What's going on?

Spare a thought for the former �Masters of the Universe�. Data on Thursday showed revenues at the 12 largest European and American investment banks hit a 13-year low in the first half of 2019.

What does this mean?

Combined revenues at big investment banks fell 11% compared to the same period last year amid declining global economic growth. Their individual results had already flagged a slowdown in trading on behalf of clients � and a 17% combined drop in revenue from stock trading may mean others are considering following Deutsche Bank in abandoning the sector altogether.

Scandal-hit Danske Bank could be one. The Danish lender said on Thursday that it was overhauling its management team, with new hires including the former second-in-command at Germany�s Commerzbank � a pivotal figure in its shift away from risky investment banking towards corporate and consumer loans.

Why should I care?

For markets: Bond trading ain�t what it used to be.
Revenues from �fixed income� trading dropped 9% in the first half of 2019. That was partially thanks to lower interest rates: central banks around the world have collectively cut rates 32 times and counting this year, and investors expect another 58 nicks over the next 12 months.�[Tweet this] But revenues earned from advising companies on new bond issuances might be in for a boost. Big firms have been rushing to �refinance� debt while borrowing is cheap: US companies sold $27 billion of bonds on Tuesday alone, while Apple followed on Wednesday with a $7 billion bond deal � its first since 2017.

The bigger picture: The UK�s biggest consumer finance scandal had a sting in the tail.�
British lenders (including big investment bank Barclays) have had to spend over $44 billion compensating customers who were mis-sold payment protection insurance. After many years (and some bizarre commercials), the claims deadline has finally passed � but on Wednesday, an unexpectedly large number of last-minute applications led to British bank CYBG following rival RBS in warning that the cost of processing them would hit profit this quarter.