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Bank of America missed third-quarter profit estimates on Wednesday due to weakness in its trading business and disclosed a $1.2bn charge tied to a regulatory penalty over failures to detect potential money-laundering activity.The Wall Street giant posted weaker fixed income, currency and commodities revenue, mirroring third-quarter trends at rivals JPMorgan Chase, Wells Fargo and Goldman Sachs."The poor capital markets performance doubles the negative impact of the earnings miss," Zacks Investment Management Chief Market Strategist Brian Mulberry said.BofA's sales and trading revenue fell 5% to $5.1bn in the quarter, as weakness in FICC overshadowed record quarterly equities trading. The bank had last month projected quarterly sales and trading revenue to be relatively flat compared to last year."Reduced client activity and changing market conditions, including a major shift in interest rates, significantly affected our leading FICC businesses, including credit mortgages and municipals," Chief Financial Officer Alastair Borthwick said.Rival JPMorgan on Tuesday also fell short of quarterly profit estimates as dealmaking, bond trading momentum slowed down.Asked how much longer he plans on remaining BofA's CEO, Brian Moynihan said succession is the board's decision.Moynihan has been at the helm of the storied US bank since 2010 and is one of the longest-serving CEOs of a major US bank.The fine, unveiled late Tuesday, stems from BofA's failure to report over $5bn in suspicious activity to the US government.The actions, which include the third-largest penalty in US Treasury history, highlight growing regulatory scrutiny of shortcomings in tackling money laundering at US financial giants."There's no asset cap here. It won't crowd out anything," Borthwick told analysts.Regulators have placed BofA under a consent order — a major regulatory punishment — that requires the bank to work with a third party to identify and report suspicious transactions that went undetected.BofA had been working with regulators for some time to reach the resolutions, Borthwick said, adding the bank had added thousands of people to shore up its efforts to tackle money laundering.The Charlotte, North Carolina-based bank reported a profit of $6.9bn, or 91 cents per share, for the three months ended September 30, compared with $8.3bn, or $1.04 per share, a year earlier.Excluding the $1.2bn regulatory settlement charge, BofA earned $1.08 per share, missing estimates of $1.10 per share, according to estimates compiled by LSEG.Wall Street analysts said the penalty would likely add to negative sentiment and raise concerns about expenses and the duration of the order.The penalty follows a 2024 consent order from the Office of the Comptroller of the Currency, which had required BofA to address shortcomings in its ability to police money laundering.Since late 2023, BofA has been working with US regulators to overhaul its safeguards against money laundering and other illegal transactions.BofA's investment banking fees fell 11% to $1.8bn in the quarter. The bank had last month projected a decline of at least 10%, as it wasn't well positioned in some businesses that saw more activity.Dealmaking also slowed in the reported quarter as a grinding bond market rout and equities volatility weighed on activity."There's a period in volatility like that where buyers and sellers just need to readjust valuations and expectations. So that always happens," Borthwick said, referring to the move in interest rates.Investment banking fees can be lumpy from quarter-to-quarter and are influenced by when deals close. Transaction timing can often move around due to market conditions and regulatory approvals."The environment for deal making remains solid. It's a pretty active environment," Borthwick said, adding that BofA's investment banking pipelines are strong.BofA slipped to fourth place in the global investment banking league table for the first nine months of 2026, from third in the same period a year earlier, Dealogic data showed.In a bright spot, net interest income (NII) — the difference between what a bank earns on loans and pays out on deposits — jumped 8% in the quarter, driven by higher loan and deposit balances and fixed-rate asset repricing.BofA expects interest income to improve sequentially in the fourth-quarter. Full-year NII growth is anticipated to be 8% or more in 2027. ASMLASML said booming AI demand was driving orders for its chipmaking tools into 2030, with customers seeking more capacity than it can supply next year and through 2028, adding to concerns over supply shortages.Customers are already discussing orders beyond 2027, with some expressing interest in booking capacity for 2029 and 2030, the Dutch company said on Wednesday.Demand for the company's machines has been fuelled by the AI boom and the rapid expansion of data centres, with customers including TSMC — which manufactures chips for Nvidia, as well as Samsung and Intel investing heavily to increase chip production. ASML shares have risen nearly 70% this year.ASML, which leads the market for equipment used to make the most advanced semiconductors, said it was looking at ways to expand capacity further.In July ASML said it would increase capacity in 2027 by 30% and again by 30% in 2028, but CEO Christophe Fouquet said it was clear that would not be enough.Fouquet said the company was now seeing "a lot of order intake for 2028. But also some strong interest to already place orders for 2029 and sometimes even 2030."The company's comments came as it reported quarterly results and an improved sales outlook, prompting the company to lift the bottom end of its full-year sales forecast.ASML now expects fourth-quarter sales of €14.2bn to €15.2bn ($15.9bn to $17bn), above analyst forecasts, with a gross margin of around 57%. That, in turn, has nudged up its full-year sales forecast to €44bn to €45bn.Shares in ASML, which has a market value of around €586bn ($657bn), rose nearly 3% in early Amsterdam trading.Nick Rossolillo of Chip Stock Investor, which holds shares in the company, said he was satisfied with the pace at which ASML is adding capacity "as long as they do gradually expand to take care of customer demand"."Staying capacity constrained protects the business and gives a bit of cushion for when there are inevitable years of soft customer order activity," he said, pointing to the 2028 to 2029 period after completion of several new customer plants.ASML's customers also include SK Hynix, Micron and newcomer Elon Musk and his TeraFab, all of which have expansion plans. ASML is "still kicking the tyres on the exact size of that (TeraFab) opportunity”, CFO Roger Dassen said on a call with reporters.ASML broke ground last month on a major expansion in Eindhoven, Netherlands, but it will need to look at other ways to address capacity before the first phase is completed in 2029.Dassen said ASML will also address the shortage by upgrading existing tools, and selling new versions of its machines with higher throughput.Taken together, these measures would provide "a significant enhancement to our customers' capacity", he said, noting that the company will be increasing prices starting in 2027, with the full effect visible from 2028.ING analyst Marc Hesselink said the earnings beat expectations and he expected consensus earnings forecasts to be revised upward through 2028."Management's commentary on demand visibility and capacity... was again very constructive," he said.For the third quarter, ASML reported net profit of €4.96bn on net sales of €11.7bn, above the €4.05bn and in line with the expectations of analysts polled by LSEG. 

