breaking news. hurricane irma downgraded to a category 1 storm as it pushes into northern florida. we have the latest of the storm track straight ahead. millions without power at this hour as irma leaves a trail of destruction up and down the florida coast. we are live on the ground for you with the latest. dramatic pictures into the cnbc newsroom as irma barrels into the florida coast a special edition of "worldwide exchange" begins now good morning and welcome to

"worldwide exchange" on cnbc, i'm sara eisen. >> i'm wilfred frost irma has been downgraded to a category 1 hurricane the storm is packing sustained winds of 85 miles per hour right now irma is 25 miles northwest of tampa nearly 5 million homes and businesses across florida were without power and some 12,000 flights have been canceled due to the storm. >> we've got full team coverage of the monster storm cnbc's contessa brewer on the ground in fourt. lauderdale. jackie deangelis is standing by. let's start with cnbc meteorologist david biggar. >> good morning. hurricane irma we're watching it very carefully i wanted to show you what the track is still looking like. we have a category 1 storm it will continue to track up and along florida's western coast line weakens as it does so eventually becoming a tropical

storm. it's eventually starting to shift from more of a wind producer to a rain producer. i wanted to show you the current wind field this is what it looks like right now. all of these colors, that orange color that you're seeing is the extent of the tropical storm force winds. you see it does extend out very far. as this continues to travel north, a good portion of georgia and south carolina will feel the impacts. as i mention, it's not only a wind producer, it's a rain producer as well you can see a good producer of georgia, 5 to 8 inches of rain would not be surprised if a few areas of southern georgia pick up more than 4 to 8 inches of rain, as much as 15 inches as this drops a lot of rainfall send it back over to you. >> david, now a category 1 hurricane as we left things for friday evening is this a slightly better circumstance monday morning than we had feared? >> yeah, it's a i little bit of good news/bad news the good news is it is

weakening. the bad news is that it shifts to being a huge rain producer. it covers several states at this point and it has severe winds with it. it will be a tropical storm in a few hours. >> david biggar, thank you very much look at the scene throughout ft. lauderdale as hurricane irma washed up shore. contessa brewer joins us good morning >> reporter: good morning there, will fr wilfred. we're in a brief period of calm after a very long sunday of storms when people wake up, as the sun comes up, they're likely to see much of the damage like you see behind me. downed trees across the area there are lots of power lines and what we also know is that the tornadoes that touched down did much of the damage there were multiple tornadoe that touched around here and we know that there was a storm surge into low lying streets.

hollywood beach, we went out there yesterday, and we saw sand piled up around the sidewalk on the broad walk a lot of people who head down to hollywood might have remembered that also, i wanted to tell you, there's been a crane collapse in ft. lauderdale that happened late last night. also two into miami. we'll be heading into miami to check that out there was flooding in brickell, also known as the wall street of the south. major flooding at the airport in miami. don't expect any flights out until tuesday, and then it will be minimal we are still under curfew at this hour. the curfew will lift in ft. lauderdale and miami at 10 there's still more rain heading this way, guys. >> contessa, describe what the weekend was like because i remember going into friday the big fear was that it would hit that eastern coast where you are in ft. lauderdale, but it did manage to avoid the eye of the

sto storm. that big change came about when the storm track was forecast to move up the west coast describe what it was like for you. >> reporter: i have to say, number one, spending a whole weekend inside a hotel with e c evacuwees, the hotel was filled with the very elderly and very, very young also, a hotel that's typically not pet friendly was urged by state officials to open their doors to pets so that families would feel good about, you know, our lights are going out here, we're running on generator power because we don't have power. they opened their doors to pets and it was filled and people were staying calm. outside it raged for hours and hours and hours on end it seemed like it would never end with the rain and the wind and getting through all of that without power i have to say is an ordeal. i'm not typically inside when i was covering hurricanes.

i'm typically outside. completely new experience for me. >> thank you for that. we will continue to check back in with you as they survey the damage on the eastern coast of florida. a big move up on u.s. stock futures. markets are breathing a hsisigh relief as the worst fears from the weekend about hurricane irma striking major metropolitan cities like tampa and miami did not come to fruition look at the dow futures right now, up almost 150 points. s&p futures up 15. nasdaq futures up 47 the dollar is higher treasuries are weaker this broad move into risk. some are citing hurricane hurricairma some are citing that north korea didn't launch a missile. either way, we're coming off of a weaker market from last week

