LA fires: ‘It’s an apocalypse’ – families return to homes reduced to ruins
More than 20,000 people who evacuated the Pacific Palisades on Tuesday have watched on TV for three days as their neighbourhood has burned without respite.
They have heard the statistics – about more than 50% of the buildings here being reduced to rubble. But it is not sufficient preparation for what they will see in real life.
“I’ve been telling everyone to brace themselves for this moment,” says Rachel Darvish, a lawyer who has lived in Pacific Palisades her whole life.
My team and I ride in a car with her as she returns for the first time since wildfire ripped through this community.
LA fires latest: Number of dead doubles as a blaze is investigated as possible arson
Water is dropped by helicopter on the Kenneth Fire in the West Hills section of Los Angeles (AP Photo/Ethan Swope)
The destruction left behind by the Palisades Fire in the Pacific Palisades neighbourhood of Los Angeles., California. Pic: AP
The first place we stop is her modest childhood home where she lived until she was nine. It’s now a mound of dust and twisted metal, only a gate on to the pavement still standing.
“People think the Palisades are full of celebrities,” she says. “But this is where hardworking families come so that the kids can be by the beach and have a good life.”
She points across the road to another house which is now contorted by fire and covered in ash.
“That’s where I would spend July 4th at my neighbour’s,” she says. “We would go round to use their pool. I have the best memories here.”
As Rachel is talking she is interrupted by a deafening alarm from her phone. “It’s another emergency evacuation order,” she says. “This time for Malibu.”
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Progress of LA Kenneth fire ‘stopped’
Even though the winds have subsided, the threat of new blazes remains and each new evacuation order or warning causes renewed panic among local people.
Next up on the misery tour is Rachel’s three-year-old daughter’s nursery school. There is nothing left of the main building.
“It’s an apocalypse,” she says. “This is just so devastating. And somehow we are supposed to come back and rebuild.”
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‘Everything we love has gone’
As we are driving away from the school, she spots a familiar face next to a black SUV with tinted windows. “Is that Gavin Newsom?” she asks. “It is, it’s the governor,” she says, slapping the back of the car seat before jumping out to speak to him.
“Mr governor,” she says, chasing him down the street as Newsom holds a phone to his ear.
“Please, tell me what you’re going to do,” she says. Newsom replies that he is on the phone to President Biden.
“Can I hear? Can I hear your call? Because I don’t believe it,” she responds.
Newsom points to his phone, claiming he has poor phone service and was unable to reach the president.
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Biden on LA fires: ‘We’ll help you’
Rachel then asks him why there was “no water in the hydrants?”
As firefighters battled a raging inferno on Tuesday, fire hydrants ran dry because of the huge demands.
Residents are demanding answers about whether there are wider vulnerabilities in city water supply systems and whether they are adequate to tackle wildfires on this scale.
“It has to be different next time round,” Rachel says.
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As estimated losses surge there is still zero containment of the Palisades fire. Officials say they don’t know the death toll and that dogs will be brought in to search the rubble for fatalities.
On the Pacific coast highway in Pacific Palisades, Geoffrey Axelrod and his partner Nicole hug each other tightly as they return to the ruins that are their home. Every one of the houses in this enclave has been destroyed.
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Satellite images show fire destruction
“This is just a little beach community,” says Geoffrey, who has lived here since 2015.
“I know everyone here and it’s all gone.
“My dearest friend Galene, who I’ve known for my whole life lived here,” he says, pointing to the wreckage next door.
“I taught my daughter to ride her bike on this street, how to swim in the pool. It’s so sad.”
Together Geoffrey and Nicole sift through the dust, trying to retrieve any belongings that have survived the fire.
In a plastic box they place everything they can find. There are a couple of turtle figurines, a garden gnome and a house name plaque.
It’s very little, but in a place where the loss is so huge, it means so much.
US
Financial markets were always going to respond to Trump tariffs but they’re also battling with another problem
Stock markets around the world fell on Thursday after Donald Trump announced sweeping tariffs – with some economists now fearing a recession.
The US president announced tariffs for almost every country – including 10% rates on imports from the UK – on Wednesday evening, sending financial markets reeling.
While the UK’s FTSE 100 closed down 1.55% and the continent’s STOXX Europe 600 index was down 2.67% as of 5.30pm, it was American traders who were hit the most.
Trump tariffs latest: US stock markets tumble
All three of the US’s major markets opened to sharp losses on Thursday morning.
The S&P 500 is set for its worst day of trading since the COVID-19 pandemic. File pic: AP
By 8.30pm UK time (3.30pm EST), The Dow Jones Industrial Average was down 3.7%, the S&P 500 opened with a drop of 4.4%, and the Nasdaq composite was down 5.6%.
Compared to their values when Donald Trump was inaugurated, the three markets were down around 5.6%, 8.7% and 14.4%, respectively, according to LSEG.
