tv Worldwide Exchange CNBC September 14, 2018 5:00am-6:00am EDT
breaking news, hurricane florence about to make landfall on the north carolina coast. we have full team coverage of the storm as "worldwide exchange" begins right now ♪ good morning welcome from wherever in the world that you may be watching i'm brian sullivan, you're looking live over our shoulder here at wilmington, north carolina where hurricane-force winds are picking up winds reportedly as much as 100 miles per hour and over a foot
and a half of rain has fallen in some areas the good news is florence has been downgraded to a category 1, but the threat is far from over asrain and the projected storm surge have hundreds of miles on the coastline on edge. our team is fanned out along the carolina coach we have jackie deangelis, done te contessa brewer also standing by, but let's get the latest on the path >> hurricane florence is a category 1 with wins winds at 9 miles per hour those winds are slamming wilmington that heavy rain has been continuing overnight and once florence moves onshore the eyewall will make landfall but the majority of the storm will stay over the atlantic
helping to fuel it it will remain a category 1 storm upon landfall for at least 24 hours this morning it is still lingering in north carolina and as the day goes on, eventually moving into south carolinamornia category 1 storm eventually it will weaken pov nothi moving into south carolina the concern is the heavy rain and the catastrophic storm surge. we are already seeing that surge pick up. that will continue heading throughout the morning high tide around 11:00 this morning. you add 7 to 11 feet on top of high tide, we're talking about a dangerous situation as the day goes on and hurricane florence approaches north carolina. the greatest concern is between cape hatteras and keep fear. the greater north or south you get, the lower that surge, but all it takes is three feet of
storm surge to be catastrophic we will keep an eye on this threat how much rain are we talking about? we're talking about feet of rain between two and three feet locally even higher than that. not only as we head throughout the day today into the weekend and the start of next week, this storm will stall it will turn and continue to dump rain over the carolinas and eventually further inland heading through next week. that storm surge between 7 and 1 fe11 feet with those winds wind is still a concern but the main threat is flooding heading through the ta todaday today an through the weekend. we'll keep you posted as hurricane florence makes landfall >> these are not the kind of records that anybody wants to see set. thank you very much. let's get a live look at how the storm is playing out on the ground as winds and rain begin to slam the coast. jackie deangelis is on the coast in carolina beach, north carolina
jackie >> good morning. what a difference a few days makes here at the beach. carolina beach right now being pelted with rain, winds at around 90 miles per hour remember, the eyewall of this storm is still 30 miles off the coast of wilmington. these are still considered outer bands. it's not even the heart of the storm just yet i saw some folks moving and walking to the beach grabbing sandbags earlier thinking to myself if you don't have your sandbags by now or you're just realizing how serious this storm is, it is probably on the late side to be making those kinds of preparations right now here on carolina beach i see lights on. we have power. so that's a positive sign, but there's still a lot of people in north carolina that are starting to lose their power. the latest number is almost 300,000. as you know, in these situations when power goes out it makes conditions even more threatening and dangerous.
