Finance

The Los Angeles wildfires that started on Jan. 7 are likely to be the costliest in U.S. history.
Residents impacted by the Palisades Fire and the Eaton Fire now face ample financial questions and worries, tied to issues like homeowners insurance and relocation.
It will take time to sort out many of their concerns.

Homes burn above Pacific Coast Highway during the Palisades Fire on Jan. 8, 2025, in Pacific Palisades, Calif. 
Photo by Jeff Gritchen/MediaNews Group/Orange County Register via Getty Images

Alicia Kalvin awoke the morning of Jan. 7 to an urgent text from a friend: “There’s a fire on your street.” She hurried outside, alarmed to see red skies and low-flying planes dumping water.
“I have to get out of here,” thought Kalvin, 53, who lives in the Pacific Palisades of Los Angeles.

Back inside, she glanced out the bathroom window and saw a hellish scene unfolding. It was a neighbor’s house engulfed in flames, embers spewing into her own yard.
Kalvin frantically threw on clothing. She grabbed her purse, her dog, a can of dog food and her mother’s ashes before fleeing her childhood home. She didn’t get an evacuation warning.
Flames licked the hills of the Los Angeles enclave as Kalvin drove away. She says she’s had nightmares ever since.
Three days later, she returned to the area with a police escort.
“I promised myself I wouldn’t look, but of course I looked,” said Kalvin. “It looks like 10 nuclear bombs went off. The whole neighborhood was just leveled — markets, churches, schools. It looked like a war zone.”

A mobile home park is destroyed during the Palisades Fire on Jan. 8, 2025. 
Jeff Gritchen/MediaNews Group/Orange County Register via Getty Images

In one sense, Kalvin is lucky because her home, somehow, is still standing.
But questions about her financial future abound — as they do for thousands of L.A. residents whose lives were upended by the recent wildfires.
There’s significant damage to Kalvin’s home. Some sections of the exterior, including the roof, are scorched; the landscaping and artificial lawn are destroyed; the interior smells of smoke; and ash, blown in through broken windows, blankets the hallways, Kalvin said.
She’s trying to untangle what her home insurance policy — the California FAIR plan, the state’s insurer of last resort, which steps in when residents can’t obtain coverage elsewhere — might cover.
“I’m very concerned at how much I’m going to have to spend if and when I fix up this house,” said Kalvin, who is single and doesn’t have kids. “Because insurance won’t cover everything.”
Even before the Palisades Fire, Kalvin faced financial challenges.
Work has dried up in Hollywood in recent years; Kalvin — an educator hired to teach child actors on television, movie and commercial sets — has had trouble finding gigs. She collects unemployment some weeks and funds income shortfalls with savings originally earmarked for retirement.
“My future is very up in the air,” she said. “And the uncertainty is very unsettling.”

‘There are no answers right now’

Patrick O’Neal sifts through the remains of his home after it was destroyed by the Palisades wildfire, in Malibu, California, Jan. 13, 2025.
Brandon Bell | Getty Images

The recent wildfires that erupted in Greater Los Angeles — fueled by hurricane-force winds and exceptionally dry conditions, exacerbated by climate change — are estimated to be among the costliest in U.S. history. They’ve killed at least 29 people.
AccuWeather estimates the blazes caused more than $250 billion in total damage and economic loss.
S&P Global Ratings projects the L.A. fires will cause roughly $40 billion of insured losses. That sum would exceed the roughly $13 billion of the Camp Fire in Paradise, Calif., in 2018, which was the costliest blaze in U.S. history.
“There are all sorts of costs associated with a disaster,” said Andrew Rumbach, a senior fellow at the Urban Institute who studies household risk to natural hazards and climate change.
“They pile up, and many Americans don’t have a [financial] cushion to rely on,” Rumbach said. “Our main way of dealing with that as an economy is going into debt. That lingers for a long time.”

The fires, largely contained, were still burning as of Thursday.
The blazes — the largest being the Palisades and Eaton Fires — have scorched more than 50,000 acres, an area exceeding the size of San Francisco, and destroyed more than 16,000 structures.
Most of those structures have been residential houses, S&P Global Ratings analysts wrote in a recent note.
The disaster pushed thousands of L.A. residents into one of the nation’s most expensive housing markets overnight. They were left with countless financial questions, compounding deep emotional scars: Considerations like where to live, how to clean up, whether to rebuild — and how to afford it all.
“Individuals are dealing with insurance, mortgages, the replacement cost of belongings, temporary housing,” said Sam Bakhshandehpour, 49, who’s lived in the Pacific Palisades for 13 years. “There are lots of near- and long-term variables and frankly there are no answers right now.”

I’m very concerned at how much I’m going to have to spend if and when I fix up this house. Because insurance won’t cover everything.

