMIER Campbell Newman is set to inform Queensland Health staff of a shake-up to their sector, addressing them in a live broadcast.

He'll join Health Minister Lawrence Springborg in breaking the news to the 80,000 workers about 10.30am (AEST) on Wednesday.

Mr Springborg detailed some of the plan on Tuesday.

The state's 17 public hospital boards will decide if they can deliver services such as oncology, radiography and catering more efficiently through private contractors but any outsourced services will remain free to the public.

Mr Springborg said reporting would be improved to include hospital-acquired infections, efficiencies, and child and maternal welfare, while each hospital's performance would be easily comparable.

The Sunshine Coast University Hospital, due to open in 2016, is also likely to partner with the private sector under a similar deal as the Mater Hospital in Brisbane.

Queensland Health has already lost more than 2500 staff since the Newman government came to power, but Mr Springborg insisted there'd be no staff cuts under the latest reforms.

Mr Newman and Mr Springborg will further unveil the plan to a fundraising lunch for the Liberal National party later on Wednesday.

The move has outraged unions and the opposition, who say the LNP will be profiting from the misery of workers fearing for their jobs.

The opposition said the LNP is charging $200-per-head for the lunch, or $2000 a table, and has demanded all profits go to Queenslanders who've suffered in the recent floods.

The state public-service union Together will hold a rally outside.


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Bernanke: sequester would hit US recovery

FEDERAL Reserve Chairman Ben Bernanke warned Congress Tuesday that the $US85 billion ($A83.02 billion) in spending cuts of the March 1 sequester would place a "significant" additional burden on the US economic recovery.

"The Congress and the administration should consider replacing the sharp, front-loaded spending cuts required by the sequestration with policies that reduce the federal deficit more gradually," he told a Senate hearing.

Bernanke cited data from the Congressional Budget Office projecting that the cuts, to be implemented over the next seven months if no moderate substitute program is agreed, would reduce potential economic growth by 0.6 per cent.

"Given the still-moderate underlying pace of economic growth, this additional near-term burden on the recovery is significant," he said.

"Besides having adverse effects on jobs and incomes, a slower recovery would lead to less actual deficit reduction in the short run."

Bernanke said US economic growth had rebounded from the fourth quarter, when initial estimates say the economy actually contracted by 0.1 per cent.

"Available information suggests that economic growth has picked up again this year," he said.

The economy continues to grow "at a moderate if somewhat uneven pace."


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19 killed as balloon explodes in Egypt

A HOT air balloon has exploded and plunged to earth at Egypt's ancient temple city of Luxor during a sunrise flight on Tuesday, killing up to 19 tourists, mainly Asians and Europeans, sources say.

The balloon carrying 21 tourists from Hong Kong, Japan, France, Britain and Hungary was flying at 300 metres when it exploded and caught fire, a security official said.

The pilot and one tourist survived by jumping out of the basket moments before it hit the ground, said an employee at the company operating the balloon, Sky Cruise. Both were taken to hospital.

"This is terrible, just terrible," the employee told AFP by telephone, declining to give her name. "We don't yet know what happened exactly or what went wrong."

Luxor Governor Ezzat Saad imposed an immediate ban on all hot air balloon flights in the province as Prime Minister Hisham Qandil ordered an investigation into the accident.

Security services cordoned off the scene of the crash in Luxor's dense sugar cane fields, as police and residents inspected the charred remains of the balloon.

"There was a terrifying sound when the balloon exploded," one resident, Ahmed, 40, told AFP.

"Bodies engulfed in flames were falling out of the balloon," said Youssef al-Tayyeb, another resident who witnessed the accident.

The balloon had been floating over the west bank of Luxor, one of Egypt's most renowned archaeological sites and home to the famous Valley of the Kings and the grand Temple of Hatshepsut, when it exploded.

There was confusion over the exact death toll and the tourists' nationalities, with different official bodies giving conflicting figures and details.

