Deutsche Bank to cut 18,000 jobs in 7.4 billion euro overhaul

Jul 8, 2019

First Read

Hits & Takes
JLN Staff

Don’t forget to sign up your interns for MarketsWiki Education’s World of Opportunity on July 16 and 17. Details are on MarketsWikiEducation.com. We have a great lineup of speakers ready to share industry and career advice.~JJL

Bloomberg: News outlets are reporting that NASA is planning to visit an asteroid made of gold and other precious metals! At current prices, the minerals contained in asteroid 16 Psyche are said to be worth $700 quintillion — enough to give everyone on the planet $93 billion.~JJL

Euronext has an updated website.~JJL

Attention nerds: Playing Dungeons & Dragons has finally been commodified, Bloomberg Businessweek reports, as Dungeon Masters for hire can now make hundreds of dollars a session.~SR

The U.S. Women’s National Team won a fourth World Cup on Sunday. According to Nike, the USWNT’s jersey “is now the number one soccer jersey, men’s or women’s, ever sold on Nike.com in one season.” The team continues to fight for equal pay.~SD

++++

Here’s how eliminating student debt would close the racial wealth gap
Allana Akhtar – Business Insider
The US might need to look to the student-debt crisis to address racial inequality. Americans are currently saddled with $1.5 trillion worth of student-loan debt, and the total amount of debt young people owe is the highest since immediately before the 2008 financial crisis.
/jlne.ws/2YAbu05

++++

Bridging the Week by Gary DeWaal: July 1 – 5, and July 8, 2019 (Banning Cryptocurrency Futures; Apple Computer; Position Limits Violation)
The United Kingdom’s Financial Conduct Authority proposed to ban the marketing and sale in or from the UK to retail persons of derivatives and exchange-traded notes based on cryptocurrencies and utility digital tokens, including futures on bitcoin currently authorized for trading in the United States. Separately, the US Commodity Futures Trading Commission and the Chicago Board of Trade sanctioned a Hong Kong-based hedge fund for a one-day position limits violation. Among its penalties, the fund agreed to pay back losses it mitigated by liquidating its positions in excess of federal limits.
/jlne.ws/2XxvoYv

++++

China Drafts Rules on Liquidity Support for Securities Firms
Bloomberg News
China’s securities regulator is soliciting public opinions over a rule allowing a state fund to bail out securities companies that “face significant liquidity risk,” according to an online note from the China Securities Regulatory Commission.
/bloom.bg/32gAsnt

++++

Friday’s Top Three
Our top three stories on Friday were led by The Reformed Broker’s The Broker Who Saved America about Haym Solomon. Second was The Wall Street Journal’s |High-Tech Disruptors of Bond Market Enjoy Stock Surge about Tradeweb and MarketAxess. Third was The Block Crypto’s ErisX CEO explains why partnering directly with large brokers will help them win the cryptocurrency exchange race

++++

MarketsWiki Stats
158,408,797 pages viewed; 23,833 pages; 220,497 edits
MarketsWiki Statistics

++++

CryptoMarketsWiki Coin of the Week:

CryptoMarketsWiki Website»

CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.

Recently Updated Pages

Recently updated pages include
Verge (XVG)
Coinsquare
Segregated witness
Libra

CryptoMarketsWiki Stats

1,161 pages; 10,412 edits
CryptoMarketsWiki Statistics

++++

Lead Stories

Deutsche Bank to cut 18,000 jobs in 7.4 billion euro overhaul
Tom Sims, Hans Seidenstuecker – Reuters
Deutsche Bank (DBKGn.DE) plans to cut 18,000 jobs in a sweeping, 7.4 billion euro overhaul designed to turn around Germany’s struggling flagship lender.
/jlne.ws/2YF3c7c

China Learns an Iron Law of Markets; The government simply doesn’t control enough ore production to damp prices that are causing its metal industry pain.
David Fickling – Bloomberg
China’s steelmakers have had enough of the squeeze. The government needs to “maintain normal iron-ore market order” and push prices back to “reasonable levels” Qu Xiuli, vice chairwoman of the China Iron & Steel Association, or CISA, told a conference in Shanghai on Friday.
/jlne.ws/2XycEgq

