This morning Morgan Stanley (NYSE:MS) is our company of the day. MS and other large US banks have suffered in recent quarters from slouching trading activities amid fresh concerns on the US economic recovery and the European debt crisis. We note that trading and asset management make up 60% of $33 price estimate for Morgan Stanley . For our forecast of the day, Anadarko ( APC ) is adding to its natural gas production capacity a processing unit in Africa. Finally we test your knowledge on Nike ( NKE ) below.
Morgan Stanley and the other banks including Bank of America ( BAC ), Citigroup ( C ), Goldman Sachs (NYSE:GS) and Deutsche Bank ( DB ) have seen their stock prices decline steadily over the last 3 months. An estimated 16% decline in Q2 trading revenues caused by a slowdown in fixed-income, currencies and commodities trading is forcing Morgan Stanley - the world's largest brokerage firm - to resort to cost cutting to resize its business and maintain profit margins.
Anadarko plans to set up a natural gas processing unit in northern Mozambique. This new unit will allow the company to produce, liquefy and export the natural gas it extracts from the Rovuma basin deep waters - off Mozambique's northern coast. Anadarko's Operations Director John Peffer added that the unit will produce at least a billion cubic feet of natural gas per day.
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