Barclays has upgraded its outlook on quality stocks to positive while downgrading value stocks to neutral, reflecting a shift in its European equity strategy. Concurrently, the potential merger between BBVA and Banco Sabadell is gaining traction, with BBVA anticipating that the eurozone could contribute over 40% to its profits if the merger proceeds. Bank of America has acquired a 3.1% stake in BBVA amid the ongoing merger discussions. BBVA has also hired Deloitte to facilitate the integration process with Sabadell, indicating confidence in the merger's success. The CEO of Banco Sabadell, César González-Bueno, has suggested that it would be logical for BBVA to withdraw its takeover bid, emphasizing the need for regulatory support to protect small and medium-sized enterprises (SMEs) that rely on credit from the two banks.