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2 days ago
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Texas allows state agency investment in BlackRock after firm steps away from climate initiatives
The Texas Comptroller's office removed international investment giant BlackRock Inc. from a list of companies public agencies were required to divest from as the company has realigned with state law by withdrawing from key clean energy initiatives. Senate Bill 13, passed in 2021, requires the comptroller's office to maintain a list of financial firms that 'boycott' the fossil fuel industry, and included BlackRock, several other companies and roughly 350 investment funds before Tuesday's update. Texas Comptroller Glenn Hegar called the removal of BlackRock and over a dozen investment funds a 'meaningful victory' for Texas' energy economy but clarified in a statement that the list or divestment proceedings were not done to intentionally target companies. 'We never set out to punish any of these firms, and the hope was always that any firm we included on the list would eventually take steps to ensure they were removed,' Hegar said. SB 13 defines boycotting as refusing, terminating or penalizing business with a company that works in the fossil fuel industry 'without ordinary business purpose.' Known as an 'anti-ESG (environment, social and governance) law,' the bill led the Teacher Retirement System of Texas and the Texas Permanent School Fund to divest billions from BlackRock in 2023 and 2024. The firm was placed on the initial list in 2022 for its involvement in initiatives like Climate Action 100+, which aims to reduce corporate greenhouse gas emissions. Direct investment into fossil fuel companies does not preclude firms from being considered as boycotting, according to an information sheet from the state comptroller's office. BlackRock has since stepped back from Climate Action 100+ and completely removed itself from another initiative, Net Zero Asset Managers, which the comptroller's office attributed to the company's removal. In a statement to the Texas Tribune, John Kelly, BlackRock global head of corporate affairs, said they appreciated the comptroller's resolution and touted the firm's investment in other state affairs. 'BlackRock is proud to help millions of Texans retire with dignity and, on behalf of clients, invests over $400 billion in corporations, local governments, energy infrastructure and other private assets throughout the state,' Kelly said. 'These investments support the continued growth of the Texas economy.' Among the firm's in-state investments is assistance in creating a Texas-based Stock Exchange, which aims to launch in February 2026 with a boost from new legislation signed by Gov. Greg Abbott in mid-May. BlackRock was one of the initial investors, and Hegar said that while the investment in the stock exchange plan was unrelated to the list update, it represented 'a real commitment to overall policy changes.' BlackRock's removal from the divestment list has not completely withdrawn the business from scrutiny by Texas officials. Attorney General Ken Paxton sued the company and two others in November 2024, claiming they comprised an 'investment cartel' that intentionally bought shares in coal companies to reduce output and achieve clean energy standards. The Federal Trade Commission and the Department of Justice submitted a joint statement of interest in the case in late May. Hegar touched on the suit briefly in his remarks, but said the company's move away from clean energy initiatives is a signal of good favor. 'Even as legislators and state leaders continue to address lingering concerns about proxy voting and other policies that prioritize politics over profits, I am hopeful these actions represent a long-term shift,' Hegar said. Hegar and Paxton are facing their own lawsuit over SB 13 in federal court from the American Sustainable Business Council, a progressive business group. The suit claims the law violates companies' First and Fourteenth Amendment rights by discriminating against firms' viewpoints and circumventing due process. That suit is scheduled for a motion hearing on June 18. First round of TribFest speakers announced! Pulitzer Prize-winning columnist Maureen Dowd; U.S. Rep. Tony Gonzales, R-San Antonio; Fort Worth Mayor Mattie Parker; U.S. Sen. Adam Schiff, D-California; and U.S. Rep. Jasmine Crockett, D-Dallas are taking the stage Nov. 13–15 in Austin. Get your tickets today!
