Latest news with #BenPowell
Malaysian Reserve
19 hours ago
- Business
- Malaysian Reserve
State Farm Cites Newly Announced CDI Market Conduct Exam to Oppose Consumer Participation in Rate Hearing, Says Consumer Watchdog
LOS ANGELES, June 13, 2025 /PRNewswire/ — At a hearing today before the California Department of Insurance, State Farm opposed Pacific Palisades homeowner Merritt David Farren's petition to participate in the ongoing rate review proceedings, citing the Department's newly announced market conduct examination of the company's claims handling practices following the January wildfires in Los Angeles. State Farm argued that allegations concerning its failure to properly pay wildfire claims were not relevant to its request for yet another rate hike—despite having already secured a 20% increase in 2024 and a 17% emergency interim increase earlier this year, which is now proposed to be folded into a larger 30% permanent increase. 'State Farm wants to shut the public out because it argues a market conduct exam would take too long,' said Ben Powell, a consumer protection attorney at Consumer Watchdog. 'But just weeks ago, State Farm pushed the Department to approve an emergency rate hike with unprecedented speed—even though it hadn't submitted all the required information. When it comes to raising rates, State Farm demands urgency. But when it comes to protecting consumers, it wants regulators to slam on the brakes.' Consumer Watchdog emphasized that Proposition 103 guarantees any member of the public the right to intervene in insurance proceedings—a safeguard designed to hold insurers accountable. 'If the Department is willing to act quickly for insurers, it must act just as quickly to protect policyholders,' Powell added. 'No one should be excluded from this process—especially not consumers left without fair claim payments after the fires.' Today's hearing concluded with the Administrative Law Judge taking the matter under submission. A decision on Mr. Farren's intervention petition is expected soon.
Yahoo
20 hours ago
- Business
- Yahoo
State Farm Cites Newly Announced CDI Market Conduct Exam to Oppose Consumer Participation in Rate Hearing, Says Consumer Watchdog
LOS ANGELES, June 13, 2025 /PRNewswire/ -- At a hearing today before the California Department of Insurance, State Farm opposed Pacific Palisades homeowner Merritt David Farren's petition to participate in the ongoing rate review proceedings, citing the Department's newly announced market conduct examination of the company's claims handling practices following the January wildfires in Los Angeles. State Farm argued that allegations concerning its failure to properly pay wildfire claims were not relevant to its request for yet another rate hike—despite having already secured a 20% increase in 2024 and a 17% emergency interim increase earlier this year, which is now proposed to be folded into a larger 30% permanent increase. "State Farm wants to shut the public out because it argues a market conduct exam would take too long," said Ben Powell, a consumer protection attorney at Consumer Watchdog. "But just weeks ago, State Farm pushed the Department to approve an emergency rate hike with unprecedented speed—even though it hadn't submitted all the required information. When it comes to raising rates, State Farm demands urgency. But when it comes to protecting consumers, it wants regulators to slam on the brakes." Consumer Watchdog emphasized that Proposition 103 guarantees any member of the public the right to intervene in insurance proceedings—a safeguard designed to hold insurers accountable. "If the Department is willing to act quickly for insurers, it must act just as quickly to protect policyholders," Powell added. "No one should be excluded from this process—especially not consumers left without fair claim payments after the fires." Today's hearing concluded with the Administrative Law Judge taking the matter under submission. A decision on Mr. Farren's intervention petition is expected soon. View original content to download multimedia: SOURCE Consumer Watchdog
Business Times
14-05-2025
- Business
- Business Times
AI boom for US stocks still a safe bet, less so for China: BlackRock
[SINGAPORE] Ask any investor who has paid attention to the United States equities market in the last two years, and you are likely to hear the name Nvidia. Few other stocks would be representative of the US tech bull run story than the chipmaker, whose stock price exploded nearly 900 per cent from the beginning of 2023 to the end of 2024. Market-wide optimism toward large language models and generative artificial intelligence (AI) placed Nvidia, with its critical graphics processing units, and the broader US tech sector among the most sought-after equities globally. Since the start of the 2025, however, Nvidia has shed around 6 per cent, including a trough of 32 per cent in early April. In March, the tech-heavy Nasdaq Composite index – home to the 'Magnificent Seven' stocks – slipped into correction territory, falling more than 10 per cent from its December highs. The development of a lower cost AI model by the Chinese startup DeepSeek, as well as several waves of heavy tariffs and subsequent reversals by US president Donald Trump, appear to have cast a lingering doubt over the US market. It has prompted renewed questions about whether the US AI trade has run its course, or if it is China's turn to surge. But global asset manager BlackRock argues that such corrections reflect sentiment, not fundamentals, as the longer-term forces powering the market remain intact. According to Ben Powell, chief investment strategist for the Middle East and Asia-Pacific at the BlackRock Investment Institute, AI remains a 'mega force' that will continue to boost US equities in the upcoming six- to 12-month period. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The underlying thesis is that AI-led capital expenditure is not just about a few headline tech firms, but rather a cross-sector transformation that remains in its early stages. 'The US is at the forefront of the AI infrastructure buildout, and a leader on the global stage in both research and development spending and patent applications,' the firm said in its equity outlook for the year's second quarter. China's AI hopes Still, longer-term investors who have stuck with equities may underestimate the damage caused by geopolitical fragmentation to economic growth, said Powell. 'Supply chain dependencies cannot be rewired quickly without disruption,' he said. In China, tariff pressures have left the burgeoning AI sector clouded in uncertainty. The US and China announced a middle ground in their trade talks on Monday (May 12), with gargantuan reciprocal tariffs now paused for 90 days as the world's two largest economies seek to avoid decoupling. Despite this, BlackRock believes the damage may already have been done. 'The uncertainty of trade barriers makes us more cautious, with potential policy stimulus only partly offsetting the drag,' the firm's investment institute said of the Asian giant in a note on Monday. In the US, tariffs would likewise increase inflation and slow growth, where 'recession-like effects' can be expected in upcoming quarters, the note said. Yet for the Chinese economy, other macroeconomic obstacles such as an ageing population, property sector woes and weak domestic consumption still have the potential to dampen the impact of technological advancement – which is why the asset manager has remained tactically neutral on Chinese equities despite DeepSeek's breakthrough. Nevertheless, China's AI ecosystem remains compelling in the longer term from a technological standpoint, spanning chip manufacturing, Internet and software, autonomous driving and robotics, said the firm in its Q2 equity outlook note. The country's large tech giants, such as Tencent and Alibaba, might be able to stimulate demand in ways that government policy may not, BlackRock observed in the note. 'Chinese companies have a pulse on people's wants and incentives to spend,' the firm said. The world's second largest economy is known for its inclination towards the adopting the latest technologies, by both businesses and individuals alike. Furthermore, mounting geopolitical pressures will only cue the country's policymakers to turn inward, where private enterprises such as DeepSeek have already proved their immense potential. Investing through disruption, volatility It is such large, powerful trends – like the rise of AI or global fragmentation – that drive or drag economic growth, making the investment environment a fundamentally different one from a decade ago, Powell believes. 'Investors need to update their playbooks to incorporate these drivers,' Powell said. 'This is not a business cycle, but multiple overlapping long-term structural shifts that fundamentally alter the context for investors.' Even so, along shorter time horizons, investors in today's environment have a far greater set of tools at their disposal to manage volatility than in the past, BlackRock's Brett Pybus believes. For instance, exchange traded funds (ETFs) have developed to offer investor a much wider selection of assets to diversify into during periods of uncertainty, said Pybus, who is the firm's global co-head of iShares fixed income ETFs. Even in areas like private markets and digital assets, financial innovation through ETFs has enabled greater access to assets that have traditionally been much harder to reach, Pybus noted. Others such as buffered ETFs – which typically seek to capture a capped upside potential while providing downside protection – have enabled investors to limit risk within volatile market environments. 'Bond ETFs, for instance, have proven particularly powerful during periods of volatility,' he said, adding that BlackRock's flagship iShares ETFs witnessed tremendous demand from institutional investors during market downturns. For example, Asian investors flocked to bond ETFs during the 2020 pandemic. Pybus noted that the number of institutional investors using iShares bond ETFs has more than doubled since then. Such products enable investors to access greater price transparency and liquidity as they rebalance away from riskier assets during particularly volatile periods. 'There has been a shift towards quality in fixed income, with investors moving from riskier credit-sensitive sectors to more stable sovereign exposures or cash-like assets,' Pybus said, adding that the trend reflected a preference for defensive positions during volatility.
