Business

JPMorgan Chase CEO Jamie Dimon warns ‘there’s a recession ahead’

JPMorgan Chase Chief Executive Jamie Dimon warned Tuesday a recession may be on the horizon thanks to the continuing trade tensions with China.

“Of course there’s a recession ahead,” Dimon said during a morning call with reporters after the bank announced its third-quarter earnings. “What we don’t know is if it’s going to happen soon.”

“It does look like geopolitics, particularly around China and trade, are reducing business confidence and business capital expenditure,” Dimon said. By contrast, consumers have been largely unaffected by the trade war and are still benefiting from both strong home sales and unemployment hitting a 50-year low in September, Dimon noted.

“The consumer is not under strain. The consumer is doing fine,” the banking chief said.

The comments come just days after President Trump announced the first phase of a trade deal with China that guarantees another $40 billion in purchases of US goods, but also keeps tariffs on some Chinese imports.

The stock market reaction to the deal, which still needs to be put in writing and signed, was muted Monday, with the Dow ending 237 points higher.

Businesses have been slowing hiring in recent months as the trade war has dragged on into its 18th month — with economists worried that consumers could be next to feel the pinch.

“What the market doesn’t want, and what businesses don’t want, is an acceleration of the trade war,” Quincy Krosby, chief market strategist at Prudential Financial, told The Post.

Dimon’s bank appears to be immune thus far from the larger business slowdown. JPMorgan profits rose 8% during the third quarter, to $9.1 billion, or $2.34 a share — beating analysts’ expectations and lifting the stock to $119.96 a share, an all-time high.

JPMorgan earned $8.38 billion, or $2.34 a share, in last year’s quarter ended on Sept. 30.

It wasn’t all rosy on Wall Street, however, as three other major banks reported mixed earnings.

Citigroup, run by CEO Michael Corbat, reported profits of $4.9 billion, beating expectations. The bank was hit harder than expected by lowered interest rates, which resulted in net interest income of $11.6 billion, or $500 million lower than expectations.

Citi’s stock initially fell more than 2%, but ended up 1.4%, to $71.22 a share.

Wells Fargo, which named Charles Scharf as its next CEO last month, reported $4.6 billion in profit during the third quarter, a 23% slide from last year.

The bank, which has been slammed for three years by a multitude of consumer scandals, reported $1.6 billion in litigation costs.

Still, the stock rose, ending the day up 1.7% to $50.11, as investors rallied around expectations of Scharf, who took over the reins Monday and is expected to cut costs.