>> the anything kay up 1.2%. it was down 2% last week that's a big rally no missile tests out of north korea. last week it was tuesday, we were off on monday we were going in the opposite direction. >> now let's keep talking about this storm because we're going to move up the coast now about an hour from ft. lauderdale, jackie deangelis in west palm beach. good morning. >> reporter: good morning, sara. it is hard to believe the wind gusts were coming through this area last night and that it is such a severe storm. this is what i would call the calm after the storm it's interesting because it will be calm and the wind will still continue to whip up. i imagine we'll be seeing that throughout the morning obviously people here in west palm are still trying to survey and assess the damage. it's dark out so it's difficult to know exactly what's happening. we did see a lot of downed

trees. we know power is out in this region we also know that the sheriff's department has urged residents who have stayed here, evacuees to stay put until further notice i imagine it could be potentially chaos on the streets. even at 4:00 in the morning, some of the hotel residents we were staying with wanted to get back to their property and assess damage for themselves it was a rough storm to get through for the last 24 hours or so we also were hunkered down inside a hotel that was housing about 500 guests a lot of pets as contessa said people generally felt safe and they stood together. the hard part now is going to be as the sun comes up and everybody gets antsy and they want to hit the road they feel like it may be safe but it may not be safe out there. that's what they're being cautioned against right now. you know, in terms of the local and state authorities, they were

very orderly throughout this process and i imagine they're going to try to continue that to ensure safety as we move forward this morning >> when, jackie, are people going to be allowed back you mentioned they want to go back and see their property damage, boats, big estates there in palm beach whmpt can they return home? >> reporter: contessa mentioned some of the curfews will be lifted in other parts of the florida. in west palm beach the measures have been a little more strict in this process. as i said, the sheriff said nobody is going anywhere until further notice our hotel is still under lockdown we also had one of the first curfews on saturday afternoon that was put into place. i imagine the residents here, the evac u es may be some of th last people to go. >> the power outages we expect to last for how long

>> reporter: it's hard to say at this point this hotel was very lucky running on generator power what i can see from just looking at the street is some of the street lamps are on. we're located close to the airport. we have the sheriff's office next door. i imagine this grid could be prioritized. i can tell you with so many without power recall 2 certainly is going to take a while. watching that process after harvey, i can tell you it's going to take some time. >> jackie, thank you very much. check out some of the reinsurance stocks today early estimates from air worldwide expecting insurance losses in the u.s. and caribbean to be up to $65 billion. in florida, nearly 80% of the total insured value is in the coastal area the company says structural damage is unlikely to reach hurricane andrew thanks to stronger building codes.

as we continue to keep our eye on irma, let's look at broader market pictures. nearly 150 points for the dow, 48 for the nasdaq and the s&p low. the dow was down 0.9% a lot of this is due to the fact that there weren't any missile tests in north korea as sara mentioned. let's have a look at a ten-year treasury note. buying up the bull markets switching yields lower to 2.05% on friday. it's a risk on the move on the bond market as well. we're seeing yields rising nearly 2.09% on the ten year. >> asian equities. wil dlgs fred said substantially overnight, that helped the

nikkei finish higher by 1.4% real rebound for global stocks chinese ppi coming in lower than expected maybe we'll see more inflation shanghai comp closing up .4% we have this risk on mode happening in global markets. 1 point gains for the german dax. will fred, after a 1% move lower for the nasdaq last week, really piling back in two reasons you mentioned, north korea, also some strategists this morning citing the fact that some of these markets, the dollar treasuries maybe at the end of last week, remember, there was voracious buying of treasuries pricing in for more of an armageddon situation and hurricane harvey they've left a lot of devastation but bill dudley said

ultimately -- unfortunately, these storms are stimulative in the long wlun it comes to rebuilding we are talking about property damage, refineries starting to come back online. >> actually, i don't think it's that much storm related. i think it is more north korea and global related the declines we saw were kind of flat the bounce back related to the lack of anything happening this weekend. oil prices, we did have quite a pull back on friday. they fell 3% still ended the week in positive territory albeit a negative friday up again today by almost 1%. 47.9 on wti. dollar as sara mentioned has rebounded. last week the dollar is now 1.64% in the broader index today it's bouncing back particularly at 0.59%.

it's given up some of its gains it had against the euro and the pound. $120.21. the euro pretty much flat. gold prices which gained 1.6%, they're gaining back a large portion of that to be precise. $14.32 keeping an eye on hurricane futures. futures are up 12 perfection -- 12% in the past week. >> supply, all of the oranges come from florida. hurricane irma certainly on the move georgia is now bracing for a hit. we'll have the latest on the monster storm's track which is still ongoing. downgraded to category one hurricane this morning we are keeping watch for you 'lbrg wel inyou an update. stay tuned you're watching "worldwide exchange" here on cnbc and one for each of you too! that one's actually yours. that one. regardless, we're stuck with the bill.

