Decision on the given application of the directive has yet to be ratified by the Commission.

In a recent statement, Christian Sewing, CEO of Deutsche Bank, expressed caution about the current market situation, particularly the declining bond prices. Sewing expects this trend to be sustained due to political uncertainties and increasing government debt trends.

Sewing's warning comes as the stock price of Deutsche Bank has gained over 80% since the start of the year, with the shareholder sentiment remaining positive. However, the CEO urges against complacency, especially in the medium term.

The CEO's remarks also included hints that there are no plans for major acquisitions, and Deutsche Bank is not aiming to create a European megabank to compete with US rivals, unlike UniCredit.

Sewing identified political risks such as political uncertainty, lack of economic reforms, rising government debt, and crisis in political leadership, notably in France, as significant factors threatening global financial market stability. This, he believes, is leading to a sustained increase in risk premiums and bond yields worldwide.

The potential impact of the lack of major acquisitions on Deutsche Bank's future growth is not yet clear. The CEO did mention that the bank will provide updates on its strategy in November.

Despite the apparent threats, Sewing believes that the threat to the financial system, as seen in the short term, is manageable, particularly in the US. The CEO also called for reforms to address rising public debt.

Interestingly, the stock price of Deutsche Bank rose by 0.9% today to 30.52 euros, suggesting that the market may not be as concerned as Sewing about the current market situation.

However, Sewing doesn't believe the recent drop in bond prices is a temporary phenomenon. He emphasised that the time horizon on the stock market is often short, and long-term threats to market stability remain largely in the background.

In conclusion, while the stock market may be showing signs of optimism, Sewing's warnings about the current market situation and the long-term threats to market stability are a reminder for investors and financial institutions to exercise caution and vigilance.

Decision on the given application of the directive has yet to be ratified by the Commission.