Blackstone’s Steve Schwarzman Worries About Energy Loan Shortage


Steve Schwarzman, the billionaire co-founder of Blackstone, has become the latest financier to raise the alarm about an energy crisis. (Latest sign: US oil prices hit $85 per barrel this week, a seven-year high.) Speaking at the Future Investment Initiative conference in Saudi Arabia, he warned and suggested that an energy shortage could lead to “real unrest” around the world. a provocative criminal.

Focus on ESG causes a credit crunch for oil and gas companiesSays Schwarzman et al. So-called environmental, social and corporate governance investment principles have encouraged investment giants to divest their holdings in oil and gas companies. According to Schwarzman, this has made it harder for the industry to invest in new wells and other capacity resources. “If you try to raise money to drill holes, it’s almost impossible to get that money,” he said. (Blackstone has invested in both fossil fuel and renewable energy companies.)

Schwarzman is not alone in his thinking. Even BlackRock’s Larry Fink, one of Wall Street’s biggest advocates of ESG adoption, worries that exits from the fossil fuel industry may be excessive. “We have these visions where we can go from a brown world and wake up to a green world tomorrow,” he said at the FII conference. “This will not happen.”

Schwarzman said governments should intervene. especially to help manage the transition to greener energy. “There’s something that needs to be done together, but how you’re going to get to a green world from where we are today is completely undefined,” Schwarzman said. Otherwise, political troubles await you: “You will see very unhappy people all over the world, especially in emerging markets but developed countries,” he added.

Note: leaders of Exxon Mobil, BP, Chevron and Royal Dutch Shell He will testify before Congress. tomorrow they will tell you what they know and when they know about their company’s role in climate change.

There is a minimum corporate tax on the table. Democratic lawmakers unveil a plan to impose a 15 percent tax At 200 largest US companies to help fund President Biden’s social spending plans. The proposal has one major backer: Arizona Democrat Senator Kyrsten Cinema, who has rejected other potential tax increases to pay off the Biden package.

An FDA advisory panel recommends Covid shots for kids. Experts said the agency should do it. Confirm the Pfizer-BioNTech vaccine For 5 to 11 year olds, it brings 28 million children closer to being vaccinated. The Biden administration sees children’s vaccinations as a way to keep schools open and the economy afloat.

Quarterly earnings reports tell us which boom technology. Microsoft reported biggest quarterly profit, again, as the pandemic is helping to spur huge demand for cloud software. and alphabet exceeded analyst expectations Because it largely negates the effects of Apple limiting ad tracking on iPhones. (Twitter also said that suffered less more than you fear.)

A sharp drop in crypto trading has hit Robinhood. Trading platform’s third-quarter revenue fell far below expectations, the increase in cryptocurrency transactions declined earlier in the year. Robinhood has warned that the fourth quarter will not be better and expects low retail trade to continue.

A riot at McKinsey over his advice to major polluters. More than 1,100 employees signed an open letter to the consulting giant’s top partners, asking them to: revealing the carbon footprint The firm’s clients, which include BP, Exxon Mobil, and Saudi Aramco. Some of the letter’s authors have resigned over the matter, The Times reported.

Ingredient shortages and difficulties in shipping goods plaguing global supply chains have not subsided as quickly as people expected. As yesterday’s earnings reports show, this worries corporate leaders and puts more focus on rising inflation to begin with.

Here’s what companies said yesterday:

  • GE: “We are feeling the impact of supply chain disruptions in many of our businesses, with the biggest impact to date in healthcare,” said Holding CEO Larry Culp.

  • Sherwin-Williams: Availability and cost of raw materials caused the paint company to report a 30 percent drop in quarterly profit from a year ago.

  • Hasbro: “Our airfreight expense in the third quarter was much higher than usual and we expect it to be higher in the fourth quarter,” said Deborah Thomas, CFO of the toy manufacturer.

These problems feed the rising inflation. Companies everywhere are raising prices. For example, as Kim Severson of The Times reports, nearly every part of Thanksgiving feast — from baking tins to turkey — more expensive this year. But a big question is how much companies can raise prices without affecting sales. (For one, Hasbro isn’t planning big hikes, despite higher shipping costs and forecasts of high demand for holiday gifts.)

Markets expect inflation to continue for a while. Bond investors, initially skeptical that higher prices will continue, bet on it now, reports Matt Phillips of The Times. The breakeven inflation rate, a key measure of where investors expect inflation to average over the next five years, hit 3 percent last week and is the highest in more than a decade. However, investors aren’t expecting higher interest rates just yet and are betting the Fed will keep rates low to prevent crooked supply chains from slowing the U.S. economy.


Volt Equity will launch a Bitcoin-linked exchange-traded fund on the NYSE tomorrow, DealBook is the first to report. This is the latest – but far from the last – example of a fund that allows mainstream investors to bet on Bitcoin without holding the cryptocurrency.

Volt’s fund is focused on the Bitcoin industry. Alongside eco-friendly cryptocurrency miners, Tesla will invest in a number of businesses such as payments company Square and Twitter that own Bitcoin or help people use cryptocurrency. “We believe Bitcoin is more than just a coin,” Tad Park, Volt’s CEO, said in a statement. “This is a revolution.”

  • Behind the ETF is the belief that casual investors want to be able to invest in Bitcoin, but professionals want to manage the complexity of investing in such a volatile asset. (The funds that actually hold the crypto have not yet been sanctioned by the SEC)

Its debut will follow the big splash of the first Bitcoin-linked ETF. More than 5.5 million shares Proshares Bitcoin fundLinked to crypto-linked futures, it changed hands only yesterday. (The launch helped push the Bitcoin price to a record high last week.)


Robert Willens, one of Wall Street’s top tax accountants on the difficulty of finding loopholes in the Democrats’ plan unrealized capital gains of tax billionaires.


Frédéric Arnault may only be 26 years old, but the relatively new CEO of watchmaker TAG Heuer has both his surname – the fourth child of Bernard Arnault, president of LVMH and the third richest man in the world – and ambition to become a company. strength in the industry dominated by his family, Vanessa Friedman of the Times writes.

Frédéric joined the other three brothers to enter the family business, TAG Heuer is one of LVMH’s 70-odd brands and a jewel of the holding’s watch operations. It may already have some success, with TAG Heuer growing its e-commerce business by 329 percent last year and signing actor Ryan Gosling as spokesperson. He created a list of mentors and mentors, including Dior Men’s artistic director Kim Jones and iPod inventor Tony Fadell.

He also shares his family’s passion for competitiveness. Frédéric often plays doubles tennis against his father (and a pro) and now claims to have won more games. “She hates losing,” a school friend told Vanessa. LVMH watchers believe Frédéric is destined to improve the company’s ranking.

Don’t just talk about “Succession”. The hit HBO show chronicles the intrigues of a powerful and unimaginably wealthy family. “No, unless you want to invite a lot of eye-rolling and distress,” Vanessa writes.

Opportunities

  • Sequoia Capital is massively overhauling its business and perhaps venture capital as a whole. (axioms)

  • Clothing rental company Rent the Runway will begin trading on the Nasdaq today after pricing its IPO above expectations. (NYT)

  • DraftKings is abandoning its £18.4 billion ($25 billion) takeover bid for British rival Entain. (FT)

  • Evercore has appointed John Weinberg as sole CEO; Its current co-CEO, Ralph Schlosstein, steps down in February. (WSJ)

Policy

  • How a broad agreement was made to overhaul global taxes. (NYT)

  • Facebook is reportedly struggling to recruit top Democratic lobbyists. (WSJ)

  • According to Moody’s, the private credit market poses a systemic risk to the US financial system. (FT)

  • Offering money to get people vaccinated doesn’t work, according to a new study. (Bloomberg)

best of the rest

  • “The World’s Best Business Cities Still Fail With Working Women” (Bloomberg)

  • What’s inside Facebook’s billion-dollar bet on the so-called Metaverse? (WSJ)

  • Netflix wants to turn a crumbling Army base in New Jersey into a massive movie and TV production hub. (NYT)

  • How do you manage your back-to-office anxiety? (Harvard Business Review)

  • Do people choose the Peloton or the gym? Yeah. (CNBC)

We want your feedback! Please email your thoughts and suggestions. dealbook@nytimes.com.



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