JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon and his Morgan Stanley counterpart, James Gorman, both said Thursday that they aren’t steering their firms toward shelter even as they see a confluence of global events denting the economy in the months ahead.
“The consumer right now is in great shape,” Dimon said on a conference call discussing his company’s second-quarter results. “So even if we go into a recession, they’re entering that recession with less leverage and in far better shape than they did in ’08 and ’09.”
Gorman, on his bank’s earnings call, said a deep or dramatic recession in the US is unlikely, and Morgan Stanley is “long the US” in most of its businesses. “The US is a great region to be in the world.”
Those verdicts come even as second-quarter results at both JPMorgan and Morgan Stanley were hurt by a slowdown from the pandemic-era bonanza that gave them record revenue and profits.
Risks abound, with soaring inflation spurring central banks around the world to dial back the easy-money policies that had pushed markets to all-time highs. Russia’s invasion of Ukraine, along with worries about food and energy security as well as political instability across regions, are also keeping investors on edge.
“If I had to use one word to describe it, it would be ‘complicated,’” Gorman said on the challenges facing the global economy. He said that “Europe is fighting the hardest,” with the dual threat of the war in Ukraine and pressure on gas prices that’s been particularly problematic for countries such as Germany.
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Digital Finance Analytics (DFA) Blog
Tight Credit Markets Hits Banking's Big Beasts... [Podcast]
APRA released their Macro-prudential Framework for consultation. We look at their approach, and consider the implications. Spiced wet lettuce comes to mind!
I caught up with Steve Mickenbecker from Canstar to talk about APRA’s changes to mortgage buffer rates, how lenders have tweaked their mortgage rates, credit card usage and the apathy tax. So many moving parts in the financial landscape.
Steve Mickenbecker is in Canstar’s Group Executive Team, bringing more than 30 years of experience in the Australian financial services industry. As a financial commentator for Canstar, Steve enjoys sharing his expertise across topics such as home loans, superannuation, insurance, mortgages, banking, credit cards, investment, budgeting, money management and more.
The latest edition of our finance and property news digest with a distinctively Australian flavour. Today we look at Wells Fargo’s jettison of personal lines of credit, and UK banks stopping customers transferring funds to crypto exchanges. It is an over reach – or is something else going on?
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
Banks Behaving Badly - Or Something More? [Podcast]
The latest on the Aussie Post issue, after the Senate initiated a wide-ranging inquiry into the issues surrounding the watches, the wide banking sector issues, and the corporate and political behaviour revealed in the past few months.
This is a significant win for people power.
I discuss developments with Robbie Barwick from the Citizens Party.
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
“Watch-gate” Breakthrough Thanks To People Power... [Podcast]
Elisa Barwick from The Citizens Party joins me to discuss the disturbing developments which are in train, as Central Banks gain more control of the financial system and our futures.
Essentially exercising power outside democratic responsibility, and with the blessing of politicians and the media, a group of technocrats are driving our economy into the ground, to the benefit of the few, on the grounds of “financial stability”. In practice, while it may support big corporations and super-national financial sector players, in practice it is hollowing out the real economy and reducing our civil liberties.
In this show we outline the evidence for this, and propose an alternative. Time is short.
Steve Mickenbecker is the Group Executive, Financial Services at Canstar. I discuss the recent rates changes across the markets in Australia, consider the implications for savers, and touch on negative rates down the track.
Digital Finance Analytics (DFA) Blog
Rates: How Low Will They Go? - With Steve Michenbecker
