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    UBS shares retreat 6% as fourth-quarter profit beat, $3 billion buyback fail to impress

    Swiss banking giant UBS on Tuesday posted $770 million in fourth-quarter net profit, compared with a mean forecast of $886.4 million in a LSEG poll of analysts and with a $483 million estimate in a company-provided estimate.
    The group announced plans to repurchase $1 billion of shares in the first half of 2025, along with up to an additional $2 billion over the second half of this year.

    UBS shares lost ground after the lender’s fourth-quarter results and up to $3 billion share buyback plans failed to impress.
    Switzerland’s largest bank on Tuesday reported net profit attributable to shareholders of $770 million, compared with a $483 million estimate in a company-provided consensus estimate and with a mean forecast of $886.4 million in a LSEG poll of analysts.

    Group revenue over the period hit $11.635 billion, versus analyst expectations of $11.64 billion in a LSEG analyst poll.
    The bank also announced plans to repurchase $1 billion of shares in the first half of 2025, along with up to an additional $2 billion over the second half of this year — but caveated that this target is subject to the lender achieving its “financial targets and the absence of material and immediate changes to the current capital regime in Switzerland.”
    The group further proposes a $0.90-per-share dividend for the 2024 financial year, up 29% year-on-year.
    Shares of UBS opened in positive territory, but were down 5.57% at 9:54 a.m. London time.
    Deutsche Bank analysts noted “solid” fourth-quarter results but signaled that “the divisional mix could have been better,” given the performance of the Personal & Corporate Banking unit — which notched a 8% increase in the fourth quarter, “largely reflecting improvement in other income, partly offset by lower net interest income,” according to UBS.

    “On balance a decent set of results, but perhaps not as good as at first glance,” Citi analysts said, flagging the welcome cost and dividend beat, but stressing that overall cost and cost-income guidance for end-2026 remains unchanged, while the net interest income (NII) “drag is set to continue” into the first quarter.
    Other fourth-quarter highlights included:

    Return on tangible equity hit 3.9%, compared with 7.3% over the third quarter.
    CET 1 capital ratio, a measure of bank solvency, was 14.3%, unchanged from the third quarter.

    Investment banking shone over the fourth quarter, with underlying revenues up 37% year-on-year amid “strong growth” in global banking and global markets performance. The group’s global wealth management division logged a 10% hike in revenues over the fourth-quarter stretch, “largely driven by higher recurring net fee income, a decrease in negative other income and higher transaction-based income.”
    “What for us is always very important in investment bank to match or to get very close to the best in class in those areas where we want to compete,” UBS CEO Sergio Ermotti told CNBC’s Carolin Roth on Tuesday. “So if I look across equities effects, capital markets activities, you know, and also in M&A and leverage finance, we are definitely not only growing our revenues as a function of constructive market conditions, but we are also gaining market share.”
    Addressing the bank’s core wealth management operations, he added, “If you look at return on risk related assets for the wealth management businesses have been expanding, so we had a couple of points of pick up in terms of return on risk related assets.”
    In its outlook for the first quarter, the bank is guiding for a low-to-mid single digit percentage decline in NII in its Global Wealth Management operations, along with a steeper 10% drop in the NII of its Personal & Corporate Banking division.

