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Deutsche Bank, UBS stocks sink as fear of European banking crisis returns | CNN Business

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Deutsche Bank, UBS stocks sink as fear of European banking crisis returns | CNN Business


London
CNN
 — 

Europe’s banking shares tumbled Friday as traders acted on their lingering worries that the latest crises at some banks may spill over into the broader sector.

Europe’s Stoxx Europe 600 Banks index, which tracks 42 large EU and UK banks, closed 3.8% decrease. The index is down 18% from its excessive in late February. London’s bank-heavy FTSE 100 index closed down 1.3%.

Shares in Germany’s greatest financial institution, Deutsche Financial institution

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(DB), plunged as a lot as 14.5% earlier than paring its losses to shut 8.5% decrease. Shares in UBS

(UBS) and Credit score Suisse

(CS) had been 3.6% and 5.2% down respectively.

The price of insuring in opposition to a doable default by Deutsche Financial institution on its debt has soared in latest days. Deutsche’s five-year credit score default swaps (CDS) skyrocketed to 203 foundation factors Thursday, based on information from S&P Market Intelligence. That’s their highest stage since early 2019.

The swaps rose once more Friday to commerce at 208 foundation factors at noon ET.

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German Chancellor Olaf Scholz mentioned Friday that there was “no purpose to be involved” about Deutsche Financial institution.

“It’s a really worthwhile financial institution,” he informed reporters in Brussels, the place EU leaders issued a joint assertion describing the European banking system as “resilient, with robust capital and liquidity positions.”

Deutsche Financial institution declined to remark.

“The rising value of insuring CDS senior debt is weighing on Deutsche Financial institution, in addition to different European banks, on considerations over the influence of rising charges on the broader financial system and banks’ stability sheets,” Michael Hewson, chief market analyst at CMC Markets, informed CNN.

Final week, the European Central Financial institution caught with its plan to hike rates of interest by half a proportion level, judging that inflation posed an even bigger risk to the financial system than latest turmoil within the banking sector.

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Then, on Thursday, the Financial institution of England raised its fundamental rate of interest by 1 / 4 of a proportion level after information confirmed a shock spike in inflation final month.

However Susannah Streeter, head of cash and markets at investing platform Hargreaves Lansdown, informed CNN that market nerves had been out of step with actuality.

“Worries about contagion are once more rearing up despite the fact that extra deposits seem to have been flowing into the German lender because the banking scare erupted, and it’s thought to have capital reserves properly in extra of regulatory necessities,” she mentioned.

Some analysts mentioned traders had been rattled by Deutsche Financial institution’s announcement Friday that it could pay again considered one of its bonds 5 years earlier than its maturity date. Traders would normally interpret such a transfer as an indication that an organization is in good monetary well being and capable of pay again its collectors early.

However — after two financial institution collapses in the US and an emergency takeover of Credit score Suisse this month — some traders might have interpreted the announcement as an indication that Deutsche Financial institution is nervous in regards to the state of the banking sector and making an attempt to overcompensate, Jonas Goltermann, deputy chief markets economist at Capital Economics, informed CNN.

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Goltermann mentioned the financial institution’s determination “appears to have backfired.”

Deutsche Financial institution’s determination to pay again the bond forward of schedule was pre-planned and never a response to latest market developments, a supply aware of the matter informed CNN. The bond would have regularly misplaced its eligibility as a type of regulatory capital based on guidelines introduced in after the 2008 monetary disaster, the supply mentioned.

The financial institution changed the bond by issuing one other bond of the identical kind in February, they added.

Shares of Germany’s Commerzbank

(CRZBF) and France’s Société Générale additionally suffered heavy losses, closing 5.5% and 5.9% decrease respectively.

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Final week, Switzerland’s greatest financial institution UBS purchased its embattled Swiss rival for 3 billion Swiss francs ($3.25 billion) in an emergency takeover brokered by the Swiss authorities.

That helped restore some calm to markets rattled by the failure earlier this month of two US regional banks. However traders had been on edge once more Friday.

