Deutsche Bank

We don’t offer Deutsche Bank yet but this is pretty big news so I’m curious to hear people’s thoughts on this..

In an unusual move, they’ve summarised the news in a tweetstorm.

Here’s a summary of the implications for people in the UK from the BBC.

They’re also planning to halt dividend payments for the next 2 years. But they’re planning to free up 5 billion Euros to return to shareholders through share buybacks and dividends, starting in 2022.

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Amazing how almost every other European bank is now sat in a fairly good/comfortable position yet DB are still struggling. Their global markets business was a mess for so many years and multiple attempts to restructure fell on deaf ears. I wouldn’t be surprised if there was more bad news to come.

If anybody wants a short term moral boost…just look at a 5yr chart of Deutsche Bank :slight_smile:

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It’s feels as though they don’t really know where they sit any more; not a retail bank obviously, moving away from buy side investment banking, trying to focus more on corporate banking and M&A advisory but have dropped from where they used to sit. So much of investment banking is on brand and reputation, and there’s is terrible. Not particularly encouraging from any angle.

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What would be the impact on DWS Xtrackers?
There are a few on Freetrade. I own none of them

None. DWS is a separate, publicly traded firm where this restructure has no impact.

I read they have a few trillion in toxic derivatives? Starting to sound like 2008 again.

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Great thread on the EU banking system:

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Cor blimey, this is bloody terrifying to be honest with you. Thanks for the share.

Yeah this is fairly chilling stuff, could be a rough few years for equities! Will all recover eventually though as ever.

But you also should not believe everything you read on the internet. Especially written by someone on Twitter…

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Well of course, but it’s interesting to read something by someone who’s clearly done a lot of research.

I wouldn’t read too much into PMI on its own - its a very wide ranging survey that is impacted by a lot of things. For instance PMI might be low because inventories are high, not because demand is low - the index does weight/calculate for this kind of situation however.

That being said, its hard to not see most of the world is in declining growth mode now. US earnings season will tell us more, even the PepsiCo release today will give us some major indicators

Edit: Pepsi numbers look pretty damn good. Strong sales & declining production costs