29.06.2020 DAX Daily Analysis
Germany’s new generation of finance firms isn’t all it claimed to be doesn’t make the old generation any better. The news agency reported that the new plans drawn up by under-fire chief executive Martin Zielke may be discussed at a supervisory board meeting in the middle of the week To a large degree, this can be seen simply as a howl of pain from an investor that is just ‘long and wrong’. Cerberus bet on Commerzbank back in 2017, when the outlook for the eurozone economy was much brighter and it was easier to believe that the massive discounts offered Commerzbank shares rose more than Deutsche Bank shares on Monday, gaining 2.9% to Deutsche’s 1.8% (the benchmark DAX rose 0.5%, while the Stoxx 600 eked out a 0.1% gain). However, the ultimate benefit of any pruning at Commerzbank in the near term will more likely accrue to Deutsche’s shareholders in the long run by banking shares could be closed by growth and sector rationalization.