are among our guests tomorrow. you can catch me on weekdays on "varney and company." we'll have full coverage of the destruction in train to breaking news this morning. the death toll has risen overnight in texas, but getting relief from mother nature has rescues continue. lauren: gas prices wholesale prices with a two-year high after pipelines and refineries shut down because of harvey. and now reports that the chemical plant in six feet of water in crosby texas, 30 miles from houston has exploded. the latest on the devastating situation. cheryl: following that breaking news. also pushing corporate and middle-class tax cuts. lauren: i hope you get paid.

features a 61 points looking at the dow. this is the final day by the way. trade to global markets on the rise. news of the economy united states and china. live in london. lauren: legendary investor warren buffett told liz claman, don't worry be happy. "fbn:am" starts right now. cheryl: it is 5:01 a.m. here in new york. thursday, august 31st and cheryl casone. lauren: i lauren simonetti. explosions at the ark at the arc of a plant in crosby, texas. black smoke coming from the chemical plant right now after the flooded facilities in six feet of water lost power as well as backup power. meanwhile, tropical depression

harvey dumping heavy rains in parts of louisiana, arkansas, mississippi and tennessee. a number of flash flood warnings and watches in effect across the region. train to the death toll has risen to 31 in texas. jeff flock is live in houston with the latest. good morning. how are conditions? >> so many peers so many developments. mandatory evacuations in the spot we are right now near the addicts reservoir. this is a staging point for the occasion may be to get people out of here. taking up late this morning will be back as the epicenter of the unfolding disaster move to the west about 100 miles or so from houston in the towns of port arthur, texas and beaumont, texas. incredible pictures come to some of we experienced in houston and moving out there. folks being rescued, homes underwater, flash flooding from

a terrible situation. some incredible scenes out there. and that as flood waters from houston continue to move down the rivers like the process and colorado rivers making their way down to the gulf and consequently flooding towns on their way. we were in the town of richmond, texas yesterday with the national guard was going door-to-door to get people to leave because the water is coming, maybe three or four or more feet high had it for. we talked to people in a housing development in richmond yesterday. family, women just just came home from the hospital with her sixth child and now evacuating with fate unknown. >> we are leaving. we did this last year and it came out to three feet from the garage. reporter: three murphy on top of this? >> at least the garage or water.

reporter: they continue to release water out of those worker in addicts reservoir is and that's what continues to flood here. we learned yesterday from flood control in harris county that this floodwater that comes near the reservoirs can even the reservoirs can't even though other floodwaters may abate, and this could be a peer until october. incredible. never seen anything like it. the votes will be back shortly. we'll be here. cheryl: hopefully the rain will stop for now. jeff flock, live in houston. thank you. lauren: the chemical plant was flooded but they didn't have refrigeration. they warned it could explode, it did in the evacuated a one-point five-mile radius of people living in that area. just another devastating effect. racing record flooding taking its toll on the chemical plants,

refineries, ports and pipelines as wholesale gasoline prices hit a two-year high. racing 4 cents overnight. sean strawbridge is the deputy here and joins us now by telephone. good to see you. i'm assuming your operations at the port of corpus christi is the biggest shipping channel in the nation is still closed. >> s., man. that is correct. it is still closed this morning. working hard to get it open. we've got to get that six channel open because the refineries and corpus christi are most likely going to be serving domestic taxes, bowman, port arthur from hurricane harvey. lauren: we hear a quarter of the refining capacity in the area to shut down in the colonial pipeline is the biggest in the nation. it takes the field to airports

and stations all the ways that the east coast. they shut down some may carry this field. any idea the effect that will have? >> the colonial pipeline has served primarily the east coast market. they are primarily dependent upon not for their transportation skills. i spoke yesterday with epa administrator pruitt who sign special measures to keep the pipeline open under emergency circumstances. the challenge they are having this we are still seeing flooding and water and pipelines does not make it easy for pipeline operators to keep those operational. lauren: at his dangerous to tell you the truth. can you talk to us about the state of shipping? whether it's medicine or oil tankers and container ships that get through the port of christie and the port of houston. what's the status?

