Deutsche Bank can't seem to get a break.
A day after prosecutors raided the company's headquarters in a tax evasion investigation, Deutsche Bank cautioned that unexpected costs would be a drag on profit. The cost of overhauling a retail banking unit in Germany, coupled with thedeclining value of some securities, could "have a significant negative impact on the bank's earnings" in the last three months of theyear, the bank said on Thursday.
But Stefan Krause, the bank's chief financial officer, tried to put the outlook in a more positive light. "This is not seen as a profit warning," he said in aconference call with analysts. "This is a guidance."
Mr. Krause also took note ofthe investigation in the call,but did not address the accusations in detail. On Wednesday, Deutsche Bank disclosed that Mr. Krause and Jürgen Fitschen, a co-chief executive of the bank, werethe focus of an investigationover the value-added tax on the trading of carbon emissions certificates. The inquiry resulted in raids byabout 500 police officers, tax inspectors and other officials at the bank's headquarters in Frankfurt, as well as offices and private homes in Düsseldorfand Berlin. The two executives are subjects of the inquiry because they signed tax return documents.
"The criminal investigation is going on, and it is very difficult to predict when that will be over," Mr. Krause said.
The bank is dealing with a difficult environment even without pressure from law enforcement authorities. Like its rivals, Deutsche Bank has been trying to revamp its businesses in theface of a sluggish market and economic weakness. The bank is also moving to reduce risk as new regulations take effect over the next several years. The rules will increase the amount of capital banks must hold against certain kinds of assets.
Deutsche Bank, which is in the midst of closing its books for the year, decidedto update investors on the unanticipated costs. Mr. Krause said the bank did not know the amount of those expenses.
"The outcome is still open,"he said. "But there will be quite a large amount of things to consider, which could be substantial and could lead to a loss."
Some costs relate to an overhaul of Postbank, a Deutsche Bank unit that offers banking services fromGerman post offices. In addition, the bank may need to record losses from debt or other securities thatit owns.
Friday, 14 December 2012
Thursday, 13 December 2012
Tuesday, 11 December 2012
Good news for India Industrial production growth hits 8.2% in October
Industrial production growth rate bounced back to a 16-month high of 8.2 per cent in October on good performance of the manufacturing, power sector and higher output ofcapital as well as consumer goods, indicating sudden recovery in the economy.
The factory output, as measured by the Index of Industrial Production (IIP), contracted by 5 per cent in October last year. The IIP had expanded by 9.5 per cent in June 2011.
Industrial output growth inthe April-October period this fiscal, however, was 1.2 per cent, less than 3.6 per cent in the same period in 2011-12, according to the official data released here today.
Meanwhile, the contraction in the industrial productionduring September this yearwas revised downward to 0.7 per cent per cent from earlier provisional estimates of 0.4 per cent released lastmonth.
The manufacturing sector, which constitutes over 75 per cent of the index, grewby robust 9.6 per cent in October, as against a contraction of 6 per cent in same month last year.
However, the output of the key sector remained low at one per cent in April-October this year as against 3.8 per cent growth in the same period in 2011-12.
Capital goods output also shown remarkable improvement as it grew by 7.5 per cent in October, as against a massive contraction of 26.5 per centin October 2011.
However, output of capital goods contracted in the April-October period by 11.4 per cent, as against a dip in production by 0.5 per cent in the 2011-12 period.
The factory output, as measured by the Index of Industrial Production (IIP), contracted by 5 per cent in October last year. The IIP had expanded by 9.5 per cent in June 2011.
Industrial output growth inthe April-October period this fiscal, however, was 1.2 per cent, less than 3.6 per cent in the same period in 2011-12, according to the official data released here today.
Meanwhile, the contraction in the industrial productionduring September this yearwas revised downward to 0.7 per cent per cent from earlier provisional estimates of 0.4 per cent released lastmonth.
