Latest news with #DeutscheBankAG
CNBC
a day ago
- Business
- CNBC
A bank stock climbing out of a two-decade-long hole has further to run, according to the charts
European banks have seen strong performance, with the STOXX Europe 600 Banks Index gaining 41% year-to-date, outpacing the broad-based STOXX Europe 600 Index by 30%. This year's gains have resulted in a multi-year trading range breakout for the iShares MSCI European Financials ETF (EUFN) , which we see as a long-term tailwind suggesting banks should be a continued source of outperformance in Europe. In February, EUFN was able to decisively clear its 2011, 2014, and 2018 highs in a bullish secular shift. The monthly MACD is positive and expanding to the upside, unaffected by the decline into the April low and V-shaped recovery. One European financial stock with a long-term bullish turnaround underway is Deutsche Bank AG (DB) . DB reversed an 18-year downtrend last year, suggesting the stock is now in the early stages of a secular uptrend. The secular shift is evident in the slope of the monthly cloud model, which points higher looking out to mid-2027. There is no major resistance on the chart until approximately $52, defined by former peaks going back to 2012, as a long-term objective. DB is in a cyclical uptrend off the 2022 low with strong upside momentum, evident in the rising 20-, 35-, and 50-week moving averages. Relative to the STOXX 600, DB continues to stair step higher, reflecting upside leadership in the European market. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . 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Mint
6 days ago
- Business
- Mint
Deutsche Bank Surges as Its Traders Ride Market Volatility
Deutsche Bank AG's share price soared as its fixed-income traders joined Wall Street peers in reaping the profits from market volatility. Revenue at the German lender's securities unit in the second quarter rose 11% to €2.28 billion from a year earlier, according to a statement on Thursday. That compares with analyst estimates for €2.20 billion. The lender's shares rose as much as 6.1% in early trading, hitting the highest level in a decade. The trading performance at Deutsche Bank mirrors the development at the biggest US banks, which on average posted a 14% increase in fixed-income trading. 'We are very happy to have delivered our highest second-quarter and first-half year profits since 2007,' Chief Executive Officer Christian Sewing said in the release. 'This puts us on track to meet our 2025 targets.' Chief Financial Officer James von Moltke told Bloomberg Television the entire investment bank division has had a 'good start' to the current quarter. 'That gives us some real confidence about what lies ahead,' he said. The lender stands to benefit from companies around the globe seeking to diversify their bank relationships to include non-Wall Street banks, Sewing told Bloomberg Television earlier this week. European governments have vowed to spend hundreds of billions of euros on defense and infrastructure. Deutsche Bank reiterated on Thursday that it has filed an application for a share buyback with the European Central Bank but didn't specify an amount. It said that the implementation of capital rules known as CRR3 won't impact its payout strategy, apparently in response around prior market speculation around the issue. Income from advising on deals and capital raisings, an area Deutsche Bank recently built up, fell 29% in the second quarter. That resembles declines across Wall Street as clients put bond and stock sales on hold. Von Moltke said in the Bloomberg TV interview that Deutsche Bank is 'committed' to its investments in the unit even though recovery in deals generally has been taking longer than expected. This article was generated from an automated news agency feed without modifications to text.