JPMorgan Chase fell short of quarterly profit estimates for the first time in nearly three years as market volatility and an uncertain economic outlook dampened dealmaking and reduced bond market trading activity in recent months.Earnings from the largest US bank underscored how uncertainty over interest rates, soaring energy prices and geopolitical tensions shaped the quarter. While equities trading thrived, dealmakers largely stayed on the sidelines, threatening what was expected to be a banner year for investment banking.The deals desk, in particular, had to contend with a sharp loss in momentum in the IPO market after a cracking start to the year, highlighted by the historic listing of Elon Musk's SpaceX.JPMorgan reported an 8% decline in third-quarter investment banking fees versus the second quarter, even as it recorded a 14% rise compared with a year earlier.Revenue in its markets division climbed 15% in the third quarter from the prior year. Equity markets surged 49% as investors rejigged their portfolios amid the volatility. Fixed-income trading revenue, however, declined 4%."JPMorgan may be a victim of its own success... as it creates a high bar to clear in Q3 and clearly it had some difficulty doing just that," said Brian Mulberry, chief market strategist at Zacks Investment Management, which holds shares of the bank. "It is a warning that higher-for-longer interest rates could have an impact on dealmaking fee revenues in the near term."Investment banking and trading revenues came in at the lower end of the bank's own estimates, too. In September, JPMorgan Co-President Doug Petno said investment banking fees and markets revenue were expected to be up in the "mid-to-high teens" percentage in the third quarter.The bank reported a profit of $5.57 per share for the three months ended September 30. Analysts on average had expected $5.85 per share, according to estimates compiled by LSEG. It was the banking giant's first profit miss since the fourth quarter of 2023, according to LSEG data."The franchise still looks healthy, but the quarter's quality was a step below what investors have come to expect," David Wagner, head of equity and portfolio manager at Aptus Capital Advisors, said, calling the earnings a rare miss against expectations.Analysts have said the IPO market has been selective, not shut, and delayed offerings could still launch if conditions stabilize during the fourth quarter.Banks earn lucrative fees from underwriting the initial offering, as well as from subsequent follow-on sales as companies issue more shares."Investment banking fees each rose at a mid-teens rate, helped by strong levels of client activity, although activity did moderate somewhat during the quarter," CEO Jamie Dimon said in a statement.On a call with reporters, JPMorgan Chief Financial Officer Jeremy Barnum said the investment banking pipeline remained very strong, despite a slowdown in the second half of September. JPMorgan raised its interest income forecasts for the year to roughly $106.2bn, market dependent, and $97.2bn, excluding markets. It had previously guided to $105.5bn and $96.5bn, respectively. Goldman SachsGoldman Sachs reported higher third-quarter profit on Tuesday, sending shares higher as CEO David Solomon said there was no plans for a leadership transition.Profit at the New York financial heavyweight during the July-September period was $5.1bn, up 33% from the year-ago level but down 20% from the second quarter when business conditions were especially robust.Revenue rose 23% to $18.7bn.Like rival JPMorgan Chase, which reported earlier Tuesday, Goldman saw muted activity in some parts of its markets business, such as fixed income, currency and commodities, where revenues were "essentially unchanged," the firm said in a press release.But net revenue in equities trading soared 72% from the year-ago level.Goldman also scored higher investment banking fees, citing increases in completed mergers and an elevated level of initial public and secondary equity offerings.The Wall Street Journal reported on September 28 that Goldman's board had discussed a plan for Solomon to step down as CEO and be replaced with Chief Operating Officer John Waldron around the end of 2027 or in 2028.A Goldman spokesman said in response that there was no timetable for a transition.Solomon reiterated that on Tuesday, saying he was "super pleased" with the firm's progress. Johnson & JohnsonJohnson & Johnson reported a slightly higher-than-expected profit on Tuesday driven by strong sales of immune disease treatment Tremfya, and said it plans to spin off its hips and knees business next year.The company late last year said it intended to separate its orthopedics unit, DePuy Synthes, into a standalone company, marking its second major spinoff as it sharpens focus on higher-growth healthcare segments.Chief Financial Officer Joe Wolk on a conference call to discuss company results said J&J remains on track for a mid-2027 separation for DePuy Synthes."Given the way DePuy Synthes is performing... we are leaning towards a spin as being the best option to create long-term value for Johnson & Johnson shareholders. That has always been our base plan, and we are confident that it can be successfully executed," he said.Apollo Global Management is in talks to acquire the orthopedics unit in a deal that could value it at close to $20bn, Bloomberg News reported in September.J&J shares were off about 2% before the bell.Wolk, in an interview, told Reuters the Mideast conflict, austerity measures in Europe and pricing in China continued to weigh on results internationally, "but maybe in a little bit more pronounced way."He said the Mideast conflict, which has led to soaring fuel costs, has yet to impact the company's costs, but has hurt sales in the region.Medical technology division sales rose 2.5% to $8.6bn overall, missing analysts' estimates of $8.71bn, according to LSEG data. Outside the US, sales in the division were basically flat.The company raised its