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UBS’ commodities business was dealt a fatal blow this morning when the Swiss bank revealed its intention to pull out of commodities trading altogether (along with real estate, securitization and prop trading). It’s unlikely to come as a particular shock to anyone in London though - the commodities business at Broadgate is practically non-existent. “UBS used to trade oil, gas, power and emissions,” says one headhunter. “But they got rid of... Read more

One minute it’s up, one minute it’s down, but fluctuations in the price of oil should be good news for oil trading jobs. Last week, energy exchanges NYMEX and ICE reported rising reported healthy increases in profits on the back of rising oil trading volumes following peaking prices and (in the case of ICE) ‘the entry of new participants in all markets.’ Anyone might think those new participants equate with... Read more

It’s down to regulators to reform the bonus system. And given regulators are powerless to intervene, reform looks as likely as a small village in Hampshire becoming the financial centre of the UK. Regulators are certainly making scary noises. From Mervyn King’s anti-bonus diatribe, to Sir Callum McCarthy’s call for banks to emphasise long-term performance, snarls and grunts about bonuses have been emanating from the regulatory corner for several months.... Read more

A new study says 20,000 trading jobs will go by 2012, most of them in the next 12 months. But commodities traders, particularly those who specialise in foodstuffs, should be fat and happy no matter what. The scary figures come from a research firm which claims to have spoken to hundreds of traders, many of whom expect to lose their jobs some time soon. “Volatility is good right now, but there’s... Read more

Financial firms are (ahem) ploughing money into agricultural commodities and the once-maligned trading roles are back in vogue. With all the hoo-ha surrounding escalating oil prices, it’s easy to overlook the agricultural commodities like grain, oil seeds, coffee, cocoa and sugar, but they’re predicted to take off in 2008. The latest quarterly review from the Bank for International Settlements reveals that trading on the agricultural futures and options market increased 16%,... Read more

On one hand, Deutsche’s recruiting and 350 new commodities jobs are predicted between now and June. On the other, headhunters say commodities hiring is slowing. The prediction of 350 new jobs originated with the Financial Times, which, in the dark days pre-Christmas, ran a story quoting research from headhunting firm Options Group, predicting that commodities job creation will be up 17% this year on last year. Despite a report on Bloomberg... Read more

Commodities are hot, and risk is an increasingly pressing issue. Little surprise, therefore, that people combining the two disciplines are popular. “A lack of availability means there’s a premium on offer to commodities risk specialists,” says Jakob Bloch, managing director of UK-based search firm Commodity Appointments. “We’re seeing a big hiring push in London, Geneva and the Far East.” Barclays Capital, UBS, Citigroup and Credit Suisse are all expected to expand their commodities... Read more

Which banks and bankers are suffering the most? No prizes for guessing… ACUTE PAIN 1. Merrill Lynch Share price: down 44% since January 2007. Bonus per head*: $181.3k, down 25% on 2006. Net profit for the first nine months of 2007: $1.9bn, down 61%. Redundancies: none announced so far, but exit of chief exec Stan O’Neal is imminent. 2. Bear Stearns Share price: down 38% since January 2007. Bonus per head*: $407.6k, down 20% on 2006. Net... Read more

Spare a thought for the classes of 2007 and 2008. It seems investment banking jobs are proving hard to come by. A student at a leading European business school says banks are still coming to present on campus, but that with the exception of Credit Suisse, few appear to have any full-time places left for 2008: “Places have already been filled by last year’s summer interns. If you missed the boat... Read more

Most people sit around passively waiting for the pink slip. Has Stan O’Neal gone for pre-emptive action? Ever since Merrill revealed a $2.3bn 3Q net loss earlier this week, there have been calls for Stan to step aside. Now the New York Times says Stan’s head has moved closer to the block after he allegedly broached a merger with Charlotte-based Wachovia without first getting the approval of Merrill’s board. Putting aside the... Read more

Commodities hiring and pay have been hot for as long as we can remember. Looks like the future’s set to repeat the past. Bloomberg ran an article last week which suggested commodities hiring remains hotter than the fires of Hades and that several senior commodities types have used their sector’s popularity to inveigle their way into more senior positions. According to Bloomberg banks in the US have hired 450 commodities traders this... Read more

Rising taxes and falling returns are taking their toll on the co-investing craze. “The amended capital gains tax rules will impact people participating in company co-investment schemes that qualify for business taper relief,” says Chris Sanger, head of tax policy at Ernst & Young. “Assets disposed of before 6 April 2008 will be taxed at 10%, while those disposed of from 7 April 2008 will be taxed at 18%.” Co-investing is nothing... Read more

As the dollar falls, so does the allure of taking a job in the Middle East. Last week, the US dollar dropped to an all time low against the euro and three-month lows against the yen and sterling. With the US Federal Reserve expected to carry on cutting interest rates and the US economy suffering particularly painfully from the sub-prime crisis, the dollar's demise is expected to continue. What's good for transatlantic... Read more