JPMorgan Chase & Co. (JPM) is bolstering its corporate banking team across Asia to capitalize on increasing business prospects from intra-Asia trades, the innovation economy, and payment services. The bank plans to add 10% to its headcount in Asia, focusing on Southeast Asia, India, and North Asia. The move reflects JPMorgan’s strategic focus on emerging growth economies and the burgeoning innovation economy in the region.
JPMorgan Chase is reportedly in discussions with Apple to become the new issuer of the Apple Card, potentially replacing Goldman Sachs. Negotiations are ongoing, and a deal could still be months away as details like the price and agreement with Goldman Sachs are yet to be finalized. JPMorgan is looking for concessions from Apple and is willing to pay less than face value for the outstanding balances in the Apple Card program.
The JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC) offers investors a cost-effective way to gain exposure to the Small Cap Value segment of the US equity market. This passively managed ETF, launched in November 2020, boasts a low expense ratio and a diversified portfolio, making it a compelling option for long-term investors seeking exposure to this dynamic segment.
JPMorgan analyst Samik Chatterjee observes mixed demand signals for the iPhone 16 series, noting that while overall demand seems in-line with last year’s iPhone 15, Pro models are experiencing a slightly softer start. The analyst highlights the importance of the Pro Max model’s extended lead times, indicating continued strong demand for high-end devices.
Following recent pressure on North American steel companies, JPMorgan sees a potential shift with improved interest rates and a stable political landscape ahead. The firm upgraded ratings for Nucor, Steel Dynamics, and US Steel, citing attractive valuations and potential for growth. While challenges remain in the market, JPMorgan highlights the positive outlook for certain companies and offers insights into their investment opportunities.
This week saw significant developments in the financial and political landscape, with stories ranging from the Federal Reserve’s potential pause on rate cuts to JPMorgan’s warning about the stock market’s reaction to these cuts. Additionally, the week brought news of sluggish job growth, criticism of proposed spending cuts, and Kamala Harris’s new small business initiative.
JPMorgan advises investors to take a long position in Kyndryl (KD) and a short position in DXC Technology (DXC), citing Kyndryl’s strong growth potential and DXC’s ongoing challenges. The firm highlights Kyndryl’s structural advantages, including impressive profitability and revenue growth since its spin-off from IBM, while DXC struggles with a declining legacy business and turnaround plans.
Endava Plc, a UK-based IT services company specializing in digital transformation, is gaining momentum in the sector. JPMorgan analyst Tien-tsin Huang has named it a ‘top pick’ with significant potential in digital IT for the second half of 2024. Endava’s strong growth prospects are fueled by the increasing need for digital transformation across various industries, particularly in payments, banking, and telecoms.
Despite growing calls for de-dollarization, JPMorgan’s Joyce Chang argues that the US dollar’s dominance remains strong, supported by robust financial systems. However, she highlights emerging trends like diversification in commodity markets and the rise of digital payment systems as potential threats to the dollar’s long-term hegemony.
JPMorgan has cautioned that anticipated Federal Reserve rate cuts may not significantly boost stock markets. The firm believes these cuts will be a response to slowing economic growth, potentially limiting their positive impact on equities. This perspective contrasts with other analysts who predict a significant stock market rally following the Fed’s easing of its policy.
