DBK.DE - Deutsche Bank Aktiengesellschaft

XETRA - XETRA Delayed price. Currency in EUR
6.16
+0.28 (+4.71%)
At close: 5:35PM CEST
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Previous close6.05
Open6.08
Bid6.16 x 555100
Ask6.16 x 230000
Day's range5.78 - 6.17
52-week range5.78 - 10.63
Volume37,480,692
Avg. volume17,239,386
Market cap12.72B
Beta (3Y monthly)1.53
PE ratio (TTM)N/A
EPS (TTM)-1.69
Earnings date30 Oct 2019
Forward dividend & yield0.11 (1.82%)
Ex-dividend date2019-05-24
1y target estN/A
  • Some top Deutsche Bank investors want chairman to step down early - Der Spiegel
    Reuters

    Some top Deutsche Bank investors want chairman to step down early - Der Spiegel

    Some of Deutsche Bank's major investors want supervisory board chairman Paul Achleitner to step down before his term ends in 2022, a German magazine reported on Friday. Der Spiegel didn't name the investors it said were pressing for the change. Achleitner, under pressure from shareholders for some time, survived a confidence vote at May's annual shareholders' meeting.

  • Bloomberg

    HelloFresh Nears Zalando-Style Turning Point After First Profit

    (Bloomberg) -- Zalando SE lost money for the first five years of its existence, then in 2014 it turned a corner and began posting a profit every year. Evidence suggests meal kit startup HelloFresh SE is following a similar path.The Berlin-based food company is optimistic it can generate a group-wide operating profit this year and sustain and expand profitability in the years to come, Chief Executive Officer Dominik Richter said in an interview on Tuesday. HelloFresh shares rose the most since January in early Frankfurt trading.HelloFresh can “generate much higher profit levels than other e-commerce companies,” because the company controls the entire value chain -- from branded retail to wholesale to logistics, Richter said.The company, which assembles ingredients into boxed meal kits and seeks to convince customers of the benefits of cooking at home, earlier Tuesday reported its first quarterly operating profit, in the April-June period, after sales growth across its markets.The results are “significantly better than what we expected,” Deutsche Bank analysts Nizla Naizer and Silvia Cuneo wrote in a note to clients. They mark “a key turning point for the group in our view.”HelloFresh rose as much as 17.7%, the steepest intraday gain since Jan. 18.The Berlin-based startup is especially strong in the U.S., its biggest market, where it’s surpassed Blue Apron Holdings Inc., expanded its choice of meals, and this week started a special “date night” kit in a marketing partnership with businesswoman and actress Jessica Alba.To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Former UBS banker to represent Qatar on Deutsche supervisory board - sources
    Reuters

    Former UBS banker to represent Qatar on Deutsche supervisory board - sources

    Juerg Zeltner, a former UBS manager, is set to become a member of Deutsche Bank's supervisory board, two people with knowledge of the matter said on Monday. In his new role, he will represent the interests of Qatar's royal family - a top shareholder of the German lender -, the sources said. Zeltner, a former head of UBS Wealth Management, was named earlier this year as the chief executive officer of KBL European Private Bankers (KBL epb), which is controlled by the Al-Thani family of Qatar.

  • Faltering Fund Giants Show Perils of Bulking Up
    Bloomberg

    Faltering Fund Giants Show Perils of Bulking Up

    (Bloomberg Opinion) -- In October 2016, Henderson Chief Executive Officer Andrew Formica was busy merging his firm with Janus Capital in a bid to join the fund management industry’s $1 trillion club.“Others will say they wish they’d done it,” he said. Fast forward to his current job running the much smaller Jupiter Fund Management Plc. “Big isn’t necessarily better,” he now says.The mergers that produced Janus Henderson Group Plc and Standard Life Aberdeen Plc were supposed to usher in a wave of consolidation in the European fund management industry. That hasn’t happened – and the dismal performance of the two companies since is proving to be a deterrent to any peers thinking of expanding through acquisition.On Wednesday, SLA reported that customers pulled 15.9 billion pounds ($19.4 billion) out of its funds, more than the 13.4 billion pounds analysts had expected.While rising markets boosted performance to drive assets under management up to 577.5 billion pounds by the middle of the year, they are still 5% below their level at the end of 2017. Scale, it seems, isn’t sufficient to attract customer flows.Last week, Janus Henderson reported its seventh consecutive quarter of withdrawals. Assets under management fell to $359.8 billion by mid-year, down from $370.1 billion a year earlier.Those outflows come as performance has suffered. By the end of June, just 66% of the firm’s funds had outperformed their benchmarks in the previous year, compared with 72% on a three-year basis and 80% over five years.It seems fair to speculate that the distraction of combining two firms has taken a toll on the portfolio managers. Melding two different cultures is never easy. That may well explain the reluctance of rivals to merge.For sure, Jupiter’s Formica is cutting his cloth according to his new situation. In his current berth he oversees about $56 billion. But it’s not just the smaller asset management firms that have been put off by the less than stellar experience of Europe’s two biggest fund mergers.Asoka Woehrmann, CEO of DWS Group GmbH, was asked on an earnings conference call a few weeks ago about his firm’s ambitions to become a top 10 player in the industry. “How many mergers happened in this industry and after three years, you are sitting asking the reason why?” he replied. “This is exactly what we are going to avoid.”With about $805 billion of assets, Woehrmann acknowledged that it would take a “transformational deal” for DWS to get into the top tier, where firms need at least $1.3 trillion of assets. But he stressed the need for patience. “To be big is not our main target,” he said. “Increasing shareholder value is the most relevant target.”That certainly hasn’t been the experience of the owners of SLA stock.Mergers may still happen. Deutsche Bank AG, which owns about 80% of DWS, still seems keen to find a partner for the asset manager. UBS Group AG is similarly anxious to do a deal with its funds arm. And now that GAM Holding AG has drawn a line under its troubles, a suitor may be tempted to bid for it.But in fund management, the firm’s most valuable assets walk out of the door every evening. SLA and Janus Henderson are stark reminders of the difficulties that the industry still faces – and that mergers are no panacea.(Corrects spelling of Janus in first paragraph.)To contact the author of this story: Mark Gilbert at magilbert@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Reuters - UK Focus

