Tag: Deutsche Bank

Top banks’ fourth-quarter commodities revenue jumps 20-25 percent: report

Commodities-related revenue at the 12 biggest investment banks rebounded in the fourth quarter due to stronger activity in the energy sector, a report by financial industry analytics firm Coalition said on Monday. Revenue from commodity trading, selling derivatives to investors and other activities in the sector jumped by 20-25 percent in the final three months of 2016 compared with the same period the previous year, it said in a preliminary report, without giving a figure in dollars. The rise was largely due to “structured deal activity in U.S. natural gas and improved conditions in oil trading”, it said. Commodity revenue... continue reading

Barclays’ exit from energy trading stirs concerns over liquidity

(Reuters) By Catherine Ngai & Olivia Oran – British bank Barclays Plc (BARC.L)has joined the list of top banks to exit energy trading, an exodus that analysts say raises concern among oil producers that falling liquidity means they cannot use derivatives for their basic function: to hedge risk by locking in future prices. Wall Street firms have scaled back in commodity markets since the 2008 financial crisis from owning physical assets or taking positions in the market in the face of regulatory scrutiny. The banks were big players in the market for derivatives years into the future. The departure of Barclays... continue reading

Barclays is getting out of energy trading

Reuters is reporting that Barclays, one of Britain’s largest banks, is existing the energy markets, joining others financial institutions such as RBS Sempra and Deutsche Bank who had previously given up on energy. Reuters notes one potentially significant impact of the closing of their energy business: The departure of Barclays exacerbates the scarcity of counterparties for trade when producers are trying to hedge their production for 2018 and beyond, potentially raising the cost to lock in that output. That increase could force cash-strapped producers to forgo protection altogether, putting them at risk if the market takes another leg down. Some... continue reading

The allure of steel

There’s something about steel. Before I joined Steel Business Briefing in 2008, I’d never really known what I wanted to do career-wise. I worked for some good companies, including competitors of Platts (which acquired SBB in 2011), but never really envisaged staying in the price reporting sector. Nothing against it, I was just young and finding my way, armed with humanities degrees that didn’t gear me up for much outside of education. But there’s something about steel. My colleagues Joe Innace and Henry Cooke have more than half a century covering it. Anyone who knows anything about attrition rates in... continue reading

The allure of steel

There’s something about steel. Before I joined Steel Business Briefing in 2008, I’d never really known what I wanted to do career-wise. I worked for some good companies, including competitors of Platts (which acquired SBB in 2011), but never really envisaged staying in the price reporting sector. Nothing against it, I was just young and finding my way, armed with humanities degrees that didn’t gear me up for much outside of education. But there’s something about steel. My colleagues Joe Innace and Henry Cooke have more than half a century covering it. Anyone who knows anything about attrition rates in... continue reading

Oil prices fall to near six-month lows, rattled by China

BY AMANDA COOPER Oil prices fell for a fifth straight session on Tuesday to their lowest in almost six months, as a rout in Chinese equities cast further doubt over the outlook for crude demand in the world’s top commodities consumer. China‘s already-volatile benchmark stock index, with a combined market capitalization of $4.6 trillion, has lost 10 percent in the last two days of trade. Most household debt is linked to real estate rather than the stock market, but with Chinese economic growth struggling to stick at 7 percent, analysts say demand for crude may not be enough to help... continue reading

Banks see second quarter revenue dip from commodities

Pinning down the financial performance of energy commodity trading at top financial institutions is complicated by the manner in which banks segment their operations and lump together certain revenue numbers. While differences exist from bank to bank, for the most part the big banks place commodity trading within their fixed-income unit of their investment bank division. Low commodity prices, less volatility, and thus lower volumes traded, have all had an impact. A review of some of the numbers just released for the second quarter of 2015 at three top banks suggests that commodity trading in Q2 took a big hit.... continue reading

Major banks’ commodities revenue up 9 pct in 2014-report

Feb 19 (Reuters) – Commodities revenue at the top 10 investment banks climbed by 9 percent last year, reversing three years of declines, due to increased activity in energy markets as oil went into freefall, a consultancy said on Thursday. Revenue earned by leading banks from commodity trading, selling derivatives to investors and other activities in the sector rose to $4.9 billion from $4.5 billion in 2013, London-based financial industry analytics firm Coalition said. “Despite significant business downsizing, revenues rose due to increased activity in the energy markets. Meanwhile, metals continued to be impacted by regulatory pressures and weak underlying... continue reading

Citi Is Doubling Up On Commodities Which Should Help Make Profits In The Near Future

