Business Times : latesthttp://www.btimes.com.my enThursday, November 28, 2013, 12.29 PMRinggit opens higher against US dollarhttp://www.btimes.com.my/articles/20131128101217/Article/ http://www.btimes.com.my/articles/20131128101217/Article/Thu, 28 Nov 2013 10:12:17 +0800The ringgit opened higher against the US dollar today on short covering after the recent low, dealers said.
At 9am, the ringgit was quoted at 3.2290/2320 against the greenback from yesterday's 3.2350/2380.
A dealer said buying interest emerged for the ringgit after the local unit closed at an almost two-month low yesterday, following a sell-down in institutional funds.
Meanwhile, the ringgit was traded mixed against other major currencies.
It appreciated against the Singapore dollar to 2.5760/5805 from 2.5772/5798 on Wednesday, and strengthened against the Japanese yen to 3.1691/1733 from 3.1750/1795 previously.
The currency fell against the British pound to 5.2656/2711 from
yesterday's 5.2394/2455, and weakened against the euro at 4.3883/3930 from 4.3872/3920.-- Bernama Malaysia's richest refinancing on rate signalhttp://www.btimes.com.my/articles/20131128103611/Article/ http://www.btimes.com.my/articles/20131128103611/Article/Thu, 28 Nov 2013 10:36:11 +0800Malaysia's richest people are refinancing Islamic bonds on concern the fastest inflation in almost two years will further drive up borrowing costs.
Binariang GSM Sdn Bhd, the telecommunications provider owned by billionaire T. Ananda Krishnan, is considering selling about RM6 billion (US$1.9 billion) of Islamic bonds, said a person familiar with the matter. Malakoff Bhd, a power producer controlled by Tan Sri Syed Mokhtar Al-Bukhary, is planning an issue of as much as RM5.4 billion, according to a November 26 stock exchange filing.
Companies rushing to raise money before tightening by Bank Negara Malaysia and the Federal Reserve led to an increase in enquiries, according to CIMB Group Holdings Bhd and RHB Capital Bhd, the second and third-largest ringgit sukuk underwriters of 2013. Inflation accelerated to 2.8 per cent in October, the fastest pace in 22 months, while interest-rate swaps signal the central bank will boost borrowing costs for the first time since May 2011.
"Issuers see a window of opportunity and want to lock in rates before they start rising," Badlisyah Abdul Ghani, chief executive officer at CIMB Islamic Bank Bhd, the Shariah- compliant unit of CIMB Group, said in a telephone interview yesterday. "Issuers are refinancing because borrowing costs in Malaysia have stabilized."
Binariang last sold Islamic bonds maturing in five to 50 years in 2007. It issued 2017 securities at a coupon rate of 6.1 per cent and 15-year notes at 7.1 per cent. Average yields on top- rated Malaysian corporates were 4.38 per cent yesterday, compared with an average of 4.61 per cent in 2007 when the global financial crisis froze credit markets, according to a central bank index.
The company's Ananda Krishnan is Malaysia's second-richest man with estimated assets of US$8.8 billion, according to the Bloomberg Billionaires Index. The corporation is rated A2 by RAM Rating Services Bhd, the sixth-highest investment grade.
One-year interest-rate swaps climbed to 3.26 per cent this year, compared with the 2013 low of 3.15 per cent in May and exceeding Bank Negara's three per cent overnight policy rate. Eight of 17 economists surveyed by Bloomberg predict Governor Tan Sri Zeti Akhtar Aziz will raise the benchmark rate by at least 25 basis points before the end of the second quarter.
The prospect Zeti will tighten rates is "by no means a certainty" as policy makers will continue to seek to support economic growth, said Angus Salim Amran, the Kuala Lumpur-based head of financial markets at RHB Investment Bank Bhd, a unit of Malaysia's fifth-biggest lender by market value.
Malaysia's Islamic government bond market is also showing investors' concerns about inflation. The difference in borrowing costs between two- and 10-year securities, the most sensitive to expectations for consumer-price gains, widened 51 basis points this quarter to 121 basis points, the highest since at least June 2010, central bank indexes show.
The Bloomberg-AIBIM Bursa Malaysia Corporate Sukuk Index, which tracks the most-traded local-currency notes, gained 2.6 per cent in 2013 to 104.97, the highest level since its inception in February 2012.