full-year forecast for reported sales to about $101.2bn at the midpoint, from $101.1bn previously. It increased its adjusted earnings forecast range with a new midpoint of $11.10 per share, up from $11.04.The company posted third-quarter revenue of $25.4bn, above estimates of $25.28bn, and adjusted earnings of $2.59 per share, topping Wall Street expectations by 5 cents. CitigroupCitigroup beat Wall Street estimates for third-quarter profit on Tuesday, helped by stronger investment banking revenue and transactions with multinational companies as well as higher earnings from wealth management.Trading profits gained only 2% over a year ago, but fell 27% against the previous quarter, mainly due to a drop in equity trading revenue.Wall Street banks are navigating a volatile market backdrop as the conflict in Iran pushed oil prices higher, fueling inflation and prompting the US Federal Reserve to raise interest rates and bond markets worldwide to sell off dramatically."There is no doubt that high interest rates and the threat of continued Fed hikes is weighing on trading and IB activity in a measurably negative vector," said Brian Mulberry, chief market strategist at Zacks Investment Management."However, the ability for Citi to drive positive growth from multiple business units is the strength of the balance sheet today, growth in Services, Wealth, and strong NII will offset short term weakness in trading to support continued ROTCE at or above the targeted 11% going into 2027."Citi's investment banking revenue increased 9% from a year ago to $1.35bn but fell 13% over the previous quarter as equity and debt underwriting activity slowed. Citi's CFO Gonzalo Luchetti said the bank gained market share over the last year, but also went through the industry slowdown in the third quarter from the record deal volume in the first half of the year."I think across the industry, there's a moderate decline from that in terms of the growth rate in the third quarter," Luchetti told reporters during a conference call.Citigroup posted an 11.5% return on tangible common equity, or ROTCE, in the third quarter and a year-to-date return of 12.6%, ahead of its 11% target."We expect to exceed this year's return target, even as we pull forward investments toward our 11-13% near-term goal — the next waypoints on our path to sustainable returns of 14-15%," CEO Jane Fraser said in a statement.Citi reported a profit of $2.85 per share in the third quarter, compared with analysts' average estimate of $2.66 per share, according to data compiled by LSEG.The bank said it has returned $4.1bn to shareholders including buybacks and dividends in the third quarter, accumulating share repurchases of $13.3bn this year.Bank stocks have come under pressure in recent weeks as a sharp rise in bond yields raised concerns that higher borrowing and funding costs could weigh on loan growth and dealmaking.Global investment banking revenue exceeded $90bn in the first nine months of the year and Citi was placed fifth among global banks by fees during the period, according to Dealogic.Citi's banking revenue, which includes corporate lending, was up 6%, at $1.74bn. But equity and debt issuance slowed late in the quarter. 

Jamie Dimon's two decades at the helm of JPMorgan Chase have rewritten industry record books and the Wall Street giant is now within striking distance of another landmark — becoming the ‌first bank ever to be valued at $1tn. Crossing the milestone will ​put the bank in a ‌club stacked with tech heavyweights such as Tesla, Meta and Broadcom, while ‌also raising investor ⁠expectations and leaving ‌little room for missteps. A stellar earnings report on ⁠Tuesday propelled JPMorgan shares to a record high. The lender, which reported the highest profit in history by a US bank, was last valued at around $919bn, dwarfing rivals. With dealmaking volumes set to end the year near the record haul of 2021, JPMorgan could see elevated investment banking activity for the rest of 2026, which may nudge it closer to the $1tn mark. CFO Jeremy ​Barnum said investment banking pipeline was robust, as "the current activity levels seem to be encouraging more activity". With a balance sheet bigger than its peers, the bank has leveraged its dominance ‌in Wall Street dealmaking and ⁠Main Street lending to ​capture gains from both economic engines. "The company benefits from a portfolio ​of leading financial services businesses, providing both diversification and durable competitive advantages," said Macrae Sykes, portfolio manager of Gabelli Financial Services Opportunities ETF. JPMorgan shares have long been viewed as carrying a "Jamie premium", which refers to the extra value investors attach to the bank because of its powerful CEO. While its board has ramped up succession planning in recent years, the stock continues to benefit from Dimon's influence. Despite having underperformed the S&P 500 and the S&P 500 banks indexes this year, JPMorgan trades at 14.63 times expected earnings over ‌the next 12 months, according ‌to data compiled by LSEG. That ⁠compares with 13.58 for the S&P 500 banks gauge. "There is no doubt that he ⁠has been instrumental in delivering strong ⁠shareholder returns. While the backdrop from the US economy has been helpful, the bank operates in very competitive markets so execution has been key," Sykes said. JPMorgan did not immediately respond to a request for comment. A milestone such as $1tn in market capitalization is mostly a symbolic victory, but its raises expectations for future execution. "If history is ​any guide, the trillion-dollar milestone does not guarantee a smooth path forward," said Fabien Yip, market analyst at IG, referring to Walmart's slip below $1tn after it hit that milestone in February. The bank may also face skepticism about the durability of its trading strength, which benefited in the latest quarter from market volatility sparked by the Middle East war. "We view shares as fairly valued," said Morningstar equity analyst Austin Taggart.

