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Explainer-What to know about Tropical Storm Beryl as it heads toward Texas

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By Sarah Morland

(Reuters) -Powerful Hurricane Beryl was the 2024 Atlantic season’s first hurricane and the earliest storm on record to reach the strongest possible ranking of Category 5, before weakening to a tropical storm as it barrelled toward Texas on Sunday.

The storm, which is responsible for at least 11 deaths as it swept through the Caribbean, could strengthen back to a Category 1 hurricane, and possibly a stronger Category 2, according to the National Hurricane Center. It is expected to make landfall on the Texas coast between Corpus Christi and Galveston early Monday, according to LSEG data.

Record-breaking sea temperatures that allow tropical storms to get stronger faster, driven by human-caused climate change and cyclical weather patterns, are fueling what scientists say is shaping up to be a very dangerous hurricane season.

WHAT IS CATEGORY 5?

A Category 5 is the strongest hurricane on the Saffir-Simpson Scale, bringing winds of 157 mph (252 kph) or higher, capable of causing catastrophic damage including the destruction of homes and infrastructure.

Since 1960, only 30 Atlantic hurricanes have reached Category 5, with 2005 – the year deadly Hurricane Katrina devastated New Orleans – setting the record for the most recorded in a single season, at four. 

WHY IS BERYL SO EARLY?

Hurricane Beryl is the earliest Category 5 hurricane on record in the Atlantic, according to the United Nations’ World Meteorological Organization. 

Anne-Claire Fontaine, a scientific officer for the agency, said a reason Beryl had developed so early in the season was because the “hurricane alley” is hitting its warmest ever temperatures.

Scientists say a streak of record temperatures in the North Atlantic since early last year would be extremely unlikely without climate change, driven by man-made fossil fuel emissions. 

Higher water temperatures allow storms to intensify quicker, and ocean temperatures of at least 26.5 degrees Celsius (79.7 degrees Fahrenheit) are needed to maintain a tropical cyclone. According to NOAA, north Caribbean coastal water temperatures are hovering around 29.4 C (85 F).

WHERE IS BERYL GOING?

Beryl is currently forecast to makes landfall on the middle Texas coast between Corpus Christi and Galveston early Monday, according to LSEG data. The storm would then turn northeastward and move farther inland over eastern Texas and Arkansas late Monday and Tuesday, NHC said.

The Texas Gulf Coast is expected to get 5 to 10 inches (13 to 25 cm) of rain, with up to 15 inches in some areas beginning Sunday through Monday night, NHC said. Storm surge could reach 4 to 6 feet (1.2 to 1.8 meters) in Mesquite Bay and Matagorda Bay.

Hurricanes typically weaken as they move over land. 

HOW DANGEROUS IS BERYL? 

Beryl is the strongest storm to hit the south-eastern Caribbean in 20 years, when 2004’s Ivan smashed into Grenada as a Category 3, damaging most of its buildings, wreaked havoc over Jamaica as a Category 4 and strengthened to Category 5 over western Cuba. 

Ivan weakened before hitting the United States but spawned over a hundred tornadoes. It killed around 90 people and left more than $20 billion in damages.

On Monday, Beryl made landfall on small islands in the eastern Caribbean, smashing fishing boats in Barbados, knocking out drinking water in St. Lucia, downing power lines and reportedly killing two people in Grenada and St Vincent.

It is blamed for at least 11 deaths in the Caribbean.

WHAT HELP IS ON THE TABLE?

As the Caribbean prepares to bear the brunt of a highly destructive hurricane season, regional leaders have pushed for better financing options so governments can invest more in protecting their populations from worsening climate change.

Highly indebted and tourism-dependent Caribbean states have long called on wealthy nations and top global polluters to do more to honor their pledges to meet emissions goals, provide climate adaption funds and consider debt relief.

However, a Reuters investigation found that billions in funds sent to help developing nations battle climate change have been funneled back to rich nations.

WHAT IS A HURRICANE SEASON?

Hurricane seasons are annual periods during which tropical storms are most likely to form, fueled by strong ocean breezes, warm seas and humidity. In the Atlantic Ocean this typically lasts from June through November, peaking in the late summer. 

