how did jamie dimon do it?ow'd he delivered 14% total return per year in this fractured bull market? ken: we are talking about great management. great to be here today. jp morgan will continue to outperform its peer group over the next few years. the worry is the outlook for the next quarter and the rest of this year. to your point, the balance sheet has been the calling card for jp morgan to endure in the toughest times and outperform in the best of times. tom: i see ken leon, something about fortress income statement. when in doubt, cut costs is the mantra of banking in america. are we going to be surprised over the next coming days with cost sensitivities? ken: there are new forces underway, disruptors in the market from fintech. when jp morgan's stock went down that's because jamie dimon was going to double up and inves in hiring people and technology. that will be a delicate dance he has. it is a bank that has to keep its pulse on the future, which means investing in technology and boosting operating expen

it is that time of year again for jamie dimon's annual letter.e was a bit shorter than last year's 65 pages. this one was 44. it definitely was not as rosy of an outlook. last year he was saying this boom could run until 2023. there could be a goldilocks moment. this year he was really digging into the various crises facing the world right now, and the war in ukraine is definitely high on that list. kriti: something else he mentioned was the federal reserve. he said this tightening cycle is unlike any we have seen, and that there are a lot of risks when it comes to the fed simply navigating it. can you walk us through his perspective on that? reporter: what he said was that in hindsight, all of the fiscal and monetary stimulus in 2020 and 22 anyone is probably too much for too long. bank executives don't typically criticize the fed, and i don't think that was a criticism per se. he said fiscal and monetary. but it was definitely an interesting perspective. he also said that if the fed gets this right, the economy could be in really good shape, bu

here is what jamie dimon had to say on the earnings call. hat is another huge cloud on the horizon. we understand it. i can't tell you the outcome of it. i hope those things go away, we have a soft landing. i would not bet on all of that. guy: let's talk about what we heard on the call. bloomberg's wall street correspondent, sonali basak, listening and bringing up the takeaways. jamie dimon, obviously the rest of the crew. talk to us a little bit about what we heard about volatility. because jamie dimon and the rest of the team went through a whole range of issues, and if you pull them altogether, how much visibility do they have as to what comes next? sonali: that is a great question, because there is not a great sense of volatility being good or bad for banks and the market at large. we have talked about this before, the idea of gapping volatility will keep clients on the sidelines. one positive note is that jp morgan did say a lot of carnage in the hedge fund sector on the buy side see jp morgan saying there is money to be spent among clie

i think we know that you mentioned before jamie dimon and a tornado. i think we're in the middle of a tornado. we know we're in the midst of a tornado. a lot of the things he's mentioning in terms of the persistent volatility, that's aware to us. we've seen the downside. i don't think we are springing forward above new all-time highs exactly to your point. because i think there are so many challenges ahead here for in federal reserve and i think the federal reserve probably looks at this 9% plus bounce for risk assets and sits back in their chair and says oh, wait a second i thought we cooled off a lot of the ferver surrounding risk assets that's probably going to keep us in this position where we're in a little bit of a consolidation running in place i think take the words risk on and risk off and forget about it this year. i think it's more about rotating i think the market now is rotating i think there's an internal rotation away from a lot of the cyclical value and it's going back towards a defensive find. going back towards the growth and really c

jamie dimon's annual letter is always hotly anticipated and this year a lot of focus on inflation in the fed. here is the quote from the letter we wanted to highlight, jamie dimon does not envy the fed for what it has to do next. the stronger the recovery the higher the rates that follow and if they get it right we can have years of growth, but at the end of the day this process is going to cause lots of consternation and very volatile markets and at the end of the day i guess that's where we are right now. to wait -- have we waited too late into the process to get started? matt: seems like almost everybody thinks we waited too long. maybe brad doesn't think that. most voices are saying that this is an own goal. on their own part of the fed where they put themselves into a difficult position, which is why jamie dimon has pity for jerome powell and the question is, can they engineer a soft landing at all now? or is the only choice to give us a hard landing that isn't too painful? we definitely expect a couple of 50 basis point rate rises coming in the near term. jon: lots of that comi

jamie dimon gives us too much.hought pvh gave us too much optimism versus what i see in a apparel. i don't get it [ openingbell ] i put him on because he's so driven i never put cfos on. it's a big coupe for both. now they said why didn't paypal -- why didn't they affirm their guidance so you don't think that something is wrong. he's going to stay on for a couple of months no by the way, businesses, like we said,no they said business was going to get good next year and businesses go back to the old growth rate. and plus 20 the stock is very cheap. and then he subsequently missed the quarter that he promised i'm doing a lessons learned. a lessons learned i shouldn't waive it for 23. i had a chance to bolt and i didn't it's a big mistake when they see the power. that's bad and that i have no excuse for not selling that i thought i could ride through. >> no. right. you get down to this level and it's like really am i going to do it down. >> yeah. that's what i said what is the point? the whole point it's awards it all

