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Home / Business / Therefore, investors are then freaked out of trading tensions: JPMorgan's Dimon

Therefore, investors are then freaked out of trading tensions: JPMorgan's Dimon



Expecting a stiff upper lip from Wall Street as we head towards high-profile trading partners in the US and China, is a formidable task.

Stocks set up for another tough day after the Asia shares crumbled under the weight of the latest tensions in the US and China. A Wall Street stock drop on Tuesday left everyone, but three dozen S & P 500 shares were completed in black, and all three main indices are down at about 2% this week.

Not helped the mood, fresh data from China showed a surprising decline in exports. As analysts at TD Securities point out, the US trade deficit remains close to record highs, "a fact that is unlikely to be unnoticed in trade talks tomorrow and Friday."

"An aircraft in the ointment would be this. If this [trade talks] really goes south, it will change global growth."


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1; Jamie Dimon, CEO of JP Morgan Chase

This too should pass? Then our bullet head says today's call from the leader of the global bank giant JPMorgan Chase, Jamie Dimon, who believes that smart people on both sides will make a trade deal and he sees an 80% chance of that happening. Regarding the withdrawal we have seen from the stock market lately, he says it has not been too unusual.

"If you just increased the odds of a real global trade war, it was a rational reaction," Dimon Bloomberg told an interview Wednesday at the bank's annual China summit in Beijing. "The market will fluctuate, economies will fluctuate. People will always be scared and overreacted."

He explains more about the market psyche right now that has deleted 2% of the major indexes this week: "The odds of something bad happens [in trade negotiations] is No matter what you thought they were – 2%, 5%, 10% probably doubled, that's why the market reacts to it because they're not only afraid of the direct effect, they're afraid it reverses global trade, it reverses Global Growth and Trade All Over the World, he says. But then, investors are not looking at all the good news that paints around, he says. "China is growing at 6.5% – it's a trillion dollars in growth. America is growing at nearly 3%, which is half a trillion dollars in growth, "said Dimon." An airplane in the ointment would be this. If this [trade talks] really goes south, it will change global growth. "

Regarding the time of the agreement, Dimon is not so optimistic. Friday will be the day, but hope the higher China tariffs will not be put in place. The CEO said that both the United States and China should take the time to get it done right, with evidence that "tremendous advances" have already been made. "I also don't want to make a deal other than doing a bad thing," he said.

He also touched on US government bonds, which have measured how rattled investors have become the past.

The 10-year tax return

TMUBMUSD10Y, -0.48%

fell to a five-week low of 2,448% on Tuesday, and recorded its largest daily decline since March 22, as the threat of war action increased investors towards port operations such as bonds. Interest rates fall and prices rise when the investor's confidence grows and demands for secured safer investments.

Dimon said that today's yield on 10-year government bond loans looks like "extremely low" and he has told the board of directors the bank has to be able to handle 5%, 7%, 8%, 10% because you are not know. "

He hid himself from giving up an annual report on bond yields, but said" 4% when you have pretty good growth is not a bad number. "

The Market

The Dow

DJIA, -0.03%

S & P 500

SPX, -0.11%

and Nasdaq

COMP, -0.20%

is out for another day of loss. Read more in Market Snapshot

Read: The only 36 shares in S & P 500 that closed with gains on Tuesday

The Dollar

DXY, + 0.00%

are softer, but not against New Zealand dollars

NZDUSD, -0.0909%

after the country's central bank reduced key lending rates for the first time since 2016. Gold

USA: GCU8

is up, American raw

USA: CLU8

is up. Gold

GCM9, + 0.16%

drained one month high.

Europe shares

SXXP, -0.19%

is lower, while Asia shares had a tough day, with Nikkei

NIK, -1.46%

and the Shanghai Composite

SHCOMP, -1.12%

lose more than 1% each.

Startup Course Binance says hackers stole $ 41 million of bitcoin due to a "big security breach" with 7000 swiped from a wallet. No big reaction so far from Bitcoin

BTCUSD, -0.51%

which is down to about 1%.

The map

Our day map from Cresset Wealth Advisors (h / t The Daily Shot) is a timely reminder of what is at stake for some of the largest companies in the United States, one should trade agreement with China cause serious problems. The chart shows which companies have the largest share of revenue from China, with Apple

AAPL, -0.06%

ahead of kilometers.


Buzz

Iran says it will withdraw from some of the nuclear agreements reached in a 2015 landmark agreement, a year after the United States did the same. It is the US Secretary of State Mike Pompeo who made a surprising visit to Iraq, as tensions rise between the two countries.

Profit highlights for Wednesday include Disney

DIS, + 0.68%

online marketplace Etsy

ETSY, -0.18%

dealer Costco

COST, -0.49%

and streaming device maker Roku

ROKU, + 0.28%

after closing clock.

Read: Disney lines up their biggest movies through 2027; get ready for a lot of & # 39; Avatar & # 39;

Electronic Arts

EA, + 4.73%

stock rises after an upbeat forecast and sales figures for the video player. Shares of Papa John's

PZZA, + 2.43%

is also up after the pizza chain topped the Wall Street view.

Sprint

S, -3.11%

reported the biggest decline in mobile phone clients since 2015.

Read: Google presents new privacy tools, smarter AI assistant, cheaper phones

] And: Sweden's ABB creates the world's first carbon-neutral factory

Tweeten

The Uber drivers strike on Wednesday, protesting salaries, lacking regulation and their treatment as private entrepreneurs. Lyft

LIFT, + 0.85%

meanwhile, reported better than expected sales, but also large losses Tuesday, with stocks up, but on positive comments from managers.

Condition: Lyft says that it will not offer these key data, insulting investor intelligence

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And "Thrones Game", the last season turns into a letdown for viewers?

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