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 New York – JPMorgan Chase announced today that Brian Lamb has been named the Global Head of Diversity & Inclusion, a newly created position at the firm. Lamb, who will report to the firm’s Co-Presidents, will be responsible for executing a strategy that builds on the firm’s existing work and further incorporates a diversity lens into how the firm develops products and services, serves clients, helps communities and supports employees.

“Brian’s deep experience is precisely what we need to help our firm build on our diverse and inclusive culture, and drive it into every corner of our company,” said Gordon Smith, Co-President for JPMorgan Chase and CEO for Consumer & Community Banking. “Building a culture where all employees and customers are treated equally and feel welcome is a business imperative, and we’re fortunate to have Brian’s leadership in this critical area.”

This new role will strengthen and improve coordination of the firm’s existing strategy to support underserved communities as well as elevate the firm’s existing Diversity & Inclusion initiatives, including Advancing Black Pathways, Advancing Black Leaders, Military & Veterans Affairs, Women on the Move, the Office of Disability Inclusion, Global Supplier Diversity, and regional and line of business diversity functions. These focused efforts to-date have strengthened the firmwide culture in important and measurable ways.

The firm recently identified a number of areas across the company that, with enhanced, scaled or new programming or processes, would serve to ensure the firm’s culture is not one where racism can live or thrive. Those include enhancing the employee feedback process, making it easier for customers to access products and services in all branches, bolstering hiring to build a stronger pipeline of diverse talent, implementing additional required diversity and inclusion training firmwide, and increasing the diversity of businesses the firm partners with across the world.

“I’m excited to join JPMorgan Chase and help to further foster a culture where diversity and inclusion are a central and driving force,” said Brian Lamb, Global Head of Diversity & Inclusion, JPMorgan Chase. “A company that is diverse and inclusive can better serve our customers, employees and communities — and that is good for business.”

“Applying a diversity lens to everything we do is critical to running a successful business,” said Daniel Pinto, Co-President for JPMorgan Chase and CEO, Corporate & Investment Bank. “We are more effective when we take a diverse and inclusive approach to our work, and with Brian on board, I believe we’ll be more successful all around.”

Lamb joins JPMorgan Chase from Fifth Third Bank where he served as Executive Vice President and Head of Retail Banking. His 13 year career there included time as Head of Wealth & Asset Management and Chief Corporate Responsibility & Reputation Officer, where he was responsible for building the comprehensive strategic framework for the Bank’s civic commitments, inclusion & diversity and reputation management.

Throughout his career he has remained passionate about diversity and inclusion. Notably, he partnered with the National Community Reinvestment Coalition to launch a $30 billion community commitment that focused on access to capital for small businesses, first-time home ownership and educational opportunities for underserved communities and people of color.

He currently serves on the United Way Campaign Cabinet, Greater Cincinnati Urban League and is Vice Chair of the Florida Board of Governors. He previously served as Chair of the University of South Florida (USF) Board of Trustees where he also helped to lead a campaign to close the graduation rate achievement gap between women and people of color as compared to white students. While at USF, he mentored hundreds of women and minority students and established a scholarship fund for first-generation minority and female college students.

Brian also served as Chair of the Tampa Bay Partnership and held board positions with the Florida Bankers Association and Florida Council of 100.

Lamb holds a graduate degree from the Stonier Graduate Banking School at the University of Pennsylvania and a bachelor’s degree and MBA from the University of South Florida.

To learn more about JPMorgan Chase’s Diversity and Inclusion efforts, please visit https://www.jpmorganchase.com/corporate/About-JPMC/diversity.htm.

About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.7 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

Washington, DC – Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) issued the following statement:

“Today, I am pleased to say that our Executive Board approved immediate debt service relief to 25 of the IMF’s member countries under the IMF’s revamped Catastrophe Containment and Relief Trust (CCRT) as part of the Fund’s response to help address the impact of the COVID-19 pandemic.

“This provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months and will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts.

“The CCRT can currently provide about US$500 million in grant-based debt service relief, including the recent US$185 million pledge by the U.K. and US$100 million provided by Japan as immediately available resources. Others, including China and the Netherlands, are also stepping forward with important contributions. I urge other donors to help us replenish the Trust’s resources and boost further our ability to provide additional debt service relief for a full two years to our poorest member countries.”

The countries that will receive debt service relief today are: Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, Congo, D.R., The Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo, and Yemen.

Today, EU ambassadors agreed the Council’s position on two legislative proposals which will free up funds to tackle the effects of the COVID-19 outbreak. Given the urgency of the situation, both proposals were approved without amendments.

The so-called Coronavirus Response Investment Initiative will make available €37 billion of Cohesion funds to member states to address the consequences of the crisis. About €8 billion of investment liquidity will be released from unspent pre-financing in 2019 for programmes under the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund. The measure will also provide access to €29 billion of structural funding across the EU for 2020. Expenditure on crisis response will be available as of 1 February 2020.

The new measures will support SMEs to alleviate serious liquidity shortages as a result of the pandemic, as well as strengthen investment in products and services necessary to bolster the crisis response of health services. Member states will also have greater flexibility to transfer funds between programmes to help those most adversely affected.

EU ambassadors also endorsed without amendment a legislative proposal to extend the scope of the EU Solidarity Fund to cover public health emergencies. The fund was initially set up to help member states and accession countries deal with the effects of natural disasters. Including public health emergencies will enable the Union to help meet people’s immediate needs during the coronavirus pandemic. The aim is to complement efforts of the countries concerned.

Next steps

The European Parliament will now need to agree its position on the new measures. Once there is an agreement, the Council is expected to adopt the measures by written procedure.

SAN FRANCISCO– Wells Fargo & Company today announced that it has entered into agreements with the United States Department of Justice (DOJ) and the United States Securities and Exchange Commission (SEC) to resolve these agencies’ investigations into the Company’s historical Community Bank sales practices and related disclosures. As part of this resolution, Wells Fargo has agreed to make payments totaling $3 billion.

Charlie Scharf, chief executive officer, said: “The conduct at the core of today’s settlements — and the past culture that gave rise to it — are reprehensible and wholly inconsistent with the values on which Wells Fargo was built. Our customers, shareholders and employees deserved more from the leadership of this Company. Over the past three years, we’ve made fundamental changes to our business model, compensation programs, leadership and governance. While today’s announcement is a significant step in bringing this chapter to a close, there’s still more work we must do to rebuild the trust we lost. We are committing all necessary resources to ensure that nothing like this happens again, while also driving Wells Fargo forward.”

As the settlement agreements with the DOJ recognize, Wells Fargo cooperated fully with the government’s investigations.

Today’s resolution includes:

An agreement with the DOJ that resolves the criminal investigation into sales practice activities in the Community Bank from 2002 to 2016. As part of the agreement, no charges will be filed against Wells Fargo provided Wells Fargo abides by all the terms of the agreement.
A separate settlement agreement that resolves DOJ’s civil investigation.
And a separate administrative order that resolves the SEC’s civil investigation. Wells Fargo has agreed to the establishment of a $500 million Fair Fund for the benefit of investors who were harmed by the conduct covered in the agreement. The Fair Fund is part of the $3 billion settlement.
Wells Fargo had fully accrued for the amount of this settlement as of December 31, 2019.

Remedial actions taken by company since 2016

Since 2016, Wells Fargo has made fundamental changes to its leadership, governance, processes, controls and culture to ensure the misconduct that is the subject of today’s actions can never recur.

These changes include:

Significant leadership changes:
A new CEO and majority of new members on the Operating Committee, Wells Fargo’s senior-most management committee.
Significant management changes at all levels of the Community Bank, including senior executives.
Reconstitution of a majority of the Board’s independent directors (8 new independent directors), including the majority of Board Committee Chairs.
Elimination of all product-based sales goals that led to this conduct.
Implementation of a new incentive compensation structure for retail bankers that rewards them based on customer outcomes and requires risk accountability at all levels.
Enhancement of the Community Bank’s processes for customer consent and stronger oversight and controls.
Investment of more than 800,000 hours in learning and development for retail bank employees to support cultural, process and policy changes, with training ongoing.
Reorganization and centralization of key Company functions, including Risk, Human Resources, Finance, Technology, and Data.
Even before today’s establishment of the Fair Fund, agreement to pay more than $500 million to customers and investors as remediation for harm that resulted from the historical Community Bank sales practices.
About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, investment and mortgage products and services, as well as consumer and commercial finance, through 7,400 locations, more than 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 32 countries and territories to support customers who conduct business in the global economy. With approximately 260,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 29 on Fortune’s 2019 rankings of America’s largest corporations. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.

San Francisco, CA – JPMorgan Chase announced today a $22 million investment to develop and preserve affordable housing in San Francisco and Oakland as part of the firm’s $75 million, five-year commitment to the Bay Area. This new investment, which combines long-term, low-cost loans and philanthropy, will provide more affordable housing, protect local residents from displacement and apply learnings from the firm’s investment in other cities. The investment announced today will leverage new policy changes to advance solutions that tackle the region’s affordable housing challenges.
“Neighborhoods thrive when people have access to affordable housing. Our investment will help address the serious and ongoing challenges of displacement and affordability by applying proven approaches that are working in the Bay Area and we have helped develop in other cities,” said Allen Fernandez Smith, Head of West Region Philanthropy, JPMorgan Chase. “There is a long way to go to tackle these issues, but we’re confident that with the right partners and solutions more people can benefit from the region’s growth.”
“The challenges of housing affordability are too big for any of us to solve on our own, and we’re grateful to the San Francisco Housing Accelerator Fund for working with the City to support the construction and preservation of permanently affordable housing—especially for our most vulnerable residents,” said San Francisco Mayor London N. Breed. “This new investment from JPMorgan Chase will allow SFHAF to continue their important work of helping San Franciscans remain in their homes.”
“This investment is a great example of what’s possible when business and local organizations work side by side to take on one of the biggest challenges facing the city of Oakland,” said Oakland Mayor Libby Schaaf. “We’re encouraged by the work JPMorgan Chase and others are doing here to combat displacement, and support our ongoing affordability efforts.”
$22 Million Affordable Housing Investment
Local Bay Area nonprofits will deploy the new investment using debt and equity to preserve existing and develop new affordable multi-family housing. Equity capital will be used only by developers committed to making affordable homes healthier for residents and more environmentally sound. Debt funds, provided by JPMorgan Chase, will help address a long-standing local challenge of preserving the affordability of small site properties in diverse neighborhoods, which are vulnerable to market pressures resulting in rising rents, increased evictions and property sales.
The total impact of this $22 million investment, along with assistance from other investors, is projected to support the preservation and creation of over 2,250 affordable residential units, commercial units, and underutilized space converted to new affordable housing units:
$15 million: low-cost, long-term loan to the Housing for Health Fund (HFHF). Anchored by $30 million in equity from Kaiser Permanente and managed by Enterprise Community Investment, the $45 million fund will provide much-needed equity to help developers more quickly acquire housing and ensure it is affordable. HFHF will invest the majority of its capital in the City of Oakland and remaining funds will be invested across Northern and Central California counties.
$6 million: low-cost, long-term loan to San Francisco Housing Accelerator Fund (SFHAF). This nonprofit community development financial institution (CDFI) will lend these funds to preserve the affordability of small site properties the City and County of San Francisco.
$1 million: philanthropic investment to East Bay Asian Local Development Corporation (EBALDC) to support anti-displacement efforts and development in Oakland, including testing modular construction as a way to expedite projects and decrease costs.