Global Islamic borrowing costs are starting to rise on odds the Fed will trim stimulus that's driven inflows to emerging- market assets. Average yields climbed 95 basis points this year to 3.76 per cent, poised for their first annual increase since 2009, according to the HSBC/Nasdaq Dubai US Dollar Sukuk Index.
"We've spoken to a few of our established clients and they have indicated that refinancing is a very strong proposition given expectations of Fed tapering," Angus Salim said in a telephone interview yesterday. "Some issuers will try to refinance before tapering manifests itself and yields start to go higher."
Malakoff, which is seeking a listing and is rated two levels higher than Binariang at AA3, plans to sell Islamic bonds with maturities of one to 18 years, according to the exchange filing. Syed Mokthar owns more than 50 per cent of MMC Corp and DRB-Hicom Bhd, which have a combined market value of RM13.3 billion, data compiled by Bloomberg show.
The company sold RM9.3 billion of sukuk last year with maturities ranging from one to 30 years to refinance debt and for plant expansion, according to data compiled by Bloomberg. The coupon rate on the 10-year securities was 4.84 per cent, while the 2032 debt was issued at 6.2 per cent.
Binariang will make a decision on its planned sukuk offering before year-end, said the person who asked not to be named as the details are private. Chan Chee Beng, a director at the Kuala Lumpur-based company, couldn't be reached by telephone yesterday and didn't respond to an e-mail seeking comment.
"Everyone knows that the Fed will have to taper no matter what as we have had low global rates for too long," Lam Chee Mun, a fund manager at TA Investment Management Bhd overseeing RM680 million, said in a telephone interview. "Global yields will start to normalize because of the recovery in the US and globally."-- Bloomberg KL shares continue uptrend mid-morninghttp://www.btimes.com.my/articles/20131128101038/Article/ http://www.btimes.com.my/articles/20131128101038/Article/Thu, 28 Nov 2013 10:10:39 +0800Shares on Bursa Malaysia continued the uptrend at mid-morning today, led by selected heavyweights. At 11am, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 4.47 points higher at 1,802.93. Gainers led losers 272 to 259, with 270 counters unchanged, 792 untraded and 48 others suspended. Volume stood at 473.32 million shares worth RM355.58 million. Top gainers included Petronas Dagangan, which rose 60 sen to RM31.10, while British American Tobacco was 48 sen higher at RM62.48. On the scoreboard, the Finance Index soared 26.89 points to 16,601.88, the Plantation Index was 9.55 points higher at 8,801.02 and the Industrial Index rose 1.06 points to 3,122. The FBM Emas Index increased 21.02 points to 12,522.63, the FBMT100 Index was 23.92 points better at 12,249.36, the FBM Ace advanced 25.99 points to 5,676.26 and the FBM 70 rose 1.1 point to 14,175.56. Among actives, Barakah Offshore added six sen to RM1.40, while Tiger Synergy and Ingenuity Consolidated eased half sen each to 21.5 sen and eight sen respectively. For the heavyweights, Maybank gained six sen to RM9.61, Sime Darby remained unchanged at RM9.64, while CIMB eased one sen to RM7.59.-- Bernama KLCI futures opens higherhttp://www.btimes.com.my/articles/20131128101345/Article/ http://www.btimes.com.my/articles/20131128101345/Article/Thu, 28 Nov 2013 10:13:45 +0800The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract (FKLI) on Bursa Malaysia Derivatives opened higher today, following the strong performance of the cash market.
At 9.50am, spot month November 2013 was 5.5 points higher at 1,806,
December 2013 and June 2014 rose 5.0 points each to 1,807 and 1,800
respectively, while March 2014 added 2.5 points to 1,801.5.
Volume stood at 3,530 lots, while open interest totalled 46,077 contracts.
The underlying FBM KLCI was 6.6 points higher at 1,805.06 after 50 minutes of trading.-- Bernama FTSE Bursa Malaysia update: 10.30amhttp://www.btimes.com.my/articles/20131128110205/Article/ http://www.btimes.com.my/articles/20131128110205/Article/Thu, 28 Nov 2013 11:02:05 +0800At 10.30am today, there were 254 gainers, 228 losers and 262 counters traded unchanged on the Bursa Malaysia.
The FBM-KLCI was at 1,802.30 up 3.84 points, the FBMACE was at
5,668.12 up 17.85 points, and the FBMEmas was at 12,520.30 up 18.68 points.
