UK Pension Moves £28 Billion to Amundi, Invesco Citing ESG
The People's Pension has awarded £20 billion of assets to Amundi to passively invest in developed market equities, while Invesco will take over £8 billion in active fixed income investments, according to a statement Thursday. The mandates were previously overseen by State Street, which is among several Wall Street giants that have quit the Climate Action 100+ coalition that pushes companies to reduce carbon emissions.
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Yahoo
03-08-2025
- Yahoo
Trump Tariffs Stun Swiss Investors Ahead of Monday's Market Open
(Bloomberg) -- Swiss stock investors are bracing for Monday's market reopening after US President Donald Trump slapped a punitive 39% export tariff on the country, among the highest in the world. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival We Should All Be Biking Along the Beach Seeking Relief From Heat and Smog, Cities Follow the Wind NYC Mayor Adams Gives Bally's Bronx Casino Plan a Second Chance Trump's tariff rollout landed on a holiday, Swiss National Day, which means any market fallout will only be felt once trading resumes on Monday. While Trump's fresh tariff salvo left baseline rates unchanged for many of the US's trading partners, some like Canada and Switzerland got hit with significantly higher duties. Switzerland, known for its luxury watches, rich chocolates and banking giants, is one of the US's biggest trade partners. Last year, it exported more than $60 billion of goods to the US, ranging from pharmaceuticals and medical devices to Nespresso coffee. So the 39% tariff rate is likely to roil the market Monday even if some investors cling to the hope that it's just another one of Trump's negotiating ploys. 'Clearly, the Swiss market's first reaction will be negative,' said Andreas Wosol, head of Amundi SA's European equity value strategies. 'But then attention turns to negotiations. This is an announcement where Trump wants a reaction rather than to impose this level of tariff.' On Friday, several US-listed Swiss stocks fell. Shares of the country's biggest bank UBS Group AG slid 1.8% and computer hardware maker Logitech International SA dropped 3.5%. American depositary receipts for Compagnie Financière Richemont SA — owner of luxury maisons like Cartier, Chloé and Van Cleef & Arpels — fell 2.5%. And Watches of Switzerland Group Plc slumped 6.8% in London trading. What stings more is that Switzerland's European Union counterparts were able to secure a 15% tariff rate. That creates a 'competitive disadvantage' for the Swiss, according to a Friday note from authors including Daniel Kalt at UBS Global Wealth Management's Chief Investment Office. Last year, the US accounted for a 19% chunk of Switzerland's goods exports, the authors point out. Their base case is for the two countries to reach a similar tariff deal to the EU. But even then, they say a 15% tariff rate is still sizable compared to before 'Liberation Day,' while the US dollar's depreciation against the Swiss franc makes matters worse for Swiss exporters. For Holger Schmieding, chief economist at Germany's Berenberg, it's all a prelude to negotiations. 'It will be a big shock to the Swiss market initially, but this rate is so high it's more of a strategy to start serious negotiations rather than a final rate, which is likely to be much closer to the EU,' he said. Meanwhile, pharmaceutical heavyweights like Novartis AG and Roche Holding AG are facing additional pressure after Trump sent letters to 17 drugmakers last week, demanding lower prices. US and European peers initially dipped on the news. 'On top of the tariff strategy now comes a full-scale assault on the pricing of branded drugs sold in the U.S.,' wrote Arthur Jurus, Oddo BHF's head of investment office Switzerland. 'Trump is applying unprecedented pressure on drug prices, directly targeting Swiss pharmaceutical giants.' The Swiss Market Index has trailed the Stoxx 600 this year, partly because of its heavy exposure to defensive versus cyclical stocks. On Monday, the Swiss index could see a delayed reaction to its European peers, after the Stoxx 600 slumped 1.9% Friday for its worst day since April, while France's CAC 40, Germany's DAX and Italy's FTSE MIB fell over 2.5%. 'It's hard to tell whether this is the final say — or it's a negotiation tactic,' said Ipek Ozkardeskaya, senior analyst at Swissquote Group Holdings. 'Such tariffs will add additional pressure on Swiss exporters and cause further divergence of the SMI index from major peers.' Here's what other market participants are saying: Andrea Gabellone, head of global equities at KBC Global Securities 'This is hitting practically their core sectors — pharma, watches, chocolate, food. All those have already been hit by skyrocketing raw materials price and now this. So all the stars look misaligned for Swiss companies. The problem is they have a 39% tariff and on top of it, we have to see what happens to the pharma sector which is one of the top three in terms of Swiss exports.' Chris Beauchamp, chief market analyst at IG 'The high levels on Swiss imports mean investors will continue to sell first and ask questions later. No doubt the Swiss will be high-tailing it to Washington for a deal that should bring the level down, but for now the index faces a tough time indeed.' Ozge Brinkworth, healthcare analyst at Rathbones Investment Management, on the drug-pricing request 'The scope of the proposals is reasonably narrow, covering Medicaid products, which make up single digit percentage of sales for most major pharma companies, and new launches. Its implementation is also not straightforward, there has already been pushback from the Congress on Medicaid prices, and the US government's ability to influence drug prices in other countries is likely to be limited. Nevertheless these points do not prevent the continued threat of pricing reform from hurting the sentiment even more for the pharma and life sciences sectors.' --With assistance from Sagarika Jaisinghani, Julien Ponthus, Sujata Rao and Subrat Patnaik. How Podcast-Obsessed Tech Investors Made a New Media Industry Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Russia Builds a New Web Around Kremlin's Handpicked Super App Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts What's Really Behind Those Rosy GDP Numbers? ©2025 Bloomberg L.P. Sign in to access your portfolio
