Connect with us

Published

on

close video Jamie Dimon: ‘High’ gov. debt has ‘potentially disastrous outcomes’

JPMorgan Chase CEO Jamie Dimon says banks will be there for customers in good times and bad.

JPMorgan Chase CEO Jamie Dimon weighed in on fiscal policy under a new Congress and voiced concerns around rising debt’s macroeconomic impact in an exclusive four-part interview that aired on "Mornings with Maria" Tuesday.

While the U.S. government’s debt sits at $31 trillion and isn’t "today’s problem," according to Dimon, trying to pay it off one day will be a "hockey stick" to the economy and Americans’ pocketbooks.

"I'm talking about on the day that America can't pay its debt, that has potentially disastrous outcomes. Once American debt goes into default, a lot of people can't own it anymore and American debt doesn't cross-default, but it's cumulative," the CEO told host Maria Bartiromo.

"The [Treasury bill] defaults, and the next week T-bill defaults, the next week T-bill defaults, pension plans have to sell," Dimon continued. "It is so potentially dangerous we shouldn't get anywhere near it. And after all the shenanigans of politics, we're going to have to fix this. I think it's very bad for the nation to constantly be looking at this type of thing."

JPMORGAN'S JAMIE DIMON MORE OPTIMISTIC ON U.S. CONSUMER

Dimon further expressed worries about the fiscal regulatory system in America but argued "strong" consumer sentiment and balance sheets – combined with the "right" policy – could help the economy grow by 3%.

Jamie Dimon, chairman and chief executive officer of JPMorgan Chase, says rising U.S. debt has “potentially disastrous outcomes” in an exclusive interview on “Mornings with Maria.” (Getty Images)

"I'm a little more worried about the regulatory system in America, the litigious system, the regulatory system. We're slowing down the formation of business, growth, permitting infrastructure projects. We shouldn't have infrastructure projects take five or seven years," JPMorgan Chase’s CEO argued. "So think, if you're about to put $1 billion into offshore wind and all of a sudden you thought you can do it in two years, but it's going to be 7 to 10 and you don't know and you have to have a lot of litigation aside, are you going to do the $1 billion? And that has become a far bigger problem than dealing with certain types of smaller regulations."

One of the problematic systems involves U.S. energy, according to Dimon, who doubled down on his support for investing in domestic producers’ plans for more pipelines and drilling permits. During a House Financial Services Committee hearing last year, the CEO had said halting funds for new oil and gas products "would be the road to hell for America."

"I believe we should be doing things about climate, CO2, but it's not a simple thing like just stop financing them," Dimon said. "So if I can stop financing a good oil company, that isn't going to help. What we need is pipelines, permits. We can't even get the permits to build solar… we need very comprehensive policy, and I don't think we have that right yet. I think we're spending too much time just yelling and screaming at each other as opposed to what we need to accomplish these very important goals of climate sustainability and resiliency, and efficient and effective oil price and delivery." close video GOP-controlled Congress needs to enact ‘competent policy’: Jamie Dimon

JPMorgan Chase CEO Jamie Dimon calls for policy reform in education, healthcare, immigration and more in an exclusive interview on ‘Mornings with Maria.’

Dimon explained he doesn’t publicly blame or support one party over the other, but that the newly sworn-in Congress should put forward other "competent" policies in education, health care, infrastructure and even immigration.

"We need an immigration policy. We need to stop illegal immigration. We need more legal immigration," the CEO said. "I would have a heart for DACA and things like that. So if we do those things right, we're going to grow 3%."

Rising interest rates and unwinding balance sheets from the Federal Reserve could also create an economic "problem," according to Dimon. The Fed has indicated taking $2 or $3 trillion of cash out of its balance sheet by selling securities.

"At one point, that may cause all of this volatility in the markets and stuff like that. And they'll have to deal with it when they get there," Dimon said. "And part of it is rules and regulations, part of it's the money, part of it's the fiscal stimulus. It's kind of a complex type of thing. But I do expect at one point they'll cause a problem."

GET FOX BUSINESS ON THE GO BY CLICKING HERE close video J.P. Morgan Healthcare Conference serves as ‘birthplace of a lot of deals’: Jamie Dimon

JPMorgan Chase CEO Jamie Dimon discusses the state of the company and macroeconomic picture in an exclusive interview on ‘Mornings with Maria.’

Preparing for an economic "crisis" means gathering the best weapons in your personal arsenal to avoid economic volatility fueled by policy, Dimon noted.

"In terms of crisis, it's having the army to fight it beforehand, proper margins, proper accounting, and then when they happen, you better move very quickly and kind of do the right thing," he said. "It's the type of thing that Warren Buffett refers to, it doesn't go backward, it may stop going forward sometimes, but it's always growing and innovating. And part of it is this enormously prosperous economy, which we need to make sure we keep prosperous."

READ MORE FROM FOX BUSINESS

Continue Reading

World

US-Saudi relationship feels tighter than ever as Trump signs flurry of deals

Published

on

By

US-Saudi relationship feels tighter than ever as Trump signs flurry of deals

In today’s Saudi Arabia, convention centres resemble palaces. 

The King Abdul Aziz International Conference Centre was built in 1999 but inside it feels like Versailles.

Some might call it kitsch, but it’s a startling reflection of how far this country has come – the growth of a nation from desert bedouins to a vastly wealthy regional powerbroker in just one generation.

Trump latest: President signs huge arms deal with Saudi Arabia

Please use Chrome browser for a more accessible video player

Trump signs deal with Saudi Arabia

At a bar overnight, over mocktails and a shisha, I listened to one young Saudi man tell me how his family had watched this transformation.

His father, now in his 60s, had lived the change – a child born in a desert tent, an upbringing in a dusty town, his 30s as a mujahideen fighting the Soviets in Afghanistan, his 40s in a deeply conservative Riyadh and now his 60s watching, wide-eyed, the change supercharged in recent years.

The last few years’ acceleration of change is best reflected in the social transformation. Women, unveiled, can now drive. Here, make no mistake, that’s a profound leap forward.

Through a ‘western’ lens, there’s a way to go – homosexuality is illegal here. That, and the murder of Saudi journalist Jamal Khashoggi, are no longer openly discussed here.

Bluntly, political and economic expedience have moved world leaders and business leaders beyond all that.

Read more:
Why Trump’s idea of using a Qatari jet has faced criticism
Trump ‘thinking’ of going to proposed Zelenskyy-Putin peace talks

Please use Chrome browser for a more accessible video player

Trump visit is ‘about opulence’

The guest list of delegates at the convention centre for the Saudi-US Investment Forum reads like a who’s who of America’s best business brains.

Signing a flurry of different deals worth about $600bn (£451bn) of inward investment from Saudi to the US – which actually only represent intentions or ‘memorandums of understanding’ at this stage – the White House said: “The deals… represent a new golden era of partnership between the United States and Saudi Arabia.

“From day one, President Trump‘s America First Trade and Investment Policy has put the American economy, the American worker, and our national security first.”

Pic: AP
Image:
Pic: AP

That’s the answer when curious voters in faraway America wonder what this is all about.

With opulence and extravagance, this is about a two-way investment and opportunity.

There are defence deals – the largest defence sales agreement in history, at nearly $142bn (£106bn) – tech deals, and energy deals.

Underlying it all is the expectation of diplomatic cooperation, investment to further the geopolitical strategies for both countries on key global challenges.

Please use Chrome browser for a more accessible video player

Trump says US will end sanctions on Syria

In the convention centre’s gold-clad corridors, outside the plenary hall, there are reminders of the history of this relationship.

There is a ‘gallery of memories’ – the American presidents with the Saudi kings – stretching back to the historic 1945 meeting between Franklin D Roosevelt and King Saud on board the USS Quincy. That laid the foundation for the relationship we now see.

Curiously, the only president missing is Barack Obama. Sources suggested to me that this was a ‘mistake’. A convenient one, maybe.

