Barclays Europe CEO on what Trump's tariffs could do to the EU economy
The CEO of Barclays Europe shares his views on the potential impact of tariffs on Europe's economy and whether the continent is still economically attractive to investors.
READ MORE : http://www.euronews.com/2025/03/19/barclays-europe-ceo-on-what-trumps-tariffs-could-do-to-the-eu-economy
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The CEO of Barclays Europe shares his views on the potential impact of tariffs on Europe's economy and whether the continent is still economically attractive to investors.
READ MORE : http://www.euronews.com/2025/03/19/barclays-europe-ceo-on-what-trumps-tariffs-could-do-to-the-eu-economy
Subscribe to our channel. Euronews is available on Dailymotion in 12 languages
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00:00The CEO of Barclays Europe has weighed in on Europe's economic attractiveness amid concerns
00:05over tariffs and global competition.
00:07His comments come as Germany's parliament this week approved a reform of its debt break
00:11proposed by Chancellor-in-Waiting Friedrich Merz.
00:16Attractiveness is inherently a relative concept and investors and the global capital that
00:22they represent have choices and where they apply their capital ultimately expresses that
00:28choice of relative attractiveness.
00:31So I think what we've seen in the year-to-date period is clearly a compression in the U.S.
00:40stock market, for example, and an increase in the indices that I look at for the European
00:47stock market.
00:48That tells you something.
00:50According to a recent report from Morgan Stanley, European equities have this year outperformed
00:54U.S. stocks by the widest margins since the year 2000.
00:58The MSCI Europe index has risen over 9 percent since January, beating the S&P slide of 4.5
01:03percent.
01:04CEO Cesato also warned of a possible recession that could be triggered by the situation in
01:10the U.S.
01:11At the end of the day, the euro area has roughly 480 billion euros of goods exports to the
01:19U.S.
01:20Now, at the moment, the latest models that our research team have looked at are relatively
01:29mild in terms of the tariff assumption that's being made, but were there to be a 25 percent
01:35tariff on all of those goods, that could actually tip the eurozone into recession.
01:42Finally, on improving Europe's competitiveness, Barclay's CEO highlighted the need for deeper
01:47capital pools, advocating to pair institutional firepower with private capital to address
01:52major challenges, noting that relying solely on retail investments would be insufficient.