Beauty market

BlackRock CEO Larry Fink Cares About Money, Not ‘Woke’ Politics

Fink’s insistence that companies disclose more of their climate plans and think seriously about their role in society has helped change what is expected of American companies.

His opinions have also drawn criticism. Some on the political right say Fink goes too far in telling companies to be socially and environmentally conscious. Others on the left say he doesn’t go far enough.

The pressure for companies to reevaluate their priorities “is not about politics”, he said.

“It’s not a social or ideological program. It’s not ‘woke,'” Fink wrote. “It’s capitalism.”

Fink said companies must set short, medium and long-term goals to reduce greenhouse gas emissions because it is “essential to the long-term economic interests” of shareholders.

He also said it’s crucial for leaders to take a stand on issues that matter to employees and customers.

“It has never been more essential for CEOs to have a consistent voice, a clear purpose, a consistent strategy and a long-term vision,” Fink wrote. “The purpose of your business is its North Star in this tumultuous environment.”

Fink said BlackRock is not advocating widespread divestment from oil and gas companies as some companies in the sector are making changes that will be key to achieving net-zero emissions. Additionally, “governments and businesses must ensure that people continue to have access to reliable and affordable sources of energy,” he added.

“Any plan that focuses solely on limiting supply and failing to meet demand for hydrocarbons will drive up energy prices for those who can least afford it, leading to greater polarization around change. climate and an erosion of progress,” Fink said.

Why it matters: BlackRock is the world’s largest fund manager, ending last year with more than $10 trillion under management. This means that the company has enormous influence over how billions of dollars are allocated and can influence other companies when setting policies.

BlackRock’s commitment to net zero emissions by 2050 and social business priorities has been significant. But Fink’s position that corporations must both step up and “cannot be climate police” is likely to continue to draw criticism from across the political spectrum.

One last thing: Fink also touched on the changing relationship between employers and employees as the rate of worker quits hits an all-time high in the United States.

“Companies that don’t adapt to this new reality and respond to their workers do so at their peril,” he said. “Top line drives up expenses, drives down productivity, and erodes corporate culture and memory. CEOs need to ask themselves if they are creating an environment that helps them compete for talent.”

Stocks fall as benchmark US Treasury yield hits 2-year high

The yield on the benchmark 10-year U.S. Treasury rose to its highest level in two years early on Tuesday, rattling investors who were already nervous about how policymakers will react to high inflation.

The latest: U.S. stock futures were down sharply in premarket trading as Wall Street watched bond market turmoil.

Government bond yields, which move opposite to prices, have risen significantly since the start of the year as investors brace for the Federal Reserve to react more aggressively to soaring consumer prices. growing at the fastest rate in nearly four decades.

Fed officials have indicated in recent days that they would be prepared to raise interest rates more than three times this year if necessary. While borrowing costs would remain near historic lows, this would mark a noticeable change after a long period of low rates.

In a Deutsche Bank survey of about 500 market participants released on Tuesday, higher-than-expected inflation and a more aggressive Fed tightening cycle were identified as the two biggest risks to market stability.

The VIX, a measure of US market volatility, rose nearly 13% this morning to its highest level since the start of the year.

Over the weekend, billionaire investor Bill Ackman recommended on Twitter that the Fed initially raise rates by 0.5% instead of 0.25% as planned to “restore credibility” and “demonstrate resolve.” on inflation”.

“The Fed is losing the battle against inflation and is behind where it needs to be, with painful economic consequences for the most vulnerable,” Ackman said.

Ben & Jerry’s, meet Aquafresh and Advil

Unilever (UL) is ready to pay big bucks for the company that makes products like Advil toothpaste, Tums and Aquafresh as it tries to revive its sluggish stock and focus more on health products.
GlaxoSmithKline (GLAXF) said over the weekend it had received three “unsolicited” proposals from Unilever to acquire its consumer healthcare business, which it runs as a joint venture with Pfizer. The latest had a price tag of £50 billion ($68 billion).

Not yet agreed: GSK rejected offers deemed too low. He plans to spin off the division later this year, under pressure from shareholders including hedge fund Elliott Investment Management.

Unilever could further sweeten its offer. The company said on Monday it was pursuing a strategic overhaul that would involve expanding its portfolio of health, beauty and hygiene products. More details will be announced by the end of the month.

But investors aren’t thrilled with the idea. Shares of Unilever fell 7% in London on Monday and fell another 2% in early trading on Tuesday.

On the radar: Berenberg analysts said Unilever should be careful not to shy away from its food and beverage business, which they say “actually offers some of Unilever’s most attractive categories,” such as as ice cream and cooking ingredients.

Following

BNY Mellon, Goldman Sachs (GS), ANC (ANC) and Truist (TFC) publish the results before the opening of the American markets. JB Hunt follows after the close.

Also today :

  • The Empire State Manufacturing Index displays at 8:30 a.m. ET.
  • The NAHB Housing Market Index follows at 10 a.m. ET.
Coming tomorrow: income from Bank of America (BAC), Morgan Stanley (MRS), Procter & Gamble (PG) and United Airlines (LAU).