|Bid||6.48 x 555100|
|Ask||6.48 x 230000|
|Day's range||6.42 - 6.65|
|52-week range||5.78 - 8.32|
|Beta (3Y monthly)||1.62|
|PE ratio (TTM)||N/A|
|Earnings date||30 Jan 2020|
|Forward dividend & yield||0.11 (1.69%)|
|1y target est||N/A|
* Asia shares fall slightly as trade deadline looms Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. With bookies giving a 75% chance of a Tory majority emerging from Thursday's election you would expect shares in British supermarkets to be looking a bit more forthcoming at the moment. "In the event of a Conservative majority government, we would expect sterling to rally", Colm Harney, a UK equity analyst at Sarasin & Partners says, adding that "as a result, large-cap UK domestically-focused names (like Tesco!) would benefit".
* Asia shares fall slightly as trade deadline looms Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Markets barely batted an eyelid at the UK economic data today.
* Asia shares fall slightly as trade deadline looms Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. ... and fulfil these two wishes for investors, so that they could have a happy and high holiday season. The calmness does make some investors nervous.
(Bloomberg Opinion) -- Christian Sewing has tried to cast an optimistic light on Deutsche Bank AG’s future as he undertakes the lender’s deepest restructuring in decades. The chief executive officer told staff he’d been looking forward to updating the market on his progress five months into the overhaul.The disclosures from that update, at the bank’s investor day on Tuesday, are more sobering: The skeptics are right to worry about Deutsche’s ability to increase its revenue while shrinking. Profit is also at risk.Sewing’s assumptions on interest rates when he unveiled his revamp in July were too bullish. The bank is now counting on a spike in revenue at its scaled-backed securities unit to hit its overall targets, another acknowledgement that things aren’t going to plan. His changes were meant to rein in the company’s dependence on volatile trading businesses.Back in July, Sewing was heralding a return to the 150-year-old bank’s corporate finance and trade finance roots. Yet after a strong start to fixed-income trading in the fourth quarter, the recently scorned investment bank is making Sewing proudest, he told employees on Tuesday.Deutsche now expects revenue growth at its core businesses of just 1% a year through 2022, half its previous forecast. Sales at the investment bank should increase 2% annually, compared to a previous estimate of no growth. Sewing has also dialed back his objectives for consumer banking and asset management.The trading unit’s recovery is remarkable after a torrid third quarter, during which Deutsche lagged behind its Wall Street competitors in bonds and currencies. While Sewing said his reorganization was helping the bank’s trading of emerging markets debt and interest rates, relying on the investment bank again to improve revenue is a gamble. This doesn’t feel like a different direction.It’s probably too soon to assess the impact of Deutsche’s exit from equity trading, though some clients have been returning. The fourth quarter is expected to be strong too for other Wall Street and European investment banks, according to analysts at KBW, so it’s hard hard to say how much of Deutsche’s improvement is unique.In fairness, there was some genuinely good news on Tuesday. Cost-cutting targets were reaffirmed, and the bank is getting rid of unwanted assets more quickly than expected.Regulators have certainly taken note of Deutsche’s efforts to reduce its riskiness. The European Central Bank has lowered the bank’s capital requirement for 2020. That’s a welcome sign that the lender may be able to fund its reorganization without having to tap investors. With the shares trading near record lows, valuing the bank at about 30% of its tangible book, Sewing desperately wants to avoid a rights issue.For now the CEO is sticking to a 2022 target for an 8% return on tangible equity, although he acknowledged that market headwinds will make that tougher to achieve. His revenue ambitions have become more realistic, but counting on a continued rebound at the investment bank is exactly what he’s meant to be avoiding. To contact the author of this story: Elisa Martinuzzi at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Deutsche Bank AG Chief Executive Officer Christian Sewing vowed that the bank will execute one of the largest restructurings in its history without the need for extra shareholder funds as he seeks to build credibility with investors.The lender’s common equity Tier 1 ratio -- a key metric of financial strength -- will be above 13% throughout the end of the year, while the lender’s main regulator reduced its capital burden on the bank for next year as Sewing begins to shrink and simplify Germany’s biggest lender. The bank has said that it wants to keep its CET1 level at 12.5% or higher through 2022.Sewing is rolling back years of aggressive expansion, when Deutsche Bank sought to compete as a global securities firm, and bolstering controls to avoid a repeat of misconduct charges that eroded its financial strength and reputation alike. The CEO is funding the overhaul by running a lower capital buffer, prompting