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TheState of Texas is terminatinga massive $8.5 billion investment with trillion-dollar asset manager BlackRock over the state’s determination that the firm is engaged in a boycott of energy companies.

In an announcement first shared with FOX Business, Texas State Board of Education Chairman Aaron Kinsey said the so-called Texas Permanent School Fund (PSF) haddelivered a notice to BlackRockon Tuesday, informing the New York City-based firm of the action.

According to Kinsey, the move was made in accordance with a 2021 state law that seeks to distance the state and its large public purse from financial institutions boycotting the oil and gas sector.

“The Texas Permanent School Fund has a fiduciary duty to protect Texas schools by safeguarding and growing the approximately $1 billion in annual oil and gas royalties managed by the Texas General Land Office,” Kinsey said in a statement Tuesday. “Terminating BlackRocks contract ensures PSFs full compliance with Texas law.”

“BlackRocks dominant and persistent leadership in the ESG movement immeasurably damages our states oil & gas economy and the very companies that generate revenues for our PSF. Texas and the PSF have worked hard to grow this fund to build Texas schools,” he continued. “BlackRocks destructive approach toward the energy companies that this state and our world depend on is incompatible with our fiduciary duty to Texans.”

The divestment represents a large share of the $53 billion Texas PSF, a fund created in the 19th century to support the state’s public schools.

The action also represents by far the largest divestment of its kind since Republican-led states began terminating their financial ties to BlackRock and other financial institutions over their pursuit of so-calledenvironmental, social and governance (ESG) standards.

The ESG movement, which has picked up steam in recent years, calls for investments to be pulled from traditional energy industries and diverted togreen energy industriesin the fight against global warming.

However, the ESG movement has faced significant resistance from both the energy industry and lawmakers at the state and federal level.

As part of that pushback, Texas passed Senate Bill 13 in 2021, requiring its state comptroller to list financial companies found to boycott fossil fuel companies.

Texas Comptroller Glenn Hegar most recently updated that list in October, including BlackRock and several funds managed by the firm, and has called on the Texas Permanent School Fund, in addition to five state pension funds, to sever ties with the asset manager.

“Today represents a major step forward for the Texas PSF and our state as a whole. The PSF will not stand idle as our financial future is attacked by Wall Street,” Kinsey said Tuesday. “This bold action helps ensure our PSF remains in fact permanent and will continue to support bright futures and opportunities for generations of Texas students.”

BlackRock, whichmanages more than $10 trillion in assets, has sought to defend itself in recent months from accusations that it is boycotting energy companies, noting that it remains invested in traditional energy companies, but factors in ESG matters because it serves clients with a range of investment objectives.

Additionally, the firm partnered with major energy company Occidental Petroleum late last year on a carbon capture project in Ector County, Texas.

“BlackRock is helping millions of Texans invest and save for retirement,” a BlackRock spokesperson told FOX Business. “On behalf of our clients, weve invested more than $300 billion in Texas-based companies, infrastructure and municipalities, including $125 billion invested in the energy sector, including a $550 million joint venture with Occidental. We recently hosted an energy summit in Houston designed to explore how to strengthen Texas power grid.”

Still, Texas’ move was cheered by Derek Kreifels, the CEO of the State Financial Officers Foundation, and Will Hild, the executive director of Consumers’ Research, who have led nationwide opposition to ESG policies.

“Todays bold step by Aaron Kinsey and the Permanent School Fund of Texas, in accordance with state law, is a massive blow against the scam of ESG,” said Kreifels. “This is what happens when public fiduciaries stand up for those to whom they owe a duty, instead of bowing down to Wall Streets asset managers who continue to abuse their position in the market to advance radical ideologies.”

“Under Larry Fink’s leadership, BlackRock has been misusing client funds to push a political agenda for years. Nowhere was that more egregious than in Texas, where BlackRock was simultaneously trying to destroy the domestic oil and gas industry while managing funds that depended on royalties derived from that very same industry,” added Hild. “A more flagrant violation of fiduciary duty is difficult to imagine.”

Hild said Texas’ divestment sends a “clear message” that “Wall Street elites that people can no longer be bullied into complying with ESG’s destructive ideology.”

Prior to the action announced Tuesday, Arizona, Arkansas, Florida, Louisiana, Missouri, South Carolina, Utah, and West Virginia announced similar divestments.

The largest previous divestment was Florida’s, worth $2 billion, announced by Florida Chief Financial Officer Jimmy Patronis in December 2022.

Some critics of the states’ moves distancing themselves from BlackRock andother asset managershave argued the actions harm consumers.

For example, a Texas Association of Business Chambers of Commerce Foundation study released last week concluded Texas Fair Access laws will result in $668.7 million lost in economic activity and 3,034 fewer full-time, permanent jobs.

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Sports

Mets’ Alvarez (thumb) progressing in recovery

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Mets' Alvarez (thumb) progressing in recovery

NEW YORK — Francisco Álvarez checked off another box Saturday in his return from tearing the ulnar collateral ligament in his left thumb last month.

The New York Mets catcher took batting practice on the field Saturday for the first time since injuring the thumb sliding into second base against the Los Angeles Dodgers on April 19. He took more than 20 swings before the Mets hosted the San Francisco Giants at Citi Field.

Asked if he took the swings at full strength, Álvarez pointed out that he hit a ball 115 mph. That, he joked, said it all.