Alicia Kalvin
Pacific Palisades resident

Bakhshandehpour, an investment banker turned restaurateur, said the extent of damage to his home is unclear.
He wants to continue living in the Palisades, which he calls an “oasis” in L.A. — but acknowledges cleanup of debris and toxic materials and repair to local infrastructure “could be years.”
Indeed, the recovery period for L.A. residents could be two to five years or longer, Rumbach estimates.
Some residents may never be able to move back.
“Even if there is a desire on the part of the homeowners [to rebuild], it is unclear as to whether the land will be re-zoned such that it can no longer be developed,” according to S&P Global Ratings.

A ‘massive’ financial drain

Bakhshandehpour was able to find an unfurnished apartment in the interim. But furnishing a home from scratch has been a “massive” financial drain, he said.
There are some financial backstops that can help allay such displacement costs.
For example, victims may qualify for FEMA assistance. Applicants can get up to $770 upfront for basic needs like food and shelter while the government vets their application for more aid, potentially worth tens of thousands of dollars.

During a state of emergency, California law also requires home insurers to issue a cash advance worth at least 30% of a policyholder’s “dwelling” insurance limit, up to $250,000, without filing an itemized claim. They must also advance at least four months of coverage for living expenses.
“There is no comparison to the dollars you get from a home insurance policy,” said Amy Bach, executive director of United Policyholders, a nonprofit consumer advocacy group. “It has long been the most important source of funds to repair and rebuild, much more than any government program, for the vast majority of people.”
Some insurers are paying policyholders even more than the law demands, Ricardo Lara, the California insurance commissioner, said Jan. 23. However, others “are not adhering” to those consumer protections, Lara said.

Only a ‘ghost town hellscape’ remains

Melted lawn chairs are seen near the remains of a burnt home after the Palisades Fire. 
Agustin Paullier | Afp | Getty Images

The rules on advance insurance payments only apply for policyholders with a “total loss.”
But Julia Pollak’s home is considered a “partial” loss. Her insurer, State Farm, paid a $15,000 advance on the home’s contents and also authorized coverage for two months of living expenses. Both amounts are less than guarantees for those with a total loss.
Her house, in the Marquez Knolls part of the Pacific Palisades, is damaged but still standing — a white home now surrounded by “wasteland,” she said.
“There’s a row of seven houses standing. All the rest are gone,” said Pollak, a labor economist. “My house now looks out on a ghost town hellscape.”
She and her family — a husband and four kids, including a newborn — are in limbo in many respects.

For one, the insurance proceeds they’ve received so far aren’t enough to commit to a long-term lease, Pollak said.
“I looked into liquidating my 401(k) for emergency purposes, but the tax consequences are not very nice,” Pollak said. “So, I’m going to try not to do it.”
Thus far, the family has hopped from AirBnb to AirBnb. They don’t know where they’ll live after Feb. 5, when their current rental expires on a two-bedroom in Santa Monica.
More from Personal Finance:How climate change is reshaping home insurance in the U.S.7 steps homeowners and renters should take after a wildfireWildfire victims may receive a one-time $770 payment
State Farm urged Pollak to use its third-party vendor to find future temporary housing — a cost the insurer would pay for directly, rather than via reimbursement. As of Thursday, Pollak was awaiting approval for certain properties she’d identified. She worries they’ll be snapped up in the interim.
“As Feb. 5 approaches, I am getting pretty nervous,” she said.
Then, there are longer-term questions.
The back side of their home is scorched. Everything inside reeks of smoke; various consultants have warned the smell won’t disappear unless insulation and ducting is replaced. Contractors have recommended a “full gut” and a replacement of all porous, hard-to-clean items like carpets, couches and upholstered beds, Pollak said. They must wait for the insurer’s determination.

To stay or to go?

There’s an additional tension here: It may be difficult to stay in the Palisades, but it’s also financially difficult to leave.
Pollak and others she knows whose homes are still standing worry insurers will deem their homes livable in a few months. She wonders, would they be residing in a construction zone for five years with no neighbors, businesses or schools nearby?

Emergency vehicles are on the side of the road as flames from the Hughes Fire race up the hill in Castaic, a northwestern neighborhood of Los Angeles, California, on January 22, 2025.
Frederic J. Brown | Afp | Getty Images

Pollak and her husband bought their home in 2019 for about $2.75 million. Its value had grown to about $3.8 million before the wildfires, according to a Redfin estimate — the family’s biggest financial asset.
Now, they likely can’t sell or rent it for anything close to pre-fire value, Pollak said.
“Ideally, we’d keep it and enjoy it in five to 10 years when it blossoms again,” Pollak said. “But the carrying costs are so high that we can’t pay the mortgage without living there and also pay for comparable accommodation elsewhere.” 

