The Dow Jones suffered another nauseating crash on Monday after China retaliated against President Trump’s tariff threats by escalating the trade war – and perhaps abandoning the negotiations altogether. Dow Careens 430 Points Lower All of Wall Street’s major indices shot lower at the opening bell. The Dow Jones Industrial Average crashed 431.76 points or 1.63% to 26,053.25. Just one of the...
The Dow eagerly sped toward a fourth consecutive gain on Friday, just one day after the stock market bellwether zoomed past its previous record to close above 27,000 for the first time ever. But as Wall Street continues to bid up valuations more than a decade into this bull run, one Morgan Stanley executive warns that the stock market could be on the verge of a 10% crash – dovish Fed or not...
By CCN Markets: Morgan Stanley economist Ellen Zentner told clients today that June may be a rough month in the economy, going so far as to suggest “June Gloom” is looming. This comes on top of a similar warning two weeks ago from the very same Wall Street firm. The latest research note reportedly states: “The decline shows a sharp deterioration in sentiment this month that was...
By CCN: The U.S. stock market is sounding a catastrophic recession warning. The evidence is flashing in bright colors, and the alarms are absolutely deafening. But no one on Wall Street is listening. Twice this year, the 3-month (short-term) Treasury yield was greater than the 10-year (long-term) Treasury yield, in what’s known as an inverted yield curve. This indicator is a strongly...
By CCN: An analyst at vaunted investment bank Morgan Stanley made himself look like the village idiot Monday, saying America’s economic outlook is crumbling toward recession even as the economy booms. The U.S. Economy Is on ‘Recession Watch’ Chief U.S. Equity Strategist Michael Wilson spit out several data points while warning in a report that the U.S. is now on “recession watch...
By CCN: Tesla stock is all set to drop below $200, but Morgan Stanley believes that shares of the electric vehicle company could be worth just $10 in the worst case scenario. Yes, that’s what Morgan Stanley analyst Adam Jonas believes in light of the many problems Tesla has been facing of late. Morgan Stanley’s drops another bomb on Tesla stock Tesla stock has lost nearly 40% of its value in 2019...
Morgan Stanley analysts must have gotten up on the wrong side of the bed. They have issued a doom-and-gloom report about corporate earnings, choosing to focus on the glass half empty while other forecasters manage to see it half full. The Wall Street firm is predicting an “earnings recession,” which translates into at least two straight quarters of hell for stocks and the Dow Jones...
Morgan Stanley is shelling out $0.9 billion to acquire stock-plan firm Solium Capital. The acquisition of the firm that mainly specializes in offering Software-as-a-Service for managing employee share plans, ‘financial reporting and compliance’ is expected to bolster Morgan Stanley’s wealth management business. This is the biggest acquisition that the bank has made in the last decade. Morgan...
A top equities analyst, drawing on his knowledge of the company’s suppliers, predicts “limited downside risks” for Apple’s share price. He follows Morgan Stanley’s sentiment last week that the worst could now be over for the tech giant’s stock. Ming-Chi Kuo Says Q2 iPhone Results Will Beat Expectations Ming-Chi Kuo is an analyst with TF International Securities. According to CNBC, he says...
By CCN.com: Patrick Springer spent 20 years working for Morgan Stanley as an investment specialist. Specifically, his job was to help institutional investors make informed decisions in global equity markets. Now, despite the bitcoin market meltdown, he’s flung himself headlong into crypto becoming an advisor for Polybird Exchange. Why? Because “it’s important for people to challenge themselves at...
By CCN.com: Morgan Stanley CEO James Gorman has expressed fears that the partial U.S. government shutdown could hurt the economy greatly if it drags on. Gorman was speaking in Davos, Switzerland at the World Economic Forum as the shutdown enters its 34th day. In an interview with the CNBC (video below), Gorman empathized with the 800,000 federal government workers who have missed several...
The stock price of Tesla has dropped by 7.14 percent in pre-market following the release of CEO Elon Musk’s letter. The struggle of the car marker demonstrates the lack of fundamentals in the U.S. stock market which may lead to the decline of the Dow Jones. Over the past week, several analysts including Morgan Stanley strategist Mike Wilson and Gluskin Sheff chief economist David Rosenberg said...
