US Business

Forecasters expect Hurricane Ian to cause life-threatening storm surges in the Carolinas on Friday after unleashing devastation in Florida, where it left a yet unknown number of dead in its wake.

After weakening across Florida, Ian regained its Category 1 status in the Atlantic Ocean and was headed toward the Carolinas, the US National Hurricane Center said Friday.

“Flooding rains (are) likely across the Carolinas and southwestern Virginia,” the NHC added.

The storm, one of the most powerful ever to hit the United States, left hundreds of people in need of rescue in Florida, Governor Ron DeSantis said, warning it was too early to get a clear picture of the death toll.

“We absolutely expect to have mortality from this hurricane,” he said Thursday.

DeSantis said concrete information about casualty numbers could be expected “in the coming days.” 

President Joe Biden, after a briefing at the Federal Emergency Management Agency (FEMA) headquarters, said “this could be the deadliest hurricane in Florida history.”

The numbers “are still unclear, but we’re hearing reports of what may be substantial loss of life,” he said Thursday.

Biden later declared an emergency in South Carolina, ordering federal assistance in response efforts, according to a White House statement.

The NHC has issued a hurricane warning for the entire coast of South Carolina as well as portions of Georgia and North Carolina.

Ian would likely make landfall on Friday, the NHC said, and then “rapidly weaken over the southeastern United States late Friday into Saturday.”

– ‘Horrifying’ –

Fort Myers, where Ian came ashore as a powerful Category 4 hurricane on Wednesday, took much of the brunt, as streets became rivers and seawater poured into houses.

Dozens of boats moored in the marina were sunk while others were tossed onto downtown streets.

DeSantis described the destruction in the southwest part of his state as a “500-year flood event.”

“We’ve never seen storm surge of this magnitude,” he said.

Tom Johnson of Fort Myers had a front row seat to the destruction from his apartment on the second floor of a two-story harbourside building.

“I was scared because I’ve never been through that,” the 54-year-old told AFP. “It was just the most horrifying sounds with debris flying everywhere, doors flying off.”

His home was undamaged but one of his neighbors, Janelle Thil, was not so lucky and had to ask other residents for help after her ground floor apartment began to flood.

“They got my dogs and then I jumped out of the window and swam,” the 42-year-old said.

When Thil returned to her apartment after the storm passed, she said she opened the door and “had to wait about five minutes for all the floodwaters to come out.”

“I loved my home,” she said. “But I’m alive and that’s what matters.”

A US Coast Guard official said Thursday that helicopter crews were plucking people from the rooftops of homes inundated by floodwaters.

Eighteen migrants were missing from a boat that sank during the hurricane on Wednesday, though nine others had been rescued, the Coast Guard said. Among them were four Cubans who swam to shore in the Florida Keys.

– ‘Major disaster’ –

Much of Florida’s southwest coast was plunged into darkness after the storm wiped out power.

Tracking website PowerOutage.us said 2.1 million homes and businesses remained without electricity in the Sunshine State on Friday.

Two barrier islands near Fort Myers, Pine Island and Sanibel Island, popular with vacationers, were essentially cut off when the storm damaged causeways to the mainland.

Sanibel got “hit with really biblical storm surge,” DeSantis said, and rescuers were using boats and helicopters to evacuate residents who rode out the storm.

Biden has declared a “major disaster” in Florida, a move that frees up federal funding for storm relief.

“I want the people of Florida to know that we will be here at every step of the way,” he tweeted.

– Cuba power out –

Before pummeling Florida, Ian plunged all of Cuba into darkness after downing the island’s power network.

Electricity was gradually returning Thursday, but many homes remain without power.

Laura Mujica joined dozens of Cuban women gathered in the capital Havana on Thursday to demand electricity be restored in the city.

“We took to the street, because we haven’t had electricity for several days and we are tired of it. 

“We women decided to take to the streets to empower ourselves and protest so that the electricity will be fixed,” said the 20-year-old.

At least two people died in Pinar del Rio province, state media in the country of more than 11 million reported.

Human-induced climate change is resulting in more severe weather events across the globe, scientists say.

Markets in Asia and Europe were mixed Friday after another tough day on US trading floors, with inflation continuing to soar and central bankers getting increasingly hawkish in their attempts to bring prices under control.