i think jamie dimon was very right that you could have it both ways. kass will be joining me later and he is heated about the tone of the dimon letter with the technology that jonathan ferro mentioned. -- the end of technology and the internet, the ethernet culture. his j.p. morgan at risk of being so dominant that nobody else can win? marcus: that has for sure been for quite some while. any of the decent ones tend to get snatched up. there is a much a risk of that, and we should be very aligned to that risk. j.p. morgan has the muscle and the money to spend. normally you can keep throwing money at it and j.p. morgan has -- and that will benefit exponentially more as we have to watch out for that risk. jonathan: it would be rude not to ask you about the ecb and what it might mean for the banks in europe, to get back to zero on the deposit rate. how big would that be. ? marcus: it would make me very happy man. i am a big fan of negative rates , just being paid to borrow in europe, it is just madness and the whole loan dynamic, you need to have it. stop

jamie dimon spoke about the challenges ahead. jamie: that's another huge cloud on the horizon.e are prepared for it. we understand it. i hope those things will all disappear and go away and the war is resolved. i wouldn't bet on all that. dani: let's get more with charlie wells. jp morgan trading at the lowest since february of last year. what drove that disappointment? charlie: a bit of a next bag. jp morgan, the largest bank in america by assets, was forced to contend with a lot of these macro challenges going on in the u.s. right now. questions about the fed. how quickly is the fed going to act? questions about something that happened in q1, russia invading ukraine. that through a lot of uncertainty about sanctions, trading and that deal pipeline that we have heard so much about going into 2022. looking at some of the specifics, let's start with the bad. we had profit dent 42% -- down 42%. we had that $542 million loss. we also have $900 million set aside in case of loan losses going forward. that is a bit foreboding, but there was some good. trading in some areas beat expec

and they're changing it's kind of jamie dimon against the world.nks, neobanks, and shadow banks which are twice as large as the u.s. banks. remember, these are all nonregulated competitors, so jpmorgan is spending, buying, and paying whatever it takes to compete on all events. they say they want to be an international digital consumer bank on defense, they say they want to make the ship tip top shape, unquote, but they'll still have likely the greatest expense increase in history, so the devil is in the details. so we need more information. revenues, returns, and key performance indicators for all this spending. we have one of the low estimates on the street for the year for jpmorgan, and for morgan stanley, the transformation with their deals, e trade, the engagement has fallen off and with the bond fund outflows have been happening for the industry as a whole, we think jp morken and morgan stanley don't look as good as investors think they do. we would prefer being with the likes of a bank of america >> because you like the whole mainstream banki

you mentioned jamie dimon.nk one of the greatest bond ticks, rumor when -- were number when jamie dimon committed the market and bought jp morgan stock, and basically on the day it was at the bottom? tom: i think it is the story we mentioned with diane swonk the other day in chicago, sort of put out there by others, what he did, and mr. harrison was there at the bank, and who is this jamie dimon guy? what is he going to do for us? as you say, he built it up. what is important is he has had to reset about four times. that is tough to do. jonathan: it has been about 15 minutes and we have not and should twitter. dan ives coming up on twitter on "the open" on bloomberg tv. on the nasdaq, we are down 0.6%. you like the final word? tom: no, i just think you ought to mention meta. jonathan: meta out after the close tomorrow. i can hardly wait. after the close today we hear from microsoft and alphabet. tom: is your 9:00 hour going to be twitter free? jonathan: until 9:30, and then at the opening bell we will get our t

jamie dimon also said the u.s. consumer is in great shape and probably able to withstand some level of rate increases and the rise so far has been very significant. i would say the prospects for banks is generally favor as long as the economy doesn't get them into a recession. maria: all right, mark, great to get your insights, thank you so much, we will talk soon. have a good one. thank you. >> thank you. maria: we are getting started this morning. see you soon. coming up crime in america out of control. we are breaking down everything that you need to know about yesterday's attack on the new york city subway. how to stay safe? then mockery at the border. migrant snapping selfies as they illegally cross into the country. the very latest plus i'll be speaking with new york gubernatorial candidate of migrant flights plus trump plul media devin nunes. mornings with maria live on fox business. ♪ ♪ ♪ ♪ we could walk forever ♪ ( ♪♪ ) ♪ walking on ♪ ♪ walking on the moon ♪ ♪ some ♪ ♪ may say ♪ ♪ i'm wishing my days away

