video transcript

I'm right this year -- -- cities this thing for Deutsche shot and the city of London still has room to shrink. I'm joined by Edward products of breaking views. Let's start with Deutsche Edward -- rights issue is your message to -- -- Jane and I your impression it is indeed and it's a tough message for them because they've pretty much state their credibility. That claim that they will not unlike a lot of banks need to do writes it's an equity issue. -- that they can generate enough capital to meet regulatory requirements without. We think times have changed on this that the pressure on them is increasing and now's a good time -- -- You but what Dominic says in this piece that heads usually roll when you do an about face like this and about -- like this. Could -- -- throw as a result well they could roll. This is this is probably the best moment to to save you know things have changed enough. Our previous commitment was under previous circumstances we saw pretty do you get Credit Suisse seems to survive it. A similar. About face. And the truth is that the riches right now are a fairly troubled institution in the sense that it has -- more challenges. We capitalization of its its US and business and on going fines and losses in Germany. And has also -- finds. That. It's it's a situation where you might think management continuity is important. On the other hand if James -- gonna go one or two of them are both immigrant ago. It's it's unlikely that a rights issue would be who took the crucial factor would be. The decision that. The bank needs new faces and at this at this moment OK -- let's I want October -- opens as well financial sector has -- -- room to shrink. From what -- doubt about what 10% number of a well professional yeah you can't measure it's not a perfect measure that. I also noted that there's a -- is headcount. List the twenty or thirty largest banks that 28 big banks and how much they've announced they're cutting their headcount in that comes only 5% globally. That includes retail banks but it does suggest this is not really an industry that's in that kinda. Ferraris this crunch -- We had today and another announcement or in indication from the bunker do Valencia in Spain that they -- gonna cut their headcount by 50%. That's what happens when industries are in real trouble up 10% this is Mike trim that are real say the right -- of the -- still a work in progress still has room to get -- that's our view could well if the crisis comes back -- -- -- a lot more. Okay -- many thanks for that Edward had us. For more genocide against -- watch our US show every day 12:30 eastern 1730 GMT IMAX Acropolis is choices.