    Size matters

    After weathering the storm of a turbulent government-backed tie-up with fallen domestic rival Credit Suisse in 2023, UBS said it was on track with its 2024 integration milestones and delivered an additional $700 million in gross cost savings in the fourth quarter. The group had hoped to achieve $7.5 billion out of a total of $13 billion in cost savings by the end of last year, with CEO Sergio Ermotti signaling in a Bloomberg interview last month that redundancies were “inevitable” as part of the process — even as the group aims to rely on voluntary departures.
    UBS on Tuesday said it plans to achieve another $2.5 billion of gross cost saving this year.
    The Swiss belt tightening adds to a picture of broader expense discipline and restructuring across Europe’s banking sectors, as lenders exit a period of high interest rates and claw profitability to keep pace with U.S. peers. On Monday, fellow Swiss bank Julius Baer revealed an additional target of 110 million of Swiss francs ($120 million) in gross savings, while HSBC last week said it is preparing to wind down its M&A and equity capital markets operations in Europe, the U.K. and the U.S.
    Armed with a balance sheet that topped $1.7 trillion in 2023 — roughly double Switzerland’s anticipated economic output last year — UBS has been battling vocal concerns at home that its scale has breached the Swiss government’s comfort, depriving the lender of peers that can absorb it and facing Bern with a steep nationalization price tag, in the event of its failure. Questions now linger over whether UBS will face further capital requirements as a result.
    The Swiss economy has already been backed into a fragile corner by depressed annual inflation — of just 0.6% in December — and a punitively strong Swiss franc, which only gained further ground on Monday as the global tumult resulting from U.S. tariffs pushed jittery investors toward the safe-haven asset.
    “Of course, the ongoing tariff discussions are creating uncertainties, as you can see in the current environment, the market is very sensitive to any positive or negative developments,” Ermotti warned, while stressing some of the volatility has been priced in by markets.
    “Of course, an escalation of tariffs, the tariff wars, would most likely translate into economic consequences in terms of potential recessions or inflationary pressure, which in turn, would force central banks to stop the easing path, and potentially even have to reverse that, would definitely be something that the market [has] not been pricing on, and would lead into higher spikes in volatilities. More

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    Trump names Treasury Secretary Scott Bessent acting director of CFPB, as former head Chopra confirms he is out

    President Donald Trump appointed Treasury Secretary Scott Bessent the acting director of the Consumer Financial Protection Bureau, Bessent announced in a CFPB statement.
    Former Director Rohit Chopra posted a letter to Trump on social media platform X confirming that his term at the agency had “concluded.”
    Chopra was often at loggerheads with the U.S. banking industry after pushing to drastically rein in practices around credit card late fees and overdraft fees, among other efforts.

    Republican presidential nominee former President Donald Trump, left, listens as investor Scott Bessent speaks on the economy in Asheville, N.C., Wednesday, Aug. 14, 2024.
    Matt Kelley | AP

    President Donald Trump appointed Treasury Secretary Scott Bessent the acting director of the Consumer Financial Protection Bureau, Bessent announced Monday in a CFPB statement.
    Former Director Rohit Chopra on Saturday had posted a letter to Trump on social media platform X confirming that his term at the agency had “concluded.”

    Bessent, a former hedge-fund manager who was confirmed as head of the U.S. Treasury on Jan. 27, will presumably lead the CFPB until a permanent pick is named.
    “I look forward to working with the CFPB to advance President Trump’s agenda to lower costs for the American people and accelerate economic growth,” Bessent said in the statement Monday.
    Chopra, who was appointed by former President Joe Biden in 2021, was often at loggerheads with the U.S. banking industry after pushing to drastically rein in practices around credit card late fees and overdraft fees, among many other efforts. Trade groups representing banks fought these regulations in court, fending off rules that would have saved Americans billions of dollars in fees but that the industry called poorly considered or unjustified.
    Banking groups had expected Chopra to be fired as soon as Trump was inaugurated, but Chopra remained on for nearly two weeks into Trump’s second term, continuing to fire off releases and weighing in on hot-button topics, including whether banks unfairly closed accounts.

    While Chopra’s term was scheduled to run for roughly another two years, a 2020 Supreme Court ruling gave the president the power to fire the agency’s head at will.