© Reuters. Hurricane Beryl approaches Jamaica in a composite satellite image over the Caribbean Sea July 3, 2024.     NOAA/Handout via REUTERS

The Atlantic is also home to the so-called Hurricane Alley, or Main Development Region, a stretch of warmer water spanning from West Africa to much of the Caribbean, Central America, Mexico and the southern United States.

On average, a hurricane season produces 14 named storms (winds of at least 39 mph or 63 kph), of which seven become hurricanes (winds over 74 mph or 119 kph) and three become “major,” with wind speeds over 111 mph (178 kph). But as ocean temperatures break new records, the U.S. National Oceanic and Atmospheric Administration has warned of an “extraordinary” 2024 Atlantic season and forecast 17 to 25 named tropical storms, eight to 13 hurricanes and between four and seven major hurricanes.

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Adidas seals turnaround year with strong fourth-quarter sales

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LONDON (Reuters) -Adidas reported what it said were better than expected preliminary fourth-quarter results on Tuesday, with strong sales and profitability for the important holiday shopping period, sealing a successful turnaround year.

The German sportswear brand focused in the past year on fuelling a trend for its retro multicoloured, three-striped shoes like the Samba and Gazelle to reboot its brand and boost sales, and has benefited from weaker performance at its bigger rival Nike (NYSE:).

It said revenue was up 19% year on year in currency-neutral terms in the fourth quarter, while its gross margin increased by 5.2 percentage points to 49.8%.

Adidas (OTC:) reported sales of 5.956 billion euros ($6.2 billion), up from 4.812 billion a year ago.

For the full year, revenue was up 12% in currency-neutral terms, hitting 23.683 billion euros ($24.7 billion). Profitability improved with the gross margin rising by 3.3 percentage points to 50.8%.

The results mark a significant recovery for Adidas from an annual loss in 2023 for the first time in more than 30 years, bruised by cutting ties with disgraced rapper Ye, formerly known as Kanye West, leading to the abrupt ending of its lucrative Yeezy shoe line.

© Reuters. FILE PHOTO: An Adidas shoe is seen in a store at the Woodbury Common Premium Outlets in Central Valley, New York, U.S., February 15, 2022. REUTERS/Andrew Kelly/File Photo

Operating profit for 2024 increased to 1.337 billion euros, from 268 million euros in 2023.

($1 = 0.9593 euros)

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ABB increasing U.S. investment to raise local production, CFO says

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DAVOS, Switzerland (Reuters) – ABB (ST:) is increasing its investments in the United States as a way to deal with tariff hikes expected from the new Trump administration and to benefit from the country’s economic growth, Chief Financial Officer Timo Ihamuotila said on Tuesday.

“We will be investing more to compensate for this,” Ihamuotila told Reuters when asked about the impact of higher import duties.

“We will be investing more because it’s a good growth market,” the CFO said in an interview on the sidelines of the World Economic Forum (WEF) annual meeting in Davos, Switzerland.

During his election campaign, new U.S. President Donald Trump vowed to impose steep tariffs of 10% to 20% on global imports into the U.S. and 60% on goods from China to help reduce a U.S. trade deficit that now tops $1 trillion annually.

Ihamuotila said local production for local customers was the best way to deal with the situation, noting that ABB currently produces around 80% of its products completely in the U.S., the engineering company’s biggest market.

“We have about 30 manufacturing locations in the U.S. and we will continue to expand these and probably even add something,” Ihamuotila said.

As well as spending more on its factories and facilities, ABB would also consider U.S.-based acquisitions, although many potential targets had high valuations at present, he said.

© Reuters. FILE PHOTO: The logo of ABB is pictured at the Global Industrie exhibition in Villepinte near Paris, France, March 26, 2024. REUTERS/Benoit Tessier/File Photo

Outside the United States, Ihamuotila said about 90% of ABB’s products sold in Europe are produced there, while China has about 85% local production.

“It doesn’t fully insulate you, but it helps a lot,” Ihamuotila said. “In general, we are for free trade; we would like to see no tariffs, but it is what it is.”

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US SEC forms cryptocurrency task force

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© Reuters. FILE PHOTO: The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. REUTERS/Andrew Kelly/File Photo

(Reuters) – The U.S. Securities and Exchange Commission said on Tuesday it was forming a new cryptocurrency task force “dedicated to developing a comprehensive and clear regulatory framework for crypto assets.”

The task force’s focuses “will be to help the Commission draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously,” the SEC said in a statement.

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