Economic Times
05-05-2025
- Business
- Economic Times
Why is India emerging as a strong market amid global economic changes? BlackRock's Ben Powell explains
Ben Powell, Chief Middle East and APAC Investment Strategist, BlackRock Investment Institute, says India's market position is strengthening due to its strategic geopolitical positioning, enabling advantageous negotiations with various global partners. The anticipated decline in oil prices, following the OPEC announcement, is expected to positively impact India's economy and provide the RBI with greater flexibility. BlackRock Investment Institute views India as an emerging market poised to benefit from prevailing global trends. Powell says though there is likelihood of a US contraction driven by some supply constraints, they are still overweight US equities largely because of the AI mega force which is extremely powerful and driving those big companies forward. When we interacted with you at the beginning of the year, it was the US market all the way. We did not interact with you in April when it was emerging markets all the way. Just when the world got convinced that emerging markets could come up, US markets have also made a comeback. It reminds me of a seesaw game and before you realise, the side changes. What is happening to the world? Ben Powell: Yes, the roller coaster continues and that is something we are all going to have to get used to. So, a quick point just in passing, I think again the last month has been a reminder to us investors where we can to stay calm, tried to look through some of the very short-term noise and focus on longer-term structural changes and allocate our investments accordingly, and that is what the market has pivoted back to over the last few weeks. We have been reminded that sure there are many things to be concerned about not least the trade tensions, but there are many tailwinds globally including the AI mega force and, of course, in India as well with what seems to be quite an encouraging combination of lower oil price, potentially some good news coming with the US vis-à-vis trade deal. So, for now, it feels like it continues to be a much more positive environment than perhaps when we last spoke. What has changed is that the trade deals are still not in place. The US economy is likely to slow down, and the evidence that there would be a supply disruption would be felt in the coming quarter. So, in the next two quarters, it would be hard to call. What explains this comeback in equity markets, especially what we saw last week? Ben Powell: It is earnings. Again, there are many things to worry about. As we look at actual numbers, the data continues to be quite strong in the US and globally. In the US, we are mostly through the most recent earning season and they have surprised on the upside across the board. But in particular, we have a huge concentration in the US around these tech behemoths. So global equities are again uncomfortable, but we are dependent on how well these companies are doing. The good news is for now they continue to go very well driven by the AI super boom which continues unabated. The earnings have been strong, that is the reason why we have seen the S&P up nine days in a row. By the way, that is the first time that has happened since 2004. So, a historic rally is unfolding for the moment which is dramatic and exciting, but the reason is very normal and much more prosaic. So, earning strength and resilience is driving that upward move. At the beginning of the year, as an institute, you were a big votary of US equities. Then, we saw this midair turbulence. As we roll forward, by the end of 2025 or a year from now, which end of the equity market or which world do you think will outperform, underperform, and will be in line with market performance? Ben Powell: First, we think this is really a different global equity market from 5-10 years ago. At that stage, you could be risk on or risk off. We now think you need to be much more picky, much more selective, even within the umbrella term called emerging markets. They are not all the same, obviously, but we think that is really true in a fracturing world. Sadly, the world is fracturing geopolitically, trading wise, economically, and so forth. What that is going to mean is more dispersion. We really need to be thoughtful around what we pick. We continue to like the US. They still got the universities and the ability to monetise the intellectual property they create. So, the US for now is central to the AI super boom which we think continues and the data is supportive of that, that is one. Secondly, one emerging market we continue to like is India. India in a way is quite interesting. It was kind of ahead of the game in being worried, and had a selloff a few months ago. Now, we have got a much more interesting position in India with tailwinds potentially from the geopolitical fracturing where India is in a really strong position to carefully and respectfully negotiate great deals with different counterparties and not just the after the OPEC announcement over the weekend, fall in oil prices looks likely to continue. That will benefit India in aggregate, different parts of the economy differently, but in the round that is good news and should give the RBI more room for manoeuvre. I look at India as an example of an emerging market which is benefiting from a number of these mega forces. Even in a more complicated world, there are still tailwinds out there and it seems to us at the BlackRock Investment Institute that India is on the right side of a few of them. You did say the fact that the earnings growth or the earnings visibility is the one of the reasons why you have the equity markets are rallying back in the United States and also will command more premium. We have to keep in mind what lies ahead in the future. We have not yet taken into account what could lie ahead when it comes to Trump tariffs because there is just a 90-day pause and are through almost 20 days. That has an impact on the earnings