why is deutsche bank stock falling

Complete Deutsche Bank AG stock information by Barron's. View real-time DB stock price and 19, 2021 at 9:41 a.m. ETWalmart Stock Fell After Earnings. listen)) is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock. I have no reason to doubt that DB's internal forecasts are grossly inaccurate on items such as deposit hedges falling away or the impact of.
why is deutsche bank stock falling

watch the video

What is Deutsche Bank? - CNBC Explains
why is deutsche bank stock falling

Why is deutsche bank stock falling -

European shares fell on Wednesday for the sixth straight session as disappointing results from Deutsche Bank and chipmaker STMicro offered little excuse for investors to return from the sidelines.

The pan-European Stoxx 600 index fell by 0.2 per cent to a fresh 22-month low

DUBLIN

The Iseq index in Dublin fell 0.2 per cent to 5,917.33, with banking stocks among the worst performers, in line with their peers across Europe as sector followers mulled weak Deutsche Bank figures and a sell-off among Italian lenders.

Bank of Ireland fell 1.9 per cent to €6.11, while AIB lost 1.4 per cent to €4.26 and Permanent TSB dipped 1.6 per cent to €1.93.

However, C&C rose by 2.1 per cent to €3.40, with Merrion Capital awarding the stock as a “buy” rating ahead of the group’s interim results on Thursday, saying it expected the drinks firm to report a 15 per cent increase in earnings per share.

Glenveagh rose 1.2 per cent to 85 cent and Cairn Homes added 1.3 per cent to €1.43 as investors took a view that the sector had been oversold in recent times.

LONDON

UK shares ended well off highs but still managed to recover from the previous day’s seven-month lows, as a stronger US dollar boosted consumer goods makers.

The Ftse 100 was up just 0.1 per cent at the close after rising 1.3 per cent at one point during the session.

“The main problem is that overall sentiment is very negative,” said Markus Huber, trader at City of London Markets. “There is too much uncertainty out there in regard to a Brexit deal, possible trade wars, Italian budget, Turkey, disappointing earnings, Fed tightening too aggressively, just to name a few.”

Among the biggest gainers on the Ftse 100 were multinationals with less exposure to sterling, with Diageo and Reckitt Benckiser, up 0.7 per cent and 2.2 per cent, respectively.

The pound eased to seven-week lows ahead of UK prime minister Theresa May’s address to restive Conservative Party lawmakers on her Brexit strategy later in the day.

Luxury goods maker Burberry, up 0.1 per cent, was supported by a positive third-quarter report and rosy outlook on China, the world’s second-largest economy, from French luxury goods company and owner of the Gucci brand Kering.

A broadly confident outlook helped Barclays Bank rise 2.9 per cent.

EUROPE

Germany’s Dax ended the day down 0.7 per cent while Italy’s Ftse MIB fell 1.7 per cent, with Italian banks down 3.3 per cent as bonds sold off further.

The banking sector, overall the worst-performing in Europe so far this year, lost 1.4 per cent with Deutsche Bank shares down 4.8 per cent after a steep decline in third-quarter profit.

The tech sector slid 1.9 per cent with Franco-Italian chipmaker STMicroelectronics down 10.2 per cent after its third-quarter update slightly missed expectations.

Orion jumped 9.7 per cent after a study showing a prostate cancer drug it is jointly developing with Bayer can delay the spread of the disease to other parts of the body.

NEW YORK

US stocks dropped in early afternoon trading as weak results from AT&T and sour outlook from chipmakers ahead of key earnings added to growing worries about corporate profit growth and overshadowed optimism from Boeing’s raised forecast.

The Dow Jones Industrial Average fell 1 per cent, to 24,932.62, the S&P 500 lost 1.2 per cent and the Nasdaq Composite 1.7 per cent.

Chipmakers, already struggling with oversupply and reliant on China for a significant portion of profit, dropped after Texas Instruments forecast weak current quarter and STMicro signalled slowing demand in China.

AT&T tumbled after the US wireless carrier’s quarterly profit rose less than expected, held back by its declining satellite TV business.

Boeing rose after the plane maker raised its full-year expectations.

United Parcel Service dropped after the company said changing US trade policies weighed on international results. – Additional reporting: Reuters.

Источник: https://www.irishtimes.com/business/markets/european-shares-pulled-down-for-sixth-straight-session-1.3674464

Germany CRISIS: Deutsche bank shares plummet to record levels – worse than 2008 crash

Coronavirus: Social distancing will help the NHS says expert

Sign up to receive our rundown of the day's top storiesdirect to your inbox

Invalid email

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Following the rise in coronavirus cases worldwide, share prices in Germany’s Deutsche Bank dropped close to four euros. In the early stages of market trading this morning, the prices in the bank fell to a low of €4.45. The low cost of the price would represent levels not even seen during the 2008 financial crisis.

At its lowest, the share price of the multinational bank dropped to €12.69 during the financial crisis in 2008.

At the time of writing, Deutsche Bank shares stood at just €4.96, as global markets feel the hit of the global pandemic.

The coronavirus also caused US stock market shares to plummet as the Dow Jones fell by 9.7 percent while the S&P fell by eight on Monday morning

Due to the drop on the Dow Jones - its lowest level in three years - trading was halted for 15 minutes this morning.

Coronavirus: Coronavirus causes Deutsche Bank share drop (Image: GETTY)
Coronavirus: Deutsche Bank shared dropped to €4.45 (Image: London)

In order to help stabilise against the continued fall in trading, the Federal Reserve cut interest rates.

The US central bank said: “The coronavirus outbreak has harmed communities and disrupted economic activity in many countries.

“The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses.”

In Germany, there are 6,672 cases with a further 14 deaths from the contagion at the time of writing. 

JUST IN: Coronavirus: Incredible reason behind couple kissing in face masks

Coronavirus: The price was not even seen during the 2008 financial crisis (Image: GETTY)

In order to try and stop the spread, Germany closed its borders to Austria, France and Switzerland on Monday morning.

The country’s foreign minister, Heiko Mass also advised members of the public against non-essential travel.

He said: “We currently advise against nonessential travel abroad.”

European Commission President, Ursula von der Leyen also proposed a possible 30-day travel ban on non-essential travel.

DON'T MISS
Coronavirus flights: Norwegian to cancel 85 percent of flights  [Latest]
Coronavirus symptoms: COVID-19 spreads BEFORE symptoms show - study [Latest]
House prices: Will UK property values drop as a result of coronavirus? [Latest]

Coronavirus: The bank currently stands at €4.96 (Image: GETTY)
Coronavirus: Ursula von der Leyen made the announcement today (Image: GETTY)

Although a travel ban would be in place, she also stated the need to keep internal borders in place.

