Italy's UniCredit to cut 5,000 jobs

Italian bank UniCredit is to axe 5,000 staff while preparing a 7.5bn euro (£6.4bn) rights issue in an attempt to dig it out of trouble.

The bank reported a 10.6bn euro loss in the three months to September, triggered by debt writedowns in the Eurozone.

UniCredit holds 38bn euros of Italian government bonds and its shares have halved in value since January.

Its London trading operation will close as part of the cost-cutting plans, with the loss of 150 jobs.

The bank has also ditched its annual dividend and needs to raise 9.4bn euros to meet the new cash reserves rules set by the European Banking Authority.