RenTech Has Been Pulling Money From Deutsche Bank for Months
Sonali Basak, Donal Griffin, and Katherine Burton – Bloomberg
Renaissance Technologies, the hedge fund giant that Deutsche Bank AG has counted as one of its largest clients, has been taking money out of its prime brokerage accounts with the German lender over the past few months, according to people familiar with the move.
/jlne.ws/2L7uxfr

How Deutsche Bank’s Woes Infect All European Lenders
Yalman Onaran and Donal Griffin – Bloomberg
Europe has too many banks making too little money. The continent’s big lenders appear to lurch from crisis to crisis, burning through chief executives and seemingly endless resets of strategy. The flailing is particularly dramatic when compared with American rivals. A decade ago, Europe’s top five banks earned more than their counterparts across the Atlantic Ocean. By last year – when the top five U.S. banks raked in more than $100 billion in profit – their European equivalents earned just a third as much. With the global financial system increasingly intertwined, weak banks in Europe are a concern for banking systems everywhere.
/jlne.ws/2XzQjio

Deutsche Bank to transition prime brokerage and electronic equities franchise to BNP Paribas; Deutsche Bank agreement with BNP Paribas comes as bank plans to exit equities trading and to reduce its workforce by 18,000.
Hayley McDowell – The Trade
Deutsche Bank has confirmed it is in agreement with BNP Paribas to transition its largely US-based prime brokerage and electronic equities businesses, as part of the biggest business overhaul the bank has seen in a decade.
bit.ly/32g2dg0

Philipp Who? Julius Baer Surprises With Insider Pick for CEO
Patrick Winters and Ross Larsen
Ex-McKinsey consultant Rickenbacher to take over as next CEO; Appointment ends speculation about Iqbal Khan, Robert-Charrue
Julius Baer Group Ltd. appointed little-known internal candidate Philipp Rickenbacher as chief executive officer in a move likely to be seen as another step away from the breakneck expansion under Boris Collardi.
/jlne.ws/2XvQ7ko

Wall Street Chiefs’ Pay Doesn’t Sync With Returns; Banks and financial companies delivered sharply negative shareholder returns in 2018, but most of the top-paid Wall Street chiefs got big raises
Charlie McGee – WSJ
Wall Street companies delivered significant losses to their shareholders last year, but the pain didn’t spread to the top.The chiefs of banking and financial institutions in the S&P 500 received a median raise of 8.5% last year, compared with 5. 6% for CEOs in the broader index, according to a Wall Street Journal analysis.
/on.wsj.com/2Xu13yV

High-Frequency Trading Is Newest Battleground in Crypto Exchange Race
Anna Baydakova – Coindesk
A handful of cryptocurrency exchanges are rolling out the red carpet for high-frequency traders. Huobi, based in Singapore, and ErisX, in Chicago, have separately begun offering colocation, in which a client’s server is placed in the same facility or cloud as the exchange’s, officials at each exchange told CoinDesk. This allows those investors to execute trades up to a hundred times faster, giving them an edge over the rest of the market.
bit.ly/32c7khv

In the Pig Plague, It Pays to Be a Crop Giant in the Right Place
Isis Almeida and Mario Parker – Bloomberg
Traders with fewer soy crush plants in China will benefit most; Wilmar stake hurts ADM, South America plants a plus for Bunge
The world’s top agricultural-commodity traders have for months stuck to the mantra they’ll benefit from a deadly pig disease roiling global markets. Just how much they’ll profit depends on the location of their assets.
/bloom.bg/32ekiez

Deutsche Bank Drastic Overhaul Set to Return Lender to Roots
Steven Arons – Bloomberg
Sewing ready to end long pursuit of global trading dominance; Revamp of staff, divisions puts German corporate clients first
One year ahead of its 150th anniversary, Deutsche Bank AG is returning to its roots.
/bloom.bg/32euT97

World War II Bomb Is Defused Near ECB Headquarters in Frankfurt
Catherine Bosley and James Amott – Bloomberg
A World War II bomb discovered near the European Central Bank’s headquarters in Frankfurt was defused by ordnance experts on Sunday, avoiding disruption to the ECB’s regular workweek.
/bloom.bg/32gFaSv