She said today: “The less travel, the more we can contain the virus.

“Essential staff such as doctors, nurses, care workers, researchers and experts that help address the coronavirus should continue to be allowed in the EU.

Coronavirus Map Live (Image: Express)

“People transporting goods are exempted too. Why that?

“Because the flow of goods to the European Union must continue to secure the supply of goods, including essential items such as medicine, but also food and components that our factories need.”

Coronavirus: Boris Johnson advisd against non-essential contact (Image: GETTY)

Italy has enforced a nation-wide lockdown as the country registers 24,747 cases of the contagion.

There have been 1,809 deaths and is the worst-hit country outside of China.

Источник: https://www.express.co.uk/news/world/1255976/coronavirus-update-Germany-crisis-Deutsche-bank-drop-stock-market-crash-2008

Deutsche Bank: The Fall of a Giant

The European banking system has been in a bit of a crisis in the last few years. Major European banks have not recovered from the low valuations that they received during the 2008-09 banking crisis in the United States. American banks seem to have recovered from the shock and are close to their previous valuations. However, the valuations of European banks have been down by as much as 70%. Major German banks such as Deutsche Bank and Commerzbank are the ones that have been hit the worst. At the present moment, the market capitalization of Deutsche Bank is a mere 15% of what it was during its peak. The case with Commerzbank is also the same. Deutsche Bank is a German institution which is considered to be systemically important by many. Its existence goes to about 150 years in the past, and the bank has never faced an existential crisis like it is facing now.

The Scale Of Deutsche Bank’s Operations

The problem with European banks is that they have very large balance sheets and exposure to a lot of risky assets. European banks in total hold about 31 trillion euros in debt. This sum is close to three times the GDP of Europe. The problem is that it is a known fact that these banks are carrying over 900 billion in bad loans on their books. This amount is greater than 30% of the market capitalization of these banks.

This is also the case with Deutsche Bank. This balance sheet of Deutsche bank accounts for more than 45% of the German GDP. This is a dangerous situation to be in from a risk mitigation point of view. Since Deutsche bank is so large in size, the government will not have an option but to bail out the bank. If Deutsche Bank is in crisis, it means the entire German economy is in crisis.

The Reasons Behind Deutsche Bank’s Poor Performance

European banks have been performing very poorly in general. Deutsche Bank is a perfect case in point for the malaise that has spread through the system.

  • Firstly, Deutsche bank has a problem earning money from its conventional sources. This is because the interest rates in Europe are near zero. As a result, the net interest margin is not very high. This is because corporates can borrow money from the bond market directly at rock bottom prices
  • This has spurred banks like Deutsche bank to get heavily involved in derivatives. Deutsche Bank has a very large and opaque exposure to derivatives trading. A lot of these transactions have reflected in the past profit and loss statements as losses. This is the reason why investors are wary about buying Deutsche bank stock since the real extent of derivatives exposure is not really known.
  • Deutsche Bank has been making highly leveraged investments. The Basel -3 norms stipulate that banks must have a leverage ratio of at least 3%. The Deutsche Bank leverage ratio is below that. This means that Deutsche bank does not comply with global norms. Also, the leverage ratio present in Deutsche bank is comparable to what was present in Bear Sterns when the bank got wiped out by an adverse market movement. Since then, the Americans seemed to have learned their lesson. American regulators have stipulated a 5% leverage ratio, which is much higher than the Basel norms. It is high time that the German regulators prevented a systemically important institution from making leveraged bets.

Why Bailing Out Deutsche Bank Will Be Difficult?

  • Germany has been preaching about the demerits of bailouts to other countries. In such a scenario, bailing out Deutsche bank will make Germany look hypocritical, and it will be a major blow to German leadership. Angela Merkel has personally criticized other European leaders for using taxpayer money to bailout private banks. Now, it seems like Angela Merkel will have no option but to bail out the failing Deutsche bank. However, both Merkel and the German parliament will try to avoid such a bailout as long as they can. This is because such a bailout is against the German principles
  • Private shareholders will not be willing to purchase the equity shares of Deutsche Bank. This is because the bank is so highly leveraged that any capital infused into the system will benefit the creditors and depositors. Equity shares, on the other hand, are at the risk of losing their entire investment. This is called “debt overhang.” It is a situation in which excessive debt that a company already has prevents it from raising any more equity.

The root cause of the entire situation is the lack of action taken by the European regulators. American banks were facing the same problems. However, after the 2008 crisis, the American regulators forced banks to raise more equity by raising the capital requirements. On the other hand, the European regulator listened to the bankers and eased the capital requirement norms. The end result of the situation is clearly visible. American banks are now on a sound footing whereas German behemoths like Deutsche bank face a risk of total collapse.

The bottom line is that bailouts do not make an economic system stable. Instead, it is a reasonably high capital requirement which leads to long-term stability of financial institutions like Deutsche Bank.



Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.


Источник: https://www.managementstudyguide.com/deutsche-bank-the-fall-of-a-giant.htm

Deutsche Bank tumbles on a disappointing quarterly loss after the 'necessary evil' spending on a massive overhaul

  • The bank posted €315 million in costs on "severance and transformation-related charges," which dragged on the bank's third-quarter earnings.
  • "The most significant driver" of the sales decline, the bank said in the statement, was "our strategic decision to exit equities sales and trading."
  • "Bond trading is about all it has left in investment banking," said one analyst. Sales in that unit plunged 13%. 
  • The shares plunged 4.8%. 
  • Watch Deutsche Bank trade live.
  • View Business Insider's homepage for more stories.

Deutsche Bank CEO Christian Sewing called it the "most comprehensive restructuring of our bank in two decades."

The costs of that overhaul — €315 million in spending on "severance and transformation-related charges" — dragged on the bank's third-quarter earnings. The shares tumbled 4.8%.   

Net revenues were €5.3 billion in the quarter, a 15% drop. 

"The loss is in large part due to restructuring costs that are the necessary evil of trying to get the bank back to profitability," said Neil Wilson at Markets.com. "Restructuring takes time, of course, and may be more expensive than analysts think, but Deutsche has had a decade and several attempts at this already. And the decline in revenues can't be masked."

The bank on Wednesday posted a net loss of €832 million ($924.83 million) due to "strategic adjustments."

