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Morgan Stanley Profit Beats Estimates on Investment Banking
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By Christine Harper
Oct. 21 (Bloomberg) -- Morgan Stanley, the sixth-largest U.S. bank by assets, reported its first profit in a year, surpassing analysts’ estimates on higher investment-banking fees.
Third-quarter earnings fell to $757 million, or 38 cents per share, from $7.7 billion, or $6.97, a year earlier, the New York-based company said today in a statement. The average estimate of 21 analysts surveyed by Bloomberg was for earnings per share of 30 cents, with predictions ranging from 11 cents to 56 cents.
Chairman and Chief Executive Officer John Mack, who plans to hand off his CEO duties to Co-President James Gorman at the end of the year, has expanded the company’s retail brokerage unit and hired traders to help recover from the worst losses in the firm’s history. The stock, which has more than doubled this year, is still below where it traded in September 2008 before Lehman Brothers Holdings Inc. went bankrupt.
“There will be a general sigh of relief,” said Douglas Ciocca, a managing director at Renaissance Financial Corp. in Leawood, Kansas, which manages $1.9 billion and doesn’t own Morgan Stanley. “Building their foundation on a firmer footing is taking a little bit more time” than for Goldman Sachs Group Inc., Ciocca said.
Morgan Stanley, which had reported per-share losses for three straight quarters before today, gained 103 percent in New York Stock Exchange composite trading this year through yesterday, when it closed at $32.52.
Goldman’s Profit
Goldman Sachs, Morgan Stanley’s larger rival, last week said third-quarter profit more than tripled to $3.19 billion, or $5.25 per share, on trading gains and investments with the firm’s own money. JPMorgan Chase & Co., the second-biggest U.S. bank by assets, reported a surge in profit to $3.59 billion, or 82 cents a share, that was driven by gains at the investment bank.
Bank of America Corp., the biggest U.S. lender, said last week that it lost $1 billion in the quarter, while Citigroup Inc., the No. 3 bank, eked out a $101 million profit.
“Bread-and-butter banking is still kind of unclear, but capital markets seems to be relatively strong,” said Kenneth Crawford, a senior portfolio manager at Argent Capital Management LLC in St. Louis, which oversees about $800 million and doesn’t own Morgan Stanley stock.
Morgan Stanley is the top adviser on mergers and acquisitions announced so far this year, the first time the firm has outmatched Goldman Sachs in that category since 2000, according to data compiled by Bloomberg.
Van Kampen
Morgan Stanley agreed this week to sell its retail investment-management business, including the Van Kampen funds acquired in 1996, to Invesco Ltd. for $1.5 billion in cash and stock, giving the bank a 9.4 percent stake in Atlanta-based Invesco.
The transaction, which is expected to close in mid-2010, will leave Morgan Stanley’s fund unit to focus on managing hedge funds, funds of funds, real estate, private equity and infrastructure funds, as well as long-only funds managed for institutional clients.
“We think this is the right move” for Morgan Stanley, Glenn Schorr, an analyst at UBS AG in New York, wrote in a note to investors. Schorr said a focus on institutional asset management and the rest of the franchise is the “best use” of management’s time.
To contact the reporter on this story: Christine Harper in New York at charper@bloomberg.net.
Last Updated: October 21, 2009 08:05 EDT
World Interest Rates Table as of Wed, Oct 21 2009, 07:40:45 GMT via
http://www.fxstreet.com/fundamental/interest-rates-table/
World Interest Rates Table as of Wed, Oct 21 2009, 07:40:45 GMT via
http://www.fxstreet.com/fundamental/interest-rates-table/
EURO Index. Gap needs filled around the 153.00 level.
The Dow Jones and Euro are brothers America..Wake up !
EURO Index. Gap needs filled around the 153.00 level.
The Dow Jones and Euro are brothers America..Wake up !
Dog Jones Daily Chart. 6500 to 10,000 what a ride.
Dog Jones Daily Chart. 6500 to 10,000 what a ride.
GOLD Daily Chart. If it breaks $1070.80 it's going higher..imo
GOLD Daily Chart. If it breaks $1070.80 it's going higher..imo
Nice point...That's the way I look at it myself as well. When the public gets a pay raise there not really getting a pay raise. The government gets the raise ...lol..
