Francisco López | BBVA chairman, Francisco Gonzalez, is the one who usually speaks out about the banking sector’s problems, without worrying too much about the criticisms he may receive. González was the one who most actively spoke out in international fora (in particular at the Institute of International Finance (IIF)’s spring meeting) about the bad situation of some of the savings banks, although by doing that he damaged the image of the whole Spanish banking sector.Read More
The European Commission did not want to meddle with Spain’s general elections on June 26th and has postponed until July its decision regarding a sanction for the country’s non-compliance with its deficit target. But none of the European community experts have ventured to confirm that this sanction will finally be imposed.
UBS | With 1Q16 results over it is time to take stock. European banks are down 18% YTD against a market 5% lower, with continuing hair-raising volatility in parts of the banks index. Our estimates changed surprisingly little during results: interesting considering the bearishness of many investors we meet.
EXANE BNP Paribas | US (& UK) profits look overstated. Even the cash is not real Our key conclusion remains that US (and also UK) profits remain overstated – potentially to the tune of as much as USD 20-30bn. While not the only explanation, we think it simply too much of a co-incidence that ASPs have jumped in tandem with a rapid expansion in leasing and OEM loan portfolios.Read More
UBS | A below -consensus payroll print and a 37,000 increase in the pace of initial claims reported in May have caused some to question the health of the US labor market. We examine why these worries are unfounded and how, if anything, these signs of “weakness” may actually be sig ns that wage growth could soon begin to accelerate.Read More