growth going ahead. Don't you see that as a risk factor going ahead? Ben Powell: We do and to be clear, we expect a contraction in the US economy driven by some of the reasons you have talked about. Again there are things to be worried about. The future is always a hard place to travel but it feels particularly uncertain at the moment across many different dimensions that are true and important. But we have just got to relax and accept that right, we cannot be as confident looking forward today as we probably were 10 years ago where with hindsight I guess it turned out we were in a time frame called the great moderation where inflation was low, interest rates were low and that was then. Now, everything seems much more complicated – whether it is AI, geopolitics, trade tensions, and so on and so on. It is a long list. We just need to kind of accept that. It is uncomfortable, but just accept it and get back to the basics of investing. For us, even though we recognise some of these significant headwinds, they are real and important, now we think they are being outweighed by the tailwinds which include artificial intelligence, an absolutely amazing technology and a historic moment in human history and now back to our kind of normal level which has important implications for markets which are still not fully priced in. I totally understand this sounds a bit strange, but we think you are going to get a US contraction driven by some supply constraints and indeed we are still overweight US equities largely because of the AI mega force which is extremely powerful and driving those big companies forward. Where does the emerging market fit in? The kind of flows that we have seen in India are quite impressive. Is this the beginning of a trend change for emerging markets and especially markets like India? You rightly mentioned that India has got everything going for itself. So, could India be a disproportionate beneficiary of this entire changing order? Ben Powell: I think so. Nothing in life is perfect. We always have things to worry about. But when I look at India and some of the mega forces, its position vis-à-vis geopolitical difficulties, India should be a relative winner. It might even be an absolute winner where it can again carefully and skillfully think about how to benefit from its position, its huge size as a market, it is clearly a very attractive proposition for everyone. It seems to me incumbent on India's leadership to do the best for India's people and that is what I would expect to play out in the weeks and months ahead. Furthermore, the relocation of supply chains is easier said than done. You cannot just click your fingers and move massive global supply chains, but it feels again that it is a global disruption, and India should be the right side of it. Then there is the very well understood domestic story. I do not need to tell you guys or anyone on the line here but that it is still true right, so the demographic story, the amazing advances around digitalisation, the astonishing kind of on boarding of maybe tens or even of hundreds of millions of Indians into the formal financial system including equity markets and other markets, is still true and ongoing. So, yes, there are a lot of things to pass. All emerging markets are not the same. We need to be careful about talking about too broad a brush painting with too broad a brush. But when I look more into the details of emerging markets, India stands out a bit as an economy and a market where there are multiple tailwinds that can continue to attract more global investment over time – both structurally and more short-term flows into markets – of which we are starting to see signs of in the last couple of weeks.
Time of India
05-05-2025
- Business
- Time of India
Why is India emerging as a strong market amid global economic changes? BlackRock's Ben Powell explains
Ben Powell , Chief Middle East and APAC Investment Strategist, BlackRock Investment Institute , says India's market position is strengthening due to its strategic geopolitical positioning, enabling advantageous negotiations with various global partners. The anticipated decline in oil prices, following the OPEC announcement, is expected to positively impact India's economy and provide the RBI with greater flexibility. BlackRock Investment Institute views India as an emerging market poised to benefit from prevailing global trends. Powell says though there is likelihood of a US contraction driven by some supply constraints , they are still overweight US equities largely because of the AI mega force which is extremely powerful and driving those big companies forward. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration -:-:- Loaded : 0% 0:00:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - -:-:- 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. When we interacted with you at the beginning of the year, it was the US market all the way. We did not interact with you in April when it was emerging markets all the way. Just when the world got convinced that emerging markets could come up, US markets have also made a comeback. It reminds me of a seesaw game and before you realise, the side changes. What is happening to the world? Ben Powell : Yes, the roller coaster continues and that is something we are all going to have to get used to. So, a quick point just in passing, I think again the last month has been a reminder to us investors where we can to stay calm, tried to look through some of the very short-term noise and focus on longer-term structural changes and allocate our investments accordingly, and that is what the market has pivoted back to over the last few weeks. