Hi John, here's what you need to know for October 16th in 3:08 minutes.

☕️ Finimized over a iced macha latte at Deus Ex Machina in Tokyo, Japan (19°C/66°F ☁️)

⏳ Keep it brief

Pick ‘N’ Mix

What’s Going On Here?

Several big American banks announced third-quarter results on Tuesday, and each had a little somethin’ somethin’ different to its flavor…

What Does This Mean?

JPMorgan Chase was like a kid in a candy store: it reported higher-than-forecast revenue and profit, partly because it earned more than expected from investors trading “fixed income” (e.g. bonds), currency, and commodities – just like rival Citigroup (tweet this). And the banking juggernaut wasn’t done indulging its sweet tooth, with higher-than-expected revenue from companies it helped sell shares and issue debt.

But investors in competitor Goldman Sachs – once the most profitable “securities” firm in Wall Street history – won’t have shared the sugar rush. Its third-quarter profit missed predictions, falling short where JPMorgan found success: advising companies how best to raise cash. Still, it did top its rival – and perform better than expected – in helping investors trade stocks.

Why Should I Care?

The bigger picture: Souring on low interest rates.
Banks already know falling interest rates will hurt their profits. But lower rates might also encourage consumers and companies to “refinance” – take out new, cheaper mortgages or loans to replace older, pricier ones. JPMorgan said on Tuesday it doesn’t plan to issue riskier loans, even though its loan growth had slowed (perhaps as consumers worry more about the US economy). Citigroup – the world’s largest credit card issuer – took the same stance and reduced its promotional deals. Goldman, though, has now doubled down on the lending segment with its Apple credit card.

Zooming out: From investment banks to investment managers.
BlackRock – the world’s largest investment manager, which stewards almost $7 trillion of cash – also reported third-quarter earnings on Tuesday. Its profit was lower than the same time last year, but higher than investors had forecast, helping its stock price rise. The company partly had its tech platforms to thank: revenue was 30% higher than a year ago, compared to only 3% growth from its core investment fee income.

Clocking Off

What’s Going On Here?

As business owners wait to see if Britain will punch out of the European Union (EU), fresh data on Tuesday revealed employment in the UK unexpectedly fell – by the most in four years – between June and August.

What Does This Mean?

There were 56,000 fewer people in work between June and August than between May and July, when it had increased by 31,000 – suggesting a steep drop in August. That was partly down to a fall in part-time work, which (third-quarter recession or not) is often the first to be cut when tensions are high.

The unemployment rate, in turn, lifted from its lowest level in over 40 years. Higher availability of workers could yet slow future wage growth, though it appears so far to have grown at the same rate as the three months to July. Still, there was good news for Brits: their money went further if they headed abroad…

Why Should I Care?

For markets: Arise, pound sterling.
Despite Tuesday’s weaker-than-expected jobs update, the value of the British pound rose by 1% compared to the US dollar and the euro – hitting a five-month high versus the latter. The currency’s fire was stoked by reports of progress toward a new Brexit agreement between the UK and the EU. Investors buying up British assets probably expect the potential certainty around the UK’s future relationship with the EU to push consumer and business spending up – and economic growth to boot.

The bigger picture: A better mood in Europe too.
Survey results on Tuesday showed German financial market experts’ outlook for the country’s economy fell slightly this month compared to last – but not by as much as economists had predicted. Recent data has underscored that parts of the German economy aren’t as bad as perhaps feared, and – coupled with a US-China handshake on trade – might be the glimmer of light at the end of Germany’s recent economic tunnel.

💬 Quote of the day

– Annie Leibovitz (an American portrait photographer)