A global recession could be triggered by the\u00a0conflict\u00a0in the Middle East as the humanitarian crisis compounds the challenges facing an already precarious world economy, two of Wall Street\u2019s biggest names warned this weekend.<\/p>\n\n\n\n
Larry Fink, chief executive of the world\u2019s largest asset manager, BlackRock, said a combination of the Hamas atrocities of 7 October, Israel\u2019s resultant attack on Gaza and Russia\u2019s invasion of Ukraine last year had pushed the world \u201calmost to a whole new future\u201d.<\/p>\n\n\n\n
In an interview with the Sunday Times, he said: \u201cWhen the Russian invasion occurred in Ukraine, we said that the peace dividend is over. Geopolitical risk is a major component in shaping all our lives. We are having rising fear throughout the world, and less hope. Rising fear creates a withdrawal from consumption or spending more. So fear creates recessions in the long run, and if we continue to have rising fear, the probability of a European recession grows and the probability of a US recession grows.\u201d<\/p>\n\n\n\n
Jamie Dimon, the chair of America\u2019s biggest bank,\u00a0JP Morgan, told the same newspaper that the combination of Israel\u2019s war on Hamas and\u00a0Russia\u2019s invasion of Ukraine\u00a0\u2013 were \u201cquite scary and unpredictable\u201d.<\/p>\n\n\n\n
\u201cHere in the US we continue to have a strong economy. We still have a lot of fiscal and monetary stimulus in the system. But these geopolitical matters are very serious \u2013 arguably the most serious since 1938,\u201d he said. \u201cWhat\u2019s happening on the geopolitical front right now is the most important thing for the future of the world \u2013 freedom, democracy, food, energy, immigration.\u201d<\/p>\n\n\n\n
The comments come three weeks after similar apocalyptic remarks from Dimon, who is one of the world\u2019s best known financiers.<\/p>\n\n\n\n
Three weeks ago,\u00a0he issued a warning\u00a0that the world may be living through \u201cthe most dangerous time the world has seen in decades\u201d, with the escalating conflict potentially having \u201cfar-reaching impacts\u201d on energy prices, food costs, international trade and diplomatic ties.<\/p>\n\n\n\n
At the bank\u2019s most recent update to Wall Street last month, Dimon said: \u201cThe war in Ukraine compounded by [the] attacks on\u00a0Israel\u00a0may have far-reaching impacts on energy and food markets, global trade and geopolitical relationships. This may be the most dangerous time the world has seen in decades\u201d.<\/p>\n\n\n\n
The negative Wall Street sentiments about the global economy have been echoed elsewhere. Last week, the Economist published a\u00a0leader articleentitled: \u201cThe world economy is defying gravity. That cannot last.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
A global recession could be triggered by the\u00a0conflict\u00a0in the Middle East as the humanitarian crisis compounds the challenges facing an already precarious world economy, two of Wall Street\u2019s biggest names warned this weekend. Larry Fink, chief executive of the world\u2019s largest asset manager, BlackRock, said a combination of the Hamas atrocities of 7 October, Israel\u2019s […]<\/p>\n","protected":false},"author":8,"featured_media":39610,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_post_source_name":"","_post_source_url":"","footnotes":""},"categories":[61],"tags":[11110,5304,11394,7358,10767,8440,11606,12246,11240,5196,5494,9505,8057,6496,4028,3577,2629,5930,6094,10954,11493,5252,3095,8246,12791,8719,11973,5396,10390,6069,5807,3457,5217,11325,8840,10329,5180,6348,10829,5251,12790,36,594],"class_list":["post-39609","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-asset","tag-attack","tag-attacks","tag-bank","tag-conflict","tag-crisis","tag-democracy","tag-diplomatic","tag-diplomatic-ties","tag-economy","tag-energy","tag-european","tag-fear","tag-food","tag-freedom","tag-future","tag-gaza","tag-hamas","tag-immigration","tag-international","tag-interview","tag-invasion","tag-israel","tag-jp-morgan","tag-manager","tag-middle-east","tag-one","tag-peace","tag-prices","tag-recession","tag-risk","tag-russia","tag-russian","tag-street","tag-strong","tag-trade","tag-ukraine","tag-us","tag-wall-street","tag-war","tag-weekend","tag-world","tag-who"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts\/39609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/comments?post=39609"}],"version-history":[{"count":1,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts\/39609\/revisions"}],"predecessor-version":[{"id":39611,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/posts\/39609\/revisions\/39611"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/media\/39610"}],"wp:attachment":[{"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/media?parent=39609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/categories?post=39609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nsemgh.com\/api-json\/wp\/v2\/tags?post=39609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}