you can see 47 the futures are part of and check out the currencies because the euro for awhile was 120. i think it's 119 or so and as we said there's no, we look at all of these things we're a business network we have to but we're not thinking about these. we're thinking about people that are miserable and everything else. >> far from it. >> anyway, thank you both and make sure that you join us tomorrow join me on power lunch squawk on the street is next good morning and welcome to squawk on the street i'm david faber with jim cramer and we're live at the new york stock exchange let's take a look on this monday morning. you can see at least the implied open looks to be higher for the

major averaging and europe has been open for awhile and we'll take a look there as well. always like to know how spain and italy are doing. there it is. >> very nice come back frooechb four hours ago very nice come back. it's lead right to ou fur r fut and this is a pattern that people refuse to understand. ten year note yield crude oil also of course in the market action look at that yield. vacation for a couple of weeks i guess. >> it was nice. >> you look great. well rested. >> thank you there's wti, 47.5. >> break that 50 mark. >> you do. findings for gasoline is certainly in focus today given the tragedy in houston that's where we're going to start. the devastation of hurricane harvey, 9 trillion gallons of

water jumped on southern texas more on the economic and humanitarian toll. plus uber gets a ceo meg whitman, we'll have some background there on exactly what went on. >> yeah. >> well you understand what it means for expedia. >> how he ended up with that job. amazon whole foods closes today. that deal continues to rattle a lot of stocks of companies that sell things. >> as it should. >> as it should and it's not necessarily discounted from friday's just tsunami of selling. >> you don't think so? >> there's still some left let's start off with hurricane harvey it continues to wreak havoc. it's no longer a hurricane but it's about the rain. rescue and relief efforts are underway in the hardest hit areas in texas at least five people have been killed 218,000 people without power more than 20 inches of rain has

fallen in the houston area over the last 24 hours. more is expected in the next couple of days the markets are reacting as the hurricane takes 15% of america's refinery capacity off line gas futures hit a two year high. we tend to focus as we should on the business aspects. >> yes. >> others will focus on other parts of the story but there's an important business aspect beyond what is the central aspect which is what's going on down there. >> i wish the best for everyone there. obviously it just shows you the devastation but happy to go, first of all, the easiest trades that people think are the home depot and lowes. let's use katrina which is $1 billion. that's the extreme worst case scenario. home depot and lowes went up for

about a day and quickly gave up the percent. the winners will be the refiners they are in good shape and they can take advantage of the increase in gasoline remember we export a huge amount now and there's no place to be able to get the oil to anybody else. 3 million barrels of refine product. so they could be in trouble. the biggest winners are the ones that are least intuitive rally very hard a couple of days after katrina and then continued the valley ace had the biggest move but they all went up progressive if you want was up 20% 17% the reinsurers spectacular

initially fell from 70 to 60 and then rallied back to 74. >> i want to understand that because you wouldn't think that the claims are going to be rather large. >> yes and what happens is the companies are able to raise rates. it's a great opportunity to raise rate which is is why in knee jerk fashion these all go down remember i'm using worst case. now some of them are hard. let's take andrew off the table because andrew was the first that made them realize we have to reinsure. we cannot get caught in this some of the smaller ones didn't make it through the period the ones that are left are strong so what i would advise is do the opposite of what's happening today. the home depot and lowes ought to last for a couple of days it's a complete lack of

information about how that trades and it's just stuck. unless we see tremendous damage they should be back online we're talking about how long this lasts and sbrinterruption t they should trade right off of this there's going to be way too much oil. not as much refined product but again valero if you go to their website they are the winner. >> okay. let's get to more on what the storm continues, storm means for texas right now. contessa is live for us in houston and joins us >> 30 inches of rain here in houston and counting

we're seeing some ebb and flow as the r army core of engineers releases water from two reservoirs that they worry could be overtop it's less of a risk to know that they could add additional flooding to nearby neighborhoods than to risk having the water over top at this place we have seen the water recede the flood water was going into the lancaster hotel. we talked to some of the employees camped out inside but a guy said he has been here for two days and has no idea how he's getting home. no woernd. take a look at the street. major interstate shutdown. roads flooded. intersections flooded. the phone maps are trying to reach around the flooding but we found one way in yesterday only one to get into downtown houston. so it's no wonder that employees

can't get in buses aren't running people's cars are flooded. when we went into the convention center where there's thousands of people taking shelter we met a doctor and his speech pathologist wife and he said i need to be at the hospital but my car and home are flooded and i have no way of getting there and that scene will be repeated throughout the day some of the police officers have been on duty for days on end a security guard says she has been here since thursday and hasn't been able to go home and getting food into these people because of the roads being shutdown and so many businesses it's something that business owners are going to have to try and grapple with and how they do that at this point is really questionable david, jim >> thank you con tess atessa. we'll be checking in with her shortly. let's get now to angie that's going to give us the latest on the storm's path right now.