Morgan Stanley’s fixed-income division posted its worst quarterly results in three years, sending the stock plummeting. According to Bloomberg, the Wall Street firm recorded a drop of 30% in bond-trading revenue from $808 million a year ago to $564 million. This was well below the $823 million that analysts had been expecting. Morgan Stanley blamed this on “unfavorable marketing making...
Earlier this week, Morgan Stanley strategist Mike Wilson said on CNBC Fast Money that the stock market is still vulnerable to a short-term drop. Although the stock market has shown extreme levels of bearish sentiment and an intense sell-off throughout December 2018 that may be a signal for the establishment of a bottom, Wilson said that fundamentals are still missing from the market. When Will...
According to Daniel H. Gallancy, the CEO of SolidX Partners, it was unrealistic to anticipate Goldman Sachs to run a Bitcoin business before the year’s end. Speaking to Bloomberg, Gallancy, who has been working with a major investment firm in VanEck to introduce a Bitcoin exchange-traded fund (ETF) in U.S. markets, said that investors prematurely expected Goldman Sachs, Morgan Stanley, and other...
There is a rapidly growing interest in bitcoin and other cryptocurrencies among institutional investors while there seems to be lethargy in the number of retail buyers operating within the space. As such, bitcoin and altcoins now constitute a new institutional investment class since 2017, according to new research from major US bank Morgan Stanley. In the report titled “Bitcoin Decrypted: A Brief...
According to Rebecca Harding, a financial journalist and the acclaimed author of “The Weaponization of Trade: the Great Unbalancing of policy and economics,” major financial institutions are waiting to invest in the crypto market. Harding, who operates as the CEO of Coriolis Technologies, a trade technology company that provides services to major banks and corporations in the traditional finance...
Note: This is part 1 in a multi-part series exploring the dangers of rehypothecation and commingling in bitcoin and other cryptocurrency assets that could occur once Wall Street begins offering crypto products. Part 1 is an interview with Caitlin Long and subsequent parts will ask the question, “How did we get to a place that where laws look like this?” Stay tuned for part 2. Caitlin...
Williams %R, a technical analysis oscillator that demonstrates oversold or overbought conditions of an asset, is demonstrating highly oversold conditions for Bitcoin. As Olga Kharif at Bloomberg reported, the Williams Percent Range (WPR) of Bitcoin is hovering at around -83 percent. In WPR, -80 to -100 percent is considered oversold and -0 to -20 percent is oversold. Analysts state that the...
Another of the world’s largest investment banks is quietly building a product that will allow its clients to trade bitcoin, at least indirectly. Citing a person familiar with the matter, Bloomberg reports that Morgan Stanley, the sixth-largest bank in the U.S. by assets, is creating a proprietary derivatives product that will give traders “synthetic exposure” to the price of bitcoin. From the...
Morgan Stanley, one of the world’s largest investment banks, has just poached Credit Suisse’s resident “bitcoin expert” to head the former’s digital assets unit. As first reported by eFinancialCareers, Morgan Stanley, which ranks sixth among U.S. banks with $858 billion in total assets, hired Andrew Peel last month to serve as its new “head of digital asset markets.” He will work out of the...
Central banks will one day use government-backed cryptocurrencies to rapidly address the risks of future financial crises, researchers at Morgan Stanley predicted in a new report. The report, which examines how central banks could use state-sponsored cryptocurrencies to more effectively govern their monetary supplies, theorizes that this technology would allow central banks take negative interest...
Tezos co-founder Arthur Breitman has been sanctioned by a top Wall Street regulator in connection with allegations that he violated regulations for securities professionals while working at Morgan Stanley. According to Reuters, the Financial Industry Regulatory Authority (FINRA) — a self-regulatory organization — on April 18 fined Breitman $20,000 and has prohibited him from...
Morgan Stanley compared an accelerated timeline for bitcoin’s performance to the dotcom era. Sheena Shah, a Morgan Stanley market strategist, in a research report cited in CNBC, painted a potentially grim picture for the future of bitcoin, finding similarities in the price performance and volume levels with the tech-laden Nasdaq at the turn of the century. At one of its lowest times, the...
