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Wendy Boyd

Morgan Stanley: How Bank Investors Can Play 6 Global Themes For 2018

Positive synchronous growth momentum would benefit global banks in 2018, Morgan Stanley said in a Thursday note. The firm estimates 10 percent earnings per share CAGR over the next two years. in the sector. 

Among developed markets, the firm prefers the U.S., given the potential for deregulation that could fuel stronger growth, lower expenses and higher capital return.

Among emerging markets, the firm's favorite is China due to a rebound in industrial corporate growth and attractive valuations. The firm also likes India, as recent recapitalization could break the non cycle and lift return on equity.

Morgan Stanley identified six key themes in banking going into 2018 and its most- and least-preferred banks by theme.

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