Larry Fink, CEO of BlackRock, the world’s largest asset manager, has said at the World Economic Forum in Davos that Europe was being underestimated by global investors and now might be the time to bet on the region again.
“There’s too much pessimism on Europe,” Fink stated during a panel on the global economic outlook on January 24.
“I believe it’s probably time to be investing back into Europe,” he added, emphasising what he said was the need to advance the capital markets union as a crucial lever to unlock the continent’s true economic potential.
European Central Bank President Christine Lagarde described the current global situation as an “existential threat” for Europe, marked by geopolitical tensions, technological competition with the US and China and the economic repercussions of the war in Ukraine.
She stressed that the continent had the resources and capacity to overcome these barriers if investment and talent were mobilised effectively.
“We need to keep the talent and savings at home,” Lagarde insisted, highlighting the importance of integrating European capital markets to remain competitive.
Recent economic data has shown stabilisation in the services sector and a slowdown in the manufacturing contraction, so Fink said he believed the continent could be at a turning point.
“Investors are too focused on risks but are overlooking the opportunities that a market as diverse as Europe still offers,” he said.
For BlackRock, that could mark the beginning of a different narrative.
On September 22, the investment fund closed its ESG (environmental, social and governance) initiatives department amid backlash from conservatives in the US.
On January 13, the Net Zero Asset Managers Initiative (NZAM), a prominent coalition dedicated to aligning investments with net-zero emissions goals, announced a temporary suspension of its activities after BlackRock stopped any funding related to this objective in January 9.
Greenpeace activists have evaded the World Economic Forum’s tight security checks, staging a brief climate change protest outside the main hall of the annual meeting in Davos. https://t.co/UfGdacSv2v
— Brussels Signal (@brusselssignal) January 22, 2025