Yahoo
2 days ago
- Business
- Yahoo
BlackRock Escapes Texas Oil-Boycott List After ESG Retreat
(Bloomberg) -- BlackRock Inc. was removed from Texas' blacklist of companies that boycott fossil fuels, ending a three-year standoff over the environmental policies of the world's largest asset manager. Where the Wild Children's Museums Are Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry The Global Struggle to Build Safer Cars At London's New Design Museum, Visitors Get Hands-On Access LA City Council Passes Budget That Trims Police, Fire Spending The move means pension funds and other state-run investment accounts — which manage more than $300 billion of assets — will be allowed to purchase BlackRock shares, invest in its exchange-traded funds and hire the firm for advice and risk management. Inclusion on the list resulted in some Texas entities pulling billions of dollars of assets from the firm. State Comptroller Glenn Hegar said BlackRock had rolled back many of its green-focused initiatives, including exiting the Net Zero Asset Managers initiative and stepping back from the Climate Action 100+, a group devoted to cutting greenhouse gas emissions. The move marks a win for BlackRock Chief Executive Officer Larry Fink, who has been courting Texas leaders. Last year, he took the stage with Lieutenant Governor Dan Patrick at a summit focused on shoring up the state's energy grid, and just months ago BlackRock sponsored a table at the Black Tie & Boots Gala, a celebration of conservative politics in Texas. The company is also backing a Dallas-based Texas Stock Exchange. 'We appreciate the Comptroller's resolution of this matter,' a spokesperson for the firm said in a statement. 'BlackRock is proud to help millions of Texans retire with dignity and, on behalf of clients, invests over $400 billion in corporations, local governments, energy infrastructure and other private assets throughout the state. These investments support the continued growth of the Texas economy.' Hegar touted some of BlackRock's steps. He said while they are 'unrelated' to the listing decision, the actions 'show a real commitment to overall policy changes and a desire to act as a trusted partner in the growth of the Texas economy.' The company was a major target for conservative activists for years, with groups taking out advertisements around the country targeting the firm and Fink in particular. They argued the company was trying to influence corporate America and wider society through its support for ESG and sustainable investing. Republican officials in several states joined in that campaign, pulling money from the firm and arguing that it was harming fossil-fuel producing states like Texas. Fink himself said he would no longer use the ESG term because it had been politicized. 'We never set out to punish any of these firms, and the hope was always that any firm we included on the list would eventually take steps to ensure they were removed,' Hegar said in a statement. 'BlackRock, following the lead of many of its competitors, has finally done exactly that. While it took the company longer than others in the financial sector to make the shift, the end results are what matter.' BlackRock and a number of other financial firms including UBS Group AG and BNP Paribas SA were added to Texas' blacklist in 2022. The action followed a law that restricted business with companies that the state considered to be hostile to the energy industry. Since then, the ESG push at investment firms, pension funds and law practices has faded somewhat, partly because of efforts to avoid attacks by President Donald Trump and Republicans. BlackRock has been seeking to get off the list since it was added. The firm had always maintained it didn't run afoul of the law. At the time it was included, the company said the decision was 'not a fact-based judgment' and detailed investments of more than $100 billion in Texas energy companies. As head of Texas' finances, Hegar is required to update the list once a year and can do so as often as quarterly. And though his office reviews information on an ongoing basis, removing BlackRock is likely to be one of Hegar's last actions in the post. The three-term comptroller has been named the next chancellor of the Texas A&M University System after its current leader steps down on June 30. --With assistance from Julie Fine, Amanda Albright and Silla Brush. (Adds comment from BlackRock in fifth paragraph.) YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Cuts to US Aid Imperil the World's Largest HIV Treatment Program ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
3 days ago
- Business
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BlackRock Ends Standoff With Texas Over ESG Policies
BlackRock Inc. was removed from Texas' blacklist of companies that boycott fossil fuels, ending a three-year standoff over the environmental policies of the world's largest asset manager. This means pension funds and other state-run investment accounts can buy BlackRock shares and work with the firm. Bloomberg's Danielle Moran explains on "Bloomberg The Close." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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7 days ago
- Business
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BlackRock's Bitcoin ETF Draws Record Inflows During May's Rally
(Bloomberg) -- BlackRock Inc.'s iShares Bitcoin Trust posted its largest-ever monthly inflow in May, as the original cryptocurrency climbed to a record while being touted by more proponents as an alternative store of value. NYC Congestion Toll Brings In $216 Million in First Four Months Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania The Economic Benefits of Paying Workers to Move NY Wins Order Against US Funding Freeze in Congestion Fight Why Arid Cities Should Stick Together The fund has attracted more than $6.35 billion in net inflows during the month, according data compiled by Bloomberg — the most since its debut in January 2024. The surge lifted total assets under management to over $71 billion, underscoring growing institutional appetite for Bitcoin amid global market turbulence. 'The surge in demand appears to come primarily from institutional investors seeking regulated exposure to Bitcoin amid economic uncertainty and inflation concerns,'said Kirill Kretov, trading automation expert at CoinPanel. 'Notably, some of this demand is internal as BlackRock's own Strategic Income Opportunities Portfolio, a diversified fixed income mutual fund, has increased its holdings of IBIT.' Bitcoin touched a record high of $111,980 earlier this month, bolstered by supportive regulatory developments, including progress on US stablecoin legislation. The gains also come as investors grapple with escalating geopolitical and economic risks, prompting a shift away from traditional safe havens such as US Treasuries. Markets have been on edge since President Donald Trump reintroduced reciprocal tariffs in April — a move widely perceived as a threat to global trade and economic stability. The tariffs, and the retaliation that followed from trading partners, have shaken investor confidence and stoked fears of slower global growth. In a ruling issued late Wednesday, a three-judge panel for the US Court of International Trade declared that the Trump administration had wrongly invoked a 1977 law in imposing his 'Liberation Day' tariffs on dozens of countries and they were therefore illegal. But a federal appeals court temporarily blocked the ruling on Thursday, giving the White House hope to continue its efforts to rewrite the global trading order. Amid the uncertainty, Bitcoin's appeal as an alternative store of value appears to be gaining ground — a trend that could further boost flows into crypto-linked investment products in the months ahead. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P.
