Some traders said last week that Morgan Stanley (NYSE:MS) will probably be loading North Sea Forties crude onto a gigantic crude carrier some time next week.
Hound Point, Scotland is the destination pointed out for where the Ashna will pick up the crude oil.
Ship brokers said Morgan Stanley has a one-year charter of the VLCC as of November 2009 at costs of close to $30,000 a day. Morgan also has an option to extend the time charter another year if they choose.
It's unclear whether Morgan Stanley will float the Ashna in the North Sea area again.
Showing posts with label Morgan Stanley Commodities. Show all posts
Showing posts with label Morgan Stanley Commodities. Show all posts
Saturday, April 24, 2010
Friday, April 16, 2010
Morgan Stanley (NYSE:MS) to Spin Off Japan Commodities Unit
Morgan Stanley Spinning Off Japan Commodity Trading Company
There will be a new commodities trading company operating under the Morgan Stanley (NYSE:MS) umbrella, as Morgan Stanley Japan Securities Co will be spun off on May 1.
Although being spun off, it'll operate as a wholly owned subsidiary of Morgan Stanley.
The purpose of the new unit will be to take care of business of Japanese companies in areas of sales in the manufacturing, shipping and trading sectors.
With commodities expected to continue their bull run based on Chinese demand, the inevitable price movements related to commodities are normally hedged by companies using derivatives trading as their chosen vehicle.
Japanese companies are expected to increase their derivatives trading to hedge commodity price movements, the reason Morgan Stanley is spinning off the company.
There will be a new commodities trading company operating under the Morgan Stanley (NYSE:MS) umbrella, as Morgan Stanley Japan Securities Co will be spun off on May 1.
Although being spun off, it'll operate as a wholly owned subsidiary of Morgan Stanley.
The purpose of the new unit will be to take care of business of Japanese companies in areas of sales in the manufacturing, shipping and trading sectors.
With commodities expected to continue their bull run based on Chinese demand, the inevitable price movements related to commodities are normally hedged by companies using derivatives trading as their chosen vehicle.
Japanese companies are expected to increase their derivatives trading to hedge commodity price movements, the reason Morgan Stanley is spinning off the company.
Tuesday, April 6, 2010
Citigroup (NYSE:C) Cuts Goldman Sachs (NYSE:GS) Estimates
Citigroup analysts cuts Goldman Sachs estimate
As expected, shares of Goldman Sachs (NYSE:GS) dropped when Citigroup (NYSE:C) analyst Keith Horowitz cut his estimate for the bank for the first quarter, based on weaker-than-expected underwriting business.
That estimate cut comes even though commodities trading, currency and fixed income seems to be improving; seeming to show how weak the underwriting market is. Morgan Stanley (NYSE:MS) received the same treatment from Horowitz, for the same reason.
Even so, the rating for Goldman remains the same from Horowitz, maintaining a "Buy" on the company, with a price target of $240. Morgan Stanley still receives a "Hold" rating from Horowitz, with a price target of $32.
Earnings per share estimate on Goldman is from $4.45, down from the $4.55 previously estimated.
As expected, shares of Goldman Sachs (NYSE:GS) dropped when Citigroup (NYSE:C) analyst Keith Horowitz cut his estimate for the bank for the first quarter, based on weaker-than-expected underwriting business.
That estimate cut comes even though commodities trading, currency and fixed income seems to be improving; seeming to show how weak the underwriting market is. Morgan Stanley (NYSE:MS) received the same treatment from Horowitz, for the same reason.
Even so, the rating for Goldman remains the same from Horowitz, maintaining a "Buy" on the company, with a price target of $240. Morgan Stanley still receives a "Hold" rating from Horowitz, with a price target of $32.
Earnings per share estimate on Goldman is from $4.45, down from the $4.55 previously estimated.
Monday, April 5, 2010
Morgan Stanley (NYSE:MS) Earnings Estimate Lowered
Analysts lower earnings estimate of Morgan Stanley
Morgan Stanley (NYSE:MS) has had its earnings expectations lowered by a number of analysts as slowing trading in the first quarter is expected to put downward pressure on its earnings.
Analysts' estimates were lowered to 67 cents a share, a 13 percent decline from earlier in the year.
The reason given for missing by so much was it was assumed trading would be much better than it actually was, and the declines in trade will have an adverse effect on Morgan Stanley and all other trading units of large financial institutions.
Morgan Stanley (NYSE:MS) has had its earnings expectations lowered by a number of analysts as slowing trading in the first quarter is expected to put downward pressure on its earnings.
Analysts' estimates were lowered to 67 cents a share, a 13 percent decline from earlier in the year.
The reason given for missing by so much was it was assumed trading would be much better than it actually was, and the declines in trade will have an adverse effect on Morgan Stanley and all other trading units of large financial institutions.
Tuesday, March 23, 2010
Morgan Stanley (NYSE:MS), US Steel (NYSE:X), European Sovereign Debt Crisis
US Steel has large exposure to European sovereign debt crisis
There are a number of companies based in the United States which have a strong presence in Europe, making them extremely vulnerable to the emerging sovereign debt crisis which isn't limited to Greece. One of those is US Steel Corporation (NYSE:X) which generates 27 percent of their revenue from the European nations.
It does make me wonder if Morgan Stanley (NYSE:MS) analyst Mark Liinamaa thought of that when he raised his target on US Steel from $58 to $62.
Of course the increased prices this year will help the company, and there is no way of knowing how quickly or deeply a sovereign default would affect a company, as it would depend on the country and the ability and will of other European nations to respond.
