The stocks of one of the most renowned banks – Deutsche Bank AG – dropped the highest for the past 17 months which means it has been performing well since September 2012. The reason behind this fall was the release of the earnings report that was released by the largest lender in Germany, where the bank reported a substantial loss in the fourth quarter of the year 2013.
The shares drop instantly where investors took a negative hint from this earnings report, which shows that the lending and borrowing activity also dropped in the fourth quarter of 2013, which means that the consumer spending and investment showed a sluggish move as well in the German economy mainly.
The key advice for the investors is too look out for the infrastructure development and new projects whether they are from SME sector or large capital firms, which could eventually result in boosting up the borrowing-lending activity within the market, hence allowing the profits to keep rolling in.
Peugeot Drives down the Street
The share price of the car-maker company – PSA Peugeot Citreon – witnessed an 11% loss this week where the second biggest car manufacturing company of Europe has obtained the approval from the board to raise the capital which would be worth as high as $4.1 billion.
This means the company might be running out of cash or operating capital or payouts to the shareholders, which caused the company to raise more capital to overcome those shortcomings. However, investors should look into the milestones that are set by the company and what innovation or new projects they are going to come up with to keep ticking the cycle.
The biggest airline of Europe – KLM Group – had a couple of tough days this week as the company has been downgraded from ‘buy’ to ‘neutral’ by UBS AG, and as a result the investors shorted the stocks and those who were in-the-money cashed their trades that caused the share price to fall by around 5 percent.