been downgraded to a category four with wins at hundred 55 miles an hour. forecasters say it could bring a potentially catastrophic storm surge. 650,000 people were ordered to miami county. the biggest evacuation there ever. irma has damaged or destroyed 95% of the homes on the small island of love you to -- by barbuda. countrieshit near the border with guatemala. the earthquake had a magnitude of 8.2. the president calls it the biggest earthquake to hit mexico in a century. theresa may said she trusts president trump to keep the world safe. in an interview with the bbc, she said the president would do what is right for security and

safety around the world. she said he has good advisors. in israel, the wife of prime minister benjamin netanyahu is facing indictment on suspicion of misusing public fans -- funds. she allegedly overspent at private -- on private meals at their residence. she called the charges absurd. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ abigail: live from eric. -- new york. quiet but therly

dollar at its weakest level in more than two years. eric: the question is what you miss? >> the hurricane continues its barrel toward florida with millions and the potential path of destruction. billioncould reach $200 tapping hurricane katrina. investors have almost $9 billion in funds but hedge funds are asking clients to remain calm. congress passes a short-term debt ceiling go that republicans in congress are blaming house speaker paul ryan for letting democrats get the upper hand. our top story, authorities are ordering more than 650,000 people to evacuate the miami area as hurt and irma churns closer. the storm has left 21 people dead in the caribbean and trends to be the most expensive storm in u.s. history. nathan crooks joins us live from miami. thank you for joining us.

what are you saying down there in miami at this point? nathan: we are getting into the final stages of preparation for the storm. by tomorrow we will have some wins and sunday is the big day. people are in a final rush. you can see some last-minute people checking in to ride out the storm. the streets are mostly deserted time- in that part of down -- downtown miami. the local government has said they are opening up more arounds for up to 100,000 people. we are seeing the final stages of preparation. where are they going, are they trying to get deeper into georgia and some of the states are the, how far evacuees trying to get? it depends on how you are going to evacuate. the people staying have been encouraged by if you are living

in a mandatory evacuation zone they have been encouraging people to seek shelter with friends or coworkers and people who are driving went to tampa or orlando people are getting in their cars and going north. the people that were flying with getting tickets anywhere. i know people went to new york, houston, gla,as, people were going to the airport in getting on planes wherever they could find a ticket. possible is it for someone who has until now the site to statement their way out. if they get on the road and presumably get somewhere to safety in the next six to 12 hours? brexit window of opportunity has narrowed. the airport is going to close at 135 milestain

an hour. if you're getting in your car ,ou have to look at the map we're about to see the effects of the storm. the authorities are saying it is time to get where you are going to get that it is time to hunker down and write this out. couldt: hurricane irma cause tens of billions of dollars in damages before he gets to the florida keys. howard just joins us from savannah, georgia. thanks for joining us. give us a sense of what the 10 to $20 million in damages and, what is involved in what is included and what is not included, what is insured and not insured. >> that is in the caribbean. covered, some of it is by various programs, there is some insurance caribbean but a lot of that we are looking at, i

pulled up the latest estimate, impacts3 billion and across the region we can account for. a lot of that is infrastructure, some of the smaller in the french territory quite devastating. the u.s. landfall is a scary thing from a financial economic standpoint. the numbers are astronomical, it was hung -- $150 billion in u.s. and florida impacts. which is a nightmare for the insurance markets because a lot of that would wind and wind damage is what it's the insurance industry. right now we're looking at $92 billion if it follows the current track. if the storm continues to slide westward and goes up through the sarasota matinee bills --

naples, tampa area of the amounts go to the one 20's. eric: could you tell us what goes into the art and science of risk modeling, what are the key inputs that go into your models? is beyond entrails but not much better. we looking at a set of sophisticated computer models. we start with a representation all of the infrastructure property, economic activity on the entire earth. we do this modeling worldwide. for every one kilometers land surface as well as offshore we have a representation of how much property is in that grid cell, how much it is worth, the value it produces to the economy. that is the first component which is a sophisticated model. we then run very sophisticated weather models, in this case hurricane models across that

economic surface or landscape. much wind, water, on each onesurges of the one kilometers squares. from that calculate how much damage it can cost and how long infrastructure is likely to be out of service. complicated calculation for irma. you have to run all the way from the peninsula. this storm runs like we are looking it will be hard to get storm -- supplies down to the florida area. scarlet: i have been reading and you referenced it about the turn that irma could make on saturday. what are your models suggesting right now? t-rex we tend to go carefully with what the national hurricane

