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Deutsche Bank shares have traded above their book value for the first time since the start of the global financial crisis, marking a milestone in the turnaround of Germany’s largest lender after years of legal setbacks, writedowns and restructuring.

The stock rose to €33.95 in early trading on Monday, climbing above the bank’s most recent reported book value per share of €33.66, a measure of total assets minus liabilities excluding shareholders’ equity.

Price to book ratio is a key valuation metric for banks, reflecting investor confidence in a lender’s assets, returns and growth outlook. Deutsche had traded at a discount to its book value since early 2008, when doubts about the health of the banking sector were mounting in the early stages of the financial crisis.

Passing the milestone is a boost for chief executive Christian Sewing, who has vowed to turn the lender into “the European champion in banking”.

At its lowest point in March 2020, the stock fell below €5, or 0.19 times book value, with investors fearing that the economic downturn caused by the Covid-19 pandemic could derail Sewing’s restructuring plan.

At the time, Deutsche’s earnings were dragged down by the European Central Bank’s negative interest rates as well as billions of euros in restructuring costs, while its job-cutting plans were hit by delays.

Investor confidence has slowly returned during a broad three-year rally in European bank shares. Deutsche has resolved long-running legal battles, including relating to mis-selling of mortgage-backed securities, exited lossmaking ventures such as its equities trading division, and increased its focus on fixed-income trading and corporate banking.

Despite roughly doubling over the past year, the German bank’s shares are still around half their level in early 2008. The bank’s market capitalisation — then about €35bn — has risen to about €65bn, after it raised about €33bn in fresh equity, most recently in 2017, to shore up a balance sheet hit by legal penalties and the costly acquisition of retail lender Postbank.

Deutsche reported in October its highest nine-month profits since 2007.

Berlin’s debt-financed investment drive is expected to benefit Deutsche’s investment banking arm as an adviser on sovereign bond issuance and corporate restructuring, according to analysts, while its lending business should profit from rising corporate credit demand.

Some investors remain cautious. “The recent share price gains simply reflect the move from negligible earnings to average profitability,” said Andreas Thomae, a strategist at Deka, a top-20 shareholder.

Analysts are confident Deutsche will hit its target of a 10 per cent return on tangible equity — a key profitability measure — when it reports its results for 2025. Its goal of reaching returns of 13 per cent by 2028 still lags those of European peers, which are aiming for up to 22 per cent.

Deutsche “will never reach the profitability levels of BBVA or Santander”, Thomae said, citing the bank’s capital-consuming investment banking division.

Despite the recent rally in the bank’s share price, its annualised total return over the past decade still trails the Stoxx600 Banks index as well as rivals such as Italy’s UniCredit and France’s BNP Paribas.

Deutsche’s performance is also overshadowed by domestic rival Commerzbank, whose price-to-book ratio has rebounded from 0.13 in March 2020 to more than 1.4 in 2025, helped by a potential takeover offer from UniCredit.

Deutsche’s problems integrating Postbank have weighed on its retail arm, though profitability has improved after branch closures and job cuts. DWS, its asset management arm, continues to face pressure in alternative investments despite inflows into low-margin passive products such as exchange traded funds.

While DWS is looking for acquisition targets, Sewing has ruled out major deals by the parent group. “When I still have the chance to get significantly better through my own effort, I don’t want to let anything hold me back from that,” he said last year.

Map the biggest risks and opportunities in 2026 with this series of articles based on insights, commercial and operational trends, as well as shifting regulation. Explore key trends in AI, cybersecurity, employment, trade, tax, M&A and more, and discover practical insights to help take strategic action for a strong start to 2026.

It’s just after five o’clock in the morning. While no one knows exactly what’s going to happen in an hour, many people have already gathered on the roads of the Turkish town of Göreme. Bundled up, they sip on their tea, check the battery level of their cell phones, and wait for the sign.

There’s snow on the ground in Cappadocia, which makes the plans all the more complicated. The thermometer reads minus nine degrees Celsius as light begins to fill the sky above the Central Anatolia region little by little. The volcanic landscape with its mysterious rock formations begins to take shape in a haze along the horizon, offering a preview of an area that, according to an old legend, once served as a playground of the gods.

The light dusting of snow – like a sprinkle of icing sugar – makes the landscape even more magical. Cappadocia is supposedly home to hundreds of thousands of the unusual tuff formations, which magically sprout out of the ground like asparagus spears and are reminiscent of pointed hats and giant mushrooms. 

