speeds of 120 miles per hour as it turns off the texas coast. forecasters are labeling it a life-threatening storm. it is fueled by warm gulf of mexico waters. harvey is forecast to make landfall in texas late last night -- late tonight or early saturday. venezuela.nctions on in bars dealings in new debt and equity issued by president nicolas maduro's socialist government and the state owned oil company. he is also banning transactions. by the other public sector. the violence this month in charlottesville. under fire from democrats and republicans. there was violence on, in his words, many size.

>> under no circumstances would i resign. mark: after last month's shooting in orlando. they notify next of kin. they report released today says the rush to get to the scene, agents didn't bring the proper equipment. 49 people were killed during the june 2016 shooting at was the worst mass shooting in modern u.s. history. local news 24 hours a day powered by more than 2700 journalists and asked him -- and analysts in over 120 countries. i'm mark crumpton. this is bloomberg.

abigail: live from bloomberg headquarters in new york. joe: julia chatterley is on assignment. higher, butcks are the dollar is slumping after fed chair janet yellen and the euro higher after ecb president mario draghi. joe: the question is, "what'd you miss?" the storm- julie: ofld generate billions dollars in economic losses. sanctions on venezuela with president trump having to restrict the access to the financial system but stopped short of imposing a full oil embargo. and if you are in the market to buy a home, rising home values are cutting into affordability. suggesting the housing momentum

could be temporary. hurricane harvey bears down on texas as it strengthens to a category three hurricane toward the texas gulf coast. closing the day out higher. in joe carroll, bloomberg houston bureau chief and joining us on the phone. as to what latest you are seeing in houston and what is expected. we are waiting for the heaviest rain and wind to hit the city proper. we are seeing giant waves and heavy rain. everybody is evacuating down along the coast. we have yet to see the worst of it but a lot of gas stations don'tlready run out, they have bread or bottled water anymore. it's about time for folks to just hunker down.

joe: i see there is just an extraordinary amount of rainfall expected. >> it is a catastrophic amount of rain. every few hours, the forecast comes out. and this point yesterday, we thought it would be four straight days of rain. the storm is just going to sit over southeast texas. just keep dumping water. it is really a flooding trend. it will knock out one billion .arrels of gasoline demand because everybody will be frozen in place. and then once it starts to [indiscernible] andd there are -- julie:

there are already gasoline shortages across texas. mario draghi is taking center stage so let's get to kathleen hays for all the headlines. kathleen? julie, mario draghi took this occasion not to deliver a policy message. not to signal with the ecp does or does not do next, or when. he took this as an occasion to talk about what the big challenges are globally. he's especially concerned about openness. protectionism. he's concerned about how to make multilateral cooperation sustainable. it fair and equitable. but when it comes to currency, what you can take away is either mario draghi is not concerned about the euro because he didn't explicitly single it out. he's not worried. mario draghi will wait for the next ecb meeting. of the bull by

indicating they will try to slow them down. , mario draghi gave an interesting speech. he talked about the nice regulation. echoing janet yellen just a bit. it's clear he's holding his fire until the next opportunity to speak and send a message. 4 reporting from -- julie: reporting from jackson hole, wyoming. we appreciate it, kathleen. joining us from our washington bureau, good to see you. thanks for joining us. you put out a note earlier today that said it was possible that mario draghi would make some sort of last-minute tweak to his remarks that would indicate he wasn't necessarily supportive of the euro strengthening. that didn't seem to happen.

we saw quite the opposite effect in the market. do you think that was the rational reaction to what draghi had to say? >> i think coming into jackson hole, what we wrote and what others have said is that draghi was going to try to stay away from the policy decisions. try to avoid taking on the euro question head-on. cooling things down by staying medium-term. waiting to address these issues. making some kind of last-minute question to see if they can give a green light to the euro. the advisors decided they would not make that last-minute course correction and to some degree, they are paying the price now with the euro through 119. joe: if you look at the euro

chart right now, a you have those two spikes versus the dollar. the first after yellen and then after draghi. i get the impression that neither yelling nor draghi talk about monetary policy. and yet it was interpreted as monetary policy by virtue of the fact that they didn't talk about it. it there's kind of nothing they can do. there's no way for them to just talk about other issues without it being turning into the shadow of a monetary policy speech, is there? it's a very important point you make and i discussed it in my earlier commentary. here we have now to central bank chiefs that deliberately set out to say basically nothing on monetary policy. they are the messages they want to deliver. the line, the importance of maintaining regulatory reforms put in place since the crisis.