    RPT-WeWork obtains commitments for US$6bn IPO-linked debt

    Workspace provider WeWork has obtained commitments from at least 10 banks for US$6bn in credit facilities that remain contingent on the company's ability to push through with its planned initial public offering, sources told LPC. JP Morgan is leading the transaction, while Bank of America Merrill Lynch, Goldman Sachs, Morgan Stanley, Citigroup, Wells Fargo, Credit Suisse, Barclays, UBS, Deutsche Bank and HSBC have also been invited to the financing, according to sources.

  • Europe's Trading Desks Halt Long Slide as Credit Suisse Gains
    Bloomberg

    Europe's Trading Desks Halt Long Slide as Credit Suisse Gains

    (Bloomberg) -- Europe’s battered investment banks held their own in a quarter marked by challenging conditions, stopping a long slide in market share that has prompted painful adjustments across the continent.Even with Deutsche Bank AG slashing its trading units and HSBC Holdings Plc being thrust into turmoil, European trading desks managed to eke out a small gain over their Wall Street peers in the second quarter. U.S. firms led by Goldman Sachs Group Inc. did better in trading equities and related securities, while Europeans led by Credit Suisse Group AG and BNP Paribas SA posted stronger income from buying and selling fixed-income instruments.Here’s a look at how the biggest investment banks did in the second quarter, in four charts.Deutsche Bank led declines in overall trading as the German lender pushed through its biggest overhaul in recent memory, but HSBC was a close second. The British lender on Monday ousted Chief Executive Officer John Flint after less than two years, surprising even some executives at the London firm. Among the U.S. banks, Morgan Stanley reported the steepest declines as hedge fund clients pulled back. All told, Europe’s trading desks saw revenue drop about 7%, compared with a roughly 8% decline on Wall Street.Europe’s banks did relatively well in fixed income, currencies and commodities, known as FICC. BNP Paribas posted a 9% gain, leading a small group of European firms that bucked the broader downward trend. Banks such as Credit Suisse and Natixis SA cited strong performance in credit trading. Barclays Plc finance director Tushar Morzaria said he was optimistic on the basis of some “very large movements" across asset classes.In the U.S., fixed-income traders struggled. Morgan Stanley led a broader slump, citing the “effects of a decline in interest rates and lower volatility.” The trend was echoed by larger rivals including JPMorgan Chase & Co. and Citigroup Inc. Top Wall Street executives embraced a sports cliche to describe cautious clients that led to their worst first-half for trading in a decade: “on the sidelines.”Equities trading was one area where the U.S. stood out, with Goldman Sachs posting a 6% gain for the second-highest quarterly revenue from that business in four years. Only Credit Suisse managed to increase earnings from stock trading, despite a drop at its Asian unit.Deutsche Bank posted the biggest decline here, after announcing during the quarter that it would largely exit the equities business, a dramatic overhaul it said was reflected in its results. Natixis reported a 19% drop, another blow for the French brokerage that lost almost $300 million on Korean derivatives late last year. Morgan Stanley, Wall Street’s biggest stock brokerage, Citigroup and BNP all cited a decline in hedge-fund activity while Bank of America Corp. blamed a “weaker performance” in equity derivatives in Europe.Fees from advising clients on mergers and acquisitions or arranging their stock and bond sales didn’t offer much succor for global banks in the second quarter apart from UBS Group AG. The Zurich-based lender claimed “outperformance” as it advised on large global deals including the spinoff of contact lens maker Alcon Inc. from Novartis AG. By contrast, hometown rival Credit Suisse reported that “a number of transactions did not materialize in the quarter,” helping produce a 14% decline. Other rivals posted dips in revenue from managing debt sales.To contact the reporter on this story: Donal Griffin in London at dgriffin10@bloomberg.netTo contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Christian Baumgaertel, Keith CampbellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    UPDATE 1-UK's Labour calls for investigation into finance minister Javid over Deutsche role

    Britain's opposition Labour Party on Monday called for Prime Minister Boris Johnson to investigate his finance minister Sajid Javid's role in financial misconduct during his previous career as a banker before entering politics. Labour's finance spokesman John McDonnell said he had written to Johnson to reconsider Javid's fitness for the job and should look into three areas of concern relating to the minister's 18-year finance career during which time he worked for Deutsche Bank.

