Breakingviews: Danske's new broom begins deep clean
Thursday, October 31, 2013 - 04:34
Oct. 31 - The Danish bank’s capital, leadership and even advertising have been questioned of late. A new CEO is correct to focus on more cost cuts and throttling back in Ireland, says Breakingviews.
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On today's breaking news quiet time Fred. And -- accident on Fannie ground Lufthansa now add to it -- to which is breaking his economic set aside. -- announced talk about a couple of these things I -- let's start waited Danish right and that's got. Miss that -- to that took a quarter expectations when you think the biggest challenges the banks facing now. Well this is a company that just fired its chief executive. And how do apologize to its customers and is trying to make peace with -- angry regulators. He also had 82 high. Invest return target and the chief executive fired seemed to be not very well informed about how to run -- bank. So you've got a lot of work to be done -- The main thing actually that it has to do right now is best to change its strategy it announced the first part of that's change I -- today. By lowering its return target from. On 9% too much more modest approach her for 12% too much when honest 9%. The next thing. Is and it may -- step towards this is asked to stop thinking of itself as much from growth institution it moved its its retreating and Ireland where it -- to expand. I'm so it looks like it's getting its stuff together. -- okay it's easy to look at the withdrawal from NORTHERN IRELAND I'm cutting some 150 jobs that. Do you think ultimately this is a positive step. Sure this is -- bank it's been expanding beyond its economic confidence so it really was not gonna ever make any money and the Irish market and a big way. And even the European banking in general is becoming a much more competitive and in many ways I'm much more difficult market and dance as a small player and it really needs to us. Stay within areas where it can be quite profitable. -- Confidence married. -- -- few critics CEO's stock is down for a little bit and I went up because he's actually seems to -- very clearly showing that he knows what he's doing. The previous night came from the shipping company in the Danish shipping company may ask its largest shareholder he. I'm sure it was a fine -- but this didn't seem to be up to the challenges it looks like you got someone who's getting the situation under control he should be happy. Again let's shift -- is 21 of the other big reports today and the towns outside -- profit right back at its add on passenger business sledge. But -- -- still upbeat. Sure this is a company in meeting restructuring its largest airline in Europe and -- could get right now the most successful. They've addressed the problems are there in the process for addressing the problems of -- high cost you in short haul European flights -- to compete against crime there and easy jet. Their German links subsidiary seems to be making money they've cut -- staffing costs. They're improving their fleet. What more can you ask -- could ask them to make more money they seem to be on the way towards a much higher profit target the states and and announcing a restructuring plan for 2015. So we see this is a situation where they're doing what they said they would do and what they said they do is likely to be quite profitable. Not you know legacy airlines at the end of the day being sent -- down by FX rates competition from low cost carrier has. How do hobbled do you think Lufthansa results in dealing with. Yes well we can becomes one of the the airlines and olestra who wrote the piece. Ireland writer in Europe and he thinks that there that are well positioned. He's a role for large legacy carriers that have to be very lean and we think they're getting there. Right at that would leave about. And that's all for now my kind of see you at us. The lodge and assessing financial insight what's on US braking issue every day at all that he -- 713 GMT. On keeping them and this is going cents.
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