|Bid||8.55 x 3000|
|Ask||8.56 x 1000|
|Day's Range||8.48 - 8.56|
|52 Week Range||6.44 - 9.47|
|Beta (5Y Monthly)||1.63|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||May 18, 2017|
|1y Target Est||6.29|
Deutsche Bank paid $1.1m to secure the wealth management business of a senior Saudi royal, according to an internal probe that led to two former staff being reported to criminal prosecutors. The scandal in the wealth management division, which involved payments to the wife of the royal’s financial adviser, highlights the legal and reputational risks to a unit that is central to the German bank’s turnround hopes. The money transfers were arranged in 2011 and 2012 alongside other perks for the adviser’s family, including an internship and a seminar at a Swiss ski resort, according to the results of the probe, seen by the Financial Times.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Deutsche Bank AG’s long-suffering shareholders have seen a little relief in 2020 as the lender’s stock price outpaced all European peers since the beginning of the year.Germany’s largest lender raced to a gain of 13.6% in Frankfurt trading as of Friday, compared with a slight decline for the continent’s banking industry as a whole. The shares also hit the highest level since Deutsche Bank broke off merger talks with cross-town rival Commerzbank AG in April.Concern about a potential recession in Deutsche Bank’s German home market has abated recently, lifting one potential cloud over the lender’s performance. The bank also indicated in December that its fixed-income trading unit will report rising revenue for the fourth quarter, snapping a long streak of consecutive declines.The rebound comes even as the bank recently lost its last remaining buy rating. That marked the first time since Bloomberg started collecting the information that all equity analysts covering the lender recommend either selling or holding the stock.Still, the share price falls far short of where it stood when Chief Executive Officer Christian Sewing took over less than two years ago.To contact the reporter on this story: Steven Arons in Frankfurt at firstname.lastname@example.orgTo contact the editors responsible for this story: Dale Crofts at email@example.com, Ross LarsenFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Amazon (AMZN) has faced scrutiny from politicians and labor leaders, who accuse the company of exploiting its dominant position unfairly. Investing in GE stock comes with considerable risks—especially the costs of the company’s pension plan and its long-term care insurance business.
Deutsche Bank on Friday appointed https://www.db.com/newsroom_news/2020/sigmar-gabriel-nominated-to-join-deutsche-bank-s-supervisory-board-en-11462.htm former German government minister Sigmar Gabriel, who once criticized the lender for a business model built on speculation, to its supervisory board. Deutsche Bank, reeling from a series of scandals and years of losses more than a decade after the onset of the global financial crisis, is seeking to repair relations with Berlin. The former head of the Social Democratic Party (SPD) replaces Juerg Zeltner, who has stepped down after regulators rejected his appointment because of a conflict of interest.
Deutsche Bank has picked German political heavyweight Sigmar Gabriel to join its supervisory board, with the former foreign minister taking the place of another nominee who faced a likely veto by regulators. Social Democratic party politician Mr Gabriel, 60, is well known in Germany after serving as foreign minister from 2017-18, and before that as economic minister.