>> here's what we're talking about. not a hurricane anymore but a tropical storm right now moving into the gulf just off the coast of texas here as we go through the day today the path takes us wednesday morning. 45 miles per hour winds still with this and moves back on to the texas coast. taking a look at your radar, good news and bad news better news through much of the overnight hours. much quiter weather. still scattered storms but as we look toward lake charles that's where the heavy band of rain continues to bring in the gulf moisture bringing heavy amounts of rain to portions of east texas and of course of person

louisiana. that will be the main focal point now. we're still going to be looking at the dams to be released through the next couple of days that could lead to the homes being flooded for months the ones we have seen increasing their flood levels here take a look at one of our models. rain forecast over the next 36 hours. 15 to 20 inches of rain expected in texas that does extend into louisiana fl lake charles looking at 8.5 inches we continue to watch for the flash flood watches and flash flood warnings, power outages. so a system to watch we have a couple of other spots

we're keeping an eye on. what is now off the carolina coast that looks to become a tropical storm as we go into tonight and tomorrow that coast will feel the effects as far as 3 to 6 inches of rain and possibly some of the tropical storm force winds. a lot to talk about. we continue to monitor harvey and of course the other disturbance off the coast. back to you. >> thank you one off but home depot is the last half hour now it's up 2.5. give me a break. you're betting on the theory that people come in tomorrow and say they're going to be good there's a lot of opportunities today that have nothing to do with harvey. >> let's get to, bur uber. expedia's chief has been picked to run the giant ride hailing company. it's being called the truce

choice that's very tangled in terms of whether she really truly had interest or interviewed for the job. he has his work cut out for him jim. he was to the founders choice. he was not benchmark's choice. that was meg whitman though. people close to her indicate to me had really made it very clear that while she previously said she wouldn't take the job at all there were some conditions under which she would take the job now she has been an investor in uber for sometime and it's not a-typical to have conversations as she has with the company and benchmark was focused on her as

the person they wanted to run this and i am told that after they interviewed them they came back to meg late friday saying come on, won't you consider this and then she did talk to them on saturday. >> she did talk to them. >> yes. >> even though hp is adrift and this was supposed to be the break out second half. you're telling me that she considered this job. >> she did. >> well that's remarkable. >> now remember it hurts her statement toward the end of july that was i'm not going to take this job but it's my understanding that a certain amount, the right set of conditions if they had been presented to her that she would have possibly taken this job. >> those conditions by the way were not met. >> i don't know. wow. >> i have been struggling with hp my charitable trust sold it because i thought it was dead money. this is one of the most competitive areas there is there is a lot of different things that two up against.

>> but the big winner has been the other play >> meg whittman almost always joins us so you'll get an opportunity to ask her. >> to be fair, whoever foresaw this if you go over the cisco quarter recently, you know >> back to uber for a moment he's done a good job running expedia, there's still a battle going on here within the board

itself he probably wants to be ceo. that's a flawed situation and walking away from a very large potential payday given where his stock could be but willing to do it and has been without management for months. but it's an interesting situation at uber and whitman wanted everything settled.

>> street has been betting against him constantly this man is a miracle worker he's done great things it's so brilliant. if anyone can pull this off he can. >> he is a peacemaker. he's a survivor. >> we'll see who takes over. when we come back we'll talk about amazon closed today $42 a share. remember that? now the question is, as it was last week, what is it going to mean for competition for the likes of target. walmart and kroger we'll take a look at that story when we come back. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me?

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changes already being implemented. whole foods is offering lower prices also special savings and other instore benefits you'd expect that the market or

investors seem to think it's the beginning as they move the pricing lower. >> there's only 400 plus stores. but the most important thing is that they had the highest dollars per square foot of any retailer which means they could cut it in half and still be ahead. kroger down slightly

the problem is you know what's koc coming but it can't happen yet i'm still waiting for who is going to run whole foods. >> amazon can blowout the big 1,200 if they want to. they recommegnized where they nd to put the stores. all i can tell you is that if amazon puts into play the plan whole foods had three years ago that's when you should be worried. >> i want him to come back. >> you keep saying that. why do you think that's going to happen >> he has good relations with some of these people. >> we'll count you down to the opening bell and take a look at

futur futures.

recharging this weekend. i want to stick a fork into something. estee lauder absolutely no chance nothing. not involved those saying that's

a take out your dead wrong. >> sunday times, london sunday times. >> there's been a lot of saying that unilever is interested. the chairman says there's no truth to the rumors. the company is not for sale. >> can you stop it you've seen it time and again. it to just say enough. those that are writing those stories, why don't they call bill why don't they call the family why don't they call the company? why aren't they doing the work that i'm doing and the answer is bozos. >> that's the answer opening bell a few minutes away. opening bell a few minutes away. stay with

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opening bell is going to ring less than a minute and a half from now. all right now is the time what's the key today for the market. >> berkshire hathaway, remember they are the foremost reinsurer and just so people understand that's a company that had a dip of some magnitude after this as people felt they would be hurt they ended up being nicely higher three weeks later so here you have a double whammy people understand that warren buffet is going to come on air and say this is good for our company and not bad. >> so they all ben fitd from natural disasters. >> let's go over for katrina we have to do this

