Deutsche Bank complete makeover

Weekly Report - 08/07/2019

Times are a Changin' at Deutsche Bank


On Sunday Deutsche Bank stated that it will come out of the global equities sales, trading and investment banking. With that, the popular bank will also cut a substantial number of jobs. That move is a part of the restructuring strategy to increase the bank's profits. Basically, the bank will chop 18,000 jobs affecting around 74,000 employees by 2022. The bank intends to decrease its set expenses by $19 billion over the next few years.

Deutsche Bank’s board assembled on Sunday discuss the new plan. Christian Sewing, the bank’s CEO said in a corporate press release. “Today we have announced the most fundamental transformation of Deutsche Bank in decades".

The Week that was

Donald Trump, the United States President accused China and Europe of manipulating their currencies. The announcement generated uncertainty in the markets and sparked fears that the U.S may ultimately impose taxes on Europe after Trumps renewed warnings. Robert Carnell Dutch's bank ING Chief Economist said that

“Accusations of Eurozone currency manipulation are flying from the White House with talk of tariffs on the EU and European countermeasures heating up trade tension between the two regions".

Last Wednesday in a tweet, Trump said: “China and Europe playing big currency manipulation game and pumping money into their system in order to compete with the USA.”


Main Focus This Week

On Thursday the main focus will be on ECB’s monetary policy meeting minutes. The EUR increased in an answer to the June statement. In the U.S area, FED Chair Powell will have to speak clearly regarding FED’s plans at the next FOMC meeting. NFP data recommend a pause on rates, with the FED requiring to have some defense if the trade talks collapse. As the FOMC meeting minutes are coming out next Wednesday, the focus will be on FED Chair Powell’s statement to Congress.


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