Where the World’s Most Powerful Meet the World’s Money: World Economic Forum & BlackRock

Covid-19, climate change, and China: the shared focus of the World Economic Forum’s “Great Reset” and BlackRock’s “economic restart.”

Graphic from the World Economic Forum website
  • Schwab says Covid-19 “represents a rare but narrow window of opportunity to reflect, reimagine, and reset our world… .”
  • The WEF embraces what it calls “The Net-Zero Challenge,” which Schwab says “set[s] a target to achieve net-zero greenhouse gas emissions by 2050 or sooner” by spurring on “global climate action.”
  • The WEF emphasizes its cooperation with China. Chinese President Xi Jinping spoke at a WEF virtual meeting calling for “major transformation” and taking advantage of “cooperation opportunities to other countries,” after which Schwab “thanked China for taking an active part in global efforts to combat COVID-19 and to implement the 2030 Agenda for sustainable development.”
Screenshot from BlackRock’s website
Screenshot from BlackRock’s website
  • BlackRock’s Investment Institute published its “2021 midyear outlook” with the subheadline “Looking beyond the restart,” using the term ‘restart’ in the same manner the WEF uses the term ‘reset.’ “The restart of economic activity is real,” the document says, and is “broadening globally.”
  • This restart will be driven by a “revolution” in “historic fiscal and monitary policy,” the document reveals, and will be Covid-19 “vaccine-led.”
  • “The powerful restart of economic activity after the Covid-19 shock is broadening,” reads the document. “A restart is not a traditional business cycle recovery. You can only turn the lights back on once, so to speak. Fiscal stimulus and easy monetary policy have provided a bridge through the pandemic.”
  • BlackRock’s “third theme” is “the journey to net zero,” according to the document. “The path to net-zero carbon emissions has a starting point and potential destination—but there is no clear roadmap yet for getting there,” the document goes on to say. “Some of the coming changes may be abrupt—and add to supply and demand disruptions among commodities. We see opportunities along the way, with private market financing playing a key role.”
  • The BlackRock document also says that one of its major themes is “China stands out,” meaning that the organization believes that “Chinese assets play a key role in our strategic views in an increasingly bifurcated U.S.- China world.” “For the first time, we break out Chinese assets from emerging markets (EM) as distinct tactical allocations,” the document goes on to say. “We believe Beijing’s focus on quality growth should bear fruit, keeping us tactically neutral on Chinese equities but heavily overweight strategically.”
  • “Much is changing in China, and the cost of ignoring this emerging opportunity might prove high, especially over the longer term,” reads BlackRock’s website. “We believe the onshore Chinese equity market is becoming increasingly hard to ignore for investors.”

Jon Fleetwood is Managing Editor for American Faith and author of “An American Revival: Why American Christianity Is Failing & How to Fix It.