Can Goldman’s Trading ‘Rainmaker’ Bring Back the Glory Days?
Sridhar Natarajan – Bloomberg
Ashok Varadhan is the last of Lloyd Blankfein’s trading chiefs; Famous mathematician’s son and Coach K pupil overcame tragedy
He’s the last link to another era at Goldman Sachs, to the time when the traders ruled. Now Ashok Varadhan confronts one of his most daunting challenges: helping restore Goldman’s trading operation, the bank’s long-time profit engine, to something resembling its former glory.
/bloom.bg/32ct5O0

Indian Bank Defrauded by Another Borrower; Punjab National Bank uncovered $556 million in fraudulent borrowing
Krishna Pokharel – WSJ
The Indian bank that fell victim to one of the country’s biggest banking scams said that another borrower had defrauded it of half a billion dollars.
/on.wsj.com/32bwUTz

Exchanges, OTC and Clearing

TriOptima record compression shrinks notional in Eurex Clearing
Eurex and CME Group
TriOptima, a leading infrastructure service that lowers costs and mitigates risk in OTC derivatives markets, today announced that it has reduced notional outstanding at Eurex Clearing by 26% following a record compression run on June 26, 2019.
bit.ly/32dPlqG

HKEX to Launch USD London Metal Mini Futures in August
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce the launch of US dollar-denominated London Metal Mini Futures for six base metals, starting 5 August 2019.
bit.ly/32g2rnm

FTSE Russell launches first climate risk government bond index
FTSE Russell
FTSE Russell, the global index, data and analytics provider, has launched the first government bond index to adjust index weights based on each country’s preparedness and resilience to climate change risk. The FTSE Climate Risk-Adjusted World Government Bond Index (“Climate WGBI”) is derived from the FTSE World Government Bond Index, a widely used benchmark of investment-grade sovereign bonds of 22 developed economies. The index will be available to investors going forward as a portfolio performance measurement tool as well as for the basis of an investment portfolio.
bit.ly/32jf55l

Shanghai exchange curbs bond issuers’ use of repos in structured financing – sources
Reuters
The Shanghai stock exchange is curbing bond issuers from using repurchase agreements, or repos, in structured financing, four sources told Reuters on Monday, as regulators step up efforts to contain financial risks.
/reut.rs/32a68uZ

Social stock exchange plan lacks clarity on trading, tax benefit transfer
Jayshree P. Upadhyay, Nasrin Sultana – Livemint
Social stock exchanges (SSEs) proposed in the Union budget will act as crowd-sourcing platforms for fund-raising by non-profit entities aimed at impact investment and transparency, a government official aware of the matter said. The word ‘exchange’ aims to ensure it is regulated by the Securities and Exchange Board of India (Sebi), the official said on condition of anonymity.
bit.ly/32dQYEO

Fintech

Ex-Goldman Europe boss Michael Sherwood to join fintech Revolut; Start-up has appointed string of City grandees as it seeks to boost governance credentials
Cat Rutter Pooley – FT
Fast-growing UK fintech Revolut will appoint Goldman Sachs veteran Michael Sherwood to its board as part of efforts to improve corporate governance after a series of mis-steps.
/on.ft.com/2Xu0FQZ

FIS gains unconditional EU okay for $35 billion Worldpay buy
Reuters
U.S. financial services provider Fidelity National Information Services Inc (FIS) (FIS.N) on Monday won unconditional EU antitrust approval for its $35 billion takeover of payments company Worldpay (WP.N).
/reut.rs/32dnFSX

Cryptocurrencies

CME Group set to alter its reference rate for Ether, and it could mean the exchange is getting ready for futures
Frank Chaparro – The Block
CME Group is changing up its reference rate and index tied to ether, which is slated to occur July 15, according to a notice released by the firm Friday. itBit, the exchange unit of New York-based fintech firm Paxos, will provide data for the two financial instruments, joining Bitstamp and Kraken. Crypto Facilities will continue to act as the administrator of the indexes, which both launched in 2018, according to the company. CME said itBit satisfied its criteria for being included as a participant in the indexes, the firm added.
bit.ly/2YBXqn6

