Jimmy Damon expects that S&P profits will decrease in uncertainty

Jpmorgan Chase CEO Jimmy Damon On Friday, he said that it is expected that corporate profits estimates will decrease amid the uncertainty that the president Donald TrumpCommercial negotiations.

In a call with correspondents to discuss the first quarter ProfitsJPMorgan Cfo Jermy Barnum said he does not see a reason to withdraw the bank’s guidance, which depends on how to operate the economy and interest rates.

His boss, Damon, then interferes, talks about the broader companies world: “I would just like to add companies, some of which may get rid of their instructions. I expect to see more.”

“The analysts have generally reduced S&P’s profits by 5 %,” Damon said. “I think you will see this go down more.”

Later on Friday, Damon determined that he expects analysts to reduce the estimates of the S&P 500 profits for 5 % growth to become flat and then negative 5 % “perhaps next month”.

Companies will report profits within the next few weeks, giving managers an opportunity to update investors on their expectations during a period of increased uncertainty. Since Trump has stumbled, the markets have announced a comprehensive range of definitions on trade partners in America last week, and it has been volatile with the escalation of American -Chinese tensions.

Indeed, companies that are offered to the consumer, including Wal Martand Delta and Border Airways I was affected in parts of them guidance For investors.

Dienon and Barnum said that uncertainty causes customers to retreat from obtaining companies and making investments because they adopt a position to wait and see.

Damon said stories indicate that “people are careful.” “As you know, people are backing from the performance of deals, not just large companies, but the medium market companies are very careful about investment.”

Barnum added that the environment prompted companies to drop long -term plans in favor of “improving the near -term supply chains.”

“This level of uncertainty in politics is what makes it difficult to plan in the long run,” said Barnum.

Meanwhile, consumers have resurrected in the first quarter, and recently there are signs of speeding up purchases about fears that the definitions will make the elements more expensive, the financial manager said.