{"id":35627,"date":"2018-06-29T08:49:43","date_gmt":"2018-06-29T13:49:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=35627"},"modified":"2018-06-29T08:49:43","modified_gmt":"2018-06-29T13:49:43","slug":"failing-deutsche-bank-may-be-kicked-out-of-key-european-index","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=35627","title":{"rendered":"&#8220;Failing&#8221; Deutsche Bank May Be Kicked Out Of Key European Index"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-06-29\/failing-deutsche-bank-may-be-kicked-out-key-european-index\"><span class=\"field field--name-title field--type-string field--label-hidden\">&#8220;Failing&#8221; Deutsche Bank May Be Kicked Out Of Key European Index<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\" data-gtm-vis-recent-on-screen-2077925_22=\"1624\" data-gtm-vis-first-on-screen-2077925_22=\"1624\" data-gtm-vis-total-visible-time-2077925_22=\"100\" data-gtm-vis-has-fired-2077925_22=\"1\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>One day after Deutsche Bank&#8217;s US operations failed the Fed&#8217;s &#8220;stress test&#8221;, it appears that this outcome had been priced in by the market as DB&#8217;s stock price rose as much as 3% in early Friday trading&#8230;<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/DBK%206.29.jpg?itok=L5zKEQ0R\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/DBK%206.29.jpg?itok=L5zKEQ0R\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/DBK%206.29.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/DBK%206.29.jpg?itok=L5zKEQ0R 1x\" alt=\"\" width=\"500\" height=\"258\" data-entity-type=\"file\" data-entity-uuid=\"10ec50a1-2f59-4443-a7c2-2fd30d11ad28\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>&#8230; although looking slightly higher in the capital structure reveals ongoing skepticism, with the yield on DB&#8217;s 6% contingent convertibles rising, and set to hit 10% any moment.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-06-29%20%281%29.jpg?itok=w4JB6HqT\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/2018-06-29%20%281%29.jpg?itok=w4JB6HqT\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-06-29%20%281%29.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/2018-06-29%20%281%29.jpg?itok=w4JB6HqT 1x\" alt=\"\" width=\"500\" height=\"266\" data-entity-type=\"file\" data-entity-uuid=\"1fd83719-d854-461f-9762-076f79490409\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>However, much to the chagrin of investors in the biggest European lender, the barrage of bad news facing Deutsche Bank is not nearly over, and as the <a href=\"https:\/\/www.wsj.com\/articles\/deutsche-bank-in-relegation-zone-as-index-reshuffle-looms-1530271618?mod=hp_major_pos20\">WSJ reports<\/a>, the sharp drop in DB&#8217;s stock price could mean the exit from a major European index, jeopardizing its inclusion in the giant funds that track that benchmark, and assuring new all time lows as mutual fund liquidate their holdings.<\/p>\n<p>The issue is that DB&#8217;s share price has dropped by more than 40% this year, as it struggles with falling profitability and other legacies of pre-financial crisis exuberance; the price is so low in fact, it would no longer be included in one of Europe&#8217;s most important inidices if there were no changes for the next 2 months.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/DBK%20vs%20stoxx.jpg?itok=Cr1PzIrP\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/DBK%20vs%20stoxx.jpg?itok=Cr1PzIrP\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/DBK%20vs%20stoxx.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/DBK%20vs%20stoxx.jpg?itok=Cr1PzIrP 1x\" alt=\"\" width=\"500\" height=\"444\" data-entity-type=\"file\" data-entity-uuid=\"1a606df9-7215-431a-a693-90974e1a5cff\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>According to WSJ calculations, <strong>Deutsche Bank\u2019s market capitalization has fallen to a level that would see it removed from the Euro Stoxx 50, <\/strong>taking the lender out of the orbit of exchange-traded-funds with \u20ac42.5 billion ($49.1 billion) in assets that follow this index.<\/p>\n<p>Still, an expulsion from the index is not assured, as a large bout of buying could save Deutsche Bank\u2019s place in the index when it is rejigged in September, &#8220;but its presence in the relegation zone is a dramatic indicator of the once-European banking champion\u2019s fall from grace.&#8221;<\/p>\n<p>Some more details on the Stoxx 50, one of the most popular European aggregate indices:<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Failing&#8221; Deutsche Bank May Be Kicked Out Of Key European Index One day after Deutsche Bank&#8217;s US operations failed the Fed&#8217;s &#8220;stress test&#8221;, it appears that this outcome had been priced in by the market as DB&#8217;s stock price rose as much as 3% in early Friday trading&#8230; &#8230; although looking slightly higher in the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1839,20736,20737,303,3650,4318],"class_list":["post-35627","post","type-post","status-publish","format-standard","hentry","category-economics","tag-deutsche-bank","tag-euro-stoxx-50","tag-european-stock-market","tag-fed","tag-us-federal-reserve","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35627"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35627\/revisions"}],"predecessor-version":[{"id":35628,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35627\/revisions\/35628"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}