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Morgan Stanley's Q2 income down YOY; PIMCO names new CEO

Banksreporting earnings today: , , and .

Morgan Stanley reported second-quarter earnings applicableto common shareholders of $1.43billion, or 75 cents per share, down from $1.67 billion, or 85cents per share, in the year-ago quarter. Consolidated net revenues for thequarter were down 9% year over year to $8.91 billion from $9.74 billion.

SignatureBank reported second-quarter net income of $102.2 million, or $1.90 per share, up from $90.5million, or $1.77 per share, in the year-ago period. The increase is primarilydue to an increase in net interest income, fueled by strong deposit and loangrowth. These factors were partially offset by an increase in the provision forloan losses of $24.3 million, among other things.

Onthe subject of earnings, the Federal Reserve's revealed that averageloans and leases at U.S. commercial banks continued to climb in June,increasing by $46.6 billion to $8.907 trillion.

reportednew loan production of $265.2million for the second quarter, up 27.5% year over year, comparedto $208.1 million for the second quarter of 2015.

Lancaster,Pa.-based Fulton FinancialCorp. now expects low-single digit quarterly net interest margincompression absent any further rate increases. The original NIM outlook wasstable on an annual basis, with modest volatility on aquarterly basis.

Inmore community and regional bank news,the North Bay Business Journal reportsthat Santa Rosa, Calif.-based Luther Burbank Corp. wants to into a bank holding company froma unitary thrift holding company.

InNew York, Five StarBank appointed Executive Vice President William Kreienbergchief administrativeofficer. The FinancialInstitutions Inc. unit also named Executive Vice President JeffreyKenefick to serve as chief community, commercial and strategic developmentexecutive; and Senior Vice President Charles Guarino chief retail lending executive.

appointedPresident William Morrison vicechairman, effective Oct. 1. CEO Frederick Waddell will replaceMorrison as president.

AndSaint Paul, Minn.-based BremerFinancial Corp. President and CEO Patrick Donovan is , effective Dec. 31.

LittleRock, Ark.-based Bank of theOzarks Inc. "is diving headlong into some of the shakiest commercial-propertymarkets in the U.S." and TheWall Street Journal says investorsare worried that the real estate rally may be coming to an end. But Chairmanand CEO George Gleason is not nervous. "So what we have tried to do isignore the headlines, to a great extent…we are finding tremendous opportunitiesin Manhattan, Miami, Houston [and] Dallas," Gleason said on a call withinvestors.

In big bank news, plans to test adigital adviceplatform early next year, poised to be made available to all of thecompany's brokers and clients, OnWallStreetreports, citing Devon McConnell, head of digital for Wells Fargo Advisors.

In areport, CitigroupInc.'s financial strategy and solutions group pointed out that companiesshould considerbreaking up or selling assets to improve return on invested capital, orROIC, the WSJ reports. The globalaverage was 11.3% in 2015, down from 14.5% in 2011, the group said.

Inthe asset manager scene, NewYork-based Laurion CapitalManagement LP has shutteredthe Laurion Capital Global Markets Fund — a nearly $1.1 billion hedge fund thatbet on macroeconomic trends, say sources for Reuters.

Also,Emmanuel Roman willbecome CEO of Pacific InvestmentManagement Co. LLC as of Nov. 1. Roman will take overresponsibilities from Douglas Hodge, who will assume a new role as managingdirector and senior adviser.

Onthe regulatory front, public commentsfrom Fed officials reveal that an interest rate-hike can be expected asearly as September if financial markets remain stable, the WSJ reports.

Andthe Fed Board prohibited Matthew Gardiner, who used to work as aforeign exchange trader with Barclays Plc and UBS AG, from working in banking.

Specialty lender CommonBond acquired personalfinance platform Gradible to build out a new employer platform for student loanrepayment. The company also raised $300million in new funding.

In other parts of the world

Asia-Pacific:Malaysian fund, Sun Life lookingto buy Hong Leong insurance ops; India unveils bank capital supportplan

Europe:Brexit prompts global outlookcut; S&P on Deutsche Bank; ABN AMRO CEO to leave

MiddleEast & Africa: Barclaysstarts Egyptian unit sale process; Commercial Bank H1 profit plummetsYOY

The day ahead

U.S. markets are expected to start the day's trading on ahigher note as the Nasdaq composite index, the S&P 500 and the Dow JonesIndustrial Average were trading above fair value in early morning futurestrading.

In Asia, the Hang Seng rose 0.97% to 21,882.48, and theNikkei 225 was down 0.25% to 16,681.89.

In Europe as of midday, the FTSE 100 was up 0.28% to6,716.35, and the Euronext 100 had climbed 0.93% to 868.42.

On the macro front

The Bank Reserve Settlement report, the MBA mortgageapplications report and the EIA petroleum status report are due out today.

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