Deutsche Bank WARNING

[finehoe]

Deutsche Bank WARNING: Fears dismal quarter results will trigger global crash' TOMORROW

Bad news could spark a sell-off contagion that could lead to another global financial meltdown and a bail out by Angela Merkel's government despite her opposition to German state intervention.

Analysts are warning that ultra high frequency trades triggered by machines could lead to a perfect storm and could have serious knock-on effects for other banks exposed to the firm's risky assets book.

Germany's largest lender has been hit by unprecedented sell-offs losing 52 per cent of its value in just a year and is struggling to ward off its crisis.

The bank has announced massive job cuts ahead of a £11.4billion fine from the US Justice Department.

And it has been muted that up to 5,000 jobs could go in America alone.

Now investors, including their biggest stakeholder Qatar, are said to be on edge as they get set to reveal their latest financial data.

Sources say hedge funds are sharpening their claws to make a killing at any cost.

Academic Dean at London Academy of Trading, Paddy Osborn,  said: "It's the high tech hedge funds who will do it.

"Those guys are putting in maybe 50,000 orders into the market every second and they get a very low trade to order ratio, maybe only 20 to 30 get executed in a second and then they all get cancelled and then they put another 50,000 in the next second, it's not something a human being could do.

"The orders are triggered by the movement in the price, so a lot of them are speculating in a trend following type strategy, so if the price starts to move in one direction they want to take a position in that direction.

"It's a simple strategy but it's very, very fast, so if you trigger one order that pushes a price a bit low then that could trigger another and another and that's what caused the flash crash in 2010, and I think it probably contributed to the one we saw last year as well after China spluttered a bit.

"In the US only two per cent of institutions who are trading equities use algorithms but nearly three quarters of the volume is innovated by this two per cent of companies in terms of the number of trades."

http://www.express.co.uk/news/world/725012/Deutsche-Bank-crisis-fears-robot-traders-will-trigger-global-crash

[JeffreyS]

Automated high speed trading, what could go wrong.  I think people should be able to buy and sell interests in companies but why should the Governments of the world make it into an electronic video game.

[spuwho]

Blame it on......

Skynet
Anonymous
WikiLeaks
Snowden
Elvis
Jimmy Hoffa
Hydra

[blfair]

A sensationalized story from the daily express? What is this world coming to.

[Gunnar]

Automated high speed trading, what could go wrong.  I think people should be able to buy and sell interests in companies but why should the Governments of the world make it into an electronic video game.

Gambling would be a more fitting description. I am still amazed how this is allowed...

[Gunnar]

Deutsche Bank WARNING: Fears dismal quarter results will trigger global crash' TOMORROW

Bad news could spark a sell-off contagion that could lead to another global financial meltdown and a bail out by Angela Merkel's government despite her opposition to German state intervention.

Still doubting that because doing so would be political suicide for her and also because of this:

The bank has announced massive job cuts ahead of a £11.4billion fine from the US Justice Department.

I am just speculating, but the outlook of this

And it has been muted that up to 5,000 jobs could go in America alone.

...and could have serious knock-on effects for other (read U.S.) banks exposed to the firm's risky assets book.

May make the justice dept. re-think charging  the usual "stick it to the foreigners" mark-up and instead charge the same fine US banks would have paid.

[BennyKrik]

Very sensationalized story indeed.
FineHoe loves the attention from copy-pasting 'funny' financial stories.
Quite an expert at that....we got an in-house economist over here

[Adam White]

And it has been muted that up to 5,000 jobs could go in America alone.

...and could have serious knock-on effects for other (read U.S.) banks exposed to the firm's risky assets book.

Muted?

[TimmyB]

And it has been muted that up to 5,000 jobs could go in America alone.

...and could have serious knock-on effects for other (read U.S.) banks exposed to the firm's risky assets book.

Muted?

SHHHHHHH!!!

[finehoe]

And it has been muted that up to 5,000 jobs could go in America alone.

...and could have serious knock-on effects for other (read U.S.) banks exposed to the firm's risky assets book.

Muted?

"not expressed strongly or openly"

[Adam White]

And it has been muted that up to 5,000 jobs could go in America alone.

...and could have serious knock-on effects for other (read U.S.) banks exposed to the firm's risky assets book.

Muted?

"not expressed strongly or openly"

Yes, that's an adjective. The word they were going for was "mooted", which is a verb.

[simms3]

http://bit.ly/DeutscheSwings

It's a 10-Q PR piece (WSJ), but nonetheless, for those behind the firewall:

Deutsche Bank's Tier 1 capital ratio, a measure of financial strength, increased to 11.1% from 10.8% in the second quarter. The lender is working to boost that ratio to at least 12.5% by 2018.

PR pieces such as this can cool the market some.  Of course there are hawks, there always have been.  Quotes in the article in the original post from such a variety of sources and written in a style or quoted in a way to "educate" the reader clue me in that this is not on-the-spot business journalism.

I have a feed where I amass articles deep behind firewalls, sort of as a part of my ongoing line of work/previous jobs, and I see nothing urgent.  Algorithms have likely been tweaked in their functionality and trading "IFTT" commands, but I wouldn't get your urgent financial news from that source.  Try paying for a single subscription that may be useful.  I find that Fortune magazine has some of the best daily feeds.  Obviously WSJ or Bloomberg are good too.  Barron's and Economist are not as good for breaking/live content.  There are a bunch of industry feeds/publication services as well.

The ongoing risks to DB are very real, but Germany is sitting on $500 billion in cash.  I have read nothing that indicates we are in for a 2008 again, and since 2008 the world outside of the US has had several version of its own 2008.  Seems every 2-3 years there is a collapse of some sort, with some exposure by our economy, but not enough to bring us into the mix to the extent we were the hub and cause of 2008.