By ERIC DASH
Published: July 10, 2011

Only a few short months ago, JPMorgan Chase traders were on such a roll that they did not have a single losing day in the first quarter.
But when the bank reports its second-quarter results this week, that hot streak will have come to an end. Analysts expect JPMorgan to count an almost 20 percent drop in its sales and trading revenues, reflecting a slowdown in investor activity and the dismal performance of its fixed-income and commodities groups.
Bank of America, Citigroup, Goldman Sachs and Morgan Stanley are expected to report similar news. After helping prop up Wall Street during the financial crisis, core trading revenue is projected to drop, on average, by as much as 25 percent from the first quarter, according to Credit Suisse research.
That will put further pressure on the banks’ growth prospects, which are already strained by stagnant loan growth and more stringent regulation. It is also prompting nearly every major Wall Street firm to contemplate another round of layoffs amid growing concerns that at least part of the weak results are permanent.
“We are undoubtedly being impacted by lower levels of activity,” said William Tanona, a financial services analyst with UBS. “There is a lot of uncertainty out there.”
Together, the five Wall Street banks are still going to take in more than $ 20 billion from their core trading operations, largely from business done on behalf of clients. For example, the banks routinely help airlines hedge oil prices or bring together buyers and sellers of stock, bonds and other complex securities — often putting their own money on the line to facilitate a trade. But during the second quarter, the business was particularly hard hit.
Trading volumes fell sharply as investors became unnerved by the running debt crisis in Europe, the political standoff over the debt ceiling in the United States, and lingering concerns over the anemic growth of the broader economy. Even when investors did place their bets, they were far more hesitant to take big risks — something known on Wall Street as lacking conviction. That meant the banks missed out on the lucrative fees they can generate by selling more high-octane products, like complex options and derivatives.
Fixed-income traders, among the biggest moneymakers for Wall Street, faced a bruising market. In the commodities business, for example, oil, gold and other metals prices had been rising quickly during the early part of the year as investors anticipated high demand for materials to keep the global economy humming. But as cracks in the recovery kept surfacing, prices headed south — and traders raced to the sidelines. That left most Wall Street desks, which had stocked up on inventory to facilitate trades, holding losing positions.
At JPMorgan, for instance, energy traders were having a gangbuster year, earning several hundred million dollars for its burgeoning commodities unit. Yet when the market turned in early May, they gave back some of those gains, according to market participants. Morgan Stanley, meanwhile, suffered tens of millions in losses on its interest rate desk when a bet on lower inflation turned against the bank’s position.
Mortgage trading did not fare much better. After rallying from highly depressed values for much the last two years, mortgage-backed securities prices fell sharply during the second quarter. The reason? The government started dumping into the market its vast portfolio of mortgage bonds acquired from its rescue of the American International Group, and investors believed the outsize supply would cause values to plummet. (Only recently, when the Federal Reserve Bank of New York announced it was halting auctions of the A.I.G. mortgage bonds, did prices start to stabilize.)
Although the banks have slowed the spill of red ink from troubled mortgages and other bad loans, they are struggling to increase revenue in their more traditional banking businesses, too.
New financial regulations have chipped away at once-lucrative sources of income, like overdraft charges and credit card penalty fees. Starting this fall, banks are expecting to absorb a multibillion-dollar hit when they are forced to sharply lower the fees they charge each time consumers swipe their debit cards. Higher capital requirements, meanwhile, could further depress profits if some banks are forced to lighten their balance sheets or exit certain businesses altogether.

City Index is helping traders to stay informed of market-moving events by providing daily financial news via its website.
Having an awareness of news activity and understanding how a specific event will impact prices can help traders to react more effectively when market moving developments emerge.

Joshua Raymond, City Index’s Chief Market Strategist, states: “One of the key things to do before you open a trade is to make sure you understand how the market works. You need to have a basic grasp of what moves it and why. For example, if you were looking to trade BA shares and didn’t know that a spike in the price of crude oil typically weakens the price of British Airways by driving up fuel costs, then you could be fighting a losing battle.”City Index also offers traders the opportunity to pick up key news in just a couple of minutes every morning with its daily market update video. As well as general market commentary, the company offers regular trading tutorials from industry experts Mr. Raymond and Sandy Jadeja.

