I’ve never heard so much pessimism on the future of Europe
There’s severe “pessimism” about the future of Europe at Davos, according to Larry Fink, chief executive of BlackRock . Taking a contrarian approach, however, Fink — who leads the world’s largest investment manager — suggested that the overwhelmingly negative sentiment on Europe’s future, economy and capital markets could mean things are about to turn around. “As a frequent visitor to Davos, let me be clear, I’ve always done the best when I’ve gone against every Davos week,” Fink told CNBC’s Squawk Box Thursday. “What I learned this week in Davos is abject pessimism from Europeans. I’ve never seen or heard more pessimism on the future of Europe,” he added. “So I’m actually coming around now and saying we may be near a bottom.” This view on the prevailing Davos sentiment was also shared by UBS Chief Executive Sergio Ermotti earlier this week, who joked to CNBC: “Whatever is the consensus of Davos won’t play out to be the reality.” ‘They need more growth’ Jamie Dimon, chief executive of America’s largest bank JPMorgan , also bemoaned the lack of impetus in Europe despite efforts from British Chancellor Rachel Reeves, who he met on Wednesday at Davos, and European Commission President Ursula von der Leyen. “I don’t think there’s anyone who doesn’t understand that they need more growth,” Dimon told CNBC. “And then there are certain things that people have done that have inhibited growth. ” “Inhibited is regulations, its permitting, its rules. I put in general: anti-business sentiment,” he added. “Everyone realizes that, but the real trick here is execution.” Dimon also referred to the so-called Draghi report , which was produced by former European Central Bank President Mario Draghi on how to reform Europe’s economy, which has been widely welcomed. “You can talk about it all you want,” he said. “That’s great, but they have to execute the Draghi report.”
