Morning Brief – Australia: Insurance

Australia: Insurance

 

A hot topic (no pun) for this weekend’s Federal Elections in Australia is of course climate change. With bushfires and floods having cost insurers dear in recent times, the projection is that by 2030 1 in 25 homes in Australia will be uninsurable. On average premiums have increased fourfold for property insurance since 2004. This is pretty much all due to climate change that has seen Australia’s temperatures in the past decade much higher than in the preceding one. Worst hit is Queensland and the area around state capital Brisbane where almost 40% of the properties that are becoming uninsurable are located. Brisbane recently suffered 70% of its normal annual rainfall in just 3 days. Bizarrely for the country most affected by climate change, Australia is one of the worst carbon offenders due to its reliance on the fossil fuel industry. USD/AUD 1.4288.

 

Elizabeth Line

 

On Tuesday, the long awaited East-West Elizabeth Line will finally open in London. It was complicated, beset by funding challenges given the extended timescale, challenged by Covid and and…..but it represents one of two really major infrastructure projects in the UK capital-the other being the Super Sewer due to be commissioned in 2025. Doubtless much will be written about the Elizabeth Line ushering in a new era of UK infrastructure replacement and innovation. GBP better versus USD at 1.2490 but struggling versus EUR at GBP/EUR 1.1820.

 

Oil

 

While Europe inches towards a cohesive policy for banning the imports of Russian oil later this year, Russian and Chinese officials are meeting to discuss China taking the opportunity to replenish its strategic oil stockpiles by buying discounted Russian oil. If they were not apparent already, the signs are even clearer that while Europe decouples from Russia, China is strengthening its ties. A year ago USD/CNY was 6.38 but last night stood at 6.75. NYMEX WTI $106.73 but much much cheaper for China!

 

The Who: Harsh But Fair

 

This day in 1966 the Who were playing the Ricky Tick Club in Windsor, UK. Tired of waiting for their drummer and bass player no shows, Roger Daltrey and Pete Townshend went on stage with two subs from a local band. In those more innocent days before the dead hand of Health and Safety was even a gleam in the UK’s eye, when Keith Moon and John Entwistle finally arrived half way through the set, somewhat the worse for wear (timekeeping and alcohol in the workplace), Pete Townshend whacked Keith Moon over the head with his electric guitar( disciplinary) and Keith and John quit the band on principle on the spot(employee/employer dispute). That lasted for a week until the Who re-united (reconciliation and resolution) and the rest is history as is Keith (alcohol)and also John(cocaine) R.I.P. Here is one of the Who’s greatest songs, My Generation:

 

People try to put us d-down (talkin’ ’bout my generation)
Just because we get around (talkin’ ’bout my generation)
Things they do look awful c-c-cold (talkin’ ’bout my generation)
I hope I die before I get old (talkin’ ’bout my generation)
This is my generation
This is my generation, baby
Why don’t you all f-fade away (talkin’ ’bout my generation)
Don’t try to dig what we all s-s-s-say (talkin’ ’bout my generation)
I’m not trying to ’cause a big s-s-sensation (talkin’ ’bout my generation)
I’m just talkin’ ’bout my g-g-g-generation (talkin’ ’bout my generation)
My generation
This is my generation, baby
Why don’t you all f-fade away (talkin’ ’bout my generation)
And don’t try to d-dig what we all s-s-say (talkin’ ’bout my generation)
I’m not trying to ’cause a b-big s-s-sensation (talkin’ ’bout my generation)
I’m just talkin’ ’bout my g-g-generation (talkin’ ’bout my generation)
This is my generation
This is my generation, baby
My my my generation

 

Have a Great Weekend!

 

 

 

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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