Effects of floods on market?

[Tysonboss1]

On tv just then: $5 billion in damages + $13 billion in repair work = $18 billion estimate.

I guess it comes to the taxpayer to provide the funds, similar to the Vic bush fires.

Would have been better if the insurance co.'s footed the bill, eh?

They were saying the Qld coal companies will be severely affected.

So 18 billion is going to be injected into qld economy over the next few months, that should be good for business.

 

[Julia]

Do you know if they import their products? If so if you want to pass on their details i can help them out with that side of things

I have no idea about what they do or don't import, prawn.

Not sure what you mean by your being able to 'help them out with that side of things'.

 

[GumbyLearner]

Food Supply Has Just Been Materially Reduced: Gartman

http://www.cnbc.com/id/41046196?__source=yahoo|headline|quote|text|&par=yahoo

 

[prawn_86]

Not sure what you mean by your being able to 'help them out with that side of things'.

I work as a currency broker and we deal with businesses who import in order to save them time and money on the exchange rate side of things.

 

[tronic72]

Regarding this, Im think CSR and Boral might seem some upside to the floods. All those homes and businesses will need plasterboard replacing because it doesn't like water..

Interested to see what other member think of this theory.

T

 

[Julia]

One of the problems is going to be the lack of workers. Heard an electrician saying this morning it would be months before all the people who need to have their houses certified as safe can get this done. All the tradies who will be needed won't find all their usual work stops in the meantime.

Then when the NBN seriously gets under way, that's going to absorb quite a bit of labor.

 

[skc]

Have just seen some updated numbers through for those interested, Suncorp and IAG have received 3,400 claims between them, so loss estimates probably up quite a bit from Monday given there are other insurers in the market. Fitch put out a note this morning saying that IAG should be reinsured for losses above $15mm and Suncorp is covered up to about $5.6bn of claims.

Any shorting of insurers AFTER the flood is probably a bit too late to the scene, as the market has already moved on and looking forward on the increased premiums.

However, being a bit contrarian - I think IAG's market share in QLD will take a hit. They don't offer flood insurance as automatic in their home and contents policy. It will mean that people will be angry/disappointed/cry on Today Tonight when they realise they are not covered. IAG will receive heaps of bad press and a lot of switching out imo.

Does anyone know of any listed shopfitters or something in that sort of industry? As they will have a lot of work coming up. I did a search but couldn't find anything

GWA makes bathrooms/kitchen fittings and already has a decent run. ABC (Adelaide Brighton) and HIL may also benefit.

Plant hire will get a boost (BOL, CRG).

Waste management may be?

Again, the time to buy/sell was Monday, not today.

Just look at FBU's chart after NZ earthquake and see how short term the effect was.

 

[skc]

Another thing to keep in perspective. ~20,000 homes suffered various extent of damage in Brisbane/Ipswich areas.

Annual housing starts in Australia is ~550K. So even if all the buildings are rebuilt it adds only ~3.5% to the volume.