Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Deutsch Bank disappoints

While you were sleeping: Deutsch Bank disappoints

Jan 21 (BusinessDesk) – Shares of Deutsche Bank sank, taking other regional bank shares lower too, after the company posted an unexpected loss, raising concern that more skeletons might be lurking in the European corporate earnings closet.

Shares of Deutsche Bank dropped 4.3 percent after the German lender also flagged that this year will provide “further challenges”.

“2013 was the second successive year in which we have invested in the bank’s future growth and in further strengthening our controls while addressing legacy issues. These factors impacted our financial results,” Deutsche Bank Co-Chief Executive Officer Jürgen Fitschen said in a statement.

“We expect 2014 to be a year of further challenges and disciplined implementation; however, we are confident of reaching our 2015 targets and delivering on our strategic vision for Deutsche Bank,” according to Fitschen.

Other bank shares in Europe also declined, with Commerzbank sliding 4.5 percent, Banco Popolare dropping 3.1 percent and Credit Suisse falling 2.5 percent.

“The banking sector is reacting to Deutsche Bank,” UBS analysts including Daniele Brupbacher wrote in a report to clients, according to Bloomberg News. “Some pullback and profit taking in the sector is to be expected.”

Overall, expectations are low for Europe’s corporate earnings this season.

Stoxx Europe 600 companies are expected to fall short of consensus estimates by 0.4 percent on revenues and by 0.9 percent on earnings, according to StarMine SmartEstimates, which focuses on the predictions by the most accurate analysts, Reuters reported.

Germany’s DAX fell 0.3 percent. Europe’s Stoxx 600 Index ended the day 0.1 percent down on the previous close, as did France’s CAC 40. The UK’s FTSE 100 rose 0.1 percent.

US markets were closed on Monday for the Martin Luther King holiday.

A report yesterday showed China’s economic growth eased in the final three months of 2013. The country’s gross domestic product climbed 7.7 percent in the fourth quarter from a year earlier, slowing from 7.8 percent in the third quarter. Industrial production gained 9.7 percent in December from a year earlier, less than the 10 percent increase in November.

Opinions were mixed on the Chinese data.

“Growth momentum is clearly weakening,” Dariusz Kowalczyk, senior economist and strategist at Credit Agricole CIB in Hong Kong, told Bloomberg News. “The slowdown became increasingly clear as the quarter progressed.” Expansion will decelerate this year, he added.

But it wasn’t all bad news.

"The economy may be a little more robust than people thought coming into 2014," Tim Condon, an economist at ING Group in Singapore, told Reuters. "I had thought the monetary tightening in 2013 would pose a downside risk. The numbers reduce that downside risk."

Investors will eye the International Monetary Fund’s latest outlook for the global economy, scheduled to be released on Tuesday. Further clues will come from the World Economic Forum which begins on Wednesday in Davos, Switzerland.

On Tuesday the Bank of Japan will start its two-day policy meeting.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news