when can we expect them to be open? >> the federal partners come united states coast guard and u.s. army corps of engineers are working around the clock to get it open again. we've got a survey underneath the water to ensure there are no obstructions to be able to come in for the refineries that they need and also be able to carry the transportation that they refined to other markets both in the gulf and in the east coast. it's absolutely critical that we get a channel open again so we can serve these other markets. it looks like we are going to be the only refinery -- major refinery center on the gulf coast to the open in the near term. lauren: best of luck to you, sir. thank you very much. trying to live pictures we're getting in crosby, texas.

this is what we have at the scene of the arkema plan. losses according to the company all happening at 2:00 a.m. local time, 3:00 a.m. eastern time. a loss of refrigeration happened at the plant. they are storing organic peroxide is supposedly the peroxides themselves if they are not kept at a lower, cooler temperature they are prone to explode. they were worried about the explosion. this is our affiliate kare idea of houston giving us live pictures. lauren: the ceo warns this could happen unfortunately it did. cheryl: evacuation order in place of this area. will try to get a live report out of houston for you. meanwhile, watching some other breaking news for you this morning. president trump unveiling a sweeping tax reform plan in springfield, missouri yesterday. the president wants corporate

profits brought back from overseas along with dramatic reduction in the corporate tax rate by 15% which would ideally sit at the 15% level. he also wants tax relief for middle-class families and a simplified tax cut with the elimination of loopholes. one thing congress get on board. >> what could possibly be more bipartisan than allowing families to keep more of what they earn in creating an environment for real job and wage growth in the country that we love so much. cheryl: trump all sustain this is our once in a generation opportunity to deliver tax reform for everyday hard-working americans. lauren: legendary investor warren buffett has a message for investors. it's pretty simple. don't worry, be happy. cheryl: tracee carrasco joining us with more headlines. good morning, tracee. transfer good morning.

such a great message. warren buffett on countdown to the closing bell was asked about the consistent highs. she asked if processes any similarities during the financial crisis. here's what he said. >> not a bubble situation like it was then. but here you had a $20 billion asset class ownership with the big abuses occurred and when you had trillions of dollars worth of mortgages come at a good many of which people caliber aaa that turned out to be changing the economy. train for it they also discuss taxi firm which buffett believes will likely be passed. he's more optimistic than most. cheryl: that's a pretty good line for that one. the uber ceo make it to big changes. transferred they finally met the man tracing travis kalanick.

their new boss was officially introduced to employees at an all hands meeting yesterday and first order of business. he vowed to address the toxic cultural issues that wrapped goober this year in a tree posted by the communications team, the company has to change. what got us here is not what's going to get us to the next level. he wants to bring in a chairman who can serve as his partner at the board level. he also reportedly set a timeline for an ipo between 18 and 36 months. that will give him time to clean up the company and deal with the legal issues in losses to total about $3 billion last year. uber's valuation of $7 billion has taken a hit recently. lauren: travis kalanick still on the board of directors. tracee: it must've been a bad moment.

lauren: coming up, who wants to buy a million dollars worth those one military equipment on ebay? l.a. officials deciding they don't want to celebrate columbus day anymore. we will tell you what to celebrate instead. you will not believe it. you are watching "fbn:am." ♪

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come to lendingtree.com to shop and compare home equity loans right now. because at lendingtree, when banks compete, you win. lauren: good morning and welcome back. the issue caught up on what's happening as a sheriff's deputy was killed yesterday in a sacramento hotel. they believed it was a car theft ring. how would patrol officers were injured. the man suspected of killing a deputy were shot and apprehended. testimony this week in nashville reveals that more than a million dollars of u.s. military equipment was stolen from fort campbell in kentucky and sold on ebay. john roberts testified he didn't know the equipment he received from soldiers was stolen. some of it resold to buyers in russia, china, mexico, hong kong, posix and in ukraine. well, christopher columbus has lost his day in los angeles.