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Highly Prestigious OMEA Award for Indian Manufacturers ansoim Learn More Undo We have been reminded that sure there are many things to be concerned about not least the trade tensions, but there are many tailwinds globally including the AI mega force and, of course, in India as well with what seems to be quite an encouraging combination of lower oil price, potentially some good news coming with the US vis-à-vis trade deal. So, for now, it feels like it continues to be a much more positive environment than perhaps when we last spoke. What has changed is that the trade deals are still not in place. The US economy is likely to slow down, and the evidence that there would be a supply disruption would be felt in the coming quarter. So, in the next two quarters, it would be hard to call. What explains this comeback in equity markets, especially what we saw last week? Ben Powell: It is earnings. Again, there are many things to worry about. As we look at actual numbers, the data continues to be quite strong in the US and globally. In the US, we are mostly through the most recent earning season and they have surprised on the upside across the board. But in particular, we have a huge concentration in the US around these tech behemoths. So global equities are again uncomfortable, but we are dependent on how well these companies are doing. The good news is for now they continue to go very well driven by the AI super boom which continues unabated. The earnings have been strong, that is the reason why we have seen the S&P up nine days in a row. By the way, that is the first time that has happened since 2004. So, a historic rally is unfolding for the moment which is dramatic and exciting, but the reason is very normal and much more prosaic. So, earning strength and resilience is driving that upward move. Live Events You Might Also Like: Indian bonds offer compelling income amid global yield jitters; we favor gold as a portfolio diversifier: BlackRock's Ben Powell At the beginning of the year, as an institute, you were a big votary of US equities. Then, we saw this midair turbulence. As we roll forward, by the end of 2025 or a year from now, which end of the equity market or which world do you think will outperform, underperform, and will be in line with market performance? Ben Powell: First, we think this is really a different global equity market from 5-10 years ago. At that stage, you could be risk on or risk off. We now think you need to be much more picky, much more selective, even within the umbrella term called emerging markets. They are not all the same, obviously, but we think that is really true in a fracturing world. Sadly, the world is fracturing geopolitically, trading wise, economically, and so forth. What that is going to mean is more dispersion. We really need to be thoughtful around what we pick. We continue to like the US. They still got the universities and the ability to monetise the intellectual property they create. So, the US for now is central to the AI super boom which we think continues and the data is supportive of that, that is one. Secondly, one emerging market we continue to like is India. India in a way is quite interesting. It was kind of ahead of the game in being worried, and had a selloff a few months ago. Now, we have got a much more interesting position in India with tailwinds potentially from the geopolitical fracturing where India is in a really strong position to carefully and respectfully negotiate great deals with different counterparties and not just the US. Two, after the OPEC announcement over the weekend, fall in oil prices looks likely to continue. That will benefit India in aggregate, different parts of the economy differently, but in the round that is good news and should give the RBI more room for manoeuvre. I look at India as an example of an emerging market which is benefiting from a number of these mega forces. Even in a more complicated world, there are still tailwinds out there and it seems to us at the BlackRock Investment Institute that India is on the right side of a few of them. You Might Also Like: 'India is no longer just an EM Play' – BlackRock's Powell on investment shifts You did say the fact that the earnings growth or the earnings visibility is the one of the reasons why you have the equity markets are rallying back in the United States and also will command more premium. We have to keep in mind what lies ahead in the future. We have not yet taken into account what could lie ahead when it comes to Trump tariffs because there is just a 90-day pause and are through almost 20 days. That has an impact on the earnings growth going ahead. Don't you see that as a risk factor going ahead? Ben Powell: We do and to be clear, we expect a contraction in the US economy driven by some of the reasons you have talked about. Again there are things to be worried about. The future is always a hard place to travel but it feels particularly uncertain at the moment across many different dimensions that are true and important. But we have just got to relax and accept that right, we cannot be as confident looking forward today as we probably were 10 years ago where with hindsight I guess it turned out we were in a time frame called the great moderation where inflation was low, interest rates were low and that was then. Now, everything seems much more complicated – whether it is AI, geopolitics, trade tensions, and so on and so on. It is a long list. We just need to kind of accept that. It is uncomfortable, but just accept it and get back to the basics of investing. For us, even though we recognise some of these significant headwinds, they are real and important, now we think they are being outweighed by the tailwinds which include artificial intelligence, an absolutely amazing technology and a historic moment in human history and now back to our kind of normal level which has important implications for markets which are still not fully priced in. I totally understand this sounds a bit strange, but we think you are going to get a US contraction driven by some supply constraints and indeed we are still overweight US equities largely because of the AI mega force which is extremely powerful and driving those big companies forward. You Might Also Like: BlackRock believes in India's structural bull story; the selloff has fed on itself: Ben Powell
