BANKING STORM: Unsustainable calm sparks fears of a market crash and ANOTHER crisis
FEARS are growing for some of the world’s biggest investment banks, as experts warn mayhem could soon rip through markets over the coming weeks.
By LANA CLEMENTS
Express.co.uk
Thu, Mar 31, 2016
Trading revenues at global investment firms dropped by as much as 56 per cent at the start of this year with Europe’s firms among the worst affected, according to analysts.
Credit Suisse, Deutsche Bank, UBS and Barclays have suffered an average collapse in revenues of 24 per cent, according to analysts polled by the Financial Times.
The slowdown could dent profits and lead to another round of job losses.
At the same time, one of the world’s top investment firms has warned that it has been “too quiet on markets” in recent weeks.
Blackrock said the current calm is “unusual” and looks “unsustainable.”
The firm has warned clients to prepare for higher volatility, fuelling fears that stocks are about to suffer another devastating crash.
Richard Turnill, BlackRock’s global chief investment strategist, said: “It’s been too quiet out there.”
And added: “Low volatility and inflation expectations look unsustainable.”
The Rest…HERE
