Finance

JPMorgan Chase shares fell 5% on Tuesday after the bank’s president told analysts that expectations for net interest income and expenses in 2025 were too optimistic.
The current estimate for 2025 of about $90 billion “is not very reasonable” because the Federal Reserve is cutting interest rates, JPMorgan President Daniel Pinto said at a financial conference.
When it comes to expenses, the analyst estimate for next year of roughly $94 billion “is also a bit too optimistic” because of lingering inflation and new investments, Pinto said.
The move was the New York-based bank’s worst drop since June 2020, according to FactSet.

Daniel Pinto, president and chief operating officer of JPMorgan Chase, speaks during the Semafor 2024 World Economy Summit in Washington, DC, on April 18, 2024.
Saul Loeb | AFP | Getty Images

JPMorgan Chase shares fell 5% on Tuesday after the bank’s president told analysts that expectations for net interest income and expenses in 2025 were too optimistic.
While the bank expects to be in the “ballpark” of the 2024 target for NII of about $91.5 billion, the current estimate for next year of about $90 billion “is not very reasonable” because the Federal Reserve will cut interest rates, JPMorgan President Daniel Pinto said at a financial conference.

“I think that that number will be lower,” Pinto said. He declined to give a specific figure.
Shares of the New York-based bank dropped more than 7% earlier in the session for the worst decline since June 2020, according to FactSet.
JPMorgan, the biggest U.S. bank by assets, has been a winner among lenders in recent years, benefiting from better-than-expected growth in NII as the bank gathered more deposits and made more loans than expected. But skittish investors are now concerned about the outlook for a bellwether banking stock, along with broader concerns about slowing U.S. economic growth.
NII, one of the main ways banks make money, is the difference in the cost of a bank’s deposits and what it earns by lending money or investing it in securities. When interest rates decline, new loans made by the bank and new bonds it purchases will yield less.
Falling rates can help banks in the sense that customers will slow the rotation out of checking accounts and into higher-yielding instruments like CDs or money market funds. But they also make new assets lower yielding, which complicates the picture.

“Clearly, as rates go lower, you have less pressure on repricing of deposits,” Pinto said. “But as you know, we are quite asset sensitive.”
When it comes to expenses, the analyst estimate for next year of roughly $94 billion “is also a bit too optimistic” because of lingering inflation and new investments the firm is making, Pinto said.
“There are a bunch of components that tell us that probably the number on expenses will be a bit higher than what is expected at the moment,” Pinto said.
When it comes to trading, JPMorgan said it expects third-quarter revenue to be flat to up about 2% from a year ago, while investment banking fees are headed for a 15% jump.
The trading slowdown tracks with Goldman Sachs, which said Monday that trading revenue for the quarter was headed for a 10% drop because of a tough year-over-year comparison and difficult trading conditions in August.

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YOUR GUIDE TO NAVIGATING YOUR FINANCIAL FUTURE

Brandon Copeland played in the National Football League as a linebacker for 10 seasons, with six teams.
Copeland, 33, has co-taught a financial literacy course at the University of Pennsylvania’s Wharton School since 2019.
He wrote a new book, “Your Money Playbook,” that aims to condition consumers to win the money game.

Brandon Copeland
Copeland Media

Brandon Copeland is a former NFL linebacker turned coach. But the type of coaching he gravitates to isn’t in the realm of sports — it’s in personal finance.
The 33-year-old — who played for six teams across 10 seasons in the National Football League before retiring last year — started co-teaching a financial literacy course to undergraduates at the University of Pennsylvania’s Wharton School, his alma mater, in 2019 while playing for the New York Jets.

The course, nicknamed “Life 101,” was inspired by his own experiences with money, according to “Professor Cope,” who is also a member of the CNBC Global Financial Wellness Advisory Board and co-founder of Athletes.org, the players’ association for college athletes.