Nice pick on the AUD....The big money have fell in love with the AUD over the years. Couple more reasons why below.
Oct 6, 2009 ... The Australian Dollar surged after the central bank unexpectedly raised interest rates to 3.25% and promised further rate hikes going ...
http://www.dailyfx.com/story/bio1/Australian_Dollar_Soars_as_RBA_1254808632525.html
Australian Dollar Breaks 93 U.S. Cents on Central Bank Minutes
By Candice Zachariahs
Oct. 20 (Bloomberg) -- The Australian dollar briefly rose above 93 U.S. cents as the central bank said it was “possibly imprudent” to keep borrowing costs at a half-century low in minutes of its October meeting. New Zealand’s dollar slipped.
The so-called Aussie traded near its strongest since August 2008 as Reserve Bank of Australia policy makers said keeping rates at “very low levels” for an extended period risks higher inflation. Futures traders are betting on a more than 30 percent chance the benchmark rate will rise another 75 basis points by year-end. Demand for the two South Pacific currencies was trimmed on speculation gains this month have been too rapid.
“The market has taken the RBA minutes as reasonably upbeat, but it’s already there in terms of the rates priced in for year- end,” said Phil Burke, chief foreign-exchange dealer at JPMorgan Chase & Co. in Sydney. “The dips are going to be very shallow because there’s strong underlying sentiment for Aussie dollar, but it’s going to be a slow grind higher.”
Australia’s currency rose as high as 93.11 U.S. cents, the most since August 2008, before trading at 92.81 cents as of 5:15 p.m. in Sydney from 92.92 cents in New York yesterday. The currency fell 0.5 percent to 83.73 yen after earlier touching 84.33 yen, the most since October 2008.
New Zealand’s dollar fell 0.5 percent to 75.32 U.S. cents and earlier touched 75.76 cents, the strongest since July 2008. It bought 67.97 yen and reached 68.67 yen, the most in a year.
RBA Minutes
“The appreciation of the Australian dollar in recent months had reflected the generally improving sentiment in financial markets, the relative outperformance of the Australian economy and the strength of commodity prices,” policy makers said in minutes from their Oct. 6 meeting, when the RBA unexpectedly raised rates by a quarter-percentage point.
The Australian dollar’s 32 percent gain this year may extend toward parity with the greenback as market expectations of interest-rate gains are fanned by a “hawkish” central bank, Sydney-based Roger Bridges, who helps manage the equivalent of $11 billion as head of bonds at Tyndall Investment Management Australia Ltd., said in an interview yesterday.
National Bank of Australia today forecast the Aussie will trade at $1 by March 2010 and peak at $1.03 in September. NAB, Australia’s third-largest bank by market value, joins Barclays Capital and Citigroup Inc. in forecasting the currency will trade at parity. Morgan Stanley warned of a “temporary parity break” while saying the Aussie is “chronically overvalued,” in an Oct. 15 research note.
Benchmark interest rates are 3.25 percent in Australia and 2.5 percent in New Zealand, compared with 0.1 percent in Japan and as low as zero in the U.S., attracting investors to the South Pacific nations’ higher-yielding assets. The risk in such trades is that currency market moves will erase profits.
Stocks, Commodities
Both South Pacific currencies briefly touched the highest this year versus the yen as Asian equities continued a worldwide rally. Thirty-four of the 41 companies in the Standard & Poor’s 500 Index that reported since Oct. 7 surpassed analysts’ projections, according to Bloomberg data.
The Reuters/Jefferies CRB index of 19 raw materials advanced a sixth straight session yesterday. It has added 7.8 percent this month. The London Metals Index, tracking the prices of copper, aluminum, lead, tin, zinc and nickel, advanced 3.2 percent yesterday, approaching its highest level this year.
Gains were tempered as the 14-day relative strength index for the Australian dollar versus the greenback stood at 74.97 and at 71.67 against the yen. For New Zealand’s currency the reading was 69.96 against the U.S. dollar. A reading of 70 indicates a rally is approaching an extreme and a reversal may be imminent.