Sterling, however, managed to extend gains after clawing back more of the huge losses suffered at the start of the week owing to a tax-cutting mini-budget that analysts warned could cause even more pain to the already fragile UK economy.

The pound’s bounce — from a record low of $1.0350 Monday to briefly go above $1.12 Friday — came after the Bank of England pledged $71 billion of support to shattered financial markets, fearing that several pension funds could go under.

Britain’s beleaguered currency was given an extra boost by news Thursday that the budget watchdog will provide costings of new Finance Minister Kwasi Kwarteng’s fiscal plan on October 7, two weeks earlier than initially announced.

“This has helped alleviate some fears within markets given the initial optics of an uncosted large fiscal package,” said National Australia Bank’s Tapas Strickland.

Markets remain concerned about the UK economy and the impact that borrowing tens of billions of dollars will have on interest rates, with observers warning that the Bank of England could announce a 1.5 percentage point hike at its next meeting in November.

Sean Callow, at Westpac Banking Corp, said the pound’s gains this week were “a reminder that currencies are driven by a myriad of factors — it’s clearly not due to any improvement in the outlook for the UK”.

The bank’s cash injection meant it had to put on hold its plan to tighten monetary policy as part of a global effort to fight decades-high inflation.

But David Forrester, at Credit Agricole CIB, warned: “The pound is not out of the woods yet.

“While the BoE has restored some credibility to the currency, the government’s finances are another part that needs to be fixed for the pound’s rally to last.”

Still, there was some good news for new British Prime Minister Liz Truss, as official figures showed Britain’s economy grew in the second quarter, instead of shrinking as previously estimated.

– Russia worries –

In a sign of the long road ahead for finance chiefs — and the dour outlook for stocks — data out of several countries including Germany and Belgium this week showed that prices are still rising about 10 percent year-on-year.

In the United States, Federal Reserve officials again reiterated their intention to ramp up rates until they have tamed inflation, even if that means plunging the world’s top economy into recession.

And the case for a fourth successive 0.75 percentage point lift was strengthened by news that first-time unemployment benefit claims fell below 200,000 for the first time since May.

All three main indexes on Wall Street finished deep in the red, with the S&P 500 ending at its lowest level since November 2020.

On Friday, Shanghai dropped as data showed China’s manufacturing and services sectors struggled again in September from Covid lockdowns in parts of the country that have battered the world’s number-two economy.

There was also little reaction to news that Beijing would allow some cities to reduce mortgage rates for first-home purchases as it tries to support the property market.

Tokyo, Shanghai, Sydney, Seoul, Taipei, Wellington and Manila were also off.

However, Hong Kong, Mumbai, Jakarta and Bangkok rose, while London, Paris and Frankfurt also rebounded from Thursday’s losses.

“Risky assets don’t stand a chance of a meaningful rally if the economy continues to show resilience while inflation continues to be significantly above the Fed’s Funds rate,” said OANDA’s Edward Moya.

Market sentiment was also being eroded by rising fears about developments in the Ukraine war, as Russia prepares to annex four occupied regions of its neighbour Friday, with President Vladimir Putin threatening to use nuclear weapons to defend the territories.

– Key figures around 0810 GMT –

Tokyo – Nikkei 225: DOWN 1.8 percent at 25,937.21 (close)

Hong Kong – Hang Seng Index: UP 0.3 percent at 17,222.83 (close)

Shanghai – Composite: DOWN 0.6 percent at 3,024.39 (close)

London – FTSE 100: UP 0.5 percent at 6,917.32

Pound/dollar: UP at $1.1160 from $1.1116 on Thursday

Euro/dollar: UP at $0.9827 from $0.9818

Euro/pound: DOWN at 88.06 pence from 88.28 pence

Dollar/yen: DOWN at 144.40 yen from 144.42 yen

West Texas Intermediate: UP 1.0 percent at $82.06 per barrel

Brent North Sea crude: UP 0.9 percent at $89.32 per barrel

New York – Dow: DOWN 1.5 percent at 29,225.61 (close)

Hurricane Ian unleashed “historic” devastation in Florida, leaving a yet unknown number of dead in its wake, officials said Thursday, as the storm restrengthened in the Atlantic on a path toward the Carolinas.

