US banks with Wall Street operations are bracing for a slump in trading profits this year after the third quarter got off to a poor start, with global economic uncertainty and Europe's sovereign debt woes leading to a slowdown in market activity in July.
Executives said volumes and profitability last month were even lower than during the sluggish second quarter, with hedge funds particularly reluctant to take big bets on equities and debt, the FT reports.. Trading activity picked up a little in recent days after the release of European banks' "stress tests". However, deepening fears of a permanent end to the trading boom that supported financial groups' earnings after the financial crisis are prompting some banks to consider laying off traders. Read the full story Japan's PM says economy may need more stimulus spending Japan...
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