This week, the Commerzbank executive board is supposed to decide whether to strengthen the merger discussions with Deutsche Bank or back off from an agreement, Wirtschaftswoche, a German business weekly, highlighted this week. The magazine stated that Commerzbank’s management is planned to talk about how to continue in the merger discussions during its upcoming regular session. While supporting the news, Wirtschaftswoche cited the firm sources as well as an internal memo. Deutsche Bank and Commerzbank refused to comment on this subject.
Upon initiating official discussions with Deutsche Bank last month, Martin Zielke, Chief Executive Officer, Commerzbank, told bankers that the management is aimed at finalizing on whether to move forward with the unification in the upcoming 2–3 Weeks, two sources known with the matter proclaimed at the time. Paul Achleitner, Chairman, Supervisory Board, Deutsche Bank, proclaimed that the banks aspire to take more strong steps on the unification by late April 2019.
On a similar note, Deutsche Bank came into the news as the shares of Caterpillar, a bellwether for the worldwide economy, dropped this week as the bank downgraded the firm and other construction equipment. Deutsche Bank degraded Caterpillar to hold from purchase and slash its 12-month cost target to $128 from $152. In premarket trading, Caterpillar shares collapsed about 1.4% to $138.20.
Recently, in a note to clients, Chad Dillard, Analyst, stated that synchronized worldwide growth has collapsed. China Land Cycle will continue to grow weaker in spite of the single positive data point this week. According to Dillard, Europe is slowing more than anticipated and oversaturation is observed in the U.S. with construction equipment. In early 2018, many investors used the term “synchronized global growth” to describe an exceptional scenario where every key economy was developing at a brisk pace. That theory was found to be collapsed last year among trade battles between the U.S. and key partners, growing fears about a hard Brexit by the U.K. and a major slowdown in China economic development.