An uncertain future

Search and rescue members work with firefighters through residential damage from the Eaton Fire as wildfires cause damage and loss through LA region on Jan. 14, 2025 in Altadena, California.
Benjamin Fanjoy | Getty Images

For all she and her family have endured, Pollak considers herself lucky: At least they have insurance.
Many insurers have stopped writing policies in California or limited their exposure due to wildfire risk. Homeowners who lost coverage may not have renewed it, while others may have foregone insurance altogether in the face of higher premiums — and those rates will likely increase in the future after the L.A. fires, said S&P Global.
Two-thirds or more of L.A. fire victims will find they were underinsured, said Bach of United Policyholders. That means their insurance policy won’t cover the full cost of rebuilding or repairing property.
For example, 36% of victims who filed insurance claims after the 2021 Marshall Fire in Boulder County, Colorado, were “severely” underinsured, according to a recent study by researchers at the University of Colorado Boulder and University of Wisconsin-Madison.
Their coverage was less than 75% of the actual cost to fix their home, the study found. That means policyholders rebuilding a $1 million home would need an extra $250,000 or more out of pocket, Tony Cookson, finance professor at the University of Colorado Boulder and a co-author of the study, said in a statement.

My house now looks out on a ghost town hellscape.

Julia Pollak
Pacific Palisades resident

State Farm, the state’s largest insurer, dropped Kalvin, the L.A. resident and teacher, in July 2024. She switched to the California FAIR Plan.
The policy has more meager coverage than her former policy, Kalvin said. She’s filed an insurance claim but hasn’t yet received any funds. As of Thursday, an insurance adjuster hadn’t yet been assigned to her case.
For now, her basic needs are being met. Kalvin is staying with a friend in Santa Monica and doesn’t have a mortgage on her Palisades home. While her bills are limited — largely for groceries, and health and auto insurance — she feels stretched given it’s been hard to get more than two days of work per week.
She doesn’t know what her future holds — and whether it will be in the Palisades.
“I probably would continue living there, because I have such love for the Palisades,” she said. “It’s home. But it’s so changed now. And I don’t know how I would feel.” More

LESS THAN two weeks into his new administration, Donald Trump has placed large tariffs on America’s three biggest trading partners—raising the spectre of a global trade war. With executive orders signed on February 1st, he initiated tariffs of 25% on imports from both Canada and Mexico, and added levies of 10% to imports from China. Although Mr Trump had vowed to do just this, his actions will still represent a shock to the global economy. They will drive up prices, weigh on growth and sow uncertainty for businesses. Moreover, they are likely to be just the first salvo for Mr Trump, who is itching to implement tariffs that are both more aggressive and more global. More

More than a dozen initial public offerings have started trading so far in 2025, with the latest launching Thursday. But these launches have largely been met with tepid market reaction. The Nasdaq’s president still thinks this year could be the IPO market’s comeback year. 
“I do think we start seeing things really start to pick up more in the back half of the year. But even the first half of the year, we’re starting to see some activity already,” Nasdaq president Nelson Griggs told CNBC’s “ETF Edge” this week.

Griggs compared the IPO market to a pendulum: It swings between waves of private and public investment. “We have a track record now,” Griggs said. “If you get three straight years of having limited capital raised in public markets, there’s an enormous pipeline.”
But it’s not all simple launches in that IPO pipeline. Panera Brands has faced roadblock after roadblock for years in its attempts to go public. Twin Peaks, the sports bar that started trading Thursday, is a spinoff of Fat Brands intended to help pay off debt. Even the newer companies and AI players such as OpenAI seem to be thriving and raising money in the private market, giving them little incentive to go public.
Griggs did acknowledge recent innovation in the private sector has allowed companies to access more liquidity and continue to raise funds without launching an IPO. 
“There is a massive convergence of public and private, because even in the private space, you can now have access to more liquidity,” he said. “But if you want deep, sustained liquidity, you need to go public.”
According to Griggs, that innovation does not mean that the private investment landscape has changed forever. He pointed to shifts in the markets as signs that the incentive to go public is returning. “Yields start doing better, valuation discounts kind of compress a bit, then the public markets get healthy again.”
Disclaimer More

Ten travel agents provided their picks for the most underhyped places to visit in the world.
They weigh in with their rationale, as well as can’t-miss activities and the best times to go.

Klaus Vedfelt | Digitalvision | Getty Images

Looking for travel inspiration for 2025 and beyond?
Look no further: CNBC asked 10 travel agents for their recommendations of the most underhyped destinations in the world. We compiled their written answers below, including can’t-miss activities for each locale and the best times of year to visit.

You’ll also find average round-trip airfare from U.S. airports. The data, provided by travel app Hopper, is based on average fares that were available to book from Jan. 15 to Jan. 22. Prices are for May-July 2025, when most Americans plan to take their longer vacations, Hopper said.
Travelers should aim to book over the next few weeks to score the best prices, it said.