the city council voted to rename columbus day to an indigenous people's day. some historians say the explorer committed atrocities against the native americans he encountered when he came to america. and that is what's happening now, cheryl. cheryl: hard to believe. this is happening. tax reform a top priority for president trump and its promoters as well. a fox news poll showing 49% in the tax reform legislation this year but only 14% think it's going to happen. can republicans get this done? the independent women's arab, gop strategist harlan hill, also a member of the donald trump advisory report. good morning. let's talk about this. he was very adamant about 15% of the corporate tax rate. you heard his voice falter a little bit. what are we going to end up here when it comes to corporate rate?

>> you know, i think the president has some willingness to move and make a deal. professional republicans are more likely to pass something around 20% in order to maintain a balanced budget or at least pursue one. the president really told a story yesterday about making sure they plan to generate 3% annual growth to create over $10 trillion in new economic activity over the next decade and create 12 million new jobs. the only way to do that exemplify the corporate tax code and frankly to unleash business and unburden the american middle class with the high taxes they pay every year. cheryl: tracee talked about repatriation of funding overseas. the u.s. company profits are here in this country. but democrats may be willing to block him one night in particular. >> out, democrats will come out

swinging against tax reform. it's interesting the administration will have a tough friend and softball approach to dealing with democrats. they will reach out to some were more aligned on the idea of tax reform. as we heard him call out senator mccaskill, and those who are very vulnerable next year and say you said you want tax reform before. if you don't come alongside us, with your spot. you will have those continue to be a blockade, but i do think they will be democrats that come alongside the effort. cheryl: let's talk about the blueprint yesterday afternoon in the specifics here. the three brackets as well as the corporate tax rate. but i think repealing the alternative minimum tax and the death tax is something that has been discussed and debated and

fought over four years and we still have amt, which is a 1971 tax plan. parlin, does the president have a plan here? >> i think he does. over 90% of americans thinks the tax code is too complicated and that includes many democrats. over 63% of americans in one of the most recent polls that i saw what comprehensive tax reform. when you look at how much time is wasted every year by americans doing taxes, it's an unfair burden on the american middle class. over 6 billion hours are spent every year in this country trying to navigate the complicated tax code in this country. the president is laying out a simple, easy and fair system so everyone is paying their fair share, but the government is needlessly intruding in your life. i think that's a positive thing.

if you look historically at this, when we have these tax cut, it generates massive economic growth. lauren: he's going to have these meanings of the big six next week to meet with congressional leadership. do you think we can actually get some bipartisanship next week? he might just come to think he will. democrats vulnerable willing to come alongside the effort. important for women making household decisions and overseeing budget and no one males who have not experienced for a tax cut means. cheryl: it's actually a good thing. patrice, harlan, thank you very much. lauren: coming up, the good news that access is finally seeing some signs. tropical storm irma for me right now in the atlantic. the weather forecast coming out. and then there is this.

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cheryl: dramatic rescue and recovery efforts continue in southeastern texas. a moment of hope and faith has gone viral. you need to listen to this group of volunteers perform it didn't

send her the shelter. the ♪ ♪ cheryl: the facebook video has been viewed more than 14 million times so far. lauren: she's got pipes is not the message people needed to hear at the moment. harvey finally moving out of texas, but it is bringing rain to other states and many of them. janice dean live in the fox weather center with the latest. good morning. >> even though harvey moved away from the texas region, we still watch the waters rise and we will see them potentially go down for in some cases weeks if not months to their regular

levels. the rain is finally lifting northward and eastward but still seeing some other van stretch across the gulf coast spirit of the next couple days the tennessee valley, all hail valleys seen the remnant. the good news is the national hurricane center has stopped issuing advisories and harvey. we are done. we watch potential for more rainfall and something behind this. hurricane irma this afternoon potentially could affect east coast florida and also watching an area of low pressure that could bring more rainfall to the gulf coast. we'll keep you posted. cheryl: we've got a lot more coming on. you probably knew this would happen. amazon have the class-action lawsuit for selling fake eclipse glasses. you won't believe how much one unruly passenger has to pay

