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Fires inflict $50 billion losses, strain California insurance

California fires cause $50 billion losses, raising insurance premiums and straining market, warns JPMorgan analyst.

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California fires cause $50 billion losses, raising insurance premiums and straining market, warns JPMorgan analyst.

Fires in California have caused nearly $50 billion in economic losses, doubling earlier estimates, according to JPMorgan analyst Jimmy Bhullar.

The losses include over $20 billion in insured claims, a figure that may increase if the fires continue to burn.

Ratings firm Morningstar DBRS anticipates total insured losses could exceed $8 billion, classifying this disaster as one of the most costly in US history.

Insurance loss estimates can fluctuate significantly due to ongoing events, as analysts rely on past incidents to gauge future damage.

For comparison, the 2018 Camp Fire resulted in about $12.5 billion in insured losses when adjusted for inflation.

Natural disasters like hurricanes and earthquakes usually lead to the largest financial losses, with Hurricane Katrina in 2005 incurring insured losses of $102 billion.

The ongoing fires are expected to strain California’s home-insurance market, causing premiums to rise and limiting policy options, as noted by Moody’s Ratings analyst Denise Rappmund.

Considerable losses may require private insurers to assist the state’s Fair Plan insurer, which serves homeowners denied coverage by private companies.

The impact of the fires on the Fair Plan remains unclear, but recent data shows substantial exposure in heavily affected regions, particularly Pacific Palisades, where losses could approach $6 billion.

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Trump, Newsom unite to address wildfire devastation

Trump Tours Palisades Fire Damage, Meets Gov. Newsom to Discuss Recovery Efforts After Criticism of Response.

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Trump Tours Palisades Fire Damage, Meets Gov. Newsom to Discuss Recovery Efforts After Criticism of Response.

President Donald Trump arrived at Los Angeles International Airport to assess the damage caused by the Palisades Fire in Pacific Palisades.

He was welcomed by California Governor Gavin Newsom, and the two exchanged pleasantries before addressing reporters.

Trump expressed appreciation for Newsom’s presence, stating, “We want to get the problem fixed. It’s like you got hit by a bomb.”

Governor Newsom thanked Trump for visiting the affected area and acknowledged the significant impact of the disaster.

He highlighted the need for federal support and emphasized the importance of collaboration for recovery. Newsom recalled Trump’s assistance during the COVID pandemic, expressing his hope for a cooperative effort moving forward.

Both leaders acknowledged the severe situation in Palisades and surrounding areas like Altadena, where residents are in need of help. This meeting aims to foster a partnership to address the aftermath of the wildfires.

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Musk’s visit highlights Boeing’s Air Force One problem

Musk’s Air Force One visit highlights Boeing’s struggles with delays and budget issues amid fierce competition from SpaceX.

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Musk’s Air Force One visit highlights Boeing’s struggles with delays and budget issues amid fierce competition from SpaceX.

On December 18, Musk visited Boeing’s military aircraft facility in San Antonio, Texas.

The billionaire, assigned by former US President Donald Trump to reduce government inefficiency, arrived in his Gulfstream G650.

Elon Musk visits the Boeing factory in Texas.

He came to review the new version of Air Force One, which is significantly delayed and facing a budget overrun of $2.7 billion.

This situation has become a significant issue for Boeing’s CEO, Kelly Ortberg.

Musk’s involvement is particularly striking given that his company, SpaceX, competes directly with Boeing in the aerospace sector.

His inspection of the presidential jet highlights the challenges Boeing faces in fulfilling government contracts amidst high expectations and critical scrutiny.

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Putin blames Trump election loss for Ukraine crisis

Putin claims Ukraine crisis stems from Trump’s 2020 election loss, expresses readiness for negotiations with the new US president.

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Putin claims Ukraine crisis stems from Trump’s 2020 election loss, expresses readiness for negotiations with the new US president.

Vladimir Putin stated that the Ukraine conflict could have been prevented if Donald Trump had won the 2020 election.

He described the ongoing war as a ‘crisis’ and expressed that the bloodshed in eastern Europe might not have occurred under a Trump presidency. Putin praised Trump as ‘smart and pragmatic’ and indicated his openness to negotiations concerning Ukraine.

Despite this, remarks from Putin’s Foreign Ministry criticized Western arms supply to Ukraine and questioned the legitimacy of the Ukrainian government.

Ukrainian President Volodymyr Zelensky’s office insisted that any peace talks would require European representation.

Trump had previously claimed he could resolve the war quickly if he had been president. Just after beginning his second presidential term, there have been no signs of an imminent resolution to the conflict.

He recently warned Putin of potential taxes and sanctions if Russia does not agree to peace talks.

Advisers suggested that military aid to Ukraine could be curtailed if Kyiv does not agree to a deal. Trump criticised Zelensky, implying that the Ukrainian leader should have prevented the war.

Political analysts doubt Trump’s ability to end the conflict swiftly, highlighting Russia’s advantageous position in negotiations. However, some in Ukraine remain cautiously optimistic that a Trump presidency could offer a better alternative to the current situation under President Biden.

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