Core Viewpoint - Major U.S. banks are resisting President Trump's directive to lower credit card interest rates, indicating a potential conflict as he prepares for a global appearance at Davos [1][2]. Group 1: Bank Responses - Executives from JPMorgan Chase and Citigroup have stated that instead of complying with a 10% interest rate cap, they may close many customer accounts, with Citigroup's CFO Mark Mason emphasizing that such a cap would limit credit access for those in need and negatively impact the economy [2]. - JPMorgan's CFO Jeremy Barnum mentioned that the banking industry is prepared to defend itself legally if necessary, indicating that all options are being considered in response to the proposed interest rate cap [3]. Group 2: Political Context - President Trump has intensified his criticism of banks, claiming they are exploiting credit card borrowers, as part of his strategy to address voter concerns about affordability ahead of the midterm elections [4]. - Despite the threats from Trump, bankers and lobbyists have reported that they have not received any formal guidance from the Trump administration regarding the interest rate cap, leading to speculation that the administration may not be serious about pursuing this policy [5].

JPMorgan Chase & Co. (NYSE:JPM) is set to report its fourth-quarter results before markets open on Tuesday, kickstarting the bank earnings season. Leading analysts expect the company to set the tone for the entire industry in 2026, with several key catalysts lining up. Dealmaking Set To Replace Rate-Driven Profits? “The story for 2026 is really going to be about deal-making,” said Alexis Garcia, Senior Editor at Investor’s Business Daily, noting that investment banking and trading revenue will be a key hi ...

Group 1 - The year 2025 was favorable for American banks, especially the Big Four: JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, all of which outperformed the S&P 500 index [1] - JPMorgan Chase experienced a stock price increase of over 34% in 2025, marking it as a significant player despite not having the highest stock appreciation among the Big Four [2] - Consistent better-than-expected results contributed to JPMorgan's success, as it beat analyst profitability estimates in every quarter reported in 2025 [3][8] Group 2 - JPMorgan Chase passed the Federal Reserve's annual stress tests, reinforcing its reputation for solid business operations and allowing for a 7% increase in its quarterly dividend to $1.50 per share, the highest among the Big Four [4][5] - The bank's strong performance in capital markets was a key advantage, generating nearly $4.1 billion in investment banking revenue in the first half of 2025, significantly ahead of Bank of America's $2.7 billion [6] - The favorable conditions in the capital markets, despite challenges such as high interest rates and tariff uncertainties, benefited JPMorgan Chase and were recognized by investors [7]

Core Viewpoint - JP Morgan Chase & Co. reported a decline in net income for the fourth quarter, but adjusted earnings per share exceeded analyst expectations, indicating resilience in its financial performance despite challenges [2][3]. Earnings Snapshot - The company reported a net income of $13.0 billion, or $4.63 per share, which is a 7% decrease year over year [2]. - Adjusted earnings per share were $5.23, surpassing the analyst estimate of $4.92 [2]. - A $2.2 billion credit reserve was established for the forward purchase commitment of the Apple credit card portfolio, impacting earnings [2]. - For fiscal 2026, JP Morgan expects net interest income of approximately $103 billion and net interest income excluding Markets of about $95 billion [2]. Analyst View - Goldman Sachs analyst Richard Ramsden maintained a Buy rating with a price forecast of $386, citing strong loan growth trends of 4% sequentially that supported the positive net interest income outlook [3]. - Following the results, Ramsden raised the 2026 and 2027 Performance Profitability Net Revenue (PPNR) estimates by 2% and 3%, respectively, and increased EPS by 3% due to higher net interest income and fee income [4]. - The analyst introduced EPS projections for 2028 and expects the bank to maintain Return on Average Tangible Common Equity (ROTCE) above the ~17% medium-term target, with estimates around 20% and 21% for 2026 and 2027, respectively [4]. Market Reaction - Despite the generally positive results, shares of JP Morgan Chase were down 1.00% at $307.80, with expectations that the stock may remain range-bound until there is more clarity on credit card APR limits and the Card Competition Act [5].

Core Insights - The article discusses the expertise of an independent investor in the Indian and US equity markets, highlighting their qualifications and research focus in various financial areas [1]. Group 1: Investor Profile - The investor holds a CFA Charter and a PhD in Finance from the University of Durham, U.K. [1] - They are an Honorary Associate Professor in Finance and Corporate Governance at Brunel University London [1]. - The investor runs a YouTube and Podcast channel titled "The Stock Doctor," where they share insights on the US and Indian markets weekly [1]. Group 2: Research Focus - The investor actively conducts quantitative research in US equities, Behavioral Finance, Corporate Governance, Activist Hedge Funds, Cryptocurrencies, and M&A [1]. - Their research has been published in top-ranked peer-reviewed journals, indicating a strong academic and professional background [1].

