|Bid||49.01 x 900|
|Ask||49.02 x 1400|
|Day's Range||48.67 - 49.10|
|52 Week Range||36.74 - 49.89|
|Beta (3Y Monthly)||1.35|
|PE Ratio (TTM)||10.48|
|Earnings Date||Jan 15, 2020 - Jan 20, 2020|
|Forward Dividend & Yield||1.40 (2.84%)|
|1y Target Est||52.98|
The Streetwork Project grant extends the Firm’s funding of programs that provide a continuum of services to New York City youth, with focus on the LGBTQ community, by connecting this vulnerable group with crisis support and long-term care, empowering them to seek safety and stability to ultimately thrive as young adults. Morgan Stanley (MS) today announced a $1,000,000 grant to Safe Horizon, a victim assistance non-profit that provides advocacy and support to victims who have experienced crimes or abuse including domestic violence, child abuse, sexual assault and human trafficking. In addition, the organization is New York City’s leading provider of emergency services and supportive care for homeless youth.
(Bloomberg) -- Saudi Aramco’s bankers are seeing sufficient early demand to pull off the state oil giant’s initial public offering just three days after launching the deal, people with knowledge of the matter said.The IPO arrangers are indicating in private discussions that they already have nearly enough orders to cover the institutional portion of the deal, the people said, asking not to be identified because the information is private. They still have more than two weeks to go, as fund managers can subscribe to the stock until Dec. 4, according to Aramco’s prospectus.Building early momentum is important in large equity offerings, as investors are encouraged to jump in when they see other institutions rushing to buy shares. The precise amount of real demand will only become clear later once underwriters compare the orders they’ve received, the people said.Saudi authorities have been pulling several levers to try and make the deal a success, pressuring the kingdom’s richest families to invest and loosening margin lending rules for banks. They’ve been negotiating commitments from the billionaire Olayan family, who own a major stake in Credit Suisse Group AG, and Saudi Prince Alwaleed Bin Talal, Bloomberg News reported earlier this month.Domestic PitchAramco representatives have also been seeking investments from the Almajdouie family, who distribute Hyundai Motor Co. vehicles in the kingdom, and members of the Al-Turki clan, people with knowledge of the matter have said. Saudi Arabia is seeking to sell about a 1.5% stake in Aramco at a valuation of as much as $1.71 trillion, with proceeds going to the country’s sovereign wealth fund. About a third of the offering has been set aside for retail investors. Aramco, officially known as Saudi Arabian Oil Co., declined to comment.The Wall Street banks working on the transaction are set to lose out on a highly anticipated fee windfall after the deal was pared back from a record global offering to a mainly domestic affair. The foreign underwriters will be compensated for costs but may not be paid enough to make a meaningful profit from the deal, people with knowledge of the matter said.Goldman Sachs Group Inc. and Morgan Stanley are among the banks that may miss out on the payday. Aramco was initially expected to pay $350 million to $450 million to the more than two dozen advisers on the deal, including banks, lawyers, marketing firms and advertising agencies, Bloomberg News reported in October.After senior bankers delivered pitches that Aramco would be able to the achieve Crown Prince Mohammed bin Salman’s $2 trillion target with a 5% sale, the Saudi government and Aramco management are frustrated Wall Street’s biggest names were unable to deliver on those ambitions.(Updates with chart.)To contact the reporters on this story: Archana Narayanan in Dubai at email@example.com;Matthew Martin in Dubai at firstname.lastname@example.org;Dinesh Nair in London at email@example.comTo contact the editors responsible for this story: Ben Scent at firstname.lastname@example.org, ;Stefania Bianchi at email@example.com, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Morgan Stanley told financial advisers on Tuesday that they could be paid less if they do not generate more revenue or get customers to sign up for comprehensive financial plans next year, people familiar with the bank's 2020 compensation plan said. Morgan Stanley made several changes to the incentive structure, including its 16-tier "pay-out grid" that determines what percentage of fees and commissions brokers get to take home. Some brokers who generate less than $5 million in annual revenue will have to deliver another 10% to reach the payout they received in 2019, according to material reviewed by Reuters.
