TRADING REVENUES 2016 Down 56%
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.
Investors should be prepared for more volatility, say experts
BANKING STORM: Unsustainable calm sparks fears of a market crash and ANOTHER crisis
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.
The assessment, produced by the Frankfurt School-Unep Collaborating Centre for Climate and Sustainable Energy Finance and Bloomberg New Energy Finance, showed that the developing world committed a total of US$156bn (up 19% on 2014 levels) in renewables (excluding large hydro) while developed nations invested US$130bn (down 8% from 2014 levels).
“Applying sound management reforms to global fisheries in our dataset could generate annual increases exceeding 16 million metric tons (MMT) in catch, $53 billion in profit, and 619 MMT in biomass relative to business as usual,” the authors explain in their study. “We also find that, with appropriate reforms, recovery can happen quickly, with the median fishery taking under 10 [years] to reach recovery targets. Our results show that commonsense reforms to fishery management would dramatically improve overall fish abundance while increasing food security and profits.”
“It’s pretty clear that some metropolitan areas are doing really well,” said Andrew McAfee, an economist at the Massachusetts Institute of Technology. “The ingredients to that formula seem to be some combination of great research universities and knowledge-intensive industries, whether it’s high tech on the West Coast, biotechnology here in the East or clusters of technology and robotics in places like Pittsburgh.”
Oil Trader Andurand, Who Called Slump, Sees Bull Run’s Start
Pierre Andurand, a hedge-fund manager who predicted the oil collapse, said crude is starting a “multi-year bull run” because low prices have curbed supply. Crude futures, currently trading near $40 a barrel, will rebound to $60 to $70 this year and $80 in 2017, the chief investment officer of London-based hedge fund Andurand Capital Management LLP said in a newsletter to investors. A spokesman for the money manager declined to comment. “Large spending cuts are taking a toll on operational maintenance,” according to the newsletter, which was dated February. “After having been in an oversupplied market we expect inventory draws to start in a few months and accelerate quickly.” Oil has slumped about 60 percent since mid-2014, prompting companies to lay off workers, cut investment and cancel projects. While prices have rebounded from a 12-year low reached earlier this year on speculation the surplus is easing as U.S. output […]