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Now, the Orlando resident has written a new book, “Your Money Playbook,” that reads as a football coach’s blueprint to winning the financial “game.” It touches on topics like budgeting, paying down debt, saving, estate planning and starting a side hustle. (Just don’t call it a “side hustle,” as he explains in the book.)
CNBC reached Copeland by phone to discuss his journey into financial education, why becoming a millionaire “is not a sexy thing” and how it helps to think in terms of Chipotle burritos.
This interview has been edited and condensed for clarity.

‘Put the money to work for you’

Greg Iacurci: What got you interested in teaching personal finance and financial literacy?

Brandon Copeland: Feeling unprepared for some of the major financial decisions in life. We go to school for all these years and we [learn] about the tangent of a 45-degree angle, but we don’t talk about appliances and how to buy them, or how to make sure you protect yourself when you’re renting your first apartment and what renters insurance is.
I always thought it was crazy that I had to make it to the Baltimore Ravens to learn what a 401(k) was. That was 2013, my rookie year. I learned what a 401(k) was when the NFL Players Association came and told us about the benefits you get for contributing.

Fast forward to December 2016: My wife and I, we bought our first house, in New Jersey. When we bought that house I was in Detroit playing for the Lions. My wife was at the closing table and she called me and [asked], “Hey, does everything look right on this?” They e-mailed me the closing documents; it was 100 pages and I had no idea what I was looking at. I could see the purchase price was the price that we agreed to, but then I saw all these other titles and warranty deeds and this and that. And I’m like, “I have no idea if I’m getting screwed right now.” One of my biggest fears being an NFL player has always been, somebody’s taking advantage of me.
GI: What do you think is the most important takeaway from your book?
BC: The power of growth. That was the big discovery for me as I started to make money. I had no idea that existed as a kid. I always tell people, you either put the money to work for you or you go to work the rest of your life for money.
There’s a lot of folks who are afraid of the [stock] market. And I’m like, well, everyone’s an investor. If you have a dollar to your name, you’re an investor. If you take your money, you put it under your mattress, you do nothing with it, you put it in a safe in the house: That’s an investment decision. That’s a 0% return. If you take your money, you put it in a regular checking account, that’s a 0.01% return. You put it into a high-yield savings account, it’s a 4% to 5% return. The stock market, you put it in an index fund, the S&P 500, that may be an average 9% to 10% return.
All of those are investment decisions, you just have to choose wisely. [People] can put their money to work for them and get out of the “rat race” at some point.

‘That’s a lot of Chipotle burritos’

GI: For someone who is just starting out — let’s say they have been hesitant to invest their money in the market — how would you suggest they get started?
BC: I think the first thing you’ve got to do is download the [financial news] apps — the CNBCs of the world, the MarketWatch, Yahoo Finance, Wall Street Journal, Bloomberg — and turn on the notifications. Those notifications are starting to explain to you what is moving the market and why, and you’re starting to learn the language of money. Whether you choose to invest money or not, you’re at least starting to get comfortable with, “Oh, the market’s down today. Well, why?” I think that’s important to start to develop your stomach.
The other thing is, start to look at where [your] money is: What account your money is sitting in and how much is in those accounts. By doing that, you’re starting to look at your money from a 30,000-foot view. You can start to determine, “I have X amount of dollars over here in my traditional checking account. Maybe I can take some of that money and put it over into a high-yield savings account that is now giving me 4% interest on it annually. And by getting 4% interest on it annually, maybe that’s generating me $500 a year that I otherwise wouldn’t have had.” Now you’re starting to put yourself in the game of money. What is the limited amount of effort I can do and still be generating money on my behalf?
As a kid, if somebody said, “Hey, man, I’ll give you $500 to do nothing, to press two buttons,” you’d be like, “Sign me up!” I always break that down as, that’s a lot of Chipotle burritos, that’s a lot of dinners, that’s a lot of time with my family at the water park. By doing that, it makes it more of a priority for me to hurry up and make that investment decision.