some analysts to say the margin for error is slim and that the lender could be forced to tap long-suffering shareholders for fresh cash.The bank “can stick to our commitment to manage our transformation without asking our shareholders for more capital,” Sewing said in a message to staff accompanying the bank’s first investor update in four years on Tuesday. Under previous CEOs, the company raised about 30 billion euros ($33.2 billion) in four capital increases since the financial crisis.Citigroup Inc. analysts said last month that they cannot rule out a “highly dilutive” capital increase until there is more clarity on how European regulators implement new banking standards. Deutsche Bank’s common equity Tier 1 ratio stood at 13.4% at the end of September. The key driver of Deutsche Bank’s lower capital bar is a decline in the ECB’s so-called Pillar 2 requirement, an assessment of the risk an individual lender poses.That component will fall to 2.5% next year from 2.75% in 2019, the highest level among the euro area’s 10 biggest banks by assets While several other lenders had seen their ECB-set requirements decline in recent years, Deutsche Bank’s 2.75% bar hadn’t budged since 2017, company filings show.Banks need capital to absorb losses rather than being forced to ask taxpayers for help if they run into trouble. The issue also matters to investors and staff because falling below the requirements triggers restrictions on dividends and bonuses.Andrea Enria, who leads the ECB’s oversight arm, said last month that bank capital requirements are “levelling off” as repairs to Europe’s banking sector after the financial crisis come to an end.(Updates with CEO comments in fourth paragraph)To contact the reporter on this story: Nicholas Comfort in Frankfurt at email@example.comTo contact the editors responsible for this story: Dale Crofts at firstname.lastname@example.org, Keith CampbellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The packed week of key events for world markets has kept MSCI’s all-country world index just shy of record peaks once again, with the index retreating overnight after coming within 0.3% of January 2018’s all-time peak. Trepidation ahead of the next Sunday’s deadline for more U.S. tariff rises on Chinese imports is keeping a lid on stock markets, with the latest reports from Washington indicating the U.S. side has not yet seen enough from Beijing to defer, let alone cancel, the tariff moves.
Deutsche Bank pared back its revenue growth target on Tuesday, highlighting the tough task facing Germany's biggest lender to revive its fortunes against a gloomy economic backdrop. Deutsche's management gave a presentation to investors on its restructuring which aims to shift the bank away from Wall Street to its home market of Germany as it seeks to draw a line under years of scandals and heavy losses. To arrive at that overall target, the bank cut growth forecasts for retail banking and wealth management to zero but predicted that its long-suffering investment bank would generate 2% more in earnings by 2022.
Deutsche Bank named Christian Berendes, a veteran of more than 20 years at Germany's largest lender, as its new head of government and regulatory affairs on Monday. Berendes will succeed Karin Dohm, who has led the department for four years and will take on new responsibilities, in January, Deutsche Bank said in a statement.
(Bloomberg) -- Deutsche Bank AG Chief Executive Officer Christian Sewing addresses shareholders on Tuesday, five months into a historic restructuring that so far has failed to arrest a long decline in revenue.Sewing, who is scheduled to speak at the bank’s first investor day in four years, can point to success in selling down unwanted assets and reducing costs. But investors are likely to press him on how he wants to meet mid-term targets and what he’s doing to offset headwinds. Plans for the once mighty fixed-income unit may also feature prominently.“We expect only fine-tuning to targets, acknowledging a more difficult outlook” for revenue, Credit Suisse Group AG analysts led by Jon Peace wrote in a note on Thursday. The bank’s profitability target could become more sensitive to the economic and market environment, the analysts wrote.What’s the biggest challenge?Investors are concerned that Sewing will struggle to reverse a protracted decline in revenue, especially from trading fixed-income securities. The bank has already had to walk back its revenue goal, in part because its assumptions about interest rates and the economy were too optimistic. Third-quarter earnings showed all but one of the businesses Sewing is keeping continued to shrink.Sewing had initially pledged to lift revenue in the core bank to 25 billion euros ($27.7 billion) by 2022, equal to an annual growth rate of 2%. The bank has since softened that goal to between 24 billion euros and 25 billion euros.