JPMorgan Chase reported a record second-quarter profit on Tuesday, as a wave of big-ticket ​IPOs and dealmaking helped drive investment banking fees ‌to their highest levels since 2021, while its trading desk capitalised on volatile markets.Revenue rose across all ‌business units at the ⁠bank. Investment banking rode a ‌sharp rebound in the US IPO market, led by ‌Elon Musk's SpaceX, which roared into the market with the largest listing in history. JPMorgan was among the lead underwriters on ⁠the deal."This strength is being supported by several tailwinds, including AI-driven capital investment, fiscal stimulus and the benefits of more efficient regulation," JPMorgan CEO Jamie Dimon said in a statement.Shares of JPMorgan, however, fell 2% in volatile premarket trading after the bank raised its forecast for 2026 expenses to $107.5bn from $105bn.The largest US lender posted a profit of $21.2bn, or $7.70 per share, in the three months ended June 30, compared with $14.99bn, or $5.24 per share, a year earlier.Profit was boosted by a $4.6bn gain tied to its stake in Visa. Markets revenue, which houses trading ​operations, surged 35% over the prior year.On an adjusted basis, its profit of $6.14 per share beat expectations of $5.85, according to estimates compiled by LSEG."The report is fine ... It's landing on a day when the tape is pretty sloppy," said Art Hogan, chief market strategist ‌at B Riley Wealth.Net interest income, excluding ​markets, rose 4% from a year earlier to $23.7bn in the quarter, while average loans climbed 10%.It ​raised its 2026 forecast for interest income to $96.5bn, excluding markets, from $95bn. Interest income, including markets, is expected to rise to $105.5bn this year, compared with $103bn earlier.Although banks have continued to describe consumers as resilient, the health of lower-income borrowers remains a key focus as higher interest rates and still-elevated living costs pressure household finances.Dimon said several risks are in focus, including geopolitical tensions and wars, sticky inflation, large global fiscal deficits and elevated asset prices.The results of large lenders such as JPMorgan Chase and Bank of America are seen as a barometer of the US economy, as they offer insight into consumer spending, borrowing and business activity.Investors are also closely watching succession planning at JPMorgan. Dimon plans to remain CEO for at least three more years, Reuters reported last month, citing a source.The bank's ‌leadership reshuffle in June elevated Doug Petno and ‌Troy Rohrbaugh to co-presidents and marked the retirement ⁠of Marianne Lake, long viewed by Wall Street as a leading contender to succeed Dimon.Revenue at the consumer and community ⁠banking business - now under the stewardship of Rohrbaugh - climbed ⁠8% in the second quarter.JPMorgan's investment banking fees jumped 30% in the second quarter from a year earlier, higher than the bank's earlier estimate.The bank was part of several landmark transactions during the quarter, including as co-adviser on NextEra Energy's $67bn merger with Dominion Energy and lead active bookrunner on Alphabet's $85bn equity offering.It also retained the top spot in global investment banking league tables, generating the highest investment banking revenue in the industry, according to Dealogic data.The value of global mergers and acquisitions announced ​so far this year has surpassed $3tn, according to Dealogic data, adding momentum to one of banks' biggest fee-generating businesses: Advising on deals.Rival Goldman Sachs and Bank of America also posted higher profits on Tuesday, thanks to strength in trading and dealmaking. Wells Fargo's profit was boosted by higher interest income.Markets remained volatile during the quarter as the conflict in the Middle East and disruptions to shipping through the Strait of Hormuz rattled investors and drove swings across asset classes.The jump in oil prices also rekindled concerns about inflation, prompting investors to reassess the outlook for Federal Reserve interest-rate cuts.JPMorgan's equity trading revenue surged 86%, while fixed-income trading revenue increased 6%.The recovery in investment banking has coincided with elevated market volatility, giving Wall Street ‌banks a boost across both businesses.Stronger ​dealmaking and equity issuance have supported fees, while active client trading has lifted markets revenue. 

Over the years JPMorgan Chase CEO Jamie Dimon has talked many times about succession - but a date to hand over the baton seemed elusive. This time, sources said, ‌the plan is real.Dimon plans to stay as CEO for up to three more years, with insiders hoping that the bank ​will name his successor - Troy Rohrbaugh or Doug Petno, ‌the bank's newly named co-presidents - ahead of that.Rohrbaugh, who has been tasked with running JPMorgan's massive consumer business, is seen as ‌having the lead internally, according to ⁠the views of two senior executives ‌at the firm. They added that Rohrbaugh's promotion to the other side ‌of the bank from the commercial and investment banking business suggests he's the frontrunner to take over the top job from Dimon.And when the time comes, ⁠Dimon would become executive chairman, a separate source familiar with the matter said, echoing what Dimon has said publicly and speaking on condition of anonymity because the discussions are private.The succession, if it were to come to pass, would end one of the longest-standing questions on Wall Street: Who will replace Dimon, the statesman banker who has built JPMorgan into the biggest and one of the most profitable US banks.Shareholders are prepared for Dimon to finally hand over, but want it to be done as smoothly as possible."My only request of the firm is that it is very clearly laid out and handled seamlessly," said Walter Todd, chief investment officer, Greenwood Capital in South Carolina, which owns JPM shares, describing Dimon's succession as "inevitable".Dimon ​himself has been vocal about succession, both publicly and in private. In a social meeting weeks ago at the bank's new headquarters in Manhattan, Dimon, unprompted, told a senior Wall Street executive about the "deep bench" of talent JPMorgan has to succeed him, a second source said. JPMorgan declined comment on the conversations.Dimon is expected to stay in charge ‌for up to three more years before transitioning to executive ⁠chairman, but a successor could be ​named earlier, within two to two-and-a-half years, one of the sources said. Every board meeting is devoting a significant amount of ​time to the succession question, the source said. After handing over the reins, Dimon will likely stay as executive chairman for a couple of years, the source said.Previously, Dimon had given varying timelines. He said in 2024 he envisioned an exit in less than five years, a similar message to that given in 2018. Earlier this year, he said he wanted to stay on at least five more years, in a comment his spokespeople said at the time was a joke. In February, he said he would remain for a few years as CEO.Spokespeople for Rohrbaugh and Petno declined to comment.RISKS OF WAITINGEven a two-to-three year timeline carries risks.The