BlackRock Fails to Dismiss States' Climate Lawsuit

BlackRock faces a US judge's rejection of its bid to dismiss a lawsuit by states over its climate push. The firm's Rieder thinks the Fed will cut rates in September. Oculis expands its loan facility with BlackRock to CHF100 million. AT&T will dual list on the NYSE Texas. BlackRock broadens its infrastructure product suite with an actively managed ETF. Schroders' profit beats forecasts, but the firm seeks deeper cost cuts this year.

A U.S. judge has largely rejected BlackRock Inc.'s bid to dismiss a lawsuit filed by Texas and 12 other Republican-led states. The lawsuit alleges that the asset management firm violated antitrust law through climate activism that reduced coal production and boosted energy prices [1]. U.S. District Judge Jeremy Kernodle in Tyler, Texas, agreed to dismiss just three of the 21 counts in the states' lawsuit, which also names institutional investors State Street and Vanguard. The ruling means the states can move forward with their claims against the companies [1].

BlackRock, along with State Street and Vanguard, has denied wrongdoing and called the case "half-baked." The companies together manage some $27 trillion in assets [1]. The outcome of the lawsuit could have significant implications for how these firms approach their holdings and passive funds.

Separately, BlackRock's chief investment officer, Rick Rieder, expects the Federal Reserve to cut interest rates in September, with potentially two or three cuts by year-end. Rieder anticipates a "modest uptick" in inflation from tariffs and a general moderation in prices [2]. The Federal Open Market Committee is expected to leave the federal-funds rate unchanged at its meeting on Wednesday, but traders are pricing in a 57.8% chance of a rate cut at the following meeting in September [2].

Oculis has expanded its loan facility with BlackRock to CHF100 million, reflecting the growing demand for sustainable finance solutions. Additionally, AT&T will dual list on the NYSE Texas, signaling a move to broaden its investor base. BlackRock has also broadened its infrastructure product suite with an actively managed ETF, further expanding its offerings to investors [3].

Schroders' profit beat forecasts, but the firm seeks deeper cost cuts this year. The company reported a 17% increase in pre-tax profit for the six months to June, driven by strong performance in its investment management division. However, Schroders aims to reduce costs further to improve its operational efficiency [3].

References:
[1] https://www.reuters.com/sustainability/boards-policy-regulation/blackrock-loses-bid-dismiss-texas-climate-collusion-lawsuit-2025-08-01/
[2] https://www.morningstar.com/news/marketwatch/2025073081/heres-what-investors-will-look-for-in-fed-messaging-on-interest-rate-policy
[3] https://www.reuters.com/world/us/weakening-us-jobs-market-hits-center-fed-rate-policy-debate-2025-08-01/