>> jackie, we understand north of you not everybody heeded the warnings to evacuate that there are more than 100 people in new bern, north carolina waiting to be rescued from the storm surge? >> that's right. it's about 90 miles north of here, but it's on the coast. 150 people are waiting for help right now. fema saying it is on the way remember, those stern warnings all week, if you choose not to evacuate, if you hunker down and stay through the storm we won't help you we won't risk the lives of first responders still people are in trouble and this is typically what happens fema will try to support them as best as possible >> scary there, right where the sound and river meet a lot of water there we'll see you in a few minutes let's move about 80 miles to the south where jackie is and see how things are unfolding in south carolina they are now waiting for this storm to turn towards them
contessa brewer is live in myrtle beach right now >> hi. in the last few minutes we saw our first rainfall coming in from this storm. just a few drops it has let up. we don't expect the full brunt of hurricane florence until later. right now the national weather service predicts that what we'll get is tropical storm-force winds, but they're telling people to be prepared for category 1 or category 2 force winds in case of a change of intensity or track size or the size of the storm in this case the surge has been estimated to be town gradedowngraded so we expect a surge of 4 to 6 feet but rainfall of 16 to 20 inches that could be devastating flooding, though the businesses in this area are largely built up high so that near the beach they would be protected. it's the inland flooding they're most concerned about at this point. also shelters, the state says
they can accommodate 16,000 people the mayor estimates that 60% of her town has heeded evacuation warnings and left, but it leaves a lot of people who may decide today to get into shelters >> we saw that some of the path tracks had turned. the storm surge expectations had been tamped down a bit, so i imagine some people have decided to ride it out this is an extremely busy tourist town have you seen signs of small business that decided to remain open >> yeah. actually when we see it, i have to be honest with you, we're grateful because it's a chance to get a hot meal when we found the pancake house yesterday open until midday they closed down just as the lunch rush was getting started the business owner says we're feeling the economic impact of hurricane florence long before it arrives here's what she told me. >> financially it makes things difficult for everyone not just the business owners,
but all the employees, they're not making a living either so the evacuations definitely hurt the whole myrtle beach, everyone who lives here, it affects us all >> $21 billion comes into the state in the form of tourist dollars. when tourists evacuate it's tough on local business. >> certainly is. contessa, thank you very much. we'll see you in a few minutes business owners up and down the carolina coast are nervously watching the storm and its path. joining us now is shane skipper, director of operations at lm restaurants which has several locations from wrightsville beach to south carolina. is everybody safe and out of harm's way >> everyone is safe. we're in communication with our
employees along the coast. everybody is safe. >> that's the best news of all you have some restaurants inland, but you have blue water right on the coast on wrightsville beach have you heard anything about those buildings? >> we have heard that the buildings are standing and in good shape we have cameras on both of those restaurants that show us what's going on a lot of wind. a lot of rain, our buildings are still standing >> is that how you're primarily getting your information is it from remote cameras or have some people decided to ride it out and you're getting reports from them? >> we're getting reports from local officials that are on the island as part of their job. we have a few police officers who are giving us text updates as well as some wild live officials in the area. what are they telling you about the expectations >> prepare for the worst
there's going to be serious flooding the wind is not coming in as hard as expected, but we are monitoring the tidal flows, some of the flooding that should be taking place as a result of this storm surge. >> in general, business plays an important role in any kind of hurricane recovery and relief efforts, especially restaurants. you heard contessa talk about it, sometimes it's as simple as getting a plate of hot food and having a place to congregate in that way restaurants serve that purpose what is your reopening plan i know it's early. i get it, you're still riding through it will you guys serve as a base of operations for the region once florence does pass >> that is our goal. right now we're looking at trying to get down there saturday or sunday, depending on how the storm moves. assess the damage then assess which locations can get open right away to serve the community. and the first responders
we'll then go from there as we get each location open, we will. >> do us a favor, if you get a free minute or so, let us know how you're doing how your employees and families are doing once this storm passes wro rooting for everybody down there. >> thank you much more still ahead on this busy friday if you are headed to the airport anywhere in america, we have the latest on the number of flight cancellations in the area. plus how more businesses are bracing for the impact as we head out a live look at wilmington, north carolina you can see florence just about ready to make landfall outside of winlmington of winlmington the latest coming up to examine investment opportunities firsthand. like e-commerce spurring cardboard demand. the pursuit of allergy-free peanuts. and mobile payment reaching new markets.
