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Technology deal doldrums give bankers the job-hopping itch

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When a senior Goldman Sachs technology banker delivered a grim prediction to his colleagues earlier this year, it marked the beginning of downturn that would result in some bankers leaving.

Mergers and acquisitions among technology companies could be down as much as 80% in 2023, Sam Britton, one of the leaders of Goldman’s global technology, media and telecommunications group, wrote in an internal memo in February, as an economic slowdown and a hostile anti-trust environment weighed on dealmaking appetite.

Britton tried to boost morale, arguing that market conditions could change quickly, according to sources who described the contents of the memo. But the plunge in the deal pipeline prompted soul-searching and job-hopping among investment bankers accustomed to a feast.

In the months that followed, a number of top technology bankers have left firms such as Goldman, Bank of America and Barclays, often for smaller peers such as Moelis & Co, Qatalyst Partners, Evercore, and Jefferies Financial Group, according to interviews with more than a dozen bankers and previous Reuters reporting.

The latter lured the bankers by promising a bigger payout for their deals, often guaranteeing minimum compensation of millions of dollars for two years, those interviewed said. They added that it was unusual for so many senior bankers to jump ship in the space of a few weeks.

A Barclays spokesperson said the bank was confident in its plan to break into the top five investment banks. Representatives of the other banks either declined to comment or did not respond to requests for comment.

Technology was the top sector for mergers and acquisitions for eight consecutive quarters until the second quarter of 2022, when a bout of inflation forced central banks to raise interest rates, weighing on tech stock valuations.

Global deal volumes in the technology sector have dropped by more than half so far this year, according to data from LSEG Deals Intelligence.

Investment bankers and headhunters say the talent flight could change the competitive position of many banks when technology firms decide to embark on big deals again.

“When the pay is less, bankers feel less committed to the bank they are at. The cost of opportunity to switch is less,” said Anthony Keizner, managing partner at executive search firm Odyssey Search Partners.

Goldman has lost several high-ranking technology bankers this year, including Nick Pomponi, former co-head of global software investment banking who left for Evercore, Rob Chisholm, a partner who moved to Qatalyst, and Troy Broderick, who was named chief operating officer of Goldman’s M&A business in May only to leave for Perella Weinberg Partners.

Barclays, which has struggled to retain bankers following a shake-up in the management of its investment banking division, has lost at least nine top technology bankers in recent weeks. They include Laurence Braham, its former global chair of investment banking, and Richard Hardegree, its head of technology M&A, who both moved to UBS, and Steve Markovich, its former global co-head of software investment banking, who left for Centerview.

Ron Eliasek, one of the software industry’s top investment bankers, left his post as global chairman of technology, media, and telecommunications at Bank of America earlier this month to join Jefferies.

In a big bet on technology dealmaking, Moelis & Co hired 46 technology bankers from SVB Securities, the investment banking arm of failed Silicon Valley Bank, including Jason Auerbach who led the team, a Moelis executive told an industry conference last week.

PAY GUARANTEES

In making the switch, many bankers forfeit the resources of big banks that can help win clients, such as top brokerage coverage and a balance sheet to fund deals, in exchange for a bigger cut of the fees from the deals they put together.

Traditionally, smaller firms have been reluctant to offer investment bankers guaranteed compensation, in order to have more of their pay tied to performance. Yet some are now offering guaranteed pay of between $2 million and $12 million over the first two years to poach top talent, the bankers interviewed by Reuters said.

Alan Johnson, managing director of compensation consultancy Johnson Associates, said that first-year guarantees were common practice in the hiring of investment bankers, but second-year guarantee used to be rare.

He added that bankers who leave big banks for smaller firms are signing up for a bigger slice of a smaller pie, so clinching these two-year guarantees eases the pressure on them to help grow the pie as soon as they join.

“You get paid a higher percentage of revenue than in a big bank, but you have to generate the revenue with perhaps less help,” Johnson said.

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Romanians vote in presidential election focused on high living costs, Ukraine war

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By Luiza Ilie

BUCHAREST (Reuters) -Romanians started voting on Sunday in the first round of a presidential election that may give hard-right politician George Simion a chance of winning, with voters focused on high living costs and the country’s support for Ukraine.

Opinion surveys show leftist Prime Minister Marcel Ciolacu, 56, leader of Romania’s largest party, the Social Democrats, will make it into the run-off vote on Dec. 8, with Simion, 38, of the Alliance for Uniting Romanians the likely runner-up.