27%. do you know what's a real interesting play david cbre to relocate. up 35% that's a hidden buy. they really did well the best one i could find. >> there you have it the opening bell here at the nyc. we'll have a higher open for the broad based average. it was the police and fire widows and children's benefit fund doing the honors. at the nasdaq, a digital platform for savings and investment. >> now david they may be 11th

and 12th round >> that's low. >> it is at least there's the expectation that it's going to be well less than katrina or sandy. >> or sandy. these tend to be shots in the arm. now donald trump, president trump will be down tuesday i think he will talk about the most incredible amazing and best ever but you're coming in on a stock that did not do well after it reported so i think this is femoral versus the insurers and

valero which is my pick. >> that as well. >> they're not down. there could be a wind fall prospect. >> you're talking about production not down. >> gigantic exporter of not only just crude but more importantly refine product to mexico now where are they going to put the oil? they're going to sell it for less than $47.47 my pretix is crude gets in here pretty heavily. >> i want to transition to procter & gamble this is not going to really heat up until after labor day but you have another letter this morning. we are expecting in the not too

distant future to hear from mr. peltz on what he feels needs to be done at p&g the focus is to say measure our progress in the stock market and guess what it looks good for the company. >> this is is the big issue for people at home if you think a longer term perspective should be done on proctor then you would want him on board if you think that all that matters is since mr. taylor came in you might think as they say that maybe mr. peltz is not the guy. now he will argue mr. taylor comes back and talks about people that are new.

>> they're happy to continue to listen to him but they don't feel that mr. peltz would be helpful to the p&g board and management team that are successfully execute a plan that has the company on what they say is the right track. >> did you think that the saying make some calls to mr. peltz and he's thewrong man. is that back handed david? >> a little by. >> but this is occupying high ground and the expectation is that it will stay there. even if peltz were to lose this he has the company in a position where they have to perform or in a year he's just going to get that seat and it's going to be tough for him. 40% of sales are held by retail. right off the bat. that would largely go that way

we watch them start to engage more fully after labor day as you head into the meeting. >> when we urge you not to vote but what they do say is his argument it did well the last year and a half. i don't want to lose site of this terrible storm. they can't get the employees and one of the things people should understand is its the employees getting to work that is causing the outages.

he's a frequent guest here on squawk on the street giving us updates on the company that has been strong. >> it's been incredibly strong. >> it's been quite graeuessive n it comes to acquisitions >> there's been a number of significant acquisitions that has put it on a successful track. different than another company that it once owned. >> trip adviser. >> it's been a big loser now and one of the things that they did with home away instantly is is make it like airbnb versus a site that was hard to navigate and understands look, ease of navigation is so important >> have you noticed amazon the

stock is quite poorly. >> i have. >> i have to wonder whether there's this antimonopoly argument is kind of out there and you got the president people don't pay as much attention and they shouldn't but he keeps linking the washington post and amazon. >> yes he does. >> i wonder if that's starting to mix in a little bit. >> historically these storms have benefitted amazon because what happens is the actual local retail takes a little time to get back in but the consumer still wants the goods. so remember there is a short-term longer term, intermediate term in the houston area people are going to be ordering from home from amazon and amazon will get you the product but the stores may not. >> right but pretty soon you'll be able to order very quickly whole foods coming to your door.

>> and it's interesting to see where whole foods is right now whole foods is close to people in urban areas and that will be an interesting ease with which they can get the food to you i think that, david, there's people that say wait a second. they didn't really care. you also have to advertise, they didn't care at all. >> no. >> worry about a month nop lis. >> right. >> but remember your advertising the cost of the club so you can say like costco they don't make that much money on food they're the victim here. i happen to think they're a strong company but understand that costco has a, you should get that. >> i can't, i can't. but i want to because it has to do with the report this big deal we're going to talk a lot about

but there's people that weren't here on friday to sale it's a longer term course but short-term possible boost. every storm lead to a great deal of business from people that say i can't get anything >> let's get a look at what else is moving. >> it's important to know we're in a holiday week and not shortened at all but a lot of traders are on vacation. the dow up about 18 points at this point if you look at the sectors that are moving, you can see .2 to the upside right now energy for

sure leading the way higher we want to keep a focus on that given the tragedy in texas with hurricane harvey they're starting to hold steady. they're lower because when you have refineries shut in they cannot process oil oil supplies are sitting there as a result you guys mentioned it before here exxon mobil a big presence in the gulf in terms of refining

capacity that's something as well i want to end on you guys mentioned the consumer staples side of things we're watching shops like kroger but also remember smaller cap stocks and also the farmers market also stocks to watch. they were weaker in the premarket we'll see if they extend those into trading today but those are the big story lines. hurricane harvey is something to watch here as developments come up and insurers will be talking about it later on. back to you. >> thank you >> kroger with a bounce back. >> do you want to see it again. >> let's talk about this deal. $11.9 billion in cash.

it's not going to be for awhile. >> so what gilead has a pulse >> you can see investors are agreeing with mr. cramer sending the share price up and not down at least for some time 11.9 billion you saw it there $180 a share and it's going to be after three years.