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welcome brac welcome back. you're looking at carolina beach, north carolina. the sun just about to come up. that shot should improve, the wind, rains and storm surge beginning to come into focus if you wondered how much storms impact shipping and commerce behind us on the screen may be a perfect way to visualize it. this is a live look of the satellite positioning of all the ships in the carolinas you can see this is the virginia/north carolina border here south carolina is here
to this side here shg, charlest south carolina wilmington is here i want you to focus on this giant hole this is where hurricane florence is centered now. you can see all the ship traffic, green are freighters. generally tankers. those are the big ships. they have all but left the entire region where hurricane florence may be. you have a port here in moorehead city, north carolina you have the poor of charleston and savannah those ships will stay there, in particular up in virginia, those ships are in condition zulu. as we talked about yesterday, if you're in port, for the most part the navy left, but a lot of ships are able to stay in virginia the ships outside of this channel going to the chesapeake, they'll stay there no shipping traffic in and out of the bay if you're out, you'll stay out
if you're in, you'll largely stay in. what's dramatic is the fact that there is nothing in the way of shipping traffic going on inside this massive storm as you heard, we're talking about from charleston all the way to norfolk, virginia, the entire region of the atlantic ocean is empty we are also keeping an eye on flight cancellations. if you are flying today, we will keep updating our home page with cancellations. just over 400 flights to and from that have been canceled it's not just flights that are going to be in the storm's path. a lot of planes need to go from here to there. no matter where you are up and don't east coast, mid-atlantic, southeast, you might want to keep refreshing your airline's remember page, refresh the app, find out where your plane always is it is not just airlines. all business and shipping up and down the east coast bracing for
hurricane florence these companies have more than 25% of their operations based directly in the storm's path companies like advanced auto parts, cracker barrel, tractor supply, ruby tuesday and others. joining us is evan gould from planalytics. it was interesting to hear from lm restaurants they are a family-owned restaurant but companies that have 1,000 locations have to make that decision how do they know how long they can expect to stay closed? is there a way to gauge that >> there is. some of these companies have been doing this for a number of years. they're good at having a nimble supply chain to make sure they know what to get in to the stores before they close, and equally as important how to stage their supply chain so that they can replenish after the
storm is there >> seema mody will be at a home depot today. the massive corporations have the resources to conduct storm centers. they can build a war room. you wh what about the smaller and mid-sized companies? they don't have that opportunity. where do they get their information and data >> for a large part it's about how well you communicate every business regardless of where you are, you need some type of disaster plan, some type of emergency preparedness plan for all different kinds of situations every business has it to some extent those on the east coast look to have a better perspective on how to deal with this. >> the supply chain is also measured by the strength of its weakest link wherever that may be, one thing along that line that goes wrong or badly, and you can't reopen where are the weakest links in
the supply chain is it just simply getting men and women truckers to get back on the road? >> right some of it is that some of it is just how quickly can you get back in? if the roads are not open, you can't get product there. a lot of retailers are also relying on suppliers and moving that challenge upstream so that they can rely on them to help them get things to the communities. >> especially with the restaurants. we showed ruby tuesday, one quarter of its operations. cracker barrel, about a quarter of its operations in and around the storm area these are perishable items >> these are also sales those businesses will not get back we estimate the impact of the storm from 700 million to $1 billion or maybe more. you know, ruby tuesday's, if you don't go in today to buy lunch and you go back -- >> if you need a shovel, you will get that shovel whether it's today or tomorrow
you won't go back in time for the meal that $1 billion number, that's not -- you're not looking at insured losses those numbers are much higher. >> much larger >> we don't know where florence will come in, but your $1 billion is an early estimate of sales that will not come back. >> that's right. economic activity that does not happen >> is there a way to gauge the economic activity that does happen that wouldn't happen but for the storm? does that make sense things that you buy? look at the video. people going out and buying 2x4s, sheets of plywood, that they would not have bought but for the storm. >> yeah. you'll see that when companies report earnings. all the home centers, the clubs, they typically in their quarterly earnings will say we saw a lift because of the storm. in every event there are winners and losers home centers, clubs, convenience stores, gas stations
>> we are worried about human life, peoples families, but when you go back after the fact and say let's tally this up, because there are a lot of companies probably watching cnbc, executives are thinking how will this play out, is there a way to gauge how much it balances out the restaurants have to be the hardest hit. >> absolutely they're the hardest hit. that's why our 700 to 1 billion is the net negative. that's after factoring everything else in that economic activity does not come back. right now the focus is on making sure people are safe, operations are in good position so when the storm passes they can be there for the communities and customers. >> we'll let you go back to doing that at plananalytics. it will be a big day thank you very much. still to come, the latest on the path of hurricane florence it's been downgraded but the threat remains large. and incredible footage out
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top sail in the direct path of florence mandatory evacuations have been ordered for the town that's why strong wind and strong rain. despite the fact that the storm has been downgraded to a 1, the storm surge, the wind, the rain are still very, very serious we'll keep an eye on hurricane florence all day long. there are other things going on in the world of business jeff bezos is making a rare speaking appearance last night in washington, d.c he talked about everything from regulation to amazon's second headquarters to the company's incredible stock run >> at almost every all-hands meeting i say when the stock is up 30% in a month, don't feel 30% smarter because when the stock is down 30% in a month, it's not going to feel so good to feel 30% dumber never spend time thinking about the daily stock price.
