2024-10-04 19:27

Thousands remain cut off around Asheville Volunteer groups step in to aid relief efforts Federal response includes active military, National Guard ASHEVILLE, North Carolina, Oct 4 (Reuters) - An army of private volunteers including mule drivers and helicopter pilots are helping deliver supplies and rescue stranded victims after one of the deadliest storms in recent U.S. history ripped through the mountains of western North Carolina. One week after Helene slammed into the Florida Panhandle and devastated wide swaths of half a dozen states, untold thousands remained cut off around Asheville, North Carolina, with many roads impassable and telecommunications equipment damaged or destroyed. The mountain communities' isolation has complicated the massive relief effort undertaken by federal, state and local officials. Many residents have stepped up to help, including Ben Miller, a real estate agent and father of two from the Winston-Salem area, who has been driving supplies into the affected area. "It's been pretty intense," he said. "This seemed like it couldn't happen here." Miller dropped off 27,000 bottles of water in Marion, just outside Asheville, on Sunday. The next day, the 44-year-old brought aid to Spruce Pine, a remote town where he has family roots. "I know how hard some of those areas are to get to when it's 60 degrees outside and totally dry. So as this thing started to unfold, I could really envision that there were a lot of places they were going to have trouble getting to," Miller said. Miller gathered donations from businesses and families from his son's soccer team, including large totes for distributing water for cleaning, washing and flushing toilets, he said. In addition to individual efforts, a number of volunteer groups are supplementing official channels of disaster relief, a long tradition that includes the so-called Cajun Navy, an ad hoc flotilla of civilians who helped rescue people stranded in Louisiana after 2005's Hurricane Katrina. A volunteer group of private pilots, the Altitude Project, says it raised $200,000 this week to fund operations, said member Andrew Everhart, who owns an insurance agency. His fellow volunteers include a professional race car driver, the owner of a distribution and logistics company, and others who work in commercial real estate and social media content creation. "It's a lot of guys that have jets and helicopters and a lot of connections, and we just decided to lock arms and create our own thing and help people out," Everhart said. The Altitude Project has been running supplies from a 25,000-square-foot (2,320-square-meter) warehouse in Charlotte to communities near Asheville, where about 20 inches (50 cm) of rain fell in a matter of hours late last week. "It usually takes the government three, four, five days to coordinate a response, so we just decided to hop into action," Everhart said. Helene, which has killed more than 200 people, ranks as the most deadly named storm to hit the mainland United States since Katrina, though the 2005 storm claimed a much higher death toll, estimated at 1,400 in a 2023 report , opens new tab by the National Oceanic and Atmospheric Administration. In the wake of Helene, the number of people unaccounted for remains unclear. Officials put the number in the hundreds earlier in the week, but that has come down as communications are slowly restored and stranded storm victims are located. The official response has included 1,000 active-duty military personnel ordered to help by President Joe Biden. In addition, 4,800 people from the federal workforce and 6,000 National Guard personnel from 12 states have been deployed, according to the White House. Another 600 search-and-rescue personnel were due to arrive and supplement the untold number of state and local rescue and relief teams. Volunteers are stepping up as well, including Tennessee-based flight company Aeroluxe Aviation, which brought a ground crew and three Robinson 44 helicopters to the area, co-owner Brook Barzyk said. Aeroluxe has carried out an estimated 150 deliveries of water, food, baby items, fuel and Starlink satellite systems, Barzyk said, with each helicopter able to carry 400 pounds (180 kg) of supplies. "When we're landing in some of the communities where we're dealing with residents of the communities, everyone has been extremely thankful, and very, very helpful, to a point where we have to monitor them rushing the helicopter because they're so excited," Barzyk said. Aircraft components maker Acme Aero said in a Facebook post it recovered 144 people on Monday, 120 of them over the age of 68. It also planned to deliver up to 200 Starlink satellite systems to rural fire departments. Others have gone overland on foot - and hoof. The Mountain Mule Packer Ranch in Raeford, North Carolina, is running mule trains of supplies into isolated areas, according to its Facebook posts. Mountain Mule Packers specializes in "extreme terrain pack animal supply trains" and services to military units operating in remote and high-altitude areas, according to their website. A local business owner, Dave Gindlesperger, 60, joined others in the mountains about 45 miles (72 km) northeast of Asheville to search homes. In some cases, the houses had disappeared, washed away by floodwaters. In other areas, entire communities were destroyed. "Some we went to, and there was nothing," he said. Riding on all-terrain vehicles, Gindlesperger and others cut their way through downed trees with chainsaws to get to houses. "Yesterday was the first day that I could sit down and cry and weep and just, you know, wrap my mind around this," said Gindlesperger, a North Carolina native who runs three furniture and household goods stores, including one in Boone that was destroyed. (This story has been refiled to remove an extraneous word in paragraph 6) Sign up here. https://www.reuters.com/world/us/by-mule-helicopter-volunteers-deliver-aid-helene-victims-2024-10-04/

