Analysts stated that they noticed trading revenues at global investment firms dropping by as much as 56 per cent at the start of the year, with European firms suffering the worst. Credit Suisse, Deutsche Bank, UBS and Barclays have gone through an average collapse in revenues of 24 per cent. They said the slowdown could dent profits and prompt yet another bout of job losses. One of the top global investment firms BlackRock has warned that it has been “to quiet on markets” in recent weeks. It said the current calm is “unusual” and looks “unsustainable.”
It warned clients to prepare themselves for higher volatility, fuelling fears that stocks are about to suffer another devastating crash. BlackRock's global chief investment strategist, Richard Turnill said, “It's been too quiet out there. Low volatility and inflation expectations look unsustainable.” The comments come after stock markets across the world saw billions of pounds of losses at the start of the year sparked by China's slowing growth and low oil prices. There were also concerns over the funding of some of Europe's bigger banks including Deusche Bank, Societe Generale and Commerzbank.
Turnill said Europe's issues with terrorism and migration could trigger the next period of crashes, as well as another bout of worries over China's economy. He also warned that central banks' actions are also an unknown risk. “The future path of monetary policy remains uncertain and tail risks remain.”
