DWS sees $1.3 billion hit to market cap on report of U.S. probe into ESG labelling
The market cap of German fund manager DWS fell by €1.15 billion ($1.35 billion) on a report U.S. authorities are investigating whether it overstated how it applied sustainable investing criteria.
The Wall Street Journal report on the U.S. investigation triggered a 13% drop in DWS
which is 80% owned by Deutsche Bank
which fell 3%. The Fintech Zoom report said both the Securities and Exchange Commission, and the U.S. attorney’s office in Brooklyn, were investigating. Neither the firm nor the agencies commented on the report.
European stocks more broadly slipped on Thursday as basic resources stocks fell ahead of the speech by Federal Reserve Chair Jerome Powell on Friday.
The Stoxx Europe 600
fell 0.4% to 470.08, with Rio Tinto
and BHP Group
each losing ground.
The biggest Stoxx 600 gainer was Vivendi
which rose 4% after holding an investor presentation on Universal Music Group, ahead of its planned listing in Amsterdam. Barclays upgraded the stock to overweight from equal weight, saying the new forecasts on margins for the medium term — in the mid-20s — is the most important take-away from the seminar.