Jamie Dimon: How Geopolitics Really Affect The Global Economy

Jamie Dimon joins Influencers with Andy Serwer to discuss interest rate cuts, student loan crisis, and how geopolitics affect the global economy.

affect the global economy

Jamie Dimon: How Geopolitics Really Affect The Global Economy

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q1 hedge fund letters, conference, scoops etc

Transcript

To call Jamie Dimon an influencer is an understatement. He's the center of gravity around whom others orbit. Diamond took over J.P. Morgan Chase in 2005 just a few years before the financial crisis struck. He has since turned the bank into the country's second most lucrative business raking in 32 billion dollars in profits last year. The chairman of the powerful business roundtable and a board member at the Federal Reserve Bank of New York.

Dimon is reportedly a billionaire. He's here to talk about the changes that most profoundly shaped the economy and what he's learned up close from weathering them and optimizing them.

Hello everyone and welcome to influencers. I'm Andy Serwer and welcome to our guest JP Morgan Chase CEO Jamie Dimon. Jamie, nice to see you.

Thrilled to be here.

So we're in this new flagship branch of the bank and I want to ask you about that. But first I have to ask you Jamie first off about the economy and the stock market. The stock market's at a record high essentially and yet we have a trade war with China trade disputes in North America and Europe and rising tensions with Iran.

How do you reconcile those two the you and the markets sometimes inscrutable but if you actually look at geopolitics they really affect the global economy. They could you know these things get worse but they really affect the global economy. I think trade is serious. So you have the United States for example is a very strong consumer good balance sheet. Household formation wages are going up particularly low end consumer confidence very high. And business coms have been very high but it's been rallied a little bit by trade. So we've seen a little bit as business confidence drop. Business investment drop. People worried about the supply lines and I think that may be hampering the economy a little bit to kind of a Tale of Two Cities and whether that's the size Istanbul. It's down a little bit but still quite hot right. And so we know how those two things collide and affects what I don't really know the better thing is to have a deal in China. There are serious trade issues you know so we all want the president to deal with the issues seriously which he's been doing. A resolution would be good but we don't expect a quick resolution at this point.

What do you expect out of the G 20 in Osaka later this week.

I think the best you can expect is that they have a good meeting that they start renegotiating that the tariffs are off for now and give the teams a chance to negotiate a deal which may be if you're if you're lucky you can be done by the end of the year.

So let's talk about this branch I mean obviously you guys have invested a lot here but I thought that all banks were doing was shutting branches down. And yet you know this is a whole new way of doing banking for consumers people and business shows look at facts.

I mean we have a million people a day visit branches so millennials are doing it less. They're still doing it. We've got 50 million people on digital. We've got 21 million different customers a year go into a branch. These branches support local small businesses. They support middle market companies that poor consumers. So these new branches are great so we started this whole expansion five former New branches in 20 major cities right at the heart of some of our competitors in some cases. And we always we love new formats but this format is meant to be a flagship branch and a community center so that when the people come here those are currently we have Uncle Chase chats to come here for a small business or individuals to about investing or starting small businesses. You know we'll have community groups come in and talk about some of things we do to help affordable housing. So we hope that these things will be just great for for JP Morgan Chase and we're thrilled to be on the expansion trail again. I mean it's very experienced right next batch of twelve thousand thousand jobs. Right. And your branches in D.C. Philadelphia Boys are actually doing quite well. It's early but they're doing quite well.

It's very experiential. And I want to ask you then how does that dovetail with those 50 million online customers. I mean is it either online or these super branches.

Nothing in between you know most people actually do we try all these different formats and over time those will change and obviously these formats have more items less tellers more advisors private client advisers small business buyers and mortgage advisors. So the advice part is going up the operational part is going down on average the branch will get smaller. This obviously is not one of smaller ones but on average again small began to remind us of people the average customer visits branches usually the call centers and does digital. They do all of it. And we do more for them. Bill Pay online you can if you are a Chase customer a good customer you can buy and sell stock for free. You're gonna get robo investments is really good phone here. We'll give you guys advice and stuff like that help you save for your kids futures and we're coming up with new products and new services all the time that so people are using the more not less.

Over here they've got a piano. People can see that. I don't know. That's pretty cool to. Go play in there maybe. OK. So I want to ask about the business mix because obviously consumer is a huge part of what you're doing. I mean it's almost what 40 to 50 percent of the bank's business is consumer. What is the mix going to look like.




About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and three kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own 2.5 grams of Gold