on monetary policy is interpreted as dovish. asghi is interpreted hawkish. it's probably a slight oversupply occasion here. in yellen's case in particular, waywasn't giving it either that they would be raising rates in december or more broadly continuing with the gradual pace of rate hikes. i think she just wanted to get the message across and stay focused on financial regulation. and to avoid complicating matters at all, ahead of what is an announcement in september. mario's speech we might interpret a little bit differently. he did have the opportunity to come in here on the one hand and give a mission accomplished speech. or on the other extreme, pushing back against the euro, the tightening and financial

conditions. it would lean against concrete actions. in the event, he seems to try to get away with something in between. not talking about monetary policy and not sounding too shrill about mission accomplished. stuff,king about this hoping that it would be enough to calm things down. but it's not. not commenting is being read as a green light. i think the ecb is puzzled by the strengthen the euro. obviously. factor playingp as well. it can move well beyond fundamental analysis at times. the ecb is going to have to at least offset this to some degree by leading -- leaning a bit more

dovish. abigail: one comment that stood out to me. with monetary policy very expansionary, regulators should be wary of rekindling the incentives that led to the crisis." why do you think he made that comment? >> i would connect this with what janet yellen was saying. you are seeing a concerted push back from a central bank community. there is concern that the pendulum may swing too far in the direction of deregulation. the regulations put in place by the financial crisis. as far as yellen or draghi or others are concerned right now, having this financial regulations in place is actually very helpful. why is it helpful? , ineans they can tolerate

some cases, elevated asset market valuations well-being confident that the system itself is solid it -- solid enough. it has been stress tested. the system is robust enough. bond market crash or some other asset market selloff, the financial stability would not be impaired. what that means is it allows monetary policymakers to continue to focus on the economy. if you weaken the stability of the system, then monetary policymakers have to start to balance financial stability considerations versus monetary policy considerations. notewant to mention the that you were out with. her comments or an obstacle to reappointment as chair. are you pricing into your models or trying to model out what a

gary cohn led fed looks like? are trying to think through what kind of changes in the fed reaction function we could get next year and beyond. as potentially a new chair takes office and the fed board of governors more broadly has pretty extensive turnovers. about tying it to any one individual. it still seems fairly open. he's had his own issues around charlottesville. in which he said that it was a concern. yellen is not advocating for her own reappointment. it may and that being somebody beyond that group. dark course, potentially.

thank you very much, krishna guha. we take a look at the newly announced u.s. sanctions and what they mean for investors. from new york, this is bloomberg. ♪

joe: the euro is pulling back from the highs a little bit and taking the jackson hole. it's a significant degree of accommodation still warranted. , recovery is gaining on guard. the euro area recovery is gaining ground however. a sickly, we are having a conversation about how we talked

about the euro or inflation. it wasn't a monetary policy speech and it looks like some of the comments are suggesting dialing back the hawkishness a little bit by saying there is still more work to do on inflation and that the ecb must remain on guard on these things. and these were answers to questions from participants. time to look at the stock of the hour. hertz, the car rental company, tumbling by about 7%. down as much is 11%. all of this on an analyst bid? >> it is a research analyst who says that hurts may have breached the terms of some of its debt. it goes back to may of this year when hertz had 1.2 billion dollars worth of lien debt. as it proceeds would be used for 2018 and 2019 debt. if you go back last month, they suddenly said we are not going to redeem the 2019 debt.

in which you can see there is a big drop-off in the stock at the end of july. and they thought it was second-quarter earnings. what the analysts note today is that by canceling plans to hertzm that that -- debt, risks defaulting on its debt and it could be viewed as missing a payment. the same analyst did go on to say that it is unlikely that it will decide to take action. they recover things like that. >> interesting. it there has been a lot of struggling. we appreciate it. what you miss? new rules will prohibit the purchase of newly issued venezuelan debt and equity and apply similar restrictions to

state oil companies. will bee existing bonds affected. for more on this, it's bring in bloomberg news investing reporter. talk to us about what exactly this means for various u.s. entities that hold that from venezuela. steven mnuchin commented on how all this will work today. >> they will be fine. the existing debt will be fine. they don't have to sell. there will not be a plunge in the market. but we don't know what this means for future debt, right? if there are any more restrictions in the future. it means venezuela can't issue new debt or restructure existing debt. that is another question we need to ponder. venezuela is very much struggling and in a bad position right now. default has been floated around for a long time. joe: were there prospects of

venezuela issuing new debt? was there an appetite for venezuelan debt? are 30% so irrational government would not be issuing debt that they could be engaging and liability management, the engagement of the debt swap to extend maturities and that would be off the table now. it is definitely restricting their ability to prevent a default. the other thing it restricts is they have been low-key issuing debt. that goes onand the secondary market. it can be a central bank or estate bank. that is what they did twice already. that is what will be choked off with these measures. that is what gets them by. abigail: the trump has stayed away from export sanctions.

