Skyscrapers on the skyline from the European Central Bank office in Frankfurt, Germany on Monday, November 25, 2024.
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Next week, the CNBC team resumed their journey – all with the bank and the ECB. From Frankfurt to Milan, to Paris, to London, the financial focus is on the focus.
Bank bell
The market appears to be providing a basis for the financial sector to maintain positive revenue momentum this quarter. Citi describes the first quarter as “very flexible” and analysts are now expecting Stoxx 600 EPS growth will increase year-on-year in the quarter.
Much of this optimism is concentrated on big banks, while other sectors such as luxury goods, cars and energy are also plagued by downgrades.
UNICREDIT The competition begins Wednesday. The Italian banking giant will try to keep investors focused on numbers rather than their M&A ambitions. And its movement Commerzbank Sax Bank analysts have seen its stake increase to 20%, highlighting uncertainty about its potential takeover Bank BPMAfter the Italian court blocks the move until further conditions are met. The stock has risen more than 50% so far this year, fighting CEO Andrea Orcel, helping to keep its expansion plans in an effort.
French Finance BNP Paribas – The largest lender in the euro zone by assets – Thursday’s revenue report.
Last quarter, the bank soared past expectations driven by its investment bank’s performance, but revised its profit targets slightly lower.
On the same day, attention will turn to Frankfurt Deutsche Bank Latest figures. German lenders registered their best profits for 14 years last quarter, benefiting from increased trading volumes around market volatility. CEO Christian Sewing told CNBC in June that he believes Europe has an opportunity to invest more in its own defense sector as a key growth area.
Waiting for the game
For macro observers, the highlights of the European week will come from the European Central Bank. President Christine Lagarde and her policymakers are expected to keep interest rates at 2% on Thursday. But there is a big gain…
According to Reuters, U.S. President Donald Trump’s tariff threats will not derail the results of the meeting. But if Trump does advance tariffs on EU import rates by 30%, the broad assumption that the ECB will lower the tax rate.
Investors will make an assessment by September 11 as the ECB interrupts the summer after this week’s meeting.
Inflation
In terms of potential economic conditions, Deutsche Bank warns that inflation risks in Europe are “still underestimated with significant complacency among key assets,” and that tariff effects are not yet fully popular.
The bank’s macro strategist also told CNBC’s Squawk Box Europe that on August 1, the deadline for negotiations between the U.S. and the EU laid the foundation for a later result to spark a “very keen market reaction.”