It’s no secret that the US-Saudi relationship was at its most strained during his presidency. Obama’s absence would give Trump a chuckle.

Please use Chrome browser for a more accessible video player

From Monday: Why does Saudi Arabia love Trump?

Today, the relationship feels tighter than ever. There is a mutual respect between the president and Saudi Crown Prince Mohammed bin Salman – Trump chose Saudi Arabia as his first foreign trip in his last presidency, and he’s done so again.

But there are differences this time. Both men are more powerful, more self-assured, and of course the region has changed.

Follow the World
Follow the World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

There are huge challenges like Gaza, but the two men see big opportunities too. A deal with Iran, a new Syria, and Gulf countries that are global players.

It’s money, money, money here in Riyadh. Will that translate to a better, more prosperous and peaceful world? That’s the question.

Continue Reading

US

US-Saudi relationship feels tighter than ever as Trump signs flurry of deals

Published

on

By

US-Saudi relationship feels tighter than ever as Trump signs flurry of deals

In today’s Saudi Arabia, convention centres resemble palaces. 

The King Abdul Aziz International Conference Centre was built in 1999 but inside it feels like Versailles.

Some might call it kitsch, but it’s a startling reflection of how far this country has come – the growth of a nation from desert bedouins to a vastly wealthy regional powerbroker in just one generation.

Trump latest: President signs huge arms deal with Saudi Arabia

Please use Chrome browser for a more accessible video player

Trump signs deal with Saudi Arabia

At a bar overnight, over mocktails and a shisha, I listened to one young Saudi man tell me how his family had watched this transformation.

His father, now in his 60s, had lived the change – a child born in a desert tent, an upbringing in a dusty town, his 30s as a mujahideen fighting the Soviets in Afghanistan, his 40s in a deeply conservative Riyadh and now his 60s watching, wide-eyed, the change supercharged in recent years.

The last few years’ acceleration of change is best reflected in the social transformation. Women, unveiled, can now drive. Here, make no mistake, that’s a profound leap forward.

Through a ‘western’ lens, there’s a way to go – homosexuality is illegal here. That, and the murder of Saudi journalist Jamal Khashoggi, are no longer openly discussed here.

Bluntly, political and economic expedience have moved world leaders and business leaders beyond all that.

Read more:
Why Trump’s idea of using a Qatari jet has faced criticism
Trump ‘thinking’ of going to proposed Zelenskyy-Putin peace talks

Please use Chrome browser for a more accessible video player

Trump visit is ‘about opulence’

The guest list of delegates at the convention centre for the Saudi-US Investment Forum reads like a who’s who of America’s best business brains.

Signing a flurry of different deals worth about $600bn (£451bn) of inward investment from Saudi to the US – which actually only represent intentions or ‘memorandums of understanding’ at this stage – the White House said: “The deals… represent a new golden era of partnership between the United States and Saudi Arabia.

“From day one, President Trump‘s America First Trade and Investment Policy has put the American economy, the American worker, and our national security first.”

Pic: AP
Image:
Pic: AP

That’s the answer when curious voters in faraway America wonder what this is all about.

With opulence and extravagance, this is about a two-way investment and opportunity.

There are defence deals – the largest defence sales agreement in history, at nearly $142bn (£106bn) – tech deals, and energy deals.

Underlying it all is the expectation of diplomatic cooperation, investment to further the geopolitical strategies for both countries on key global challenges.

Please use Chrome browser for a more accessible video player

Trump says US will end sanctions on Syria

In the convention centre’s gold-clad corridors, outside the plenary hall, there are reminders of the history of this relationship.

There is a ‘gallery of memories’ – the American presidents with the Saudi kings – stretching back to the historic 1945 meeting between Franklin D Roosevelt and King Saud on board the USS Quincy. That laid the foundation for the relationship we now see.

Curiously, the only president missing is Barack Obama. Sources suggested to me that this was a ‘mistake’. A convenient one, maybe.

It’s no secret that the US-Saudi relationship was at its most strained during his presidency. Obama’s absence would give Trump a chuckle.

