Jane Fraser CEO, Citi, speaks at the 2023 Milken Institute Global Conference in Beverly Hills, California, U.S., May 1, 2023. REUTERS/Mike Blake Acquire Licensing Rights
Citigroup (C.N) will strip out a layer of management and cut jobs in a sweeping reorganization that will give CEO Jane Fraser more direct control as she seeks to simplify the Wall Street giant and boost its stock.
The heads of the bank's five divisions will report directly to the CEO, and the bank will also cut regional leadership roles outside North America. Job cuts are expected, but the number and financial impact are still unclear.
"We have taken hard, consequential, tough decisions here," Fraser told investors in New York on Wednesday. "They are not going to be universally popular within our bank. It's going to make some of our people very uncomfortable. I am absolutely fine with that ... It is absolutely the right thing to do for our shareholders."
Shares rose 1.7% after Chief Financial Officer Mark Mason said he was keeping the company's expense guidance unchanged for the year.
The sweeping reorganization is another step in Fraser's strategy to improve profits and streamline the bank since she took the helm in 2021. Although Citi has sold businesses and is working on fixing regulatory problems, its stock price has lagged peers.
The third-largest U.S. bank is still dealing with a 2020 consent order by regulators demanding it correct several "longstanding deficiencies" in its internal controls.
NEW DIVISION HEADS
Citi has named Shahmir Khaliq as head of the services unit, Andrew Morton in markets, Peter Babej for investment and corporate banking on an interim basis, Gonzalo Luchetti in U.S. consumer banking, and Andy Sieg in wealth when he joins the company later this month.
"Citi will cut out non-productive layers of management and reorganize with a flatter structure that will certainly create savings on the balance sheet," said Brian Mulberry, Client Portfolio Manager at Zacks Investment Management, who holds Citi shares.
The bank is looking to hire externally for the banking head. It will consolidate non-U.S. businesses under Ernesto Cantú, its new head of international. It eliminated management layers in what was known as its Institutional Clients Group, formerly its largest division, and Personal Banking and Wealth Management.
The changes have eliminated 35 committees, Fraser said, citing an example of efforts to reduce bureaucracy.
The reshuffle is likely to prompt departures, Fraser said in a memo to employees seen by Reuters. She will hold a town hall next week.
The new division heads will take decisions about the second and third layers of management, which are expected to be announced in November and January, according to three sources familiar with the matter who declined to be identified discussing personnel matters.
"All of this, at the end of the day, is increasing accountability in the organization," Fraser told investors.
LOW VALUATION
Although shares were rising on Wednesday, they are still valued at less than half of its book value, while competitors such as Wells Fargo (WFC.N) and Bank of America (BAC.N) are above 0.8, and JPMorgan Chase (JPM.N) at 1.4.
"Investors are only going to give Citigroup credit for hard numbers meeting their goals," said Eric Compton, banking analyst at Morningstar. "These changes seem fairly nuanced - all of the key players from 2022 are still in place."
Separately, CFO Mason said he expected the bank's trading revenue to climb by a percentage in the low single digits in the third quarter, while investment banking revenue will be flat or rise slightly.
Kementerian Kesehatan (Kemenkes) RI membuka ruang partisipasi publik untuk memberikan masukan kepada pemerintah seputar susunan aturan turunan Undang-Undang Nomor 17 Tahun 2023 tentang Kesehatan.
"Kami mengundang seluruh masyarakat untuk dapat memberikan segala aspirasinya terkait dengan pelaksanaan UU Kesehatan. Berbagai masukan yang diberikan sangat penting bagi penyusunan aturan turunan UU Kesehatan yang lebih komprehensif," kata Juru Bicara Kemenkes RI Mohammad Syahril dikonfirmasi di Jakarta, Kamis.
Usai disahkannya Rancangan Undang-Undangan Kesehatan menjadi Undang-Undang Kesehatan pada 11 Juli 2023, kata Syahril, kini pemerintah tengah bersiap untuk menyusun aturan turunan dari implementasi UU tersebut.
Ia memastikan bahwa proses penyusunan aturan akan dilakukan secara terbuka dan transparan dengan melibatkan partisipasi publik yang seluas-luasnya.
Guna menampung berbagai masukan dan aspirasi serta membuka ruang diskusi bersama dengan seluruh elemen masyarakat, Kementerian Kesehatan telah menyediakan saluran khusus yang bisa diakses di laman https://partisipasisehat.kemkes.go.id
Portal tersebut sudah biasa diakses masyarakat yang ingin memberikan masukan maupun usulan terkait proses penyusunan Rancangan Peraturan Pemerintah (RPP) implementasi dari UU Nomor 17 Tahun 2023 tentang Kesehatan.
