BlackRock Favors European Government Bonds Over US

BlackRock Global Chief Investment Strategist Wei Li discusses markets as European bonds fell and shares in defense companies rallied on the likelyhood of greater military spending. Speaking on Bloomberg Television, Li says higher defense spending in Europe “doesn’t necessarily mean yields will be a lot higher.” She also comments on potential policy divergence between central banks, saying the European Central Bank has “more room” to cut interest rates in comparison to the Federal Reserve. (Source: Bloomberg)