About 3.7 million Romanians, or 20.7% of registered voters in the European Union and NATO state, had cast their ballots across the country by 1045 GMT, data showed. Voting ends at 1900 GMT with exit polls to follow immediately.

Voting by Romanians abroad, who can influence the result and where the hard right leader is popular, began on Friday.

Analysts expect Ciolacu to win the second round against Simion, appealing to moderates and touting his experience running Romania during a war next door.

But the prospect of a Ciolacu-Simion run-off vote could mobilise centre-right voters in favour of Elena Lasconi, leader of opposition Save Romania Union, ranked third in opinion surveys, analysts said.

Simion has cast the election as a choice between an entrenched political class beholden to foreign interests in Brussels and himself, an outsider who will defend Romania’s economy and sovereignty.

He opposes military aid to Ukraine and supports a peace plan as envisioned by U.S. President-elect Donald Trump, whom he admires, and would support a government that emulates that of Italy’s Giorgia Meloni.

“We want peace, the war must end so we stop being afraid,” 76-year-old Valentin Ion said after voting in Bucharest.

“Politicians must be more understanding and give money to the needy.”

Romania has the EU’s largest share of people at risk of poverty. Ciolacu’s coalition government of his Social Democrats (PSD) and centre-right Liberals has raised the minimum wage and increased pensions twice this year, but high budget spending has swollen deficits and kept inflation high.

“I am taking my parents and my children to go vote for PSD, it is the best party, Marcel Ciolacu gave us so much,” said Vasile Popa, 46.

Since Russia attacked Ukraine in 2022, Romania has enabled the export of millions of tons of grain through its Black Sea port of Constanta and provided military aid, including the donation of a Patriot air defence battery.

FAMILY VALUES

“The outcome is still very difficult to predict due to the high concentration of candidates and the splitting of the centre-right vote,” said Sergiu Miscoiu, a political science professor at Babes-Bolyai University.

Most candidates, he said, have campaigned on conservative messages such as protecting family values.

“Mainstream party candidates have a very catch-all message, on the one hand the nation, the army, religion and so on. On the other hand, we see a commitment to Europe, although it is seen more as a revenue source than an inspiration for values.”

© Reuters. A voter exits a voting booth, on the day of the first round of the presidential election in Bucharest, Romania, November 24, 2024. REUTERS/Andreea Campeanu

Outgoing two-term president Klaus Iohannis, 65, had cemented Romania’s strong pro-Western stance but was accused of not doing enough to fight corruption.

Romania’s president, limited to two five-year terms, has a semi-executive role which includes heading the armed forces.

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Israeli army orders Gaza City suburb evacuated, spurring new wave of displacement

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By Nidal al-Mughrabi

CAIRO (Reuters) -The Israeli military issued new evacuation orders to residents in areas of an eastern Gaza City suburb, setting off a new wave of displacement on Sunday, and a Gaza hospital director was injured in an Israeli drone attack, Palestinian medics said.

The new orders for the Shejaia suburb posted by the Israeli army spokesperson on X on Saturday night were blamed on Palestinian militants firing rockets from that heavily built-up district in the north of the Gaza Strip.

“For your safety, you must evacuate immediately to the south,” the military’s post said. The rocket volley on Saturday was claimed by Hamas’ armed wing, which said it had targeted an Israeli army base over the border.

Footage circulated on social and Palestinian media, which Reuters could not immediately verify, showed residents leaving Shejaia on donkey carts and rickshaws, with others, including children carrying backpacks, walking.

Families living in the targeted areas began fleeing their homes after nightfall on Saturday and into Sunday’s early hours, residents and Palestinian media said – the latest in multiple waves of displacement since the war began 13 months ago.

In central Gaza, health officials said at least 10 Palestinians were killed in Israeli airstrikes on the urban camps of Al-Maghazi and Al-Bureij since Saturday night.

Adding to the miseries of Gaza’s 2.3 million people, most of whom have been repeatedly displaced, heavy winter rain flooded hundreds of tents across the enclave, spoiling food and sweeping away plastic and cloth sheeting that had protected them against the elements.

“We ran in the middle of the night, the rainwater flooded the tent, the food is gone, the kids screamed and I am afraid they will get sick,” Rami, 37, a Gaza City man displaced at a former soccer stadium, told Reuters via a messaging app.