Tak hanya membuka partisipasi publik, Kemenkes dalam waktu dekat juga akan melakukan sosialisasi dan konsultasi publik terhadap substansi RPP UU Kesehatan yang akan dilaksanakan secara daring melalui kanal YouTube Kementerian Kesehatan.
Jubir Syahril mengatakan penyerapan aspirasi dari seluruh pemangku kepentingan sangat penting untuk menampung berbagai masukan dan usulan yang sebelumnya belum terakomodasi dalam UU Kesehatan.
Ia berharap kesempatan ini dapat dimanfaatkan sebaik-baiknya untuk mewujudkan partisipasi publik yang bermakna (meaningful participation), sehingga hak publik untuk didengar, dipertimbangkan dan mendapatkan penjelasan dapat terfasilitasi dengan baik.
Kemenkes telah mendelegasikan aturan turunan dari UU Kesehatan Nomor 17 Tahun 2023 ke dalam 108 pasal untuk diatur ke dalam 101 pasal PP, dua pasal Peraturan Presiden (Perpres), dan lima pasal Peraturan Menteri Kesehatan (Permenkes).
Kim is visiting Russia amid heightened tensions on the Korean Peninsula, which has seen recurring missile launches by Pyongyang as well as military drills involving South Korean and US troops. On Wednesday, just ahead of the meeting with Putin, Seoul accused Pyongyang of yet another missile launch.
Russian President Vladimir Putin has welcomed North Korean leader Kim Jong-un to the Vostochny Cosmodrome in Russia’s Amur Region. A video shared by the Kremlin showed the two leaders shaking hands as they greeted one other on Wednesday.
Putin arrived at Vostochny following a two-day visit to the Eastern Economic Forum in Vladivostok. The North Korean leader traveled to the facility onboard his armored train after crossing into Russian territory on Tuesday morning.
“I’m very glad to see you,” Putin told his guest, noting that this year marks North Korea's 75th founding anniversary and 70 years since the Korean War armistice, as well as 75 years of diplomatic relations with Russia.
Kim thanked Putin for the invitation and a “very warm welcome,” according to videos of the leaders’ handshake shared by Russian media outlets.
Commenting on the agenda of the Russian-North Korean summit, Kremlin Press Secretary Dmitry Peskov said the upcoming talks are set to focus on a number of “sensitive issues,” as well as bilateral economic and cultural cooperation, and the overall situation in the region. The Kremlin spokesman said the negotiations would be held both with Russian and North Korean delegations present and in a one-on-one format.
Russian President Vladimir Putin has called talks with North Korean leader Kim Jong Un productive and frank.
"The beginning is good and very productive. There was a very frank exchange of views on the situation in the region and on bilateral relations," Putin said in an interview with the 60 Minutes program.
He noted at the same time that Moscow and Beijing "suffered great losses from the COVID-19 pandemic, when the DPRK was virtually closed to the outside world."
Putin emphasized that Russia and the DPRK now had "quite a few projects of interest."
"For instance, such things come to mind as transportation and logistics - meaning both railways and automobile roads, the reopening of the seaport, where a very good logistics triangle can be created: a railroad, a seaport, and a highway to China. Here it is possible to increase transportation volumes many times over, which is very important in general," Putin explained.
He added that he spoke with Kim Jong Un about the development of agriculture. In this regard Russia "has a great deal to offer."
"We provide humanitarian assistance to that country, but in addition to humanitarian aid, there is an opportunity to simply work together on an equal footing, and the prospects here are not bad at all," Putin said.
Kim Jong-un tours Russia’s Vostochny Cosmodrome
North Korean leader Kim Jong-un was given a tour of the Vostochny Cosmodrome on Wednesday as part of his state visit to Russia.
He was accompanied by Russian President Vladimir Putin, Nikolay Nestechuk, the recently appointed chief of ground infrastructure for the Russian space program, along with Roscosmos chief Yury Borisov and other senior officials from the host nation.
Footage of the visit showed Kim asking questions about the size and maximum engine thrust of the Angara rocket family, which Roscosmos is developing for Vostochny launches.
Nestechuk showed Kim a universal launch pad, which can accommodate a wide range of rockets, from light to super-heavy class. He pointed out that “everything here is Russian, from the rocket to the last bolt.”
North Korea has a robust rocket industry, which it is developing in defiance of international sanctions. It has attempted several space launches over the years, which Washington claimed to be ICBM tests in disguise. Pyongyang openly fires military rockets on a regular basis.
