Podcast – Napier Port IPO | JP Morgan

2 August 2019

Global markets sold off overnight with Wall Street abruptly revers​ing early​ gains  as U​S ​President Donald Trump tweeted that he would impose an additional 10% tariffs on $300 billion in Chinese imports, sending the long-running ​U​S​ ​China trade war that has rattled markets for months back to cent​re ​stage. 

​This week's podcast ​discusses Port of Napier, will it be the little IPO that beats the market? to listen CLICK HERE.

Stock in Focus: JP Morgan (JPM:NYSE)

​​​​​​​​​​​​​​​​​​​​​JP​ Morgan (JPM) beat expectations on both on the top and bottom line in its 2nd quarter result, but the share price reaction was muted given pressure on interest margins. 

Revenue for the quarter was $29.57 billion, which was up +4.2% on the same corresponding period last year and more importantly beat market expectations by $1.05 billion, due to higher net interest revenue which benefited from higher interest rates and balance sheet growth and mix, shifting from home loans to credit card loans and wealth management. Net income for the quarter was $9.652 billion, up +16% from the same corresponding quarter last year. Earnings per share were $2.82, beating market expectations by 33 cents per share, and up +23% from last year.  ​

​Previously we had anticipated interest rates in the US would steadily rise. However, the US Federal Reserve is now likely on an easing path. This will limit JPM’s net interest revenue growth, accordingly JPM has lowered guidance for net interest revenue for 2019 down to $57.5 billion and expects this could potentially be lower if the cuts are more aggressive than the market anticipates. While JPM is still our p​referred ​US Banking exposure, ​we see lack of upside potential in a low interest rate environment and potentially slowing US economy.
​We currently have a HOLD rating on JPM.

Australia & New Zealand Market Movers

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​The Australian market ​was lower on Thursday (ASX 200 index -0.​35​%)​ ​as strength in the major banks and bond proxies helped the ASX avoid the sell-off on Wall Street on Wednesday. The resources sector led the losses on the market​ ​ with weakness across a number of commodity prices​, as the price of iron ore fell back below $US12​0 a tonne. ​

The New Zealand market was ​marginally higher yesterday (NZX 50 index ​+​0.​03​%)​ as power generators Mercury & Meridian led gains, but some profit-taking in the A2 Milk company and a slide in Tourism Holdings​ weighed on the market.​ 

3 Things Markets Will be Watching this Week

  1. ​​​​​ ​US Corporate earnings season continues this week with ​major companies such as Apple set to report earnings numbers.​
  2. The big event for the week will be the US Federal Reserve's interest rate decision on Thursday morning (AU/NZ time).
  3. Important monthly US manufacturing data and employment figures are released at the end of the week. 

Have a Great Day,


This week's podcast ​discusses Port of Napier, will it be the little IPO that beats the market?

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