Semiconductor designer and manufacturer Broadcom gets the royal treatment from Morgan Stanley after crowning the company a "top pick." But will it deliver?
(Bloomberg) -- Shares of Vodafone Idea Ltd. and rival Bharti Airtel Ltd. rallied after the wireless carriers said they planned to raise tariffs starting next month, the first increase since the entry of billionaire Mukesh Ambani into India’s telecommunications market in 2016 triggered a price war.Vodafone Idea surged as much as 30% in Mumbai on Tuesday, while Bharti Airtel rallied as much as 6.6%. Reliance Industries Ltd.’s shares rose more than 3% to a record on optimism Reliance Jio Infocomm Ltd. will also benefit from higher tariffs. “Mobile data charges in India are by far the cheapest in the world even as the demand for mobile data services continues to grow rapidly,” Vodafone Idea, formed by the merger of Vodafone Group Plc’s local unit with billionaire Kumar Mangalam Birla’s Idea Cellular Ltd., said in a statement late Monday. Higher rates will become effective Dec. 1, it said.Separately, a Vodafone Idea spokesman declined to disclose details about the possible tariff increase and plan details. The move comes after the wireless carrier reported the worst quarterly loss in Indian corporate history last week. The announcement of the increase was followed by Bharti Airtel, which also said it will raise phone rates from next month.Vodafone Idea last week took a one-time charge related to a $4 billion demand from the government, leading to a net loss of 509 billion rupees ($7.1 billion) in the September quarter. Saddled with about $14 billion of net debt, Vodafone Idea is fighting for survival after India’s top court last month ordered it and others including Bharti Airtel to pay fees that the government said were due from prior years.Indian telecom companies have been faced with high debt and low prices especially after the entry of Jio. That drove some to bankruptcy and led to the merger of others such as Vodafone with Idea. The acute stress in the sector has been acknowledged by all stakeholders and a high-level government panel is looking into providing appropriate relief, Vodafone Idea said Monday.“The key will be Jio’s response to the price hike. We think Jio could likely follow,” Jefferies analysts wrote in a note. Reliance has potential to gain from already above average valuation, thanks to the possibility of higher telecom tariffs and its debt reduction plans, Morgan Stanley analysts wrote.(Adds Reliance shares in second paragraph, analysts comments in last)To contact the reporters on this story: P R Sanjai in Mumbai at firstname.lastname@example.org;Swansy Afonso in Mumbai at email@example.comTo contact the editors responsible for this story: Sam Nagarajan at firstname.lastname@example.org, Abhay Singh, Ravil ShirodkarFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The eurodollar options market, where investors bet on U.S. interest rates, is typically quiet during Asian trading hours. The lack of liquidity hasn’t stopped the building of huge positions in recent weeks.A series of block trades, similar in size and structure, has led to speculation that at least one investor is betting big that the Federal Reserve will cut rates only once more, at most, in this cycle. The hedge for just one transaction last week was equivalent to more than four times the average daily volume for September contracts in the region.With Fed Chairman Jerome Powell sticking to his view Wednesday that rates are probably on hold after three straight reductions, investors have dialed back expectations. Futures show close to zero easing priced in for the remainder of this year, and a quarter-point cut in 2020.“The Fed shows no signs of hurrying to cut rates,” said Jun Kato, chief market analyst at Shinkin Asset Management in Tokyo. “With Powell repeating that the U.S. economy is in a good shape, speculation that there won’t be any more cuts is gaining momentum.”That view appears to underlie the eurodollar positions constructed during Asian hours over a period of three weeks, based on an analysis of the options purchased and sold and open interest changes.The trades started drawing attention from Oct. 24 after a series of large block transactions. From then, they have proceeded like clockwork every few days, with the latest showing a build up of 98.00 puts and 98.75 calls.For an illustration of how the trades work, take a look at a risk-reversal bet placed on Nov. 12 on the level of 3-month Libor in September 2020. The investor