Currencies

Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

Continue Reading

Property

Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

Continue Reading

Currencies

Euro suffers worst month against the pound since financial crisis

Political risks are still all the rage in the currency markets. The euro has suffered its worst slump against the pound since 2009 in November, as investors hone in on a series of looming battles between eurosceptic populists and establishment parties at the ballot box. The single currency has shed 4.5 per cent against sterling […]

Continue Reading

Banks

RBS falls 2% after failing BoE stress test

Royal Bank of Scotland shares have slipped 2 per cent in early trading this morning, after the state-controlled lender emerged as the biggest loser in the Bank of England’s latest round of annual stress tests. The lender has now given regulators a plan to bulk up its capital levels by cutting costs and selling assets, […]

Continue Reading

Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

Continue Reading

Categorized | Banks, Financial

US banks take top 5 slots in league table


Posted on September 23, 2016

BERLIN, GERMANY - FEBRUARY 09: People walk past a branch of Deutsche Bank on February 9, 2016 in Berlin, Germany. Shares of Deutsche Bank rose 16% on the Frankfurt stock exchange on February 10 following rumours the bank may announce a bond buy-back initiative. (Photo by Sean Gallup/Getty Images)©Getty

US banks have achieved a clean sweep of the top five places in global investment banking for the first time in at least six years after Deutsche Bank retreated to sixth place in the industry’s benchmark league table.

The data, compiled by industry monitor Coalition, includes revenue banks make from markets activities, such as equities and fixed income, as well as the traditional investment banking business of advising clients and helping them access finance.

    Morgan Stanley’s rise to fifth place marks the first time that US banks have monopolised the league tables since Coalition began the series in 2011, and highlights the country’s dominance of investment banking since the financial crisis.

    Deutsche’s slide to sixth place is not unexpected — the lender was traditionally in the world’s top three investment bank slots but lost that accolade last year as John Cryan, the then new chief executive, embarked on a tough restructuring.

    Coalition’s data show that the bank lost most ground in fixed income, currencies and commodities trading, where Deutsche was a top three operator last year but fell to sixth in the first half of 2016. The bank also lost ground in equity capital markets.

    Deutsche said: “The Coalition results reflect the strategic decisions we have taken to streamline our products, geographical footprint and client base. These decisions impacted first-half revenues but will make us more efficient and profitable. We remain the leading non-US investment bank globally and a top two player in Emea.”

    Senior bankers privately admit that the internal turmoil at Deutsche in recent years has distracted bankers from their day-to-day business, but they say this is now fading.

    They also say that while it will take time for the bank’s 2015-2020 transformation to bear fruit, they remain optimistic that the German lender can recover at least some of the ground it has lost.

    However, the setbacks keep coming, including last week’s revelations that the US Department of Justice has put an initial price tag of $14bn on settling allegations that Deutsche mis-sold US mortgage bonds, which sent the bank’s shares down more than 7 per cent in just a few hours.

    That kind of news hits Deutsche’s investment bank disproportionately because large clients worry about the counterparty risk of doing business with a bank that could see its own capital position deteriorate sharply on the back of a large fine.

    Credit Suisse, the other large European investment bank that is in the middle of a significant restructuring, also suffered in the first half of the year, slipping from seventh to eighth, swapping places with Barclays.