Discovering the art of risk-taking with BBVA
European bankers are closely monitoring the political landscape, especially in Italy, Spain, and France. Recent tax increases in Italy and Spain have put pressure on banks with higher profits, while the rise of populism in France has added to the uncertainty. Emmanuel Macron’s surprise announcement of parliamentary elections in June caused investors in French banks to flee. The upcoming final round of the election on July 7th is expected to bring in leaders with radical spending agendas. Macron’s call for a more integrated banking market through cross-border deals has been overshadowed by the sharp decline in France’s government debt prices, triggering memories of the euro-zone crisis in the early 2010s.
The volatile political environment could lead European banks to become more inward-looking and less ambitious. However, Banco Bilbao Vizcaya Argentaria (BBVA) stands out as an exception. With a significant portion of its profits coming from Mexico and a strong presence in Turkey, BBVA is not afraid to take bold steps. In a bold move, BBVA recently made a hostile takeover bid for Sabadell, a Spanish competitor, showcasing its strategic vision and willingness to expand.
2024-07-04 08:12:27
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