that would probably be really painful for that economy. >> it would be extremely painful. the word around is that the oil lobbyists, those types of people have been saying, please don't do that. u.s. imports really heavy crude from venezuela so it could be very detrimental locally. it would completely ground their ability to absolutely do anything. it is the only thing venezuela does. they only export oil. it would be extremely crippling. they are in extremely dire situations, they don't have basic money for goods. -- money for basic goods. abigail: thank you so much. our bloomberg news investing reporter. i want to reiterate some of the headlines we got a few

minutes ago from ecb president mario draghi. in response to some questions after his speech in jackson hole, he said that euro inflation convergence has not yet self sustained. is gainingcovery ground. but the ecb is not there yet on inflation and it must remain on guard. intradayok at the chart, you see a tiny pullback from the highs on the comments that are a little bit less than hawkish. 20 more to come from new york. this is bloomberg. -- plenty more to come. from new york, this is bloomberg. ♪

joe: i want to go to mike, our economics correspondent, michael mckee out in jackson hole where mario draghi just made those the ecb having more work to do to get to the inflation goals. michael, thanks for joining us. what was the message he was trying to send?

awayel: he had to get without any market moving comments, but he was asked about the efficacy of the qe program that he announced in jackson hole in 2014. he says it has worked very well. it pulled the eurozone out of recession and out of its crisis. that wascrisis underway in 2012 and 2013 and 14. he said we are not completely there yet. we're still seeing the recovery gain strength. we are not seeing inflation move as the recovery gained strength. it should converge towards the 2% target. until that point, the ecb must remain on guard and in his words, a significant amount of accommodation is still necessary. what we are getting is a comment from him not unlike what he said that they are looking to a recovery. they are looking for the day

when they can dial back. but they are not there yet. he buying bonds. he didn't say that, but it's ok. julie: we saw, initially, when he was speaking about nothing to do with monetary policy, it took a pretty sharp leg up and even , itgh it came down a bit only came down a very small amount. just quickly here, it looks like the interpretation is still that the accommodation is going to be withdrawn. not change theid timetable for what the ecb is talking about. the expectation is that they will end the bond buying program and keep the accommodation in place. he did not change anything there. it is a direct thatnt on the ecb's policy

nobody was expecting here. julie: michael mckee keeping us abreast of the events in jackson hole. market close is next. if you look at the major julie: michael mckee keeping us abreast of the events in jackson hole. market close is next. if you look at the major averages, we have a mixed picture here to close out the week. from new york, this is bloomberg. julie: michael mckee keeping us abreast of the events in jackson hole. market close is next. if you look at the major averages, we have a mixed picture here to close out the week. from new york, this is bloomberg. ♪

>> what'd you miss?

after mario robbie reporters in jackson hole the inflation is not the same. >> i'm abigail doolittle. julie: i'm julie hyman. emma you to our to join closing bell coverage. julie: let us look at our stocks today. the dow and s&p gained ground in technology -- as technology lags. once again, we solve volumes falling here on this august friday. down 16% for the s&p versus the 20 day average. ulta beauty

having its worst single session. we talked about this late yesterday, nearly fell short of estimates and the company sees sales growing as much as 11%. and analyst report suggested go down.res gamestop having his worst day since march. analyst estimates but the year numbers are potentially short of estimates. is that the worst space since june. down about 4%. the numbers the analyst estimates. joe: let's take a look at

government bonds in the u.s.. the two-year not moving at all. 10-year ending down on the day. some of the action after yellen speaking. you can see the drop at 10. she didn't say anything about monetary policy, but debt in itself seen as a bit dovish. nothing too dramatic. turning to currency, the central bank is the main story today. with an intraday chart of the euro, we see the pop after draghi's speech came out. nothing new came out of this amend moments ago, we had headlines of draghi saying accommodation is still warranted and the ecb has reached inflation targets. we see a tiny pink down from the spike. if we take a look at an intraday chart of the bloomberg dollar index, we will see it as an

