Deutsche Bank's capital-boosting Additional Tier I (AT1) debt issues fell on Monday on worries over future challenges Germany's biggest lender may face in a planned overhaul, the International New York Times reported on a Reuters story. Concerns centered on Deutsche Bank's decision to lower minimum capital buffers, a pool of assets designed to absorb losses, after it launched one of the biggest overhauls of its investment bank since the 2008 financial crisis on Sunday. The debt had earlier risen after Deutsche Bank said it will pay coupons on its bank capital debt.

German engine block and cylinder head maker Weber Automotive has filed for insolvency, following a spat between its family owners and French private equity group Ardian about the right restructuring strategy, Reuters reported. Finances have deteriorated despite solid orders, Weber Automotive said in a statement on Monday as it announced the filing, adding that the owners lacked unity about future financing of the maker of drivetrain components.

A key gauge of the health of Germany’s manufacturing industry sank by far more than expected in May, adding to concerns about the health of the global economy ahead of the release of key US economic data. A steep drop-off in foreign demand is hitting factories across the eurozone and raising expectations that the European Central Bank will revive its crisis-era stimulus, the Financial Times reported. Manufacturing orders in Germany dropped 2.2 per cent month-on-month in May, and were down 8.6 per cent from the same month in 2018.

Germany’s benchmark Bund yield touched a fresh record low on Thursday, as fears about a global economic slowdown and the prospect of renewed eurozone economic stimulus drew investors into government bonds, the Financial Times reported. Demand for the debt sent its yield down to as low as minus 0.403 per cent, taking it deeper into negative territory, meaning any investor holding the paper until maturity faces a loss.

Deutsche Bank AG’s efforts to turn around its struggling investment bank are gaining traction with investors, Bloomberg News reported. The cost of credit insurance on the bank’s riskiest debt fell for an 11th session on Monday, the longest streak of declines in more than two years, according to ICE Data Services. Swaps covering the bank’s safer bonds have also fallen to the lowest in months, the data show.

German luxury TV manufacturer Loewe will cease business operations on 1st July due to insufficient funds, according to reports. Yesterday, German publication Spiegel Online reported that Loewe was bankrupt and planning to shut down operations this weekend, What Hi-Fi? reported. "For reasons of insolvency law, we are therefore obligated to protect our creditors to provisionally suspend operations on 1 July 2019 with the least possible cost burden," said Loewe managing director Ralf Vogt.

Falling morale among Germany’s business leaders has added to the gloom surrounding the eurozone’s biggest economy, as a leading index showed that the mood among managers has weakened to its lowest level in nearly five years, the Financial Times reported. “The German economy is heading for the doldrums,” said the Ifo institute, which recorded a decline in its business climate reading this month to 97.4. That compares with 97.9 a month earlier and in line with economists’ predictions. June’s reading was the fourth decline and the lowest since November 2014 when it touched 96.1.

Earlier this month, following the collapse of merger talks with Commerzbank in April, Deutsche Bank’s share price hit the lowest point of its 149-year history. Fitch, a credit-rating agency, cut the bank’s rating to two notches above junk. In May Christian Sewing, its chief executive, promised “tough cutbacks” in the ailing investment-banking business, with plans to be laid out alongside half-year results on July 24th. But on June 16th a leak in the Financial Times revealed the outlines. The cuts (which Deutsche has not confirmed) go well beyond its investment-banking arm.

Morningstar has suspended its rating on a fund run by H2O Asset Management because of its holdings of illiquid bonds, after a Financial Times investigation into the substantial holdings related to a controversial German financier, the Financial Times reported. The agency, whose assessments are used as a key guide for investors, suspended its bronze rating on H2O’s Allegro Fund, citing concerns over “the liquidity of certain bonds”.

A key gauge of expectations for the German economy plummeted in June, as trade fears, geopolitical tensions and Brexit all weighed on financial executives, the Financial Times reported. The Zew indicator of economic sentiment fell to minus 21.1 this month, dropping 19 points from May and well below expectations of minus 5.9 in a Reuters poll.