BNP Paribas Sees 'Consistent' 4Q Bank Underperformance

The video discusses the challenges in the banking sector, focusing on earnings and technical analysis. It highlights the consistent underperformance of financials in Q4 since 1992, with a particular focus on the trading division's decline. The discussion includes the impact on smaller firms and major banks like Goldman Sachs and Morgan Stanley, emphasizing the role of volatility. The video also covers the decline in earnings estimates for banks like Deutsche Bank and Citigroup, reflecting market pessimism. The expectation of increased volatility and its implications for the financial sector are also explored.

What factors are contributing to the decline in estimates heading into earnings?

What does the speaker suggest about the relationship between volatility and trading performance?