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Hurricane Erin brings strong winds, flooding to parts of East Coast as it slowly moves out to sea

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RODANTHE, N.C. (AP) — Hurricane Erin battered North Carolina’s Outer Banks with strong winds and waves that flooded part of the main highway and surged under beachfront homes as the monster storm slowly began to move away from the East Coast on Thursday.

Forecasters predicted the storm would peak Thursday and said it could regain strength and once again become a major hurricane, Category 3 or greater, but it was not forecast to make landfall along the East Coast before turning farther out to sea.

Hurricane Erin
A fisherman walks on a pier as large waves generated by Hurricane Erin crash into the jetty at Lighthouse Point Park, in Ponce Inlet, Florida, Wednesday, Aug. 20, 2025. (Joe Burbank/Orlando Sentinel via AP)

Tropical storm conditions were in effect over parts of the Outer Banks and the coast of Virginia, the National Hurricane Center in Miami said. In Bermuda, residents and tourists were told to stay out of the water with rough seas expected through Friday.

As Erin’s outer bands brushed the Outer Banks, water poured onto the main route connecting the barrier islands and a handful of stilted homes precariously perched above the beach. By Wednesday evening, officials had closed Highway 12 on Hatteras Island as the surge increased and waves rose. The road remained closed Thursday. Ocracoke Island’s connection to its ferry terminal was cut off.

Authorities predicted that the largest swells during high tide would cut off villages and homes on the Outer Banks and whip up life-threatening rip currents from Florida to New England.

Beaches were closed to swimming Wednesday and Thursday in New York City, and some others in New Jersey, Maryland and Delaware were temporarily off-limits. Widespread, moderate coastal flooding was forecast for low-lying areas of Long Island and parts of New York City.

Off Massachusetts, Nantucket Island could see waves of more than 10 feet (3 meters) this week. But the biggest threat remained along the Outer Banks where longtime residents didn’t seem too concerned.

“I remember taking canoes out of my front yard to get to school, so I don’t think it’s gonna be that bad,” said Jacob Throne, who lives on Hatteras Island and works for surf shops.

Despite beach closures elsewhere, some swimmers continued to ignore the warnings. Rescuers saved more than a dozen people caught in rip currents Tuesday at Wrightsville Beach in North Carolina, a day after more than 80 people were rescued.

Bob Oravec, a National Weather Service forecaster, said that even if someone thinks they know how to handle a rip current, it’s not safe.

“You can be aware all you want,” he said. “It can still be dangerous.”

A combination of fierce winds and huge waves estimated at about 20 feet (6.1 meters) could cause coastal flooding in many beachfront communities, North Carolina officials warned.

“Dangerous conditions can be felt far from the eye, especially with a system as large as Erin,” said Will Ray, the state’s emergency management director.

Hurricane Erin
Waves from Hurricane Erin crash against the sandbagged pilings of a building in Buxton, N.C., on Wednesday, Aug. 20, 2025. (AP Photo/Allen G. Breed)

Dozens of beach homes already worn down from chronic erosion and protective dunes could be at risk, said David Hallac, superintendent of the Cape Hatteras National Seashore.

Most residents decided to stay despite evacuations ordered on Hatteras and Ocracoke Islands.

“We probably wouldn’t stay if it was coming directly at us,” said Rob Temple, who operates sailboat cruises on Ocracoke.

His biggest concern was whether the main route would wash out and if tourists and delivery trucks may be cut off from the thin stretch of low-lying islands, which are increasingly vulnerable to storm surges.

Erin has become an unusually large and deceptively worrisome system, with tropical storm-force winds spreading across 500 miles (800 kilometers) — roughly the distances from New York City to Pittsburgh.

It remained a Category 2 hurricane early Thursday with maximum sustained winds around 105 mph (165 kph), the hurricane center said. Erin was about 205 miles (330 kilometers) east-southeast of Cape Hatteras and moving north-northeast at 17 mph (28 kph).

The hurricane center was also watching two tropical disturbances far out in the Atlantic that could develop into named storms in the coming days. With thousands of miles of warm ocean water, hurricanes known as Cape Verde storms are some of the most dangerous that threaten North America.

Climate scientists say Atlantic hurricanes are now much more likely to rapidly intensify into powerful and catastrophic storms, fueled by warmer oceans.

Seewer reported from Toledo, Ohio. Associated Press journalists Jeffrey Collins in Columbia, South Carolina; Gary Robertson in Raleigh, North Carolina; Ben Finley in Norfolk, Virginia; Dave Collins in Hartford, Connecticut; Hallie Golden in Seattle; and Julie Walker in New York contributed to this report.

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LG’s massive 77-inch C5 OLED TV is more than $1,000 off

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If you want to spend the rest of the year catching up on the movies, TV shows, and video games you missed over the summer, you should enjoy them on a really nice screen. Thankfully, you can get a 77-inch LG C5 OLED TV for around $2,496.99 ($1,203 off), its lowest price ever at Amazon, B&H Photo, and Best Buy.

