Tue, May 19, 11:17 AM
- April was about as expected, but revenue from fixed income, currencies, and commodities isn't looking good at the investment banks in May, according to the team at JPMorgan.
- Equity business, however, is outperforming, which should be to the benefit of shops like SocGen (OTCPK:SCGLY), UBS, and Morgan Stanley (NYSE:MS).
- At Morgan Stanley, CEO James Gorman - speaking to reporters following the annual meeting - says market conditions have remained "solid" in spite of geopolitical news which would have spooked investors in the past. Gorman declined to give a more specific update on how Q2 was faring at his bank.
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Mon, May 11, 5:22 PM
- Morgan Stanley (NYSE:MS) confirms the sale of its Global Oil Merchanting unit of its commodities division, to Castleton Commodities International; financial terms are not disclosed, but FT reports the purchase price is at least $1B.
- The sale marks the end of Wall Street’s controversial involvement in physical oil trading; MS had agreed to sell the business to Russia's Rosneft but the deal fell apart amid tensions over the Ukraine conflict.
- While smaller now than in its heyday, MS was still handling ~2M bbl/day, or 2% of global demand, and has 45 leases totaling ~30M barrels of tank capacity.
Wed, May 6, 5:58 PM
- Morgan Stanley's (NYSE:MS) commodities group says it renewed a refined product storage deal with TransMontaigne Partners (NYSE:TLP) seven months early, extending its lease agreements for ~2.7M barrels of refined product storage in Mississippi.
- TLP says it is also in the preliminary stages of pursuing an expansion of its Collins terminal facility that would include an additional 1M barrels of storage.
- MS's move comes as it continues to seek a buyer for its physical oil business after a deal to sell it to Russia's Rosneft fell apart last year.
Fri, May 1, 9:54 PM
- With plans (but not detailed plans, yet) to go public, Spanish-language broadcaster Univision swung to a $139.7M net loss in Q1, from a year-ago profit of $6.2M.
- The company hired Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS) and Deutsche Bank (NYSE:DB) to lead an IPO that it hopes will raise $1B, which would value the broadcaster around $20B.
- Revenues were up 0.6% to $624.7M. Univision blamed its loss on termination fees that it owed to the private-equity owners of its parent, Univision Communications, as well as to Grupo Televisa (NYSE:TV).
- Televisa used convertible debt to build a 38% stake in Univision and has the right to take that to 40%, so it is set to draw a payoff from Univision's eventual offering. It also drew a record $314M rebroadcasting royalty from Univision in 2014.
Mon, Apr. 20, 11:10 AM
- While Evercore ISI's Glenn Schorr calls Morgan Stanley's (MS +1.2%) Q1 results a "Bo Derek" - otherwise known as a "10" - JMP's Devin Ryan is somewhat more measured.
- After stripping out a sizable tax benefit, "core" EPS still beat estimates, but not by nearly as gaudy an amount as the headlines suggest. The outperformance - however - was driven by FICC action, and one wonders how sustainable that is. Wealth Management revenues, on the other hand, were 3% less than what Ryan had modeled.
- "We suspect investors will initially view results favorably, but given the trading-heavy outperformance, we believe the focus will also be on sustainability, which could temper the upside."
- Speaking on the earnings call, Google-bound CFO Ruth Porat - applauding some of the regulatory measures aimed at banks since the crisis - calls for a "time out" to "pause, digest, and assess" what's working and what's not.
- Previously: Morgan Stanley +2% after strong Q1. (April 20)
Mon, Apr. 20, 7:47 AM
- Q1 income from continuing operations (excluding DVA) of $2.3B or $1.14 per share vs. $1.4B and $0.70 one year ago. Company realized a net tax benefit of $564M or $0.29 per share thanks to repatriation of non-U.S. earnings at a lower than expected rate, so the earnings beat was closer to $0.07. Annualized ROE of 10.1%.
- Institutional Securities pre-tax income (excl. DVA) of $1.688B on revenue of $5.333B vs. $1.290B and $4.551B a year ago. FICC revenue of $1.9B vs. $1.7B. Advisory revenue of $471M vs. $336M. Equity sales and trading revenue of $2.3B vs. $1.7B.
- Wealth Management pre-tax income of $855M vs. $686M a year ago on revenue of $3.834B vs. $3.609B. Pre-tax margin of 22%.
- Investment Management pre-tax income of $187M vs. $268M a year ago.
- CET1 ratio of 13.7%. Tangible book value per share of $28.91.
- Firm repurchased about $250M of stock during quarter, or roughly 7M shares.
- Previously: Morgan Stanley beats by $0.36, beats on revenue (April 20)
- MS +2% premarket
Mon, Apr. 20, 7:16 AM
Mon, Apr. 20, 1:57 AM
- Morgan Stanley (NYSE:MS) is in discussions with New York’s top litigator, Eric Schneiderman, to settle an investigation over its shoddy mortgage bonds that lost value during the financial crisis, WSJ reports.