but when you cure a lot of people they don't need the medicine anymore that's why it was so high now they move firmly into oncology and this is a new class of drugs that on the human side of this may present very very positive viewpoint for those people that are t in the throws of lipoma and have exhausted other treatment options. they're out there ready for different indication same or similar class. they take your cells out and spin them around to add their and they become cancer fighting

cells. this is not a company with any weapons. they have a nice price at kite and did a great job for their investors. they have only been public for three years. the irr 110% went public at 17. and here they are selling out now at $180 a share but again investors are embracing the idea that they are broadening the franchise, presenting something that will be conceivably transformative for patients and

doing what they like to do which is finding these potentially ground breaking companies early in their gestation although not necessarily early when it comes to the money they're paying. >> that means they have a great sense of what's going to happen. there's been positive results as of last fall a ton of chatter now deals about to happen in the drug industry as people realize wait a second we have to find a way to grow. >> right. >> they have been looking for it they played in the auction of course pfizer ended up buying them so they have been looking at oncology for awhile we talked about the fact that they have the most balance sheet

capacity given what they generate interesting little story here personally invested a few million dollars in this company. going to take out half a bil. >> congratulations >> not that he needs it. not that he needs it. >> well he could be giving it aw away they're going down wait three days and then buy them when people realize that rates can go higher. but this has been the process over and over and over in storms notice that it's down badly. progressive is one of the big winners three months later after

katrina. so i didn't mean to interrupt. >> no, the faber report had come to its logical conclusion. >> no, you mention that people always say well goiths to make its move 22% so let's just focus. >> this is the largest life sciences deal for a company that doesn't have a dollar of revenue. jil was mentioning the insurers that prings us back to harvey. brian sullivan is live and has it all for us. brian take it away. >> thank you we are continuing our slow creep up from galveston seeing how far we can get from houston. good timing. that's where we're outside of. that's the exxon mobil refinery. that's the second biggest in the united states. 584,000 barrel a day capacity. you can see there's nobody here guys this place is shutdown along with the majority of the

refineries in the fwufl coast stretching all the way through to houston and galveston area. 2.2 million dollars a day of capacity a lot of that in trouble the majority are also shutdown they gave us a response and wouldn't say what the status is for security or whatever reason but given the condition of the roads which we have driven around extensivelyon the last few days not a lot of traffic. people can't get to work they're worried about their families here guys from a pricing perspective it's very interesting because it would probably be bearish for crude and bullish for gasoline but the one thing that i would put because we're not using oil but the one thing that i would counter that with on gasoline is this, you have to remember that there's 23 days of gasoline supply right now we're well supplied for gasoline and there's not going to be much demand

especially around here 6 or 7 million people. schools are closed most work is closed. so you're going to see a huge drop off at least in local demand i think the key for pricing going forward is going to be how long these refineries are shutdown this refinery was shutdown for nearly a month so the question is how long are these refineries going to be shutdown can they get the supplies because they need all the stuff that comes in on ships where we were this morning and still losed. there's a lot of variables here. too soon to know but a quiteda all around we'll continue our push and see how close we can get >> quick programming note as we head to a break. an interview you won't want to miss on wednesday at 11:00 a.m. eastern. warren buffet joins becky quick. >> seller. >> seller of ibm might reiterate

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apple is going to unveil new iphone september 12th. broadcom reported a quarter that's excellent the sellers just came at it from everywhere knocking it down 10 it will still go down because the sellers aren't done. they're big but a lot of people felt the reason it was going down is the apple launch would

be later than expected and they didn't say anything about apple obviously. they're the number one supplier in the iphone. they don't know what they're doing. they didn't read between the lines and the commentary as i have so let broadcom come down and then just trap the shorts and trap the longs that are selling without knowing that september 12th is here. >> here it is. >> six flags new ceo they have a texas exposure problem. the loud and the data center have been two stand outs here during this period i'm going to hit them very hard tonight. >> as you should. >> i'll see you back here tomorrow morning. >> wait three days and buy that's what all storms said but particularly katrina wish well all the people that are in the flooding situation. >> when we come back more on hurricane harvey of course don't go away. ♪

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>> welcome back to squawk on the street here with david faber. nice to have you back. carl has the day off today >> dow is down just fractionally and s&p 500 and nasdaq edging slightly higher. coming off of a week from stocks breaking that four week losing streak in nasdaq oil prices down 1.5% in wti. we're going to go live to texas for the latest on the devastating storm and what it means for the economy. >> then uber has a new ceo

finally. what the selection of the expedia ceo means for the ride hailing company. >> finally amazon closing it's acquisition of whole foods today and prices are coming down what to expect is later this hour. >> but of course we start with hurricane harvey causing massive flooding and at least five causalities now. jackie is live in corpus christie texas with more on the story. what can you tell us >> good morning to you sarah, well the weather calmed down a little bit here and people are started to come out and they hit the streets and they're trying to cope with the devastation a lot of the city still doesn't have power you have a lot of intersections that don't have stoplights and traffic lights that are working so they're urging everybody to come out and be careful.

