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Greg Gibbs,  Founder, Analyst, & PM,  Amplifying Global FX Capital Pty Ltd, an Australian financial services company, explained that it is hard to ignore the rapid slide in Deutsche Bank’s (DB) share price.  

Key Quotes:

“DB is one of the top five Globally Systemically Important Banks (G-SIB) as designated by the G20’s Financial Stability Board (FSB).”

“It is around the 12th  largest bank globally by total asset size ($1.5tn), and yet its market cap is now only $20bn.”

“If it is called on the raise more capital this would be a problem.  Its share price performance suggests it is highly influenced by the political risk in Italy.”

“We should add DB’s rapid slide in share price this year (down over 40% to revisit record lows in 2016) as a risk factor for global financial stability and in particular the Eurozone.”

“Considering Populists are taking over in Italy, the Spanish government is set to fall, and Trump is pursuing trade restrictions on the EU, the outlook for EUR is getting murky.”