Investing.com – European stock markets have been lower since the beginning of trading on Thursday, burdened with new signs of weakness from the region's largest economy and impressed by seemingly positive news both for Brexit, and for the US-Chinese trade war.
The Benchmark fell 1.14 points, or 0.3 percent to 387.42, while the German currency declined by 0.3 percent and the decline by 0.6 percent when the pound rose after the parliament again voted against Brexit. 1
However, the most interesting story there this morning is not about trade. The Financial Times announced that Unicredit (MI), the second largest bank in Italy, is preparing a bid for Commerzbank (DE) as an alternative to the Commerzbank General Union of Germany and Deutsche Bank Shares of Commerzbank rose 2.7%, while Unicredit and Deutsche were 2.1% lower. in a huge opposition from regulators, shareholders and trade unions. None of the bank's leadership looks particularly sharp.
By contrast, a foreign buyer for Commerzbank will have the advantage of not creating such a large bank as to cover the country's regulators. The problem is that this leaves Deutsche Bank, a bank that is already on the radar screens of world regulators, unable to win its way to the world and big enough to cause serious problems with the financial system if it ever gets into trouble.
"No one wants to merge with this bank because you do not know what you're buying," Stephan Müller, CEO of the German shareholders' advisory body, told Bloomberg yesterday yesterday, pointing to unresolved questions about his ties to laundry of money from Scandinavian banks and his close and controversial relationship with Donald Trump before becoming president
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