The falls in UBS and Credit score Suisse come after Bloomberg reported Thursday that the US Division of Justice was investigating whether or not their workers had helped Russian oligarchs evade Western sanctions.

The DOJ had despatched subpoenas to these workers earlier than UBS took over Credit score Suisse, based on the report.

Workers at some main US banks are additionally a part of the probe, Bloomberg mentioned.

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Hewson at CMC Markets mentioned “the DOJ probe into UBS is actually taking part in an element within the share value weak spot” in European banks.

UBS and Credit score Suisse declined to remark to CNN.

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Merz backs Nord Stream ban to prevent US and Russia restarting gas link

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Merz backs Nord Stream ban to prevent US and Russia restarting gas link

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German chancellor Friedrich Merz is “actively” backing a proposed EU ban on the Nord Stream pipelines connecting Russia to Germany in a bid to stop any US and Russian efforts to reactivate the gas links.

Merz’s government earlier this week said it endorsed the ban as part of the bloc’s upcoming round of sanctions against Russia for its war in Ukraine. According to three officials familiar with the matter, the chancellor sought to quell any domestic debates about the merits of a potential reactivation.

Reports in the Financial Times in March about Kremlin-linked Russian and US business people seeking to restart the privately owned pipelines prompted Merz to start discussions with officials in Berlin and Brussels about how to prevent that, one of the people said.

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Adding Nord Stream to the EU sanctions list “potentially removes a political problem for him”, they said.

The punitive measures are also a way for Merz to “Europeanise” the fate of the pipeline, instead of Berlin facing up potential US and Russian pressure on its own, another official said.

While it has no state control over any of the four pipelines currently disabled after explosions damaged three of them in 2022, Berlin would have to grant a certification for any activation of the gas link.

The EU restrictions would target Nord Stream 2 AG, the Switzerland-based entity that owns the pipelines, and any other companies — Russian or otherwise — that are necessary for its restart and operation, people familiar with the plans told the FT.

European Commission president Ursula von der Leyen last week mentioned Nord Stream as part of the “new package of sanctions” her team was working on. She made those remarks having first consulted with Merz, who gave his support for the move, according to a person familiar with the discussions.

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The commission was set to begin formal discussions with EU governments this weekend, the people added. They can only be adopted with the unanimous support of all capitals.

A brainchild of former chancellor Gerhard Schröder, who had close relations with Putin and was later hired by Kremlin-backed Gazprom, Nord Stream was once a symbol of the deep economic ties between Russia and Germany.

Even before Moscow launched its full-scale invasion of Ukraine in 2022, the link was a bone of contention between Berlin and Washington, with the first Trump administration urging then chancellor Angela Merkel to reduce her country’s energy dependence on Russia.

Matthias Warnig, a former Stasi spy and close friend of Putin, has discussed a restart of the pipeline with the backing of US investors, people with knowledge of the talks said previously. Warnig was seeking to leverage US President Donald Trump’s desire for economic rapprochement with Moscow, they said.

“It is correct that the chancellor actively supports sanctions against Nord Stream 2,” a government spokesman said, adding: “One of the aims of our sanctions is to cut off Russia from revenues that could be used to finance its war of aggression against Ukraine in violation of international law. This includes revenues from the export of fossil fuels.”

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Trump’s efforts to negotiate a settlement with Russia over Ukraine have rekindled a debate in Germany over Nord Stream and Russia gas, which accounted for more than half of German gas imports before 2022.

A survey by Forsa found that 49 per cent of residents of Mecklenburg-Vorpommern, the German state where Lubmin, the pipeline’s terminus, is located, were in favour of resuming Russian gas supplies.

The far-right Alternative for Germany, which has secured more than 20 per cent of the votes nationwide in February elections, has called for bringing the pipelines back online as the Eurozone’s largest economy grapples with high energy prices and stagnation.

This view is shared by some business leaders and politicians from Merz’s centre-right Christian Democratic Union (CDU) and his centre-left coalition partners, the Social Democrats. The Green opposition has blamed remnants of the “Moscow connection” within Germany’s mainstream parties.

