Good morning. Today we are breaking down the CEO of JPMorgan's annual letter to shareholders — what he thinks about Russia, what he's predicting, and where things stand today.
Let's dive in.
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1. JPMorgan faces $1 billion in losses on exposure to Russia, according to Jamie Dimon. In his annual shareholders letter, Dimon explained that exposure to the warring nation will come at a steep cost for the global financial firm.
JPMorgan is pulling out of the country, along with a slate of other Western banks. The war in Ukraine, Dimon wrote, is set to slow the development of the global economy.
He called for the West to impose more sanctions on Russia, explaining that added restrictions will magnify the ones already in place. The war has already catalyzed a refugee crisis, and placing more pressure on Moscow is a necessary step.
"Along with the unpredictability of war itself and the uncertainty surrounding global commodity supply chains, this makes for a potentially explosive situation," Dimon wrote.
He noted that the war has highlighted the importance of economic relationships and trade, predicting that the current conflict will spur decades' worth of repercussions. But security concerns, Dimon wrote, should remain top of mind.
"The war in Ukraine reminds us that in a troubled world, national security always becomes the paramount concern," Dimon wrote.
In other news:
2. Global shares are in the red so far today. With a number of Fed speakers coming up, the focus is on inflation and what the impact on the economy might be if the West hits Russia with more sanctions. Here's what's happening today on the markets.
3. Earnings on deck: Nine Energy Service, Acuity Brands, and Trilogy Metals, all reporting.
4. Investors should buy these stocks right now because they are uniquely protected from the rising wage pressures that will erode the profits of their rivals. Morgan Stanley analysts said these companies will perform well as a "structural uptrend in wages" — see the list here.
5. Twitter's stock rally after Elon Musk's big investment is an overreaction from people who think a sale could be possible, according to Bernstein. Analysts said the investor reaction to Musk's 9% stake is a bit extreme. "We believe the fundamentals and challenges with Twitter remain broadly the same."
6. The UK said it's ready to regulate stablecoins for payments. The Economic Secretary to the Treasury said the British government sees significant potential in digital assets — and it's eyeing cryptocurrencies like bitcoin next.
7. The bear market rally in stocks is over, according to Morgan Stanley. After paring some losses taken earlier in the year, investors need to stay defensive as US manufacturing activity slows, the firm said. Here's what to know.
8. A 28-year-old YouTuber who said he saves over 50% of his income living in Toronto explained his approach. Steven Antonioni saved $90,000 over four years, enough to quit his 9-to-5 and pursue video-making full-time. He broke down the strategies that allowed him to achieve financial independence.
9. Ethereum is on the verge of a major upgrade that will result in a 90% decrease in ether token supply issuance. A crypto venture capitalist told Insider why ether's price and staking yield could go up dramatically after "the merge." Here's what you want to know.
10. The economy is sending mixed signals about the potential for a recession. While the number of internet searches for "recession" has skyrocketed, the US continues to add jobs every month and monetary policy is still expansionary, said a University of Michigan economist. "No, this is not recessionary. At all."
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Curated by Phil Rosen in New York. (Feedback or tips? Email [email protected] or tweet @philrosenn.)
