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Fox Business 12 October, 2021 - 04:41am

Global supply-chain hiccups caused by the coronavirus have put a damper on economic growth, but the problem will be a fleeting one, JPMorgan Chase CEO Jamie Dimon said Monday

"I should never do this, but I'll make a forecast," Dimon said at a conference held by the Institute of International Finance. "This will not be an issue next year at all. This is the worst part of it, I think great market systems will adjust for it like companies have."

The pandemic has laid bare how interconnected global supply systems are. For instance, a shortage of semiconductor chips has hampered manufacturers of cars and electronics. A dearth of willing workers has resulted in container ships idling at major ports and delays in shipping goods to retailers.

While some experts believe some pain will continue through 2023, Dimon has a rosier view. He said Monday that he believes the economy is set up for growth over the next few years. Part of that is because the strength of the consumer, he said.

"Keep in mind, the consumer's buying other stuff," Dimon said. "They can't buy cars, they're buying home improvement; they can't travel internationally, they travel domestically. The spend level is very high."

"Because of the strength of the consumer, which is extraordinary, they're spending 20% more than they were spending pre-Covid," he added. "And companies are in great shape, they can continue to spend at these levels for a long time."

Supply chain disruptions may end up merely elongating the recovery rather than derailing it, Dimon said.

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Jamie Dimon is expecting the consumer to carry the economy through current bumps back to growth

MarketWatch 12 October, 2021 - 12:34pm

“I’d be optimistic about next year because we’ll be hitting a more normal economy,” Dimon said during a 30-minute interview at the annual Institute of International Finance. Jitters around the highly transmissible delta variant and supply chain disruptions may just be temporary, he said.

Dimon and Citigroup Chairman John Dugan tackled topics including central bank policy, inflation, cryptocurrency and how the banking sector performed through the COVID-19 lockdown.

JPMorgan is seeing some early signs of loan growth, particularly in auto loans, but the economy could be at an inflection point with inflation.

“The amount of fiscal stimulus globally was extraordinary — it’s hard to say it isn’t going to have an inflationary effect,” Dimon said. The stock market has already priced in 10-year Treasury interest rates of about 3.5%, but not as high as 5%, he said. At last check, the 10-year Treasury yield was at about 1.6% on Friday, with the bond market closed Monday for the Indigenous Peoples/Columbus Day holiday.

Banking regulations around statutory liquidity ratios (SLR) and liquidity coverage ratios (LCR) should be re-evaluated because these size constraints limited the ability of banks to lend money during the COVID lockdown last year, Dimon said.

See now: Will bank stocks’ wild rally continue? Here are the numbers to watch in this week’s earnings

Dimon, who met with President Joe Biden last week, called on lawmakers to look past the debate over the debt ceiling and pass an infrastructure measure. The country will more easily solve any debt woes with economic expansion, just as it did after World War II.

“If you’re a policy maker, growth, growth, growth is what matters,” Dimon said.

Public policy makers should first ask what makes sense to help the country, not what will help their clients, said Dimon, who added that he was planning to write a column on this topic.

See Also: Biden says default would risk market tanking, as he meets CEOs of J.P. Morgan, Intel, Nasdaq

Dimon and Dugan both said cryptocurrencies will most likely get regulated at some point, in the vein of traditional sources of capital. The banks have been helping clients with cryptocurrency transactions in individual accounts, but do not hold any such assets on their balance sheets.

“It’s becoming more of a fact of life,” Dugan said of bitcoin and other currencies.

Dugan and Dimon both support a role for banks in addressing climate change. Dugan said he doesn’t support tying banking capital requirements to climate change activities, but said a better way to address the issue is through a review of risk-of-loss language.

“Climate change does present some risks of loss to the bank, although they’re not easy to quantify or figure out,” he said.

For his part, Dimon reiterated support for a carbon tax as an incentive to help lower emissions. “We believe we should be focused on climate—it isn’t about hugging trees,” Dimon said.

Looking back at the impact of COVID, Dugan said banks were better prepared for this more recent crisis partly because of the changes put in place following the Global Financial Crisis in 2008.

“Banks were in a good position and were much more able to lean into the economy by dramatically increasing their loan activity when it was most needed,” Dugan said. “Because of their increased strength, banks were a key part of the solution as opposed to being a key part of the problem as they were in 2008.”