Turnover was at 405.204 million shares valued at RM302.568 million.-- Bernama US oil prices extend losseshttp://www.btimes.com.my/articles/20131128111036/Article/ http://www.btimes.com.my/articles/20131128111036/Article/Thu, 28 Nov 2013 11:10:36 +0800SINGAPORE: US oil prices fell further in Asian trade Thursday as dealers focused on an unexpectedly large surge in stockpiles, stoking concerns about oversupply in the world's biggest economy.
New York's main contract, West Texas Intermediate (WTI) for January delivery was down 17 cents at US$92.13 in mid-morning trade, after sinking US$1.38 in New York trade on Wednesday to its lowest closing price since May 31.
European benchmark Brent North Sea crude for January rose 10 cents to US$111.41.
The drop in WTI came after the US Energy Department on Wednesday reported that commercial stocks of crude oil increased by three million barrels last week, well above the 500,000 forecast by analysts in a Wall Street Journal survey.
Wednesday's rise in stockpiles was the latest in a series of surprisingly large builds in recent weeks. Since September 13, commercial crude stocks have increased 35.8 million, or more than 10 per cent.
"WTI crude oil suffered significant losses over the last two days, mostly driven by stockpiles concerns in the US," Singapore-based Phillip Futures said in a note.
"High US stockpiles are likely to be contributed by persistent strong production in the nation," it said, adding that output hit 8.02 million barrels in the week to November 22, the highest level since January 1989.
US oil prices traded above $100 a barrel for much of the summer, but have dipped below that since October 21 due to rising supplies and easing geopolitical tensions, including Washington's decision to hold off military action in Syria and better relations with Iran.
European benchmark Brent remained supported by escalating concerns over political strife in Libya, a member of the OPEC oil producing cartel, analysts said.
Protesters with a wide range of demands have been blocking oil and gas export terminals since late July, causing revenues to plunge 80 per cent.-- AFP Brent holds above US$111 on supply worrieshttp://www.btimes.com.my/articles/20131128112152/Article/ http://www.btimes.com.my/articles/20131128112152/Article/Thu, 28 Nov 2013 11:21:52 +0800SINGAPORE: Brent futures held above US$111 a barrel on Thursday on worries OPEC member Libya isn't anywhere close to ramping up output as winter oil demand increases, while a bigger-than-expected rise in US crude stock kept the gains in check.
Libya's Prime Minister Ali Zeidan said his government will be unable to pay public salaries and may have to seek loans if armed militias blockading oilfields and ports continue to choke off crude shipments.
But a surge in US crude production to the highest since 1989 may mean the upside for oil is limited once demand eases after winter due to a weak global growth outlook.
Brent crude gained 5 cents to US$111.36 a barrel by 0234 GMT, extending gains after settling 43 cents higher. US oil fell 16 cents US$92.14, hovering near the lowest in almost six months. It touched a low of US$91.77 on Wednesday, its weakest level since June 3.
"The weather and supply issues are supporting oil at the moment," said Jonathan Barratt, chief executive of commodity research firm Barratt's Bulletin in Sydney.
"But beyond that, we are seeing inventory levels are rising, the demand outlook is weak and there is a possibility of more supplies coming into the market."
Zeidan's warning and renewed armed clashes, including an attack on a centuries-old shrine near Tripoli, have added to a growing sense of chaos in Libya two years after the NATO-backed ouster of Muammar Gaddafi.
But Barratt expects the Libyan government to come to an agreement with the militias given that nearly all of the country's revenue comes from oil exports. Once that happens, supplies will rise by about 1 million barrels per day (bpd).
In addition, Iranian supplies may increase if Tehran follows through on its commitments reached in the breakthrough deal with world powers over the weekend. That, and dwindling US demand for imported oil, may push prices lower in the next few months.
"That's the next big question - how do you find a home for all the oil that US has and will stop importing?" said Barratt. "That's the elephant in the room."
Barratt sees an immediate support for US oil at US$92.50 and prices falling to US$90 if that level is breached. Over the next few months, there is a possibility that both the benchmarks head to around the US$80 a barrel mark, he said.
Crude oil stocks last week rose almost 3 million barrels to 391 million barrels, their highest levels for November since records began in 1982.
The EIA also said crude oil output last week exceeded 8 million bpd for the first time since January 1989. Earlier this month, its data showed that crude production exceeded imports for the first time in nearly two decades.-- Reuters Short-term rates to remain stablehttp://www.btimes.com.my/articles/20131128101522/Article/ http://www.btimes.com.my/articles/20131128101522/Article/Thu, 28 Nov 2013 10:15:22 +0800Short-term interbank rates are expected to remain stable today with Bank Negara Malaysia continuing its intervention to
reduce excess liquidity from the financial system.
