Yesterday it was Citi's turn: Citigroup CFO Brian John Gerspach warned that the bank's markets revenue in the third quarter which is ending in less than three weeks, will be down 15%, as the third quarter "is lacking the volatility that pushed revenue higher in third quarter of 2016" underscoring as he did last quarter, that volatility remains “subdued."
As we said yesterday, "for that he, and his other banker peers, can thank the central banks, who have made selling vol and BTFD the only two concepts an entire generation of traders is aware of."
Not even 24 hours later we got another confirmation that to every Fed VIX slam, there is now an opposite revenue reduction by the Big US banks, which desperately need volatility to boost their sales and trading business. Moments ago JPMorgan’s Jamie Dimon spoke at the Barclays financial conference, where he said that trading revenue in Q3 was on pace to drop by 20% Y/Y, and worse, the CEO said he is considering halting guidance on trading revenue.
This disclosure by JPM concludes a bizarre day in which first Goldman accelerated its pivot to a bricks and mortar retail bank, and now America's most powerful bank, JPMorgan, is warning that at a time of all time market highs and a "roaring, coordinated" global recovery, its top line is not only slumping, but it either does not have visibility or simply does not want to disclose it... which is worse.
JPM stock, while dropping initially, has promptly rebounded as the BTFD algos immediately filled the gap.