Major U.S. banks posted robust third-quarter earnings, signaling strength in core lending operations even as top executives warn of looming risks. JPMorgan Chase recorded a 12 percent increase in profit compared to the same period last year, while Goldman Sachs brought in $15.2 billion in revenue—the highest third-quarter figure in its history. Citigroup saw a 16 percent rise in earnings, and Bank of America exceeded forecasts with $8.5 billion in profit, a 23 percent year-over-year gain. Morgan Stanley also delivered strong results, with profits surging 45 percent from the prior year.
These figures point to an economy that continues to function well, serving as a proxy for official data delayed by the federal government shutdown. Jamie Dimon, CEO of JPMorgan, noted that the impact of tariffs has been milder than anticipated. His CFO, Jeremy Barnum, highlighted a surge in merger and acquisition activity over the summer. Citi’s finance chief, Mark Mason, added that delinquency rates on loans have not increased.
Despite the upbeat financials, concerns are mounting about market exuberance. David Solomon of Goldman Sachs pointed to elevated investor enthusiasm, largely fueled by excitement around artificial intelligence, and stressed the need for disciplined risk management. Dimon echoed this, cautioning that many asset classes appear to be approaching bubble-like valuations.
Warnings are also emerging in credit markets. Marc Rowan of Apollo Global Management referred to recent collapses in highly leveraged firms—such as auto lender Tricolor and parts manufacturer First Brands—as signs of late-cycle stress. Dimon used a stark metaphor, stating, “When you see one cockroach, there are probably more,” acknowledging JPMorgan’s own exposure to Tricolor’s failure.
Still, not all leaders see an imminent downturn. Jon Gray, president of Blackstone, dismissed the bankruptcies as isolated incidents rather than early warnings of systemic collapse.
In other developments, Meta announced new restrictions on teen access to content, adopting a PG-13-style rating system across Instagram and its AI chatbots, amid ongoing scrutiny over youth safety. OpenAI revealed it will soon permit erotic content on ChatGPT, marking a notable shift in content policy.
On the geopolitical front, President Trump linked a potential $20 billion financial support package for Argentina to the success of President Javier Milei’s party in upcoming elections. While the aid has so far prevented a crisis, it has drawn political criticism. Meanwhile, Chen Zhi, head of the Prince Group, faces federal charges in Brooklyn for allegedly orchestrating a cryptocurrency fraud scheme using forced labor in Cambodia—a case reflecting broader enforcement efforts amid a digital asset rally.
In New York City, business leaders are reassessing their stance toward mayoral candidate Zohran Mamdani, a democratic socialist who maintains a strong lead in polls. Though initially skeptical, some executives, including Jamie Dimon and Mike Bloomberg, have engaged in dialogue with him. Observers note Mamdani’s pragmatic tone and willingness to listen, which has softened some opposition. Allies like Sally Susman and Robert Wolf describe him as more of a progressive capitalist than a radical.
Still, concerns persist. Critics fear his proposed tax hikes and rent controls could weaken the city’s fiscal foundation and harm real estate. Some remain troubled by his past rhetoric, including his refusal to disavow the phrase “globalize the intifada” and his calls for the arrest of foreign leaders.
Trade tensions between the U.S. and China continue to unsettle markets. Trump threatened to impose tariffs on Chinese cooking oil in response to Beijing’s reduced purchases of U.S. soybeans. The move dented investor confidence, contributing to a drop in the S&P 500. Analysts warn that prolonged trade conflict could push American farmers into financial distress and slow global growth, as highlighted by the IMF.
Europe is feeling the ripple effects. The Netherlands recently seized Nexperia, a Dutch chipmaker owned by China’s Wingtech, after U.S. pressure. The EU is also considering requiring Chinese firms operating in digital and manufacturing sectors to share technology with European counterparts—a policy mirroring practices in China.
Apple’s Tim Cook, during a visit with Chinese officials, reaffirmed the company’s commitment to investing in China, despite diversifying production to India and the U.S. Domestically, Stellantis announced a $13 billion investment in American manufacturing, expanding output of electric, hybrid, and gas-powered vehicles, including a new large SUV, citing restored consumer choice under relaxed emissions rules. General Motors, however, will take a $1.6 billion accounting charge due to slowing EV demand.
Elsewhere, Johnson & Johnson plans to spin off its orthopedic business into a standalone entity named DePuy Synthes. Patrick Drahi rejected a €17 billion bid for most of Altice France’s telecom assets. Uniqlo’s founder criticized U.S. protectionist policies, while blue states are forming a public health alliance to counter federal rollbacks. A separate report revealed Chinese criminals generated over $1 billion from spam text scams. Meanwhile, AI-themed films like “Mission: Impossible 8” and “M3gan 2.0” underperformed at the box office.
— news from The New York Times