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welcome back to "worldwide exchange." i'm sara eisen here with wilfred frost. hurricane irma's path. it is headed over florida getting ready to push into georgia. let's go to meteorologist david biggar what should georgia be braced for? >> they should be ready for a lot in the way of rainfall and tropical force winds it's got 75-mile-an-hour winds it needs 74 or higher to be a hurricane. it's producing a lot of rainfall

over georgia now that's obviously impacting flights and continue to rain over the next couple of hours. right now here's what the alerts look like. hurricane warnings for northern florida and southern georgia atlanta is still under a tropical storm warning just in case we see the winds above 40 miles an hour or so. >> cities like atlanta, are they as well prepared as miami was? >> probably. they were planning for the worse. the original path of this was missing the eastern coast of florida, pushing it up into georgia and the carolinas. they've had time to prepare for it and likely they're watching what the storm does. >> this comes so soon after harvey. >> yes. >> we have reports of jose developing is it typical we see them come in twos and threes like this and what's the latest on what's still to come? >> yesterday climatologically speaking was the peek of hurricane season we're not always expecting to see so many land falls so close together, especially two major hurricanes this is the peak of season

this is when we expect to see most hurricanes and activity will slowly wind down. >> we watched after harvey the stunning amount of rainfall and the storm surge. what is the picture in florida >> the good news is that the storm surge wasn't as bad as initially forecast, and that's because the storm worked over the peninsula so it weakened a lot faster with this storm, it's moving a lot faster than harvey did we're still looking at a lot of rainfall you can see here's a look at radar. how much rain is falling over georgia. we're expecting 8 to 15 inches of rain. with harvey it got over land and stopped and curled around. it was raining for several days. with this one it's going to rain a lot but it's moving a lot faster than harvey. >> historically speaking, the surprising thing with harvey and irma, it's the fact that they reached landfall so quickly. >> yeah. the other thing is they're both major hurricanes we've only had a few instances through the record of hurricanes where we've had two major

hurricanes making consecutive landfall >> jose? >> it's the potential that it could move towards the u.s., provide increased surf along the coast line we'll watch that for the next week or so. >> are they heading towards the caribbean islands as well? >> jose did brush a few of those islands. right now it's kind of spinning around in the open atlantic. there's no steering current for it >> david, thanks very much we'll hear more from david throughout the day. switching focus. president trump is of course closely monitoring hurricane asma as it moves up the florida cot. we'll be live in washington with the latest when we come back uste so for once i've got plenty of time. what's going on? so those financial regulations being talked about? they could affect your accounts, so let's get together and talk, and make sure everything's clear. thanks. yeah. that would be great. we've grown to over $900 billion in assets under care...

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comcast, building america's largest gig-speed network. welcome back to "worldwide exchange." president trump is closely monitoring hurricane irma as it continues to bear down on the florida coast. nbc's tracie potts is live in washington with the latest good morning. >> reporter: hey, wilfred. good morning the challenge is going to be money. fema is trying to help out in texas. now this monster storm that rolled through florida overnight. this morning fema, the federal emergency management agency, has food and supplies stashed all over florida at military bases, at red cross shelters >> wherever hurricane irma goes, we'll be there first. >> reporter: but how soon can

they get it all out? >> until the governor requests it, we will not be moving any supplies so those that sheltered in place should be ready to sustain themselves for a period of time. >> reporter: they're most concerned about search and rescue in the florida keys high winds making it hard for helicopters to land there, and all of that costs money. >> it's going to cost a lot of money. right now we're worried about lives. >> reporter: president trump huddling with his team at camp david to make sure help and funds are flowing. fema almost ran out of money after hurricane harvey congress approved another 15 billion. >> that's going to run out in a few weeks. >> reporter: but insurance money won't. >> this is a big hurricane catastrophe fund it's a reinsurance fund. it's got billions of dollars of reserves people should be well off because the insurance companies won't be going bust. >> reporter: but for uninsured losses congress will likely have to come up with more money by mid october. and that's certainly going to be

