The Securities and Exchange Commission said it’s fined Morgan Stanley $7.5 million for allegedly using trades involving customer cash to lower the firm’s borrowing costs. The SEC order said from March 2013 to May 2015, Morgan Stanley’s U.S. broker-dealer used transactions with an affiliate to reduce the amount it was required to deposit in its customer reserve account. The affiliate used margin loans from the broker-dealer to finance the costs of hedging swap trades with customers. Morgan Stanley didn’t admit or deny the findings.
The Wall Street Journal reports that Apple is discussing with the Indian government the possibility of manufacturing its products there. Apple wants to grow its sales and presence in India. In a letter to the government last month, the company outlined its plans and sought financial incentives to move ahead. Making goods such as iPhones locally would allow Apple to open its own stores in India, helping build its brand in a country where it has less than 5% of a booming smartphone market. India’s market is expected to overtake that of the U.S. as the world’s second-largest behind China in 2017, according to IDC. For years, sales in China fueled Apple’s expansion, but now growth there is slowing.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