Core Insights - The healthcare sector is optimistic about 2026, with expectations of better performance compared to previous years due to settled drug pricing issues, falling interest rates, and promising scientific advancements [3] Company Updates - Novo Nordisk plans to expand its incretin market with the introduction of the Wegovy oral pill and its injectable version in 2026, despite anticipating price pressures due to a recent drug pricing deal with the Trump administration and the introduction of cheaper generics [5][6] - Bristol Myers Squibb aims to deliver up to 10 new products by the end of the decade to offset losses from upcoming exclusivity expirations of blockbuster drugs, with a diverse portfolio in late-stage development [7][8] - Pfizer is heavily invested in obesity treatments following its $10 billion acquisition of Metsera, planning to launch 10 late-stage studies of obesity products by the end of the year [11][12] Business Development Strategies - Novo Nordisk is focusing on volume growth to counteract price cuts and is actively seeking complementary assets to enhance its pipeline [6] - Bristol Myers Squibb is casting a wide net for business development, aiming to build on its core therapeutic areas and pursue innovative science for challenging diseases [10] Collaborations and Investments - Eli Lilly and Nvidia announced a joint investment of up to $1 billion over five years to create a lab in San Francisco for AI-driven drug discovery [14] - AbbVie has reached an agreement with the Trump administration to lower drug prices and invest $100 billion domestically over the next decade, while also licensing an experimental cancer therapy from RemeGen for $650 million upfront, potentially worth $5.6 billion [14]

Core Viewpoint - Oxford Biomedica has received an unsolicited cash offer from EQT-managed funds for all of its shares [1] Company Summary - Oxford Biomedica is a British manufacturer specializing in cell and gene therapy [1]

Core Viewpoint - Major U.S. banks are warning that President Trump's proposed cap on credit card interest rates could negatively impact lower-income consumers, the economy, and their profitability [1][2]. Group 1: Bank Executives' Opinions - Executives from JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo agree that while affordability is a concern, capping credit card interest rates is not the appropriate solution [2][3]. - Citigroup's outgoing CFO Mark Mason stated that an interest rate cap could lead to a significant economic slowdown and emphasized the need for collaboration with the administration on affordability issues [3]. - Bank of America CEO Brian Moynihan argued that lowering interest rate caps would restrict credit availability, resulting in fewer credit card approvals and lower credit limits for consumers [4]. Group 2: Market Reactions - Shares of Wells Fargo, Bank of America, Citigroup, and JPMorgan Chase have experienced declines between 5% and 8% over the past week [5]. - JPMorgan and Citigroup reported a decline in net income compared to the fourth quarter of 2024, while Wells Fargo and Bank of America saw an increase [5]. Group 3: Presidential Proposal - President Trump proposed a one-year cap on credit card interest rates at 10%, threatening banks with violations if they do not comply by January 20 [6]. - Analysts have raised questions about how the cap would be implemented without an executive order, voluntary action, or legislative approval [6]. Group 4: Impact on Consumers - JPMorgan CEO Jamie Dimon highlighted that the proposed cap would have a dramatic impact on subprime customers [7]. - Wells Fargo CEO Charles Scharf expressed alignment with the goal of improving affordability and finding solutions to assist consumers [7].

I analyze oil and gas companies, related companies, and JPMorgan Chase in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies -- the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that is not published on the free site. Interested? Sign up here ...

Group 1 - Major indexes have experienced a decline, breaking a three-session winning streak due to geopolitical concerns and worries over Federal Reserve independence [1][3] - Fundstrat's Tom Lee advises investors to monitor signals from Washington to identify outperforming stocks early in the year [2][3] - Lee identifies credit-card companies, the Federal Reserve, and institutional buyers of mortgages as the three "losers" in the current market environment [4][6] Group 2 - Credit-card companies such as Capital One, Synchrony Financial, Citigroup, JPMorgan Chase, and Bank of America faced declines after President Trump proposed a 10% cap on interest rates for credit-card balances [4][5] - The inquiry into Fed Chairman Jerome Powell by the Department of Justice has raised concerns about the independence of the Federal Reserve, which Lee emphasizes is crucial for investors [6] - A potential "winner" identified by Lee is the mortgage sector, as Trump aims to enhance affordability for Americans, leading to increased investments in builder stocks and home-goods retailers like Wayfair, which has risen 18% in 2026 [8]