It’s been a tough year for US investment banks — not least for Goldman Sachs and Morgan Stanley: Investment banking revenues in the US fell over the last year and a half on the back of an industry-wide slowdown and successive interest rate hikes earlier in the year, reports the Financial Times. But for some investment banks — and for specific reasons — the last period has been even harder.

Morgan Stanley shares fell as much as 7.9%, after the firm reported (pdf) yesterday a net income of USD 2.4 bn in 3Q 2023, a 9% y-o-y decrease, reported Bloomberg. The slump was driven by slower growth in the firm’s wealth management business due to its exposure to the real estate market, but beat analysts' predictions of USD 2.3 bn.

Goldman Sachs profits slid on the back of the sale of its consumer lending ops: GoldmanSachs profits fell 33% y-o-y to USD 2.1 bn in 3Q 2024, largely driven by the partial sale of the bank selling off parts of its consumer lending operations, the company announced (pdf) on Tuesday. Revenues beat expectations, falling 1% to USD 11.8 bn compared to an expected USD 11.2 bn.

ALSO worth knowing about this morning:

  • Savola looking for Almarai buyer: Saudi food-processing firm Savola Group is searching for a suitor for part or all of its 35% stake in Riyadh-based dairy company Almarai, reportedly worth USD 5.4 bn. (Stock exchange filing | Bloomberg)
  • China’s economy beats 3Q forecasts: The world’s second largest economy signaled it’s on the road to recovery in the September-July period with 4.9% y-o-y growth, beating the estimate of 4.4% put out by a Reuters poll. While 3Q’s pace is much slower than the previous quarter’s 6.3%, it could put Beijing on track to meet its 5% growth goal for 2023. (Reuters)

EGX30

22,117

+0.2% (YTD: +51.5%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

19.25% deposit

20.25% lending

Tadawul

10,714

-0.2% (YTD: +2.3%)

ADX

9,484

-0.7% (YTD: -7.1%)

DFM

3,883

-1.4% (YTD: +16.4%)

S&P 500

4,315

-1.3% (YTD: +12.4%)

FTSE 100

7,588

-1.1% (YTD: +1.8%)

Euro Stoxx 50

4,106

-1.1% (YTD: +8.2%)

Brent crude

USD 91.50

+1.8%

Natural gas (Nymex)

USD 3.08

+0.9%

Gold

USD 1,961

+1.3%

BTC

USD 28,263

-0.7% (YTD: +71.3%)

THE CLOSING BELL-

The EGX30 rose 0.2% at yesterday’s close on turnover of EGP 4.1 bn (85.6% above the 90-day average). Local investors were net buyers. The index is up 51.5% YTD.

In the green: Alexandria Mineral Oils Company (+4.2%), E-finance (+3.4%) and Sidpec (+2.7%).

In the red: Egypt Kuwait Holding (-7.7%), Orascom Development Egypt (-5.0%) and Oriental Weavers (-5.0%).

Tags: