Tags: blackrock | ceo | fink | tariff | market | rout

BlackRock CEO Fink: Stocks Could Drop 15 Percent if Trade War Intensifies

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Monday, 16 July 2018 08:05 AM

BlackRock Inc. Chief Executive Officer Larry Fink said that intensifying global trade tensions may spur a broad market downturn and a slowdown in the U.S. economy.

Stocks could drop 10 percent to 15 percent and U.S. gross domestic product would start slowing in 2019 if the Trump administration sees through its threat to levy tariffs on an additional $200 billion of Chinese imports, Fink said, adding that would elevate the current tensions to a full-blown trade war.

“The market’s having a hard time digesting the whole change in globalization and trade,” Fink said in an interview Monday with Erik Schatzker on Bloomberg Television. “The foundations of international trade are being raised and being questioned.”

Trade worries are already causing investors to “pause,” he added, despite record deal-making and stock repurchases. That effect has been compounded by the fact that for the first time in a decade investors can earn a return by keeping money in cash.

The world’s largest asset manager is already seeing signs of investor skittishness. Earlier Monday, BlackRock reported that investors pulled $22.4 billion from its equity products in the second quarter. Inflows into its iShares products totaled $17.8 billion, the lowest since the second quarter of 2016.

BlackRock’s total assets under management were about flat at $6.3 trillion as of June 30. The New York-based firm also reported total net inflows of $20 billion in the period.

Overall, the company had a solid quarter with adjusted second-quarter earnings of $6.66 per share, topping analyst estimates of $6.55 per share. Revenue gained 11 percent year-over-year.

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BlackRock Inc. Chief Executive Officer Larry Fink said that intensifying global trade tensions may spur a broad market downturn and a slowdown in the U.S. economy.
blackrock, ceo, fink, tariff, market, rout
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2018-05-16
Monday, 16 July 2018 08:05 AM
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