“We fear revenue attrition will be worse than the company expects,” Citigroup Inc. analysts led by Andrew Coombs wrote in recent note. A capital increase by the bank can’t be ruled for as long as it hasn’t provided estimates of the impact from new capital requirements, the analysts wrote.What’s going to happen to the investment bank?Deutsche Bank’s investment banking heads -- Mark Fedorcik for the business of advising companies on deals and raising money, and Ram Nayak for fixed-income trading -- are likely to tell investors that the actions they’re taking will eventually stem the unit’s long decline. The lender has highlighted its leading role on various initial public offerings since the strategy announcement as a way to show it can keep market share despite the restructuring.Revenue from deal advisory rose last quarter, but it’s been contracting in other parts and overall in the division. Analysts don’t predict this will change anytime soon. The bank has also been debating how much to cut back the business of trading securities linked to interest rates.What will the bank say about efforts to grow?The corporate bank under Stefan Hoops is central to Sewing’s plan for growing the lender. Among other things, the division will discuss a project called contextual banking that will enable companies to finance certain assets on a pay-per-use basis, the unit’s digital head, Thomas Nielsen, said at a conference on Wednesday.The retail unit now, known as Private Bank, will likely highlight attempts to lift prices for services, said people familiar with the matter. The bank has recently stepped up its effort to offset the margin pressure from negative interest rates, partly by charging clients for large deposits or introducing fees on some basic services such as checking accounts that used to be free.The division, led by President Karl von Rohr, may also announce a decision to dissolve the separate legal structure around its German unit, the people said, asking not to be identified discussing private information. The plan could save the bank more than 100 million euros in annual costs, people briefed on the matter have said previously.What’s it done to shrink?One achievement Sewing can tout is the bank’s progress on ridding itself of unwanted assets since it moved them into a wind-down unit, led by Ashley Wilson and Louise Kitchen. The lender has begun to transfer the business that services hedge funds to BNP Paribas SA and sold various portfolios of assets including equity derivatives and emerging-market debt, people familiar with the matter have said.At the same time, some analysts have expressed concern at the high losses the wind-down unit has been incurring. Analysts surveyed by the bank expect the division’s pretax loss to hit 3.2 billion euros this year and 2.2 billion euros in 2020.Deutsche Bank has also continued to cut costs and said previously that it’s on track to meet its target to keep costs adjusted for restructuring expenses below 21.5 billion euros this year, and below 17 billion euros in 2022. Analysts doubt Sewing can reach the latter goal.What’s in store for the bank’s asset manager DWS?The bank’s asset management arm DWS, which has been publicly traded since early 2018, will hold a separate investor event on the same day. Like the CEO of his parent company, DWS chief Asoka Woehrmann has highlighted cost savings and a stronger focus on sustainability products as a way to lift profit.Sewing has said he wants to turn DWS into a top 10 asset manager globally, an ambitious goal. Woehrmann has said he will need to take over another large company to achieve that target. Deutsche Bank earlier this year held informal talks with UBS Group AG about merging both banks’ asset management units, but those discussions fell apart.(Updates with details on costs in 14th paragraph)\--With assistance from Nicholas Comfort.To contact the reporter on this story: Steven Arons in Frankfurt at email@example.comTo contact the editors responsible for this story: Dale Crofts at firstname.lastname@example.org, Christian BaumgaertelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The euro may take pundits by surprise next year by climbing faster than expected.The common currency is seen rising to $1.12 by March before a steady ascent to $1.16 by the end of 2020, up from around $1.1065 now, according to a Bloomberg survey. Yet some analysts could be underestimating the prospects for fiscal stimulus, a growing chorus against the European Central Bank’s sub-zero interest rates and the potential for a pick-up in volatility that would threaten the viability of using the euro as a funding currency for carry trades.An increasing number of banks are becoming more optimistic on the euro’s 2020 prospects. Morgan Stanley is the most bullish on Wall Street, betting on the euro rallying nearly 5% to $1.16 in the first quarter as one of its top trades. ABN Amro Bank NV and Commerzbank AG also see a faster climb to $1.14 by March, as the region’s economy stabilizes and Brexit uncertainty fades. And options traders are betting on gains for the common currency.The new ECB President Christine Lagarde, who will give her first policy meeting announcement Thursday, seems focused on the need for greater fiscal stimulus to tackle the region’s growth and inflation troubles. She has acknowledged that “the ECB’s accommodative policy stance has been a key driver of domestic demand during the recovery, and that stance remains in place,” which in theory supports bets on further interest-rate cuts next year, as current market pricing suggests.This sub-zero monetary stance is being increasingly challenged by euro-zone finance chiefs, complaining