Analysis-US investment banks see early signs of revival in dealmaking

  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 63%

United States News News

United States United States Latest News,United States United States Headlines

Major Wall Street firms said a dismal year of dealmaking appears to have hit a trough, and now some companies are looking to merge, offering hope that...

NEW YORK - Major Wall Street firms said a dismal year of dealmaking appears to have hit a trough, and now some companies are looking to merge, offering hope that investment banking revenues could pick up after a disappointing third quarter.

"Client discussions have been turning more constructive over the past several months," said Orszag, who took the helm earlier this month. The independent investment bank on Thursday missed Wall Street estimates for third-quarter profit, as its advisory business reeled from a prolonged slump in dealmaking.

Investment banking revenue will probably rise 5% to 10% next year for the largest banks, according to Mike Mayo, an analyst at Wells Fargo. Still, activity will remain subdued relative to a blockbuster year in 2021. Last week, Engaged Capital called on apparel maker VF, which owns The North Face brand, to consider selling non-core assets. Starboard Value recommended that News Corp spin off its digital real estate division and Jana Partners called on Frontier Communications to sell itself.

"If conditions remain conducive, I expect the continued recovery for both capital markets and strategic activity," he told analysts on a post-earnings conference call.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 47. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market today: Wall Street drifts following more strong economic reportsNEW YORK (AP) — Wall Street is drifting after reports showed the U.S. economy continues to storm ahead despite much higher interest rates that have already lashed the stock market. The S&P 500 was off 0.
Source: SooToday - 🏆 8. / 85 Read more »

Stock market today: Wall Street falls after profit warnings, strong economic dataNEW YORK (AP) — Wall Street fell in mixed trading after some big-name companies warned about an uncertain global economy hitting their upcoming profits. Reports also showed Thursday that the U.S.
Source: SooToday - 🏆 8. / 85 Read more »