Morgan Stanley MS Income 1Q 2022

A screen displays trading information for Morgan Stanley on the floor of the New York Stock Exchange (NYSE), January 19, 2022.

Brendon McDermide | Reuters

Morgan Stanley is ready to report first-quarter earnings before the opening hour on Thursday. Here’s what Wall Street expects:

  • Earnings: 68 1.68 per share, 23% lower than a year ago, according to Refinitiv
  • Revenue: $ 14.3 billion, 8.9% less than a year ago
  • Asset Management: 6.18 billion, according to StreetAccount
  • Trading: Equities 2.72 billion, fixed income $ 2.22 billion
  • Investment Banking: 1.74 billion

How well did Morgan Stanley’s traders and bankers navigate a difficult quarter? This is the question for New York-based banks, which receive about half of their revenue from trading and investment banking operations.

Wall Street banks have plunged into a sharp slump in consolidation-related advisory fees and a sharp fall in IPO activity in the first quarter, which sparked strong results last year. This change was triggered by the collapse of the stock market and Russia’s aggression in Ukraine, the forces that made the market less hospitable for deals and public lists.

The source of the remaining half of Morgan Stanley’s revenue, the bank’s huge asset management and investment management departments could better hold on, but analysts still expect the stock price to decline in the lower quarter.

– Contributed to CNBC’s Hugh Son Reporting.

Lamborghini customers have been waiting more than 12 months for a car, the CEO said

The wait time for a new Lamborghini SUV or super-car is now more than 12 months, as demand from wealthy car lovers is showing signs of declining, the automaker’s chief executive told CNBC on Wednesday.

Despite volatile stock markets and growing economic uncertainty, Lamborghini CEO Stefan Winkelman said Lamborghini’s demand was “as high as ever”.

“It’s incredible,” Winkelman said. “It’s hard to predict what’s going to happen and for the rest of 2022. But talking to customers, talking to all our leaders, we don’t see any slowdown in orders.”

The result is a waiting list that is now over 12 months. The pre-epidemic, usually waiting list for Lamborghini, was six to nine months. Asked when the company’s waiting list would return to “normal”, Winkelman said demand for high-end cars could fundamentally reset to a higher level in the last two years due to the sheer amount of wealth created.

“What we’re seeing is that there are more people around the world buying cars like ours,” he said. “After the epidemic, people wanted to reward themselves. And we have markets that were flooded with money. I think we’re on a very high plateau. I don’t know if it’s new normal.”

Also, Lamborghini has become a favorite among young rich people who have built their new fortunes from crypto, stocks, technology companies and legacy. Winkelman says 70% of Lambo customers will be under 40 in 2025.

“We’ve definitely seen a shift toward a much younger customer,” he said.

Stephen Winkelman, CEO of Lamborghini

Courtesy: Lamborghini

Lamborghini reported record profits and production last year, driven primarily by its SUV, the Urus. Sales rose 19% to $ 2.1 billion and delivered 8,405 vehicles, up 13% from 2020, including 5,021 Urus models, 2,586 Huracans and 798 Aventadors.

Winkelman said production has not slowed down this year due to supply-chain issues, as the company receives high priority for chips and other parts from parent company Volkswagen. He said production is on the rise this year compared to last year.

“We’ve improved our production, so we believe we’ve improved our output,” he said. “We’ll see. But it’s a sure chance.”

Due to the long wait times, some dealerships are charging five- and six-digit markups from customers that cars will be available sooner, via another customer cancellation or demo model. One buyer told CNBC he paid $ 100,000 to get an urus in a month without waiting.

Winkelman said the company tries its best to practice police pricing and prevent “phantom orders” from dealers. But with 140% of the new sticker price previously owned by many Lambos, the lure of profit remains for now available car dealers.

“We don’t share this view of people paying on stickers,” he said. “When we talk to our partners, our dealers, we are always very clear about our position.”