Looking at the fiasco of Greece, not just with their fiscal irresponsibility, but the wary response of the rest of Europe toward helping them out, you have to wonder what would happen if it was Spain or a much larger country like them about to default on their debt.
While there is no reason to panic, it should cause everyone to check their stock portfolio to see if the companies in them are highly exposed to Europe. You may be surprised at what you find.
There are a number of companies based in the United States which have a strong presence in Europe, making them extremely vulnerable to the emerging sovereign debt crisis which isn't limited to Greece. One of those is US Steel Corporation (NYSE:X) which generates 27 percent of their revenue from the European nations.
It does make me wonder if Morgan Stanley (NYSE:MS) analyst Mark Liinamaa thought of that when he raised his target on US Steel from $58 to $62.
Of course the increased prices this year will help the company, and there is no way of knowing how quickly or deeply a sovereign default would affect a company, as it would depend on the country and the ability and will of other European nations to respond.
Looking at the fiasco of Greece, not just with their fiscal irresponsibility, but the wary response of the rest of Europe toward helping them out, you have to wonder what would happen if it was Spain or a much larger country like them about to default on their debt.
While there is no reason to panic, it should cause everyone to check their stock portfolio to see if the companies in them are highly exposed to Europe. You may be surprised at what you find.
Friday, March 5, 2010
Morgan Stanley (NYSE:MS): Iron Ore Prices Up 60 Percent in 2010
Morgan Stanley Iron Ore Price Projections
According to Morgan Stanley (NYSE:MS), they think iron ore prices will skyrocket even further than their past projection of 20 percent in 2010, as they've revised the number to an increase of 60 percent for the year.
Looking forward to 2011, Morgan Stanley also believe the increase in prices will continue, albeit dropping to about a 20 percent increase next year.
The majority of this revising of prices is reflected in the demand being more than originally though, as well as spot prices having a larger influence in the picture when taking into account negotiations, especially with the Chinese.
The company adds that the demand side of the equation is related to the perceptions of the market.
Morgan Stanley Iron Ore Price Projections
According to Morgan Stanley (NYSE:MS), they think iron ore prices will skyrocket even further than their past projection of 20 percent in 2010, as they've revised the number to an increase of 60 percent for the year.
Looking forward to 2011, Morgan Stanley also believe the increase in prices will continue, albeit dropping to about a 20 percent increase next year.
The majority of this revising of prices is reflected in the demand being more than originally though, as well as spot prices having a larger influence in the picture when taking into account negotiations, especially with the Chinese.
The company adds that the demand side of the equation is related to the perceptions of the market.
Morgan Stanley Iron Ore Price Projections
Friday, February 5, 2010
Morgan Stanley (NYSE:MS): Oil to $95 a Barrel in 2010
Morgan Stanley (NYSE:MS) Oil Price Estimates
Morgan Stanley (NYSE:MS) analyst Hussein Allidina recently said he believes oil will reach $95 a barrel by the end of 2010, while surging to $100 a barrel sometime in 2011.
“We expect that fundamentals will continue to improve,” said Allidina. “Our increased 2011 price reflects an improved GDP outlook that will require a higher price to ration demand to meet inadequate supply.”
Morgan Stanley added they believe oil demand worldwide will increase to 1.7 barrels a day.
What is being considered the impetus behind this is the recent strengthening of the U.S. dollar and the assertion by China that it is tightening things up over there.
The idea that a recovery will drive those prices up is somewhat laughable, as there is almost nothing to point in that direction, even though it is the mantra of mainstream media; at least in relationship to the United States.
As far as the U.S. dollar having any sustainable rally, that's a ridiculous thought as well, undermining the Morgan Stanley assertions.
Morgan Stanley (NYSE:MS) Oil Price Estimates
Morgan Stanley (NYSE:MS) analyst Hussein Allidina recently said he believes oil will reach $95 a barrel by the end of 2010, while surging to $100 a barrel sometime in 2011.
“We expect that fundamentals will continue to improve,” said Allidina. “Our increased 2011 price reflects an improved GDP outlook that will require a higher price to ration demand to meet inadequate supply.”
Morgan Stanley added they believe oil demand worldwide will increase to 1.7 barrels a day.
What is being considered the impetus behind this is the recent strengthening of the U.S. dollar and the assertion by China that it is tightening things up over there.
The idea that a recovery will drive those prices up is somewhat laughable, as there is almost nothing to point in that direction, even though it is the mantra of mainstream media; at least in relationship to the United States.
As far as the U.S. dollar having any sustainable rally, that's a ridiculous thought as well, undermining the Morgan Stanley assertions.
Morgan Stanley (NYSE:MS) Oil Price Estimates
Tuesday, March 11, 2008
Neal Shear out at Morgan Stanley
Neal Shear, who had been a veteran commodities dealer at Morgan Stanley (NYSE: MS), has reportedly left the firm, after being demoted because of the multibillion-dollar losses stemming from bad trading.
After placing some bad bets on "complex mortgage-backed securities known as CDOs, or collateralized debt obligations," the bond-trading department Shear managed ended up costing the company billions, and resulted in a $7.8 billion write-down for Morgan Stanley in the fourth quarter.
Much of the blame was placed on poor risk-management frameworks in place, and also poor communication across the division Shear was responsible for.
Initially Shear joined Morgan Stanley as a trader in precious metals in 1982, and has been with the company since then. Sources say he quietly left the company last week, after an internal memo was sent across the company letting workers know.
John Shapiro, now head of Morgan's commodity business, had this to say about Shears' overall performanc through his years at Morgan: "The phenomenal success we have experienced during the lifetime of our business is a testimony to Neal's knowledge of the commodity space and his broad commercial skill set."
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