Road to summit
Reports about Kim Jong Un’s potential visit to Russia, which would be his first foreign trip since the outbreak of the pandemic, were brought up by the Western media in early September. On September 11, Moscow and Pyongyang confirmed that the North Korean leader would visit Russia, but did not specify on which date.
On September 12, Kim Jong Un arrived on his train in Russia’s Far Eastern Primorye Region. Russian Natural Resources Minister Alexander Kozlov, Russia’s co-chair of the intergovernmental commission, welcomed him at the train station in the border city of Khasan. Putin was already in Vladivostok, where he chaired a meeting on the development of Far Eastern cities and towns and delivered a speech at the plenary session of the Eastern Economic Forum.
At Vostochny Spaceport
On Wednesday, the Russian president traveled by plane from the Primorye Region to the Vostochny Spaceport, where he met with Maria Andreeva, a high school student from Rostov-on-Don. She was among a group of students that attended Putin’s open lesson "Talking About Important Things" on September 1, at which she told the president about her interest in space exploration, in particular her passion for satellites.
The North Korean leader arrived at the spaceport on his train, which pulled up at the launch vehicle assembly and test building. He made his way to the meeting with Putin in his Maybach limousine.
The two leaders shook hands and posed for a photo at the main entrance to the assembly and test building. Putin told Kim Jong Un about the Vostochny Spaceport, and the North Korean leader thanked him for the invitation to visit Russia "despite his busy schedule."
Putin and Kim Jong Un were shown around the shop assembling Angara launch vehicles.
"This is why we are visiting here (the Vostochny Spaceport - TASS). The North Korean leader has expressed a strong interest in rocket technology, and they (North Korea - TASS) are also seeking to develop space exploration capabilities," Putin told reporters.
Kim Jong Un made an entry in the book for honorable visitors, writing in Korean: "The glory of Russia as the country of first space explorers will never fade away."
One-on-one talks and talks involving delegations
The talks between the two countries’ delegations took place on the first floor of the engineering building of the unit designed for Soyuz-2 carrier rockets. They lasted for over an hour (in 2019 similar talks lasted for about three and a half hours.)
From Russia, four deputy prime ministers - Denis Manturov, Marat Khusnullin, Alexey Overchuk and Yury Trutnev - as well as Foreign Minister Sergey Lavrov, Transport Minister Vitaly Savelyev, Natural Resources Minister Alexander Kozlov, and Defense Minister Sergey Shoigu, who visited Pyongyang in late July, took park in the talks. From North Korea, the talks were attended by Foreign Minister Choe Son Hui and Defense Minister Kang Sun Nam, as well as by Marshal Pak Jong Chon, a member of the Central Committee of the Workers’ Party of Korea.
During that part of the meeting that was open to the press, which lasted less than ten minutes including time for interpretation, Putin recalled "the special time" during which the talks were being held as well as the assistance provided by the Soviet Union to the Koreans in their struggle for independence. The North Korean leader said in response that relations with Moscow are a top priority for Pyongyang and expressed confidence that the summit would help to elevate them to a new level. He stated that Russia had risen "to the sacred fight" for its sovereignty and security and voiced total support for the country’s authorities.
After the talks involving the delegations, Putin and Kim Jong Un held hour-long one-on-one talks (their previous face-to-face conversation lasted about two hours), although this was not announced beforehand, as Kremlin Spokesman Dmitry Peskov merely indicated that it would be possible if needed.
Among the issues discussed were bilateral cooperation, the situation in the region and beyond. In particular, Kim Jong Un pointed out that they touched upon "the military-political situation on the Korean Peninsula and in Europe." Peskov told TASS that no documents were expected to be signed after the talks.
Formal dinner
After the talks, a formal dinner was served in honor of Kim Jong Un with Kamchatka crab dumplings, white amur fish soup and taiga lingonberries with cedar nuts and condensed milk laid out on the table. Four years ago, Far Eastern delicacies and typical Russian cuisine, including crab salad, borsch and venison dumplings, were served.
The two leaders toasted each other. Putin raised his glass to the health of Kim Jong Un and the wellbeing and prosperity of the peoples of Russia and North Korea who are working for the sake of peace, stability and prosperity in the region. The DPRK’s leader said with confidence at the reception that the traditional friendly ties between Moscow and Pyongyang would evolve into "unbreakable relations of strategic cooperation," wished success in the special military operation and toasted to "the new victories of great Russia."