a challenge considering the fact that the cost estimates for cleanup and rebuilding and recovery from these storms, both of them, are already, wilfred, in the hundreds of billions of dollars. >> tracie, what can you tell us about north korea. we are watching this critical u.n. vote on sanctions. >> reporter: right but sanctions haven't worked so far. take a look at what's happened so far with the last sanctions that the u.n. approved billions of dollars, about $3 billion impact on north korea and still they continue to test fire >> yeah. all right. we will watch that vote. north korea already saying that they will retaliate if the u.n. security council approves a u.s. vote on monday. let's check in on the futures. we are seeing a pretty nice rally here to start the week, at least in the futures market. dow futures up 15 points s&p up 15.

nasdaq up 48 for instance, look at the ten year treasury note yield right now. 209, 210 where are we right now 209. got really low last week i think down to 203? >> yes. >> it was a voracious buying of u.s. government debt we saw the dollar weaken substantially last week. we saw gold rising it was a pretty risk off move at least in the currency markets. a little bit trickled into the stock market the nasdaq closed lower by about a week concerns about north korea there. concerns about the impact of the monster storm as the forecast looked pretty dire no matter what it is, we are seeing this big rebound. it's global this morning saw it in asia 1% across the board. up next, the latest impact on hurricane irma and the latest impact on business. as we head to break, a look at more of the dratimac images from hurricane irma. stick around we're back in a minute for your heart...

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breaking news. irma downgraded to a category 1 hurricane as it bears down on the florida coast. the latest on the storm's track straight ahead. leaving millions of florinians without power live reports from the ground coming up. thousands of flights canceled from miami to atlanta irma brings travel to a halt

this is a special edition of "worldwide exchange." >> good morning, welcome back to "worldwide exchange. i'm sara eisen. >> i'm wilfred frost. here is what we know at this hour irma has been downgraded to a category 1 hurricane as it heads north over florida the storm is packing sustained winds at this hour of 75 miles per hour right now irma's about 25 miles northwest of tampa nearly 5 million homes and businesses across florida are without power and some 12,000 flights have been canceled due to the storm >> we have full team coverage of this monster storm cnbc's contessa brewer is live on the ground near ft. lauderdale jackie deangelis is live in west palm beach david biggar is standing by with the latest. >> good morning. we are watching irma very carefully. it's starting to look very

different. this is what it looks like on radar. the southern half of florida is starting to move out of the rain it is still very windy in parts of the region where we're seeing some areas in the tropical force rain it is heavily raining in the northern portion of the state. we're seeing very heavy rain move into portions of georgia. it is still a category 1 storm packing winds of 75 miles per hour the track will have it weaken to tropical storm as we start to head into the afternoon and evening hours for today. then as we go into the next couple of days it will quickly weaken and become a remnant low where it falls apart what you're seeing on the map is the orange circle. that is the tropical force winds which are very strong. we have hurricane warnings for the northern half of florida and then extending out into georgia we have portions of georgia covered under what's called a tropical storm warning we are looking at the strong winds continuing obviously as the storm continues to weaken it will become more of a rain threat for portions of

georgia. we could be seeing five to eight, maybe about 15 inches of rainfall over some parts of georgia. we'll continue to monitor this over the next couple of hours. back to you. >> david, at this rate, how many days away are we from there being no longer a storm or hurricane in place over land in the united states? >> just a couple of days it looks like by tonight it will be a tropical storm. sometime tomorrow it will weaken into a tropical depression. >> we'll continue to check back with you david, thank you very much we move to south florida now check out the scene in ft. lauderdale yesterday as hurricane irma slammed into the florida coast. let's get to cnbc's contessa brewer who is live near the airport there with the latest. contessa >> reporte contessa, do you have us all right. she doesn't have us. we'll wait to get her audio fixed there. in the meantime let's move up to west palm beach.

