Royal Bank of Scotland Group (The) PLC

2016 has mostly been about macro trends, thus presenting a different set of challenges for active fund managers who mostly focus on companies rather than economic and sector trends.

With household spending gathering pace, it could be an important growth driver for the United Kingdom’s economic growth.

Mario Draghi, president of the European Central Bank, reaffirmed the ECB’s plan to provide a fresh monetary stimulus in December to boost inflation in the region if needed.

European stocks (VLKAY) (RENX) (RBS), like others across the world, have been whiplashed by volatility so far 2016.

Shares of Deutsche Bank (DB) have fallen nearly 10% in the last three trading sessions. Efforts to reassure investors about its ability to pay coupons on its AT1 bonds were in vain.

Investors lost confidence due to the uncertainty surrounding the vote, which led to the expectation of the other member nations’ following in the United Kingdom’s footsteps.

In the trailing-one-year period, PRESX has returned -0.9% while from November’s end until December 22, the fund has fallen 5.0%.

The situation for the pound sterling in 2016 is similar to the US dollar’s situation in 2015. The markets are expecting a rise towards mid-2016.

Let’s now take a look at specific risks that could arise for businesses as a consequence of Brexit.

After the Brexit decision, services were a positive factor, while production ended up to be a drag on GDP.

Germany-based Deutsche Bank (DB) announced plans to cut dividend payments for 2015 and 2016 as part of its plans to strengthen the bank’s capital.

Deutsche Bank (DB) reported its fourth quarter earnings on February 2, 2017. The distressed bank reported 4Q16 losses of 1.9 billion euros, which missed analysts’ forecasts.

Gorman was disappointed with the UK’s decision to leave the European Union. The UK’s referendum had some immediate effects on the markets (VGK) (HEDJ).

Investors who are concerned about Deutsche Bank’s bankruptcy are looking at CEO John Cryan’s plan to restructure the company’s operations.

Deutsche Bank is proving to be the most dangerous bank to the global economy. It failed the Fed’s 2016 stress tests in June 2016.

Deutsche Bank’s stock is down nearly 40% in 2016 so far. Capital reserves are important to restore the confidence of regulators and investors.

Germany-based Deutsche Bank (DB) cut its dividend payments for 2015 and 2016 as part of its plans to strengthen the bank’s capital.

Last week, the movement in investment-grade bond yields was driven by Brexit. Investment-grade bond yields fell for the week ending June 24.

Average revenue per user (or ARPU) is a key metric for Internet companies, as it helps in analyzing how well a company can monetize its user base.

DoubleLine’s chief executive officer Jeffrey Gundlach wrote in an e-mail that the Fed is “signaling economic data are sufficiently robust to warrant a rate increase.”

The Franklin Mutual European Fund – Class A (TEMIX) fell sharply by 6.5% in 1Q16, placing it second to last among the 12 funds in this review. In the past one year, TEMIX has fallen 13.2%.

The T. Rowe Price European Stock Fund (PRESX) fell 4.5% in 1Q16, making it a below-average performer among the 12 funds in this review. In the past one year, the fund has fallen 7.5%.

The rise in the pound-dollar pair’s implied volatility has been a strong 26% compared to a fall of 10.5% in the euro-dollar exchange rate volatility.

The T. Rowe Price European Stock Fund did not have a good 2015. It ranked eighth for the year among the ten funds in this review.

High-yield bonds, also known as Junk bonds, have an iffy repayment ability, even if they are at the higher end of the junk rating scale.

VWEHX looks like one of the safest funds to be around in case liquidity dries up temporarily. The fund mainly avoided investing in the deep end of the junk category.

The United Kingdom will hold a referendum by the end of 2017. It will decide whether to stay in or leave the EU. The referendum is a nationwide voting system.

The British pound fell sharply against the US dollar on December 2, 2015, due to negative manufacturing and construction PMIs for the month of November.

Market analysts say US investors feel largely protected from Greece’s financial woes, though its troubles have sent jitters through global markets.

Citizens Financial Group is a retail bank holding company. It posted fourth-quarter net income of $197 million, up from $152 million.