center guidances. those guys in miami are professional, they do this every day so we stick with their forecast track. we do look at run the other models to see what the variation is. on the current forecast track it .s splitting the difference it is going and between hitting miami and the big infrastructure in miami and tampa. it is called -- calling for the devastation. orlando gets hit no matter what. that is the one we're looking at. we do not know. at the satellite imagery there is a friend coming through that was expected to start the storm turning. it has not started turning it. they do not know, we're not sure either is it going to turn it is getting late for it to turn into miami so are we looking into the he's and the everglades which

helps little bit or is it going to slide into the naples area and into tampa? either way, it is a lot of very valuable infrastructure and looks to be a big financial hit. scarlet: great insights, we will all be waiting to see how the hurricane does play out. chuck watson, thank you so much. coming up, while florida races , houston is still recovering from the devastation of hurricane harvey. with the energy capital of the world underwater, how is the power sector doing question mark alix steel sat down to find out. we will ring that to you next. this is bloomberg. ♪

x cleanup efforts in houston followed after the catastrophic flooding of hurricane harvey and with two more category for storms in the horizon, should energy section they worried? the energy sector be worried? >> we as a company have always wanted to risk to the extent we could prevent these things from impacting laredo. we had multiple places we could take our crude, places we could -- wet gas. ask, we we had almost no description. there was a fair amount of scrambling making sure we had these of fracking crews and our ranks but as far as though i is concerned, we did not lose production or flair much gas.

the bad part is already there and the recovery has started on that. those kinday no to of questions but i do not think we will be impacted. let's talk about quarter. the responseeel from wall street was, you didn't have an increase in production and oil but it was lower than sequentially. talking aboutn gor in our properties and guidance is in the range of 45% to 47%. we have increased our growth production amount. in the first quarter 17, we said we were at a 45%, the second

quarter because we had completed a number of wells at the end of the first quarter, we got the benefit of those in the second quarter. the oil content at 47%. it is now back to 45 but over time, it will be at 45%, 47% as far as we can tell and we have been talking about this for three or four years. it is a function of cadence on completions, if they happen first in the quarter you get the benefit of that flush production longer. at the end of the quarter you do not get that benefit. alex: wells were getting more expensive. the worry is that companies are over drilling and making mistakes and they use that mistake and move on to other wells before the understand what that mistake is. what are you doing to prevent that? ve been talking for

a long time that the right cadence is not just your financial ability or acreage requirements created is making sure you do not run out in front of your data and your interpretation of the data. we set a long time ago that we had significant inventory and we did not have to drill close. productionacreage years ago. we had a cadence that allows us to make sure we do not outrun our data. ofstarted drawing packages drills, and so for us that has governingf our beliefs in how the business should be, you need to be capital efficient and growth for growth's sake is not necessarily the right way of doing it. alex: different from some of your peers. communicate a lot, i

am not sure how well it is received. we are going to grow more or less within cash flow, sometimes more, sometimes less but we will be the most capital efficient we will be long-term. flow,you mentioned cash you need money to do all of this. the pipelinein that you cohn is looking to sell, you have some midstream assets, which you be looking to monetize those and use that to drill? randy: the thing about the midstream asset, we are a 40% non-operator and we said for a core to us in is how we think about the business and we invested in that so we could take our crude outside of the base and wheeled the crude in a couple of places. we are not subject to huge basin differential. a couple of years ago we sold

most of our crew to the gulf coast. that you doncern is not have the capacity to take it out because there is so much coming on stream. randy: the midstream guys, if they see demand for pipes they will put it in the ground. that is not an issue long-term. for us we have created, made investments in our infrastructure for years. it is now we can document how well it is paying off. thater we on ebitdaructure, use the or turn it over, we have created real value, we have potentially , and we talked about that in our presentation and that is a result of s -- investments we have made. alex: what would you need to see to accelerate meeting also what

would you need to do to buy more land because the way you are, land swaps will be hard. you would have to buy and permit is expensive now. most of ourught acreage very early. we stopped dying when acreage cost got to $1000 an acre. we started buying in 2007. we bought about an 80 mile long trend and 20 miles wide, that was the deepest part of the basin at the time of the position. the recent has moved so we have a lot of section to look at. we did not really participate in process ative land all because we did not need to. inventory.stantive we have seen this boom bust cycle five times now. as ceo of the company i founded it. we did make some acquisitions. our view is that for us to go out and buy significantly more

to be as good or better than we have and that is a high hurdle. if we can buy and we did make an acquisition earlier this year them a $100 million which allowed us to make an increase in our working interest and extend core doors, it allowed us to do what we do best which is bring capital efficiencies to bear. fauch.t was randy of the hour. stock from new york, this is bloomberg. ♪

scott: we are focusing on target now down more than 2%. it is cutting prices on thousands of on it. it has come off the lows.