Please use Chrome browser for a more accessible video player

From Monday: Why does Saudi Arabia love Trump?

Today, the relationship feels tighter than ever. There is a mutual respect between the president and Saudi Crown Prince Mohammed bin Salman – Trump chose Saudi Arabia as his first foreign trip in his last presidency, and he’s done so again.

But there are differences this time. Both men are more powerful, more self-assured, and of course the region has changed.

Follow the World
Follow the World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

There are huge challenges like Gaza, but the two men see big opportunities too. A deal with Iran, a new Syria, and Gulf countries that are global players.

It’s money, money, money here in Riyadh. Will that translate to a better, more prosperous and peaceful world? That’s the question.

Continue Reading

US

Trump’s biggest ‘deals’ during second term so far

Published

on

By

Trump 'thinking' of going to Turkey for proposed Zelenskyy-Putin talks - as Russia silent on attending

Donald Trump has often said that his “favourite word” is “tariff”. Surely “deal” would come a close second.

The president‘s new term in the White House has been dominated by a protectionist agenda aimed at restoring America’s domestic manufacturing base and jobs.

His primary objective is cutting America’s trade deficit – by which the country imports more in value terms, than it exports.

That gap, the largest for any country in the world, stands at about $1.1trn (£830bn) annually.

Follow the World
Follow the World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

The threat of, and later, the implementation of stop-start tariffs has flung the global trade order into chaos, with some companies and traditional trading partners taking the opportunity of a “deal”, when able to.

Mr Trump has claimed that his work to date is worth $10trn (£7.5trn) to the US economy but experts have said the values are likely to be much lower and almost impossible to quantify.

Here, we outline some of the big deals to have been claimed so far in a bid to achieve Mr Trump’s economic and trade goals.

More on Donald Trump

Please use Chrome browser for a more accessible video player

‘US is losing’ trade war

Stargate

A boost to AI infrastructure in the US was announced by the president on his first full day back in the White House.

The OpenAI-led venture, mostly funded by Japan’s Softbank, will see up to $500bn (£375bn) spent on data centres up to 2029.

It has been widely reported this week that progress has stalled, however, due to US trade tariffs.

Apple

The iPhone maker announced in February its largest ever spending commitment, of more than $500bn (£375bn) over four years.

Along with AI data centres, the company has pledged to build an “advanced” factory in Texas under Mr Trump’s push for US manufacturing growth.

Nvidia

The world’s most valuable chipmaker revealed in April that it was to invest $500bn (£375bn) in the US over four years.

The company, which makes the majority of its chips in Taiwan currently, said it was to spend the bulk of the money on domestic AI servers. Two manufacturing plants – in Arizona and Texas – will also be expanded under the plans.

Please use Chrome browser for a more accessible video player

Starmer defends US deal

US-UK trade deal

More of a truce than a comprehensive trade deal – and almost impossible to put a value on given the disruption to date – but this was the first “deal” that the Trump administration did to end some tariffs against a country.

It sees 25%+ duties on UK-made cars cut to 10% under a quota system that will also see steel tariffs scrapped.

However, a 10% levy remains on all other goods.

Prime Minister Sir Keir Starmer said that the partially completed agreement would save “thousands of jobs”.

Please use Chrome browser for a more accessible video player

US and China pause worst of trade war

US-China trade deal

The president hailed a “reset” in relations with China following a deal, revealed on 12 May, that will end the effective trade embargo between the world’s two largest economies.

US tariffs of 145% and those imposed by China, of up to 125%, had effectively killed most trade altogether but have been paused for 90 days. They have been replaced by effective rates of 30% and 10% respectively.

Saudi Arabia

Donald Trump signed a “$600bn deal” with Saudi Arabia, which includes the “largest defence sales agreement in history” on Tuesday 13 May.

He said during his visit to the kingdom that, in addition to purchases of $142bn (£107bn) of US-made military equipment, there will also be multi-billion dollar deals in Saudi Arabia with US firms including Amazon, Uber and Oracle.

Continue Reading

Trending