jonathan: jamie dimon said the stronger the recovery, the higher the rates that follow. the stronger the quantitative tightening as well. a lot of people are worried about a replay of late 2018. we are never what happened in 2018. the primary market shut down in high yield. when you look at supply coming in, how does that stack up at the moment? matt: dimon said he did not envy the fed. i don't think he envies bond managers right now either. high yield is down roughly 75% year-over-year, a lot of yields getting done in the loan market and there is tremendous demand for bank loans and then the high-yield market, prices are really difficult i don't know the companies are looking to figure out where they would have to price versus the ig market where you just have $230 billion issued in the month of march, the second-most in history and to your point, credit spreads were actually able to tighten from the back half of march. a lot of supply being issued. we are really flooding the market. i think it is a good sign that you are seeing a lot of issuance. the markets functionin

yet at the same time if you listen to jamie dimon, the ceo of jpmorgan on his quarterly conference call today, he told a much more down beat story. frankly, i found it borderline frightening. in particular he had some very discouraging comments about the war in ukraine take a listen. >> i pointed out my -- usually words don't necessarily affect the global economy in the short run, but there are exceptions to that this may very well be one of them >> then jamie goes on. >> i hope things don't disappear and go away and the war is resolved i just wouldn't bet on all of that >> i just wouldn't bet on all that not encouraging. now, both of these guys could be right. he's shocked to see how strong they are plus, he's noticing they have little to no resistance to higher prices, something he can't recall in the history. i think a lot of people, come on, they're desperate to travel now that it's safe you've also had a ton of delayed weddings that be held. now, when we had -- oh, man, when we had jpmorgan's matt boss, the best retail analyst on the show the other day, he said the consumer's quite

jamie dimon is putting his money where his mouth is. they are citing the war in ukraine and higher inflation and putting aside the special reserve of money to cover itself. jamie dimon did not expect a recession this year but he acknowledged that there were storm clouds on the horizon in inflation and because of the challenges presented by the war in ukraine. you also knowledge that the consumer is in good health and that they are starting to see a bit of a bounceback in loan growth. >> that is what we saw when it comes to trading and equities. is there a sense of traders and investors are dial back the aggressive expectations of the fed? >> that is what we saw last night. it has to be said that it is probably more as we have the inflation numbers. the earnings season is shaping up as a main focus. what we saw from jp morgan, whether that is going to play out for other banks and other companies reporting given the supply chain, it is worth noting that managers are entering the earnings season but with the most pessimistic outlook on out

jamie dimon sees disruptions from russia's war. the invasion weighs on jp erg and earnings. u.s. futures muted at the open after the s&p 500 rose for the first time in four sessions. tech leading the advance. u.s. treasury yields under pressure today which was really interesting to see, given that we have producer price inflation rising by the most on record. the dollar index also seeing its worst day since march. wti gaining ground. this as the iea came out and lowered its expectations for global demand, given the lockdowns in china. haidi: take a look at how we are seeing the rbnz decision reverberate across these other assets as well. other central banks being put on notice as to the aggressiveness that they might need to move to get the front foot on global inflation. we saw that massive 50 basis point hike to 1.5%, the biggest rate rise in 22 years. he talked about the bank of canada earlier as well. a lot of these commodities -- benefits and inflationary impact being felt as well. we are seeing a little bit of upside. a muted start. a quarter of 1%. the 10 year yield holdin

david: and it is led by jamie dimon, who has been ceo for some time.ard member there, what is your responsibility? is it to help the bank grow? what have you learned from jamie dimon? is he a mentor to you as well? mellody: start off with any board role, you are a fiduciary for the shareholders. howard taught me that. he told me, every time he sat in a room he pictured two chairs and they were empty. one chair is a partner and the other chair is a shareholder. he said when you are the boardroom, be proud of everything you say to those chairs. and i have taken that to heart and i do the same thing when i went to jp morgan. i assume there is any employee in the room from jp morgan, and there is a shareholder in that room, and i'm supposed to look out for them. that is my job. in terms of what jamie has taught me, howard and jamie have taught me different things. obviously i have been with howard a long time and i think he molded me as a person in terms of my professional self from watching him, especially for so many years and so up close. with jamie, i

. >> by the way, we have jamie dimon. >> oh, jeez. we haven't talked about his annual letter.goes and talks about what the expectations may be in terms of russia andukraine. the government the right thing it worked. but also in hindsight the medicine, visible spending in qe was probably too much. it lasted too long the fed gets it right. we can have years of growth and inflation will start to recede he goes on to say who knows in a way. u h the feeling of restoration of rh. you need to be more weary if you're investing -- i mean, the take away, if you read this is, well, i have to cut back and i don't know if you meant that happened but it made me feel more uncertain about the role i'm hoping -- is the united states going for a win in ukraine? i mean, are we just settling for the russia being this way russia the size of italy and gdp the size of texas and calling all shots in the war now >> the images over the weekend are unbelievable heart smart -- smarter jpm -- based on better fees. >> right i think it was a good thing. interesting. advanced micron no onelistened i think th