julie: it has come off the lows. it was going to do this. it was that it did out to consumers in a more formal fashion and it is trying to get away from the promotional cycle where it is offering sales on select items. the way it is pitching this is that you come in and there are low prices, they will do some sales but it sounds like they will be a little bit more selective with the sales. those promotions were to get people back in the store after the credit card reach and spur their come back and that has helped to some extent. if you look at their same-store sales a saw the rebound last quarter. in the most recent earnings report, they reported that rebound that was better than estimated and that helped finish shares higher after they saw quarters of declining same-store sales. even though the stock is down it

is not necessarily a big surprise and the irony is that amazon announced it would be cutting prices for whole foods excited thatwas target says the same thing and stocks go down. targets about that experience. i do not want to go to something that is like walmart. julie: they are competitive with the walmarts of the world. it is a matter of trying to cyclicality.e i want to talk about gross margins. it is a question of how much flexibility these players have with margins at a time of rising is cutting into their margins as well as what is going on with food. this is gross margins of the various companies. you have whole foods in purple, it has relatively hefty margins and it is known as being overpriced tomorrow hope a

check. when they're cutting prices it is dramatic for target. target is in white and walmart on the bottom and there is amazon his gross margins have which isdily climbing, interesting. they are getting their revenue from other sources, not just from selling stock it also selling web services. it is interesting to look at the gross margin picture. cuts pricesn investors like it. it is the perception they are doing it from defense. when amazon does it it is a power move. julie: when people look at amazon they see what they perceive as a roast -- growth company and something that is dominant and when they look at target it is seen as an older company, something that is trying to compete with the walmarts of the world. it is all about -- a lot of it has to do with perception.

scarlet: maybe target is seen in the same way. has always been seen that way. >> is time for the bloomberg business flash. a look at the biggest stories in the news, one of the biggest tax in history. jeopardizing 143 million consumers in the u.s., the access to names and social security numbers and credit card numbers. they face multiple state and federal probes and congress plans hearings. hasthe drugmaker transferred rights to the saint regis mohawk tribe. the move puts intellectual property charges out of reach and could save the company aliens of dollars. they will pay the tribe $13.75 million and an additional $50 million a year in royalties.

that is your bloomberg business flash. scarlet: we will take a look at the major indexes with less than four minutes to go before the close. little changed in the major indexes. this is bloomberg. ♪

♪ scarlet: "what'd you miss?" changed overittle

the week. at dollars think to its lowest level in more than two years. all eyes are on hurricane irma as it heads toward florida. abigail: i am abigail doolittle. scarlet: i am scarlet fu. joe: i am joe weisenthal. julia chatterley is on assignment. if you're watching on twitter, you can watch our live coverage. atrlet: when you look equities, not a whole lot happening in terms of major indexes. although the nasdaq had its worst week in the month. joe: so much news between the , theics, weather earthquake, geopolitics. for the most part, not a lot of headline action for equities. scarlet: and in nice round number for the dow, 21,800. abigail: we do have big movers

on the day starting out with equifax. down 13%, its worst day since 1999. there was a massive online security breach of the credit bureau. hackers may have gotten the information on as many as 143 million. and there is evidence executives sold shares the day after the hack. investors clearly not liking any of it. turning to big movers, read resources down 7%. emp downgraded to neutral. it is now down to 52% this year. freeport mcmoran having a rough day, down 6%. copper down 3% on the day. they say that is about profit taking. copper had been doing well this year. take a look at xl capital and chubb.

investors not worried about irma . chubb action higher on the week. joe: let's take a look at the u.s. government bond market, the two-year and 10 year. yesterday we saw a dramatic move lower in government bond yields everywhere. some of that after dovish fed comments. two-year yields unchanged at 1.27%. %.-year at 2.06 scarlet: u.s. dollar now down for a seventh straight day. not a fresh 32 month low. closing out its worst month since may. trading is fairly light ahead of weekend risk. you have hurricane irma bearing down and possibility of another north korean missile test. the loonie all over the map after a mixed job report.

