here's where valero sits.dot to the left of the historical average means right now, is on the lower side of the historical premium. if you want to get a refinery in on this play, that's a place to do it. david: oliver renick joining the onset in new york. to reckoncontinue what happened in charlottesville, virginia and another protest turned violent -- secretary of state rex tillerson was on the show with chris wallace. doubtsn't believe anyone the american people's values or the commitment of the american government, or the government agencies to advancing those values and defending those values. >> and the president's values? >> the president speaks for himself. >> are you separating yourself from that? comments to our values and this feature again to the state department this week. david: another example of the divide growing starker between several members of his individual circle. start with that exchange, i said it was extreme area. what does that tell you about the relationship between secretary of stat

in terms of valero, there's upside left in the stock if you go back to 2015, vlo topped out around $72. given the fact that oil could move lower, i mean, the stars do line up for these guys, probably in terms of the stock prices. >> and the 3.9% dividend yield valero is paying out, people are absolutely gravitating for this is a name, the margins are going to improve for them. this is a stock, again, people want to own because it's a defensive play that's where the money is going to gravitate toward. guess what, they're going to continue to raise their dividen dividends. dividends going to continue do go higher. it's where the safety money is going to fly into. >> that's the key. safety remember, people need some place to go. not like people woke up on friday, today, said i want to own refiners totally outperforming. 2.8 million a day shut down. that's going to add a lot more oomph to refiner's stories. >> how deep will the energy industry feel the impact of hurricane harvey robert raymond, founder of rch energy, joins us on the fast line from dallas, with the swrout lo outlook followi

what have these companies been doing, valero and major u.s. refiners, to hedge? you have said, they have been taking less and less venezuelan crude. to a certain extent, they have no choice. venezuelan production is dropping. there are other alternatives, canada or mexico. they produce heavier crude that could work for these refineries. they have been moving. venezuela, still a big supplier for them. they have also been lobbying in washington to say, sanctions may not be the best answer. venezuela would still be able to sell is crude and other parts of the world. and you would have this lock on us here in the u.s.. they are cautioning the trump administration to be cautious. oliver: up next, why president trump is looking unprepared to deal with the special counsel. this is "bloomberg businessweek." ♪ ♪ oliver: welcome back to "bloomberg businessweek.". i am oliver renick. you can also give us on sirius fm and in boston. -- catch us on sirius fm and in boston. and in london and in asia on the bloomberg radio plus app. in the politics section, as president donald

carla va vele carla valero periodista. >>> buenas tardes desde barcelona.y demasiado nervioso >>> quÉ tal buenos dÍas vamos con las noticias tenemos informaciÓn de Última hora que es importante que conozca ocurre en barcelona espaÑa una bjorg neta a strop yo a varias personas que pasearon por la rambla de barcelona espaÑa imÁgenes en viv de lo que ocurre en este momento y vamos a enlazarnos en este momento con carla valero periodista en el lugar de los hechos. carla cuÉntanos luego que una furgoneta arrollara a las personas por las ramblas en el lugar mÁs turÍstico de la ciudad de barcelona. >>> evidentemente lo que se vive en barcelona es una situaciÓn de caos todavÍa. y mucha confusiÓn a pesar de que dispositivo policial lleva cerca de una hora acordonando la plaza cataluÑa las ramblas y calles adyacentes es una zona turÍstica y se ha producido una estampida en cuanto han escuchado el atropello la policÍa montÓ un dispositivo policial y acercado las calles. a Último hora dicen los medios locales, por otro lado no ha podido confirmar hay un total de 2 muer

. -- valero and hollyfrontier. mark: investors choosing to invest on the macro, whether u.s. data, euro zone inflation data, and chinese take -- chinese pmi data. best friend for two weeks. -- trend for two weeks. a big corporate story, shares earlier down 15%, the biggest drop on record. for the french biggest retailer. it warned a second half of the year will be as tough as the first was gives the new chief executive a bigger challenge to turn around the company. the outlook prompted for analysts to reduce recommendations. -- four analysts to reduce recommendations. a drop in earnings was a bit of a surprise because they previously said second-quarter sales beat estimates. volumes in food failing to offset the effects of a price war and the operating margin in france, which accounts for nearly half of sales. it fell 70 basis points, down 14%. inflation in the eurozone taking up speed, more than economists predicted, underlying cost pressures, failing to accelerate. ,he headline is consumer prices up 1.5% in august from 1.3% in july, ahead of estimates. the biggest -- best r

what have these companies been doing, valero, and major u.s. they?to hedge or have >> they've been taking less and less venezuelan crude. they have no choice to a certain extent. production has been dropping. -- other other adult alternatives, from canada or other places, that could work for these refineries so they have been moving. venezuela is still a big supplier. they've also been lobbying in washington to say, sanctions may not be the best answer. would still be able to sell crude in other parts of the world and you would have this effect in the u.s. -- they are pressuring you trump administration to be cautious about its next steps. oliver: up next why president trump is looking quite unprepared to deal with special counsel robert mueller. this is bloomberg businessweek. ♪ tover: welcome back bloomberg businessweek. i'm oliver renick. you can catch us on the radio at serious xm -- sirius xm radio. and that these different stations. london, and asia. asthe politics section, president trump fails to put together a legal team, we talk more. >> ri

there should be a spike to valero's earnings. probably the worst hit will be the oil producers. again today at $46 i think it could drop another 10%. permian producer also have nowhere to go. so much of the capacity is exported, which makes it even worse for them the pipelines, they'll suffer some outages, but they can get back on rather rapidly most of the pipe comes from the west to the gulf that will simply be a function of people going to work, not destroying infrastructure, which brings us to the insurers. what kind of hit will they take from harvey? the initial pattern from katrina was instruction. people figured incorrectly the losses would hurt these companies badly. but in the end, they ended up rallying hard within three months of katrina. alstate rallied 10%, progressive up 20% these insurers are all buys after a day or two of selling. i suspect the federal flood program will bear the brunt of the losses here, but insurers will be able to raise rates of storm of this magnitude. back then, the old aig saw its stock rally 10% after the tragedy. as it was able to use kat

it looks like the storm is headed for corpus christi and valero has a pretty big refinery there, but a precautionary basis, which is easier to manage if it was knocked out by the storm. so i guess even if it's in the path of this storm and the fact it's been brought down on a precautionary basis makes it easier to ramp back up, you know, when the storm is passed if the company's managing it well, it shouldn't have that big of a long term impact. >> what's your top pick for the next 12 months >> valero and endeavor the two top picks. i think they have the clearest path to dividend increases and company specific catalysts in place. >> great sam, thanks a lot. appreciate it. sam margolin of cowen. president trump will launch a major campaign on tax reform next week, that's according to nec director gary cohn in an interview with financial times, president's top economic advisor said the first will be a push in a series to convince the public of the need to revamp the tax system these are cohn's first public comments since president trump's controversial response to the violence in charl

most people recognize the fact outperforms andividend, that >> does valero have any exposure in gulf of mexico from hurricane harvey? >> they have huge exposu they've been through many hurric they've got vital services so will probably be shut down for a period of time. operations are spread around the country and they'll come back. we growing that dividend going forward. >> accenture next on the list. you like its new s. >> correct. sales growth has been consistent. it's been in the technology fin r companies that can benefit from all the things happening in with accenture, it's a consulting company. they provide services to businesses to get involved with the cloud. to digit and those services for them grew double digits the last 12 months. dividend isn't terribly high. >> dingital reality. we call it the company that. all the equipment and in of the service companies that ma it's a 3% plus dividend we think they can grow by high single digits. >> thanks so much. have a great weekend. >> thank you, sue. group. >>> mayweather and mcgregor will battle this weekend and it will likely

