admin
“‘The war in Ukraine compounded by last week’s attacks on Israel may have far-reaching impacts on energy and food markets, global trade and geopolitical relationships. This may be the most dangerous time the world has seen in decades.’”
That’s JPMorgan Chase & Co.
JPM,
Chief Executive Jamie Dimon, who kicked off the third-quarter earnings season with an assessment of the current geopolitical environment less than a week after Hamas militants killed more than 1,300 Israelis and prompted a bombing campaign and an expected ground invasion into Gaza.
Dimon said that the wars in Ukraine and the Middle East “may have far-reaching impacts on energy and food markets, global trade, and geopolitical relationships.
“This may be the most dangerous time the world has seen in decades,” Dimon added.
More: Israeli military orders more than a million people in Gaza to evacuate, fears grow of ground assault
Oil prices increased 4% on Friday, as traders were uncertain about stability in the Middle East as Israel ordered 1 million Palestinian residents to evacuate Gaza’s north.
JPMorgan Chase’s stock was up by 4.4% Friday after it reported a stronger-than-expected third-quarter profit.
Asked about the current geopolitical environment and whether he was meeting with other bank executives, Dimon said he runs into other executives in the course of his work, but no emergency gatherings have been planned.
“We’re all climbing the wall of worry a bit…that’s our job,” Dimon said.
The wars in Ukraine and the Middle East are affecting “all global relationships with uncertain outcomes and uncertain timing.”
Banks are preparing for a number of scenarios including a soft recession, a hard recession, higher interest rates and stagflation all possibilities.
While bond yields have climbed quickly in recent weeks, Dimon said historically speaking, “I would not put them in the high category.”
However compared to other periods of high interest rates, debt levels of governments remain much loftier.
Dimon opened up the bank’s third-quarter call with Wall Street analysts with a statement that the company remains “deeply saddened” by the events in the Middle East.
On a call with reporters, Dimon declined to comment on student groups at Harvard University who signed a letter that criticized Israel after Hamas staged an invasion last week.
Read the full article here