In March, Michael Kretschmer, the CDU prime minister of the east German state of Saxony, said that maintaining punitive measures against Moscow was “completely out of date and does not fit at all with what the Americans are doing right now”.

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Responding to reports by the FT and others about Nord Stream, CDU MP Thomas Bareiß in a LinkedIn post saluted “how business-minded our American friends are”.

Dietmar Woidke, the SPD prime minister of the east German state of Brandenburg, called for a normalisation of Germany’s trade relations with Russia after a peace agreement.

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'Leap together,' Kermit the Frog says in address at University of Maryland graduation

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'Leap together,' Kermit the Frog says in address at University of Maryland graduation

Kermit the Frog speaks during University of Maryland’s commencement ceremony on Thursday, May 22, 2025, in College Park, Md.

Riley Sims/University of Maryland


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Riley Sims/University of Maryland

COLLEGE PARK, Md. — Kermit the Frog knows it’s not easy being green — or graduating from college and entering the real world, especially during a time of economic uncertainty and political turmoil.

Members of the University of Maryland’s class of 2025 received their diplomas Thursday evening with sage advice from the amphibious Muppet ringing in their ears.

“As you prepare to take this big leap into real life, here’s a little advice — if you’re willing to listen to a frog,” the beloved Muppet said. “Rather than jumping over someone to get what you want, consider reaching out your hand and taking the leap side by side, because life is better when we leap together.”

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The university announced in March that Kermit, who was created in 1955 and became the centerpiece of the Muppets franchise, would be this year’s commencement speaker. He is also no stranger to the school.

Muppets creator Jim Henson graduated from Maryland in 1960. A home economics major, he fashioned the original frog puppet from one of his mother’s coats and a Ping-Pong ball cut in half, according to a statement from the university. Henson died in 1990.

Kermit the Frog speaks during University of Maryland's commencement ceremony on Thursday, May 22, 2025, in College Park, Md.

Kermit the Frog speaks during University of Maryland’s commencement ceremony on Thursday, May 22, 2025, in College Park, Md.

John T. Consoli/University of Maryland


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A bronze statue of Henson and Kermit sitting on a bench is a well-known feature of the College Park campus.

In a video announcing the speaker pick, Kermit is described as an environmental advocate, a bestselling author, an international superstar and a champion of creativity, kindness and believing in the impossible.

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His speaker bio calls him “a star of stage, screen and swamp” whose simple mission is to “sing and dance and make people happy.”

“I am thrilled that our graduates and their families will experience the optimism and insight of the world-renowned Kermit the Frog at such a meaningful time in their lives,” university President Darryll J. Pines said in a statement.

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Read the Full ‘Make America Healthy Again’ Report

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Read the Full ‘Make America Healthy Again’ Report

activity, and overall diet quality to isolate the impact of UPF consumption on mortality risk.
As the consumption of UPFs has surged, children are increasingly neglecting the whole foods essential for their health. 141 142 Approximately 50% of children ages 2 to 18 skip discrete fruit entirely on any given day. 143 Research consistently shows that key micronutrients such as calcium, iron, potassium, and vitamin D, which are found in fruits and vegetables, are essential for children’s physiological functioning.1

144 145 146

Research also consistently links diets centered on whole foods to lower rates of obesity, type 2 diabetes, heart disease, certain cancers, and mental illness. 147 148 This is not surprising. Diet and lifestyle significantly influence gene expression and cellular biology – ultimately determining our health outcomes. 149 150 For instance:
• Leafy greens supply magnesium and folate critical for energy production and other benefits.151
Salmon delivers omega-3 fatty acids that help reduce cardiovascular risk and support brain health. 152 153
• Legumes offer fiber and resistant starch that help nourish beneficial gut bacteria. 154 155