The war in Ukraine is the most dangerous since the Cuban Missile Crisis

Israeli writer, historian and professor Yuval Noah Harari has repeatedly spoken out against President Vladimir Putin’s war in Ukraine, adding that it has had the unintended consequences of building greater unity between Europe and the United States.

Christoph Van Acme | AFP | Getty Images

In the seven weeks since Russia’s war with Ukraine, Israeli historian and bestselling author Yuval Noah Harari says tensions are still rising in society over “the most dangerous moment in world history since the Cuban Missile Crisis.”

The author of “Sapiens” says that the growing risk that Russia could resort to nuclear weapons or other forms of chemical or biological warfare to advance its attack poses an existential threat to humanity.

Harari told CNBC’s Geoff Katmore on Wednesday that “since the Cuban Missile Crisis, we have probably been at the most dangerous moment in the history of the world when suddenly there is a possibility of a nuclear war.”

The Cuban Missile Crisis of 1962 refers to the period of direct confrontation between the United States and the then Soviet Union, which is often regarded as the closest to the world in nuclear war.

Anyone who has these fantasies about the procession in Moscow, forget them as soon as possible.

Yuval Noah Harari

Historian, lecturer and writer

Although acknowledging the current threat of nuclear war, Harari acknowledged that everyone – the government and the individual – should be “very concerned”.

“This is a possibility, a real possibility that we need to consider. And this is terrible news for the entire human race,” he said.

Nevertheless, Harari warned that Western allies should not try to take such a step by trying to change the regime in Russia. Instead, they should focus on further empowering Ukraine so that Russian forces can be defeated on the ground and peace can be restored.

“Anyone who has these ideas about marching in Moscow, forget them as soon as possible,” he said, adding that such moves would further provoke the Kremlin.

“The goal of the war should be to protect Ukraine’s independence, not to change Moscow. It depends on the Russian people,” he added.

A historic turning point

Harari, a lecturer in the history department at the Hebrew University of Jerusalem, said the final outcome of the war could mark a turning point in how governments handle future threats.

If Russian President Vladimir Putin wins the war, he says, more countries will be inclined to increase their military spending at the expense of other public services – or will be forced to do so.

It is not clear how much Russia has invested in its defense spending, although Harari estimates it is about 20%. In the meantime, we have seen the government’s recent move or commitment to increase their defense spending. Just days after the conflict, Germany announced that it would significantly increase its defense spending by more than 2% of its economic output.

If we are not careful, we will return to the jungle of war and violence where countries are forced to spend much more on tanks and missiles.

Yuval Noah Harari

Historian, lecturer and writer

“If the global defense budget is 20% instead of 6%, it will come at the expense of our healthcare, our welfare and it will also come at the expense of fighting other threats like climate change,” he said.

“This would be a terrible catastrophe for all of humanity,” he said, adding that a peaceful solution would be in the interests not only of Ukraine and its immediate neighbors, but also of the wider society.

“It’s really about peace and defending the kind of world we’re used to,” he said. “We are so used to it that we accept it. But if we are not careful, we will return to the jungle of war and violence where countries are forced to spend more on tanks and missiles and less on teachers. Nurses and welfare systems.”

If Western allies succeed in bringing a peaceful end to the conflict, Harari sees some reason for cautious optimism.

“If Putin loses and is seen to lose, it will actually defend the previous order. When there is a norm and someone breaks the rules and gets punished for it, it actually strengthens the norm,” he said.

Kramer names 7 bit-down semiconductor stocks that look ‘tempting’

CNBC’s Jim Kramer on Wednesday gave investors a list of seven semiconductor chip stocks that he believes could be attractive purchases.

“I think there’s an idea that chipmakers will get hurt when we go into one [Federal Reserve]-Directed recession, “said the host,” Money Money, “referring to the Fed’s upcoming interest rate hike.” At this level, I think a bunch of them are starting to look quite tempting, “he added.

