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Texas officials face scrutiny over response to catastrophic and deadly flooding

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Before heading to bed before the Fourth of July holiday, Christopher Flowers checked the weather while staying at a friend’s house along the Guadalupe River. Nothing in the forecast alarmed him.

Hours later, he was rushing to safety: He woke up in darkness to electrical sockets popping and ankle-deep water. Quickly, his family scrambled nine people into the attic. Phones buzzed with alerts, Flowers recalled Saturday, but he did not remember when in the chaos they started.

“What they need is some kind of external system, like a tornado warning that tells people to get out now,” Flowers, 44, said.

The destructive fast-moving waters that began before sunrise Friday in the Texas Hill Country killed at least 43 people in Kerr County, authorities said Saturday, and an unknown number of people remained missing. Those still unaccounted for included 27 girls from Camp Mystic, a Christian summer camp along a river in Kerr County where most of the dead were recovered.

But as authorities launch one of the largest search-and-rescue efforts in recent Texas history, they have come under intensifying scrutiny over preparations and why residents and youth summer camps that are dotted along the river were not alerted sooner or told to evacuate.

The National Weather Service sent out a series of flash flood warnings in the early hours Friday before issuing flash flood emergencies — a rare alert notifying of imminent danger.

Local officials have insisted that no one saw the flood potential coming and have defended their actions.

“There’s going to be a lot of finger-pointing, a lot of second-guessing and Monday morning quarterbacking,” said Republican U.S. Rep. Chip Roy, whose district includes Kerr County. “There’s a lot of people saying ‘why’ and ‘how,’ and I understand that.”

When the warnings began

An initial flood watch — which generally urges residents to be weather-aware — was issued by the local National Weather Service office at 1:18 p.m. Thursday.

It predicted between 5 to 7 inches (12.7 to 17.8 centimeters) of rain. Weather messaging from the office, including automated alerts delivered to mobile phones to people in threatened areas, grew increasingly ominous in the early morning hours of Friday, urging people to move to higher ground and evacuate flood-prone areas, said Jason Runyen, a meteorologist in the National Weather Service office.

At 4:03 a.m., the office issued an urgent warning that raised the potential of catastrophic damage and a severe threat to human life.

Jonathan Porter, the chief meteorologist at AccuWeather, a private weather forecasting company that uses National Weather Service data, said it appeared evacuations and other proactive measures could have been undertaken to reduce the risk of fatalities.

“People, businesses, and governments should take action based on Flash Flood Warnings that are issued, regardless of the rainfall amounts that have occurred or are forecast,” Porter said in a statement.

Officials say they didn’t expect this

Local officials have said they had not expected such an intense downpour that was the equivalent of months’ worth of rain for the area.

“We know we get rains. We know the river rises,” said Kerr County Judge Rob Kelly, the county’s top elected official. “But nobody saw this coming.”

Kerrville City Manager Dalton Rice said he was jogging along the river early in the morning and didn’t notice any problems at 4 a.m. A little over an hour later, at 5:20 a.m., the water level had risen dramatically and “we almost weren’t able to get out of the park,” he said.

Rice also noted that the public can become desensitized to too many weather warnings.

No county flood warning system

Kelly said the county considered a flood warning system along the river that would have functioned like a tornado warning siren about six or seven years ago, before he was elected, but that the idea never got off the ground because of the expense.

“We’ve looked into it before … The public reeled at the cost,” Kelly said.

He said he didn’t know what kind of safety and evacuation plans the camps may have had.

“What I do know is the flood hit the camp first, and it came in the middle of the night. I don’t know where the kids were,” he said. “I don’t know what kind of alarm systems they had. That will come out in time.”

U.S. Secretary of Homeland Security Kristi Noem said Saturday it was difficult for forecasters to predict just how much rain would fall. She said the Trump administration would make it a priority to upgrade National Weather Service technology used to deliver warnings.

“We know that everyone wants more warning time, and that’s why we’re working to upgrade the technology that’s been neglected for far too long to make sure families have as much advance notice as possible,” Noem said during a press conference with state and federal leaders.

