Why Eurozone Banks Are the Surprise Winners of Higher Rates

The conventional wisdom says rising interest rates crush bank stocks — but in the eurozone, the exact opposite is happening. Lucas and Luna dig into why the ECB's rate hikes have turned European banks into profit machines. They examine how net interest margins widened even as lending slowed, why the ECB's Targeted Longer-Term Refinancing Operations reversal is squeezing liquidity, and how a 3.2% eurozone inflation print and US dollar weakness at 118.9 on the trade-weighted index are amplifying the divergence. They also discuss whether the rally is sustainable or just a 'good-until-the-next-recession' trade. Featuring the Stoxx Europe 600 Banks Index, Deutsche Bank, and UniCredit. #EurozoneBanks #ECB #InterestRates #NetInterestMargin #EuropeanEconomy #DeutscheBank #UniCredit #StoxxEurope600Banks #Inflation32Percent #TradeWeightedDollar #MonetaryPolicy #Economics #FexingoBusiness #BusinessPodcast #BankStocks #EurozoneInflation #LiquidityRisk #TLTRO Keep every episode free: buymeacoffee.com/fexingo