jamie dimon has a warning on global growth, and potentially what could happen in the rates narrative. dani: if that is the warning from dimon, let me take you to the warning from this market. any old-school trader will tell you the dow transportation average since march 20 nine, falling 7%. s&p following only 1.1%. broader gloom encyclicals concerning the health of an otherwise booming american economy. manus: let's get into cross assets. the aussie at the highest since 2021, because the patience is gone from the rba. patience demise from the rba, the euro is lower. more sanctions may come. what form could that take in terms of the energy complex, according to macron? it looks like we are at a tipping point. macron talks about the eu sanctioning oil and coal from russia. we are now pricing in a 70 percent probability of rates being 2.5% by christmas. dani: christmas comes not early, but you can sign a breath of relief. unchanged pretty much everywhere. euro stoxx 50, 0.3%. 0.1% decline from s&p futures. tech outperformed yesterday. not a lot going on in equities this morning. manus: m

that's jamie dimon. that's his bank.man sachs, they cut robinhood to a sell after an 84% drop from their all-time high, the stocks all-time high. this is interesting to me, because goldman led that ipo. what do you make of the story? >> well let's take it down to two parts. first of all if we just deal with the hypocrisy sentiment that we started our little interview with, talk about hypocrisy, so what you do is take a company public like robinhood, you get the public involved, and then insiders secretly sell that stock, and so that is really basically almost on the side of criminal, but with that said, ipo's in general in 2021, there were 110, excuse me, $440 billion invested into ipo's so far in 2022 only 20 companies have done so, and we're only looking at about 2 billion, of course we're only a quarter of the way in, so ipo 's in general, they don't like volatility, they don't like inflation, they don't like the idea that we have political instable and geopolitical in stability, and so that's part of it. now, with ho

the scum of the earth, you have to read jamie dimon's annual letter to jpmorgan's annual shareholdersear, it's incredibly well thought out and full of good ideas. even if you're a card carrying communist who despises banks and ceos, you should still read the letter his thoughts about where we are as a nation really hit home in this perilous time i think his annual letter should be required reading for every politician, and frankly anyone else who wants to make america a better place as he says, at a minimum, we should all agree we need regulations and policies that foster growth rather than crippling innovation and investment, but it's not enough. they also need to be consistent and reliable as someone who started and run many businesses, i say many regulations feel arbitrary and capricious he points out we need to build a new strategic and competitive framework for our allies, especially when it comes to china. he does believe the west needs to take a harder line with the prc because there's no fairness in our trading relationship. he has what i think is a totally inspired idea here

there are some comments out from jami jamie dimon he said first of all he's pretty optimistic in thenificant geopolitical economic challenges ahead because of inflation, the supply chain issues and the ukraine war. and i guess you have to figure out which side of the ledger are you taking on this you have the federal reserve raising rates but also have the threat of a recession coming, so where do you come down on this, what do you think? >> yeah, look, this stock has really massively underperformed since last quarter remember last quarter they actually increased their expense guidance for 2022 by 9%. and that really made people more nervous and more cautious on the name i expected a mixed quarter i suspect guidance will go higher because of higher rates and credit card data i expect to be very strong haven't gotten all the details yet but that's the positive side the offset would be the volatility that we have seen in the market will hit m & a fees and debt in the capital market with the stock down and trading at 1.5 times book which is really rare for jp morgan. this stock has trad

jonathan: let's pick up on the fact that jamie dimon watches ted lasso. ond watches ted lasso. tom: wait a minute, that wasn't in the letter. jonathan: i could show more gratitude. tom: is that chelsea blew the same as the j.p. morgan blue? jonathan: i think it's similar. tom: one single sentence, we are not a conglomerate. that's the single most important sentence away from behavior in the letter. jonathan: we get distracted by things like mentioning ted lasso. what matters here for the banks and shareholders is just how poorly the call went after earnings on the new expenses, the new spending and how productive that spending would be. tom: does he mention the senator from the commonwealth of massachusetts? no, but he says our problems are neither dimmick attic nor republican. he says he does not want crony capitalism. jonathan: they also mention how much they are spending on taxes. $42 billion? tom: 42 gazillion. jonathan: i'm real numbers from that company. the conversation continues, this is bloomberg. ♪ so many people are overweight now and asking the

let's start with the succession plan for jamie dimon. >> thanks for having me. j.p.gan's board close -- disclosed today that they plan to separate the ceo and chairman roles at the next ceo transition, when jamie dimon retires as ceo. what that might look like is, dimon stays on as chairman. it gives more clarity to the eventual post-dimon era, although that remains years away. shery: what were the comments when it comes to sit -- the situation in russia and ukraine? >> jamie had his annual letter come out this morning, that is what he does every year, it was quite long, 44 pages this year. on ukraine, he said, he called for increasing sanctions and said he is not worried for j.p. morgan's exposure but the firm could lose $1 billion over time and they continue to look for secondary impacts around the globe. haidi: hannah, our finance reporter, with the latest. the u.n. report on climate changes warning the world it could warm up. we discuss that with a research fellow, coming up next. this is bloomberg. ♪ shery: g20 countries are responsible for 80% of global admissi

