JPMorgan Chase Chair and CEO Jamie Dimon Talks Market Exuberance

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I could not be more happy to be here in Paris with Jennie Diamond, of course, at JP Morgan Global Markets Conference. Mister Diamond, thank you for having us, Thank you for being our host here in Paris. I mean there's a lot writing. Look, the markets are optimistic. They're optimistic that there's some kind of resolution in the Middle East? Are they overlooking the worries about inflation?

So verd You're welcome, happy to be here.

I think there's a little bit too much exuberant out there, and not just the Middle East. It's you know, it's Ukraine, Russia, still there, America, China. There are a lot of these complex issues which may make out at the market, but then they're issues like inflation.

You know that today's print wasn't so good.

So yeah, I think the market's kind of exuberant and it may not be completely justified.

So why are they so exuber did there exuberant? Are you expecting a correction? And is it because they're looking at AI?

Well, I don't think to say.

I think corporate property is doing very well. HEYI will be a plus this year is just a lot more spending, which maybe a little inflationary too, but in more corpate profits, you know, we're doing a little bit more.

Q E. Governments still spend a lot of money.

The one big beautiful bills kicking in stimulus are upsetting a lot of the gas. I think the gas increase a dollar gas is one.

Hundred million dollars.

The big, one big bout of bills through one hundred billion that consumers pay, the one big group of bills.

Three hundred billion. Deregulation is real.

There are these things as you're causing a pretty good market right now.

But when you talk about exuberance, it means that there's a market dislocation.

But where do you see that these dock markets in the top ten fifteen percent credits breads are very low. The general is sum of things that these things.

Are older to resolved. And I'm just I'm kind of a skeptic. I don't know. I hope they do, but I don't know that they will.

Okay, what do chief executives worry about in private that they tell you that they won't tell us.

Not much? Trade?

You know, America, NATO, the wars, oil prices, I mean, the same stuff you hear about.

All time capex.

I know, you know, we had a great earning season. Is the next one going to be less good?

I don't know yet, very hard to tell, you know. I think the definicit spending drives a lot of drives a lot.

Of corporate earnings too, So it's and drives a lot of capex.

And you know, well capex great productivity before it creates inflation.

I don't know that. I think one of the risks is inflation. I've always thought that.

And so but also, how do you think of oil and how do you think about what's.

Happening in the Middle East?

If this lasts three weeks, four weeks, even like two months, are we going to be in trouble.

It's a big deal, and every day it gets a little bit worse.

I don't know. House me resolved.

I hope it gets resolved in the interests of the United States and against the Iranian regime.

Not the Iranian people. But I don't know. But I've read something day.

It's very interesting that China reduced their demand by five billion, by five.

Million barrels a day.

America increases export quite three million barrels a day. That million is meant for a lot of what was lost, and which is maybe why it hasn't been as severe as people think. On the other hand, inventories are coming down, you know, gas wells have to be closed and stuff like that. So it gets gets a little more serious every day that day that it can becomes. The disaster has been pushed out quite further than we thought at the beginning.

Do you worry about the US consumer?

Are you seeing signs of stress anywhere now?

I think the upper end, the top fifty percent, lots of money, jobs, ways going up. Home price is going up, doc pribies going up. There spending like they should, you know, like they're buying the traveling. The bottom thirty percent is I'm gonna say, its struggling a little bit. It's not a massive downturn, and of course we'd like to help them, but their wages have not gone up. But more important that they still have jobs and they don't have too

Will be jobs.

What do you worry about? I know there's also the President's meeting with President tomorrow in Beijing. I mean, does that have implications for the trajectory of America.

Look, I don't know, but I would suspect they'll come up with some that'll be a friendly meeting with some positives on both sides.

I don't think China is going to give it any major demands. I don't think we're going to make major demands.

You know, we both have a lot of common interest, you know, anti terrorism, anti nuclear pliferation. You know, China is feeling its oats and now you have to deal with President Trump.