- The $500M deal would likely include some cash as well as consumer relief, although it is unclear whether the bank would need to boost legal reserves to account for a settlement.
- Morgan Stanley may update its legal situation when it reports Q1 earnings this morning.
Sun, Apr. 19, 5:30 PM
Fri, Apr. 17, 2:50 AM
- Goldman Sachs' (NYSE:GS) blockbuster performance in stock trading last quarter has some Wall Street watchers speculating whether it beat rival Morgan Stanley (NYSE:MS) out of the top spot in equities.
- Goldman was head-and-shoulders above Morgan Stanley for many years in stock trading, but recently the latter gained ground: Morgan Stanley's 2014 stock-trading revenue surpassed Goldman's for the first time in at least a decade.
- Analysts have cautioned that while Goldman had a good quarter, broader challenges, such as electronic trading and tighter regulation, still exist. Investors will see whether Morgan Stanley's crown will fall next week.
Wed, Apr. 15, 3:58 AM
- Morgan Stanley (NYSE:MS) has been offered more than $1B for its merchant oil trading business by Castleton Commodities International, a U.S.-based trading house.
- Morgan Stanley previously reached a deal to sell the unit to Rosneft, but the deal expired as it awaited U.S. regulatory approval in December amid tensions over Moscow's intervention in Ukraine.
- Previously: Morgan Stanley looking for another buyer for oil-storage unit (Feb. 02 2015)
Tue, Apr. 14, 3:40 PM
- Fast action at JPMorgan's trading and investment banking businesses helped the bank to consensus-beating Q1 results.
- The Corporate & Investment bank posted revenue of $9.58B in Q1, up 8% from a year ago and up 30% from Q4. Trading revenue of $5.67B gained 9% Y/Y, with a 4.5% rise in bond-trading revenue and a 22% increase in equity-trading revenue. M&A advisory revenue got off to its best start ever, up 42% from a year ago and 25% from Q4.
- Goldman Sachs (GS +1.1%) reports on Thursday and Morgan Stanley (MS +1.4%) on Monday.
- Previously: JPMorgan earnings call: Optimism on FICC (April 14)
- Previously: "Robust" activity in FICC leads strong quarter at JPMorgan (April 14)
Wed, Apr. 1, 6:28 PM
- Morgan Stanley (NYSE:MS) gave James Gorman the biggest raise yet among Wall Street CEOs for last year, hiking his pay 25% to $22.5M.
- Gorman collected an annual salary of $1.5M, a cash and stock bonus of $14.5M and longer-term incentive pay valued at up to $6.5M, capping his most lucrative year in his five running the company.
- The MS compensation committee said Gorman exceeded expectations, with the firm’s performance and shareholder returns “strong, with room for continued progress."
- CFO Ruth Porat, who is leaving this month to take the same role at Google, was awarded $13M, up from $12M a year earlier, while Colm Kelleher, who leads the investment banking and trading division, and Greg Fleming, who oversees wealth and asset management, each got $16M, up from $14.5M for 2013.
Wed, Apr. 1, 11:41 AM
- Noting both Goldman Sachs (GS +0.9%) and Morgan Stanley (MS +0.6%) have underperformed the broader markets YTD, JMP's Devin Ryan expects gains going forward, but not enough to make him a buyer yet.
- For Q1, Ryan says Goldman looks set to report the better quarter relative to expectations, but both should have good enough results to support current valuations. However, at about 1.2x tangible book value, Ryan isn't seeing a lot of room for multiple expansion.
- "We continue to look for either more dislocated valuations or signs of earnings expansion above our current expectations, to potentially become more constructive on shares at the large cap investment banks."
- Source: Barron's
Mon, Mar. 30, 11:35 AM
- Morgan Stanley (MS +1.8%) launched the compressed natural gas business - Wentworth - last year, but it quickly drew the not-so-admiring attention of the Fed, and crude oil prices have collapsed since, meaning natural gas is not so cheap of an alternative to black gold as it was last summer.
- The business will be transferred to a newly-formed company called Pentagon Energy, with two bank managers involved with Wentworth exiting Morgan Stanley to run the company.
- Source: Reuters
Fri, Mar. 27, 6:57 AM
- At the prompting of at least one BNY Mellon (NYSE:BK) director, recruiting firm Spencer Stuart firm has come up with a list of potential candidates to replace embattled CEO Gerald Hassell.
- Gregory Fleming, who runs wealth and investment management at Morgan Stanley (NYSE:MS), has been contacted about the position, Reuters reports.
- Other potential candidates include Mary Erdoes, who runs JPMorgan's (NYSE:JPM) asset management business and Michael Cavanagh, a former JPMorgan executive who is now COO at P-E firm Carlyle (NASDAQ:CG).
- Previously: Marcato demands new leadership at BNY Mellon (Mar. 10 2015)
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