  • Exclusive: Deutsche Bank sets aside $1.1 billion to exit derivatives
    Reuters

    Exclusive: Deutsche Bank sets aside $1.1 billion to exit derivatives

    Deutsche Bank has set aside over 1 billion euros (£915.72 million or $1.1 billion) to cover the cost of offloading derivatives in its 'bad bank,' or capital release unit, three sources at the bank told Reuters. Key to the restructuring is the creation of a 'bad bank' to house 288 billion euros of unwanted assets earmarked for sale or wind-down, including equity derivatives and long-dated interest rate and credit derivatives. Deutsche Bank is still assessing and gauging interest in the assets before repackaging some for sale, the sources said.

  • Business Wire

    Deutsche Bank Decreases Prime Lending Rate to 5.25%

    Deutsche Bank today announced that its New York Branch, Deutsche Bank New York (DBNY), and its subsidiary Deutsche Bank Trust Company Americas (DBTCA) have decreased their prime lending from 5.50% to 5.25% effective tomorrow, August 1, 2019. Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany’s leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.

  • Powell Finds a Way to Disappoint Markets. Again.
    Bloomberg

    Powell Finds a Way to Disappoint Markets. Again.

    (Bloomberg Opinion) -- The Federal Reserve, by cutting interest rates for the first time in a decade, signaling more reductions are possible and ending its balance-sheet reduction two months early, did what the market expected. Then Fed Chair Jerome Powell, who has a history in his relatively short tenure of making some incredible communication gaffes that have roiled markets, did it again.At his press conference a half hour after the Fed announced its decision, Powell said this rate cut wasn’t necessarily the start of an easing cycle. Stocks went from little changed to having the rug pulled out from under them, with the S&P 500 Index falling as much as 1.83%, while the closely watched gap between short- and long-term U.S. Treasury yields narrowed and the dollar soared. None of this was desirable for a Fed chairman and a central bank in the crosshairs of President Donald Trump, who has complained that Powell has “no feel” for markets. But of those market reactions, the movement in bonds may be the most concerning. To refresh, a flattening yield curve is generally a sign that bond traders see slower economic growth and inflation. So the reaction in the bond market, where the gap between two- and 10-year yields shrank to 0.14 percentage point from 0.23 percentage point, is in direct conflict with Powell’s opening statement that the rate cut was aimed at insuring against further downside risks to the economy while sparking faster inflation toward the central bank’s target. Also note that at the start of the last two easing cycles, in January 2001 and September 2007, the yield curve steepened, as you would expect it would. “The flattening of the curve implies investors are worried about a potential 'policy error' if the Fed doesn't act further,” the top-ranked team of rates strategists at BMO Capital Markets wrote in a note to clients.In his defense, Powell was in a tough spot. He needed to sound dovish without actually sounding downbeat on the economy. It’s not an easy needle to thread. After all, nobody wants a central banker who isn’t confident in the abilities of his or her policies to get the job done. They also don’t want a central banker who is out of touch with what the markets are signaling, which in this case was that the economy needs more than a “mid-cycle adjustment policy.”POWELL’S FED AND STOCKSStock market rallies on the day of Fed decisions have been a rare event under Powell, happening just twice in the 12 meetings he has chaired before today dating back to March 2018. Even so, Powell’s tenure has been pretty good for the stock market, with the MSCI USA Index up 10.2% since that March 2018 meeting, handily beating the 8.21% decline a MSCI index of global equities outside of the U.S. This year’s gains can be solely credited to the Fed and Powell’s dovish pivot back in January, which sent bond yields lower. Simple discounted cash flow analysis shows how lower rates make future earnings more valuable now, justifying higher multiples for equities even though profits are flat from a year earlier and forecasts have come way down. That explains the expansion in the S&P 500’s price-to-earnings multiple based on forecasted 2019 profits to 18.1 from 14.6 at the start of January. Up next is a notoriously tough month for equities. The S&P 500 has been down an average of 0.78% in August over the past 10 years, worse than any other month, according to LPL Research. Going back further, the S&P 500 has been up at least 20% by the end of July seven times with 2019 poised to become number eight before Wednesday. So it’s probably