Brandon Copeland
Copeland Media

GI: One of the first things that you encourage people to do in the book is say aloud to themselves, “I can be wealthy.” Why?
BC: In football, your money or your job can be taken away from you overnight or through an injury. A lot of times, as I was making money, I was always just kind of looking around the corner. Even to this day, I still think about it as if somebody can rip the rug out from under my feet. So I’m still sometimes in survival mode. I think that although you can be making money, there are still ways where you can have anxiety around money, your lifestyle and when you spend money — all those things.
Starting to have positive affirmations — “I deserve to be rich. I deserve to have money. I deserve to not be stressed about keeping the lights on. I can be wealthy. I can do this” — sometimes you’ve got to coach yourself on that. Because where else do you go get that positive affirmation that you can do it?
Doing those things over time not only reinforce positive connotations about yourself, but they also genuinely have a real effect on your mental wellness. It is really, really hard to walk out of the house and be a super productive human being in society when you don’t know if the doors will be locked or changed the next time you get there.  

Why being a millionaire ‘is not a sexy thing’

GI: You write in the book that the journey of financial empowerment will require people to confront their “inner money myths.” What’s the most common myth around money that you hear?
BC: For lot of communities that I serve it’s, put your money in the bank.
GI: You mean keeping it in cash and not investing it?
BC: Exactly. I think it’s a myth because you put your money in the bank, and the bank goes out and invests your money: They invest it in other people’s projects, other people’s homes, and then get a rate of return on your money. Not to say banks are bad and saving is bad, [but] you’ve got to figure out at some point when can I get to the point where I can put my money to work for me?
I think that some of the myths are about whether wealth is for you or not. A lot of millionaires, it’s not a sexy thing. A lot of times you feel like you’ve got to go and create the next Instagram or Snapchat or TikTok in order to ever be wealthy, when really you’ve just got to make simple, consistent, disciplined decisions. That is the toughest thing in the world, to have delayed gratification or to subject yourself to delayed gratification.
I think a lot of times, we don’t prepare for the situation we will be in one day or could be in one day.
GI: How do you balance today versus tomorrow?
BC: I went to a school a couple weeks ago and [asked] the athletes there write out what they want their life to look like five years after graduation. By doing that and saying, “Hey, I want this with my life. I want it to look like this, and I want vacations to be like this,” now you can always look at what you’re actually doing and determine whether your current actions [are working toward] your future, the future things that you want for yourself.
I think a lot of us never spend the time write out what we actually want or to visualize what we actually want with life. And so you end up going to school, you go to college, and you’re there just to get a good job and make money, but you don’t really map out what that job is and what you like to do versus what you don’t like to do. You end up being just a pinball in life.

I literally put people in my life to help hold me accountable. The best way I’d say to balance between delayed gratification and enjoying where you are today is having those accountability buddies who can tell you straight up, “Hey, you’re slacking,” or “Hey, you’re doing a good job.” But you can also map out against your own goals and wants for yourself, and [ask], are my actions actually adding up to this? 
GI: You write in the book that carrying high-interest debt, like credit card debt, and simultaneously investing is like putting the heat on high during the winter in Green Bay, Wisconsin, while also keeping the windows wide open. Can you explain?
BC: Sometimes folks are putting money in the market to try to get 6%, 9%, 10%, 12%, whatever, when they may be making the minimum payment on their credit card or no payment at all, which would be even worse, and they’re paying 18% [as an interest rate].
You are automatically locking in a losing scenario for yourself that you’re not going to be able to outpace. More

Warren East, who led Arm between 1994 and 2013, said there have been criticisms that lackluster growth and poor rates of GDP per head in the U.K. are a source of national “embarrassment.”
He added that too often tech firms in Britain move their operations overseas or list elsewhere abroad.
“I think we have a lot to offer in terms of U.K.-based innovative technology,” East said, adding: “We tend not to be able to realise as many global businesses as that promise would suggest.”