jackie deangeles up near the west palm beach airport. >> reporter: good morning to you, sara. slam into florida, this storm certainly did. things are calmer on the ground now just before the sun comes up and while safety was paramount going into the storm, it also will be recovering from the storm. the sheriff's office here has told everybody in our hotel, everybody is staying put until further notice they want to get out there and assess the damage themselves and make sure it's safe to hit the streets. but you have a lot of evacuees in this hotel worried about property damage. take a look at this video last night. this is one example of a boat crashing into a sea wall obviously palm beach county is an affluent community. there's a lot of real estate here a lot of boats, for example, things that people are worried about, their personal property they're going to be in a rush to

be able to get back and assess the damage themselves while the authorities just want to make sure that they're assessing their aspect and their portion of this. right now we know that about half a million residents are without power. a little bit more than half at this point of course, that will raise tensions as they're waiting for power to be restored and things to go back to normal in terms of florida and some of the crops that we have to think about, obviously a massive multi-billion dollar citrus industry something people will focus on in the days ahead here in palm beach, about 20% of the united states sugar supply comes from this county alone so that's something that we'll be watching and perhaps tracking a little bit later today back to you guys. >> jackie, thank you very much for that let's get back as well to cnbc's contessa brewer live near the airport with the latest from there. contessa. >> reporter: yeah, wilfred, so up and down the southeast coast

of florida you're likely to see trees down, power lines down it's part of the reason why the power is such a big issue here florida power and light says 1.5 million customers in broward county and miami-dade counties don't have electricity though they have mobilized their biggest response ever, some 16,000 trucks and crews to respond to the power outages statewide, they say in this case it's going to be a long slog to getting the power turned back on to people. they're asking customers for their patience here. speaking of long slog. you saw on friday the long gas lines as people trying to escape the wrath having a run on fuel port everglades, a major conduit to oil and gas, has been closed to fuel deliveries they have storm supplies on hand and they will start getting gas to the gas stations as soon as the petroleum companies at the port are up and running and as

soon as it is to get it running. they can't get back home unless they have fuel in their car. back out here live, we have had no power now for a day and a ha half it seems to me people are very eager to leave wherever they have sheltered from the storms, get back to their homes and assess the damage. we'll be back with them heading down to the brickell avenue area to assess the storm surge damage in that part of south florida. >> i was going to ask you about the damage over where you are in ft. lauderdale i know this is no miami in terms of financial hub, but there is a lot of business activity there and it is a fairly major metropolitan area whampt can you see at this time in terms of property damage, business damage, buildings, et cetera >> reporter: localized in low lying streets the storm

surge was enough to cause flooding there in many cases the residents though were expecting it, they had anticipated it, they had prepared for it. it's interesting to see when you go on those streets, they think downed trees, downed power lines and some storm surge flooding was no big deal. they were prepared for it. there were tornadoes that we had tornado warnings all day yesterday and saturday and we got reports that a tornado touched down at the ft. lauderdale airport no sense yet of the damage remember, until early this morning it was too dangerous really to go out and do widespread assessment of the damage, which is one thing officials haven't done they said, we can't really tell you if there's catastrophic damage because we haven't been able to get out and see it. >> contessa, thank you very much we'll continue to check in with you later. as we continue to keep our eye on irma, let's check in on wall street. we're seeing a rally dow futures up a nice 150 points

they've been there pretty much all hour s&p futures but 15 points. nasdaq futures up 48 points or so reversal from what we saw last week certainly for the nasdaq where we saw a nearly 1% decline on the week as for the ten year treasury note yield going the other way from what we saw last week higher yields. nothing dramatic because we're still below 210 on the ten-year. we were below $2.05 earlier last week the buying of treasuries, it was a risk off move. let's have a look at asian equities as sara said, a global rally anything kay nikkei up 1.4%. we did see the yen strengthening against the dollar that's also reversing. all in all a pretty clear reversal of some of the trends of last week rally elsewhere, hong kong, shanghai and south korea also higher european markets strong.

surprising last week we did see germany up 1.3% even though the euro was rallying. elsewhere there were declines from the likes of france and the u.k. and they are offsetting those. germany continuing the next couple of weeks. broader markets now oil prices are a little bit stronger today having slipped 3 perce% on frid. friday was negative. dollar want to do dollar board? higher this morning after a weakness last week dollar/yen in particular showing some strength up .6 of 1%. the dollar above the euro at $1.20. gold prices backing off. it is down .6 of a percent also keeping an eye on orange juice futures as hurricane irma made the finding how about sugar?

jackie mentioned a lot of sugar plantations in that part of the region hard to assess the damage at this point, but -- don't have that so never mind. >> we will bring it to you later. hurricane irma still bearing down on florida and it's now less than 24 hours away from georgia. the state issuing its first erev warning. we're live in atlanta with the latest when "worldwide exchange" returns. there's a denture adhesive that holds strong until evening.