Here are his picks for the best semiconductor stocks that have a reasonable valuation and earnings increase:

  1. Micron
  2. Western Digital
  3. Small instruments of the future
  4. Skyworks Solutions
  5. Complaints
  6. Lam research
  7. Applied materials

“Reasonable price growth is plentiful in this volatile market, and includes more controversial semiconductor spaces. Just be aware that these chip stocks may be reasonably priced in the near future because Wall Street just didn’t get any love – until today – for this whole Darn Group, “It simply came to our notice then.

Kramer’s latest list of investable growth stocks comes after he highlighted four financial stocks and six travel and leisure stock buyers should be on their radar earlier this week. In selecting the stock of his choice in each sector, Kramer uses the same list of stocks compiled by the company in the S&P 500 that meet its criteria for reasonable valuation and earnings growth.

Disclosure: Owner of shares of Kramers Charitable Trust AMD.

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The chart suggests that the Nasdaq 100 could reach a ‘significant low’ this week, Jim said

CNBC’s Jim Kramer said Wednesday that the Nasdaq 100 could reach lower levels this week and give investors a chance to offload some bad performing stocks, leaning on the analysis of technology analyst Caroline Boroden.

“The charts explained by Caroline Boroden suggest that the Nasdaq 100 could be a significant downtrend this week – and perhaps it has already happened.

“However, you don’t want to be too attached to the move because Boroden says the underlying technical picture remains ugly. Still, you can get a good chance to unload some technology here to raise money to buy other things. Time is moving forward, “he added.

The Dow Jones Industrial Average rose 1.01% on Wednesday, while the S&P 500 rose 1.12%. Nasdaq Composite rose 2.03%.

Boroden uses Fibonacci techniques to predict the market. A cluster in the Fibonacci timing cycle coming at about the same time means a stock or index could move in the opposite direction, Kramer explained, adding that he knew this was how the market would go down in mid-March.

Nasdaq 100 “From that cluster of Fibonacci timing cycles he mentioned in March almost straightened out,” Dr. Kramer. He added that Boroden is keeping an eye on both time and price parameters to find out where the next market is low where investors can trade.

“On the timing front, he says he has two periods where the Nasdaq 100 is likely to be a significant low. The first period is yesterday and today,” Kramer said. “In other words, today’s rebound may have more power than you expected.”

That said, according to Boroden, although these Fibonacci timing cycles are certainly helpful … about 60% of the time when we see these reverse signals we find a real reversal of the trend, “he added.

In terms of pricing, Boroden said there is a possibility that the index will reach its lowest point since March 14, according to Kramer. Still, he believes the Nasdaq 100 is in rough shape because its price is below the 200-day simple moving average and the short-term 50-day moving average, he added.

Boroden also sees a five-day and 13-day moving average, Kramer said.

“When the five-day goes above the 13-day … that’s his favorite buy trigger. When the five-day goes below the 13-day, it’s his favorite selling trigger. Not in the region, “he said.

This means that even if the Nasdaq-100 reaches a significant low, investors should still be prepared for the index another “negative failure,” Kramer said.

“He’s seen it, we’re definitely not out of the woods yet, and he’s definitely not making a clear call,” he added.

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Find sustainable stocks for these ‘extremely confusing moments’ weather

CNBC’s Jim Kramer on Wednesday advised investors to find stocks that could perform well in any market environment.

“It’s a very confusing moment, but I want you to look for stocks that can work in the long run, regardless of whether we’re in the best of times, the worst of times, or both,” said the host.

Kramer names several stocks that investors should consider. Procter & Gamble has a good “long-term outlook” when Disney stocks may be good for investors on the trip, he said.

He added that investors looking to invest in banks that would benefit from the Federal Reserve’s interest rate hike should look to the Bank of America, while those concerned about escalating Russia-Ukraine war should look to defense contractor Raytheon Technologies.