Warren East, former CEO of Rolls Royce and Arm, speaking at a tech event in London on June 13, 2022.
Luke MacGregor | Bloomberg via Getty Images

CAMBRIDGE, England — The U.K. is doing a bad job of commercializing technology businesses globally and needs a mindset shift from the investor community to win on the world stage, a former CEO of British chip design firm Arm said Tuesday.
In a keynote speech at Cambridge Tech Week, Warren East, who led Arm between 1994 and 2013, said that there have been criticisms that lackluster growth and poor rates of GDP per head in the U.K. are a source of national “embarrassment.”

He added that too often firms that achieve scale in Britain have a tendency to change locations from the U.K. or list abroad in countries such as the U.S., due to difficulties with achieving global relevance from the country.
“I think we have a lot to offer in terms of U.K.-based innovative technology,” East told the audience at Cambridge Tech Week. However, he added: “We tend not to be able to realise as many global businesses as that promise would suggest.”
East was also previously the CEO of U.K. aviation engineering giant Rolls-Royce. He is currently a non-executive director on the board of Tokamak Energy.
East said that Britain “needs to get commercialization right,” adding that too much innovation gets created in the U.K. but is then exported elsewhere around the world.

There is “sadly a common story of all the wonderful stuff that gets made in Britain and then gets commercialized and exploited elsewhere,” East said. He added that he doesn’t have a “silver bullet” solution on how to fix the issue, but suggested that the U.K. needs to encourage more “risk appetite” to support high-growth tech firms.

“We’re often told that the problem isn’t the startup bit, it’s the scale up bit,” East said, explaining that there are far deeper pools of capital presence in the U.S. “Investor risk appetite in the U.S. is higher than it is in the U.K.,” he said
East noted that there have been pushes among the British entrepreneurial community and VCs for a change to capital market rules that will allow more investments from pension funds into startups and “stimulate risk appetite” in the U.K.
“Fortunately I think we can expect more of that over the coming years,” East told attendees of the Cambridge event. However, he added: “Businesses can’t guarantee that’s going to happen, and can’t wait for the rules to change.”
Last year, Arm, whose chip architectures can be found in most of the world’s smartphone processors, listed on the Nasdaq in the U.S. in a major blow to U.K. officials and the London Stock Exchange’s ambitions to hold more tech debuts in Britain.
The company remains majority-owned by Japanese tech giant SoftBank. More

Goldman Sachs will post a roughly $400 million pretax hit to third-quarter results as the bank continues to unwind its ill-fated consumer business.
CEO David Solomon said Monday at a conference that by unloading Goldman’s GM Card business, as well as a separate portfolio of loans, the bank would post a hit to revenues next month.
Solomon also said trading revenue for the quarter was headed for a 10% decline because of a tough year-over-year comparison and difficult trading conditions in August for fixed-income markets.

David Solomon, CEO of Goldman Sachs, during an interview for an episode of “The David Rubenstein Show: Peer-to-Peer Conversations” in New York on Aug. 6, 2024.
Jeenah Moon | Bloomberg | Getty Images

Goldman Sachs will post a roughly $400 million pretax hit to third-quarter results as the bank continues to unwind its ill-fated consumer business.
CEO David Solomon said Monday at a conference that by unloading Goldman’s GM Card business, as well as a separate portfolio of loans, the bank would post a hit to revenues when it reports results next month.

It is the latest turbulence related to Solomon’s push into consumer retail. In late 2022, Goldman began to pivot away from its nascent consumer operations, beginning a series of write-downs related to selling chunks of the business. Goldman’s credit card business, in particular its Apple Card, allowed rapid growth in retail lending, but also led to losses and friction with regulators.
Goldman is instead focusing on asset and wealth management to help drive growth. The bank was in talks to sell the GM Card platform to Barclays, The Wall Street Journal reported in April.
Solomon also said Monday that trading revenue for the quarter was headed for a 10% decline because of a tough year-over-year comparison and difficult trading conditions in August for fixed-income markets.