Researchers agree that it took nature thousands of years to create this work of art. In addition to admiring the rocks, Cappadocians have also carved their homes and even churches into them. The rock formations were added to the UNESCO World Heritage list in 1985.

The new Porsche Macan 4S will put its off-road capabilities to the test in Cappadocia, which it’s well equipped to do as standard. Both axles are driven by an efficient, powerful electric motor. When Launch Control is activated, the system output is 380 kW (516 PS) with a torque of 820 Nm. To minimize slip to the highest degree possible, the electronics control the interplay of both electric motors almost in real time. In other words, Porsche Traction Management (ePTM) distributes the immense power within ten milliseconds, which is around five times faster than conventional all-wheel drive systems.

Adventure beyond the asphalt 

When the Macan 4S’s Matrix Design LED headlights illuminate the first rock formations in Göreme, sunrise is no longer far off.

Atıl Ulaş Cüce is taking us down narrow tracks that have never seen asphalt. The Cappadocia expert has been guiding tourists through the fascinating landscape in the heart of Türkiye for nearly 30 years, including some Porsche drivers. But none of them have gone as deep into the landscape as we will today, he says. The closer the Macan 4S gets to the mountains, the more demanding the route becomes, gradually deteriorating into ruts and bumps. Atıl’s face betrays his growing concern.

Two taps on the central display – and his smile is back. The activated off-road driving mode controls the all-wheel drive on challenging tracks. A virtual center differential lock limits the differential speed between the front and rear axles, which maximizes traction. The chassis also lifts to off-road height, with an additional 20 millimeters in the first setting.

And if you opt for special terrain, the Macan 4S offers an increase in ground clearance of 40 millimeters. The optional off-road design package offers an approach angle of up to 17.4 degrees at the front of our vehicle. It’s unanimous: these 4×4 options are a game changer. The Macan can now navigate the terrain with confidence and ease. From the front seats, we can see how wild the tracks become, but don’t feel any strain in the chassis or the drive.

Atıl’s cell phone rings, which is the sign we’ve been waiting for: the hot-air balloons will fly at sunrise. The atmosphere changes instantly in the playground of the gods. We park the Macan 4S on a hill and watch as the valley fills with buses big and small. Among them, there are old off-road vehicles towing balloon baskets on long trailers. And then pink American convertibles from the 1970s maneuver into position. Their drivers have brought changing rooms made of tent material. Balloon trips are now the top tourist attraction in Cappadocia. When they start, it’s about so much more than just extraordinary views. It’s also about creating the perfect picture.

One Porsche and a hundred balloons

A short time later, the first 20 balloons lift off. The flames of their burners illuminate the envelopes, together creating an absolutely breathtaking postcard image. Colorful balloons float over a valley full of bizarre rock formations as the sun rises. What sounds kitschy is actually kind of magical. And in the center of it all – the new Macan 4S in Oak Green Metallic – like an object from the future. “It’s like nothing else, isn’t it?” asks Atıl, his eyes sparkling. Even after his many years in Cappadocia, he’s never grown tired of this sight. And we can understand why.

The spectacle continues for about an hour. Around a hundred of the 170 hot-air balloons with an official permit are floating around us today. This number not only seems gigantic, it actually is. You could compare it with a bee colony scouring a single shrub for nectar all at once.  

We follow one of the colorful balloons to its landing location. The route takes us through the rocky landscape – the tall, narrow rocks standing there like silent observers, the guardians of Cappadocia. 

“Before the balloons began flying, I would take tourists hiking here,” says Atıl, showing the way. “There are some people who still hike, and others who only come for the balloons. The times are changing, and balloons are now the main attraction.”

Çağlar Aksoylu lands the basket of his balloon directly on the trailer to the cheering and applause of the 18 passengers. Çağlar, sporting a pair of reflective sunglasses, responds with a wide grin. The 35-year-old former basketball player has been a professional balloon pilot for four years. “I even help develop the balloons, baskets, and burners. We produce them here in the area,” he explains proudly. What does he like most about his job? “I can float on a cloud every day.”

News of the attraction seems to have spread far and wide around the world, accelerating local demand. How did it all start? “A German tour operator came up with the idea of flying a hot-air balloon over Cappadocia in the early 1990s,” explains Atıl. When the contract expired, the balloon pilot stuck around and continued offering flights. The services available expanded over the years to keep up with the interest. Social media ultimately fueled demand like a turbo engine.

