 Hi, welcome to this CMC Markets look at to the bank earnings this week, mostly focusing on the UK and Europe. Now banks are popular to trade anyway, but they've really been in court in the eye of the storm of this market sell-off this year and it makes this season particularly interesting. Looking at the UK banks particularly, PPI, cooling UK growth and the financial market turmoil from Q1, definitely big headwinds to these earnings and we're pretty much expecting an earnings drop across the board. Each of them have their own different factors at play. If we have a look at Barclays to start with, really what we're dealing with is Jess Staley, the new CEO who's been in about six months now. He announced the bank was splitting into two divisions last time. That wasn't too well received because that's going to cost a lot of money to split the bank up basically into its UK operations and a US operation mixed together with its investment bank. That's going to be costly. It cut its dividend from 6.5p to 3p. That obviously shows how much costs they expect going ahead. It sold its South Africa business. That's obviously going to bring some money in the short term, but it loses exposure to emerging markets and that all together hasn't been that well received and the stock is down 22% year to date. Pretty massive drop and you can see that on the chart here. Just taking more interest on this chart, you can see that we've had a change in momentum recently. We've pushed beyond the 60 level in the RSI. If I just put a couple of lines here on this chart, you can see that we've just out taken out that low at 150, but really we're looking at the potential of a double bottom here. What we need is for if there were some positive surprise on the earnings to get through this 176 level, still clearly a downtrend at the moment, but signs of it reversing well below that 200 day moving average. As I said, beyond that 176, 175 area, then actually we're looking a bit better for a push towards that moving average. If we change the focus next in line to Lloyd's. Lloyd's more of a domestic story. Some of the headwinds to the international banks, the US banks has been the drop in trading, not so much with Roy's with Lloyd's. We had a return to profit last quarter, a special dividend announced. So actually the shares are only down 7% year to date. The sector's still in trouble. Lloyd's relatively performing quite well. Still the government looking to sell its shares is hanging over the stock and it's going to limit the upside. A lot of people are going to be waiting on the sidelines until the government gets rid of its share in the bank. With the shares down at the moment, that's looking like it might take a little bit longer. Looking at the Lloyd's shares though, really the focus here I think if I just draw a little circle here on this chart, it's this big gap on the last earnings release that we're focusing on. We've almost filled that gap and we're pushing higher again afterwards. So if we can continue this momentum, get up through 70, get back towards that 200 day moving average, then looking a lot more positive for Lloyd's. Switching over to RBS here. Now it was disappointment from RBS because unlike Lloyd's who have just announced a return to profit, RBS looking at a lot more, a lot better perspective, but still it's not going to have a dividend until 2017. So that was disappointing. It's almost entirely government-owned, makes very difficult to own the shares at the moment, and it sold its Williams and Glyn branches. So again, a little bunch of cash come in for the bank, but it loses exposure to those SME business loans that actually should pick up if you imagine that over the long haul the UK economy is going to do well. So it's lost some exposure to that. RBS is down 18% year today, so shares have taken a complete slamming. And you can see here, if I just draw on a trend line here, you can see that we're basically coming up to try and retest that trend line, fits in nicely with that 260 area. So that could be a bit of a confluence of resistance if we do manage to push a bit higher. It might be a struggle to get through there in the time being. We're looking pretty overbought here, although it does look like there's been a positive shift in momentum. Looking outside of the UK, something that was particularly in the eye of the storm in this recent selloff was Deutsche Bank. It doesn't help that I'm misspelling the name there. That's down 28% year today, taking an absolute hammering. If you remember during January, it was the issue with its cocoa bonds, the yields on those particular bonds that can be converted to equity, certainly spiked on fears that the bank could default on some of its debts and they would be first in line to be converted. Investors didn't like that. Eventually those yields came down and some of that has come out of the market. We can see it's actually put in a higher low now. So some sign that actually things are turning around for Deutsche Bank, but still we need to get really beyond that 19 level on the chart here to show that things have really turned around. Again, you're noticing a bit of a pattern across these charts, but of a double bottom coming across in many of them. Still well below that 200 day moving average and the emphasis is to the downside. One thing to mention there with Deutsche Bank is they are heavily reliant on trading income and it's been a rough quarter in markets and that's expected to be a big headwind for them. And then lastly, going over to Spain, Banco Santander. Oh, I've gone to its Brazilian stock. There we go. Looking at Spanish stock here. Here you can see actually this similar bottoming formation in the chart. It shares are only down 6% year to date. So the best performer of all these stocks that we're looking at and even though it's Spanish and it's exposed to that peripheral of Europe, which is obviously a big problem if we do get some kind of crisis in Europe again, it's going to be one of the most hard hit and you can see that it's basically lost half its value. If you scroll back in the chart here, we came from 8 down to below 4. But nonetheless, it does have a more stable domestic business and it's been one of the better performers this year. A few things to look out there for in these banks. If you are on the CMC platform, one thing to quick note out here is that you can check out our morning style research and have a look here, particularly relevant obviously when you're looking at the earnings season. It's just to check out the price to earnings ratios. For example, looking at Banco Santander, we've got a 7.9 whereas the sector median is 12. So actually relatively undervalued from Banco Santander. Factor that in with your price charts and the story for the bank and see if that's worthwhile trade for this earnings season. I hope you enjoy the video. Thanks a lot. This is Jasper Lawler signing out for CMC Markets.