John Kay, the economist and author, will warn this week that the world is heading for another financial crisis.

Almost a year after the publication of his ground-breaking review of the UK’s equity markets, the London School of Economics professor will say in a keynote speech this week that “the eurozone does look likely to be [the next crisis]”.

The professor, who is a columnist for the Financial Times and spent a year gathering material for his 40,000-word report which was published in July, says the reason for his gloom is that the financial services industry is designed around trading activity that is prone to instability. “We have been through sequential crises, of which the prominent examples have really been the emerging market debt crisis in the mid to late-1990s, the new economy bubble, credit expansion and bust, and the eurozone crisis.