Lauren's Feed
Jul 19, 2013

Analysis: Morgan Stanley stock traders rebuild burned bridges

NEW YORK (Reuters) – As Morgan Stanley’s (MS.N: Quote, Profile, Research, Stock Buzz) share price went on a headlong descent during the financial crisis in 2008, then-Chief Executive John Mack personally lobbied regulators to stop short-selling temporarily.

He succeeded. But in doing so, he made enemies among powerful hedge fund managers, for whom the practice of selling borrowed shares in a bet they will later fall is a key investment strategy.

Jul 18, 2013

Morgan Stanley quarterly profit jumps on stock trading

By Lauren Tara LaCapra

(Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) posted a 42 percent increase in quarterly profit as stock trading revenue soared, the latest sign that the No. 2 U.S. investment bank is regaining its footing.

Income rose in all the bank’s businesses. Profit from trading and investment banking was nearly six times higher than a year earlier, helped by stronger stock and bond trading, and profit in wealth management jumped 83 percent.

Jul 16, 2013

Goldman Sachs profit doubles on investment gains, lower tax rate

By Lauren Tara LaCapra

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research) on Tuesday said quarterly profit doubled, boosted by investment gains and a lower tax rate, but investors fretted that these factors will not be repeated in future periods, sending the bank’s shares lower.

Goldman’s investing and lending segment, which tracks its investments in private equity deals, publicly traded stocks, loans and bonds, produced nearly seven times as much revenue in the second quarter as in the same period last year, much more than analysts expected.

Jul 16, 2013

Goldman Sachs profit doubles on investment gains

By Lauren Tara LaCapra

(Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) said on Tuesday quarterly profit doubled, beating Wall Street estimates, boosted by returns from investing the bank’s own money.

The investing and lending segment, which tracks the bank’s investments in debt and equity markets, produced nearly seven times as much revenue in the second quarter as it did a year earlier, much more than analysts had expected.

Jul 8, 2013

Weak professional job growth hurts U.S. office market: Reis

NEW YORK (Reuters) – A lack of growth in white-collar jobs hurt the market for U.S. office space in the second quarter, with the vacancy rate stagnant at 17 percent, according to a report released on Monday by real estate research firm Reis Inc.

The vacancy rate for U.S. office space has been slowly ticking downward for over a year but remains historically high. Demand for office space has been stunted because even as the job market has improved, banks, law firms and other companies in professional services industries continue to cut jobs or hold back on hiring, said Ryan Severino, senior economist and associate director of research at Reis.

Jul 3, 2013

Strip mall owners struggle with lack of demand in second quarter

NEW YORK (Reuters) – U.S. strip mall owners struggled with a lack of demand in the second quarter, although limited construction of new space led to a modest improvement in vacancy rates and slightly higher rents, according to a report released on Wednesday.

The national vacancy rate dropped to 10.5 percent last quarter from 10.6 percent the previous period, according to the report by real estate research firm Reis Inc. It was the sixth time in the last seven quarters that the rate dropped by one-tenth of a percent, with declines driven largely by a dearth of new construction.

Jul 3, 2013

U.S. strip mall owners struggle with lack of demand in 2nd quarter

NEW YORK, July 3 (Reuters) – U.S. strip mall owners
struggled with a lack of demand in the second quarter, although
limited construction of new space led to a modest improvement in
vacancy rates and slightly higher rents, according to a report
released on Wednesday.

The national vacancy rate dropped to 10.5 percent last
quarter from 10.6 percent the previous period, according to the
report by real estate research firm Reis Inc. It was the sixth
time in the last seven quarters that the rate dropped by
one-tenth of a percent, with declines driven largely by a dearth
of new construction.

Jul 2, 2013

Weaker global markets, M&A slump to hit Wall Street bank profits

NEW YORK, July 2 (Reuters) – The second quarter was likely
tough for Wall Street bank profits as markets weakened globally
and merger advisory revenue dropped, leading analysts to lower
their profit estimates in recent days.

Trading revenue for the industry likely dropped 20 percent
from the first quarter, as falling markets and lower trading
volumes cut into the value of securities banks hold to trade
with customers, said Richard Staite, analyst at Atlantic
Equities in London. Staite expects trading revenue for the
industry to have risen just 10 percent from last year’s dismal
quarter, when the European debt crisis hurt profits.

Jun 26, 2013

Morgan Stanley won’t meet bond-trade goal this quarter: analyst

NEW YORK (Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) is expected to report bond-trading revenue below the target the Wall Street bank set after its disappointing first-quarter results, an analyst said on Wednesday.

Morgan Stanley will report $1.25 billion in fixed income, currency and commodities (FICC) trading revenue for the second quarter, below the target of $1.5 billion to $2.5 billion the bank recently outlined as necessary to meet its cost of capital, said Richard Staite, an analyst with Atlantic Securities.

Jun 21, 2013

Morgan Stanley finishes wealth business buyout

By Lauren Tara LaCapra

(Reuters) – Morgan Stanley said it will buy the rest of its wealth-management joint venture with Citigroup Inc by the end of the month, completing a deal started during the financial crisis that was designed to stabilize both banks.

Morgan Stanley will pay $4.7 billion for Citigroup’s remaining 35 percent stake in the joint venture that the two banks set up in 2009. It is also paying about $2 billion to redeem Citigroup’s preferred securities.