Chicago Tribune
6 days ago
- Business
- Chicago Tribune
Americans largely are paying for Trump's tariffs, not foreign companies
Who's paying for Donald Trump's tariffs? So far, American businesses and consumers. General Motors Co. was the latest U.S. company to disclose how the levies are raising costs, with the automaker saying Tuesday that the duties dented profits by more than $1 billion as it chose to absorb the blow. That helps explain why car prices didn't rise in last week's inflation data, while robust price increases for other commonly imported goods like toys and appliances showed those tariff expenses are being passed on to consumers. Meanwhile, import prices excluding fuel were up notably in June, suggesting foreign companies aren't shouldering the burden by offering U.S. firms lower prices — challenging the president's claims that other countries pay the rate. Trump reiterated that characterization on Tuesday after a meeting with his counterpart in the Philippines, saying that country 'will pay a 19% Tariff' in a post on social media. While customs duties are giving a significant boost to U.S. revenues, the data show that those coffers are being filled domestically. 'The top-down macro evidence seems clear: Americans are mostly paying for the tariffs,' George Saravelos, global head of FX research at Deutsche Bank AG, said in a note Tuesday. 'There is likely more pressure on U.S. consumer prices in the pipeline.' Many economists agree, especially as relatively tame readings in the consumer price index this year underscore firms' hesitation to pass on tariffs to customers. That's also been evident in the producer price index, where the rate of increase in a measure of margins for wholesalers and retailers has slowed sharply in recent months. 'With little relief on import prices, domestic firms are stomaching the cost of higher tariffs and starting to pass it on to consumers,' Wells Fargo & Co. economists Sarah House and Nicole Cervi said in a note last week. 'The recent rise in import prices points to foreign suppliers generally resisting price cuts.' Granted, there are some signs that foreign suppliers are absorbing part of the impact to keep goods flowing to the U.S. Export prices in Japan have contracted for three straight months, and the country's carmakers cut prices to the U.S. in June by a record in data going back to 2016. But for many foreign companies, the slide in the U.S. dollar has incentivized them to raise their invoice prices to compensate, according to Wells Fargo. And Deutsche Bank's Saravelos said the pressure on U.S. firms so far to bear tariff costs is another headwind for the greenback, which is already on its worst start to a year since the 1970s. Forecasters doubt U.S. corporations will sacrifice profits for much longer. 3M Co. raised its earnings outlook last week as shifting production and pricing changes will help mitigate the impact of tariffs. Nike Inc. is planning 'surgical' price hikes to help soften the blow, as the company expects the levies to increase costs by about $1 billion. 'If consumers and foreign firms are not bearing tariff costs, domestic firms are. That is something that eventually should be reflected in corporate earnings announcements,' Citigroup Inc. Chief U.S. Economist Andrew Hollenhorst said in a note Tuesday. 'We will be listening this quarter, but firms may still emphasize uncertainty and (perhaps rightly) expect that the burden sharing can shift in coming months.'
Miami Herald
22-07-2025
- Business
- Miami Herald
Americans are paying for Trump's tariffs, not foreign companies
Who's paying for Donald Trump's tariffs? So far, American businesses and consumers. General Motors Co. was the latest U.S. company to disclose how the levies are raising costs, with the automaker saying Tuesday that the duties dented profits by more than $1 billion as it chose to absorb the blow. That helps explain why car prices didn't rise in last week's inflation data, while robust price increases for other commonly imported goods like toys and appliances showed those tariff expenses are being passed on to consumers. Meanwhile, import prices excluding fuel were up notably in June, suggesting foreign companies aren't shouldering the burden by offering U.S. firms lower prices - challenging the president's claims that other countries pay the rate. Trump reiterated that characterization on Tuesday after a meeting with his counterpart in the Philippines, saying that country "will pay a 19% Tariff" in a post on social media. While customs duties are giving a significant boost to U.S. revenues, the data show that those coffers are being filled domestically. "The top-down macro evidence seems clear: Americans are mostly paying for the tariffs," George Saravelos, global head of FX research at Deutsche Bank AG, said in a note Tuesday. "There is likely more pressure on U.S. consumer prices in the pipeline." Many economists agree, especially as relatively tame readings in the consumer price index this year underscore firms' hesitation to pass on tariffs to customers. That's also been evident in the producer price index, where the rate of increase in a measure of margins for wholesalers and retailers has slowed sharply in recent months. "With little relief on import