bought one put option with a target of 2%, and sold a call at 1.25%, a strategy that will make money if markets price out more than one Fed cut and incur losses if expectations for more easing increase.In total, there are are around 280,000 short positions in calls targeting a strike equivalent to 1.25% for the September 2020 and March 2021 eurodollars contracts. That means if markets start to price more than two Fed rate cuts by this time, someone holding that position would stand to suffer heavy losses.On the flip side, not all economists agree that the Fed will cut rates even once. Morgan Stanley predicts the central bank will remain on hold through 2020 in its global strategy outlook.The trades stand out not only for their size, but also their timing, during less liquid Asian hours.Less Liquid“Simply believing a Fed on hold in 2020 brings us closer” to the 98 strike, at least through the end of this year, said Albert Marquez, who covers interest rates at Chicago Capital Markets.Alternatively, the trade might be to take advantage of elevated call skew, he said. Executing during Asian hours is strange, though, as “the amount of edge given up at that time is exaggerated,” he said.Pricing has probably been expensive as dealers who take the other side of the bet need extra compensation for the risks of hedging positions in thin markets, according to traders in London and Chicago who asked not to be named as they aren’t authorized to speak publicly.For example, the risk-reversal trade on Nov. 12 was for 80,000 options. Market pricing at that time meant a dealer accepting it would have to sell around 32,000 equivalent Eurodollar futures to hedge it. So far this month, the average daily trading volume during Asia hours for September 2020 contracts is just a little over 7,000, according to data compiled by Bloomberg.A similar structure counting on minimal deviation in expectations for Fed policy was bought during the U.S. session Friday, and open-interest changes subsequently indicated it was for new risk.Eurodollar futures are the most-traded interest-rate derivatives. They are standardized, exchange-traded instruments that allow traders to bet on the direction of short-term interest rates and are priced off three-month Libor fixing at expiry.(Adds additional structure bought during U.S. hours Friday in 14th paragraph)\--With assistance from Chikako Mogi, Elizabeth Stanton and Edward Bolingbroke.To contact the reporter on this story: Stephen Spratt in Hong Kong at email@example.comTo contact the editors responsible for this story: Tan Hwee Ann at firstname.lastname@example.org, ;Benjamin Purvis at email@example.com, Cormac MullenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
PNE AG shareholder ENKRAFT has called for a special audit of a takeover bid for the German wind project firm from a fund controlled by Morgan Stanley, an investor letter showed. ENKRAFT, which holds more than 2.9% in PNE, opposes the deal, arguing it significantly undervalues the company and is critical of management for failing to launch a proper sale process to increase value. Morgan Stanley Infrastructure Partners (MSIP) has bid 4.00 euros per PNE share, valuing the firm at 306 million euros.
Morgan Stanley today announced that it has launched an offering (the “Offering”) of Fixed Rate Non-Cumulative Preferred Stock, Series L, which will be represented by depositary shares (the “Series L Preferred Stock”). The Offering is subject to pricing, which has not yet occurred. Morgan Stanley today also announced that, if the Offering is priced and proceeds to closing, it intends to redeem its outstanding 6.625% Non-Cumulative Preferred Stock, Series G (61762V408), and the depositary shares representing the Series G Preferred Stock (CUSIP 61762V507; NYSE: MS PrG) (the “Series G Preferred Stock”) on January 15, 2020 pursuant to the optional redemption provisions provided in the documents governing such Series G Preferred Stock (the “Redemption”).
Saudi Arabia has abandoned plans to formally market shares in its state-owned oil company outside the kingdom and its Gulf neighbours, in the latest sign of the initial public offering’s shrunken ambitions. Bankers learnt on Monday that no formal European investor meetings would take place, a day after roadshows in the US and Asia were called off, according to people familiar with the matter. The decision is the latest setback for the kingdom, which will now seek to raise about $25bn through the flotation of Saudi Aramco — just a fraction of the $100bn it once sought.