a good thing that stocks fell to trim this year’s advance to just under 20% because of those seven times, August was a down month in five of those years, LPL found. The last time it happened was in 1997, and the S&P 500 tumbled 5.7% in August.FOREX FUNThe dollar’s reaction is another seeming market anomaly, as lower rates are typically viewed as a negative for a currency. The Bloomberg Dollar Spot Index, though, soared as much 0.53% in its biggest gain since March 7. While bad for U.S. exporters, it capped an epic month for currency traders. The Citi Parker Global Currency Index, which tracks nine distinct foreign-exchange investment styles, was up 3.40% for July. Not only is that the best monthly performance since April 2003, it’s also more than what the index has gained in a full year since 2008. Another way to look at it is that returns have fallen in each of the past four years and seven of the past eight. Currency traders have been a victim of central bank transparency, which has suppressed volatility. It’s hard to be a contrarian when everyone knows what the major central banks will do, when they will do it and how much they will do it by. Also, increasing globalization means economies tend to move in the same direction more or less at the same time. In July, however, speculators benefited from some big moves in widely traded currencies. The British pound tumbled 4.27% against the dollar amid rising concern about the possibility of a so-called hard Brexit, the Swedish krona fell 3.85% and the Norwegian krone dropped 3.69% despite a general firming in the price of oil. On the flip side, Turkey’s lira soared 3.77% despite increased control over the central bank by the government and the Brazil real appreciated even with evidence of a slowing economy. Currency trading, it seems, is getting fun again.GOLD BUGS SCATTER … FOR NOWThe Fed’s actions Wednesday are being described as a “hawkish cut.” At least that’s how the gold market reacted. Although rate cuts are traditionally good for the precious metal – with prices having risen 11.6% this year through Tuesday on the Fed’s dovish pivot – gold tumbled as much as 1.41% on Wednesday. Nevertheless, gold is still poised for its best annual showing since 2010. Just this month, prices topped $1,450 an ounce for the first time since 2013. Gold is traditionally viewed as a haven asset to own in times of turmoil, but what’s happening this year is less about strife than it is about financial repression, as major central banks embark on a new easing cycle. That can be seen in the almost direct correlation between gold and the rising amount of negative-yielding debt globally, which has more than doubled to about $13.8 trillion from less than $6 trillion October, according to data compiled by Bloomberg. The prospects for ever lower rates are generally a boon to gold, which doesn’t pay interest. But gold is that much more appealing in a world where Deutsche Bank figures that a whopping 43% of bonds globally outside the U.S. trade at negative yields. In a sign of demand, exchange-traded funds backed by bullion own the most amount of gold since 2013.TEA LEAVESLet the second-guessing begin. The Institute for Supply Management’s national manufacturing index for July set to be released Thursday will either support or discredit the Fed’s decision to lower rates for the first time in a decade. The median estimate of economists surveyed by Bloomberg is for little change, forecasting a reading of 52 for July versus 51.7 in June. The first thing to know is that the measure is a diffusion index, meaning readings above 50 denote expansion and those below 50 signal contraction. The second thing to know is that recent measures of regional manufacturing activity by the Fed have been all over the place, with those from the New York and Philadelphia branches coming in stronger than forecast and those from Richmond, Dallas, Kansans City and Chicago doing worse. Bloomberg Economics is more optimistic, expecting a reading of 53.5 in the ISM index, aided by the gains revealed in the recent durable goods report.DON’T MISS Fed Can’t Seem to Satisfy Bond Traders or Trump: Brian Chappatta Boris Johnson Is Playing With Fire on the Pound: Lionel Laurent Mark Carney Is Smacked in the Face by Reality: Marcus Ashworth  China Buying More U.S. Farm Goods Is a Dead End: David Fickling This Political Storm Could Churn Up Some Hidden Gems: Shuli RenTo contact the author of this story: Robert Burgess at bburgess@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Robert Burgess is an editor for Bloomberg Opinion. He is the former global executive editor in charge of financial markets for Bloomberg News. As managing editor, he led the company’s news coverage of credit markets during the global financial crisis.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Bloomberg