Learn more about trading with City Index at:http://www.cityindex.co.uk/learn-to-trade/

Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website and any such liability is hereby expressly disclaimed.

Investing in gold, platinum and silver is an excellent way to add variety to your portfolio. Traditionally, precious metals investing is a main part of the serious investor’s financial plan.

## How can I Invest in Precious Metals?

There are a few different ways of going about investing in gold, silver or platinum. One traditional strategy is to actually purchase and keep the metals. Usually gold and silver are purchased in bars or coins.
One other way to delve into precious metals investing is to purchase stock in a mining company. Widening your portfolio with mining company stock is undoubtedly an adventurous approach to invest in precious metals without having to keep the metal on hand. It’s also possible to spread your risk out a tad by investing in mutual funds that invest in the stock of more than one mining company.

## What Should I Expect Out of Investing in Mining Companies?

You must be prepared for a lot of fluctuation in the marketplace. It’s not uncommon for there to be fairly large changes either up or down from day to day. Additionally it is possible for there to be several days with no trades. These are generally small companies, and so the guidelines you could use to invest in multi-million dollar corporations may well not apply. You will want to become familiar with mining industry trends to get the most out of your investment.

##How Do I Find Out About Mining Industry Trends ?

As with any investment, it is very important know how speculation of futures and recurring trends can impact your portfolio. Because of the nature of gold, and other precious metals, these tend to act more like currency investments than commodity investments. If you are planning to invest in mining companies, you will need to keep up-to-date with the current price of precious metals, as these directly impact on the strength of your company’s stock.

There are a selection of online sources which will help you learn to understand mining industry trends , and how they are likely to affect you. Many of these are set up as a type of online publication, or journal, and may have resources like articles about the industry, current stock quotes from various markets, and evenfinancial news video that you can stream live, or search by archive.

## How Can I Find A Good Online Source for Investing in Mining Companies?

To start gatheringdetails about investing in prospecting and precious metals, look online for a site that has a variety of references you can study. An effective site will have current articles and information on an assortment of companies and issues. There ought to be archived back issues or articles that you can study to obtain a feel for the site. A site with financial news video is quite helpful, so that you can set out to follow current trends and reports.

This means that financial journalists are in the business of finding great stories and sounding like authorities no matter what. The stock market is a great place for them to dig up news scoops to feed to the public. They dont really check their facts very well and sometimes not at all. This means that if some insider wants to feed you a line of bull manure then all they have to do is maintain good connections with financial journalists, sponsor an investment show, or outright buy an investing TV channel like Jack Welch the CEO of GE did when he set up CNBC. What a great way for inside executives to control the flow of news information to the public then to actually own one of the only financial news channelsbut not so great for you!
These journalists also kick up the fire by bringing in so-called experts to talk about each side of some topic that real experts would not consider important.
This just makes it all the more confusing for the public to understand what is important when buying or selling a stock. Shows on CNBC like Closing Bell, Kudlow & Company, and Mad Money do nothing but confuse and misdirect the attention of most individual investors in the public. Even worse this means that the financial news media allows overpriced stocks to be recommended through analysts in the inside web that inside executives are dumping on the public because they are trying to get out. This actually happened at the top of the bull market in 1999. For a great historical description of what happened read Maggie Mahars book entitled Bull.

The famous Yale University Economist, Prof. Bob Shiller, Ph.D. is particularly harsh on the media in his book Irrational Exuberance. Dr. Shiller is one the economists that Alan Greenspan respects most and where he got the term Irrational Exuberance. He portrays the media as sound-bite-driven where superficial opinions are preferred over in-depth analyses. I agree whole heartedly with him and contend that it is also done just because the industry would rather have the retail investor confused and emotionally pliable to get you to buy and sell when they want with total disregard for your best interests!