Albania

Valbona National Park, Albania.
Eduardo Fonseca Arraes | Moment | Getty Images

Recommended by: Scott Abbott, managing director of Wilderness Travel
Why to visit: “The Albanian Alps, also known as the Accursed Mountains, are a mountain range very few people know about, so are totally untouched by tourism. But have some of the most gorgeous and dramatic hikes in all of Europe. They also have guesthouses, mountain huts and hotels that feel like what the Alps were like 30-plus years ago, all owned by local families and run in a traditional way very authentic to the place and culture.”
Can’t-miss: Hiking in Valbona Valley National Park

Best time to go: June to September
Average flight price: $926 to Tirana, Albania

Ecuadorian cloud forest

Cloud forest in Ecuador.
Gerard Puigmal | Moment | Getty Images

Recommended by: Allie Almario, South America and Galapagos expert at Premier Tours
Why to visit: “Most people think of Costa Rica when they think of cloud forest, but Ecuador also has the lure of the Galapagos Islands, so it’s a terrific combination. About three hours from the capital city of Quito, Ecuador, the cloud forest feels primeval and otherworldly.
“I love the Mashpi Eco Lodge, which is on the cusp of the rain and cloud forest in a private sanctuary. You’ve got incredibly rich biodiversity in this remote area — so remote the silence is almost deafening.”

Can’t-miss: “Mashpi Lodge offers an activity called the Dragon Fly — it is up to an hour ride in an open air cable car (seating only for four guests at a time and a naturalist) where you soar over the tree canopy. You hear nothing but the wind and bird calls and the distant crash of waterfalls 500 feet below you. The butterflies are like confetti.”
Best time to go: “Temperatures are pretty consistent throughout the year, but the main difference is rainy vs. dry season. Be prepared and either way, hiking in the cloud and rain forest will always be an adventure.”
Average flight price: $588 to Quito, Ecuador

Hamburg, Germany

The canals of Hamburg, Germany
Inigo Cia | Moment | Getty Images

Recommended by: Kareem George, CEO of Culture Traveler
Why to visit: “This ultra chic city is beautiful, sophisticated and extremely fun, with a variety of attractions for diverse ages and interests. The setting of the city is quite picturesque, nestled between the Elbe River and Alster Lake with many canals in between. It is an extremely walkable city with many historic attractions in the city center — such as the Rathaus (City Hall) and St. Nikolai Church — flanked by very cool neighborhoods such as the Speicherstadt (Warehouse) District, raucous St. Pauli and the quirky Schanzenviertel.”
Can’t-miss: “Two of the many must-see attractions are the iconic Elbphilharmonie and the unique Miniatur Wunderland. Advance tickets are highly recommended for both.”
Best time to go: “Hamburg is truly a destination for all seasons, however I particularly enjoyed a recent visit in the fall. The weather was perfect and it was wonderful to stroll along the lake, canals and to explore several neighborhoods on foot.”
Average flight price: $1,090

Kyushu, Japan

A hot spring resort in Kurokawa Onsen, in Kyushu, Japan.
Bohistock | Moment | Getty Images

Recommended by: Kristin Braswell, founder of CrushGlobal Travel
Why to visit: “Brimming with natural beauty at every corner, the southern island of Japan’s Kyushu may be overlooked for its popular northern neighbors like Tokyo and Kyoto, but it’s just as thrilling. Teeming with active volcanoes, palm-forested coastlines and bubbling onsens [hot springs] to retreat in, you will be enamored at every turn by the great, wide outdoors here. I highly recommend visiting the electric metropolis, Fukuoka, and Beppu, a mountainside jewel that is home to the most spring waters in the country.”
Can’t-miss: “Visiting the famous onsens, particularly the Jigoku Circuit, which are all grouped and within walking distance. They are a sight to see.”
Best time to go: “In spring, during cherry-blossom season and when the weather is pleasantly warm, or the fall, as the foliage begins to change with the seasons.”
Average flight price: Top three airports in Kyushu, by popularity from U.S. cities based on search demand:

Fukuoka: $1,326
Nagasaki: $1,617
Kumamoto: $1,594

Lençóis Maranhenses National Park, Brazil

Lençóis Maranhenses National Park, Brazil.
Ignacio Palacios | Stone | Getty Images

Recommended by: John Lansdell, planner at Trufflepig Travel
Why to visit: “Remote and staggeringly beautiful, this park of sand dunes, mangroves and freshwater lagoons is prime for both relaxing in and exploring — swimming, dune walks and quad tours, birding, etc.”
Can’t-miss: Swimming in the lagoons.
Best time to go: “When to visit is subjective, but high season is July and August: Full lagoons; warm, not too hot; rains have passed, but the gateway towns are busy. Either side of these months may be the best bet, although the park itself, a UNESCO World Heritage Site, is vast and won’t feel overly busy in high season.”
Average flight price: $1,069 to Sao Luis, Brazil

The Nordic countries (Sweden, Denmark, Finland, Norway)

Old town and town square in Stockholm, Sweden.
Leonardo Patrizi | E+ | Getty Images