after he forced the plane to return to honolulu. you are watching "fbn:am." the ♪

lauren: breaking news this morning. overnight a pair of explosions has a chemical plant in texas 30 miles from houston with black smoke coming from the arkema plant in texas. reporter joining us now live at the scene. what do you think? >> well, good morning, guys. the planned we are talking about

here is the arkema chemical plant in the manufacture organic peroxide in the family of compounds to make everything from shampoo to building materials. the concern is the plant has lost the capability to keep this compound quoted when that compound quoted when that happens it can heat up in the night and eventually explode at the problem here is due to the flooding in the area, due to the effects of hurricane harvey we've just been pummeled by this never-ending cycle of weather, the plant has about six feet of water on site and that is a major concern. right behind us here, this is as far as you can get. this is the perimeter they've established as a one-point five-mile radius around the planned in the concern is that these chemicals become airborne, and they can be very dangerous, very toxic. right around 2:00 a.m. central

time, there was a blast, actually two blasts that were reported smoke was seen coming from the planned. we can't see it from our vantage point here. luckily where we are coming to wind is blowing with us, towards the plant so there's not a concern about material coming in our direction. the area has been evacuated. they are scheduled for 9:00 a.m. news conference with the plan and officials will give you detail on exactly what happened at this point. they became concerned that yesterday that this was going to be a problem by 2:00 a.m. this morning as they said. apparently the worst fears have been realized because they've had to report addicts lotions and we can't see it from where we are. we can't smell anything in the air where we are and sometimes along the gulf coast there are a lot of refineries.

you can drive down some freeways. highway 225 in our area. you can't smell different things in the air indefinitely know you are near a chemical plant. we haven't had any of that at least this morning. limited information other than what's been sent out in the news release at, expecting someone from the office of emergency management in the area to come out here and brief us. at this time, that's as much as we know. cheryl: since you are there on the ground, are you seeing the water receding around the area now? >> yeah, we have. the areas that are not immediately neither can we have bayous down here. these are the waterways that feed throughout the drainage systems that basically all the water drains into and makes its

way down into the ship channel and eventually the day back into the ocean. if you are not near one of the major rivers or by use, the flooding has receded. people are still evacuated from areas close to the process river, colorado river, which all kind of weave their way through the houston and surrounding vicinity. crosby with the plant is located behind me is about 25 minutes outside of houston in the further you go with the direction behind me can you start heading towards port arthur in beaumont, which currently are in very critical situations with flooding. i know beaumont has lost services, desperately needed critical electricity and water is a very bad situation over there. tree into a personal note, i've known you and your friends. i hope all of you in your family

are safe. >> thank you very much, guys. cheryl: also accompanies this morning as you can see tropical depression hervey continues. it is dumping heavy rains in parts of louisiana, arkansas, mississippi and tennessee. the warnings are in effect across the region. trade through the death toll has risen a search and rescue operations continue. jeff flock has been covered up for us live in houston with the latest right now. >> shiro, good morning. so many tentacles to this. everything you just reported about the explosion to the mandatory evacuations here in the scene behind me to the scene yesterday in beaumont and port arthur just talked about. the storm coming ashore again and causing even more trouble. the pictures of rescues their are the kinds of pictures beside

houston playing out now for several days. almost unbelievable to think this could go on as long as it has in this crisis mode. not a recovery or cleanup. crisis mode still. as we said those rescues yesterday in more coming as a wall of water makes its way down those rivers to the golf, the browsers for example. national guard troops going door-to-door trying to get people out because more flooding is coming. that's the thing that's crazy is it just continues and we talked to folks who if they don't have water in their house yet, but we are told three or four feet more water is coming so we don't get in a situation where they need to be rescued from the rooftop where the middle of nowhere. talk to another yesterday who brought her son home from the hospital. now she's going god knows where. >> we are leaving. we did this last year and it

came up to three feet from the garage. >> three more feet on top of this? >> yes. we figured it might hit the house or garage. reporter: you look at the unintended consequences of this in the explosion in crosby is pointing out. this toxic soup of water people are wading through every day to get out, to get perhaps back into their homes presents health problems, too. as i said, many tentacles to this disaster still in the process. lauren: at least the sun is shining. jeff flock, thank you. training too nice to just drive for one. following another break news. blake burman has more on this.

