By Asset Allocator Journal Staff
The Financial Times reports that France’s AXA is preparing a potential €2 billion sale of its reinsurance unit, AXA XL Reinsurance, as part of a broader strategy to streamline operations and focus on more profitable segments. According to insiders, the insurer is working with advisers to gauge interest in the business, which could attract attention from both private equity firms and industry peers.
MedTech Dive reports that a collaboration between Johnson & Johnson, Nvidia, and Amazon Web Services will support the use of artificial intelligence in surgery. The Polyphonic AI Fund for Surgery will offer grant funding, mentorship, and access to cloud computing and AI resources for developers. The initiative is seeking AI technologies that can improve surgical decision-making, data management, and operational efficiency, with a particular focus on soft tissue surgery.
According to Advisor Perspectives, the pending home sales index increased by 1.8% in May, a result that was higher than anticipated. This rise suggests modest improvement in the housing market, which National Association of Realtors Chief Economist Lawrence Yun attributes to consistent job gains and rising wages. However, the report also notes that mortgage rate fluctuations remain the primary factor influencing homebuying decisions and overall housing affordability.
According to the Financial Times, BNP Paribas has warned that higher capital requirements proposed by the European Central Bank could significantly reduce lending capacity for major banks. The bank’s CFO said the rules would limit its ability to support the economy, particularly in areas like trade finance and green lending.
New orders for manufactured durable goods surged by 16.4% in May to a record $343.6 billion, a report from Advisor Perspectives states. This increase, the largest monthly jump since 2014, was primarily driven by a 48.3% rise in transportation equipment orders. Excluding the volatile transportation sector, new orders still saw a 0.5% increase, suggesting broader confidence in the economy.
The Federal Reserve Board announced it will host a conference on July 22 to discuss large bank capital requirements. According to the press release, the event will feature discussions among academics, practitioners, and market participants on the effectiveness of the current regulatory capital framework. Key topics will include the Basel III endgame rules, stress testing, and capital surcharges for the largest banks, with the goal of informing future reforms.
For the week ending June 21st, initial jobless claims fell by 10,000 to a seasonally adjusted level of 236,000. This figure was lower than the 244,000 that had been forecast, as noted by Advisor Perspectives. Meanwhile, continuing jobless claims for the week ending June 14th rose to their highest level since November 2021, reaching 1,974,000.
The Financial Times highlights that European insurers are struggling to meet demand for natural disaster coverage amid climate change-driven events like floods and wildfires. Many companies are scaling back risk exposure, leading to rising premiums and coverage gaps. Industry executives are urging governments to consider public-private partnership models to ensure sufficient protection in vulnerable areas.
