What's Driving the Recent Rally in Bank Stocks?

The video discusses the impact of Brexit on banks, highlighting their performance on the stock market. It explains the reasons behind cutting bankers' bonuses in 2017, despite a rally driven by higher government bond yields and progress in the Italian banking system. The video compares the performance of US and European banks, noting a discount on European banks. It concludes with an analysis of political risk in Europe and its effect on financials, suggesting that European fundamentals have improved.

What was the performance of banks in the stock 600 post-Brexit?

• Banks were the best performers.

• Banks showed no significant change.

• Banks were the second best performers.

• Banks were the worst performers.

What are the two main factors driving the recent rally in banks?

• Decreased unemployment and higher consumer confidence.

• Higher government bond yields and progress in the Italian banking system.

• Lower interest rates and increased consumer spending.

• Rising inflation and increased government spending.

How does the US yield curve impact the profitability of banks?

• It decreases profitability.

• It only affects European banks.

• It has no impact on profitability.

• It drives profitability and dividends.

What is the expected impact of political risks on European financials in 2017?

• They will cause a decrease in stock prices.

• They will lead to increased stability.

• They will be used as a proxy for political risk.

• They will have no impact.

What is the potential outcome once political clouds clear in Europe?

• European fundamentals will worsen.

• There will be no change in fundamentals.

• New taxes on banks will be introduced.

• European fundamentals will improve significantly.