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good morning and welcome back to a special edition of "worldwide exchange. i'm sara eisen dow futures up 1.5 hurricane irma is expected to bring heavy rain and high winds to georgia where residents and state officials are preparing and that is where we find diana olick. at the world's busiest air part. atlanta's heart field jackson. good morning, diana. >> reporter: good morning. when we walked in here at 4:30, the place was packed travelers clearly trying to get out before the storm hits which is probably six hours or so. so far 3500 flights canceled nationwide here in atlanta, 627 flights canceled, both in bound and outbound that's 1/4 of the flights scheduled for today and that's only second only to miami international. so obviously delta here and

atlanta officials are not taking any chances with this storm, even though it's only going to be a tropical storm here government offices all closed today. schools closed today and area rapid transit system closed. we talked to an overnight worker here about an hour ago who was just finishing up his shift. he has no idea how he's going to get home clearly everyone in atlanta bracing for this storm as will said earlier, the first time they've had a tropical storm warning here in the city they got hit by hurricane irma 25 years ago waiting for the storm to hit here but very, very cautious and obviously we will expect to see a lot more flight cancellations later once the storm really moves in diana, broadening out from georgia. what are preparations like for irma in terms of the housing industry and the damage they'll be expecting >> reporter: well, when you look over miami, there's been incredible amount of

construction we talked about cranes falling there are currently 101 towers under construction right now in florida east of i-95 since 2003 when the housing boom really started there, you have close to 250 brand-new towers with over 100,000 units, that's both condos and rentals. when we start to assess the damage, obviously these are technical buitall buildings. you had single family construction all over florida during the housing boom in 2005, 2006 also in texas as well. we can expect to see a lot of damage. >> as i understand it, diana, texas was particularly vulnerable to the flooding and some criticized for lax building codes. in florida they dealt with andrew and the opposite was true the buildings have been built to be resilient is that accurate >> reporter: yeah. in fact, people were bragging

about that the miami world center complex going up saying they wanted us to come see the place before the storm to show us all of the things they've implemented there. a lot of new building codes. talk to anyone in miami, they say post andrew all these new codes going into place should help minimize some of the damage to both single family and multi-family homes in andrew that was not the case. >> diana olick, thank you very much. we're approaching the top of the hour that means teams getting ready for "squawk box. joe kearny live in new york. >> good morning, will. the storm is heading north georgia, the carolinas, virginia all preparing for the storm today. we have a lot of coverage of

this including tom fanning we'll talk insurance we'll talk about all of the different aspects of this major, major storm. the second one in -- after so many years of not having any major hurricanes make landfall not the only thing we're going to talk about. senator mark warner, equifax little did i know i was signing away my rights when i went on the website. >> it's unbelievable >> the more you read about that. >> in the fine print >> unbelievable. >> we can't forget in the midst of all of this, i can't believe it's been 16 years since september 11th but it is kantor charity day and we'll have the moment of silence at 8:46 a.m. that we never want to forget this regardless of what else is happening. so talking about that as well,

guys. irma still making its way up the florida coast. many businesses in the storm's cross hairs. the impact irma could have on the broader economy. the economic data and fed policy when "worldwide exchange" returns. introducing olay duo body cleanser.

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are you serious? is that why you don't like them? those boots could make a unicorn cry. yeah, tears of joy. the bank of america mobile banking app. the fast, secure and simple way to send money. welcome back to "worldwide exchange." i'm wilfred frost along with sara eisen this morning. here's a check on futures as hurricane irma continues to bear down on florida. bouncing significantly, 148 points for the dow coming back a percent or so for the dow. a little bit more for the nasdaq and a little less for the s&p. let's bring in ellen zetner. thank you for joining us let's talk about the hurricane first and the impact of irma when you consider harvey as well will this have a negative impact