2024-10-04 16:19

Canadian dollar weakens 0.2% against the greenback Touches its weakest level since Sept. 19 at 1.3591 For the week, the currency was down 0.5% Two-year yield climbs to one-month high TORONTO, Oct 4 (Reuters) - The Canadian dollar weakened to a two-week low against its U.S. counterpart on Friday as stronger-than-expected U.S. jobs data bolstered the greenback, but the move was limited as oil added to its recent gains. The loonie was trading 0.2% lower at 1.3575 to the U.S. dollar, or 73.66 U.S. cents, after touching its weakest intraday level since Sept. 19 at 1.3591. For the week, the currency was down 0.5%. "There had simply been lots of bad news priced into the USD, increasing the risks that a string of good news will kick-start a sizeable correction, and evidence for that is emerging," said Jayati Bharadwaj, a global FX strategist at TD Securities. The U.S. dollar (.DXY) , opens new tab jumped to a seven-week high against a basket of major currencies after the jobs data led traders to reduce bets that the Federal Reserve will cut interest rates again by 50 basis points at its meeting in November. The Canadian dollar "has been relatively shielded" to the U.S. dollar's move compared to other major currencies due to higher oil prices, Bharadwaj said. The price of oil, one of Canada's major exports, extended its sharp gains this week as investors feared a wider Middle East conflict could disrupt crude flows. U.S. crude futures were up 1.5% at $74.80 a barrel. Canadian economic activity rebounded in September after contracting in the prior month, Ivey Purchasing Managers Index data showed. The seasonally adjusted index rose to 53.1 from 48.2 in August. Canadian bond yields rose, tracking moves in U.S. Treasuries, and the curve moved back into a state of inversion after a two-week period of normalization. The 2-year climbed 14.3 basis points to 3.204%, its highest level since Sept. 4, while it moved above the 10-year, which was trading 9.1 basis points higher at 3.187%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-extends-weekly-decline-after-us-jobs-data-2024-10-04/