that's where a lot of devastation occurred we talked to a handicap victim his name is rick and he explained his experience for us. >> i did lose everything so it's very difficult to put everything into words >> because of his disability he was not able to evacuate friends did take him in but you can see some of the video and images of his home here. the roof was literally taken off of it and tons of mud poured inside obviously possessions, material items were destroyed but rick told us he was just happy to be alive and he wasn't the only person that said that. what was interesting in the sentiment in terms of the folks in rockport there was a lot of

solidarity for the people in texas and houston. they may be reallocated to go down to the area and gives you a sense of how they'll be allocated but they said if the people in houston need the help they should have it. we'll be patient and hopefully try to dig our way out of this back to you. >> jackie, thank you very much for the dramatic accounts and pictures of the human toll there. thank you. for more on hurricane harvey's path let's get back to headquaters where angie is tracking the storm good morning. >> thanks guys, good morning, we continue to be watching the radar closely. a couple of different things from the past couple of days you can see houston dealing with the heavy rain but we don't see the downpours being ushered in system off the coast of texas. you can see lake charles, portions of louisiana now turning to those areas to watch

for ample amounts of rain to come 30 inches of rain to speak. much more to come. we have much more to come. still watching for a lot of flooding and we still have that heavy rain in the forecast for houston and parts of louisiana on top of the fact that tornado watches are out there for the eastern side of that storm >> we'll continue to check in with you on that front thank you stay close former homeland security secretary joins us

since you have been there through these sort of things we were medicine hsmerized my membf the coast guard coming in and lifting people from the roof tops talk about this size and scope this hurricane requires from a federal response level. >> thank you and good morning. this is an unprecedented situation. we are very early in the disaster we have a long way to go

i think the fema administrator early this morning underscored what is at play here and the importance of the partnership. between federal state and local authorities and the private sector much of the infrastructure we're focused on in the houston area is owned and operated by the private sector so the partnership that goes on in terms of determining priorities and how to get that infrastructure back up and functioning is a result of many long hours of meetings, of phone calls that have taken place over the weekend in terms of understanding damage and disruptions and how we'll get that back up and running >> we're also told that 30,000 people are going to need temporary shelter. is the texas region equipped for that >> that's part of why the

governor has declared a state of emergency and fema is poised to help with individual assistance and also with housing. there were a lot of lessons following katrina as we look and move into the recovery side that we can apply here in houston but that's where the federal government comes into play when communities are overwhelmed by the situation by disasters. >> we have been tracking the hurricane tracking energy production in this country give us a sense of how much damage you're tallying in terms of the refineries, production facilities and pipeline and all sorts of other infrastructure.

>> we have a lot of clients and colleagues and friends in the houston area it's been a tough weekend watching this unfold the amount of rain is staggering and there's more to come there was a debate about nine years ago about which side of the equation was going to win out. would it be a bullish or bearish response and it was because of residential and commercial demand and so definitely refineries are taken off line. there's some issues maybe, some production platforms about 25% but all the folks not consuming electricity and really making a big difference heefr so i think this is a bearish angle or natural gas. still bullish on gasoline due to the refinery shutdowns but from

a natural gasper speck t perspe bearish result here. >> how long would you think it would take are we talking about multiple weeks and months where we don't know if capacity is going to stay off line for that long or is it going to be a quicker assessment >> it's a really interesting situation. when ike hit it was a fast moving situation this was a much longer slow motion disaster so we had a few more days left of exceptional flooding the rivers have yet to crest so it might be another 1 to 2 weeks before we realize the damage to the facilities in terms of overall effect on the natural gas industry we'll get a good assessment next week when it has their report but we're looking at 1 to 2 weeks here probably. >> and on the timing question, hard to even fathom the recovery and cleeb an up effort while ra is still bearing down on the coast but what are we talking about in terms of fema's

involvement and clean up efforts? years. >> it's probably going to take years. we again i think have to let this play out a little bit and fully understand the extent of the damage but i think that part of what we're going to recognize here is the highly dependent and interconnected nature of our infrastructure we have an ecosystem where you can see cascading impacts so where you might normally have a quicker recovery the fact that we have seen the damage that we have seen on roads and highways. when are we going to get ports open all of these things play an important role in insuring the ability of communities in industries to bounce back. so it's not just an assessment of one part of infrastructure but infrastructure as a whole

but certainly it's going to take years for the texas area in particular the houston area to recover to normal but what we have learned through katrina and hurricane sandy is our communities, our people are resilient. congress needs to focus on insuring that we get money to the effected area. i think it's important that the president ensure that the department of homeland security and all other federal agencies are at full strength and we can bring the total bear of the federal government to help in this situation. >> we'll leave it there. thank you for joining us with your perspective on this. >> for a closer look at the market impact of hurricane harvey, let's bring in brian, capital market chief investment strategist and bill smeed, ceo and cio of smead capital management good morning to you both guys. >> good morning. >> brian, obviously this is not primarily a market driving

event. certainly a human government response story but it seems as if one thing we might expect is that the third quarter economic numbers could get noisy. we saw where you had a suppression of activity and then a bounce back and i wonder if it means we'll be taking these numbers whether it's jobless claims and others with a bit of a grain of salt and what it means for i guess figuring out what the underlying strength of the economy is in the third quarter and what the fed might do. >> well, remember, mike, back in 2004 we had a very strong economic recovery and then things started to fade already into to 20 05 when hurricane katrina hit so the bigger issue is the economy this time around in 2016 or 17 has been very strong heading into this period so there's no doubt there's probably going to be a slow down but things like oil in the markets had already been in a downward spiral in 2005. if you remember in 2005 the