about its detrimental impact on savings and pension systems. And they are not alone. Pacific Investment Management Co. warns that negative rates may be doing more harm than good as they squeeze banks’ profitability, depress market returns and create a “money illusion” in which savers feel poorer and thus cut consumption.Policy makers counter that negative rates wouldn’t last so long if governments did more to stimulate their economies. The ECB may end up tweaking its inflation goal to 2% over the medium term, which could finally result in a pick-up in inflation expectations. Then the market may need to start pricing in a move away from negative interest rates, effectively reducing the euro’s allure as a funding currency.This year, the potential for a euro rally -- as predicted by strategists at the start of 2019 -- has been suppressed by the use of the euro as a funding currency. As Europe’s bond yields are among the most negative in the world, when global risk appetite is high investors have sold the euro to buy higher-yielding assets elsewhere.Yet some see this carry-trade idea as antiquated, and using the euro as a liability may not be the way forward. Positioning may be largely overstretched, given euro-funded carry trades resulted in returns for 20 of the 23 emerging-market currencies tracked by Bloomberg so far this year.A drop in euro volatility to record lows supported these emerging-market currencies as they managed to overcome global risks this year and pare the losses seen in 2018. While traders may be facing a new era in currency volatility, where low expectations are the norm, current levels may not be sustainable for long.A repeat of price action following the summer of 2014, when volatility rebounded from then-record lows to enter a two-year bullish trend, could be due.Current volatility levels reflect a wait-and-see stance by investors on trade talks and Brexit, so any resolution on those events, market friendly or not, may be accompanied by greater price swings that would hurt carry trade positions and therefore support the euro.In the options market, bullish wagers over the one-year horizon stand at their highest level since April 2018, according to risk reversals, a barometer of sentiment and positioning. This has yet to be reflected in the cash market, which has deviated this year from a long-lasting correlation with options trading.From a technical perspective, charts offer something to bulls and bears alike, with a slight bias on holding long positions. The euro is challenging a bearish trend channel that started in early 2018, with key resistance from its 55-weekly moving average coming at $1.1210.A move above that would target $1.1412, the high on June 25. Failure to extend gains would signal the euro is currently at a powerful wave three of a major Elliot Wave formation that started in February 2018, which would eventually target a drop to $1.05.Over the short-term, however, things are more clear, as the euro seems to have established a bottom at $1.0980-90 and looks to test its 233-daily moving average at $1.1186.NOTE: Vassilis Karamanis is an FX and rates strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice(Updates prices throughout.)\--With assistance from Anooja Debnath.To contact the reporter on this story: Vassilis Karamanis in Athens at email@example.comTo contact the editors responsible for this story: Dana El Baltaji at firstname.lastname@example.org, Neil Chatterjee, William ShawFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Frankfurt prosecutors have dropped an investigation into two Deutsche Bank employees accused of aiding tax evasion through a former Virgin Islands unit, although they have fined the lender for compliance lapses. In a two-day raid a year ago, 170 police officers searched Deutsche Bank's headquarters in Frankfurt, hitting its share price just as management was battling with losses and a string of other financial and regulatory scandals. Sources close to the investigation said as recently as July that prosecutors were set to escalate the investigation, planning raids on wealthy former clients after searching the homes of eight people in May.
Some of Europe's biggest banks are being challenged by environmental groups to sever all lending to utilities which they say are still developing new coal-fired power plants. The call comes as some 190 countries meet in Madrid to assess progress on the 2015 Paris Climate Agreement, which demands a virtual end to coal power by 2050. A United Nations report last year said almost all coal-fired power plants would need to close by the middle of this century to curb a rise in global temperatures to 1.5 degrees Celsius, in line with the level scientists say is needed to stave off the worst effects of climate change.
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien ¨Ponthus. It wasn't expected to be a particularly busy day in terms of corporate news but there should nevertheless be a bit of market price action at the open with notably Ted Baker, which just announced that the value of its inventory has been overstated. Deutsche Bank will also be closely watched with a Reuters exclusive indicating the lender’s role in the Danske money laundering scandal is being thoroughly investigated in the U.S.
