BLK - BlackRock, Inc.

NYSE - NYSE Delayed Price. Currency in USD
536.84
-5.10 (-0.94%)
At close: 4:02PM EST
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Previous Close541.94
Open544.42
Bid508.02 x 1200
Ask550.00 x 800
Day's Range532.76 - 547.35
52 Week Range401.82 - 547.35
Volume732,145
Avg. Volume498,942
Market Cap83.391B
Beta (5Y Monthly)1.55
PE Ratio (TTM)18.88
EPS (TTM)28.43
Earnings DateApr 13, 2020 - Apr 19, 2020
Forward Dividend & Yield13.20 (2.44%)
Ex-Dividend DateDec 04, 2019
1y Target Est592.29
  • Financial Times

    Why BlackRock is facing backlash in France

    The grandiose entrance hall of BlackRock’s Paris office in the historic Centorial building is often used for fashion shows and high-end cocktail parties. The protests were in response to France’s sweeping pension reforms, which have sparked unrest and strike action across the country. Waving trade union flags, the demonstrators directed their anger at BlackRock, which has become a scapegoat following claims it played a role shaping the reforms.

  • GlobeNewswire

    BlackRock® Canada Updates Risk Ratings for Certain Dynamic Exchange-Traded Funds

    TORONTO, Jan. 24, 2020 -- BlackRock Asset Management Canada Limited (“BlackRock Canada”), an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”) (NYSE: BLK).

  • Moody's

    ABG Intermediate Holdings 2 LLC -- Moody's changes Authentic Brands' outlook to positive

    Rating Action: Moody's changes Authentic Brands' outlook to positive. Global Credit Research- 24 Jan 2020. New York, January 24, 2020-- Moody's Investors Service affirmed ABG Intermediate Holdings 2 LLC's ...

  • BlackRock (BLK): Strong Industry, Solid Earnings Estimate Revisions
    Zacks

    BlackRock (BLK): Strong Industry, Solid Earnings Estimate Revisions

    BlackRock (BLK) has seen solid earnings estimate revision activity over the past month, and belongs to a strong industry as well.

  • Index Fund Giants Draw Antitrust Scrutiny in U.S. Mergers
    Bloomberg

    Index Fund Giants Draw Antitrust Scrutiny in U.S. Mergers

    U.S. antitrust officials have begun asking companies about communications with their biggest shareholders as part of merger investigations.

  • Reuters

    DAVOS-Carlyle looking at "relatively cheap" energy assets - Rubenstein

    Fears about the future of energy assets have led to a sell-off, but this has created "very good opportunities" for the Carlyle Group, its founder, David Rubenstein, said on Thursday. Rubenstein, co-executive chairman of the private equity (PE) giant, told the Reuters Global Markets Forum that securing bank loans for such deals had become harder, however. Big investors are rewarding companies with progressive climate policies and dumping heavy polluters, as climate change gains importance on the investment agenda.

  • Wachtell Lipton: BlackRock Gave Momentum to These Two Disclosure Frameworks for ESG
    CorpGov.com

    Wachtell Lipton: BlackRock Gave Momentum to These Two Disclosure Frameworks for ESG

    BlackRock Inc.’s recent letter from founder Larry Fink is likely to provide momentum to two specific frameworks for sustainability and climate-change disclosure, the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-Related Financial Disclosures (TCFD), helping to standardize the highly-fragmented reporting that exists currently. That is according to an article published this week […]