The C5 has a 120Hz panel, four HDMI 2.1 ports and support for both AMD FreeSync Premium and Nvidia G-Sync, so gamers can play PC and current-generation console titles in 4K at up to 120 frames per second. LG says its custom-designed processor can upscale lower quality video to look cleaner on a large, 4K set. The processor also enables AI Picture Pro, a feature that analyzes what you’re watching and adjusts the TV’s settings — including brightness, resolution, and clarity — in real time to present the best picture.

LG says the C5’s Perfect Black and Perfect Color features allow the TV’s picture to look great in bright rooms, which OLED TVs have struggled with in the past. It also supports both HDR10 and Dolby Vision, so games and videos encoded in those formats will have better color and contrast. A benefit of picking up an OLED TV is that each pixel is illuminated individually, so you completely avoid blooming, which is what happens when a TV has to increase the brightness of a larger section of the set to accommodate a bright object. Blooming can be distracting once you notice it, but that’s a non-issue with the C5.

More deals worth checking out

Appeals court tosses Trump’s $500m civil fraud penalty

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An appeals court has thrown out a $500m (£372m) penalty that President Donald Trump was ordered to pay in a New York civil fraud trial last year.

Judge Arthur Engoron had ordered Trump to pay the fee for massively inflating the value of the Trump Organization’s properties in order to secure favourable loans.

In the ruling, judges on the New York Supreme Court’s Appellate Division stated that while Trump was liable for the fraud, the fine of nearly half a billion dollars was excessive, which meant it violated protections in the US Constitution against severe punishment.

In the case Judge Engoron had ordered Trump to pay a fine of $355m, but with interest, the sum grew to more than $500m.

In the case against Trump, his two adult sons, and the Trump Organization, Judge Engoron also banned Trump from serving as a company director or taking out loans from banks in the state for three years.

The appellate panel of five judges was divided over the merits of the original lawsuit brought by New York Attorney General Letitia James, who had accused the Trump and his sons of “persistent and repeated fraud”.

CDC finalizes roughly 600 layoffs; union says workforce 'decimated'

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The Centers for Disease Control and Prevention (CDC) issued layoff notices to hundreds of employees on Wednesday after a federal judge last week shielded some but not all offices within the agency.

“I can confirm that roughly 600 CDC employees were let go,” an American Federation of Government Employees (AFGE) spokesperson said in a statement to The Hill. “The cuts are across the agency including the Division of Violence Prevention, EEO, FOIA, the Office of Financial Resources, the offices of the chief information and chief operating officers, and more.”

The AFGE blasted the timing of the firings, being finalized so soon after the fatal shooting that occurred at the CDC’s offices in Atlanta.

“When we face that next public health crisis, we do so with a decimated and demoralized workforce,” the union said in a statement. “HHS has shown that it does not have the organizational or operational capacity to take over the support functions that the agency had before these firings. This reduction in force was operationally a mess. They have shown they are in no way prepared to support CDC when America needs it most.”

Last week, U.S. District Judge Melissa R. DuBose issued a ruling revising her previous injunction, in which she found the layoffs were likely unlawful.

“The Executive Branch does not have the authority to order, organize, or implement wholesale changes to the structure and function of the agencies created by Congress,” DuBose wrote in her initial July ruling.

In her order issued last week, she scaled back the scope of the initial ruling. DuBose specified that certain sub-agencies and programs were blocked off from layoffs, including the National Center for HIV, Viral Hepatitis, STD, and Tuberculosis Prevention; the Division of Reproductive Health; and the National Institute for Occupational Safety and Health among others.

This left unnamed sub-agencies open to layoffs.

An HHS spokesperson confirmed the layoffs when reached by The Hill, noting the RIFs are the final part of the process that began in March as part of President Trump’s DOGE executive order.

HHS at the time said it was seeking a reduction in workforce of about 10,000 full-time employees.

KC Fed’s Schmid wary of September rate cut, notes ‘very consequential’ data in coming weeks

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Kansas City Fed president Jeffrey Schmid said on Thursday the August jobs report due out Sept. 5 will be “very consequential” in shaping the central bank’s next move.

“I think the data coming between now and the September meeting is going to be very consequential,” Schmid told Yahoo Finance from the Jackson Hole Economic Symposium.

“So if we do see patterns and [a] risk to the labor market itself, I think we’ll start to consider and weigh the inflation data to the labor data.”

Schmid described Fed’s current monetary policy stance as “modestly restrictive.”

For four years, inflation has persistently been above the Fed’s 2% target, and recent data suggests it might now be rising further. At the same time, growing evidence indicates a weakening labor market, with the July jobs report pushing markets to anticipate that the Fed will begin cutting rates next month.

