Los Angeles wildfires rage, economic losses exceed 50 billion! Will CPI and non-farm data add new variables to the market?
A massive wildfire has erupted in Los Angeles, burning uncontrollably for three days since the 7th, and by the evening of the 9th, the situation had spiraled out of control.
President Trump directly criticized California's governor, calling for his resignation over this issue, as the mayor of Los Angeles surprisingly cut $17.6 million from the fire department budget, leaving the firefighters unable to cope with such a large blaze.
To make matters worse, Los Angeles encountered strong winds, with winds reaching level 12 arriving on the 8th. The wind intensified the fire, and as the fire grew stronger, the winds became fiercer, causing the situation to spiral out of control. Although wind speeds around the wildfire area are expected to briefly decrease from the evening of the 10th to the 11th, a new round of Santa Ana winds may emerge from the evening of the 11th to the 12th, potentially increasing wind intensity again.
CNBC, based on some weather prediction data, stated that this wildfire has already caused losses of approximately $52 billion to $57 billion from the start. If the fire spreads to more populated areas, this figure could soar even higher.
Meteorologist Jonah Sampoort said that if more houses are burned down, this wildfire could become the most severe in California in many years, resulting in enormous economic losses.
JP Morgan Chase analyzed that insurance companies may have to pay about $10 billion to those affected. Over 456,000 homes in Los Angeles are threatened by the wildfire, with reconstruction potentially costing $300 billion!
Meanwhile, cryptocurrency began to decline starting the evening of the 7th and has continued to fall over the past two days. Does this mean that as California's economy burns, the market value of cryptocurrencies is also burning?
As the wildfire rages on, will this month's CPI and non-farm data be impacted by the wildfire, making the market even more dangerous?
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