To cite the current “best, worst times” environment of the market, JPMorgan CEO Jamie Dimon commented on Kramer Company’s first-quarter earnings call. Dimon said he was “seeing significant geopolitical and economic challenges ahead due to high inflation, supply chain problems and the war in Ukraine.”

Meanwhile, Delta Air Lines CEO Ed Bastian told CNBC’s “Squawk Box” on Wednesday that the company had “the highest sales of any month in bookings” in the company’s history in March, Kramer said.

As confusing as the company’s reverse messaging can be for investors, Kramer said the differences in companies’ performance can be attributed to the type of business they run.

“Bastian deals with consumers. Dimon deals with consumers, but also with enterprises. Consumers may be willing to spend like crazy even in the face of a Fed-directed recession, because they are eager to get out again.”

Disclosure: Owner of shares of Cramers Charitable Trust Disney and Procter & Gamble.

California has proposed banning new gas-fueled cars by 2035

Morning traffic runs along a freeway on September 19, 2019, in Los Angeles, California.

Mike Blake | Reuters

California clean-air regulators unveiled a plan this week that would boost sales of electric and zero-emission vehicles and eventually shut down new gasoline-fueled vehicles by 2035, in a bid to combat the state’s greenhouse gas pollution.

The proposal, if enacted by the California Air Resources Board, would require 35% of new passenger car sales by 2026 to be battery-powered or hydrogen-powered, and 100% of sales to be net-zero emissions in less than a decade. It added that zero-emission sales must increase by 68% by 2030.

Transforming the transportation sector into clean energy is a key component of California’s plan to combat climate change, as cars, trucks and other vehicles represent about 40% of the state’s pollution.

Electric vehicle sales in the state grew 12.4% of total sales last year, a jump from 7.8% in the previous year.

The board is expected to vote on the proposal in August. At least 15 states, including New Jersey, New York, and Pennsylvania, have adopted car standards under the previous Clean-Car rule in California.

The plan is to govt. Gavin followed Newsom’s executive order to sell cars with internal combustion engines within 15 years to produce all new car sales zero emissions by 2035.

This rule does not prohibit people from owning or selling gas vehicles in the used market.

“Californians are still experiencing the harmful effects of smog emissions and the effects of climate change, which is expected to worsen in the coming decades. It is important and necessary to adopt the proposed ACC II regulations,” the state plan said.

Newsom, signing the executive order, said the plan could reduce state emissions from cars by more than 35% and that zero-emissions vehicles would “almost certainly” be cheaper than gas-powered vehicles when regulations began.

“Based on 30 years of work to electrify light-duty vehicles in California, the market is clearly ready for a massive transformation,” the plan says.

California, which is battling increasing wildfires and droughts as temperatures rise, aims to become 100% renewable energy by 2045.

Some environmental groups have called on the board to set more stringent targets for advancing the transition to electric vehicles, arguing that the state should impose a rule to achieve 100% zero-emission vehicle sales by 2030, five years before the current proposal.

Scott Hochberg, attorney for the Center for Transportation at the Institute for Climate Law on Biodiversity, said in a statement: “Time is running out in front of the Earth because we know it disappears in the rear view mirror.

“To protect humans and the planet, California needs to rid our roads of tailpipe pollution as soon as possible,” Hochberg said.

Runway Rent (RENT) Q4 2021 Loss

Rent the Runway sees more than 2 million weddings planned for this year and all the parties that come with them as a huge blessing for its business.

Also, according to co-founder and CEO Jennifer Hyman, Rent the Runway is cutting back on the benefits of consumers looking for price and stability in times of inflation – Americans branding clothing as seeing higher gas prices, larger gross bills and even more expensive price tags.

To be sure, Rent the Runway is planning a price increase for its membership plan, which will take effect in early May, to combat its own higher costs.

“We’re entering one of the strongest rental environments we’ve ever seen,” Hyman said in a Zoom interview. “The inflationary environment is essentially a competitive advantage for runway rentals.”