Shares of Protagonist Therapeutics Inc. undefined soared 87.0% in premarket trading on Monday after the company said the Food and Drug Administration had lifted a clinical hold on clinical trials of rusfertide, its experimental blood cancer treatment. The hold was put into place over concerns of skin tumors from animal research and a deeper examination of four new cancer cases that emerged during a clinical trial. No safety concerns were identified during the hold. The investigational treatment is expected to move forward into a Phase 3 clinical trial for polycythemia vera in the first quarter of next year. SVB Leerink analyst Joseph Schwartz told investors that lifting the clinical hold is a "very welcomed surprise, given the hold was disclosed less than a month ago, and it was unclear how long it would last." Protagonist's stock is down 9.5% so far this year, while the broader S&P 500 undefined is up 16.9%.

Steve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.

StanChart's Jose Vinals Says Reshoring Concerns Are 'Overblown': IIF Update

Bloomberg 12 October, 2021 - 12:34pm

Photo by Christian Gooden, cgooden@post-dispatch.com

He was yet another passenger delayed by thousands of Southwest Airlines flight cancellations, which started over the weekend and stretched into a bad Monday on the tarmac, too.

“I’ll get there,” Steward said. “Just 11 hours later.”

The Dallas-based airline canceled more than 1,900 flights on Saturday and Sunday, then another 360 on Monday — 10% of its schedule — and delayed almost 1,500 more, or 40% of its flights that day, according to the FlightAware tracking service. More than a dozen canceled and 40 delayed on Monday were scheduled to fly in or out of St. Louis Lambert International Airport, adding to 54 canceled over the weekend.

Airlines have struggled this summer with high numbers of delayed and canceled flights as pandemic-depressed demand recovered faster than executives thought it would. American Airlines said in June it would cut hundreds of flights to avoid overloading its system. Spirit Airlines canceled more than 2,800 flights over 11 days beginning in late July. And in August, Southwest announced it was trimming its September schedule by 27 flights a day, or less than 1%, and its October schedule by 162 flights a day, or 4.5%.

This time, Southwest blamed air traffic control issues and bad weather for weekend “operational challenges.” Executives said troubles in Florida dominoed across the country as the cancellations stranded staffers far from their flights.

The third straight day of scheduling woes meant there was again grumbling at Lambert, where Southwest handles more than half of all commercial flights.

“It’s a mess,” said Elen Cantos, a Florida resident trying to get home from a vacation in Southern California.

She and her sister, Emmalou, began the day in Long Beach, California. The airline told them their connecting flight out of St. Louis had been canceled and that they should come back the next day. But they had to work on Tuesday, so they took the flight to St. Louis anyway and made a beeline for customer service. There, they managed to negotiate two seats on a flight to Nashville and then home to Panama City Beach.

“They gave me a $200 voucher for ‘next time,’” Elen Cantos said. “I said, ‘Never again.’”

Christopher Modderman’s arrival in St. Louis on Monday marked his third day trying to make it home to Oregon from his mother’s funeral in Washington, D.C. He’d spent two nights in Baltimore hotels this weekend as three plans to get him home fell through.

By the time a reporter walked up Monday afternoon, he was all done complaining — except about the $75 he’d spent on Ubers to get to and from canceled flights Sunday.

“I just want to get home,” he said.

At Lambert, cancellations hit flights to and from cities all over the country — to Atlanta, Milwaukee and several in Florida — and from New York, Phoenix, Miami and Orange County, California, to name a few.

The widespread disruptions began shortly after the Southwest Airlines Pilots Association asked a federal court to block the airline’s vaccinate mandate. The union said it doesn’t oppose vaccination, but it argued in a filing Friday that Southwest must negotiate before taking such a step.

Still, as the scope of Southwest’s operational meltdown became clear over the weekend, the union denied that pilots were skipping work to protest the vaccine mandate.

The union said Southwest’s operation “has become brittle and subject to massive failures under the slightest pressure.” Airlines persuaded thousands of workers to take leaves of absence during the pandemic. Unions at Southwest and American have argued that management was too slow to bring pilots back, leaving them short-handed.

Meanwhile, the federal government acknowledged delays in part of Florida on Friday but pushed back against Southwest’s air-traffic control explanation, saying Sunday that “some airlines” were experiencing problems because of planes and crews being out of position. Southwest was the only airline to report such a large percentage of canceled and delayed flights over the weekend.

Southwest said it expects to resume normal service this week but didn’t rule out future turbulence.

Southwest Chief Operating Officer Mike Van de Ven said in a message to employees late on Sunday that the sudden flight cancellations had caused staff shortages and may lead to a reduction in the number of flights the company can operate in November and December.

