Deutsche Bank reviews cutting UK presence in Brexit scenario
Germany's trade surplus to rise to a new record level in 2015
Germany's trade surplus is expected to rise to a new record in 2015 thanks to falls in the prices of imported oil and gas, Der Spiegel reported on Saturday.
The Finance Ministry is estimating a trade surplus of 8.1 percent of economic output after 7.6 percent last year, the magazine said, citing an internal ministry document.
The lower cost of imports of oil and gas is expected to boost the trade balance by around 1.2 percent alone, the document said. Without the decline in oil and gas prices, the trade surplus would have fallen compared with the previous year.
Germany has come under international pressure to reduce its trade surplus, which critics say contributes to imbalances in the world economy.
In a report published last month, the International Monetary Fund said Berlin should focus on bolstering medium–term growth and reducing external imbalances.
The European Commission considers trade surpluses that are repeatedly over 6 percent of economic output as dangerous for stability and has urged Germany to undertake more investment to stimulate imports.
Despite a fall in exports in June, the larger net balance between exports and imports meant that the trade surplus widened to a record 24.0 billion euros ($26.19 billion), data published on Friday showed.
Ruining the competition has its good sides for those that did it. That was the intention from the EU begining
I'm just wondering what brought them together in the first place. Eurozone and EU still flaw
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Deutsche Bank (DE:DBKGn), the euro zone's second-largest bank by assets with large operations in Britain, has begun initial preparations for a possible UK exit from the European Union as Prime Minister David Cameron readies a referendum on the matter.
Germany's largest bank launched a working group to consider moving some operations to Germany or elsewhere in the euro zone in case of a so-called Brexit, a spokeswoman for the bank said.
The high-level working group - which includes executives in strategy, risk, UK management and research divisions - will examine different Brexit scenarios and their implications for the bank's large business in Britain, the spokeswoman said.Deutsche has 16 locations in Britain, down from 21 five years ago, with just under 9,000 employees. Its presence in Britain since dates back to 1873.
Other banks with large operations in Britain are expected to begin examining implications of a possible Brexit, which would be frowned upon by most business lobbies if it limited UK access to its largest trading partners in Europe.Cameron, who won a majority in the May 7 general election, has pledged to renegotiate Britain's ties with Europe and then give voters an in-out referendum on EU membership by the end of 2017.
Deutsche's contingency planning comes after Bank of England Governor Mark Carney said it was important that the British government provide clarity on how it will proceed with the referendum.
A Downing Street spokesman had no immediate comment.
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