Jamie Dimon’s annual letter to JPMorgan Chase shareholders has simply been printed. The extensively learn observe presents a glimpse of his views on not simply enterprise, however the financial system at a “pivotal second for America and the free world,” with deep divisions at house and world uncertainty.

Listed here are some highlights.

The financial system is resilient however the authorities underpinning it’s a pink flag. Shoppers are spending and buyers count on a comfortable touchdown. However Dimon warns that the financial system is being fueled by authorities spending and rising deficits. “The deficits right now are even bigger and occurring in increase occasions — not as the results of a recession — they usually have been supported by quantitative easing, which was by no means completed earlier than the good monetary disaster,” he writes.

Inflation could also be sticky. “These markets appear to be pricing in at a 70% to 80% likelihood of a comfortable touchdown — modest development together with declining inflation and rates of interest,” Dimon writes, including that the chances are literally so much decrease.

International uncertainty is one other darkish cloud. The wars in Ukraine and the Center East might additional “disrupt power and meals markets, migration, and army and financial relationships.” That shock coincides with a surge in public funding to energy a inexperienced transition, restructure provide chains and commerce relationships, and enhance well being care spending.

Industrial coverage is required however needs to be restricted and focused. Dimon says the U.S. should be powerful with China, however interact with Beijing. That features establishing independence on provides of supplies essential to nationwide safety, like uncommon earth, semiconductors and 5G infrastructure. (In accordance with Dimon, the Inflation Discount Act and the CHIPs Act get it proper.)

Dimon warns concerning the deep political divisions at house. Dimon doesn’t explicitly weigh in on the election (his public backing for some of Donald Trump’s financial insurance policies triggered a stir at Davos in January), however mentioned the U.S. is grappling with “extremely charged, emotional and political” points centering across the border safety disaster and the “fraying of the American dream.”

  • On Basel 3 endgame: Dimon reiterated his issues that lots of the proposed banking guidelines are “flawed and poorly calibrated.”

  • On company governance: Dimon argues that proxy advisory companies like ISS have develop into too influential (he just lately backed Disney in its combat in opposition to Nelson Peltz). He’s against latest efforts to split chairman and C.E.O. roles and thinks the common proxy “makes it simpler to place poorly certified administrators on a board.”

Janet Yellen sees progress in China relations, however warns there’s “extra work to do.” The Treasury secretary concluded conferences in Beijing on Monday saying that ties between the nations had stabilized, but it surely was unclear how the connection would endure in an election 12 months. Her feedback got here because the Biden administration agreed to provide Taiwanese chipmaker TSMC $6.6 billion in grants to start manufacturing in Arizona in 2028.

Brazil’s supreme court docket opens an investigation into Elon Musk. Alexandre de Moraes, the chief justice, opened the instruction of justice inquiry after Musk mentioned he would reactivate some X accounts that the choose had ordered blocked. The accounts weren’t disclosed. Moraes has been investigating “digital militias” accused of spreading disinformation.

Gold hits a report excessive and an oil rally takes a breather. The safe-haven asset reached more than $2,300 a troy ounce, buoyed by worries over a widening battle within the Center East and better demand for the dear metallic from central banks and Chinese language shoppers. The value of Brent crude fell on Monday to commerce close to $90 a barrel, down from a five-month excessive reached final week.

Right this moment marks the two-year anniversary of the Warner Bros. Discovery mega deal closing. Crossing that milestone implies that the leisure big, which owns HBO, CNN and a profitable piece of the March Insanity broadcasts, can now strike a deal with out going through an enormous tax hit.

The business is ripe for consolidation, given challenges in cable and streaming. An impediment is President Biden’s antitrust cops. “Regulatory constraints are limiting what offers can get completed, which is the case in most industries,” Rob Kindler, the worldwide chair of the M.&A. Group at Paul, Weiss, instructed DealBook.

Warner Bros. Discovery hasn’t gone as hoped. Its inventory is down 66 % for the reason that deal closed as its guess on streaming has languished (alongside rivals not named Netflix). The legacy cable enterprise has been a much bigger drag, harm by cord-cutting.

Its $44 billion debt mountain might additionally make an acquisition harder. However John Malone, the media mogul and a board member, said in November that money stream is enhancing, which might set the corporate as much as scout for offers.

A merger with Paramount appears unlikely. Shares fell 5 % when talks between the two leaked in December, an indication that buyers could not look enthusiastically on the corporate growing its publicity to linear media. It’s in all probability a moot level anyhow with Paramount in unique talks with Skydance.

Even nonetheless, would an alliance with Paramount’s TV networks, like, CNN and CBS via a by-product or divestiture make sense, down the road?

Focusing on Comcast might face challenges, too. Buyers could just like the potential to mix their cable, studio and streaming companies. However regulators would seemingly have powerful questions.

Nonetheless, don’t depend out a deal. As Barry Diller instructed The Instances final 12 months: There appears to all the time be curiosity within the Warner media properties. “Whether or not that can occur is determined by whether or not somebody needs to take it,” mentioned Diller, a longtime buddy of the Warner Bros. Discovery chief, David Zaslav.