    French and Swiss Bankers' Summer May Be Brief

    (Bloomberg Opinion) -- Wall Street’s worst first half in more than a decade for trading is turning out to be surprisingly less painful for some European firms: Credit Suisse Group AG and BNP Paribas SA managed to claw back some of the market share they had previously lost. But counting on a continued rebound could be a mistake.On Wednesday, Switzerland’s second-biggest bank reported a 7% increase in second-quarter fixed income revenue, against a decline of the same magnitude among its U.S. peers. Income from trading stocks was flat across the firm, but compared favorably with the 8% drop posted by its rivals across the Atlantic.This isn’t quite a vindication of Chief Executive Officer Tidjane Thiam’s three-year effort to pivot the bank away from the volatile trading business to the more stable world of managing wealthy clients’ money. It is still far from certain how sustainable the uptick in trading will be.In equities, a business that analysts estimate was unprofitable as recently as last year, Thiam said he is confident Credit Suisse has been catching up with the top five players as it attracts balances from big hedge funds. This matters because only the biggest are likely to generate a profit from that business.But in May, the firm replaced the head of the unit, Mike Stewart, who had been charged with turning around the operation when he was hired in 2017. The impact of the recent management changes remains to be seen.The outlook also remains “very difficult” in Asia, Thiam acknowledged. There, fixed income revenue slumped 29% in the three months through June. What’s more, an over-reliance on bonds across the firm may not help if the fixed-income market turns after an exceptional first half.Then there is the mysterious contribution of the International Trading Solutions unit, or ITS. A joint venture between Credit Suisse’s wealth management, markets and Swiss units, the bank hailed ITS as a big driver of income in the first quarter – even if it didn’t provide specific figures.Asked how the business helped markets in the second quarter, Thiam said it was “one of the components in equities.” The only references to ITS in the financial report point to a decline in both quarter-on-quarter and year-on-year revenue. As I’ve said before, more transparency on the lumpy trades it generates is essential.Credit Suisse’s rival BNP also defied expectations with an 8% bounce in bond and currency trading revenue. The figure for equities was down 14% on an exceptionally strong year-earlier period.With the outlook for revenue deteriorating last year, the French firm accelerated a plan to reorganize its investment bank and focus on high-volume electronic business and select bespoke deals with fatter margins. The gains this year amid lower volatility in foreign exchange suggest the shift is paying off, but there may not be much upside left.Neither Credit Suisse nor BNP would comment directly on the competition, but both are probably benefiting from the retreat of European rivals. Deutsche Bank AG is giving up on equities trading and Societe Generale SA is scaling back in rates, currencies and prime services. BNP is, for example, preparing to ramp up its services for hedge funds by taking on Deutsche Bank’s clients and platforms.Whether both firms are able to rebuild and keep growing their franchises beyond these recent readjustments is still far from certain.To contact the author of this story: Elisa Martinuzzi at emartinuzzi@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis 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.

  • Business Wire

    Deutsche Bank Appointed as Depositary Bank for the Sponsored American Depositary Receipt Program of Wanda Sports Group Company Limited

    Deutsche Bank announced today its appointment as depositary bank for the NASDAQ-listed American Depositary Receipt program of Wanda Sports Group Company Limited.

  • Collapsed Abraaj Fined Record $315 Million by Dubai Watchdog
    Bloomberg

    Collapsed Abraaj Fined Record $315 Million by Dubai Watchdog

    (Bloomberg) -- Dubai’s financial regulator fined Abraaj Group, the world’s biggest private equity insolvency to date, a record $315 million for deceiving investors and misappropriating their funds.The fines ordered by the Dubai Financial Services Authority come as Abraaj, once one of the world’s most influential emerging-market investors, faces legal action in the U.S. The authority’s chief executive officer, Bryan Stirewalt, said the firm’s management "rode roughshod over their compliance function and the misconduct and deceit were pervasive and persistent.”The penalty is a sign that the regulator is seeking to safeguard Dubai’s position as a business hub and reassure investors over its failure to take action sooner. Former managing partner Mustafa Abdel-Wadood last month pleaded guilty to conspiracy charges in the U.S., while five other employees including founder and former CEO Arif Naqvi, have also been charged in the U.S.The authority sanctioned Abraaj Capital Ltd. and Abraaj Investment Management Ltd. for “serious wrongdoing” and “misusing investors’ monies,” it said on Tuesday. The company’s conduct had "damaged the reputation and integrity" of Dubai’s financial center, it said.The fine “sets the tone and provides a benchmark for how the DFSA will penalize delinquent institutions going forward,” said Tarek Fadlallah, CEO of the Middle East unit of Nomura Asset Management in Dubai.Influential InvestorThe penalty dwarfs an $8.4 million fine against Deutsche Bank AG for “serious breaches” in 2015. The German lender was penalized for misleading the Dubai regulator, failures in internal governance and systems, client take-on and anti-money laundering processes.Abraaj, which once managed about $14 billion, was forced into liquidation last year after being accused of mismanaging investor funds. Abraaj backers included the Bill & Melinda Gates Foundation and the World Bank’s International Finance Corp. Its investments included stakes in health care, clean energy, lending and real estate across Africa, Asia, Latin America and Turkey.Abraaj’s liquidators in the past year have been trying to sell the company’s funds. London-based Actis LLP took over two funds this month, while Colony Capital acquired its Latin American operations earlier this year.Read More: Epic Collapse of Dubai-Based Abraaj Nets U.S. Guilty PleaThe DFSA’s investigation into Abraaj started in January 2018. Here’s what it discovered:Abraaj Investment borrowed money just before financial reporting dates to show investors the cash balances they expectedAbraaj Investment changed reporting periods for a fund to disguise shortfallsIt lied about delays in paying proceeds from asset sales to investorsAbraaj Investment was fined $299.3 millionThe compliance department at Abraaj Group raised concerns about the company conducting unauthorized activities as early as 2009, but senior management at Abraaj Capital ignored the warningsAbraaj Capital deceived the DFSA about its capital adequacy requirements and compliance with DFSA rulesAbraaj Capital was fined $15.3 millionThe DFSA will “pursue the persons or entities who perpetrated this activity, including those who allowed this to happen through major corporate governance breaches, to the full extent of our powers,” it said.(Updates with DFSA comment in fourth paragraph, fund sales in eighth paragraph.)To contact the reporters on this story: Matthew Martin in Dubai at mmartin128@bloomberg.net;Nicolas Parasie in Dubai at nparasie1@bloomberg.netTo contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Claudia MaedlerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • EQT Partners, CPPIB to Buy Majority Stake in Bain’s Waystar
    Bloomberg