From Seeking Alpha. Summary The bank recently bought Credit Suisse‘s commodity books after just bought Deutsche Bank‘s commodity books a few months earlier. The bank is taking a $2.7 billion charge during this quarter to make up for legal costs. A Buffett disciple believes that the bank is undervalued.  When I look at Citigroup Inc. (NYSE:C) as it sits in my portfolio I think to myself that I’m happy with the results I’ve obtained by cherry picking in the name. Currently I have 11.23% gain against an actual 8.85% gain from when I initiated the position had I not added... continue reading

Deutsche quits precious metals trade

Deutsche Bank is pulling out of trading in precious metals, completing the German bank’s retreat from buying and selling physical commodities after being investigated for alleged abuse. Under pressure from regulators and declining profitability, several banks are shrinking or disposing of their businesses in commodities trading, including JPMorgan Chase, Barclays, Morgan Stanley, UBS and Royal Bank of Scotland. “Following on from last year’s decision to exit most of physical commodities, Deutsche Bank’s corporate banking and securities business is reducing its physical commodities business by winding down its physical precious metals trading operations,” the bank said.  “Our financial derivative offering for... continue reading

Citi buys Deutsche commodities trading book in expansion push

Citigroup Inc has bought Deutsche Bank AG’s energy and metals book, a source familiar with the matter said, in the latest sign of expansion from the U.S. firm in commodities trading as rivals retrench. Citi won Deutsche’s oil, metals and power books this summer and autumn, the source said, after a bidding round that saw several Wall Street firms and trading houses chasing the opportunity to take on the positions of a once top-five commodities bank. The deal will help Citi close the gap with top banking rivals in commodities trading, even as some exit the sector under increased regulatory... continue reading

Deutsche fined over 4.7M GBP for trade reporting errors – Is it time to panic? – Some thoughts

Last week the FCA published a final notice against Deutsche Bank fining them just over £4.7 million (after a settlement discount). The fine was for misreporting Equity CFD trades under MiFID for several years. The full notice can be seen here. The misreporting was inadvertent and the matter was rectified as soon as the mistake was uncovered. Never the less the fine was large. The question is, should that cause panic in the energy trading industry, where EMIR reporting has been going for just over six months? The fine was issued for getting the “buy/sell” flag the wrong way round, which is one data reporting field.... continue reading

Deutsche fined over 4.7M GBP for trade reporting errors – Is it time to panic? – Some thoughts

Last week the FCA published a final notice against Deutsche Bank fining them just over £4.7 million (after a settlement discount). The fine was for misreporting Equity CFD trades under MiFID for several years. The full notice can be seen here. The misreporting was inadvertent and the matter was rectified as soon as the mistake was uncovered. Never the less the fine was large. The question is, should that cause panic in the energy trading industry, where EMIR reporting has been going for just over six months? The fine was issued for getting the “buy/sell” flag the wrong way round, which is one data... continue reading

Major banks’ first-half commodity revenue climbs 21 pct

By Eric Onstad LONDON, Aug 28 (Reuters) – Commodities revenue at the top 10 investment banks climbed by about a fifth in the first half of the year as a cold winter boosted business in U.S. power and gas and some investors returned to the sector, a consultancy said. Revenue from commodities for the leading banks rose 21 percent to $3.3 billion in the first six months after falling by a similar percent last year, London-based financial industry analytics firm Coalition said in a report on Thursday. “Despite a sequential decline in 2Q, outperformance was driven by strong revenues in U.S. power & gas on the back of the... continue reading

Deutsche Bank sells N.American natgas book to Morgan Stanley -source

Reuters – Deutsche Bank has sold its North American natural gas trading book to Morgan Stanley , a source familiar with the deal said on Thursday. Deutsche Bank and Morgan Stanley declined to comment. The sale was first reported by energy news portal Sparkspread earlier on Thursday. The portal did not give a value for the deal, saying details were not immediately available. Last month, Morgan Stanley bought Deutsche Bank’s bulk commodities trading book in coal, iron ore and freight forward contracts. The bulk commodities book was one of 17 put up for sale by Deutsche, Germany’s largest bank and... continue reading

Germany’s financial watchdog has warned Deutsche Bank that the lender had insufficient controls

By Alice Ross in Frankfurt Germany’s financial watchdog has warned Deutsche Bank that the lender had insufficient controls in place to prevent manipulation of commodity prices, as commodity markets come under increased scrutiny from global regulators. Deutsche received a letter from BaFin, the German regulator, in April telling the bank it had found faults in the lender’s internal processes around the reporting of commodity prices, according to people familiar with the investigation. The Frankfurt-based lender has now been ordered to do its own investigation to see whether manipulation of commodity prices took place. The development comes just months after Deutsche... continue reading