The merger of Deutsche Bank with Commerzbank - a variant if anything else does not work

On the eve of the results are the fourth quarter of last year, the expectations are that they will reflect the current troubles of the bank that would hinder the possibility of a coordinated merger with Commerzbank. This will, of course, affect the bank's performance for the first quarter of 2019.

"If that's true, the economic situation for Deutsche Bank may get worse." - says Andreas Plaesier, an analyst at M.M. Warburg. "The merger now with Commerzbank is illogical, because this expansion strategy will not be that successful." - adds Plaesier.

CEO Christian Sewing pleads for patience with his current plan, which is focused on cutting costs in an attempt to stabilize the bank's stock. The German government is desperately trying to find a way to save Deutsche Bank from the crisis.

Although large investors in the German bank support Sewing, they are not satisfied with the losses they suffer. Shares have lost more than half their value over the past year.

Sewing has rejected the likelihood of a merger before 2020, but he also mentioned that he must change his strategy beforehand to prevent failure.

For the moment, shares remain in the downward trend, having a diagonal breakthrough in the price that predicts continued downward movement if the price is kept below the line and the 50 daily moving average (the red curve).

Източник: Bloomberg Finance L.P.

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