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Breakingviews: Lazard shoots on target

Thursday, October 23, 2014 - 03:17

Rob Cox and Antony Currie discuss how the booming M&A market is helping the Wall Street firm hit CEO Ken Jacobs' earnings goal – and how both shareholders and bankers should benefit.

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So we got a glimpse into the booming emanate market today with Lazard is third quarter results. Answer need take a look at that kind of talked and some folks what's your read on. But I've bullets it's a pretty good quarter of was not it's been a pretty good quarter for the industry frankly. You've got some good results in the big guys Citigroup was Wheldon coming up look pretty low base of the bust up is. Have some good numbers just on revenue this is this corporate advisory emanate work exact course slightly as we see this huge. Increase in mergers and acquisitions gaffes are guys who benefit the best are going to be people like was our return yet I also welcome boutique right not seen autonomy you very big show it on earth how well that and probably. They are very focus on the Yemeni market and so to an extent that that we've had a huge boom members actually since they've they've had a outside is that rescues up with a certain confidence about he's a third and last year while a honorable chief sums up between sinking in some ten and 40% to Pennington now earn. So it's pretty futile ground. Am not Ken Jacobs on the on the conference call with investors said that CEO Zia and not talk tonight versions said don't worry about that. Will be 5% of that deal for this year has come from in the actual site. Rental program we think MySpace deals have nothing to do with fuel tax. So and so that was Shire in your side exactly so I don't I don't think they're expecting a huge blow back from not right Ken has had a bit of pressure from his shareholders not not least of yet to be Nelson's southeast insult I think that's okay well there was a fair amount of pushing him to reduce. The pay out to his tankers and it's got to bring it back in line or in yes it's gotten to two and half years ago and and I think. Asked Peltz is looking at it does not command headset and a unit which can achieve between 5% operating not occur by the end of 2000 putting full meantime here and at the moment. They're running it up at an average of 22%. For the first Ahmanson the senate looking pretty shall we. And just a quick back in a calculation they go to they've got to that's a run rate yet let's run right so to get to get there the you have to get a they they're gonna basically have to cut back on the percentage yet payout to cook but so there is other people up pretty much more that's full Korda has to be if you just looking at them estimated revenues in the street sir has to go to about 33% a pretty much is just a bit of a jump. Right which he's got to have a 75% change in. And how she says it's not the type Centre point sensory impact. And that sounds it's a huge map a bit like when you when we get that Goldman Sachs and others because they built this up. He's already site fathers is that your fourth quarter you can adjust these yes. So they'll manage to get a more money aside is it if they might if they just take all the money out of them can't apparently. And actually hit them much and they'll still have more money and compensation until they did for the whole of last year occurred so it's still this so we're not a cry for the SARS perhaps in a crack them and to check out a 635 cent much and to present on one last quick question. What what's their prognosis for emanate next year or in the eight he has a fantastic residents can Dixon we're cautiously optimistic which means. And the beast finalist thumbing its humps for the one of the most uses the well crafted phrases that are right our thanks Nancy we'll be back more breaking news tomorrow.

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Breakingviews: Lazard shoots on target

Thursday, October 23, 2014 - 03:17