Worst one-day losses since COVID
As Wall Street trading ended at 9pm in the UK, two indexes had suffered their worst one-day losses since the COVID-19 pandemic.
The S&P 500 fell 4.85%, the Nasdaq dropped 6%, and the Dow Jones fell 4%.
It marks Nasdaq’s biggest daily percentage drop since March 2020 at the start of COVID, and the largest drop for the Dow Jones since June 2020.
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The latest numbers on tariffs
‘Trust in President Trump’
White House press secretary Karoline Leavitt told CNN earlier in the day that Mr Trump was “doubling down on his proven economic formula from his first term”.
“To anyone on Wall Street this morning, I would say trust in President Trump,” she told the broadcaster, adding: “This is indeed a national emergency… and it’s about time we have a president who actually does something about it.”
Later, the US president told reporters as he left the White House that “I think it’s going very well,” adding: “The markets are going to boom, the stock is going to boom, the country is going to boom.”
He later said on Air Force One that the UK is “happy” with its tariff – the lowest possible levy of 10% – and added he would be open to negotiations if other countries “offer something phenomenal”.
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How is the world reacting to Trump’s tariffs?
Economist warns of ‘spiral of doom’
The turbulence in the markets from Mr Trump’s tariffs “just left everybody in shock”, Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston, told Reuters.
He added that the economy could go into recession as a result, saying that “a lot of the pain, will probably most acutely be felt in the US and that certainly would weigh on broader global growth as well”.
Meanwhile, chief investment officer at St James’s Place Justin Onuekwusi said that international retaliation is likely, even as “it’s clear countries will think about how to retaliate in a politically astute way”.
He warned: “Significant retaliation could lead to a tariff ‘spiral of doom’ that could be the growth shock that drags us into recession.”
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Tariffs about something more than economics: power
It comes as the UK government published a long list of US products that could be subject to reciprocal tariffs – including golf clubs and golf balls.
Running to more than 400 pages, the list is part of a four-week-long consultation with British businesses and suggests whiskey, jeans, livestock, and chemical components.
Meanwhile, Prime Minister Sir Keir Starmer said on Thursday that the US president had launched a “new era” for global trade and that the UK will respond with “cool and calm heads”.
It also comes as Canadian Prime Minister Mark Carney announced a 25% tariff on all American-imported vehicles that are not compliant with the US-Mexico-Canada trade deal.
He added: “The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed the free and open exchange of goods and services, is over. This is a tragedy.”
Tanking stock markets, collapsing world orders, devastating trade wars; economists with their hair ablaze are scrambling to keep up.
But as we try to make sense of Donald Trumps’s tariff tsunami, economic theory only goes so far. In the end this surely is about something more primal.
Power.
Understanding that may be crucial to how the world responds.
Yes, economics helps explain the impact. The world’s economy has after all shifted on its axis, the way it’s been run for decades turned on its head.
Instead of driving world trade, America is creating a trade war. We will all feel the impact.
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PM will ‘fight’ for deal with US
Donald Trump says he is settling scores, righting wrongs. America has been raped, looted and pillaged by the world trading system.
But don’t be distracted by the hyperbole – and if you think this is about economics alone, you may be missing the point.
Above all, tariffs give Donald Trump power. They strike fear into allies and enemies, from governments to corporations.
This is a president who runs his presidency like a medieval emperor or mafia don.
It is one reason why since his election we have seen what one statesman called a conga line of sycophants make their way to the White House, from world leaders to titans of industry.
The conga line will grow longer as they now redouble their efforts hoping to special treatment from Trump’s tariffs. Sir Keir Starmer among them.
President Trump’s using similar tactics at home, deploying presidential power to extract concessions and deter dissent in corporate America, academia and the US media. Those who offer favours are spared punishment.
His critics say he seeks a form power for the executive or presidential branch of government that the founding fathers deliberately sought to prevent.
Whether or not that is true, the same playbook of divide and rule through intimidation can now be applied internationally. Thanks to tariffs
Each country will seek exceptions but on Trump’s terms. Those who retaliate may meet escalation.
This is the unforgiving calculus for governments including our own plotting their next moves.
The temptation will be to give Trump whatever he wants to spare their economies, but there is a jeopardy that compounds the longer this goes on.
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Could America’s traditional allies turn to China? Pic: AP
Malcolm Turnbull, the former Australian prime minister who coined the conga line comparison, put it this way: “Pretty much all the international leaders I have seen that have sucked up to Trump have been run over. The reality is if you suck up to bullies, whether it’s global affairs or in the playground, you just get more bullying.”
Trading partners may be able to mitigate the impact of these tariffs through negotiation, but that may only encourage this unorthodox president to demand ever more?
Ultimately the world will need a more reliable superpower than that.
In the hands of such a president, America cannot be counted on.
When it comes to security, stability and prosperity, allies will need to fend for themselves.
And they will need new friends. If Washington can’t be relied on, Beijing beckons.
America First will, more and more, mean America on its own.
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