Morgan Stanley CFO Expects Increase in Investment Banking Activity, Net Interest Income to Decline Modestly in Q4 vs Q3

Morgan Stanley CFO Sharon Yeshaya anticipates an increase in investment banking activity over the next quarters. In an interview with Reuters, Yeshaya highlighted that the upcoming U.S. Presidential Election will remove key uncertainties affecting deals. She also noted that private equity firms are driving demand for IPOs in both the U.S. and Europe. Additionally, Yeshaya sees restructuring activity in certain areas of commercial real estate as a measure to reduce potential losses. Despite these positive trends, she mentioned that net interest income is expected to decline modestly in Q4 compared to Q3 levels. Morgan Stanley CEO also commented that the current interest rate environment is beneficial for trading activities.