Investment

Morgan Stanley’s Earnings Fall 9% on Lower Investment-Banking Revenue

Published

11 months ago

October 18, 2023

Oct 18 (Reuters) – Morgan Stanley’s (MS.N) third-quarter profit showed a hit from lethargic dealmaking and shares sank 6.5% as investors were also disappointed by smaller inflows to the wealth management division and the lack of announcements in the CEO succession.

The bank saw a 27% drop in investment banking revenues from a year earlier and sluggish trading as dealflow took a hit when geopolitical risk rose and the Federal Reserve aggressively raised interest rates. Morgan Stanley underperformed the market, with global investment banking fees down 17% in the quarter according to Dealogic.

“The market was disappointed with wealth management and investment banking, divisions that have represented tailwinds to Morgan Stanley, said Jason Ware, Chief Investment Officer at Albion Financial Group.

The wealth division and trading unit were hit by the rise in interest rates as clients opted to invest in money market funds instead of putting it in wealth management portfolios, he added.

“When people have a choice of making 4%, 5% return by doing nothing, they’re not going to be trading in the market,” Morgan Stanley CEO James Gorman told investors. He said clients kept a cash position of around 23%, that he expects to go down as interest rates retreat over the next years.

The bank’s profit dropped about 9% to $2.4 billion, or $1.38 per diluted share, a smaller drop than analysts had expected. Analysts had forecast $1.28 per share, according to LSEG IBES data.

Including Wednesday’s performance, Morgan Stanley shares are down 12% so far this year. The S&P 500 bank index (.SPXBK) is down 11%.

Kenneth Leon, research director at CFRA Research, on Wednesday reduced its 12-month price target for the bank by $6 to $90 a share, but kept a ‘buy’ rating.

Analysts at Evercore complained about the lack of news on the long-anticipated CEO succession, which they said “is a mistake by the Board as more time can only increase angst and divide parties.”

CEO James Gorman, who has run the Wall Street giant since 2010, announced in May that he would step down within a year. On Wednesday, he said the bank was close to an announcement.

The strongest candidates are co-presidents Ted Pick and Andy Saperstein, respectively heads of institutional securities, which includes investment banking and trading, and wealth management, while Dan Simkowitz, head of asset management, is also being considered, Reuters has reported, citing a source.

INVESTMENT BANKING

Gorman said although he saw recent improvement in M&A and capital markets transactions, he expected most of the activity to materialize next year.

Morgan Stanley’s revenue in fixed income underwriting fell even as rivals grew in the segment. CFO Sharon Yeshaya said the bank could not be compared to rivals as it has considered capital allocation rather than only fees in debt transactions.

Trading was also muted, with a 2% rise in equity trading and 11% drop in fixed income. The CEO has said the results of each unit will not be a factor in choosing the next CEO.

CRE WEAKNESS

Morgan Stanley also set aside $134 million in provisions for credit losses, surging from $35 million in the same quarter last year, driven by worsening conditions in commercial real estate (CRE). Part of the growth was a provision to cover losses with one specific loan that was not disclosed.

The results round out a largely upbeat reporting season for Wall Street’s biggest banks, which benefited from rising income from interest payments.

Profit at rival Goldman Sachs also dropped less than expected in the third quarter.

Reporting by Manya Saini, Noor Zainab Hussain and Niket Nishant in Bengaluru and Tatiana Bautzer, Sinead Carew, Saeed Azhar and Carolina Mandl in New York; Editing by Megan Davies, Lananh Nguyen, Shounak Dasgupta and Nick Zieminski

Our Standards: The Thomson Reuters Trust Principles.

Source link

Economy

S&P/TSX composite up more than 250 points, U.S. stock markets also higher

Published

3 hours ago

September 19, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.

The S&P/TSX composite index was up 254.62 points at 23,847.22.

In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.

The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.

The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.

The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

Source link

Investment

Canada’s Probate Laws: What You Need to Know about Estate Planning in 2024

Published

5 hours ago

September 19, 2024

Harry Miller

Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.

For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.

Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.

Let’s unearth how these updates can simplify the process for you and your family.

What is probate?

Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.

Here’s how it works.

Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.

Probate ensures everything is done by the book, giving you peace of mind during a difficult time.

Recent Changes in Canadian Probate Laws

Several updates to probate law in the country are making the process smoother for you and your family.

Here’s a closer look at the fundamental changes that are making a real difference.

1) Virtual witnessing of wills

Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.

Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.

2) Simplified process for small estates

Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.

Fewer forms and legal steps mean less hassle for families handling modest estates.

3) Substantial compliance for wills

Courts can now approve wills with minor errors if they reflect the person’s true intentions.

This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.

These changes help make probate less stressful and more efficient for you and other families across Canada.

The Probate Process and You: The Role of a Probate Lawyer

(Image: Freepik.com)

Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.

Here’s how they can help.

Navigating the legal process

Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.

Handling paperwork and deadlines

They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.

Resolving disputes

If conflicts arise, probate lawyers resolve them, avoiding legal battles.

Providing you peace of mind

With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.

With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.

Why These Changes Matter

The updates to probate law make a big difference for Canadian families. Here’s why.

Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.

With these changes, probate becomes smoother and more manageable for you and your family.

How to Prepare for the Probate Process

Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.

Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.

These simple steps make the probate process easier for everyone involved.

Wrapping Up: Making Probate Easier in Vancouver

Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.

Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.

Economy

Energy stocks help lift S&P/TSX composite, U.S. stock markets also up

Published

2 days ago

September 17, 2024

Anne Joseph

TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.

The S&P/TSX composite index was up 34.91 points at 23,736.98.

In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.

The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.

The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.

This report by The Canadian Press was first published Sept. 17, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

Source link