“We are so excited to have our first co-investor in the Housing for Health Fund, and so proud that it is JPMorgan Chase, who share in our values of creating thriving, equitable communities,” said Bechara Choucair, MD, chief community health officer, Kaiser Permanente. “Expanding the fund to $45M will allow us to preserve hundreds more units across the Bay Area and protect residents from risks of displacement and the negative health impacts of housing instability and homelessness.”
“Enterprise leads a shift in making a community’s health a central priority in how affordable homes are developed and preserved,” said Priscilla Almodovar, Chief Executive Officer, Enterprise Community Partners. “JPMorgan Chase is providing much-needed capital for the creation of affordable homes in the Bay Area. This will result in improved health, well-being and financial stability for people, leaving them with additional resources for medical bills and other needs.”
The loan to SFHAF will first be used to support the rehabilitation and construction of 11 new units of permanently affordable housing at 1535 Jackson Street in the Polk Gulch neighborhood. Chinatown Community Development Corporation (Chinatown CDC) has a 42-year history of providing culturally-appropriate services and housing solutions to the needs of community members. It acquired this mixed-use property in May 2019. The building included 19 Single Room Occupancy (SRO) units and a ground-floor community space, formerly home to the Chinese Community Church. The building is currently occupied by extremely low-income senior tenants with average household incomes of approximately 20 percent area median income (AMI). Construction on the 11 new units on the ground floor of the building will begin in January 2020, supported by the loan to SFHAF.
“We are grateful for JPMorgan Chase’s support to accelerate critical housing preservation and production. Their commitment will allow us to fund the acquisition of affordable homes across the city – preventing displacement of long-term residents – and to build new affordable units in innovative and cost-effective ways. Thank you for helping us advance our mission to protect the diversity and vibrancy of San Francisco,” said Rebecca Foster, Chief Executive Officer, SFHAF.
“The severity of our housing crisis requires new and innovative solutions. We are delighted and grateful to have support from JP Morgan Chase to accelerate new approaches to addressing displacement in Oakland and beyond,” said Joshua Simon, Executive Director, EBALDC.
$75 Million Bay Area Commitment
JPMorgan Chase’s $75 million commitment to the Bay Area builds on the firm’s $25 million commitment made in 2016, bringing the total to $100 million in business and philanthropic investments by 2024. The firm’s initial $25 million investment focused on creating inclusive growth across the Bay Area and helped make an early local impact:
1,937 people participated in workforce training programs
343 units of affordable housing created or preserved
825 people received services to improve their financial health
1,992 jobs created or retained
1,778 business received capital or technical assistance

The new $75 million commitment is part of JPMorgan Chase’s AdvancingCities, a $500 million initiative to drive inclusive growth and create greater economic opportunity in cities across the world by combining the firm’s lending capital, philanthropic capital, policy solutions and business expertise. This effort is financing critical projects, helping more people benefit from economic growth and leveraging outside capital to invest a total of $1.5 billion in cities.
Locally, it will focus on the unique challenges of affordability and displacement facing Oakland and San Francisco and ways to create economic opportunity for more people. The firm will also apply learnings from its investments in other cities including Detroit, Chicago’s South and West Sides, the Greater Washington, D.C. region and Greater Paris, working closely and collaborating with local business and community leaders to develop solutions and attract additional investment.
Over the next several years, the firm, working with local partners, will continue to direct its Bay Area investments to support four key drivers of inclusive growth: equipping workers with critical job skills, providing capital and expertise that women and minority entrepreneurs need to grow their businesses, investing in new housing models and locally-driven solutions to promoting thriving neighborhoods, and helping families build strong financial futures.
JPMorgan Chase’s philanthropic investments already include the creation of a local Entrepreneurs of Color Fund to provide minority-owned small businesses with low-cost capital, critical job training for underserved populations to help with construction of the Chase Center, and helping local small businesses avoid displacement.
History in the Bay Area
JPMorgan Chase has been serving the Bay Area community for more than 130 years, and has worked to understand the needs of the community and make strategic investments to help all residents grow with the region. Over the last 10 years, the firm has nearly doubled the number of Chase branches and has nearly 3,000 employees serving more than 2.6 million customers in the Bay Area. Employees earn a minimum wage of $18 an hour and in 2018 alone, JPMorgan Chase facilitated or directly financed over $2 billion in housing, transportation, and healthcare projects for San Francisco and Oakland, including over $800 million in loans for the development of more than 6,000 affordable housing units.
Over the past 5 years, the firm’s Community Development Banking business provided $726 million to finance affordable housing and invested over $140 million in New Markets Tax Credits projects in the Bay Area, helping to support the creation and revitalization of education and arts facilities, health and social service centers.
2019 marked the opening of Chase Center, which JPMorgan Chase sees as a symbol of the firm’s commitment to the Bay Area. To help ensure members of the community had a chance to share in the economic opportunity created by the construction of Chase Center, the firm extended its job training efforts to a total of nearly 2,000 Bay Area residents, including three rounds of construction pre-apprenticeships and specialized trades training for contractors to hire local workers in the construction of Chase Center and other development sites throughout San Francisco.

About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.7 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

WASHINGTON — Global economic growth is forecast to edge up to 2.5% in 2020 as investment and trade gradually recover from last year’s significant weakness but downward risks persist, the World Bank says in its January 2020 Global Economic Prospects.

Growth among advanced economies as a group is anticipated to slip to 1.4% in 2020 in part due to continued softness in manufacturing. Growth in emerging market and developing economies is expected to accelerate this year to 4.1%. This rebound is not broad-based; instead, it assumes improved performance of a small group of large economies, some of which are emerging from a period of substantial weakness. About a third of emerging market and developing economies are projected to decelerate this year due to weaker-than-expected exports and investment.

“With growth in emerging and developing economies likely to remain slow, policymakers should seize the opportunity to undertake structural reforms that boost broad-based growth, which is essential to poverty reduction,” said World Bank Group Vice President for Equitable Growth, Finance and Institutions, Ceyla Pazarbasioglu. “Steps to improve the business climate, the rule of law, debt management, and productivity can help achieve sustained growth.”

Download the January 2020 Global Economic Prospects report.

U.S. growth is forecast to slow to 1.8% this year, reflecting the negative impact of earlier tariff increases and elevated uncertainty. Euro Area growth is projected to slip to a downwardly revised 1% in 2020 amid weak industrial activity.

Downside risks to the global outlook predominate, and their materialization could slow growth substantially. These risks include a re-escalation of trade tensions and trade policy uncertainty, a sharper-than expected downturn in major economies, and financial turmoil in emerging market and developing economies. Even if the recovery in emerging and developing economy growth takes place as expected, per capita growth would remain well below long-term averages and well below levels necessary to achieve poverty alleviation goals.

“Low global interest rates provide only a precarious protection against financial crises,” said World Bank Prospects Group Director Ayhan Kose. “The history of past waves of debt accumulation shows that these waves tend to have unhappy endings. In a fragile global environment, policy improvements are critical to minimize the risks associated with the current debt wave.”

Analytical sections in this edition of Global Economic Prospects address key current topics:

The Fourth Wave: Recent Debt Buildup in Emerging and Developing Economies: There have been four waves of debt accumulation in the last 50 years. The latest wave, which started in 2010, has seen the largest, fastest, and most broad-based increase in debt among the four. While current low levels of interest rates mitigate some of the risks associated with high debt, previous waves of broad-based debt accumulation ended with widespread financial crises. Policy options to reduce the likelihood of crises and lessen their impact should they materialize include building resilient monetary and fiscal frameworks, instituting robust supervisory and regulatory regimes, and following transparent debt management practices.
Fading Promise: How to Rekindle Productivity Growth: Productivity growth, a primary source of income growth and driver of poverty reduction, has slowed more broadly and steeply since the global financial crisis than at any time in four decades. In emerging market and developing economies, the slowdown has reflected weakness in investment and moderating efficiency gains as well as dwindling resource reallocation between sectors. The pace of improvements in many key drivers of labor productivity—including education and institutions—has slowed or stagnated since the global financial crisis.
Price Controls: Good Intentions, Bad Outcomes: The use of price controls is widespread in emerging market and developing economies. While sometimes used as a tool for social policy, price controls can dampen investment and growth, worsen poverty outcomes, cause countries to incur heavy fiscal burdens, and complicate the effective conduct of monetary policy. Replacing price controls with expanded and better-targeted social safety nets, reforms to encourage competition and a sound regulatory environment can be pro-poor and pro-growth.
Low for How Much Longer? Inflation in Low-Income Countries: Inflation in low-income countries has tumbled to a median of 3% in mid-2019 from 25% in 1994. The decline has been supported by more flexible exchange rate regimes, greater central bank independence, lower government debt, and a more benign external environment. However, to maintain low and stable inflation amid mounting fiscal pressures and the risk of exchange rate shocks, policymakers need to strengthen monetary policy frameworks and central bank capacity and replace price controls with more efficient policies.
Regional Outlooks:

East Asia and Pacific: Growth in the region is projected to ease to 5.7% in 2020, reflecting a further moderate slowdown in China to 5.9% this year amid continued domestic and external headwinds, including the lingering impact of trade tensions. Regional growth excluding China is projected to slightly recover to 4.9%, as domestic demand benefits from generally supportive financial conditions amid low inflation and robust capital flows in some countries (Cambodia, the Philippines, Thailand, and Vietnam), and as large public infrastructure projects come onstream (the Philippines and Thailand). Regional growth will also benefit from the reduced global trade policy uncertainty and a moderate, even if still subdued, recovery of global trade. Regional data.

Europe and Central Asia: Regional growth is expected to firm to 2.6% in 2020, assuming stabilization of key commodity prices and Euro Area growth and recovery in Turkey (to 3%) and Russia (to 1.6%). Economies in Central Europe are anticipated to slow to 3.4% as fiscal support wanes and as demographic pressures persist, while countries in Central Asia are projected to grow at a robust pace on the back of structural reform progress. Growth is projected to firm in the Western Balkans to 3.6% — although the aftermath of devastating earthquakes could weigh on the outlook — and decelerate in the South Caucasus to 3.1%. Regional data.

Latin America and the Caribbean: Regional growth is expected to rise to 1.8% in 2020, as growth in the largest economies strengthens and domestic demand picks up at the regional level. In Brazil, more robust investor confidence, together with a gradual easing of lending and labor market conditions, is expected to support an acceleration in growth to 2%. Growth in Mexico is seen rising to 1.2% as less policy uncertainty contributes to a pickup in investment, while Argentina is anticipated to contract by a slower 1.3%. In Colombia, progress on infrastructure projects is forecast to help support a rise in growth to 3.6%. Growth in Central America is projected to firm to 3% thanks to easing credit conditions in Costa Rica and relief from setbacks to construction projects in Panama. Growth in the Caribbean is expected to accelerate to 5.6%, predominantly due to offshore oil production developments in Guyana. Regional data.

Middle East and North Africa: Regional growth is projected to accelerate to a modest 2.4% in 2020, largely on higher investment and stronger business climates. Among oil exporters, growth is expected to pick up to 2%. Infrastructure investment and business climate reforms are seen advancing growth among the Gulf Cooperation Council economies to 2.2%. Iran’s economy is expected to stabilize after a contractionary year as the impact of US sanctions tapers and oil production and exports stabilize, while Algeria’s growth is anticipated to rise to 1.9% as policy uncertainty abates and investment picks up. Growth in oil importers is expected to rise to 4.4%. Higher investment and private consumption are expected to support a rise to 5.8% in FY2020 growth in Egypt. Regional data.

South Asia: Growth in the region is expected to rise to 5.5% in 2020, assuming a modest rebound in domestic demand and as economic activity benefits from policy accommodation in India and Sri Lanka and improved business confidence and support from infrastructure investments in Afghanistan, Bangladesh, and Pakistan. In India, where weakness in credit from non-bank financial companies is expected to linger, growth is projected to slow to 5% in FY 2019/20, which ends March 31 and recover to 5.8% the following fiscal year. In Pakistan’s growth is expected to rise to 3% in the next fiscal year after bottoming out at 2.4% in FY2019/20, which ends June 30. In Bangladesh, growth is expected to ease to 7.2% in FY2019/2020, which ends June 30, and edge up to 7.3% the following fiscal year. Growth in Sri Lanka is forecast to rise to 3.3%. Regional data.

Sub-Saharan Africa: Regional growth is expected to pick up to 2.9% in 2020, assuming investor confidence improves in some large economies, energy bottlenecks ease, a pickup in oil production contributes to recovery in oil exporters and robust growth continues among agricultural commodity exporters. The forecast is weaker than previously expected reflecting softer demand from key trading partners, lower commodity prices, and adverse domestic developments in several countries. In South Africa, growth is expected to pick up to 0.9%, assuming the new administration’s reform agenda gathers pace, policy uncertainty wanes, and investment gradually recovers. Growth in Nigeria expected to edge up to 2.1% as the macroeconomic framework is not conducive to confidence. Growth in Angola is anticipated to accelerate to 1.5%, assuming that ongoing reforms provide greater macroeconomic stability, improve the business environment, and bolster private investment. In the West African Economic and Monetary Union, growth is expected to hold steady at 6.4%. In Kenya, growth is seen edging up to 6%. Regional data.

