Morgan Stanley | European banks trading at crisis levels. The car sector is the cheapest it has been since 2001. Our latest monthly review highlights two observations about tendencies, sentiment, valuation and fundamentals for European sectors:
CaixaBank Research | The European Commission is looking at how the banks can have a more diversified portfolio of public debt securities. It is studying how to obtain a safe European asset without having to establish a tax union to back the issue of said asset.
The liking for dividends is to a great extent a reflection of the change in the liking for risk, but one can’t defy their quality as a safe cushion. The banking sector is the one with an amazing potential for dividends.
The Corner | June 28, 2015 | Seven years after the crisis, and after a widespread restructuring process, Spanish banks still need to achieve a sustainable business model, the country’s central bank governor said.
LONDON | May 30, 2015 | Cristina Marzea (CFA) | All the buzz these days is about digital banking: will banks lose business to disruptive entrants, or will they fight back and embark on a massive digital revolution which will see the branch concept become obsolete. Not all EMs are the same – this refers to levels of bancarisation, credit penetration, technology and mobile adoption, as well as the competitive banking landscape that shapes where each banking market is in the technology cycle.
BBVA Research | March 30, 2015 | The TLAC’s public consultation period ended on 2nd February. Now is the time for carrying out a comprehensive Quantitative Impact Study (QIS) to define the optimal calibration of the TLAC. The FSB will assess the potential impacts on financial system, financial stability and the real economy.
BRUSSELS | By Alexandre Mato | The outcome of the stress tests led by the ECB and EBA showed that there are important weaknesses in the Italian and Greek financial sectors. 7 out of the 13 institutions that had to raise capital come from both countries. Perhaps, the era of restructuring are not yet behind us and the sector needs still more integration.
MADRID | By Álex García.
LONDON | The Corner | The issue of capital tension has been the key driver of BNP Paribas’ UK bank recommendations over the last nine months, and this remains the case. These experts have no Outperform ratings with the exception of Lloyds – which should broadly meet all three parts of the UK framework within 18 months. They believe this consultation is particularly unhelpful to Barclays.
MADRID | The Corner | The disappointing German ZEW together with the worsening of the Portuguese lender Banco Espirito Santo (BES) crisis weighed down on the markets on Tuesday. And that about today? Indeed, the banking sector will continue to be the main player in Europe with the BES drama as backdrop, although the calmness within the peripheral bonds markets is a positive sign and indicates the limited extent of such crisis.