Borse Dubai and Qatar are in rival bid to acquire OMX. While OMX board has recommended all cash bid from Borse Dubai, a higher bid from Qatar can topple the currently agreed deal between OMX and Borse Dubai. Qatar urged through its statement to shareholders of OMX not to accept bid from Dubai.
Qatar Investment Authority also said that it has acquired 20% stake in LSE and it is not planning to make an offer for the exchange.
10:00AM New York – Bear Stearns earnings declined 61% on 37.5% lower revenue.
Bear Stearns revenue in the third quarter declined 37.5% from a year ago to $1.33 billion and earnings fell 61% to $166 million. Earnings per share in the quarter declined to $1.16 from $3.02 per share a year ago.
The annualized return on equity in the third quarter was 5.3% and 13.7% for the last twelve months.
The company (
BSC: chart) incurred $200 million loss related to BSAM High-Grade hedge fund.
""The third quarter was characterized by extremely difficult securitization markets and high volatility levels across asset classes. While our fixed income results clearly reflect these market conditions, we reported solid revenues in Investment Banking and record revenues in Global Equities and Global Clearing Services,"" said James E. Cayne, chairman and chief executive officer.
For the third quarter ended August 31, 2007, earnings were $171 million compared to $438 million a year ago.
Institutional Equities division reported net revenue increase of 53%. Net revenues in Capital Markets segment were down 36% from a year ago to $1.0 billion. Fixed income net revenue were $118 million, down 88% from a year ago. Investments banking net revenues were reported at $211 million, down 9% from a year ago.
Global Clearing Services group reported $332 million in revenue, up 30% from a year ago. Wealth management net revenues for the quarter were negative $38 million compared to $233 million.
Compensation as a percentage of net revenues was 49.9% compared to 48.1% a year ago.
The company authorized quarterly dividend of 32 cents per common share and increased its stock buyback to $2.5 billion from $2 billion.
9:00AM New York – Goldman Sachs earnings jumped 79%. Bear Stearns earnings fell 61%.
Goldman Sachs (
GS: chart) reported third quarter revenues of $12.33 billion and net earnings of $2.85 billion. Earnings per share were $6.13 compared to $3.26 billion a year ago and $4.93 billion in the second quarter of this year.
Net revenues in investment banking jumped 67% to $2.15 billion from a year ago. Net revenue in the financial advisory jumped more than 100% to $1.41 billion and equity and debt underwriting revenue increased 8% to $733 million. Revenue from trading and principal investments jumped 70% from a year ago to $8.23 billion and 24% higher than in the second quarter.
The company statement also added that ‘significant losses on non-prime loans and securities were more than offset by gains on short mortgage positions. In addition, net revenues in both commodities and credit products were higher compared with the third quarter of 2006.’
Net revenue in asset management and securities services jumped 35% from a year ago to $1.96 billion. Operating expenses jumped 55% from a year ago to $8.08 billion and compensation and benefit increased 68% to $5.92 billion.
The company declared a dividend of 35 cents per common share and $404.41 per Series A Preferred Stock.
6:00AM New York, 7:00PM Tokyo, Japanese stocks closed up 0.2%. Commodity- related stocks and Real Estate however rallied buoyed by rising metals prices. Japan commercial land prices gains 1% and manufacturing companies to boost capital spending by 6.3%.
Japanese stocks were largely tepid as losses in technology stocks sparked by 10% fall in DRAM chips weighed on chipmakers. However, commodity related stocks and realty developers gained on rising metal prices and strengthening land prices. Of the Nikkei 225 index 131 stocks advanced, 84 slumped and 10 traded unchanged. Nikkei 225 Index edged up 32 points to close at 16,413.79.