On Tuesday December 31st Travelex detected a software virus which had compromised some of its services. As previously announced, on discovering the virus, and as a precautionary measure, Travelex immediately took all its systems offline to prevent the spread of the virus further across the network.

Whilst the investigation is still ongoing, Travelex has confirmed that the software virus is ransomware known as Sodinokibi, also commonly referred to as REvil. Travelex has proactively taken steps to contain the spread of the ransomware, which has been successful. To date, the company can confirm that whilst there has been some data encryption, there is no evidence that structured personal customer data has been encrypted. Whist Travelex does not yet have a complete picture of all the data that has been encrypted, there is still no evidence to date that any data has been exfiltrated.

Having completed the containment stage of its remediation process, detailed forensic analysis is fully underway and the company is now also working towards recovery of all systems. To date Travelex has been able to restore a number of internal systems, which are operating normally. The company is working to resume normal operations as quickly as possible and does not currently anticipate any material financial impact for the Finablr Group.

Tony D’Souza, Chief Executive of Travelex, said “Our focus is on communicating directly with our partners and customers to protect them and their information from any further compromise. We take very seriously our responsibility to protect the privacy and security of our partner and customer’s data as well as provide an excellent service to our customers and we sincerely apologise for the inconvenience caused. Travelex continues to offer services to its customers on a manual basis and is continuing to provide alternative customer solutions in the interim. We are working tirelessly to bring our systems back online.”

Travelex is in discussions with the National Crime Agency (NCA) and the Metropolitan Police who are conducting their own criminal investigations, as well as its regulators across the world.

Today, 20 December 2019, the Chancellor has announced that Andrew Bailey will become the new Governor of the Bank of England from 16 March 2020. Her Majesty the Queen has approved the appointment.

In order to provide for a smooth transition, the current Governor, Mark Carney, has agreed to now complete his term on 15 March 2020.

Making the announcement the Chancellor said: “When we launched this process, we said we were looking for a leader of international standing with expertise across monetary, economic and regulatory matters. In Andrew Bailey that is who we have appointed.

Andrew was the stand-out candidate in a competitive field. He is the right person to lead the Bank as we forge a new future outside the EU and level-up opportunity across the country.

I also want to take this opportunity to thank Mark Carney for his service as Governor. The intellect, rigour and leadership he brought to the role during a critical time was a significant contribution to the UK economy moving to recovery and growth.”

Accepting the role, Andrew Bailey said: “It is a tremendous honour to be chosen as Governor of the Bank of England and to have the opportunity to serve the people of the United Kingdom, particularly at such a critical time for the nation as we leave the European Union.

The Bank has a very important job and, as Governor, I will continue the work that Mark Carney has done to ensure that it has the public interest at the heart of everything it does. It is important to me that the Bank continues to work for the public by maintaining monetary and financial stability and ensuring that financial institutions are safe and sound.

I am committed to the Bank being an accessible and approachable institution, as well as an open and diverse place to work.

I would like to pay tribute to my colleagues at the Financial Conduct Authority for their support during my time as Chief Executive and the excellent work they do.”

Mark Carney said: “I am delighted to welcome Andrew Bailey back to the Bank as its next Governor.

An extraordinary public servant, Andrew brings unparalleled experience, built over three decades of dedicated service across all policy areas of the Bank, and most recently as CEO of the FCA.

Andrew is widely and deeply respected for his leadership managing the financial crisis, developing the new regulatory frameworks, and supporting financial innovation to better serve UK households and businesses.

Over the years, I benefited greatly from his support and wise counsel. I wish Andrew and the Bank continued success in their work to serve the people of the United Kingdom by maintaining monetary and financial stability.”

Accion Chicago (Accion) and Local Initiatives Support Corporation (LISC)—the Entrepreneurs of Color Fund’s nonprofit partners in Chicago—today announced $3.6 million in new investments from six leading institutions: First Midwest Bank, U.S. Bank, The Coleman Foundation, McCormick Foundation, The Chicago Community Trust and Providence Bank & Trust. The new investments, which will be paired with business coaching and mentorship for small businesses, bring the total funding committed to the Entrepreneurs of Color Fund to over $9 million to support minority entrepreneurs on Chicago’s South and West sides.

The Entrepreneurs of Color Fund supports the work of nonprofit lenders Accion and LISC to provide capital to minority-owned small businesses and stimulate economic growth by boosting commercial activity and helping create jobs on the South and West sides. The initiative was launched in July 2018 with initial financial support from JPMorgan Chase and Fifth Third Bank.

“Small businesses are the backbone of our city’s economy, providing needed jobs, services, and opportunity to our families and residents in every neighborhood across Chicago,” said Mayor Lori E. Lightfoot. “The Entrepreneurs of Color Fund plays a critical role in driving small business growth in our communities, particularly those that have experienced generational disinvestment, and we are grateful to these newest funders for stepping up and doing their part as we expand access to capital, develop entrepreneurial skills, and truly unlock our city’s potential as a beacon of hope and opportunity for all.”

Small businesses are key drivers of growth, and that growth is fastest among minority and women entrepreneurs. In Chicago, small businesses employ more than 1 million people. Research shows it would require only a 9 percent increase in small business jobs, or less than one job per existing small business, to eliminate unemployment in Chicago’s low-income neighborhoods.

However, the financial resilience of small businesses varies across Chicago’s neighborhoods. The JPMorgan Chase Institute found that small businesses in many South and West Side neighborhoods have more limited cash reserves than their counterparts on the North side. For example, small businesses in Englewood are operating with less than a week of cash reserves in their deposit accounts compared to 17 days for small businesses in Buena Park—three times the cash liquidity of their Englewood peers.

“A key tenet of LISC Chicago’s economic development strategy is that power and wealth comes through ownership. Investing in local businesses and entrepreneurship is essential to creating community wealth and power and, is integral to supporting the communities we serve,” said Meghan Harte, Executive Director of LISC Chicago. “We are proud to be a partner of the Entrepreneurs of Color Fund and look forward to continuing working together to support minority-owned small business owners on the south and west sides.”

In its first year of operations in Chicago, the initiative has made over 130 loans totaling more than $1.7 million and resulting in nearly 400 new or preserved jobs. Fifty-three percent of the loans support minority women-owned businesses.

The new investments will enable the Entrepreneurs of Color Fund to build on insights gained during its first year to provide more minority entrepreneurs in Chicago with critical access to capital, coaching and other resources needed to support their small businesses.

“Chicago’s neglected neighborhoods need more jobs. Small business owners can create those jobs if they receive the loans and coaching they need to build their businesses,” said Brad McConnell, CEO of Accion Chicago. “That’s what Accion does, and that’s what this partnership is about.”

One of the small businesses that received a loan with support from the Entrepreneurs of Color Fund is Urban Roots, Inc., launched and managed by Jimmie and Tiffany Williams. The landscaping company serves residential, commercial and industrial properties across Chicago and helps to train people with criminal backgrounds with the skills that they need to connect with jobs after incarceration.

“The Entrepreneurs of Color Fund gave us the opportunity to grow and expand our business,” said Jimmie Williams, Entrepreneurs of Color Fund loan recipient and owner of Urban Roots, Inc. “Now, we can continue to offer our services across Chicago, help create more jobs in our neighborhood and give back to our community.”

A History of Impact
The Entrepreneurs of Color Fund was first launched in Detroit in 2015 by JPMorgan Chase, along with W.K. Kellogg Foundation and Detroit Development Fund, to provide minority-owned small businesses with access to capital and technical assistance. The fund has since tripled in Detroit to $22 million. In addition, the Entrepreneurs of Color Fund has expanded to San Francisco, the South Bronx, the Greater Washington region and Chicago as part of JPMorgan Chase’s $40 million, three-year commitment to the South and West sides of the city.

“Small business growth is key to creating economic opportunity for more people on the South and West sides,” said Charlie Corrigan, Head of Midwest Philanthropy at JPMorgan Chase. “At JPMorgan Chase, we are pleased to see businesses, nonprofits and political leaders come together to help minority entrepreneurs get a fair shot at achieving their dreams.”

Eligible entrepreneurs can run new or existing businesses, allowing more businesses to stay local and invest in their neighborhoods. These entrepreneurs are typically unable to qualify for traditional loans, often due to previous credit challenges, limited financial collateral, short business history or informal business practices.

Entrepreneurs seeking small business loans or coaching are encouraged to contact Accion at 312-275-3000 or LISC at 312-422-9550.

About Accion Chicago
Accion helps neighborhood entrepreneurs grow by providing the capital, coaching, and connections small business owners need to create wealth and jobs throughout Illinois and Indiana. By partnering with entrepreneurs, Accion offers the most cost-effective way to invest in underserved communities. Accion offers small business loans between $500 and $100,000 to qualified borrowers and provides free coaching to any entrepreneur who wants to grow their business. Learn more at us.accion.org/chicago.

About LISC
With residents and partners, LISC forges resilient and inclusive communities of opportunity across America—great places to live, work, visit, do business and raise families. Since 1979, LISC has invested $18.6 billion to build or rehab 376,000 affordable homes and apartments and develop 63 million square feet of retail, community and educational space. To learn more, visit www.lisc.org.

About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.7 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

About Fifth Third
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio and the indirect parent company of Fifth Third Bank, an Ohio-chartered bank. As of June 30, 2019, Fifth Third had $169 billion in assets and operated 1,207 full-service Banking Centers and 2,551 ATMs with Fifth Third branding in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina. In total, Fifth Third provides its customers with access to approximately 53,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending and Wealth & Asset Management. Investor information and press releases can be viewed at www.53.com. Member FDIC.

Indianapolis, IN – JPMorgan Chase & Co. is committing $1.5 million over two years to help the National Urban League launch their new Financial Savings Initiative, a program that will help black households build savings and meet their long-term financial goals. The announcement is being made at the National Urban League Annual Conference in Indianapolis.

Through tailored fintech tools and coaching, the initiative aims to enable more black households will be able to save for the future and achieve goals like homeownership, small business formation and expansion, and investing for retirement and college.

More than half of Americans struggle financially, experiencing high amounts of debt, irregular income and lack of savings. Research from JPMorgan Chase and Morning Consult found that 52 percent of Americans do not have enough money saved or on hand for a $500 emergency.

“Closing the racial wealth gap is a key objective of the National Urban League, and we’re proud to partner with JPMorgan Chase & Co. on achieving that goal,” National Urban League President and CEO Marc H. Morial said. “Through our network of 90 affiliates in 36 states and the District of Columbia, we can reach the people most in need of these financial tools and fulfill our mission of empowering communities and changing lives.”

As part of the initiative, the National Urban League will select 10 Urban League affiliates from around the country to integrate financial technology tools into their financial coaching programs.

The program will include tools that are being identified, tested and scaled by JPMorgan Chase as part of the firm’s $125 million, five-year investment in financial health and specifically, through the Financial Solutions Lab. Managed by the Financial Health Network in collaboration with JPMorgan Chase, the Financial Solutions Lab supports promising fintech innovations that can help people in the U.S. increase savings, improve credit and build assets. Financial Solutions Lab innovations have led to more than $1 billion in savings for U.S. residents to date.

“Financial health is an important element in building strong and resilient households, communities and economies,” said Sekou Kaalund, Head of Advancing Black Pathways for JPMorgan Chase. “Too many black Americans lack access to the tools and coaching they need to save for the future. With initiatives like this one, more people can share in the rewards of a growing economy.”

Over the last five years, JPMorgan Chase committed over $100 million to 250 nonprofit organizations and research institutions across the world, helping 7 million people improve their financial health and save more than $1 billion.

About the National Urban League
The National Urban League is a historic civil rights organization dedicated to economic empowerment in order to elevate the standard of living in historically underserved urban communities. The National Urban League spearheads the efforts of its 90 local affiliates through the development of programs, public policy research and advocacy, providing direct services that impact and improve the lives of more than 2 million people annually nationwide. Visit www.nul.org and follow us on Twitter and Instagram: @NatUrbanLeague.

About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.7 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

As of June 2019, the deals approved under the Juncker Plan amount to €75 billion in financing and are located in all 28 Member States. Some 952,000 start-ups and small and medium-sized businesses (SMEs) are expected to benefit from improved access to finance.

Currently, the top five countries ranked in order of investment triggered relative to GDP are Greece, Estonia, Bulgaria, Portugal and Latvia.

The EIB has approved €55.2 billion worth of finance for infrastructure and innovation projects, which should generate €252.5 billion of additional investments, while the European Investment Fund (EIF), which is part of the EIB Group, has approved €19.8 billion worth of agreements with intermediary banks and funds to finance SMEs, which are expected to generate €155.9 billion of additional investments.

Updated country-specific factsheets with brand new case studies are available on our website.

European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: “With these latest figures we have reached a new milestone, surpassing €400 billion in investment mobilised across the EU. This is a huge achievement and shows that by using a small amount of the EU budget as a guarantee, you can attract private investment for the public good. We are on track to reach our goal of €500 billion by the end of 2020, and the Commission will continue to mobilise investments under the InvestEU Programme from 2021 onwards.”

Based on the projects approved until July 2018, the Commission and the EIB estimate that the Juncker Plan has already supported 750,000 jobs and increased EU GDP by 0.6%. By 2020, the Juncker Plan is set to create 1.4 million jobs and increase EU GDP by 1.3%.

Background

The Investment Plan for Europe – the Juncker Plan – focuses on strengthening European investments to create jobs and growth. It does so by making smarter use of new and existing financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects. The European Fund for Strategic Investments (EFSI) is the central pillar of the Juncker Plan. It provides a first loss guarantee, allowing the EIB to invest in more, often riskier, projects.

On 6 June 2018, the Commission proposed for the next long-term EU budget 2021-2027, to create the InvestEU Programme, bringing EU budget financing in the form of loans and guarantees under one roof. The new programme will consist of the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. After negotiations with the Member States, on 18 April the European Parliament gave its green light to the InvestEU Programme.

Today we’re sharing plans for Calibra, a newly formed Facebook subsidiary whose goal is to provide financial services that will let people access and participate in the Libra network. The first product Calibra will introduce is a digital wallet for Libra, a new global currency powered by blockchain technology. The wallet will be available in Messenger, WhatsApp and as a standalone app — and we expect to launch in 2020.

If you have an internet connection today, you can access all kinds of useful services for little to no cost — whether you’re trying to keep in touch with family and friends, learn new things or even start a business. But when it comes to saving, sending and spending money, it’s not that simple.

For many people around the world, even basic financial services are still out of reach: almost half of the adults in the world don’t have an active bank account and those numbers are worse in developing countries and even worse for women. The cost of that exclusion is high — approximately 70% of small businesses in developing countries lack access to credit and $25 billion is lost by migrants every year through remittance fees.

This is the challenge we’re hoping to address with Calibra, a new digital wallet that you’ll be able to use to save, send and spend Libra.

From the beginning, Calibra will let you send Libra to almost anyone with a smartphone, as easily and instantly as you might send a text message and at low to no cost. And, in time, we hope to offer additional services for people and businesses, like paying bills with the push of a button, buying a cup of coffee with the scan of a code or riding your local public transit without needing to carry cash or a metro pass.

Here’s a sneak peek at what the experience of using Calibra will be like:

When it launches, Calibra will have strong protections in place to keep your money and your information safe. We’ll be using all the same verification and anti-fraud processes that banks and credit cards use, and we’ll have automated systems that will proactively monitor activity to detect and prevent fraudulent behavior. We’ll also offer dedicated live support to help if you lose your phone or your password — and if someone fraudulently gains access to your account and you lose some Libra as a result, we’ll offer you a refund.

We’ll also take steps to protect your privacy. Aside from limited cases, Calibra will not share account information or financial data with Facebook or any third party without customer consent. This means Calibra customers’ account information and financial data will not be used to improve ad targeting on the Facebook family of products. The limited cases where this data may be shared reflect our need to keep people safe, comply with the law and provide basic functionality to the people who use Calibra. Calibra will use Facebook data to comply with the law, secure customers’ accounts, mitigate risk and prevent criminal activity. You can read more about our commitments to privacy and consumer protection here.

We’re still early in the process of developing Calibra. Along the way we’ll be consulting with a wide range of experts to make sure we can deliver a product that is safe, private and easy to use for everyone. But we’re excited to share this early glimpse and we’ll share updates along the way. In the meantime, if you’d like to be among the first to know when Calibra is available, you can sign up here.

JACKSONVILLE, Fla. and CINCINNATI, March 18, 2019 – FIS™ (NYSE: FIS), a global leader in financial services technology, and Worldpay, Inc. (NYSE: WP; LSE: WPY), a global leader in eCommerce and payments, announce that they have entered into a definitive merger agreement. This combination greatly expands FIS’ capabilities by enhancing its acquiring and payment offerings and significantly increases Worldpay’s distribution footprint, accelerating its entry into new geographies. Upon closing, the combined company will be positioned to offer best-in-class enterprise banking, payments, capital markets, and global eCommerce capabilities empowering financial institutions and businesses worldwide.

At the closing, under the terms of the agreement, Worldpay shareholders will be entitled to receive 0.9287 FIS shares and $11.00 in cash for each share of Worldpay. Upon closing, FIS shareholders will own approximately 53 percent and Worldpay shareholders will own approximately 47 percent of the combined company. The combination of stock and cash values Worldpay at an enterprise value of approximately $43 billion, including the assumption of Worldpay debt, which FIS expects to refinance.

FIS and Worldpay have complementary solutions and services encompassing financial institution issuer services, network and merchant services including global leadership in eCommerce, as well as loyalty and fraud solutions benefiting consumers and businesses. Clients will benefit from the combined omni- channel payment and multi-currency capabilities, robust risk and fraud solutions and advanced data analytics.

Organizations of all types and sizes are looking for new ways to create more meaningful and frictionless experiences and grow their share of wallet through digital channels. The combination of FIS and Worldpay, two companies that are leading their respective markets in modernization investments, provides clients of both organizations access to a wider portfolio of digital assets to accelerate their revenue growth, streamline their operations and create a better engagement with their customers.

“Scale matters in our rapidly changing industry,” stated Gary Norcross, chairman, president and chief executive officer, FIS. “Upon closing later this year, our two powerhouse organizations will combine forces to offer a customer-driven combination of scale, global presence and the industry’s broadest range of global financial solutions. As a combined organization, we will bring the most modern solutions targeted at the highest growth markets. The long-term value we will create for clients and for shareholders will set the bar in our industry and will create a range of new career opportunities for our employees. I have never been more excited about the future of FIS.”

As an industry leading global merchant acquirer, Worldpay is one of the world’s top payment technology companies powering global omni-commerce and providing solutions for merchants, businesses and financial institutions on a global basis. It processes over 40 billion transactions annually, supporting more than 300 payment types across more than 120 currencies.

“At Worldpay, our focus has always been on delivering more value to our clients and partners and making decisions that achieve our growth and performance objectives. Combining with FIS helps us accelerate the achievement of that, now benefitting from new scale and capabilities that will truly differentiate the company globally,” said Charles Drucker, executive chairman and chief executive officer, Worldpay. “We are proud to become part of one of the financial services industry’s most respected and consistently performing companies, and I am excited about the new opportunities this brings both for the business and our colleagues worldwide.”

Strategic and Financial Rationale
· Global Growth Leader at Scale
The combination of industry leading technology platforms and global distribution channels serving high-growth secular markets will immediately accelerate the revenue growth profile of FIS and offer a best-in-class solution suite to our clients. Additionally, the combination will create meaningful revenue growth opportunities across the merchant and banking ecosystems.

· Significant Value Creation
Organic revenue growth outlook of 6 percent to 9 percent through 2021, in conjunction with $700 million of total EBITDA synergies from the combination of revenue and expense opportunities over the next three years.

· Enhanced Financial Profile
The combined company will have pro forma 2018 annual revenue and adjusted EBITDA of approximately $12.3 billion and $4.9 billion, respectively. FIS anticipates retaining its investment grade credit ratings of Baa2 / BBB, reducing leverage to approximately 2.7x in 12 to 18 months and continuing to grow its dividend supported by robust free cash flow.

· Experienced Management Team
Both management teams have a proven track record of innovation leadership, superior integration, and exceeding synergy plan targets to drive transformational value to clients and shareholders. This combination leverages expertise within the banking and payment industry.’

Governance and Timing
Upon closing, the combined company’s Board of Directors will consist of 12 members, seven of which will come from FIS’ Board of Directors and five of which will come from Worldpay’s Board of Directors. Gary Norcross will remain as FIS Chairman of the Board, President and Chief Executive Officer. Charles Drucker, Worldpay’s current Executive Chairman and CEO, will serve as the Executive Vice Chairman of the Board.

The combined company will retain the name FIS and will be headquartered in Jacksonville, Fla.

The transaction is subject to receipt of required regulatory and shareholder approvals and other customary closing conditions and is expected to close in the second half of 2019.

Centerview Partners LLC and Goldman Sachs & Co. acted as financial advisors to FIS. Willkie Farr & Gallagher LLP served as FIS’ legal advisor in the transaction. Credit Suisse acted as financial advisor to Worldpay. Skadden, Arps, Slate, Meagher & Flom LLP served as Worldpay’s legal advisor in the transaction.

About FIS
FIS is a global leader in financial services technology, providing solutions and services to clients in the retail and institutional banking, payments, capital markets, asset management and wealth and retirement markets. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves clients in over 130 countries. Headquartered in Jacksonville, Florida, FIS employs more than 47,000 people worldwide and holds leadership positions in payment processing, financial software and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of the Standard & Poor’s 500® Index. For more information about FIS, visit https://www.fisglobal.com/.
Follow FIS on Facebook (facebook.com/FIStoday), LinkedIn (linkedin.com/company/fis) and Twitter (@FISGlobal).

About Worldpay
Worldpay is a leading payments technology company with unique capability to power global omni- commerce. With an integrated technology platform, Worldpay offers a comprehensive suite of products and services, delivered globally through a single provider. Worldpay processes over 40 billion transactions annually, supporting more than 300 payment types across 146 countries and 126 currencies. Worldpay is focused on expanding into high-growth markets and customer segments, including global eCommerce, integrated payments and B2B. Visit us at https://www.worldpay.com.

Standard Chartered continues its discussions relating to the potential resolution of the previously disclosed investigation by the US authorities relating to historical violations of US sanctions laws and regulations.

Standard Chartered has received a decision notice from the UK Financial Conduct Authority’s Regulatory Decisions Committee (RDC) relating to the previously disclosed investigation by the
Financial Conduct Authority concerning the group’s historical financial crime controls, and is considering its options in relation to this decision notice. The decision notice imposes a penalty of £102,163,200 (net of a 30% early settlement discount) on the group.

Standard Chartered’s 2018 fourth quarter results will include a provision totalling USD900 million for potential penalties relating to the above US investigation and FCA decision, and for previously disclosed investigations relating to FX trading issues, including the January 2019 settlement announced last month. This provision reflects management’s current view of the appropriate level of provision. Resolution of the US investigation and of the FCA process might ultimately result in a different level of penalties.

Standard Chartered will be releasing its 2018 full year results on 26 February 2019. This announcement contains inside information and is issued pursuant to Part XIVA of the Securities
and Futures Ordinance and Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

By Order of the Board
Elizabeth Lloyd, CBE
Group Company Secretary

Washington, D.C. – JPMorgan Chase today announced Advancing Black Pathways (ABP) to build on the firm’s existing efforts helping black Americans achieve economic success. As part of this, the firm is expanding its Entrepreneurs of Color Fund model to Greater Washington, D.C., providing capital and business training to underserved minority entrepreneurs in the region.

“Making the economy work for more people is not only a moral obligation – it is a business imperative,” said Jamie Dimon, Chairman and Chief Executive Officer of JPMorgan Chase. “We are expanding our existing commitment to help create economic opportunity for more black families, businesses, employees, and communities.”

Economic opportunity is out of reach for many black Americans, who lack access to resources that can help put them on a path to great careers, build wealth, grow a business, and participate in the benefits of a growing economy.

“We know that when we bring the full power of our firm to our branches, customers and communities, we can make a significant positive impact,” said Thasunda Duckett, CEO of JPMorgan Chase’s Consumer Bank and the ABP executive sponsor. “I’m so proud to play a role in Advancing Black Pathways which will provide more opportunities for black Americans to build wealth.”

ABP, which will continue to roll out new programs in the coming months, combines the firm’s business and philanthropic resources to accelerate economic opportunity for black Americans in three ways:

Strengthen Education and Job Training: Improve education and job readiness for black students. This includes a commitment to hire more than 4,000 black students over the next five years in roles including college and high school internships and apprenticeships. Additionally, the firm will expand partnerships with Historically Black Colleges and Universities and other non-profit organizations to recruit talent and support the professional development and financial health of black students.

