Jamie Dimon isn't worried about emerging markets — and thinks they shouldn't even be called emerging markets at all, he told CNBC-TV18's Shereen Bhan in New Delhi Thursday.
"I'm not really concerned about emerging markets — put Turkey and Argentina aside where I think you have very serious issues — the rest of the emerging markets are actually doing quite well," the J.P. Morgan CEO said.
Emerging markets became submerging markets by last spring, with currencies falling across the board and the blame falling squarely on rising interest rates and a stronger dollar. Added stress has come from the steady uptick in trade tariffs between the U.S. and its trade partners, particularly China.
"America's gotten stronger, the dollar has gotten stronger, but that's actually good for the world. The world is actually growing quite healthily," Dimon said. "The emerging markets are more like a teething thing. They're not all the same, I don't even think they should be called emerging markets anymore, to tell you the truth."
Emerging market gross domestic product (GDP) growth fell to 4.1 percent in August from 4.3 percent in July, the lowest since April 2016, according to estimates from the Institute of International Finance. And the MSCI emerging markets index has fallen more than 11 percent year-to-date.
The Indian rupee hit a record low this week at 72.84 to the U.S. dollar, with Indonesia and Thailand's currencies also taking a hit along with the rest of Asia, in part due to the impact of America's burgeoning trade war with China. Turkey's lira had lost 40 percent of its value against the dollar by August over Ankara's reluctance to raise interest rates in an overheating economy and a diplomatic row with the U.S., sending shockwaves across emerging markets. Meanwhile, major Latin American markets Argentina and Brazil are facing turmoil of their own.
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