On Wednesday, the fashion rental platform reported fiscal fourth-quarter revenue ahead of narrower-than-expected losses from analysts’ estimates, as the company won because it wanted its wardrobes to fit its hybrid work schedule and refresh their clothing to prepare for spring. Summer social events.

Shares rose nearly 6% in after-hours trading.

Rent the runway is closely related to how much customers are spending on the experience rather than the business thing, Hyman said. So with more people traveling, Uber roaming around town and booking bookings at restaurants, there seems to be an increase in Rent the Runway users, he said.

Runway members pay a monthly fee of $ 94 to $ 235 for four to 16 different items of designer clothing or accessories. Users can use additional items in their plan for extra charge. They can also rent one time for a period of four to eight days. And Rent the Runway gives customers the option to purchase items on its website at a full sticker price.

The retailer reported a net loss of $ 39.3 million, or 62 cents per share, for the three-month period ended January 31, compared to a loss of $ 38.8 million or 70 cents per share a year earlier. This is narrower than analysts’ estimates for a loss of 70 cents per share, according to a reflective poll.

Revenue rose nearly 91% to $ 64.1 million from $ 33.5 million a year earlier, topping the estimate of $ 63.2 million.

The company’s fourth-quarter gross margin of 36.7% also exceeded expectations of 27.3%, according to a separate survey by StreetAccount.

Runway Rental in the fourth quarter with 115,240 active customers, up 110% from a year earlier. It counted a total of 159,544 subscribers, of whom their accounts were on hold.

“Fifty percent of our traffic comes because of runway rentals [those people] There is an upcoming event, or they have an upcoming occasion, “Hyman said. He added the company’s vision at the moment is to come out of the epidemic, to serve as a” very unique window “to gain new customers and hold their business longer.

Rent the Runway, for example, has launched its own wedding concierge service to cater to people looking for a wedding dress. In its recent marketing, the company has positioned itself as “a value-based way to dress for multiple events,” Hyman says.

For the first quarter of FY 2022, runway fares are expected to sell between $ 63.5 million and $ 64.5 million, with a total of 130,000 to 132,000 active customers. According to Refinitive, analysts were looking for revenue of $ 64.3 million.

For the year, the company’s revenue will range from $ 295 million to $ 305 million, compared to $ 203.3 million in FY2021 sales. Analysts forecast revenue of 305 million.

Find the full financial press release from Runway Rentals here.

This story is evolving. Please look back for updates.

JPMorgan CEO Jamie Damon sees a ‘storm cloud’ for the US economy

Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co., is listening during a Business Roundtable CEO Innovation Summit discussion on December 6, 2018, in Washington, DC.

Andrew Harar | Bloomberg | Getty Images

According to Jamie Dimon, CEO of JPMorgan Chase, the Federal Reserve is accidentally increasing the risk of the US economy heading into recession as it fights inflation.

The CEO of the largest US bank in terms of assets said on Wednesday that economic growth would continue at least until the second and third quarters of this year, with consumers and businesses flush with cash and repay loans on time.

“After that, it’s hard to predict. You’ve got two other very big countervailing factors that you’re all too aware of,” Daemon told analysts, referring to inflation and quantitative tightening, or reversing the Fed’s bond-buying policy. “You’ve never seen it before. I’m just pointing out that the storm clouds on the horizon that may be invisible may not be.”

Daemon’s comments show how quickly big events can change the economic landscape. A year ago, he said the United States was enjoying an economic “Goldilocks moment” of high growth that could last until 2023.

The risks were seen on Wednesday, when JPMorgan lost 42% of its profit compared to a year ago due to the war in Ukraine, bad debts and increased costs for market volatility.

In particular, the bank charged 902 million to create a debt-loss reserve, a complete reversal from a year earlier, when it released $ 5.2 billion in reserves.

According to CFO Jeremy Bernam, the “Fed-induced” recession has taken its toll – and JPMorgan’s move is unusual because executives say all income-level borrowers are still paying their bills. In the past, the Fed has raised rates as the US economy shrinks. Last month, the Fed raised its benchmark rate and said it could increase each of the remaining six meetings this year.