Located in the village of Ayvali some 20 minutes away, the Green Garden restaurant seems like the polar opposite of this development.

The Macan 4S flaunts its softer side on the road, offering a quiet and highly comfortable drive, thanks in large part to the successful suspension management (PASM). With its two-valve technology, PASM can control the rebound and compression stages separately – and thus switch from performance to comfort in the blink of an eye. Or the other way around. Available in the Macan for the first time, rear-axle steering offers a steering angle of up to five degrees – yet another comfort highlight. 

With 15 percent more direct steering ratio at the front axle, the increase in agility is most noticeable in dynamic performance. But rear steering can also help in city traffic and maneuvering, with the rear wheels turning in the opposite direction of the front wheels at speeds of up to around 80 kmh. 

Güler Gürbüz is beaming from ear to ear as we enter her Green Garden restaurant, where she cooks traditional cuisine. Her most important tool is a special outdoor oven clad in terra-cotta, with which she prepares extremely tender meat dishes. Atıl tells us there are only two ovens like it remaining in the region.

After the meal, Atıl takes us out to see a stunning gorge. A steep track wide enough just for us leads downward. There’s a phone number written on the striking rock walls. “That’s the towing service, in case anyone in a rental car gets stuck. It happens often enough,” explains the guide. The Macan 4S handles the track with ease – on the way down and then back up again.

Stress-free charging

We take a leisurely drive back to Göreme at the end of the day. All the excitement of the morning has dissipated, and the tourists are all happily seated in the many restaurants. The Macan pulls up to one of the few charging stations in the small town. The high-voltage battery with 100 kWh of gross energy content is at around 45 percent. Thanks to the 800-volt system, the SUV battery could theoretically charge from 10 to 80 percent in just 21 minutes* if a CCS fast charging station were available. Here in Göreme, it’s 10.9 kW. But that’s not an issue, as we’re not going anywhere else today and can simply charge overnight.

Our last appointment for the day is a three-minute walk up the mountain to the hotel that Zehra Daşdeler took over from her father. Nestled in a picturesque landscape, Amber Cave Suites is not just any hotel, as its rooms are built inside fairy chimneys – the tall, narrow rock formations the Cappadocians once carved their homes into. Guests have the opportunity to sleep in a cozy cave, without having to give up any of the amenities of a good hotel. Zehra operates the hotel with lots of love, creating an ambience that’s as tasteful as it is extraordinary.

When she was growing up here, life and tourism were not quite so fast-paced. “Back then, people came for one or two weeks. Now they stay for a night or two. Some are only interested in taking a few photos for Instagram. But that, too, will change again.”

Her words echo as we embark on our journey of discovery at the next sunrise. With the Macan 4S’s battery full and the off-road program activated, we set off at a leisurely pace and let the day unfold. 

Atıl takes us to a climbing trail for cars, where the sun appears to jump back and forth between the rocks as it rises. That’s the magic of Cappadocia – a playground of the gods.

Info

Text first published in the Porsche magazine Christophorus 415.

Text: Dani Heyne
Images: Philipp Rupprecht

Copyright: All images, videos and audio files published in this article are subject to copyright. Reproduction in whole or in part is not permitted without the written consent of Dr. Ing. h.c. F. Porsche AG. Please contact newsroom@porsche.com for further information.

The UK is poised for a rise in unemployment in 2026 fuelled by the collapse of “zombie” companies that have struggled to adapt to a rise in business costs, according to a report.

At the start of what could be a pivotal year for the economy, the Resolution Foundation said businesses were grappling with a “triple whammy” of multiyear increases in interest rates, energy prices and the minimum wage that could “finish off” some underperforming companies.

Publishing its new year outlook report, the thinktank said 2026 had potential to be a “turning point” after decades of sluggish productivity growth – a key metric of output per hour of work which is vital for raising living standards.

However, it warned this could involve a sharp rise in unemployment as more unproductive companies go bust.

Ruth Curtice, chief executive of the Resolution Foundation, said there were indications 2026 could be remembered as a “turning point year” by future economists and demographers.

“There are early and encouraging signs of a mild zombie apocalypse, where higher interest rates and minimum wages have combined to kill off struggling firms and leave the door open for new, more productive ones to replace them,” she said.