  • A Waste-Free Economy Catches On at Davos
    Bloomberg

    A Waste-Free Economy Catches On at Davos

    (Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.When British yachtswoman Ellen MacArthur was promoting the idea of the circular economy on the sidelines of Davos in 2012, the big attraction was curiosity about what she was up to after her sailing career.Eight years on, MacArthur’s vision is taking hold at the World Economic Forum’s annual gathering, and firms such as Adidas and Unilever, as well as asset management giant BlackRock Inc. are embracing it.“We had our own event in one of the hotels, and to be honest most people came because they were intrigued about what I might be doing,” said MacArthur, who once held the world record for the fastest solo circumnavigation of the globe. “Things have changed enormously since then.”Her foundation is pushing an economic system where product lifespans are extended and components used repeatedly. Waste is eliminated by designing products that can be reclaimed, re-used and re-manufactured. In practical terms, for a company such as Apple Inc., that means making new iPhones with parts from older models.The idea is about replacing the “linear” model of growth -- extraction, production and disposal -- and reducing the strain on the planet’s limited resources.“We need to move to a circular business,” Marc Engel, chief supply chain officer at Unilever, told a Bloomberg Live panel in Davos. “We’ve got a long way to go, but I’m very positive we’ll get there. If we set our minds to it we will achieve it.”Unilever is among the business represented in Davos which are taking steps. It has pledged to reduce the amount of plastic packaging it produces by 14% each year by 2025. Adidas wants to almost double the number of shoes produced from recycled plastic this year to 20 million. Nestle SA has also set targets to slash packaging, while Alphabet Inc.’s Google has begun advising companies on how to harness data to better manage resources.BlackRock started a fund focused on the circular economy in October alongside the Ellen MacArthur Foundation. At $23 million, it’s a drop in the ocean for the $7.4 trillion asset manager, though still a meaningful development as CEO Larry Fink puts environmental concerns at the center of the firm’s investment process.Wide-scale adoption of the concept would not only cut costs and bolster productivity, advocates say, but climate change and pollution would be tempered. It represents a $4.5 trillion-dollar opportunity globally by 2030, according to Peter Lacy, author of ‘The Circular Economy Handbook.’But some academics argue that it doesn’t address what they see as the fundamental problem of pursuing limitless growth.Still, retailers are also acting. H&M, criticized for its part in so-called “fast fashion,” is trialling a rental clothing service in one of its Stockholm branches as well as an in-store repair service. British start-up Hurr offers clothing rental, as does Rent the Runway Inc. in New York.The global economy now needs 100 billion tonnes of materials a year, according to the not-for-profit organization Circle Economy, a figure set to more than double by 2050. Historically, for every 1% increase in GDP, resource usage has risen on average 0.4%.The flow of materials accounts for more than half of emissions in OECD countries. Reducing that insatiable demand could therefore go a long way in achieving the global target of limiting temperature increases in the atmosphere to below 1.5 degrees Celsius.“What we’re looking at is, how can we actually decouple some of the trends we’ve seen in terms of increasing consumption, increasing pollution and emissions, from growth prospects,” said Helen Mountford, vice president for climate and economics at the World Resources Institute. “We’re already exceeding or rapidly approaching a number of planetary boundaries.”BlackRock isn’t the first money manager to embrace the circular economy. Some smaller firms have been running funds focused on it for a number of years.Geneva-based Decalia Asset Management, which oversees 3.7 billion Swiss francs ($3.8 billion) in total, launched such a fund in 2018. It gained nearly 23% in 2019.Circularity Capital in Edinburgh has a 60 million-pound private equity fund that’s invested in businesses such as Winnow, a food waste reduction company, and ZigZag, which reduces retailers’ product return waste.Rabobank Group -- one of the biggest agriculture lenders in the world -- and the Dutch government jointly announced in Davos to invest $40 million each in a special fund that will start financing deforestation-free agriculture this year, as this sector is responsible for 75% of global deforestation. The AGRI3 Fund is an initiative from Rabobank and the UN and aims to attract a total of at least $1 billion by also including other commercial lenders.The key challenge is getting more governments and companies on board. The European Commission has a circular economy action plan, which includes transforming the way plastic products are produced and recycled. It’s also part of China’s five-year plan. The government there has stopped importing waste, something that’s forcing other countries to adapt.“When you set off on one of those long journeys, the resources you have with you are the absolute minimum you can survive with, to be as light as possible to stand any chance of breaking a record or winning a race,” MacArthur said. “I realized the global economy was the same -- we have finite resources, and yet we’re using them up.”(Updates with Rabobank agriculture investment in 17th paragraph.)\--With assistance from David Goodman and Ruben Munsterman.To contact the reporters on this story: Jill Ward in London at jward98@bloomberg.net;Suzy Waite in London at swaite8@bloomberg.netTo contact the editors responsible for this story: Simon Kennedy at skennedy4@bloomberg.net, Fergal O'Brien, Jana RandowFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Greta Thunberg Wants More from Corporations – But How Do Investors Monitor Them?
    CorpGov.com