(Bloomberg Opinion) -- As recently as March, Daimler AG, the German carmaker, promised to put 10,000 autonomous taxis on the streets by 2021. But this week, Daimler chairman Ola Kaellenius announced that the company was taking a “reality check” on the project and focusing on self-driving long-haul trucks instead. It’s fine that self-driving cabs aren’t coming as fast as some expected — and it’s even better that Silicon Valley-style big talk appears to be going out of fashion.Kaellenius’s “reality check” has some solid business reasons: Daimler is cutting costs and can’t commit to a large, capital-intensive project without a clear idea of what kind of first-mover advantage it might confer. But mostly, it comes because of a long-obvious technical problem. Making sure self-driving cars aren’t a menace in city traffic is a job that’ll take more than a couple of years. Investigators are still trying to get to the bottom of the March 2018 accident in which a driverless Uber killed a pedestrian in Tempe, Arizona, and it appears Uber Inc.’s cars had been involved in dozens of previous nonfatal incidents in the course of the same testing program. No one wants to be in the same situation as Uber — so General Motors Co. subsidiary Cruise won’t be launching self-driving taxis in San Francisco this year, as previously promised, and maybe not next year, either. There's been lots of news stories about Waymo Llc, an Alphabet Inc. subsidiary, launching a self-driving taxi service in Arizona, and in April, it even put an app for it on the Google Play store. But in September, Morgan Stanley lowered Waymo’s valuation because of delays in the commercial use of its technology, and last month, Waymo chief executive John Krafcik said driverless delivery trucks could come before a taxi service.For European carmakers, which have to deal with older cities not laid out on a grid, launching autonomous taxi services appears even more daunting than for Americans. They know it’s a long way from Tempe to Amsterdam or Rome. That’s one reason Volkswagen AG, a latecomer to self-driving development, isn’t worried about being overtaken. Alexander Hitzinger, chief executive of Volkswagen’s autonomous-vehicle subsidiary, said in a recent interview that even an industry pioneer such as Waymo was “a long way away from commercializing the technology” and that Volkswagen’s autonomous vehicles would be developed by the mid-2020s.That time frame may be no more realistic than the previous hype about big 2019 and 2020 launches. Autonomous car developers can complain all they want about unpredictable human drivers and pedestrians who are causing all the accidents with their flawlessly superhuman creations, but nobody is going to clear the cities of people to give self-driving cars a spotless safety record. And making sure that, after millions of hours of training, artificial intelligence is finally able to drive like a human after a few hundred hours on the road, is not all that’s required for robotaxis to be viable. There's still the whole matter of figuring out how to reduce rather than increase urban congestion by using cars that don't “think” like humans.It’s also dangerous to adopt any kind of specific framework for the launch of automated truck services, even though that’s an easier project than taxis because the routes are fixed. The presence of humans in what is still a predominantly human world has rather unpredictable consequences for robot behavior. And the first movers have an obvious disadvantage: Like Uber with a taxi, they can get burned in ways that could set the whole business back years, and the earnings potential is unclear.None of this means, of course, that self-driving development has failed or even hit a dead end. Given enough time and a few technological breakthroughs, autonomous vehicles will be safe around actual people in actual winding, narrow, crowded streets. Engineering challenges exist to be overcome. The problem isn’t with the tech, which is moving along at a reasonably rapid pace, but with how that progress is communicated.Nobody forced experienced managers at venerable companies such as Daimler or GM to make overly optimistic statements about self-driving taxi launches. Waymo is a cash-burning startup, and it’s difficult to hold it responsible for getting ahead of itself. But the adults in the room look silly for having tried to play catch-up. There’s no reason for the big car companies to make any promises on self-driving at all. Unlike with vehicle electrification, which is part of many countries' climate policies, there’s no regulatory pressure to eliminate human drivers. And autonomous mobility-related business models are purely theoretical at this point.It would be enough for companies involved in autonomous car development to say they’re working on it. Pretty much all the big players are, to some extent. The time for any other kind of announcement will come when someone is really ready to launch a commercial service, whenever that may be. No rush.To contact the author of this story: Leonid Bershidsky at firstname.lastname@example.orgTo contact the editor responsible for this story: Tobin Harshaw at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Leonid Bershidsky is Bloomberg Opinion's Europe columnist. He was the founding editor of the Russian business daily Vedomosti and founded the opinion website Slon.ru.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The latest round of 13F filings from institutional investors is out, revealing to the world the stocks that some of the richest and most successful investors have been buying and selling. Takeaways From ...
