Deutsche shares gain as ECB weighs ‘rate impact’

Bloomberg

A day after the first doubts emerged about Deutsche Bank’s fresh turnaround plan, the European Central Bank (ECB) stepped in to allay at least some of them.
The ECB said it will study options to mitigate the punitive effect of negative interest rates on euro area banks, pushing Deutsche Bank’s stock to the highest in almost three months.
The central bank singled out the possibility of offering partial exemption from negative interest rates on money deposited by banks at the ECB, known as tiering.
Deutsche Bank stock had reacted negatively a day earlier to Chief Financial Officer James von Moltke’s comments on how lower central bank-set interest rates without measures to offset the impact was a “significant risk” to the bank’s three-weeks old turnaround plan.
His comments underscored how little room for error CEO Christian Sewing has as he implements the biggest cutbacks yet to the investment bank, including the exit from equities trading, unveiled in early July.
The German lender gained as much as 5.6 percent and was trading 4.5 percent higher in Frankfurt.