Friday's Fast Five: Week of 9.29
The Rasputin Effect: Global resilience to higher rates (JP Morgan): Explaining global economic and equity market resilience in the face of the fastest central bank hiking cycle on record. How can we explain this? The obvious place to start: the decline in inflation surprises and in related measures. But there are 6 other factors worth reviewing as well, which is the subject of this month’s note.
Why Insurers Are Pulling Out of High-Risk Areas (Odd Lots (Podcast)): This year has seen a spate of insurance companies announcing that they're leaving markets like Florida and California, citing the increased risk of natural disasters. Elsewhere, premiums for certain types of insurance are skyrocketing — yet many insurance companies can't seem to turn a profit in certain areas. Melanie Gall, co-director of the Center for Emergency Management and Homeland Security at Arizona State University, talks about what's driving insurers away from certain markets, and what can still be done to protect businesses and homeowners from catastrophe.
August Home Sales Declined to Slowest Pace Since January (The Wall Street Journal): Home sales declined again in August, falling to their slowest pace since January and intensifying the worst U.S. housing slump in more than a decade.
Dimon warns that the Fed could still raise interest rates sharply from here (CNBC): JPMorgan Chase CEO Jamie Dimon is warning that interest rates could go up quite a bit further as policymakers face the prospects of elevated inflation and slow growth. Though Federal Reserve officials have indicated that they are near the end of their rate-hiking cycle, the head of the largest U.S. bank by assets said that may not necessarily be the case.
This Ford vs. GM Feud Could Shape the Future of EVs in America (The Wall Street Journal): At stake in their respective meetings, described by people familiar with them, was more than just pride between the old crosstown rivals. It was also the price many Americans could pay for their electric vehicles in the next 10 years—and how the automakers would invest billions of dollars to sell EVs in the U.S. The pair are lobbying over the terms of a $7,500 tax credit for consumers who purchase new electric vehicles.