- Top brass from JPMorgan and BlackRock, among the firms to kick off earnings season with their results, said Tuesday that they expect more consolidation in the wealth- and asset-management industries.
- Pressures on money managers have fueled a flurry of acquisitions in those areas this year, and analysts questioned executives about their own deal ambitions, albeit coming from different corners of the market.
- JPMorgan boss Jamie Dimon said the bank would be “very interested” in deals in that space, and BlackRock finance chief Gary Shedlin said the firm was focused on targets that could expand its technology, global distribution, and private markets capabilities.
- Last week, Morgan Stanley said it would buy investment manager Eaton Vance in a deal valued at $7 billion just days after it closed on its E-Trade acquisition.
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Top brass at the world’s largest asset manager and largest US bank told analysts on Tuesday that they expect more mergers and acquisitions in the wealth- and asset-management industries, and signaled both firms are on the prowl.
On the back of Morgan Stanley’s $7 billion deal for Eaton Vance last week, analysts peppered JPMorgan and BlackRock executives with questions about their appetites for deals during their respective third-quarter calls, which helped kick off the latest earnings season.
“Well, since we have you all on the line, our doors, our lines are wide open. We would be very interested, and we do think you’ll see consolidation of the business,” JPMorgan Chief Executive Jamie Dimon said.
“But we’re not going to be more specific than that,” he said, adding there were considerations around what type of deal would make sense for the largest US bank by assets, like technology, product, and execution.
Dimon emphasized early this year that he was interested in carrying out more
eBay’s headquarters in San Jose, California, U.S.
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Amazon’s Prime Day shopping event, which kicks off Tuesday, could also impact a number of other e-commerce companies, for better or for worse, according to one Wall Street analyst.
Typically, online retailers see volatility around the e-commerce behemoth’s annual event, which is normally held in July but was delayed this year due to the coronavirus pandemic, JPMorgan analyst Doug Anmuth said in a note to clients. The implications for online retailers often depends on the categories that Amazon chooses to promote during the shopping event, he said.
Anmuth called out three: Pet supplies retailer Chewy, eBay and the fashion styling service Stitch Fix.
During Prime Day 2019, for example, Anmuth said Amazon offered 60% off a first-time pet food subscription, which Chewy then matched in a bid to compete. EBay ran a sale and marketing campaign that called Amazon out directly during last year’s event, holding its own “Crash sale” that mocked when Amazon’s website crashed once during a previous Prime Day.
This year, Amazon is already heavily promoting its fashion offering and personal-shopper service, which could have implications for Stitch Fix, Anmuth said. Stitch Fix has not publically announced any rival offers around Prime Day.
Representatives from Chewy, eBay and Stitch Fix did not immediately respond to CNBC’s requests for comment.
A number of other companies could see some sort of impact as well. Big-box retailers Target and Walmart are holding their own deal days next week to compete with Prime Day.
JPMorgan is projecting Prime Day, which runs Oct. 13-14, will draw revenue of $7.5 billion over its 48-hour course, up roughly 42% from an estimated $5.3 billion in 2019.
With Prime Day delayed this year into the fall, many analysts expect the event will now mark