Monday, September 24, 2018
Business

Morgan Stanley's earnings jump, helped by trading

NEW YORK — Morgan Stanley's earnings soared 62 percent in the third quarter, thanks to big gains in bond trading.

The New York-based investment bank said Wednesday it earned $1.52 billion after payments to preferred shareholders, up from $939 million in the same period a year earlier.

The results beat analysts' forecasts.

Like its major competitor Goldman Sachs, and other major banks like JPMorgan Chase, Morgan Stanley had a strong quarter on its trading desks, particularly bond trading. Morgan Stanley's investment bank and trading division reported revenue of $4.6 billion compared with $3.5 billion a year earlier, excluding an accounting adjustment.

Bond sales and trading revenue jumped to $1.5 billion, nearly triple the $583 million figure from a year earlier. Stock trading revenue edged up to $1.9 billion from $1.8 billion.

Revenue from Morgan Stanley's wealth management arm rose to $3.9 billion from $3.6 billion. Assets under management increased $13.5 billion in the quarter. Morgan Stanley has been building up its wealth management business, previously known as Morgan Stanley Smith Barney, as a more stable driver of earnings compared with trading, which can ebb and flow with market volatility.

"Overall the results reflect steady progress against our long term strategic goals," said Morgan Stanley CEO James Gorman said in a prepared statement.

Return on common equity, a closely watched metric for investment banks, rose to 8.7 percent, a big improvement from 5.6 percent in the same period a year earlier.

Like Goldman, Morgan set aside much more money to cover its employee's compensation this quarter. Salaries and benefits rose to $4.1 billion from $3.44 billion a year earlier. Both Morgan and Goldman employees are heavily compensated in year-end bonuses tied to performance.

Overall, firmwide revenue rose to $8.91 billion from $7.77 billion.

Comments
Struggling against Red Tide, a Redington Beach liquor store is too small to qualify for local aid

Struggling against Red Tide, a Redington Beach liquor store is too small to qualify for local aid

REDINGTON BEACH ó Mark Wilson hasnít had a customer for hours.As the only liquor store on his stretch of Pinellas County beaches, Wilson is used to a steady stream of tourists from the nearby condos and hotels. Other beachfront businesses affected by...
Published: 09/25/18
Weight Watchers slims its name down to WW

Weight Watchers slims its name down to WW

Weight Watchers is its dropping its brand name in exchange for something slimmer: "WW." The company says the new logo - coupled with the tagline "Wellness that Works" -- puts an emphasis on overall health and well being, with less...
Published: 09/24/18
Study: Some Tampa Bay neighborhoods among quickest selling in the state

Study: Some Tampa Bay neighborhoods among quickest selling in the state

Tampa Bay sounds like a home sellerís dream market ó even compared to other locales statewide. According to a recent study by SmartAsset, four of the top 10 easiest places to sell a home in Florida are in the bay area. Northern Hillsborough County ac...
Published: 09/24/18
Lower demand brings slight dip in gas prices across state, Tampa Bay

Lower demand brings slight dip in gas prices across state, Tampa Bay

Just in time for fall, pump prices are finally declining. Gas prices in Florida averaged $2.72 per gallon Monday, down from $2.74 per gallon a week ago, according to AAA, The Auto Club Group. Tampa Bay prices were even lower at $2.63 per gallon, down...
Published: 09/24/18
SiriusXM to buy Pandora for $3.5 Billion in bid to expand reach

SiriusXM to buy Pandora for $3.5 Billion in bid to expand reach

Satellite radio provider Sirius XM said Monday that it would acquire music streaming service Pandora Media for $3.5 billion in a bid to corral listeners who do not want to pay for premium channels.Pandora rose to success by providing tailored radio s...
Published: 09/24/18
Jeff Vinik invests in gaming headset maker boosted by Fortniteís popularity

Jeff Vinik invests in gaming headset maker boosted by Fortniteís popularity

TAMPA ó As a mutual fund wonder-boy, hedge fund manager and real estate investor, Jeff Vinik has long displayed a sense for knowing when to put money into the next big thing, and his latest bet on e-sports may be no different.Vink recently bought nea...
Published: 09/24/18
Hernando Business Digest for Sept. 28

Hernando Business Digest for Sept. 28

BrieflyEMPLOYERS NEEDED FOR JOB FAIR: Pasco-Hernando State College, CareerSource Pasco Hernando, the Greater Hernando County Chamber of Commerce and Hernando County Office of Economic Development are seeking employers to participate in the Open for A...
Published: 09/24/18
Solar farm land price is $6.8 million, including $4.4 million to state Sen. Wilton Simpson

Solar farm land price is $6.8 million, including $4.4 million to state Sen. Wilton Simpson

Tampa Electric Co. has said its Mountain View Solar project near Dade City represented a $75 million investment in alternative energy. The investing began in earnest last week when the utility paid more than $6.8 million for 382 acres in the rural co...
Published: 09/24/18
Dear Penny: I spent everything ending a bad relationship. Can I treat myself?

Dear Penny: I spent everything ending a bad relationship. Can I treat myself?

Dear Penny, I just made one of the hardest decisions of my life and ended the relationship I had been in since my early 20s. After a decade in a bad relationship, Iím super excited to be single again. The problem is my wardrobe. Over the past few yea...
Published: 09/24/18
Nearly half of cellphone calls will be scams by 2019, report says

Nearly half of cellphone calls will be scams by 2019, report says

Nearly half of all cellphone calls next year will come from scammers, according to First Orion, a company that provides phone carriers and their customers caller ID and call blocking technology.The Arkansas-based firm projects an explosion of incomin...
Published: 09/23/18