The Zhitong Finance App learned that Deutsche Bank CEO Christian Zewin said that he doesn't think there is a bubble in artificial intelligence or other fields of the financial market. Earlier, billionaire Ken Griffin warned investors that they were facing potential setbacks within the industry.
“Overall, I don't think we're living in a bubble that's about to burst,” Zewen said in an interview on Wednesday. “Are we going to see this or that setbacks, including individual companies? It could happen.”
Griffin's business empire includes hedge fund Citadel (Citadel) and Citadel Securities (Citadel Securities). He said on Tuesday that investors are “almost certainly” in the midst of an AI bubble as many companies are still struggling to measure how much they will invest in the technology and how it will transform the economy.
As Germany initiated a series of reforms, Zewin became one of the most influential business leaders. He said that if the regulatory framework is right, the industrial application of artificial intelligence is an “opportunity of the century” for Germany. He said that Deutsche Bank itself is also using this technology to improve efficiency while improving risk control.
Zewin said, “Concerns about the bubble are unfounded.” “But unlike a bubble, there is constant fluctuation.” He added, pointing to ongoing geopolitical tension.
The CEO turned things around Germany's biggest bank since taking over eight years ago. According to people familiar with the matter, he is one of the few executives who regularly talks to Chancellor Friedrich Mertz.
Mertz hosted the German government's first investor conference in Berlin this week. This is a new effort by the struggling prime minister to revive the growth of Europe's largest economy. After years of stagnation, Germany has shown early signs of economic recovery, thanks to public spending on infrastructure and defense.
France's financial turmoil sounded a “wake-up call”
Zewin also said that financial and political instability in France has turned into violent protests. This is worrying, and the fluctuation is likely to continue until the presidential election.
The CEO stated, “I wouldn't call it a debt crisis right now, but I think it's a wake-up call for all public financing, that is, budget discipline is key.”
France is struggling to reduce its budget deficit just six months before the election, widening the spread on French and German government bonds to a range related to the Eurozone debt crisis. Bank of America (BAC.US)'s top head in the country, Vanessa Holtz, said on Tuesday that investors have become more picky about French assets as a result.
Zewin is leading a German business initiative aimed at boosting investment. He said that Berlin's relatively stable financial situation and credit rating make Germany the preferred destination for anyone looking to invest in Europe. He also said that although global fluctuations may continue, he doesn't think there is any kind of bubble in the market.