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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news