market was up only 3%. we got a lot stronger gains so far in 2017. so we could see a little bit of slippage but we would not think this is going to be material in anyway and nor do we believe that investors should change any kind of longer term investment strategy this could be a buying opportunity but it's not going to be anything that we think would derail or force any kind of slow down in terms of earnings, gdp or anything with respect to recessionary impacts. >> as a value investor, someone looking for when the market overreacts in individual situations with companies are you on alert for anything in terms of surfacing opportunities based on the sector moves here or in general in terms of the recent choppiness in the market we have had. >> first i like to mention what a great country this is. we're in seattle and one of the best markets for our work is in the houston area

we want to make sure that our friends know that we're praying for them the second thing is the history of these things from a business standpoint is they're stim eu stimulative. it's the same reason they want to do government works a lot oo do you have a lot of things to do so on a six to 12 month basis it's a positive but not positive at all when you think about them having as much rain in four days as we had in six months in seattle and that was the worst six months of rain we've had in 80 years the market impacted by the hurricane. you're seeing the dollar weaken off of weak levels already this morning. highest level since january 2015 is this political or economic

and at what point does the dollar weakness start to get everybody else's attention >> well, gold is also rallying silver as well sarah so we would say that we have seen a little bit of a rush to defense with respect to what we have seen in terms of infrastructure policy comments have probably helped the bond market rally in terms of yields. in terms of prices i'm sorry it's just coming into, this is august this is probably one of the slowest weeks of the year aside from last week and then the real business starts to get done into september and then we start talking about government shutdown and everything so i don't see near term craziness in terms of a buying opportunity. this is a blip and mr. smead is a client so of course he's correct but we see stim euactivy through the years historically and maybe on the political front

you'll see the infrastructure bill get pushed through or maybe there's more political talk about that to force the issue. >> >> sarah. >> go ahead. >> i want to add that the it was 138, $1.38 on the euro three years ago so you had a huge move so in the scheme of things currencies overthree year time period and somebody got overcrowded in that trade looks like. >> thank you for your time this morning. >> thank you. >> when we come back, the wait is over. uber finally naming expedia ceo as it's own after a few months of pr trouble and of course the exit of its founder and chief executive. we'll tell you what that means for this ride hailingit

ne xtg an say carl, we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $4.95 per trade? uhhh and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.

>> that is the big question. there's also the lawsuit over

the aon tutonomous vehicle technology and he has to boost moral for a company just gone through the ringer back to you. >> thank you for that run down. let's get a little bit more on the new ceo and what he is facing bring in jeffrey, the senior associate dean for leadership studies at the yale school of management he has done a good job at expedia and leaves money on the table to take a job at a prominent private company that still has a war going on between one of its largest shareholders on the boor and it's founder and conceivably a founder that still wants to play a significant leadership role. i don't know to me it seems like that's a lot to take on including running the company. >> there are interesting ways to

unravel this first, he is a sensationally great choice i must admit i don't know him. i thought they would have been fine in this job mark fields would have been perhaps even better but this is a truly dark horse candidate he's in that category of what we might have called like say larry page or michael bell a truly discreet disruptor but also a number of people that would have known him in mobility people don't know him. the fact that he has been a strong performer he's no shrinking violet

that speaks legions for him. >> you understand it better than most anybody it's not a public company i get that but what about this dynamic where you still have benchmark suing him and you still have him wanting to gain more seats that he says he's owed so he can take control of the board step into that situation as the ceo and tell me how you're going to make it work. >> well, thanks for the compliment there's one big category. >> that was david again. >> oh david. i give the credit to david a compliment from you david caught me by surprise, sorry

but they have given a lot of legal authority to be unreplaceable. but it's purely a voluntary move and he can bring in a few more people on this board they agreed to the terms also the benchmark representative is perhaps part of the deal when he left in june same thing as the tpg voice. so huffington there with a basically you have one faction, a board of nine people five of them have barely a year on this board.

it's incredible. it's a very inexperienced board in terms of their own board chemistries and management, we don't know a company that we can talk about today that has a group of basically 14 key positions. no head of marketing and the head of technology who is running this ship so it's confused. >> it is now it's going to be there. >> he has to be a ceo and therapist too. we're going to leave it there for now but thank you. >> exactly cfo, he has done it all and it's very very promising that he lead before bringing them in also high hopes for what hooil be

able to do here. >> he's also been well come pen sated. >> yes. >> we'll leave it there for now. thank you. >> yes he has been. >> all right bye. >> we do want to touch on amazon, the e-commerce giant closing it's $14 billion buyout of whole foods today changes are already being implemented. whole foods for instance is offering lower prices on a lot of its produce, bananas, salmons, organic avocado and other products and also planning on giving amazon prime members special savings and other in store benefits last week when this announcement came out and a lot of it was a big pr push by amazon and whole foods to let them know hey we're taking over we're catering to millennials and going to the produce that you consume and ro gatt chickens but a bigger threat is the fact that the prime offerings are going to be there and what whole foods is going to look like offered across all of amazon prime because whole foods

