BlackRock CEO: Russia's war in Ukraine puts an end to era of globalization
Larry Fink, the CEO and founder of the largest asset management firm on the planet, says the era he helped build is effectively over.
- What's he's saying: "The Russian invasion of Ukraine has put an end to the globalization we have experienced over the last three decades," Fink writes in his annual letter to shareholders of BlackRock, published today.
Why it matters: Fink is echoing what's quickly become the conventional wisdom: That the economic disruptions put in motion by Russia's unprecedented act of war, coming on top of pandemic supply chain upheaval, have essentially killed off the economic world order established at the end of the Cold War.
- The war marks "a turning point in the world order of geopolitics, macro-economic trends, and capital markets," he writes.
The big picture: After decades of outsourcing manufacturing around the world, companies and governments are looking at ways to shield themselves from big global disruptions by making more stuff domestically.
- Or, as Fink put it, "re-evaluate their dependencies and re-analyze their manufacturing and assembly footprints."
- In the long term, the war will also help accelerate the transition to green energy — though there will be a lot of brown energy in the short term, he writes.