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BlackRock cares about money, not 'woke' politics – CNN

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A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.

London (CNN Business)Every year, BlackRock (BLK) CEO Larry Fink, one of the most powerful people in global finance, pens a letter to chief executives that’s required reading for business leaders.

Fink’s insistence that companies need to disclose more about their climate plans and seriously consider their role in society has helped change what’s expected of Corporate America.
His views have also drawn criticism. Some on the political right claim Fink goes too far in telling businesses to be socially and environmentally conscious. Others on the left say he isn’t going far enough.
In his latest letter to CEOs published Tuesday, Fink has issued a response that amounts to: I’m just a capitalist.
The push for companies to reassess their priorities is “not about politics,” he said.
“It is not a social or ideological agenda. It is not ‘woke,'” Fink wrote. “It is capitalism.”
Fink said companies need to set short, medium and long-term targets to reduce greenhouse gas emissions because doing so is “critical to the long-term economic interests” of shareholders.
He also said it’s crucial that leaders take a stand on issues important to employees and customers.
“It’s never been more essential for CEOs to have a consistent voice, a clear purpose, a coherent strategy and a long-term view,” Fink wrote. “Your company’s purpose is its north star in this tumultuous environment.”
Fink said that BlackRock does not advocate for widespread divestment from oil and gas companies, since there are firms in the industry making changes that will be essential to achieve net-zero emissions. Plus, “governments and companies must ensure that people continue to have access to reliable and affordable energy sources,” he added.
“Any plan that focuses solely on limiting supply and fails to address demand for hydrocarbons will drive up energy prices for those who can least afford it, resulting in greater polarization around climate change and eroding progress,” Fink said.
Why it matters: BlackRock is the world’s biggest money manager, ending last year with more than $10 trillion under management. That means the company has huge influence over how billions of dollars are allocated, and can sway other firms as they set policy.
BlackRock’s commitment to net-zero emissions by 2050 and socially-minded business priorities has been important. But Fink’s stance that companies both need to step up and “cannot be the climate police” is set to continue to draw critics from across the political spectrum.
One more thing: Fink also addressed the changing relationship between employers and employees as the rate of workers quitting their jobs stands at a record high in the United States.
“Companies not adjusting to this new reality and responding to their workers do so at their own peril,” he said. “Turnover drives up expenses, drives down productivity and erodes culture and corporate memory. CEOs need to be asking themselves whether 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 US Treasury note jumped to its highest level in two years early Tuesday, rattling investors who were already on edge about how policymakers will respond to high inflation.
The latest: US stock futures were sharply lower in premarket trading as Wall Street eyed the turbulence in the bond market.
Government bond yields, which move opposite prices, have risen dramatically since the start of the year as investors brace for the Federal Reserve to respond more aggressively to the spike in consumer prices, which are rising at the fastest pace in nearly four decades.
Fed officials have indicated in recent days that they’d be willing to hike interest rates more than three times this year if needed. While borrowing costs would remain near historic lows, that would mark a notable shift after a long period of rock-bottom rates.
In a Deutsche Bank survey of roughly 500 market participants published Tuesday, higher-than-expected inflation and a more hawkish Fed tightening cycle were identified as the two biggest risks to market stability.
The VIX, a measure of US market volatility, rose almost 13% this morning to its highest level so far this year.
Over the weekend, billionaire investor Bill Ackman recommended on Twitter that the Fed initially hike rates by 0.5% instead of by 0.25% as expected in order to “restore its credibility” and “demonstrate its resolve on inflation.”
“The Fed is losing the inflation battle 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 willing to pay big money for the company that makes products like Advil, Tums and Aquafresh toothpaste as it tries to revive its sluggish stock and ramp up its focus on health products.
GlaxoSmithKline (GLAXF) said over the weekend that 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).
No deal yet: GSK has rejected the offers, which it said were too low. It’s planning to spin off the division later this year, under pressure from shareholders including hedge fund Elliott Investment Management.
Unilever could still sweeten its bid. The company said Monday that it’s 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 about the idea. Unilever’s shares fell 7% in London on Monday and are down another 2% in early trading on Tuesday.
On the radar: Analysts at Berenberg said that Unilever should be careful about pivoting away from its food and drink business, which they said “actually offers some of Unilever’s most attractive categories,” such as ice cream and cooking ingredients.

Up next

BNY Mellon, Goldman Sachs (GS), PNC (PNC) and Truist (TFC) report results before US markets open. J.B. Hunt follows after the close.
Also today:
  • The Empire State Manufacturing Index posts at 8:30 a.m. ET.
  • The NAHB Housing Market Index follows at 10 a.m. ET.
Coming tomorrow: Earnings from Bank of America (BAC), Morgan Stanley (MS), Procter & Gamble (PG) and United Airlines (UAL).

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Political parties cool to idea of new federal regulations for nomination contests

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OTTAWA – Several federal political parties are expressing reservations about the prospect of fresh regulations to prevent foreign meddlers from tainting their candidate nomination processes.

Elections Canada has suggested possible changes to safeguard nominations, including barring non-citizens from helping choose candidates, requiring parties to publish contest rules and explicitly outlawing behaviour such as voting more than once.

However, representatives of the Bloc Québécois, Green Party and NDP have told a federal commission of inquiry into foreign interference that such changes may be unwelcome, difficult to implement or counterproductive.

