In Corporate America . Tom im tom hudson. President obama tries to win over top business leaders, warning republicans are holding the Global Economy hostage over the fiscal cliff. Susie and apple shares get of the most widely owned stocks sees heavy trading. Tom that and more tonight on n. B. R. Susie big job cuts today at one of the nations biggest banks. Citigroup announced its slashing 4 of its staff; that works out to 11,000 jobs worldwide. The cuts will save the bank more than 1 billion a year in expenses. But they wont be cheap, resulting in a billiondollar charge against fourthquarter earnings. Is this gloomy news from citi the beginning of other companies doing the same . Suzanne pratt reports. Reporter 11,000 jobs are a lot of layoffs, even for a bank as huge as citi. And there could be more. Thats because the monster firm is still struggling to recover from the Great Recession even though it has fired a lot of other workers in the last few years. The thing is, citi has a new
Included. Now the return of apple to u. S. Manufacturing comes as shareholders have experienced a very rocky ride in the past few months. The stock is down 22 from its alltime high in september. Suzanne pratt reports. Rtses. Reporter a peak inside this Manhattan Apple store and it looks like everything is aokay. Plenty of customer, plenty of purchases. So why has the shine come off apples shares . With a in a word, actually two, profittaking. I think the biggest reason for the selling going back to when it was priced 700 in september is pure profittaking. If you look from the beginning year to september, the stock was up 74 . So i think you had some natural profittaking. Reporter but this isnt ode yearend selling by institutions looking to record nice numbers. This supposedly is fiscal cliff related selling as shareholders worries that Capital Gains tax rates will be higher next year. Still, Financial Planner sharon appleman says selling stock solely for tax reasons isnt the best idea.
Cutting staff. And the need to slim down is not unique to citi; its industry wide. A financial industry runs into huge problems. It happened in the 30s, and it happened in the last five years. When you go through these periods, you go through a lot of change. That industry is now trying to figure out what is the right size of the industry. Reporter still, economists say citis action today is not the start of a new ve aofls crfe america. The nations job market may not be robust, but its not frozen, either. In fact, today, the payroll firm a. D. P. Reported 118,000 new private sector jobs were added in november, fewer than in october. The blame for last months slowdown in hiring falls squarely on Hurricane Sandy, not on any new or widespread weakness in the economy. I would expect that by december, were going to see some bounce back. Much of the disruption from sandy was people simply not being able to get to work or firms not employing people that they ordinarily would have. Reporter fr
Than 1 billion a year in expenses. But they wont be cheap, resulting in a billiondollar charge against fourthquarter earnings. Is this gloomy news from citi the beginning of other companies doing the same . Suzanne pratt reports. Reporter 11,000 jobs are a lot of layoffs, even for a bank as huge as citi. And there could be more. Thats because the monster firm is still struggling to recover from the Great Recession even though it has fired a lot of other workers in the last few years. The thing is, citi has a new c. E. O. In michael corbat, and experts say hes anxious to make his mark, even if that includes cutting staff. And the need to slim down is not unique to citi; its industry wide. A financial industry runs into huge problems. It happened in the 30s, and it happened in the last five years. When you go through these periods, you go through a lot of change. That industry is now trying to figure out what is the right size of the industry. Reporter still, economists say citis action
Victory investment. Apple didnt say where in the u. S. The line of Mac Computers would be built or how many jobs might be included. Now the return of apple to u. S. Manufacturing comes as shareholders have experienced a very rocky ride in the past few months. The stock is down 22 from its alltime high in september. Suzanne pratt reports. Rtses. Reporter a peak inside this Manhattan Apple store and it looks like everything is aokay. Plenty of customer, plenty of purchases. So why has the shine come off apples shares . With a in a word, actually two, profittaking. I think the biggest reason for the selling going back to when it was priced 700 in september is pure profittaking. If you look from the beginning year to september, the stock was up 74 . So i think you had some natural profittaking. Reporter but this isnt ode yearend selling by institutions looking to record nice numbers. This supposedly is fiscal cliff related selling as shareholders worries that Capital Gains tax rates will b