Sweden's biggest bank says cost cuts to hit 1,000 employees

S v e n s k a Handelsbanken unveiled cost cuts that will affect about 1,000 employees at Sweden's biggest bank.

The Stockholm- based lender plans to almost halve its branch network, which has long been a hallmark of its business model, according to a statement on Wednesday. At the same time, management will invest about one billion kronor ( S$ 154.8 million) in technology, it said.

"These changes will help us to lower our costs," Handelsbanken said. Overall, the measures are expected to result in a decline of one billion kronor in the bank's income, it said.

"The downsizing of the workforce will affect around 1,000 employees in Sweden over the next two years, not including the measures announced in autumn 2019," the bank said. "Negotiations and consultations are being initiated immediately with the relevant trade unions."

Tokyo shares opened lower on Wednesday as investors shied away from major moves ahead of a Federal Reserve decision, and with Prime Minister Shinzo Abe's successor take office.

The benchmark Nikkei 225 index fell 0.10 percent, or 23.73 points, to 23,431.16 while the broader Topix index lost 0.18 percent, or 2.91 points, to 1,637.93.

"The Tokyo market is expected to stay within a narrow range," Okasan Online Securities said in a note.

"It is difficult to expect active buying ahead of FOMC, so the Nikkei average will likely remain stuck in the current band," it said, referring to the Fed committee.

The global market is focused on Wednesday's conclusion of the twoday Fed meeting. Fed Chair Jay Powell is expected to again signal near- zero interest rates for the foreseeable future.

Analysts are also watching for further details on the bank's new inflation targeting strategy and comments from Powell on the outlook for economic recovery.

The Bank of Japan will also kick off its twoday policy board meeting on Wednesday. Governor Haruhiko Kuroda is scheduled to hold a press conference on Thursday.

The relative weak

preparing

to ness of the dollar was putting further weight on the Tokyo market. The US currency stood at 105.27 yen in Tokyo, compared with 105.45 yen in New York.

Looking further ahead, Tokyo investors are assessing the likely economic policies of Yoshihide Suga, who is expected to replace Abe officially in the afternoon as the new prime minister.

Suga, who has long served as Abe's righthand man, is coming to the office with pledges to continue his predecessor's programmes, especially his economic agenda.

Among major shares in Tokyo, SoftBank Group surged 3.36 percent to 6,622 yen as it moves to sell chip designer Arm to NVIDIA for up to $ 40 billion.

Japanese electronics parts maker Murata Manufacturing rose 0.47 percent to 6,646.

Automaker Honda dropped 2.87 percent to 2,622 yen. Japan Airlines fell 1.27 percent to 2,178 yen. Toyota was off 0.21 percent to 7,051 yen.

Engineering firm Hitachi lost 1.94 percent to 3,695 yen amid reports that it planned to withdraw from a proposed UK nuclear power project.