a net increase in jobs and a drop in the jobless rate. the bank of canada unexpectedly raised interest rates and left the door open potentially from our rate increases. over the longer-term term, the loonie has been on a steady rally. that is a three-year chart -- i am sorry, i meant for a different time period. as of late, the loonie has been on a rally. joe: let's take a look at commodities. lots of interesting moves going on. nymex crude selling off today, down 3%. texas intermediate below $40 a barrel. gold not doing much. orange juice has been all over the map this week, with traders trying to position, figuring out how hurricane irma will or won't affect the florida orange crop, up 5%. all the industrial

metals having a bad day today, the third worst day this year. trade data out of china causing people to question underlying sources of demand. nickel got hit. ugly day for industrial metals, including copper. abigail: let's take a deep dive into the bloomberg. you can find the following chart using the function at the bottom of the screen. i would like to look at this chart on the 10 year yield, on pace for its biggest drop since 2016. this is g #btv 2866. we see the backup and rate around the time of the election. the 10 year went from a 1.8% all the way up to 2.65%. investors when it backed up with a thought, inflation, growth on president trump's policy changes. we also had the fed change rates. that has not deterred the buyers of bonds.

now we see the channel showing buyers are in control. it is inverse to yield. the question, is this more of a haven play, or the fact the fed will be perhaps a little more dovish than what their tones have been in terms of raising rates? time will tell. it does look like he could break the all-important 2%. scarlet: we are looking ahead to the possibility. --'s get an experts take expert's take. the decline in the 10 year yield, is that a haven play, or telling us where the fed will go? >> there are a number of factors at work. obviously we have the hurricanes impacting economic growth, or our ability to accurately forecast it. we saw a big miss on jobless claims this week. scarlet: which -- this week. scarlet: which was expected. -- after every

hurricane we have seen that. cameron: why wasn't it in the forecast? it is easy to say what the direction will be, but more difficult to say what the magnitude will be. then you throw in the north korean business, and it is like watching "team america." it is hard to describe a rational utility function. then you through the fed in. we had stan fischer's resignation, which leaves four vacancies on the board. janet yellen's term expires early next year. it seems the case that if the market cannot project what is going to happen, they decide to tighten nothing. really driving the bond market. joe: as for margins, how much are the hurricanes having affect? -- effect?

cameron: it is more the function of uncertainty and the fed reaction function. there is this idea the fed is looking for reasons not to go. devilishly,ke kashkari spoke devilishly. i think the balance of risks was tilted towards them, that they do nothing. you could argue it is a training opportunity in the sense that if we look at prior hurricanes, it has been pretty small. the the biggest story is dollar, seven straight days down for the dollar. we are at the point where we are starting to give up some of that great multiyear run from 2014 to 2016. the pictures

relentless bearishness? broadn: you have seen a cohort of traders and investors participating. traders model-driven sell dollars. they push the button and if the machine says sell, they sell. if it goes down, the machine will say "sell." belatedly getting onto the stage, -- stage. abigail: is this something perhaps president trump wants? he talked about how he wanted a weaker dollar. if we return to the fed in 2011, 2011, it was a trade for the stock market. this could perhaps be a good thing for the risk asset? you could argue that if the dollar gets debased, the price of everything else goes up, which is good for holders of assets, presumably good for

exporters, and maybe even good for the fed. abigail: it is not a bad thing? cameron: a lot of people with say it is a good thing, and easing of monetary positions. joe: and ugly day for industrial metals -- copper, think. we have 10 year rates versus industrial metals versus gold ratio. which held together nicely through the summer, and then they do verged. with the latest move, gold has been up, industrial metals. it looks like the ratio might be returning, the yields might be winning out. cameron: to a degree. industrial metals are driven by china rather than domestic u.s. considerations. in so far as we had a diversions that and china, andriy renewed optimism and growth rebound, and in the u.s. there was pessimism, that explains the

diversions. right now it looks like it might close in the direction of where the 10-year is going because copper sold off and steel -- and steel sold off in after-hours. the people's bank of china removed reserve requirements for forwards on the which will make it easier to speculate against the yuan. there may be some perception there that the appreciation of chinese currency has gotten to where they wanted it, 650, which is where pboc said it would go at the end of the year. it is time to slam on the brakes. scarlet: how are traders positioned as we head into this weekend? there are a lot of things that are uncertain, are they positioned defensively? cameron: it depends on the asset class. we had a report on future positions half an hour ago. as of tuesday, traders were selling bonds, which has not

worked out so well. base, peoplecies are clearly short dollars. would they have covered some? it looks like a, we had a rebound today. people are cutting back ahead of the weekend. scarlet: thank you. politics makes for strange bedfellows, evidenced by president trump's surprising decision to side with democrats on the debt field. a rare show of bipartisanship. this is bloomberg. ♪