inverse picture. it is down more than 0.6% after janet yellen gave dovish comments. we have the dollar down on paper, it's worst day since july 14. look at this chart of dxy down 9.9%. it's worst year on paper since 2003. whether this reflects the fed president trump, extraordinary. joe: that is remarkable. let's take a look at commodities. we have oil moving a little bit higher. there has been questioned whether there will be and affects from the hurricane. it does not seem like it is having a big effect one way or the other on west texas. old catching a little bit of a bit today. 5%n is slimmed-down by about

down by about 5%. let us look at in intraday chart-- at an intraday chart of gold. it wasn't necessarily on the headlines. you can see weird stuff going on. it ended up normalizing, but no one seems to have a clear idea what happened you can see it was very exciting for a few minutes. [laughter] will take the excitement where we can get it. what'd you miss? not much of jackson hole. for donald trump, it is a constant figure of the background -- in the background. n is a macro strategist for bloomberg news. us. thank you for joining we have this conversation all the time. when is he going to have an effect on the market? it may be showing up in currencies a little bit. not with volatility, per se.

you have a chart. will need to walk us through. it looks at europe -- you have a chart here you will need to walk us through. -- looks att trumps trump's approval. in france, the communist would win the presidency. you can put together a nice little model with interest rate differentials and a chance of an unfriendly candidates winning and it would explain most of the value or changes in value of the euro. subsequent to the election coming off, there has been a convergence. on the basis suggests the euro is over -- thshot.

if you are back in another model, it doesn't get you all the way to where the euro is. but it does explain a bit more. just used, the french political consideration, has euros at about 110 or 111 and trump is 116. you could argue in the short run, the negative aura surrounding the white house has had some sort of impact. you use thisss if methodology over longer periods of time, it doesn't work so well. this circumspect to a question i was asking earlier, which is when you have this political effect on the markets, how do you then determined valuation in terms of fair value when you have something less tangible than what you usually have to factor in?

cameron: because by the way of quantifying political sentiment, whether chances of winning or approval ratings. you can then add that into a quantitative model. i was asking about the action we saw today. we saw the dollar dipped after yellen didn't talk about monetary policy. rally, aftereuro draghi didn't talk. does it show you anything about positioning that the lack of talk at notable move? cameron: there is a real sense there is a fear of missing out amongst discretionary currency on this incipient euro rally. i think people were hoping for a dip to buy.- for a if yellen had given droppings speech -- draghi's

speech and vice versa, it would have been the same. >> we have stopped continuing to hit all-time highs, not the recent days but not sue long ago. not so long ago. gold is up on paper. best year since 2010. japanese yen highest on paper. when you make of this? doesn't something -- what do you make of this? cameron: the dollar is going down against everything. irregardless of the quality of this. over long periods of time, there tends to be a negative correlation between cpi and asset gains. lo is a positive

is a positive low for assets. thearlier, we talked about market maybe not pricing in the correct amount of central bankers assessing financial stability. let us play what he had to say and i want to get your reaction. >> we are hearing more central bankers talk about the risk of financial instability. they do care about it because it could undermine growth. i suspect the market is too sanguine when it comes to how much central bankers are thinking about financial stability down the road. julie: what do you think? lot moreit could be a explicit. the take away from those a draghi and yellen speeches, they alluded to the fact that the regulatory regime has made the world a lot safer.

ofmitigated the risk financial instability. the reality is markets are very clever and they will find ways around regulation. cdo square now worth more. the short vix eps that were not regulatory the regime. i don't think it is safe to say -- i do think there is a point that financial stability still is an issue, but i wouldn't suggest the central bankers be overt. word volatility, we spent all summer talking about how low volatility and, if and not pier -- did not appear once. from chief here

economist catherine man. from new york, this is bloomberg.

mark: it is time for first word news. the national hurricane center's says harvey has strengthened to a category three storm with maximum wind speeds of 125 miles per hour. you're looking at live pictures of galveston, texas. what is being called a life-threatening storm is being fueled by warm waters from the gulf of mexico. harvey is forecasted to make landfall tonight or early saturday. internationalthe space station got a dramatic look at the hurricane as it bore

down on the texas coast. bombed ahter jets capital, leaving 14 civilians dead. it was the latest by of the coalition, which has been waging an air campaign against yemen's shiite rebels. that is in an effort to bring the government back to power. >> yemen isn't something we are extremely concerned about. i personally had meetings with saudisdi's last week -- last week in terms of airspace. working on all of those things. we are extremely concerned. we have a good flowing conversation with the saudis to make sure they understand our concerns. -- the topal jill u.s. commander to the middle nist visited the saudi-yeme border.

