The CEO of JP Morgan maintained that today the situation is under control, but the projections are critical. Reuters
Jamie Dimon, CEO of JP Morgan Chase, the largest US bank, issued a warning when presenting the entity’s results for the third quarter.
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“The world is facing the most dangerous time in decades. The war in Ukraine, combined with the conflict unleashed after the attacks on Israel last week, can have serious implications for energy, the food market, global trade flows and geopolitical relations,” the manager reflected.
In a meeting with journalists, Dimon expressed concern about the conflicts unleashed worldwide. “While we hope they are resolved as soon as possible and in the best possible way, we are preparing our firm for a wide range of possible outcomes in order to be able to address the needs of our clients no matter how challenging the environment,” he said. .
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This is not the first time that Dimon has drawn global attention with his statements. A few weeks ago he shared his position in relation to artificial intelligence and the impact it can have on the global labor market in the short term. On this occasion, the banker businessman’s analysis focused on the socio-economic aspect of war conflicts around the world.
As reported by Bloomberg, Dimon’s counterpart at Citigroup, Jane Fraser, dedicated part of her results presentation appearance to directly addressing her employees who work in Israel. The bank says it is the foreign financial institution with the greatest presence in that country. “Despite everything they are having to face, our workers continue to keep the bank running in the country,” said Fraser, noting that some of the employees have even been called up. “I feel totally indebted to their level of commitment to our clients in particular and to others in general.”
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The executives’ words came after Israel issued an ultimatum urging it to evacuate the northern part of the Gaza Strip as part of a possible ground invasion of the territory. The UN had warned that the maneuver would be extremely complex, given that there are more than a million people living in that part of the strip.
Despite Dimon’s concerns, JP Morgan beat analysts’ expectations last quarter. The bank reported earnings of $4.33 per share, compared with the $3.90 expected by analysts. In total revenues reached USD 39.9 billion, exceeding the expected USD 39.57 billion, according to Refinitiv data.
According to Dimon, the FED could raise the interest rate by 1.5 points in the short term. Reuters
In contrast, the New York-based bank also reported a 6% drop in investment banking revenue in the third quarter. Investment banking fees fell 3% due to lower equity and debt underwriting activity, while deposits decreased 4% year-over-year during the period under review.
In this context, one of the biggest concerns of Dimon and international financial analysts is the possible scenario of interest rate increases by the United States Federal Reserve. This situation would increase interest in the dollar, which would cause an appreciation of the US currency in line with the depreciation of the currencies of other countries.
In previous interviews, Dimon has said that the Federal Reserve may be far from ending its aggressive regime of interest rate hikes in the fight against high inflation, and that the Central Bank is likely to continue raising rates by another 1.5 points. percentages, up to 7%.