FirstFT: JPMorgan plans ‘unmatched’ spending spree.

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Good morning.

Our top story today is that JPMorgan Chase is planning a “incomparable” spending sprees. this year of $15.7 billion on new initiatives that would include hiring, marketing and technology investments. The planned spending is $2 billion more than the bank spent last year.

“Our competitors have not and cannot invest at the levels that we do. And these investments represent significant future operating leverage for years to come,” said Marianne Lake, co-head of the bank’s consumer and community division. Its business unit is expected to spend $7.9 billion on new investments, an increase of $800 million from 2022.

The bank’s announcement during its investor day on Monday is another sign of the growing bifurcation between major US banks and small lenders that have come under pressure this year.

JPMorgan also raised its outlook for net interest income by $3 billion after the The affair of the First Republic. The NII is the difference between what banks pay on deposits and what they earn from loans and other assets.

Here’s what I’m looking at today:

• Russia-China trade forum: Russian Prime Minister Mikhail Mishustin will lead a high-profile delegation at the Russia-China Business Forum in Shanghai. The event is expected underline China’s growing support for President Vladimir Putin after Western nations passed sweeping sanctions in response to war in Ukraine.

• EU support to Ukraine: Defense ministers of the EU Foreign Affairs Council will meet to discuss the bloc’s support for Ukraine. The ministers will also have an informal exchange with NATO Secretary General Jens Stoltenberg over a working lunch.

• Economic data: S&P Global/CIPS is to release its monthly Purchasing Managers’ Index (PMI), which tracks the economic direction of the manufacturing and service sectors for Japan, France, Germany, the US, Australia, the UK and the Eurozone.

Who will win the US-China tech war? Join FT and Nikkei Asia reporters for a Webinar only for subscribers on May 25th and ask your questions to the panel.

Five more top stories

1. South Korea signals that its chip makers can close the gap following China’s ban on US chipmaker Micron, saying it was up to Samsung and SK Hynix to decide whether to expand their businesseg. Last month, the White House asked South Korea to urge its chipmakers to refrain from ramping up sales to China if the sale of Micron products was restricted by Beijing.

2. Pro-Ukrainian fighters “liberate” a village in the Belgorod region of Russia. A group of Russian anti-Kremlin fighters stormed the region bordering Ukraine on Monday. The Kremlin vowed to “destroy” the group and videos shared by Belgorod residents showed attack helicopters flying over houses in the area. Kiev denies direct involvement but says fighters are trying to do so create a “safe zone” to protect the Ukrainians.

3. Mizuho accepts $550 million deal for boutique investment bank Greenhill, betting that the ailing company can help kickstart its US ambitions. Mizuho, ​​one of Japan’s largest financial institutions, will pay $15 a share for Greenhill, more than double the stock’s closing price on Friday.

4. TikTok sues Montana over first US state ban. The company, owned by China’s ByteDance, has filed a lawsuit claiming a state ban on the app on national security grounds violates first amendment rights and U.S. foreign and interstate trade rules.

5. BBC accused of defaming Indian Prime Minister Narendra Modi in lawsuit in Delhi. The suit alleged that the British broadcaster’s recent documentary series “throws an insult on the country’s reputation” and makes false and defamatory suggestions about the Indian government. The backlash against the BBC comes at a sensitive time in India-UK relations.

The big read

A class of chemicals known as PFAS (per- and polyfluoroalkyl substances) is critical to the manufacture of everything from smartphones to firefighter suits, but especially microchips. However, these “forever chemicals” they also have the potential for significant health and environmental impacts.

We are also reading. . .

Chart of the day

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Profits of Goldman Sachs, Morgan Stanley and a handful of other Western banks in China fell sharply last year, when Covid-19 lockdowns and geopolitical tensions dashed hopes that their operations in the country could finally start to be profitable. JPMorgan and UBS were the only banks whose profits increased in a group of seven Western investment banks.

The lackluster performance marks a reversal from 2021, a record year for investment banks globally, when six of seven banks turned profits in their mainland operations after Beijing allowed them to start taking full ownership of units for the first time following a trade agreement with the United States.

Take a break from the news

Former Democratic presidential candidate, Hillary Clinton, it offered stiff ratings on the Russian invasion of Ukraine, US-China relations and US President Joe Biden’s re-election prospects during an appearance at the FT Weekend Festival in Washington over the weekend.

Additional contributions by Gordon Smith and Tee Zhuo