Weather service had extra staffers

The National Weather Service office in New Braunfels, which delivers forecasts for Austin, San Antonio and the surrounding areas, had extra staff on duty during the storms, Runyen said.

Where the office would typically have two forecasters on duty during clear weather, they had up to five on staff.

“There were extra people in here that night, and that’s typical in every weather service office — you staff up for an event and bring people in on overtime and hold people over,” Runyen said.



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Penny Pennington of Edward Jones: ‘We’re a health and wellbeing company’

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Good morning. The U.S. economy has been surprisingly resilient while the tariff wars rage even though prices may go up as inventories dwindle, consumers are becoming more value conscious, and investors are by turns sanguine and skittish. (Witness their reaction to the specter of President Trump potentially firing U.S. Federal Reserve Chair Jerome Powell, as my colleague Jim Edwards noted in this piece.) 

I had a chance to speak with several business leaders at a roundtable convened by Edward Jones Managing Partner Penny Pennington recently at the Aspen Ideas Festival. Her concern was, “how do we help future generations build wealth in this uncertain economy?” With challenges like high home prices and an uncertain job market, she takes a holistic view of the customer. “We’re a health and wellbeing company.”

The theme of investing took many forms. Bev Anderson, CEO of BECU credit union, focused on creating financial opportunities, while Gallup CEO Jon Clifton talked about the need for better global indicators of how we feel amid a rise in negative emotions. Southern Company CEO Chris Womack is expanding his energy infrastructure amid surging demand at the country’s second-largest utility. Optimism about the power of technology and innovation was mixed with worries about geopolitics and the state of civil society.

In an era of growing complexity and rapid change, face-to-face conversations have become even more important for sharing ideas and building trusted relationships.  That’s why the dinners hosted by CEO Initiative members around the country have been so valuable. It’s why I’m excited by our upcoming Fortune Global Forum on October 26 and 27 in Riyadh.

Among the CEOs who have confirmed their attendance, so far, are Qualcomm CEO Cristiano Amon, Ed Bastian of Delta Air Lines, Tony Elumelu of United Bank for Africa, Jane Fraser of Citigroup, Mahindra & Mahindra Anish Shah, Catherine MacGregor of ENGIE, Honeywell’s Vimal Kapur, Gilberto Tomazoni of JBS, and Jenny Johnson of Franklin Templeton. You can find out more here and click here if you’d like to apply to attend.

Contact CEO Daily via Diane Brady at diane.brady@fortune.com

Top news

Trump reportedly sent Epstein a birthday note

According to a must-read investigation by the WSJ, the note to Jeffrey Epstein featured a cartoon of a naked woman and said, “Happy Birthday — and may every day be another wonderful secret.” The president denied writing the letter. “This is not me. This is a fake thing. It’s a fake Wall Street Journal story,” he said. On social media, he added, “I don’t draw pictures. I told Rupert Murdoch it was a Scam, that he shouldn’t print this Fake Story. But he did, and now I’m going to sue his ass off, and that of his third rate newspaper.” He also asked the attorney general to release “any and all pertinent Grand Jury testimony, subject to Court approval,” on Epstein. Here is a timeline of the relationship between Trump and Epstein.

How Sam Altman became Trump’s best AI buddy

Initially cut out of the president’s circle by Elon Musk, Altman has been quietly cultivating his relationship with the president, the WSJ reports. With Musk out of the way, Altman is now more influential in the White House. The maneuvering required Altman to renounce his former public dislike of Trump. 

Trump vs. corn syrup

President Trump’s announcement Wednesday claiming that Coca-Cola would substitute corn syrup for raw sugar in their products “cost thousands of American food manufacturing jobs … all with no nutritional benefit,” the CEO of the Corn Refiners Association said on Wednesday. The announcement also caused significant dips in the stock prices of some corn syrup manufacturers between Wednesday and Thursday.