prices, domestic firms are stomaching the cost of higher tariffs and starting to pass it on to consumers," Wells Fargo & Co. economists Sarah House and Nicole Cervi said in a note last week. "The recent rise in import prices points to foreign suppliers generally resisting price cuts." Granted, there are some signs that foreign suppliers are absorbing part of the impact to keep goods flowing to the U.S. Export prices in Japan have contracted for three straight months, and the country's carmakers cut prices to the U.S. in June by a record in data going back to 2016. But for many foreign companies, the slide in the U.S. dollar has incentivized them to raise their invoice prices to compensate, according to Wells Fargo. And Deutsche Bank's Saravelos said the pressure on U.S. firms so far to bear tariff costs is another headwind for the greenback, which is already on its worst start to a year since the 1970s. Forecasters doubt U.S. corporations will sacrifice profits for much longer. 3M Co. raised its earnings outlook last week as shifting production and pricing changes will help mitigate the impact of tariffs. Nike Inc. is planning "surgical" price hikes to help soften the blow, as the company expects the levies to increase costs by about $1 billion. "If consumers and foreign firms are not bearing tariff costs, domestic firms are. That is something that eventually should be reflected in corporate earnings announcements," Citigroup Inc. Chief U.S. Economist Andrew Hollenhorst said in a note Tuesday. "We will be listening this quarter, but firms may still emphasize uncertainty and (perhaps rightly) expect that the burden sharing can shift in coming months." (With assistance from Catherine Larkin and Carter Johnson.) Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Mint
22-07-2025
- Business
- Mint
Asia Hedge Fund New Silk Road Shuts After US Investor Pullback
One of Singapore's longest-running hedge funds, New Silk Road Investment Pte, is shutting down after weak returns and a pullback by US investors in Asia led to a sharp drop in assets. The firm, started by two finance veterans about 16 years ago, saw assets under management plummet to $615 million as of December, from almost $2 billion as recently as 2021. The closing comes as smaller hedge funds face increasingly tough conditions, from turbulent markets and geopolitical strife to the popularity of giant rivals whose myriad investment pods have attracted much of the available money. 'Our traditional source of funding from the US institutions had over the last several years been less enthusiastic about liquid equity investments in Asia, in no small part due to geopolitical reasons,' said co-founder Yik Luen Hoong. All remaining capital will be returned to investors and the vehicles shuttered, he added in an email. New Silk Road was a relative pioneer in Singapore's finance scene when it was founded in 2009 by Hoong, former head of Hong Kong-China equity products at Deutsche Bank AG, according to his LinkedIn profile, and Raymond Goh, ex-head of Asian equities at GIC Pte. At the time, the entire hedge fund market in Singapore managed just S$59 billion , a far cry from S$327 billion as of December, according to the latest available data from the Monetary Authority of Singapore. The fund was among the early foreign investors in China, with a team on the ground in Shanghai. When it was approved for investing in yuan-denominated mainland Chinese stocks and bonds under the Qualified Foreign Institutional Investor program in 2012, fewer than 200 firms had received such licenses from the China Securities Regulatory Commission. But in recent years performance suffered. Three of the past five years saw negative returns for both the Asia Landmark Fund and the China Fund, with declines of 28% and 19% respectively in 2022, according to people familiar, who requested not to be named because the matter is private. That same year, China's benchmark CSI 300 Index plummeted by 22%. The slump stretched into 2023, hitting many veteran China investors and forcing some to close shop. The firm had been particularly popular with US institutional investors, many of whom became wary of investing in Asia and began redeeming their funds, according to people familiar. 'We are just one of many active value funds in Asia that have not been the favor of the time,' Hoong said. The market has changed in such a way that it 'disfavors longer-term fundamental investing approach with value bias.' New Silk Road attempted to scale back earlier this year, reducing staff in Shanghai and shuttering a South East Asia fund it had launched more recently, Hoong added. It's not clear how many staff will be affected. While acknowledging that 'active management in Asia has been tough,' Hoong said the firm wasn't forced to wind down due to deficits. He added that Singapore is still a successful hub for hedge funds. Instead, the two founders, both 'crossing 60' years old, opted for a slower pace, and their successors weren't ready to take the reins. 'We had just decided to hang up our boots to return the capital to our investors so that they can pursue a more appropriate strategy of the time,' he said. 'It's as simple as two veterans choosing a different path in life.' With assistance from Bei Hu.
