- Although U.S. markets are closed for the Labor Day holiday, oil prices have been dropping sharply in overseas trading.
- Politicians are struggling with the political ramifications of Gustav in relation to the disrupted opening of the Republican National Convention today.
Hurricane Gustav was downgraded to Category 2 this morning as it approached landfall on the Louisiana coast west of New Orleans. Maximum winds are 110 mph, and the storm is continuing to move northwest at 16 miles per hour. The center of Gustav is located about 80 miles south southwest of New Orleans and about 20 miles from Port Fourchon on the Louisiana coast. On this track, the storm will make landfall within the next 2 hours, or by about 10 am local time.
Based on the diminished strength of the storm and its distance west of the city, the New Orleans Times-Picayune reports that "Corps of Engineers chiefs say they anticipate no storm surge flooding due to Hurricane Gustav."
Images: Gustav satellite view from The Weather Channel (upper), Gustav track forecast from HAMweather (lower)