Morgan Stanley on tariffs

Morgan Stanley’s head of US policy, Monica Guerra, describes President Trump’s tariffs as a “mosaic” and “idiosyncratic.” Here’s how much she thinks they’ll bring to the U.S. Treasury—and how they could fuel higher inflation

Europe tightens sanctions on Russia

The EU will impose a new set of sanctions on Russia targeting its oil, gas and banking sectors. Twenty more banks will be cut from the SWIFT payments system and there will be new restrictions on Russian oil refined outside of Russia.

Meta poaches more AI talent from Apple

Former Apple employees Mark Lee and Tom Gunter will join Meta’s Superintelligence Labs, according to Bloomberg. They will join Ruoming Pang, the former head of Apple’s large language model unit, who joined Meta a few weeks ago. Pang was reportedly offered $200 million in compensation to make the move.

Deep dive on the growth of private credit

JPMorgan recently dedicated $50 billion to debt financing for clients doing acquisitions and other deals. Apollo, Ares, and KKR are extending credit that they originate independently to lock in borrowers for years. In exchange for tying up that long-term money, borrowers are willing to pay higher interest rates than they would get from banks.

Fortune 500 Power Moves

  • Kenvue (No. 281) appointed Kirk L. Perry as interim CEO, effective July 14, following the sudden resignation of former CEO Thibaut Mongon. Perry most recently served as President and CEO of Circana. 
  • Henry Schein (No. 333) announced that Stanley M. Bergman will retire as CEO at the end of the year. Schein’s departure comes after 45 years at the company and 35 years as CEO. 
  • Old Republic International (No. 463) appointed Alan Pavlic as CEO, effective immediately. Pavlic joined the company in 2005 and has served as President since 2013. 

The markets

S&P 500 futures ticked up 0.14% this morning, premarket. The index closed up 0.54% yesterday. STOXX Europe 600 was up 0.4% in early trading. The UK’s FTSE 100 was up 0.32% this morning, placing it above 9,000, which would be an all-time high if it holds. China’s CSI 300 was up 0.6%. Japan’s Nikkei 225 was down 0.21%. Bitcoin is still above $118K.

From the analysts

ING on the Fed: “Firmer retail sales and subdued jobless claims numbers suggest the Fed will keep rates on hold for now as officials assess the impact of tariffs on inflation,” per James Knightley.

Oxford Economics on jobless claims: “Continued claims continued their march higher in the week July 5, underscoring how unemployed workers are finding it difficult to find new jobs in a labor market where hiring is slow. Claims for benefits by federal employees posted the largest one-week increase since February. We expect these claims will rise further now that Supreme Court has cleared the way to proceed with layoffs of federal workers while legal challenges continue,” Nancy Vanden Houten.

WARC on Reddit’s revenue and user growth: “Reddit has demonstrated remarkable year-on-year growth with global advertising revenue projected to reach $1.8 billion in 2025 (+49.6%) and grow to $2.5 billion by 2026 (+39.0%), positioning itself as a formidable competitor to established Big Tech and digital platforms. … The platform’s advertising reach has grown to 606 million users — representing nearly one in 14 people worldwide, according to Datareportal analysis, surpassing X’s reach (586 million) and approaching Snapchat (709 million).”

Around the watercooler

Amazon Ring’s founder is back as CEO with a hard pivot to AI. How Jamie Siminoff went from ‘Shark Tank’ reject to $1 billion brand by Sydney Lake

The safety net companies put in place for themselves to stave off higher prices induced by tariffs is fraying by Paolo Confino

How much is AI really replacing jobs? Goldman Sachs looks under the hood and has 3 takeaways to defuse the hype by Nick Lichtenberg and Fortune Intelligence

Coinbase’s new super app Base is a game changer—and could become a serious money maker by Jeff John Roberts

CEO Daily is compiled and edited by Joey Abrams and Jim Edwards.

This is the web version of CEO Daily, a newsletter of must-read global insights from CEOs and industry leaders. Sign up to get it delivered free to your inbox.



