Bad Debt Surging at Deutsche Bank Points to Economic Weakness

Surging bad debt at Deutsche Bank is the latest warning that economic malaise is creeping through the European Union. The lender said it will have to set aside more money than expected for souring loans, the second time this year it had to adjust its guidance. Provisions doubled last quarter at the most valuable lender in the bloc’s biggest economy. While Deutsche Bank said the increase was only temporary, and that provisions for commercial real estate were already coming down, analysts suggested Germany’s weak economy is starting to impact revenue. The result could challenge Chief Executive Officer Christian Sewing’s goal to improve profitability and return more than €8 billion ($8.6 billion) to shareholders over the medium term. The bank’s shares fell as much as 4.9% in Frankfurt.

A transatlantic showdown threatens to roil the smartphone and personal computer markets and disrupt operations of two of the most influential companies in the semiconductor industry. The UK’s Arm Holdings is canceling a license that allowed longtime partner Qualcomm to use Arm intellectual property to design chips. With the cancellation notice, Arm is giving the US company an eight-week period to remedy a legal dispute that began in 2022. If the cancellation takes effect, Qualcomm may have to stop selling products that account for much of its roughly $39 billion in revenue, or face claims for massive damages.