Investment banks' FICC revenues are set to extend their slump through the secondquarter with FX trading hit particularly hard.
** JPMorgan analyst Kian Abouhossein expects FICC revenue to drop 19 percentsequentially as stubbornly low volatility continues to sap activity.
** Abouhossein has cut 2014 EPS forecasts for investment banks by 1-3%.
** Analysts at Credit Suisse meanwhile forecast a 15-20% yr/yr drop in FICCrevenue. CS points out that U.S. banks continue to capture market share in ashrinking market.
** Equities remain a relative bright spot. JPM's says Abouhossein predictsQ2 equities revenues are likely to fall 9 percent from a year ago and drop 8percent and activity in Europe currently better than the US & Asia.
** A weak second half in 2013 is likely to make yr/yr comparisons easierlater this year.
** Lean times on trading desks.
(RM: steve.slater.thomsonreuters.com@reuters.net)