    Chopra said in the letter he tweeted Saturday that he saw a path for the next CFPB leader to enact “meaningful reforms,” including a possible cap on credit card interest rates.
    The CFPB was created in the aftermath of the 2008 global financial crisis, which was caused in part by banks’ irresponsible lending and securitization practices.
    But the agency has since been targeted by trade groups who unsuccessfully argued that the CFPB’s funding violated the U.S. Constitution, and more recently by conservative figures including X owner and Trump advisor Elon Musk, who has called for the elimination of the CFPB.
    The Consumer Bankers Association said Monday it was “pleased” by Bessent’s appointment at the CFPB and that Bessent should take steps to reverse “partisan policies” made under Chopra.
    “We’re hopeful that Secretary Bessent will take into account the real-world ramifications regulations have on America’s leading banks, the millions of consumers they serve, and the economy as a whole,” said CBA President Lindsey Johnson. More

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    How Trump’s tariff turbulence will cause economic pain

    DONALD TRUMP took North America to the precipice of a trade war over the weekend. On February 3rd he cooled things down, delaying tariffs on Canada and Mexico by a month as the countries attempt to reach a deal that may involve everything from immigration controls to trade concerns. The sudden about-turn underscored Mr Trump’s reputation as an agent of chaos who uses extreme threats to wrest concessions out of others. It is a dangerous game that can just as easily lead to miscalculations and corrosive uncertainty for the global economy. More

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    Stocks that got hit the most from Trump’s tariffs before the Mexico reprieve

    U.S. President Donald Trump hold up an executive order, “Unleashing prosperity through deregulation,” that he signed in the Oval Office on January 31, 2025 in Washington, D.C., while also speaking to reporters about tariffs against China, Canada and Mexico.
    Chip Somodevilla | Getty Images News | Getty Images

    The U.S. stock market was rocked Monday after President Donald Trump kicked off a possible global trade war. Shares of companies spanning the auto, industrial, retail and beverage industries with international supply chains were hit particularly hard.
    Trump on Saturday slapped a 25% tariff on goods from Mexico and Canada, while adding a 10% levy on imports from China. The president said Monday that he’s pausing the Mexico tariffs for one month after Mexican President Claudia Sheinbaum agreed to immediately send 10,000 soldiers to her country’s border to prevent drug trafficking. Trump also ramped up his tariff threats to the European Union.

    Tariffs could not only increase the cost of transporting goods across borders, they could also disrupt supply chains and crimp business confidence. Goldman Sachs warned that Trump’s latest action could cause a 5% sell-off in U.S. stocks due to the hit to corporate earnings. Here are some of the most affected industries and stocks:
    Automakers
    These tariffs could have a material impact on the global automotive industry, which has a heavy reliance on manufacturing operations across North America.
    Detroit’s big three car makers — General Motors, Ford, and Stellantis — could feel the pain from disrupted supply chains as a result of tariffs and may be forced to shift production from foreign factories to the United States.

    Automakers getting crushed

    Food and beverage
    Constellation Brands, a large importer of alcohol from Mexico, is leading a sell-off among booze stocks.
    Canada has threatened to pull American alcohol from its government-run liquor shelves in response to Trump’s 25% tariffs.

    Restaurant chain Chipotle Mexican Grill and avocado company Calavo Growers could feel the pain from more costly supplies, as these companies import avocados from Mexico.
    Retailers
    Sportswear brands Nike and Lululemon could be vulnerable to Trump’s tariffs because of their heavy reliance on Chinese imports, including fabrics. Their sizable business in China could also be hurt by the negative sentiment from the trade war.
    Discount retailers such as Five Below and Dollar General could be among the hardest hit businesses, as imports from China usually make up a significant portion of their sales. Another victim could be Canada Goose, a Canada-based luxury outerwear firm.

    Retailers getting hit

    Railroads
    Tariffs could be damaging to railroad operators, as heavy duties could slow the flow of goods being transported to the U.S., hurting their revenue and profits.