    EQT Partners, CPPIB to Buy Majority Stake in Bain’s Waystar

    (Bloomberg) -- Buyout firm EQT Partners and Canada Pension Plan Investment Board reached an agreement with Bain Capital to buy a majority stake in its Waystar business in a deal valuing the health-care technology company at $2.7 billion.The transaction is expected to close this year, according to a statement confirming an earlier report by Bloomberg. EQT will be Waystar’s controlling shareholder, said people familiar with the matter who asked not to be identified because that detail wasn’t public.The deal would be one in a surge of health-care technology company transactions in the past year. Bain plans to retain a minority holding in the business following the transaction, according to the statement.“By partnering with CPPIB, we have the unfettered ability to go pursue transformational acquisitions that make sense regardless of size -- that’s why we decided to partner with them,” EQT partner Eric Liu said in an interview.EQT and CPPIB plan to make Waystar a major consolidator in the fragmented health-care technology sector, Liu said. He said EQT was attracted to Waystar because it straddles two relatively recession-proof industries: health care and software.450,000 ProvidersBain created Waystar in 2017 by combining Navicure and ZirMed. Waystar, based in Louisville, Kentucky, makes software that helps more than 450,000 health-care providers manage payments by navigating the reimbursement and payments system for patients, hospitals and insurers.“Since our acquisition of Navicure in 2016, the business has grown significantly driven by new product innovation, market share gain, and the acquisition of several new products into the technology platform,” David Humphrey, a Bain managing director, said in an emailed statement.The investment will accelerate Waystar’s ability to deliver value to clients and partners, Waystar Chief Executive Officer Matt Hawkins said in the statement.“We are thrilled to welcome two new growth-oriented investors, EQT and CPPIB, as our partners and to continue our excellent partnership with Bain Capital,” Hawkins said.The deal comes as Bain has been in talks to buy a minority stake in two other health-care technology companies, Zelis Healthcare and RedCard, which are being combined by owner Parthenon Capital, people familiar with the matter said earlier this month.Ares, Leonard GreenOther private equity equity firms are also looking toward health care’s data and information technology segment. A group led by Ares Management Corp. and Leonard Green & Partners agreed to buy health-survey business Press Ganey Associates Inc. from EQT in June. The deal valued the company at more than $4 billion, people with knowledge of the matter had said.Also in June, UnitedHealth Group Inc. agreed to buy health-care payments business Equian LLC for $3.2 billion, people familiar with the matter said at the time. Veritas Capital and Elliott Management Corp. agreed last year to buy Athenahealth Inc. for $5.7 billion.In the Waystar deal, EQT was advised by Barclays Plc and Triple Tree and Simpson Thacher & Bartlett LLP provided legal counsel, according to the statement. JPMorgan Chase & Co. and Deutsche Bank AG provided financial advice to Bain. Ropes & Gray LLP served as Bain’s legal counsel.(Updates with comment in seventh paragraph)\--With assistance from Gillian Tan.To contact the reporters on this story: Nabila Ahmed in New York at nahmed54@bloomberg.net;Kiel Porter in Chicago at kporter17@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Michael Hytha, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Maybe Banks Really Aren’t Worried About Brexit
    Bloomberg