Shares of Southwest fell $2.25, or more than 4%, to close at $51.67 on the day.

Austin Huguelet is the Post-Dispatch's retail business reporter. He's previously covered Missouri politics for the Springfield News-Leader.

SLU tried to distance itself from the transaction in May, but QuikTrip has had a contract with the university since February 2019. 

Questions remain in wake of sudden dissolution of the politically powerful St. Louis-Kansas City Carpenters Regional Council.

The Cards could face Milwaukee or Atlanta, two teams with television pull that doesn’t stack up against the league’s giants.

Starting Nov. 1, the future of a St. Louis favorite will be in Doug Stagner’s hands.

The losses would reach that mark in six months, Kitty Ratcliffe, president of the St. Louis Convention and Visitors Commission.

The district is responsible for collecting more than $3 million per year from downtown property owners to beautify and clean up downtown.

The goal with the initiative, called Project Connect, is to harness the opportunity the new NGA facility is expected to bring to the region. 

More than 3,000 people have signed up to attend the four-day event for the geospatial industry.

The Des Peres location would be the first Shake Shack in the St. Louis region with a drive-thru. 

The thrill of the hunt draws in history lovers, coin hunters and social distancers. 

Photo by Christian Gooden, cgooden@post-dispatch.com

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End of an era at KKR - Lawyers behind life-sciences deal boom - Jamie Dimon thinks bitcoin is worthless

Markets Insider 12 October, 2021 - 12:34pm

by Sarah Butcher 6 hours ago

It's generally a given that if you work in sales and trading, you will be getting out of bed early. The poster boy for excruciatingly small amounts of sleep in a trading job is Xavier Rolet the ex-Goldman Sachs trader and former head of the London Stock Exchange, who says that as a trader at GS in New York in the 1990s he would start at 4am, finish at 2am and put in 130 hours a week. 

Rolet's claim seems like a route to an early grave. In these more enlightened times, traders are more conscious of their health. If they're in the right time zone, they might even get a lie-in.

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Bloomberg profiled five traders, none of whom work Rolet hours, and whose wake-up times vary from an old-school 4am to a more contemporary 10.15am. It probably helps that the trader with the 10.15am start is based in Sydney, Australia. He's also only 20 years-old, with nearly $39m of crypto assets under management. His name is Oliver Chalk.

Trading crypto successfully requires a combination of rational thought and excellent technology, says Chalk. "For me, trading is just about being able to think ­rationally and as close to first principles as possible, and being able to peer through the noise and see the genuine risk and the genuine trades," he reflects. And: "If you can be that one firm that has the best software in a particular domain of the market, then regardless of where the market moves, you can make a good return."

Chalk spends a lot of his time "yield farming", which involves lending cryptocurrencies through platforms like Compound (which recently accidentally handed out millions in free tokens) in return for other crypto coins which will hopefully appreciate in value. "It’s like if a hedge fund strategy was to go around and open all of these rewards accounts for the different banks, and then just move money between them really fast," he suggests. Yield farming requires a lot of due diligence and constitutes a form of arbitrage. Ultimately, Chalk predicts crypto markets will become even more complex and even more automated: as cryptocurrencies proliferate, humans will be unable to cope. His focus is therefore also on building the software that will enable this.

For the moment, though, he gets up at 10.15am, meets his software developers at 10.30am, works the rest of the day and sleeps at 2am. Anything less than eight hours sleep is counterproductive: "For every 30 minutes I take on the left side of my sleep block, I lose an hour of productivity on the right side," Chalk says.

It seems like a better life than the Asian trader who says he starts at 7am and finishes at 2am or 3am (after a long lunch in between) because he's covering U.S. clients late in the session. It also sounds like a better life than Rolet's 1990s existence, although Rolet survived that decade of sleeplessness and now has a seemingly superior lifestyle running a vineyard in rural France with his American wife. 

Separately, Jamie Dimon is still skeptical about bitcoin. “I personally think that Bitcoin is worthless,” he said yesterday. However, Dimon appreciates that some people disagree: “Our clients are adults, they disagree, that’s what makes markets, so if they want to have access to buy yourself Bitcoin, we can’t custody it but we can give them legitimate, as-clean-as-possible access.” 