"The most significant driver" of the sales decline, the bank said in the statement, was "our strategic decision to exit equities sales and trading."

"Bond trading is about all it has left in investment banking," Wilson said. Sales in that unit plunged 13%. 

Deutsche's rivals on Wall Street have been able to boast about their fixed-income trading units, with JPMorgan reporting a 25% increase in revenue in its FICC division. 

In July, the bank said it will axe 18,000 jobs as part of a major restructuring. Deutsche said at the time it would be cutting its stock sales and trading unit as part of its plan to rid itself of the more volatile divisions.

Some executives won millions in "golden parachute" payments, with the bank spending €52 million on payouts to executives. 

db
Markets Insider
Источник: https://www.insider.com/deutsche-bank-stock-price-shares-fall-on-q3-earnings-restructuring-2019-10

Twitter shares jump following report CEO Dorsey has stepped down 

Twitter Inc (NYSE:TWTR) chief executive officer Jack Dorsey is expected to step down from his role, according to sources cited by CNBC. 

Shares jumped 5.5% at the time of publication following the rumours.  

Dorsey co-founded the popular social media platform in 2006, before being booted out as chief executive two years later. 

His other co-founders cited his inability to solve persistent outage issues and his tendency to leave work early for fashion shows as reasons for his dismissal.  He became CEO once again in 2015. 

The 45-year-old entrepreneur also currently serves as the chief executive officer of Square, his digital payments company. 

Elliot Management, the American investment management firm and a 4% stakeholder in Twitter, attempted to replace Dorsey because of his level of involvement with Square, before it reached a deal with the company’s management. 

The reasons for Dorsey’s rumoured resignation are currently unclear.  

Any successor, however, will have to Twitters demanding internal goals to meet.  

Earlier this year, the company said it aims to have 315mln monetisable daily active users in the next 48 months and to at least double its US$3.7bn annual revenue by the end of 2023. 

View company profile

Источник: https://www.proactiveinvestors.co.uk/companies/news/967613/twitter-shares-jump-following-report-ceo-dorsey-has-stepped-down-967613.html

Tesla’s (TSLA) stock down sharply following Q2 delivery miss, Deutsche Bank adjusts for a loss [Note]

tesla montreal

Today is the first trading day for Tesla’s (TSLA) stock after the automaker released its second quarter production and delivery results – missing its goals for both. The automaker confirmed missing its delivery guidance of 17,000 vehicles in Q2 with only 14,370 vehicles, while also missing its production guidance of 20,000 vehicles with only 18,345 vehicles.

The stock price fell sharply (over 4%) in pre-market. Now the first Wall Street analysts are commenting and adjusting their earnings prediction to account for the new information released by Tesla.

Deutsche Bank’s Rod Lache is among the firsts to send a note to clients. He maintains his hold rating on the stock with price target of $290 per share, but he adjusted his 2016 estimate to a loss of $0.42 from a profit of $0.09.

In the note, he commented on the implications on Tesla’s production based on talks with suppliers:

“That said, suppliers continue to suggest Tesla has had difficulty maintaining steady production of Model X, with some estimating “up time” is as low as 50%. This is highly unusual for an automaker… so we are not sure whether Tesla has overcome production challenges.

We are adjusting our 2016 estimate to a loss of $0.42 from a profit of $0.09 to reflect the adjustment to Tesla’s Q2 delivery forecast.

At a high level, while we are modestly disappointed by the number, we are not shocked. This is not the first time Tesla has missed an aggressive target. Tesla has admitted to over-reaching on the complex design of Model X, and they are paying the price. Aggressive plans (for expansion, production, vertical integration, new markets, and features such as Autopilot) are part of Tesla’s DNA.

Somewhat encouragingly, there are reasons to believe execution of the next phase of automotive growth should be achievable.

We currently see at least 3 significant drivers for the stock: 1) Increasing visibility into TSLA’s business plan; 2) Re-focusing Tesla’s strategy on execution of this plan (most investors, and we suspect most Tesla customers, have not yet signed up to all aspects of management’s plans for a broadly defined sustainable energy company); and 3) Achieving execution milestones (i.e. production, cash flow).”

As usual, we recommend taking analyst notes with a grain of salt. They are often successful in moving the stock price, but you always need to take things into perspective. In this case, Rod Lache is ranked #138 out of 4,010 analysts on Tip Ranks with a 67% success rate and an average return of +15.6%.

FTC: We use income earning auto affiliate links.More.


Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.

Источник: https://electrek.co/2016/07/05/tsla-tesla-q2-delivery-stock-down-deutsche-bank/
Deutsche Bank's fall from grace: how one of the world's largest lenders got into hot water

Deutsche Bank CEO Christian Sewing set out a cost-cutting plan in less than a month of taking the role, with the aim of trimming down the bank’s operations and restoring it to profitability 

On July 8, 2019, thousands of Deutsche Bank employees across the globe arrived at their offices, unaware that they would be leaving again, jobless, just a few hours later. In Tokyo, entire teams of equity traders were dismissed on the spot, while some London staff were reportedly told they had until 11am to leave the bank’s Great Winchester Street offices before their access cards stopped working.

The job cuts, which totalled 18,000, or around 20 percent of Deutsche Bank’s workforce, were the flagship element of a restructuring plan designed to save the ailing German lender. Wall Street’s top market observers have described the initiative as ambitious and radical, but it remains to be seen whether it will be enough to save the bank, which has come under intense scrutiny for dubious business practices in the wake of the 2008 financial crisis.

Chequered past
Deutsche Bank was founded in 1870 to promote Germany’s standing within the global trade market. It was the country’s first foray into international banking; prior to its establishment, German companies had to rely on British and French lenders to do business overseas, meaning they were often subject to unfavourable terms. Deutsche Bank opened its first branch in Bremen in 1871 but expanded rapidly into Asia and Europe, opening a Shanghai branch in 1872 and a London outpost the following year.

Its early growth was stalled in 1914 by the commencement of the First World War, in which the lender lost the majority of its foreign assets. It recovered quickly by pursuing a series of significant mergers, one of which, with German lender Disconto-Gesellschaft, allowed it to avoid the worst of the 1929 crash. Deutsche Bank’s role in the Second World War, however, is the source of much controversy: according to its own historians, the bank was involved in 363 confiscations of Jewish-owned businesses between 1933, when Adolf Hitler came to power, and 1938. It also loaned funds to the German Government to allow it to build the Auschwitz concentration camp, according to The New York Times.

