42%

Decline in Morgan Stanley’s bondtrading revenue.

to participate in the upside of that,” Kelleher said.

The cuts at Morgan Stanley’s “lousy” fixed-income unit could spark job cuts of between 1,500 and 2,500 workers and savings of about $500 million (Dh1.83 billion), or about 20 cents to 25 cents a share, according to CLSA Ltd analyst Mike Mayo, who has a buy rating on the stock.

The firm may focus on cutting so-called front-office jobs, or sales and trading employees, rather than “back-office” technology and development workers as it seeks to move toward electronic trading, Mayo wrote in a note to clients.

Morgan Stanley climbed 1.5 per cent to $34.30 in New York, the second-biggest gain in the 87-company Standard & Poor’s 500 Financials Index. The stock is down 12 per cent this year.