temperatures in valero 61 and san ancio 56. let's see what our destination is. we eel start down in the south bay, 74 to 77 for most of us. morgan hill and gilroy and los gatos 78 to 82.santa cruz 69 to. that's the cool spot, 71 to 74 elsewhere. are 62o t a little bit of sunshine this afternoon along the peninsula coast. not as great downtown sausalito and mid-60s up along the north bay and the best area around the coast. 76 through 79 through most of the valleys. upper 60s for berkeley and also oakland, 7 to 74 you're going to the game. royals and a's, a 7:05 first pitch. clouds creeping in at 61 by the end of the game and temperatures inland, 75 to about 82. tonight, let's take a look at the day planner, going to be warmer and calmer and by the time you get to 8:00 and in the 50s. in fact, we'll be 55 to 60 tomorrow morning for a low h.can you see where rebound tomorrow about 62 degrees warmer than the coast from today and there's 80s, thursday, friday and saturday and 80s around the bay and low to mid-60s at the coast. >> see. that's good planning. the warmer

here's mike valero. >> i'm robert e. lee named after his grandfather. >> not the general, but he's a robert e. lee in virginia. we worried how many people share his famous name. within 30 miles of the con federal homes -- what is it robert e. lee today? >> it's easy to get messages, remembered. people when i call and say tell them robert e. lee is calling. >> rob says he doesn't have any haters, but with everything happening today, he is certainly taking time to reflect. >> i understand why lots of people react to that name. it's apart of our past. >> should the monuments go? rob says leave it up to each community. >> unless it's a historic artifact. that's something different. if we're talking about, like, a stone that marks a battle or something that happened some where, but it's just a monument that certain people find doesn't represent the full story, i think they have the right to take it down. i think they should have the right to take it down. >> it made all the noise and fear and fury, robert encourages people to

and then valero is pretty well-positioned.ctive. .incent piazza and roger read thank you for joining us. the question is, what is the impact on the broader economy. typically the rhetoric is, yes, it is a short-term issue. however, the fact that there are so many ports in houston could make a difference. 250 ports are now shut. jeff one child joins us. jeff, is this -- jeff weintraub joins us. willis making eggs -- will this make a significant impact on the economy? seen lingeringot economic impact. sure, a monthly economic data point might be impacted. everybody will be watching that. end of theat the hurricane season yet. there could be more to come. it is still expected to be an above average atlantic hurricane season, and i could mean prolonged shutdowns of ports not just along the gulf but along the east coast, too. at this point,ly even given the devastating impact to those -- to those parts of texas. unlike the lingering impact in terms of infrastructure economically. jonathan: let's talk more specifically about the ene

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. w

the polis index was in -- -- the euro is benefiting and because of the euro, other currencies like valeroe will be talking about this in a little bit. mark? mark: right. a big week for central bankers as they head to jackson hole tomorrow for the annual economic symposium, hosted by the kansas city fed. mario draghi will be there before he flies across the atlantic. he spoke in germany, repeating the old playbook is out the window when it comes to monetary policy. >> policy actions undertaken in the last 10 years, monetary policy and regulations, supervision have made the world more resilient. but we should continue preparing for new challenges. us to break down the cap forward for mario draghi and the ecb, and a look ahead to jackson hole is a pemco portfolio manager. -- pimco portfolio manager. thank you for joining us. let's talk about mario draghi. he did not talk about the euro or the impending ecb meeting which takes place at the beginning of next month. it leads us nicely to his speech on friday in jackson hole, wyoming. nuggets mightwhat he giveaway on friday about potential ecb m

valero and citgo said to be on the verge of restarting refineries in corpus christi.he secondmakes landfall as expected, the nation's largest oil refinery could be hit. the loss of refineries in that region would leave only facilities in louisiana supplying fuel to new york and other demand centers. president trump is promising that taxes will get emergency disaster aid quickly. he said there will be "very rapid reaction from congress." still there are signs that there may be a political fight over the money. a top texas conservative, financial services committee chairman, says he wants to cut spending to pay for the response to harvey. global news powered by more than 27 or journalists and analysts in more than 120 countries, i am courtney donohoe. this is bloomberg. big: let's get to another story moving markets -- north korea firing a missile over japan. president donald trump says all options are on the table. stephen engle files this report from tokyo. stephen: shinzo abe twice converging meetings of his security council following what he called the unprecedented