The Canada Elections Act currently provides for limited regulation of federal nomination races and contestants.

For instance, only contestants who accept $1,000 in contributions or incur $1,000 in expenses have to file a financial return. In addition, the act does not include specific obligations concerning candidacy, voting, counting or results reporting other than the identity of the successful nominee.

A report released in June by the National Security and Intelligence Committee of Parliamentarians expressed concern about how easily foreign actors can take advantage of loopholes and vulnerabilities to support preferred candidates.

Lucy Watson, national director of the NDP, told the inquiry Thursday she had concerns about the way in which new legislation would interact with the internal decision-making of the party.

“We are very proud of the fact that our members play such a significant role in shaping the internal policies and procedures and infrastructure of the party, and I would not want to see that lost,” she said.

“There are guidelines, there are best practices that we would welcome, but if we were to talk about legal requirements and legislation, that’s something I would have to take away and put further thought into, and have discussions with folks who are integral to the party’s governance.”

In an August interview with the commission of inquiry, Bloc Québécois executive director Mathieu Desquilbet said the party would be opposed to any external body monitoring nomination and leadership contest rules.

A summary tabled Thursday says Desquilbet expressed doubts about the appropriateness of requiring nomination candidates to file a full financial report with Elections Canada, saying the agency’s existing regulatory framework and the Bloc’s internal rules on the matter are sufficient.

Green Party representatives Jon Irwin and Robin Marty told the inquiry in an August interview it would not be realistic for an external body, like Elections Canada, to administer nomination or leadership contests as the resources required would exceed the federal agency’s capacity.

A summary of the interview says Irwin and Marty “also did not believe that rules violations could effectively be investigated by an external body like the Office of the Commissioner of Canada Elections.”

“The types of complaints that get raised during nomination contests can be highly personal, politically driven, and could overwhelm an external body.”

Marty, national campaign director for the party, told the inquiry Thursday that more reporting requirements would also place an administrative burden on volunteers and riding workers.

In addition, he said that disclosing the vote tally of a nomination contest could actually help foreign meddlers by flagging the precise number of ballots needed for a candidate to be chosen.

Irwin, interim executive director of the Greens, said the ideal tactic for a foreign country would be working to get someone in a “position of power” within a Canadian political party.

He said “the bad guys are always a step ahead” when it comes to meddling in the Canadian political process.

In May, David Vigneault, director of the Canadian Security Intelligence Service at the time, said it was very clear from the design of popular social media app TikTok that data gleaned from its users is available to the Chinese government.

A December 2022 CSIS memo tabled at the inquiry Thursday said TikTok “has the potential to be exploited” by Beijing to “bolster its influence and power overseas, including in Canada.”

Asked about the app, Marty told the inquiry the Greens would benefit from more “direction and guidance,” given the party’s lack of resources to address such things.

Representatives of the Liberal and Conservative parties are slated to appear at the inquiry Friday, while chief electoral officer Stéphane Perrault is to testify at a later date.

After her party representatives appeared Thursday, Green Leader Elizabeth May told reporters it was important for all party leaders to work together to come up with acceptable rules.

This report by The Canadian Press was first published Sept. 19, 2024.

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New Brunswick election candidate profile: Green Party Leader David Coon

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FREDERICTON – A look at David Coon, leader of the Green Party of New Brunswick:

Born: Oct. 28, 1956.

Early years: Born in Toronto and raised in Montreal, he spent about three decades as an environmental advocate.

Education: A trained biologist, he graduated with a bachelor of science from McGill University in Montreal in 1978.

Family: He and his wife Janice Harvey have two daughters, Caroline and Laura.

Before politics: Worked as an environmental educator, organizer, activist and manager for 33 years, mainly with the Conservation Council of New Brunswick.

Politics: Joined the Green Party of Canada in May 2006 and was elected leader of the New Brunswick Green Party in September 2012. Won a seat in the legislature in 2014 — a first for the province’s Greens.

Quote: “It was despicable. He’s clearly decided to take the low road in this campaign, to adopt some Trump-lite fearmongering.” — David Coon on Sept. 12, 2024, reacting to Blaine Higgs’s claim that the federal government had decided to send 4,600 asylum seekers to New Brunswick.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press. All rights reserved.

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New Brunswick election profile: Progressive Conservative Leader Blaine Higgs

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FREDERICTON – A look at Blaine Higgs, leader of the Progressive Conservative Party of New Brunswick.

Born: March 1, 1954.

Early years: The son of a customs officer, he grew up in Forest City, N.B., near the Canada-U.S. border.

Education: Graduated from the University of New Brunswick with a degree in mechanical engineering in 1977.

Family: Married his high-school sweetheart, Marcia, and settled in Saint John, N.B., where they had four daughters: Lindsey, Laura, Sarah and Rachel.

Before politics: Hired by Irving Oil a week after he graduated from university and was eventually promoted to director of distribution. Worked for 33 years at the company.

Politics: Elected to the legislature in 2010 and later served as finance minister under former Progressive Conservative Premier David Alward. Elected Tory leader in 2016 and has been premier since 2018.

Quote: “I’ve always felt parents should play the main role in raising children. No one is denying gender diversity is real. But we need to figure out how to manage it.” — Blaine Higgs in a year-end interview in 2023, explaining changes to school policies about gender identity.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press. All rights reserved.

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