Yahoo
29-05-2025
- Business
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Bitcoin ETFs Pull In $9 Billion as Investors Ditch Gold Holdings
(Bloomberg) -- A divergence is emerging in US exchange-traded funds as investors move from gold to its so-called digital counterpart, Bitcoin. NYC Congestion Toll Brings In $216 Million in First Four Months NY Wins Order Against US Funding Freeze in Congestion Fight NY Congestion Pricing Is Likely to Stay Until Year End During Court Case Over the past five weeks, US Bitcoin ETFs have attracted more than $9 billion in inflows, led by BlackRock Inc.'s iShares Bitcoin Trust ETF (IBIT). Meanwhile, gold-backed funds have suffered outflows exceeding $2.8 billion over the same period, according to data compiled by Bloomberg News. While easing trade tensions has cut into demand for traditional havens like gold of late, Bitcoin's perceived status as an alternative store of value is growing — just as concerns over US fiscal stability mount. Bitcoin touched a record high of $111,980 earlier this month, buoyed by favorable regulatory signals — including progress on a stablecoin bill — and rising macroeconomic uncertainty. Gold, while still up more than 25% so far this year, has pulled back from recent peaks, trading roughly $190 below its all-time high. Analysts say the rotation suggests a growing acceptance of Bitcoin as a legitimate portfolio hedge. 'I remain bullish on both gold and Bitcoin,' said Christopher Wood, global equity strategist at Jefferies. 'They remain the best hedges on currency debasement in the G7 world.' Skeptics, though, have warned that Bitcoin's volatility still undermines its status as a true haven. During past macro shocks, like the August unwinding of the yen-funded carry trade, Bitcoin fell sharply along with other risk assets. Others see Bitcoin gaining an edge. 'Bitcoin is more effective against financial system risks due to its decentralised nature,' Geoff Kendrick, global head of digital assets research at Standard Chartered, wrote in a recent note. He contrasted that with gold's stronger performance during geopolitical flare-ups like tariff escalations. Kendrick added that Bitcoin serves as a hedge through two routes: risks tied to the private sector — such as the collapse of Silicon Valley Bank in 2023 — and those tied to government institutions, including concerns over US Treasury stability. 'The recent threat to Fed independence (via Powell's potential replacement) falls squarely into the second category, along with the tariff escalation and broader concerns about US policy credibility,' he said. Adding to its appeal, Bitcoin appears to be shedding its reputation as a tech-adjacent risk asset. 'Over the past month, Bitcoin's intraday correlation with Nasdaq, the dollar, and even gold, has been remarkably low,' said Dilin Wu, research strategist at Pepperstone. 'These shifts suggest Bitcoin may increasingly be viewed as a hedge — or even a non-correlated asset class — rather than just a speculative trade.' The backdrop of fiscal strain is intensifying the debate. Moody's Ratings recently stripped the US of its last triple-A credit grade, citing ballooning deficits and debt. That downgrade brought it in line with Fitch Ratings and S&P Global Ratings, both of which already rate the US below the top tier. Still, gold remains the better performer year-to-date, with gains of about 25%, compared with Bitcoin's 15% rise. Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P.
