"Morgan Stanley": forecasts, analytics, rating, reviews and addresses

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-09 14:06

Morgan Stanley is the world's largest bank. It was founded by Henry Morgan in 1939 and renamed as a commercial bank in 2008. Its main activities are operations with corporate securities, asset management, consumer lending (through the Discovery Card division). Offices and subsidiaries are represented in 42 countries of the world, including Russia.

Backstory

In 1932, the Glass-Steagle Act came into force in the United States, prohibiting banks from investing. As a result, J. P. Morgan & Co. I had to reorganize and create an institution dealing exclusively with investment activities. So, on September 16, 1935, the Morgan Stanley Bank appeared in the USA.

Achievements

Over the years of work, the organization has developed not only investment activities, but also other areas:

• In 1964, MS created a model for analyzing financial markets.
• In 1967, the bank opened its first branch in Paris. In the same yeardeal to buy out Brooks Harvey & Co. Inc., which allowed the financial institution to enter the real estate market.
• From 1971, the bank began working in the field of exchange trading and after 15 years placed its own shares on the primary market.
• In 1997, there was a merger with Dean Witter Discover, which was engaged in the issuance of bank cards and the provision of brokerage services. Subsequently, the credit institution used these payment instruments to provide consumer loans. But in December 2006, Morgan Stanley announced that they were moving the Discovery Card into a separate company.

2008 financial crisis

Morgan Stanley is one of the institutions hit by the 2008 crisis. Investments in hedge funds in 2 weeks brought $128.1 billion in losses. Then the FRS loan in the amount of $107.3 billion helped the bank avoid bankruptcy. In September of the same year, the Japanese bank Mitsubishi UF J Finance bought out a 21% stake in Morgan Stanley.

22.09.2008 it was announced that MS would become a conventional banking corporation regulated by the Fed. In January 2009, the American bank Morgan Stanley, together with Citigroup, began organizing MSSB, a we alth management company for large clients. Most of the shares (51%), as well as an option with the right to buy the remaining stake, belong to MS.

Morgan Stanley: RCB forecast

MS Bank has compiled a list of businesses whose corporate rights have been affected by the UK's exit from the EU. This decision caused a collapse in the stock markets onaround the world. On June 24, investors began to sell their corporate rights in a panic, transferring investments into more secure assets. According to preliminary estimates, global markets have lost $3 trillion.

Analysts have compiled a list of organizations whose shares have fallen in price by almost three times undeservedly. It includes 28 companies, including large manufacturing enterprises from different sectors of the economy, whose activities are practically not affected by the European market.

For example, the corporate rights of Alphabet, which owns Google, decreased in price by 4% ($685.2). According to analysts' forecasts, the market price for shares could rise to $856 per share due to the promotion of the advertising business and the preservation of Google's advantages, which even the results of the WB vote will not affect. Similar forecasts are provided for Amazon.com and Apple, which are down 4.2% and 2.8%, respectively. In the future, the price may rise to $800 and $120 per share.

As for the decline in prices for the corporate rights of the automaker Ferrari, according to analysts, the decline will be offset by high exports outside the Eurozone. The list also includes candy maker Starbucks. But for this company, Bank Morgan Stanley gives a positive outlook. Profit from sales in the British market was only 3% of total revenue. Therefore, the depreciation of the pound will not affect the financial results of the company.

However, lowering prices for corporate rights of global IT giants is a great opportunity for investorspurchase liquid securities at an attractive price. Those wishing to invest in a longer term can acquire the corporate rights of credit institutions. When the situation stabilizes, Morgan Stanley and Bank of America stocks will rise in price.

Corporate rights of US utilities are undesirable to acquire. This investment makes sense only against the backdrop of market volatility. They are already showing a high level of overbought, and there is almost no upside potential.

Business liquidation

In 2015, an American bank agreed to sell Global Oil Merchanting divisions to Castleton CI LLC trading house. The details of the deal were not disclosed. It is only known that the price was in the range of $1-1.5 billion. Participants have yet to obtain approval from US and EU regulators. Previous attempts by the financial institution to sell the asset have failed. Including the deal with Rosneft JSC did not take place.

Morgan Stanley Bank (Moscow)

Morgan Stanley has been operating on the domestic market since 1994 in such areas as investment consulting, underwriting (placement of shares of Lukoil, Gazprom, AFK, Pyaterochka, Rosneft, Evraz and etc.), development, provision of mortgages. In 2006, an American bank even participated in the organization of the City Mortgage Bank, but after a year and a half put the assets up for sale.

Russian OOO Morgan StanleyBank was registered in mid-2005. More than half of the assets (68%) belong to non-residents. The organization is aimed at working with legal entities. The bank does not accept deposits from individuals, but shows high turnover on correspondent accounts, which, in turn, is reflected in high business activity.

Work areas

Morgan Stanley Bank operates through divisions and branches around the world, providing clients with a range of financial services, including:

• Corporate rights management: capitalization (publication of shares, underwriter), advising (on mergers and acquisitions, restructuring, project financing), exchange activities, risk management, investment activities.
• Providing brokerage services and investment advice to private investors.
• Institutional and private asset management, fixed income securities transactions.

Analytics

In early 2016, an American bank sharply worsened its forecast for the ruble exchange rate. According to preliminary data, the dollar exchange rate in the first quarter of 2016 was to be 82 rubles, in the second - 83 rubles, and in the third - 85 rubles. But with the increase in world oil prices, Morgan Stanley's forecast for the ruble in July was changed for the better. According to analysts' estimates for 2016, the country's GDP will decrease by only 0.6%. This is due to the fact that the country's economy in the third quarter showed a zero growth rate, and in the fourth it will begin to grow. Two cuts in the refinancing rate are expected to reach9.5% by the end of this year.

Activities in RF

The only office of Morgan Stanley Bank is located in Moscow. He has licenses of a professional participant in the RZB, permission to conduct banking operations, dealer, brokerage and depositary activities. At the end of 2015, the bank's assets amounted to 20.89 billion rubles, and equity - 4.59 billion.

Major achievements in the work of the bank:

• 1996: placement of Gazprom shares on foreign exchanges ($429 million).
• 2002: the bank participates in the issue of Lukoil shares in the amount of $350 million.

• 2003:

  - financial institution participates in the largest acquisition of TNK, BP and Sidanco ($6.75 billion);

  - financial institution provides the largest loan Gazprom in the amount of $1.75 billion;- the bank is involved in the process of selling Telnor 100% of Kombelga's shares.

• 2005: Morgan Saenley Bank acts as AFK Sistema's chief underwriter in $1.55 billion IPO; Pyatorochka - $598 million; Evraz - $422 million.