(Bloomberg) -- Deutsche Bank AG and a Singapore based hedge fund bought more debt of an embattled Indian shadow lender, highlighting the growing foreign interest in the discounted assets of the financier at the center of a credit crisis.Deutsche Bank has almost doubled the debt it holds of Altico Capital India Ltd. to 3 billion rupees ($42.1 million) in the last four months, while Singapore-based Broad Peak Investment Advisers Ltd. has acquired debt of about 1 billion rupees, people familiar with the matter said.The German lender is now a member of the steering committee of creditors driving Altico’s debt restructuring, the people said, asking not to be identified as the information isn’t public.Deutsche Bank AG used its larger holding of Altico’s debt to lead pushback against a proposed asset swap, which it said would be conducted in a non-transparent manner and benefit some lenders more than others, according to a person with direct knowledge of the matter. Several other creditors also supported Deutsche Bank’s position, the person said.Total bids for the asset swap plan ended up covering between 6 billion rupees to 10 billion rupees -- undershooting the 12 billion rupee target based on initial feedback from some interested creditors, another person familiar said.However, interest in purchases of Altico’s debt has been increasing, even as certain potential bidders for the delinquent financier shy away from an auction process to sell the firm. A shareholder sponsored restructuring plan and an asset swap plan supported by some creditors are also under consideration to salvage Altico.Altico’s debt had been traded several times over the last few months, as creditors including another local shadow bank Bajaj Finance Ltd., and Abu Dhabi Commercial Bank PJSC sold their holdings, one of the people said. The most recent trade was made at almost half the face value when Abu Dhabi Commercial sold its holding in December, the people said.Spokesmen for Deutsche Bank, Broad Peak and Altico declined to comment while representatives for Abu Dhabi Commercial and Bajaj Finance didn’t respond to emails seeking comment.(Updates with Deutsche Bank creditor pushback details from fourth paragraph)\--With assistance from Denise Wee.To contact the reporters on this story: Bijou George in Mumbai at firstname.lastname@example.org;Rahul Satija in Mumbai at email@example.comTo contact the editors responsible for this story: Andrew Monahan at firstname.lastname@example.org, Anto Antony, Jeanette RodriguesFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Speaking in a debate at the World Economic Forum in Davos, Christian Sewing reiterated his commitment to maintaining “a material and very important” presence in the U.K.
(Bloomberg) -- U.S. prosecutors are starting to build cases against traders suspected of manipulating markets as long as a decade ago, after an obscure legal ruling extended the statute of limitations for spoofing cases.In October, the judge presiding over the impending trial of two former metals traders ruled that the U.S. government can pursue charges of wire fraud as well as spoofing against the pair. The decision addressed a long-running legal debate about whether the placing of electronic market orders with the intention of canceling them constituted a form of “false representation” and therefore fraud.For James Vorley and Cedric Chanu, the former Deutsche Bank AG traders on trial, it was an unwelcome development as they prepare to go to court in May. But the ruling has wider ramifications, because wire fraud, when perpetrated against a financial institution, is subject to a 10-year statute of limitations compared with just five for spoofing.Cases involving conduct older than five years are already under way, according to people familiar with the matter.“The Department of Justice pushed for wire fraud simply to expand the statute of limitations, and people are concerned by that,” said Gary DeWaal, a financial markets defense lawyer at Katten Muchin Rosenman LLP in New York. “People wonder, ‘Why did Congress enact a provision on spoofing with its own statute of limitations if the Department of Justice view is it can just go and do something else?’”Justice Department spokesman Peter Carr declined to comment.Spoofers place and then cancel large numbers of buy or sell orders with the aim of deceiving other market participants about supply and demand. Stamping out the practice has been a priority for the Justice Department and the Commodity Futures Trading Commission since new rules prohibiting the practice came into force in 2011.More than two dozen individuals and firms have been sanctioned, including day traders operating out of their bedrooms, sophisticated high-frequency trading shops and big Wall Street banks like Bank of America Corp. and Deutsche Bank.However, some of the most egregious actors have escaped scrutiny, according to the people familiar with the matter, because they were operating in the period from 2011 to 2013, before a spate of spoofing prosecutions by the Justice Department. While prosecutors may be relishing their new powers, some defense attorneys describe it as government overreach.“The net effect will be that manual traders, who were struggling to deal with the rise of algorithmic trading in the marketplace, will be at even greater risk of prosecution by hindsight,” said David McGill of Kobre & Kim, which has represented several people accused of spoofing. Worse, he said, good-faith orders could be “at a greater risk of being deemed ‘false’ statements.”U.S. authorities have already used the wire-fraud statute in other manipulation cases. The Justice Department recently brought a criminal racketeering case against JPMorgan Chase & Co. precious-metals traders using the wire fraud statute -- among other fraud charges -- to prosecute alleged market rigging dating as far back as 2008.Prosecuting suspected spoofers with wire fraud does carry some risk for the government, according to lawyers involved in spoofing cases. If the two Deutsche Bank traders are convicted and they choose to appeal, an appellate court might reverse the earlier judge’s ruling allowing wire-fraud charges.READ MORE:Deutsche Bank, UBS Settle Spoofing Claims in U.S. CrackdownMerrill to Pay $36.5 Million to Settle Metals Spoofing ClaimsSpoofing Is a Silly Name for Serious Market Rigging: QuickTakeTo contact the reporters on this story: Liam Vaughan in London at email@example.com;Tom Schoenberg in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeffrey D Grocott at email@example.com, David S. Joachim, Peter JeffreyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Deutsche Bank announced today its appointment as depositary bank for the NASDAQ-listed American Depositary Receipt program of LIZHI INC. (the "Company" or "LIZHI").
