Tullett boss sees no end to eurozone turmoil

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The Independent Online

Financial markets will remain highly volatile for parts of 2012 as the eurozone crisis continues to hit sentiment, Terry Smith, chief executive of the broking giant Tullett Prebon, said yesterday.

"Nobody has done anything fundamental to solve the eurozone crisis," he said. "I agree with the Governor of the Bank of England, Sir Mervyn King, that this cannot be solved by either austerity measures or extra liquidity. This is a crisis of solvency and competitiveness."

Tullett is cutting 160 jobs, half of them in London, to make savings of £18m a year to respond to periods of lower trading volumes, lower margins and increasing costs from extra regulation. The cuts will fall equally between brokers and backroom staff.

Profits last year fell by9 per cent to £136m onflat revenues of £910m. The dividend for the year rises by 5 per cent to 16.5p .

"Market and competitive conditions are expected to continue to be challenging," Mr Smith said.