we also her jamie dimon talking about a recession yesterday and that is quite serious.n the cards. tom: what about the individual players we are expecting? sydney, golden -- citi, goldman sachs. >> these are all large banks but they have different stories. citi is the largest american bank with exposure to russia. contrast that with wells fargo. they are not as exposed to some of this geopolitical risks. it will be interesting to see how goldman sachs compares with jp morgan of yesterday. goldman has a lot of trading business and it was the number one m&a advisor over this year. that activity is down so what we are going to see is different data points from different banks with lots of different stories indicating how the american economy is working. tom: therefore focusing on the bank earnings that are coming out. dinky very much to charlie wells. -- thank you very much to charlie wells. range bound on the s&p and the nasdaq is gaining 0.2%. the stoxx 600 in europe is paring some of their gains. "bloomberg surveillance: early edition" is up next. happy easter to those

shery: when it comes to russia, we have heard more comments coming from jamie dimon about how energy prices leads to surging inflation could make things more difficult, rising substantially. he said the war in ukraine and the sanctions on russia could minimally slow the economy and easily get worse. this as we are seeing the eu preparing for more sanctions against russia. let's discuss all of this with the u.s. saying they may impose further sanctions this week. we have global attention on alleged atrocities committed against civilians in ukraine. president biden once again calling russian president putin a war criminal, a label biden was criticized for using just weeks ago. ed: we have to get -- >> this guy is brutal. what is happening is outrageous. shery: let's bring in a bloomberg's political news director, jodi schneider. what other sanctions could we see in place? >> that is the question -- what more is there to sanction? president biden was not specific. he said given the alleged atrocities in bucha and the targeting of civilians that it was time for more sanctions. he said i'

interesting to see color from jamie dimon.is the commentary from the man himself and how does that readthrough to tomorrow? tom: so much coming up and we will monitor that. futures giveback. up nine on s&p futures. yield, 2.7%. brent crude, 106 a gallon. i will try to get that in a bit. stay with us. this is bloomberg. >> it really jumped the rails in terms of growth and inflation. >> we have the peak of inflation and are likely to see things come off. >> the broader picture there is not too much that has aggressively shifted. >> these inflationary pressures mean central banks will have to respond. >> the federal reserve will raise rates until something breaks. lisa: literal nuts and bolts of inflation, the readthrough in earnings. this is bloomberg surveillance.

credit jamie dimon for going out and building reserves.ion and the war in ukraine and the potential credit losses. i think ultimately the path to the final institutions will be traced out upon whether or not we begin to see these credit losses and ouch of the banks will have to build and reserve for potential losses >> you own bank, goldman, you sold calls in city and wells fargo. >> my biggest take away is that they just lived up to what we were talking about it was too expensive it was two times and you look at the different levels, some are more on the trading side joe has morgan stanley i like what goldman sachs is doing. they're half of the value of morgan stanley that's why i'm in those names. i think they're less expensive bank of america i compare to jp morgan that is why i picked what i got, i have that u.s. bank exposure as well. >> speaking of, jenni is all about the regionals. >> so what i leek about the regional banks in this environment is that in the environment that we're in,wher it is complexion and uncertain, you can look

let's go to jamie dimon's letter. he has trepidation about apple and others.hat are we going to learn about bank technology investment this week when we look out five years? kenneth: it is great to be here. of the growth of expenses for jp morgan, 40% to 50% is investing in technology. technology is needed to protect the franchise as it relates to new entrants, whether it is apple, any form of payments outside the system, and in the mortgage area, banks are a small percentage. they used to be 80%. it is below 30% of the market for mortgage origination. we are seeing technology leveling the playing field, and for banks that have strong brand, scale, antitrust, they have to invest. that affects margins. tom: i have $60 billion of operating income for jp morgan plus or minus a couple billion. who is counting? why do they have to build it internally? why don't they biofarma -- why don't they buy a firm? why don't they just buy the young turks? kenneth: they are doing that on the early venture-capital stage but not in terms of significant headline multibillion-doll

jamie dimon calling for a slowdown ahead what to watch today?n with cfra ken, markets, rates, war, what are the one or two key things that you are watching for the most today >> it is really management worry about run away inflation and geopolitical risk. that sets up the conversation related to the consumer for loans and what ceos think about raising money for m&a or investment ultimately if we are getting a shift back to a higher credit risk exposure. all three of these are being affected as you said, brian, because of the macro back drop >> you heard jamie dimon comments the numbers for jpmorgan chase, ken, the numbers seemed okay not great. okay writedowns reporting on to russia jamie is more vocal than other ceos of the other companies. do you expect these numbers to be good and maybe ceos coming out and putting up a warning flare? >> we are not firing on all cylinders as we did in 2021. obviously the most glaring is the capital markets. the consumer is the one. we are instead of batting 4 for 4, we are 2 for 4 and strength in credit card s

