(Bloomberg) --
Good morning. Stocks in Asia started the week firmly in the red, Turkey's lira slumped, Greece elected a new leader and Deutsche Bank AG finally laid out what its future looks like. Here's what's moving markets.
Deutsche Bank Retreats
On Sunday, Deutsche Bank released its much-anticipated overhaul plan which includes the creation of a bad bank, retreating from equities sales and trading and cutting about 18,000 jobs. The troubled German lender will book charges of 7.4 billion euros through 2022 and won't pay a dividend this year or next. The board also approved a new management structure and some appointments as it looks to restore investors confidence. Here's a recap of how this once-dominant institution got to this point.
New Greek Rule
Yesterday's election in Greece handed former banker Kyriakos Mitsotakis a mandate to tackle the nation's chronic woes following a decade-long financial crisis, bringing down the curtain on Alexis Tsipras's turbulent term in office. Investors will hope the new center-right leader can help to extend this year's world-beating rallies for Greek assets: the Athens Stock Exchange general index is up more than 45% year-to-date and the country's bonds aren't doing badly either.
Lira, Stocks Slide
Turkey'st lira slumped more than 3% after President Recep Tayyip Erdogan's shock decision to replace the country's central bank governor fueled concern the regulator will lower borrowing costs by more than expected. Stocks in Asia were also under pressure amid geopolitical tensions in the region and investors looked ahead to the week's risk events, including testimony from the Federal Reserve chairman Wednesday. Here's what else economists will be watching this week.
Tory Voting Begins
U.K. Conservative Party members begin voting by post to choose Theresa May's successor, with Boris Johnson set for a landslide victory over rival Jeremy Hunt, according to a YouGov poll. Meanwhile, some Tory lawmakers are attempting once again to stop the new prime minister from forcing a chaotic Brexit without Parliament's consent, while opposition leader Jeremy Corbyn has been urged by Labour Treasury Spokesman John McDonnell to make remaining in the European Union the party's official position.
Coming Up...
Germany industrial production and trade numbers follow Friday's dismal factory orders release, while Euro-area finance ministers meet in Brussels with the new Greek government likely to be among topics for discussion. Teenage sensation Coco Gauff is among those taking part in a packed day of tennis at Wimbledon.
What We've Been Reading
This is what's caught our eye over the weekend.
- Fund manager Epstein arrested for sex trafficking of minors.
- Americans among those gored by bulls at San Fermin.
- Yen's rally won't please rugby fans.
- The Great (Model) Train Robbery.
- Trump “inept” and “incompetent,” British ambassador said in leaked memos.
- Trump joins celebration of U.S. women's World Cup win.
- Starbucks apologizes to cops kicked out of Arizona store.
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