Jamie Dimon has long cited geopolitical tensions as the biggest threat facing the economy. Not only does he believe this is still the case, he says the situation will only get worse.
JPMorgan announced its third quarter results today, and the CEO attached a snapshot of the market outlook.
in the memoDimon counted human suffering among the costs of conflicts in places like Ukraine and the Middle East. Short-term economic disruption.
A Wall Street veteran wrote: “We have been closely monitoring the geopolitical situation for some time, and recent events indicate that the situation is dangerous and worsening.
“Significant human suffering has occurred, and the consequences of these situations can have far-reaching implications for both short-term economic outcomes and, more importantly, the course of history.”
Dimon, a billionaire banker, has previously highlighted the devastating human cost of these conflicts, speaking at the 2024 Financial Markets Quality (FMQ) Conference last month. He mentioned the number of deaths and the number of children displaced as a result of Russia’s invasion of Ukraine.
It is estimated that 1 million people have been killed or injured since Russia invaded the European country of Ukraine in February 2022.
Ukrainian authorities also believe that more than 19,000 children have been deported or forcibly relocated to Russian territory, with fewer than 400 returning to their families. Russian authorities reportedly claimed that the children were being sent to their home country to ensure their safety.
Those numbers prompted Dimon to label Russia, along with Iran and North Korea, an “axis of evil” of countries “every day working on ways to make things even worse for the Western world and the United States.”
Mixed economic outlook
America’s largest bank is doing well.
JPMorgan this week reported third-quarter 2024 sales of $42.7 billion, up 7% from the same period last year.
Results were hampered by a 31% decline in consumer and community banking net income, equivalent to $4 billion, due in part to lower deposit balances and net interest income, JP said.
Mixed bag means daimon—He was paid $36 million for the job in 2023 and is paying close attention to economic issues going forward.
“While inflation has slowed and the U.S. economy remains resilient, several challenges remain, including large budget deficits, infrastructure demand, trade restructuring, and global remilitarization,” Dimon said in the earnings call. Important issues remain.”
The 68-year-old has previously warned that Uncle Sam’s economic resilience and ability to defend Western leaders are inextricably linked.
Harvard Business School graduate is one of many sounding the alarm That America’s $35.7 trillion national debt burden will cause a crisis.
For Mr. Dimon, waiting until problems like the fiscal debt are inevitable risks national security.
Speaking on FMQ in Washington, he said: “People say that when countries go into debt, that’s when they lose real economic power in the world.
“Our economic strength is the basis of our moral strength and our military strength. We must always keep that in mind, so we want to address this early.”
prepare for the worst
Dimon concluded, “While we hope for the best, these events and the prevailing uncertainty demonstrate why we must be prepared for any environment.” .
That JPMorgan is prepared for all geopolitical and economic outcomes will come as no surprise to those who have studied Mr. Dimon’s leadership principles.
In his 2023 letter to shareholders, Dimon began the business lessons section by outlining the benefits of the OODA loop.
He explained: “Militaries, often operating in the extreme intensity of life and death, and in the fog and uncertainty of war, use the term “OODA loop” (Observe, Direct, Decide, Act, Repeat). use Review, analyze, decide, and act.
“The importance of observation and thorough evaluation cannot be overstated. Failure to do so will result in grave mistakes not only in war but also in business and government.”
