Breakingviews

Viewsroom: U.S. election, European banks, Uber-Didi

August 8, 2016

Hillary Clinton and Donald Trump battle over infrastructure needs, while Trump faces growing opposition from fellow billionaires. Also: the ups and downs of Europe's lenders after a stress test with no fail grade, and why Uber is ceding to Didi the ride-sharing crown in China.

Credit Suisse investment bank decline will persist

May 10, 2016

The Swiss bank cut costs briskly while keeping capital levels steady in the first quarter. Net margins in wealth management also outdid bigger rival UBS. But boss Tidjane Thiam’s botched restructuring of Credit Suisse’s trading arm is in danger of leaving lasting scars.

Deutsche Bank upgrades from dire to depressing

April 28, 2016

The German lender made first-quarter earnings of 236 mln euros, confounding forecasts for a loss about that size. But Deutsche’s capital position fell, return on equity was just 1.4 pct and the only bit that really beat revenue expectations was Postbank, which is on the block.

Deutsche makes investors offer they should refuse

February 12, 2016

The German bank is offering to buy back 5 billion euros of bonds. A big take-up means more capital for Deutsche, but could also imply a lack of confidence in the bank’s solvency. Given the potential for bond prices to snap back, it may be better for investors to sit it out.

Deutsche has enough capital but not enough clarity

February 10, 2016

The German lender’s solvency is strong enough to withstand the most likely clouds on the horizon. But Deutsche Bank’s 1.4 trln euro balance sheet is opaque and stuffed with derivatives. Boss John Cryan could deliver relief by opening up on its oil and other exposures.

Deutsche hybrids: from poster boy to problem child

February 9, 2016

The German lender has moved to reassure investors fretting about delayed coupons on its new AT1 securities, after CDS prices collapsed. Unlike hybrid forebears in 2008, AT1s should absorb losses. Yet instead of dampening volatility, the fear of a trigger is exacerbating it.

Deutsche’s fat finger points in helpful direction

October 20, 2015

Germany’s biggest bank erroneously paid $6 bln to a hedge fund client in June. Howlers like this are common in trading. But this is embarrassing for Deutsche Bank given its supposed aptitude. At least co-CEO John Cryan may find it easier to pursue some much-needed trimming.

Barclays, Credit Suisse, Deutsche: which to back?

October 19, 2015

Three of Europe’s top four investment banks have new leadership bent on strategic change. Deutsche Bank’s task is hardest: its top line relies most on low-return trading activity. Credit Suisse’s equities prowess and headstart over Barclays in finding a new CEO give it an edge.

Deutsche Bank’s shake-up puts stick before carrot

October 19, 2015

Four top executives, including co-head of investment banking Colin Fan, are leaving amid a split of the German lender’s securities and asset-gathering businesses. It should address past failings and improve future accountability. The next task: making sure the good people stay.

Wall Street lead over EU banks looks set in stone

June 17, 2015

European trading and advisory revenue is down 30 pct since 2010 while U.S. investment banking has grown. Now Deutsche Bank and HSBC are cutting further, even more ground will be ceded. The region’s tentative recovery and capital markets project offer only slim hope of a reversal.