The central bank estimated today's liquidity at RM23.46 billion in the conventional system and RM6.4 billion in Islamic funds.
The bank will conduct four RM1 billion conventional tenders for four days, seven days, 14 days and 28 days respectively.
It will also conduct two repo tenders of RM250 million for 32 days and RM200 million for 92 days, and three Al-Wadiah tender comprising RM1.5 billion for one day, RM1.3 billion for seven days and RM700 million for 11 days.
At 4pm, the bank will undertake a conventional overnight tender of up to RM19 billion and a RM2.6 billion Al-Wadiah overnight tender.-- Bernama Batista's OGX lost US$912m in Q3http://www.btimes.com.my/articles/20131128111539/Article/ http://www.btimes.com.my/articles/20131128111539/Article/Thu, 28 Nov 2013 11:15:39 +0800RIO DE JANEIRO: Brazilian tycoon Eike Batista's oil company, OGX, lost 2.12 billion reais (US$912 million) in the third quarter as it scrambled to start output from an offshore oil field that represents one of its last chances to remain afloat.
The results were announced by the company, formally known as OGX Petróleo e Gas Participações SA, on Wednesday, when it also resumed talks with holders of more than half its US$3.6 billion of bonds. OGX is seeking to cut that obligation as part of a court-supervised restructuring plan.
OGX, based in Rio de Janeiro, filed for bankruptcy protection with a Brazilian court on October 30, the largest ever bankruptcy case in Latin America.
"Management understands that, given the current economic and financial situation, the request for judicial recovery is the most appropriate measure to preserve the continuity of its business and protect the interests of the stakeholders," OGX said in its earnings statement.
OGX also reported net sales, or total sales minus sales taxes, of 172 million reais in the quarter. Earnings before interest, taxes, depreciation and amortization, or EBITDA, a measure of the ability to generate cash profit from operations, was 4 million reais.
OGX had US$85 million of available free cash at the end of the quarter. Losses were also driven by the need to write off the value of money-losing and underperforming assets, the statement said.
OGX missed a US$45 million bond payment in October and faces another US$100 million installment next month. Its failure to pay caused the largest high-yield corporate bond default in the world this year, according to Eric Rosenthal, senior director of Fitch Ratings in New York.
Instead of paying debt, the company spent US$815 million on capital expenses, much of it to start hooking up the OSX-3 oil production ship owned by sister shipbuilder OSX Brasil SA to wells in the Tubarao Martelo offshore field northeast of Rio de Janeiro.
The first of six wells in Tubarao Martelo is already connected to the ship and output is expected to start in early December, several weeks behind the latest forecast date. Production still awaits an environmental license.
OGX expects to produce an average of about 17,000 barrels a day of oil from the field in 2014, generating about US$645 million in gross oil sales revenue, based on an oil certification report by Dallas-based hydrocarbon-resource certification company Degolyer and MacNaughton.
Attempts to get bondholders to agree to a swap of their debt for Batista's shares in the company have so far been unsuccessful, with some investors complaining that the company's investments were throwing money that could be used to pay debt into projects with little chance of return.
Others questioned payments to OSX Brasil SA, part of Batista's EBX group, which owns the oil-production vessels leased by OGX.
OGX, though, now has nearly six months to deliver a restructuring plan to a Rio de Janeiro judge.
Negotiations "will continue until a definitive agreement is reached," after which creditors will have the opportunity to approve or reject the accord, the filing added.
The company, which tycoon Batista founded in 2007 and at its peak was valued at around $30 billion, has spent more than 10 billion reais on exploration and production activities since 2007.
OSX, the Batista-controlled company, also sought court protection from creditors in the wake of OGX's bankruptcy filing. OSX depends on OGX for nearly all its current and future income.
Pacific Investment Management Co, or Pimco, the world's largest bond fund, and half a dozen money management companies are among bondholders that stand to lose millions if OGX fails to emerge from bankruptcy proceedings.
Investors also worry that a lengthy legal battle is on the horizon in Brazil, where recent debt restructuring and bankruptcy proceedings have turned out badly for them.
A committee formed by Pimco and the other investment funds picked investment banking firm Rothschild in August as its adviser on the matter, two sources told Reuters at the time. Law firms Cleary Gottlieb Steen and Hamilton LLP and Pinheiro Neto Advogados were also hired, both sources added.