valero energy among others trading sharply higher. is going higher and that is the difference between the input price for oil, which is going down, and the out what, gasoline. as that widens, that means more profits. helping to explain why these refiners are trading higher on the session. finally, oil is turning into a rough month. this is showing the monthly change for oil in blue to the upside, gains in orange to the downside. we see oil is down 6% on the month, on pace for its worst month since march. right now six out of eight months are to the downside, on pace to match what we saw in 2015. l having a rough road despite the fact that the dollar has been in decline as well. julia: thank you. coming up, president trump may have been having a pretty rocky relationship with ceos recently but the gop is courting corporate support for a tax overhaul. details new york. this is bloomberg. ♪ julia: this is "bloomberg markets: the trump economy." i am julia chatterley. let's get a check on the first word news with mark crumpton. residents

the crowd cornered him at the valero gas station and he sat on the ground for several minutes before getting up. >> i am still trying to talk because i have's -- i have free speech. >> reporter: he was escorted away by someone that had a car. after that incident several at the demonstration began to leave. >> [ music playing ]>> reporter: we witnessed one dialogue between the two men but fortunately that ended peacefully with a handshake and they went their separate ways. we saw a lot of people leaving the rally at the park early and a lot of them said it was the heat that kept them from staying. >> reporter: ktvu fox 2 news. >>> people spoke out about the violence that hit their city at the town hall meeting in charlottesville, virginia. one woman was killed and dozens injured after the car ran into the protesters -- counter protesters at the rally. yesterday hundreds of frustrated people were at the town hall meeting talking about the way that the city handled the situation. >> as a 50-year-old white woman it was a shock to me to see how utterly the police failed to protect the res

six major oil companies have closed their refineries, exxon, shell, phillips, new star, valero.tt shellady is with us. all right, wholesale gas prices up about 4.5% as we speak. i'm told that translate ares into a 10-15 cent per gallon rise nationwide at the pump. is that accurate, scott? >> yeah, i think that's accurate. it's on the low end. it could actually be a little bit more. and you know what it really is going to come down to is, basically, this storm and what it's done to the price of gasoline will be a short-term tax on the residents in the u.s., and that'll help get us through it. ultimately, this will abate, but right now we're going to see a short-term tax on gasoline probably when we don't want to see it. stuart: am i right in saying it'll take several weeks to get the supply back up to normal. weekings as opposed to months, right? >> yeah, it'll take weekings. and the good news here is we are very resilient, stuart. to come back in weeks is still a big story, and that's great. like i said, there'll be a short-term tax, we'll all get through it, but right now it's

biofuels program sought by valero energy and backed by billionaire refinery owner carl icahn.hat is according to people familiar with the decision. have lobbiedahn the to shift responsibility for fulfilling annual biofuel quotas away from her fighters to fuel blenders and other entities. an update on a story we told you about last hour. the associated press reports barcelonatives from soccer star name are have paid over $263 million to release him from his contract. this clears the way for his siding with paris st. germain. the payment shatters the previous world record transfer for paul pogba. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. david: may be in the wrong run of work. -- line of work. gary cohn is a longtime goldman president, now president trump's economic advisor and now within the arms reach of the holy grail, the chairman of the federal reserve. ,ere to talk about his chances we have two guess. we have heard from gary cohn, we have seen him as this imposing figure in the

valero has 25% exposure. it's a sell.ive in general if you look at it for crude, especially given the fact the refiners will come to a slow down. the commodity itself you could see build come in. >> refiners come to a slow down. creates a squeeze. they are buying product creates a squeeze and demand destruction, everything else slows down refiners could still be a buy. >> they are going to get smacked. >> to short refiners is not good risk-reward. you don't have any probability of what will get knocked out the better play here is to wait and see and see if this goes up to category 4. then buy refiners on a momentum trade. to short into this storm would be a bad mistake >> all right still ahead, ulta beauty, an amazon approved stock so they said does such a thing exist. in the meantime here's what else is coming up on fast >> we will clear debts and make the debt limit -- hit the increase before this is penetrated meaning we'll pass a debt limit increase. policemen of option in front of us >> maybe not because traders have

