This morning Deutsche Bank shareholders were reminded that CEO John Cryan’s restructuring may only be just starting. The bank’s shares dipped nearly 5 percent after it reported near-zero profit, and a 20-percent plunge in revenue, in the second quarter. Its share price has already almost halved this year. Cryan indicated deeper cuts may be in the offing, but those may do little to right the ills of struggling core areas like investment banking. Germany’s largest financial institution has morphed into its biggest source of risk.
Volkswagen these days is like a patched bicycle inner tube: Each time one hole is plugged, air escapes from another. While management in Wolfsburg rejoiced over California’s decision yesterday to accept the carmaker’s $14.7 billion U.S. compensation plan, a suit filed by a diesel owner in Ireland may pave the way for big damages in Europe, where eight of 11 million cars with VW’s cheat software are parked. Irish courts could compel VW to open its books and make embarrassing revelations, an event Wolfsburg has no interest in making happen.
Berlin has been Germany’s financial stepchild since reunification. But with record tourism and 50,000 new jobs last year, the capital’s economy has been gathering steam ahead of state elections this September. But will voters care? Handelsblatt Global’s editor in chief, Kevin O’Brien, spoke with the city’s finance senator, Matthias Kollatz-Ahnen, about the brightening mood in a popular city that never generates a budget surplus. Watch the interview
Osram has said goodbye to the lightbulb, its one-time reason for being. The former Siemens unit sold its traditional lighting business for €400 million to a consortium around a Chinese LED specialist, MLS. Chief executive Olaf Berlien is separating Osram from 40 percent of its annual sales, and can now take the money and hunt for Chinese competitors to chomp up the rest.
Is Jill Stein the new Bernie Sanders? In an interview with Handelsblatt, the Green Party candidate for U.S. president aims for a record showing by stealing disaffected Democrats from Hillary Clinton. Even though Clinton clinched her nomination last night, Stein believes the former First Lady’s email scandal, which showed how Sanders was knocked out “through backstabbing and sabotage,” will boost her own prospects. As we’ve learned from this campaign – which has produced two of the most unpopular candidates ever – anything is possible.
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