The European Central Bank must ditch negative interest rates because they are increasing inequality and damaging society, Deutsche Bank Chief Executive Christian Sewing said. Sewing, who said negative rates also hurt lenders, on Thursday called on the ECB to use its upcoming strategic review as an opportunity to end a landmark policy that was once necessary but is now doing more harm than good. ECB rates have been negative for years and the bank is even keeping the door open for further cuts as euro zone growth dips and inflation remains below its target.
Women held 22.8% of supervisory board seats at banks and 22.2% of those at insurance companies, down from 23.2% and 22.5% respectively the year before, according to the study by the German Institute for Economic Research, or DIW. The decline contrasts with other industries, where women had an overall 28.2% share of seats, an improvement on the previous year's 26.9, DIW said.
DEEP DIVE Some investors are concerned the U.S. stock market may have gotten ahead of itself because price-to-earnings valuations have increased so significantly. The same couldn’t be said of the big U.
The U.S. Federal Reserve on Friday signaled it would take a lighter touch when supervising banks, in another win for the industry which has long complained that the regulator's closed-door supervisory process is opaque and capricious. In particular, foreign lenders Deutsche Bank, Credit Suisse, UBS and Barclays should no longer be held to the same supervisory standard as big U.S. banks after shrinking their combined U.S. assets by more than 50% over the past decade, said Fed governor Randal Quarles. "We have been giving significant thought to the composition of our supervisory portfolios and, in particular, to whether and how we should address the significant decrease in size and risk profile of the foreign firms," Quarles, who is also vice chair for Fed supervision, told a Washington conference.
Days to Brexit: 14(Bloomberg) -- Sign up here to get the Brexit Bulletin in your inbox every weekday.What’s Happening? The U.K. economy’s post-election economic optimism is quickly disappearing.Boris Johnson’s decisive election win before Christmas was supposed to provide a much-needed fillip for the U.K.’s sluggish growth rate, lifting near-term Brexit uncertainty and finally allowing companies to plan for the future.Still, signs of a “Boris bounce” aren’t too strong. While some private surveys have shown signs of a pick up in sentiment, this week has seen a string of disappointing data, including evidence that the economy was unexpectedly contracting before the vote. Inflation and retail sales reports for December, which included the period immediately after the election, came in well below expectations, suggesting U.K. consumers may be losing some of their resilience.That’s taken a chunk out of the pound, which has fallen more than 1.7% against the dollar this year. Combined with dovish noises from Bank of England policy makers, traders now put the chances of an interest-rate cut later this month at more than 70% — levels which indicate near-certainty for some in the market.Analysts don’t see pressure on the pound ebbing any time soon: Deutsche Bank said today that a rate cut could be followed by a new cycle of quantitative easing. More data is due next week, with the forward-looking Purchasing Managers Index likely to influence whether the BOE takes action“If you look at the fundamental driver behind U.K. economic weakness, it has been Brexit. And the reality is Brexit uncertainty is not going to go away,” George Saravelos, the bank’s global head of currency research, told Bloomberg TV.Beyond BrexitEven after 20 years at the top, Russian President Vladimir Putin still knows how to play power politics. Twitter CEO Jack Dorsey asked Tesla boss Elon Musk how he would fix the social network. How many billionaires are attending next week’s World Economic Forum in Davos, Switzerland?Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.Brexit in BriefReassurance | EU citizens who have not secured “settled status” by the deadline of June 2021 will not automatically be deported from the U.K., Downing Street confirmed.Big Bong Update | The Brexiteer campaign to raise funds for Big Ben to bong on Jan. 31 continues apace, with more than £222,000 ($289,000) now pledged. Lawmaker Mark Francois, who is leading the bong bid, told the BBC that Brexit-backing businessman Arron Banks has pledged £50,000.Preparation Costs | The U.K. has already committed to spend £6.3 billion on preparations for Brexit, the Institute for Government notes in a briefing paper on government readiness. That’s roughly the equivalent of a railway extension project or two new aircraft carriers, the IfG says. Another £2 billion is set aside for 2020-2021.Tell Us Your Plans | Brexit is two weeks away. We’re curious how you, our loyal Brexit Bulletin readers, are planning to mark the moment. Get in touch and let us know, by emailing firstname.lastname@example.org.Want to keep up with Brexit?You can follow us @Brexit on Twitter, and listen to Bloomberg Westminster every weekday. It’s live at midday on Bloomberg Radio and is available as a podcast too. Share the Brexit Bulletin: Colleagues, friends and family can sign up here. For full EU coverage, try the Brussels Edition.For even more: Subscribe to Bloomberg All Access for our unmatched global news coverage and two in-depth daily newsletters, The Bloomberg Open and The Bloomberg Close.