Germany’s BIGGEST Bank ON BRINK: Deutsche Bank hits RECORD LOW as Merkel rules out bailout

DEUTSCHE Bank shares have reached their lowest level in more than two decades, as fears flare over the troubled firm’s future.

Deutsche’s value has now plunged by more than half this year, as concerns over low interest rates and the struggling eurozone economy also plauge the bank.

Chris Beauchamp, chief market analyst at trading platform IG, said: “The parlous state of Deutsche Bank exploded onto everyone’s radar once again.
“The bank has been limping along for months now, but reports that Angela Merkel may not step in to rescue the bank have sent the shares tumbling, dragging banks across the UK and Europe lower as a result.

“The gut feeling of most investors is that Berlin would be forced to act to avoid the loss of a key institution, but gut feelings do not always make the best trades.”

“While one can understand the reticence of German politicians to bailout yet another bank, particularly in the lead up to an election next year, one has to question the wisdom of articulating that reluctance out loud when markets are already nervous about Deutsche Bank’s capital position.

“It’s akin to a red rag to a bull or a bear given that due to its size Deutsche Bank is arguably too big to fail and markets could well look to test the German government’s resolve on that as we head into next year.”

Full article: Germany’s BIGGEST Bank ON BRINK: Deutsche Bank hits RECORD LOW as Merkel rules out bailout (Express)

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