i don't. >> bezos also made comments seemingly aimed at president trump, though he did not mention him by name. here's what he said about elected officials. >> i don't feel the need to defend amazon, but i do -- i will say this, it is a mistake for any elected official in my opinion -- i don't think this is a very out there opinion -- to attack media and journalists i believe that it is an essential component of our democracy. there has never been an elected official who liked their headlines -- i think there's probably no public figure who has ever liked their headlines >> bezos also said they would announce where the second headquarters would be by the end of this year still to come, back to florence we'll have reporters fanned out across the carolina coast. the latest on the storm, its
welcome back thank you for being with us. we're thinking about everybody up and down the eastern seaboard of the united states hurricane florence downgraded to a category 1, but do not get complacent this is still a serious and dangerous storm. the hurricane is now beginning to make landfall at this hour. it is packing winds around 100 miles per hour towns up and down the carolina coast are bracing for this landfall and the expected storm surge. full team of reporters covering the hurricane. kaitlyn mcgrath on set covering the path contessa brewer is live on the ground in north carolina, but first jackie deangelis in carolina beach, north carolina with what he's heshe's hearing feeling. >> i'm feeling the velocity of this wind pelting the rain around
you can feel it on your body and it almost hurts. feels like hail. the winds are picking up the rain is coming down harder than it was even last night when the outer bands had just started making their approach here so, the latest that we know is that the eye of the storm is about 30 miles away, maybe a bit less than that this was called the bullseye of the storm. it looks like the weather models were pretty accurate with respect to that. right now you have almost 300,000 people reported across north carolina without power but the concern is that you will see millions, maybe up to 3 million without power. the problem there is not just the lack of electricity or the difficulty in taking care of people and hospitals, people who really need power, but when the lines start coming down in the streets, for example, and the flooding and the waters start to rise, you see and have potentially life threatening situations
that's something to be very, very cognizant of. about an hour ago i saw people walking to the beach still collecting sandbags. so the people here are still making those last-minute preparations it feels really late at this point for that type of thing to be happening >> i know almost everybody but the media and law enforcement has left what is your situation down there? are you making sure you are safe >> of course safety is our first priority as you mentioned a lot of the residents here, businesses, everybody is gone besides the people who have chosen to hunker down there's a lot of media in this area that have weathered stormed before, taking precautions but when the lights good out, and eventually they probably will, things start to get more difficult. hopefully we use those skills we have accumulated over time to be safe and sound >> you are unfortunately getting
to be a professional at this >> it's a business risk. >> we are thinking about you and the team down there. be well. thank you. >> thank you >> we are seeing how things are unfolding in south carolina where they are just getting the beginning feeling of this. contessa brewer has more it's coming your way next. >> right right now we're still south of those outer rain bands maybe by a couple hours. we just had a few rain drops, a little bit breezy out here the maximum wind gust in this area of myrtle beach has been 45 miles per hour what we're expecting is tropical storm-force wind, but the real concern in this area is the storm surge as much as 9 feet of storm surge. and then there's the risk of flooding because of this prolonged rainfall it could be up to 20 inches of rain over 24 hours we don't expect to bear the full
brunt of hurricane florence and what may be tropical storm florence until late tonight or early tomorrow morning it's a big, slow moving storm so the national weather service told people in this county, the grand strand, it's so slow moving we don't want you to think because of the downgrade in category that it is safe to come back. they say the shelters are still open and if people can find a way there, they can get there and they're open to accept people if they feel like they're in danger >> it's not only a huge tourist area, but one of the fastest growing residential areas of the united states. i imagine you've been there a couple days, you have seen construction there before. i wonder if they'll have the resources, materials and manpower to rebuild if they need to given that so much has been committed to the massive amount of growth that area has seen >> yesterday we visited a house,