Grow Careers: Promote a culture where all employees are treated fairly, with respect, and have access to career opportunities. The firm will build on the success of its Advancing Black Leaders recruitment program by expanding career leadership pathways for black talent, including its Director Advisory Service to help develop and recommend more black executives for clients’ Boards of Directors.

Build Wealth: Help strengthen the financial wellness of black families. With unique insights into the financial needs of Americans, JPMorgan Chase and ABP will develop strategic partnerships to improve black Americans’ financial health, including in its branches, by helping to build savings, improving credit, providing homebuyer counseling, and helping black-owned small businesses access capital. To start, the firm will expand the Entrepreneurs of Color Fund to the Greater Washington region.
Expanding Opportunity and Promoting Diversity
ABP builds on existing JPMorgan Chase programs to expand opportunity and promote diversity.

The Fellowship Initiative (TFI) provides intensive academic and leadership training to help young men of color from economically-distressed communities complete their high school educations and better prepare them to excel in colleges and universities.
140 students have completed the program in Chicago, Dallas, Los Angeles and New York
100 percent high school graduation and college acceptance to date
$30 million in scholarships and aid provided
Advancing Black Leaders expands the firm’s recruitment of black Americans while also promoting leadership excellence and retention. Since 2016, JPMorgan Chase has increased the number of black Managing Directors by 41 percent and black Executive Directors by 53 percent.
Entrepreneurs of Color Fund expands access to capital for minority entrepreneurs. Launched in Detroit in 2015, the program has since expanded to Chicago, San Francisco and the South Bronx. To date, more than $17 million from JPMorgan Chase has attracted another $22 million in external capital for these local funds and helped create or preserve 1,250 jobs at minority-owned small businesses.
Expanding Entrepreneurs of Color Fund to Greater Washington
The opportunity to drive economic growth by investing in black families and businesses is real. Nielsen found black consumers have $1.2 trillion in buying power. According to Global Policy Solutions, if people of color owned businesses at the same rates as white entrepreneurs, it would result in 9 million more jobs and $300 billion in worker income. According to the Association for Enterprise Opportunity, if black-owned businesses could reach employment parity with all firms, they would create nearly 600,000 new jobs and put black job-seekers at full employment.

JPMorgan Chase is expanding its Entrepreneurs of Color Fund to the Greater Washington region, seeding the loan fund with a commitment of $3.65 million, alongside a $2 million commitment from Capital Impact Partners and a $1 million investment from the A. James & Alice B. Clark Foundation, for a total of $6.65 million. This effort builds on existing Entrepreneurs of Color Funds in Detroit, Chicago, San Francisco and the South Bronx.

“Investing in minority-owned businesses is one of the most effective ways we can drive job growth and economic opportunity in the region,” said Peter Scher, Head of Corporate Responsibility and Chairman of the Mid-Atlantic Region for JPMorgan Chase. “The Greater Washington region is thriving, but opportunity is not shared equally. With the Entrepreneurs of Color Fund, we are bringing a proven model that expands access to capital across our region and will help ensure that more people have a chance to participate in our growing economy.”

The Fund will provide capital and other resources to local minority entrepreneurs in the region, from northern Virginia to Baltimore. Additionally, JPMorgan Chase has formed strategic partnerships with national and local funders including the Annie E. Casey Foundation and the Baltimore Community Foundation to complement various small business and impact investing initiatives occurring throughout the region aimed at boosting local economic activity and job creation. According to the Initiative for a Competitive Inner City, Washington D.C.’s small businesses, collectively, could significantly reduce unemployment in the city by hiring just one additional person per business.

“Together, by expanding access to capital and supporting our local entrepreneurs, we’re giving more Washingtonians a fair shot,” said Washington, D.C. Mayor Muriel Bowser. “Small and local businesses are not only the backbone of our economy, they are also an opportunity for our residents to participate in D.C.’s prosperity. By expanding the Entrepreneurs of Color Fund to Washington, D.C., JPMorgan Chase will support the local work we are doing to create pathways to the middle class for residents across all eight wards.”

The program will pair low-cost capital with business advisory services, including networking support and business coaching, to support diverse entrepreneurs and drive business growth.

Preserving and growing minority-owned businesses in commercial corridors: Working with the Latino Economic Development Center (LEDC) and the Washington Area Community Investment Fund (Wacif), the Fund will:
Provide capital to update and invest in the storefronts, inventory, and service delivery systems, as well as technical assistance for minority-owned small businesses along commercial corridors in Washington, D.C.’s Wards 7 and 8;
Support the preservation of long-standing minority-owned small businesses in commercial corridors to mitigate the impact of large-scale infrastructure projects.
Additionally, the Harbor Bank of Maryland will lead efforts to provide low-cost loans and business support to minority businesses in Baltimore and Prince George’s County.

Cultivating a new generation of minority housing developers: Replicating the success of the Equitable Development Initiative in Detroit, the Entrepreneurs of Color Fund will work with Capital Impact Partners to provide tailored low-cost capital to support minority housing developers in the region.
Streamlining anchor institution procurement: Similar to the San Francisco Entrepreneurs of Color Fund, which taps into supplier diversity pipelines to the Chase Center, the fund will work with the Wacif and the Coalition for Nonprofit Housing and Economic Development to offer the capital and advice needed for more local minority-owned businesses to scale and secure contracts from Washington-region anchor institutions, which have committed to purchasing more than $2 billion in supplies and services from diverse businesses in the region.
Leveraging Expertise
Sekou Kaalund will lead Advancing Black Pathways, reporting to executive sponsor Thasunda Duckett. JPMorgan Chase has also established an External Advisory Council to offer unique expertise and inform ABP’s approach to driving inclusive growth in communities. The Council consists of the following civic and business leaders:

James Bell, Board Director at JPMorgan Chase, Dow Chemical, Chicago Urban League, World Business Chicago and Apple
Maverick Carter, Business Manager for LeBron James and CEO of SpringHill Entertainment and UNINTERRUPTED
Richelieu Dennis, Founder of Sundial Brands, Essence Ventures and Owner of Essence Communications
Kevin Hart, Actor, Comedian and CEO of Hartbeat/LOL Network
Mellody Hobson, President of Ariel Investments, Head of the Economic Club of Chicago and Board Director at JPMorgan Chase, Starbucks and Estee Lauder
Andrea Hoffman, Founder and CEO of Culture Shift Labs
Marc Morial, CEO of the National Urban League and former Mayor of New Orleans
Soledad O’Brien, Chairwoman of Starfish Media Group and broadcast journalist
Secretary Colin Powell, former U.S. Secretary of State and US Army General (Ret.)
James Rhee, Ashley Stewart CEO, Founder and President of FirePine Group
Secretary Condoleezza Rice, former U.S. Secretary of State, former National Security Advisor and professor at Stanford Graduate School of Business
Michael Sorrell, President of Paul Quinn College

Click for more information about Advancing Black Pathways.

Click for more information about the Entrepreneurs of Color Fund.

About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

The global expansion has weakened. Global growth for 2018 is estimated at 3.7 percent, as in the October 2018 World Economic Outlook (WEO) forecast, despite weaker performance in some economies, notably Europe and Asia. The global economy is projected to grow at 3.5 percent in 2019 and 3.6 percent in 2020, 0.2 and 0.1 percentage point below last October’s projections.
The global growth forecast for 2019 and 2020 had already been revised downward in the last WEO, partly because of the negative effects of tariff increases enacted in the United States and China earlier that year. The further downward revision since October in part reflects carry over from softer momentum in the second half of 2018—including in Germany following the introduction of new automobile fuel emission standards and in Italy where concerns about sovereign and financial risks have weighed on domestic demand—but also weakening financial market sentiment as well as a contraction in Turkey now projected to be deeper than anticipated.
Risks to global growth tilt to the downside. An escalation of trade tensions beyond those already incorporated in the forecast remains a key source of risk to the outlook. Financial conditions have already tightened since the fall. A range of triggers beyond escalating trade tensions could spark a further deterioration in risk sentiment with adverse growth implications, especially given the high levels of public and private debt. These potential triggers include a “no-deal” withdrawal of the United Kingdom from the European Union and a greater-than-envisaged slowdown in China.
The main shared policy priority is for countries to resolve cooperatively and quickly their trade disagreements and the resulting policy uncertainty, rather than raising harmful barriers further and destabilizing an already slowing global economy. Across all economies, measures to boost potential output growth, enhance inclusiveness, and strengthen fiscal and financial buffers in an environment of high debt burdens and tighter financial conditions are imperatives.
Softening Momentum, High Uncertainty

The global economy continues to expand, but third-quarter growth has disappointed in some economies. Idiosyncratic factors (new fuel emission standards in Germany, natural disasters in Japan) weighed on activity in large economies. But these developments occurred against a backdrop of weakening financial market sentiment, trade policy uncertainty, and concerns about China’s outlook. While the December 1 announcement that tariff hikes have been put on hold for 90 days in the US-China trade dispute is welcome, the possibility of tensions resurfacing in the spring casts a shadow over global economic prospects.

High-frequency data signal subdued momentum in the fourth quarter. Outside the United States, industrial production has decelerated, particularly of capital goods. Global trade growth has slowed to well below 2017 averages. The true underlying impetus could be even weaker than the data indicate, as the headline numbers may have been lifted by import front-loading ahead of tariff hikes, as well as by an uptick in tech exports with the launch of new products. Consistent with this interpretation, purchasing managers’ indices, notably in the category of new orders, point to less buoyant expectations of future activity.

Commodities and inflation. Crude oil prices have been volatile since August, reflecting supply influences, including US policy on Iranian oil exports and, more recently, fears of softening global demand. As of early January, crude oil prices stood at around $55 a barrel, and markets expected prices to remain broadly at that level over the next 4–5 years. Prices of metals and agricultural commodities have softened slightly since August, in part due to subdued demand from China. Consumer price inflation has generally remained contained in recent months in advanced economies but has inched up in the United States, where above-trend growth continues. Among emerging market economies, inflationary pressures are easing with the drop in oil prices. For some, this easing has been partially offset by the passthrough of currency depreciations to domestic prices.

Financial conditions in advanced economies have tightened since the fall. Equity valuations—which were stretched in some countries—have been pared back with diminished optimism about earnings prospects amid escalating trade tensions and expectations of slower global growth. Concerns over a US government shutdown further weighed on financial sector sentiment toward year-end. Major central banks also appear to be adopting a more cautious approach. While the US Federal Reserve raised the target range for the federal funds rate to 2.25–2.50 percent in December, it signaled a more gradual pace of rate hikes in 2019 and 2020. In line with earlier communication, the European Central Bank ended its net asset purchases in December. However, it also confirmed that monetary policy would remain amply accommodative, with no increase in policy rates until at least summer 2019, and full reinvestment of maturing securities continuing well past the first rate hike. Increasing risk aversion, together with deteriorating sentiment about growth prospects and shifts in policy expectations, have contributed to a drop in sovereign yields—notably for US Treasuries, German bunds, and UK gilts. Among euro area economies, Italian sovereign spreads have declined from their peak in mid-October on a resolution of the budget standoff with the European Commission, but remain elevated at 270 basis points as of January 7. Spreads for other euro area economies have remained largely unchanged over this period. Beyond sovereign securities, credit spreads widened for US corporate bonds, reflecting lessened optimism and energy sector concerns owing to lower oil prices.

Financial conditions in emerging markets have tightened modestly since the fall, with notable differentiation based on country-specific factors. Emerging market equity indices have sold off over this period, in a context of rising trade tensions and higher risk aversion. Concerns about inflationary effects from earlier oil price increases and, in some cases, closing output gaps or passthrough from currency depreciation have led central banks in many emerging market economies (Chile, Indonesia, Mexico, Philippines, Russia, South Africa, Thailand) to raise policy rates since the fall. By contrast, central banks in China and India maintained policy rates on hold and acted to ease domestic funding conditions (by lowering reserve requirements for banks and providing liquidity to non-bank financial companies, respectively). As of early January, with some notable exceptions (e.g., Mexico, Pakistan), emerging market governments generally face lower domestic-currency long-term yields than in August-September. Foreign-currency sovereign credit spreads have edged up for most countries and risen substantially for some frontier markets.

Capital flows and exchange rates. With investors generally lowering exposure to riskier assets, emerging market economies experienced net capital outflows in the third quarter of 2018. As of early January, the US dollar remains broadly unchanged in real effective terms relative to September, the euro has weakened by about 2 percent amid slower growth and concerns about Italy, and the pound has depreciated about 2 percent as Brexit-related uncertainty increased. In contrast, the Japanese yen has appreciated by about 3 percent, on higher risk aversion. Several emerging market currencies—including the Turkish lira, the Argentine peso, the Brazilian real, the South African rand, the Indian rupee, and the Indonesian rupiah—have staged recoveries from their 2018 valuation lows last August-September.

Forecast Assumptions

The assumptions about tariffs, policy stances, and financial conditions underpinning the forecast are broadly similar to those in the last WEO.

The baseline forecast incorporates the US tariffs announced through September 2018 and retaliatory measures. For the United States, these include tariffs on solar panels, washing machines, aluminum, and steel announced in the first half of 2018; a 25 percent tariff on $50 billion worth of imports from China, and a 10 percent tariff on an additional $200 billion of imports from China, with the latter rising to 25 percent after the current 90-day “truce” ends on March 1, 2019. For China, the forecast incorporates tariffs ranging from 5 to 10 percent on $60 billion of imports from the United States.[1]

Average oil prices are projected at just below $60 per barrel in 2019 and 2020 (down from about $69 and $66, respectively, in the last WEO). Metals prices are expected to decrease 7.4 percent year-over-year in 2019 (a deeper decline than anticipated last October), and to remain roughly unchanged in 2020. Price forecasts for most major agricultural commodities have been revised modestly downwards.

Global Growth to Slow in 2019

Global growth in 2018 is estimated to be 3.7 percent, as it was last fall, but signs of a slowdown in the second half of 2018 have led to downward revisions for several economies.

Weakness in the second half of 2018 will carry over to coming quarters, with global growth projected to decline to 3.5 percent in 2019 before picking up slightly to 3.6 percent in 2020 (0.2 percentage point and 0.1 percentage point lower, respectively, than in the previous WEO). This growth pattern reflects a persistent decline in the growth rate of advanced economies from above-trend levels—occurring more rapidly than previously anticipated—together with a temporary decline in the growth rate for emerging market and developing economies in 2019, reflecting contractions in Argentina and Turkey, as well as the impact of trade actions on China and other Asian economies.

Specifically, growth in advanced economies is projected to slow from an estimated 2.3 percent in 2018 to 2.0 percent in 2019 and 1.7 percent in 2020. This estimated growth rate for 2018 and the projection for 2019 are 0.1 percentage point lower than in the October 2018 WEO, mostly due to downward revisions for the euro area.

Growth in the euro area is set to moderate from 1.8 percent in 2018 to 1.6 percent in 2019 (0.3 lower than projected last fall) and 1.7 percent in 2020. Growth rates have been marked down for many economies, notably Germany (due to soft private consumption, weak industrial production following the introduction of revised auto emission standards, and subdued foreign demand); Italy (due to weak domestic demand and higher borrowing costs as sovereign yields remain elevated); and France (due to the negative impact of street protests and industrial action).
There is substantial uncertainty around the baseline projection of about 1.5 percent growth in the United Kingdom in 2019-20. The unchanged projection relative to the October 2018 WEO reflects the offsetting negative effect of prolonged uncertainty about the Brexit outcome and the positive impact from fiscal stimulus announced in the 2019 budget. This baseline projection assumes that a Brexit deal is reached in 2019 and that the UK transitions gradually to the new regime. However, as of mid-January, the shape that Brexit will ultimately take remains highly uncertain.
The growth forecast for the United States also remains unchanged. Growth is expected to decline to 2.5 percent in 2019 and soften further to 1.8 percent in 2020 with the unwinding of fiscal stimulus and as the federal funds rate temporarily overshoots the neutral rate of interest. Nevertheless, the projected pace of expansion is above the US economy’s estimated potential growth rate in both years. Strong domestic demand growth will support rising imports and contribute to a widening of the US current account deficit.
Japan’s economy is set to grow by 1.1 percent in 2019 (0.2 percentage point higher than in the October WEO). This revision mainly reflects additional fiscal support to the economy this year, including measures to mitigate the effects of the planned consumption tax rate increase in October 2019. Growth is projected to moderate to 0.5 percent in 2020 (0.2 percentage point higher than in the October 2018 WEO) following the implementation of the mitigating measures.
For the emerging market and developing economy group, growth is expected to tick down to 4.5 percent in 2019 (from 4.6 percent in 2018), before improving to 4.9 percent in 2020. The projection for 2019 is 0.2 percentage point lower than in the October 2018 WEO.

Growth in emerging and developing Asia will dip from 6.5 percent in 2018 to 6.3 percent in 2019 and 6.4 percent in 2020. Despite fiscal stimulus that offsets some of the impact of higher US tariffs, China’s economy will slow due to the combined influence of needed financial regulatory tightening and trade tensions with the United States. India’s economy is poised to pick up in 2019, benefiting from lower oil prices and a slower pace of monetary tightening than previously expected, as inflation pressures ease.
Growth in emerging and developing Europe in 2019 is now expected to weaken more than previously anticipated, to 0.7 percent (from 3.8 percent in 2018) despite generally buoyant growth in Central and Eastern Europe, before recovering to 2.4 percent in 2020. The revisions (1.3 percentage point in 2019 and 0.4 percentage point in 2020) are due to a large projected contraction in 2019 and a slower recovery in 2020 in Turkey, amid policy tightening and adjustment to more restrictive external financing conditions.
In Latin America, growth is projected to recover over the next two years, from 1.1 percent in 2018 to 2.0 percent in 2019 and 2.5 percent in 2020 (0.2 percentage point weaker for both years than previously expected). The revisions are due to a downgrade in Mexico’s growth prospects in 2019–20, reflecting lower private investment, and an even more severe contraction in Venezuela than previously anticipated. The downgrades are only partially offset by an upward revision to the 2019 forecast for Brazil, where the gradual recovery from the 2015–16 recession is expected to continue. Argentina’s economy will contract in 2019 as tighter policies aimed at reducing imbalances slow domestic demand, before returning to growth in 2020.
Growth in the Middle East, North Africa, Afghanistan, and Pakistan region is expected to remain subdued at 2.4 percent in 2019 before recovering to about 3 percent in 2020. Multiple factors weigh on the region’s outlook, including weak oil output growth, which offsets an expected pickup in non-oil activity (Saudi Arabia); tightening financing conditions (Pakistan); US sanctions (Iran); and, across several economies, geopolitical tensions.
In sub-Saharan Africa, growth is expected to pick up from 2.9 percent in 2018 to 3.5 percent in 2019, and 3.6 percent in 2020. For both years the projection is 0.3 percentage point lower than last October’s projection, as softening oil prices have caused downward revisions for Angola and Nigeria. The headline numbers for the region mask significant variation in performance, with over one-third of sub-Saharan economies expected to grow above 5 percent in 2019–20.
Activity in the Commonwealth of Independent States is projected to expand by about 2¼ percent in 2019–20, slightly lower than projected in the October 2018 WEO due to the drag on Russia’s growth prospects from the weaker near-term oil-price outlook.
Risks to the Outlook

Key sources of risk to the global outlook are the outcome of trade negotiations and the direction financial conditions will take in months ahead. If countries resolve their differences without raising distortive trade barriers further and market sentiment recovers, then improved confidence and easier financial conditions could reinforce each other to lift growth above the baseline forecast. However, the balance of risks remains skewed to the downside, as in the October WEO.

Trade tensions. The November 30 signing of the US-Mexico-Canada free trade agreement (USMCA) to replace NAFTA, the December 1 US-China announcement of a 90-day “truce” on tariff increases, and the announced reduction in Chinese tariffs on US car imports are welcome steps toward de-escalating trade frictions. Final outcomes remain, however, subject to a possibly difficult negotiation process in the case of the US-China dispute and domestic ratification processes for the USMCA. Thus, global trade, investment, and output remain under threat from policy uncertainty, as well as from other ongoing trade tensions. Failure to resolve differences and a resulting increase in tariff barriers would lead to higher costs of imported intermediate and capital goods and higher final goods prices for consumers. Beyond these direct impacts, higher trade policy uncertainty and concerns over escalation and retaliation would lower business investment, disrupt supply chains, and slow productivity growth. The resulting depressed outlook for corporate profitability could dent financial market sentiment and further dampen growth (Scenario Box 1, October 2018 WEO).

Financial market sentiment. Escalating trade tensions, together with concerns about Italian fiscal policy, worries regarding several emerging markets, and, toward the end of the year, about a US government shutdown, contributed to equity price declines during the second half of 2018. A range of catalyzing events in key systemic economies could spark a broader deterioration in investor sentiment and a sudden, sharp repricing of assets amid elevated debt burdens. Global growth would likely fall short of the baseline projection if any such events were to materialize and trigger a generalized risk-off episode:

Italian spreads have narrowed from their October–November peaks but remain high. A protracted period of elevated yields would put further stress on Italian banks, weigh on economic activity, and worsen debt dynamics. Other Europe-specific factors that could give rise to broader risk aversion include the rising possibility of a disruptive, no-deal Brexit with negative cross-border spillovers and increased euro-skepticism affecting European parliamentary election outcomes.
A second source of systemic financial stability risk is a deeper-than-envisaged slowdown in China, with negative implications for trading partners and global commodity prices. China’s economy slowed in 2018 mainly due to financial regulatory tightening to rein in shadow banking activity and off-budget local government investment, and as a result of the widening trade dispute with the United States, which intensified the slowdown toward the end of the year. Further deceleration is projected for 2019. The authorities have responded to the slowdown by limiting their financial regulatory tightening, injecting liquidity through cuts in bank reserve requirements, and applying fiscal stimulus, by resuming public investment. Nevertheless, activity may fall short of expectations, especially if trade tensions fail to ease. As seen in 2015–16, concerns about the health of China’s economy can trigger abrupt, wide-reaching sell-offs in financial and commodity markets that place its trading partners, commodity exporters, and other emerging markets under pressure.
Beyond the possibility of escalating trade tensions and a broader turn in financial market sentiment, other factors adding downside risk to global investment and growth include uncertainty about the policy agenda of new administrations, a protracted US federal government shutdown, as well as geopolitical tensions in the Middle East and East Asia. Risks of a somewhat slower-moving nature include pervasive effects of climate change and ongoing declines in trust of established institutions and political parties.

Policy Priorities

With momentum past its peak, risks to global growth skewed to the downside, and policy space limited in many countries, multilateral and domestic policies urgently need to focus on preventing additional deceleration and strengthening resilience. A shared priority is to raise medium-term growth prospects while enhancing economic inclusion.

Multilateral cooperation. Building on the recent favorable developments noted above, policymakers should cooperate to address sources of dissatisfaction with the rules-based trading system, reduce trade costs, and resolve disagreements without raising tariff and non-tariff barriers. Failure to do so would further destabilize a slowing global economy. Beyond trade, fostering closer cooperation on a range of issues would help broaden the gains from global economic integration, including: financial regulatory reforms; international taxation and minimizing cross-border avenues for tax evasion; reducing corruption; and strengthening the global financial safety net to reduce the need for countries to self-insure against external shocks. An overarching challenge for the global community is mitigating and adapting to climate change to lower the likelihood of devastating humanitarian and economic effects from extremes in high temperatures, precipitation, and drought (Chapter 3, October 2017 WEO).[2] In a growing and ever more complex world economy featuring new and bigger risks, adequate IMF resources will continue to be a key stabilizing factor in global capital markets.

Domestic policies. The policy priorities across advanced economies, emerging markets, and low-income developing countries remain broadly the same as discussed in the October 2018 WEO.

Across advanced economies, above-trend growth is set to moderate to its modest potential (in some cases, earlier than previously anticipated). All countries should emphasize measures that boost productivity, raise labor force participation, particularly of women and, in some cases, youth, and ensure adequate social insurance, including for those vulnerable to structural transformation. Monetary policy should ensure inflation expectations remain anchored, while fiscal policy should build buffers where needed to replenish limited policy space for combating downturns.
Emerging market and developing economies have been tested by difficult external conditions over the past few months amid trade tensions, rising US interest rates, dollar appreciation, capital outflows, and volatile oil prices. In some economies, addressing high private debt burdens and balance-sheet currency and maturity mismatches will require strengthening macroprudential frameworks. Exchange rate flexibility can complement these policies by helping to buffer external shocks. Where inflation expectations are well anchored, monetary policy can provide support to domestic activity as needed (Chapter 3, October 2018 WEO). Fiscal policy should ensure debt ratios remain sustainable under the more challenging external financial conditions. Improving the targeting of subsidies and rationalizing recurrent expenditures can help preserve capital outlays needed to boost potential growth and social spending to enhance inclusion. For low-income developing countries, concerted efforts in these areas would also help diversify production structures (a pressing imperative for commodity-dependent economies), and their progress toward the UN Sustainable Development Goals.
[1] Scenario Box 1 of the October 2018 WEO estimates possible impacts of further increases in trade barriers, including via worsening business confidence and market sentiment.

[2] The Intergovernmental Panel on Climate Change (IPCC) reported in October that, at current rates of increase, average surface temperatures could reach 1.5°C above pre-industrial levels between 2030 and 2052.

Boston – JPMorgan Chase today announced the opening of its first retail branch in Greater Boston along with new lending commitments and investments in local workforce development to prepare area Boston residents for in-demand jobs.

Today, the bank opened its first branch location at 865-875 Providence Highway in Dedham while offering a sneak peek of its new branch at 425 Washington Street at the corner of Washington and Winter Street in downtown Boston, opening in January, to local community partners.

The bank announced in October that it planned to open 60 retail branches and 130 ATMs in Greater Boston and New England over the next five years and hire up to 350 employees, giving local customers access to its banking services while creating local job opportunities for residents. The firm plans to open 400 new branches and hire as many as 3,000 employees in new markets in the next five years.

“This expansion will help create more economic opportunity for the people of Boston, a city we’ve served for over two decades,” said Jamie Dimon, Chairman & CEO of JPMorgan Chase. “By opening branches here, we’re able to lend to more consumers, further invest in neighborhoods, and offer good paying jobs.”

This expansion adds to the firm’s current base of more than 800,000 consumers and over 60,000 business clients in Greater Boston. The bank has been doing business in the Boston region for over 20 years serving clients through its Investment Bank, Commercial Bank and Private Bank.

“We’re so proud to be able to open our branch doors here and meet the people of Boston,” said Thasunda Duckett, CEO of Chase Consumer Banking. “This expansion is about new relationships, new financial journeys, and better access to our products, services and people.”

The firm is actively hiring staff to support its new branches in Greater Boston. Entry-level employees in Boston branches will be paid no less than $18/hour and will receive the firm’s full benefits package, which is valued at an average of $12,000 annually per employee in this pay range. It includes health care coverage and retirement savings, as well. To help ease the burden of out-of-pocket medical expenses, the firm also recently reduced medical plan deductibles by $750 per year for employees making less than $60,000.

In addition to expanding its branch network to the region, JPMorgan Chase will bring the best of its business and philanthropic efforts through new local commitments.

Home & Small Business Lending: Over the next five years, the bank will invest $3 billion for home and small business lending in the region.

Home loans will include low-and moderate-income communities. Eligible customers will also receive up to $3,000 in homeownership grants that reduce the cash customers are required to contribute at purchase and can be used towards closing costs and a down payment—two common barriers to achieving homeownership.
Small businesses will have access to dedicated bankers and products including small business loans, merchant services, cash management and credit card services. In addition, through its Small Business Forward initiative, the firm will provide women, minority- and veteran-owned small businesses with increased access to capital and technical assistance.
Philanthropic Commitments: As part of the firm’s larger $350 million investment in jobs and skills development around the world, JPMorgan Chase is investing $1.1 million to help Boston residents to develop the skills they need to secure in-demand jobs.

“Preparing people with the skills they need to compete for well-paying, in-demand jobs is the key to unlocking opportunity,” said Jennie Sparandara, Head of Workforce Initiatives, JPMorgan Chase. “As the labor market changes, our approach to education and skills development has to change along with it and JPMorgan Chase is working to address this challenge here in Boston.”

New local commitments include:

The Boston Foundation ($515,000/2 years): This investment will help to establish the Catapult initiative to create a networks of workforce development organizations and employers that will attract and invest in candidates sourced from non-traditional talent pipelines- linking them to living-wage employment.
YouthBuild Boston (YBB) ($200,000/1 year): Funding for YBB will allow its Pre-Apprentice Program to develop a pipeline of skilled, diverse workers ready for jobs in Boston’s building trades. Through workshops and training programs, YBB will enable approximately 350 under- and unemployed individuals to prepare for work.
Jewish Vocational Services (JVS) ($150,000): Through JVS’ 23-week programs, the firm’s investment in JVS works to help approximately 90 underserved adults per year to earn industry-recognized college credentials linked to high-demand jobs with clear career pathways for advancement in the biotechnology and healthcare information technology fields.
Resilient Coders ($125,000): As a potential top provider of Boston software engineering talent, support for Resilient Coders works to cultivate job and growth opportunities for lower-income people of color.
Boston Private Industry Council (PIC) ($100,000): Support for Boston PIC allows Tech Apprentice (TA), a paid summer internship program affiliated with Boston Public Schools and UMASS, to offer summer internships for high school students studying technology-related fields.
“We have worked every day – for nearly a decade – to help lower income adults reach their goal of attending college,” said Jerry Rubin, CEO, Jewish Vocational Services. “With support from JPMorgan Chase, we’re proud to provide even more career opportunities for more people in the Boston area.”

“Boston’s Office of Workforce Development works hard with community partners and employers to ensure all Boston residents have the pathways they need to gain skills and advance in the workforce,” said Trinh Nguyen, director of Boston’s Office of Workforce Development. “Our office has channeled millions of dollars into over 100 organizations to support workforce development, and we look forward to working with JPMorgan Chase as we continue our goals to bring opportunity and advancement to all residents.”

To learn more about JPMorgan Chase’s expansion into Greater Boston, please visit chase.com/boston.

About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

WASHINGTON, — Global economic growth is projected to soften from a downwardly revised 3 percent in 2018 to 2.9 percent in 2019 amid rising downside risks to the outlook, the World Bank said on Tuesday. International trade and manufacturing activity have softened, trade tensions remain elevated, and some large emerging markets have experienced substantial financial market pressures.

Growth among advanced economies is forecast to drop to 2 percent this year, the January 2019 Global Economic Prospects says. Slowing external demand, rising borrowing costs, and persistent policy uncertainties are expected to weigh on the outlook for emerging market and developing economies. Growth for this group is anticipated to hold steady at a weaker-than-expected 4.2 percent this year.

“At the beginning of 2018 the global economy was firing on all cylinders, but it lost speed during the year and the ride could get even bumpier in the year ahead”, said World Bank Chief Executive Officer Kristalina Georgieva. “As economic and financial headwinds intensify for emerging and developing countries, the world’s progress in reducing extreme poverty could be jeopardized. To keep the momentum, countries need to invest in people, foster inclusive growth, and build resilient societies.”

Download the January 2019 Global Economic Prospects report.

The upswing in commodity exporters has stagnated, while activity in commodity importers is decelerating. Per capita growth will be insufficient to narrow the income gap with advanced economies in about 35 percent of emerging market and developing economies in 2019, with the share increasing to 60 percent in countries affected by fragility, conflict, and violence.

A number of developments could act as a further brake on activity. A sharper tightening in borrowing costs could depress capital inflows and lead to slower growth in many emerging market and developing economies. Past increases in public and private debt could heighten vulnerability to swings in financing conditions and market sentiment. Intensifying trade tensions could result in weaker global growth and disrupt globally interconnected value chains.

“Robust economic growth is essential to reducing poverty and boosting shared prosperity,” said World Bank Group Vice President for Equitable Growth, Finance and Institutions, Ceyla Pazarbasioglu. “As the outlook for the global economy has darkened, strengthening contingency planning, facilitating trade, and improving access to finance will be crucial to navigate current uncertainties and invigorate growth.”

Analytical chapters address key current topics:

The informal sector accounts for about 70 percent of employment and 30 percent of GDP in emerging market and developing economies. Since it is associated with lower productivity and tax revenues and greater poverty and inequality, this is symptomatic of opportunities lost. Reducing tax and regulatory burdens, improving access to finance, offering better education and public services, and strengthening public revenue frameworks could level the playing field between formal and informal sectors.

Debt vulnerabilities in low-income countries are rising. While borrowing has enabled many countries to tackle important development needs, the median debt-to-GDP ratio of low-income countries has climbed, and the composition of debt has shifted toward more expensive market-based sources of financing. These economies should focus on mobilizing domestic resources, strengthening debt and investment management practices and building more resilient macro-fiscal frameworks.

Sustaining historically low and stable inflation is not guaranteed in emerging market and developing economies. Cyclical pressures that have depressed inflation over the past decade are gradually dissipating. The long-term factors that have helped reduce inflation over the past five decades – global trade and financial integration, widespread adoption of robust monetary policy frameworks – may lose momentum or reverse. Maintaining low global inflation may become as much of a challenge as achieving it.

Policies aimed at softening the blow of global food price swings can have unintended consequences if implemented by many governments in uncoordinated fashion. Government interventions can provide short-term relief, but widespread actions are likely to exacerbate food price spikes, with heaviest impact on the poor. For example, trade policies introduced during the 2010-11 food price spike may have accounted for more than one-quarter of the increase in the world price of wheat and maize. The 2010-11 food price spike tipped 8.3 million people (almost 1 percent of the world’s poor) into poverty.

“Designing tax and social policies to level the playing field for formal and informal sectors as well as strengthening domestic revenue mobilization and debt management will be important priorities for policymakers to overcome the challenges associated with informality in developing economies,” said World Bank Prospects Group Director Ayhan Kose. “As the economic outlook dims, such efforts become even more important.”

Regional Outlooks:

East Asia and Pacific: East Asia and Pacific remains one of the world’s fastest-growing developing regions. Regional growth is expected to moderate to 6 percent in 2019, assuming broadly stable commodity prices, a moderation in global demand and trade, and a gradual tightening of global financial conditions. Growth in China is expected to slow to 6.2 percent this year as domestic and external rebalancing continue. The rest of the region is expected to grow at 5.2 percent in 2019 as resilient demand offsets the negative impact of slowing exports. Indonesia’s growth is expected to hold steady at 5.2 percent. The expansion of the Thai economy is expected to slow in 2019 to 3.8 percent.

Europe and Central Asia: The lingering effects of financial stress in Turkey are anticipated to weigh on regional growth this year, slowing it to 2.3 percent in 2019. Turkey is forecast to experience weak activity and slow to a 1.6 percent pace due to high inflation, high interest rates, and low confidence, dampening consumption and investment. Growth in the western part of the region, excluding Turkey, is projected to slow. Poland is anticipated to slow to 4 percent as Euro Area growth slows. Growth in the eastern part of the region is also anticipated to slow as large economies including Russia, Kazakhstan, and Ukraine decelerate.

Latin America and the Caribbean: Regional growth is projected to advance to a 1.7 percent pace this year, supported mainly by a pickup in private consumption. Brazil is forecast to expand 2.2 percent, assuming fiscal reforms are quickly put in place, and that a recovery of consumption and investment will outweigh cutbacks to government spending. In Mexico, policy uncertainty and the prospect of still subdued investment is expected to keep growth at a moderate 2 percent, despite the fall in trade-related uncertainty following the announcement of the U.S.-Mexico-Canada Agreement. Argentina is forecast to contract by 1.7 percent as deep fiscal consolidation leads to a loss of employment and reduced consumption and investment.

Middle East and North Africa: Regional growth is projected to rise to 1.9 percent in 2019. Despite slower global trade growth and tighter external financing conditions, domestic factors, particularly policy reforms, are anticipated to bolster growth in the region. Growth among oil exporters is expected to pick up slightly this year, as GCC countries as a group accelerate to a 2.6 percent rate from 2 percent in 2018. Iran is forecast to contract by 3.6 percent in 2019 as sanctions bite. Algeria is forecast to ease to 2.3 percent after a rise in government spending last year tapers off. Egypt is forecast to accelerate to 5.6 percent growth this fiscal year as investment is supported by reforms that strengthen the business climate and as private consumption picks up.