only has 400 stores and many of them do not overlap with the walmarts and the krogers of this country already having a price war of their own the question is what is the digital strategy going to look like. >> does kroger have a digital strategy >> it does it's started delivering in local cincinnati markets they have been doing this click and collect program online for a few years testing that out but they are billed as a brick and mortar grocery store they're not a supply warehouse chain like whole foods could become for amazon. >> meanwhile amazon stock down 12% from its high. >> true. >> when we come back we'll head back to texas for more on the impact of hurricane harvey what it means for the markets and more stay with us

being used to real time monitor harvey and as you can see on the map behind me parts of louisiana as well now the folks here monitored the storm throughout the weekend but activity is going to pick up in the coming days as more claims begin to come in and it's too early to know what the cost of this hurricane is going to be. analys analysts to name a few. to be some what limited. based on public information estimated this morning that the market loss is currently just under $3 billion by way of comparison hurricane andrew was almost 25 billion and super storm sandy was just about $20 billion but that's just one estimate and the estimates are

all over the map this could be a 10 to $20 event for insurers and this is spanning the math right now. but this is still very much a flooding event as well many losses aren't going to fall and they're going to fall on the federal government and when you do want to keep an eye it will be the commercial side and auto side and they all have resources on stand ready to be deployed as soon as it's safe enough to go in in the case of travellers and most of the adjusters that will be coming to the area to assess damage are going to be doing so with drones guys back to you. >> morgan, thank you very much travellers is the biggest loser now in the dow

coming up more on hurricane harvey to come as we'll speak to the first undersecretary for national protection and programs at the department of homeland security tek t seerit trt gh afr this reated the ripple: reated the ripple: the doughnut in a doughnut in a doughnut. right away, it was a success. i mean, it really took off. what people don't know is that it all started with points from my chase ink card. i bought the ingredients, utensils, even custom donut cutters. wow! all with 80,000 points. what will you create with your points? learn more about the ink business preferred card.

>> federal emergency management director says they are committed to getting federal resources to texas as quickly as possible with hundreds of thousands of people likely to seek assistance

r. >> we're expecting over 450,000 potential registers of disaster victims. that's a huge number but we're ready to go to process >> more than 1,000 flood victims have taken refuge at the city's george r. brown convention center and more are expected to arrive as rescue teams pull more residents from their homes that facility has enough room for 4,000 people you're up to date. that's the latest. i'll send it back downtown to you. >> okay. thank you, sue let's get more on the impact to refiners and the overall economy from the huge storm. brian has that part of the story for us certainly the roads are already

wet. let's move on past that to why we are here. the story is obviously the biggest one. to put it in perspective it's one of the top 25 in the world it has about the same economy as sweden as 500 to 525 billion a year gross domestic product so when you look at so much of that whether it's oil and gas, whether it's shipping, remember it's not just oil and gas shipped in here it's a big carpe carport. a lot of electronics the heaviest in the united states by tonage and most of that is simply shutdown. i mean, david, this is bay town. this is the second biggest refinery in the united states behind us. the question is how long to get it shutdown.

there's no reason that spriess should be spiking. however if all of this refinery capacity, about 15% is off line, if that stays off line for an extended period of time if the ships back up into the ports of houston or if people can't get to work because the roads are flooded or their house is gone then you're going to see a continued creeping up of prices. it's a national story in a sense that so much of what is made here from a refined products perspective david is also centered around the country and keep this in mind 50% of jet fuel is refined here as well so there's a lot of economic angles many of them are getting started here one thing not getting started is

that 580,000 barrel per day refinery we'll try to push in and head back toward the ports and see if we can learn on the ground. >> thank you for your reporting of course we'll be checking in with you very frequently brian sullivan down there in galveston. let's get more on the federal and state emergency response to the storm. we're joined now on the phone by former undersecretary of homeland security that oversaw national reforms after katrina thank you for being with us. you know, given how unlikely this event is, how much do you expect we'll learn about the damage and things like that? it seems hard to have a sense at this point given we're still in the midst of the rainfall to have a sense as to what is going wrong or what has gone wrong completely in terms of on the ground. >> good morning, well i think you really hit the nail on the head it's not what we know, it's what

we don't know that is going to be the dramatic driver of what the federal government does and local government does in the aftermath and i think brian teed it up. and you're into recovery operations we're 96 hours into this event and the event is still continuing so it exacerbates the problem on the part of local officials and state officials and federal officials and try to

assess the scope and and some of those building standards in place that minimize the impact of the flood, we have broken those by magnitudes of multiples of tens. and so the damage is going to be much more widespread and it's going to be a much longer and harder recovery. >> and just for your experience with hurricane katrina that is the costliest storm in u.s. history. $108 billion in 2005 in damages.