♪ >> i am mark crumpton, it is time for first word news. florida gov. rick scott is urging residentss who have been

ordered to evacuate to "get out now." theflorida keys will feel category force storm saturday morning. the overall effect will be felt statewide. couldalso said that irma be a more destructive storm than andrew, which devastated south florida in 1992. more than 30 people reported dead, several buildings reduced to rubble, after the strongest earthquake to hit mexico in a century. the magnitude 8.2 earthquake struck last night off mexico's pacific coast, away from the capital of mexico city. mexican president said major damage had been caused in that one million people initially had been without power. but, electricity had been restored to most of them. pena nieto added there had been 62 aftershocks. north korea is threatening the united states for what it calls nikki haley's hysterics it at

the united nation. the ambassador said north korea was "begging for war" by detonating its most powerful nuclear bomb on sunday. kym johnson's regime said the u.s. would pay dearly for that. said- the white house there is no credible terrorist threat against the united states , leading up to the anniversary of the september 11 attacks. terroristsaid, no should u.s. as vulnerable right now. monday will mark the 16th anniversary of the attack. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. scarlet: "what'd you miss?" this weekrd to sum up in washington, unusual. president trump struck a deal with democrat leaders, leaving gop leaders stunned. he said, republicans, sorry. i have been hearing about repeal

and replace for seven years. did not happen. the senate filibuster rule will not allow them to pass legislation. it is a republican death wish. -- house cleared bipartisan they will fund the government through december 8. we have our reporter in washington. in my exaggerating to say steve mnuchin and mick mulvaney, when they tried to rally, they got booed out of the room. there were gasps, it did not go over well in the room with house republicans, according to all the reports we're getting. people who are awkward salesman for this kind of package. mick mulvaney was a republican congressman for years.

fringes, the far right exactly the kind of package he would've objected to, unpaid for disaster relief aid. a short-term debt limit increase, for however long without spending restraint or fiscal measure to counterbalance it, is also not something he would have liked. you have secretary mnuchin, who does not have relationships on capitol hill. he said, please do this for me. if you are republican lawmaker, it is not persuasive. joe: let's talk about trump making a deal with the democrats, overwriting opposition from mcconnell and ryan. the key thing is, bloomberg news wrote about today, the court trump base siding with trump on this move. his basetrump knows won't mind if he cuts deals with the democrats, what does that say about his legislative plans going forward? sahil: the crucial lesson to

draw here is that trump's-based is not care about fiscal issues. they are not motivated by the proper level of taxation or size of government. it is with culture, immigration, they think arets supporting the diversification of the united states. he has a lot of latitude to compromise with democrats. he knew that if he cut a fiscal deal to keep the government funded and raise the debt limit with democrats, it there would not be much blowback from his base. if he caves on renegotiating immigration, whether it is backing down on the wall or legalizing anybody, including the sympathetic people in the daca program, that could be a different story. thisld also not over read as suggesting president trump try to do it in the future.

it is unwise to predict his future moves. abigail: so much focus is on the debt ceiling. this possible bipartisan move forward mean for tax reform? where does it leave paul ryan, who has been talking about getting tax reform done by the end of the year, but no details? sahil: it is a blessing and a curse. it is good in a way in that it clears a path for the rest of the month. there was concern republicans would be wrapped up with funding the government through december. it is september now, so they have at least half a month when they come back to focus on this. probable aid for hurricane irma, which is expected to devastate south florida. they have time to do that. the downside is that they have another deadline september 8. -- december 8. it leaves them to an half months to make serious change on tax reform. we have not heard about what

rates would be or business expensing or the corporate tax rate. everything remains up in the air. they are making progress with the big six behind doors. once i happens, we will see a real firestorm. they have a couple of months, two or three months to get something done. otherwise, the whole effort is up in jeopardy. abigail: thank you, our national political reporter. shares of kroger down despite the grocery chain second-quarter results staying in line with estimates. we hear from their cfo on investor concerns. this is bloomberg. ♪

abigail: "what'd you miss?" kroger struggling with fierce

competition, following amazon's acquisition of whole foods. shares fell throughout the day despite an upbeat report on same-store sales. ceoier today, kroger's spoke with the bloomberg daybreak: americas team. >> we had a great quarter, delivered on that confesses -- consensus estimate. we beat on sales in total revenue. our online sales, including clickless, grew by 100%. everything evil have been expecting us to deliver, we everything people have been expecting us to deliver, we have. >> it has not been a great quarter for the year, down by 35%. then you add to the pain at the open. in june when that headline crossed and it came out that

whole foods that acquired -- had , maybequired by amazon even up to 20%. what were your thoughts in the board room? what is a message to the investor base? it looks like they are increasingly abandoning kroger. most important, our customers are not abandoning us. we have over 9 million customers coming to our stores each and every day. we grew market share in the quarter. the headlines are the headlines. we are focusing on delivering more of what our customers want every day. they seem to be appreciating that, based on how often they continue to come back. we are back in the positive ground on food store sales. we feel positive about the underlying strength and the direction we are heading. the third quarter is off to a nice start, from a revenue standpoint.

the headlines are the headlines. our job is to keep focused on the most important thing. we feel great about our ability to do that. we have been doing it for 134 years. >> affair and important point, you really have customer loyalty. margins --alk about to what extent are you having to cut prices? is that affecting your margins, going forward? what we havek at doing the past 13 years since we introduced our customer first strategy, it has four elements --, price.products, drive not trying to prices down. but we will remain competitive and not charge prices that cause a customer to go somewhere else. we have done a great job over that time frame, balancing it with a reduction in operating costs as well. it is a little out of kilter

until our sales get -- gain more strength. great about the trajectory we are on and opportunities we have to become operator,ient of an on an administrative side, and making sure the labor we're using in the storms. -- stores. >> it is now engaged in a price war. for some, that means a race to the bottom. you have a huge footprint across the u.s. with physical stores. --ists use thinking about are you thinking about aggressive cost cuts that need to come through in the next 24 months to remain competitive? -- alwaysalways spoke focused on cost saving initiatives. we do things electronically that we used to do manually. we can either take that cost out of are doing the business or

reinvest in another facet by providing better service. i do not think we have ever had a year where we have not sat around and decided how to become a more productive and cost efficient operator. it is part of being in business and staying in business. footprintur physical need to be reduced in the next 12 months? >> no. we love the almost 2800 stores we have. the 9 million customers that come in every day, we are convenient to them. most live within 1.5 miles of our store. abigail: that was kroger ceo mike schlott men earlier on bloomberg. aarlet: insurers facing nightmare scenario as hurricane irma barrels toward southern florida. this is bloomberg. ♪

so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. mark: it is time for first word

news. at least 58 people reported dead after a major earthquake in mexico. earthquakede 8.2 struck last night off the country's pacific coast, hundreds of miles south from the capital of mexico city. thereent pena nieto said has been more than 60 aftershocks. young immigrants in houston in miami are scrambling to complete their renewal applications for a program shielding them from deportation, while dealing with hurricanes bearing down on their cities. an october 5 deadline announced this week by the company the

station set off an immediate scramble among many of the nearly 800,000 people protected by daca, most notably in texas and florida. congress signed up on the debt ceiling bill that includes more than $15 billion for hurricane harvey relief. president trump and democrats, suspending the debt limit and keeps the government december 8. >> the bill might be on its way up to right now. signature from the speaker, senate leadership, vice president, president of the united states. i think that will happen today. bossert called irma a dangerous and destructive storm, urging people to listen to officials. trump said he would withdraw from nafta if an agreement

favorable for the u.s. cannot be reached with canada and mexico. wilbur ross told the washington post the president has made clear, if it does not work, he will pull out. secretary ross's remarks come three days after the countries wrapped up overhauling the accord. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. abigail: "what'd you miss?" $45 billion in catastrophe bonds that provide insurance for the florida market could be vulnerable if hurricane irma reaches landfall this weekend. for more on how investors have been hedging risks for natural disasters, our guest in los angeles. and, a strategist for bloomberg intelligence. thank you to both of us for joining us. if you could tell us exactly -- catese cap bonds

bonds are, and who invest in them? >> they are away for insurers in florida to offset their risks. there are a lot of natural disasters in the region. if there are really big losses, the -- there are a lot of specialist investors. -- there iso fimat also firmat capital. there are some well-known investors, such as blackstone. there are significant investors in this market. was one of the creators of the market in the 1990's. there are a lot of wall street watching this. situation,g at this

after hurricane andrew, the state took action to keep insurers in the market. what are the instruments set up and the ramifications of them today? ,> after hurricane andrew insurers were exiting claims. they had a state mandate, so that the state board of administration. it is a backstop for insurers. a lot of property insurers guarantee losses up to $17 billion. now they are overfunded, which is good news. joe: i wanted to talk about the catastrophe bond and who buys them. part of the appeal is that they are uncorrelated assets. typically bonds a cycle up and down with the credit and economic cycle. but because it is with the weather cycle, over the long-term, you get bad times, but smooths out in the overall portfolio. sonali: absolutely.

