Banking Bellwethers and a rate waiting game

Next week, the CNBC teams are back on the road, and it is the banks and the ECB. From Frankfurt to Milan and Paris to London, finance are focused.

The markets seem to be depositing in the financial sector to maintain the positive impulse of this quarter. Citi described the first quarter as “remarkably resistant”, with analysts who now expect Stoxx 600 The growth of profits per action will become positive year after year this quarter.

Much of that optimism focuses on large banks, while other sectors such as luxury, cars and energy have been plagued by profit sales.

Unicredit Coming things on Wednesday. The Italian bank giant will try to keep investors focused on numbers, instead of their ambitions of mergers and acquisitions. While moving Trade They have seen their capital participation increase to 20%, saxo bank analysts highlight the uncertainty about their possible acquisition of BPM BankAfter an Italian court blocked the measure until more conditions are met. The action has increased more than 50% so far this year, providing some joy for the Andrea Orcel CEO while fighting to maintain its expansion plans along the way.

French French BNP Paribas – The largest lender in the euro zone for assets – informs the profits on Thursday.

The last quarter, the bank raised the higher expectations driven by performance in its investment bank, but reviewed its slightly lower profitability objective.

The same day, attention will become Frankfurt to Deutsche Bank’s Last set of numbers. The German lender registered his best gain in 14 years the last quarter, benefiting from an increase in commercial voltages around market volatility. CEO Christian Sewing told CNBC in June that he sees an opportunity for Europe to invest more in its own defense sector as a key growth area.

For Macro observers, the highlight of the week in Europe will come from the European Central Bank. President Christine Lagarde and her policy formulation partners are expected to maintain rates waiting for 2% on Thursday. But there is a great capture …

It is not expected that the tariff threats of the president of the United States do not derail the result of this meeting, according to Reuters, citing five sources of members of the Governing Council of the ECB. But if Trump advances with 30% of tariffs in EU imports, there is a wide supply of the ECB will reduce rates in response.

Investors will have until September 11 to evaluate the impact, since the ECB is broken for the summer after this week’s meeting.

In terms of the underlying economic conditions, Deutsche Bank warns that European inflation risks “are still being underestimated, with a remarkable complacency in key assets”, with the tariff impact that is not yet earned.

The bank macro strategist also told Squawk Box Europe of CNBC that the tariff deadline on August 1 for negotiations between the United States and the EU prepares the stage for a late result to trigger a “very acute market reaction.”