Deutsche Bank’s capital levels
Deutsche Bank (DB) is proving to be the most dangerous bank for the global economy. It failed the Fed’s 2016 stress tests in June 2016. The bank’s stock fell nearly 25% in 2016. Capital reserves are important because they help restore regulators and investors’ confidence. IMF labeled it as the “riskiest bank” to the global economy after it failed to meet 2016 capital requirements.
A closely tracked measure of financial strength, the Common Equity Tier 1 Capital Ratio rose to 11.1% in September from 10.8% in the previous quarter. Deutsche Bank set a target of 12.5% for the Common Equity Tier 1 Capital Ratio by the end of 2018. While Tier 1 capital is still within the current regulatory minimum, it’s below the ratio required by 2019. European counterparts (EUFN) such as Credit Suisse (CS), UBS, and Royal Bank of Scotland (RBS) have been struggling to build capital reserves to meet regulatory requirements.
Investors who are concerned about Deutsche Bank's bankruptcy are looking at CEO John Cryan’s plan to restructure the company’s operations.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.