Economic Calendar

Wednesday, August 20, 2008

Tropical Storm Crosses Florida; May Become Hurricane

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By Brian K. Sullivan and Aaron Sheldrick

Aug. 20 (Bloomberg) -- Tropical Storm Fay may strengthen into a hurricane when it moves over the Atlantic Ocean, after crossing southern Florida, where it left at least four people injured, cut power to thousands of homes and flooded streets.

Fay's eye was over the east coast of Florida about 15 miles (25 kilometers) south-southeast of Melbourne at 2 a.m. local time today, the National Hurricane Center said in its latest advisory. Winds slowed to 50 miles per hour from 65 mph earlier and the storm was moving north-northeast at 7 mph.

A hurricane watch remains in place for coast areas from Flagler Beach, Florida, to Altamaha Sound in Georgia. Fay is forecast to strengthen again as it passes over the warm Gulf Stream waters of the Atlantic, the hurricane center said.

A man who was kite surfing was critically injured when he was slammed against a building in Fort Lauderdale, am540 WFLA radio reported on its Web site. Two people were injured in Brevard County in a tornado sparked by Fay, the station said. More than 50 homes were damaged or destroyed, it said.

About 95,000 homes lost power in Naples in southwestern Florida where Fay came ashore, the radio station said. The storm flooded streets and knocked down trees in the town, it said.

About 93,000 homes statewide were without power at 11 a.m. yesterday, according to a Florida Power & Light Co. statement. The company is working with out-of-state personnel to restore service, it said.

Seriously Injured

A man was seriously injured by flying debris in Marathon Key, Florida, while preparing for the storm, according to a statement on the Monroe County Web site yesterday.

Fay was forecast to bring as much as 15 inches (38 centimeters) of rain to parts of Florida. A storm surge of as much as 3 feet above normal high tide is possible, the hurricane center said.

The center warned of flash floods for areas in east central Florida. A tropical storm warning was in effect along parts of Florida's east coast as well as Lake Okeechobee.

Dan Kottlowski, senior meteorologist at private forecaster AccuWeather Inc. in State College, Pennsylvania, said there is ``a good chance'' it will become a hurricane.

``There is very warm water in the Gulf Stream current off the coast,'' he said. ``If it can get over that, some computer information says it could strengthen to at least a Category 1 hurricane.''

Kottlowski said models show the storm heading over the ocean then turning toward the west and making landfall in Georgia on Aug. 21 or 22. Storms become hurricanes once maximum sustained winds reach 74 mph.

Gulf of Mexico

Some models show the storm re-emerging in the Gulf of Mexico, said Brian Wimer, a meteorologist for AccuWeather.

If Fay enters the Gulf, it may make landfall between New Orleans and the Florida panhandle on Aug. 23, Jeff Masters, director of meteorology at private forecaster Weather Underground Inc., said on his blog.

The storm killed more than a dozen people in the Caribbean, including several in Haiti, the Associated Press reported. It killed five people in the Dominican Republic, the country's Emergency Operations Center said on its Web site.

Orange juice prices fell, after yesterday touching the highest this month as the storm approached. Florida is the world's second-largest orange grower.

Orange juice futures for November delivery fell 3.8 percent to $1.0455 a pound on ICE Futures U.S., the former New York Board of Trade.

The state was investigating about 40 complaints about retailers selling gasoline, batteries, water and other emergency supplies at inflated prices, said Sandi Copes, a spokeswoman for Florida's attorney-general.

The National Aeronautics and Space Administration closed its Kennedy Space Center in Cape Canaveral, Florida, for the day because of the storm, the space agency said in a statement.

To contact the reporters on this story: Brian K. Sullivan in Boston at bsullivan10@bloomberg.net; Aaron Sheldrick in Tokyo at asheldrick@bloomberg.net.




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