On Saturday, German bank, Deutsche Bank announced it will exit its equities sales and trading business and cut 18,000 jobs by 2022. The moves come as part of a major strategic transformation and restructuring plan. The bank will implement a cost reduction program to reduce costs to 17 billion euros ($19 billion) in 2022, targeting a cost-income ratio of 70 percent in that year, and expects the move to cost the company 7.4 billion euros ($8.3 billion). Deutsche Bank will now focus on it’s equity capital markets operation and plans to resize its fixed-income operations while reducing its risk-weighted assets related to those businesses by about 40 percent. Over the past few years, the bank has been mired in controversy and scandal, paying billions for financial misconduct. It paid $7.2 billion in a settlement with the U.S. Justice Department for misleading investors in the sale of mortgage backed securities. Two years earlier, the bank paid a $2.5 billion settlement to regulators in the U.S. and U.K. for manipulating interest rates.
Saudi Arabia’s flyadeal is terminating a prior order for Boeing’s 737 Max jets and switching to European rival Airbus. The cancellation in the latest blow to the Chicago-based manufacturer as it seeks to return the fleet to flight after two fatal crashes. The budget airline, which announced its order of 50 Max jets, will instead purchase 50 of Boeing’s rival Airbus A320neo narrow-body jets. Deliveries for the nearly $6 billion deal will begin in 2021 and will eventually lead to Airbus A320 being the exclusive jet for the carrier. While orders for Boeing’s Max jet have been stagnant since the fleet was grounded earlier this year following the two fatal crashes, did notched a key order from British Airways parent International Consolidated Airlines Group SA in June. Boeing had previously cut monthly production rates for the Max airliner as it works with the Federal Aviation Administration and global regulators to obtain approval for the fleet to begin flying again.
Asia: Asian stocks closed lower on Monday amid dampened expectations for Fed to slash interest rates
Europe: European shares broke a six-day winning streak on Friday as poor German data and a strong U.S. jobs data saw investors trimming bets of an aggressive rate cut by the U.S. Federal Reserve this month.
U.S: U.S. markets closed lower on Friday and Treasury yields jumped after a better-than-expected June jobs report clouded expectations of an imminent interest-rate cut by the Federal Reserve. DJIA: -43.88 26922.12, S& P 500: – 5.41 2990.41 NASDAQ: -8.44 8161.79.
Word Of The Day:
A weighted index which tracks the US Dollar against a basket of other world currencies.
Dinner or Drink:
1 1/2 oz. Bananas Over You® liqueur
1/2 oz. DeKuyper® Buttershots liqueur
13 oz. semi-skimmed milk
Hershey’s® chocolate syrup
1 maraschino cherry
Combine the first 3 ingredients together in a cocktail shaker with ice. Shake until frothy.
Decorate a tall glass internally with swirls of Hershey’s Chocolate Syrup and strain the shaker mixture into glass without ice.
Top with whipped cream and garnish with maraschino cherry. Serve with a straw.