JPMorgan Chase released its Q3 earnings on Friday, slightly beating analysts’ expectations for revenue and profits. The bank reported $33.49B in revenue, up 10% YoY. Profit fell 17% to $9.74B or $3.12 a share. More: - JPMorgan added a net $808M in loan-loss reserves.
- The bank booked $959M in losses on securities after selling Treasuries and mortgage bonds to reposition its portfolio.
- JPMorgan’s net interest income came in at $17.6B, up 34% YoY.
- CEO Jamie Dimon noted that consumers and businesses were doing well and were in better shape today compared to the 2008 global financial crisis.
- He warned that the U.S. could go into recession in 6-9 months.
- JPMorgan shares were up ~2.7% during afternoon trading on Friday.
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British Prime Minister Liz Truss fired Finance Minister Kwasi Kwarteng and scraped vital parts of her government’s tax-cutting strategy. The move comes weeks after Kwarteng unveiled several tax-cutting initiatives that caused a lot of volatility in the U.K.’s bond and sterling markets due to the amount of borrowing needed to fund the policy package. More: - Truss canceled her promise to reverse the corporate tax increase former Prime Minister Boris Johnson had implemented.
- Johnson had raised the corporate tax rate from 19% to 25%.
- Truss’ reversal of the promised reduction is estimated to provide the U.K. Treasury with about £18B ($20.1B) by 2026.
- Kwarteng was fired on Friday after less than six weeks in the role, along with Chris Philp, the chief secretary to the U.K. Treasury.
- Truss has named Jeremy Hunt, the former health secretary and foreign secretary, as Kwarteng’s successor and Edward Argar as Philip’s successor.
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Morgan Stanley’s shares fell more than 4% after missing analysts’ expectations for revenue and profits. The bank released its Q3 earnings on Friday, reporting $13B in revenue, down 12% compared to last year. Profit came in at $2.63B, or $1.47 a share, down nearly 30% YoY. More: - Morgan Stanley’s investment banking revenue came in at $1.28B, down 55% YoY.
- Investment management revenue was $1.17B, down 20% YoY.
- Trading revenue was $4.5B, down 3% YoY.
- Wealth Management, which includes the bank’s online trading platform E*TRADE, reported $6.1B in revenue, up 3% YoY.
- Morgan Stanley reported $35M in provisions for credit losses.
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Kroger has agreed to buy its supermarket rival Albertsons for $24.6B. Yesterday it was reported the two companies were in talks about merging their operations to create the largest U.S. supermarket operator and better compete with giants like Walmart and Amazon. More: - Kroger is paying $34.10 per share for Albertsons, which represents a ~19% premium on the company’s Thursday close price.
- The deal’s value includes Albertsons’ $4.7B net debt.
- As part of the deal, Albertsons will pay a special cash dividend of up to $4B to its shareholders.
- Kroger CEO Rodney McMullen will serve as the CEO and chairman of the combined company.
- Together, Kroger and Albertsons have more than 700,000 employees across 5,000 stores.
- Kroger shares were down ~5.6% during afternoon trading on Friday, while Albertsons shares were down ~7.5%.
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The U.K.'s competition regulator, the Competition and Markets Authority (CMA), is investigating U.S.-based ViaSat's planned acquisition of U.K.-based Inmarsat. The CMA is concerned that the tie-up would make it harder for rivals like OneWeb and SpaceX to compete in the aviation sector, leading to higher costs for in-flight Wi-Fi. More: - ViaSat offers connectivity and communications services to residential, aviation, and defense customers in North America.
- Inmarsat offers satellite-based communications services to shipping, aviation, and government departments, including Britain's Ministry of Defense.
- Last November, ViaSat announced it was buying Inmarsat for $7.3B.
- The CMA said its initial investigation revealed it was very difficult for airlines to switch satellite providers once they had installed a provider's network equipment.
- In a statement responding to the investigation, ViaSat and Inmarsat said they were confident their merger would increase the availability of more affordable, faster, and more reliable in-flight connectivity (IFC) globally to operators, airlines, and passengers.
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Citigroup said it would end its institutional banking operations and nearly all its banking operations in Russia next quarter. The bank made the announcement during its Q3 earnings call on Friday. Since the start of the year, Citi has reduced potential losses related to its Russian exposure from $4B to $2B. More: - Last year the bank sold its Russian consumer banking arm as part of a restructuring effort.
- Citi reported $18.51B in revenue for Q3, up 6% YoY.
- The bank’s profits fell 25% in the quarter to $3.48B, $1.63 a share.
- Citi reported a $520M pretax gain related to the sale of its Asia consumer business.
- The bank added a net $370M in loan-loss reserves.
- Citi shares were up ~1% during afternoon trading on Friday.
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- Wells Fargo released its Q3 earnings on Friday, reporting $19.5B in revenue and a 30% drop in net income to $3.53B. The bank set aside $784M in loan-loss reserves after reducing its provisions by $1.4B last year.
- In a series of tweets on Friday, SpaceX CEO Elon Musk noted the ongoing costs of the Starlink terminals his firm supplied to Ukraine at the onset of the war between the country and Russia. Musk said the operation in Ukraine has cost SpaceX $80M so far and would exceed $100M by the end of the year.
- Beyond Meat COO Doug Ramsey has left the company following his arrest for allegedly biting a man’s nose and threatening to kill him. Beyond Meat suspended Ramsey shortly after the incident.
- UnitedHealth reported $80.9B in revenue in its Q3 earnings released on Friday, up 12% YoY. The healthcare insurance giant reported profits of $5.26B, or $5.55 share, beating analysts’ expectations.
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 |  | Vanessa Omeokachie is a Freelance Writer for Inside.com. She writes the Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, exploring cities, and traveling. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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