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COMING UP:Share Opener Variant 2



>> Germany's biggest lender, Deutsche Bank, posted its third consecutive annual loss on Friday, with much of the blame laid firmly at the door of Donald Trump's U.S. tax reform.>>
> Deutsche said the newly lowered federal tax rate from 35% to 21% had reduced the value of its deferred tax assets. These are the profits the companies with subsidiaries abroad previously left in the country of origin so they could defer paying US tax. And Deutsche is not alone in taking a hit.
Last month J.P Morgan recorded $2.4 billion in one time charges. And Citigroup posted an 18 billion quarterly loss, both due to the new law. But as Reuters George Hay explains, this frown could be turned upside down in the long term.>> Our view is that the tax charges are not a massive deal because they're effectively a one-off.
The banks just have to suck up this quarter. They don't actually hit the cash part of the balance sheet. And in the long term, it does mean that the banks will be paying lower taxes in the US. So from that perspective, in the long term, it's a positive.
But, clearly, in the short term, it's making a mess of their results. The bigger problem for Deutsche Bank is actually that this is their third annual loss, basically. It's not just being driven by one-offs. It's being driven by the fact that the revenues in the company are actually kind of going down.
In the three big areas, actually, of Deutsche Bank, they're going down.>> What's also going down is Deutsche's share price. It fell by as much as 6.4% on Friday morning. And that dragged European shares toward their worst weekly loss since August.