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Volatile Volatility Leaves Europe Investment Banks Whipsawed

  • Deutsche Bank, Credit Suisse slump after executive comments
  • Credit Suisse CEO says ‘March is a bit all over the place’
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Bloomberg’s Elisa Martinuzzi discusses Deutsche Bank’s stock plunge.(Source: Bloomberg)
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Europe’s investment banks were upbeat after a spike in volatility at the start of the year promised to revive their battered trading units. By Wednesday, their exuberance had disappeared as quickly as it came.

Deutsche Bank AG cautioned that its securities unit was facing headwinds this quarter from a stronger euro and higher funding costs for the business, less than a week after predicting higher full-year trading revenue. Tidjane Thiam, the head of Credit Suisse Group AG who a month earlier declared his investment bank was alive and well, spoke of a “very confused” first quarter that left clients once again sitting on the sidelines.