    Greta Thunberg Wants More from Corporations – But How Do Investors Monitor Them?

    Companies May Soon Adopt a Standardized Framework for Reporting ESG Matters By John Jannarone As U.S. President Donald Trump and Swedish environmental activist Greta Thunberg descended on Davos, Switzerland, this week, the topics of climate change and social responsibility came into sharp focus not only for countries, but corporations. The trouble is, it can be […]

  • Why BlackRock decided now is the time to act on climate change
    Yahoo Finance

    Why BlackRock decided now is the time to act on climate change

    Blackrock's Brian Deese explains why Blackrock has embraced sustainable investing, expanding on Larry Fink's recent letter to CEOs.

  • BlackRock’s Kapito: People in cash won’t be able to ‘retire in dignity’
    Yahoo Finance

    BlackRock’s Kapito: People in cash won’t be able to ‘retire in dignity’

    A long life can be a problem if retirees have not invested their money, according to BlackRock president and co-founder Rob Kapito.

  • Bloomberg

    Wall Street’s Bond Transparency Letters Are Revealing

    (Bloomberg Opinion) -- In most bond-market battles, if BlackRock Inc. and Pacific Investment Management Co. are on the same side, it’s a safe bet to assume they’ll come out victorious. After all, the two behemoths oversee about $9 trillion in assets combined and loom large in both actively managed fixed-income mutual funds and exchanged-traded funds.However, their push to delay reporting of large corporate-bond trades was so audacious — and against the grain of just about every other move toward transparency across markets — that it seems to have left the Financial Industry Regulatory Authority with little choice but to side against them, at least for the moment.As a reminder, Finra in April proposed a pilot program that would give bond traders 48 hours to disclose large block trades to other investors instead of the 15 minutes required under current rules. The initiative, as I wrote at the time, would serve to provide some empirical evidence in the debate about the trade-offs between bond-market liquidity and transparency. The regulator held an open comment period for a few months, during which it received 31 letters. I inquired about the status of its proposal in late October and was told there was no update.Well, there is now. Bloomberg News’s Ben Bain, citing two people familiar with the matter, reported Wednesday that Finra informed the Securities Industry and Financial Markets Association that the study had been put on the back burner, pending further discussions with the Securities and Exchange Commission and a bond advisory panel called the Fixed Income Market Structure Advisory Committee. Finra spokesman Ray Pellecchia told Bain, “we’re continuing to review the comments received and consider potential next steps.” But at the very least, it seems the plan has hit a wall.It takes only a quick glance at the comment letters to Finra to understand why. There’s real concern that this proposal was an attempt by the biggest investing firms to tilt the playing field to their advantage and that of large dealers.This passage from Federated Investors, for example, summarizes the general sentiment:The 48 hour delay appears to be intended to accommodate the circumstances of the largest buy-side participants in executing large trades. This may simply reflect the possibility that these institutions have reached their capacity limit in managing fixed income funds. The 48 hour delay would therefore improve liquidity for these institutions while impairing market efficiency for other market participants. This is per se contrary to the SEC’s statutory missions of promoting competition and market efficiency.