Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
The powerful storm off Florida's Gulf Coast has our attention this morning. It is prompting a red headline just crossing the Bloomberg Terminal. Hurricane Edalia has been upgraded to category four strength. That is, according to the National Hurricane Center, top wins one hundred and thirty miles an hour, and Dahlia is expected to make landfall later this morning. Florida Governor Ronda Santis is warning golf residents.
This is a crunch time right now.
We're going to get hit with the major hurricane.
And Bloomberg Meteorologist Rob Carolyn is monitoring this storm for us.
What is the latest, Rob, Nathan and Kareny.
Dahlia continues to strengthen as it tracks towards the Big Bend area of Florida. It looks like it'll make landfall later this morning, somewhere between Appalachicola and cedar Key. The good news is this area is not very heavily populated. The bad news is it's kind of shallow, so the storm surge is going to cause some signifying damage. And that storm surge is going to be ten to fifteen feet.
We also have tornado watches up along the path of the storm that'll continue throughout the day up into North Florida, eventually South Georgia. It looks like we're going to see a pote storm system this morning. It won't really start to weaken a whole lot until lead to this afternoon.
So what can we expect from the storm once that happens, Rob, Well.
We'll see a switch from the problems with the storm Serve this morning on high winds to heavy rainfall lead to the saft noon as the storm works its way up towards South Georgia and eventually into the eastern Carolinas. Those areas are more at risk for heavy rain, though there will be some gusty winds, particularly along the Carolina coast. Once the storm system moves off shore tomorrow, We'll be keeping on whether or not it tracks out to sea or tries to move towards the south and east.
All right, Bloomberg Meteorologists Rob Carolin, and we'll be checking back with you on hurricane and daily. Yet throughout the morning.
Well, it looks like the hurricane could have a financial impact on one of the world's richest people. And we get this story from Bloomberg's John Tucker, John and Karen Warren.
Buffett's Berkshire Hathaway earlier this year made a bath at Florida's reinsurance market would deliver huge premiums with minimal losses. The firms exposed to as much as fifteen billion dollars of losses in the event of a major storm. Auji Jane, the vice chair of insurance operations, said at Berkshire's investor event in May that they had a very unbalanced portfolio. What that means, he said at the time, if there's a big hurricane in Florida, we will have various substantial losses.
Hurricane Adeli is about to test Buffett's bet, with months of potential storms still left this season. I'm John Tucker, Bloomberg Daybreak.
All right, John, thank you. Turning to markets now, stocks are coming off their biggest gains since June, while bond yields retreat. It's after the latest economic reports bolstered speculation the FED is nearing an end to raising rates. Today, the Fed and investors will have more data to digest, including second quarter gross domestic product. Bloomberg's Vinians del Judice reports and.
It's initial estimate. The government peg US economic growth at a healthy two point four percent, up from last year's first quarter pace. Bloomberg Canomic says the economy's momentum carried into the third quarter. However, high interest rates could cause the US to falter late this year. Bloomberg Economics as a recession could be in the cards. Also today, in the US Payroll Process or ADP issues data on August business hiring, while the National Association of Fieldtur's reports on
July penning home sales. There's trade data too for July. Finny Dell Judais Bloomberg day.
Break, Finny, thanks well. There's plenty of economic data out of Europe this morning. The Consumer Price Index and a key part of Germany, indicates that country's overall inflation is accelerating and inflation quickened again in Spain. Consumer prices there rose two point four percent in August from a year earlier.
That's up from two point one percent the prior month.
On the earnings front, Karen shares of HP are down nearly nine percent in early trading.
The companies reducing its.
Full year cash flow and profit outlook. HP says a rebound in the market for personal computers will take longer than expected. We hear from another major player in the tech space later today, Salesforce reports earnings after the closing bell, and we're.
Also following the crypto space this morning. This after Grayscale, when a key cored battle it's pushed to launch a bitcoin exchange traded fund. The victory brings to the crypto industry closer to tapping billions of dollars from everyday investors. In Bloomberg'skaylee Lines breaks down what it all means for the sector.
Grayscale has moved closer to launching a spot based bitcoin ETF in the US and what is potentially a watershed moment for the crypto industry, a DC Circuit court handing them a victory when a three judge appellate panel overturned a decision by the SEC to block the ETF. They said in the ruling this is a quote. The denial of Greyscale's proposal was arbitrary and capricious because the Commission
failed to explain its different treatment of similar products. In the absence of a coherent explanation, This unlike regulatory treatment of products is unlawful. Basically, they're poking a hole in the SEC's argument that a futures bitcoin ETF, which already has been approved in the US, should be treated differently than a spot based product.
