Deutsche Bank is set to warn that a recent slowdown in fixed income trading will drag down revenue growth in the third quarter, adding to the gloom among investment banks about conditions in the debt markets.
The Financial Times reports that the bank is expected to give an update on trading conditions next week at a banking conference in London, where its co-chief executive Anshu Jain is due to speak on Wednesday.
Jain is expected to confirm that revenues in the bank’s fixed income division are likely to be lower than in the third quarter of 2012.
In the meantime, Bloomberg reports that Uitech Ltd, an Indian property firm, won permission from a London judge to argue that Deutsche Bank dishonestly fixed interest rates in a U.K. trial over a derivative contract.
While Unitech can’t use rigging allegations to annul the disputed interest-rate swap, it can file a counter-claim for damages caused by the German lender’s alleged attempts to influence the London interbank offered rate, Judge Nigel Teare said Friday.