The bank’s connection with Trump has come under intense scrutiny since his election, initially due to the investigation led by Robert Mueller into Trump’s relationship with Russia

At the end of the war, Deutsche Bank did not slink off quietly into the shadows as many businesses that had been involved with the Nazi Party did. Rather, “it [became] a leading force for the reconstruction, redevelopment and reunification of Europe”, The New York Times’ David Enrich noted. After several decades, however, the bank changed tack and began to go after the sort of riches and prowess that had, until this point, been concentrated on Wall Street. Its ploy bore fruit in the late 1990s when its $10.1bn acquisition of US investment bank Bankers Trust made it the fourth-largest financial management firm in the world. Buoyed by this success, in 2001, the German lender debuted on the New York Stock Exchange, positioning itself to take advantage of the astronomical rise of the US stock market in the mid-2000s.

Scandal upon scandal
In the aftermath of the 2008 crash, however, Deutsche Bank’s success began to unravel. It had been one of the largest purveyors of junk bonds, selling about $32bn worth of collateralised debt between 2004 and 2008, but its traders were also betting against that market in order to line their own pockets. Greg Lippmann, Deutsche’s former head of asset-backed securities trading, even referred to some bonds as “crap” and “pigs” in emails to colleagues, all the while promoting them to investors as A-grade.

The implication of this profiteering came home to roost in January 2014, when the bank was forced to pay a $1.93bn settlement to the US Federal Housing Finance Agency for its sale of subprime-mortgage-backed securities to now-defunct government agencies Fannie Mae and Freddie Mac. The sum broke the back of its profit margins; that quarter, it reported a $1.6bn pre-tax loss, heralding a loss-making era for the lender.

Since that time, the losses and lawsuits have come thick and fast. In April 2015, the bank paid a combined $2.5bn in fines to US and UK regulators for its role in the LIBOR-fixing scandal. Just six months later, it was forced to pay an additional $258m to regulators in New York after it was caught trading with Myanmar, Libya, Sudan, Iran and Syria, all of which were subject to US sanctions at the time. These two fines, combined with challenging market conditions, led the bank to post a €6.7bn ($7.39bn) net loss for 2015. Two years later, it paid a further $425m to the New York regulator to settle claims that it had laundered $10bn in Russian funds.

Questions have also been raised over Deutsche Bank’s relationship with US President Donald Trump and disgraced financier Jeffrey Epstein. The bank’s relationship with Trump dates back to the 1990s when it was attempting to get a foot in the door on Wall Street; having a high-profile property mogul like Trump on the bank’s books allowed it to chase after bigger and better clients. “Serving Donald Trump as a client was one way that Deutsche elbowed its way onto the world stage,” said Russ Mould, Investment Director at AJ Bell. The bank financed almost three decades’ worth of Trump’s deals and continued to lend to him despite multiple loan defaults until as late as 2016.

The bank’s connection with Trump has come under intense scrutiny since his election, initially due to the investigation led by Robert Mueller into Trump’s relationship with Russia, and latterly in relation to Trump’s tax returns, which the lender has so far refused to release despite being subject to a congressional subpoena. With regards to Epstein, Deutsche reportedly managed his finances long after his 2008 conviction for soliciting underage sex and only terminated its association with him in May this year, according to The Boston Globe.

Divisive vision
It was in the midst of this furore that, in April 2018, Deutsche Bank veteran Christian Sewing took up the role of CEO. In his typical pragmatic fashion, Sewing had set out a comprehensive cost-cutting plan in less than a month, aiming to trim down the bank’s operations and restore it to profitability. In a memo at the end of his first month in the job, he told staff: “It is our imperative to take tough decisions… We have to regain our credibility.”

July’s job cuts are the toughest measure to be introduced by Sewing yet, and signal to the market that he is prepared to ruffle feathers internally to achieve wider organisational goals. In a conference call to the media on the morning of the redundancies, the CEO highlighted the bank’s main errors as over-expansion, ill-thought-out capital allocation to failing corners of the business, and ignorance with regard to costs. His restructuring plan aims to tackle all of those aspects by trimming staff costs, spinning off underperforming divisions into a €50bn ($55.3bn) bad bank, and scaling back the organisation’s global network.

It certainly impressed Wall Street’s finest. JPMorgan Chase wrote in a memo: “[Deutsche Bank’s] restructuring, in our view, is bold and for the first time not half-baked but a real strategic shift giving up its Tier 1 [investment bank] ambitions. [Deutsche Bank] is rightsizing to where it came from originally.” UBS, meanwhile, commented that the plan shows a real willingness to change, writing in a note: “Progress over the coming quarters could then further increase the market confidence in the plan.”

However, the plan’s success is by no means guaranteed. Shares have fallen since the redundancies were announced as the implications of the high-risk, multi-year strategy began to sink in for investors. At the time of printing, Deutsche Bank’s shares were hovering around €7.64 ($8.48), a dramatic decline from the €32 ($35.31) highs seen in 2015 and a long way off the lender’s pre-crisis peak of €112 ($123.60).

But the greatest threat to progress is the money-laundering allegations that are currently swirling around the lender. These first emerged in November last year in connection with the Danske Bank scandal; the same month, Deutsche’s Frankfurt offices were raided as police searched for documents connecting the two lenders. The investigation is ongoing.

“The money-laundering accusations are a serious matter from a reputational, operational and financial point of view,” Mould told World Finance. “Regulators are clamping down hard and, after fines for sanctions busting, misselling toxic mortgage-backed securities, rigging LIBOR and money laundering over the past decade, investors will not be pleased if Deutsche has to pay further hefty penalties.”

Sewing is not ignorant of this possibility. In that regard, July’s restructuring is a shrewd move, as slimming the organisation will limit the damage if the money-laundering investigation does not go the bank’s way. It has also provided the opportunity to rid the bank of senior figures whose unscrupulous, profit-hungry attitude was instrumental in its fall from grace.

Источник: https://www.worldfinance.com/banking/deutsche-banks-fall-from-grace-how-one-of-the-worlds-largest-lenders-got-into-hot-water
why is deutsche bank stock falling

Tesla’s (TSLA) stock down sharply following Q2 delivery miss, Deutsche Bank adjusts for a loss [Note]

tesla montreal

Today is the first trading day for Tesla’s (TSLA) stock after the automaker released its second quarter production and delivery results – missing its goals for both. The automaker confirmed missing its delivery guidance of 17,000 vehicles in Q2 with only 14,370 vehicles, while also missing its production guidance of 20,000 vehicles with only 18,345 vehicles.

