Merz, let’s not forget, has long represented the interests of some of
the world’s most powerful corporate and financial elites, most notably
as a key representative of BlackRock in Germany between 2016 and 2020.
. . .Germany will become the first country to be
ruled by a former BlackRock official.
But his ties to elite institutions
go back much further: for over two decades, even before joining
BlackRock, he embodied the revolving door between politics, business and
finance.
. . .As Werner Rügemer, author of BlackRock Germany, explains,
at Mayer Brown Merz helped facilitate deals that promoted the interests
of US capital in Germany, encouraging American investors to buy
companies in the Federal Republic.
The result was the sale and
restructuring of thousands of German firms, which involved slashing jobs
and freezing wages — an approach openly praised by Merz in his book Dare to Be More Capitalist.
No
doubt keen to embody his book’s thesis, during this period Merz also
sat on the supervisory and administrative boards of several major
corporations.
And then BlackRock, arguably one of the most powerful
companies to ever exist, came knocking. How could Merz say no?
Pharmaceuticals, entertainment, media and, of course, war — there is
virtually no sector that BlackRock won’t try and profit from.
As trade talks continue, China thinks it has leverage over U.S.
China
returns to trade talks with the U.S. holding, from its view, a strong
hand: Its economy is bearing up better than expected. And it has an ace
card: rare earths.
(REUTERS) The World Bank is the latest body to cut its growth forecast
as a result of Trump's erratic trade policies, although U.S. officials
insist the negative consequences will be offset by a surge in investment
and still-to-be approved tax cuts.
The World Bank has slashed its global growth forecast for 2025 by 0.4
percentage point to 2.3%, saying that higher tariffs and heightened
uncertainty posed a "significant headwind" for nearly all economies.
In its twice-yearly Global Economic Prospects report, the bank
lowered its forecasts for nearly 70% of all economies - including the
United States, China and Europe, and six emerging market regions - from
the levels it projected just six months ago before US President Donald
Trump took office.
The report forecast that global trade would grow by 1.8% in 2025,
down from 3.4% in 2024 and roughly a third of its 5.9% level in the
2000s. The forecast is based on tariffs in effect as of late May,
including a 10% US tariff on imports from most countries. It excludes
increases announced by PresidentTrump in April and then postponed until
July 9 to allow for negotiations.
The bank said global inflation was expected to reach 2.9% in 2025,
remaining above pre-COVID levels, given tariff increases and tight labor
markets.
The
bank stopped short of forecasting a recession, but said global economic
growth this year would be its weakest outside of a recession since
2008.
By 2027, global gross domestic product growth was expected to
average just 2.5%, the slowest pace of any decade since the 1960s.
World Bank slashes global growth forecast as trade tensions bite
World Bank warns of potential global trade collapse amid tariff hikes
Advanced economies' growth forecast lowered, poor countries face prolonged recovery
Global inflation expected to reach 2.9% in 2025, above pre-COVID levels
WASHINGTON,
June 10 (Reuters) - The World Bank on Tuesday slashed its global growth
forecast for 2025 by 0.4 percentage point to 2.3%, saying that higher
tariffs and heightened uncertainty posed a "significant headwind" for
nearly all economies.
In
its twice-yearly Global Economic Prospects report, the bank lowered its
forecasts for nearly 70% of all economies - including the United
States, China and Europe, as well as six emerging market regions - from
the levels it projected just six months ago before U.S. President Donald
Trump took office.
"Uncertainty remains a powerful drag, like fog on a runway. It slows
investment and clouds the outlook,"
---- World Bank Deputy Chief Economist
Ayhan Kose told Reuters in an interview.
But he said there were signs of increased dialogue on trade that
could help dispel uncertainty, and supply chains were adapting to a new
global trade map, not collapsing. Global trade growth could see a modest
rebound in 2026 to 2.4%, and developments in artificial intelligence
could also boost growth, he said.
"We think that eventually the uncertainty will decline," he said.
"Once the type of fog we have lifts, the trade engine may start running
again, but at a slower pace."
Kose said while things could get worse, trade was continuing and
China, India and others were still delivering robust growth. Many
countries were also discussing new trade partnerships that could pay
dividends later, he said.
The World Bank said the global outlook had "deteriorated
substantially" since January, mainly due to advanced economies, now seen
growing by just 1.2%, down half a point, after expanding 1.7% in 2024.
The US forecast was slashed by 0.9 percentage point from its January
forecast to 1.4%, and the 2026 outlook was lowered by 0.4 percentage
point to 1.6%.
Rising trade barriers,"record-high uncertainty" and a spike in
financial market volatility were expected to weigh on private
consumption, trade and investment, it said.
Poor countries would suffer the most, the report said. By 2027
developing economies' per capita GDP would be 6% below pre-pandemic
levels, and it could take these countries - minus China - two decades to
recoup the economic losses of the 2020s.
Mexico, heavily dependent on trade with the U.S., saw its growth forecast cut by 1.3 percentage points to 0.2% in 2025.
The World Bank left its forecast for China unchanged at 4.5% from
January, saying Beijing still had monetary and fiscal space to support
its economy and stimulate growth.
