In­vestors on alert as JP Morgan kicks off earn­ings sea­son

The Daily Telegraph - Business - - Business - writes Lucy Bur­ton.

◆ Bri­tish banks will be keep­ing a close eye on US ri­val JP Morgan to­day as it kicks off Wall Street’s earn­ings sea­son,

Rev­enues in banks’ mar­kets busi­nesses are ex­pected to rocket as a re­sult of in­creased trad­ing dur­ing the coro­n­avirus cri­sis, while the boom in debt deals is forecast to off­set the global plunge in M&A.

JP Morgan chief Jamie Di­mon, the long­est-serv­ing bank­ing boss on Wall Street, said when the firm re­ported its first-quar­ter re­sults in April that it was brac­ing for a “fairly se­vere re­ces­sion” as it put aside an ex­tra $6.8bn (£5.4bn) for po­ten­tial credit losses.

He said the com­pany, which made a record $36.4bn last year, may have to axe its div­i­dend if Amer­ica was gripped by a deep re­ces­sion. Cut­ting the div­i­dend would be un­prece­dented given it did not even scrap pay­outs dur­ing the 2008 fi­nan­cial cri­sis.

UK banks, which be­gin re­port­ing later this month, will be closely watch­ing their US ri­vals.

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