Politics

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

Published

3 years ago

January 18, 2022

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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Politics

RFK Jr. says Trump would push to remove fluoride from drinking water. ‘It’s possible,’ Trump says

Published

20 hours ago

November 4, 2024

Anne Joseph

PHOENIX (AP) — Robert F. Kennedy Jr., a prominent proponent of debunked public health claims whom Donald Trump has promised to put in charge of health initiatives, said Saturday that Trump would push to remove fluoride from drinking water on his first day in office if elected president.

Fluoride strengthens teeth and reduces cavities by replacing minerals lost during normal wear and tear, according to the U.S. Centers for Disease Control and Prevention. The addition of low levels of fluoride to drinking water has long been considered one of the greatest public health achievements of the last century.

Kennedy made the declaration Saturday on the social media platform X alongside a variety of claims about the heath effects of fluoride.

“On January 20, the Trump White House will advise all U.S. water systems to remove fluoride from public water,” Kennedy wrote. Trump and his wife, Melania Trump, “want to Make America Healthy Again,” he added, repeating a phrase Trump often uses and links to Kennedy.

Trump told NBC News on Sunday that he had not spoken to Kennedy about fluoride yet, “but it sounds OK to me. You know it’s possible.”

The former president declined to say whether he would seek a Cabinet role for Kennedy, a job that would require Senate confirmation, but added, “He’s going to have a big role in the administration.”

Asked whether banning certain vaccines would be on the table, Trump said he would talk to Kennedy and others about that. Trump described Kennedy as “a very talented guy and has strong views.”

The sudden and unexpected weekend social media post evoked the chaotic policymaking that defined Trump’s White House tenure, when he would issue policy declarations on Twitter at virtually all hours. It also underscored the concerns many experts have about Kennedy, who has long promoted debunked theories about vaccine safety, having influence over U.S. public health.

In 1950, federal officials endorsed water fluoridation to prevent tooth decay, and continued to promote it even after fluoride toothpaste brands hit the market several years later. Though fluoride can come from a number of sources, drinking water is the main source for Americans, researchers say.

Officials lowered their recommendation for drinking water fluoride levels in 2015 to address a tooth condition called fluorosis, that can cause splotches on teeth and was becoming more common in U.S. kids.

In August, a federal agency determined “with moderate confidence” that there is a link between higher levels of fluoride exposure and lower IQ in kids. The National Toxicology Program based its conclusion on studies involving fluoride levels at about twice the recommended limit for drinking water.

A federal judge later cited that study in ordering the U.S. Environmental Protection Agency to further regulate fluoride in drinking water. U.S. District Judge Edward Chen cautioned that it’s not certain that the amount of fluoride typically added to water is causing lower IQ in kids, but he concluded that mounting research points to an unreasonable risk that it could be. He ordered the EPA to take steps to lower that risk, but didn’t say what those measures should be.

In his X post Saturday, Kennedy tagged Michael Connett, the lead attorney representing the plaintiff in that lawsuit, the environmental advocacy group Food & Water Watch.

Kennedy’s anti-vaccine organization has a lawsuit pending against news organizations including The Associated Press, accusing them of violating antitrust laws by taking action to identify misinformation, including about COVID-19 and COVID-19 vaccines. Kennedy is on leave from the group but is listed as one of its attorneys in the lawsuit.

What role Kennedy might hold if Trump wins on Tuesday remains unclear. Kennedy recently told NewsNation that Trump asked him to “reorganize” agencies including the U.S. Centers for Disease Control and Prevention, the National Institutes of Health, the Food and Drug Administration and some agencies under the Department of Agriculture.

But for now, the former independent presidential candidate has become one of Trump’s top surrogates. Trump frequently mentions having the support of Kennedy, a scion of a Democratic dynasty and the son of former Attorney General Robert Kennedy and nephew of President John F. Kennedy.

Kennedy traveled with Trump Friday and spoke at his rallies in Michigan and Wisconsin.

Trump said Saturday that he told Kennedy: “You can work on food, you can work on anything you want” except oil policy.

“He wants health, he wants women’s health, he wants men’s health, he wants kids, he wants everything,” Trump added.

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Politics

Danielle Smith receives overwhelming support at United Conservative Party convention

Published

20 hours ago

November 4, 2024

Anne Joseph

Danielle Smith receives overwhelming support at United Conservative Party convention

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Politics

America’s Election: What it Means to Canadians

Published

3 days ago

November 2, 2024

Steven Kaszab

Americans and Canadians are cousins that is true. Allies today but long ago people were at loggerheads mostly because of the British Empire and American ambitions.

Canadians appreciate our cousins down south enough to visit them many millions of times over the year. America is Canada’s largest and most important trading partner. As a manufacturer, I can attest to this personally. My American clients have allowed our firm to grow and prosper over the past few decades. There is a problem we have been seeing, a problem where nationalism, both political and economic has been creating a roadblock to our trade relationship.

Both Democrats and Republicans have shown a willingness to play the “buy only American Made product” card, a sounding board for all things isolationist, nationalistic and small-mindedness. We all live on this small planet, and purchase items made from all over the world. Preferences as to what to buy and where it is made are personal choices, never should they become a platform of national pride and thuggery. This has brought fear into the hearts of many Canadians who manufacture for and service the American Economy in some way. This fear will be apparent when the election is over next week.

Canadians are not enemies of America, but allies and friends with a long tradition of supporting our cousins back when bad sh*t happens. We have had enough of the American claim that they want free trade, only to realize that they do so long as it is to their benefit. Tariffs, and undue regulations applied to exporters into America are applied, yet American industry complains when other nations do the very same to them. Seriously! Democrats have said they would place a preference upon doing business with American firms before foreign ones, and Republicans wish to tariff many foreign nations into oblivion. Rhetoric perhaps, but we need to take these threats seriously. As to you the repercussions that will come should America close its doors to us.

Tit for tat neighbors. Tariff for tariff, true selfish competition with no fear of the American Giant. Do you want to build homes in America? Over 33% of all wood comes from Canada. Tit for tat. Canada’s mineral wealth can be sold to others and place preference upon the highest bidder always. You know who will win there don’t you America, the deep-pocketed Chinese.

Reshaping our alliances with others. If America responds as has been threatened, Canadians will find ways to entertain themselves elsewhere. Imagine no Canadian dollars flowing into the Northern States, Florida or California? The Big Apple without its friendly Maple Syrup dip. Canadians will realize just how significant their spending is to America and use it to our benefit, not theirs.

Clearly we will know if you prefer Canadian friendship to Donald Trumps Bravado.

China, Saudi Arabia & Russia are not your friends in America. Canada, Japan, Taiwan the EU and many other nations most definitely are. Stop playing politics, and carry out business in an unethical fashion. Treat allies as they should be treated.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca