Home   News   Article

WEEKEND WEB: Hurricanes set to cost USA dear




Scott Woods
Scott Woods

Scott Woods writes a weekly finance column for us

Global company shares (equities) initially moved lower on North Korea’s aggressive action last week over Japan, but recovered quickly, most ending the week slightly higher, as investors focused on favourable economic and corporate news. Government bonds, seen as a safe harbour, rose on the missile launch, but then lost some gains.

Currencies known for their perceived safety, such as the Japanese Yen and the Swiss Franc, rose. The Chinese renminbi continued a recent strong run after good manufacturing data and reached a 14-month high against a US dollar weakened by disappointment in President Trump’s slow delivery on campaign promises.

• The terrible human aspect aside, Hurricane Harvey could be one of the costliest superstorms in US history, perhaps surpassed only by Hurricane Katrina, which cost US$108bn (£84bn) in 2005.

Preliminary estimates from Moody’s Analytics put the damage from Harvey at between US$51bn (£39bn) and US$75bn (£58bn).

Shares in some leading property insurance companies weakened during August. Many victims in Houston lacked insurance cover for flooding. They will look to the US government for support.

• With the ink barely dry on its acquisition of the US food retailer Whole Foods, Amazon is primed to take the fight to its new food retailer competitors.

The company recently announced plans to slash prices on a number of key items; a move which prompted some US$11bn (£8.5bn) to be wiped off the market values of America’s leading supermarkets.

It also hurt the share prices of the UK’s major supermarkets, despite the current limited size of Whole Foods’ UK presence. Amazon’s US$13.7bn (£10.6bn) purchase of Whole Foods is its largest deal to date.

The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.



COMMENTS
()


Iliffe Media does not moderate comments. Please click here for our house rules.

People who post abusive comments about other users or those featured in articles will be banned.

Thank you. Your comment has been received and will appear on the site shortly.

 

Terms of Comments

We do not actively moderate, monitor or edit contributions to the reader comments but we may intervene and take such action as we think necessary, please click here for our house rules.

If you have any concerns over the contents on our site, please either register those concerns using the report abuse button, contact us here.

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies - Learn More