“I’m very happy and excited to be back on the field,” Álvarez, 22, said. “I’m very happy with how everything is going.”

Álvarez, who underwent surgery on the thumb April 23, explained he is still a few steps away from going on a rehab assignment. The next checkpoints include hitting off a pitching machine to face velocity before facing live pitching and catching bullpens.

The Mets announced a six-to-eight-week timeline for Álvarez following the surgery. Tuesday marks five weeks.

“I don’t know if it’s a few more weeks or days,” Álvarez said. “It’s really how is everything going? If I keep feeling good, if I keep doing good, if I don’t feel nothing in my thumb, my batting cage is feeling good, maybe it’s a couple of weeks, a couple of days.”

Álvarez said he sought out advice from Kansas City Royals catcher Salvador Pérez, a fellow Venezuelan who sustained the same UCL thumb injury in 2022. Two years later, Pérez, one of the most productive hitters in the majors this season, told Álvarez about the recovery process and the need to take his time.

The Mets, meanwhile, have had some of the worst production in the majors from the catcher position without Álvarez. Mets catchers Tomas Nido and Omar Narvaez have combined to for a .194 batting average since April 20, the fourth-worst mark in the majors. Their collective 38 wRC+ ranks 28th, ahead of only the Washington Nationals and Chicago Cubs.

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Politics

‘More holes than Swiss cheese’: Unite union attacks Labour’s ‘rebrand’ of workers’ rights plan

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'More holes than Swiss cheese': Unite union attacks Labour's 'rebrand' of workers' rights plan

Sir Keir Starmer has defended Labour’s decision to rebrand its package of workers’ rights after a union said the plans had “more holes than Swiss cheese”.

Sharon Graham, general secretary of the Unite union, accused the party of watering down its policies after it rebranded “Labour’s new deal for working people” as “Labour’s plan to make work pay”.

Reports suggest it would go through a formal consultation process with businesses, potentially delaying or toning down pledges on areas like zero-hours contracts, parental leave and sick pay.

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Ms Graham said: “The again revised New Deal for Working People has more holes in it than Swiss cheese. The number of caveats and get-outs means it is in danger of becoming a bad bosses’ charter.

“Working people expect Labour to be their voice. They need to know that Labour will not back down to corporate profiteers determined to maintain the status quo of colossal profits at the expense of everyone else.

“The country desperately needs a Labour government, but the party must show it will stick to its guns on improving workers’ rights.”

Unite union general secretary Sharon Graham, joins ambulance workers on the picket line outside ambulance headquarters in Coventry
Image:
Sharon Graham urged Labour to ‘stick to its guns on improving workers’ rights’. Pic: PA

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Asked about the comments during a visit to Staffordshire, Sir Keir said: “We have come to an agreement with the unions.

“At the heart of this is something really important to me and that’s dignity and respect at work and I think everybody should be treated with dignity and respect at work.

“There’s another really important angle on this, which is the number one mission for an incoming government is to grow the economy to make sure our economy ensures living standards are improved everywhere across the country.

“I don’t think you can do that if you don’t treat your workforce properly.”

Elements of Labour’s plan include a “right to switch off”, a proposed ban on zero hours contracts and stronger employment rights from day one of a new job.

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The party has also said it wants to empower adult social care professionals and trade unions that represent them to negotiate a sector-wide agreement for pay, terms and conditions.

A Labour spokesperson said: “Labour’s new deal for working people is our plan to make work pay. It’s how we’ll boost wages, deliver secure work and support working people to thrive – delivering a genuine living wage, banning exploitative zero hours contracts, and ending fire and rehire.

“The new deal is a core part of our mission to grow Britain’s economy and raise living standards in every part of the country. Labour will make Britain work for working people.”

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World

Fire breaks out at amusement park in India, killing at least 24 people

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Fire breaks out at amusement park in India, killing at least 24 people

A huge fire has broken out at an amusement park in western India, leaving at least 24 people dead.

The blaze happened at the park in the city of Rajkot, with the cause of the fire being investigated.

Many children are reported to be among those who died in the catastrophe in the Gujarat state, western India.

Police Commissioner Raju Bhargava said the flames were now under control and 20 bodies had been recovered.

Flames were seen engulfing the TRP game zone and thick clouds of smoke rose into the sky.

A police official at the local civil hospital said some of the bodies were charred beyond recognition.

The scene of the fire which has left at least 20 people dead. Pic: AP
Image:
The scene of the fire which has left at least 24 people dead. Pic: AP

The park is usually packed with families with children enjoying the school summer vacation over the weekend.

Footage showed firefighters clearing debris around collapsed tin roof structures that media reports said were used for bowling, go-karting and trampoline attractions.

Mr Bhargava said police will file a case of negligence against the owner of the park.

The city’s mayor, Nayana Pedhadiya, also vowed that action would be taken.

He said: “Our focus is on rescue operations and saving lives. We will ensure strict action is taken against the people who are responsible for this incident.”

The cause of the fire is not yet confirmed, the district’s chief fire officer said.

Some 20 bodies were recovered. Pic: AP
Image:
The scene of the fire which has left at least 24 people dead. Pic: AP

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India’s Prime Minister Narendra Modi wrote on X that he was “extremely distressed by the fire mishap in Rajkot”.

“My thoughts are with all those who have lost their loved ones,” he added.

“Prayers for the injured.”

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