Fox Business Network

Fox Business Network 14 Jan 2020

Jamie Dimon praises Trump economy, China trade deal in exclusive interview

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Jamie Dimon talks to Maria Bartiromo on the state of the economy, the JP Morgan Chase expansion, the phase one China trade deal and his position at the Business Roundtable.


U.S. President Donald Trump speaks about the new trade deal he signed with China at the State of the Union address at the U.S. Capitol, Tuesday, February 4.


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Secretary of State Mike Pompeo discusses the Taliban peace deal and the Afghan president's refusal to release Taliban prisoners in one-on-one interview with Bret Baier. #FoxNews

FOX News operates the FOX News Channel (FNC),
As Brexit has finally taken place, new details are emerging of a possible trade deal between the U.S. and U.K as Britain seeks to rekindle U.S. relations following their exit from the European Union. One America's Jack Posobiec sat down with U.K. political advisor Raheem Kassam to learn more.
After more than two years of escalating tarrifs and a seemingly never-ending trade war, the US and China have agreed on a first step towards a truce.
If it holds, it could be a boost for U.S. President Donald Trump in an election year.
But who will benefit the most from this initial phase of a broader trade agreement?
China has promised to open up its markets and buy more US goods.
In exchange, the US will lift some tarrifs. Yet most will stay in place - and that's where the problems start.
So, could this really be the beginning of the end of the trade war between the US and China?
Presenter: Richelle Carey
Guests
Dan Wang, analyst for the Economist Intelligence Unit's Access China Service.
Hosuk Lee-Makiyama, Director of the European Centre for International Political Economy and a former Swedish Representative to the World Trade Organization.
Phil Caruso, Member of the Defense Council at the Truman National Security Project and a former Intelligence officer in the US Air Force.

… show captions ↓
ONGOING DEBATE BETWEEN
CAPITALISM AND SOCIALISM.
WE BEGIN WITH THE STATE OF THE
U.S. ECONOMY.
GREAT TO SEE YOU.
LET'S START ON THE ECONOMY.
YOU'VE GOT SUCH AN INCREDIBLE
VANTAGE POINT.
HOW DO YOU SEE THINGS TODAY?
>> IT'S DOING OKAY.
THE UNITED STATES CONSUMER, 70%
OF GDP, THEIR CONFIDENCE LEVEL
IS VERY HIGH, THEIR JOBS ARE
GOING UP, WAGES ARE GOING UP,
SAVINGS ARE STRONG, BALANCE
SHEET IS IN EXCELLENT SHAPE,
MORE HOUSEHOLD FORMATION.
ID SAY IT'S VERY GOOD.
30% IS BUSINESS.
THAT CONFIDENCE CAME DOWN, CAP
EX CAME DOWN, A LOT OF IT'S P
DRIVEN BY TRADE AND TRADE
UNCERTAINTY.
THAT SEEMS TO HAVE STABILIZED.
IF WE DO THE TRADE DEAL IN THE
NEXT COUPLE DAYS, THAT WILL BE A
SMALL PLUS.
MARIA: SO YOU'RE LOOKING FOR A
GOOD YEAR?
>> YEAH, SO FAR, THE FIRST PART
OF THE YEAR IS GOING TO BE
PRETTY GOOD.
THINGS HAPPEN TO CHANGE THAT.
I THINK THE ECONOMY CAN CONTINUE
TO HUM ALONG.
MARIA: SUCH AN INCREDIBLE
AMOUNT OF LIQUIDITY OUT THERE,
THE FEDERAL RESERVE EXPANDING
MONEY SUPPLY BY $400 MILLION.
HOW DOES THAT MAN A FEST ITSELF?
DO YOU SEE HIGHER DEPOSIT MONEY.
>> EVENTUALLY ADDS TO DEPOSITS,
SOME OF THESE ACTIVITIES.