Recommended by: Melissa Wu, founder of Woodlyn Travel
Why to visit: “The Nordics offer a great variety of destinations and activities, from the bustling nightlife and modern hotels of the cities, to rural pastimes like dog sledding and gazing up at the amazing northern lights. Classic Nordic activities like saunas and cold plunges share the stage with farm-to-table culinary extravaganzas. And the dollar is very strong right now, so you’ll get your money’s worth on some of the best seafood you’ll ever eat.”
More from Personal Finance:What to expect from travel prices in 2025Demand for international trips drives ‘travel momentum’Here are 4 big ways to save on your next trip
Can’t-miss: “Sweden’s capital and largest city, Stockholm, is known for a great museum scene with some truly unique attractions. The ABBA museum is a must-see for music lovers, while the Viking Museum and Vasa Museum, which houses a salvaged 17th century ship, pay tribute to Sweden’s history. And no visit would be complete without a stop at the Spiritmuseum, which celebrates Sweden’s drinking culture.”
Best time to go: “The Nordics offer something unique no matter what time of year you visit. Long summer days give way to amazing fall foliage, followed by Christmas markets and ice hotels during the wintertime, and lovely island-hopping adventures in spring. Stockholm’s cherry-blossom trees bloom in mid- to late-April, with a gorgeous display that rivals more well-known (and crowded) spots like Washington, D.C. and Kyoto.”

Average flight price:

Copenhagen: $769
Helsinki: $890
Oslo: $826
Stockholm: $801

The Philippines

Boats on the serene, azure waters near Coron Palawan, Philippines.
Travelstoxphoto | Moment | Getty Images

Recommended by: Tesa Totengco, founder and CEO of Travels with Tesa
Why to visit: “Although it is very much a part of Southeast Asia, the Philippines is off to the side from the rest of its neighbors. I suggest devoting your entire trip to the country and island-hopping.
“It has some of the most beautiful white powdery sand beaches (Palawan, Boracay, Bohol). There is a thriving contemporary art scene (Art Fair in Manila, held in February), and galleries supporting local artists (Silverlens, Artinformal, Gravity Art Space, Orange Project). In the capital, you can tour Old Manila and learn of the past from the 16th century Spanish colonialization right up to the American War liberating the country from Japanese occupation. There are pop-up shops throughout the year that celebrate Filipino design, and celebrated chefs with their own restaurants celebrating Filipino cuisine. It’s a predominantly English-speaking country, so the traveler will never feel lost.”

Can’t-miss: “This country is made up of over 7,000 islands, each unique in culture, history and flavor. It’s best to make a ‘halo-halo’ (meaning ‘mixed’) experience: Not just beach, for which the country is most famous.”
Best time to go: “It’s a tropical country, so the Philippines is hot and humid year round. Avoid the rainy season from June to October and come from December to February when the country is at its coolest.”
Average flight price:

Manila: $1,296
Cebu City: $1,446
Angeles City: $1,461

Tunisia

Sidi Bou Said, a town in northern Tunisia.
Max Shen | Moment | Getty Images

Recommended by: Sofia Markovich, owner of Sofia’s Travel
Why to visit: “Tunisia is home to some of the world’s most well-preserved Roman ruins, including the iconic El Jem Amphitheatre, a UNESCO World Heritage site that rivals Rome’s Colosseum in grandeur. Carthage, once a powerful city-state, showcases the remnants of an ancient civilization that shaped Mediterranean history.
“From the rolling dunes of the Sahara Desert to the pristine beaches of Hammamet, Sussa and Djerba, the country offers a variety of settings for adventure and relaxation. Matmata’s troglodyte homes, famously featured in Star Wars films, add a touch of cinematic wonder to the experience.”
“Tunisia’s cuisine is a highlight that captivates food lovers. With its bold flavors and Mediterranean influences, dishes like brik (a savory pastry), couscous and harissa-infused stews offer an authentic taste of the region. The country’s burgeoning wine industry adds to its allure.”

Amphitheatre of El Jem in Tunisia.
Westend61 | Westend61 | Getty Images

Can’t-miss: “Sidi Bou Said, with its white-washed houses and blue doors; and Carthage.”
Best time to go: “Tunisia is great to visit year-round”:

Spring (March-May): “Warm, ideal for exploring ruins and nature.”
Summer (June-August): “Hot, perfect for beaches but avoid inland heat.”
Autumn (September-November): “Mild, great for both beaches and culture.”
Winter (December-February): “Cool, best for the Sahara and fewer crowds.” 

Average flight price: $1,360 to Tunis

Uzbekistan

Bibi Khanum Mosque in Samarkand, Uzbekistan.
Izzet Keribar | Stone | Getty Images

Recommended by: Jonathan Alder, CEO of Jonathan’s Travels
Why to visit: “This incredible melting pot of cultures is one of the most stunning destinations in the world, with architecture, history and nature that would surprise even the most experienced traveler. 
“Its cuisine — a melting pot of Persian, Indian, Italian, and Chinese with hints of Russian — is a foodie’s dream. Once the heart of the Silk Road, the architecture doesn’t look like anything else you’ve ever seen. I love to start in the capital of Tashkent, which is a modern metropolis, then head to the ancient side of the country at the far end of the desert to step back in time. The mosque of Samarkand is one of the most incredible architectural highlights you’ll see in your life.
“Getting out of the cities, you can head into the mountains, which are essentially the back of the Himalayas, for incredible nature and green valleys outside of the stark, dramatic desert that you get for most of the rest of the country.”