Facebook’s Libra Faces Skeptical Government in Asia’s Third-Largest Economy
Vrishti Beniwal and Shruti Srivastava – Bloomberg
Government not comfortable with private digital currencies; The central bank has effectively banned use of cryptocurrencies
The latest skepticism to Facebook Inc.’s plans for its new cryptocurrency called Libra comes from India as Asia’s third-largest economy is not keen on allowing the digital currency in the country.
/jlne.ws/2XyWOSu

Fugitive U.S. tech guru: Cryptocurrency is next Cuban revolution
Sarah Marsh – Reuters
HAVANA (Reuters) – On the run from U.S. tax authorities, tech guru John McAfee puffs a cigar aboard his towering white yacht in a Havana harbor and says he can help Cuba evade the U.S. government too – by launching a cryptocurrency that defeats a U.S. trade embargo. The creator of the eponymous antivirus software in the 1980s, McAfee in an interview touted the anonymity of the digital currency while also outlining his belief that income tax is illegal and plans to run from Cuba for the Libertarian Party nomination for U.S. president.
/reut.rs/2LDQAtD

Libra Isn’t a Cryptocurrency. It’s a Glimpse of a New Asset Class
Noelle Acheson – Coindesk
Coming from an organization so tied to the question of identity (whether real or not), it is surprising that Facebook’s Libra coin seems confused about its own. The organization has chosen to brand Libra “a stable global cryptocurrency,” and the label “cryptocurrency” has been replicated by media around the world. Yet Libra is not a cryptocurrency. Don’t get me wrong – those of us in the sector appreciate the global attention given to the concept since the announcement.
bit.ly/2L89kC0

Lawmakers Push for New Bitcoin Rules
Paul Vigna – The Wall Street Journal
Cryptocurrency is on the agenda in Washington. The Internal Revenue Service is expected to update its 2014 guidance on cryptocurrencies in coming weeks, following an April request from a bipartisan group of 20 lawmakers. It is part of a broader push to boost the nascent cryptocurrency industry. Congress is considering at least three bills that would resolve some of the murky legal issues surrounding digital money.
/on.wsj.com/30miD4W

Facebook’s Cryptocurrency Plan Draws ECB Warning on Regulation
Angeline Benoit and James Regan – Bloomberg
Financial regulators must act fast to prepare for the push by U.S. tech giants such as Facebook Inc. into the financial system, according to European Central Bank Executive Board member Benoit Coeure. “It’s out of the question to allow them to develop in a regulatory void for their financial service activities, because it’s just too dangerous,” Coeure said on Sunday in Aix-en-Provence in southern France. “We have to move more quickly than we’ve been able to do up until now.”
/bloom.bg/2xCG0ec

Chinese app Sina Finance introduces cryptocurrency index
Carol Gaszcz – The Block via Yahoo Finance
Chinese financial news app Sina Finance has introduced a cryptocurrency index, technode writes. The index shows prices and performance of major cryptocurrencies and broadcasts cryptocurrency-related news. The index is only available in its mobile app, and the feature is not accessible from Sina Finance’s web version.
/yhoo.it/2Ju36cf

Survey: Generation Z Does Not Plan to Buy Cryptocurrency
Adrian Zmudzinski – Cointelegraph
Generation Z does not plan to buy cryptocurrency, according to the results of a survey conducted by Business Insider released on July 5. Per the report, SurveyMonkey Audience partner Cint surveyed 1,884 U.S. residents between ages 13 to 21 to learn the opinions Generation Z. The survey participants were asked how likely they were to purchase cryptocurrency in the next six months, and over 52% answered: “not at all.” Furthermore, only 5% answered “extremely likely,” 6% “very likely,” 15% “somewhat likely,” and 17% “not so likely,” while 4% gave different, unspecified answers.
bit.ly/2G2gxzc