‘Intense’ Interest
Demand for New Zealand’s dollar was curbed before its central bank meets on Oct. 29. Governor Alan Bollard is forecast to keep the benchmark rate unchanged, according to the median forecast of economists surveyed by Bloomberg News. Bollard said on Sept. 10 he didn’t expect to raise borrowing costs until “the latter part of 2010.”
“Attention on the RBNZ policy statement next week will be intense,” said Greg Gibbs, a currency strategist at Royal Bank of Scotland Group Plc in Sydney. “If they drop their now well- worn ‘latter part of 2010’ line, the market will extrapolate quickly toward a tightening in the first quarter.”
Traders are betting that Bollard will increase the benchmark rate by 2.05 percentage points over 12 months, according to a Credit Suisse Group AG index based on swaps trading.
New Zealand’s two-year swap rate, a fixed payment made to receive floating rates, fell to 4.66 percent from 4.68 yesterday.
Australian government bonds advanced for the first day in five. The yield on 10-year notes fell five basis points, or 0.05 percentage point, to 5.57 percent, according to data compiled by Bloomberg. The price of the 5.25 percent security due March 2019 rose 0.328, or A$3.28 per A$1,000 face amount, to 97.649.
To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net
Last Updated: October 20, 2009 02:18 EDT
USD Daily Chart. 72 or 73 is life support...imo
Thanks Bro..:) The Dollar Index here trying to stay alive. But I believe life support is @ 72 or 73...imo...
USD Daily Chart……
PMDP...Like the GBP....It's a Beast.....:)
LLEG has done well..I sold it way to early for the distance it ran. Good luck on your picks...most of all these penny stocks bounce at one time or another.. ..:)
CXAC Chart...Breaking out here...imo..
CXAC Chart..Very nice news..Bro.....I missed the train that one. The chart is looking good...imo...
Leftylen spoke with them on 10/13. via sticky note on board. So I'm assuming we may be getting some news soon....imo.. PMDP has had some wild swings the last couple of trading sessions.
PMDP. Conference call 3pm est Tuesday 10/13
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=42490689
PMDP. Conference call 3pm est Tuesday 10/13
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=42490689
LOL...more like how much have you been paid to pump DLAD are you still mad cause you sold to early on GTLA.. It's just a paper loss if you hold..imo.
You said you lost a lot money on GTLA. What did you do put all your eggs in one basket. I'm down on GTLA as well.
I'm up a total of 200% over the last 30 days on total money gains in one of my accounts thanks to be diversified with LLEG,CINT,GTLA, NWTT, PMDP.
No bid stocks. I have several of them waiting on the bounce.
DLAD Daily Chart down 90% overall...any more questions...
Nice close here today. I took advantage of the pullbacks today as well....:) On days like this it will make a trader grab some cheap shares fast.
NWTT Daily Chart...Golden Cross here.
NWTT Daily Chart...looking good bro...imo..
DLAD 1.6 Billion shares in 2 days is pure dilution. 1 billion shares on Friday and it only moved 75%...lol...But you think GTLA and NWTT are scams...Come on bro ! Why you bashing NWTT now I made 100% off that as well.
looking good over here Bro...waiting on news now..:)
PMDP has went green again....Power Hour !
PMDP has went green again....Power Hour !
PMDP...1 MM left @ .0012 now...talking about retracing...
PMDP...1 MM left @ .0012 now...talking about retracing...
PMDP Daily Chart. Golden Cross looking good here and
could retest .0018..imo...
PMDP Daily Chart. Golden Cross looking good here and
could retest .0018..imo...
PMDP Daily Chart...The Golden Cross in action.
PMDP Daily Chart...The Golden Cross in action.
Nice day here Bro...The chart is looking good..:)
yes I did....what a run it's having.
G/J The BEAST ! 530 pips in 1 day. To bad I didn't buy any ...lol. FOREX can be entertaining ....:)
My broker in 2007 was telling me to keep buying stock. You know what I did ? I started selling my stock and mutual funds...lol.
I seen housing in Colorado take a big slump that summer and foreclosures sky rocketing in that state, so it didn't take long for me to make my mind up.
So by the end of 2007 my father and I held no long positions in the markets. My father actually sold all of his WAMU in 2007 as well.
EURO Index Daily Chart. It wants to fill the gap @ 153.00 area..imo..