Florida braces for Irma while Mexico is hit by a massive quake, the euro's advance continues, and U.S. consumers deal with a major cyberattack.
Hurricane Irma
Irma's on track to
wreak havoc on Florida, after tearing through a chain of Caribbean
islands, spurring Miami-Dade County's biggest-ever evacuation effort,
and roiling markets from orange juice and natural gas to insurance and
catastrophe bonds. The Category 4 storm is forecast to hit Florida
directly by Sunday,
threatening $1.2 billion of crops in the third-most populous U.S.
state. Irma may make its second U.S. landfall next week somewhere near
Savannah, Georgia, and Charleston, South Carolina, experts say.
Meanwhile, a huge earthquake off
Mexico's southern coast killed at least five people on Friday, the
biggest in a century to hit the country, according to President Enrique
Pena Nieto.
Euro advance
Mario
Draghi's euro headache is intensifying after the single currency
extended its march to $1.2059 in early trading, the highest since Jan.
2015. The European Central Bank's decision to softball concerns
posed by the euro's breakneck appreciation, even as the bank trims
inflation forecasts, gave currency bulls more ammunition. The ECB kept
monetary policy unchanged Thursday
and deferred on providing clarity on tweaks to its asset-purchase
scheme until October. Expectations are growing that adjustments next
year will stay within the parameters of the program. Stock investors are making peace with the expensive euro.
Fed leadership
Federal
Reserve Bank of New York President William Dudley restated the case for
interest-rate increases but noted publicly for the first time that
broader forces may be impeding the traditional link
between a tighter labor market and price pressures. Hurricane damage in
Texas, and potentially Florida, could lead to a slight increase in
inflation as the job market for construction workers tightens, he said
in a speech in New York. The White House is considering
more than a half-dozen candidates to be the next head of the central
bank, including economists and business people, according to three
people familiar with the matter. That bucks the market narrative that
the nomination is a two-horse race between presidential economic advisor
Gary Cohn and current Chair Janet Yellen, whose term expires in
February.
Cyberattack
Equifax Inc., one of the three biggest credit-reporting companies, was struck by a cyberattack that
left almost half the U.S. population at risk, making it one of the most
intrusive security breaches in history in both size and scope. Hackers
exploited a website application to access data covering as many as 143
million consumers, including names, addresses, Social Security numbers,
and driver’s license numbers. U.S. Senator Mark Warner said the attack
should trigger more aggressive policies to improve the protection of
consumer data. Three senior executives at the firm sold
shares worth almost $1.8 million in the days after the company
discovered the security breach. The trio had not yet been informed of
the incident, the company said.
Markets
Haven
demand continues to fuel U.S. Treasuries, with benchmark yields
plumbing a fresh 2017 low at 2.0144 percent before stabilizing while the
dollar tumbled to its weakest level since the start of 2015. Gold
headed for a third week of gains ahead of a potential North Korean
missile launch, and the yen rallied 0.7 percent to 107.68 per dollar,
the strongest in 10 months. The Stoxx Europe 600 Index is 0.14 percent lower. S&P futures point to a weak open.