    Maybe Banks Really Aren’t Worried About Brexit

    (Bloomberg Opinion) -- In many ways, bankers seem to be getting ready for Britain’s exit from the European Union. Bank of America is setting up a new Paris office. A Deutsche Bank executive received a multimillion-euro bonus for overseeing preparations. Estimates of the number of jobs to be moved from the U.K. to other European countries run into the thousands.Yet one thing has changed surprisingly little: the volume of business that the banks do out of their U.K. offices.London has long served as a nexus for international lending -- and not just by U.K. banks. A German bank might use its U.K. subsidiary to lend to a Guernsey hedge fund. A U.S. bank’s London office might lend to a French industrial company. The Bank for International Settlements tracks these cross-border claims, which serve as a useful indicator of the U.K. capital’s financial preeminence.A while ago, I started monitoring this lending to figure out whether Britain’s decision to leave the EU was having a detrimental effect. Initially it wasn’t, and then, in mid-2018, it seemed to be. Now, though, it’s pretty clear that the quarterly changes I saw were little more than noise: They weren’t unusually large by historical standards, and they swung back up again around the end of 2018. Here’s how that looks:All told, according to the Bank for International Settlements, the claims of banks’ U.K. offices on borrowers in other countries have increased by a cumulative $250 billion since Britons voted to leave the EU in June 2016. That’s not huge in relation to the nearly $5 trillion in total claims outstanding, and pretty close to the average rate of growth for the past few decades.Given the risks, why aren’t banks fleeing? One possible explanation is that there’s no need to hurry: Once they’ve prepared their offices elsewhere in Europe, it’s easy to move the assets when necessary. Another possibility is that bankers don’t believe the U.K. will actually leave, and hence aren’t really prepared. If so, Britain’s exit, if it happens, could prove a lot more surprising -- and a lot more damaging -- than it otherwise would be.To contact the author of this story: Mark Whitehouse at mwhitehouse1@bloomberg.netTo contact the editor responsible for this story: James Greiff at jgreiff@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Whitehouse writes editorials on global economics and finance for Bloomberg Opinion. He covered economics for the Wall Street Journal and served as deputy bureau chief in London. He was founding managing editor of Vedomosti, a Russian-language business daily.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • How Boris Johnson Can Defend the City of London
    Bloomberg

    How Boris Johnson Can Defend the City of London

    (Bloomberg Opinion) -- As the prospect of Britain leaving the European Union without a deal grows ever more likely, the City of London’s status as the center of European finance is in increasing jeopardy. The Square Mile is also missing out on the chance to lead the charge into one of the hottest new products in finance, in part because of the government’s reluctance to participate in the mini-revolution.By the beginning of this month, more than $100 billion of green bonds had been sold globally, up from $70 billion at the same point last year and on pace to top last year’s record $134 billion of issuance. While the sector is still small in comparison with the $2.6 trillion of international bonds issued this year, it has doubled in size in just two years — and with the climate crisis becoming more apparent with every temperature record that gets broken, its future trajectory is clear. Countries including Chile, Poland and the Netherlands have all sold debt designed to finance environmentally friendly projects. France has been at the forefront of developing the market for green bonds issued by governments; as a result, its banks are at the top of the global league tables for underwriting sales of this kind of debt for both nations and companies. Credit Agricole SA, BNP Paribas SA and Societe Generale SA enjoy a combined market share of almost 15%.The U.K.’s sole representative in the top 10 rankings is HSBC Holdings Plc — which has seriously considered shifting its head office to Asia, where it makes most of its revenue. That’s a sorry state of affairs given London’s record of being at the vanguard of developing new financial products. And that poor showing is because the U.K. is notably absent from the list of governments that have issued the bonds.The Debt Management Office, which is responsible for U.K. gilt sales, referred me to the government’s Green Finance Strategy report published earlier this month. While that report acknowledges the importance of the continued “mainstreaming of green finance products,” it dismisses the idea of a sovereign issue:The Government does not consider a sovereign green bond to be value for money compared to the core gilt program, which remains the most stable and cost-effective way of raising finance to fund day-to-day government activities.The Government remains open to the introduction of new debt financing instruments but would need to be satisfied that any new instrument would meet value for money criteria, enjoy strong and sustained demand in the long-term and be consistent with the wider fiscal objectives of government.That reluctance strikes me as shortsighted. Admittedly, the Dutch government’s 6 billion euros ($6.7 billion) of 20-year green bonds sold in May yield more than a slightly longer-dated 22-year vanilla issue. But the average gap of fewer than 5 basis points in the past two months is negligible.Moreover, given that the U.K. report also talks about the need for Britain “to consolidate its reputation as the home of the green finance professional and to capture the commercial opportunities” from the growth of the global market for environmentally friendly securities, a tiny increase in interest payments seems — literally — a small price to pay.  Back in the day, it was the U.K. and the Bank of England that took the lead in transformative financial innovations. Bankers in London invented the Eurobond market, which became one of the primary sources of finance for companies and governments worldwide. The now discredited London interbank offered rates were the most important benchmarks of borrowing costs.When it became clear that Europe was serious about introducing a common currency, it was the U.K. central bank that did much of the groundwork. Back in 1991, Britain issued the biggest benchmark bond denominated in European currency units, the euro’s forerunner, as a way of cementing London’s role in the development of the new currency — a victory that still rankles with Paris.And half a decade ago, the U.K. was determined to become the first nation other than China to sell a bond denominated in renminbi as financial centers vied to become the offshore trading hub for Beijing’s currency. Those yuan bonds were repaid almost two years ago.Prior to entering Parliament, the newly installed chancellor of the exchequer, Sajid Javid, was a managing director at Deutsche Bank AG. So he, of all politicians, should appreciate that the City needs to grasp any and every opportunity to position itself for a post-Brexit world. Prime Minister Boris Johnson should allow him to instruct the DMO to embrace green bonds as a relatively cheap way to put London in the mix — and the sooner, the better.To contact the author of this story: Mark Gilbert at magilbert@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Reuters - UK Focus