The Old Town in the City of Bukhara, Uzbekistan.
Mlenny | E+ | Getty Images

Can’t-miss: “Samarkand. This was once the capital of the Silk Road, the crossing point for all trade routes between Europe and Asia. The sites here are the biggest in the country and some of the top highlights.”
When to go: “Spring and fall. The summers are quite hot and the winters get very cold. You can also make this a ski destination in the winter and combine it with the rest of the country.”
Average flight price:

Tashkent: $1,470
Samarkand: $2,226

Western Australia

James Price Point, Western Australia.
Luke Mackenzie | Moment | Getty Images

Recommended by: Kemi Wells-Conrad, founder and president of Wells Luxury Travel
Why to visit: “Everyone typically thinks of Sydney and the East Coast of Australia — and don’t get me wrong, it is a beautiful coastline. But I have always been a huge fan of Western Australia. It is incredibly diverse, and the landscapes are truly magnificent.
“Perth is your starting point and known as one of the most isolated cities in the world. There is world-class wine further south in Margaret River. The coast is filled with some of the most beautiful beaches in the world, such as Monkey Mia and Ningaloo Reef, which also are teeming with amazing marine life. The Kimberleys are wild, rugged and unique.”

Bungle Bungles, beehive-shaped sandstone towers in Purnululu National Park, in Eastern Kimberleys, Western Australia.
Michael Runkel | Imagebroker | Getty Images

Can’t-miss: “Ningaloo Reef. Forget the crowds of the Great Barrier Reef out of Cairns — imagine a pristine reef with no crowds. You can also swim with whale sharks here March to August. The luxury glamping experience at Sal Salis is a unique experience.”
When to go: “April to September. This is the sweet spot, their ‘winter.’ The temperatures are mild, however still much warmer than our northern hemisphere winter. And it would allow you to travel further north to the Kimberleys — outside of their wet season and before it heats up again from October on.”
Average flight price:

Perth: $2,043
Broome: $3,094 More

President Donald Trump is imposing a 25% tariff on Canada and Mexico and a 10% tariff on China starting Saturday, the White House said.
Tariffs will likely result in higher prices for U.S. consumers, both directly and indirectly, economists say.
Tariffs are a tax on foreign imports that are paid by the U.S. businesses importing those products. The businesses will likely pass those costs to customers, economists said.

President Donald Trump on Jan. 27, 2025 in Doral, Florida.
Joe Raedle | Getty Images News | Getty Images

President Donald Trump has repeatedly discussed imposing tariffs, both during the campaign and since taking office, and the first tranche, on goods from Canada, China and Mexico will take effect Feb. 1, the White House confirmed Friday.
While there are still some unknowns, one thing is clear, economists said: U.S. consumers should brace for a negative financial impact.

It’s “hard to find positives” from tariffs, said Mary Lovely, a senior fellow at the Peterson Institute for International Economics, whose research specializes in trade with China and global supply chains.
Trump plans to put 25% tariffs on Mexico and Canada, and a 10% duty on China, Karoline Leavitt, the White House press secretary, said Friday.
China, Mexico and Canada are the three largest trading partners with the U.S., as measured by imported goods. They supplied about $536 billion, $455 billion, and $437 billion of goods, respectively, to the U.S. in 2022, according to the Office of the U.S. Trade Representative.

Tariffs are a tax on foreign imports. U.S. businesses that import goods pay that tax to the federal government.
Many businesses will funnel those extra costs to customers — either directly or indirectly — which is why tariffs generally trigger higher prices for consumers, economists said.

“Part of these tariffs will be passed on to consumers,” Lovely said.
Americans could also find they have fewer choices for brands and products stocked on store shelves, she said.

Exemptions may ‘limit the damage’ to consumers

There are still many question marks over the looming tariffs on Canada, China and Mexico.
For example, it’s unclear if any imports will be exempt. Trump suggested Thursday night, for example, that Canadian oil might be exempt. The White House said the tariffs will be open for public inspection on Saturday.
Discussions around such specifics are “ongoing,” a White House official told CNBC on Friday morning.

“There are always exemptions and carve-outs,” said Mark Zandi, chief economist at Moody’s.
Trump might try to “limit the damage to the U.S. consumer” via those exemptions, Zandi said. For example, he could choose not to impose duties on apparel from China, avocados from Mexico or cheese from Quebec, he said.

