JPMorgan misses profit forecasts as Dimon warns of sticky inflation and deficits

JPMorgan Chase reported profit below analysts’ expectations. Chief executive Jamie Dimon also warned about risks linked to large fiscal deficits and sticky inflation.

The result was the main development in the rolling economic and financial news coverage. Other reports in the source concerned Goldman Sachs, UK retailers, housebuilders and cyber security.

Goldman Sachs results

Goldman Sachs beat forecasts in the third quarter, reporting $5.3bn in net income against expectations of $4.2bn. Net income was almost 30% higher than a year earlier.

Equities trading revenue rose 72% to $6.4bn. Revenue from fixed income, currencies and commodities trading fell 1% to $3.5bn.

UK businesses cut plans

Whitbread chief executive Dominic Paul said higher taxes and labour costs had forced the company to reduce planned investment in new hotels. Bloomberg reported that the Premier Inn owner was facing an additional $100m in tax costs.

TFG London, owner of Phase Eight, Hobbs and Whistles, said a cyber-attack had affected its websites and IT systems. It paused online orders as a precaution while investigating whether personal or other sensitive information had been compromised.

Housing schemes and regulation

Bellway chief executive Jason Honeyman said the Your First Home programme could increase the company’s housebuilding output by around 10%. Full details, including the launch date, are expected on 28 October.

FCA chief executive Nikhil Rathi urged small financial firms to consider cyber insurance because of risks linked to the rapid development of artificial intelligence. He also said the regulator’s rules alone would not be enough to change workplace culture across the financial sector.