…The purpose of reapportioning this transactional cost is not to significantly improve liquidity, but rather to provide a relief valve for the largest asset managers in the U.S. corporate bond market… market structure should not favor large traders to the detriment of smaller traders.As far as Finra comment letters go, that’s quite spicy. For some context, Federated manages about $527 billion of assets overall. BlackRock has $565 billion in just its fixed-income iShares ETFs, to say nothing of its actively managed bond funds and other investment options. BlackRock expects that number will reach $1 trillion within the next five years, Chief Executive Officer Larry Fink said last week in an earnings conference call, calling the bond ETFs “a modernizing force in financial markets.”The backlash doesn’t stop there, though. T. Rowe Price Group Inc., which has twice as many assets as Federated at $1.12 trillion, also cautioned against carrying out the pilot program:The 48-hour delay would create an unlevel playing field in the fixed income markets because it would only apply to the most sizeable trades. As a result, the largest investment advisers and broker-dealers would have an information advantage over other market participants when negotiating trades, effectively creating a two-tier system of haves and have-nots.Let that sink in for a moment. A trillion-dollar investment firm is concerned about “have-nots.” T. Rowe either believes that a two-tier system would be bad for the corporate-bond market as a whole or that it would be at risk of becoming a “have-not” itself.Still, the biggest dagger to the heart of the pilot program might have been from Vanguard Group Inc. and its $5.6 trillion in assets under management. “The Proposed Pilot is a harmful solution to an unsubstantiated problem,” the letter signed by Chief Investment Officer Gregory Davis said. “We routinely trade corporate bond blocks much larger than the current dissemination caps and... have observed that liquidity for corporate bond block trades has generally improved over time.”Citadel LLC and AQR Capital Management also voiced opposition. Citadel faulted some members of the SEC’s advisory committed for simply asserting that bond trading would improve despite “little evidence to suggest that the Proposed Pilot will meaningfully improve liquidity conditions.” That’s similar to how AQR put it:While we are strong supporters of making policy decisions based on the type of data-driven analysis afforded by pilot programs, the reality is that all pilots are disruptive to the workflow of market participants and thus have inherent costs. In order to justify imposing such costs on the marketplace as a whole there should be clear evidence that the changes being tested have at least a reasonable likelihood of achieving the desired outcome. We do not believe that the Proposed Pilot meets this basic standard.Of course, this argument presents something of a Catch-22. The reason there’s no evidence that delayed disclosure of large corporate-bond trades improves overall liquidity is because it hasn’t been tested. And without trying it out, there will never be the empirical data needed to get a program like this off the ground. For this reason, I’m not sure I’d entirely rule out the possibility of some sort of corporate-bond experiment, even if the details aren’t quite the same as the earlier proposal. A person familiar with the matter told Bain that Finra could still make changes and go forward after consulting with the SEC.Overall, though, the comment letters reveal real concern — and borderline fear — about what might happen to the bond market if big investment managers are afforded even more power when they’re already gobbling up ever-larger shares of just about every asset class. One firm even went so far as to say that hiding block trades creates “the potential for many victims.” That alone should be enough to give Finra pause.To contact the author of this story: Brian Chappatta at bchappatta1@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • For Oil, There’s a Green Swan Lurking in This Plastic Bag
    Bloomberg