jamie dimon has been vocal, saying the consumer and the economy is fine.t are the rest of the banks say? sonali: not only is david -- is jamie dimon saying that but also david solomon with his risk list, one of them accelerating deglobalization, and he said that plus inflation impact, the risk of rising rates, could be meaningful for markets. with that said, the backlog for morgan stanley and others is robust, stable, and -- simply prolonging activity in equities and the m&a market, and you saw that little bit today from that elon musk news. guy: let's talk about the outlook for advisory. musk is represented by morgan stanley, goldman representing twitter. on the earnings calls, the talk of m&a has gone down dramatically. sonali: as equity volatility stabilizes a little bit and valuations are suppressed, that gives some opportunity for private equity to start showing up. the other thing here is that you see billionaire led deals in elon musk. elon musk, by the way, has counted morgan stanley as a banker before. they have hired them to do many jumbo loans f

jpmorgan chase jamie dimon releasing the shareholder letter i'm stalling so my friend leslie picker hasthrough the letter leslie, what are we seeing as the headline you know what i'm doing. she's reading the letter you know, what are the headlines? >> reporter: i got you, brian. all 44 pages here in the annual letter to shareholders this morning. he describes what he sees as three important and conflicting forces one, strong u.s. economy two, high inflation and rising interest rates and reversal of qe three, the war in ukraine. as for the u.s. economy, he describes the consumer in excellent financial shape on average. consumer spending the last few months is 12% above pre-covid levels housing prices surged and asset prices high. some in bubble territory without detailing which assets he believed were frothy that leads to monetary policy. the stronger the recovery, the higher the rates that follow he believes this could be significantly higher than the markets expect and stronger the qe he adds this will cause lots of consternation. he believes the fed should have flexibility in raising

jamie dimon, buried in the letter, says that oil is essential and critical.onathan: what did you call it this morning? tom: this note is a clarion call for global finance. jonathan: from new york city this morning. tk may be back in the next hour. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now, there's golo. golo helps with insulin resistance, getting rid of sugar cravings, helps control stress and emotional eating, and losing weight. go to golo.com and see how golo can change your life. that's g-o-l-o.com. >> if inflation starts to roll over, some of that pressure is taken off the fed. >> we need to see rates rise maybe another 25 basis once. >> the fed is more hawkish than they have ever been. >> they will be tightening in an economy that is slowing, not accelerating, and that will make a softer landing a very difficult task. >>

again, it's easier, as jamie dimon pointed out or as you have pointed out for the u.s.e less reliant on russia particularly for energy. it's going to be a lot more painful for the eu. the goal is to punish putin, to punish russia, at least to minimize the pain that's suffered by those trade partners and that's going to be really, really challenging, particularly since energy prices are already quite high, especially in the eu. >> if you are in europe, punishing putin you're going to feel some pain, too. the hope of sanctions is to make sure the target of the sanctions feels more pain than you do in delivering them. katheryn, so nice to see you. thank you. >> thank you. >>> let's get a check on more cnn business this morning looking at markets around the world. asian shares have closed mixed here. europe has opened down. stock index futures leaning lower. it was a down day on tuesday after hawkish remarks from lail brainered. he said the fed would need to race rates. the fed soared to 2.56%. twitter leveled off as investors digested the news elon musk would serve on the

you know we have jamie dimon saying in his letter that they are going to start hiking rates at a faster pace and way longer, where you stand on that. >> i agree when will the fed get our gear there was a 25 basis point hike but qe is continue represents and they are raising rates by growing the balance sheet their conflicting themselves there's not been any real action taken. liz: were gonna get cut off by a commercial break we are at session list for the nasdaq, thanks so much for joining us, much more straight ahead we are coming right back the dow at 254 and nasdaq lower by 327. ♪ how? aren't we all just looking for the hottest stocks? (fisher investments) nope. we use diversified strategies to position our client's portfolios for their long-term goals. (other money manager) but you still sell investments that generate high commissions for you, right? (fisher investments) no, we don't sell commission products. we're a fiduciary, obligated to act in our client's best interest. (other money manager) so when do you make more money, only when your clients make more money? (fisher investm

this is part of jamie dimon's annual letter to shareholders.ays behind that warning? >> jamie dimon sounds concerned about the impact of the economy at the same time. the war in ukraine, the rapid recovery from covid, and high inflation that's forcing the federal reserve to raise interest rates rapidly, and dimon is saying that the confluence of these forces rapidly increases risks ahead. what does that mean? he said at a minimum, we talk about a slower economic recovery, but he said it could quote, easily be worse than that, and he reminded us the 1973 oil embargo sent prices skyrocketing and tanked the world economy. now we know that oil prices have gone up since the war in ukraine began, but $103 a barrel as we speak and that's lifted gasoline prices as well, the national average for gasoline prices. $4.19 a gallon. that's down 14 cents from the record but it's still up. i want to leave you with a key line from dimon where he's calling for the western world to really unite here against russia. he said, quote, we need to make this a permanent