An Egyptian security official said 19 tourists from Hong Kong, Japan, Britain, France and Hungary had died. The health ministry put the toll at 18 dead.

Nine of those killed were thought to be from from Hong Kong, and two from Japan, along with the confirmed deaths of two French tourists and three Britons.

"I can confirm that sadly two of our citizens died in this accident," said French foreign ministry spokesman Philippe Lalliot. "We are in contact with their families."

British tour operator Thomas Cook said three of its clients had also died in the crash.

The Foreign Office did not confirm the toll, saying only "we believe a small number of British nationals are involved in an incident in Luxor this morning", and that consular staff were offering assistance.

"We believe that there is a high possibility that nine of our customers have died," said Raymond Ng, general manager of travel agency Kuoni, which organised the Hong Kongers' tour.

The five women and four men were aged between 33 and 62, Ng told a news conference in Hong Kong. Their relatives were to fly to Cairo later on Tuesday accompanied by three Kuoni staff.

The nine were among a group of 15 Hong Kongers who had left for Egypt on February 22. Ng said that, according to local employees, the balloon caught fire about an hour after it had set off, plummeting to the ground two minutes later.

French hot air balloon expert Philippe Buron-Pilatre de Rozier said the blast could have been caused by a leak after a spark caused by a lighter or a cigarette.

Another reason could be wear and tear due to poor maintenance or if the pilot is badly positioned, said Buron-Pilatre de Rozier, adding that hot air balloons such as the ones used in Egypt are generally 40 metres high and can carry up to 25 passengers.

The Japanese embassy in Cairo said it was trying to confirm the reports that Japanese nationals died in the accident.

In 2009, 13 foreign tourists were injured when their hot air balloon hit a phone mast and crashed at Luxor. Sources at the time said the balloon was overcrowded.

The crash comes amid widespread anger over safety standards in Egypt following several deadly transport and construction accidents.


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US stocks higher ahead of Fed testimony

US stocks have opened solidly higher in anticipation of congressional testimony by Federal Reserve Chairman Ben Bernanke.

The markets were also buoyed by upbeat earnings results, including from home-improvement retailer Home Depot.

Fifteen minutes into trade, the Dow Jones Industrial Average was up 83.01 points (0.60 per cent) to 13,867.18.

The broad-based S&P 500 jumped 7.45 points (0.50 per cent) to 1,495.30, while the tech-rich Nasdaq Composite Index rose 7.28 points (0.23 per cent) to 3,123.53.

The gains partially offset deep losses sustained on Monday in the wake of the uncertain outcome of the Italian elections.


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S Africa minister wants tough gun controls

SOUTH Africa's women's minister has called for stricter gun controls, saying Oscar Pistorius' girlfriend would not have been killed if the sprinter did not keep a firearm.

"If there was no gun in the Pistorius home, Reeva Steenkamp would be alive today," said Minister Lulu Xingwana.

Xingwana said she was disappointed that Pistorius was granted bail on Friday after more than a week in custody for gunning down Steenkamp on Valentine's Day.

"But I respect the decision of the court and I also acknowledge that strict measures have been put (in place) to ensure that he is not a flight risk," she told a media briefing.

The case has reignited debate over South Africa's high levels of violence, particularly against women, with prosecutors charging that Pistorius intended to kill the 29-year-old model and law graduate.

The paraplegic sprinter claims the shooting was an accident after he mistook Steenkamp for an intruder. He returns to court in June.

South Africa has tough gun ownership legislation which is credited with bringing down the firearm homicide rate. But better oversight was needed, said Xingwana.

"We are not calling for a law on gun control, we are calling for stricter monitoring of the law and monitoring of (the) distribution of guns in our society," she said.

Research showed a woman was three times more likely to die violently if firearms were kept in a house, she said, without giving details.

"We need to stand up and say we don't want so many guns in our society," she added.

Estimates of the number of privately owned firearms vary, but lobby group Gun Free South Africa put the figure at 2.9 million registered guns in 2011 for a population of nearly 52 million.


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