BlackRock cares about money, not ‘woke’ politics
A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up The latest: US stock futures were sharply lower in premarket trading as Wall Street eyed the turbulence in the bond market.Government bond yields, which move opposite prices, have risen dramatically since the start of the year as investors brace for the Federal Reserve to respond more aggressively to the spike in consumer prices, which are rising at the fastest pace in nearly four decades.Fed officials have indicated in recent days that they’d be willing to hike interest rates more than three times this year if needed. While borrowing costs would remain near historic lows, that would mark a notable shift after a long period of rock-bottom rates.In a Deutsche Bank survey of roughly 500 market participants published Tuesday, higher-than-expected inflation and a more hawkish Fed tightening cycle were identified as the two biggest risks to market stability.The VIX, a measure of US market volatility, rose almost 13% this morning to its highest level so far this year.Over the weekend, billionaire investor Bill Ackman recommended on Twitter that the Fed initially hike rates by 0.5% instead of by 0.25% as expected in order to “restore its credibility” and “demonstrate its resolve on inflation.””The Fed is losing the inflation battle and is behind where it needs to be, with painful economic consequences for the most vulnerable,” Ackman said.Ben & Jerry’s, meet Aquafresh and AdvilUnilever (UL) is willing to pay big money for the company that makes products like Advil, Tums and Aquafresh toothpaste as it tries to revive its sluggish stock and ramp up its focus on health products.GlaxoSmithKline (GLAXF) said over the weekend that it had received three “unsolicited” proposals from Unilever to acquire its consumer healthcare business, which it runs as a joint venture with Pfizer. The latest had a price tag of £50 billion ($68 billion).No deal yet: GSK has rejected the offers, which it said were too low. It’s planning to spin off the division later this year, under pressure from shareholders including hedge fund Elliott Investment Management.Unilever could still sweeten its bid. The company said Monday that it’s pursuing a strategic overhaul that would involve expanding its portfolio of health, beauty and hygiene products. More details will be announced by the end of the month.But investors aren’t thrilled about the idea. Unilever’s shares fell 7% in London on Monday and are down another 2% in early trading on Tuesday.On the radar: Analysts at Berenberg said that Unilever should be careful about pivoting away from its food and drink business, which they said “actually offers some of Unilever’s most attractive categories,” such as ice cream and cooking ingredients.BNY Mellon, Goldman Sachs (GS), PNC (PNC) and Truist (TFC) report results before US markets open. J.B. Hunt follows after the close.Also today:The Empire State Manufacturing Index posts at 8:30 a.m. ET.The NAHB Housing Market Index follows at 10 a.m. ET.Coming tomorrow: Earnings from Bank of America (BAC), Morgan Stanley (MS), Procter & Gamble (PG) and United Airlines (UAL).