jpmorgan also announced a $30 billion share buyback but jamie dimon, who of course a lot of the market listens to, not just people investing in finance , are saying, is saying in essence on his earnings call, beware of what could be a very shakey market. in fact, he said, i love this double negative. i can not force, triple negative , i can not foresee any scenario at all where you're not going to have a lot of volatility in the markets going forward. so he is saying be ready for volatility. i mean, we've got the vix down today at least at last check. i'm just wondering as we look ahead at these banks, for years now, big bank investors and quite frankly the ceo's have sort of rubbed their hands together saying we can charge more for loans. we will make more on loans when the federal reserve begins to hike rates. the fed is now beginning to hike rates, yet year-over-year, goldman sachs, jpmorgan, bank of america, i mean, everybody but i think morgan stanley and that's what i'm seeing, dead money, flat year-over-year or down. what is an investor to think? >> well, i think what investors

i'm long going in. >> in that chair letter, jamie dimon pointed out a risk to the market will move faster. guy, how do you make sense of the mixed messages some sectors are already deep into bear market territory and felt the pain, the ark names, and others are close to all-time high and we have a sell off in bonds and stocks. >> i agree with karen about monolith except i don't know what monolith means so that becoming problematic for me. in terms of the fed, tim said it should be a bumper sticker, more fed means more volatility but the market doesn't seem to cares in the last month. you don't think it fully understands or comprehensives what's really going on here. if by definition fighting the fed when fed is easing liquidit than you're bearish, that's fine but effectively fighting the fed now means you're bullish i'm surprised how high we got in nasdaq and s&p i'm not trying to be to pok liptic but i don't think the market fully realizes what not having a fed back stop, not having federal reserve effectively under writing this market which is what they've done the last decade and half

meanwhile i look at jamie dimon everyone's puzzled why jpmorgan is falling after being up there at 160, 165, it just got too expensive and i agree with guy, it's still expensive i'm looking at it whether 1.8 or 2-point tangible book, either way it's a very expensive play given what they reported on. we knew some numbers would be bad. no doubt about it. goldman sachs will have numbers that will not be pretty either generally you can see goldman sachs is the golde-- tgoldman sd and they'll give us a big number. >> all right, coming up the number one worry on investors mind and shares of delta airlines ceo saying things are phenomenal do our traders agree that trade and much more when "fast money" returns wonder woman... serena... wonder woman... serena... wonder woman. ace. advantage! you cannot be serious... get your tv together with the best of live and on demand. directv stream. now get $30 off over 3 months. you can't buy love. happiness. or confidence. but you can invest in them. at t. rowe price our strategic investing approach can help you build the future you imagine. ♪ ♪ >>> wel

adjusted and affected by this , still remains the biggest black cloud and now jpmorgan chase ceo jamie dimon is warning of its risks to the economy, and of an increasing chance of drastically higher interest rates to battle sky high inflation. russia's invasion wiping out a huge chunk of agricultural products in the global marketplace, one of the biggest fertilizer producers with us in a fox business exclusive. the icl group ceo is going to be here to tell you what his company has done to jump into the fray to help farmers and food producers across the globe, but first we got to start with this breaking news as we kickoff the final hour of trade, twitter shares are looking at their biggest gain in company history, and shareholders can thank one guy, that's elon musk, for dive- bombing right into the little blue bird's nest. right now, the stock of the social media company which went public way back in november of 2013 is up 28% today alone. the only other single day gain that comes close was the 21% jump on september 23 of 2016, and that was when another business network, not us, floated a r

morgan because jamie dimon is incredible and there's a reason why he's at the helm of that bank farmer jim and i talked about this and jamie tends to be cautious which is what you want from the 11th largest bank in the world to be in a potential time of uncertainty. you do not want jamie risking the balance sheet on a whim. he's underpromising and overdelivering and read through from the bank, in my humble opinion, they will learn from what jamie said that has the markets nervous about the space right now and they're going to adjust those earnings call comments accordingly i do believe that there is an opportunity in the options sector overall i do also believe that there is safety in the numbers. so those bigger banks are going to do well those banks with a diversified business mix are going to do well because they can make money even though we're seeing some challenges in some areas of those banks. goldman sachs, again, we talked about it goldman sachs, i think they are going do well and even with the capital market coming in on the underwriting trading is a hugs are. they diversifie

