Morgan Stanley on Friday reported a 30 percent slump in third-quarter profit, missing analysts’ estimate as a slowdown in global dealmaking hurt its investment bank business, sending its shares down 1.7 percent in early trading.
The outlook for deals has steadily worsened this year as the U.S. Federal Reserve raised interest rates to tame inflation, clouding the economic growth outlook, while the highs of a record last year drew tough comparisons.
The bank’s investment banking revenue more than halved to $1.3 billion, with declines across the bank’s advisory, equity, and fixed income segments.
Global M&A lost ground for the third straight quarter with volumes in the United States plummeting nearly 63 percent as the rising cost of debt forced companies to delay big buyouts….