FRANKFURT/NEW YORK (Reuters) - The U.S. Department of Justice has in recent weeks stepped up its investigation into Deutsche Bank's role in the 200 billion euro ($220 billion) Danske Bank money laundering scandal, four people familiar with the inquiry told Reuters. One source said the DoJ's new line of inquiry is whetherDeutsche helped move tainted money from Danske , Denmark's largest lender, into the United States. Officials from the DoJ, who have been working closely withEstonian prosecutors for around a year, have also beguncooperating with Frankfurt state prosecutors, the sources said.
Banks in the European Union could close branches, merge or leave the market to reverse a "bleak" outlook for profitability, the bloc's banking watchdog said on Friday. The European Banking Authority's (EBA) sixth annual dive under the bonnet of top banks found that the average capital ratios for lenders - a key measure of financial health - was 14.4% in June, little changed from the previous year. "There are hardly any clear catalysts for an improvement in bank profitability that appear on the horizon," the EBA said in its report.
JOHANNESBURG/LONDON, Nov 29 (Reuters) - Anglo-South African financial services group Investec expects to raise about 189 million pounds ($242 million) from the sale of around 10% of its asset management business, which will be renamed Ninety One when it is spun off in March. Investec, which manages more than 119 billion pounds ($154 billion) in assets, announced plans for the split last year and said the asset manager would be better able to focus on creating long term value away from Investec's banking and wealth operations. The demerger follows similar moves by Prudential, Old Mutual and Deutsche Bank as fees fall and costs rise in the fund management sector.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Deutsche Bank AG has found a willing partner in Goldman Sachs Group Inc. as the German lender tries to quickly offload billions of euros worth of unwanted assets.The U.S. bank bought securities with a notional value of about 40 billion pounds ($51 billion) from the German firm, people briefed on the matter said. It’s at least the second time Goldman Sachs has taken advantage of the sweeping deleveraging effort underway since Deutsche Bank Chief Executive Officer Christian Sewing unveiled a new turnaround plan in early July.In September, the U.S. investment bank purchased the Asian portion of a portfolio of equity derivatives that the German lender had put up for sale, people familiar with the matter said at the time. Barclays and Morgan Stanley each bought a portion too, the people have said. And BNP Paribas previously agreed to take over the hedge fund business.The assets bought by Goldman in the latest deal are tied to emerging market debt and were previously housed in Deutsche Bank’s wind-down unit, one person said. They asked not to be identified discussing the private deal. Representatives for Deutsche Bank and Goldman Sachs declined to comment.Deutsche Bank shares rose as much as 1.9% on the news, paring this year’s decline to about 4.4%. That compares with an increase of about 5% for the wider industry.Deutsche Bank’s wind-down unit is a cornerstone of the July revamp under Sewing. Its goal is to release tied-up capital by reducing assets quickly while avoiding deep write-downs on them. Ultimately, that’s expected to help the bank replenish its capital buffers, which the CEO is currently drawing down to cover the costs of the restructuring.For Goldman, it’s an opportunistic move that allows the firm to help burnish its brand and could aid in its expansion of market share. The move isn’t designed to be a major profit driver but allows Goldman to expand its scale and take advantage of a competitor shrinking its trading presence. Large, established trading desks at the big banks have been benefiting from some of their smaller competitors ceding ground to increase their dominance.Sewing has vowed to cut the leverage exposure -- a regulatory measure of risk -- in the wind-down unit to 119 billion euros ($131 billion) at the end of the year, from 177 billion euros at the end of September.The unit trading emerging-market debt had a weak third quarter, though momentum picked up at the end of the period, the bank said in late October. Deutsche Bank plans to maintain a “robust, broad-based” emerging markets debt-trading platform, it said. The portfolio just sold to Goldman Sachs was moved into the wind-down unit in July, one person said.It’s not clear how much the latest sale will contribute to Sewing’s goal since an asset’s notional value says little about its impact on the balance sheet.(Adds Goldman context in seventh paragraph.)\--With assistance from Sridhar Natarajan.To contact the reporters on this story: Justin Carrigan in Dubai at email@example.com;Steven Arons in Frankfurt at firstname.lastname@example.orgTo contact the editors responsible for this story: Dale Crofts at email@example.com, Ross LarsenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Deutsche Bank has sold $50 billion (£39 billion) in unwanted assets to Goldman Sachs as part of its restructuring, three people with knowledge of the matter said on Wednesday. The assets, related to emerging-market debt, were part of Deutsche's unit to wind down unwanted securities, the people said, confirming a development first reported by Bloomberg. As part of a broad overhaul, Deutsche has hived off billions in assets into a so-called capital release unit, also called a bad bank.