>> a sales pitch is now fully underway with president trump in missouri and when they outlining the four different tendencies these necessary for comprehensive tax reform. the president saying he wants to simplify the tax code and get rid of loopholes. secondly, wants to reduce the tax code to what he said would ideally be 15%. third, middle-class taxes for middle-income families in forthcoming the ability for companies to bring back profits overseas. on the first point of reducing loopholes, president trump joked it is something that he is all too familiar with. >> and speaking against myself when i do this i have to tell you and i'm speaking against mr. cook and we are both okay. it's crazy. maybe we shouldn't be doing this, you know? but we are doing the right thing. reporter: the president pressured congress to get in line with his vision. he is arguing tax reform should be a simple bipartisan fix.

>> what could possibly be more bipartisan than allowing families to keep more of what they are in creating an environment to a real job and wage growth in the country that we love so much. reporter: democrats pushing back on the president's plan. for example, nancy pelosi called it on twitter conservative magic. back to you in new york. >> tanks, blake. lauren: president trump says talk not the answer for dealing with north korea. defense secretary disagrees. our next guest says his market signals are flashing a caution sign. are we headed for a recession? you are watching "fbn:am." ♪

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cheryl: welcome back. let's get you caught up with what's happening now. breaking news with the chemical explosion at the arkema plant. we are not discerning that 10 harris county deputies have been taken to the hospital after

inhaling fumes from the plan. as you heard the reporter down in crosby, texas, they can be considered toxic. an evacuation order in crosby, texas. headlines this morning, president trump and his national security team sending out mixed messages about north korea. trump suggested it is close but defense secretary mattis of the u.s. is never out of diplomatic options. no mixed message on this. two u.s. nuclear-capable bombers conducted a joint operation with air force personnel today over the korean could do. the u.s. connected to airstrikes yesterday with hundreds of islamic state militants from relocating to a stronghold in the area near the border with iraq. militants were evacuated from the lebanese syrian border. the french magazine charlie had still has taken a lot of --

january 2015, the headquarters in paris protest mohammed. that is what is happening now. lauren: what an image. that is disgusting. headed into the worst two-month of the year in the market sending out warning signals. our investors listening to them? chief market strategist at wunderlich securities. what are these warning signals you see? >> it's hard to really get a clear read in the month of august because obviously we have low participation, but the only real volatility we see this year the month of august is not unusual. this country be weeks about a 2% drawdown in the s&p 500. they both happened in august. they both had similar but disparate catalase. increasing tensions in north korea in the korean peninsula

you just touched on that. the other is the inability for washington to get anything accomplished on the progrowth policies. more bad as they head into september. we got to raise the debt ceiling, get a budget passed. both the white house and congress shifting to tax reform and tax cuts and now i'll be a bumpy road. and the market pretty fully valued here 18 times this year and 16 times next year's earnings, probably reasoned to be a bit cautious. because supportive economic data. earnings have been good. we've been on a pretty good run here in the month we went to month we went to the conscious come september is one of those. >> unfortunately we know that all too well from prior years. talking to regular people on the street and tell them look him in the economy growing at 3%, they will say it doesn't feel like that because my wages have not gone out. it doesn't feel like we are living in this more healthy economy.

