Hurricane Milton makes landfall in Florida

Immediately’s agenda: HSBC’s cost-cutting plans; OpenAI’s restructuring; Russia’s “shadow” oil fleet; and Israel’s rising Lebanon offensive

Good morning. Hurricane Milton has made landfall on Florida’s extremely populated western coast, bringing life-threatening flooding and excessive winds to the state for the second time in two weeks. Greater than 2mn houses and companies had been left with out energy. Right here’s what we all know to date.

What’s the storm’s scale? The hurricane made landfall as a class three storm on the five-step Saffir-Simpson scale with winds of 120mph, the US Nationwide Hurricane Middle stated, warning of “life-threatening” gusts, tornadoes and storm surges of as much as 13ft. The top of the US Federal Emergency Administration Company has described the hurricane as “lethal and catastrophic”.

What’s at stake: The NHC has warned that Milton might be one of many space’s most harmful hurricanes on report. Analysts estimate Milton may set off insurance coverage losses of as much as $60bn, with losses over the hurricane season prone to “dent” the sector’s profitability. One insurer stated potential harm within the space, the place many homes are usually not constructed to resist main storm occasions, might be extreme.

The hurricane may additionally disrupt oil costs. Chevron stated it had shut down manufacturing on the Blind Religion platform within the Gulf of Mexico forward of the hurricane and eliminated its workers from the location. Other than oil manufacturing, analysts have additionally stated the hurricane may harm demand for petrol.

Milton is forecast to stay at hurricane energy whereas it strikes throughout central Florida in the present day. We’ll bring you more updates as the situation develops.

And right here’s what else I’m maintaining tabs on in the present day:

• Financial information: The US has September inflation figures, whereas the Royal Establishment of Chartered Surveyors publishes its newest UK residential market survey.

• Tesla: Elon Musk’s group is ready to unveil its first self-driving “robotaxis”, after the electrical automobile maker lately missed market expectations for automobile deliveries.

• Nobel Prize: The award for literature is introduced in Sweden. Struggle within the Center East has cast a shadow over tomorrow’s peace prize, with the UN company for Palestinian refugees among the many nominees.

5 extra high tales

1. Unique: HSBC’s new chief govt plans to focus on the lender’s costly layer of senior bankers in a cost-cutting transfer aimed toward saving as a lot as $300mn. Georges Elhedery is drawing up plans to merge HSBC’s industrial banking unit with its world banking and markets unit. Read the full story.

2. Unique: Metal magnate Sanjeev Gupta is being prosecuted over his alleged failure to file accounts within the UK. The fees relate to 76 firms together with his buying and selling agency Liberty Commodities and a variety of companies comprising his Liberty Metal group of metals crops, according to court documents seen by the Financial Times.

3. Unique: OpenAI is planning to restructure as a public profit company to defend itself from hostile takeovers and defend chief govt Sam Altman from outsider interference. Whereas largely untested, this uncommon kind of firm mannequin has additionally been adopted by rivals akin to Anthropic and Elon Musk’s xAI. Here’s how the PBC structure works.

4. Donald Trump has stated he would finish “double taxation” for thousands and thousands of People residing abroad if he wins the US presidential election subsequent month. There are as much as 9mn People residing or serving abroad, however this doesn’t exempt them from submitting US tax returns. Here’s why their votes matter in the White House race.

• Democratic infighting: Alexandria Ocasio-Cortez has warned of an “out and out brawl” if Kamala Harris removes Lina Khan, the antitrust progressive who chairs the Federal Commerce Fee.

5. The UK chancellor has been warned to not sharply enhance authorities borrowing in a push for extra public funding in her October 30 Funds. An Institute for Fiscal Research evaluation exhibits Rachel Reeves may create house to boost funding spending by greater than £50bn if the federal government targets a broader measure of the general public funds, however the think-tank stated she would need to be “very cautious”.

FT investigation

Russia has created a “shadow fleet” of greater than 400 vessels transferring about 4mn barrels of oil a day, circumventing western sanctions to create billions of {dollars} a yr in further income for its warfare in Ukraine. The FT’s newest investigation exhibits how advanced preparations involving a British accountant, a London-listed dealer and Dubai-based firms helped one in every of Russia’s largest oil producers buy ships while hiding its involvement.

We’re additionally studying . . . 

• DoJ vs Google: The tech big is looking for to delay and deflect a historic break-up menace by accusing prosecutors of regulatory “over-reach”.

• Ratan Tata: The Indian industrialist who led his household group on an bold abroad growth that included Jaguar Land Rover and UK metal crops has died aged 86.

• Portugal: The nation’s novel plan to stop its brain drain would minimize the earnings tax burden on younger employees for a decade, together with a tax-free first yr.

• 80-hour weeks: Wall Avenue’s strikes to cap weekly hours for entry-level bankers are butting towards the fact of a aggressive business.

Graphic of the day

When Israel launched its first invasion of Lebanon for almost twenty years, it characterised the operation as “restricted, localised and focused”. However over the previous week, the dimensions of the Israeli floor assault towards Hizbollah has rapidly grown, fuelling fears the offensive will not be ending any time soon.

Take a break from the information

As employers more and more make concessions for his or her employees’ private lives, a lodge within the Philippines final yr unveiled an uncommon new workers coverage: five paid days of heartbreak leave. May this work profit enhance productiveness elsewhere?

Extra contributions from Gordon Smith and Benjamin Wilhelm