141 Guthrie, J. F., & Lin, B.-H. (2024). Peeling open U.S. fruit consumption trends (Economic Research Report No. 341). U.S. Department of Agriculture, Economic Research Service. https://www.ers.usda.gov/publications/pub-details/?pubid=110658. 142 Kim, S. A., Moore, L. V., Galuska, D., Wright, A. P., Harris, D., Grummer-Strawn, L. M., Merlo, C. L., Nihiser, A. J., & Rhodes, D. G. (2014, August 8). Vital Signs: Fruit and vegetable intake among children-United States, 2003-2010. MMWR. Morbidity and Mortality Weekly Report, 63(31), 671–676. https://www.cdc.gov/mmwr/preview/mmwrhtml/mm6331a3.htm.
143 Hoy, M. K., Clemens, J. C., & Moshfegh, A. J. (2021, June). Intake of fruit by children and adolescents: What We Eat in America, NHANES 2017-2018 (FSRG Dietary Data Brief No. 38) [Data brief]. United States Department of Agriculture. https://www.ncbi.nlm.nih.gov/books/NBK588714/.
144 Panzeri, C., Pecoraro, L., Dianin, A., Sboarina, A., Arnone, O. C., Piacentini, G., & Pietrobelli, A. (2024). Potential Micronutrient Deficiencies in the First 1000 Days of Life: The Pediatrician on the Side of the Weakest. Current obesity reports, 13(2), 338–351. 145 Rivera, J. A., Hotz, C., González-Cossío, T., Neufeld, L., & García-Guerra, A. (2003). The effect of micronutrient deficiencies on child growth: A review of results from community-based supplementation trials. The Journal of Nutrition, 133(11), 4010S-4020S. https://doi.org/10.1093/jn/133.11.4010S.
146 Soliman, A., De Sanctis, V., & Elalaily, R. (2014). Nutrition and pubertal development. Indian journal of endocrinology and metabolism, 18(Suppl 1), S39–S47. https://doi.org/10.4103/2230-8210.145073.
147 Sofi, F., Cesari, F., Abbate, R., Gensini, G. F. & Casini, A. (2008) Adherence to Mediterranean diet and health status: meta-analysis. BMJ 337, a1344.
148 O’neil, A., Quirk, S. E., Housden, S., Brennan, S. L., Williams, L. J., Pasco, J. A., … & Jacka, F. N. (2014). Relationship between diet and mental health in children and adolescents: a systematic review. American journal of public health, 104(10), e31-e42. 149 Landecker, H. (2011). Food as exposure: Nutritional epigenetics and the new metabolism. BioSocieties, 6(2), 167
150 Mierziak, J., Kostyn, K., Boba, A., Czemplik, M., Kulma, A., & Wojtasik, W. (2021). Influence of the bioactive diet components on the gene expression regulation. Nutrients, 13(11), 3673.
151 Duthie, S. J. Folate and cancer: how DNA damage, repair and methylation impact on colon carcinogenesis. (2021) J. Inherit. Metab. Dis. 34, 101–109 (2011); Liu, D. et al. Increased provision of bioavailable Mg through vegetables could significantly reduce the growing health and economic burden caused by Mg malnutrition. Foods 10, 2513.
152 Tsoupras, A., Brummell, C., Kealy, C., Vitkaitis, K., Redfern, S., & Zabetakis, I. (2022). Cardio-protective properties and health benefits of fish lipid bioactives; the effects of thermal processing. Marine Drugs, 20(3), 187.
153 Innes, J. K. & Calder (2020), P. C. Marine omega-3 (n-3) fatty acids for cardiovascular health: an update for 2020. Int. J. Mol. Sci. 21, 1362.
154 Chen, Z., Liang, N., Zhang, H., Li, H., Guo, J., Zhang, Y., Chen, Y., Wang, Y., & Shi, N. (2024). Resistant starch and the gut microbiome: Exploring beneficial interactions and dietary impacts. Food Chemistry: X, 21, 101118.
155 Kadyan, S., Deka, G., Mudi, S. R., Bhardwaj, N., Singh, V., & Yadav, D. (2022). Prebiotic potential of dietary beans and pulses and their resistant starch for ageing-associated gut and metabolic health. Nutrients, 14(9),

1726. https://doi.org/10.3390/nu14091726.

The President’s Make America Healthy Again Commission

THE WHITE HOUSE

WASHINGTON

25

25

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