JP Morgan is “rigorously” campaigning against Britain leaving the European Union, according to Stephanie Flanders, EMEA Chief Market Strategist at the firm.
Speaking at JP Morgan’s Brexit conference, Ms Flanders reaffirmed the bank’s desire to stay in the EU and declared that it was “rigorously trying to persuade people not to leave.”
This follows a warning from Jamie Dimon, chief executive of the asset manager’s US-based parent company, that JP Morgan may be forced to leave the UK if Britain were to vote to leave.
The vote, due to take place on 23 June, comes at a time of great political uncertainty in Europe. A deal is yet to be struck with Greece regarding unlocking further bailout funds, and its ability to avoid a debt cut and meet Angela Merkel’s demands that the IMF participate in the aid programme. There is a fear that these uncertainties could work against the remain campaign.
Ms Flanders admitted she is worried that in the lead up to the vote there “could be more discussions in the headlines around debt relief and is Greece going to leave.” Although Ms Flanders does not anticipate Greece being pushed out of the EU, she fears the impact that attention on Greece could have on the vote.
The referendum is not the only factor troubling markets. Weakening service sector activity in the US and Europe, turbulence in the bond market as a result of uncertainty surrounding changing US inflation and interest rate expectations are also contributing. With uncertain markets, Ms Flanders says “consumers really are the only engine of this global recovery left, so we need to ensure that they are still drivers.”
