Hurricane Milton makes landfall in Florida

In the present day’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 up to now.

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 Heart stated, warning of “life-threatening” gusts, tornadoes and storm surges of as much as 13ft. The pinnacle 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 document. 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 injury within the space, the place many homes will not be 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 damage demand for petrol.

Milton is forecast to stay at hurricane power whereas it strikes throughout central Florida at the moment. We’ll carry you extra updates because the scenario develops.

And right here’s what else I’m maintaining tabs on at the moment:

• Financial knowledge: 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 about to unveil its first self-driving “robotaxis”, after the electrical car maker just lately missed market expectations for car deliveries.

• Nobel Prize: The award for literature is introduced in Sweden. Warfare within the Center East has forged 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 government plans to focus on the lender’s costly layer of senior bankers in a cost-cutting transfer geared toward saving as a lot as $300mn. Georges Elhedery is drawing up plans to merge HSBC’s industrial banking unit with its international banking and markets unit. Learn the total story.

2. Unique: Metal magnate Sanjeev Gupta is being prosecuted over his alleged failure to file accounts within the UK. The costs 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 vegetation, in response to courtroom paperwork seen by the Monetary Instances.

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

4. Donald Trump has stated he would finish “double taxation” for hundreds of thousands of Individuals dwelling abroad if he wins the US presidential election subsequent month. There are as much as 9mn Individuals dwelling or serving abroad, however this doesn’t exempt them from submitting US tax returns. Right here’s why their votes matter within the White Home 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 improve authorities borrowing in a push for extra public funding in her October 30 Price range. An Institute for Fiscal Research evaluation reveals Rachel Reeves may create area to lift 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 should be “very cautious”.

FT investigation

Russia has created a “shadow fleet” of greater than 400 vessels shifting about 4mn barrels of oil a day, circumventing western sanctions to create billions of {dollars} a yr in further income for its struggle in Ukraine. The FT’s newest investigation reveals how complicated preparations involving a British accountant, a London-listed dealer and Dubai-based firms helped one in all Russia’s greatest oil producers purchase ships whereas hiding its involvement.

We’re additionally studying . . . 

• DoJ vs Google: The tech large is searching 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 formidable abroad enlargement that included Jaguar Land Rover and UK metal vegetation has died aged 86.

• Portugal: The nation’s novel plan to cease its mind drain would lower the revenue tax burden on younger employees for a decade, together with a tax-free first yr.

• 80-hour weeks: Wall Road’s strikes to cap weekly hours for entry-level bankers are butting in opposition to the truth of a aggressive business.

Graphic of the day

When Israel launched its first invasion of Lebanon for practically twenty years, it characterised the operation as “restricted, localised and focused”. However over the previous week, the size of the Israeli floor assault in opposition to Hizbollah has rapidly grown, fuelling fears the offensive won’t be ending any time quickly.

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: 5 paid days of heartbreak go away. Might this work profit enhance productiveness elsewhere?

Further contributions from Gordon Smith and Benjamin Wilhelm