8 December 2015 World Outlook 2016: Managing with less liquidity Figure 3: Banks' P/B relative has not yet reacted to the Improvement in relative RoEs —PM relative Ohs) forward RoE relative (Mel -10 -20 -30 -40 -50 European banks relative to the market 0 ui r, cs 0 0 Z z 0 z Sand awe. an AS Damen Page 58 0 z z z Figure 4: Consumer staples are priced for an implausible rates trajectory — European food & beverage. del to the market Ohs) — US 10-year bond yields, inverted (rhs) 1 220 1 1.3 o 200 1.6 1.9 -1 1. 2.2 180 2.5 2.8 160 3.1 -3 3.4 140 1 3.7 -4 4.0 120 4 4.3 -5 4.6 100 4.9 5.2 80 5.5 2007 2009 2011 2013 2015 Sows Oftecno &A Anon* Onstreem Sebastian Raedler, +44 20 754 78169 Wolf-von Rotborg, +44 20 754 52801 Deutsche Bank AG/London CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL SDNY_GM_00265349 DB-SDNY-0119165 EFTA01458986