(Bloomberg) -- Goldman Sachs Group Inc. agreed to pay $20 million to settle an investor lawsuit accusing traders at the bank, along with 15 other financial institutions, of rigging prices for bonds issued by Fannie Mae and Freddie Mac.As part of the settlement, disclosed Friday in a court filing, Goldman Sachs will cooperate with investors in their case against the other banks. The firm also agreed to make changes to its antitrust-compliance policies related to bond trading. A federal judge in Manhattan must approve the settlement before it can take effect.Investors sued after Bloomberg reported in 2018 that the U.S. Department of Justice was investigating some of the world’s largest banks for conspiring to rig trading in unsecured government bonds.Goldman Sachs has turned over 71,000 pages of potential evidence, including four transcripts of chat-room conversations among its traders and some from Deutsche Bank AG, BNP Paribas SA, Morgan Stanley and Merrill Lynch & Co., according to court papers filed Friday. The bank agreed to provide additional help, including deposition and court testimony, documents and data related to the bond market.Goldman Sachs isn’t the first to resolve the civil claims. In September, Deutsche Bank agreed to settle for $15 million. First Tennessee Bank and FTN Financial Securities Corp. agreed to a $14.5 million settlement later in September.Among the firms remaining as defendants in the case are Credit Suisse AG, Barclays PLC and Citigroup Inc.The case is In re GSE Bonds Antitrust Litigation, 19-01704, U.S. District Court, Southern District of New York (Manhattan).To contact the reporter on this story: Bob Van Voris in federal court in Manhattan at firstname.lastname@example.orgTo contact the editors responsible for this story: David Glovin at email@example.com, Steve StrothFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Oil advanced for the first time in three days after a report that OPEC sees a potential reduction in supply from outside of the group.Futures rose as much as 1.3% in New York Wednesday after the American Petroleum Institute reported that U.S. stockpiles fell 541,000 barrels last week, according to people familiar. Apart from a “sharp” cut in projected output from non-member countries next year, the Organization of Petroleum Exporting Countries also sees a possible “upswing” in the forecast for demand growth, according to Secretary-General Mohammad Barkindo. The comments underscore a more upbeat outlook for the oil market into the new year.When the OPEC news hit the market, prices “started to rally from the red to the green,” said Bob Yawger, future divisions director for Mizuho Securities in New York. “Until this turnaround, things were getting ugly.”While crude prices have picked up over the past month, they’re still down about 14% from the peak reached in April as the prolonged U.S.-China trade dispute saps an already-fragile global economy and crimps fuel demand. OPEC, which cut production this year to prop up the market, has signaled it’s unlikely to take stronger action to prevent a renewed glut in 2020.Meanwhile, Federal Reserve Chairman Jerome Powell said the current stance of monetary policy is likely to be sufficient provided the economy stays on track, but warned that “noteworthy risks” remain to record U.S. expansion.“The market is digesting chairman Powell’s speech,” said John Kilduff, partner at Again Capital in New York. “This is a bit of positive pull up from Powell. It’s the fact that the Fed is going to be on hold because the economic outlook is looking brighter and is a key aspect to the energy market these days because of the focus on the demand.”West Texas Intermediate for December delivery traded at $57.45 at 4:37 p.m. after rising 32 cents to settle at $57.12 a barrel on the New York Mercantile Exchange.Brent for January rose 31 cents to close at $62.37 a barrel on the London-based ICE Futures Europe Exchange, and traded at a $5.17 premium to WTI for the same month.Read: Global Oil Demand to Hit a Plateau Around 2030, IEA PredictsThe industry-funded API also reported that stockpiles in Cushing, Oklahoma, fell 1.18 million barrels while gasoline and distillate inventories gained by a combined 3.15 million barrels. The Cushing fall would be first decline in over five weeks, if U.S. Energy Information Administration data confirms it.Meanwhile, in the U.S., crude stockpiles probably rose by 1.5 million barrels last week, according to the median estimate of analysts surveyed by Bloomberg.