Latest news with #DeutscheBank
Business Insider
2 hours ago
- Business
- Business Insider
Americans are mostly paying for tariffs — and price rises may be on the way, says Deutsche Bank
American companies are eating the cost of tariffs, and higher consumer prices may be "in the pipeline," Deutsche Bank said. Analysts at the bank reached that conclusion after examining the cost of importing manufactured goods in the second quarter, when Donald Trump first proposed his tariffs. They said that the US Government had collected $100 billion in tariff revenue so far this year, "so no doubt someone is paying." They added that if exporters to the US covered the costs, there would be a "sharp reduction in the price of imported goods," but this has not happened. "The top-down macro evidence seems clear: Americans are mostly paying for the tariffs," the strategists said in a Tuesday note. They concluded that American companies have been "mostly absorbing the tariffs into their profit margins" because the US consumer price index, up only 0.3% in June, hasn't registered a big increase. But they warned, "There is likely more pressure on US consumer prices in the pipeline." The analysts also said the tariffs were hitting the dollar as "exporters in the rest of the world are not yet feeling much pain from the tariffs." This could give other countries more bargaining power as they negotiate trade deals ahead of Trump's August 1 deadline for resuming many of his tariffs, they added. The analysts said they found few examples of exporters absorbing the costs of tariffs anywhere in the world. Dollar import prices in China are down by only 1% "despite an average increase in tariff rates of more than 30%," they noted. It also said that there are specific industry examples of exporters eating tariffs, citing Japanese automakers cutting the prices of models sent to the US. The Bank of Japan's corporate goods price report found that the export price index for cars shipped to North America last month fell 19.4% compared to a year prior, the biggest plunge since 2016. Treasury Secretary Scott Bessent said earlier this month that the US could take in as much as $300 billion in tariff revenue in 2025.
Yahoo
5 hours ago
- Business
- Yahoo
Deutsche Bank Resumed a Hold Rating on Endava plc (DAVA)
Endava plc (NYSE:DAVA) is one of the . On July 16, Deutsche Bank resumed coverage on Endava plc (NYSE:DAVA) with a Hold rating and a $14 price target. The firm noted in a research report that the cautious rating reflects broader industry challenges, highlighting that the payments, processors, and IT services sectors have underperformed against the S&P 500 this year. This underperformance was driven by overly optimistic investor expectations around the November election that did not materialize. The analyst highlighted that trade uncertainties and concerns about consumer spending have made the outlook for the group very uncertain, which is the most uncertain in the last five years. Under the current market scenario, Deutsche Bank favors companies with consistent sales growth, margin expansion, and strong free cash flow generation. Endava plc (NYSE:DAVA) is a technology service provider specializing in digital transformation and engineering services. It helps clients design, develop, and deploy software products and platforms using agile and AI-driven approaches. While we acknowledge the potential of DAVA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
10 hours ago
- Business
- Yahoo
Deutsche Bank Sees US 30-Year Yield Jump on Any Powell Exit
(Bloomberg) -- The potential ouster of Federal Reserve Chair Jerome Powell by President Donald Trump would drive the 30-year Treasury yield higher by more than half a percentage point, according to Deutsche Bank AG strategists. Why the Federal Reserve's Building Renovation Costs $2.5 Billion Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom Milan Corruption Probe Casts Shadow Over Property Boom How San Jose's Mayor Is Working to Build an AI Capital The clearest hedge against risks to the Fed's independence — and a scenario in which US government spending consumes monetary policy — are yield curve steepener trades, a team including Matthew Raskin and Steven Zeng wrote in a note to clients. These trades benefit if the gap widens between short-term and long-term yields. Currently, the gap between the five and 30-year yields is around 100 basis points — the steepest since 2021. 'Powell's dismissal would be meant to produce easier monetary policy and should lift inflation expectations and risk premia,' they wrote. 'The implied moves are big but plausible.' Attacks on the Fed chair by the president and his allies in the administration, who wish to see the central bank lower interest rates faster than officials are currently projecting, have taken on fresh urgency in recent weeks. On July 16, when headlines flashed across the wire that Trump was likely to fire Powell — a claim that Trump denied within an hour — US equities, the dollar and long-term US government bonds retreated sharply while short-term Treasuries rallied. What Bloomberg strategists say... 'If it wasn't for inflationary impact of tariffs, Powell would likely have already been happy to cut rates. But the economy is set to be visibly slowing enough in the next few months such that, no matter who is Chair at that stage, they will be able to please the President, without being seen to appease him.' — Simon White, Markets Live Strategist. Click here for the full analysis. Based on the gyrations in Treasuries across the curve seen during that brief time period last week, the 30-year nominal Treasury yield could surge some 56 basis points, the Deutsche Bank strategists wrote — even as the front-end of the Treasury curve rallies on expectations of easier monetary policy in the short-term. The 30-year Treasury has tumbled in July as investors mull over US inflation, the government spending outlook and the path for Fed interest-rate cuts. Last week's consumer inflation figures sparked a selloff that pushed the 30-year yield above 5% for the first time since June. On Tuesday, it hovered around 4.95%. 'Market participants seem to agree that the risk to Fed independence is rising,' wrote Jan Hatzius, chief economist at Goldman Sachs Group Inc., noting that a forward gauge of inflation has decoupled higher from the two-year risk-free rate following a long period of alignment. 'A further increase could make Fed officials more reluctant to cut,' he said. (Adds comment by Goldman Sachs in the final paragraph) Elon Musk's Empire Is Creaking Under the Strain of Elon Musk A Rebel Army Is Building a Rare-Earth Empire on China's Border Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy ©2025 Bloomberg L.P.