gary cohn says congress can't have a tax reform bill by the end of the year. passlls the finance -- can a tax reform bill by the end of the year. president trump will spend the next few years campaigning for tax reform, but he is leaving the details to congress. rallies in the bay area are expected to draw far right demonstrators and large groups of counterprotesters. thousands of officers will be on hand to police the event in san francisco and berkeley in the wake of the deadly white nationalists march in charlottesville, virginia. the san francisco police will have the entire roster on duty freedom rally. berkeley officials banned weapons and projectiles. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg.

>> what'd you miss? draghi, and, mario the bank of japan when to jackson hole. the trio are taking diverging paths on policy. what is go to michael mckee. he is standing by with the top experts on global economies. we would getght away with no policy comments from any of those three, but it turns out draghi had a few things to say about quantitative easing in europe. he talked about trade and protectionism. ,oining us this catherine mann a chief economist based in paris. tough life. from paris to jackson hole. they talked about how they did not hit the 2% target yet. do you read that as any chan

ge in ecb policy? >> i think what he said right before was the role of the exchange rate appreciation in the 2013 recession. one of the things they have on their radar is the relationship between the quantitative easing rate between the u.s. and europe and the potential exchange rates. is appreciation of the euro causing a bit of concern for them. mike: yellen came about and basically said nothing about policy. mario draghi did nothing until the ends. . catherine: he was the last lasso that is what the traders acted on. spend time talking about free trade. and how openness helps not just developed economies the

others. catherine: the issues brought up as if we look at the global economy, it has strengthened over the past six months. we're not sure it is sustainable. undelete the productivity growth , we are not going to be strong enough in the global economy in order to pay for pensions and create jobs for the youth. the way the productivity grows is through openness. that is important and the research we talked about is there is a lot of innovation being done by firms at the front tier. if that doesn't translate into productivity growth by everybody else, you don't have average productivity growth rising. having where being open, trade, having direct investment, let the economy's scale, this is this translates into

productivity growth and sustainable growth that will list to pay for pensions and have rising wages. policymakers have been coming here and warning about protectionism. in donald trump, we have a president who talks loudly but has carried a soft stick. are they as worried as mario draghi? catherine: there are differences in views it policymakers have been more protectionist. some academics don't seem to think there has been such an increase in protectionism. but there has been. there has been a rise in terms of barriers and a less market opening than in the past. that up to less opportunities for trade to play roles and

investors to play roles in promoting productivity growth. rhetoric does matter. it is not just action. rhetoric matters because it creates an environment of uncertainty, businesses are less likely to engage in international trade. if they are not sure what the rules of the game will be at the market sector. mike: that was a major topic. whether it benefits or hurts people. there was an interesting point made that a lot of people took note of. all those things are potential problems that central banks can't really address, but the pressure on central banks to do something about it from a disaffected public could lead to policy mistakes. what did you think of that? the central bankers said, one of the important ingredients for us -- i hate to talking about the

same thing -- they care about productivity growth because it gives them an idea of what the neutral interest rate should be in the longer run. higher growth, higher neutral interest rates. they care a lot about the distribution of gains from trade because that translates into which changes. it translates into rising growth. it translates into productivity. that translates into what they should be doing in regards policies and what their ultimate objective might be with regard to neutral rates. if we see rising productivity growth and wages, that factors into the shorter-term objectives, which are to get inflation. in the u.s. case, around 2%. oecd perspective, where that inflation go and are the central banks able to meet objectives? catherine: we have to look over a number of periods to see where

inflation went. the recession put a damper on it . that has persisted in part because business hasn't invested. even though we see tightness in the labor markets coming through with increased employment, there is a bit of slack and labor markets. there has not been complementary investment on the business side. getl those games play -- into place, we want to see the generally rising wages that translate into an inflationary underpinning. mike: you think this is just a matter of time rather than changing inflation dynamics? cap: this is an interesting catherine: this is an interesting question. even when we take account of the broader measures of unemployment , part-time workers, adjusting

for those, there seems to be less ability for tightness and labor markets to translate into pressures. something structural is happening where the bargaining power has increased. until we get that turned around business investments and worker wages are complementary, we will see the underpinnings going forward. mike: there you have it. catherine mann. give us all raises [laughter] . we will send it back to julie. thanks so much. we will be talking housing and housing prices. from new york, this is bloomberg. ♪

