BlackRock CEO Larry Fink warned the coronavirus could cause lasting economic damage
- BlackRock CEO Larry Fink warned that the coronavirus pandemic could have lasting economic impacts, Bloomberg reported.
- The asset manager's boss described a wave of bankruptcies, vacant planes, and pressure to raise taxes in a private call with a wealth-advisory firm's clients this week, Bloomberg said.
- Fink also warned that economic distress could fuel nationalism and fan geopolitical tensions.
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BlackRock CEO Larry Fink cautioned that the coronavirus outbreak could have lasting economic impacts during a private call with a wealth-advisory firm's clients this week, according to Bloomberg.
The head of the world's largest asset manager warned of a wave of bankruptcies, vacant planes, nervous consumers, and a hike in corporate tax rates to as high as 29%, Bloomberg said, citing a person with knowledge of the remarks.
Fink suggested that the pandemic could elevate people's concerns about public transport, hitting industries such as airlines. His fellow CEOs aren't planning any international travel this year as far as he knows, he added.
Restaurants could struggle to attract enough customers to stay afloat if social-distancing measures continue, Fink said. Mass unemployment and economic disruption could also fuel nationalism and heighten geopolitical tensions, he added.
Given the pain to come, Fink questioned whether the Federal Reserve should provide more economic support. He also warned that the government may have to raise taxes to repay the trillions of dollars it spends rescuing ailing sectors, Bloomberg reported.
Fink's negative outlook strikes a contrast with the recent performance of the US stock market. Both the Dow Jones Industrial Average and the S&P 500 recently completed their best months since 1987.
BlackRock did not immediately respond to requests for comment from Business Insider.
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