The storm, one of the most powerful ever to hit the United States, left hundreds of people in need of rescue, Florida Governor Ron DeSantis said, while warning it was still too early to get a clear picture of the death toll.

“We absolutely expect to have mortality from this hurricane,” he said at a press conference Thursday evening.

President Joe Biden, after a briefing at FEMA emergency management headquarters in Washington, said “this could be the deadliest hurricane in Florida history.”

The numbers “are still unclear, but we’re hearing reports of what may be substantial loss of life,” he added.

DeSantis said concrete information about casualty numbers could be expected “in the coming days.” 

Fort Myers, where Ian made landfall as a powerful Category 4 hurricane on Wednesday, took much of the brunt of the storm, as streets became rivers and seawater poured into houses.

Dozens of boats moored in the marina were sunk while others were tossed on to downtown streets.

Trees were toppled by the howling winds of up to 150 miles per hour (240 kilometers per hour).

After weakening as it worked its way across Florida, Ian regained its Category 1 status in the Atlantic and was expected to make a turn towards the Carolinas where it would again cause “life-threatening flooding, storm surge and strong winds,” the National Hurricane Center said Thursday night.

– ‘Horrifying’ –

Earlier in the day, DeSantis described the destruction in the southwest part of his state as a “500-year flood event.”

“We’ve never seen storm surge of this magnitude,” he said.

Tom Johnson, 54, of Fort Myers had a front row seat to the destruction from his apartment on the second floor of a two-story harbourside building.

“I was scared because I’ve never been through that,” Johnson told AFP. “It was just the most horrifying sounds with debris flying everywhere, doors flying off.”

His home was undamaged but one of his neighbors, Janelle Thil, 42, was not so lucky and had to ask other residents for help after her ground floor apartment began to flood.

“They got my dogs and then I jumped out of the window and swam,” Thil said.

When Thil returned to her apartment after the storm passed, she said she opened the door and “had to wait about five minutes for all the floodwaters to come out.”

“I loved my home,” she said. “But I’m alive and that’s what matters.”

According to DeSantis, the area was also dealing with a water main break, which officials were “working to troubleshoot.”

A US Coast Guard official said helicopter crews were plucking people from the rooftops of homes inundated by floodwaters.

Eighteen migrants were missing from a boat that sank during the hurricane on Wednesday, though nine others had been rescued, the Coast Guard said. Among them were four Cubans who swam to shore in the Florida Keys.

– Ian regaining strength –

Ian was downgraded to a tropical storm overnight but the NHC said it regained Category 1 hurricane strength on Thursday afternoon and issued a hurricane warning for the entire coast of South Carolina as well as portions of Georgia and North Carolina.

“Ian could strengthen a little more before landfall” on Friday, the NHC said, adding that it will likely “rapidly weaken over the southeastern United States late Friday into Saturday.”

Biden has declared a “major disaster” in Florida, a move that frees up federal funding for storm relief.

“We’re continuing to take swift action to help the families of Florida,” he tweeted. “I want the people of Florida to know that we will be here at every step of the way.”

Much of Florida’s southwest coast was plunged into darkness after the storm wiped out power.

Tracking website poweroutage.us said 2.3 million homes and businesses remained without electricity in the so-called Sunshine State late Thursday.

Two barrier islands near Fort Myers, Pine Island and Sanibel Island, popular with vacationers, were essentially cut off when the storm damaged causeways to the mainland.

Sanibel Island got “hit with really biblical storm surge,” DeSantis said, and rescuers were using boats and helicopters to evacuate residents who rode out the storm.

Mandatory evacuation orders had been issued in many areas of Florida ahead of Ian, with several dozen shelters set up.

Airports stopped all commercial flights, and cruise ship companies delayed or canceled voyages.

Before pummeling Florida, Ian plunged all of Cuba into darkness Tuesday after downing the island’s power network.

At least two people died in Pinar del Rio province, state media in the country of more than 11 million reported.

Human activity has caused life-threatening climate change, resulting in more severe weather events across the globe.

Asian markets sank Friday after another devastating day on US and European trading floors, with inflation continuing to soar and central bankers getting increasingly hawkish in their attempts to bring prices under control.

