Investors who are concerned about Deutsche Bank’s bankruptcy are looking at CEO John Cryan’s plan to restructure the company’s operations to regain its profitability. Many analysts think that its overhaul plans aren’t reaping the kind of benefits that were envisioned. Slowing economic growth along with all-time low interest rates are troubling the lending business and energy loans are going bad. Also, strict regulations mean added legal and compliance costs for the banks. Regulations are putting additional pressure on the bank’s top line.
In October 2016, Cryan announced plans to reduce the workforce nearly 25%. Recently, the bank cut senior management’s bonuses. Despite Cryan’s attempts, investors still aren’t convinced about his ability to get the bank back on solid ground. Deutsche Bank’s (DB) credit default swaps, a contract that provides protection against a bond default, has nearly doubled and share prices are at all-time low levels.
Under its “Strategy 2020” announced in 2015, the company scrapped plans to pay dividends for the next two years and cut 35,000 jobs as part of its plans to revive the bank. The bank also said that it would cut operations in ten countries. It would cut its investment banking clients by 50% claiming that 80% of the revenues come from only 30% of the clients. It would simplify its legal structure and eliminate ~90 legal entities. Cryan has been under pressure to overhaul the bank (EUFN) after litigation expenses pushed the bank’s valuation much lower than its rivals Credit Suisse (CS), UBS, and Royal Bank of Scotland (RBS).
CMS is expected to earn $0.29 per share for the quarter ended December 31, 2016. CMS earned $0.38 per share in the fourth quarter of 2015.
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.