two executives stressed that a wait of up to three years could raise the risk of the bank losing potential successors, with one saying it would likely be a concern for the board.While JPMorgan awarded four of its top executives, including Petno and Rohrbaugh, multimillion-dollar retention pay packages, the bank's board would likely not want to lose them or any other potential successors during ‌the unofficial waiting period, one of the executives said.Numerous senior ‌executives including Matt Zames, Charlie Scharf and Bill Demchak left ⁠the firm during Dimon's tenure to take senior roles elsewhere.They did not immediately respond to a request seeking comment.If Rohrbaugh or Petno quickly impress, the bank ⁠could move more swiftly, the two executives said. One of the executives said ⁠that the view within the bank was that Rohrbaugh has the lead, with an impressive track record having come up through the ranks as a trader, although a separate source said that Petno should not be written off given his track record of bringing in large deals.On the betting platform Kalshi, Rohrbaugh has pulled ahead at 45%, with Petno at 34%.For Rohrbaugh, who built his reputation on trading floors, taking the CEO role would mean a big shift to the bank's sprawling suite of branches, credit cards and mortgages, a division that accounted for nearly 39% of its total revenue in the first quarter. The 56-year-old began his career as ​a foreign-exchange trader and joined JPMorgan in 2005.Petno, 61, meanwhile, takes sole charge of the commercial and investment bank after a 35-year career at JPMorgan. He is a seasoned banker who spent more than two decades in investment banking and led J.P. Morgan's Global Natural Resources Group. The division encompasses global banking, markets, payments and securities services, placing him at the helm of some of the lender's most profitable businesses.If the bank proceeds with an accelerated timeline, it would mirror a similar move at rival Morgan Stanley, where Ted Pick was chosen to succeed longtime CEO James Gorman more than two years after being appointed co-president.Still, shareholders are more than happy to see Dimon stick around. Eric Kuby, chief investment officer, North Star Investment Management Corp, which owns JPMorgan shares, said the shares "command a premium multiple" compared to other major bank stocks partly due to the Dimon factor."The market is well aware of his intentions to not run JPMorgan ‌for very much longer," Kuby said. "But ​we think he does a great job, so the longer he is steering the ship, the better." 

The race at ‌JPMorgan Chase to eventually succeed longtime CEO Jamie Dimon was reshaped on Thursday, as the bank elevated insiders Doug Petno ​and Troy Rohrbaugh to co-presidents while announcing the ‌retirement of senior executive Marianne Lake, who Wall Street saw as a top contender.The leadership changes narrow the field ‌of potential successors to the charismatic ⁠Dimon, who, after two decades at the ‌helm, wields unparalleled influence on Wall Street. His views on ‌the economy, regulation and financial markets are closely watched by investors and policymakers alike. The question of Dimon's eventual successor has for years been one ⁠of the most discussed transition sagas in corporate America, particularly as there is no clear timeline on Dimon's departure.JPMorgan said Rohrbaugh will become CEO of consumer and community banking, replacing Lake, who will retire after more than 25 years with the lender. Petno will become CEO of the commercial and investment bank. Both were previously co-CEOs of the commercial and investment bank.The bank also awarded Petno and Rohrbaugh one-time retention bonuses of $30mn each, while Jennifer Piepszak, chief operating officer, and Mary Erdoes, CEO of asset and wealth management, each received $20mn.According to a source familiar with the matter, the bank wanted to identify two of the three among Lake, Petno and Rohrbaugh and ​elevate them to co-president roles, and Lake retired after not securing one of those positions. Lake could not be immediately reached for comment."In the short term, Petno has a slight edge because he is more experienced and better known to the investors, but Rohrbaugh is being given the consumer business, which gives ‌him a wider range of experience - so it ⁠is possible they are grooming him ​for a bigger role in the next three years or so," said Wells Fargo analyst Mike Mayo. Mayo said he ​would not rule out Piepszak, who took herself out of the running last year, Chief Financial Officer Jeremy Barnum, or an external candidate.Lake had been floated by analysts and in media reports as a potential contender for the top job, and investors are wondering if she could find a top role at another bank or financial company."It wouldn't be surprising if she ends up at a competitor bank after some time," said Brian Mulberry, portfolio manager at Zacks Investment Management, which holds JPMorgan shares.During her time at JPMorgan, Lake served as the bank's CEO of consumer lending, as well as chief financial officer. She and Piepszak were among the executives who oversaw the integration of the failed First Republic Bank after JPMorgan bought it in 2023.The shakeup comes against a backdrop of a hazy exit timeline for Dimon, who became CEO of JPMorgan in ‌January 2006 and took on the role of chairman ‌a year later. Dimon said in 2024 he envisioned ⁠an exit in less than five years.Earlier this year,he said he wanted to stay on at least five more years, in a comment ⁠his spokespeople said at the time was a joke. In February, ⁠he said he would remain for a few years as CEO, and maybe a few after that, as executive chairman.Gerard Cassidy, managing director at RBC Capital Markets, said Dimon's lack of urge to retire affected staff decisions. "People have left JPMorgan over the years and they've replaced the folks that thought they were going to be Jamie Dimon's heir apparent and realized he wasn't ready to retire."The bank has regularly moved senior leaders between key divisions as part of its leadership development strategy, exposing executives to a broad range of businesses and positioning them for potential succession to ​the CEO role.The strategy contrasts with succession planning at Morgan Stanley, where CEO Ted Pick and the two other executives considered for the top job received one-time bonuses of $20mn each. A key distinction there, according to one person with knowledge of the process, was that former CEO James Gorman had announced plans to step aside, and the bonuses were awarded after Pick had won the top role.Dimon has often reiterated that the board is focused on succession planning, with a cadre of "extremely" qualified executives prepared to run it eventually.Still, Bank of America analyst Ebrahim Poonawala said Thursday's developments indicate Dimon will remain CEO for several more years."Dimon has appeared highly engaged in every aspect of running the bank and, we believe, is best suited to navigate the franchise through a period in which the banking industry is likely to see rapid change ‌on the back of the adoption ​of AI and digital asset technologies," he wrote. 

