Fink Warns of Rising Anxiety

FINANCE
Fink Warns of Rising Anxiety

On Monday, as markets stumbled, BlackRock CEO Larry Fink published his annual letter, revealing widespread concern about the economy. Fink said nearly every client and leader he speaks to is anxious—more so than at any time in recent memory. The main driver? Mounting uncertainty over President Trump’s unpredictable tariff policies.

Markets reflected that anxiety. The S&P 500 dropped 0.75%, the Nasdaq fell 1.82%, and recession fears grew as Wall Street downgraded economic forecasts. Goldman Sachs raised its recession odds to 35%, while Deutsche Bank called it a 50/50 shot. The Federal Reserve also cut its GDP forecast from 2.1% to 1.7%, citing shifting trade policy as a key concern.

Trump’s erratic use of tariffs—often imposed, retracted, and aimed at allies—has made it difficult for investors and businesses to plan. A recent 25% tariff on the auto sector, along with new country-specific duties, has raised fears of higher consumer prices and reduced investment. Many companies still don’t know which goods will be affected, making it hard to assess supply chain risks.

Fink acknowledged that uncertainty is causing many businesses to pause. But despite the growing unease, his letter ended on an optimistic note, highlighting the resilience of capital markets over centuries. “Markets were designed to overcome contradictions like scarcity amid abundance, and anxiety amid prosperity,” he wrote.

Still, Wall Street remains cautious, watching closely as Trump prepares another major tariff announcement set for April 2—a move that could further test market and economic stability.

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FINANCE
Volvo Brings Back Former CEO

Volvo Car AB has reinstated former CEO Hakan Samuelsson to lead the company through a challenging period marked by falling EV demand and escalating U.S. tariffs. Samuelsson, 74, who previously led Volvo for a decade until 2022, will replace Jim Rowan on April 1 for a two-year term while the board searches for a long-term successor.

Volvo has been hit hard by President Trump’s 25% auto tariffs, particularly as the automaker still exports a large portion of its vehicles from Europe to the U.S., despite having a factory in South Carolina. Its stock is down roughly 48% over the past year, though shares rose 1.2% Monday morning in Stockholm.

Controlled by China’s Geely, Volvo has warned it may struggle to match last year’s performance and is now focusing on cutting costs and protecting cash. The company is also relocating production of its EX30 EV from China to Belgium to avoid EU tariffs.

Rowan had scaled back Volvo’s EV-only ambitions, opting to continue producing hybrids. Samuelsson’s return is seen as a stabilizing move, with Volvo highlighting his deep industrial experience and proven leadership. He will also be nominated to join the board at Thursday’s shareholder meeting in Gothenburg.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.