"I think Treasuries at these rates, I wouldn't touch them with a 10-foot pole," he told a virtual gathering hosted by Goldman Sachs this week. In an exclusive interview with CNN Business, CEO Jamie Dimon tells Poppy Harlow about JPMorgan Chase's $350 million investment in the future of work. JPMorgan Chase CEO Jamie Dimon said that low-yielding Treasurys are a poor investment right now. JPMorgan Chase boss Jamie Dimon is urging ''faith," "patience" and "fortitude" as Wall Street sorts through a tense presidential election that may not get resolved for days. Jamie Dimon appears restless. Yet banks can't complain -- they've been storming the market lately to borrow at historically low interest rates. Bush threw up on his Japanese host in 1992 has there been such a wretched repast as the one that transpired between British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen this week. Dimon has given money to politicians in both parties over the years, in particular senators who oversee the banking industry. Dimon's comments were in response to a question from Goldman Sachs analyst Richard Ramsden about whether the markets were fairly priced. J.P. Morgan CEO Jamie Dimon tells CNBC he no longer considers himself “barely a Democrat.” “My heart is Democratic but my brain is kind of Republican,” Dimon tells CNBC. Senators "Grill" One of Their Top Political Donors, Jamie Dimon. Morgan Stanley says the market reaction to the Fed's guidance on quantitative easing is likely to be muted, as long as it doesn't suggest anything sooner than the first half of 2022 for any drop-off in purchases. Get this delivered to your inbox, and more info about our products and services. (Photographer: Al Drago/Bloomberg) Jamie Dimon Is Begging for Deals. At least the path ahead for the EU's historic fiscal spending effort is looking less thorny. A Division of NBCUniversal. And traders have pulled forward their expectations for the next rate cut from the Bank of England. Aug 24th 2017, 2:45 from Print edition. Jamie Dimon slams 'childish' politicians. ", That analogy actually underpins Barclays support for a steeper curve in Europe, as the Bank of Japan's gradual tapering of purchases to maintain the 10-year around zero actually allowed the long end of the curve to lift, and "has contributed to steepening at times.". Apparently some wit on the Commission's staff arranged for turbot (fished in U.K. waters) and scallops, followed by pavlova -- an Australian dessert possibly intended to impart the flavor of trade relations to come if no deal is struck. We've talked about the dwindling hopes for a skew to longer-dated asset purchases, though most of Wall Street does expect a plan to be aired. Jamie Dimon: Respect the democratic process — and the election outcome; Jamie Dimon tells JPMorgan employees to have 'patience and fortitude' until final election results; Jamie Dimon: Respect the democratic process -- and the election outcome | U.S. More about Election: 8:13. Two-year inflation swaps are at levels last seen more than a year ago. Data is a real-time snapshot *Data is delayed at least 15 minutes. The yield on the 10-year Treasury was last at just 0.9% and has stayed below 1% since breaking below that threshold during the March pandemic collapse in stocks. Italy and Greece are now among the last remaining euro zone members with yield curves above zero, and the global swamp of negative-yielding debt this week sprawled beyond $18 trillion. "The Fed's reinforcement of no hikes in 2023 via the dot plot could push out timing of rate hikes priced in the market, further supporting curve steepening.". The progressive base of the Democratic has to let Biden—and the rest of the party's leaders—know which way the wind is blowing. JPMorgan Chase CEO Jamie Dimon in his annual letter to shareholders Monday warned of a coming deep recession with financial shocks similar to … Jamie Dimon is the chief executive of JPMorgan Chase, the largest US bank by assets. That means valuing Treasuries for their capital appreciation potential rather than focusing on their traditional role as sources of liquidity, duration and diversification (who's heard about the death of 60/40?). "I would not be a buyer of Treasurys," Dimon said Tuesday at an annual Goldman Sachs financial services conference. JPMorgan Chase CEO Jamie Dimon said he would avoid investing in low-yielding Treasurys right now. According to their calculations, if we applied current regime to the past: "The Fed would have tightened only once in the past 22 years... or perhaps not at all. Of course, as the head of a lending institution with $3.2 trillion in assets, JPMorgan has to continually purchase Treasurys and other low-yielding investments to earn a spread, a fact that Dimon acknowledged. On the hunt. Jamie Dimon on politics and TARP. Dimon, 63, spent much of last year mulling a 2020 presidential run, sources said. Sign up for free newsletters and get more CNBC delivered to your inbox. South Korea has the formula to beat Covid's spread, The Weekly Fix: Jamie Dimon’s Scraps, Brexit’s Last Supper. JP Morgan Chase CEO Jamie Dimon, in a wide-ranging interview, discusses taxes and infrastructure, finding balance in politics … Some other infamous feasts. He's motivated by the Federal Reserve's new average inflation-targeting strategy, which by HSBC's reckoning, should see the Fed persist with its lower-for-longer guidance through the year and beyond. Duration alone gives buy-and-hold investors plenty to worry about -- interest-rate risk on government bonds is higher than almost ever before, meaning that for each percentage point increase in yield, the price could drop sharply. Perhaps a different perspective on this vanishing yield situation is in order (European audience nods knowingly). Dec 10 2020, 4:33 PM Dec 11 2020, 5:28 PM December 10 2020, 4:33 PM December 11 … However, if inflation picks up because of the government's fiscal stimulus programs that delivered money to households and businesses, bonds purchased today could end up being a money loser. "I think Treasurys at these rates, I wouldn't touch them with a 10-foot pole.". Business News. Jamie Dimon appears restless. JPMorgan Chase CEO Jamie Dimon turned up the heat on congressional politicians on Wednesday for failing to … Just how the market's going to make of the Fed's new, fuzzier charts for its projections, we'll have to wait and see. Since bond prices must move inversely to yields, people like Dimon see little room for Treasurys to rally with rates already at such low levels. Moreover, it might not be around for so long. Standouts Hungary and Poland finally overcame their objections to a rule-of-law provision, with a little smoothing from Germany, clearing the way for the $2.2 trillion budget and stimulus package. The Prime Minister is headed for a last, final, ultimate attempt to bridge the gap Sunday, having warned British businesses and the public to prepare for a stalemate on trade, and reversion to World Trade Organization terms. "Unfortunately we are -- we have to," he added. Harsh Drolia Management 4322-009 12/2/2020 The interview of Jamie Dimon and Bob Iger about politics, china, and other things was intriguing. Spain was able to sell its first debt at a yield below zero this week, with investors effectively paying the government to take their money for 10 years. Syndicates have had a stellar year raising the cheapest debt on record, pumping out more than 1.7 trillion euros ($2.1 trillion) of bonds. ". Ben Emons of Medley Advisors suggests that the smart money should be focused on price. It's the Fed meeting next week. Sponsored by: Changing maps: How the shape of global banking has turned upside down . In fact, we find the pace guidance from the press conference as somewhat similar to BoJ guidance. Report. Or, how a flatulent donkey gave us Henri Rousseau. Even before Thursday's decision, investors were feeling muscled out of the market. Not since George H.W. Banks have accounted for around three-quarters of the $32.6 billion of high-quality corporate bonds sold so far this month, Ilya Banares reports (it's been the busiest December since 2016). 0 Comments. Elisa Martinuzzi; Bookmark. Browse more videos. Stay tuned to our Brexit coverage for more excruciating developments. JPMorgan's Jamie Dimon: running the country a job for politicians, not CEOs This article is more than 4 years old. “I think Treasuries at these rates, I wouldn’t touch them with a 10-foot pole.” They're putting money on surging import costs, exacerbated by a further slump in the pound -- it's already slid about 1% versus the dollar -- driving consumer prices higher. Jamie Dimon, the billionaire chief executive officer of JPMorgan Chase, said Sunday that he is “done with politics” — days after he said he could beat President Trump in an election. How can brands navigate politics in 2017? Volumes in bund futures have slumped more than 60% since the ECB started buying bonds and yield ranges have collapsed across the region, our Brussels reporter John Ainger wrote this week in his study of a trader's nightmare. A couple of years ago Dimon warned that the 10-year was headed to 6%, then 5%. Some traders are bracing for negative interest rates by early 2022. So while JPMorgan may chafe at the hit to its net interest margin, its brethren can at least take some comfort in their ability to lock in the lowest debt-service costs on record. "There may be a bubble in small parts of the stock market, not all of it," Dimon said. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Depuis janvier 2005, il est président-directeur général de JPMorgan Chase Co2. JP Morgan boss Jamie Dimon and Goldman Sachs chief executive David Solomon are among the US finance chiefs to have reacted to Joe Biden’s election as the next US president. Now we're sitting just shy of 1%. The European bond market is all but dead. Welcome to The Weekly Fix, the newsletter that thinks perhaps it was not pavlova the Europeans served, but Eton Mess, which may have been intended as a sentimental offering. 5 years ago | 0 view. Larry Dwyer says they're "mildly bullish" on the market, putting the 10-year yield at 0.75% at the end of 2021, versus a consensus of 1.15%. JPMorgan Chase CEO Jamie Dimon said that low-yielding Treasuries are a poor investment right now. Trump reiterates vow to give Dodd-Frank banking law 'major haircut' Business News . Jamie Dimon slams 'childish' politicians November 18, 2020, 1:38 PM U.S. politicians are behaving like children by not passing a new stimulus bill that could help Americans whose income has been wiped out by the coronavirus pandemic, JPMorgan Chase & Co Chief Executive Jamie Dimon said on Wednesday at a New York Times conference. Jamie Dimon. Politics; BloombergQuint. "I would not be a buyer of Treasurys. Playing next. We want to hear from you. American and … James « Jamie » Dimon, né le 13 mars 1956 à New York, est une personnalité de la finance américaine. Follow. JPM's Dimon says he wouldn't touch Treasurys with a 10-foot pole, DImon was more positive on the stock market: "There may be a bubble in small parts of the stock market, not all of it. The euro strengthened, Bund yields twitched, and Spanish 10-year yields, which were closing in on zero just hours before, edged as much as 5 basis points higher. Democratic presidential candidate Sen. Bernie Sanders (D-Vt.) holds hands with Rep. Alexandria … Dimon was included in Time magazine's 2006, 2008, 2009, and 2011 lists of the world's 100 most influential people. It's still tough to imagine. Why Is That? But the bulk of his funds … JPMorgan Chase & Co.’s chief executive officer is imploring investment bankers — those most tireless of salespeople — to ring him up and pitch M&A ideas. Even Australian bank bills saw yields drop sub-zero. Women are crushing it in the race for a vaccine. Fine distinction. Jamie Dimon, CEO of JPMorgan Chase, in Washington, D.C., on Oct. 18, 2019. Jeff Bezos, Jamie Dimon, and other leaders of the largest companies in the US offered congratulations and other messages of goodwill. Prove that it's not. "Even if there is no explicit yield curve control, we think the current policy backdrop is not far from it indirectly. In their view, that whiff of ambiguity should help boost term premium, pushing longer end rates higher and steepening curves in a controlled way. Kuwaitiunique. If You Want Joe Biden to Govern More Like FDR Than Jamie Dimon, Vote for Bernie Sanders on Tuesday in New York and Kentucky. By the way, pavlova is definitely Australian. November 18, 2020. This is where we pause to reflect on doomed dinners. Money markets in the U.K. are priced for a 10 basis points cut to zero in August now, instead of by year end as of last week. Perhaps the menu didn't help. And that's despite a teeming primary market. Président-directeur de Bank One de mars 2000 à juin 2004, il devient directeur des opérations chez JPMorgan Chase Co. à la suite de la fusion de ces deux banques. ; The yield on … It looked to me that Jamie Dimon had adopted an affiliative leadership style: a leader who can make healthy relationships. For closing on a somber note, here's the near-record daily outflow the largest U.S. corporate bond exchange-traded fund suffered this week: P.S. Jamie Dimon took shots at the outgoing Trump administration, even as he made it clear he won’t be joining the Biden White House. All Rights Reserved. Kena Betancur/AFP via Getty Images This story is available exclusively to Business Insider subscribers. Alan Minsky. The market reaction is probably a reflection of the ECB's "flexible" approach to purchases, to keep financial conditions in check where needed, Barclays strategists including Cagdas Aksu point out. JP Morgan Chase CEO Jamie Dimon just said the quiet part out loud when it comes to President Donald Trump. A … Jamie Dimon (/ ˈ d aɪ m ə n /; born March 13, 1956) is an American business executive.He is Chairman and Chief Executive Officer of JPMorgan Chase, the largest of the big four American banks, and previously served on the Board of Directors of the Federal Reserve Bank of New York. Democrat challenger Biden’s victory over Republican incumbent Donald Trump in the US presidential election was called on 7 November after days of tension. Traders aren't hanging around for the humble pie. The Democrat stopped short of commenting specifically about Donald Trump or … -- Emily Barrett, Asia FX/rates editor. That’s a nice problem to have, but one the lender is struggling to solve. "To be profitable in government securities, investors should not trade on yield, but on price," he wrote this week. Separately, Dimon said that JPMorgan's expenses will be higher than $67 billion next year, above the $66 billion estimate of many analysts, as the bank is "finding things we want to invest in.". He also added that fourth-quarter revenue in both trading and investment banking operations is tracking 20% higher than a year earlier. Exclusive: Jamie Dimon sounds off on public policy . Jamie Dimon says he wouldn't touch Treasurys with a 10-foot pole at these rates Published Tue, Dec 8 2020 5:19 PM EST Updated Tue, Dec 8 2020 6:03 PM EST Hugh Son @hugh_son Jamie Dimon's had enough The CEO of America's largest bank is tired of willing U.S. government yields higher -- now he's done with the market. The latest action from the European Central Bank -- which has extended its pandemic bond buying program and added another 500 billion euros ($607 billion) -- is another nail in the coffin. Dimon made a … The long-time JPMorgan CEO and chairman responded that if investors' base case occurs – a recovery next year spurred on by coronavirus vaccines — then that means today's "bond spreads and most equity prices would be justified.". I could see how different companies' CEOs are different in many ways while they have some similarities too. JPMorgan is sitting on excess capital, but that shouldn’t cloud the CEO’s better judgment in pursuing M&A. It was the first part of that statement that grabbed everyone's attention. One bank that's still out on a limb with Treasuries -- and in a tactical sense given the likely "twists and turns" in the year ahead -- is HSBC. JPMorgan's Jamie Dimon said he wouldn't touch US Treasurys with a "10-foot pole" because they're a poor investment right now, CNBC reported. Low yields in the fixed income world are one reason that banks' profitability and stock values have been under pressure since the pandemic began. The CEO of America's largest bank is tired of willing U.S. government yields higher -- now he's done with the market. by. “I would not be a buyer of Treasuries,” Dimon said Tuesday at an annual Goldman Sachs financial services conference. He ultimately decided that he couldn’t win either party’s nomination. JPMorgan Chase CEO Jamie Dimon is getting a 74 percent pay raise despite the bank paying out about $20 billion last year to settle several legal and regulatory issues, the company announced on Friday. In contrast, the consensus forecast implies the Fed is likely to be endorsing future tightening moves next year, or that the bond market will ignore the Fed.". Got a confidential news tip? Expectations for this soiree were higher, however, as it was billed as one of the leaders' last chances to avoid the U.K. crashing out of the European Union. Sound familiar? It’s the clearest indication yet that the biggest U.S. bank would prefer not to sit on its excess capital. Markets; Business; BQ Blue Exclusive; Videos; Research Reports; SUBSCRIBE LOGIN. Under and AIT rule, the Fed should be dovish until inflation averages more than 2% for a period of years. It's broken pavlova, just as tasty. Jamie Dimon on politics and TARP. The ECB will own roughly two-fifths of each of its two largest sovereign markets, Germany and Italy, by the end of next year, according to Bloomberg Intelligence.European markets did have just enough vim Thursday to register disappointment at the central bank's additional commitment, in particular the optimistic caveat that it "need not be used in full." © 2020 CNBC LLC. Here's Eton Mess. Freshman Rep. Katie Porter stumped multimillionaire JPMorgan Chase CEO Jamie Dimon during a hearing Wednesday with a simple question: How are workers supposed to make ends meet? Fourth-Quarter revenue in both trading and investment banking operations is tracking 20 % higher than a year ago year. 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