Despite rising interest rates, the bank’s stocks have been hit this year, which continues to improve their loan margins. This is because some parts of the yield curve this year have flattened and even reversed, indicating a high observation of a possible recession in the future.

JPMorgan executives made it clear that they were not predicting a recession; But that high inflation, the impact of the Ukraine war and the Covid, as well as the Fed’s actions have made it even more promising than before. To judge how much reserve should be set aside, managers need to conduct surveys in a variety of hypothetical, probability-weighted situations.

“These are very strong forces and these things are going to clash at some point, probably sometime next year,” Daemon said during a media conference call. “And no one really knows what’s going to happen, so I’m not predicting a recession. But you know, is it possible? Absolutely.”

Damon told reporters that if a recession occurs, the bank will have to “do more” to reserve debt losses. Shares of JPMorgan fell 3.4% on Wednesday, hitting a 52-week low at one point.

“The war has unintended consequences, as you’ve already seen in the oil market. Oil markets are uncertain,” Dimon said. “I hope all of these things disappear and go away; we’ve had a soft landing and the war is over, okay. I won’t bet on all of this.”

Starbucks is reportedly weighing better benefits for non-union workers

Starbucks Chairman and CEO Howard Schultz is speaking at the annual meeting of shareholders in Seattle, Washington on March 22, 2017.

Jason Redmond | AFP | Getty Images

The Starbucks campaign could expand new benefits for non-union workers exclusively to prevent barristers from uniting, the Wall Street Journal reported Wednesday.

The company’s CEO, Howard Schultz, told U.S. store leaders this week that he was reviewing coffee chain benefit programs for his employees, the journal reported. However, employees who work in company-owned stores who have voted to unionize will be ineligible for those improved benefits, according to the Schultz report.

Schultz, citing federal labor law and the company’s legal advice, said it would be illegal to unilaterally increase benefits with a unified position in the equation, the journal reported.

Under federal labor law, employers are required to negotiate with the union representing their workers when it comes to changes in their employment compensation, benefits or other terms. However, companies can still ask union workers if they want additional benefits.

For example, US airlines are highly unionized and they have offered union workers bonuses or extra pay for staffing deficits, incentives that fall outside the regular contract negotiations.

Starbucks did not immediately respond to a request for comment from CNBC.

In late March, before Schultz’s return to the company, Starbucks Workers United said they expected the company to announce new benefits to prevent Union Push from spreading across Starbucks cafes. A Starbucks representative did not respond to a request for comment at the time, but Schultz apparently confirmed the strategy when he announced last week that he would suspend stock buybacks to invest in the company’s employees and stores.

About 200 of the Starbucks company-owned positions have filed for unionization in recent months. To date, 18 store workers have voted in favor of uniting under United, with only one cafe voting against so far.

In a bid to speed up the union, Workers United has accused the organization of engaging in union-related activities, including firing on organizers, spending hours in barricades and other forms of retaliation. In March, the National Labor Relations Board filed a complaint against Starbucks, alleging that it violated federal labor laws by shooting organizers at a location in Phoenix.

In his week and a half leading the company, Schultz is already campaigning more aggressively against the union than former CEO Kevin Johnson. Schultz referred to unions in public correspondence and in speeches with workers, depicting the pressure to organize as divisive and unnecessary.

“And while not all of the partners who support unionization are collaborating with outside union forces, the important thing is that I do not believe in conflicts, divisions and divisions – which were central to organizing the union – to the benefit of Starbucks or our partners,” he wrote on Sunday. Letter.

Shares of Starbucks rose more than 1% in trading on Wednesday afternoon, along with broader market gains. The market value of the company is about $ 93.3 billion.

Read the journal’s report on Schultz’s strategy for coping with union push.

– Leslie Josephus of CNBC contributed to this report.