The Fed kept interest rates unchanged in a range of 4.25%-4.50% on July 31.

Read more: How jobs, inflation, and the Fed are all related

Schmid’s comments on Thursday suggested risks on the Fed’s mandate remain more tilted toward inflation remaining too high rather than the labor market softening aggressively.

With investors all but certain the Fed will cut rates in the coming weeks — and with pressures building on the Fed politically to begin a rate-cutting cycle — this view appears to put Schmid among a dwindling number of Fed officials still focused on inflation pressures.

President of the Federal Reserve Bank of Kansas City Jeffrey Schmid hosts the Kansas City Fed's annual economic symposium in Jackson Hole, Wyoming, U.S., August 24, 2023. REUTERS/Ann Saphir
President of the Federal Reserve Bank of Kansas City Jeffrey Schmid hosts the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming, U.S., August 24, 2023. REUTERS/Ann Saphir · REUTERS / Reuters

“I think we’re seeing and hearing, more importantly, in the [Kansas City Fed’s] district, that some [of] the risk of [inflation] is higher than maybe seeing some of the labor numbers come back into line,” Schmid said.

Last week’s Consumer Price Index (CPI) report showed that while headline inflation was lower than consensus forecasts, on a “core” basis prices rose more than expected. The Producer Price Index (PPI), a read on wholesale prices, also showed inflation pressures building.

The July jobs report showed hiring slowed last month, while over 250,000 job additions were revised away from the May and June data.

“We have a lot of things in balance right now in the economy, in my opinion,” Schmid said.

“And I’m just trying to be very careful to [not] try and do too much. That will create an imbalance.”

Fed Chair Jay Powell is set to speak in Jackson Hole on Friday in what is expected to be his signature policy speech of the year and his last at the symposium as Fed chair.

Jennifer Schonberger is a veteran financial journalist covering markets, the economy, and investing. At Yahoo Finance she covers the Federal Reserve, Congress, the White House, the Treasury, the SEC, the economy, cryptocurrencies, and the intersection of Washington policy with finance. Follow her on X @Jenniferisms and on Instagram.



Wayne Rooney says Yoane Wissa is ‘very disrespectful’ and Alexander Isak has no way back at Newcastle

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Wayne Rooney says Yoane Wissa removing everything associated with Brentford from his Instagram account is “very disrespectful”.

Newcastle have had a £40m bid rejected for Wissa, while the Magpies are also in the midst of drama surrounding their striker Alexander Isak’s future.

Speaking on his new BBC podcast, The Wayne Rooney Show, he said “if I’m a Newcastle player I don’t want Isak back”.

He added: “I think if players leave football clubs – and that happens all the time – there’s a way to go about it.

“You can’t go on strike, can’t not turn up for training and train with your team-mates. If you want to leave the club or not, you have to be there for your team-mates and be ready if needed.”

Rooney was speaking before Isak, who remains determined to join Liverpool, wrote that “promises were broken and trust is lost” in a statement.

The former England striker’s new podcast airs twice weekly on BBC Sounds, YouTube and iPlayer.

“For me, I don’t think there’s any way back for Isak at Newcastle,” Rooney added.

“I think there are cases where it can happen, but from me as a person, I don’t think I could accept them back.

“In terms of Isak’s team-mates I wouldn’t want him back.

“You can ask to leave a football club – that happens, or the club tell you you’re leaving – but you have to be professional.

“You’ve got friends in there who you play with, you have fans who are paying a lot of money to support and you can’t just walk out on it. And if they’re going to do it once, they’ll do it again.”

Newsom's office wishes Bed, Bath & Beyond well in 'efforts to become relevant again'

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California Gov. Gavin Newsom’s (D) office on Wednesday knocked Bed, Bath & Beyond after the company announced it won’t open any new retail stores in the Golden State.

“After their bankruptcy and closure of every store, like most Americans, we thought Bed, Bath & Beyond no longer existed,” the California governor’s office posted on social media platform X.

“We wish them well in their efforts to become relevant again as they try to open a 2nd store,” the account added.

Bed, Bath & Beyond announced this week it won’t open or operate any new stores in California, citing what it called an “overregulated” and a “risky environment” for businesses.

“This decision isn’t about politics — it’s about reality,” Marcus Lemonis, the company’s executive chairman, said in a Wednesday statement.

He said California’s business environment “makes it harder to employ people, harder to keep doors open, and harder to deliver value to customers.”

Lemonis noted the retailer will have stores in “almost every other state.” 

Bed, Bath & Beyond closed all of its more than 300 stores across the country and declared bankrupty in 2023.

Two years later, the company is attempting to stage a comeback, opening its first brick-and-morter store in Nashville, under the slightly changed name Bed Bath & Beyond Home.

