The CEO and president of Jpmorgan Chase, Jamie Dimon, made gestures while he speaks during the supervision audience of the Banque, Housing and Urban Business Committee in the United States, on Wall Street companies in Capitol Hill in Washington, DC
Evelyn Hockstein | Reuters
JPMorgan Chase CEO Jamie Dimon said on Friday that he expects corporate profits to drop in the midst of uncertainty created by President Donald Trump’s trade negotiations.
During a call with journalists to discuss the income from the first quarter, JPMorgan’s financial director Jeremy Barnum said that he had not seen a reason to follow the bank’s advice, which depends on how the economy and interest rates were taking place.
His boss, Dimon, then intervened, speaking of the larger business world: “I would just add businesses, some have removed their advice. I expect to see more.”
“Analysts have generally reduced their profit from their 5%S&P estimate,” said Dimon in recent days. “I think you will see it going down a little more.”
Later Friday, Dimon said he expected him to expect analysts to reduce their S&P 500 profits estimates for a 5% growth to become stable, then as much as 5% negative “probably the following month”.
Enterprises will publish profits in the coming weeks, giving managers the possibility of updating investors on their prospects for a period of increased uncertainty. The markets whipped since Trump announced a set of radical prices on American trade partners last week and remained volatile as American-Chinese tensions intensified.
Already, companies exposed to the consumer, including Walmart,, Delta And Frontier Airlines has rekindled in certain parts of their advice to investors.
The uncertainty is to ensure that customers withdraw from acquiring companies and make investments when they adopt an expected attitude, said Dimon and Barnum.
Anecdotal examples suggest that “people are cautious,” said Dimon. “You know, people take up the offers, not just the big ones, but the companies on the intermediate market are very careful in terms of investment.”
Barnum added that the environment has led companies to lower long -term plans in favor of “short -term optimization of supply chains”.
“This level of uncertainty of policies is a difficult problem to plan in the long term,” said Barnum.
Meanwhile, consumers resisted the first quarter, and more recently, there are signs that they have accelerated purchases on concerns that prices will make the articles more expensive, said the financial director.