The selection process followed a decision by OGX in late July to hire Blackstone Group LP and Lazard Ltd to help the company review its capital structure. OGX's main financial adviser is Rio de Janeiro-based Angra Partners.
OGX faces the December interest coupon payment on about US$2.5 billion bonds due in 2018. The price of the 8.5 per cent bond was at about 9 cents on the dollar on Wednesday, according to Thomson Reuters data.
Shares in OGX, which have fallen 97 per cent over the past year, rose 7.1 per cent to 0.15 reais on Wednesday in São Paulo.-- Reuters Gold futures open lowerhttp://www.btimes.com.my/articles/20131128101646/Article/ http://www.btimes.com.my/articles/20131128101646/Article/Thu, 28 Nov 2013 10:16:46 +0800Gold futures contracts on Bursa Malaysia Derivatives opened lower today amid fear among the investors that the US Federal Reserve would soon begin rolling back its stimulus programme.
At 9.08am, spot month November shed 24 ticks at RM128.90 per gramme and December 2013 was traded at RM129.15 per gramme, down 26 ticks, with seven lots traded.
Open interest stood at 1,148 contracts.-- Bernama Gold down 72 sen at RM124.59http://www.btimes.com.my/articles/20131128101842/Article/ http://www.btimes.com.my/articles/20131128101842/Article/Thu, 28 Nov 2013 10:18:42 +0800The physical price of gold as at 9.30am stood at RM124.59 per gramme, down 72 sen from RM125.31 at 5pm yesterday.-- Bernama
Dow and S&P 500 hit recordshttp://www.btimes.com.my/articles/20131128102503/Article/ http://www.btimes.com.my/articles/20131128102503/Article/Thu, 28 Nov 2013 10:25:03 +0800NEW YORK: The Dow and the SandP 500 closed at record highs on Wednesday, led by Hewlett-Packard's jump a day after the personal computer maker's earnings, while the Nasdaq finished at a 13-year high.
The tech-heavy Nasdaq got its biggest boost from Apple Inc, which rose 2.4 per cent to US$545.96, the stock's highest level since January. Technology stocks have lagged the broader market this year, with the SandP information technology sector index rising almost 21 per cent, compared with the SandP 500's 27 per cent surge.
"We're seeing some rotation into the tech sector, which was left out of broader market gains," said Frank Davis, director of sales and trading at LEK Securities, in New York.
Hewlett-Packard Co shares shot up nine per cent to US$27.36, the highest since August, after the company reported stronger-than-expected results late Tuesday.
Expectations were low for HP's fourth quarter following a disappointing third quarter and after tech bellwethers IBM and Cisco Systems Inc reported poor results.
Overall trading volume was light at 4.37 billion shares, according to BATS. Many traders were out for the Thanksgiving holiday, as the US stock market will be closed on Thursday. On Friday, the market will close at 1pm (1800 GMT).
The Dow Jones industrial average rose 24.53 points or 0.15 per cent, to end at 16,097.33, a record closing high. The SandP 500 gained 4.48 points or 0.25 per cent, to finish at 1,807.23, a record closing high. The Nasdaq Composite added 27.001 points or 0.67 per cent, to close at 4,044.75.
Energy was the day's worst-performing sector. The SandP index of energy shares fell 0.7 per cent after a higher-than-expected increase in US crude oil inventories.
US light crude oil futures fell 1.5 per cent to settle at US$92.30 a barrel, which may translate into lower gasoline prices for consumers.
Weekly jobless claims for unemployment benefits unexpectedly fell in the latest week, a sign of steady improvement in the labor market. Analysts were expecting an increase in claims.-- Reuters
ROME — Having spent months manufacturing procedural delays or conjuring political melodrama, Silvio Berlusconi on Wednesday could no longer stave off the inevitable: Italy's senate stripped him of his parliamentary seat, a dramatic and humiliating expulsion, even as other troubles loom on his horizon.
In the hours before the vote, Italian senators read speeches for or against Mr. Berlusconi, the once-powerful former prime minister. Mr. Berlusconi responded with an outdoor rally in central Rome, transforming the day into a televised, split-screen standoff: on one screen was the former prime minister, declaring himself a victim of persecution and pledging to remain a political force; on the other, the Italian senate, with a majority of rival politicians, who finished their speeches and lowered the boom.
His expulsion came in a series of votes, and after a day of passionate arguments, the reaction in the chamber after the final tally was striking: a resigned silence.
