Jamie Dimon

JPM Earnings Jump On Slashed Expenses, FICC Trading Beats As Equity, IB Misses; Credit Card Charge-Offs Spike

In a report that was somewhat similar to that of Bank of America,  JPM reported Q4 revenues of $23.4 billion, beating estimates of $23.1 billion, on EPS of $1.71, far higher than the expected $1.42, which however like in the case of BofA was due to a cut in expenses, which came in at $6.87 billion, far below the $7.2 billion, suggesting even greater expense - i.e. compensation - reductions.

Frontrunning: January 6

  • December Jobs Data to Wrap Up Obama’s Economic Legacy (WSJ)
  • FBI Says Democrats Refused Access to Hacked E-Mail Servers (BBG)
  • As Trump attacks, Nissan at bigger risk than Toyota (Reuters)
  • Democratic leader Schumer emerges as Trump's newest punching bag (Reuters)
  • PBoC raises renminbi’s daily fix by most since 2005 (FT)
  • China central bank urges rational investment in bitcoin (Reuters)

Trump Is Exactly Where The Elites Want Him

Cognitive dissonance is a powerful drug. It makes otherwise-very-intelligent people goofy and incoherent in their thinking and blinds them to certain realities that they should normally see right in front of their noses. You’ll hear hundreds of theories and rationalizations on Trump’s miraculous victory, but a reason you will almost never hear is also the most likely one: Trump won the election because he serves the interests of the establishment.

Dave Collum's 2016 Year In Review - "And Then Things Got Really Weird..."

"Markets don’t have a purpose any more - they just reflect whatever central planners want them to. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable..."

Frontrunning: December 22

  • Fingerprints of Tunisian suspect in Berlin attack found on truck door (Reuters)
  • Germany Ill-Prepared for Terror Fight, Critics Say (WSJ)
  • Monte Paschi Will Need a Huge State Rescue (BBG)
  • Trump denounces attack, vows tough immigration plan (AP)
  • Trump’s New Appointments Shake Up Trade, Regulation (WSJ)

2016 Year In Review

We started this year with the economy deteriorating and finished it with the second interest rate increase in ten years. There were a lot of ups and downs along the way, but ultimately 2016 was defined by three key story-lines:  1) Brexit 2) The Presidential Election 3) Fed Policy. The first two events were votes that shocked the world. The stock market’s reaction to each was arguably even more shocking. 

Schwarzman, Dimon, Fink Will Advise Trump How To Create Jobs

Donald Trump today announced that he is establishing the President’s Strategic and Policy Forum. The Forum will be called upon to meet with the President "frequently to share their specific experience and knowledge as the President implements his plan to bring back jobs and Make America Great Again. The Forum will be chaired by Stephen Schwarzman, Chairman, CEO, and Co-Founder of Blackstone." Its members also include Jamie Dimon and Larry Fink.

Carl Icahn Says Stock Rally May Be Overdone, Calls Trump A "Consensus Builder"

Having turned decidedly bullish in the immediate aftermath of the Trump victory, his supporter Carl Icahn said the strong rally in U.S. stocks since last Wednesday's "shocking" event might be overdone, however he added that investors can expect the president-elect to be a consensus builder who can help fix Washington and improve the economy. "When it runs up like this, I scale off a little bit," Icahn said adding "that doesn’t mean that I am that negative or positive."

BOJ "Fires Warning At Bond Market" Sending Global Yields, Dollar Lower; All Eyes On Yellen

Global bond yields and the dollar both weakened after the Bank of Japan offered to buy an unlimited amount of debt at fixed yields, stabilizing the global bond rout, while investors awaited testimony from Fed Chair Janet Yellen that will help shape the outlook for interest rates ahead of a December rate hike that is now seen as near certain.

Frontrunning: November 11

  • Conquering Trump comes to DC (The Hill)
  • Trump’s Data Team Saw a Different America—and They Were Right (BBG)
  • Trump victory prompts U.S. fund managers to focus on inflation (Reuters)
  • Dollar’s Trump-Inspired Surge Sets Off Intervention Across Asia (BBG)
  • Trump Camp Works to Form Cabine (WSJ)