Rolling coverage of the latest economic and financial news
- Latest: Morgan Stanley reports $911m losses from Archegos…
- …but still beats profit forecasts as Q1 earnings surged
- FTSE 100 back over 7,000 points
- UK exports to EU sharply down this year
Earlier:
- Introduction: China’s economy grew by record 18.3% year-on-year
- Wall Street hit record close last night
- Full story: China’s economy bounces back from pandemic with record 18.3% growth
Moody’s financial services analyst, Donald Robertson, says the $911m hit from Archegos’s collapse highlights the ‘inherent risks’ in Morgan Stanley’s capital markets activities:
Investment bank, Morgan Stanley, released its first-quarter earnings on Friday morning and Moody’s financial services analyst, Donald Robertson, weighed in on the results. pic.twitter.com/1Qo39u4hxz
Morgan Stanley’s $911m losses on the Archegos collapse are a ‘blemish’ on its record-breaking first quarter, says the FT:
Morgan Stanley has recorded a $911m hit from the blow-up last month of Archegos, Bill Hwang’s family office, which has caused billions of dollars of losses across global investment banks.
The hit was a blemish on the Wall Street bank’s record set of first-quarter results, which were driven by a surge in dealmaking, trading and wealth management income. The results statement recorded a $644m credit loss and $267m of trading losses relating to “a single prime brokerage client”, which a Morgan Stanley spokesperson later confirmed was Archegos.
Morgan Stanley joins the club in reporting chunky #Archegos losses. $911m for them, plus at least $4.7bn at Credit Suisse and $2bn-ish at Nomura = $7.6bn and counting. Probably more out there too https://t.co/6y7gwXMQJq via @financialtimes