Higher-for-longer rates are 'good for business': Morgan Stanley CEO Ted Pick

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Morgan Stanley News

James Gorman,Ted Pick,Pick

Morgan Stanley CEO Ted Pick said Monday that higher-for-longer interest rates are 'good for business,' citing a strategy put in place by predecessor James...

"I do think it's really good for our business, because we have spent so much time refining the strategy," Pick said at a financial services conference hosted by Morgan Stanley Research.Central bank policy makers have been cautioning investors to expect rates to remain elevated following a string of sticky inflation readings during the first quarter and surprisingly strong economic data.

Pick became CEO at the beginning of this year after Gorman announced his decision to retire, making it clear Gorman’s blueprint would remain in place."While there has been a change in leadership, there is no change in strategy," he wrote in his 2024 letter to shareholders. Fees from investment banking rose 19% from a year ago, driven most by more equity and fixed income underwriting transactions for work on IPOs and corporate bond issuance.Pick on Monday pointed to better integration of Morgan Stanley’s investment banking, trading, wealth and asset management as the key place for the firm’s future growth.

"There's an enormous flywheel of activity," he said, pointing to clients in the utilities, telecommunication, real estate and technology sectors who will face more demand as the trend takes off. Executives now anticipate the final requirements to be less onerous than the initial proposal. That may mean banks will be freer to return to shareholders some of the excess capital they are currently holding.

Further weakness as Algonquin Power & Utilities drops 4.7% this week, taking three-year losses to 50%Nvidia was falling on Monday after its stock split, although two Wall Street analysts believe the chip maker’s valuation will keep climbing. Nvidia’s 10-for-1 stock split took effect after Friday’s closing bell.

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