China’s foreign ministry spokesperson Mao Ning said on Wednesday that Beijing has noted possible “security incidents” in Apple’s iPhones but denied that a blanket ban on the purchase or use of the devices has been issued.
“China has not issued laws, regulations or policy documents that prohibit the purchase and use of foreign brand phones such as Apple’s,” Mao said at a press briefing in Beijing in response to reports that government employees had been asked to stop using devices manufactured by the US company.
Mao added that Beijing had noticed “a lot of media exposure of security incidents related to Apple’s phones. The Chinese government attaches great importance to information and cyber security and treats both domestic and foreign companies as equals.”
The government official did not elaborate on the nature of the alleged security issues but said that all mobile phone companies, including Apple, are required to abide by Chinese regulations and must “strengthen information security management.”
Reuters reported last week that staff in at least three Chinese government ministries had been told to stop using iPhones while at work. The news agency added that the extent to which the ban had been implemented remained unclear.
Apple’s shares dipped last week amid reports of the possible iPhone restriction in China – one of the brand’s most productive markets which is estimated to generate around one-fifth of its annual revenue. iPhone sales have surged in China recently, partly due to US sanctions which affected the locally produced Huawei mobile phone business.
Last year, the Biden administration banned the approval of new telecommunications equipment from Huawei for the US market, citing “an unacceptable risk” to national security. Reports have indicated US officials’ concerns over Huawei devices being used as a means to spy on US citizens.
China has repeatedly denied the claims. Speaking in January, Mao called Washington’s position on Huawei devices “an abuse of state power” and an “unreasonable suppression of Chinese companies.”
Apple, along with its various third-party suppliers, employs thousands of workers in China. In a visit to Beijing in March, CEO Tim Cook praised the country’s innovation and heralded China’s longstanding ties with the company.
However, reports have indicated that Apple has recently sought to reduce its supply-chain reliance in China due to simmering tensions between Beijing and Washington, and expand some of its manufacturing operations in India.
Ukraine lost more than 255 servicemen in the Donetsk direction over the day, the Russian Defense Ministry reported on Tuesday.
“Over the past 24 hours, up to 25 Ukrainian military personnel, three vehicles, and two US-made M777 artillery systems have been destroyed in this [Kupyask] direction. French-made TRF1 and D-20 howitzers, self-propelled artillery mount Gvozdika,” the ministry stated.
Over the given period, Russian forces repelled five attacks by Ukrainian troops in the Donetsk direction, three attacks in the Zaporozhye direction, and one attack in the Krasny Liman direction.
"The enemy lost over 255 servicemen, two infantry fighting vehicles, six vehicles, as well as a Gvozdika self-propelled artillery mount [in the Donetsk direction]," the ministry noted.
Kiev also lost up to 140 soldiers, three armored fighting vehicles and two vehicles in the South Donetsk direction, the ministry added.
As Ammo Dries Up, US Set to ‘Shift Blame’ for Ukraine Counteroffensive ‘Debacle’
With its 'counteroffensive' stagnating, Ukraine may have as little as a month’s worth of fighting weather left, Chairman of the US Joint Chiefs of Staff Mark Milley claimed in a UK state media interview on Sunday. However, the huge losses sustained by Kiev have not fazed the US and NATO, as they continue to send more military shipments to Ukraine.
The Kiev regime has sustained such losses in its counteroffensive attempt that “never should have taken place,” that “it could be about 30 days before the Ukrainian army would be completely out of ammunition and manpower,” Earl Rasmussen, a retired US Army lieutenant colonel, told Sputnik.
As for the looming change in the weather, it “will be so bad they [the Ukrainian military] won’t be able to move forward, and will become even more of a target for Russian artillery and defensive actions," the international consultant specializing in geopolitics and military affairs added.
“They're out of ammunition, the West is out of ammunition... They can't get supplies quickly enough. Not only does the weather play in the ‘30 days’, but they've got a lot of other conditions there, too,” the expert said.
'Suicide Mission'
“I can't see the Ukrainians doing much right now. There's no way that they can, even if they wanted to... even before the weather. I always said that this offensive was a suicide mission, and with the weather coming in, it would definitely be a suicide mission to try to advance at all," said Rasmussen.
The pundit was commenting on the recent forecast offered by the Pentagon General as to how much time Ukraine’s military had at its disposal until the mud and winter set in.
“There’s still a reasonable amount of time, probably about 30 to 45 days’ worth of fighting weather left, so the Ukrainians aren’t done, this battle’s not done. And they haven’t achieved – they haven’t finished the fighting part of what they’re trying to accomplish,” US Chairman of the Joint Chiefs of Staff Mark Milley said in a joint interview with UK Chief of Defense Staff Sir Tony Radakin for British state media on Sunday. Milley also assured that Ukraine was showing “very steady progress” and a “depth of combat power” on the front lines.