“But while this is good news for our medium-term economic prospects, the short-term impact could be job displacement and higher unemployment. Policymakers will need to redouble efforts to address this problem.”

Unemployment in the UK has reached the highest level outside the Covid pandemic in a decade, with the headline rate hitting 5.1% in October as employers held back on hiring before Rachel Reeves’s autumn budget.

Business leaders have said tax increases and a rising living wage are among contributing factors deterring employers from taking on staff.

Experts have warned for several years that Britain has been held back by so-called “zombie firms” – companies which barely make enough money to cover their costs but just about stay in business – preventing the allocation of resources to more productive sectors of the economy.

Economists have suggested that low interest rates in the years since the 2008 financial crisis contributed to this, as cheap borrowing costs helped debt-laden companies to stay afloat.

Businesses have come under pressure from 14 consecutive Bank of England rate increases between December 2021 and August 2023, designed to tackle inflation. While the Bank has since cut the base rate six times – from a peak of 5.25% to 3.75% – firms’ operating costs remain higher than before the Covid pandemic.

In a sign of the pressure, the British Chambers of Commerce (BCC) warned in a separate report that business confidence slumped to the lowest level in three years in the final quarter of 2025.

In a survey of more than 4,600 firms carried out between 10 November and 8 December – straddling Reeves’s 26 November budget – the lobby group found that tax was the biggest business concern, followed by inflation.

Fewer than half (46%) of companies said they expected increased turnover over the next 12 months, while nearly a quarter (24%) expected a decrease. Only 19% had increased investment and 27% had scaled back plans.

David Bharier, head of research at the BCC, said: “Our data shows more clouds have gathered over business confidence, and the outlook for SMEs in 2026 is unsettled.”

The Resolution Foundation said there were early signs that Britain’s productivity growth was being boosted by “creative destruction”, whereby newer and better firms, products or processes replace older, less-efficient, ones. Adoption of artificial intelligence technologies could also be playing a role, it said.

However, it said the short-term impact from job losses would be “hugely difficult,” and urged the government to focus on supporting living standards.

“Amidst this change one thing that isn’t changing enough is disposable income growth, which is set to grow at mediocre rates for the rest of the parliament,” Curtice said.

“We must hope – but more importantly act – to ensure that 2026 is a turning point year for lifting living standards too.”

BAC NINH, Vietnam — The transformation of Vietnam’s Bac Ninh is evident in the signs above its shops and the spicy Chinese and Korean dishes on its tables.

Once known for its rice fields and the love duets of its centuries-old Quan Ho folk songs, the city just north of Hanoi has become one of Vietnam’s busiest factory zones, reflecting a surge of investment, hastened by President Donald Trump’s tariff hikes, that are reshaping the region.

The economy has profited from friction between Washington and Beijing as factories shifted out of China, joining earlier waves of foreign investment by the Japanese and South Koreans that have made Vietnam a global manufacturing hub. But rising labor costs, worker shortages and inadequate infrastructure are exposing the limits to its rapid rise.

With rivals like Indonesia and the Philippines competing hard for new projects, Vietnam is trying to climb into higher-value manufacturing and expand export markets to maintain that momentum. That effort is evident in Bac Ninh.

Traditionally a center for artisans, Bac Ninh’s first boom began around 2008 when Samsung built its first phone factory there, turning Vietnam into its largest offshore manufacturing base.

Now, Chinese companies are pouring in as they diversify their factory locations to skirt U.S. tariffs and other trade restrictions. After Hanoi and Beijing normalized ties in the 1990s, inflows of Chinese investment began to pick up as Chinese firms in places like Bac Ninh tapped Vietnam’s electronics supply chain, labor force and supportive local governments, often aided by Chinese-speaking intermediaries who smooth paperwork and logistics.

But Vietnam is too small to replace China, whose economy is 40 times larger, as the world’s factory floor. To try to keep up, its leaders are building new infrastructure, including a highway to the Chinese border that has cut travel time by more than an hour. A railway will connect Hanoi to Haiphong — Vietnam’s largest seaport — and then the border town of Lao Cai.

On Dec. 19, Bac Ninh broke ground on the expansion of an industrial zone for high-tech manufacturing, including electronics, pharmaceuticals and clean energy. It’s part of a synchronized nationwide push in which Vietnam launched 234 major projects worth more than $129 billion just weeks before a pivotal National Party Congress in January, when leaders will decide the country’s political leadership and economic direction.