\ joe: what'd you miss? more homebuyers are complaining about the cost of buying a house. you can find all these charts with the function at the bottom of your screen. when you want to look at is the thin white line. that is a measure -- which one? they asked people, it this a bad time to buy a home. that is starting to shoe up. the number of people starting to say, price is the reason why we are disinclined to buy a home. highest level since 2007. the white line is home prices in general. more people say they are being priced up. >> that plays into a great chart i have here on housing. what we're looking at here is affordability going back

to 1986. interesting down near the housing bubble and 2006. houses were the least affordable since 1986. after the stimulus, if you recall in 2010, we have the tax credit where people were buying homes. we see affordability went skyhigh as rates went really low. now, housing affordability is that a nine-year low. it appears that might go right back down perhaps toward the mean of the 90's. joe: normalized. numbers we saw precrisis. avocados.ain't student debt. it is the fact you have a stagnant wages. that all playing into it at a time when housing prices are going up. abigail: true. julie: i love avocados. don't get me wrong. hurricane harvey is barreling toward the texas coast. we will talk about what the storm could generate $1.9

billion of economic losses. next. from new york, this is bloomberg.

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mark: it is time for first word news. more than 230,000 homes on the texas coast with combined value of about $40 billion are at risk due to hurricane harvey. that is according to core logic, which says the houston area was the biggest number of homes under threat. the last hurricane to hit the coast was ike in 2008. about 30 billion dollars in damages. president trump is urging the public to prepare for harvey before it makes them fall. the president encouraged people to listen to their local officials.

was briefed on the storm earlier in the day. the u.s. imposed new sanctions on venezuela as it moves to restrict the flow of capital to president nicolas maduro's allies. steve mnuchin provided clarity today at the white house. >> on the economic front, i would say our plan has to ontinue to turn up the heat the venezuelan government. these specific actions, we have tried to balance. things that don't hurt the venezuelan people. mark: president trump bars and maduro'sby president government. theresa may is stepping up to crack down on governance. she plans to enforce listed companies for the pay of ceos

and average employees. prime minister may will announce the measure next week. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. this is crumpton, bloomberg. abigail: let us get a recap of today's market action. the dow and s&p finished fractionally higher. very modest increases. take a look at the tech heavy nasdaq. 0.09%. dow and s&p being helped by energy. the second best for both. on the week, we are looking at weekly gains for all averages. julie: hurricane harvey bears down on texas. it strengthens to a category three hurricane and makes its way toward the texas gulf coast. oil and gas markets dialing back

big price swings in anticipation of harvey. closing the day out higher. let us bring in joe carol. he is joining us on the phone from houston. and tina davis. with you instart houston. we saw tweets from the president encouraging folks to heed calls to evacuate. from what you have been able to our people teasing the heeding thepeople call? joe c.: they are in full swing. a couple hundred miles south of us. the corpus christi and points north of there. they are definitely clearing out. bute are always hold outs, the highway departments are at the point where they will be closing roads. it is time to get out if you will go. go.

joe w.: let us look at how the market will anticipate the damage. we haven't seen a huge impact on the oil market. we are seeing it is in the price of gasoline in houston shooting up. i have a chart here showing the spread. seeingthis where we are the clearest impact? tina: this is the most direct first we will see the mos hit. it has five refineries in the media area, and you will see the ripple effect from there. houston gasoline is that a five-year high. that will an ability be held by the rest of the market since this is the heart of the refining sector. not just in houston and the region, but potentially even new york the significant moves from this? tina: yes.

it is more a matter of buying on the rumor. we saw a slight uptick today. you will continue to see that. we have a story talking about how the prior hurricanes, we have seen ripples come through with prices in new york. we saw the prices go up by $0.25 a gallon immediately. abigail: we have this chart, i think you are talking about it earlier. this is unleaded gasoline over the last three months. because of the spike we have seen this week. because of what you are saying about the rumor, what do you attribute that v-shaped action to? tina: when you look at gasoline and oil, there were white or swings yesterday when it wasn't clear what was happening. it became clear yesterday at midday there would be a possibly category three.