Regulatory Overview of Crypto Mining in Different Countries
Gareth Jenkinson – Cointelegraph
A move by the Iranian government to cut off the power supply to local Bitcoin (BTC) miners grabbed headlines in June amid a soaring price gain by the preeminent cryptocurrency. As Bitcoin surged to prices not seen since 2017, a rising hash rate mirrored renewed interest in the cryptocurrency. By July 1, the Bitcoin mining hash rate surpassed 69 quintillion hashes per second.
bit.ly/2JzH8or

Singapore government proposes to exempt value-added tax on cryptocurrencies
The Block
The government of Singapore is planning to end goods and services tax (GST) (or value-added tax (VAT) as known in some countries) on cryptocurrencies that function or are intended to function as a medium of exchange.
bit.ly/30jgDdB

Banks steer clear of Facebook’s Libra project
Financial Times
US and European banks are steering clear of Libra, Facebook’s project for a new cryptocurrency, for fear of antagonising regulators and cannibalising their own digital currency projects.
/on.ft.com/2Xyeu0B

Politics

Sacking of Turkish central banker sparks concern; Fears new governor will face more pressure over rates as lira falls 3% in early trade
Laura Pitel – FT
Few Turkish financers expected to find themselves standing up for Murat Cetinkaya, Turkey’s former central bank governor, whose three years in office were often marred by erratic and unorthodox policy making.
/jlne.ws/2XyIF89

Trump and Turkey Threaten Heyday of Central Bank Independence
Cagan Koc, Nacha Cattan, and Alister Bull – Bloomberg
U.S. president repeatedly criticizes Federal Reserve policy; Turkey, India, U.K. among others lobbied by politicians
The “heyday of central bank independence now lies behind us,” Pacific Investment Management Co.’s Joachim Fels declared Saturday.
/jlne.ws/2XtxSvM

U.K. to Probe Leak of Envoy’s Memos Calling Trump ‘Inept’
Ros Krasny and Kitty Donaldson – Bloomberg
Ambassador Darroch termed White House ‘uniquely dysfunctional; Leak of memos comes a month after Trump state visit to London
The U.K. Foreign Office is investigating a leak of memos in which the British ambassador to the U.S. described President Donald Trump and his administration in unflattering terms, an official with the agency said.
/bloom.bg/32fJnFW

World’s biggest diamond producer Alrosa hit by Sino-US trade war; Chief Sergei Ivanov blames tensions for wiping out sales targets and curbing profits
Max Seddon – FT
The US trade war with Beijing has wiped out sales targets of the world’s largest diamond producer Alrosa in China and hit purchases by the country’s tourists in the west.
/on.ft.com/32crM1y

China’s Gold Hoard Swells
Ranjeetha Pakiam – Bloomberg
PBOC increases holdings for seventh month amid U.S. trade war; Poland has more than doubled gold assets, Russia’s also buying
Central banks are going after gold in 2019, boosting holdings as economic growth slows, trade and geopolitical tensions rise, and some authorities seek to diversify their reserves away from the dollar.
/bloom.bg/32cseNi

It May Be Now or Never in Trump Fight to Keep Records From House
Andrew M Harris – Bloomberg
Appeals panel will rule — and high court could steer clear; Oversight role settled law, experts say; others see overreach
Time is tight for Donald Trump’s lawyers in their fight to keep the president’s financial records out of the hands of congressional Democrats.
/bloom.bg/32i4N59

Why a leader’s past record is no guide to future success; Successful leadership depends on context, collaboration and character
Andrew Hill – FT
“There goes that queer-looking fish with the ginger beard again. Do you know who he is? I keep seeing him creep about this place like a lost soul with nothing better to do.”
/on.ft.com/32fG7dG

Will Populism Defeat Mainstream Politics?
Frantisek Markovic – Forbes
Ever since the Brexit referendum and victory of Donald Trump in 2016, many political commentators have struggled to make sense of the shifting political paradigm. With the rise of anti-system parties right across Europe, the breakdown of the center-ground politics seemed inevitable.
bit.ly/2G10K3F

The Trump Tariff Twist That’s Cost U.S. Steel $5.5 Billion
Matthew Townsend and Joe Deaux – Bloomberg
Older mills unable to compete as output soared, demand fell; Nucor’s cheaper-to-run electric-arc furnaces hold their own
President Donald Trump’s tariffs on foreign steel have sped the decline of some of the U.S. mills he vowed to help.
/bloom.bg/32eVjaZ

