Global stocks decline as gloomy economic news flow resumes… Euro zone services activity falls to a fresh record low… Central banks expected to cut rates aggressively… MSCI World stock index down 0.4 percent

Citigroup has slashed its earnings outlook for Wall Street investment banks Goldman Sachs Group, Lehman Brothers Holdings and Morgan Stanley because of a tough operating environment, according to a report by Thomson Reuters.

The second quarter has seen lower client-related trading volumes, little banking activity, losses related to ineffective hedging and reversals of gains on fair valuing liabilities, [Citigroup analyst] Prashant Bhatia wrote in a note dated May 16.