    For Oil, There’s a Green Swan Lurking in This Plastic Bag

    (Bloomberg Opinion) -- Back in 1999, one of the most talked-about scenes in one of the most talked-about movies involved a dancing plastic bag. It was surely a more innocent time. Still, two decades on from American Beauty and its bag-shaped pretensions, this is an opportune moment to reiterate that it’s just trash. China has unveiled plans to curb the use of non-degradable plastic bags in supermarkets and malls across major cities as well as food-delivery services. The problem with plastic isn’t plastic, much of which is useful and likely irreplaceable. Rather, it’s that we produce a lot of low-value but long-lasting plastic — especially packaging — that overwhelms our waste-management capabilities (or inclinations, for that matter) and winds up polluting the planet. Plastic bags blowing about in a fall breeze aren’t, as the movie contends, a metaphor for the hidden wonders of suburbia; they’re an expression of failure.As my colleague David Fickling writes, growing demand for petrochemicals is an article of faith in the oil and gas business, and one that gets a lot more airing these days to offset the disquieting narrative of electric vehicles stalling out gasoline consumption. In its most recent Energy Outlook, BP Plc identified “non-combusted” demand for oil as the single-biggest source of projected growth through 2040, with single-use plastics accounting for almost 40% of that 5.5 million barrels a day.Under an alternative future in which governments phase out single-use plastics aggressively and ban them altogether by 2040, BP’s outlook has global oil demand peaking in the late 2020s. That seemed like a far-off jetpack era back when we were watching dancing bags but now looms with humdrum imminence. This matters a lot because the oil industry plans to invest north of $34 billion a year in petrochemicals through 2024, according to estimates from Sanford C. Bernstein — equivalent to building the entire fixed asset base of a supermajor, Chevron Corp.China’s latest plan isn’t anywhere near a worldwide moratorium on Ziplocs. Yet it presents a risk that goes beyond this or that forecast for oil demand.It just so happens that a day or two after Beijing’s announcement, the Bank for International Settlements released a new report called “The Green Swan.” This lays out risks posed to the global financial system by climate change and the limitations of current models in quantifying potential impacts. One point raised is that while economists traditionally support carbon pricing to mitigate climate change, “given the size of the challenge ahead, carbon prices may need to skyrocket in a very short time span towards much higher levels than currently prevail.” In other words, we left it too long, so we now need to make carbon prohibitively expensive.Analogous to that is the act of just prohibiting stuff — which is where China’s new regulations come in. Those aren’t carbon-related per se, but the mechanism is the same. In theory, a mixture of price signals, recycling programs and consumer education could moderate the problem of plastic pollution. In practice, less than a fifth of plastic is recycled, a finding sometimes framed as a growth-driver for the industry. The relatively low value of the product, use of mixed plastics and general consumer confusion over what goes into what recycling bucket are big obstacles to getting that figure higher.Faced with that, more national and local governments are choosing to effectively set the “price” for certain plastics at some level tending to infinity by just banning them. In that sense, the difficulties of recycling may be less a bull argument for plastics and more a precursor to drastic measures.The resort to policies of interdiction, rather than market-led solutions, is itself a green swan: fiat dislocation that is hard to model. It doesn’t take a global ban on single-use plastics to present a problem to an oil industry that has (a) made petrochemicals a central part of its growth story and (b) begun deploying billions already in projects ranging from Saudi Arabian Oil Co.’s Asian joint ventures to Exxon Mobil Corp.’s shale-linked crackers on the Gulf coast.“To stop plastic use entirely will be hard, but to kill demand growth will require solutions for only 3% of global demand each year,” writes Kingsmill Bond, energy strategist at Carbon Tracker and co-author of a forthcoming report on the future of plastic demand. An ethylene plant running at 60% of capacity wouldn’t be stranded per se, but it wouldn’t be a must-own either.The cloud of uncertainty gathering over future oil demand raises the industry’s cost of capital, manifested in demands for higher cash payouts. BlackRock Inc.’s Larry Fink made much the same point in last week’s climate letter (including the potential for green swans, though he didn’t use that phrase). Today’s teenagers don’t sit around filming pollution; they head to Davos and lambast tycoons about it. In this sense, China’s bag ban may be less important for its specific impact on oil volumes and more for its general impact on expectations of growth and thereby sentiment and risk premiums for oil-related assets. Much as I hate to admit it, sometimes a bag is more than just a bag.To contact the author of this story: Liam Denning at ldenning1@bloomberg.netTo contact the editor responsible for this story: Mark Gongloff at mgongloff1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Benzinga

    BlackRock, France, Germany Govts. Seek $500M Investment For Their Joint Climate Fund

    The CFP was announced at the One Planet Summit in September 2018. Leading partner BlackRock Inc. (NYSE: BLK) said the vehicle will feature a first-loss tranche of at least $100 million in catalytic capital, anchored by government and foundation partners, which BlackRock will use to mobilize a goal of at least $400 million in institutional capital commitments. The governments of France and Germany, both of which are partners in the CFP, will contribute $30 million each.