Sterling, however, managed to hold gains after clawing back more of the huge losses suffered at the start of the week owing to a tax-cutting mini-budget that analysts warned could cause even more pain to the already fragile UK economy.

The pound’s bounce — from a record low of $1.0350 Monday to above $1.11 Friday — came after the Bank of England pledged $71 billion of support to shattered financial markets, fearing that several pension funds could go under.

Britain’s beleaguered currency was given an extra boost by news Thursday that the budget watchdog will provide costings of new Finance Minister Kwasi Kwarteng’s fiscal plan on  October 7, two weeks earlier than initially announced.

“This has helped alleviate some fears within markets given the initial optics of an uncosted large fiscal package,” said National Australia Bank’s Tapas Strickland.

Markets remain concerned about the UK economy and the impact that borrowing tens of billions of dollars will have on interest rates, with observers warning that the Bank of England could announce a 1.5 percentage point hike at its next meeting in November.

Sean Callow, at Westpac Banking Corp, said the pound’s gains this week were “a reminder that currencies are driven by a myriad of factors — it’s clearly not due to any improvement in the outlook for the UK”.

The bank’s cash injection meant it had to put on hold its plan to tighten monetary policy as part of a global effort to fight decades-high inflation.

– Russia worries –

And in a sign of the long road ahead for finance chiefs — and the dour outlook for stocks — data out of several countries including Germany and Belgium this week showed that prices are still rising about 10 percent year-on-year.

In the United States, Federal Reserve officials again reiterated their intention to ramp up rates until they have tamed inflation, even if that means plunging the world’s top economy into recession.

And the case for a fourth successive 0.75 percentage point lift was strengthened by news that first-time unemployment benefit claims fell below 200,000 for the first time since May.

All three main indexes on Wall Street finished deep in the red, with the S&P 500 ending at its lowest level since November 2020.

And Asia picked up the baton.

Hong Kong and Shanghai dropped as data showed China’s manufacturing and services sectors struggled again in September from Covid lockdowns in parts of the country that have battered the world’s number-two economy.

There was also little reaction to news that Beijing would allow some cities to reduce mortgage rates for first-home purchases as it tries to support the property market.

Tokyo, Sydney, Seoul, Singapore, Taipei, Wellington, Manila and Jakarta were also off.

“Risky assets don’t stand a chance of a meaningful rally if the economy continues to show resilience while inflation continues to be significantly above the Fed’s Funds rate,” said OANDA’s Edward Moya.

Market sentiment was also being eroded by rising fears about developments in the Ukraine war, as Russia prepares to annex four occupied regions of its neighbour Friday, with President Vladimir Putin threatening to use nuclear weapons to defend the territories.

– Key figures around 0300 GMT –

Tokyo – Nikkei 225: DOWN 1.7 percent at 25,979.75 (break)

Hong Kong – Hang Seng Index: DOWN 0.2 percent at 17,132.81

Shanghai – Composite: DOWN 0.4 percent at 3,029.26

Pound/dollar: DOWN at $1.1113 from $1.1116 on Thursday

Euro/dollar: DOWN at $0.9807 from $0.9818

Euro/pound: DOWN at 88.27 pence from 88.28 pence

Dollar/yen: UP at 144.70 yen from 144.42 yen

West Texas Intermediate: DOWN 0.1 percent at $81.14 per barrel

Brent North Sea crude: DOWN 0.3 percent at $88.23 per barrel

New York – Dow: DOWN 1.5 percent at 29,225.61 (close)

London – FTSE 100: DOWN 1.8 percent at 6,881.59 (close) 

Russia will annex four occupied regions of Ukraine at a ceremony at the Kremlin on Friday, Moscow said, after President Vladimir Putin threatened he could use nuclear weapons to defend the territories.

The Russian leader is expected to deliver a major speech at the event, following referendums held last week in which four Ukrainian regions voted in a landslide to join Russia, but which were dismissed as a sham by the West.

In a presidential decree issued Thursday evening, Putin said he had recognised the independence of Zaporizhzhia and Kherson, paving the way for Moscow to claim the territories.

Russia recognised the independence of the two other regions it is preparing to annex — Donetsk and Lugansk — at the end of February.