For many years, the widespread knowledge in company America — as encapsulated within the 2004 guide “Mastering the Merger,” by two Bain & Firm consultants — was that for all of the billions spent on mergers, roughly 70 % failed.

However a new white paper by one of many guide’s authors and two different colleagues finds that the inverse is now true: 70 % of takeovers succeed. DealBook acquired the primary have a look at the analysis to study what had modified.

Corporations have gotten smarter about M.&A. In 2004, the defining offers of the period — together with that of AOL-Time Warner — have been meant to be transformative and ship huge financial savings. Right this moment the objectives are extra modest, resembling increasing into new geographies or adjoining companies, or including new expertise.

Acquirers are additionally getting extra follow. Having more-conservative goals for mergers means corporations can do extra of them, justifying having in-house groups of M.&A. specialists who can higher establish promising acquisitions and make them work. One development: extra subtle evaluation of potential takeovers, in contrast with earlier offers that always relied on much less exacting monetary issues like synergies.

“Frequent acquirers have the expertise and functionality to do the diligence that’s required,” Suzanne Kumar, a Bain vice chairman and one of many white paper’s authors, instructed DealBook, pointing to Thermo Fisher Scientific, Constellation Manufacturers and tech giants.

Serial acquirers are inclined to have higher returns. Between 2000 and 2010, corporations that did not less than one deal a 12 months had 10-year whole shareholder returns that have been 57 % increased than companies that did no offers, Bain discovered. Between 2012 and 2022, that unfold rose to 130 % — a discovering that stunned the researchers.


With automobile corporations on high alert over the United Auto Staff’ efforts to ramp up labor organizing, the union has racked up a sequence of wins removed from the manufacturing facility ground — on school campuses.

The newest victory was at Harvard College. The varsity’s nontenure monitor staff — a group of roughly 6,000 that features college, postdoctorate fellows and preceptors — overwhelmingly voted to unionize final week. That opens the door to negotiations for increased wages, improved job safety and bolstering office safety.

The divide brings one other supply of rigidity to campus. Harvard has been embroiled in a combat over free speech and security ever since Hamas attacked Israel on Oct. 7, spurring a debate that led to a wave of high-level resignations.

Harvard is much from alone. Employees at Wellesley School and New York College also voted to unionize this 12 months, becoming a member of efforts by adjunct professors and postdocs at Boston College, Columbia, Rutgers and the College of Connecticut.

The U.A.W. is on the middle of the push. The union has been branching into increased schooling for years. And its hard-knuckled techniques in securing new contracts from Detroit’s Huge Three automakers final 12 months have given it momentum.

After N.Y.U.’s profitable unionization vote, Shawn Fain, the U.A.W.’s president, hailed the second as a historic one for labor organizing efforts on America’s college campuses. “We’ve acquired their again,” he said.


Congress returns right now from its two-week recess to seek out Ukraine, the TikTok invoice and repairing the Baltimore bridge within the highlight — and a attainable Home management problem looming. Elsewhere, inflation, central banks and the brand new earnings season can even be in focus.

Right here’s what to observe:

Tuesday: Google’s Cloud Subsequent builders convention opens amid expectations that the tech big will make a raft of bulletins to do with synthetic intelligence.

Wednesday: The March Shopper Worth Index is about for launch. Economists forecast that total inflation rose by 3.5 % on an annualized foundation, a slight enhance from February. Core C.P.I., which removes meals and gas, is anticipated to have cooled.

Minutes from the final Fed assembly are additionally as a result of be printed.

Elsewhere, President Biden will maintain talks on the White Home with Prime Minister Fumio Kishida of Japan. On the agenda: commerce, A.I. and China. Additionally looming over the summit is Nippon Metal’s $14 billion bid for U.S. Metal.

Thursday: It’s choice day on charges for the European Central Financial institution. Inflation has fallen comparatively shortly throughout a lot of Europe, prompting the query: Will the E.C.B. reduce rates of interest earlier than the Fed?

Friday: Wall Avenue giants start reporting first-quarter outcomes, together with JPMorgan Chase, Wells Fargo, Citigroup and BlackRock.

Offers

  • The posh group Puig, proprietor of the manufacturers Paco Rabanne and Charlotte Tilbury, plans to list in Spain and goals to lift greater than 2.5 billion euros ($2.7 billion) in what could be the sector’s largest I.P.O. in years. (FT)

  • Might buyers’ relative apathy for European shares push the continent’s largest oil corporations to think about bigger listings in the U.S.? (Bloomberg Opinion)

Coverage

  • Josh Shapiro, the Democratic governor of Pennsylvania, has warned that the Biden administration’s choice to pause liquefied pure gasoline initiatives might harm the get together’s probabilities in November. (FT)

  • “Maryland Passes 2 Main Privateness Payments, Regardless of Tech Business Pushback” (NYT)

Better of the remainder

We’d like your suggestions! Please e-mail ideas and ideas to dealbook@nytimes.com.

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