Investors are more worried about the economy ‘than at any time in recent memory’, according to the boss of Blackrock.
As global markets plunged on latest fears over Donald Trump’s trade war, Wall Street titan Larry Fink declared: ‘Protectionism has returned with force.’
The comments came as the prospect of another round of US tariffs tomorrow sent stock markets into the red from Tokyo to New York.
The price of gold – a safe haven stock in turbulent times – hit a record high of more than $3,100 per ounce. Goldman Sachs, meanwhile, said there was a one in three chance of a US recession.
Fink, whose firm is the world’s largest asset manager with around £9 trillion on its books, delivered the warning in his closely followed annual letter.
He said: ‘I hear it from nearly every client, nearly every leader – nearly every person – I talk to: they’re more anxious about the economy than at any time in recent memory.’
Tariffs: As global markets plunged on latest fears over Donald Trump’s trade war, Wall Street titan Larry Fink (pictured) declared: ‘Protectionism has returned with force’
Fink – who did not mention Trump by name – said widening inequality has ‘reshaped our politics’, adding: ‘The unspoken assumption is that capitalism didn’t work and it’s time to try something new. But there’s another way to look at it: capitalism did work – just for too few people.’
Trump has imposed swingeing tariffs on major trading partners China, Mexico and Canada as well as across-the-board duties on steel and aluminium, and car imports – in some cases sparking tit-for-tat retaliation. That has sent US stock markets plunging on fears of the impact on inflation and growth.
The S&P 500 and tech-focused Nasdaq indices were last night on track for their steepest quarterly declines in three years.
Some of America’s most prominent businessmen are counting the cost, with the biggest five losers seeing a combined £162billion wiped off their fortunes so far this year.
They are led by Elon Musk – who is down £80billion amid a backlash against his electric car firm Tesla over his role in the Trump administration as well as fears over the impact of tariffs on the business.
Trade war: The prospect of another round of US tariffs tomorrow sent stock markets into the red from Tokyo to New York
Also in the red are Oracle’s Larry Ellison, Google founders Larry Page and Sergey Brin, and Amazon founder Jeff Bezos.
A further massive tariff plan to be unveiled tomorrow – which the President has dubbed ‘liberation day’ – is causing additional anxiety.
That added further market turbulence yesterday, with the FTSE 100 ending 0.9 per cent lower while France’s Cac 40 and Germany’s Dax also saw steep falls.
In Tokyo, the Nikkei plunged 4 per cent while South Korea’s Kospi tumbled 3 per cent and Hong Kong’s Hang Seng slid by 3 per cent.
Daniela Hathorn, senior market analyst at Capital.com, said: ‘Markets are bracing for the worst to come. The messaging around tariffs softening seems highly unlikely.’
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