The stock price fell sharply (over 4%) in pre-market. Now the first Wall Street analysts are commenting and adjusting their earnings prediction to account for the new information released by Tesla.

Deutsche Bank’s Rod Lache is among the firsts to send a note to clients. He maintains his hold rating on the stock with price target of $290 per share, but he adjusted his 2016 estimate to a loss of $0.42 from a profit of $0.09.

In the note, he commented on the implications on Tesla’s production based on talks with suppliers:

“That said, suppliers continue to suggest Tesla has had difficulty maintaining steady production of Model X, with some estimating “up time” is as low as 50%. This is highly unusual for an automaker… so we are not sure whether Tesla has overcome production challenges.

We are adjusting our 2016 estimate to a loss of $0.42 from a profit of $0.09 to reflect the adjustment to Tesla’s Q2 delivery forecast.

At a high level, while we are modestly disappointed by the number, we are not shocked. This is not the first time Tesla has missed an aggressive target. Tesla has admitted to over-reaching on the complex design of Model X, and they are paying the price. Aggressive plans (for expansion, production, vertical integration, new markets, and features such as Autopilot) liberty casino mobile login part of Tesla’s DNA.

Somewhat encouragingly, there are reasons to believe execution of the next phase of automotive growth should be achievable.

We currently see at least 3 significant drivers for the stock: 1) Increasing visibility into TSLA’s business plan; 2) Re-focusing Tesla’s strategy on execution of this plan (most investors, and we suspect most Tesla customers, have not yet signed up to all aspects of management’s plans for a broadly defined sustainable energy company); and 3) Achieving execution milestones (i.e. production, cash flow).”

As usual, we recommend taking analyst notes with a grain of salt. They are often successful in moving the stock price, but you always need to take things into perspective. In this case, Rod Lache is ranked #138 out of 4,010 analysts on Tip Ranks with a 67% success rate and an average return of +15.6%.

FTC: We use income earning auto affiliate links.More.


Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.

Источник: https://electrek.co/2016/07/05/tsla-tesla-q2-delivery-stock-down-deutsche-bank/
Deutsche Bank's fall from grace: how one of the world's largest lenders got into hot water

Deutsche Bank CEO Christian Sewing set out a cost-cutting plan in less than a month of taking the role, with the aim of trimming down the bank’s operations and restoring it to profitability 

On July 8, 2019, thousands of Deutsche Bank employees across the globe arrived at their offices, unaware that they would be leaving again, jobless, just a few hours later. In Tokyo, entire teams of equity traders were dismissed on the spot, while some London staff were reportedly told they had until 11am to leave the bank’s Great Winchester Street offices before their access cards stopped working.

The job cuts, which totalled 18,000, or around 20 percent of Deutsche Bank’s workforce, were the flagship element of a restructuring plan designed to save the ailing German lender. Wall Street’s top market observers have described the initiative as ambitious and radical, but it remains to be seen whether it will be enough to save the bank, which has come under intense scrutiny for dubious business practices in the wake of the 2008 financial crisis.

Chequered past
Deutsche Bank was founded in 1870 to promote Germany’s standing within the global trade market. It was the country’s first foray into international banking; prior to its establishment, German companies had to rely on British and French lenders to do business overseas, meaning they were often subject to unfavourable terms. Deutsche Bank opened its first branch in Bremen in 1871 but expanded rapidly into Asia and Europe, opening a Shanghai branch in 1872 and a London outpost the following year.

Its early growth was stalled in 1914 by the commencement of the First World War, in which the lender lost the majority of its foreign assets. It recovered quickly by pursuing a series of significant mergers, one of which, with German lender Disconto-Gesellschaft, allowed it to avoid the worst of the 1929 crash. Deutsche Bank’s role in the Second World War, however, is the source of much controversy: according to its own historians, the bank was involved in 363 confiscations of Jewish-owned businesses between 1933, when Adolf Hitler came to power, and 1938. It also loaned funds to the German Government to allow it to build the Auschwitz concentration camp, according to The New York Times.

The bank’s connection with Trump has why is deutsche bank stock falling under intense scrutiny since his election, initially due to the investigation led by Robert Mueller into Trump’s relationship with Russia

At the end of the war, Deutsche Bank did not slink off quietly into the shadows as many businesses that had been involved with the Nazi Party did. Rather, “it [became] a leading force for the reconstruction, redevelopment and reunification of Europe”, The New York Times’ David Enrich noted. After several decades, however, the bank changed tack and began to go after the sort of riches and prowess that had, until this point, been concentrated on Wall Street. Its ploy bore fruit in the late 1990s when its $10.1bn acquisition of US investment bank Bankers Trust made it the fourth-largest financial management firm in the world. Buoyed by this success, in 2001, the German lender debuted on the New York Stock Exchange, positioning itself to take advantage of the astronomical rise of the US stock market in the mid-2000s.

Scandal upon scandal
In the aftermath of the 2008 crash, however, Deutsche Bank’s success began to unravel. It had been one of the largest purveyors of junk bonds, selling about $32bn worth of collateralised debt between 2004 and 2008, but its traders were also betting against that market in order to line their own pockets. Greg Lippmann, Deutsche’s former head of asset-backed securities trading, even referred to some bonds as “crap” and “pigs” in emails to colleagues, all the while promoting them to investors as A-grade.

The implication of this profiteering came home to roost in January 2014, when the bank was forced to pay a $1.93bn settlement to the US Federal Housing Finance Agency for its sale of subprime-mortgage-backed securities to now-defunct government agencies Fannie Mae and Freddie Mac. The sum broke the back of its profit margins; that quarter, it reported a $1.6bn pre-tax loss, heralding a loss-making era for the lender.

Since that time, the losses and lawsuits have come thick and fast. In April 2015, the bank paid a combined $2.5bn in fines to US and UK regulators for its role in the LIBOR-fixing scandal. Just six months later, it was forced to pay an additional $258m to regulators in New York after why is deutsche bank stock falling was caught trading with Myanmar, Libya, Sudan, Iran and Syria, all of which were subject to US sanctions at the time. These two fines, combined with challenging market conditions, led the bank to post a €6.7bn ($7.39bn) net loss for 2015. Two years later, it paid a further $425m to the New York regulator to settle claims that it had laundered $10bn in Russian funds.