In California, while it does not have plans to open any stores, the company says it is offering 24-48 hour delivery services as well as same-day service for some products.

In his announcement this week, the company’s chairman targeted California’s policies, saying, “Higher taxes, higher fees, higher wages that many businesses simply cannot sustain, and endless regulations that strangle growth.”

Retail theft has soared over the past two years, resulting in residents approving Proposition 36 in November to make repeat shoplifters subject to felonies.

“Even when the state announces a budget surplus, it’s built on the backs of ordinary citizens who are paying too much and businesses who are squeezed until they break. At Bed Bath & Beyond, our responsibility is to our customers and our shareholders. We will not participate in a system that undermines both,” Lemonis said.

Walmart is still embarrassing Target: Opening Bid top takeaway

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Tech, Powell, and retail.

Markets are eagerly awaiting Fed Chair Jerome Powell’s Jackson Hole speech on Friday, while keeping a watch on hot tech stocks, which have had a limp week.

Retail investor darling Palantir (PLTR) has notched six straight losing sessions going into Thursday, wiping away $73 billion in market value in the process.

But today’s focus is on the state of retail, with Walmart (WMT) reporting a mixed second quarter and Target (TGT) delivering another weak quarter on Tuesday.

Both of these earnings reports couldn’t have been more different, though each clearly showed the impact of President Trump’s tariff war and the more cautious consumer.

Walmart continues to trounce Target in every category. Store sales growth. Online sales growth. Profit margin expansion. Guidance.

  • Walmart US sales vs. Target: +4.6% vs. -1.9%

  • Walmart US online sales vs. Target: +26% vs. +4.3%

  • Walmart gross profit margin vs. Target: up 4 basis points vs. down 100 basis points

  • Walmart guidance vs. Target: earnings per share guidance lift vs. reiterated EPS outlook

Target’s new CEO, Michael Fiddelke, will have to move quickly to fix a host of problems to compete with Walmart. Chief among them is to run a more operationally sound business in stores and online.

“Target needs a kick in the ass,” retail expert and investor Jeff Macke told me on Opening Bid.

No deep dive on a retailer right now should exclude the great tariff debate.

Target’s business was hit because of tariffs, particularly since it sells a lot of apparel and home goods. In fact, about 50% of its cost of goods sold are imported items.

Read more: What Trump’s tariffs mean for the economy and your wallet

Walmart showed more resilience as it has a larger grocery business and overseas operations. The reality is neither retailer is out of the woods as merchandise at higher prices flows into the stores.

“Walmart’s second quarter print highlights strong traffic and price investments driving share gains with U.S. comp growth well ahead of peers,” Jefferies analyst Corey Tarlowe wrote. “Core margin levers remain intact, suggesting continued earnings durability & future upside. While tariffs introduce some near-term uncertainty, the focus on value and market share supports a favorable setup for sustained outperformance.”

The retail earnings parade will keep marching on next week.

Let’s take a quick look at Best Buy (BBY), which reports on Aug. 28.

The stock is down 35% in the past five years as the retailer struggles to compete with Amazon (AMZN). Electronics innovation has also slowed (see Apple (AAPL) still trying to figure out AI). Consumers now hold on to devices longer — not exactly great news for Best Buy.

London Underground staff to walkout over pay

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Getty Images passengers on board a crowded tube trainGetty Images

London Underground staff will strike from 5 September for seven days

There will be rolling strike action across the London Underground (LU) beginning on Friday 5 September for seven days, the RMT union has announced.

The union claimed transport bosses refused to engage with them over pay, fatigue management, extreme shift patterns and a reduction in the working week.

RMT General Secretary Eddie Dempsey said: “Fatigue and extreme shift rotations are serious issues impacting on our members health and wellbeing- all of which have not been adequately addressed for years by LU management.”

A Transport for London (TfL) spokesperson said: “We urge the RMT to put our fair, affordable pay offer to their members and to continue to engage with us.”

On Thursday, RMT accused management of a “dismissive approach”, adding this had “fuelled widespread anger and distrust” among the workforce.

Staff at different grades will be taking industrial action at different times as part of rolling strike action, it said.

TfL’s spokesperson said: “We regularly meet with our trade unions to discuss any concerns that they may have, and we recently met with the RMT to discuss some specific points.

“We are committed to ensuring our colleagues are treated fairly and, as well as offering a 3.4% pay increase in our ongoing pay discussions, we have made progress on a number of commitments we have made previously.

“We welcome further engagement with our unions about fatigue and rostering across London Underground, but a reduction in the contractual 35-hour working week is neither practical nor affordable.”

In a separate dispute over pay and conditions, workers on the Docklands Light Railway will also be striking during this period in the week beginning 7 September.

Mr Dempsey added: “RMT will continue to engage LU management with a view to seeking a revised offer in order to reach a negotiated settlement.”