Attorney General Bill Barr Sold Millions in AT&T Stock
Ed Lin – Barron’s
Attorney General William Barr sold millions of dollars in AT&T stock in April, a recent disclosure shows. Barr sold a total of between $1.75 million and $6.52 million of AT&T stock (ticker: T) from April 15 through 26, according to a form he filed with the U.S. Office of Government Ethics. Specific figures aren’t required for disclosure, only ranges.
bit.ly/32bWUOK

Regulation

FIA Recommends Changes to Exchange Traded Derivatives Reporting
John D’Antona Jr. – Traders Magazine Online
FIA recently published a new position paper that highlights the concerns of market participants with the current reporting framework for exchange traded derivatives (ETDs). Further, and more importantly, FIA suggests alternative solutions which will assist regulators to monitor systemic risks in the ETD market, improve data quality and reduce existing inconsistencies with European Market Infrastructure Regulation (EMIR) reporting obligations.
bit.ly/2NGAUbJ

iBosses restricted from using disclosure exemptions for failing to lodge financial reports
ASIC
ASIC has restricted ASX-listed iBosses Corporation Limited (iBosses) from using certain disclosure exemptions when making public offers of securities for failing to lodge financial reports.
bit.ly/32huinm

Update of annual equity transparency calculations – application of the tick size regime for third-country shares
ESMA
On 21 June 2019 ESMA has published the updated results of the annual equity transparency calculations. The updated results are due to apply from 8 July 2019.
bit.ly/32g2MXa

Revamped Euribor lending benchmark wins regulatory approval
Reuters
A revamped version of the Euribor interest rate benchmark has been given regulatory approval, helping the euro area catch up with reforms aimed at avoiding a repeat of the global rate-rigging scandals.
/reut.rs/2G1LEuM

Investing and Trading

A glimpse into the responsible investor mindset
Thomas Hale
Sustainable finance is an approach to investing that aims to achieve non-financial goals, like protecting the environment or eliminating social injustices, as well as providing a return.
/jlne.ws/2XunP9Q

Large IPOs Set Record Pace in First Half; Startups raised $472 million in capital on average through their public offerings, data show
Katie Roof – WSJ
The number of companies valued at $10 billion or more that have gone public in the first half of this year is more than at any other time since the dot-com boom of 2000, data show.
/on.wsj.com/327uIMS

Institutions

BlackRock’s Rachel Lord: ‘We can get kicks in the face’; Asset manager’s Europe head on embracing the spotlight, quitting banking and guns in the US
Peter Smith – FT
For two decades the same faithful taxi driver has arrived at Rachel Lord’s north London home at 7am sharp daily to take her to work.
/on.ft.com/2XyJ5eJ

Natixis fund management boss defends model after H2O crisis; Jean Raby denies UK unit is suffering from liquidity crisis
David Keohane and Robert Smith – FT
Natixis has come out swinging to defend itself against criticism of its business model as the French bank tries to convince investors that a crisis of confidence in one of its funds should not shake the entire structure.
/jlne.ws/2XuoWq2

Pension funds join impact investing campaign for a better world; Financial groups add capital market heft to help meet the needs of the next decade
Catherine Howarth – FT
The UK is committed to being among the global leaders in the fast-growing field of impact investing. The newly announced Impact Investing Institute is one sign of this.
/jlne.ws/2Xy7vVn

Bankers’ tin ears on bonus claims will deepen social tensions; Credit Suisse and Andrea Orcel show it is no longer shameful to fight for high pay
Patrick Jenkins – FT
Remember the repentance of bankers after the financial crisis? It wasn’t quite the display of self-flagellation that some reformers would have liked. The Occupy Wall Street movement did not provoke the overthrow of capitalism.
/jlne.ws/2XvBDAV

Deutsche Bank starts cull of 18,000 jobs; German lender begins its most radical strategic overhaul in two decades
Olaf Storbeck, Stephen Morris, Leo Lewis and Stefania Palma – FT
The culling of 18,000 jobs at Deutsche Bank has started only hours after the lender unveiled its most radical strategic overhaul in two decades, with whole teams of equity traders in Europe, the US and Asia being dismissed on Monday morning.
/jlne.ws/2XyXSWu

