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A punt on banks: which side of the pond?

Friday, August 16, 2013 - 02:30

Aug. 16 - Fancy a flutter on financials? As earnings season winds down, we assess whether U.S. or European banks look most attractive.

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-- your thoughts on financials following which side of the pond this lost month is that having to go by that it's an obvious bet. The Stoxx 600 outperformed the S&P by 4%. And one led the way for nationals. And so therefore you would favor European banks. Of those in the US but that is a strategy. That we put in place for the second half. But 2013. That we always get a little bit concerned when everybody else is jumping on the bandwagon but we don't see investors having significantly made that shift yet. And so there's more to go fool. But the short term best isn't without its risks when nearly all US banks beat Q2 earnings full costs. In Europe it was more of a mixed bag -- news was generally good from UBS soc gen and -- Barclays Deutsche and HSBC. Have their issues. But we're really talking about a period of the share price catch up without the same fundamental supports and -- doubts. And I moved towards positive earnings momentum which we don't out of alignment and of course people will be increasingly concerned about stretched valuations. We appreciate that right -- right now. Yeah and -- spots on sentiment might be a little bit over the coalition. In the US but if you look at the earnings season. There's much that's and expect to do in the United States science. Slightly by. We -- noticed him on in your experience. We feel they US is a site back to -- -- be. Within Europe investors need to be choosy Roy just dumb on shares earnings growth in the next year prevent employees. And don't BS far outstrip that of -- Barron's red bank. But mid caps in the periphery looked risky -- -- Fitch warned midsize Italian lenders. I like he's in need more equity to offset capital press. Over in the states from -- data shares investment banking giants like Goldman Sachs have more upside earnings potential in the next twelve months and retail counterparts like wells -- It's a tough cold and a law could still depend. On the regulations. While US banks were quick to recapitalize in the heat of the financial crisis. Europe's being slaves again I don't -- throwing the rocks doom -- with struggling sovereigns. -- could tip the scales.

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A punt on banks: which side of the pond?

Friday, August 16, 2013 - 02:30