\--With assistance from Greg Ritchie.To contact the author of this story: David Goodman in London at email@example.comTo contact the editor responsible for this story: Adam Blenford at firstname.lastname@example.org, Chris KayFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- A breed of systematic trader acutely sensitive to volatility is charging into U.S. stocks at the kind of pace last seen before “volmageddon” rocked Wall Street almost two years ago.Volatility-targeting funds are doubling down on equities after geopolitical turmoil that threatened to derail the bull market in the end barely slowed it down. These players buy and sell based on price swings, and their leverage -- a measure of exposure to stocks -- now sits at its 81st percentile since 2011, according to Morgan Stanley.That might be a cause for hand-wringing in some quarters of the market, as it echoes the run-up to February 2018, before a swift de-risking by systematic players is thought to have intensified a market plunge. Algorithmic traders are often seen as weak hands because many strategies are at the mercy of signals that can flip on a dime.“Considering that systematic strategies are very levered, traditional investors’ gross and net exposures are very high, and retail traders are also more levered-up -- that leaves us susceptible to a real draw-down,” said Alberto Tocchio, chief investment officer at Colombo Wealth SA, a Swiss wealth manager that oversees 2.5 billion Swiss francs ($2.6 billion).Fortunately, conditions look very different from 2018, Nomura’s Masanari Takada wrote in a note today. Pointing to a lack of fear in the VIX options market, the quant strategist says any short-term dips would likely be treated by investors as buying opportunities.Meanwhile, the trigger fingers of vol-targeting funds, which by one estimate hold around $400 billion, may be firmer than thought after an extended stretch of tranquility, according to Deutsche Bank AG strategists led by Binky Chadha. These strategies typically load up on stocks when markets are calm and sell when volatility hits.“They would need to see a large and sustained spike in vol for their selling thresholds to be hit,” the team wrote.Animal SpiritsStill, there’s little doubt that equity positioning by systematic strategies is stretched. The leverage of short-term trend-followers known as CTAs is at the 78th percentile since 2011, according to Morgan Stanley.And animal spirits are in the air, with Bank of America Corp. strategists led by Michael Hartnett writing this week they’re staying “irrationally bullish until peak positioning and peak liquidity incite a spike in bond yields and a 4-8% equity correction.”The possibility that CTAs sell en masse on a change in market dynamics “cannot be ignored,” Nomura’s Takada wrote in an email.“If any unpredictable but tiny shock causes a correction in the upward momentum of a U.S. stock price index like the S&P 500, systematic trend-followers are likely to rush into exiting from their current bullish trades simultaneously,” he said.\--With assistance from Justina Lee.To contact the reporter on this story: Ksenia Galouchko in London at email@example.comTo contact the editors responsible for this story: Blaise Robinson at firstname.lastname@example.org, Yakob Peterseil, Sam PotterFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.The pound is sliding as souring economic data raise the prospect of an interest-rate cut as soon as this month. Deutsche Bank AG says that may just be the start of a longer easing cycle that piles extra pressure on the U.K. currency.Not only does George Saravelos, the bank’s London-based global head of currency research, see a decline in borrowing costs in January, he thinks policy makers may opt for a drop in March, too, and then possibly begin quantitative easing.