FirstFT: Hurricane Milton makes landfall in Florida

At the moment’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 properties and companies have 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 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 “deadly and catastrophic”.

What’s at stake: The NHC has warned that Milton may very well be one of many space’s most damaging hurricanes on report. Analysts estimate Milton may set off insurance coverage losses of as much as $60bn, with losses over the hurricane season more likely to “dent” the sector’s profitability. One insurer stated potential harm within the space, the place many homes will not be constructed to face up to main storm occasions, may very well 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 right now. We’ll convey you extra updates because the state of affairs develops.

And right here’s what else I’m holding tabs on right now:

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

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

5 extra prime 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. 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 corporations together with his buying and selling agency Liberty Commodities and various companies comprising his Liberty Metal group of metals vegetation, based on 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 govt Sam Altman from outsider interference. Whereas largely untested, this uncommon kind of firm mannequin has additionally been adopted by rivals equivalent 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 tens of millions of Individuals residing abroad if he wins the US presidential election subsequent month. There are as much as 9mn Individuals residing 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 Funds. An Institute for Fiscal Research evaluation reveals 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 must 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 extra income for its conflict in Ukraine. The FT’s newest investigation reveals how complicated preparations involving a British accountant, a London-listed dealer and Dubai-based corporations helped certainly one of Russia’s largest 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 risk by accusing prosecutors of regulatory “over-reach”.

• Ratan Tata: The Indian industrialist who led his household group on an formidable abroad growth 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 earnings 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 towards the truth of a aggressive business.

Graphic of the day

When Israel launched its first invasion of Lebanon for almost 20 years, it characterised the operation as “limited, localised and targeted”. However over the previous week, the size of the Israeli floor assault towards Hizbollah has shortly grown, fuelling fears the offensive is not going to 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