New York Post
01-08-2025
- New York Post
Larry Fink's BlackRock loses bid to dismiss Texas climate collusion claims
A US judge on Friday largely rejected a request by top asset managers including BlackRock to dismiss a lawsuit filed by Texas and 12 other Republican-led states that said the companies violated antitrust law through climate activism that reduced coal production and boosted energy prices. US District Judge Jeremy Kernodle in Tyler, Texas, agreed to dismiss just three of the 21 counts in the states' lawsuit, that also names institutional investors State Street and Vanguard. The lawsuit is among the highest-profile cases targeting efforts to promote environmental, social and governance goals. Advertisement Texas and 12 other Republican-led states accused BlackRock, State Street and Vanguard of violating antitrust law through climate activism that reduced coal production and boosted energy prices. BlackRock CEO Larry Fink, above. AP Representatives for the companies did not immediately respond to requests for comment. The ruling by Kernodle, who was appointed by President Trump, means the states can move forward with their claims that the asset managers violated US antitrust law by joining Climate Action 100+, an investor initiative to take action to combat climate change, and used their shareholder advocacy in furtherance of its goals. Advertisement The companies have denied wrongdoing and called the case 'half-baked.' But the states' theories garnered support from Trump-appointed antitrust enforcers at the Department of Justice and Federal Trade Commission. The outcome of the lawsuit could have major implications for how the companies, which together manage some $27 trillion, approach their holdings and passive funds. AP The outcome of the lawsuit could have major implications for how the companies, which together manage some $27 trillion, approach their holdings and passive funds. One possible remedy sought by the plaintiffs would be for the fund firms to divest holdings in coal companies, which BlackRock has said would harm the companies' access to capital and likely raise energy prices.
New York Post
29-07-2025
- New York Post
21 states warn JPMorgan's Jamie Dimon, BlackRock's Larry Fink to scrap ‘woke' environmental goals
Nearly two dozen states on Tuesday warned CEOs of the nation's largest financial firms – including BlackRock's Larry Fink and JPMorgan's Jamie Dimon – to scrap 'woke investing' programs focused on environmental goals if they want to continue doing business in their states. Letters signed by 26 state financial officers hit the desks of top bosses at BNY Mellon, Goldman Sachs, Morgan Stanley, Fidelity Investments, State Street and Vanguard. State officials ordered these firms to take five concrete actions to demonstrate their 'commitment to a fiduciary model grounded in financial integrity, not political advocacy.' 3 Larry Fink, chairman and CEO of BlackRock, the world's largest asset manager. REUTERS Among these steps is a commitment to abstain from 'international political agendas' like net-zero climate mandates or the EU's Corporate Sustainability Directive, which requires companies to regularly publish reports on the environmental and social risks they face. In the letters, leaders of red states slammed the erosion of 'traditional fiduciary duty' in favor of ESG investing, or the environmental, social and governance goals of financial firms. 'While some firms have recently taken encouraging steps, such as withdrawing from global climate coalitions and scaling back ESG rhetoric and proxy votes, and some states have permitted incremental reintegration, more work must be done,' officials said in a copy of the letter obtained by The Post. 'Our responsibility is to ensure public assets are managed in the best financial interest of beneficiaries and taxpayers. We expect detailed evidence that your firm's investment practices, proxy voting and corporate engagement behavior…align with traditional fiduciary standards.' 3 Texas last month removed BlackRock from its blacklist. REUTERS Officials from 21 states – including Alabama, Arizona, Iowa, Nebraska, Oklahoma, Pennsylvania and Utah – demanded that CEOs respond to the letter's demands by September 1. Some states have more than one official represented on the letters. The letters come after Texas last month removed BlackRock, the world's largest asset manager, from its blacklist. For nearly three years, BlackRock was banned from doing business with Texas state pension and investment funds, which hold an estimated $50 billion in assets, over its climate policies. BlackRock earlier this year rolled back some of its environmental goals, exiting the Climate Action 100+ investor group and withdrawing from the Net Zero Asset Managers initiative. 3 JPMorgan Chase CEO Jamie Dimon speaks during the Global Markets Conference in Paris, France in May. via REUTERS The company, however, is still engaging in some practices that seek to restrict fossil fuel output, according to a report from the American Energy Institute and Consumers' Research, a conservative nonprofit. While Texas may have let up the pressure on BlackRock, these 21 states are doubling down on calls for financial firms to eradicate ESG goals. 'Requiring America's financial giants to prove their independence from woke ideology with concrete steps before doing business with a state's dollars is fully necessary and just makes sense,' OJ Oleka, CEO of State Financial Officers Foundation, said in a statement. 'For too long, firms like BlackRock have followed the ESG gospel to the legal breaking point of violating their traditional fiduciary duty and putting Americans' retirement savings at risk.'
