Miscellaneous Quotes for Week to 14th July 2017

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JPMorgan Chase & Co. Chairman Jamie Dimon in Paris

We face risks in the unwinding

“‘We’ve never had QE like this before, we’ve never had unwinding like this before. Obviously that should say something to you about the risk that might mean, because we’ve never lived with it before….When that happens of size or substance, it could be a little more disruptive than people think. We act like we know exactly how it’s going to happen and we don’t.”

Prepare for a hard Brexit

“We have to be prepared for a hard Brexit. So whether you think it´s going to happen or you think it is not going to happen, that is the planning.”

 

Air France-KLM CEO Jean-Marc Janaillac

Summer booking positive in France

“The second quarter is good and the bookings for this summer are also quite positive compared to last year…We suffered from terrorist attacks, especially in 2016, but we have recovered this year. Visitors from the States and China and Japan are coming back. This year we came back to the situation of two years ago and a bit more. We are quite hopeful that during the next year we are going to keep on increasing our visitors from overseas.”

 

Bank of Canada Monetary Policy Statement

Stimulus withdrawal begins

“Recent data have bolstered the Bank’s confidence in its outlook for above-potential growth and the absorption of excess capacity in the economy. The Bank acknowledges recent softness in inflation but judges this to be temporary. Recognizing the lag between monetary policy actions and future inflation, Governing Council considers it appropriate to raise its overnight rate target at this time….Governing Council judges that the current outlook warrants today’s withdrawal of some of the monetary policy stimulus in the economy.”
SEC Chairman Jay Clayton at the Economic Club of New York

On the DOL Fiduciary rule

“With the Department of Labor’s Fiduciary Rule now partially in effect, it is important that the Commission make all reasonable efforts to bring clarity and consistency to this area.  It is my hope that we can act in concert with our colleagues at the Department of Labor in a way that best serves the long-term interests of Mr. and Ms. 401(k). There is a lot of work to do, and this issue is complex…any action will need to be carefully constructed, so it provides appropriate and meaningful protections but does not result in Main Street investors being deprived of affordable investment advice or products.”

 

Note by Ray Dalio Chairman & CIO at Bridgewater Associates

It´s the end of an era so dance closer to the exit

“we are at a) the end of that nine-year era of continuous pressings down on interest rates and pushing out of money that created the liquidity-fueled moves in the economies and markets, and b) the beginning of the late-cycle phase of the business/short-term debt cycle, in which central bankers try to tighten at paces that are exactly right in order to keep growth and inflation neither too hot nor too cold, until they don’t get it right and we have our next downturn. Recognizing that, our responsibility now is to keep dancing but closer to the exit and with a sharp eye on the tea leaves.”

And the beginning of a new one

“Generally speaking (depending on the country), it is appropriate for central banks to lessen the aggressiveness of their unconventional policies because these policies have successfully brought about beautiful deleveragings….looking ahead, we don’t project a big debt bubble bursting any time soon (because of the balance sheet repairs that have taken place), though we do see an increasingly intensifying “Big Squeeze””