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FT: Deutsche Bank to move more work from London

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Deutsche Bank is moving more of its banking business out of London, according to the Financial Times this morning.

The report says that Deutsche Bank is under pressure from the European Central Bank to reorganise its business, which could involve making its UK operation into a ringfenced subsidiary and shifting more business and capital back to Frankfurt.

However the moves will not, initially, have an affect on jobs, the report said.

Diamond: Everyone was doing it

Today Programme

BBC Radio 4

Bob Diamond
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It was only three years ago that Barclays was fined a record $2.38bn in the US for rigging forex and other markets between 2007 and 2012.

Bob Diamond was chief executive towards then end of that period and resigned a week after the bank was fined £290m in the US and the UK for trying to manipulate inter-bank lending rates.

Was there a culture of dishonesty and even criminality at Barclays?

"I would turn it around a little bit," says Mr Diamond. "I think...[it] was happening in the FX markets broadly. I think we all see today that that was an industry wide behaviour.

"Activities of those traders was reprehensible. Of course, Barclays was a part of it, as was JP Morgan as was HSBC as was Deutsche Bank but at a very minor level relative to the others."

He adds: "I don't think that represents the culture of what we had at Barclays. I think we had a very, very strong culture and it is the single biggest reason that we were able to manage as effectively during the financial crisis relative to other UK banks as we did."

Deutsche Bank profits down

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Deutsche Bank reported net income of €401m (£356m) in the second quarter, that's down 14% compared to the same period of last year.

In April the bank dismissed chief executive John Cryan after three years of losses.

His replacement Christian Sewing has accelerated a revamp of the business, which includes job cuts and strengthening the balance sheet.

What's in today's papers?

Today's business pages

There's a mixed bag of stories in today's business sections. The Telegraph leads with that Netflix story, headlining with: "Netflix hit by slowdown in subscriber growth", which perfectly sums it up.

The FT has: "Deutsche poised for profits bounce". The paper reports that Deutsche Bank's second quarter profits of about €700m were double estimates.

The Times reports: "John Laing fund jumps on sale talks". Shares in the fund jumped a fifth yesterday.

The Mail's lead business story is: "China's £1.8bn raid for British tech talent". It says another UK chip firm - Telit - fell into Beijing hands yesterday.

Deutsche stock rises despite stress test fail

Deutsche Bank offices
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Despite failing the Federal Reserve's stress tests, Deutsche Bank is trading up around 1.6% this morning.

The tests by the US central bank are designed to assess how well banks can hold up under another financial crisis - and found "widespread and critical deficiencies" at the German lender.

Deutsche's price rise is in line with increases across the board this morning amongst DAX companies.

Several banks accused of criminal offences in Australia

Australia and New Zealand Banking Group
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Australia and New Zealand Banking Group (ANZ) and its underwriters Citigroup and Deutsche Bank have been accused by Australia's competition regulator of committing criminal cartel offences.

ANZ is one of Australia's "big four" banks.

The charges relate to a $2.3bn share issue, and criminal charges have been made against several senior executives including Michael Ormaechea and Michael Richardson, both formerly of Deutsche Bank, ANZ's treasurer Rick Moscati, and Citigroup's John McLean, Itay Tuchman and Stephen Roberts.

Fresh blow for Deutsche Bank as rating cut

Deutsche Bank branch
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The credit rating of Germany's biggest lender, Deutsche Bank, has been cut by Standard & Poor's.

Deutsche Bank announced more than 7,000 job cuts last week as part of its attempts to return to profitability, but ratings agency S&P has now cut its rating on the bank to BBB+ from A-.

S&P had warned in April that it could downgrade Deutsche after the bank changed its chief executive.

John Cryan was sacked by the bank, and was replaced by Christian Sewing.

In response to S&P's downgrade, Mr Sewing said: "At group level, our financial strength is beyond doubt."

Deutsche Bank: Where the axe will fall

Christian Sewing
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More on those 7,000 job losses at Deutsche Bank. The bank, Germany's biggest lender, says a quarter of the jobs in its equities and sales trading business will be hit by the cuts.

Deutsche plans to reduce its investment banking activities as it makes big efforts to return to profitability. Chief executive Christian Sewing (pictured) said the bank "must concentrate on what we truly do well".