US banker trumps rival

MORGAN Stanley has banked an 11pc rise in profits as its bond traders raked in more than their arch rivals at Goldman Sachs.

The banking giant posted secondquarter profits of £1.3bn after revenues rose 7pc to £7.3bn.

It weathered the storm in bond trading better than its rivals, as they struggle to deal with low volatility, with fixed income revenues down 4pc to £950m. This compared with a 40pc drop in fixed income revenues to £890m at Goldman over the same period and marked the second quarter in a row that Morgan Stanley earned more in this sector than its larger competitor.