on u.s.gdp >> when we look at it combined, if it was just harvey, close to the middle of the grid, you have plenty of time to make activity before the quarter is over combining the two storms, you will affect activity in the current quarter. you still get the typical rebound in the quarters following these storms that's a lot of homes that have to be rebuilt. it's a lot of cars that have to be replaced. on the home front, so to speak, that's more lagged though. i can go out tomorrow as soon as the storm passes and practically get an insurance payment and buy a car. that process happens very quickly. on homes, especially if you don't have insurance, you've got to wait for the government insurance, that can take months before you start to rebuild. >> what about an impact on the insurance market >> i think we see that if you look at the hurricane

katrina's impact on claims in louisiana, similar spike about full brunt of it came three weeks after the storm hit. it is very specific to that state. we saw the jump in claims, 98% of it was explained by hurricane harvey that doesn't tell us anything about job growth and i'll tell you, it is an extremely high bar for being counted as unemployed from these storms. even if your store was closed, 120 walmart stores were closed they're still on the books as being employed and so you typically see it in hours worked and pay because some full time will become part time during that time. you don't see it in the headline i wouldn't see it in the jump in claims. >> we're expecting that to be an increase in demand in workers in the construction sector. is that a supply to be in these

states or something to come? >> there's going to be a migration with the reconstruction efforts it's a very tight industry we've already seen home and housing starts and home sales hampered by the supply because of one of the constraints has been a lack of workers so i think that will be an issue. we will see wages rise in those areas and end up paying more for those workers. the plumber or the -- we've heard of reports of people coming down from minnesota, a slower housing market to work on the broader housing markets. >> the fed is quiet. >> thankfully. i love the blackout period. >> it feels like we're into another period where the fed members and the market are on different pages for the expectation of rate hikes. we hear the latest from bill

dudley at the new york fed that they're on track to keep raising rates. which is it? >> we're in the dudley camp and i do think that december is priced too low i just came back from a week of marketing in london. there are bullish investors on the u.s. economy that believe the trend is mispriced they're thinking that people are not putting a bigger probability on december as they should those comments from dudley came out while i was on that trip and basically saying, look, inflation is disconnected from the economy and if there are structural factors like technology having long term downward effects on inflation, then you have to set that aside and understand that that's just a persistent short fall from your target but it doesn't mean you've got great rates. >> is the fed the most important factor for the dollar? if so, what does that mean for the dollar index which we just saw in the charts and screen has had an extraordinary weak run throughout the year?

here's where fed policy will come into play the fed is going to keep raising rates starting with december that can have an effect. from a fed policy maker standpoint, they're encouraged by the weakness in the dollar this year but more so because it will lift inflation in the back half of next year. it has pretty lagged impacts on inflation. let's face it. we have reached a 16 year high or popping through a 20 year high through the election. we're coming back to, oh, it's not a new day under trump, let me take some of that dollar strength off we've still had a 16 year high before that. that takes some time to feed through the economy. >> that was a big bullish position that had been built up. just to push back against your idea on the fed for a moment

this idea that inflation is disconnected in the economy. if we are going to see a temporary hiccup in the data, what's the hurry for them to raise rates this year? >> that's a fair question. we see very important inbe flew ensal board governors like governor brainard who say, i don't buy it i have to see stronger inflation data or else i'm not going to vote she said the same thing in 2015 and she voted for a hike in 2015. >> she's a team player. >> yes, a team player. if they're going to hike rates in december, we have to have team players because the cards are stacked against them. >> team is shrinking is it going to be off by october? >> exactly quarls will be on. there's been a persistent short fall for 20 years in inflation there are a lot of long-term factors holding it down. >> leave it there.

>> that's a good debate. we should pick up, inflation and the economy. >> but we can't pick it up today sadly because we're out of time. that's it for "worldwide exchange." "squawk box" comes up next (bell ringing)

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and breaking news at this hour hurricane irma continues to pound the united states. the wrath is a powerful hurricane plowing through florida destroying homes, businesses streets underwater nearly 5 million customers without power. the storm now heading north. the coastal states of georgia, we have complete team coverage as "squawk box" begins right

now. live from new york, this is "squawk box. >> good morning and welcome to "squawk box" on cnbc it is september 11th the 16th anniversary of the 9/11 terrorist attacks on america it is a solemn remembrance that will be commemorated on the site of the attacks in new york, washington, d.c., and later in pennsylvania i'm becky quick along with andrew ross sorkin a andrew has maximum sustained winds that have decreased. you have higher gusts coming through. right now irma is 60 miles north of tampa irma is expected to weaken to a tropical storm this morning and to a tropical depression by tomorrow