Friday, August 25, 2017

Hurricane Harvey is expected to hit Texas today with 110-mph winds — here’s what you need to know

Hurricane Harvey is expected to hit Texas today with 110-mph winds — here’s what you need to know

  • Texas is bracing for Hurricane Harvey.
  • The Category 3 storm is expected to make landfall Friday night.
  • Rainfall is the biggest threat, with as much as 35 inches expected along the Texas coast.
Hurricane Harvey is gaining power in the Gulf of Mexico, barreling toward the Texas coast with wind speeds as high as 110 mph.
The National Hurricane Center expects Harvey to hit the southern flank of Texas as a Category 3 hurricane on Friday night, with "life-threatening and devastating flooding."
Forecasters predict that upon making landfall, the storm will stall until Tuesday and dump up to 35 inches of rain onto much of Texas.
As of early Friday, the beaches of South Padre Island (located just off the Texas coast) started getting turbulent. 
 The storm surge, the quick rise in water caused by a hurricane's strong winds, could crest 12 feet on Padre Island, putting many sections underwater. Many coastal towns could experience 2 to 8 feet of storm surge.
At 11 a.m. Eastern time on Friday, the storm was sitting about 115 miles southeast of Corpus Christi, Texas, with maximum sustained wind speeds of 110 mph, classifying it as a Category 2 hurricane.
Jeff Masters, meteorologist at The Weather Company and co-founder of Weather Underground, told Business Insider that Harvey will likely cause $5 billion in damage, though the total cost could get as high as $10 billion. The amount of rain Harvey could produce might break records, Masters said.
"There is an unusual amount of moisture available to this storm, and it is large and powerful, so rainfall records could topple," he said.

How bad the damage could be

092407_5day_cone_no_line_and_wind (1)NOAA
Hal Needham, a hurricane scientist at Louisiana State University, wrote in a blog post on the weather site WXshift that worrying about the storm's category underestimates how dangerous the rainfall could be and how much damage it could cause.
"Hurricanes and tropical storms throw three hazards at us: wind, rainfall, and storm surge," he wrote. "Think of the impacts separately. Storms with weaker winds are more likely to stall and dump heavier rainfall. This shocks people, as it would seem intuitive that a Category 5 hurricane would tend to dump more rain than a Category 1 hurricane. But the opposite is true."
While strong winds can rip shingles off roofs and tear down power lines, flooding often causes more widespread, costlier damage — and can be more dangerous for humans. Needham said that the scale used to distinguish a hurricane from a tropical storm was based solely on maximum sustained wind but that "storms are too complex to define by one number."
The last major hurricane to hit the Texas Gulf coast was Ike — a Category 4 storm that caused $38 billion in damage in 2008.
The best-case scenario for Harvey, Masters said, would be for the storm to center on unpopulated regions such as the Padre Islands, like Hurricane Bret did in 1999.
But the worst-case scenario, which one of the best models is predicting, is for Harvey to make landfall, dump rain on Texas for a few days, then go back out into the Gulf of Mexico, intensify, and make landfall again in Louisiana.
"It's possible that this could be a double-landfall hurricane," Masters said.

How Texas is preparing

Texas Gov. Greg Abbott declared a state of disaster on Wednesday for 30 counties in Harvey's path, freeing up state money and resources to respond to the storm.
Officials in many coastal cities are encouraging residents to evacuate. The mayor of Corpus Christi told the city's population of over 325,000 to evacuate, particularly if they live in low-lying areas. Two cities, Port Aransas and Aransas Pass, have declared mandatory evacuations.
Masters recommended only evacuating if emergency experts say to, since many of the deaths during Hurricane Rita in 2005 were a result of the evacuation.
If you're one of the roughly 12 million people in Harvey's path, the National Weather Service has a useful guide on how to prepare for hurricanes, and the Texas Department of Public Safety has tips on evacuating.

Amazon once again flashes its ability to destroy the competition

Amazon once again flashes its ability to destroy the competition

bezos stern angry meanJeff Bezos and Amazon have once again shown their ability to wreak havoc on an entire industry.Reuters / Brendan McDermid
  • By announcing sweeping price cuts at Whole Foods, which it recently acquired, Amazon once again succeeded in wreaking havoc on the grocery industry.
  • It's just the latest example of the company wiping out billions of dollars of competitors' market caps with a corporate announcement, and it's bound to happen again.
  • Competitors' stock prices are looking more sensitive to Amazon's news than their own.
Amazon is once again sending shockwaves rippling through the retail industry.
The Jeff Bezos-led juggernaut announced on Thursday that it would start cutting prices at Whole Foods, the organic grocer it acquired for $13.7 billion in mid-June. The pricing overhaul will begin on Monday, it said, the same day the deal is expected to close.
The news had a quick and devastating effect on the share prices of competing grocers. Krogerdropped as much as 8.3%, while Sprouts Farmers Market slipped 6.6% and Target lost 4.2%. Walmart, which sells the most groceries in the US, fell more than 2%.
The widespread weakness in the grocery industry highlights an interesting wrinkle that's developed: Companies in Amazon's crosshairs are moving more on what the retail giant is doing than on their news and fundamentals.
Take Sprouts, for example. It fell just 1.7% after its second-quarter earnings report — a piece of news that had to do with its operations. Walmart found itself in a similar situation when it announced results last week, falling 1.6%, even after giving a lukewarm third-quarter forecast.
The collateral damage among grocers is just the latest example of Amazon imposing its will on an entire industry with a simple corporate announcement, leaving billions of dollars of erased market value in its wake. And there's nothing to suggest this dynamic will slow down anytime soon. Retailers are being forced into a new reality where the specter of Amazon lurks at every turn.
It first happened to the grocery industry right after the Whole Foods deal, with the group losing 8% over the following week. Sporting-goods retailers felt similar pain around the same time amid speculation that the sneaker and apparel giant Nike would start selling products on Amazon.
In the end, Amazon added $18 billion in market cap in a week while its competitors lost a total of $31 billion — an almost $50 billion gap.
Only time will tell which industry will be the next to feel Amazon's wrath. It's possible that competing grocers will feel the pain multiple more times before it's all said and done. Or it could be another area entirely.
And that's the scary part: Any section of the retail universe could be next.