The National
10 hours ago
- Business
- The National
Germany's $1.36 trillion asset manager DWS plans Abu Dhabi office
DWS Group, a German investment manager with €1.01 trillion ($1.36 trillion) in assets under management, plans to expand its global footprint by opening an office at Abu Dhabi's financial centre ADGM. The Frankfurt-headquartered asset manager expects to start serving clients in the Emirates from its first Middle East outpost later this year, a DWS spokesperson told The National. DWS, which is majority-owned by German lender Deutsche Bank, has received interest from at least a dozen staff members who are keen to move to the UAE capital, its chief executive Stefan Hoops told the Financial News. 'Since we said we would open a branch we've had plenty of colleagues internally saying: 'Hey, can I work from there?'' Mr Hoops told the London newspaper. 'I don't think London has to worry about Abu Dhabi, but it's pretty attractive for a variety of reasons.' The asset manager plans to move 'people that will do things for the Middle East', he said. 'But I could imagine moving more people if they want to be there. Why not? It's a diversification of time zone coverage. If somebody wants to move, we will support their move,' Mr Hoops added. DWS joins a rapidly expanding list of asset managers, insurers, financial institutions and investment houses that have set up a base or have announced plans to call the financial hub their home. It is also the latest trillion-dollar asset manager to choose Abu Dhabi as its base for Middle East expansion. Partners Group, a Switzerland-based private market investment company with $150 billion client assets, announced the opening of a regional headquarters at ADGM in June. In the same month, Harrison Street, a $56 billion US-based property and infrastructure investment manager, also said it is entering the Middle East market with the opening of an office at ADGM. In February, German asset manager Patrizia was granted approval by the Financial Services Regulatory Authority to start operations at ADGM. The company, which has about €55 billion in assets under management, plans to arrange and advise real estate investments for clients in the region. New York-based BlackRock, the world's top asset manager with nearly $11.5 trillion in assets under management, in November received a commercial licence to operate at ADGM. In September, ADGM welcomed its first trillion-dollar asset managers when PGIM, the global asset management business of Prudential Financial was granted a licence. Chicago investment firm Nuveen, soon followed, with both firms aiming to expand their operations and client bases in the Middle East. The flurry of new additions pushed up the number of companies in ADGM during the first quarter of this year, with assets under management also increasing by 33 per cent annually, the financial hub said in June. The total number of businesses operating at ADGM rose by 43 per cent annually to 2,781 in the first three months of 2025, it said. At the end of last year, the financial zone had 2,381 operational entities.
The National
11 hours ago
- Business
- The National
Germany's $1.36 trillion asset manager DWS plans ADGM office
DWS Group, a German investment manager with €1.01 trillion ($1.36 trillion) in assets under management, plans to expand its global footprint by opening an office at Abu Dhabi's financial centre ADGM. The Frankfurt-headquartered asset manager expects to start serving clients in the Emirates from its first Middle East outpost later this year, a DWS spokesperson told The National. DWS, which is majority-owned by German lender Deutsche Bank, has received interest from at least a dozen staff members who are keen to move to the UAE capital, its chief executive Stefan Hoops told the Financial News. 'Since we said we would open a branch we've had plenty of colleagues internally saying: 'Hey, can I work from there?'' Mr Hoops told the London newspaper. 'I don't think London has to worry about Abu Dhabi, but it's pretty attractive for a variety of reasons.' The asset manager plans to move 'people that will do things for the Middle East', he said. 'But I could imagine moving more people if they want to be there. Why not? It's a diversification of time zone coverage. If somebody wants to move, we will support their move,' Mr Hoops added. DWS joins a rapidly expanding list of asset managers, insurers, financial institutions and investment houses that that have set up a base or have announced plans to call the financial hub their home. It is also the latest trillion-dollar asset manager to choose Abu Dhabi as its base for Middle East expansion. Partners Group, a Switzerland-based private market investment company with $150 billion client assets, announced the opening of a regional headquarters at ADGM in June. Last week, Harrison Street, a $56 billion US-based property and infrastructure investment manager, said it is entering the Middle East market with the opening of an office at ADGM. In February, German asset manager Patrizia was granted approval by the Financial Services Regulatory Authority to start operations at ADGM. The company, which has about €55 billion in assets under management, plans to arrange and advise real estate investments for clients in the region. New York-based BlackRock, the world's top asset manager with nearly $11.5 trillion in assets under management, in November received a commercial licence to operate at ADGM. In September, ADGM welcomed its first trillion-dollar asset managers when PGIM, the global asset management business of Prudential Financial was granted a licence. Chicago investment firm Nuveen, soon followed, with both firms aiming to expand their operations and client bases in the Middle East. The flurry of new additions pushed up the number of companies in ADGM during the first quarter of this year, with assets under management also increasing by 33 per cent annually, the financial hub said in June. The total number of businesses operating at ADGM rose by 43 per cent annually to 2,781 in the first three months of 2025, it said. At the end of last year, the financial zone had 2,381 operational entities.
