Europe Stocks to Watch: Banks, Homebuilders, Utilities

The video discusses RBC's positive outlook on the European banking sector, highlighting upgrades for Lloyds and Deutsche Bank, while downgrading NatWest due to a less favorable rates outlook. It also covers Berenberg's bearish note on UK home builders, predicting a significant drop in earnings due to declining house prices and rising raw material costs. Lastly, it reports on SSE's sale of a 25% stake in its hydro business to invest in renewables and mentions Austrian utilities' profit boost from rising power prices and a deal with Volkswagen.

What is the reason behind RBC's downgrade of NatWest?

• Strong balance sheets

• Positive earnings outlook

• Good cost control

• Concerns about mortgage rates

What is the expected impact on UK home builders according to Berenberg?

• Stable earnings

• Drop in earnings by 40%

• Increase in earnings by 40%

• Earnings to double

What factor is contributing to the bearish outlook for UK house prices?

• Stable house prices

• Decrease in raw material prices

• Increase in house prices

• Surge in raw material prices

What is SSE planning to do with the proceeds from selling a stake in their hydro business?

• Invest in renewables and return cash to shareholders

• Buy more hydro assets

• Invest in fossil fuels

• Expand their hydro business

Which company is benefiting from a deal with Volkswagen in the utilities sector?

• NatWest

• Elliot in Austria

• Deutsche Bank

• Lloyds