Reuters - Video

Edition: US | UK | IN | CN | JP

Finance Videos

Breakingviews: Deutsche Bank’s big wager

Wednesday, October 29, 2014 - 04:01

The German group’s biggest bet is that the decline in investment banking is cyclical and not structural. The case is far from proven, says Breakingviews.

▲ Hide Transcript

View Transcript

Good to reporting Q3 net loss of 92 million years today some honest in looking at the number is a bit more authority ends at a Georgia case from breaking views. Even looking at a sixteen come inside as well what is a talents and how is Deutsche Bank. Backed the wrong courts and it's when it comes to fixing come. Well I am in this case and and it's it's funny too premature to say decisively. I mean a big thing as you referencing that is going to bank earlier this year said. That we can keep me in that faith fixing them big difference stated to us in places like oh please. In the key three X did AK and the bequest solid performance. Eight in fixed income and I'll post an investment by equities as well but the debate if she really is just whiff of that. Is going to be. You know who visit whether it's gonna continue to keep cool and that he and the big question mark as is. What later the problems they had disarmament was the new regulations. And that litigation mask for the cost of pulse sins and the cost of kind of keeping on being in faith can teach it. And and the quite instinct is that overrule they hit their investment bank made known and 58 million euros. Which is above consensus pretty cute. They Easter pat all the regulation in this case and stuff. That's expense of 37 fools say that's quite big difference and the big question people wondering movement in his. Is this regulation and litigation stuff just that the colts to beat at doing business in state and Boise can walk side quite seat. Visited those walks adequacy and an earthquake could do to buy it because at some point rates are gonna go out well increased volatility in the make more money. But will it wash have quite soon given we've got headwinds from the slowing European economy and geopolitical risks what saved the I mean. At the moment it is a racist thing late both be longer than people thought they would. That's probably a negative. Overrule but the which. And Demme yeah I mean the big problem and the sort of a different Hussein's days that they don't see no you win litigation stuff. Is gonna walks that and they don't know. Either regulation stuff is gonna. The and so is he now has an effect that business say they some big problems those monthly if you can say is saying. It is this is it's actually the right that they've made and until we UST. Kind of gets in Paris Hilton obviously gonna keep on trading it point five tons that book value and medical mishaps at the overall assessment that's it value. What's his weight delay the the pack them enough hopefully. Now the interesting thing challenges that Deutsche Bank easily console stress tests are carried out by the ECB. But they face criticism and it says kids edits or any dependence on borrowed money should this being the biggest concern for investors. Well I mean event though there would be spending on foreign money in the nickel quite like most investment banks are quite leveraged. I mean. It's if they invade. Who was it was an ace is full Paulson a stress test that all the big bank exploit them pulse. And some that some might say that's quite convenient. They pulse. I mean you've added at this stage you go it's ABC a 20 yes because he reviews thumb formal or mentality. At face value and say well perhaps. The avail mocking their positions went the right level. I'm not so let me confidence basis fool the success. Thank you very much a George Payne that talking mud to which are buying Seth fixed income wage act. On the day when that Deutsche about a reported a Q3 net loss of 92 million years I Nanjing Aung Danks is what is.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Breakingviews: Deutsche Bank’s big wager

Wednesday, October 29, 2014 - 04:01