crude is declining more than expected natural laggers are valero and hess as well that does it for this hour of "squawk on the street. let's go downtown to nyc >>> good morning, it is 8:00 a.m. at the disney headquarters in burbank, california it is 11:00 on the east coast. and "squawk alley" is live ♪ ♪ >>> good wednesday morning welcome to "squawk alley." i'm john quicarl quintanilla tensions between north korea and the u.s. continue to escalate. kim jong-un threatens to release a missile on the u.s. base guam, but the u.s. threatens that they will see fury like no one has ever seen. good morning, good to see you both >> brian, do you think the change of the market has changed over the medium term here? >> i think they do a little bit. especially if you look at the performance of the s&p 500 since july 19th. for all intents and purposes, it is august. we have had other potential negative headlines hitting the market in september with respect to the debt ceiling and the fed and a potential taper tantrum, but it doesn't derail the longer term side of things. we're still steadfastly bull

specially pitch black dark, on the way back, the first thing we came across was the roof of a valeross the highway which was just an incredible site -- sight to see and a roof of a house as well and eye-opening, i wish we could show it, we certainly will be able to. at night it's just -- the danger is just is great and not worth the risk. we got pretty close and then also we ran out of cell service, we have no communication and so we are about 10 miles from corpus christi right now going back but this thing developed and we have been on tv since 8:00, 9:00 o'clock last night and the winds started cooking and gust 25 miles west of where the eye, 100 hour a mile win gust, 25 miles that we took towards rockport, rockport was the dead center. that's where the eye really came across and even at this hour, now that the eye is a bit north of there, essential the hardest part of the storm is where with drove through. we were in a ford expedition and you felt like the car is going to be lifted off the ground, the wind was so strong. you know it's not but in your mind, it's not going to happen

valero is trying to start two refineries right there but the capacity of the refineries are not whating in port arthur area. that is good news. even if they bring the refineries back online, what do they do with the oil? the port of galveston will not open until september 5th. a lot of those pipelines are still down. it doesn't do you good to bring refineries back on line if you have no place to put the oil. the colonial pipeline situation very, very sears are. if that pipeline happens to go down we'll have real possibility of gas shortages. let's hope that doesn't happen. ashley: don't even mention it in harsh terms. we hope that doesn't happen. great stuff as always. phil flynn at cme. thank you very much. >> thank you. cheryl: you know it seems that no matter what the president does, the media will slam him either way. the media is tearing into president trump. media said he should have met with flood victims or mentioned donation options. the president treat tweeting this out. after reading false reporting and anger in dying magazines makes me wonder why. all i want to do is make

marathon, valero not so bad.his might be an opportunity if you're stuck in the refiners to actually bail yourself out of them. >> yeah. quick, go ahead. >> it's been like pushing on a string investing in energy i don't see that changing. there's enough to analyze there that hardly anybody can analyze without having now to figure out how to be a weather man. if it takes that capacity, great. i may take a look at it. otherwise, i just don't see it there's unending seems supply. >> joe mentioned marathon. great segue for john najerian who joins us doc, good to see you you have unusual options activity in that name. which way? >> exactly, judge. in marathon. well, mamarathon 52.50 strike, judge. i'm going to give you a trifecta >> good stuff. >> not all of them in the energy space. 52.50 strike take a look at that. they bought them for 57 cents. it traded big. a big print of 5,000 contracts, half a million share equivalent, bang, right away what joe taranova is talking about. they're finley ohio based. perhaps how st

seen some of the corrugated metal ripped off buildings as well as some of the gas stations, like the valero that has lost its overhang. but the truth is, the heavy damage that you often associate with a hurricane is not as dramatic, at least as we've seen here in victoria, because, remember, when harvey hit victoria, population of about 67,000, it was a category 1 storm, meaning that the winds were far less. it doesn't mean it's not dangerous, but it means that the potential for damage is certainly not as strong as when it's a category 3 or a category 4. the eye wall, as you know, had winds clocked up to 140, 145 miles an hour, alex. >> yeah. well, the big issue is flooding. you are appropriately standing and discussed what's going on in that river behind you. i'm looking at some stats, kerry, that say four days from now harvey is forecasted to be only about 60 miles from its current location, indicating the extent to which it's just hovering. so when you look at this town, victoria, we know houston is just ripe for flooding and that's not good coming their way. how about victoria. does the