if you look at the 10 year average, it -- remember, 10 in 2008. hit in recent years, they have landed behind because so many investors have come in. the ironic thing about the losses -- if you look at the index, it is down 16%. that is the largest loss ever. the thing about this market, once people get out of it, a lot of people get into it because pricing is better. a lot of people have flooded into this market. the pricing has been muted. after a hurricane the prices do come down and people get in at different levels. cat bondyou said the is valued at over $90 billion, half of the tied to risks in florida. what does it mean in terms of positioning and crowded miss of

this particular asset class? sonali: the interesting thing is, half of the risks are tied to florida risks. there are 13 bonds tied to florida. we also had the earthquake in mexico and harvey. there were a lot of bonds is susceptible to these different risks. the florida risks, 13 different bonds. there are about three bonds potentially endangered. that we won't know until after the weekend. the range of losses range from $85 billion to $200 billion. we will not know if any of these bonds will lose their principal. abigail: you are an expert on insurance, barclays was estimating $130 billion. we saw the reinsurance companies trade down. how should that play out? eric: right now there is $500

billion in coastal property in florida close to the storm surge . what could happen is total devastation. all these properties were built after andrew, with the new building codes. you also have mandated flood insurance for most of the newer homes. there is a level of protection are. best case scenario, insurers will come in and make these properties whole. these of the federal government stay in and spend a lot of money in houston. abigail: something that stands out about miami, it is all glass. i have heard about hurricane proof glass. afterthat was changed 1994. they can withstand 145 mile per hour sustained winds. but it has not been tested. abigail: would that make cleanup and potential losses worse? it is accounted for in

that $134 billion number. these funds about in anticipation, they do not know what the costs are going to be. overall they have done really well with the cat bond a strategy. is there any reason to think there would be some sort of hit this weekend, the people still want like the cat bonds overall, given the risk profile? -- reprofile? it who theiru look investors are, they are largely pension funds. arkansas, oregon, pennsylvania. it is a good question as to whether they will see what losses will look like over the weekend and decide if it is a strategy for them. another company was ibm, for example. they might say, they are uncorrelated risks over the long-term, but we need returns

now. we need to not have this. once ine black swans, 100 year offense that hurt these cat bonds. epic,t: we have had two back-to-back storms. thank you both. coming up, we are nearing the one-year anniversary of when india declared most of the country's cash invalid. how has this demonetization played out? we explore with it former chief economic advisor to india. this is bloomberg. ♪

scarlet: "what'd you miss?"

india shocked its citizens when the government declared over 80% of its banknotes would no longer be accepted. 90% deposited in banks and economic growth is slowing, there is a sense the governments move it was a complete bust. we bring in former chief economist at the bank, and former chief advisor to the bank of india. professor, thank you for joining us. my question to you, for so long, india's gdp, 8% was a number everyone was looking at. this slow down, can we make this link to demonetization? >> i think the link is fairly clear. 2008 ats from 2003 to 8.59%. there was a bit of a shock in 2008 because of the global crisis. it picked up again over 7% and

now it is down at 5.7%. the biggest driver of the slowdown is the demonetization in november of last year. currency. the it was given a four hour notice that would cease to be legal tender. that shock is playing through the economy. i knew it would go down. but 5.7% is bigger than what had been anticipated. you say, a lot of people may have expected the economy would slow down. but in theory, a could have been worth it if there was a big removal of dirty cash out there. but the big shocker it seems is that nearly all of the bills made in -- invalid did come back, suggesting there was not

that much illicit cash in the first place. how did the get -- how did the government miscalculate? economy of the parallel was bought in real estate and abroad. so it is not held in cash within the country. but it is not as if no cash is held in india. what happened was, people began using what came to be called money news. they had a huge amount of money, broke it into small batches, and got ordinary people to return that money to the bank. a small premium. not that there was not illicit cash out there, but people found ways to get it back so they could keep it? >> that is right. virtually all the cash came back. there was some illegal money, some illegal money. so that backfired.

there was another reason for the demonetization, ted catch fake currency bone -- notes that it come into circulation in india. in india, one in every 12,000 notes is fake, which is a bit more elevated than in other countries. that was also completely uncalled for. once a currency has entered the system, there is nothing to be gained by catching it and changing it to a real currency note. system, therethe is nearly no reason to take it back. it was a miss plans, misjudged move, and the country pays a price in terms of economic growth. abigail: to me it sounds like an elaborate money laundering scheme. by implication, the system somewhere is corrupt with the money mules you were talking about. what is the next step? how do you clean that up?