Deutsche Bank CEO Slashes 18,000 Jobs in $8.3 Billion Revamp
Steven Arons and Nicholas Comfort – Bloomberg
Bank expects to exit its equities sales and trading business; Lender sees no dividend for this year or next amid overhaul
Deutsche Bank AG unveiled a radical overhaul that will see the lender exit its equities business, post a 2.8 billion-euro ($3.1 billion) second-quarter loss and cut the workforce by a fifth to reverse a slide in profitability.
/jlne.ws/2XvI0Eh

Deutsche Bank Plans Radical Surgery After CEO Runs Out of Options
Steven Arons – Bloomberg
Bank’s equities trading to shutter as it cuts 18,000 jobs; CEO says ‘we are returning to our roots’ to focus on Germany
The kind of radical move made by Deutsche Bank AG Chief Executive Officer Christian Sewing has been on the table for years in Frankfurt.
/jlne.ws/2XzjqCz

Deutsche Bank Seeks to Reassure Investors Over Restructuring; CEO Christian Sewing said the investment bank would come out of the restructuring smaller but more stable
Jenny Strasburg and Paul J. Davies – WSJ
Deutsche Bank AG shares were volatile Monday as the German lender insisted it could radically restructure its business without having to ask shareholders for more capital to help pay for staff cuts and losses.
/on.wsj.com/2Xytuf1

Bank Stocks Haven’t Priced In Enough Bad News; Bank stocks appear cheap based on analyst estimates for future earnings, but are analysts pessimistic enough?
Aaron Back – WSJ
American bank stocks look cheap right now, but are they cheap enough? That depends on how bad things get when the economic cycle turns.
/on.wsj.com/32eTrit

Regions

Deutsche’s Onslaught of Layoffs Have Already Started in Asia
Cathy Chan, Sofia Horta e Costa and Chanyaporn Chanjaroen – Bloomberg
About half of Asia equities group to be cut in first round; Regional CEO says firm is ‘absolutely committed’ to Asia
Deutsche Bank AG began winding down its equities business from Sydney to Mumbai on Monday, a day after the beleaguered German firm unveiled a sweeping overhaul of its operations.
/jlne.ws/2Xy711v

No Matter 18,000 Lost Jobs, Germany OK With Deutsche Bank Cull
Patrick Donahue and Birgit Jennen – Bloomberg
Merkel’s administration wanted to stay on sidelines all along; Berlin likely to welcome German lender return to its roots
Chancellor Angela Merkel’s government will look past Deutsche Bank AG’s cutting a fifth of its workforce as the German lender commits to an overhaul.
/jlne.ws/2XxwYyy

‘Brilliant Minds’ Trading for Romania Make Killing on Currencies
Andra Timu and Irina Vilcu – Bloomberg
Romania’s central bank boss has won plaudits for a career that’s set to extend beyond three decades. But he’s not taking the credit for a bumper year of profits that exceeded most of the country’s commercial lenders.
/jlne.ws/2XxwgkS

Tearful Deutsche Bank Staff in London Learn Fate as Cuts Begin
Stefania Spezzati – Bloomberg
Deutsche Bank AG started cutting hundreds of jobs at its investment bank in London on Monday morning as the German lender embarks on its most aggressive restructuring plan yet.
/jlne.ws/2XsTnga

The U.S. Is Overflowing With Natural Gas. Not Everyone Can Get It; U.S. gas production is at a record high, but the infrastructure needed to move the fuel around the country hasn’t kept up
Stephanie Yang and Ryan Dezember – WSJ
America is awash in natural gas. In parts of the country there’s hardly a drop to burn. Earlier this year, two utilities that service the New York City area stopped accepting new natural-gas customers in two boroughs and several suburbs. Citing jammed supply lines running into the city on the coldest winter days, they said they couldn’t guarantee they’d be able to deliver gas to additional furnaces. Never mind that the country’s most prolific gas field, the Marcellus Shale, is only a three-hour drive away.
/on.wsj.com/2XsYVHw