we saw oil prices start to fall as refineries shut and we saw gas spike. today, it was more of a holding pattern. we haven't seen more refineries shut down. we are expecting more to come in. we haven't seen the production shut in the gulf. most perkins go from east to west. this one just side -- most hurricanes go from east to west. this one went from south. said it is already affecting houston. are there gasoline shortages there already and how widespread are they? c.: it is all anecdotal. they are increasing. at play, asm always people pour north to get to higher ground they are using all the gasoline. who are notpeople

familiar with the gulf coast, you mentioned the area a few hours south of houston is expected to bear the brunt of it. what are these towns like in sort of population and industry wise? joe c.: they are in the 10 thousands and right up against the coast. they are heavily industrialized. the next shoe to drop will be, if this storm hovers over will see ther, you enormous stretch of refineries that are sober untouched around houston. if they start to go down, you will really see some impacts to the nation's appeal supply. joe w.: give us a more perspective. when you go back and try to find

--sidents for this, what it esidence, what are you looking at? another storm had so much water and they had alligators in the control room. joe mentions how long the refineries are out and what access to supplies. if you are talking about a five foot dorm search, you are talking about a week without refinery. tennessee could be as much as a month. you have to look at what the power outages are. one of the crucial infrastructure things is the colonial pipeline, which will we saw during katrina desperately needs to get power. julie: thank you so much. tina davis and joe carol. coming up, why mitch mcconnell .nd president trump

from new york this is bloomberg. ♪

julie: what'd you miss? we saw president trump attack his own allies from mitch mcconnell's of paul ryan over issues like health care and funding the government. followsaffling behavior a pattern that can be traced to the 1980's when he got into a public role with ed koch. tim joins us with the story. what does his past experience fighting and debating and negotiating with luminaries tell usork's history

about his negotiating style? tim: it is not just his negotiating style, it is his management process. he is like yosemite sam. he is willing to shoot and all -- he is willing to shoot even all directions -- shoot in all directions. how is he going to get legislation through congress? thes working to be seen as winner by his own definition of the winner. >> tell us the specific story about ed koch. tim: a huge development on the west side. the west side yards. he had an auction on the property and lost it and reacquired it. had he developed it, he would have rivaled rockefeller center. he wanted to put a tower that would have made it the biggest

building and the world at the time. it was going to have acres of residential and commercial space. he was turning a lot of debts. to get it done, he needed the city to engineer tax abatements. the city to cultivate governments, local planning boards, and residents. he alienated all of them. the mayor of new york was very trumpian in his own way. they ended up in this new york brawl that spilled into the tabloids and tv screens. he said the city is going to "you're koch said, just a piggy." development get the . he couldn't afford it and he ultimately lost the property. d.c.,we apply a certain

it seems to be's bullying tactics he is managing to alienate a lot of people in d.c. for trying to show who is boss and yet learning to get anything done, he needs these other people. what you think comes of this, especially relative to the debt ceiling? tim: immigration reform. you know, and everything in life you need to partner with people to get things done. the problem down there is he is not working toward that. to mitch spoken mcconnell four weeks. mitch mcconnell is the senate majority leader. he needs the senate committees to get legislation through, he needs them to keep robert mueller off his back. mitch mcconnell should not be rivaled. trump is trifling with him. joe: it seems as long as trump gives attacking cnn, they will keep a good chunk of his base happy. making liberals

upset plays out pretty well but there are certain things he has to get done. the debt ceiling has to get raised. the government theoretically have to stay open -- has tuesday open. the show will give way and there are some things that will need to pass. tim: i don't think his base cares about russia or intolerance to a certain extent. joe: do care about obamacare repeal? i think they do. a portion is dependent upon obamacare but doesn't realize it . he has promised job growth. he has to keep the government running effectively. things you those two will have trouble with his base. julie: when you're talking about these things, the difference if interestcongress's

also to get those things done. even if he is not talking to will mcconnell, and ryan take the reins on their own and get it done? it also is in their favor. indicated they will. mcconnell said there is no way there will be a shutdown abigail: do you think trump is willing to go with the shutdown over the wall to show he is the boss? tim: absolutely. he is a flamethrower. joe: i want to go back to the new york experience. [laughter] i don't think anyone knows the story as well as you. what kinds of things did he do to alienate virtually all of the stakeholders in the development? tim: for example, the tower they wanted to build would have cast shadows across the hudson river. for that to occur he needed to pay attention to any residents and the circumference who care

about the problem. he didn't care. he named the development television city. koch didn't shy away from the notion of this embarrassing koch. ideology andout look at it in terms of he wanted to get a deal done. he would have benefited financially. it would have folded him into the upper tiers of new york realtor -- real estate developers. he missed out on that. >> there is a development going up there. said new worldat and they got it done. there's another project your there that is going up >.great insight >. editor of bloomberg

view. thank you for taking the time. you can read his article on view go. we will have the highlights from our interview with robert kaplan. find out why he is concerned about u.s. trade deals. this is bloomberg. ♪