Bloomberg Canlee Sis Knows Grayscale Investments Bitcoin trust search seventeen percent.
Yesterday, and Apple said its biggest product event of the year. Here's Bloomberg's Charlie Pellett.
The date is September twelfth, and Apple will unveil the iPhone fifteen line and next generation smartwatches. The company announced the plans on its website and via email under the tagline Wonderlust. The presentation will be streamed online at ten am Pacific, with an accompanying event at Apple's Steve Jobs Theater in Koopertino. Apple is under more pressure than usual with this iPhone launch. Its sales of slip for three straight quarters as the company contends with shaky demand for
smartphones and other devices in New York. Charlie Pellett Bloomberg Daybreak.
All right, Charlie, thanks time now for a look at some of the other stories making news around the world. For that, we're joined by Bloomberg's Amy Morris Amy, good morning.
Good morning, Karen. President Biden's administration is criticizing New York York City and the state for how they've handled the migrant crisis. Homeland Security Secretary Alejandro new Yorkist wrote letters to Mayor Eric Adams and Governor Kathy Hochel pointing out structural and operational issues following an assessment of the program. Now, Mayor Adams and Governor Hokel appear to be placing the
blame on each other. Adams to HOCl to task publicly during his talk at NYU Law School just yesterday.
Governor Hockle has been a partner on subway safety, on crime, on a host of things.
But I think this issue, I think the governor is wrong.
Every county in this state should be part of.
This local rejected that request last week, noting a nineteen eighty one agreement between the city and a homeless group that the city would provide shelter to anyone who needs it, but she says that only applies to New York City
and not the other counties in the state. A newly filed lawsuit is asking a judge to deem former President Donald Trump ineligible for the twenty twenty four ballot in New Hampshire, The Boston Global Sports The lawsuit filed by Republican John Anthony Castro of Texas argues that Trump is ineligible to hold public office because he quote provided aid or comfort to the insurrectionists from the January sixth attack
on the Capitol. Castro also filed a federal lawsuit in Florida back in January seeking to have Trump disqualified, but that lawsuit was dismissed. A powerful member of Congress has announced a tough fight for his health. President Biden has called Representative Scalise to wish him a swift recovery. House Speaker Kevin McCarthy says he's talked with Scalice, who remains in good spirits. Scalie is often mentioned as a potential successor to House Speaker Kevin McCarthy.
Global News twenty.
Four hours a day, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Amy Morris, and this is Bloomberg.
Karen all right, Amy, thank you, and it's time now for the Bloomberg Sports Update.
And here's John Stashaur John good Morning.
Jaran and hitter. In San Francisco, the Giants Alex Cobb had it going with two outs in the ninth inning, Spencer Steer of the Reds broke it up with a double. Com threw one hundred and thirty one pitches all the way on a one hit of The Giants beat the Reds six to one. The Orioles hosting the White Sox, one one, seventh and eighty two pitch round ball. They shit down the right field line. It'll score one.
It'll store two. Henderson flying around.
Third, he will make it a.
Three run double for Anthony Suntine.
Dare breaks the tie.
Ubaal had the call and the Oriols would go on to win nine to three. They've got a two and a half game lead on Tampa Bay in the AL East. There's now a three way tie for first in the AL West, as Seattle lost for just the second time in the last fourteen games, beaten by Oakland three to one, now tied for first with Texas and Houston. The Astros one in Boston six to two. The Nationals won in
Toronto five to four. Baseball Players Association and asking for a review of safety protocols after that incident in Denver on Monday, when fans came onto the field and went to Atlanta Star outfield Ronald Acunya Junior, one of them embracing Acunya, another knocking him over. Both were arrested. Last Friday, at a White Sox game in Chicago, two female fans
were wounded in a shooting. US Ryder Cup captain Zach Johnson filling out his roster with Sam Byrn, Ricky Faller, brooks Kepta, Colin Morrikawa, Jordan Speeth, and Justin Thomas johnstsh Award Bloomberg.
Sports from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on Sirius Exam, the Bloomberg Business app in Bloomberg dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
We continue to keep an eye on Hurricane Adalia, now a Category four storm aiming at Florida's Big Bend, where the Peninsula meets the Panhandle. President Biden says he's keeping an eye on the storm.
We're worried about that.
The surge, the ocean surge, we don't know exactly.
Hour to hour.
We're watching this also watching, of course, Bloomberg meteorologist Rob Carolyn, who joins me. Now, Rob, it seems as though this storm is gaining strength and speed really quickly.
What's the latest track.
