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Citi CEO sees Europe heading into recession more than U.S. -Breaking

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© Reuters. FILE PHOTO: Jane Fraser addresses a Brazil-U.S. Enterprise Council in Washington, U.S. March 18, 2019. REUTERS/Erin Scott

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NEW YORK (Reuters) – Citigroup Inc (NYSE:) Chief Govt Jane Fraser mentioned on Friday that Europe was extra prone to slip right into a recession greater than the USA, as she joined different international financial institution CEOs this week to warn in regards to the well being of the worldwide economic system.

Fraser, head of the third-largest and most globally centered U.S. financial institution, just lately returned from a world tour with stops in Asia, Europe and the Center East, the place she mentioned her conversations centered on “the three Rs.”

“It is charges, it is Russia and it is recession,” Fraser mentioned, talking at an investor convention in New York.

However she mentioned in Europe, “the vitality aspect was actually having an affect on plenty of corporations in sure industries that aren’t even aggressive proper now.”

“Due to the price of electrical energy and the price of vitality, a few of them are shutting down operations. So Europe undoubtedly felt extra prone to be heading right into a recession than you see within the U.S.,” she added.

On Wednesday, JPMorgan (NYSE:) & Chase’s Chairman and Chief Govt Officer Jamie Dimon described the challenges dealing with the U.S. economic system as akin to a “hurricane,” whereas Goldman Sachs (NYSE:)’ President and Chief Working Officer John Waldron mentioned on Thursday the present financial turmoil is likely one of the most difficult he has ever confronted.

Fraser mentioned she additionally expects U.S. fairness markets to enter a interval of much less volatility and for the Chinese language authorities to launch a recent spherical of fiscal stimulus within the coming months, as that nation begins to open up from COVID lockdowns.

In China, Fraser mentioned she “would not be stunned to see motion taken on fiscal stimulus.”

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