Good morning. Here’s what happened overnight and what you need to know today.
1.
It’s gung-ho, folks: JPMorgan Chase CEO Jamie Dimon said the largest US bank could spend between USD10 billion ($14 billion) and USD20 billion on an acquisition in the next couple of years, with the Trump administration’s lighter approach to banking regulation freeing up as much as USD40 billion to USD50 billion in excess capital. “I do think there might be, in the next couple years, a chance to put USD10 or USD20 billion to work buying something,” Dimon told the Bernstein Strategic Decisions Conference in New York, the FT reported. “And when we do that, we’ll explain to you why we think it’s a great purchase.” Dimon cautioned that asset prices were high, including JPMorgan’s own stock, but said the bank was patient with capital. “It’s not burning a hole in our pocket at all,” he said. JPMorgan is prohibited by US law from buying another deposit-taking bank, having already crossed 10% of the country’s deposits. It was granted an exemption when it bought First Republic in a government-run auction in 2023. Dimon also said the bank’s full-year 2026 expenses would be closer to USD106 billion than its previous USD105 billion guidance, with the increase “mostly driven by better performance, so it’s a good extra billion,” suggesting a link to higher performance compensation. Investment banking fees are tracking up about 10% in the second quarter and trading up at least 11%, he said. “It’s gung-ho, folks,” Dimon said. (WSJ)(Bloomberg)(Reuters)(FT)
2.
Hormuz talk: Iranian state television broadcast what it said were details of a draft MOU between Iran and the US that would restore commercial shipping through the Strait of Hormuz to prewar levels within a month, sending Brent crude falling more than 5% before the White House dismissed the report as a fabrication. “This report from Iranian-controlled media is not true and the MOU they ‘released’ is a complete fabrication,” the White House said in a social media post. “Nobody should believe what Iranian state media is putting out.” Iranian state TV later removed references to the report from its social media accounts without explanation, the FT reported. The draft, as reported by Iranian state TV, said the US would lift its naval blockade on Iranian ports and withdraw military forces from Iran’s vicinity, with Iran and Oman overseeing ship traffic through the strait. Trump told a cabinet meeting that “Iran is very much intent, they want very much to make a deal. So far they haven’t gotten there ... We’re not satisfied with it, but we will be. Either that or we’ll have to just finish the job.” Secretary of state Marco Rubio said there had been “some progress” and the “next few hours and days” would yield more information. (Bloomberg)(FT)(Reuters)(AP)
