The president of "JB Morgan" warns against negligence with geopolitical risks and inflation

Jimmy Dimon, CEO of Jimmy Diam, warned against negligence to face a series of risks, define inflation, credit differences and geopolitical developments as the most important of these risks. He pointed out that the possibilities to continue high inflation, or to enter a stage of inflation recession higher than many think, warn that asset prices in the United States are still at high levels, and that markets do not keep in mind the risks of potential economic slowdowns. Diam, on Monday, said during the day of the company’s investors, saying that “credit is a bad risk at the moment, and adds that” people who have not yet passed a sharp economic slowdown have a profound understanding of what can happen in the credit market. ” Trump’s commercial policy has an impact on Damon, emphasizing the effects of Trump’s rapidly changing trade policies, causing the clutter of the market due to the fear of the recession, and a decrease in confidence in the origin of the United States, before the markets later recovered after Trump boasted about the progress in dead duties. Even after Moody reduced the United States’ excellent credit rating on Friday, the S&P 500 index on Monday managed to compensate the initial losses, as the traders appear to overcome the effect of reducing the reduction. Damon said: “People feel comfortable just because they have not yet seen the full impact of customs duties.” Customs negotiations still last with various economies, including Japan, South Korea, India and the European Union. Trump recently reached a commercial framework with the UK, and with China, he agreed to a joint temporary reduction in fees, to allow more time to reach a permanent agreement. Nevertheless, Damon believes that the current level of fees is still ‘very high’, considering that it is unclear how other countries will respond, and that the rebuilding of supply chains and increasing manufacturing within the United States will take long. He also warned that estimates of corporate profits in the next phase could be a decline. He added: “I don’t think we can predict the results, and I see that the possibility of high inflation and inflationary recession is higher than others think,” to emphasize that the geopolitical risks are also “very high.” Despite these challenges, Damon expressed his confidence in the bank’s ability to give cohesion in the light of the unrest. On the other hand, to the other hand, the market fluctuations are expected to negatively affect the performance of the bank’s investment services unit. Troy Ruwairbo, head of the business and investment unit at JP Morgan, said the bank expects investment banking to decrease in the middle of dozens of dozens compared to last year, a decline that estimates analysts. Doug Betno, the other Co -Co -Chief, said many customers ‘frozen’ amid these fluctuations. Trump’s policy and global trade war has also led to a slowdown in merger and acquisition agreements, and to freeze some companies’ plans to offer their shares on the stock exchange. However, the bank expects the revenue of trading activities in the market, from the stock and fixed income tools, with a rate in the one category between 5% or 9% on an annual basis, according to Ruwairbo. Bank traders at the bank scored record profits in the first quarter and benefited from the market fluctuations, and Damon said last week that he expected these fluctuations to continue. He concluded his remarks by saying, “There are many things that stop the horizon.”