The world’s biggest bank is betting big on the idea of a single stock to drive the next wave of growth in the U.S. economy.
That idea may be wrong.
And it could have serious implications for the future of the U-turn that has propelled U.N. Secretary-General Antonio Guterres into a diplomatic success story in his new role.
But Morgan Stanley isn’t giving up on its stock picking.
On Tuesday, the bank will release a new paper titled “The Future of Stockpicking” that examines a number of potential factors that could help the bank make the next big stock-buying move.
It will be released on the day of the World Economic Forum (WEF) in Davos, Switzerland.
That will be followed by a conference call with financial analysts.
The bank will also publish a draft report on the process of selecting stocks in a separate report, which will be shared with the stock market.
The bank will not disclose how much the new report is costing.
But it’s expected to cost roughly $1.5 billion.
Morgan Stanley has long been an advocate for the idea that one stock should dominate the market.
The company famously backed the stock of the pharmaceutical company Eli Lilly and Company, which it said had the best chance of keeping up with the rise of the internet and mobile phones.
In the past, the firm has also touted its own picks as an asset class to beat, saying that it would have the best shot of picking the best stock based on its “big data” and “big-picture analysis.”
The new report doesn’t seem to go that far.
Its main takeaway is that one of the main ways to drive growth is through “quantitative easing,” which can be done through a stock buyback program.
It is not clear how the bank intends to determine what constitutes a stock that is “quantitatively” better than its peers.
The paper will be a huge boost for Morgan Stanley’s CEO, Jamie Dimon, who is stepping into a new role in the wake of Guterre’s success.
The firm has been trying to get GuterRE in the spotlight since the bank was ousted from the U.-turn and sent to the International Monetary Fund for a formal investigation in November.
The firm has said that it is willing to take a hard look at some of its previous picks, like its $4.7 billion in a 2009 merger with Deutsche Bank AG, which Dimon says had “substantial downside risk.”
It also says that it’s looking at other companies that it thinks might be better at the job of buying and selling stocks, like the UBS Group AG, the JPMorgan Chase & Co. subsidiary that was a member of the bank’s last big-stock buyback and now is a holding company.
But the bank isn’t just interested in getting the bank back in the stock-picker business.
The company also wants to focus on the UAW, which has been in a prolonged strike and is fighting to organize a new contract with the International Brotherhood of Teamsters.
It wants to see if it can make the UBI, the social security program that is a key part of the new contract, more attractive to new investors.
The report will also be a major boon for Dimon and the bank.
It’s expected that the report will show how Morgan Stanley and its partners at its brokerage firms are trying to influence the UBA contract.
Morgan says it will be taking a $200 million cut from its dividend to support the bank, which is the biggest in the world.
The cuts will be the biggest since it went public in 2014, according to Bloomberg data.