>> i do not think it was done intentionally as a money laundering scheme. it was poor judgment in terms of the designing of the policy. yes, money laundering took place in new ways, which were not available earlier in india. people carrying money in small batches. my hope is that this shock will i should clarify, there will be a negative shock when india will pay a price for this. it is the autumn segment of the society. hopefully after that, this shock will wear off. many strong drivers, the global climate is good for india with its low oil prices. hopefully after two more quarters we will see it pick up again. suggest withs money coming back, hardly any counterfeit money found, that

demonetization is a flop. what is that argument from the modi government to defend the actions? >> the defense is, once you have done it, usually the political urges to say it was fine. you do not want to admit it was a mistake. i feel india would benefit if it was recognized this was a planned move. this happened in other countries. south korea made some mistakes in the 1970's. admitting this as a mistake would make big businesses, need to beestors, reassured india is taking a professional look at it and will not make another mistake of this kind again. it is a risk and people begin to fill nervous. will there be other moves of this kind? scarlet: just moving on.

in the meantime, the government has to deal with the slowing economy. what is the policy prescription to the slowdown? >> where india has to put a lot of attention is export promotion. sector has done poorly over the past few years and months. the government needs to put this back up. it has been getting stronger. you need that to be corrected. with aonal belief is, interest rates as low as they into adia needs to move different interest rate regime. that is going to give a boost to many sectors in india. there are other policy initiatives to correct the mistake that happened. joe: really appreciate your cornell professor

of economics, thank you for joining us. juicero.re tale of $130t attracted over million in funding, only to close its doors last week. this is bloomberg. ♪

abigail: "what'd you miss?" juicero shut down its business last friday. dramatic rise for a company that rate in just over $130 million in initial funding. here to talk about the rise and fall of juicero, bolivia -- olivia.

whoever thought that a $700 wi-fi juicer was a good idea? >> some of their biggest investors, google ventures, put in a huge amount of money. campbell soup was even a backer of this company. they really believed in it. they caught on to the logistics system behind the juicer that everyone has made fun of. they had a sophisticated supply chain management system in delivering fresh notice in these little packets. the problem was, that tech could be squeezed by hand. it was a nail in the coffin for the company that was already struggling. you had a role in this. as you reported in the obituary for juicero, the company was close to raising more money until you discovered the packets

could be squeezed by hand and investors were like, wait, what? >> and then they did back off. they were in conversations with ubs china, they talked with offices and funds. they were going to put in close to $60 million into this company to value it at $550 million. our article came out and then those conversations stopped. scarlet: you're based in san francisco, this sounds like a silicon valley-specific story. did anyone in new york and the rest of the country by these $700 machines? >> it sounds like it is from the hbo show "silicon valley." the product did sell in new york for a short period of time. it is symbolic of something that exists in seleka and valley, this idea of solving problems that may not exist, or over

engineering to certain problems. juicero's founder is very creative. people have called him a genius founder. others have criticized him for being a madman of juice. he genuinely believed he was a saving the world, solving a problem, because he felt he could solve obesity and issues of nutrition. other people do not see it that way, they see it as a waste of time and money. the board was voting to wind it down, he was out of the board and out at burning man. >> he had removed himself at the board at that point, he felt it was the right thing to do. a lot of the criticism that came to the company was blamed on him. he removed himself and did take time to chill out, relax on the playa at burning man. abigail: olivia, thank you for joining us. scarlet: a look at some of the

biggest business stories, blue apron has its second-biggest investor. capital world investors has sold its 12.9% stake in the company. blue apron has struggled with production issues and a hiring freeze. shares are down more than 45% since they went public in june. chiefr-old their new financial officer. he will head the u.s. operations, which account for 70% of sales. not pushed has growth since 2015. the massachusetts institute of technology and endowment gained 14.3% in fiscal 2017. m.i.t.'sous years, endowment fell. they expected double-digit gains. hhe endowment is the u.s.' sixt

largest when it comes to higher ed. joe: what you need to know for next week to read -- week. this is bloomberg. ♪

scarlet: lots coming up next week.

, including a new iphone on tuesday in cupertino, california. for i will be watching out the national bank and bank of england announcing rate decisions on thursday. abigail: will the fed have something to worry about? cpi data will be out. scarlet: hurricane irma is scheduled to perhaps hit landfall sunday through monday in miami. that does it for "what'd you miss?" joe: have a great weekend. this is bloomberg. ♪ so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed

across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. alisa: i am alisa parenti in washington and you are watching "bloomberg technology." let's start with a check of your first word news. officials have ordered evacuations of almost 1.5 million people along the southeast coast as irma puts

florida in its crosshairs. now a category four hurricane is forecast to remain at that strength when it makes landfall south of miami on sunday. at least 21 people died after the hurricane slammed into the caribbean. the death toll from the magnitude 8.2 earthquake that struck last night off mexico's pacific coast is now 58 according to the country's civil defense chief. several buildings were reduced to rubble following the strongest earthquake to ever hit mexico, at least in a century. the house will send a harvey a package to the president. it gave final approval it to the deal reached between president trump and democrats. it spends the debt limit and keeps the government open through december 8. president trump spends the weekend at camp david hosting numbers and their spouses. the press secretary called it a working weeken