“I order the recognition of the state sovereignty and independence” of the regions of Zaporizhzhia and Kherson, located in southern Ukraine, Putin said in the decrees.

Putin’s nuclear threats have not deterred a sweeping Ukrainian counter-offensive, which has been pushing back Russian troops in the east and is on the doorstep of the Donetsk town of Lyman, which Moscow’s forces pummelled for weeks before capturing it this summer.

Putin has blamed the conflict in Ukraine on the West and said simmering conflicts in the former Soviet Union were the result of its collapse.

The rhetoric built on his now-famous phrase that the fall of the USSR was a tragedy, and he has recently suggested Moscow should extend again its influence over the former Soviet region.

– US rejects claims –

The Kremlin-installed leaders of the four regions that pleaded to Putin for annexation this week were gathered in the Russian capital on Thursday, ahead of the ceremony.

Their nearly simultaneous requests came after they claimed residents had unanimously backed the move in hastily organised referendums that were dismissed by Kyiv and the West as illegal, fraudulent and void.

Ukraine said the only appropriate response from the West was to hit Russia with more sanctions and to supply Ukrainian forces with more weapons so they could keep reclaiming territory.

US President Joe Biden said Thursday that “the United States will never, never, never” recognise Russia’s claims on Ukraine’s sovereign territory.

UN Secretary-General Antonio Guterres also rejected the annexation plans, condemning them as “a dangerous escalation”.

“It must not be accepted,” he said.

The UN Security Council will vote at 1900 GMT on Friday on a resolution condemning the referendums, according to France, the council’s current president.

But the resolution — drafted by the United States and Albania and whose exact contents are not yet public — has no chance of passing due to Moscow’s veto power, though it can be presented to the General Assembly after the vote.

Ukraine’s President Volodymyr Zelensky called an “urgent” meeting of his national security council for Friday, his spokesman said, after the Kremlin announced the timing of the annexation ceremony.

The four territories create a crucial land corridor between Russia and the Crimean peninsula, annexed by Moscow in 2014.

Together, all five make up around 20 percent of Ukraine, whose forces in recent weeks have been clawing back ground.

In the south, Ukrainian forces have been wresting back territory near Kherson, and residents of recently recaptured villages described the months spent under Russian occupation.

“They robbed and humiliated us,” 72-year-old Maria Syzhuk said in the village of Vysokopillya, over the dull thuds of artillery from both sides — mostly in the distance, but sometimes a little closer.

Ukrainian troops in particular have been progressing in the eastern Kharkiv region and recapturing territory in Donetsk. Military observers say Kyiv’s forces are close to capturing Lyman. 

–  ‘I don’t want to kill people’ – 

Moscow’s forces are striking back along the entire frontline and officials in Kyiv said Thursday that Russian bombardment had killed three in the Dnipropetrovsk region, killed five in Donetsk and wounded seven in the Kharkiv region.

Along with threats to use nuclear weapons, Putin announced a mobilisation of hundreds of thousands of Russians to bolster Moscow’s army in Ukraine, sparking demonstrations and an exodus of men abroad.

Putin on Thursday called for mistakes with the draft to be “corrected”, as discontent grows over the often chaotic conscription push. 

Finland’s Vaalimaa crossing has been flooded with new arrivals recently. Helsinki announced on Thursday it would close its border from midnight to Russians holding European tourism visas for the Schengen zone.

“I just made it through, I don’t know how the others will get through,” Andrei Stepanov, a 49-year-old Russian, told AFP.

On a bright morning in Mongolia’s capital Ulaanbaatar, a young Russian fleeing Moscow’s first military call-up since World War II had a stark answer for why he had left: “I don’t want to kill people.”

“It was very difficult to leave everything behind — home, motherland, my relatives — but it’s better than killing people,” the man in his 20s told AFP, speaking on condition of anonymity.

Belarus was preparing to host 20,000 Russian soldiers, converting warehouses, hangars and abandoned farms into military accommodations, Ukraine’s ministry of defence said on Thursday.

To bolster Ukraine, the United States pledged more money on Thursday, with the Senate approving $12 billion in new economic and military aid as part of a stopgap budget extension.

The European Commission has proposed fresh sanctions targeting Russian exports worth seven billion euros, an oil price cap, an expanded travel blacklist and asset freezes.