Hurricane damage could top $100 billion
Several states were still reeling Monday from catastrophic flooding and other fallout from Hurricane Helene, with the death toll passing 110 and thousands still without power. The storm’s damage toll could pass $100 billion, making it among the most destructive in several years, according to weather authorities.
Government agencies and regional news reports said at least 115 had died across Florida and five other states as major roads remained closed as a result of high waters and fallen debris. More than 2 million customers remained without power in the Carolinas as of Monday afternoon.
Nonprofit and government aid agencies were airlifting and trucking supplies to the hardest-hit cities, including Asheville, North Carolina, where water and utility systems were severely damaged. The Federal Emergency Management Agency said hundreds of roads were closed across western North Carolina, where more than 1,000 people were being housed in temporary shelters.
Forecasting service Accuweather put preliminary damage estimates from Helene at between $95 billion and $110 billion, but noted Monday that the full economic impact could reach between $145 billion and $160 billion. Those numbers would top those from Hurricane Ian of 2022, in which damage to Florida and surrounding states was estimated at more than $112 billion, according to the National Hurricane Center.
Companies brace for port strike
Companies such as retailers, cargo shippers, trucking and rail firms were bracing for the impact as dockworkers at 14 key East and Gulf Coast ports threatened to go on strike if a new labor agreement was not reached. The Biden administration said previously it would not intervene to avert a strike and urged labor and port management to reach contract terms as a midnight strike deadline loomed late Monday.
The strike by the International Longshoremen’s Association was threatened several weeks ago amid stalled contract talks and was scheduled to begin at 12:01 a.m. Tuesday, Oct. 1 as the current labor contract expired. Federal data showed a strike would affect ports that collectively handle nearly $14 billion in imported goods weekly, including New York/New Jersey, Baltimore, Miami, New Orleans, Houston and Savannah, Georgia.
No talks were immediately scheduled as of Monday afternoon between port operator U.S. Maritime Alliance and the union, which represents up to 50,000 workers who could potentially walk off their jobs. Equity researchers at JP Morgan estimated a strike could cost the U.S. economy $3.8 billion to $4.5 billion per day, though some of that could be recovered over time after normal cargo traffic resumes.
The affected ports are key hubs for imports such as cars, furniture, appliances, fruits and vegetables. Some retailers that depend on cargo imports have already switched some shipments to West Coast ports in advance of a potential strike, according to the National Retail Federation.
China stock rally cheers US investors
Property investors in the United States were among those paying particular attention after Chinese stocks started the week with their best day in more than 15 years, spurred by interest rate cuts and other economic stimulus moves enacted last week in that country.
Beijing officials announced rate reductions among other actions, in part to prop up what has long been a weak Chinese real estate market. There are implications for U.S. funds that invest in Asia’s largest market, shown by significant bumps Monday for U.S. exchange-traded funds focused on Chinese companies. Other U.S. investors could be adjusting their long-term strategies regarding China.
"While we don’t know for sure if there’s going to be enough to really kick the economy back into gear, it’s certainly the right first step,” Art Hogan, chief market strategist at equity firm B. Riley Wealth, told CNBC Monday. “I think the impact of a strengthening China can’t be underestimated.”
Verizon to sell mobile phone towers
Verizon Communications plans to sell thousands of its cell phone towers to digital infrastructure firm Vertical Bridge in a $3.3 billion sale-leaseback deal, as the nation’s largest wireless carrier looks to bolster its cash reserves and support network expansion.
New York-based Verizon said Monday it entered into a definitive agreement for Vertical Bridge to operate and manage 6,339 of its cell towers across 50 states and Washington, D.C. A company statement said the deal, along with an existing build-to-suit joint venture with Boca Raton, Florida-based Vertical Bridge, “will support Verizon’s efforts to drive down tower-related costs and provide greater vendor diversity in a concentrated industry.”
Like data centers, cell towers have grown beyond niche status to become a significant category for property investment during the past decade, as companies in multiple industries seek to upgrade their information storage, security and communication systems, according to analysts.