Days after the European Central Bank’s first interest-rate increase in three years, some of the world’s biggest banks and asset managers are positioning for it to reverse that move.JPMorgan Asset Management, UBS Group AG and RBC BlueBay Asset Management are among those arguing that swaps markets are pricing too many ECB rate hikes over the coming year, and underestimate the risk that tighter policy will push the euro-area economy into a downturn. That discrepancy — and the possibility of an eventual ECB U-turn — is creating opportunities to buy short-dated government bonds, they say.JPMAM for instance is bullish on short-dated European government bonds which have sold off in response to the policy-tightening bets, taking two-year German yields near two-year highs. Swaps pricing eased a touch on Friday as oil prices fell, but still see two more ECB hikes over the coming year, and then for rates to be held steady through 2027.“The more that the ECB hikes this year, the more likely they will have to cut in 2027,” JPMAM’s global strategist Hugh Gimber said.UBS strategist Reinout De Bock is betting the ECB will cut rates at least once between June 2027 and June 2028, and has positioned for that outcome by selling three-month Euribor futures expiring in June 2027 and buying equivalent contracts expiring June 2028. The futures market currently sees less than a 50% possibility of the ECB easing policy in that period.The ECB’s Thursday statement did acknowledge growth concerns, lowering estimates for economic expansion in 2026 and 2027. However, the bank still sees 0.8% growth this year, signaling it expects a turnaround from the contraction seen in the first quarter.The forecasts look too optimistic, Konstantin Veit at Pimco Europe GmbH told Bloomberg Television on Friday, adding he was “a bit surprised that there was not much discussion around the growth outlook.”Still, with inflation running above 3%, policymakers are sticking with a hawkish line for now. Some rate-setters have hinted another rate hike may come as soon as July, arguing that the inflationary fallout from the war is too hard to ignore. Its stance has led some observers to draw parallels with 2008 and 2011, when the ECB rushed to hike rates in response to an inflation uptick, only to pivot within months as growth deteriorated.“It could well be the case that markets start pricing in a relatively quick reversal of these hikes,” said Felipe Villarroel, a portfolio manager at TwentyFour Asset Management. The firm has increased the duration on its bond positions, essentially a bet on lower borrowing costs.He said any deal between the US and Iran to reopen the Strait of Hormuz would knock oil prices lower, weakening the case for inflation expectations to rise further.Optimism that the two sides are nearing an interim peace agreement knocked Brent crude to under $87 a barrel on Friday, the lowest level since early March. Bond yields slid across Europe, with two-year German rates down about six basis points.Mark Dowding, chief investment officer at RBC BlueBay, expects any rate hikes to be unwound next year, as weaker economic activity helps bring inflation back to target.“On this basis, we remain more comfortable with short-dated yields in the eurozone and continue to look for outperformance of bunds versus Treasuries on a relative basis,” he told clients. 

Retail traders largely sat out a record-setting advance in chip stocks in April. Now they’re diving in just as worries mount that the group’s rally may be losing steam.Individual investors boosted purchases of technology shares to the highest level in a year last week, according to positioning data from JPMorgan Chase & Co, with companies like memory chipmakers that benefit from all things artificial intelligence drawing the most interest. Hardware companies posted their second-largest inflow on record.While nothing prohibits the group from rallying further, a 60% leap in the Philadelphia Stock Exchange Semiconductor Index, or SOX, over the past six weeks made just about every valuation metric look stretched. For the mom-and-pop investors who waited until May to pile into the sector, it all presents the risk of a sudden shift in momentum that could saddle them with losses.“This earnings season validates the AI infrastructure trade as semis and memory chips delivered. Looking ahead, the market is increasingly priced for perfection,” said Dave Mazza, chief executive officer at Roundhill Financial Inc. “Retail re-engagement isn’t a bearish signal on its own, but it adds fuel to a move that’s come a long way and is starting to look parabolic.”The return of retail buyers marks a shift from earlier this spring, when many stayed on the sidelines during the market’s rebound after worries around the war in Iran pushed the S&P 500 Index to the cusp of a technical correction. Now, with peace talks between the US and Iran ongoing, the cohort is once again crowding into semiconductor and hardware names like Sandisk Corp, Micron Technology Inc, and Intel Corp. Furious momentum in the sector has driven the tech-heavy Nasdaq 100 Index up 25% in six weeks.“Semis are getting silly and are now in some cases as or more extreme than 1999,” Chris Verrone, head of technical and macro strategy at Strategas Securities LLC, said in a note to clients. “Parabolic charts can take a life of their own and we don’t pretend to know the day or the hour fortunes reverse, but positions should be protected and monitored vigilantly here.”The eye-popping advance in chip stocks is unmatched in other pockets of the market. In the broader S&P 500 Index, the proportion of stocks trading above their 200-day moving average — a technical measure of momentum — has fallen to 53% from 58% the week before, sending a signal to Strategas researchers that a narrow “melt-up” is unfolding in real time. By comparison, some 97% of stocks in the SOX Index are sitting above their long-term moving average.“Semiconductors are undeniably overbought — the most extended they have been versus their long-term trend since early 2000,” said Newedge Wealth chief investment officer Cameron Dawson.The SOX Index traded 2.2% higher in New York on Monday. The S&P 500 Index was little changed.The key debate for investors is whether the rally reflects a lasting structural shift or another move higher in a historically cyclical industry, she added. While the AI boom has drawn arguments that chipmakers deserve permanently higher valuations because demand will remain durable, Dawson still views the group as cyclical — albeit in the midst of what she describes as the largest and longest supercycle the industry has experienced.“Notably, this supercycle has been vastly underestimated since it began in 2023. It’s great while it lasts, but a moderation in demand will eventually come,” she said. “It’s a question of when, not if.”A look at how far the SOX Index is removed from its 200-day moving average offers one lens into just how exorbitant the momentum has become. The gauge is sitting 57% above the line, and it was this elevated just two other times since 1990 — in 1995 and 2000, according to John Kolovos, chief technical strategist at Macro Risk Advisors. Both instances preceded declines in the stock market, and the latter occurred ahead of the dot-com crash.That leaves investors in a tricky position: Risk-on momentum can continue for longer than expected, and selling because a group appears overbought risks missing out on significant upside, Kolovos explained. At the same time, “those who cling too tightly to momentum leadership risk losing control once the trend finally breaks.”Alexander Atlmann, global head of equities tactical strategies at Barclays Plc, is among equity market pros warning that betting against the rally may be premature. Altmann and his colleagues have been fielding questions from clients around whether it’s time to sell chipmakers. To him, signs of extreme euphoria are not yet widespread enough to suggest the trade has fully run its course.Shorting the VanEck Semiconductor ETF (SMH) “just strikes me as a career-limiting move at this particular juncture,” he said. 