MOST OF THAT $400 BILLION THE
FED DID TO AMEAL I DON'T
REMEMBER
AMMEMBER
AMELMBER
AMELIOER
AMELIORR
AMELIOR A ATE WHAT'SGOING ON INT
AMELIOR A ATE WHAT'SGOING ON INE
AMELIOR A ATE WHAT'SGOING ON INM
AMELIOR A ATE WHAT'SGOING ON INN
AMELIOR A ATE WHAT'SGOING ON INY
AMELIOR A ATE WHAT'SGOING ON INM
AMELIOR A ATE WHAT'SGOING ON INR
AMELIOR A ATE WHAT'SGOING ON INE
AMELIOR A ATE WHAT'SGOING ON INS
AMELIOR A ATE WHAT'SGOING ON IN.
I THINK THEY NEED A MORE
PERMANENT STABILIZATION AS
OPPOSED TO JUMP IN EVERY TIME
THEY DON'T LIKE WHAT'S HAPPENING
WITH REPO RATES.
MARIA: PEOPLE WERE WONDERING
WHAT'S GOING ON WITH THE REPO
MARKET WITH THE OVERNIGHT NEED
TO DO SOMETHING.
>> REMEMBER, THAT'S HAPPENED
MANY TIMES BEFORE.
AND THE QUESTION IS, WHEN SHOULD
THE FED DO SOMETHING ABOUT IT,
NOT WHETHER IT'S GOING TO
HAPPEN.
IN THIS CASE, THERE'S A LOT OF
REASONS FOR IT, FROM TAX
PAYMENTS TO CERTAIN REGULATIONS
THAT CAUSED THE YEAR-END NUMBERS
TO CHANGE A LITTLE BIT.
I THINK THEY SHOULD FIX ALL
THAT, MAKE IT A NON- ISSUE WHICH
I PERSONALLY THINK IS
ACHIEVEABLE.
IT'S GOING TO TAKE A LITTLE TIME
FOR THEM TO FIGURE OUT WHAT THEY
WANT TO CHANGE.
MARIA: I LOVE HOW MUCH DATA YOU
HAVE.
YOU USE YOUR CARD DATA
EFFECTIVELY TO KNOW WHERE TO PUT
NEW BRANCHES, WHERE TO PUT NEW
ATMs.
TWO-THIRDS OF ACCOUNTS IN NEW
MARKETS HAVE BEEN DIGITAL.
TELL ME ABOUT THE BRANCHES
YOU'RE OPENING, HOW MUCH
BRANCHES DID YOU OPEN LAST YEAR,
WHAT ARE YOUR EXPECTATIONS THIS
YEAR?
>> WE'RE THRILLED TO BE
EXPANDING AGAIN.
WE'RE GOING TO DC AND
PHILADELPHIA AND PITTSBURGH AND
BOSTON AND NORTH AND SOUTH
CAROLINA AND WE LOVE OPENING
BRANCHES.
AS YOU SAY, WE DO A LOT OF
PRODUCTS AND SERVICES, THE
BRANCH IS THE HUB OF THAT
CLIENTS KNOW US.
EVEN THOUGH WE'RE NOT IN THAT
STATE, THEY HAVE OUR CREDIT
CARDS.
THE CREDIT CARD RELATIONSHIP IS
A PRETTY IMPORTANT THING.
THE BRANCH IS DOING QUITE FINE.
IT'S STILL EARLY.
WE DON'T WANT TO TALK TOO MUCH
ABOUT IT BUT THEY'RE DOING FAR
BETTER THAN WE THOUGHT.
AND PARTIALLY BECAUSE OF THE
CLIENTS TELL US THEY LOVE THE
DIGITAL SERVICES, PARTIALLY
BECAUSE THEY LOVE LINKING
VARIOUS SERVICES.
WE'LL BE OPENING ANOTHER 300 THE
NEXT COUPLE YEARS AND TOTAL OF
16 STATES INCLUDING THE ONES WE
DID THIS YEAR.
I LOVE EXPANDING.
IT FEELS GREAT.
WE VISIT THOSE MARKETS.
THE OTHER THING ABOUT THOSE
MARKETS, YOU GO THERE, THOSE
BRANCHES HELP PRIVATE BANKING,
MORTGAGES, GOVERNMENT BUSINESS,
SO EVEN INVESTMENT BANKING
BECAUSE IT MAKES YOU -- GIVES
YOU MORE STATURE IN THE STATE.
