BlackRock’s Larry Fink doesn’t believe inflation is going to be transitory – and says bitcoin demand from his clients is very low

Larry Fink
Larry Fink.

  • BlackRock’s Larry Fink is not on the side of the “inflation is transitory” debate.
  • “I do not believe inflation is going to be transitory,” he said, after consumer prices rose at their fastest since 2008.
  • BlackRock clients aren’t interested in bitcoin and are more driven by long-term returns, he said.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

BlackRock CEO Larry Fink told CNBC on Wednesday he doesn’t believe the surge in inflation gripping the world will be fleeting, and the way the Federal Reserve and other central banks navigate this environment will have great significance.

“I do not believe inflation is going to be transitory,” he told CNBC’s “Squawk Box” after consumer prices increased 0.9% in June, far higher than the 0.5% consensus estimate of economists polled by Bloomberg.

Most Wall Street economists and the Fed have stuck to the argument that rising prices will indeed be short-lived.

While Fink said he expects inflation to be more “systematic” over time, he is worried about the delta variant of COVID-19 slowing down parts of Asia and further disrupting supply-chain shortages.

“We are seeing a real disconnect between the countries that have been very vaccinated and moving forward on vaccination, and the countries that have been late in vaccination, but focusing more on isolation,” he said. “Isolation worked before we had a vaccination.”

That could lead to uneven recovery across the world. But with record amounts of monetary stimulus and cash still waiting to be put to work, the growth trajectory is eventually pointing upward, he said.

“I believe the trend line is still going to be upward, maybe not as fast, maybe it’s going to be very moderate for the next six months as we digest how the world is able to handle the Delta variant and the speed in which vaccinations occur throughout the world,” he said.

Fink, who has previously said cryptocurrencies could become a great asset class, said BlackRock is seeing low investor demand for bitcoin.

“That is just not part of the focus on retirement and long-term investors,” he said about demand for cryptocurrencies. “We see very little in terms of investor demand on those types of things, but quite frankly (many) may not come to BlackRock for that type of demand.”

He added BlackRock investors are more focused on building long-term returns over a long period of time, and “we don’t have those conversations.”

Read More: BANK OF AMERICA: Buy these 22 stocks set to completely crush earnings expectations as volatility around reports creates a stock-picker’s paradise

Read the original article on Business Insider

Almost half of all global assets under management are now geared towards net-zero goals, according to a group of fund managers

Students protest in Auckland's Aotea Square over climate change on March 15, 2019 in Auckland, New Zealand.
Students protest in Auckland’s Aotea Square over climate change on March 15, 2019 in Auckland, New Zealand.

  • $43 trillion worth of assets under management globally are now linked to net zero emissions goals via the Net Zero Asset Managers Initiative.
  • 41 firms have joined the initiative, raising the amount of funds managed with an ESG focus.
  • Asset managers are aiming to bring client portfolios to net zero by 2050 under the initiative.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Almost half of all global assets under management are now geared towards net zero goals after 41 more firms joined the Net Zero Asset Managers initiative – a group of fund managers that aim to lower the carbon footprint of their clients’ portfolios and reach net zero by 2050.

The group said on Tuesday it now had 128 signatories that manage $43 trillion of the $100 trillion strong asset management industry, saying that this moved the sector closer to a “net zero tipping point”.

“This marks a fundamental tipping point across the investment sector and a significant boost in efforts to tackle climate change and decarbonize the global economy. There’s a lot more to achieve, but the sector is increasingly on a path to a net zero future.” Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change – one of the founding members of the Net Zero Asset Managers initiative – said.

The initiative, which was founded in December 2020 and is recognized by the United Nations Framework Convention on Climate Change Race to Zero campaign, sees asset management firms committed to supporting emissions reductions in the real economy, developing investment products that are geared towards net zero and encouraging clients to invest in a climate friendly way.

Signatories report their progress annually according to guidelines set by the Task Force for Climate-related Financial Disclosures.

In May, the International Energy Agency published a special report that concluded that in order to achieve net zero by 2050, there should be no new investments in fossil-fuel supply projects as well as a series of other limitations, including on the funding for coal-fired power plants.

Amundi and HSBC Asset Management are among those that joined competitors including BlackRock, Vanguard, UBS, Fidelity, State Street and Allianz. Other major investment banks such as JPMorgan, Goldman Sachs and BNY Mellon have however not signed up to the net-zero plans so far.

Earlier this year, HSBC narrowly avoided a shareholder revolt over its continued fossil fuel investments. It later committed to end funding for the coal industry.

“As the world moves to a net zero carbon future, we are committed to playing our part in addressing climate change, both as a business and as stewards of our clients’ assets.” Nicolas Moreau, the CEO of its asset management unit said about the move to now join the net zero initiative.

Read the original article on Business Insider