2024-10-04 16:08

Friday data shows strong US labor market growth S&P 500's P/E ratio of 21.5 times, well above historic average Q3 earnings expected to have climbed 4.7%, per UBS NEW YORK, Oct 4 (Reuters) - A high-stakes corporate earnings season kicks into gear next week, with bullish investors hoping results will justify increasingly rich valuations in a U.S. stock market near record highs. The case for strong U.S. economic growth got a boost on Friday, after labor market data came in far above expectations. The S&P 500 is up 20% year-to-date and stands near record highs despite recent tumult spurred by rising geopolitical tensions in the Middle East. A key test for the rally will arrive as corporate results begin rolling in next week. Companies need to post healthy profit growth and strong outlooks for next year to sustain valuations that have crept up in recent months: At 21.5 times future 12-month earnings estimates, the S&P 500 is trading near its highest level in three years and is well above its long-term average of 15.7, according to LSEG Datastream. "One of the few rationales that the bulls can make for these lofty (valuation) multiples is that earnings growth keeps coming in at high levels," said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. "With prices having run up, you really do need that earnings growth to come in probably at much better than expected levels." S&P 500 earnings are expected to have climbed 4.7% in the third quarter from a year earlier, UBS equity strategists said in a report on Wednesday. However, earnings likely grew 8.5% when factoring in the historical rate of positive earnings surprises, the UBS strategists said. Such profit beats may be needed to fuel more gains in stocks. Since 2010, the S&P 500's total return has closely tracked the increase in company earnings and dividends, according to Jack Ablin, chief investment officer at Cresset Capital. But the index has run ahead since early 2023, and is now about 18% above expected levels, based on current earnings and dividends, Ablin found. "The market's a little bit over its skis here," Ablin said. "It's certainly anticipating some pretty strong earnings and dividend growth." Data on U.S. consumer prices due next week will give investors another snapshot of the economy. A stronger than expected number, on the heels of Friday's jobs data, could further curtail expectations for how much the Federal Reserve is expected to cut rates in coming months. Futures tied to the fed funds rate on Friday showed pricing of a 50 basis point cut at the Fed's November meeting falling to 5%, from over 30% on Thursday, according to CME FedWatch. BANKS IN SPOTLIGHT Major financial firms highlight next week's earnings reports, with JP Morgan Chase (JPM.N) , opens new tab, Wells Fargo (WFC.N) , opens new tab and BlackRock (BLK.N) , opens new tab due on Oct 11. Bank results offer an important view into the economy, including the state of delinquencies and loan demand, said Bryant VanCronkhite, senior portfolio manager at Allspring Global Investments. More broadly, VanCronkhite will be looking for signs that the Fed's initial 50-basis point cut - delivered at its monetary policy meeting last month - is already having an effect on the economy through such channels as rising auto sales and other big ticket purchases. Ideally, such activity will be sustained even if expectations for further rate cuts fall further following Friday's strong jobs report. Following the first rate cut, companies ideally will show leading demand indicators are strengthening, VanCronkhite said. "That would probably give me confidence that we're heading more towards that soft landing," he said. Sign up here. https://www.reuters.com/markets/us/wall-st-week-ahead-investors-look-earnings-support-record-high-stock-prices-2024-10-04/

2024-10-04 15:52

JOHANNESBURG, Oct 4 (Reuters) - The South African rand edged higher against the dollar despite a strong U.S. jobs report on Friday, after a difficult week for risk sensitive currencies as tensions escalated in the Middle East. By 1512 GMT, the rand traded about 0.3% firmer at 17.465 against the dollar. Since the start of the week, the local unit is down about 2%. The dollar jumped to a seven-week high after data showed that U.S. employers added more jobs than expected in September, leading traders to pare bets of an outsized interest rate cut by the Federal Reserve in November. The greenback was also supported by demand for safe-haven assets after an Iranian missile attack on Israel on Tuesday left investors assessing widening Middle East tensions and the impact on the global economy. Investors prefer a stable investment like the dollar during periods of crisis as opposed to risk-sensitive currencies such as the rand. Despite the setback this week, the local unit has gained more than 4% against the greenback over the last three months, thanks to a boost in investor sentiment based on improved electricity supply and the formation of a coalition government. On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI) , opens new tab closed 0.15% lower. South Africa's benchmark 2030 government bond was softer, with the yield up 5 basis points to 9.205%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-edges-higher-against-dollar-after-difficult-week-2024-10-04/