PEOPLE KNOW WHO YOU ARE.
MARIA: WE HAD A GUY ON THE
OTHER DAY, A CREDIT CARD
SPECIALIST, WE SAID WHAT'S THE
BEST CREDIT CARD OUT THERE
TODAY.
HE SAID THE SAPPHIRE.
>> SAPPHIRE, YEAH.
MARIA: JUST SO YOU KNOW.
I WANTED TO MAKE SURE TO TELL
YOU THAT.
>> THANK YOU.
MARIA: WITH ALL OF THIS
EXPANDING, YOU'RE TAKING --
>> I CAN'T TAKE CREDIT FOR THAT.
MOSTLY WOMEN ACTUALLY DESIGNED
THAT PRODUCT YEARS AGO.
JUST DONE AN OUTSTANDING JOB.
MARIA: IT'S RESONATING FOR
SURE.
YOU'RE TAKING MARKET SHARE FROM
A LOT OF THE REGIONAL BANKS AS
YOU MOVE INTO NEW STATES, SUN
TRUST AND BBT RECENTLY
COMPLETING THE BIGGEST BANK
MERGER SINCE THE FINANCIAL
CRISIS.
DONE LARGELY TO KEEP UP WITH YOU
AND YOUR SPENDING AT JP MORGAN.
DO YOU EXPECT WE'RE GOING TO SEE
MORE REGIONAL BANK MERGERS IN
2020?
>> I THINK SO.
I THINK THERE'S A LOT OF
BUSINESS LOGIC FOR IT AND BANK
MERGERS, THE BUSINESS LOGIC IS
THERE, THE INDUSTRIAL LOGIC IS
THERE, THE ECONOMIES OF SCALE IS
THERE.
THE DIFFICULT PART IS WHAT WE
CALL THE SOCIAL STUFF, NAME,
LOCATION, WHO IS GOING TO BE CEO
AND THOSE ARE COMPLEX THINGS BUT
PEOPLE OVERCOME THAT, I THINK
YOU'LL SEE MORE MERGERS FOR GOOD
REASON.
MARIA: WHAT STATES ARE YOU
EXPANDING IN THIS YEAR OR THE
NEXT THREE YEARS.
>> WE DID SOUTH CAROLINA, NORTH
CAROLINA, PENNSYLVANIA,
MASSACHUSETTS, WE'RE DOING
MINNESOTA, I THINK KANSAS.
SO IT'S ALL OVER.
16 MORE.
WE ARE ALREADY IN 23.
NOW WE'LL BE IN A TOTAL OF
ALMOST 40.
MARIA: I KNOW YOU SAID THE
ECONOMY IS LOOKING GOOD, THE
CONSUMER IS LOOKING GOOD AND YOU
HAVE DATA TO SHOW US THAT.
TALK TO US ABOUT THE CORPORATE
SIDE.
WE HAVE THIS CHART THAT WE'RE
GOING TO SHOAVMENT IT SHOWS
CORPORATE BORROWING DOWN IN THE
LAST YEAR, CERTAINLY IN THE LAST
COUPLE YEARS.
WHAT DO YOU THINK IS GOING ON?
IS THERE UNCERTAINTY ON THE
CORPORATE SIDE OF THE ECONOMY?
>> YEAH.
SO THE CORPORATE SIDE CONFIDENCE
WAS VERY HIGH.
AND IT CAME DOWN -- VERY HIGH.
LITERALLY ALL-TIME HIGH AFTER
TAX REFORM.
IT CAME DOWN TO I CALL IT
AVERAGE.
CAP EX CAME DOWN THE SAME WAY.
A LOT OF THAT WE THINK WAS TRADE
UNCERTAINTY.
SOME GEOPOLITICAL STUFF.
HOPEFULLY A BUNCH OF THAT IS
BEHIND US NOW.
I DON'T THINK IT'S TOTALLY DONE
BUT HOPEFULLY A BUNCH IS BEHIND.