“Even if you get some election bounce, we don’t think it’s going to be sustained and the risk is the Bank of England has to do Q-eternity,” Saravelos told Bloomberg Television’s Francine Lacqua on Friday. In 2015, he was part of a team that forecast correctly that the pound would drop to its weakest level since 1985 in the following years.Sterling extended its decline against the dollar to as much as 0.4% after his comments, exacerbating a selloff that was triggered by an unexpected plunge in U.K. retail sales. The data increased bets the BOE may lower borrowing costs this month, with money markets pricing in a more than 70% chance of a cut on Jan. 30, up from 62% on Thursday.Traders had been speculating that the central bank will ease rates at Mark Carney’s last MPC meeting as BOE governor after a flurry of dovish comments from policy makers and a series of disappointing economic data releases.That, coupled with fears of a chaotic divorce from the European Union, has overshadowed euphoria from the Conservatives’ election victory in December and weighed on the pound this year.Saravelos said the pound appears overpriced and should be trading closer to 87 or 88 pence per euro, compared to about 85 pence on Friday. He added that the bank is negative on sterling.“The economy is in recession, the data so far is pointing in that direction,” Saravelos said. “If you look at the fundamental driver behind U.K. economic weakness, it has been Brexit. And the reality is Brexit uncertainty is not going to go away.”Starting from the aftermath of the financial crisis, the U.K. central bank bought a total stock of 435 billion pounds ($568 billion) of bonds in an effort to revive the economy. The BOE has leeway for any return to QE, with a self-imposed limit of buying 70% of outstanding gilts. The European Central Bank is able to purchase 33% of outstanding debt from qualifying member states.Investors are now turning their attention to impending purchasing mangers’ indexes for further signs of the BOE’s direction.Sterling retreated 0.3% to $1.3040 as of 2:45 p.m. in London. The yield on 10-year U.K. government bonds dropped a sixth day to 0.64%, on course for its longest falling streak since August.“Clearly, there is a chance for a decent rebound of the PMIs next week and this may stay the BOE’s hand,” said Valentin Marinov, a strategist at Credit Agricole SA. “That said, following this week’s weaker CPI and retail sales, the bar for stable rates is getting very high.”What Bloomberg Intelligence Says”The BOE may run out of patience if PMI data next week don’t see a decent bounce. There is low visibility as to whether growth will rebound after the election, so it may be best to risk manage receiving positions in GBP short-end rates given current pricing for a cut. The cross-market theme of gilts outperforming bunds and U.S. Treasuries remains.”\-- Tanvir Sandhu, Chief Global Derivatives Strategist(Adds context on QE, additional comments from Saravelos from seventh paragraph.)\--With assistance from Greg Ritchie and Anooja Debnath.To contact the reporters on this story: Love Liman in Stockholm at email@example.com;William Shaw in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Dana El Baltaji at email@example.com, William ShawFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.British consumers shunned stores during the crucial Christmas trading period, confounding predictions of a rebound in spending and stoking speculation that the Bank of England will cut interest rates this month.The pound fell after the report, the latest in a string of disappointing U.K. data in recent days, and traders moved to price in a 75% chance of a cut at the BOE’s Jan. 30 meeting.The volume of goods sold in stores and online fell 0.6% in December, confounding expectations of a 0.6% increase. Sales excluding auto fuel dropped 0.8%. The period included Black Friday and Cyber Monday, when price cuts would be expected to attract shoppers to stores.Weak growth and inflation figures this week have added to expectations, fueled by dovish comments from BOE Governor Mark Carney and other policy makers, that a rate cut could be imminent. Crucially, the sales survey was taken between Nov. 24 and Dec. 28, meaning much of it encompassed the period following Boris Johnson’s commanding win in the Dec. 12 general election -- undermining speculation the economy will see a bounce amid reduced political uncertainty.What Our Economists Say:“Whether the Bank of England cuts interest rates on Jan. 30 now hangs in the balance and makes the PMI survey next week a make-or-break data point.”