Reuters reports that Fidelity Investments, the world's largest mutual fund firm, has said that its total client assets have risen 2% to $1.92 trillion as at the end of June, compared to the same period last year.

The Financial Times reports that Macquarie CEO Nicholas Moore has warned that his bank is finding the climate 'increasing challenging'. According to the newspaper, Moore said Wednesday that 'the markets have not gotten any easier.....(although) Macquarie's businesses are performing relatively well, despite market conditions deteriorating since last year'.

CNBC reports that Jefferies Group has reported a $4.4m loss in its second-quarter (compared to a $67.8m profit in the same period last year), after lower investment banking revenues and $15m in severance costs paid out in the period. CEO Richard Handler said: 'In the face of a market environment that continues to be challenging, Jefferies achieved significantly improved financial results in the second quarter. Our firm remains in a strong financial and market position with excess liquidity, a solid business base, and a platform positioned to perform as conditions improve'.

The Financial Times reports that Royal Bank of Scotland is being sued by hedge fund Merebis Capital Management for reversing a $394m investment in the fund originally made by ABN Amro. Merebis, which was set-up by four former ABN traders, claims it is due a $35m penalty fee for the early-withdrawal of the investment.

Reuters reports that Charles Schwab has stepped down for the second time in 6 years as CEO of the discount brokerage firm that bears his name. Schwab, 70, will be replaced by COO Walter Bettinger, but will stay on as chairman.

Finally, The Wall Street Journal reports that Wachovia posted a massive $8.66bn second-quarter loss after $6.1bn in writedowns and revenues fell 14%. Chairman Lanty Smith said: 'These bottom-line results are disappointing and unacceptable. While to some degree they reflect industry headwinds and weaker macroeconomic conditions, they also reflect performance for which we at Wachovia accept responsibility'.

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