Ben and Andrew kick off the morning podcast marathon this morning by covering some European news and the impact it could have two specific banks, Royal Bank of Scotland (NYSE:RBS) and Deutsche Bank (NYSE:DB).
Matteo Renzi was hopeful going into the referendum vote, but perhaps should not have been as every political situation this year has been swung toward the populist side. Even with a last ditch effort to sway voters a week before the election, he is sticking to his guns and committing to resigning. This vote does not represent a move toward Italy leaving the EU, as they have interest in remaining otherwise.
RBS has gained recent momentum as they are making changes that have been ordered by the Bank of England. Economic surprise data shows a big improvement in Europe according to Citigroup. The stock is nearing a level that we believe technical analysts will be quite excited to see.
DB has apparently hedged off their levered derivative exposure. It, like RBS, has had solid momentum recently. Deutsche is happy to see the Germans actually paying money to investors, as they can now enjoy those minimal returns. Don't forget that we are also willing to issue debt at negative interest rates.
Stay tuned for more podcasts coming throughout today and tomorrow and please let us know a topic/company you would like for us to cover.
Disclosure: I am/we are long RBS, C.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.