Thursday, August 24, 2017

The market is starting to freak out about the debt ceiling

The market is starting to freak out about the debt ceiling

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Investors are starting to brace for yet another debt-ceiling debacle.
The evidence of that is found in Treasury bills, an often-overlooked but highly sensitive market that reflects the premium investors want for lending to the US government.
The Treasury Department auctions bills that mature within a year to borrow from the public. Amid concern that the government will run out of funding mid-October, the yields on Treasury bills due that month are spiking.
Yields on bills due October 5 rose Thursday to 1.175%, the highest level since August 10, according to Bloomberg. Bills due the following week jumped to their highest level since they were issued in October 2016.
Yields on Treasury bills due October 12 have steadily increased in the last several months and have recently spiked.
treasury yieldsAndy Kiersz/Business Insider
And bills that mature in October, when the debt ceiling could be breached, have higher yields than those maturing earlier or later, as this chart shows.
8 24 17 treasury yields by maturity COTDBusiness Insider/Andy Kiersz, data from Bloomberg
By mid-October, Congress must vote on whether to raise America's borrowing limit and keep the government funded. Failure to do so would lead to a government shutdown. In 2013, the government shut down for 16 days after Congress disagreed on funding for the Affordable Care Act.
The issues this time are funding for the construction of a wall along the southern US border and Trump's public disagreements with key Republican leaders in Congress.
Democrats in Congress have rejected Trump's request for $1.6 billion to build the wall. At a rally in Phoenix on Tuesday, Trump indicated he was ready to shut down the government to fulfill the campaign promise. But the following day, House Speaker Paul Ryan said his colleagues did not think a shutdown was "necessary."
Trump's feud with Senate Majority Leader Mitch McConnell became public earlier this week after The New York Times reported that they hadn't spoken for weeks. Trump had blamed McConnell for the failure of the healthcare bill, while McConnell reportedly expressed doubt that Trump could salvage his presidency.
Trump then tweeted Thursday that he had asked McConnell and Ryan to tie the debt-ceiling legislation with a Department of Veterans Affairs bill the house approved on Tuesday. "They didn't do it so now we have a big deal with Dems holding them up (as usual)," he said.
This conflict could stifle efforts to pass other items on the Republican agenda including tax cuts.

The Chinese World Order (Video)





The Chinese World Order

2016 , 

The future of globalization is no longer strictly a westernized construction. In fact, the economic fate of the world may soon be made in China. The Chinese World Order looks at the country's ambitious efforts to reshape global economics.
The World Bank and the International Monetary Fund may no longer be the most influential players in international finance. In 2015, the Asian Infrastructure Investment Bank was born as a means of financing a revolutionary infrastructure project spearheaded by China. The project, known as One Belt One Road, will open the door to unprecedented avenues of world trade, and will place China at the epicenter of it all. Many countries including France, Germany, the Netherlands, Iran, Turkey and Pakistan have joined. Much to the chagrin of the United States, the United Kingdom has climbed onboard as well.
What are China's ultimate motivations, and how are they going about achieving their goals? The filmmakers attempt to interpret ancient Chinese history, as well as the values and cultural distinctions that drive their current global ambitions. In contrast to the U.S., they're not purely driven by monetary reward, and they're not following the long accepted western model. They have no interest in forcing opposition countries to join in their cause. If the U.S. continues to harbor disdain for their efforts, they are content to continue forward without American support, and to set an example by which other countries are keen to follow.
It's working. China's scope of influence is quickly eclipsing that of the U.S. as their culture is beginning to infiltrate every aspect of global society from education to finance to sports entertainment. The U.S. remains stagnant while China continues to build momentum on the world's financial stage. Meanwhile, the U.K. is stuck in the middle between the two top global superpowers.
A new world order led by China seems inevitable, but there could be signs of worry and decay on the horizon. After enjoying many decades of delirious growth, The Chinese Central Bank announced devaluation of their currency in 2015. If the Chinese economy should weaken to a substantial degree, could it herald a catastrophe felt across the globe?
The Chinese World Order is an eye opening expose that illuminates a rapidly shifting balance of power.
Directed byJos de Putter

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