Yaakov Frankel CEO of JPMorgan: US - China trade war must be avoided

Yaakov Frankel, chairman of JPMorgan International Bank and former Governor of the Bank of Israel, said in an interview  with MSNBC that rade war between the United States and China is the greatest danger to the world economy today. It's still not a trade war, I would say there are some fights between The Parties. "I think we should all remember the economic disaster of 1931 - the good intentions to protect workers and jobs in the US and the disastrous consequences of the Great Depression, we should avoid a trade war at any price", Frenkel said regarding the background of the deterioration in relations between the United States and China.

After President Donald Trump made it clear that he was referring toinclude another list of  chinese products that will be included in custom taarifs at a range of $ 100 billion. In response, Beijing announced that it plans to add another 106 US products to the list on which tariffs will be imposed. Frenkel stressed that we are still not seeing a trade war between the United States and China, but there is no doubt that the measures taken by the two countries caused nervousness in the capital markets and the stock exchange in New York recorded price declines at the end of the week when the Dow Jones index fell more than 2 percent.

"A world in which there is a great deal of interdependence between all countries can not allow the sides to start attacking each other," Frankel said. Frenkell praised other aspects of Trump government policy, such as a sharp reduction in corporate tax and other regulatory easing. According to him, the world's economies are very connected today to one another, and globalization works well.