Economic impact

The White House said tariffs and Trump’s broader economic agenda will benefit the U.S. economy.
White House spokesman Kush Desai said tariffs Trump imposed in his first term — along with tax cuts, deregulation and energy policy — “resulted in historic job, wage, and investment growth with no inflation,” and that in his second term Trump will use tariffs to “usher in a new era of growth and prosperity for American industry and workers.”
Economists, however, disagree.
More from Personal Finance:What federal workers need to consider when evaluating offer to resign2025 is a ‘renter’s market,’ housing economist saysConcert ticket prices have soared, but music fans don’t seem to care
A 25% Canada-Mexico tariff and 10% China tariff would raise about $1.3 trillion in revenue through 2035 on a net basis, the Committee for a Responsible Federal Budget estimated. That revenue may be used to partially offset the cost of tax cuts, a package that might cost more than $5 trillion over 10 years.
However, a 10% additional tariff on China would shrink the U.S. economy by $55 billion during the Trump administration’s second term, assuming China retaliates with its own tariffs, according to an analysis by Warwick McKibbin and Marcus Noland, economists at the Peterson Institute for International Economics.
A 25% tariff on Mexico and Canada would cause a $200 billion reduction in U.S. gross domestic product, they found.

Meanwhile, economists expect more tariffs in the future.
On the campaign trail, Trump floated a 10% or 20% universal tariff on all imports and a tariff of at least 60% on Chinese goods, for example.
A 20% worldwide tariff and a 60% levy on Chinese goods would raise costs by $3,000 in 2025 for the average U.S. household, according to an October analysis by the Tax Policy Center.
“Broad-based, universal tariffs and the damage they will do is not really a debate,” Zandi said. “They will do damage. It’s just a question of how much and to whom.”

How tariffs may impact consumers

Consumers could pay for tariffs both directly and indirectly, economists said.
Tariffs on China would likely have the largest direct impact on consumers, as the bulk of what China exports to the U.S. is consumer goods such as apparel, toys and electronics, Zandi said.
China is the “dominant supplier” of toys and sports equipment to the U.S., and provides 40% of its footwear imports and 25% of its electronics and textiles, according to a recent analysis by PIIE economists.
Mexico and Canada tariffs would also “put upward pressure on food prices,” according to PIIE economists.
The nations are “important sources” of vegetables, accounting for 47% of total U.S. imports, and prepared foodstuffs, 42%. Transportation equipment and machinery, electronics and fuel are other sectors that stand to be most affected, they found.
“The U.S. imports roughly 40% of its crude oil, with Canada as the dominant supplier,” Nigel Green, CEO of deVere Group, a financial consulting firm, said in a written statement.
“If oil is hit with tariffs, the impact could hit energy markets, pushing up costs for businesses and consumers,” Green wrote.
However, domestic energy producers, certain U.S. manufacturers and other industries “could see short-term gains from reduced competition,” he added.
Indirectly, U.S. producers might raise their prices because they face less foreign competition for certain goods, Lydia Cox, an assistant professor of economics at the University of Wisconsin-Madison, said during a recent webinar.
U.S. companies that use tariffed goods to manufacture their products might also raise prices for downstream goods, Cox said. For example, steel tariffs might lead to higher prices for cars, heavy machinery and other products that use steel.

Tariffs ‘create a lot of collateral damage’

Other nations might also respond with retaliatory tariffs that start a trade war, which might cause U.S. producers to lose sales abroad, she said.
“Unlike Canada and Mexico, for which retaliation would be inconceivable, China has retaliated in the past and would likely do so again,” PIIE economists wrote recently.
Further, tariffs may have the unintended consequence of destroying jobs, economists said.
Tariffs’ ability to create U.S. jobs is “vastly, vastly overstated,” said Lovely of PIIE.
Take steel, for example. There are 80 workers in industries that use steel as an input for every one job that produces steel, Cox found in a recent paper.
Tariffs create “a lot of collateral damage along the way,” which is why economists warn against broad-based use, Cox said. More

Commerzbank bank said it achieved a 20% increase in net profit to 2.68 billion euros ($2.78 billion) in 2024. This compares with a $2.47 billion net profit forecast for the period, according to a consensus estimate cited by Reuters.
The group will deliver its annual strategy update and outlook on Feb. 13.
“We have exceeded our capital return promise to our shareholders,” said Commerzbank CEO Bettina Orlopp in a statement accompanying the results.

A “mild recession” is on the cards, according to Commerzbank CEO Manfred Knof.
Picture Alliance | Picture Alliance | Getty Images

Commerzbank on Friday unexpectedly released quarterly results, touting “record” annual profit and announcing a new share buyback scheme.
The bank said it achieved a 20% increase in net profit to 2.68 billion euros ($2.78 billion) in 2024. This compares with a $2.47 billion net profit forecast for the period, according to a consensus estimate cited by Reuters.

The group laid out intentions to repurchase 400 million euros of shares and proposed to lift its dividend payout to 0.65 euros per share, compared with 0.35 euros per share in the previous year.
Shares in the lender ended the day 1.7% higher.
Other annual highlights included net income of 8.33 billion euros in 2024, versus 8.37 billion euros in the previous year, with the bank noting it benefitted from foreign exchange valuation effects in the fourth quarter. Its return on tangible equity — a measure of profit performance — picked up to 9.2% in 2024 from 7.7% in 2023, exceeding the group’s target of hitting at least 8%.
The group had originally listed plans to publish its fourth-quarter and annual earnings on Feb. 13, when it also intends to deliver its annual strategy update and outlook. The early release falls in step with German legal requirements when the amount of capital return significantly surpasses the expectations of capital markets.
The results come as Commerzbank has been making a case to stand alone, after a surprise stake build from Italy’s second-largest lender UniCredit stoked market speculation of interest in a potential takeover. UniCredit now owns a direct 9.5% stake and a 18.5% stake via derivatives in Commerzbank, after first building its stake in September, then subsequently increasing its position.