brand-new construction, probably 80%, 90% completed, built up to the most modern hurricane codes. the house was four stories high. 20 feet above sea level. right next door to it, an older home where the living quarters are down on the ground i want to check after the storm passes and see how those two houses fared next to each other. certainly the modern construction out here with hurricane glass, they have not even taken the precaution of boarding up windows because everything is hurricane rated. >> we'll see you all day long. thank you. as hurricane florence now hits the carolina coast, the storm surge is expected to meet or even break records. while it may sound self-explanatory, there's more to a storm surge than you might think. here's greg postel with more
>> storm surge is usually the deadliest part of a hurricane. starting with a 1 to 3 foot water rise on dry ground this may not sound like much, but this is flowing water being pushed by the wind 1 to 3 foot of storm surge can knock you off your feet, stall cars and even carry cars away. let's go above that. let's go to 3 to 6 feet. very large objects can be carried in this kind of flowing water. they can act as battering rams and enhance the damage let's go even above that 9 feet of storm surge, this kind of storm surge is not survivable unless you move to the higher floors of whatever structure you happen to be in. please follow the advice of the local officials and evacuate as ordered when a hurricane moves in >> incredible and terrifying animation there from the weather
channel. let's bring back in kaitlyn mcgrath. that's a situation that nobody wants to see i think what they did there was put it well in order you think you'll be okay the water is not that high the other thing is the quickness the water rises. >> the big concern is with florence's slow motion we will see high tide cycles where they add on to that. that will be a major concern heading through the day today. that first high tide after 11:00 for much of the carolinas. and there's a lot of rivers in north carolina where we expect that maximum storm surge, will you have the water rushing down from the rivers and then the storm surge moving inland. on radar you can see that eyewall moving into wilmington we expect landfall as we head through the early morning hours. once the center of the storm
moves onshore the majority of florence will remain over water. that will help to fuel it. it will remain a category 1 moving slowly to the south right now it's moving at 5 miles per hour it is going to slow down as we head throughout the day, moving about 80 miles in 24 hours we're talking about catastrophic rain and storm surge the hurricane warning continues for much of north carolina and the northern part of south carolina where that hurricane warning is in effect, a storm surge warning also in effect >> people hear words like downgraded, category 1 okay, it's been downgraded, category 1, it's not that serious. the storm surge can fall outside that categorization. that area is chock full of tributaries, peninsulas, rivers. >> the storm surge has nothing to do with the category. it's based off of wind speed it's good news in that we will have slower winds, still talking
about maximum sustained winds of 90 to 100 miles per hour, but the storm surge nothing to do with that at all you get that onshore wind and you get that storm surge, it could be a life threatening situation. >> kaitlyn mcgrath, thank you very much. let's talk about the money impact of hurricane florence by some estimates it could be one of if not the most expensive storm of all time. lindsay bell is from cfra research going back to our animation, what we just learned, the estimates have been so high because of the storm surge and the fact that there is so much valuable real estate now in this area and inland. >> absolutely. 758,000 homes will be in the way of this storm surge. flooding will be a huge problem. this will have a huge economic impact if you think about your standard homeownership policy, that doesn't cover flooding
even since last year and harvey, irma and maria, the insurance companies have gotten smarter and tighter with their pricing, so now you have a hurricane deductible of 1% to 5% say you have a house that's insured at $600,000, and you have a 2% hurricane deductible, you have to pay $12,000 out of your pocket. >> which many people do not have >> right >> that's going to be the economic remnant of this storm how the insurance market has evolved and how the insurance market necessarily has not benefited many consumers we are already seeing reports of how many people are underinsured or uninsured against this kind of damage. >> exactly that's why there's estimates out there, core logic is saying that the impact will be over 170 billion. that's more than katrina in 2005 it's because of this flooding.