Bank of America's first ever research note on crypto said: “The digital asset universe is too large to ignore. We believe crypto-based digital assets could form an entirely new asset class.” (Financial Times) 

Citi CEO Jane Fraser is all about empathy. "Empathy is not just about listening or being nice. It is about understanding and insight. It is about forming connections and nurturing relationships." (Milken Institute) 

HSBC CEO Noel Quinn says 70% of his people want to keep working remotely and that shoehorning them back into the office full time would be a breach of trust. (Financial News) 

Credit Suisse had planned to publish its findings on the collapse of Greensill at the time of its third quarter results. It won't do that anymore because it wants to prioritize reclaiming money for investors in its funds. (Bloomberg) 

Deutsche Bank's analysts are predicting a 5% increase in markets revenues in Q3, broken down into a 14% increase  in equities revenues and a 20% drop in fixed income currencies and commodities revenues. (WSJ) 

The shortage of Indian technology staff is such that new recruits to one start-up are being offered free BMW motorbikes and a trip to Dubai to watch India compete in the T20 cricket world cup. (Reuters) 

If you want to avoid dreaming about work, you might need to follow a three-hour-long evening routine recommended by the Indian yogi and mystic known as Sadhguru. It includes meditation and a cold shower, and forbids eating, drinking and screen time before bed. (WSJ) 

Photo by Jeremy Bezanger on Unsplash

JPMorgan's Dimon says supply chain woes 'will not be an issue next year'

Fox Business 11 October, 2021 - 06:53pm

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JPMorgan Chase CEO Jamie Dimon on stimulus payments, 10-year Treasury rates and the banking competition.

JPMorgan Chase CEO Jamie Dimon expressed optimism Monday that the U.S. economy will soon recover from supply chain issues that have plagued companies and consumers in recent months.

"I should never do this, but I’ll make a forecast," Dimon said during a virtual appearance at the Institute of International Finance’s annual conference. "This will not be an issue next year at all. This is the worst part of it. I think great market systems will adjust for it like companies have."

Supply chain issues are a source of mounting concern as global economies attempt to meet surging demand and recover from the COVID-19 pandemic. Executives from several companies, including Nike, have noted disruptions could weigh on their earnings in the coming months.

Shortages of basic household items such as toilet paper, raw materials needed for construction and critical tech components such as semiconductors have contributed to a surge in prices for consumers. The issues prompted President Biden to form a task force in June to identify and eliminate bottlenecks in U.S. supply chains.

Dimon argued the issues are unlikely to stop the U.S. economy from rebounding from the COVID-19 pandemic and have not prevented consumers from spending money.

The JPMorgan Chase CEO noted recent statistics showing consumers are spending 20% more at present than they were prior to the pandemic.

"Keep in mind, the consumer’s buying other stuff," Dimon said. "They can’t buy cars; they’re buying home improvement. They can’t travel internationally; they travel domestically. The spend level is very high."

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JPMorgan's Dimon says supply chain woes 'will not be an issue next year'

Yahoo News 11 October, 2021 - 06:53pm

Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital SolutionsLegal Statement. Mutual Fund and ETF data provided by Refinitiv Lipper.

This material may not be published, broadcast, rewritten, or redistributed. ©2021 FOX News Network, LLC. All rights reserved. FAQ - New Privacy Policy

JPMorgan Chase CEO Jamie Dimon on stimulus payments, 10-year Treasury rates and the banking competition.

JPMorgan Chase CEO Jamie Dimon expressed optimism Monday that the U.S. economy will soon recover from supply chain issues that have plagued companies and consumers in recent months.

"I should never do this, but I’ll make a forecast," Dimon said during a virtual appearance at the Institute of International Finance’s annual conference. "This will not be an issue next year at all. This is the worst part of it. I think great market systems will adjust for it like companies have."

Supply chain issues are a source of mounting concern as global economies attempt to meet surging demand and recover from the COVID-19 pandemic. Executives from several companies, including Nike, have noted disruptions could weigh on their earnings in the coming months.

Shortages of basic household items such as toilet paper, raw materials needed for construction and critical tech components such as semiconductors have contributed to a surge in prices for consumers. The issues prompted President Biden to form a task force in June to identify and eliminate bottlenecks in U.S. supply chains.

Dimon argued the issues are unlikely to stop the U.S. economy from rebounding from the COVID-19 pandemic and have not prevented consumers from spending money.

The JPMorgan Chase CEO noted recent statistics showing consumers are spending 20% more at present than they were prior to the pandemic.

"Keep in mind, the consumer’s buying other stuff," Dimon said. "They can’t buy cars; they’re buying home improvement. They can’t travel internationally; they travel domestically. The spend level is very high."

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