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JPMorgan Chase chief government Jamie Dimon warned European leaders they’ve a competitiveness drawback and that they’re presently “shedding” the battle to rival the US and China.
“Europe has gone from 90 per cent US GDP to 65 per cent over 10 or 15 years. That’s not good,” Dimon mentioned at an occasion in Dublin organised by the Irish overseas ministry. “You’re shedding.”
The feedback from Dimon, some of the influential voices in world finance, underscores the challenges dealing with the European Union because it battles to invigorate its economic system.
The continent’s former prime central banker Mario Draghi final yr demanded a brand new industrial technique for Europe with investments of €800bn a yr to keep up competitiveness with the US and China.
It’s a fair blunter message from Dimon than he made in his most up-to-date annual shareholder assembly in April, the place he mentioned “Europe has some severe points to repair”, and urged European nations to “considerably reform their economies to allow them to develop”.
Dimon, who has run JPMorgan since 2006, additionally warned that monetary markets had turn out to be too relaxed about Donald Trump’s repeated menace of tariffs.
Traders on Thursday disregarded the US president’s newest menace of a 50 per cent tariff on copper, 200 per cent tariffs on the pharmaceutical sector and levies on nations together with Japan and South Korea.
“Sadly, I believe there’s complacency out there,” Dimon mentioned.
He mentioned Trump had to date been appropriate in backing down from his largest threats on tariffs, invoking the so-called Taco commerce based mostly on the premise that “Trump at all times chickens out”.
“I hate to make use of the phrase ‘Taco commerce” as a result of I believe he did the precise factor to hen out,” Dimon mentioned.