The Return of Animal Spirits to European Banks

The video discusses UBS's trading revenue compared to US banks, highlighting the variability in investment banking and UBS's strategic scaling back in fixed income. It evaluates UBS's business model in light of regulatory changes affecting fixed income trading profitability. The video also examines the outlook for European banks, noting improvements in capital quality and market perception, with a focus on dividend distribution over capital rebuild.

What are the implications of the return of animal spirits in the market for UBS and its competitors?

Discuss the improvements seen in European banks and the challenges that still exist, particularly in Italy.