    DWS taps into infrastructure boom with new $2.7 bln fund - sources

    LONDON/FRANKFURT, July 26 (Reuters) - Deutsche Bank's asset manager DWS is in talks to raise at least 2.5 billion euros ($2.78 billion) for a new infrastructure fund, three sources told Reuters, tapping into strong investor demand for the asset class. DWS, 79.5% owned by Deutsche Bank, aims to reach the first close of the fund soon after the summer, the sources said, speaking on condition of anonymity. A DWS spokesman declined to comment.

  • Reuters - UK Focus

    LIVE MARKETS-Closing snapshot: Mario giveth and then he taketh away

    * European stocks end sharply lower after rollercoaster day * ECB signals rate cut in September, more QE, triggering brief rally * Stock gains wiped out after ECB's Draghi quashes talk of rate cut today * EZ banks briefly rallied on tiered rate hopes, but gains evaporated * German business morale deteriorates * CAC 40 outperformed broader market on solid updates from LVMH, Schneider Electric * Nokia rose 7% after surprise Q2 profit jump * Cobham +35% after Advent agrees to buy for $5 billion Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://thyagaraju.adinarayan.thomsonreuters.com@reuters.net CLOSING SNAPSHOT: MARIO GIVETH AND THEN HE TAKETH AWAY (1558 GMT) The ECB's bank's policy statement delivered much of what the market had expected, signalling a September rate cut, changes to inflation targets, more QE and a gift to banks with possible tiered deposit rates and the ensuing euphoria sent euro-zone stocks rallying, led by banks.

  • Reuters - UK Focus

    LIVE MARKETS-Now Mario, give us the details

    * European stocks rise after ECB signals potential rate cuts * EZ banks rally on tiered rate hopes * German business morale deteriorates * Cars go into reverse after Nissan news * CAC 40 outperforms on solid updates from LVMH, Schneider Electric * Nokia rises 7% after surprise Q2 profit jump * Cobham +35% after Advent agrees to buy for $5 billion Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://thyagaraju.adinarayan.thomsonreuters.com@reuters.net NOW MARIO, GIVE US THE DETAILS (1237 GMT) It looks that the ECB statement didn't disappoint anyone, sending euro-zone shares shooting higher across the board, as the euro took a turn lower.

  • Deutsche Bank Shares Gain as ECB Weighs Impact of Negative Rates
    Bloomberg

    Deutsche Bank Shares Gain as ECB Weighs Impact of Negative Rates

    (Bloomberg) -- A day after the first doubts emerged about Deutsche Bank’s fresh turnaround plan, the European Central Bank stepped in to allay at least some of them.The ECB on Thursday said it will study options to mitigate the punitive effect of negative interest rates on euro area banks, pushing Deutsche Bank’s stock to the highest in almost three months. The central bank singled out the possibility of offering partial exemption from negative interest rates on money deposited by banks at the ECB, known as tiering.Deutsche Bank stock had reacted negatively a day earlier to Chief Financial Officer James von Moltke’s comments on how lower central bank-set interest rates without measures to offset the impact was a “significant risk” to the bank’s three-weeks old turnaround plan. His comments underscored how little room for error Chief Executive Officer Christian Sewing has as he implements the biggest cutbacks yet to the investment bank, including the exit from equities trading, unveiled in early July.“Tiering would be an important measure that the ECB could use to mitigate the negative impact on the banking sector of extended lower rates and potentially a reduction in the deposit rate,” Moltke said on Wednesday during the bank’s second-quarter results presentation. “We believe there’s significant room to implement proposals that would at least offset the negative impact of lets say a 10 basis point reduction in the deposit rate.”Deutsche Bank was the biggest gainer on the 47-member Stoxx Europe 600 Banks Index, which rose as much as 1.9%. The German lender gained as much as 5.6% and was trading 4.5% higher as of 2:33 p.m. in Frankfurt.To contact the reporters on this story: Steven Arons in Frankfurt at sarons@bloomberg.net;Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.netTo contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, James HertlingFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    LIVE MARKETS-Mario delivers!

    * European stocks rise after ECB signals potential rate cuts * EZ banks rally * German business morale deteriorates * Cars go into reverse after Nissan news * CAC 40 outperforms on solid updates from LVMH, Schneider Electric * Nokia rises 7% after surprise Q2 profit jump * Cobham +35% after Advent agrees to buy for $5 billion Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://thyagaraju.adinarayan.thomsonreuters.com@reuters.net MARIO DELIVERS! (1220 GMT) Markets have spiked higher after the ECB kept rates unchanged as expected, but opened the door to future rate cuts and more bond buys, while also providing some respite to the banks with a possible tiered deposit rate.

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