Wall Street Banks Struggle to Hire Local Talent in China
Bloomberg News
State-backed firms like CICC, Citic seen wielding more heft; Global banks need fresh talent to capitalize on market opening
In the U.S., Wall Street’s biggest investment banks have been known to reject about 95% of job applicants. In China, it’s often the other way around.
/bloom.bg/32i624j

Brexit

Tories Plotting to Thwart No-Deal Brexit Prepare New Attack
Kitty Donaldson – Bloomberg
Dominic Grieve plans to stop new premier suspending Parliament; Boris Johnson says he’s not bluffing about no-deal Brexit
British Conservatives plotting to thwart a no-deal Brexit will make another attempt this week to stop the next prime minister from forcing a chaotic break with the European Union without Parliament’s consent.
/jlne.ws/2XxvAfk

Former Brexit chief: We should all worry about no deal
BBC News
Everyone should worry about no deal, the civil servant who was, until March, head of the Brexit department has said. Philip Rycroft, who resigned after 18 months, told the BBC’s Panorama no deal was “fraught with risk”. And NI police said no deal could help recruitment for paramilitary groups. Both the candidates in the race to replace Theresa May as prime minister – Jeremy Hunt and Boris Johnson – have said they would be prepared to leave the EU without a deal.
/bbc.in/32ejlD1

Former MI6 head: UK in ‘political nervous breakdown’
BBC News
The UK is going through a “political nervous breakdown”, a former intelligence chief has told the BBC. Sir John Sawers said the UK could have a prime minister who does “not have the standing that we have become used to in our top leadership” – a criticism of the two Tory leadership contenders. The former MI6 boss was also critical of Labour leader Jeremy Corbyn. Boris Johnson ally Iain Duncan Smith countered Sir John’s remarks, saying “democracy may well frighten him”.
/bbc.in/2L8c8Py

Miscellaneous

Jeffrey Epstein arrested in US over sex trafficking charges; Federal agents detain billionaire hedge fund manager and search New York apartment
Joshua Chaffin and Kadhim Shubber – FT
Jeffrey Epstein, the billionaire US hedge fund manager and one-time friend of presidents Bill Clinton and Donald Trump, has been taken into custody and, according to multiple media reports, charged with sex trafficking.
/jlne.ws/2XsXkS2

*****WSJ version of this story and the New York Times version.~JJL

Home Depot is swooping into new territory after realizing it underestimated millennials
¡ine Cain – Business Insider
For a while there, millennials had home-improvement retailers like Home Depot a bit nervous. Merchandising EVP Ted Decker told Business Insider that, around five years ago, there were ongoing concerns that post-recession woes and declining home ownership would permanently influence the generation’s relationship with the home-improvement sector. A lot of this jitteriness stemmed from research that indicated millennials weren’t embarking on the “traditional” path of finishing school, getting married, starting a family, moving to the suburbs, and buying a starter home.
bit.ly/2L7CwsL

John Lothian Newsletter

So you want to know what’s happening in the financial markets?We visit more than 100 websites daily for financial news (Would YOU do that?)

“John Lothian and Company… our industry intelligence.”

Rick Lane

CEO, Trading Technologies

Past Newsletters

Chinese censorship is spreading beyond its borders

Get a FREE 90 day trial of John Lothian Newsletter First ReadHits & TakesJLN StaffThe SEC has published two educational videos meant to help people spot and avoid fraud. They are titled "The Too-Good-to-be-True Circus" and "Without a...

Tokyo Stock Exchange head hits out at foreign investment rule

Get a FREE 90 day trial of John Lothian Newsletter First ReadHits & TakesBy JLN StaffI want to thank all the musicians who performed last night at the ALTSO Rocktoberfest and all those who helped make the event a huge success. You did good...

U.S. online brokers still profiting from ‘dumb money’

Get a FREE 90 day trial of John Lothian Newsletter First ReadHits & TakesBy JLN StaffWant to attend tonight's Rocktoberfest for ALTSO, but did not buy a ticket yet? Use "LothianRocks" to unlock 15% off full priced tickets.~JJLThomas J....

Pin It on Pinterest

Share This