the insurers that have the most exposure to this area are state farm, usaa and nationwide. they have about 40% of the market so those will be some of the companies to watch here. >> we just had video of the storm surge, it was eye opening. we talked about it there's nothing more dangerous than water the priceyness of the real estate all the way from where contessa brewer is in myrtle beach, this is some of the most expensive. where viewers may live or have secondary residencies, multimillion dollar homes, then you go inland. do we have any idea how long it will be before we really know the economic extent of this? >> i think it will take a while. if you look back last august and september, harvey and irma, they hit texas and louisiana. the impact there, the commerce department didn't come up with an actual estimate for the third quarter to really say how that
impacted gdp but there's been estimates out there that it could be from a quarter percentage point to about 3 quarters of a percentage point. >> i was in galveston and houston during harvey last year. that techs rexas region, louisi region, i don't want to say they're used to flooding, but two days later the water was gone nine feet two days earlier this area is not like that >> that area in texas, that has huge exposure to the energy sector whereas the carolinas is tourism, it's consumers. people will miss out on pay, jobs they won't go to work. worker productivity will go down >> the restaurants, the hotels, they're not getting that business back. we were there, the refineries -- luckily there's not as much
economic as far as the refineries go, that's what made harvey so scary from the energy side of the story, but there's a giant nuclear power plant about four miles inland. we have to watch that. estimates are 170 billion? very early >> very early. >> would make it the costliest storm in american history. much more on hurricane florence straight ahead. the eyewall making landfall right now on the carolina coast. and businesses up and down the seaboard are bracing for this big hit. as we go to break, here's a look at myrtle beach, south carolina. the storm expected to turn south and head towards south carolina in the next 24 hours we're back with more after this. making my dreams a reality
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welcome back that's a live look at a car in wilmington, north carolina you can see the conditions there. this person, hopefully it's law enforcement in a heavy, very high, very secure suv. but look at the water levels already on the roads that is only going to go up. kat those numbers will go up let's check the markets around the world. futures may be taking a back seat as they should to hurricane florence the markets have been doing extremely well the last couple of days and weeks. dow futures up 40 points again this is the market that will not
stop the nasdaq and s&p doing fine as well european markets are muted seeing some gains across the board. the asian markets have been the story. the nikkei 225 having a nice run. the nikkei powering higher let's stay right now with all things asia. some of the biggest names in business taking stage at the annual singapore summit. amanda drury is there and joins us now with more fantastic to see you hope you are well across the world. number two, i have to imagine the three ts are all the rage, trump, tariffs and trade >> you're right. and trump turning away from asia how that's a gift to president xi of china. that's a huge topic of discussion here at singapore summit it's really interesting. we've been talking with our guests about the ongoing china trade spat and what it means for
everybody's companies. we were speaking with one really interesting guest earlier on, robert kaplan, i saw him walk past a minute ago if he's listening, he was famously the one who wrote the cover story in 1997 "is democracy just a moment?" he was saying with president trump pivoting away from asia, it's basically providing an opening for president xi of china. think about it here. you have got, for example, the president of the united states pulling out of those big powwows asean and apec in november so president xi can swoop in like the most capitalist communist out there. the big guy. the big guy on the stage i will be the one who is championing free markets here. i will be your imf star back stop to countries in our region that have had currency crises.
he can have the spotlight and china ha hs economic, political and military ambitions here, if the u.s. is not here, china has free rein here >> there's a couple of different questions i have about the region you have some conflicting forces there. you have the china pride they are an important player in the world stage, president xi has his pride. but you have a chinese market which is down 25% to 30% this year it is feeling the effects. also talk to us about the ripple effects. you live now back in sydney, australia. the australian market is not immune to any kind of contagion that may come from the chinese economy. >> absolutely. as you know well, everything that we dig out of the ground in australia gets gobbled up by the chinese. we're very much linked to what is happening in the chinese economy. you're right china is not the only emerging market which has taken it on the
chin this year a lot of it is sentiment, too, because of the ongoing trade spat a lot of it is optics, sentiment and fear as opposed to real manifestation. it is starting to bite here. china is walking a fine line they don't want to back down in this tit-for-tat thing with the united states over trade they also have to make sure they don't go under because they have an economy slowing, and they have a large population which also needs to keep fairly full employment to keep a stable political regime there so it's a very fine line the c word, contagion, is starting to pop up when you talk about emerging markets and the ripple effects around the world >> we'll look for you to keep us informed and up to date on what's happening there we'll call on you from sydney, australia. you know that, we'll do that that's what we do. >> absolutely. you wrench me out of my house in the middle of the night so that
it suits your time and i will come on down and talk to you about anything you want to talk about. markets, i don't know, formula one. that might be of interest to you. we have a big formula one weekend here >> i knew you would mention that to poke me in the eye because you know i wanted to be there. great to see you the hurricane effect huge numbers in what could be one of if not the costliest storm in american history. as we head out, another look at wrightsville beach, north carolina this is the center of it all landfall being made. the sunoerton whe be seen we're back after this.
