Former tech mogul Bill Gates was reportedly threatened with exposure over his alleged affair with a Russian bridge player in her 20s by convicted paedophile Jeffrey Epstein, according to reports in the Wall Street Journal. Gates, who met Mila Antonova at a bridge tournament in 2010, was asked to support a charity set up by Epstein following their meeting. Gates refused and Epstein allegedly threatened to expose the affair unless Gates supported the charity. Gates was introduced to Epstein by Boris Nikolic, a Gates confidant and top science adviser. Epstein was interested in a proposed charitable fund worth billions of dollars and used Gates as a potential backer to secure funding. Epstein was arrested again on sex trafficking charges in 2019 and was found hanging in a prison cell while awaiting trial.
Profits at Western banks in China slumped in 2021 due to COVID-19 lockdowns and tensions between the US and China, according to data seen by the Financial Times. Credit Suisse, Deutsche Bank, Goldman Sachs and HSBC all reported losses, while Morgan Stanley's profits fell. UBS and JP Morgan were the only banks to post higher profits, although HSBC's unit lost less money than in previous years. Seven Western banks have units in China and all have been operating at losses in the country for years, investing in lossmaking outfits in the expectation they would eventually prove profitable.
Jeffrey Epstein threatened to expose an alleged affair between Bill Gates and a Russian bridge player in her 20s, according to the Wall Street Journal. Gates, who met Mila Antonova at a tournament in 2010, refused to support Epstein's charitable foundation, eliciting the alleged blackmail threat. Gates's spokesperson said he met Epstein for purely philanthropic reasons, and had no financial dealings with him. Epstein died in custody in 2019 after being charged with sexual misconduct towards young girls.
The Topix index in Japan is at a 30-year high and experts are pointing to three causes for what they describe as "the Japan rally". The first factor is a change in corporate attitudes towards shareholders and activism that is swinging opinion in favour of changes such as increased return on equity. Many activists are targeting capital-inefficient companies, including those with price-to-book ratios below 1. The second factor is a rise in Japanese inflation that is seen as an end to the country's long-standing deflation problem. The third reason is the falling appeal of Chinese markets. Some investors who might have looked to China are instead turning to Japan for Asia exposure, a stand-off between China's government and Big Tech having made some corporate managers ill at ease. Critics says these cheers should be tempered by concerns over cyclical weakness elsewhere and the possibility of corporate disquiet.
JPMorgan's CEO, Jamie Dimon, will discuss the bank's future growth plans at its investor day conference on Monday. Although the bank has had a strong year, becoming one of the US's largest deposit holders with over 4,800 branches, the bank must try and maintain its momentum heading forward. Mr. Dimon is not expected to step down in the near future, but potential successors include Marianne Lake and Jennifer Piepszak. Nevertheless, shareholders may ask about Anglo-Irish investigation JPMorgan is embroiled in over its ties to Jeffrey Epstein and a failed $175m acquisition of fintech startup Frank. They could also ask about JPMorgan being barred from buying more lenders after angering Washington with its purchase of First Republic.
Macau casino groups have recorded strong Q1 recoveries on revenues, as Covid-19 restrictions lift, with Galaxy Entertainment announcing net revenue recovery to over half its pre-pandemic figures, and overtaking Las Vegas in terms of gross gambling revenue. Analysts note the surprising strength of recovery in the region, as Galaxy focuses on the mass market with steady and strong rebound, countering the crackdown on gambling leading to the arrests of big VIP promoters. It is reported Sands China, the Macau unit of Las Vegas Sands is still experiencing setbacks from severe labour shortages, with only two-thirds of Sands’ hotel rooms available in Q1.
JPMorgan Chase is set to increase its investment in new initiatives by more than $15bn over the next two years, as the bank aims to grow its already considerable operations. The bank earned $12.2bn in the final quarter of last year and expects to increase this to $81bn in 2023, a figure bolstered by its recent acquisition of First Republic. Although the outlook is positive, JPMorgan is preparing for the possibility of future interest rate hikes, which would undermine its already-heavily-squeezed profit margins.
JPMorgan Chase is to spend $15.7bn on new initiatives, including investments in technology, marketing and hiring, according to co-head of the bank’s consumer and community division, Marianne Lake. Her unit is set to spend $7.9bn on new investments, which represents an $800m increase from 2022. The announcement comes on the back of a year in which smaller lenders have faced pressure and represents the latest example of the widening gap between small and large US banks. The wider spending will be $2bn more than the bank spent last year.
