Denmark Cuts Rate to Match ECB as Krone Slide Tests Peg
Nationalbanken, which pegs the Danish currency to the euro, reduced its current account rate to 1.85% from 2.1%, according to a statement on Thursday. The decision, anticipated by analysts, marks the seventh rate cut in the current cycle and follows a reduction from the European Central Bank by the same margin earlier in the day.
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NBC News
27 minutes ago
- NBC News
Billion-dollar disasters: The economic toll of wildfires, severe storms and earthquakes is soaring
Weather disasters in the first half of this year have cost the United States $93 billion in damage, according to a report released Tuesday by a German multinational insurance company. The analysis by Munich Re, the world's largest reinsurer, found that more than 70% of all damage globally from weather disasters so far this year occurred in the U.S., with uninsured Americans and their local governments experiencing a whopping $22 billion in damage. The report shows the soaring economic toll that wildfires, severe storms and other extreme events are exacting in the U.S. and globally. The findings also highlight the growing insurance crisis playing out in parts of the country that are prone to frequent weather disasters. 'We have seen some 90% of all losses for the insurance industry — so 72 out of 80 billion U.S. dollars — have happened in the U.S.,' said Tobias Grimm, Munich Re's chief climate scientist. 'That's extraordinary.' The devastating wildfires in Southern California in January topped the list of the country's costliest disasters in the first half of 2025. The two largest fires, which killed at least 30 people and displaced thousands more, ripped through the communities in Pacific Palisades and Altadena, fanned by strong Santa Ana winds. Munich Re estimated that the wildfires caused $53 billion in losses, including about $13 billion in damages for residents without insurance. The reinsurer said the Los Angeles-area blazes resulted in the 'highest wildfire losses of all time.' The wildfires' huge economic and societal toll was due in part to increased development in fire-prone areas. 'Losses are on the rise because often properties are in harm's way,' Grimm said. 'People still live in high-risk areas.' Urban development in hazard-prone areas can similarly drive up the cost of other weather-related disasters, such as hurricanes and flooding, which are becoming more frequent and severe due to climate change. Studies have shown that climate change is making wildfires more frequent because of warmer temperatures and worsening drought conditions. Blazes are also becoming more intense, as a result. A report released in late January from the World Weather Attribution group found that the hot, dry and windy conditions that helped the fires consume large swaths of Southern California were about 35% more likely because of human-caused global warming.
CNBC
an hour ago
- CNBC
Euro under pressure as U.S.-EU trade deal fails to impress
The euro struggled to recoup its steep losses on Tuesday as investors sobered up to the fact that terms of the trade deal between the U.S. and the European Union favored the former and hardly lifted the economic outlook of the bloc. France, on Monday, called the framework trade agreement a "dark day" for Europe, saying the bloc had caved in to U.S. President Donald Trump with an unbalanced deal that slapped a headline 15% tariff on EU goods. German Chancellor Friedrich Merz said his economy would suffer "significant" damage due to the agreed tariffs. The euro slid 1.3% in the previous session, its sharpest one-day percentage fall in over two months, on worries about growth and as euro-area government bond yields fell. The common currency last traded 0.07% higher at $1.1594. "It hasn't taken long for markets to conclude that this relatively good news is still, in absolute terms, bad news as far as the near term implications for euro zone growth are concerned," said Ray Attrill, head of FX research at National Australia Bank. "The deal has been roundly condemned by France while others - including German Chancellor Merz, are playing up the negative consequences for exporters, and with that, economic growth." The slide in the euro in turn boosted the dollar, which jumped 1% against a basket of currencies overnight. The dollar held on to gains on Tuesday and knocked sterling to a two-month low of $1.3349. The yen edged marginally higher to 148.49 per dollar. The dollar index steadied at 98.67. "While the U.S. dollar's strength... may reflect the perception that the new U.S.-EU deal is lopsided in favor of the U.S., the U.S. dollar's strength may also reflect a feeling that the U.S. is re-engaging with the EU and with its major allies," said Thierry Wizman, global FX and rates strategist at Macquarie Group. Still, Trump said on Monday most trading partners that do not negotiate separate trade deals would soon face tariffs of 15% to 20% on their exports to the United States, well above the broad 10% tariff he set in April. Elsewhere, the Australian dollar eased 0.05% to $0.6518, while the New Zealand dollar was little changed at $0.5972. The offshore yuan was little changed at 7.1813 per dollar. Top U.S. and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving long-standing economic disputes at the center of a trade war between the world's top two economies, seeking to extend a truce by three months. Apart from trade negotiations, focus this week is also on rate decisions from the Federal Reserve and the Bank of Japan (BOJ). Both central banks are expected to stand pat on rates, but traders will watch subsequent comments to gauge the timing of their next moves.
Yahoo
12 hours ago
- Yahoo
Bavarian Nordic Agrees to $2.99 Billion Private-Equity Takeover
Bavarian Nordic said it agreed to a 19 billion Danish kroner ($2.99 billion) takeover from private-equity companies Permira and Nordic Capital. Under the deal, accepting shareholders of the Danish vaccine maker will get 233 kroner in cash for each share held. The price is a 21% premium to Bavarian Nordic's closing price of 192.50 kroner on July 23, the day before the company confirmed that it was in talks with the consortium over a possible takeover. Five Signs of a Market Bubble Investors Are Tracking With Individual Home Buyers on the Sidelines, Investors Swoop Into the Market A Tiny Company Is Vouching for Risky Insurers in Hurricane Country The High-Schoolers Who Just Beat the World's Smartest AI Models Luxury Brands Are Getting Hit by a Vibe Shift The directors of Bavarian Nordic said the offer is an attractive proposal and recommend shareholders accept it. The offer is expected to complete in the fourth quarter of this year, subject to all regulatory approvals and clearances. Write to Ian Walker at The Depopulation Bomb 'We Have All the Trees We Need.' Trump Wants to Revive the Lumber Industry. Why You Should Use a Password Manager for All Your Secrets, Not Just Logins Forget Cartier: Made-in-China Luxury Captivates Chinese Consumers Citi Rolls Out a New Premium Card in Fight for Affluent Customers Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
