Deutsche bank could benefit from Trump
Deutsche Bank (DB) stands to be one of the biggest beneficiaries of Donald Trump’s presidential victory. The bank was on the brink of bankruptcy but then saw its stock price spike nearly 20% after Trump’s surprise election victory.
Analyst reports suggest that European banks (EUFN) such as Credit Suisse (CS), Deutsche Bank, and UBS, which have been facing probes with US regulators, will likely have their litigations settled more quickly after Trump becomes president. Trump also appears poised to replace some of the officials in the Department of Justice.
Faster and cheaper settlements
Deutsche Bank, in particular, could reach faster and cheaper settlements with the US Department of Justice once Trump is in office, according to Barclays. Deutsche Bank was asked to pay $14 billion in fine by the US Department of Justice over selling of mortgage-backed securities. The bank already has paid more than $10.5 billion in litigation expenses since 2008 and reported losses last year.
Trump’s plan to roll back banking regulations would also help Deutsche Bank in a major way. A Barclays (BCS) report highlighted that Trump’s policies related to splitting up commercial and investment banking operations would certainly benefit banks like Deutsche Bank, which have pure broker-dealer operations in the United States.
As investors adjust their portfolios according to the election outcome, trading volumes have risen, and banks with large exposure to trading activity.
JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.
The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.
On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.
Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.
Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.
According to Reuters, on May 16, Vale (VALE) told prosecutors that a dam was at risk of rupturing at its Gongo Soco mine.