Deutsche Bank announces major overhaul of investment bank

Deutsche Bank’s cuts to its bond and equities trading will focus on the US and Asia. (Reuters)
Updated 26 April 2018
0

Deutsche Bank announces major overhaul of investment bank

FRANKFURT: Deutsche Bank on Thursday announced cuts to its bond and equities trading in a major overhaul of its troubled investment bank after posting a 79 percent drop in net profit in the first quarter.
The cuts will result in job losses and include a scaling-back of its business with hedge funds. The bulk of the cuts will focus on the US and Asia.
The cuts are a move to become a more corporate-led bank and a return to the bank’s origins after rampant growth across the globe over past decades.
“Deutsche Bank is deeply rooted in Europe – here we want to provide our clients access to global financing and treasury solutions,” said Chief Executive Officer Christian Sewing. “This is what we will focus on more decisively going forward.”
The reduction in headcount is “painful but regrettably unavoidable to ensure our bank’s competitiveness in the long run,” he said.
Germany’s flagship lender fell short of expectations of analysts in the first quarter. Net income of €120 million was below the forecasts of net income of €379 million, according to a Reuters poll.
It was also below the €575 million posted in the first quarter of last year.


Apple’s Cook to China: keep opening for sake of global economy

Updated 23 March 2019
0

Apple’s Cook to China: keep opening for sake of global economy

  • Cook’s comments come as Apple weathers sinking sales in China
  • Despite official pledges and repeated assurances that China would continue to open its markets

BEIJING: Apple chief executive Tim Cook nudged China on Saturday to open up and said the future would depend on global collaboration, as the United States and China remained locked in a bitter trade dispute.
“We encourage China to continue to open up, we see that as essential, not only for China to reach its full potential, but for the global economy to thrive,” Cook said at a China Development Forum in Beijing.
Despite official pledges and repeated assurances that China would continue to open its markets, some analysts worry that its reform project has slowed or even stalled under President Xi Jinping, who has sought greater control over the economy and a bigger role for state-owned firms at the expense of the private sector.
Cook’s comments come as Apple weathers sinking sales in China because of a contracting smartphone market, increasing pressure from Chinese rivals, and slowing upgrade cycles. The company reported a revenue drop of 26 percent in the greater China region during the quarter ending in December.
Before those results came out, in a January letter to investors, Cook blamed the company’s poor China performance on trade tension between the United States and China, suggesting that pressure on the economy was hurting sales in China.