Well, the track now, Nathan, as of the five am statement from the Hurricane Center has the storm moving towards the north northeast at eighteen miles an hour. It's about sixty miles due west of Cedar Key, Florida. It is going to make landfall later this morning in Appalachi Bay. The good news about that area is it's not overly populated. There's a big National Wildlife preserve there. Looks like that's where the worst of the winds in storm surge will
go inland this morning. But such a powerful hurricane with winds of one hundred and thirty miles an hour, and it may strengthen a little bit more before it makes landfall. It's going to be a dangerous storm as it goes inland into North Florida. The Severe Storm Prediction Center has a tornado watching effect for much of Central Florida and the Big Bend area that will extend later today on
up into North Florida and South Georgia. Nathan, storm surge should be about ten to fifteen feet in that portion of the Big Bay Big Bend area this morning. The bay there is fairly shallow, so they think the water is going to be able to extend fairly far inland
and that will certainly cause some issues. Look for gus over one hundred and thirty miles an hour as the storm goes inland, probably between about seven and eight o'clock this morning, and then it looks like the big threat then becomes heavy rains which will be spreading from North Georgia into the Carolinas along the path of the storm, at least four to eight inches of rain, and that is certainly going to lead to lots of flesh flooding
across North Florida Southern Georgia this morning and then on up into eastern Georgia and the Carolinas later today and tomorrow.
So it's not just that Big Bend area of Florida where we're expecting a lot of impacts. When we think about the storm surge, Rob you mentioned that some of the worst of it is going to be in that less populated but shallow area. Are there other parts of the Florida Gulf Coast that need to be concerned about storm surge, even if it's not dire levels is ten to fifteen feet, but possibly a more shallow, potentially storm surge.
North of Tampa Bay, there's going to be a storm surge of about four to eight feet, Nathan to the west of Apalachicola. There's not going to be a problem with the storm surge since the winds are offshore and it's actually blowing the tide out into the Gulf. But it's those areas north of Tampa Bay all the way
to about Apalachicola that are going to be problems. Again, about a four to eight foot storm surge, I would say south of cedar Key, and then it's ten to fifteen feet between cedar Key and Apalachicola.
Why is this storm seeming like it's building so much strength so quickly. We've heard warnings from the National Hurricane Center that this storm is unlike anything that they've really seen before.
Why is that?
Well, I disagree with that statement because Katrina was a Category one storm on the east coast of Florida in two thousand and five. Thirty six hours later, it was a Category five. So we have been seeing these storms get stronger much more quickly in the last twenty years, and it's due to the fact that the ocean are much warmer right now than they were twenty years ago.
That's what's fueling this system. This storm has been moving over waters the last thirty six hours that are at ninety degrees fahrenheit that extend down to a depth of three or four hundred feet. That's like rocket fuel for a hurricane. They breed on water temperatures above eighty degrees and every degree you get above eighty is just fuel on top of the fire for these storms. That's why we're seeing them intensify so quickly, and it's been going on for a number of years now. We had it
happen with Irma and Maria back several years ago. Katrina do the same thing. This has been the trend with these storms to develop very quickly and get very strong in a hurry.
Does that mean that we could see even further intensification before this storm makes landfall a little bit.
The core of the storm is still over water, but a lot of its circulation now is over the Florida Peninsula or Panhandles. So I don't expect rapid deepening, but I certainly could see it at you with winds of about one hundred and thirty five or one hundred and forty miles now by the time it makes landfall, which would put it on the same order as Hurricane Hugo which Charleston in ninety nine.
Wow.
And of course we are watching just daily. There are a number of other named storms of the Atlantic right now. What other systems are you keeping an eye on that could potentially have an impact on the US.
None of them other than some big star Franklin is passing west of the island of Bermuda. It'll bring them tropical storm force Windnesday, but it stays out in the Atlantic. There's a coal front dropping down from the north and east, Nathan, that eventually is going to push both of these storms out into the Atlantic, a tropical depression number eleven. No threat to anyone. That's a fish storm out in the south central Atlantic.
This is Bloomberg Daybreak Today, your morning brief on the story's making news from Wall Street to Washington and beyond.
Look for us on your podcast feed at six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts.
You can also listen live each morning starting at five am Wall Street Time, on Bloomberg eleven three to zero in New York, Bloomberg ninety nine to one in Washington, Bloomberg one oh six to one in Boston, and Bloomberg nine sixty in San Francisco.
Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.
Listen coast to coast on the Bloomberg Business app, serious XM Channel one nineteen, the iHeartRadio app, and on Bloomberg dot com.
I'm Nathan Hager and I'm Karen Moscow.
Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak