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JP Morgan's activity disappoint the stock market

As expected, the U.S. bank JP Morgan Chase announced a great performance this Friday for its fourth quarter 2009. Over this period, net profit stood at 3.278 billion dollars (2.27 billion euros), a figure four times over the fourth quarter of 2008. Net banking income (equivalent to the turnover) amounted to 23.164 billion dollars over the same period against 17.226 billion in 2008. Levels well below expectations of analysts who had forecast at 26.2 billion.

For the full year, JP Morgan Chase is much better than expected with a net profit stood at 11.728 billion dollars. Twice in 2008. Regarding the benefits of the fourth quarter alone, the performance of the bank exceeds expectations at $ 74 cents per share in the fourth quarter against the 62 expected by analysts.On the year, net earnings per share were $ 2.24, against expectations of 2.12.

The bank also announced having strengthened its balance sheet, with a Tier 1 capital of 133 billion dollars or 11.1% ratio against 10.2% in September 30.

The banking investments have contributed greatly to the group's results, with net income of 1.901 billion, against a loss of 2.364 billion last year in the same period.

Deception

Yet the markets react badly to this first major publication in the banking sector. On Wall Street, the Dow Jones opened down 0.26% at 10,683 points. Action JP Morgan lost 2.15%, resulting in his fall Citigroup (-1.71%), Bank of America (2.32%) Goldman Sachs (-1.06%) and Morgan Stanley (-2, 76%). In Paris the CAC 40 in red switch to -0.60 while it was resumed in mid-session.

Investors, disappointed, hold that the bank has added $ 1.9 billion to its reserves for losses on consumer loans. The financial institution also announced that "the results have not reached a level of return on capital adequacy and realized their full potential." "The results of companies have certainly not the desired leverage effect '," noted Joseph Hargett of Schaeffer's Investment Research. "JPMorgan Chase has even gone so far as to express a high degree of caution on the current economic environment," says he.

Jamie Dimon, CEO of JP Morgan, will indeed "be cautious" about its outlook. His bank has, he says, face a cost of "high" risk. JP Morgan has included in its accounts last quarter to 7.3 billion dollars in reserves to cover these risks.

Moreover, while the swelling controversy over the pay of bankers and traders on Wall Street, JPMorgan reported costs of "compensation" (which includes wages and bonuses) increased by 18% in 2009 compared to the year prev. A new and should not meet U.S. President Barack Obama said Thursday that a proposed tax of fifty large bank.

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United States: enrollment in unemployment at its lowest since September 2008

Good news on employment front in the United States. New entries in unemployment at its lowest since September 2008, to 452,000 in the week ended on December 18. This figure comes after two weeks of up and confirms the downward trend observed since late March in the United States.

Analysts do not expect a decline of this magnitude and had forecast about 470,000 new registrations. The total number of unemployed receiving benefits rose to 5.07 million, a decrease of 127,000 persons over the previous week.

The Department of Labor, which published the statistics, held relative to this development, stating that "this week in particular is extremely difficult to adjust for seasonal variations, because the raw numbers can be very different depending on the configuration calendar year. Clearly, the actual unemployment has probably not declined much.