In Bac Ninh’s downtown, a convenience store bears the name Tmall, after Alibaba’s flagship online marketplace. Signs in Chinese advertise services for investors. Chinese–Vietnamese language schools have opened to help locals and Chinese to learn each others’ languages.

But as Chinese companies compete for the best labor and other resources, costs are rising for the “China plus one” strategy of moving factories out of China to other locations, for example, Apple’s shift into India.

“It is becoming difficult to recruit workers,” said Peng, who works at a telecoms equipment company that moved from China’s southern technology hub of Shenzhen. He gave only one name because he was not authorized to speak to the media.

Labor costs have jumped 10%–15% since 2024, he said, “And we expect them to keep rising.”

Vietnam still need technology, equipment and expertise from China, which had created “the best manufacturing ecosystem,” said Jacob Rothman, co-founder and CEO of China-based Velong Enterprises, which makes grill tools and kitchen gadgets and has shifted some production to Southeast Asian countries including Cambodia and Vietnam.

Supply chains and manufacturers in China have benefited from decades of government support, large-scale investment and its huge population, Rothman said. “You can’t recreate that overnight.”

Brian Bourke, global chief commercial officer at U.S.-based SEKO Logistics, said while factories making footwear, furniture and technology are still relocating to Vietnam, it lags China in infrastructure and logistics capabilities.

Some of those limits are surfacing in boomtowns like Bac Ninh, where firms are trying to lure workers with higher wages and bonuses, a box of instant noodles on their first day and bus fares if they commute from another city, according to state media.

Few countries have benefitted more from Trump’s trade war than Vietnam, whose biggest export market is still the U.S. In 2024, Vietnam ran a $123.5 billion surplus with the U.S., the third largest behind China and Mexico. That irked Trump, who threatened a 46% import tax on Vietnamese goods before settling on 20%.

The two countries are still working toward a deal to keep most tariffs at 20%. Vietnam has offered broad preferential access for U.S. products, the White House said in October. So far, it has largely absorbed the tariffs, running a trade surplus of $121.6 billion in January-November 2025.

The agreement in October by Trump and Chinese leader Xi Jinping to a year-long trade truce and lower average tariffs on Chinese exports to the U.S. to about 47% helped ease some concerns. But persisting uncertainty over tariffs and other trade restrictions means companies aren’t just trying to shift factories out of China but to spread them across several countries, said Frederic Neumann, chief Asia economist at HSBC.

Even with lower U.S. tariffs on China, the calculus still favors moving to Southeast Asia where manufacturing inefficiencies add only about 10% in cost. But while large corporations can shift production easily, smaller firms may struggle to fit a new factory with expensive equipment.

“(The) race to move outside of China is still happening, and it’s accelerating,” Rothman said.

Vietnam is still attracting ample foreign investment. Cumulative foreign investment topped $28.5 billion as of September, up 15% from last year. But scrutiny of Vietnam’s role as a hub for tariff-dodging transshipments has some manufacturers hedging their bets.

One of SEKO Logistics’ customers has shifted some of its furniture making to India, not wanting to “put all their eggs in Vietnam,” Bourke said.

Countries like Indonesia and the Philippines, which missed the early gains Vietnam captured, are promoting themselves as alternative manufacturing bases. In the Philippines, a new law allows foreign investors to lease private land for up to 99 years to attract long-term commercial and industrial investment.

Vietnam has a goal of becoming rich by 2045. It aims to become Asia’s next “tiger economy,” following export powerhouses like South Korea and Taiwan by shifting from low-cost assembly work to manufacture higher-value products like electronics and clean energy equipment.

It’s offering incentives like tax breaks on imported machinery and discounted rents to help factory suppliers upgrade and modernize. About a third still use non-automated equipment and only about 10% use robots on their production lines.

The country also is trying to reduce its dependence on the U.S. market by expanding exports to the Middle East, Latin America, Africa and India. Overseas trade offices have been asked to share market intelligence and promote products made in Vietnam.

Vietnam knows that rising costs and tougher competition will test how far it — and places like Bac Ninh — can climb. Announcing hundreds of projects in December, Prime Minister Pham Minh Chinh framed the stakes: Vietnam must “reach far into the ocean, delve deep underground and soar high into space.”

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Chan reported from Hong Kong. Associated Press researcher Yu Bing in Beijing contributed.

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