rain as hurricane florence makes landfall, here's a look at some of the costliest hurricanes in american history these are the total damage numbers in inflation adjusted dollars. all of these are in today's dollars. katrina, you measure that in lives. it was the a storm unlike we've ever seen and hopefully will ever see again from a pure dollar perspective, 160 billion, harvey, 125 maria, sandy and irma. let's bring in ellen zander. these are the days you hate. you hate it because a lot of people down there willgo through a bunch of stuff you don't want anybody to go through. you will hear stories of heroism, fate in the next couple of days because the storm surge is up. there will be an economic coast to this story. we heard estimates it could be the most expensive storm in american history because the value of the real estate that's in the path of the storm any way to measure anything in
terms of the macro impact on gdp or some numbers that we'll see in the next couple of weeks and months that do tend to move the market >> yeah. definitely it does feel odd. here we sit in our safe realm in new york >> warm, comfortable and dry and trying to figure out how this will move the data. >> i don't like it >> but it is part of our job, we have to do it. the estimates of harvey last year originally were 30 billion to 40 billion. look at final estimate, 125 billion. >> do we know why it went up so much >> for harvey, it was a huge water event, though as you said the water receded quickly. there were more than 500,000 motor vehicles that had to be replaced those get replaced pretty much immediately after the storm leaves that starts to impact the data right away by lifting gdp from all of those motor vehicles that have to be repurchased
>> do we write off all the data we'll see the next couple of weeks before this? >> markets tend to while the commerce department doesn't always just say, okay, here's how much it impacted gdp, each data release that comes out usually there will be an estimate within there of x percent of this was caused by replacement rates for the hurricane which lifts gdp or lost business which depresses gdp. >> in your estimate of that, have you made one yet? >> no, we don't have a concrete estimate yet of the hurricane's possible effect. look at guidance that we got on harvey, it was three times or four times that amount what we do know is that what markets will react to is that we have short memory. so after harvey, we all forgot the hurricane had come through, and fourth quarter data was massive last year. it was all hurricane related, and we tend to forget that >> it's hard to have the
conversation, but we have to we'll see you again. thank you for your insight >> thank you for wchg.atin "squawk box" will pick up the coverage next. take care. be safe. be well. ith watson. ith watson. i detect frictional loss on the midspan. it can detect the tiniest defects from just a few images to help production stay on time and on budget. i optimized the fiberglass finish to reduce frictional loss and maximize airflow. i was also part of the maximizing. for ai that can do more with your data, choose watson. hello. the best ai for the job.
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. breaking news. hurricane florence battering the carolina coast you're looking live at wilmington, north carolina rain there, definitely, some wind full team coverage of the storm from carolina beach all the way to atlanta we'll get you up to speed on power outages, flight disruptions. > it is friday, september 14, 2018 "squawk box" begins right now. ♪ live from new york where
business never sleeps, this is "squawk box." good morning welcome to "squawk box." we are live from the nasdaq market site in times square. i'm becky quick with joe kernen, andrew ross sorkin is with us live from washington good morning >> good morning to you we have a big show ahead i spent some time with elizabeth warren which we will talk about and show you in a bit. of course we have a lot bigger news coming up >> we do we are looking forward to that interview. we also have everything happening with the hurricane first let's take a quick check on what's happening in the markets. right now it looks like there are green arrows across the board. dow futures up by 34 points. dow was up by almost 150 points yesterday. nasdaq up about 24 points. and s&p up by