VERY IMPORTANT FACT, COMPANIES
SPEND CAPITAL WHEN THEY NEED TO
SPEND IT.
HAD THEY GUESS OUT THERE OF.
VERY OFTEN WHEN THERE'S CONSUMER
DEMAND, THAT'S WHEN THEY START
TO BUILD A NEW PLANT OR HIRE NEW
WORKERS AND WE'VE HAD A VERY
SLOW-GROWING ECONOMY FOR THE
BETTER PART OF 10 YEARS.
IT SPED UP A LITTLE BIT IN THE
LAST TWO YEARS.
THE FACT IS, A SLOW-GROWING
ECONOMY WILL MEAN THAT COMPANIES
NEED LESS CAPITAL EXPENDITURES
TO KEEP UP WITH DEMAND.
IT'S HARD TO FIGURE OUT THE
INTERPLAY.
I THINK IT'S PART OF THE REASON.
MARIA: WHAT ABOUT THE AUTO
LENDING MARKET, THIS IS
ANOTHER ISSUE.
THERE WAS AN ARTICLE IN THE
JOURNAL THE OTHER DAY THAT ONE
GUY BOUGHT A $27,000 FORD TRUCK,
ACTUALLY SPENT $45,000 ON THE
TRUCK.
>> I THINK IT'S OKAY, IT'S A
TRILLION, THREE.
THE MORTGAGE MARKET IS
10 TRILLION.
450 MILLION -- BILLION OR SO IS
SUBPRIME.
THAT'S ALWAYS GOING TO BE STUFF
LIKE THAT.
LEASES GOT EXTENDED.
COLLATERAL IS LESS.
I DON'T THINK IT'S SYSTEMIC.
MY GUESS IS A COUPLE PLAYERS ARE
ON THE FRINGES WHO WILL REGRET
HAVING DONE IT.
MARIA: YOU WERE THE FIRST OR
REALLY --
>> IF WE'RE UNCOMFORTABLE, WE
DON'T DO IT.
WE'VE TOLD THE PEOPLE IN THE
AUTO BUSINESS OR ANY LOAN
BUSINESS THAT YOU CAN'T MAKE
GOOD LOANS, DON'T MAKE THE
LOANS, LET THE BOOK GO DOWN.
THAT'S COMPLETELY.
MARIA: AND A IN 2007 YOU SAW
THE CRISIS COMING BEFORE A LOT
OF PEOPLE.
IN FACT, YOU STARTED AVOIDING
RISKIER PLACES.
DO YOU YOU SEE RISKY AREAS IN
THE MARKET TODAY THAT YOU WANT
TO AVOID?
>> NOT REALLY.
I MEAN, IF YOU LOOK AT CREDIT,
WHOLESALE, CONSUMER, IT'S PRETTY
PRISTINE.
AND SO I THINK YOU MENTIONED ONE
OUT THERE, STUDENT LENDING, DONE
BY THE GOVERNMENT IS GOING TO
HAVE A HUGE -- HUNDREDS BILLIONS
OF DOLLARS OF PROBLEMS.
IT'S NOT SYSTEMIC.
MORTGAGES HAVE BEEN PRETTY GOOD.
THE AMOUNT OF SUBPRIME CAME DOWN
DRAM AT
DRAMATT
DRAMATICALLY, IT'S GOING UP A
LITTLE BIT.
AT ONE POINT THOSE TRENDS WILL
GET TO A POINT -- NOW THEY'VE
GOTTEN TO THE POINT WHERE I
THINK THEY CAN CAUSE PROBLEMS,
IT'S NOT THERE YET.
MARIA: LET ME TALK ABOUT FANNIE
MAE, FREDDIE MAC, CONTINUED
CONVERSATION ABOUT THESE
COMPANIES GOING PUBLIC AGAIN.
HOW DO YOU HANDICAP THE
LIKELIHOOD OF THIS AND HOW DO
YOU ANTICIPATE THAT'S GOING TO
IMPACT THE MORTGAGE BUSINESS?
>> I DON'T KNOW -- I CAN'T
HANDICAP IT BECAUSE YOU CAN DO
IT THROUGH LEGISLATION.