The manufacturing sector, which constitutes over 75 per cent of the index, grewby robust 9.6 per cent in October, as against a contraction of 6 per cent in same month last year.
However, the output of the key sector remained low at one per cent in April-October this year as against 3.8 per cent growth in the same period in 2011-12.
Capital goods output also shown remarkable improvement as it grew by 7.5 per cent in October, as against a massive contraction of 26.5 per centin October 2011.
However, output of capital goods contracted in the April-October period by 11.4 per cent, as against a dip in production by 0.5 per cent in the 2011-12 period.
Merck & Co Asthma drug patents revoked in India following a challenge from Cipla .
In an order, Assistant Controller of Patents & Designs T V Madhusudhan revoked the patent on the ground that it lacked invention.
"The sole process claim also in its entirety is not inventive as the said claim does not describe any inventive feature," the ordersaid.
"In view of the above conclusion I hereby order that the patent bearing number 246328 is revoked," Madhusudhan said in his order.
Schering Corporation, whichwas later acquired by Merck& Co, had applied for patent of the asthma drug inFebruary 2004, and the Indian Patents Office had granted the patent in March2011. Cipla had challenged the patent.
The development is the latest in a series of patent revocations by India's Patent Office.
Last month, the Intellectual Property Appellate Board (IPAB) had turned down drug firm AstraZeneca's plea for a patent on the lung cancer drug Gefitinib.
Similarly, it had also revoked Pfizer's patent on cancer drug 'Sutent'. The drug was granted a patent in India in 2007 but Cipla had opposed it the following year.
Earlier during the year, India Patents Office had invoked compulsory licensing permitting the Hyderabad-based Natco Pharma to manufacture and sell cancer-treatment drug Nexavar at a price, over 30 times lower than charged by its patent-holder Bayer Corporation.
"The sole process claim also in its entirety is not inventive as the said claim does not describe any inventive feature," the ordersaid.
"In view of the above conclusion I hereby order that the patent bearing number 246328 is revoked," Madhusudhan said in his order.
Schering Corporation, whichwas later acquired by Merck& Co, had applied for patent of the asthma drug inFebruary 2004, and the Indian Patents Office had granted the patent in March2011. Cipla had challenged the patent.
The development is the latest in a series of patent revocations by India's Patent Office.
Last month, the Intellectual Property Appellate Board (IPAB) had turned down drug firm AstraZeneca's plea for a patent on the lung cancer drug Gefitinib.
Similarly, it had also revoked Pfizer's patent on cancer drug 'Sutent'. The drug was granted a patent in India in 2007 but Cipla had opposed it the following year.
Earlier during the year, India Patents Office had invoked compulsory licensing permitting the Hyderabad-based Natco Pharma to manufacture and sell cancer-treatment drug Nexavar at a price, over 30 times lower than charged by its patent-holder Bayer Corporation.
Investor Relations
A corporate function, combining finance, marketing and communications, to provide investors with accurate information about a company's performance andprospects.
IPO Financing
The dollar value of initial public offering (IPO) securities issued in accordance with a TSX or TSX Venture Exchange approved transaction. It is the stated prospectus price multiplied by "the number of securities issued under the IPO plus the over allotment".
Issue
Any of a company's securities or the act of distributing the securities. Issued shares refer to the portion of a company's shares that have been issued for sale. A company does not have to issue the total number of its authorized shares.
Investment Fund
A closed-end fund that offers investors the ability to buy a security that represents a portfolio of investments with a specific investment strategy. These products use funds raised through a public offering to invest in a portfolio of securities, which are activelymanaged to create income streams for investors, typically through a combination of dividends, capital gains, interest payments, and in some cases, income from derivative investment strategies. These funds are not directly related to an operating business. Some examples are: funds of income funds, senior loan funds, mortgage-backed security funds, and commodity funds.
Investment Dealer
Securities firms that employ investment advisors to work with retail and institutional clients. Investment dealers have underwriting, trading and research departments.
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