Mr. Berlusconi, 77, is now staring at a cascade of stubborn realities. His removal from the senate means he is without elective office for the first time in roughly two decades and that he has lost the special immunities awarded to lawmakers.
With other legal cases underway against him – and the possibility that new litigation could be filed – Mr. Berlusconi is now far more vulnerable than when, as prime minister, he seemed virtually untouchable, batting away sex and corruption scandals.
He also is expected to soon start performing one year of community service for the tax fraud conviction that is the basis of his removal from the senate. Moreover, a court in Milan has ruled that Mr. Berlusconi cannot seek any public office for the next two years. For a man who once dominated Italy with a ribald swagger, Mr. Berlusconi is suddenly a sharply reduced figure, having recently watched several longtime lieutenants break away from him.
Determined to show his political viability, Mr. Berlusconi bused in supporters from around Italy for the rally outside his palace in central Rome. They waved flags, braved the November cold and sang songs hailing their leader.
"It's just unfair that they would condemn him when Parliament is full of people who are way worse than him, who have avoided taxes, stolen public money and worked against the people," said Alessandra Abbate, 49, a supporter from Bologna. "This country would be nothing without him."
Mr. Berlusconi appeared at 4:35 p.m., before the senate had voted, and stood on a cheery, sky-blue stage erected for the occasion. He repeated his familiar complaints against Italy's judiciary, blaming reckless magistrates for his legal problems.
"It is a bitter day, a day of mourning for democracy," Mr. Berlusconi told the crowd.
Mr. Berlusconi's undisputed reign as leader of Italy's powerful center-right political movement was dealt a crippling blow in July when the country's highest court upheld a prison term against him on the tax fraud conviction. His effort to avoid expulsion from the Senate was fatally undermined earlier this month when his party's unity ruptured.
Mr. Berlusconi's longtime protégé, Angelino Alfano, announced on Nov. 15 that he and other former lieutenants would refuse to join the former prime minister's re-branded political party, Forza Italia (or Go Italy). Instead, Mr. Alfano formed the New Center-Right, attracting many lawmakers in Parliament who had been committed to Mr. Berlusconi and eliminating the possibility he could beat an expulsion vote.
Despite his litany of troubles, lawyers for Mr. Berlusconi have dismissed as highly unlikely the possibility that he could face arrest over other legal transgressions that have shaped his political legacy, including paying for sex with a minor.
Travelers at LaGuardia Airport in New York, on Nov. 26, 2013.
Inches of rain, snow and sleet are pummeling parts of the east coast Wednesday as a massive storm system continues its crawl across the country just in time to wreak havoc on Thanksgiving travel.
With more snow and ice still to come, Winter Storm Boreas is projected to have affected about 58 million Americans by Thanksgiving morning, the Weather Channel reports. More than 200 flights were delayed on Tuesday, the Los Angeles Times reports, and more than 5,000 saw delays, in what could cause a cascade of travel woes throughout the long holiday weekend. Airports in Chicago, Denver, Cleveland and Charlotte saw some of the worst problems.
The National Weather Service has issued winter storm warnings and advisories for "the Tennessee and Ohio Valleys eastward across the Appalachians to the interior mid-Atlantic region, the lower Great Lakes as well as interior New England." Still, the biggest problem for millions of travelers this week could be the gusty winds forecast to mix in with that wintery precipitation.
Already there have been flight cancellations, road closures, hundreds of car accidents and at least 10 deaths from crashes.
Sustained winds in New York City, for example, are forecast to hover around 20 miles per hour on Wednesday, with potential gusts of up to 55 miles per hour, according to CNN. Those winds will be only slightly calmer on Thursday – Thanksgiving Day. There's even a chance high winds will ground some of the city's famous Thanksgiving Day Parade balloons.
Similar windy conditions are expected throughout the northeast in combination with wintery weather, potentially creating a travel nightmare. Gusty winds can cause long delays at airports, sending reverberations through the entire country's air traffic control system. Freezing rain is a safety hazard for aircraft as well — ice buildup can reduce the amount of lift generated by an airplane's wings — so expect delays as airport crews work to de-ice aircraft before takeoff.
Drivers, too, will be slowed by the combinations of wind and rain or wind and snow. Visibility will be reduced and roads will be slippery, leading to slower and more dangerous than normal commutes. Those on the roads this week are advised to take caution to avoid accidents, as this storm's already caused hundreds of collisions across the country.
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