the jpmorgan ceo, jamie dimon, out with a dire warning for the global economy he delivered it in his will likely shake the world for years to come. first the u.s. economy and how it rebounded from the covid pandemic. >>> plus an era of rising interest rates and third, the fallout from russia's invasion of ukraine jamie dimon remains hopeful but said we should prepare for negative outcomes. >>> the swedish electric vehicle maker polestar announcing a global partnership with hertz. the car rental giant will purchase up to 65,000 evs over the next five years. here's the polestar ceo on "squawk box. >> it will help people to experience electrification, driving an electric car for the first time. >> this comes after hertz announced a similar deal with tesla. >>> and coca-cola has a new flavor called coke zero sugar bite the soda giant reports it tastes like pixels, like who knows what pixels taste like. i do not to drum up interest, coke is offering only a glimpse of the pixel drink in the digital world. you can check it out on pixel island in the video game fortnite the real-life soda is

report we've seen the kind of mix although some of the numbers have been there is some concern and jamie dimon said it himself is concerned about what is coming to tell the future concerns to the economy. although we sell really rising and trading volumes because the chaos all this has created has certainly helped those firms and their trading revenues. but overall it's cautious the guys said were going to hear going forward from a lot of the companies not just the banks but sectors in general. >> a lot of people are worried about a real sharp slowdown in the economy given the inflation numbers that we are seeing 40 year highs again, a whopper of a number this week on the producer price index at 11-point to percent. kenny causa highest ppi move we have seen ever. how was this playing out from a wall street perspective? >> look ppi is ahead of cpi so those numbers as increases are going to start to make their way through to the consumer and about six -- eight weeks so consumers should expect the cpi number is going to continue to inch higher in the months ahead with this idea that it speaking w

bank, which is jamie dimon.n only extrapolate from what they're -- if jamie dimon and fink are saying we have overheated inflation, we've overheated the economy. by the way, jamie also said some of the biden stimulus wasn't called for, that it's clear now it caused inflation. neil: wow. >> which is pretty interesting -- neil: did he say that at the time though? >> that's a good question. i don't think he said anything at the time. neil: right. >> he's been warning about inflation. neil: he has. >> but he clearly thinks we overheated the economy with all that biden stimulus. neil: so talk about more government stimulus -- >> is crazy. but when a guy who has the ear of powell does what he does today, i asked economists, fed watchers, you name it, what does that mean for rates, everybody says it's 50 basis points at this next meeting. now, can i guarantee it? no, obviously, you can't garon guarantee anything. neil right. >> all these ceos, this is something that i think the market's going to have to appreciate -- n

makingaways after -- waves after peter teal threw shade -- peter thiel dragged warren buffett, jamie if dimon and larry fink for their vision, or lack thereof, when it comes to crypto. coming up, we are going to take you live to the conference, tell you what he actually got wrong in his insult-fest, and we'll get reaction from the founder of the very first publicly-traded crypto mining company. and as mortgage rates build up, will the housing market start to fall down? we talk to the woman who sends up distress signals ahead of the 2008 subprime mortgage crisis. we'll ask sheila bair what warning signs she's seeing this time around. but first, fox market alert, we need you to focus your attention on the dow transports. we have the transports, can we show them right now? i believe they are down about three-quarters of a percent or 104 points right now. the transports are down 6.5% this week on track for the worst week since october of 2020. what's going on? bank of america downgrading several transportation stocks, citing deteriorating demand and fall ifing prices. those stock thes include ups

michael, jamie dimon released his annual letter today.ne. your thoughts on how to allocate capital here. did anything strike you about that letter and what do you think drives markets going into earnings season which is just a week and-a-half away. >> look, i tend to agree with what ryan said. this should be a pretty good earnings season. however, i think the points that katherine has made about yield curve inversion and hiking into what seems to be an imminent recession are a little bit more significant. so i'm still long stocks. but i'm long haul defensive sectors. so my top pick is the energy sector. i think you have a supply, demand story that will continue to play out. this is the smallest sector of the s&p 500 so by definition it's almost under-owned as well as a lower multiple sector versus everything else so as we see continued liquidity come out of the market it's harder to compress multiples that are already lower. many of these names that represent the sector are higher yielding so they tend to be a little bit safer and again,

jamie dimon mentioned it in his quarterly report.at we'll seize's see a re-- see a recession this year and how does that blanket over the earnings and guidance that you're seeing? what's the impact? >> yeah, i do think we're going to see a recession this year and i think the recession is going to be driven by the fact that -- just take mortgages, right. simple example, everybody can understand. you know, a year ago if you bought the average house and you put the average down payment down on it it would cost you $1,400 a month. this year in the same situation it costs 1800 a month and i almost am willing to guarantee you it's going to be over 2 grand a month when you go forward. you reported beautifully in terms of the increases in the prices of all of the things that people buy, whether it's gas or bread and the bottom line is if that continues, and i think it will, it's got to result in a very sharp response by the fed and that sharp response has got to be to kill demand and if you kill demand you are in a recession. and that's goin