because of the 3% gdp print, we'll see interest rates likely go up. now a 40% chance we could hike in december. are you concerned increasing interest rate hikes will kill the stock market rally? >> probably not. one of the things you have to think about in terms of interest rates as we'll probably get balance sheet normalization first. we will have a meeting in september at the fed. more about normalizing the balance sheet, having those assets runoff in the process starts before another interest rate hike. a 50% chance six weeks ago to raise rates in december. that would be a good thing. they've got more work to do. american is okay with that and can price setting. i don't think that's the biggest bump in the road. not our biggest impediment to the biggest impediment is the fact the market would like to see some action on taxes, whether tax cuts or tax reform

but to do something to make it more competitive it would be the next thing we need to see. if that doesn't get done, that may be the cause for investors to get a bit more concerned. >> the president put the pressure on congress to do that yesterday. art hogan, good to see you. >> we continue to follow the devastation in texas, including the astros returning home to play their first game in houston. at the u.s. open, the wild card maria shara pozo wins again. jared max has the highlights coming out. the economy both growing faster than good. we are going to london coming up next. you are watching "fbn:am."

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cheryl: legendary singer laurie gaynor encouraging texans to stay strong. the hall of fame belting out a new rendition of her famous 1978 song i will survive on twitter. ♪ cheryl: diener said she hoped the song which are you up a little bit.

lauren: works for me. teams displaced by her making their way back home to texas. jared max has made its way to a set for the details. >> gloria gaynor looks and sounds awesome. yesterday they announced a preseason schedule tonight between the houston texans in dallas cowboys has canceled. the game originally scheduled for houston relocated to arlington to the nfl decided it was more important for the texans players and team personnel to return to their families instead of play was essentially meaningless game. houston texans head coach bill o'brien. >> these guys were excited to get back. what's incredible about this team as they are excited to get back and help out. they are really looking forward to helping the city rebound. we know it's going to take a while.

reporter: jj what continues to be generosity typical increases each day now up to $10 million. >> had a chance to drive around a little bit to see some of the damage, see some of the flooding. it's unbelievable and obviously still so much work that needs to be done. still some areas flooded. >> jason watt said when texas needed him, jj what was there. i was honored to make this amazing gift from all our possible. the fundraiser has generated over $9 million. houston astros play the texas rangers the last two nights in st. petersburg, florida, but the astros are heading home. following this afternoon's game, they will return to houston. friday's scheduled game will be saturday, double header at the astros home minute maid park. move over. our approvals, but to rescue home runs last night.

window for for seventh place on the all-time home run list with 612. stephen strasburg will also hit a home win against the marlins. washington completed a sweep of miami waiting for-nothing. the blockbuster trade would get nixed because of health issues for isaiah thomas but the cavaliers agreed to terms that will make harry reid irving is celtic, bossa nova dissector from draft but jay crowder to cleveland. villanova basketball coach died yesterday. he was 82 years old losing his battle with cancer. his improbable that jury over georgetown for the national title. tennis, anyone? were we share pose a needed three sets to win her second round match. meanwhile, venus williams also a winner last night at arthur ashe

stadium around number three. a lot of tennis played yesterday because of rain the day before. cheryl: maria shara pozo really coming back strong. >> if you were in vegas and you put a couple bucks early couple bucks or leon county public upgrade because she's this wild-card entry. she should be right up there with the top seeds. >> i think it was fair that reduced from two years to 15 months was fair. cheryl: garrett, thank you. fox news headlines 24/7 on sirius xm channel 115. coming up, some key global factory data out today and tomorrow we'll see how global markets are ending the month. stay with us. ♪ ♪

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cheryl: we saw growth in china's manufacturing sector rose unexpectedly in the get fresh indicators from the u.s. in the u.k. today and tomorrow. let's bring

so far it seems as though things are going a little bit more smoothly in china that we officiallya software into the summer.

one sheriff's deputy has been taken to the hospital after inhaling fumes. residents near the plant and crosby, texas ordered to evacuate the area late last night. the situation comes as the storm harvey continues to slam the south to search and rescue effort still under way in texas while the storm moves east. vice president might pencil visit some of the hardest hit areas this afternoon. >> even in this challenging time come the people of texas are provinye