\-- Niraj Shah, Bloomberg Economics. For the fullU.K. REACT, click hereRetail sales have fallen or stagnated in each of the past five months, the longest run without growth since records began in 1996, the Office for National Statistics said Friday. A 1% decline in the fourth quarter was the largest since the start of 2017 and weighed on the economy.The pound erased its earlier gains after the data, to trade down 0.1% at $1.3063 as of 10:10 a.m. London time.Stores widely reported having to offer deep discounts to beat off competition and lure customers in the runup to Christmas. Prices as measured by the retail sales deflator fell 0.6% on the month.That’s hit stores from Marks & Spencer Group Plc to John Lewis Partnership Plc, while the British Retail Consortium described 2019 as the worst year on record for the sector with revenue down on 2018. Retailers have underperformed the U.K. market as a whole this year.Sales in December fell across the board, with non-food sales declining 0.9% and food sales dropping 1.3%, the most since December 2016. Petrol stations and online retailers had a better month.There were also sweeping declines during the quarter, with clothing and footwear down 2.3% and non-store retailing falling 3.2%.With some BOE officials indicating signs of a post-election recovery may be enough to stave off a cut, the most high-profile figures before the Jan. 30 decision are now the Purchasing Managers Indexes due to be released next Friday.(Adds pound, chart.)\--With assistance from David Goodman.To contact the reporters on this story: Andrew Atkinson in London at firstname.lastname@example.org;Lucy Meakin in London at email@example.comTo contact the editors responsible for this story: Fergal O'Brien at firstname.lastname@example.org, Andrew Atkinson, Brian SwintFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- A Deutsche Bank-led consortium’s efforts to buy out the debt of a power plant operator in eastern India have advanced, after no rival bidder emerged.The struggling utility is Jindal India Thermal Power Ltd., one of a string of power plants being put up for sale by banks stuck with their defaulting debt.The sector has been hit hard by oversupply in recent years, a consequence of a costly push to bridge India’s once chronic power deficit and expand reach to under-supplied rural areas. Power generators form a significant chunk of India’s $130 billion bad loan pile.The consortium offered 24 billion rupees ($339 million) in cash to settle the company’s 76 billion rupee debt including interest due as of end March, which is currently being restructured, said the people, asking not to be identified citing confidentiality. The unsolicited offer was opened up to competing bids in an auction but no rival emerged by the deadline last week, the people said.Success for the Deutsche Bank group deal could help preserve the 33.98% equity stake that the BC Jindal Group held as of March 31, 2019.BC Jindal Group company shares jumped. Jindal Photo Ltd. rose as much 12.2%, the most in seven months. Jindal Poly Films Ltd. shares were up as much as 20.3%, the most in over six years.The offer would effectively mean that creditors, led by Punjab National Bank, would recover a fraction of their outstanding debt holdings, the people said. Typically, if lenders do not agree with a debt-recast plan, they have the option of taking the company to bankruptcy.A spokesman for Deutsche Bank declined to comment and a representative for Punjab National Bank didn’t immediately respond to an email seeking comment.(Adds details, Group share prices)\--With assistance from Denise Wee.To contact the reporters on this story: Bijou George in Mumbai at email@example.com;Suvashree Ghosh in Mumbai at firstname.lastname@example.orgTo contact the editors responsible for this story: Andrew Monahan at email@example.com, Denise WeeFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- The Trump administration plans to restrict the news media’s ability to prepare advance stories on market-moving economic data, according to people familiar with the matter, in a move that could create a logjam in accessing figures such as the monthly jobs report.Currently, the Labor Department in Washington hosts “lockups” for major reports lasting 30 to 60 minutes, where journalists receive the data in a secure room, write stories on computers disconnected from the internet, and transmit them when connections are restored at the release time.The department is looking at changes such as removal of computers from that room, and an announcement could come as soon as this week, said the people, who spoke on condition they not be identified. While the rationale was unclear, the government has cited security risks and unfair advantages for news media in prior changes to lockup procedures.Lockups, which are permitted but not required by government regulations, have been a mainstay for U.S. media for almost four decades. They have been designed to give reporters time to digest figures on market-moving data and make sure they are accurate before distributed en masse to the public. Statistics agencies and central banks in the U.K. and Canada use similar lockup procedures.The U.S. move would upend decades of practice, and media organizations including Bloomberg News and Reuters have challenged prior