All Eyes on Deutsche Bank Ahead of What Should Be Miserable Earnings or Lack Thereof

I hope you’re all enjoying the markets today, the little boy on the tricycle — hastily speeding around the edges of a volcano. There are so many narratives to talk about, in light of the recent blow ups at UA-CMG-AAPL. But I’d prefer to fixate on DB.

Their earnings are coming out tomorrow and they’re expected to post dismal results, a loss in the magnitude of 610m euros. Sales are expected to decline as much as 12% to 1.9b euros. And, moreover, they’ll likely discuss the evergreen burden of litigation costs — in light of the DOJ’s $14b fuck you.

I expect numbers to come in much worse than expected, especially since the company was under extreme duress for most of the quarter. Full disclosure, I am short DB and hope and pray to the Gods that it unravels like a ball of yarn — sliding down a steep ramp and into the claws of a vicious cat.

That being said, the price action of the market is reminiscent of dozens of apathetic tapes prior to a big move. Naturally, there are those who believe that move is going to be higher — all entirely possible. My only reservation against the bullish backdrop is the inexorable fact that nothing on the ground speaks to an energetic economy. It seems to me, the only spirited rise these days is in populism — seeing Americans wake up to the rot and waste around them.

Nonetheless, central banks will continue to rig markets in order to preserve their place atop the capstone of the ruling elite. But every so often, the plebeians get to peer at the hideous visage — marred by decades of corrupt and overzealous policies. I do believe we will see such a thing in the earnings of DB tomorrow.