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Europe has at last realised it has a problem with economic growth. Duh. Can it now find a solution? A report published on September 9th by Mario Draghi, a former president of the European Central Bank and prime minister of Italy, and the continent’s unofficial chief technocrat, is an attempt to do just that. Over almost 400 pages, Mr Draghi outlines a plan to overhaul Europe’s economy. Ursula von der Leyen, the recently re-elected head of the European Commission, is keen to act on his advice. Even Elon Musk, owner of Tesla and X, as well as a frequent opponent of the EU, has applauded his “critique”. More

Huawei has received more than 2.7 million pre-orders for its new, trifold smartphone, its website showed on Monday.
The Chinese company began pre-orders for its Mate XT midday on Saturday.
That was more than two days ahead of Apple’s planned iPhone 16 launch in the early morning Tuesday Beijing time.

Huawei is planning to release a three-fold smartphone on Sept. 10, just hours after Apple’s scheduled new iPhone launch.
Cfoto | Future Publishing | Getty Images

BEIJING — Huawei has received more than 2.7 million pre-orders for its trifold smartphone, its website showed on Monday.
The Chinese company began pre-orders for its Mate XT midday on Saturday. That was more than two days ahead of Apple’s planned iPhone 16 launch early morning Tuesday Beijing time.

Huawei had previously announced it would launch a new product at 2:30 p.m. on Tuesday. The company has yet to share a price for the Mate XT. The device is set to officially begin sales on Sept. 20.
Apple fell out of the list of top five smartphone vendors in China in the second quarter, according to Canalys. It was the first time that domestic players held all five spots, the firm said.

Huawei ranked fourth by market share with 10.6 million smartphones shipped, according to Canalys.
The firm only shared shipments for the top five vendors. Apple shipped 10 million phones in the first quarter.
Huawei already sells folding and flip phones, as do its Chinese competitors. Apple has yet to expand into those categories. More

The U.S. Federal Reserve can afford to make a jumbo 50 basis points rate cut next week without spooking markets, according to one analyst.
Michael Yoshikami, CEO of Destination Wealth Management, said Monday that a deeper cut would demonstrate that the central bank is ready to act without signalling deeper concerns.
Policymakers are widely expected to lower rates when they meet on Sept. 17-18, but the extent of the move remains unclear.

Federal Reserve Chairman Jerome Powell.
Andrew Harnik | Getty Images

The U.S. Federal Reserve can afford to make a jumbo 50 basis point rate cut next week without spooking markets, an analyst has suggested, as opinion on the central bank’s forthcoming meeting remains hotly divided.
Michael Yoshikami, CEO of Destination Wealth Management, said Monday that a bigger cut would demonstrate that the central bank is ready to act without signaling deeper concerns of a broader downturn.

“I would not be surprised if they jumped all the way to 50 basis points,” Yoshikami told CNBC’s “Squawk Box Europe.”
“That would be considered, on one hand, a very positive sign the Fed is doing what is needed to support jobs growth,” he said. “I think the Fed at this point is ready to get out ahead of this.”
His comment follow similar remarks Friday from Nobel Prize-winning economist Joseph Stiglitz, who said the Fed should deliver a half-point interest rate cut at its next meeting, contending that it went “too far, too fast” with its previous policy tightening.

Policymakers are widely expected to lower rates when they meet on Sept. 17-18, but the extent of the move remains unclear. A disappointing jobs print on Friday stoked fears of a slowing labor market and briefly tipped market expectations toward a larger cut, before shifting back.
Traders are now pricing in around a 75% chance of a 25 bps rate reduction in September, while 25% are pricing in a 50 bps lowering, according to the CME Group’s FedWatch Tool. A basis point is 0.01 percentage point.