I'VE BEEN TOLD THAT SOME THE
THINGS THEY CAN DO WITHOUT
LEGISLATION.
IF IT WAS WITH LEGISLATION IT'S
VIRTUALLY IMPOSSIBLE.
I THINK IT'S EXACTLY RIGHT IS TO
GET THOSE COMPANIES PUBLIC,
RECAPITALIZED TO BE VERY
TRANSPARENT ABOUT THE GUARANTEE,
TO HAVE THE GUARANTEE PAID FOR
BY THE MORTGAGE UNDERWRITERS SO
YOU HAVE A VERY HEALTHY MORTGAGE
SYSTEM, TOTAL TRANSPARENCY AND
THOSE ENTITIES SHOULD NOT GET
INVOLVED IN POLITICAL LENDING.
IF THE GOVERNMENT WANTS TO GET
INVOLVED, ALL FORMS OF LENDING,
LET THEM DO IT DIRECTLY, NOT
THROUGH THESE PUBLIC COMPANIES.
MARIA: LET ME ASK YOU ABOUT
SPENDING IN TERMS OF YOUR
INVESTING.
YOU'VE DONE A LOT FOR DETROIT.
YOU'VE DONE A LOT FOR CHICAGO.
WHEN YOU GET INTO A CITY, YOU
START INVESTING THERE AND YOU
CAN TURN A DEPRIVED SITUATION
INTO ECONOMIC PROGRESS.
WHAT OTHER CITIES ARE ON YOUR
AGENDA IN THAT REGARD?
>> REMEMBER, THAT'S WHAT A BANK
DOES, YOU FINANCE THE GROWTH OF
AN ECONOMY.
SO IT COULD BE A COUNTRY, IT
COULD BE A CITY, IT COULD BE A
COMPANY, IT COULD BE A SMALL
BUSINESS.
AND OF COURSE, WE DO MORE
CORPORATE SOCIAL RESPONSIBILITY
STUFF.
THERE'S BASIC BANKING BUT WE
COULD HELP THOSE CITIES WITH
LOCATE -- ATTRACTING WORKERS,
YOU ATTRACTING COMPANIES,
TRAINING WORKERS PROPERLY,
AFFORDABLE HOUSING, YOU CAN HELP
ACCELERATE THE WHOLE CITY.
DETROIT WAS A HUGE BENEFIT.
WE WEREN'T THE ONLY ONES.
A LOT OF COMPANIES DID A LOT OF
WORK IN DETROIT AND IT WORKS.
YOU ACTUALLY TAKE -- THE CITY
WAS VIRTUALLY TOTALLY COLLAPSED
IN TERMS OF UNEMPLOYMENT,
POPULATION, TAXATION AND HAS
TURNED THE CORNER BECAUSE OF AN
EXCELLENT MAYOR, ET CETERA.
THOSE LESSONS ARE BEING
REPLICATED BY US IN NEW ORLEANS,
LA, CHICAGO, SAN FRANCISCO,
PARIS, AND AS WE LEARNED, WE'RE
GOING TO SHARE THAT WITH OTHER
PERSON.
IT'S NOT JUST ABOUT JP MORGAN,
IT'S ABOUT WHAT THINGS CAN
BUSINESS DO TO HELP LIFT UP
SOCIETY IN A WAY THAT'S GOOD FOR
EVERYBODY.
MARIA: THIS CITY FOR EXAMPLE, I
KNOW YOU'VE DONE THIS CONFERENCE
FOR A LONG TIME AND IT'S RECORD
NUMBERS, EVERYBODY COMES.
EVEN YOUR COMPETITORS, THEY GO
AND GET HOTEL ROOMS ELSEWHERE SO
THEY CAN TALK TO YOUR CLIENTS.
LOOK AT THE CITY, THE
HOMELESSNESS ISSUE IS
SKYROCKETING.
I DON'T WANT TO SAY, THERE'S
POOP ON THE STREET, ET CETERA.
WOULD YOU CONSIDER MOVING THIS
CONFERENCE TO ANOTHER CITY?