So we'll see how it turns out.

You had an amazing trading actually results trading was amazing in the last quarter.

How's it going now?

Well, I can't comment on that, but I mean from the last time Choice spoke publicly, it was fine so far.

But I can't give you other information on that though.

Give me a sense when you guys can see every day volumes are right, yeah, and MBARI's high.

All things mean equal.

It would be good for trading, But you're part I mean, it's it's you think it's going okay, because it depends on the kind of training that.

You are right, you will benefit it's gonna be very good.

Talk to me about AI. So I don't know whether you've also played around with mythos.

What did you see so AI?

The big picture, AI is going to cure cancers and reduce work weeks and kids will live longer, and claims to be safer, carsibly safer and lets people die and you'll have new drugs.

It's it's gonna be good. Uh.

And you know, but there and we've been using now for thirteen years. It does an amazing job and a various different things. So we're gonna deploy it to help our customers. There are two attributes which that people worry about.

So we're all gonna hands around.

It is risky everyone, and we actually published and people should look at this like, oh, listen, what you can do now? Don't wait to get mite those because everyone's going to get it at one point.

But you can't give to everyone. They can't handle it.

Where it gets leaked out, it can be used by bad guys. Before we protected open source code and all our code and so we need a little work to do to get it done right. And the other one is his job disruption, where I just that may be true. We should get prepared for it. We should be breathless, you know. And that to me is how do you create skills and reskilling. There will be a lot of jobs and AI cyber advanced manufacturing the trades, you know.

But my thoughts wood, does it change the way that banks have to defend themselves? Are you thinking about cybersecurity.

Differently cyb No, Banks's always been on top of the top of the heat during cybersecurity.

I wrote about my Chaman's letter, cyber.

Is our biggest risk, made worse by AI, and that was before Mythos. So this, yeah, this does make it more dangerous. That's why banks are really working this thing right now. And all right, all of us together, we're collaborating. We're not like arguing with each other.

What does that mean? What does that actually look like? Concretely? Five six months, all going.

Through all applications with Mythos patching them up, all going through open source code, a lot of flaws and open source code. We don't need to all fix the same open source code. If you fix one, I can fix the other. Cut with collaborations, trying to think out how to form utilities to help third parties, going to our critical vendors, you know, including hooked into exchanging around the world,

Now, look hyper scalers and also funding of hyper scalers is really propping up the economy.

Do you have any worries about getting that.

Money back or you know, some of the funding of what's being constructed.

The way I look at it is that AI is real, A lot of money's going to go into it.

That doesn't mean everyone who does it is gonna be a winner.

Like go back to the Internet, a lot of people lost, a lot of people won, and so you know, and the hyper skals, were those data centers not find use? They probably will, But is it possible that some do it badly, design it badly, didn't get the right Yeah, of course it's possible.

Yeah.

Does AI change the way you recruit, the way you hire, and the.

Way you work.

I think it's gonna change almost everything. And I've done my own stuff and getting.

Reports in the morning.

I have a Jamie Strategic Intelligence reports getting better, so I could say what did Francine say yesterday? And every morning at five, AMI tell me what you had on your people that might be significant to me, and then you can keep it educating it. That's not important. This is important. What's significant. So yeah, we're all going to use it in different ways, but we will use it.

Today it's much better off.

Just watching Bloomberg talk to me about the UK. So there's a lot of you know, the markets are on tenter hooks to know whether the Prime minister survives. We don't exactly know what comes next. The markets are nervous. What does it mean for JP Morgan in London?

Well, look, we've had ups and downs in markets and ups and down politicians, so it's not going to change our fundamental strategy. I would say that Europe, including the UK, know what to do and it's the Droggy requirement. There are three hundred items in there, common capital markets, common regulations allowing cross border in this In the inn EU, competition is huge, regulatory not terif but regulatory burdens.

