Deutsche Bank Warns of Rising US-Europe Tensions and Potential Shifts in Global Capital Flows.

Deutsche Bank warns that rising US-Europe trade tensions could lead to a shift in global capital flows, potentially making European investors less willing to hold US assets. This could support the euro under certain conditions, as Europe is the largest external lender to the US, holding around $8 trillion in US bonds and equities. The bank's strategist, George Saravelos, notes that new US tariffs related to Greenland could also strengthen political cohesion within Europe.