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The chorus of concern over a tech-driven stock market crash gains another member.
The boss of America's biggest bank tells the BBC when he thinks it might happen.
Hello, this is World Business Express from the BBC World Service with me, Sarah Rogers.
And why China is keeping a tight grip on materials crucial for our tech.
And we've had a gold rush, now there's a silver surge.
Far more worried than others.
The words of Jamie Dimon, CEO at America's biggest bank, JP Morgan, over worries of a US stock market drop.
A lot of rapid growth has been driven by investment in tech and AI.
And now there's concerns raised of a bubble, which is when investors overvalue stocks.
And there's a growing worry that that bubble could burst.
So let's hear from that exclusive BBC interview with Jamie Dimon, who was speaking to our business editor, Simon Jack.
I am far more worried about that than others.
So if you said now I'm talking about probabilities, I would give it a higher probability than I think it's probably priced in the market and by others.
So if the market's pricing in 10%, I would say it's more like 30%.
So one third chance of a correction.
Yeah, and I'm not saying next year.
Because the timing of these things is almost impossible.
So it could be what, six months, could be a year?
Could be six months, could be two years.
Okay, so sometime in the next six months or two years, you see a high probability of a correction.
Yeah, you see a lot of things out there that you know the amount of uncertainty, and I put geopolitics in that category, fiscal spending in that category, politics in that category, the remilitarization of the world in that category.
All these things cause a lot of issues that we don't know how they're going to sort out.
So I say the level of uncertainty should be higher in most people's minds than what I call normal.
Well, if you want to hear the whole conversation with Jamie Dimon, you can find it on the BBC Big Boss interview podcast, wherever you get yours.
Now, what we've just heard there was on top of warnings that came yesterday from the Bank of England and the International Monetary Fund of an AI tech bubble in the same realm as the dot-com crash 25 years ago.
So let's hear from a tech investor on this.
Rajiv Chaudhry is the founder and CEO at Algo Risk AI.
The real question that I see is not so much the hype that is there, because that is definitely there, but that is more on the equity side that some of the valuations are really inflated at this point in time.
Pragmatic and open-minded about this new technology.
So there are risks that comes along with it because it's new.
So we have to understand what those new risks look like.
But at the same time, there are a lot of opportunities that comes along with it.
So if we just ignore the upside of this new technology, then I think that will also be wrong.
So upsides and downsides, says Rajiv Chaudhry from Algorisk AI.
Let's bring in our guest for today, Jen Snyder, a financial advisor at Brighton Securities in Rochester in New York.
Is this making waves in the US?
And what difference will these growing warnings from very influential people make to investors?
Yes.
Hello, Sarah.
Definitely reminiscent of the 2000 bubble and that question, are we in 1998 right now, 1999?
I definitely heard from your previous guests there.
It's to be pragmatic and listen and watch the signs here.
And really, why does it matter if we're looking at pensions, retirement plans, things of that nature?
We can see that those are growing rapidly if there is exposure to tech.
You mentioned it a little bit, but if this AI stocks bubble does burst, other than share prices in tech dropping, what's the knock-on?
Briefly, with people without investments.
Why should they care?
Well, the people without the investments in tech.
I think that they are missing out potentially on what's possible.
Of course, there's a lot of people that do have that exposure, but it's something to be looking at and considering, because innovation is not going anywhere.
Tech tends to be the largest growth engine that we have when it comes to investments.
It's also the riskiest, as we know, as we're seeing right now.
We are in a very unique time.
This does feel very reminiscent of 25 years ago.
And we have to pay attention to what we learn then and apply it to today.
So that diversification is important, especially as it pertains to these large pensions.
Thank you.
Now let's go to China, which has tightened its rules on the exports of rare earth, the elements crucial to the manufacture of things like our phones, but also weapons.
Let's hear from the BBC's Laura Bicker.
Foreign companies will need the Chinese government's approval to export products if they've been made using any of the country's rare earth extraction, refining or magnet making technology.
One of the main targets of these controls appears to be overseas defence manufacturers.
They'll not be granted export licences to protect China's national security interests, according to the Commerce Ministry.
Beijing appears to be trying to leverage its dominance of the supply chain as it continues trade negotiations with the US and ahead of an expected meeting between President Donald Trump and the Chinese leader Xi Jinping later this month.
We heard from Laura this is about defence.
Henry Wang is president of the Centre for China and Globalisation in Beijing.
I think what has happened is that you know, we see that the US has been practising sanctions and restrict of the cheap sales and many other things semiconductors.
The logic that US use is that okay, chips can be used for civilian use but also can be applied to military.
Same is true for the rare earths.
So China said that this is a national security issue, but it of course comes ahead of a potential meeting between Donald Trump and Xi Jinping.
So is this just a bargaining chip for tariffs?
I think that China just used the same logic that you have been using.
OK, if you're preventing chips selling to China saying that can be used for security and military purpose, why not rare earths?
It's not the same reasoning now.
So that's... basically means that you need approval to be exported.
I'm sure President Trump, President Xi will be meeting.
And I see US is realizing that.
You know, the kind of unilateral move going through this process is not really helping.
And then you know this kind of unilateral approach.
If every country all hold their competitive advantage and they all use national security, That could be a problem.
But I think, on the other hand, we also need to really talk among those big countries to really sort it out.
Rather than sanctioning each other, there should be a better way to do that.
Danish renewable energy firm Orsted says it's cutting a quarter of its workforce, so 2000 jobs by the end of 2027.
The offshore wind company will focus on Europe instead after completing a $9.4 billion share sale.
It follows problems in the US wind market, including rising costs and policy reversals under Donald Trump.
Now let's take a look at some other stories with Jen Snyder from Brighton Securities.
First, a familiar name.
Playoff time, baby.
Games, snacks, drinks.
I mean, what else can you ask for, bro, really?
Hey, pass me a Pepsi.
I mean, can you drink any louder?
Shares of PepsiCo up earlier, Jen.
Are people passing the Pepsis then?
Yes, they are passing the Pepsi.
And I would attribute this to the new CFO after 30 years, that the company seems open to change, open to new strategies under pressure from investors.
Maha movement makeover.
Let's talk about natural ingredients.
A good thing for Pepsi.
A bad day for Ferrari, though, and it unveiled its first EV.
Yes, unfortunately, stocks fell due to the forecast of 5% to 6% annual revenue growth through 2030.
That's lower than what analysts had expected.
And certainly the EV transition has played a big part in that.
Slowdown on that ambition for these vehicles.
And Ferrari, let's face it, it's a big engine.
There's a bit of caps on the volume, maintaining the scarcity.
So it's not just about selling more units.
Tariffs play an issue.
And as we said, easy.
All right.
Thanks, Jen.
We'll have to wrap up there from Brighton Securities.
Thank you.
Now you'll heard us talking about the price of gold recently, but silver's hit its highest level in decades.
The metal reached more than $50 an ounce, gaining over 70% this year.
Meanwhile, gold is holding those record highs of more than $4,000 an ounce.
And all right, that's it from World Business Express with me, Sarah Rogers.
Do subscribe, though, to get your latest episode.
Search for World Business Express.
