yahoo news | BBC Audio | Business Matters | #32 BlackRock CEO: Global Recession Looms if Iran...
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yahoo news | BBC Audio | Business Matters | #32 BlackRock CEO: Global Recession Looms if Iran...
Larry Fink, chairman and chief executive of BlackRock – the world’s largest asset manager with over $14 trillion under management – warned that if the conflict with Iran continues, oil prices could stay above $100 a barrel for years and even climb to $150. Such sustained high energy costs would ripple through agriculture, fertiliser production and global supply chains, acting as a regressive tax that hits the poorest hardest and could trigger what he described as a “stark and steep recession”.
Fink urged an “energy‑pragmatism” approach, arguing that countries should draw on every available source – oil, gas, renewables and nuclear – to build resilience, especially given Europe’s fragmented power systems. On trade, he said globalisation is being recalibrated rather than reversed, with post‑war trading patterns moving toward more symmetrical relationships, even as tariffs remain inflationary. He dismissed direct comparisons with the 2008 financial crisis, noting that the $2.2 trillion private‑credit market is now more transparent and has clear liquidity limits.
Looking ahead, Fink highlighted artificial intelligence as a transformational force that will drive massive infrastructure investment and create large numbers of skilled blue‑collar jobs. He argued societies have over‑emphasised university education and need to re‑value trades in an AI‑driven economy, suggesting that the future will require a balance of high‑tech expertise and practical, hands‑on skills to support both economic growth and social stability.
Read more: https://www.bbc.com/audio/play/p0n8hrxv
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