    Stock chart icon

    Union Pacific

    Union Pacific Corporation moves freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada and Mexico. Norfolk Southern and Canadian Pacific Kansas City are also exposed to the tariffs.  
    Chinese e-commerce
    Trump’s tariffs also targeted a trade provision that helped fuel the explosive growth of budget online retailers, including Temu. The orders against China, Canada and Mexico all halt a trade exemption, known as “de minimis,” which allows exporters to ship packages worth less than $800 into the U.S. duty-free.
    PDD Holdings-owned Temu and Alibaba’s AliExpress may no longer be able to take advantage of the loophole to sell cheap apparel, household items and electronics.

    Stock chart icon

    PDD Holdings More

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    Alphabet-backed fintech GoCardless halves losses, targets first annual profit in 2026

    British payments startup GoCardless reported a net loss of £35.1 million ($43.8 million) in the full year ending June 2024.
    GoCardless CEO Hiroki Takeuchi said its his aim for the company to post its first full-year profit in 12 to 18 months’ time.

    Hiroki Takeuchi, co-founder and CEO of GoCardless.
    Zed Jameson | Bloomberg | Getty Images

    Financial technology unicorn GoCardless more than halved losses in 2024 and said it’s aiming to reach full-year profitability by 2026.
    The London-based startup, which helps businesses collect recurring payments such as subscriptions, reported a net loss of £35.1 million ($43.8 million) in the full year ending June 30, 2024.

    That was a 55% improvement from the £78 million GoCardless lost the year prior.
    The firm noted that “restructuring activity” at the end of the full year ending June 2023 contributed to a reduction in operating losses in 2024. In June 2023, GoCardless announced it was cutting 15% of its global workforce. That took GoCardless’ salary expenses down 13% to £79.2 million in the company’s 2024 fiscal year.
    Still, while this improved the company’s financial picture, GoCardless’ CEO Hiroki Takeuchi told CNBC that revenue growth also helped significantly.
    “We’re much more focused on the cost side … We want to be getting very efficient as we scale,” Takeuchi said in an interview last week. “But we also need to continue growing. We need both of those things to get to where we want to be.”
    GoCardless grew revenue by 41% to £132 million in full-year 2024. Of that total, £91.9 million came from customer revenue.

    Last year also saw GoCardless record its first-ever month in profit in March 2024. Takeuchi said its his aim for GoCardless to post its first full-year profit in 12 to 18 months’ time, adding it’s “well on track” to do so.

    ‘No plans’ to IPO

    Back in September, GoCardless acquired a firm called Nuapay, which helps businesses collect and send payments via bank transfer.
    Asked whether GoCardless is considering further mergers and acquisitions in future, Takeuchi said the firm is “actively looking,” adding: “We’re seeing lots of opportunities come up.”
    Following its acquisition of Nuapay, Takeuchi said GoCardless is currently testing a new feature that allows clients to distribute funds to their own customers.
    “If you take something like energy, the vast majority of the payments are about collecting money,” he told CNBC.
    “But then you might have some of your customers that have solar panels on their roof and they’re sending energy back to the grid, and they need to get paid for that energy that they’re generating.”
    GoCardless, which is backed by Alphabet’s venture arm GV, Accel and BlackRock, was last privately valued by investors at $2.1 billion in February 2022.
    Takeuchi said the firm had no need for external capital and that there are “no plans” for an initial public offering in the near term.
    Fintechs have been watching Swedish fintech Klarna’s plan to go public closely — but many are waiting to see how it goes before deciding on their own plans.
    With technology IPOs at historic lows, several startups have instead opted to provide employees and early shareholders liquidity by selling shares in the secondary market.
    In November, Bloomberg reported that GoCardless had chosen investment bank Lazard to advise it on a $200 million secondary share sale. GoCardless declined to comment on the report. More

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    L.A. wildfire victims face financial anxiety amid recovery: ‘The uncertainty is very unsettling’

    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

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    Trump’s brutal tariffs far outstrip any he has imposed before

    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

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    Will 2025 finally mark the end of the IPO drought?

    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.”
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