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The US is in recession, or, at best, slowly coming out of it. As with all recessions, some things remain constant. First, company executives, bankers and investors generally don't want to admit there is a problem. They'll convince themselves that there's a new dynamic in the market that this time will make recession impossible, avoidable or at least short-lived. They'll hold off sacking people. They'll blame it on another sector of the market - in this case, they say, it started with the bursting of the tech bubble in April 2000 - and swear it won't affect them. And they'll refuse to take action to protect their companies, such as shoring up balance sheets, because they look back with nostalgia to the time when their stock prices were higher - two weeks ago, two months ago, six months ago...

David Komansky, Merrill Lynch's chairman and chief executive, has confirmed what many market commentators, and Merrill employees, have been expecting for months: he plans to step down as CEO before his official retirement date of April 2004. He does intend to stay on as chairman until that time.

Investment bank research has taken a further battering with Schroders, the asset manager, criticizing the role of analysts in the new economy bubble.

Portuguese banks were the golden boys of European finance for years, reaping the rewards of a consumer lending boom. But Portugal has landed with a bump, with GDP growth no longer outstripping the rest of Europe. The banks are suffering, both in wholesale finance and in retail, where intense competition makes it difficult to turn a profit. Even market leader Banco Comercial Português is feeling the pinch. With opportunities for domestic mergers limited, it has expanded abroad, with mixed results.

It's one of finance's most elite clubs, though its members don't accept that it exists. It's made up of the handful of heavyweight economists who advise governments in emerging-market crises while holding down senior positions at the investment banks that lend money and arrange financing for these countries. But Argentina has exposed the limits of their power and raised questions about whose interests they're serving.

The days of promiscuous big spending on IT may be over for investment banks. However, because the splurge was often ill-directed and uncoordinated there’s still a lot to be done – and spent – to patch up old mistakes, deal with major developments such as T+1 clearance and upgrade neglected back-office systems. Worryingly, most banks still seem unwilling to cooperate with rivals on pooled systems and the development of common standards.

With worries about US corporate credit scaring bond market investors far more than Argentina’s default, emerging-market issues have retained their popularity. Emerging-market debt offers low volatility, rising prices and decent volumes. Latin issuers remain in the vanguard. The only problem is that their bonds are beginning to look expensive.

Shareholders in global telecom companies don’t want to hear about Latin American expansion any more. That leaves the way clear for smart, well-financed local operators.

Close ties with the US have helped protect Mexico from the problems faced by other countries in the region. However, its future prosperity depends on its being able to learn to stand on its own two feet. President Vicente Fox faces a tough struggle to push through tax reforms.

Axa gave its brokers a nasty shock last year. It decided that it was inefficient for local offices to continue to deal with local firms and chose instead to select a much smaller number of global brokers. All of its brokers had to complete a hefty questionnaire explaining why they were up to the job of servicing one of the world’s biggest investing institutions. If relationship banks couldn’t fulfil various criteria, including access to senior staff, they were dropped from the list. And it’s not easy to get back on it.

Convertibles bankers are fretting about the lack of issuance so far this year. It’s hardly surprising, it was one of the most active markets in 2001. Some are hoping that the need to raise money quickly will help boost volumes but issuers may prove cautious.