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Breakingviews: Don't bank on Wall St traders

Wednesday, October 08, 2014 - 03:17

Jeffrey Goldfarb and Antony Currie explain why fixed income, currency and commodities desks are a long way from making their firms a decent profit, even after a recent uptick in volatility.

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So it's an exciting time of year again when banks come out with earnings this could be starting up next week it'll start to see what Goldman Sachs Morgan Stanley JPMorgan alternate. Last quarter. The expectation is that traders had a slightly better quarter. A little bit extra volatility of the Fed and don't gross did their part but maybe not an offense -- crunch some numbers here looks like the other parts of the bankers NAFTA. Yeah apps they -- let's that would target too much into the weeds on the numbers bio means you know read the story for that but. I think the expectation that the mind is that September it was about a month I'd say if you look at what happened same period last in the senate -- -- this is that a court should be that. That's fine but doesn't -- say much festival. First off the is always -- trading Lisa has -- the past he would say bullying gradually slips off towards us right. Secondly July and August 40 booklet bat say the fat though September is better days. Fine you know mark. I don't know and right yet it'll be a red bank I think that place a bet the senate trading numbers in fixed income. Comes as -- and they did in the second quarter of this X so let's just get. We got a clearer expectations shouldn't go to my right. I'm a good idea is that I guess for awhile and that starkly and as traders have to a certain extent carried. The institutions are certainly saw it in the aftermath of the crisis even before then yes the traders were Q have become huge component yeah you get the analysis that may be. We're starting to get the sense that that's just not gonna. -- in the numbers he Rambo we didn't personal calculation it's let's look at how much. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- That was that 26% to plus off plus it's a full backing appliance. And JP told -- -- and the only each of them. Would need to code should be a total of twelve and -- -- and every idea is ultimately that. Other parts of the business so we're gonna need to see more cost cutting really deceit. Huge ramp ups and other parts of the business investment banking lending other players' analyst sunny for example saying we think we can get more much while I lending business in my bank now Michael was deposits from Smith. Middle -- good wealth management business. Taking over as coach registers of the to these banks and all saying look we won't trade and do pretty much better but the fear is that show closing it's trading comes back. Then will be fine -- -- festival it's not coming back as much as people might be expecting her second it's gonna come back and available if you add up those three banks. Plus the three billion pockets of property act and that makes sixty billion in the year. To these banks between them would have to bring in revenue which is there's there's gonna really -- an open pit mine context that's -- propping it half of what the top ten banks and last year texting. -- it or leave it there thank you answer we will be keeping an eye on the banks. And be back with corporate abuse tomorrow.

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Breakingviews: Don't bank on Wall St traders

Wednesday, October 08, 2014 - 03:17