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Deutsche Bank CEO Sees Slowdown in Trading Activities in 2H20

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Deutsche Bank’s (DB - Free Report) CEO Christian Sewing expects to see a decline in trading activities in the second half of 2020, as the coronavirus outbreak-related concerns gradually ease, per a Bloomberg article. Also, debt capital markets are likely to witness a slowdown in the near term.

In the first quarter, the German lender’s trading division benefitted from the rise in volatility due to the coronavirus pandemic. The momentum continued in second-quarter 2020 as well. Also, with the surge in debt issuances in the first half of 2020, the company’s securities unit flourished.

“The investment bank is clearly on track,” the article quoted Sewing. He also told that in the second half “there will be for sure a little bit of slowdown” based on the fact that the factors that provided a boost in early 2020 will not be repeated.

It has been a year since the bank announced its radical restructuring targets to improve its profitability and make it more competitive among peers. Recently, it has taken some major moves in order to bolster its technology, such as partnering with Google Cloud, to better serve clients with innovative solutions.

Sewing said, “Google Cloud will not only provide us with cutting-edge cloud services, but will also help us develop further products that will create value for our clients. With access to cloud technology, as well as to artificial intelligence and advanced data analytics, we can drive even more precise risk management, create new business models, reduce costs and offer new opportunities to collaborate with our clients.”

Shares of the company gained 14% over the past six months against the 30.2% decline recorded by the industry.

 

 

Deutsche Bank currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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