HAVE ANY OF YOUR ATTENDEES SAY
LOOK, JAMIE, SAN FRANCISCO --
CAN YOU MOVE THE CONFERENCE?
>> NOT QUITE THAT BAD.
I UNDERSTAND YOUR POINT.
AND BAD POLICY CAUSES VARIOUS
ISSUES.
BUT WHAT HAPPENS IN THESE
THINGS, PEOPLE KNOW WHERE
THEY'RE GOING, THEY PLAN FOR IT
THE SAME TIME OF THE YEAR, WE
HAVE CHASE CENTER, WE'RE DOING
FUNCTIONS DOWN THERE WHICH CAN
ACCOMMODATE LARGE GROUPS OF
PEOPLE.
THE BIGGER POINT, CITIES NEED
POLICY THAT ACTUALLY WORKS TO
EDUCATE THE KIDS, CREATE
AFFORDABLE HOUSING.
HERE A LOT OF AFFORDABLE HOUSING
ISN'T BECAUSE PEOPLE WON'T DO
IT, IT'S BECAUSE OF ZONING LAWS.
YOU A LOT OF THE BIG COMPANIES
WANT TO DO IT.
WE DO A LOT OF AFFORDABLE
HOUSING.
WE'RE GOING TO GET DEEPLY
INVOLVED IN SAN FRANCISCO ACROSS
THE BOARD.
WE'RE A BIG BANK HERE NOW.
WE WANT TO HELP LIFT UP THE CITY
TOO.
MARIA: DID YOU SEE IN NEW YORK
THE NEW BAIL REFORM LAW THAT
THEY DON'T -- THEY CAN'T HOLD
ANYBODY FOR BAIL SO THEY LET OUT
INMATES AND THEY LET OUT PEOPLE
WHO THEY HOPE WILL COME BACK FOR
COURT.
THERE'S ONE GUY THEY LET OUT, HE
KEEPS GOING OUT AND ROBBING
CHASE BANKS.
>> OH, REALLY.
MARIA: HE HANDS THE TELLER A
NOTE.
HE'S GOTTEN AWAY WITH A COUPLE
THOUSAND DOLLARS BUT HE KEEPS
GOING BACK TO CHASE BANKS AND AS
A NEW YORKER AND HEAD OF CHASE,
ANY REMARKS?
>> I READ ABOUT THAT.
I READ THEY'RE GOING TO TRY TO
MODIFY IT, MAKE IT -- THERE'S A
REASON TO DO SOME OF IT.
MAYBE THEY WENT OVERBOARD.
MARIA: LOOKS THAT WAY.
LET'S TALK TECHNOLOGY.
YOU'VE BEEN INVESTING BILLIONS
IN TECHNOLOGY EVERY YEAR, MORE
THAN 11 BILLION.
IS THERE AN OPPORTUNITY TO YOU
ACQUIRE A TECHNOLOGY COMPANY OR
DO YOU THINK YOU'RE GOING TO
KEEP UP THAT KIND OF LEVEL OF
SPENDING IN TECHNOLOGY?
GIVE ME THE --
>> TECHNOLOGY, YOU ALWAYS WANT
TO SPEND IT WISELY.
IF WE'RE GOING TO BUILD PRODUCTS
AN SERVICES AND OFFER YOU THINGS
THAT YOU LIKE, IT'S ALL
TECHNOLOGY WHICH IS ALL PEOPLE,
THAT'S WHAT GETS THAT STUFF
DONE.
WE HAVE TO DO THAT TO COMPETE.
WE ARE RIGOROUS ABOUT DOINGIST.
WE COULD ACQUIRE THINGS.
WE PAY, THE MERCHANT PROCESSING
BUSINESS, INSTANT MED WHICH
CONNECTS PROVIDERS AND CUSTOMERS
FOR MEDICAL PAYMENTS, 80% IS
STILL DONE BY CHECK.
SO THERE ARE MORE TECHNOLOGY
COMPANIES THAN BANKING COMPANIES
THAT HELP SERVE OUR CLIENTS,

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