They need to do the same in the UK. I think Keres Stormer is a very smart guy. Politics is really tough.

They're in a bind because of debts and deficits, and you know they inherited a lot of that.

I think the world of racial reeves and they got to be tough. They got to say we're going to do these things.

And the short term may not be great, but governments have to get this stuff done right. They growth the economy and militarily, and I think they need to work close with Europe. And you know, if you remember Kirstormer and President McCrone, they were going to work closure, not reversion, bregsit but you know, military alliances, intelligence alliances, making sure the economies, you know, have economic lasership good for both the continent and good for Europe.

With the UK, you're building a big mega project Canary Wharf that everyone is quite excited about. Does this potential politically instability actually change your view on everything or you know, do you see costs going up?

Or are you worried about taxation?

Political instability?

But if they become hostile to banks again, yes, I mean I've always objected to fact. You know, we didn't damage the ukn anyway, and we paid probably ten billion dollars vex to taxes by now. I don't think that's right or fair. If that happens too much, we will reconsider.

Look, I know you've also looked a lot at Europe and funding and you know, especially when it comes to security. I mean, how much time are you spending making sure that defense companies, that companies in Europe have enough funding from Jaking Morgan to make sure that they can I guess defend.

So we have this huge effort, you know, we deploy over the years one point five trillion dollars to help, not just as a resiliency, so there's even medicines and rare which should be defense, semiconductory defense, but it's anything that you need. Europe needs LNG. So we look at that as resiliency for Europe, not elerg in America. But shipping here is resiliency. So we we have professionals doing it. We've got Unbelieva advisory Group. We've dedicated you know, thirty

And we got to fix it right away.

And this is good for the US. Does the US make stronger allies?

This is good for the US. And I think having strong allergies good for US. So my view is we need a stronger NATO. They're doing that, by the way, so you know our president push them alive. Well, they're all doing it, which is a good thing, but we want to keep it together.

The goal of it.

Should be to have a stronger NATO, not a week in NATO.

The goal and my view, if you.

Asked me what the goal should be of our economical lady with Europe, should be having a stronger Europe. To get you to help you do the drog report, and I wrote my chairs like maybe a pipe dream that if you did the Drag Report, I would give you one big, beautiful free trade bill, That's what I would do, you know, and then fix them. There are some stupid trade issues, and fix them. But with both your calls

So They're not a minor thing. They're a major thing you look at over twenty or thirty years.

So today, how would you fix the Middle East?

That I do not know?

You know, I when I hear a lot of politicians and say there was no imminent threat from Iran, I might that immediately gets my backup, because a threat is when I'm threading.

To do some of you.

They've been raping, killing and murraying for forty seven years. Why the Western world allowed proxy wars? I mean, we've learned a lesson that we should have gone years ago at the head of the stake.

We should have killed the head of the snake, you know. And so now you.

Have more risk, but maybe more opportunity because people want these to the Middle East.

You know, we have this.

It's a terrible situation. I don't know the outcome. I hope there's a Plan C or a Plan B. I want us to prevail in the way that makes sense. I don't know what the right thing to do was, but I'm not going to share and say they weren't as ready, we.

Should have done nothing.

But today does the strain of horror movesment to reopen almost at any costs.

It will eventually be open. I don't know. I don't know.

You know, you're talking about the military has been playing for things like this for forty years. They have plans. I don't know what those plans are, and you know, I hope it works.

I just don't know.

I mean, what is the one thing you wishing you now given?

I mean there's a lot of uncertainty in the world right, geopolitics, markets.

If you can know one thing for certain from the president, what would it be.

Well, I don't know about that.

I just want to look. I just roll up my sleeves and try to make it better. Bet it was, so I don't guess for about one good thing or something like that.

It's a complex. This is so noisy. It's like speaking to you to Mexican or It's like it's quite fun.

You're doing a good job, though.

You too.

Thank you so much for joining us today. That was, of course, a chief executive officer of JP Morgan