His Excellency the Minister of Finance Ali bin Ahmed al-Kuwari held a series of bilateral meetings with a number of global financial institutions and banks, each held separately, in New York City during his current visit to the US, reports QNA. The meetings included HE al-Kuwari’s discussions with Chairman and Chief Executive Officer of BlackRock, Larry Fink; Chief Executive Officer of JPMorgan Chase, Jamie Dimon; and Chief Executive Officer of Citigroup, Jane Fraser. During these meetings, a range of financial and economic topics were reviewed, in addition to discussions on recent developments at both the regional and international levels, as well as the associated challenges, particularly those relating to issues of mutual interest between the two sides. 

JPMorgan Chase's profit exceeded analysts' estimates in the ‌fourth quarter on Tuesday as its traders cashed in on volatile markets.Markets swung sharply in the last ‌three months of 2025 as concerns about a ‍bubble in AI stocks intensified after two years of broad gains. CEO warnings that equities were due for a correction also encouraged investors to rebalance their portfolios."The US ⁠economy has remained resilient," CEO Jamie Dimon said in ⁠a statement. "While labour markets have softened, conditions do not appear to be worsening. Meanwhile, consumers continue to spend, and businesses generally remain ‍healthy."Markets revenue at JPMorgan climbed 17% in the fourth quarter, as equity surged 40%, driven by higher revenue across products, particularly in Prime. Fixed income climbed 7%.The prime brokerage business on Wall Street has benefited from surging valuations of companies across sectors.Bond markets also remained jittery as uncertainty persisted around when and how much the US Federal Reserve would cut rates.Meanwhile, average loans climbed 9% in the quarter.The bank's shares were last up 0.5% in volatile premarket trading following the results. The stock surged 34.4% in 2025, outperforming the broader equity markets."I wouldn't expect a whole lot out of JPM stock ‌today, as the stock is coming off a great year where the bar for perfection is set pretty high," said David Wagner, head of equities and portfolio manager at Aptus Capital Advisors, which holds shares of the bank."Today's strong results reflect that the bar can be met, ‍but a lot is currently priced into the ⁠stock."The largest US bank earned $5.23 ‌per share in the quarter ended December 31, on an adjusted basis, beating Wall Street expectations of $5, according to estimates compiled by LSEG.JPMorgan recorded a $2.2bn provision in the reported quarter tied to its agreement with Goldman Sachs to take over a credit card partnership with Apple.JPMorgan's investment banking fees fell 5% in the quarter, easing from a bumper prior year when a surge in deal activity helped lift the bank to its highest-ever annual profit.Bankers are optimistic that a pickup in dealmaking will continue through 2026, driven by record-high equity markets and expectations of interest rate cuts."Investment banking was a bit disappointing but expect forward commentary to be more constructive, while average loan growth accelerating bodes well for the lending side," said Stephen Biggar, an analyst at Argus Research.The US IPO market reached its highest level in 2025 since the 2021 peak, in terms of both deal volume and funds raised.JPMorgan worked on several ​high-profile transactions during the quarter, including advising Warner Bros ‌Discovery on the $82.7bn deal for its studio and streaming assets with Netflix and Kimberly-Clark on its $48.7bn acquisition of Kenvue.It was also a lead underwriter on medical supplies giant Medline's ⁠IPO, the largest listing globally in 2025.JPMorgan extended its ‍run as the world's top investment bank, earning the highest fees for the year, according to data from Dealogic.Net interest income - the difference between what a bank earns as payments on loans and gives out on deposits - rose 7% in the fourth quarter to $25.1bn.While lower rates can dent interest income, they can also encourage borrowing. The bank expects 2026 interest income, excluding markets, of about $95bn.Large lenders, including JPMorgan Chase and Bank of America , provide a gauge of the US economy, shedding light ​on consumer spending, borrowing and business activity.Rivals are set to report results later this week, giving investors a broader view into the health of the economy.The bank's deal with Goldman to issue Apple's card is expected to strengthen JPMorgan's foothold in credit cards and add to a long list of strategic wins for Dimon, who has turned the bank into a leading player across retail and investment banking.The deal comes at a critical juncture for the credit card industry, which could face a sharp shift if a proposal by US President Donald Trump to cap interest rates at 10% moves forward. While Trump has said he expects companies to comply by January 20, Wall Street analysts remain doubtful the measure can be implemented without congressional approval.A banking ⁠industry body warned last week that the move could tighten access to credit for consumers and small businesses and drive borrowers toward unregulated lenders.

