The world’s largest asset manager Blackrock has recommended to the European Central Bank (ECB) to buy shares. With such a step, the monetary authorities could boost the economy in Europe.
This said Blackrock boss Larry Fink on Friday (local time). European stocks are significantly cheaper than their US counterparts because Europe does not have a “stock culture.” Further monetary policy easing with negative interest rates is unlikely to have the same effect as stock buying, it said.
Blackrock statements have a significant impact on financial markets. Earlier, the “Spiegel” had previously reported regarding central bank circles that ECB President Mario Draghi wants to resume the bond purchases of the Euro Bank. By November, he plans to restart the controversial acquisition of government bonds to support the economy. Besides, the ECB leadership is considering raising the penalty rate for banks, which they have to pay if they park excess money with the central bank.
Source: awp / sda / reu / marketscreener
Rowan Sinclair born and raised in NYC. She has written for Billboard, The Prague Post, and Passport Magazine. In regards to academics, Rowan earned his BBA from NYU. Rowan covers business and economy stories here at The Ticker Times.
Location: 1304 6th Ave, Seattle, WA 98104, USA