  • REFILE-DAVOS-BlackRock, partners eye initial $500 mln for climate fund
    Reuters

    REFILE-DAVOS-BlackRock, partners eye initial $500 mln for climate fund

    A BlackRock-backed group aims to raise an initial $500 million for a private equity fund that will invest in climate change-linked infrastructure upgrades in emerging markets. The group will provide the first $100 million of funding for the Climate Finance Partnership (CFP), which was set up in 2018 along with France, Germany and the Hewlett and Grantham charitable foundations, it said in a statement on Wednesday. The funding will go towards a first-loss tranche that will absorb any initial losses, a safety net for other institutional investors that BlackRock expects to help it raise at least another $400 million.

  • BlackRock, partners eye initial $500 million for climate fund
    Reuters

    BlackRock, partners eye initial $500 million for climate fund

    A BlackRock-backed group aims to raise an initial $500 million for a private equity fund that will invest in climate change-linked infrastructure upgrades in emerging markets. The group will provide the first $100 million of funding for the Climate Finance Partnership (CFP), which was set up in 2018 along with France, Germany and the Hewlett and Grantham charitable foundations, it said in a statement on Wednesday. The funding will go towards a first-loss tranche that will absorb any initial losses, a safety net for other institutional investors that BlackRock expects to help it raise at least another $400 million.

  • Moody's

    China, Government of -- Moody's: US-China trade deal positive for selected financial services providers in both countries

    Moody's Investors Service says in a new report that the phase one trade deal between the US (Aaa stable) and China (A1 stable) is positive for the development of many financial firms, but that the effects will roll out gradually and require significant upfront investments. "The key beneficiaries will be US financial institutions that view China as strategically important, because of the large market for financial services for its rapidly growing middle class, while large Chinese institutions will in turn benefit from the expertise that the foreign companies bring," says Sean Hung, a Moody's Vice President and Senior Analyst.

  • Business Wire

    Davos 2020 Climate Finance Partnership Press Release

    Parties to the Climate Finance Partnership (CFP) have taken another step forward in their partnership to accelerate the flow of capital into climate-related investments in emerging markets, reaching agreement on the core terms and structure of their flagship blended finance investment vehicle. The parties to the CFP are France, Germany, the Hewlett and Grantham foundations, and BlackRock.

  • Activist investor calls on Toshiba Machine to put defense plans before shareholders
    Reuters

    Activist investor calls on Toshiba Machine to put defense plans before shareholders

    Japan's most prominent activist investor on Wednesday demanded Toshiba Machine Co hold an extraordinary shareholders meeting to discuss its plans to introduce defense measures against a hostile takeover. The demand from investor Yoshiaki Murakami came a day after he launched a hostile bid of up to $235 million for control of the company. Toshiba Machine has said it could adopt poison-pill measures to fend off acquisition attempts by issuing stock warrants to existing shareholders and diluting the holdings of unwanted suitors.

  • 7 Most-Searched ETF Areas in the Past 7 Days
    Zacks

    7 Most-Searched ETF Areas in the Past 7 Days

    Inside the ETF areas that are trending lately.

