Citigroup, JPMorgan Chase Brace for Trading Slump

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March 4 (Bloomberg) -- Citigroup and JPMorgan are bracing investors for a fourth straight drop in first-quarter trading. Barclays Capital Senior Analyst Jason Goldberg speaks on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

Priced in?

We think a lot of it is.

We think that we will see trading results coming out from citigroup and j.p. morgan.

You see it every day in the marketplace in terms of volume.

Maybe lower than anticipated, investors and risk mode for the last few weeks.

You make a nice distinction this morning about the venezuela laws.

Is this sluggish volume, as you mentioned?

Or is this about something that went wrong?

Alternately it tends to be a very strong quarter in terms of trading.

If you look at the linked quarter basis, we still think it will be up 25%, 35%. most banks are just comping against the tough one q 13. currency markets on this quarter, we are seeing investors in a risk off appetite given global uncertainties.

Give us the core back a diamond dialogue this morning about who you write about where they pay out notices from the summer into next fall.

How bad will the firings and layoffs be if the first quarter is off the mark?

We have seen the industry in general be very tight in terms of headcount.

You have seen banks paring back.

I think mostly it is a steady as she goes kind of move through the quarter in the hopes that things pick up as the year progresses.

For the last several years we have seen traitor move -- trading move higher during the year and then trail off as the year regresses, so i think the company has been active in terms of fine tuning of -- fine tuning around this regulation.

I would expect most not to flinch given the turmoil.

I have to ask you about citigroup, the bank announced it is jet -- it is adjusting downward because of its disclosure results, but before that there was another disclosure.

Are we going to get more unexpected headaches from citigroup this quarter?

When you are a big bank operating in a lot of countries, there are a lot of places for things to go wrong.

They did run into fraud issues in mexico and in their investigation with respect to anti-money laundering.

I think that negative headlines for this industry seem to be part of the last several years, sometimes tough to predict, but in the context of a very big and global company, these are minor speed bumps.

Quickly, modeling single digit returns on equities, how will those return?

We see them getting into double digits by next year and it is working down into breaking even, more effectively utilizing capital, continuing to focus and generate positive operating leverage.

Thank you so much, jason, from barclays capital markets this morning.

We have breaking news out of qualcomm, something you know about well, boosting share buyback by $5 billion, boosting its quarterly dividend to $.42

This text has been automatically generated. It may not be 100% accurate.


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