Yoshikami acknowledged that a larger cut could reinforce fears that a “recessionary ball” is coming, but he insisted that such views were overblown, noting that both unemployment and interest rates remain low by historical levels and company earnings have been strong.
He said the recent market sell-off, which saw the S&P 500 notch its worst week since March 2023, was based on “massive profits” accrued last month. August saw all the major indexes post gains despite a volatile start to the month, while September is traditionally a weaker trading period.

Thanos Papasavvas, founder and chief investment officer of ABP Invest, also acknowledged a “rise in concern” around a potential economic downturn.
The research firm recently adjusted its probability of a U.S. recession to a “relatively contained” 30% from a “mild” 25% in June. However, Papasavvas said that the underlying components of the economy — manufacturing and unemployment rates — were “still resilient.”
“We’re not particularly concerned that we’re heading into a U.S. recession,” Papasavvas said Monday on “Squawk Box Europe.”
The perspectives stand in stark contrast to other market watchers, such as economist George Lagarias, who told CNBC last week that a bumper rate cut could be “very dangerous.”
“I don’t see the urgency for the 50 [basis point] cut,” Forvis Mazars’ chief economist told CNBC’s “Squawk Box Europe.”
“The 50 [basis point] cut might send a wrong message to markets and the economy. It might send a message of urgency and, you know, that could be a self-fulfilling prophecy,” Lagarias added. More

China on Monday reported its consumer price index rose by 0.6% year on year in August, missing expectations as costs of transportation and home goods, and rents declined.
The consumer price index was forecast to have climbed 0.7% year on year in August, according to a Reuters poll.
The producer price index fell by 1.8% year on year in August, more than the estimated 1.4% decline as per the Reuters poll.

egetable prices in China have risen significantly this summer, with analysts pointing to high temperatures and frequent rainfall as the main reasons.
Vcg | Visual China Group | Getty Images

BEIJING — China on Monday reported its consumer price index rose by 0.6% year on year in August, missing expectations as transportation and home goods prices, as well as rents declined.
The CPI was estimated to have climbed 0.7% year on year in August, according to a Reuters poll.

Food prices climbed by 2.8% year on year in August, the first positive print since June 2023, according to Wind Information data. Pork prices surged by 16.1% in August, while vegetable prices climbed by 21.8%.
Pork, a food staple in China, has an outsized weighting in the country’s consumer price index. Wang Yifan, agricultural analyst at Nanhua Futures, said that breeding cycles indicate pork prices can rise further in September and October, but will face pressure during the rest of the year.
Core-CPI, which strips out food and energy prices, climbed by 0.3% in August from a year ago, a slower rise for a second-straight month.

The consumer price index rose by 0.4% in August from July, also missing Reuters estimates of a 0.5% growth.
Consumer prices in China have remained subdued amid lackluster domestic demand since the pandemic.

China’s former central bank head Yi Gang said at a conference on Friday that the country needed to focus on “fighting the deflationary pressure.” He forecast the consumer price index would be slightly above zero by the end of the year.
Retail sales rose by just 2.7% in July from a year earlier. Retail sales and industrial data for August are due out Saturday.
“The fiscal policy stance needs to become more proactive in order to prevent the deflationary expectations from becoming entrenched, in my view,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note.

Producer prices fall more than expected

The producer price index fell by 1.8% year on year in August, more than the estimated 1.4% decline as per the Reuters poll.
Oil, coal and other fuel industries reported a 3% year-on-year drop in prices, reversing a 4.3% increase in July.
The downward pressure on the producer price index remains large due to insufficient domestic demand and the drag from real estate, said Bruce Pang, chief economist and head of research for Greater China at JLL.
Within the consumer price index, he noted that major categories outside of food, tobacco and alcohol posted declines in August from the prior month, indicating the need for greater efforts to boost domestic demand.
— CNBC’s Anniek Bao contributed to this report. More