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Jamie Dimon, the chairman and CEO of J. P. Morgan Chase, said Thursday the current market volatility can be attributed to a variety of worries about political risk and oil prices, but the issue “that’s probably roiling the market the most is trade.”

“How bad is it going to get?” Dimon asked during an interview with CNBC’s Becky Quick. Dimon said traders, executives and other market watchers are trying to figure that out and are factoring it into their outlooks.

The U.S. economy is strong, Dimon said. Companies are hiring, consumers are spending, unemployment is down, he noted. But stocks have been volatile. On Thursday, they fell sharply and then tried to recover some of that ground in the afternoon. As of 2:25 p.m. ET, the Dow Jones Industrial Average was down 454 points.

The U.S. under the Trump administration has engaged in an escalating trade war with China, though the two sides are talking and set a 90 day time frame from Dec. 1 to get an agreement.

Dimon called it a trade “skirmish.” But it is forcing business leaders to find new supply lines, rethink investments or hold off on investments. “Those things are just causing uncertainty, which causes volatility.”

Dimon was in Washington along with the top executives of other large companies to attend the Business Roundtable’s CEO Innovation Summit. The head of the biggest U.S. bank was just elected chairman of the lobbying group for third year as executives face a the second half of President Donald Trump’s term.

Trump’s early policies, including tax cuts last year, have been seen as business friendly but there are challenges, such as the possibility of slowing economic growth and the effects of Trump’s tariffs on American companies.

Dimon says he doesn’t expect the U.S. and China to come to final terms on their trade negotiations in three months, but they should be able to make progress. He places the likelihood of an agreement at 60 percent but says there’s always a risk that something goes south. “That kind of uncertainty is just not good for markets.”

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Putin’s missile with ‘unlimited’ range is too expensive and hasn’t flown more than 22 miles

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Putin’s push to develop weapons of this caliber has sparked concerns of a budding arms race among China, the U.S. and Russia.

What’s more, the latest revelations come a little more than a year after the Russian leader touted his nation’s growing hypersonic arsenal. Of the six new weapons Putin unveiled last March, CNBC learned that two of them, a hypersonic glide vehicle and air-launched cruise missile, will be ready for war by 2020.

The hypersonic glide vehicle, dubbed Avangard, is designed to sit atop an intercontinental ballistic missile. Once launched, it uses aerodynamic forces to sail on top of the atmosphere.

One U.S. intelligence report, according to a source, noted that the hypersonic glide vehicles were mounted to Russian-made SS-19 intercontinental ballistic missiles — and one test featured a mock warhead.

Previous intelligence reports, which were curated last spring, calculate that Avangard is likely to achieve initial operational capability by 2020, a significant step that would enable the Kremlin to surpass the U.S. and China in this regard.

The hypersonic cruise missile dubbed “Kinzhal,” which means “dagger” in Russian, has been tested at least three times and was mounted and launched 12 times from a Russian MiG-31 fighter jet.

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US slaps sanctions on Venezuela bank Bandes after Guaido aide’s arrest

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Venezuelan President Nicolas Maduro meets with UN chief Ban Ki-moon at the United Nations headquarters in New York on July 28, 2015.

Spencer Platt | Getty Images News | Getty Images

Venezuelan President Nicolas Maduro meets with UN chief Ban Ki-moon at the United Nations headquarters in New York on July 28, 2015.

The United States imposed sanctions on Venezuela’s development bank Bandes, a day after the Trump administration warned there would be consequences for the arrest of opposition leader Juan Guaido’s top aide.

The U.S. Treasury said it was slapping the sanctions on the Banco de Desarrollo Economico y Social de Venezuela, including its subsidiaries in Uruguay and Bolivia.

“(President Nicolas) Maduro and his enablers have distorted the original purpose of the bank … as part of a desperate attempt to hold onto power,” U.S. Treasury Secretary Steven Mnuchin said in a statement announcing the action.

Guaido, who invoked the constitution to assume the interim presidency in January, has accused Bandes of being used by officials of Maduro’s government to steal funds.

The U.S. Treasury said Maduro tried to move $1 billion out of Venezuela through Banco Bandes Uruguay in early 2019.

Bandes has received billions of dollars over the past decade from the China Development Bank, in exchange for oil, which the Venezuelan government used to fund infrastructure projects.

The sanctions freeze assets belonging to the bank and its subsidiaries, and prevent U.S. citizens from any dealings with Bandes.

The announcement comes after Venezuelan authorities detained Guaido’s chief of staff, Roberto Marrero, on Thursday in a pre-dawn raid, sparking vows of reprisals from the United States, which backs Guaido.

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Brazil shares tumble after arrest of former president Temer

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Brazilian stocks fell sharply on Friday as the arrest of the country’s former president, Michel Temer, sparked worries that government debate over key fiscal reforms may be delayed.

The iShares MSCI Brazil ETF (EWZ) dropped 3.9 percent and was headed for its worst day since Feb. 6, when it fell 4.2 percent. The Bovespa index, Brazil’s benchmark index, fell about 2 percent after hitting an all-time high earlier this week.

Temer was arrested in Sao Paulo on Thursday, with prosecutors alleging he was the head of a “criminal organization” that took more than $470 million in bribes or kickbacks.

Temer already faced ongoing criminal investigations against him before leaving the presidency. However, his arrest comes as current President Jair Bolsonaro tries to push forward major changes to the country’s pension system, which investors largely bet will happen.

“The key question is whether or not his arrest affects pension reform. In theory it shouldn’t,” Dirk Willer, head of emerging market strategy at Citigroup, said in a note. However, “the period between the unveiling of the pension reform and approval by the special house committee will be filled with much noise and headline risk. [Thursday’s] news was a good example of the sort of headline risks one should expect over the next months when pension reform makes its way through congress.”

Brazilian stocks surged to start the year amid hopes the Bolsonaro administration would pass key changes to the country’s social security system. Brazil’s generous pension system effectively lets citizens retire in their 50s. This has led to massive government debt, which has stymied consistent economic growth in Brazil.

But while investors are still betting on some sort of reform taking place, they are realizing it could be a bumpy ride. On Wednesday, Bolsonaro unveiled a military pension reform plan that would save just $265 million on average over the next 10 years. These savings are well below those proposed by the country’s Economic Ministry.

But it is key for Bolsonaro’s broader pension-reform efforts as lawmakers indicated they could not debate the matter until they saw the president’s plans for military pensions.

Now, Temer’s arrest could delay that process even further depending on how his party — which holds 34 seats in the lower house — reacts, Citi’s Willer said.

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