changes to procedures. The shift could also spur an arms race among high-speed traders to get the numbers first and profit off the data, raising questions about fairness in multitrillion-dollar financial markets.Michael Trupo, a spokesman for the Labor Department, didn’t respond to multiple requests for comment. The Commerce Department -- which provides advance access to its reports such as gross domestic product and retail sales at the Labor-hosted lockups -- referred questions on the matter to Labor.Without news services transmitting their reports at the release time and allowing additional access points, the government may have to prepare its websites to handle potentially heavier loads under the new system, which could mean adding security measures or increasing the traffic capacity.“Obviously some firms are bigger than others, some have more resources than others, and some will make a choice in the environment that might ensue to dedicate more resources to this, so I do think the playing field at the margin would be less level,” said Stephen Stanley, chief economist at Amherst Pierpont Securities.Previous PlanIn 2012, the Labor Department under the Obama administration sought to alter lockups to require journalists to use government-owned computers to write their stories. Officials at the time framed the change as addressing security risks.After protests from Bloomberg News and other news organizations, and a congressional hearing in which editors testified, the department agreed to allow the media to continue using their own equipment and data lines. Reporters are required to leave mobile phones and other electronic devices in lockers outside of the lockup room, along with personal effects such as umbrellas and purses.The Labor Department move would follow a similar decision by the U.S. Department of Agriculture in 2018 to scale back lockups covering farm products, particularly the closely-watched monthly crop forecasts that typically move markets in soybeans, corn and wheat.From 2018: What’s a ‘Lockup’ Anyway and Why It Matters for CropsAgriculture Secretary Sonny Perdue said at the time that because of technological changes, journalists can now get information to their readers faster than the USDA can put it on its website, creating an unfair advantage.The USDA’s releases since the change haven’t been without hiccups: In November, for about six minutes after the release time, the website produced an error message.The Federal Reserve separately hosts its own media lockups where journalists get advance access to interest-rate decisions, meeting minutes and industrial-production data, and write their stories on computers in a secure room.“The in-depth media analysis is sought to further understand the details, get a trusted interpretation and also make sense of a market move that does not match your own expectation,” said Delores Rubin, a senior equity trader at Deutsche Bank Wealth Management. “It is hard to say if the impact will create more volatility on economic data releases or a pause as traders wade through the details of the data or await the media analysis.”Government BurdenWithout news services like Bloomberg News and Reuters transmitting their reports at the precise release time and allowing additional access points, the lockup changes put the burden on the government to ensure that its website remains accessible while being bombarded by everyone from algorithmic traders to the general public.U.S. government websites aren’t immune from attack or technical issues that could limit public access. In 2013, the Obamacare website crashed when millions tried to access it and register under the then-new health care program, preventing Americans from enrolling in coverage until months later, after a frantic repair effort.Earlier this month, a pro-Iran group hacked a U.S. government website -- the Federal Depository Library Program -- and posted messages related to the U.S. killing of a top Iranian commander.The Obama administration’s Labor Department said in its November 2016 transition document that it took “costly security measures” including a technology upgrade to protect the data, and “significant personnel and financial resources are also required to host each lockup.”(Adds economist’s comment in eighth paragraph.)\--With assistance from Michael Riley, Alyce Andres, Vildana Hajric and Emily Barrett.To contact the reporters on this story: Katia Dmitrieva in Washington at firstname.lastname@example.org;Vince Golle in Washington at email@example.comTo contact the editors responsible for this story: Margaret Collins at firstname.lastname@example.org;Scott Lanman at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
While it may not be enough for some shareholders, we think it is good to see the Deutsche Bank Aktiengesellschaft...