South Asia: Regional growth is expected to accelerate to 7.1 percent in 2019, underpinned by strengthening investment and robust consumption. India is forecast to accelerate to 7.3 percent in FY 2018/19 as consumption remains robust and investment growth continues, Bangladesh is expected to slow to 7 percent in FY2018/19 as activity is supported by strong private consumption and infrastructure spending. Pakistan’s growth is projected to decelerate to 3.7 percent in FY2018/19, with financial conditions tightening to help counter rising inflation and external vulnerabilities. Sri Lanka is anticipated to speed up slightly to 4 percent in 2019, supported by robust domestic demand and investment boosted by infrastructure projects. Nepal’s post-earthquake momentum is forecast to moderate, and growth should slow to 5.9 percent in FY2018/19.

Sub-Saharan Africa: Regional growth is expected to accelerate to 3.4 percent in 2019, predicated on diminished policy uncertainty and improved investment in large economies together with continued robust growth in non-resource intensive countries. Growth in Nigeria is expected to rise to 2.2 percent in 2019, assuming that oil production will recover and a slow improvement in private demand will constrain growth in the non-oil industrial sector. Angola is forecast to grow 2.9 percent in 2019 as the oil sector recovers as new oil fields come on stream and as reforms bolster the business environment. South Africa is projected to accelerate modestly to a 1.3 percent pace, amid constraints on domestic demand and limited government spending.

Washington – The U.S. Department of the Treasury and the Office of the U.S. Trade Representative signed the Bilateral Agreement between the United States of America and the United Kingdom on Prudential Measures Regarding Insurance and Reinsurance (U.S.-UK Covered Agreement) on December 18, 2018. Consistent with steps taken when this Administration signed the U.S.-EU Covered Agreement in 2017, the Administration is also issuing a U.S. policy statement regarding implementation of the U.S.-UK Covered Agreement.

The U.S.-UK Covered Agreement, negotiated and concluded through a process involving significant engagement with U.S. stakeholders and the state regulatory community, is an important step in maintaining regulatory certainty and market continuity as the United Kingdom prepares to leave the European Union (EU). The U.S.-UK Covered Agreement also is an important step in affirming the competitiveness of U.S. companies in domestic and foreign markets and making regulations more efficient, effective, and appropriately tailored.

“We look forward to working with the UK to continue to deepen our bilateral regulatory cooperation with a view to the promotion of financial stability, investor protection, and fair, orderly, and efficient markets post Brexit,” said Treasury Secretary Steven T. Mnuchin. “By building on the U.S.-EU Covered Agreement signed by this administration in 2017, the Agreement with the UK will keep in place important benefits for the United States, its insurance industry, and U.S. policyholders.”

United States Trade Representative Robert Lighthizer said, “We are pleased to work with the United Kingdom to ensure continuity and to address barriers in the insurance sector. Our efforts will allow U.S. insurers and reinsurers to maximize business opportunities and cut red tape for their cross-border operations.”

The U.S.-UK Covered Agreement, like the covered agreement with the EU, also benefits the U.S. economy and consumers by affirming the U.S. state-based system of insurance regulation and increasing growth opportunities for U.S. insurers.

Good morning. Thank you for the introduction.

I appreciate the invitation to speak here today. This conference is tackling issues that have a great bearing on the stability of the world economy. Having just passed the 10th anniversary of the start of the Global Financial Crisis, and now looking forward, I’d like to address what I see as this morning’s key topic: the next financial crisis.

History suggests that an economic downturn lurks somewhere over the horizon. Many are already speculating as to exactly when, where, and why it might arise. While we can’t know all that, we ought to be focusing right now on how to forestall its arrival and how to limit it to a “garden variety” recession when it arrives—meaning, how to avoid creating another systemic crisis. Over the past two years, the IMF has called on governments to put in place policies aimed at just that goal—as we have put it, “fix the roof while the sun shines.” But like many of you, I see storm clouds building, and fear the work on crisis prevention is incomplete.

Before asking what should be done, let’s analyze whether the international community has the wherewithal to respond to the next crisis, should it occur. And here I mean both individual countries, and the international organizations tasked to act as first responders. Should we be confident that the resources, policy instruments, and regulatory frameworks at our disposal will prove potent enough to counter and contain the next recession? Consider the main policy options.

Policy Options for the Next Recession

On monetary policy, much has been said about whether central banks will be able to respond to a deep or prolonged downturn. For example, past U.S. recessions have been met with 500 basis points or more of easing by the Fed. With policy rates so low at present in so many places, that response will not be available. Central banks would likely end up exploring ever more unconventional measures. But with their effectiveness uncertain, we ought to be concerned about the potency of monetary policy.

We read every day that for fiscal policy, the room for maneuver has been narrowing in many countries. Public debt has risen and, in many countries, deficits remain too high to stabilize or reduce debt. Now to be fair, we can presume that if the next slowdown creates unemployment and slack, multipliers will grow larger, likely restoring some potency to fiscal policy, even at high debt levels. But we should not expect governments to end up with the ample space to respond to a downturn that they had ten years ago. Moreover, with high sovereign debt levels, decisions to adopt stimulus may be a hard sell politically.

Given the enduring public resentments borne by the Global Financial Crisis, a recession deep enough to endanger the finances of homeowners or small businesses would likely lead to a strong political call to help relieve debt burdens. That could further stress already stretched public finances.

And if recession once again impairs banks, the recourse to bailouts is now limited in law, following financial regulatory reforms that call for bail-ins of owners and lenders. Those new systems for bail-ins remain underfunded and untested.

Finally, the impairment of key U.S. capital markets during the global financial crisis, which might have produced crippling spillovers across the globe, was robustly contained by unorthodox Fed action supported by Treasury backstop funding. That capacity is also unlikely to be readily available again.

The point is that national policy options and public financial resources may be much more constrained than in the past. The right lesson to take from that possibility is for each country to be much more careful to sustain growth, to limit vulnerabilities, and to prepare for whatever may come.

But the reality is that many countries are not pursuing policies that will bolster their growth in a sustainable fashion. The expansion actually has become less balanced across regions over the past year, and we are witnessing a buildup of vulnerabilities: higher sovereign and corporate debt, tighter financial conditions, incomplete reform efforts, and rising geopolitical tensions.

Five Key Policy Challenges

So, let me turn to five key challenges that could affect the next downturn—areas where governments face a choice to take proactive steps now, or not, and where inaction would probably make matters worse.

The first challenge is the simple and familiar admonition: “First, do no harm.” This is worthy advice for doctors and economic policymakers. Let me mention some examples.

In the case of U.S. fiscal policy over the past year, the combination of spending increases and tax cuts was intended to provide a shot of adrenalin to the U.S. economy and improve investment incentives. However, coming at a time when advanced recovery meant little need for stimulus, this choice runs the three risks of increasing the potential need for Fed tightening; raising deficits and public debt; and spending resources that might better be put aside to combat the next downturn.

Another example is the recent escalation of tariffs and trade tensions. Fortunately, the U.S. and China agreed in Buenos Aires to call a ceasefire. That was a positive development. There certainly are shortcomings in the global trading system, and countries experiencing disruption from trade have some legitimate concerns about a number of trade practices. But the only safe way to address these issues is through dialogue and cooperation.

The IMF has been advocating de-escalation and dialogue for some time. That is because the alternative is hard to contemplate. We estimate that if all of the tariffs that have been threatened are put in place, as much as three-quarters of a percent of global GDP would be lost by 2020. That would be a self-inflicted wound.

So it is vital that this ceasefire leads to a durable agreement that avoids an intensification or spread of tensions.

Now to the second challenge, which is closely tied to the trade issue: China’s emergence as an economic powerhouse. In many ways, this is one of the success stories of our era, showing that global integration can lead to rapid growth, poverty elimination, and new global supply chains lifting up other countries.

But as Winston Churchill once said of the U.S. during World War II, “the price of greatness is responsibility.”

China’s Global Role

Chinese policies that may have been globally inconsequential and thus acceptable when China joined the WTO and had a $1 trillion economy are now consequential to much of the world. That’s because China now is a globally integrated $13 trillion economy whose actions have global reverberations. If China is to continue to benefit from globalization and support the aspirations of developing countries, it will need to focus on how to limit adverse spillovers from its own policies and invest in ensuring that globalization can be sustainable.

Moreover, China would likely gain at home by addressing many of the policy issues that have been contentious, for example through

stronger protections for intellectual property, which will benefit China as it becomes a world leader in technologies;
reduced trade barriers, especially related to investment rules and government procurement procedures, which will produce cost-reducing and productivity enhancing competition that will benefit the Chinese people in the long run.
and an acceleration of market-oriented economic reforms that will help China make more efficient use of scarce resources.
This notion of global responsibility applies to Europe as well, and this is the third challenge. Our forecasts show growth in the euro area and the UK falling short of previous projections, and modest potential growth going forward.

The future of the European economy will be shaped by the way the EU addresses its architectural and macroeconomic challenges and by Brexit. The recent EMU agreement on reforms is welcome. Going forward, the Euro area would gain by pushing further to shore up its institutional foundations.

The absence of a common fiscal policy limits Europe’s ability to share risks and respond to shocks that can radiate through its financial system. And crisis response will be constrained because too much power remains vested in national regulators and supervisors at the expense of an integrated approach across the continent.

All of this prevents Europe from playing a global role commensurate with the size and importance of the euro area economy.

The Task for Emerging Markets

The fourth challenge is in the emerging markets. For all of their extraordinary dynamism, we have seen a divergence among emerging markets over the past year: between those who have not shored up their defenses against shocks, including preparation for the normalization of interest rates in the advanced economies; and those that have taken advantage of the global recovery to address their underlying vulnerabilities.

Capital outflows over the past several months have shown how markets are judging the perceived weaknesses in individual countries. If global conditions become more complicated, these outflows could increase and become more volatile.

The fifth and final challenge is the topic you will take up this afternoon: the role of multilateral institutions.

We know that these institutions have played a crucial role in keeping the global economy on track. In the nearly 75 years since the IMF was set up, our world has undergone multiple transformations—from post-war reconstruction and the Bretton Woods system of fixed exchange rates to the era of flexible rates; the rise of emerging economies; the collapse of the Soviet Union and transition to market economies; as well as a series of financial crises: the Mexican debt crisis, the Asian Crisis, and the Global Financial Crisis.

At each stage, we at the IMF have been called upon to evolve and even remake ourselves.

Now, we see a rising tide of doubt about globalization and discontent with multilateralism in some advanced economies. Just as with the IMF, it is fair for the international community to ask for modernization in its institutions and organizations, to seek reforms to ensure that institutions serve effectively their core purposes.

This applies to groupings such as the G20, as well as international organizations.

So, it was heartening to see the G20 Leaders to call for reform of the WTO when they came together in Buenos Aires. This reform initiative, which has the potential to modernize the global trading system and restore support for cooperative approaches, should now go forward.

The policy challenges we face are clear. As I have suggested, governments have their work cut out for them and may have to contend with less potent policy tools. It is essential they do what they can now to address vulnerabilities and avoid actions that exacerbate the next downturn.

The Multilateral Response

But we should prepare for the possibility that weaker national tools may mean limited effectiveness, and thus may result in greater reliance on multilateral responses and on the global financial safety net.

The IMF’s lending capacity was increased during the global financial crisis to about one trillion dollars – a forceful response from the membership at a time of dire need. One lesson from that crisis was that the IMF went into it under-resourced; we should try to avoid that next time.

From that point of view it was encouraging that the G20 in Buenos Aires underlined its continued commitment to strengthen the safety net, with a strong and adequately financed IMF at its center. It is important that the leaders pledged to conclude the next discussion of our funding, the quota review, next year.

But the stakes are bigger than any one decision about IMF funding. IMF Managing Director Christine Lagarde has called for a “new multilateralism,” one that is dedicated to improving the lives of all this world’s citizens. That ensures that the economic benefits of globalization are shared much more broadly. That focuses on governments and institutions that are both accountable and working together for the common good. And that can take on the many transnational challenges that no one government alone, not even a few governments working together, can handle: climate change, cyber-crime, massive refugee flows, failures of governance, and corruption.

Working together, we will be better able to prevent a damaging downturn in the coming years and a dystopian future in the coming decades. With ingenuity and international cooperation, we can make the most of new technologies and new challenges, and create a shared and sustained prosperity.

Thank you.
IMF First Deputy Managing Director
Bloomberg Global Regulatory Forum
London