Deutsche bank collapse

LONDON: European shares followed Asian stocks higher on Monday after the United States shelved plans to impose tariffs on Mexico and as investors anticipated lower U.S. interest rates when the Federal Reserve meets next week on the back of poor jobs data.Investors had fretted that opening up another trade conflict, while still battling with China, could push the United States and other major economies into recession. The Mexican peso rallied as much as more than 2per cent on Monday.But in China, the yuan slipped to its weakest this year after the country's imports fell the most in nearly three years and as talks to end the Sino-U.S. dispute remained deadlocked.The pan-European STOXX 600 gained 0.1per cent in early trade, with Britain's FTSE 100 up 0.5per cent, while S&P500 mini futures were up 0.4per cent after rising as much as 0.8per cent.Liquidity was lower than usual with markets in Germany, Switzerland, Sweden, Norway, Denmark and Iceland shut for national holidays.The 10-year … [Read more...] about Stocks climb on trade, rate cut optimism; yuan falters

NEW YORK: Deutsche Bank is planning cuts at its U.S. equities business, including prime brokerage and equity derivatives, to win over shareholders unhappy about its performance, four sources familiar with the matter told Reuters.Chief Executive Officer Christian Sewing told shareholders at the bank's annual meeting on Thursday it was prepared to make "tough cutbacks" at its investment bank. Sewing is battling to convince them he can turn around Germany's biggest lender, whose shares have reached a record low.The bulk of the anticipated U.S. cuts will come from its money-losing equities business, which includes cash equities trading. Other areas of the business, including U.S. rates trading, have been earmarked for further reductions, they said.It is unclear how many of the bank's 9,275 U.S. employees will be affected and no final decisions have been made, the sources said.Deutsche Bank declined to comment.Sewing did not name which parts of the business will be cut or when the changes … [Read more...] about Deutsche Bank plans cuts in US equities, prime unit: sources

FRANKFURT: Deutsche Bank investors are renewing calls for it to scale back its investment bank division ahead of what promises to be a challenging annual shareholder meeting next week.The future of Deutsche Bank's investment banking operations has returned to the fore after the collapse of merger talks with smaller rival Commerzbank.One major investor is trying to extract a pledge from the bank for cuts to the unit before committing to back management in a symbolic vote of confidence at the meeting, a person with knowledge of the matter said on condition of anonymity.Another prominent investor, Union Investment, said changes in strategy were long overdue."Without cuts in investment banking, we believe it will not be possible to achieve targets on returns," said portfolio manager Alexandra Annecke, who is due to address the meeting.Deutsche Bank declined to comment.The division generates about half of Deutsche Bank's revenue but is also considered its Achilles heel, with European … [Read more...] about Investors renew calls for Deutsche Bank to trim investment bank

FRANKFURT: Deutsche Bank is in danger of failing U.S. stress tests, a European bank supervisor told Reuters, adding to pressure on Germany's biggest lender to make changes to its investment bank after failed merger talks with Commerzbank.European Central Bank regulators are concerned that Deutsche Bank's standing has weakened since it flunked U.S. stress tests in 2015, 2016 and 2018 and a repeat would cause a bigger dent in confidence among customers and business partners.The Federal Reserve, which will complete its examination of Deutsche Bank's U.S. operations in the coming weeks, could also impose conditions curbing its Wall Street investment bank, further undermining its earning power, the official said.A spokesman said Deutsche Bank had "invested heavily to ensure that the bank meets regulators' demands and has made significant progress". The Federal Reserve, which is expected to announce the results by July, and the ECB declined to comment.While Deutsche Bank had made significant … [Read more...] about European regulators fear Deutsche Bank US stress test failure: source