📊 The $5B Question for JPMorgan: Lawsuit or Political Risk?

President Donald Trump filed a lawsuit seeking at least $5 billion against JPMorgan Chase and the company’s CEO, Jamie Dimon. The suit was filed in the Florida State Court in Miami-Dade County by one Alejandro Brito, the attorney for Trump. Trump argued that the bank closed his personal and professional accounts without any kind of notification, and this was politically motivated after the 6th of January, 2021. JPMorgan says the company does not close accounts for political or religious reasons and points to legal and regulatory risk as the driver for such decisions.

“Debanking” claims have become a live political issue, and large banks are already under heavier public scrutiny. A lawsuit against the largest bank in the United States can raise pressure for clearer rules around when banks can end customer relationships. It also lands during a separate policy fight where Dimon warned a proposed credit card interest-rate cap could sharply reduce credit access. Even if the legal process is slow, the headlines can move sentiment for financial stocks in the short term.

It's too early in the case for markets to take the number of alleged damages as meaningful, because the facts have yet to be tested in court. A more concrete takeaway is that large banks are facing increasing political risk from left and right, which can draw them into public disputes unrelated to quarterly results. The key developments to track are court filings, any early attempts at dismissal, and whether regulators or lawmakers cite this dispute as a reason for changing policy. Absent policy changes or new authenticated facts, it looks more like a story about governance and regulation than one about earnings.

Fed firewall: The Supreme Court indicated that it is likely to allow Federal Reserve Governor Lisa Cook to remain in place as long as the case is pending. This reduces the risk of political interference and aids the maintenance of long-term interest rate stability.

Google on the hook: A federal judge largely allowed a consumer antitrust case accusing Google of dominating search to proceed. That keeps the chance of forced changes alive, which could weigh on long-term profits.

Tariff truce: The European Union said it plans to extend the pause on €93 billion of retaliatory measures. That reduces near-term trade uncertainty for multinational margins and investment plans.

Jobs pulse: New unemployment benefit claims came in at 200,000. These figures are followed closely, as jobs have a large influence on interest rate decisions.

Prices still sticky: A business activities survey revealed that growth continues to be supported by business activities, with the Purchasing Managers’ Index posting at 52.8. It also revealed that tariff-sensitive price pressure is an issue as “rates are staying higher for longer."

Oil risk premium returns: Oil rose as Trump warned an “armada” is headed towards Iran. Any sign of supply concerns can put upward pressure on energy prices and then spill over into inflation and bond markets.

Fintech consolidation: Capital One announced that it would purchase Brex in all-stock and cash for $5.15 billion. It's yet another sign that the payments world is consolidating.

Intel sets the tone: Intel Corp.’s earnings report last week offered investors a fresh view of the chip market. Whenever the guidance changes, the spending programs tend to follow the changes.

3M’s reset: 3M has just provided guidance on its 2026 plans. Its guidance has a direct influence on the cash generation projections developed by investors.

Demand Check from Oil Field: Halliburton’s update provided a real-time sense of global drilling activities. The reason is that energy spendings create a cycle of profitability in the energy sector.

Cash speaks louder than words: SLB announced that they expect more than $4 billion of cash return to shareholders in 2026. This can give energy services stocks a boost.

Housing activity turns down: Home sales pending fell by 9.3% last December. Considerably, the housing sector is highly interest-rate dependent. So, a drop in home sales is a hint of a slowdown in consumer activity, too.

Abbott’s outlook test: Abbott's outcomes and 2026 outlook transformed perceptions for growth potential in all major areas. In defensive stocks, forecast results are essential in describing the predictability of corporate profits.

Citi keeps cutting: The firm is set to start the next round of job cuts in March, following about 1,000 seasonal reductions in January. Improving profits can result from cutting costs, although there is evidence that the turnaround process is ongoing.

IPO window creaks open: EquipmentShare raised about $747 million by selling 30.5 million shares at $24.50. The bigger takeaway is renewed appetite for new listings, which improves exit options for late-stage backers.

Streaming deal showdown: Netflix dismissed Paramount’s bid for Warner Bros. Discovery as not credible and pitched its roughly $82.7 billion all-cash offer as the cleaner path versus a debt-heavy rival proposal. Investors now have to price the fight around financing risk, leverage, and how fast a deal can close.

Made-in-Texas shift: Pegatron expects its first United States-operated factory in Texas to finish by the end of March, with trial production starting soon after. It deepens the United States manufacturing for Apple’s supply chain and could reduce trade friction as the United States import tariff on Taiwan is set to fall to 15%.

Other interesting reads:

Ben & Jerry’s board squeeze: Magnum Ice Cream Company accused Ben & Jerry’s former board chair, Anuradha Mittal, of severe improprieties and claimed the brand’s independent board has dwindled to only two from eight directors. The controversy is now the subject of the United States court proceedings, and the brand faces legal and reputational risks due to its associated value statements, which can also extend to the holding companies. (The Ice War)

The in-flight Wi-Fi face-off: The high-profile feud between Elon Musk and Michael O'Leary of budget airline Ryanair threw a pertinent business issue back into sharp relief: Is high-speed Starlink connectivity a necessity that high-end carriers must incorporate in their flight services, or is this a pricey amenity that budget airlines can’t afford? As a pre-installation cost of as much as $170,000 per plane, this is indeed a substantial consideration. (The Pricy Wi-Fi)

Pound’s best week in months: Sterling rose and was headed for its strongest weekly gain against the United States dollar since August, after stronger-than-expected retail sales and a rise in the composite Purchasing Managers' Index were reported in the United Kingdom. A stronger currency can pressure exporters' earnings and also push investors to rethink how soon the Bank of England cuts rates. (The Future Cuts)

🟩 Up this week

Teledyne Technologies (TDY) +4.51% WTD: Profits jumped from a year ago, and margins improved, and the company reinforced its forward earnings outlook. (The Improved Margins)

Life Time Group (LTH) +8.70% WTD: The company pre-released strong preliminary fourth-quarter and full-year results and put out 2026 guidance. (The Bright Future)

Travelers (TRV) +2.93% WTD: Travelers posted strong fourth-quarter and full-year results, helped by a much better combined ratio and meaningful capital returned to shareholders. (The Strong Results)

Microsoft (MSFT) +1.62% WTD: Microsoft moved up after winning a roughly $170 million United States Air Force cloud-services award. (The Trading Revenue)

🟥 Down this week

GE Aerospace (GE) -9.58% WTD: GE Aerospace reported a strong quarter and issued 2026 guidance, but the stock still slid as the market digested expectations after a big run. (The Big Run)

McCormick (MKC) -10.03% WTD: McCormick’s 2026 outlook pointed to trade headwinds and higher costs. That combination can squeeze margins and usually hits the valuation multiple. (The Higher Costs)

Kraft Heinz (KHC) -1.49% WTD: Kraft Heinz filed disclosures tied to a resale prospectus for Berkshire’s stake. The possibility of a large block coming to market can weigh on the stock, even if nothing changes operationally. (The Company Resale)

Palantir (PLTR) -0.92% WTD: Palantir slid as investors pulled back from pricey software and artificial-intelligence names on tariff and geopolitical nerves. (The Tariff Consequences)

That’s the wrap for this week’s market movements. We’ll be back next week with more updates on our live portfolio.

Until then, happy investing!
— The Investogy Team, Kätlin & Siimon

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