no two are alike it would not be unfathomable to think that you'll see damage levels approaching the katrina scope and scale simply because of the depth of flooding that we're having in houston and the nature of houston as brian reported earlier it's the 25th largest economy in the world. and the industrial complexes in louisiana is much more significant. >> you mentioned that you emphasize that every situation is different when it comes to these things but what would you say would be the top couple of lessons from a government

response perspective from katrina that are top of mind now when it comes to harvey? >> well, i think there are three. one and the state of texas the local communities along the coast did a good job but we have to remember that last monday everyone woke up and they had to marshall resources in very short order and one of the take away lessons is the plans have to be in place. those plans have to be exercised and there's every indication that the plans were in place and that they were exercised and state and local governments were able to pull them off.

you don't measure the nature of a disaster by the number of problems you have but you measure it by how quickly you're able to deal with the problems you do have. the scope and scale of problems in the greater houston area, large number of rescues, a large number of challenges that they're dealing with but early indications are that they are jumping on the problems, they're dealing with them and look, you know, at the end of the day, the great challenge comes down is government cannot be everything to everybody all the time and particularly in a disaster and there's a level of self-resilience that you're seeing among the citizens in texas that's quite admirable. >> we have been seeing a lot of it thank you for joining us we appreciate it. >> thank you. >> as hundreds of thousands of people are expected to seek

assistance the national flood insurance program is set to expire $25 billion in debt and a lot of that came out during super storm sandy in 2012 and all the way back to hurricane katrina in 2005 the programs can only handle another 6 billion before it maxs out. now there has been on going debate on capitol hill about how to extend this program but they're now elevated and conservatives have put the reform like premiums for homeowners for getting more private companies into the market but this morning, representative mark walker who heads the influential republican

senate committee he signalled to cnbc that he might be open to additional negotiations in the wake of hurricane harvey >> i believe that there's further discussion at this point but i believe it's a little premature to call a specific hard line decision on which way to go. >> there were a number of texas republicans who voted against additional money for flood insurance or for emergency aid after super storm sandy. the chairman of the house financial services committee is from texas and he did vote for those bills. i'm told that he is talking to gop leadership about bringing the flood insurance program up for a vote once lawmakers return to washington next week. back over to you. >> we knew budget battles were already heating up this only complicates that thank you. coming up more from texas and the economic impact behind hurricane harvey squawk on the street will be right back after this. at fidelity, trades are now just $4.95.

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the art and expertise of high-conviction investing. translation? why invest in average? proctor and gamble sending a new letter to its shareholders in the ongoing proxy fight with investor nelson peltz and arguing once again that he does not deserve a spot on the board, arguing he is not the right director for the company and with a new view from p&g, what's new in this letter that i picked up on is they say joining the p&g board is not an entitlement, and they go through some of the qualifications of the board members. 11 diverse members, most of whom are former ceos and current ceos, like meg whitman, for example, with proven track records, and that you cannot just join a board. as far as the argument why, they continue to say that david taylor since taking over this

company about two years ago has shown outperformance on organic growth, on the share price performance, and on earnings trian, though, has argued that over the last ten years, p&g has underperformed, which is true, and is in desperate need of a cultural shake-up and a little more urgency when it comes to cutting costs and improving performance. we'll see where this goes. expect more letters from trian ahead of the october 10th vote. >> all right we will be following it, of course let's send it now to jon fortt for a look at what is coming up on "squawk alley." >> we've got vmware's ceo talking amazon cloud partnership and security fitbit's ceo will talk this, the ionic, and h iowt's going to compete with the apple watch, coming up on "squawk alley."

record amounts of rain pouring down on texas, causing massive amounts of flooding. our contessa brewer is in houston with more on the economic impact of the storm in the fourth biggest city in this country. contessa >> reporter: it is heart-wrenching to watch this. i'm at the convention center watching a school bus just come in and, uh --

[ crying ] there's little babies, and i've just seen a little kid just burst into tears, and his parents trying to comfort him. what we're seeing is old people who really need wheelchairs have been coming in, leaning on the arms of the people who are helping them, strangers. they don't know them right behind me is an elderly woman in a wheelchair who says that she's been separated from her family, and you cannot imagine the numbers of families. you see the small children coming in, their homes destroyed. the sheriff has tweeted out here, the police chief has tweeted out that the rescues are ongoing now. they're in the active role of getting these people up and out. and he's telling people, please, stay where you are if you're safe, please focus on helping your neighbors now a lot of people bringing in donations, including companies, and the boy scouts helping these

folks in and out a really emotional time to watch all of these people pouring in we're at 2,900 people at this point, guys. so, we'll keep an eye on it and bring you more as it comes in. just overwhelming. >> yeah. it is difficult. contessa, thank you. and emotional to see but also heartwarming to see how many people are pitching in. >> absolutely. >> seeing images on social immediate ya media, rescues our contessa brewer from houston, thank you more "squawk on the street" when we come right back

welcome back to "squawk on the street." i'm courtney reagan. markets are mixed with health care standing out as the best performing s&p 500 sector, and by a wide margin most of the gains are in biotech stocks with biogen, gilead and celgene leading the way. now down for the start of "squawk alley." >> good morning. it is 8:00 a.m. at uber headquarters in san francisco, 11:00 here on wall street. "squawk alley's" live. i'm jon fortt. welcome to "squawk alley." with me, sara eisen and mike