People who had invested their life savings in the stock market were ripped off in the stock market because the financial news media and analysts were hyping up what a great buy stocks were at the very top of the market in 1999 and 2000. At the same time inside corporate executives were selling out everything they had. What is amazing is that our federal government in the form of the Security Exchange Commission never did a thing about it. There was never a blanket case taken or an outcry that almost all of the inside executives had somehow magically sold out of the market six months before the market crashed.

If you want to be a Forex trader you need to know about the financial world and what is happening there round the clock. Well, it is not limited to the financial world alone. Updates about the economical statistics and the political world are equally important. The Forex market is easily swayed by the major global news. Technical analysis is needed if you want to be triumphant. You will not get a single penny without that. But global financial news can help you reap huge profits and can save you from catastrophic losses.

Banks:

Undoubtedly, finance has been the most crucial aspect of an economy. No wonder, we get jitters just by rumors of an increase in inflation rate. History supports the fact that the power of money has enabled nations in establishing supremacy and ruling the world. Recently, we have confronted a battle in the form of recession that engulfed the entire world. With the market just recovering and an economy that has just begin to witness growth, the relevance of financial security in the life of a common man cannot be denied.

So what could be the most accurate source of information related to different aspects of finance in an economy? The expected answer is financial news. Not only is financial news helpful for understanding the critical aspects of an economy, but also helps in correlating the effect of developments in market with our daily lives.

Financial news is helpful to people from all walks of life. While the middle-class remains plagued with the usual questions such as: Would I be capable of funding my retirement? Did the market value of my house decrease? Is my present job secure? The less privileged may be concerned about basic necessities such as food, shelter and clothing. Financial news offers an answer all such queries. Moreover, suggestions and advices put forth in the form of news may prove extremely helpful in preparing for a crisis.

Besides this, the traders can also utilize the useful information derived from financial news and maximize their profits. Moreover, the news also facilitates investors in understanding the market. At times even the tested and proven theories fail. Therefore, despite being veterans in the game of money it is essential to keep a track of the developments taking place in the market. Gathering information about prevailing market conditions helps in making decisions about future investment plans.

Acknowledging the influence exerted by finance on our daily lives, we must try to remain updated about different aspects of the market with the help of financial news. Not only is the information useful for our present, but also our future.

Various types of investment options are there for you to choose from. You can be well-known about the risk factor, ups and downs, interest rate and many other terms and conditions about these options from the Finance News that are published or telecasted for the people.

Hundred of newspapers are there that published all types of latest economic news. Many financial experts publish the right way of investment in these newspapers. On the other hand various types of magazines are present that include every kind of Finance News. You can take the right decision to invest your money by reading the article of these magazines that are related to world economy.

You can find many news channels that are only concerned with the news, related to business and economics. People can be updated instantly with every type of Economic news. Many professional and experienced financial experts try to make the people aware about the present economical condition of the world. You can achieve huge loss if you jump to any investment option without knowing the actual detail of it.

Share market is the controller of the economical system of the world. People consider share market as one of the best options to get huge returns. It is also true that risk is also very high here. It is always highly recommended to know the each and every detail of share market news before going to invest your hard earned money in this sector. The risk will be less if you purchase the share of profitable companies. The share market news includes all the present situation of some companies, ups and downs of the market and share value of companies.

However, there are many people who are either not interested in stock trading or lack money or they do not want to put whatever money they have at stake in the stock exchange.

For such people, finance news and the latest stock market updates might seem to be superfluous and the happenings on Wall Street might seem to be of no use to them. But they must realize that our daily lives are deeply affected by what happens in the stock markets.

One of the most important areas in our lives is employment, which can be deeply impacted by the happenings in the market. If the stock market goes down, the employment scenario will be dim and if the market goes up, employment will also pick up. Keeping in touch with the latest finance news as available from any of the several media can be of great help in knowing which way the wind is blowing.  

Hundreds of thousands of people have lost their jobs due to the current downturn in the economy.

Many of them have had to withdraw whatever they had in the 401k in order to survive. Even those who have not withdrawn their money will find that the amount in this retirement fund today has shrunk, as compared to what was in the fund two years ago. The main reason for this is that the money was invested in the stock market and when the economy got into turbulent waters, the stock markets went down and so did their money. If they had been abreast of the finance news and kept track of the stock market, they could have withdrawn their money before any damage.

