Deutsche Bank says cur­rency rout 'se­ri­ous'

The Pak Banker - - COMPANIES/BOSS -

The melt­down in global mar­kets is "very se­ri­ous" as it will weaken prospects for growth world­wide, said Hen­ning Geb­hardt, global head of eq­ui­ties at Deutsche Bank AG's as­set and wealth man­age­ment unit.

"We are ex­pect­ing some ad­just­ments for the global eco­nomic out­look -- es­pe­cially trig­gered by weaker growth in emerg­ing mar­kets," Geb­hardt said in an e-mailed re­sponse to ques­tions on Mon­day in Frank­furt. "The low oil price and the changed eco­nomic out­look will cre­ate another round of global earn­ings cuts." Global stocks have lost $5 tril­lion since China un­ex­pect­edly de­val­ued the yuan on Aug. 11, with in­vestors spooked by signs of fur­ther weak­en­ing in the world's sec­ond­largest econ­omy. The rout is rais­ing doubt about the abil­ity of the global econ­omy to with­stand a even­tual liftoff in U.S. in­ter­est rates this year.

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