Investors’ daily waves of option sales are poised to slow a sustained stock rally back to record highs.Option-selling strategies have abounded in 2025, from exchange-traded fund overwrites to systematic zero-day to expiry trades and bank Quantitative Investment Strategies. On the other side, the dealers typically rebalance their positions each day by selling into rallies and buying dips.The slowing effect may be felt more on gains than drops, as JPMorgan Chase & Co strategists led by Bram Kaplan noted an increasing preference for selling calls over puts in recent weeks. Meanwhile, UBS Group AG points to a particular strategy — selling so-called iron condors — that is popular with retail traders.With investors focused on ever-shortening windows of volatility to manage risks, the influence of contracts expiring from zero to five days away has surged. Zero-day to expiry options in particular keep scaling new heights at about 60% of overall S&P 500 Index volume.The short iron condor strategy — where a trader sells a call spread above the current market level and a put spread below it — has become popular with some retail traders, boosting volumes. Positioning on one-day to expiry option trades in the S&P 500 — specifically via the short iron condors — may have helped contain recent rallies, according to derivatives strategists at UBS.“This 1DTE iron-condor flow is now leaving a very clear imprint on SPX options positioning profiles, to the extent that it may be influencing underlying price action,” said Kieran Diamond, derivatives strategist at UBS.The iron condor strategy is set up to collect premium as long as the market stays in a narrow range. Market makers holding the opposite side of such trades have more hedging to manage when the underlying price approaches the nearer call strike in the final 30 minutes of trading. The size of the spreads and the distance between the strike prices has increased in recent months, according to UBS.While overall market maker gamma positioning from 0DTEs is dynamic during trading hours, much of the flow is still from investors selling options. Dealer positioning is most extreme on the upside call strikes. The lower volatility on those increases the gamma per unit of notional, making the dealer hedging impact more pronounced.“The most significant risk sits to the upside, with SPX market makers managing very large long gamma exposure from the calls that the condor traders have sold to them,” said Diamond. “When managing this risk, market makers need to sell equities as the index moves up toward the strike, which makes it incrementally harder for the S&P to rally during the trading session.”The end of the day is particularly fraught. In the most extreme example from Oct. 24, S&P 500 dealer gamma reached a peak of around $90bn 10 minutes before the close, according to Diamond. This means that a roughly 0.1% move in spot would generate around $10bn in flow to be bought or sold.While that can be absorbed by the futures market, it isn’t without a price impact. In theory, markets may be more likely to gap-up outside of regular hours in Asia or Europe, as the dealer hedging needs subside at the close every day.“There were a number of sessions through October when the market seemed to struggle to break through the region where this long gamma is concentrated, but then rallied after the close once the majority of the options risk had expired,” said Diamond.That may offer opportunities to exploit such price distortions, for example buying a one-day option at the close every day and selling it back at the open the next morning. Dealer gamma resets daily from this flow, so positioning tends to flatten around the end of trading at 4 pm New York time.Some are sceptical about the market impact of a particular option strategy like the iron condor.“Of the 25 or so different things that are pushing markets in different directions, this is one of the 25,” said Chris Murphy, co-head of derivatives strategy at Susquehanna International Group.Murphy said it was simply “one of many factors” influencing the market. “It gets more attention than it deserves.”Also, there are questions about the sustainability of such systematic short option flows, especially if they are retail driven.“Any systematic short-option strategy generally harvests premium pretty well until a high volatility environment realises and then it kills the trade via convex losses,” said Garrett DeSimone, head quant at OptionMetrics. “Even if you have great risk management and you can time the exit points, you will likely end up being sidelined for such a long period that your investors will likely lose patience and redeem.”

The US bank JPMorgan has expanded in Dubai as part of a broader push to grow and do more business with medium-sized companies, an executive told Reuters, as competition in the Middle East intensifies.The move, not previously reported, is a challenge to competitors such as Citigroup, and comes after JPMorgan recently devoted more resources to coverage of so-called midcaps in Austria and Poland."There's a global focus on doing more in the midcap space," Stefan Povaly, London-based co-head of corporate banking for Europe, the Middle East and Africa, said. Midcaps give JPMorgan another revenue stream beyond its traditional focus on the biggest blue-chip firms."The Middle East is of course a priority... This is the first step for an expansion into the midcap space," Povaly said.Global financial firms have increasingly set up operations in the Middle East to tap into oil wealth and growing regional markets. Barclays recently announced an expansion into Saudi Arabia, while Goldman Sachs opened an office in Kuwait.Citigroup first opened in the UAE in 1964, and added commercial bank activities in 2007. Speaking about competition in general, Alex Stiris, head of Citi's commercial banking in Europe, the Middle East and Africa, told Reuters that Citi sees the UAE as a location with one of the greatest opportunities for increasing market share and that his bank has an ingrained "natural advantage"."We have seen more competition come into the UAE," he said, not referring to any individual firm."Obviously the more competition, the more we have to be on our tiptoes. So it worries me to some extent," he said. "We can't rest on our laurels.""We are investing selectively," Stiris said. "Investing is not just in terms of just adding more headcount. It's also in terms of just looking at the people we have, and in some cases, just upgrading people." "There's also investing in terms of capital,” he added.Elsewhere, JPMorgan is in the early stages of evaluating a move to increase covering midcaps in Turkey."Over time, we could look to hire bankers dedicated to midcap clients in the country," Povaly said.JPMorgan has relocated Tushar Arora, a banker who has been with the US lender for more than a decade, from London to take up a Dubai role as the first in a team to focus on smaller venture capital-backed companies.The activity follows a push to Poland with the hire of Marcin Pietrucha from Santander, who has built a team based in Warsaw and other hubs.In parallel, JPMorgan is seeking more midcap business in Austria, headed by banker Philippe Bull based in Frankfurt.JPMorgan has a large presence in Germany, in part for coverage of the country's medium-sized Mittelstand firms.JPMorgan has been on an expansion course in Europe. The bank this week officially opened an office in Berlin with space for 400 staff ahead of its launch of a digital retail bank.Last week, German regulators imposed a record fine on JPMorgan for deficiencies in its anti-money laundering controls, reflecting the scale of its operations in the country.