Questions have also been raised over Deutsche Bank’s relationship with US President Donald Trump and disgraced financier Jeffrey Epstein. The bank’s relationship with Trump dates back to the 1990s when it was attempting to get a foot in the door why is deutsche bank stock falling Wall Street; having a high-profile property mogul like Trump on the bank’s books allowed it to chase after bigger and better clients. “Serving Donald Trump as a client was one way that Deutsche elbowed its way onto the world stage,” said Russ Mould, Investment Director at AJ Bell. The bank financed almost three decades’ worth of Trump’s deals and continued to lend to him despite multiple loan defaults until as late as 2016.

The bank’s connection with Trump has come under intense scrutiny since his election, initially due to the investigation led by Robert Mueller into Trump’s relationship with Russia, and latterly in relation to Trump’s tax returns, which the lender has so far refused to release despite being subject to a congressional subpoena. With regards to Epstein, Deutsche reportedly managed his finances long after his 2008 conviction for soliciting underage sex and only terminated its association with him in May this year, according to The Boston Globe.

Divisive vision
It was in the midst of this furore that, in April 2018, Deutsche Bank veteran Christian Sewing took up the role of CEO. In his typical pragmatic fashion, Sewing had set out a comprehensive cost-cutting plan in less than a month, aiming to trim down the bank’s operations and restore it to profitability. In a memo at the end of his first month in the job, he told staff: why is deutsche bank stock falling is our imperative to take tough decisions… We have to regain our credibility.”

July’s job cuts are the toughest measure to be introduced by Sewing yet, and signal to the market that he is prepared to ruffle feathers internally to achieve wider organisational goals. In a conference call to the media on the morning of the redundancies, the CEO highlighted the bank’s main errors as over-expansion, ill-thought-out capital allocation to failing corners of the business, and ignorance with regard to costs. His restructuring plan aims to tackle all of those aspects by trimming staff costs, spinning off underperforming divisions into a €50bn ($55.3bn) bad bank, and scaling back the organisation’s global network.

It certainly impressed Wall Street’s finest. JPMorgan Chase wrote in a memo: “[Deutsche Bank’s] restructuring, in our view, is bold and for the first time not half-baked but a real strategic shift giving up its Tier 1 [investment bank] ambitions. [Deutsche Bank] is rightsizing to where it came from originally.” UBS, meanwhile, commented that the plan shows a real willingness to change, writing in a note: “Progress over the coming quarters could then further increase the market confidence in the plan.”

However, the plan’s success is by no means guaranteed. Shares have fallen since the redundancies were announced as the implications of the high-risk, multi-year strategy began to sink in for investors. At the time of printing, Deutsche Bank’s shares were hovering around €7.64 ($8.48), a dramatic decline from the €32 ($35.31) highs seen in 2015 and a long way off the lender’s pre-crisis peak of €112 ($123.60).

But the greatest threat to progress is the money-laundering allegations that are currently swirling around the lender. These first emerged in November last year in connection with the Danske Bank scandal; the same month, Deutsche’s Frankfurt offices were raided as police searched for documents connecting the two lenders. The investigation is ongoing.

“The money-laundering accusations are a serious matter from a reputational, operational and financial point of view,” Mould told World Finance. “Regulators are clamping down hard and, after fines for sanctions busting, misselling toxic mortgage-backed securities, rigging LIBOR and money laundering over the past decade, investors will not be pleased if Deutsche has to pay further hefty penalties.”

Sewing is not ignorant of this possibility. In that regard, July’s restructuring is a shrewd move, as slimming the organisation will limit the why is deutsche bank stock falling if the money-laundering investigation does not go the bank’s way. It has also provided the opportunity to rid the bank of senior figures whose unscrupulous, profit-hungry attitude was instrumental in its fall from grace.

Источник: https://www.worldfinance.com/banking/deutsche-banks-fall-from-grace-how-one-of-the-worlds-largest-lenders-got-into-hot-water

Banks to investors: We're safe


NEW YORK — In an effort to quiet doubts about its financial health, German lender Deutsche Bank said it would buy back $5.4 billion in debt — sending the battered stock soaring.

Across the ocean in New York, JPMorgan investors sent the bank's stock higher on news that CEO Jamie Dimon purchased 500,000 shares in a show of support for the lender, which had suffered a 20% stock drop this year.

The purchase cost Dimon $26.6 million, or roughly his entire earnings, in cash and stock, last year.

The moves to bolster confidence come amid fears that looming economic pressures, which have sent oil prices plummeting, could crimp banks' profits and eat away at their capital buffers. Banks from Berlin to New York have been clobbered this year — with stocks down more than a third in some cases.

"In this kind of environment, we are looking at can banks make money?" said Fred Cannon, director of research at Keefe Bruyette and Woods.

Just the threat of increased financial strain could force U.S. banks to pull back on their dividends and other capital spending programs if it leads to failed government stress tests, Cannon said. European banks, meanwhile, could be forced to put their hands out for money from investors, which will lower returns for current investors, he said.

In an emailed statement, JPMorgan confirmed Dimon's massive stock purchase, which was first reported by The Wall Street Journal. Shares of JPMorgan rose more than 8% to $57.49 on Friday. The stock is still down 13% this year, however.

Deutsche Bank's New York-listed stock shot up 12% to $17.38 a share. The shares, which were down 33% this year as of Thursday, are still below levels hit during the darkest days of the financial crisis, however.

Leading up to the debt announcement, fears around Deutsche Bank's ability to repay its debts had sent the cost of insurance to protect against default skyrocketing. In an effort to quell those fears, Deutsche Bank on Friday said its "strong liquidity position" will allow it to acquire $3.4 billion of its European unsecured debt and $2 billion of its U.S. debt.

The tender offer will be extended for seven business days for the Europe debt and 20 business days for the U.S. debt.

European banks have been hit harder than U.S. banks due to added pressures like negative interest rates.

On Thursday, Federal Reserve chief Janet Yellen said negative interest rates in the U.S. aren't off the table — a prospect that could benefit the larger economy but hinder U.S. bank's earnings on loans.

JPMorgan boosted profits to record levels last year due in large part to aggressive cost cutting. But as cost cutting opportunities wane, investors want to see signs that profits will rise on revenue growth.

Follow USA TODAY reporter Kaja Whitehouse on Twitter @kajawhitehouse

FacebookTwitterEmail

Источник: https://www.usatoday.com/story/money/2016/02/12/deutsche-bank-debt-offer/80278968/

Germany CRISIS: Deutsche bank shares plummet to record levels – worse than 2008 crash

Coronavirus: Social distancing will help the NHS says expert

Sign up to receive our rundown of the day's top storiesdirect to your inbox

Invalid email

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Following the rise in coronavirus cases worldwide, share prices in Germany’s Deutsche Bank dropped close to four euros. In the early stages of market trading this morning, the prices in the bank fell to a low of €4.45. The low cost of the price would represent levels not even seen during the 2008 financial crisis.

