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Five things you need to know on Monday

Deutsche Bank seeks $8.6 billion to boost capital, bulls are abandoning crude, and the US gets its way at the G-20.

Here are some of the things people in markets are talking about today.

Capital raise

Deutsche Bank will issue 687.5 million new shares at 11.65 euros ($12.54) apiece — a 35% discount to Friday’s closing price — to raise 8 billion euros of fresh capital. In its annual report published today the bank said it expected revenue to remain broadly unchanged this year, while revealing that the bonus pool was slashed to 500 million euros in 2016. Shares in Deutsche were 1.8% lower at 5:16am Eastern Time.

G-20 win

The meeting of the Group of 20 in Baden-Baden, Germany at the weekend featured an apparent win for the US after the communique produced by the talks omitted warnings about protectionism. One thing that was repeated was the pledge to overhaul bank-capital rules, with the statement urging the Basel Committee on Banking Supervision to finalize the Basel III reforms. Away from the G-20, German Chancellor Angela Merkel joined Japanese Prime Minister Shinzo Abe in calling for a concerted effort to defend free trade. 

Oil decline

Bullish bets on West Texas Intermediate crude prices fell by a record amount in the week ending March 14, with wagers on further price falls doubling. Energy lender Arab Petroleum Investment Corporation sees oil prices remaining below $60 a barrel for the rest of the year. WTI for April delivery was trading at $48.07 a barrel at 5:35am, with data released Friday showing US drillers continue to add rigs, extending a drilling surge to a tenth month. 

Markets slip

Overnight, the MSCI Asia Pacific Ex-Japan Index gained 0.4%, with markets in Japan closed for a holiday. In Europe, the Stoxx 600 Index was 0.2% lower at 5:40am with Deutsche Bank among the largest losers. Market futures in the US point to a drop at the open. 

Comey testimony

FBI director James Comey testifies before Congress today. While he is due to speak about the continuing investigation into Russia’s alleged meddling in last year’s election, President Donald Trump’s Twitter claims about wiretapping are likely to dominate proceedings in the rare open session. That’s due to begin at 10am in Washington. 

© 2017 Bloomberg


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