Finance news encompasses several aspects such as the movements of the stock market, the performances of companies and their stocks, the currency strength and its relations with other major currencies of the world and other company news. These aspects impact our lives as prices of commodities are governed by them. The decision to buy a house, a car or even a computer can be taken more judiciously after assessing the mortgage rates and other financial parameters.

Can you imagine the body of a globally wanted terrorist (Osama bin Laden, that is) being dumped into the sea soon after he’s done in by special forces? Me neitheWith no proof of his body and photos of the operation being held back from the public, it’s pretty natural that people would doubt the attack in Abbottabad really happened.

Though we must understand that it is done to avoid prompting retribution from fellow Muslims, skeptics like me would quickly find a ground to jump into. Yet another fodder for conspiracy buffs who are still stuck in the world of Illuminati and 76-year old Elvis, but who knows, maybe this time they’ve hit the right mark in arguing that Bin Laden is not yet dead. After all, the whole mission is all hushed up and the ‘body’ is quickly disposed of. Add to that the unbelievable time it took to execute the whole plan.

And now that they won’t even show photos of the terrorist’s body, it will only fuel more rumors.

According to reports, the elite group named SEAL Team 6 (whose existence is denied by the secret service agency itself) did Osama Bin Laden on May 1. Seal team 6, a special force reserved for high priority targets is as highly ‘classified’ as their missions.

I could imagine the anticipation the military team must have had on the way to Bin Laden’s compound. All those ten years of spying and toiling, they have come to this culmination where they’re going to bring down the most wanted terrorist in the world once and for all.

The team is ‘prepared’ alright; they have rehearsed the operation in a similar compound multiple times, in multiple ways. They know exactly what to do had the circumstances changed as they have contingency plans. On top of that, they have to move fast because they are on a foreign soil and the local forces might not welcome them warmly once alerted.

They might go down as the greatest unsung heroes of our time — if that operation did kill bin Laden, that is.

There is a general belief in people that in case you want to earn money then you are required to spend money and in fact lot of money. Although this information is correct in many respects but it is not true in each and every circumstances. Actually there is something new that is taking place online and is capable of earning you a fortune and without any consideration of your financial status or the present situation of your life.

People around the worlds are worried about the future financial position of their. But the advent of internet has opened new options for all such people. In the pat the advertisement of products used to be a costly procedure and it required lots of efforts also. But now with the advent of internet there are so many social networking websites that are used for sharing of information by people around the world. These websites are an excellent source of getting financial news and these sites also help in the flow of financial communication. Now you can advertise your product around the world while sitting in the comfort of your own office or home.

Every investor requires adequate knowledge and experience of trading in the stock market before investing his money. This will help him in getting good results and saving on time and effort. One must be aware of how does the stock market work before he starts investing. Today there are lots of online sites, books and videos which give education to us on this subject. They carry the necessary data and information which an investor should know about the market’s movement. A good accuracy of estimating the market and share prices are difficult and requires a thorough study.

What is important is that how you use the information that you get from the internet. This has greatly reduced the advertisement expense of the companies. The financial news is also now shared by people round the globe. The financial communication has become so fast and so easy. Now you can get all type of financial news that you want while sitting in the comfort of your home and in a time of few seconds. Now it is not necessary to have some physical existence of your business. You can do online trading.

If you manufacture or market a product or if you are providing some kind of counseling services or if you have any sort of useful information to provide or if you have any kind of product that can be conceived then you can market your product online and can very easily reach to the customers that are spread world wide. The common feeling about financial news among public is that it is a way to update their stock portfolios. But it is very important in the life of an investor. For investors the financial news is just like an idea. This idea is capable of growth only in case someone catches it.

People around the world believe in their own way of earning money and in case they found out that something is getting out of their beliefs then they will not accept such idea, especially if such idea is related to financial matters. Financial news provides information regarding the prospects of a product in the market. This news also helps in determining the right time of introducing a product in the market.