  • Microsoft CEO Says U.S.-China Spat May Hurt Global Growth
    Bloomberg

    Microsoft CEO Says U.S.-China Spat May Hurt Global Growth

    (Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.Microsoft Corp’s chief executive officer said he worries that mistrust between the U.S. and China will increase technology costs and hurt economic growth at a critical time.Using the $470 billion semiconductor industry as an example of a sector that is already globally interconnected, Satya Nadella said the two countries will have to find ways to work together, rather than creating different supply chains for each country.“All you are doing is increasing transaction costs for everybody if you completely separate,” Nadella said in an interview with Bloomberg News Editor-in-Chief John Micklethwait at Bloomberg’s The Year Ahead conference in Davos. That’s a concern as the executive said the world is on the cusp of a revolution around technology and artificial intelligence.“If we take steps back in trust or increase transaction costs around technology, all we are doing is sacrificing global economic growth,” he said.The Trump administration is considering steps to further limit the ability of U.S. companies to supply Huawei Technologies Co., China’s flagship tech company, in addition to pressuring countries around the world to avoid using its equipment for 5G mobile networks.The agreement signed last week between the U.S. and China was “not sufficient,” said Nadella, but represented “progress” on the issue of intellectual property protections for U.S. technology companies working with China.To enable different countries to use technology from outside their borders, Nadella suggested a system that relies on verification. For example, Microsoft has set up technology centers where various governments can inspect the Windows source code to satisfy themselves as to the security of the product.“There has to be a way for any country to be able to trust, through verification, the technology that they are using as part of a their infrastructure,” he said. “Mechanisms like that have to be in place, and then build trade on top of it instead of thinking of trade and trust as the same thing.”Two InternetsNadella said he worries about the development of two separate internets, noting that to some degree they already exist “and they will get amplified in the future” with massive technology companies already in place in China.The viewpoint clashes with Microsoft co-founder Bill Gates, who has been skeptical about the idea that ongoing U.S.-China trade tensions could ever lead to a bifurcated system of two internets.China and the U.S. are the two leading AI superpowers, however the cooling political relations between them have slowed the international collaboration.Even amid the tensions, countries should find ways to establish global norms around cybersecurity -- such as agreements not to hack each other’s citizens -- privacy and responsible AI, Nadella said. “Despite whatever trade dynamic causes people to separate, you would hope people would recognize we all benefit from more global norms, not less.“ Earlier this month, in a blog post about his goals for the year, Nadella said these areas are essential to earn and sustain people’s trust.Nadella also warned that countries that fail to attract immigrants will lose out as the global tech industry continues to grow. The CEO has previously voiced concern about India’s Citizenship Amendment Act, which bans undocumented Muslim migrants from neighboring countries from seeking citizenship in India while allowing immigrants from other religions to do so, calling it “sad.”“Every country is rethinking what is in their national interest,” he said. Governments need to “maintain that modicum of enlightenment and not think about it very narrowly,” Nadella said, adding that “people will only come when people know you’re an immigrant-friendly country.“However, Nadella said he remained hopeful. “I’m an India optimist,” he said. “The fact that there is a 70-year history of nation building, I think it’s a very strong foundation. I grew up in that country. I’m proud of that heritage. I’m influenced by that experience.”Carbon IssuesMicrosoft has recently unveiled plans to invest $1 billion to back companies and organizations working on technologies to remove or reduce carbon from the atmosphere, saying efforts to merely emit less carbon aren’t enough to prevent catastrophic climate change.“We will now have to make sure all our data center operations are first consuming renewable energy,” Nadella said.Microsoft and Amazon.com Inc., along with other technology companies, have been criticized for supplying software and cloud services to large oil and gas companies like Chevron Corp. and BP Plc. BlackRock Inc.’s Larry Fink has been trailed to work and public engagements by protesters decrying the investment firm for inaction on global warming and other issues.Activists have been pushing for companies to stop working with the largest producers of greenhouse gases. BlackRock has said it will cut exposure to thermal coal as the world’s largest asset manager moves to address climate change.Nadella declined to comment on whether Microsoft would stop working with the major carbon producers. “The energy transition is going to include all of us,” he said.(Updates with comment about global policies on security, privacy in 12th paragraph)To contact the reporters on this story: Dina Bass in Seattle at dbass2@bloomberg.net;Amy Thomson in London at athomson6@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Molly SchuetzFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Two powerful tech CEOs send a message to fans of shareholder capitalism
    Yahoo Finance

    Two powerful tech CEOs send a message to fans of shareholder capitalism

    Yahoo Finance chats with PayPal CEO and Salesforce co-CEO Keith Block about shareholder capitalism on the sidelines of the 2020 World Economic Forum.