The Palestinian Civil Emergency Service said thousands of displaced people were impacted by the seasonal flooding and demanded new tents and caravans from aid donors to shield them.

HOSPITAL DIRECTOR WOUNDED BY GUNFIRE

In north Gaza, where Israeli forces have been operating against regrouping Hamas militants since early last month, health officials said an Israeli drone dropped bombs on Kamal Adwan Hospital, injuring its director Hussam Abu Safiya.

“This will not stop us from completing our humanitarian mission and we will continue to do this job at any cost,” Abu Safiya said in a video statement circulated by the health ministry on Sunday.

“We are being targeted daily. They targeted me a while ago but this will not deter us…,” he said from his hospital bed.

Israeli forces say armed militants use civilian buildings including housing blocks, hospitals and schools for operational cover. Hamas denies this, accusing Israeli forces of indiscriminately targeting populated areas.

Kamal Adwan is one of three hospitals in north Gaza that are barely operational as the health ministry said the Israeli forces have detained and expelled medical staff and prevented emergency medical, food and fuel supplies from reaching them.

In the past few weeks, Israel said it had facilitated the delivery of medical and fuel supplies and the transfer of patients from north Gaza hospitals in collaboration with international agencies such as the World Health Organization.

Residents in three embattled north Gaza towns – Jabalia, Beit Lahiya and Beit Hanoun – said Israeli forces had blown up hundreds of houses since renewing operations in an area that Israel said months ago had been cleared of militants.

Palestinians say Israel appears determined to depopulate the area permanently to create a buffer zone along the northern edge of Gaza, an accusation Israel denies.

© Reuters. Displaced Palestinian children stand near tents following rainfall, amid the Israel-Hamas conflict, in Gaza City November 24, 2024. REUTERS/Dawoud Abu Alkas

Israel’s campaign in Gaza has killed more than 44,000 people, uprooted nearly the entire population at least once, according to Gaza officials, while reducing wide swathes of the narrow coastal territory to rubble.

The war erupted in response to a cross-border attack by Hamas-led militants on Oct. 7, 2023 in which gunmen killed around 1,200 people and took more than 250 hostages back to Gaza, according to Israeli tallies.

(Reporting and writing by Nidal al-Mughrabi; editing by Mark Heinrich)

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Green activists in S. Korea demand tough action on plastic waste at UN talks

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By Minwoo Park and Daewoung Kim

BUSAN, South Korea (Reuters) – Hundreds of environmental campaigners marched on Saturday in the South Korean city of Busan to demand stronger global commitments to fight plastic waste at U.N. talks in the city next week.

About a thousand people, including members of indigenous groups, young people and informal waste collectors, took part in the rally, the organiser said, with some carrying banners saying “Cut plastic production” and “Drastic plastic reduction now!”.

The activists marched around the Busan Exhibition and Convention Centre, where the fifth session of the Intergovernmental Negotiating Committee (INC-5) will take place from Monday to discuss a legally binding global agreement on plastic pollution.

Debate is expected to focus on whether the deal should seek to slash production, while major producers such as Saudi Arabia and China have said in previous rounds that it should prioritise less contentious strategies, such as waste management.

“We are here with Greenpeace and our allies in the Break Free from Plastic movement to represent the millions of people around the world that are demanding that world leaders address plastic pollution by reducing the amount of plastic that we produce in the first place,” said Graham Forbes, global plastic campaign lead at Greenpeace.

People from different countries and of all ages took part in Saturday’s rally and some wore elaborate, decorated hats made from discarded plastic items.

“It looks like the Earth, and a living creature, because I wanted to say our living creatures are being affected by plastic pollution,” said Lee Kyoung-ah, 52, who was wearing a hat made of abandoned plastic buoy.

Lee Min-sung, 26, said he also hoped to see changes in everyday consumer habits.

© Reuters. Climate activists march on a street to demand stronger global commitments to fight plastic waste at the upcoming fifth session of the Intergovernmental Negotiating Committee (INC-5), in Busan, South Korea, November 23, 2024.   REUTERS/Minwoo Park

“I hope the culture of using ‘reusables’ becomes a cool, trendy movement, as that will reduce (waste) little by little,” said Lee, who brought his lunch from home in a glass container.

“I will pick up trash more often, whenever I have time, and throw away less to save the Earth,” said fourth-grader Kim Seo-yul, who flew from her home in Jeju Island to join the march.

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