>> it was a big day for central bankers and jackson hole. we heard from janet yellen and mario draghi. we also talked to robert kaplan earlier today on tv. betty liu and kathleen hays asked kaplan about trade and what it will take to boost economic growth. t: i think global trade is

an opportunity for the united states. i think a lot of the dislocations might have been because of globalization. today, it is more likely dislocations are incurring because of technology-enabled disruption and other structural factors going on, as well as cultural, where people prefer to live in urban areas. those are bigger dryers that glow was nation. my concern is, if we attribute these problems to globalization, we will make poor decisions. trade and immigration are examples. the trade relationship with mexico is a good example. 70% of u.s. imports to mexico are intermediate goods, not final goods. these are good going back and forth across the border that are part of sophisticated logistics supply chain management that have allowed u.s. companies to

be more competitive and keep jobs in the united take that we didn't have those that -- that we did have before. if we didn't have this arrangement, you might see the u.s. lose jobs. i think trade is an opportunity for the u.s. and we will do very well. yes, i understand and agree with the desire to make sure it is there that there is a level playing field. but i do not think we should go to far -- too far. the more we are able to have global trade, the more likely u.s. growth will be higher. about theant to talk euro strengthening based on one or two comments coming from mario draghi. the dollar falling. have you been surprised by how sensitive the foreign exchange markets have been to fed speak and ecb speak? they are sensitive to

central banks, but i think they are sensitive to economic conditions. european growth has been better this year. mobile growth has been better this year. u.s. growth is about the same as last year. ybe, ale better ma little over 2%. that might have to do with other currencies strengthening than rhetoric. kathleen: i want to ask you about risks. bad, inflation isn't so maybe things are changing, there is more growth, balance sheet unwinding has started. but there is this question about financial stability. where you see the risk? robert: number one risk is demographic. in most developed countries, population growth is slowing, work or spread is slowing.

i think western world will have a challenge on how to grow more, and it is a problem because western world is very highly leveraged. you need gdp to service debt and re-leverage. i think the opportunity and the risk for the world is we picked the wrong solutions in trying to grow at a greater rate. for example, i think globalization probably is an to growity for the u.s. faster and for the developed world to grow faster in light of the demographic trends three probably immigration -- trends. probably immigration is an opportunity. is wek the biggest risk do not analyze the reason for slow growth as well as we pickd, and we maybe policies that create lost

opportunity. i think regulatory view is a healthy thing. i think trade and immigration, if we are not careful, could impede possible gdp growth. i would like to see if a point that mistake. abigail: that was robert kaplan. it is time for the bloomberg business flash. has raised $27 million in funding. the start develops brain machines to connect humans and computers and no link -- neur engineers hiring and scientists. sec letter cited an saying it completed collusion investigations. othershers -- tyson and face lawsuits.

that is your business flash updates. joe: when you need to know to cure up for next week. this is bloomberg.

> julie: what'd you miss?

stocks end of the week on a mixed notes. we thought the nasdaq fall, the s&pand the 500 higher. -- 500 higher. don't miss the third round of brexit talks in brussels. the jobs report on friday. second: don't miss the round of nafta talks on friday. julie: i will be watching. abigail: we will miss you. julie: that is all for what'd you miss? joe:

>> you are watching "bloomberg technology." the national hurricane center says harvey has strengthened to a category three storm with wind speeds of 120 miles per hour.

what is being called a life-threatening storm is fueled by warm waters off the gulf of mexico. harvey is forecast to make landfall in texas late tonight or early saturday. president is urging the public to prepare for harvey before it makes landfall. in a tweet today, he encouraged people to listen to local officials. he was briefed on the storm earlier today. state visitump's the united kingdom is more likely to happen next year according to the british foreign secretary who spoke to the bbc. prime minister theresa may invited trump over during a trip to washington earlier this year. back-to-back rallies in the bay area area this weekend are expected to draw demonstrators and counterprotesters. thousands of officers will be on hand to police the event in the wake of the deadly white nationalist march in charlottesville. global news 24 hours a day powered by more than 2700