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BlackRock chief: Europe’s growth potential ‘locked up’ since financial crisis


BlackRock chief executive Larry Fink has said that economic growth in Europe has been “locked up” since the financial crisis because the trading block’s capital markets are underdeveloped.

Fink told Frankfurt’s Deutsche Börse that the economy had been held back by “excessive reliance” on banks and insurers for investment.

Issues with accessing bond and equity markets had “stifled economic recovery,” Fink argued.

“In the years since the crisis, much of Europe’s economic potential has been locked up. Strengthening capital markets and retirement systems can help unlock that potential, and doing so will be vital to Europe’s economic future,” the Financial Times quotes Fink as saying.

Bank lending accounts for around 70 per cent of funding to European companies, while Fink said that varying insolvency laws across the EU made bond markets more complicated.

He said: “The lack of a unified European corporate bond market raises costs for companies, deters investors and holds down liquidity.”

However, Fink warned against stifling the ability of insurers to lend too soon before capital markets had matured through regulations such as Solvency II.

“While a long-term objective is greater funding from capital markets, limiting insurance companies’ capacity for investment before capital markets are fully developed could significantly damage growth.”


EU policymakers blamed for Priips delay

The Association for Investment Companies has attacked the ineffectiveness of EU policymakers on fund regulations such as Priips, urging the UK Government to set its own rules once out of the European Union. The trade body says there are “potential benefits” for the UK to be solely in charge of its own rules around funds. […]


PRA set for oversight of Solvency II capital discounts

The Government has proposed allowing the Prudential Regulation Authority to approve liabilities insurers feel are less exposed to market volatility and so require less capital to be held against them. Introduced as part of Solvency II, the “volatility adjustment” mechanism is intended to reduce the capital required to be held against those liabilities that are […]

Pressure mounts on EU to ditch £450bn Solvency II pension plans

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Rayner Spencer Mills: Why we rate the Artemis US Select Fund

Ken Rayner and Graham O¹Neill from RSM explain why they rate the fund, its investment process and how it can be used in a portfolio The Artemis US Select Fund became a RSM ‘rated’ fund earlier this year. In this video, Ken Rayner and Graham O’Neill explain the fund’s investment approach, why they rate it, […]


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