Morgan Stanley, the world’s fourth-largest investment bank, has been quietly clearing bitcoin futures contracts for clients amid a wider remit to engage cryptocurrencies even further. Morgan Stanley has become the second major Wall Street mainstay to offer bitcoin futures contracts for clients, after Goldman Sachs began offering the service last month. Speaking to Bloomberg, Morgan Stanley’s...
Earlier this week, Morgan Stanley, the third largest investment bank in the global finance market with a $95 billion market cap behind Goldman Sachs and JPMorgan Chase, stated in a research paper that the future value of bitcoin could drop to zero, given its lack of “intrinsic value” and base price. A few days ago, Morgan Stanley analyst James Faucette told the bank’s clients and investors that...
Morgan Stanley chairman and CEO James Gorman has claimed that bitcoin “doesn’t quite deserve the attention it is getting”, at a time when the cryptocurrency is nearing its all-time highs. In an interview with CNBC this morning, Gorman opined that bitcoin “is punching above its weight” while insisting that speculation is the cause behind the cryptocurrency’s gains this year. When asked if bitcoin...
One of Wall Street’s most influential bankers does not believe bitcoin should be illegal while adding that the cryptocurrency is “more than just a fad.” Morgan Stanley CEO James Gorman was speaking at the ‘Wall Street Journal Future of Finance’ event when an audience member sought his opinions on cryptocurrencies. It’s a fascinating development, that’s certainly something more than just a fad...
The stock market has wavered over the past week amid concerns that war will break out between the United States and North Korea. At the same time, the bitcoin price and total cryptocurrency market cap soared to record levels, leading some analysts to believe that investors are turning to cryptocurrency as an economic safe haven. Historically, gold, silver, and other precious metals have served...
Francisco Blanch, Bank of America’s head of global commodities and derivatives research, warned that cryptocurrencies have major inherent risks and urged investors against optimism about bitcoin’s rising value, according to Bloomberg. He said cryptocurrencies remain prone to fraud, theft, new protocol adoption and lack of acceptance. He also pointed out that it is not legal tender in many parts...
The value of bitcoin may be up by 250 percent so far in 2017, but according to Morgan Stanley more people should be spending it rather than hoarding it as the number of online merchants accepting it falls. According to a research note released by a group of analysts at the leading global financial services firm, led by James Faucette, they wrote: Bitcoin acceptance is virtually zero and shrinking...
Despite all the investment in blockchain technology, Morgan Stanley claims the technology remains in a “proof of concept” stage, according to Barrons. The financial services firm believes its use in regular financial settlements could be years away. Institutions like BNY Mellon and UBS have an early advantage by testing the technology. As for the surge in bitcoin’s value, Morgan Stanley is...
In a 43-page whitepaper titled “Blockchain: Unchained?” , Morgan Stanley stated that both investors and regulators view cryptocurrencies as assets than actual currencies. Morgan Stanley released the whitepaper on Tuesday, however, since the report was not distributed publicly, CCN was unable to get it, for now. We’re covering takeaways from it, nonetheless, including Morgan...
Investment bank Morgan Stanley sees bitcoin to be dependent on governments’ acceptance to really take off, at a time when the cryptocurrency tripled its value since the turn of the year. In a report titled 43-page whitepaper titled ‘Blockchain: Unchained?”, Morgan Stanley isn’t entirely clear on determining just why bitcoin has been soaring lately. The whitepaper, released Tuesday, was...
Is Morgan Stanley about to part ways with its banking brethren and R3?
A recent study by Gartner has shown that blockchain has reached the ‘peak of inflated expectations’ phase of the hype cycle as the chief architect of ACI Worldwide states that the distributed ledger technology is not yet able to handle financial transactions at scale. The study by Gartner ‘Hype Cycle for Emerging Technologies, 2016,’ found that blockchain won’t reach mainstream adoption for...
A senate sub-committee investigation that has been ongoing for the last two years has found that Wall Street banks may have become heavily involved with physical commodities markets, increasing risks to financial stability, industry, consumers and markets. The sub-committee that was chaired by Senator Carl Levin, from Michigan noted that the massive involvement by Wall Street in physical...