“We’ll get the cold as you mentioned. It’ll start uh, the rains will come in, it will become very muddy and it’s be very difficult to maneuver at that point, and then you’ll get to deep winter, and then at that point we’ll see where things go. But right now, it is way too early to say that this offensive is failed or not failed,” Milley said.
The West would like to see this offensive continue," Earl Rasmussen said, even if “realists are saying that this is not working out.” That is why we are witnessing the US ramp up aid even more.
"Right now, the indications are that the West is going to increase, kind of escalate more to some degree, or at least try to sustain the situation," he maintained.
US President Joe Biden has provided Kiev with $43.7 billion in military aid since Russia launched its special operation in Ukraine, as per the Kiel Institute for the World Economy. Just recently, the US announced a new $600 million security package for Ukraine to include munitions in addition to equipment augmenting air defenses.
There is talk about sending Ukraine longer-range missiles, such as the Army Tactical Missile Systems (ATACMS), there has been a scramble to try to get F-16 fighter jets that the Zelensky regime has been clamoring for, the pundit recalled. Kiev's American bosses might pressure the Ukrainians to continue with the offensive for another 30 days, and maybe even into the winter, Rasmussen added.
Trying to paint the stuttering counteroffensive in a 'better' light, the West has been engaging in rhetoric such as, "Oh, they broke through the first line of defense!", said the expert.
US officials estimate that up to half a million troops have been killed or wounded in Ukraine to date, with Russia's MoD calculating that Kiev lost over 43,000 troops during the summer counteroffensive alone.
Meanwhile, there is a feeling that there are “two different camps” taking shape “in the background,” Rasmussen added, pointing to the recent G20 summit in India.
“Despite what the West attempted to do, there is a pretty strong pushback. You saw no direct condemnation of Russia out of the G20 statement... Perhaps they saw their support weakening," the pundit said, adding that there is “pushback going on in Congress regarding continuous funding.”
The summit’s declaration demonstrated a “balanced position on the Ukraine conflict,” Russian G20 Sherpa Svetlana Lukash had stated, adding that half of the group's members refused to accept Western narratives. Western powers had failed to hijack the intergovernmental forum’s agenda to focus on the Ukraine crisis, Russian Foreign Minister Sergey Lavrov said at the two-day gathering.
In the US, a majority of people do not support the current policy of sending more money down the Ukraine sinkhole. Bearing in mind the looming 2024 presidential elections, the Biden administration is under pressure domestically from a chorus of voices urging that attention be instead focused on domestic issues.
“I think that we are finding that support is actually starting to dwindle and fragment behind the scenes,” Earl Rasmussen said.
Blame Game For Counteroffensive 'Debacle'
As for the West’s attempt to shift responsibility for the failure of the counteroffensive on Ukraine itself, it was to be expected, said Rasmussen.
Last month, reports started to surface that US strategists “advised Ukraine” to pump more troops to “punch through” Russian defenses and minefields, even if it cost large numbers of soldiers and equipment. Senior NATO military officials, including Pentagon Joint Chiefs Chairman Mark Milley, NATO Supreme Allied Commander in Europe Christopher Cavoli, and British Chief of Defense Staff Tony Radakin reportedly held a video call with Ukrainian command to push for a change in focus.
The US has been unabashedly saying that they had been working with the Ukrainians, “planning this offensive” for months, arming and training the military, said the expert. But we have now heard criticism from the West saying that “the Ukrainians are not courageous enough or basically aggressive enough in the offensive.”
“We've got an election season coming up here: people running for president. They need to shift the blame. They do not want to take the blame, so they'll point fingers: "We gave you everything you wanted, trained you… We're the ones driving the train behind the scenes. We've got military tech people there, we've got intelligence being provided, we've got the politicians probably in continual contact, he said.
Just recently, US Secretary of State Antony Blinken embarked on a two-day surprise visit to Ukraine, where he announced $175 million-$200 million in new US aid. Blinken also said that Washington had noticed "good progress" in Kiev’s counteroffensive. In effect, Ukraine’s much-heralded counteroffensive, which got underway on June 4, has made almost no gains against heavily entrenched, multilayered Russian defensive positions.
So, referring to the US-spearheaded Western patrons of the Kiev regime, Earl Rasmussen concluded:
“Are they trying to shift the blame? Absolutely. They do not want to take the blame for this debacle themselves.”
