Deutsche Bank stock soars 14% as investor takes stake


So I'm looking at Deutsche Bank here stock is up a little more than ten percent today fifty two week high in part because of some news that Deutsche Bank that capital group is taken a three percent stake in Deutsche Bank so Steve errands Bloomberg news from Deutsche a bank from Germany once you don't what does it really mean here for Deutsche Bank had the stock has been so beaten down so what does it really mean for them yeah it's a five minute show it's I think it's I mean the share price says it all it's a big boost for the CEO unveiled a very ambitious turnaround plan last year people at first didn't believe the plan the stock actually had an all time low just in August but for some reason he he's given people more faith in his play in his own performance and to actually unveiled pretty good numbers for a week and that has really boosted to share and the decision by capital group now highlights how investors seemingly take take faith in the plan and a willing to put the money on it the store owner let's be sure folks is not an index fund purchase like vanguard or State Street in the others is an active manager going in is it perceived there Steve almost like a sovereign wealth fund purchase it's certainly something as you said this is a very very sophisticated investor it's an investor that will look at its target for a long time before making a decision we've been told they were actually here in Frankfort on the investor day in December people from capital group and spoke with the CEO and other people of the bank to make sure they're invest would pay pay off the and I think that has happened to them it's the it's a very very well and well thought through death when I think so Steve what is investors believe that Deutsche Bank has to execute on first and best what the house what what they like first of all is that day they've been managing through this deeper structuring without dipping too deeply into the couple questions so capital strength financial strength is better than initially expected and that's a big positive trading which is still one of the two banks traditional strength was impacted less than many people had feared and is now serving shows you can lease them the revenue decline in other parts of the business then you know we may even seem right we'll see what I want to replace also idealised hearing in trouble John Nichols way but I'm gonna cut to the chase does precluded torture bring cash call that's all this comes down to the big fear is David to go back to the well to Qatar and the others to to you know recharge the ballot she is that out of the way now I think that's part of the reasons why people are now willing to commit more money to it because the the less than expected and kapple the regulatory capital means it's now likely to manage to that more likely than before that they will be able to manage to the restructuring without having to ask shareholders for more money and see I guess the other issue out there is is there any type of merger that might be on the horizon for Deutsche Bank well you probably know they went into formal talks with the other German bank Commerzbank last year and that didn't go anywhere sure I'm pretty sure and setting his sights on the record they will not allow the consolidation but I think it's highly unlikely for now but I mean it's pretty close something that seven would like to do one one the bank stronger very good seeders thank you so much greatly appreciated from front for here's capital group Los Angeles dives into a significant position on

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