Florida issues tropical storm warning for Panhandle region as Fred approaches

• Meanwhile, Tropical Storm Grace to hit parts of the Caribbean
• Fred's maximum sustained winds at 40mph Sunday morning

Florida's governor declared a state of emergency for the state's Panhandle region as Tropical Storm Fred moved through the Gulf of Mexico early on Sunday and parts of the Caribbean were preparing for the impact from Tropical Storm Grace.

Fred was forecast to move across the Gulf before reaching the coast Monday night or Tuesday morning, forecasters said. They said people from Alabama to the central Florida Panhandle should monitor the system's progress.