At its lowest, the share price of the multinational bank dropped to €12.69 during the financial crisis in 2008.

At the time of writing, Deutsche Bank shares stood at just €4.96, as global markets feel the hit of the global pandemic.

The coronavirus also caused US stock market shares to plummet as the Dow Jones fell by 9.7 percent while the S&P fell by eight on Monday morning

Due to the drop on the Dow Jones - its lowest level in three years - trading was halted for 15 minutes this morning.

Coronavirus: Coronavirus causes Deutsche Bank share drop (Image: GETTY)
Coronavirus: Deutsche Bank shared dropped to €4.45 (Image: London)

In order to help stabilise against the continued fall in trading, the Federal Reserve cut interest rates.

The US central bank said: “The coronavirus outbreak has harmed communities and disrupted economic activity in many countries.

“The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses.”

In Germany, there are 6,672 cases with a further 14 deaths from the contagion at the time of writing. 

JUST IN: Coronavirus: Incredible reason behind couple kissing in face masks

Coronavirus: The price was not even seen why is deutsche bank stock falling the 2008 financial crisis (Image: GETTY)

In order to try and stop the spread, Germany closed its borders to Austria, France and Switzerland on Monday morning.

The country’s foreign minister, Heiko Mass also advised members of the public against non-essential travel.

He said: “We currently advise against nonessential travel abroad.”

European Commission President, Ursula von der Leyen also proposed a possible 30-day travel ban on non-essential travel.

DON'T MISS
Coronavirus flights: Norwegian to cancel 85 percent of flights  [Latest]
Coronavirus symptoms: COVID-19 spreads BEFORE symptoms show - study [Latest]
House prices: Will UK property values drop as a result of coronavirus? [Latest]

Coronavirus: The bank currently stands at €4.96 (Image: GETTY)
Coronavirus: Ursula von der Leyen made the announcement today (Image: GETTY)

Although a travel ban would be in place, she also stated the need to keep internal borders in place.

She said today: “The less travel, the more we can contain the virus.

“Essential staff such as doctors, nurses, care workers, researchers and experts that help address the coronavirus should continue to be allowed in the EU.

Coronavirus Map Live (Image: Express)

“People transporting why is deutsche bank stock falling are exempted too. Why that?

“Because the flow of goods to the European Union must continue to secure the supply of goods, including essential items such as medicine, but also food and components that our factories need.”

Coronavirus: Boris Johnson advisd against non-essential contact (Image: GETTY)

Italy has enforced a nation-wide lockdown as the country registers 24,747 cases of the contagion.

There have been 1,809 deaths and is the worst-hit country outside of China.

Источник: https://www.express.co.uk/news/world/1255976/coronavirus-update-Germany-crisis-Deutsche-bank-drop-stock-market-crash-2008

Deutsche Bank is in the news for all the wrong reasons. Some speculators believe that it will be the 2008 Lehman Brothers collapse all over again. Shares in the bank were briefly driven down to single digits. They seem to have stabilised around €10 but this remains well below the €30 just over a year ago and €100 a share in 2007. And the bank’s future is uncertain.

Clearly investors are worried and there is an absence of people who believe even €10 would be a sensible investment. At €10 per share, an investor has a right to €48 of equity. But the problem is whether that €10 will ever be returned to you – let alone with gains. Like many other banks though, Deutsche Bank faces a number of headwinds, which have knocked its profits in recent years.

Three structural issues

New regulation since the financial crisis requires that banks must accumulate their profits to create a greater cushion against the risks that became apparent in 2008. This means that the profits that Deutsche will earn over the next few years will be used to increase the size of that cushion rather than being returned to shareholders. Relief is unlikely, as the IMF has identified Deutsche as “the most important net contributor to systemic risks in the global financial system”.

Large well-established banks have a second problem. They have become fat with too many employees juggling outdated, disparate and often dysfunctional IT systems. Deutsche has more than 100,000 employees. Its retail branches – a number of which have been cut this year – are labour intensive and add to these problems.

Dealing with this problem requires reinvesting some of its profits in restructuring its activities – which again means less money for shareholders in the short-run. Failure to do so, however, will create opportunities for new entrants to the banking market such as alternative finance and new fintech operations.

The European Central Bank’s negative interest rate policy is compounding problems. Historically, banks benefited from retail depositor inertia – depositors that park their money in accounts and don’t act upon earning little or no interest. A healthy deposit base ensured a source of zero or low-cost funds that could be lent elsewhere. But the benefit of depositor inertia disappears when interest rates go negative as it costs money to service these customers with extensive retail networks. Imposing user fees is unpopular with customers.

Crisis catalyst and management

These structural issues are well known. The catalyst for the recent action is a US$14 billion fine from the US Department of Justice for mis-selling mortgage bonds a decade ago. Deutsche is looking to negotiate a smaller figure, but if the $14 billion fine sticks the bank could need to raise another €9 billion of equity. At current prices, hapless investors would need to subscribe an additional 60% of their investment to simply hang on to the share of future profits that they expected to receive prior to the fine.

While Deutsche talks confidently of lowering its fine, it is unlikely to attract buyers for its stock. Meanwhile, speculators betting on a decrease in the share price are pushing an open door. Plus, given the dysfunctional nature of eurozone financial regulation, the high political costs of German government intervention and risk of signalling that larger eurozone members play by a different set of rules – the German government will be slow to intervene.

Adding to this complexity, the fine from the US government comes just days after the US$13 billion fine the EU hit Apple with, making some suspicious that there is an element of revenge at play. True or not, the uncertain outcome during the lengthy appeals process will only increase the perceived risks of an investment in Deutsche Bank.

From the sidelines, one would be sympathetic to the CEO’s statement that Deutsche is a strong bank that is being targeted by “forces that want to weaken us”. The bank has assets of more than €1.8 trillion and equity of €67 billion.

As a large, complex entity, it is easy for outsiders to speculate that the bank may be weak, further eroding investor and customer confidence in both the bank and European bank regulation. Friendship state bank near me coming days will largely determine whether the negative feedback loop between confidence and the stock price can be broken. At worst, the outcome will be significant economic and political difficulties in the coming weeks. At best, it may create a sense of urgency within the eurozone to comprehensively address the banking sector issues that have festered for the past eight years.