“Thursday is going to be the next big test here,” Yawger said in anticipation of the EIA report. “Whichever number is bigger will be the way most likely that the market will trade to.”To contact the reporter on this story: Jacquelyn Melinek in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Christine BuurmaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Takeaway.com NV Chief Executive Officer Jitse Groen said it doesn’t make sense to overpay in its bid to gain control of U.K. rival Just Eat Plc.“I don’t want to be the idiot that runs into a ratio that doesn’t make any sense,” Groen said Wednesday at the sidelines of the Morgan Stanley European Technology, Media & Telecom Conference in Barcelona.Takeaway is currently battling Prosus NV, which officially filed its hostile offer for Just Eat on Monday. Just Eat investors have complained about both the 710 pence-per-share cash offer from Prosus and Takeaway’s all-stock offer, currently valued at about 626 pence. Neither company has indicated that they’d raise the bid.“We will be disciplined in our approach as in all M&A situations,” a spokesman for Takeaway said in an email. “For obvious regulatory reasons, we cannot speculate about the terms of the offer.”Takeaway published a presentation on Wednesday expanding on the rationale behind its bid, adding that it expects to launch its Scoober courier service to the U.K, which is projected to incur costs in the tens of millions of euros per year.Takeaway also pointed out that it expects to cut costs by consolidating Just Eat’s five IT platforms, starting in Continental Europe.Just Eat and Takeaway have a lot of overlap in their shareholder base and so the Takeaway offer is getting a lot of investor support, Groen said.Aberdeen Standard Investments, which holds about 5% of Just Eat, said that Prosus needs to increase its offer by 20%. The investor also wanted Takeaway to increase its bid. Eminence Capital, which holds about 4%, in September said Takeaway’s bid undervalued Just Eat and that it planned to vote against that deal.“The Takeaway.com materials published today continue to underestimate the level of investment required in a sector that is changing rapidly,” Prosus said in a statement Wednesday.(Updates with comment from Takeaway in fourth paragraph.)To contact the reporter on this story: Amy Thomson in Barcelona at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Morgan Stanley, National Geographic Society and the University of Georgia College of Engineering today announced a partnership to scale and enhance the citizen science movement to help prevent and reduce plastic waste in coastlines and waterways through support for the Marine Debris Tracker (Debris Tracker). The Debris Tracker is a mobile app that allows individuals to log plastic waste pollution as well as a suite of educational materials about the sources of, and solutions to, plastic waste.
A company controlled by the billionaire Barclay brothers will inject an additional £75m of equity into Shop Direct, helping to resolve a cash crunch triggered by a spike in claims for payment protection insurance. The online retailer said it would continue to examine alternative sources for a second tranche of funds.
Active Ownership Capital (AOC), the third-largest shareholder of German renewable firm PNE AG, does not plan to accept a standing 4.00 euro per share bid from a Morgan Stanley controlled fund, PNE said on Monday. AOC "does not intend to accept the offer", PNE said in its reasoned opinion on the offer, in which it comes out in favour of the bid, which runs until Nov. 28, and recommends shareholders accept it.
Active Ownership Capital (AOC), the third-largest shareholder of German renewable firm PNE AG, does not intend to accept a standing 4.00 euro per share bid from a Morgan Stanley controlled fund, PNE said on Monday. AOC "does not intend to accept the offer", PNE said in its reasoned opinion on the offer, in which it comes out in favour of the bid and recommends shareholders accept it. AOC, which according to Refinitiv data holds a 5.07% stake in PNE, was not immediately available for comment.