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Trump has been diagnosed with chronic venous insufficiency. Here’s what that means

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Swollen legs led to President Donald Trump being diagnosed with what’s called chronic venous insufficiency. It’s a fairly common condition among older adults but requires a thorough checkup to rule out more serious causes of swelling in the legs. Here are some things to know.

What is chronic venous insufficiency?

Chronic venous insufficiency, or CVI, happens when veins in the legs can’t properly carry blood back to the heart. That can lead to blood pooling in the lower legs. In addition to swelling, usually around the feet and ankles, symptoms can include legs that are achy, heavy feeling or tingly, and varicose veins. Severe cases could trigger leg sores known as ulcers.

What causes chronic venous insufficiency?

Overcoming gravity to pump blood from the feet all the way up to the heart is a challenge, especially when someone is standing or sitting for long periods. So legs veins are lined with one-way valves that keep blood from sliding backward on that journey. Anything that damages those valves can lead to chronic venous insufficiency. Risk factors can include blood clots, vein inflammation known as phlebitis or being overweight.

How is chronic venous insufficiency diagnosed and treated?

Doctors must rule out serious causes of leg swelling, such as heart problems, kidney disease or blood clots. Ultrasound exams of the leg veins can help confirm chronic venous insufficiency. According to the Cleveland Clinic, treatment can include wearing compression stockings, elevating the legs and achieving a healthy weight. Also exercise, especially walking, is recommended — because strong leg muscles can squeeze veins in a way that helps them pump blood. Medications and medical procedures are available for more advanced cases.

Introducing the 2025 Fortune 500, the definitive ranking of the biggest companies in America. Explore this year’s list.



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Union Pacific and Norfolk Southern are in merger talks to create North America’s largest railroad

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The merger discussions began during the first quarter of this year, according to a person familiar with the talks who isn’t authorized to discuss them publicly. It would combine the largest and smallest of the country’s six major freight railroads.

Both railroads declined to comment.

Within the industry there is widespread debate over whether such a merger would be approved by the Surface Transportation Board even though those regulators approved the deal that created CPKC railroad two years ago with the Canadian Pacific’s $31 billion acquisition of Kansas City Southern railroad.

That merger combined the two smallest major railroads in North America and left only six major freight railroads. But it was the first major rail merger approved in more than two decades.

The bar for railroad mergers in the U.S. was raised substantially at the start of the century after a disastrous combination of Union Pacific and Southern Pacific in 1996 that snarled rail traffic for an extended period, followed by the 1999 split of Conrail between Norfolk Southern and CSX, which created backups in the East.

To be approved, any major rail merger must show it will enhance competition and serve the public interest under the 2001 rules. The CPKC merger was not judged under those rules because Kansas City Southern had an exemption from them as the smallest major freight railroad at the time.

Union Pacific CEO Jim Vena talked earlier this year about the potential benefits of such a merger because it would streamline deliveries all across the country by eliminating the delays that come along with one railroad handing shipments over to another. Plus it would simplify shipping for the companies that rely on railroads to deliver their raw materials and finished products.

But in the past, some shippers have raised concerns about the consequences of being left with even fewer options to ship their goods because the major railroads are already so powerful.

Some investors have long argued that the industry should eventually consolidate down to two East-West railroads crossing the United States alongside the two railroads that already cross Canada. But regulators have been skeptical and taken a cautious approach. Any proposed deal would face a lengthy STB review. That board is currently evenly split between two Republicans and two Democrats with one seat open.

Citi Research analyst Ariel Rosa said in a research note that a major transcontinental railroad merger “would likely prove costly and time consuming, risking a years-long distraction to management, while facing significant pushback from regulators, politicians, employee unions, competitors, customers, and other stakeholders.”

Union Pacific, which is based in Omaha, Nebraska, generated $24.3 billion revenue last year as its more than 30.000 employees delivered freight all across the western United States. Norfolk Southern reported $12.1 billion revenue and has roughly 20,000 employees and its headquarters is in Atlanta.

Norfolk Southern stock gained 3.7% during the day Thursday and rose another 4.7% to hit $282.50 in after-market trading following the Journal’s story.



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