Источник: https://theconversation.com/why-deutsche-bank-stock-fell-so-far-66353

Deutsche Bank: The Fall of a Giant

The European banking system has been in a bit of a crisis in the last few years. Major European banks have not recovered from the low valuations that they received during the 2008-09 banking crisis in the United States. American banks seem to have recovered from the shock and are close to their previous valuations. However, the valuations of European banks have been down by as much as 70%. Major German banks such as Deutsche Bank and Commerzbank are the ones that have been hit the worst. At the present moment, the market capitalization of Deutsche Why is deutsche bank stock falling is a mere 15% of what it was during its peak. The case with Commerzbank is also the same. Deutsche Bank is a German institution which is considered to be systemically important by many. Its existence goes to about 150 years in the past, and the bank has never faced an existential crisis like it is facing now.

The Scale Of Deutsche Bank’s Operations

The problem with European banks is that they have very large balance sheets and exposure to a lot of risky assets. European banks in total hold about 31 trillion euros in debt. This sum is close to three times the GDP of Europe. The problem is that it is a known fact that these banks are carrying over 900 billion in bad loans on their books. This amount is greater than 30% of the market capitalization of these banks.

This is also the case with Deutsche Bank. This balance sheet of Deutsche bank accounts for more than 45% of the German GDP. This is a dangerous situation to be in from a risk mitigation point of view. Since Deutsche bank is so large in size, the government will not have an option but to bail out the bank. If Deutsche Bank is in crisis, it means the entire German economy is in crisis.

The Reasons Behind Deutsche Bank’s Poor Performance

European banks have been performing very poorly in general. Deutsche Bank is a perfect case in point for the malaise that has spread through the system.

  • Firstly, Deutsche bank has a problem earning money from its conventional sources. This is because the interest rates in Europe are near zero. As a result, the net interest margin is not very high. This is because corporates can borrow money from the bond market directly at rock bottom prices
  • This has spurred banks like Deutsche bank to get heavily involved in derivatives. Deutsche Bank has a very large and opaque exposure to why is deutsche bank stock falling trading. A lot of these transactions have reflected in the past profit and loss statements as losses. This is the reason why investors are wary about buying Deutsche bank stock since the real extent of derivatives exposure is not really known.
  • Deutsche Bank has been making highly leveraged investments. The Basel -3 norms stipulate that banks must have a leverage ratio of at least 3%. The Deutsche Bank leverage ratio is below that. This means that Deutsche bank does not comply with global norms. Also, the leverage ratio present in Deutsche bank is comparable to what was present in Bear Sterns when the bank got wiped out by an adverse market movement. Since then, the Americans seemed to have learned their lesson. American regulators have stipulated a 5% leverage ratio, which is much higher than the Basel norms. It is high time that the German regulators prevented a systemically important institution from making leveraged bets.

Why Bailing Out Deutsche Bank Will Be Difficult?

  • Germany has been preaching about the demerits of bailouts to other countries. In such a scenario, bailing out Deutsche bank will make Germany look hypocritical, and it will be a major blow to German leadership. Angela Merkel has personally criticized other European leaders for using taxpayer money to bailout private banks. Now, it seems like Angela Merkel will have no option but to bail out the failing Deutsche bank. However, both Merkel and the German parliament will try to avoid such a bailout as long as they can. This is because such a bailout is against the German principles
  • Private shareholders will not be willing to purchase the equity shares of Deutsche Bank. This is because the bank is so highly leveraged that any capital infused into the why is deutsche bank stock falling will benefit the creditors and depositors. Equity shares, on the other hand, are at the risk of losing their entire investment. This is called “debt overhang.” It is a situation in which excessive debt that a company already has prevents it from raising any more equity.

The root cause of the entire situation is the lack of action taken by the European regulators. American banks were facing the same problems. However, after the 2008 crisis, the American regulators forced banks to raise more equity by raising the capital requirements. On the other hand, the European regulator listened to the bankers and eased the capital requirement norms. The end result of the situation is clearly visible. American banks are now on a sound footing whereas German behemoths like Deutsche bank face a risk of total collapse.

The bottom line is that bailouts do not make an economic system stable. Instead, it is a reasonably high capital requirement which leads to long-term stability of financial institutions like Deutsche Bank.



Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.


Источник: https://www.managementstudyguide.com/deutsche-bank-the-fall-of-a-giant.htm

By Dhirendra Tripathi

Investing.com – Deutsche Bank (DE:DBKGn) stock (NYSE:DB) fell 5.5% on Nasdaq in Wednesday’s premarket trading as revenue from trading in fixed income securities and currencies fell 12% in the third quarter.

Revenue from fixed income business has fallen at other global banks too after last year’s boom but it exposed once more the vulnerability of the German lender, dependent on the business for more than a quarter of its revenue.

The fall in fixed income trading revenue at Deutsche compares with an average decline of 13% at the five biggest U.S. investment banks, according to Bloomberg.

Chief Executive Officer Christian Sewing, tasked with turning around the bank more than 3 years ago, has relied on strong growth in fixed income so far to achieve the objective.

Fee revenue from advising on deals and fund-raising activities rose 22% as achieve financial credit union meriden markets boomed and corporates went for M&As and restructuring. However, it remained a bystander to the boom in equities trading at its Wall Street rivals, having quit the business two years ago.

Revenue growth at corporate banking was mostly flat while it fell in the retail division.

Spain’s Banco Santander (NYSE:SAN) also fell on Wednesday, declining 2%, even as it said it would “significantly” beat its profit target for this year. Growth at rival lenders UBS (NYSE:UBS) and Barclays (NYSE:BCS) had fuelled optimism about the sector and bank share prices had recently gained.

Net revenue in the third quarter rose 2% to 6 billion euro (around $7 billion) and group net income was higher by 6% to 329 million euros.

Related Articles

Deutsche Bank Falls; Trading Income Takes a Hit

GM upbeat on full-year results despite impact of chip shortage

Boeing posts second straight quarterly profit on 737 MAX boost

Источник: https://finance.yahoo.com/news/deutsche-bank-falls-trading-income-080235749.html

5 Replies to “Why is deutsche bank stock falling”

  1. Please tell for mbbs study from Russia can i get loan easily or i am eligible please reply sir

  2. I use PNC bank because they have many location where I live. I also use my local Federal credit union. The only online bank I would recommend is USAA if you are in the military. They also have excellent car insurance.

Leave a Reply

Your email address will not be published. Required fields are marked *