2024-10-04 15:36

Oct 4 (Reuters) - A surge in U.S. job growth has financial markets betting the Federal Reserve will follow last month's half-point interest rate reduction with smaller moves, and ignited a debate over whether the policy rate ends up at a higher level than previously expected. A Labor Department report on Friday showed employers added 254,000 jobs in September, far more than expected, and the unemployment rate declined to 4.1%. Within minutes, traders of futures that settle to the Fed's policy rate had all but abandoned bets on another upsized interest rate reduction before the end of this year, and moved to price in quarter-point reductions instead. They are also pricing in an end point to the rate-cutting at somewhere between 3.25% and 3.75% by the middle of next year, above the 3.00% to 3.25% end-point range that traders had previously seen likely. The current range is 4.75% to 5.00%. Chicago Fed President Austan Goolsbee, in back-to-back appearances on Bloomberg TV and Yahoo! Finance shortly after the jobs report, called it "superb" and said that more such strong labor market data would give him added confidence that the U.S. is at the Fed's goal of full employment and not headed for a crash. Even so, he said, Fed policymakers will likely need to cut rates by "a lot" over the next 12 to 18 months to make sure the labor market stays strong and inflation continues to come in around the Fed's 2% target, as it has in recent months. Most Fed policymakers currently see the policy rate settling out somewhere between 2.5% and 3.5%, he said, referring to projections published last month which show a median expectation of 2.9% but a range of forecasts around that. "You have both time and runway to figure out where the settling point is," Goolsbee said. If jobs numbers continue to improve along with GDP, he said, that could mean a continuation of what has been recent rapid growth in productivity. That in turn would point to a higher end point for the Fed policy rate, and would be a "glorious" outcome because it would signal a stronger economy overall, Goolsbee said. EXPECTATIONS Analysts largely took the jobs report much as Goolsbee did: reason for optimism about economic growth, but without changing the need for further, albeit gradual, rate cuts ahead. Friday's jobs report "is a potential game changer for the Fed and market expectations on the size and pace of future rate cuts," BMO economists wrote. "It also is a big upside risk to our consumer spending and GDP growth forecasts in the near-term." Expectations could still change before the Fed's Nov. 6-7 policy meeting, which will come after fresh data on inflation and another monthly jobs report. The Fed's policy-setting Federal Open Market Committee has said it wants to recalibrate the policy rate as inflation drops closer to its 2% goal and the labor market cools. Recent data showing job market cooling "had threatened to turn into something more worrisome, but after today’s report the soft landing looks back on track," JP Morgan economist Michael Feroli wrote. "We think it would take a rather large October (or early November) surprise to move the Committee off this path of gradual rate normalization." Sign up here. https://www.reuters.com/markets/rates-bonds/fed-seen-slowing-rate-cut-pace-after-strong-us-jobs-data-2024-10-04/

2024-10-04 14:51

Oct 4 (Reuters) - Chicago Federal Reserve President Austan Goolsbee on Friday called the latest U.S. jobs report "superb" and said more labor market data along those lines would boost his confidence the economy is at full employment with low inflation. "You really couldn't ask realistically for a better report for the economy, coupled with finding out that the (East Coast and Gulf Coast) port strike is not going to be an extended matter ... those are two pieces of very good news for the economy," Goolsbee told Bloomberg TV shortly after the Labor Department released its employment report for September, which showed a considerably bigger-than-expected gain of 254,000 jobs and a drop in the unemployment rate to 4.1%. "If we get more reports like this I'm going to feel a lot more confident that we are in fact settling in at full employment." Still, Goolsbee said, the job market by a broad set of measures is cooling, and there are even some signs that inflation could undershoot the Fed's 2% target. "There are pieces of strong data and then there are pieces of weakness," he said. With the U.S. central bank's policy rate far above what most policymakers see as the eventual "settling point," Goolsbee said, it is appropriate for the Fed to bring it down "a lot" over the next 12 to 18 months, as most of its policymakers currently expect. Sign up here. https://www.reuters.com/markets/us/feds-goolsbee-says-jobs-report-superb-still-sees-rate-cuts-ahead-2024-10-04/