The move has been met with resistance from the German government, whose Finance Minister Jörg Kukies criticized UniCredit’s “very aggressive, very opaque” bid in a CNBC interview last week.
“We have exceeded our capital return promise to our shareholders,” said Commerzbank CEO Bettina Orlopp in a statement accompanying the results, citing cost management and growth initiatives as driving the profit increase.
“Thanks to increasing profitability and new growth initiatives, we will further enhance capital return in the coming years. Commerzbank is and remains an attractive investment,” she noted.
Since its September overture, UniCredit has also launched a takeover bid for domestic Italian peer Banco BPM, raising questions on whether it will press ahead with a domestic or German venture. More

The tech-driven Nasdaq 100 may be undergoing a historic shift as it turns 40 this week.
According to Strategas Securities’ Todd Sohn, cryptocurrency companies could fuel the next wave of gains.

“Bitcoin is to crypto as the QQQ … is to technology type stocks,” the firm’s exchange-traded fund and technical strategist told CNBC’s “ETF Edge” this week. “Bitcoin is going to be the biggest. The Qs will be the biggest.”
As of Thursday’s close, the Nasdaq 100 is up 17,106% since its Jan. 31,1985, inception. President Donald Trump’s election helped fuel bitcoin record highs due to high hopes on deregulation. The cryptocurrency is trading around the $104,000 level.
Sohn thinks a buildout of the crypto universe is already taking shape.
“I think that’s already happening based on some of the recent filings we’ve seen,” he said.
Sohn also dives into the popularity of the crypto options business.

“With crypto, you can now build out a risk management,” said Sohn. “Say … I want to gain some upside, but I would like income. So, I’m going to buy a covered call crypto ETF … just to limit any volatility and keep the weekly or monthly income streams coming. So, this is all sort of important stuff that’s going to keep happening via [the] Nasdaq.”
The crypto ETF market has been booming. According to FactSet, BlackRock’s iShares Bitcoin Trust ETF (IBIT), which was launched on Jan. 5, 2024, and trades on the Nasdaq, has amassed more than $58 billion in assets as of Tuesday.
Nasdaq President Nelson Griggs sees regulatory clarity as a key factor in crypto’s future growth.
“A whole sector gets developed around something like digital crypto. And now potentially having more clarity on the rules of what it actually is going to be,” Griggs said in the same interview.

Disclaimer More

OpenAI is in talks to raise new capital at a valuation of up to $340 billion, CNBC has confirmed
SoftBank would contribute $15 billion to $25 billion of the roughly $40 billion being invested.
OpenAI faces growing competition in the generative artificial intelligence market, including from China’s DeepSeek.

OpenAI CEO Sam Altman speaks next to SoftBank CEO Masayoshi Son after U.S. President Donald Trump delivered remarks on AI infrastructure at the Roosevelt Room in the White House in Washington on Jan. 21, 2025.
Carlos Barria | Reuters

OpenAI is in talks to raise up to $40 billion in a funding round that would lift the artificial intelligence company’s valuation to as high as $340 billion, CNBC has confirmed.
Masayoshi Son’s SoftBank would lead the round, contributing between $15 billion and 25 billion, according to two people familiar with the negotiations who asked not to be named because the talks are ongoing. SoftBank would surpass Microsoft as OpenAI’s top backer.

The Wall Street Journal was first to report on the talks.
Part of the funding may be used for OpenAI’s commitment to Stargate, a joint venture between SoftBank, OpenAI and Oracle that was introduced by President Donald Trump last week, the sources said. The plan calls for billions of dollars to be invested in U.S. AI infrastructure.
OpenAI was last valued at $157 billion by private investors. In late 2022, the company launched its ChatGPT chatbot and kicked off the boom in generative AI. OpenAI closed its latest $6.6 billion round in October, gearing up to aggressively compete with Elon Musk’s xAI, as well as Microsoft, Google, Amazon and Anthropic.
Meanwhile, Chinese startup lab DeepSeek is blowing up in the U.S, presenting fresh competition to OpenAI. DeepSeek saw its app soar to the top of Apple’s App Store rankings this week and roiled U.S. markets on reports that its powerful model was trained at a fraction of the cost of U.S. competitors.
At an event in Washington, D.C., on Thursday hosted by OpenAI, CEO Sam Altman said DeepSeek is “clearly a great model.”

“This is a reminder of the level of competition and the need for democratic Al to win,” he said. He said it also points to the “level of interest in reasoning, the level of interest in open source.”

Don’t miss these insights from CNBC PRO More