beat up this year, down about 16% if you look at the xle i think some of these specific names like a valero or a schlumberger, that's an opportunity to buy some great names at a deep discount, as there's a lot of emotion coming into the trade here as we have seen harvey grow and grow. >> jeff, it's jim lebenthal. i'm looking at this price action you've been around, i've been around a while, too. i think back to katrina or hurricane ike, something that really affected oil production in the u.s. and spiked oil prices higher. you're definitely not seeing that here. what this is telling me is that the swing producer in the u.s. 10, 12 years ago, it used to be gulf of mexico, deepwater, and those rigs either got turned off or got damaged badly you probably remember thunder horse during katrina, a huge rig tilting to the side. nowadays, who's the swing producer it's north dakota, it's pennsylvania notwithstanding what you said about eagle ford, what i'm saying is our production is so distributed across the country now, don't you think that these events of a hurricane hitting texas are now a non-e

sitco, valero, and flint hills also, two other big ones in the area the exxon refinery in bayview and shell in deer park pant totaling all of them in the aggregate, we're talking about 2 million barrels a day comie ini offline, at least temporarily. you can see as we drove into corpus christi, the refineries are almost picturesque part of the landscape here, part of the scenery but when you have flooding and power outages, certainly the operations there can be compromised. part of the story is the refineries themselves. the other part is how you move product around the port of corpus christi is also closed. and we're watching very closely the pipelines, as well because those will be how we transport storage -- fuel that's in storage, out of here, to keep sort of all the wheels moving. the colonial pipeline, which is what takes fuel up to the east coast is the one that everybody's watching at this point. >> jackie, thank you we now move to texas's biggest city, the fourth biggest that would be houston. many parts of the metropolis are underwater contessa brewer is reporting now on the

the refiners in the houston area in valero who are waiting for crude oil supplies are going to startng them. vonnie: some of the more independent producers, are they going to feel it a lot more, put out of business by this? >> destinations are being cut off because there are not enough supplies to go around, and i would imagine that the brand and suppliers -- branded supplies are on allocation come meaning they cannot get the full contractual volume, because it is not there. lisa: i was the president of li -- that was the president of lipow associates on bloomberg today. he is tried to get back houston and cannot get a flight could let's get "first word" news with mark crumpton. mark: the house of representatives will most likely vote on the first phase of relief money for hurricane harvey in september. that is according to a republican aide, he that the initial down payment will replenish federal emergency management agency funds used in the immediate aftermath of the storm. congress returns on september 5. the third round of brexit negotiations ended in a stalemate today, with talk

biofuels sought by valero energy and backed by billionaire refinery owner carl icahn.ant to shift the responsibility for fulfilling annual biofuel quotas away from refiners to fuel lenders or other entities. a global news 24 hours a day, than 20 700ore journalists and analysts in over 100 countries -- 2700 journalists and analysts in over 120 countries. this is bloomberg. julia: what will they do with all the new money coming in? we will discuss. from new york, this is bloomberg. ♪ julia: this is bloomberg markets, i'm julia chatterley. scarlet: let's head to julie hyman for today's vector spider report. julie: focusing on energy today, xle the most heavily traded etf down one point 75%. most of the selling is concentrated in the exploration and production companies. as opposed to acquit meant and littles, which has change. it was higher until just a few minutes ago. selling concentrated within those e&p companies. just like yesterday when we saw piner natural resources lead the industry down, many of the shale companies are the ones underperforming today. kind of a ca

julia: when we are talking about refiners that would be impacted, we are talking about chevron, valerouse these are the guys who have calibrated their systems to be able to cope with the high density oil that comes from venezuela. i guess i would expect lobbyists for these guys or the company themselves to go to the government to this point in say this is you do this what would happen with the oil situation. i have to question degree upon which we would you some kind of -- see some kind of oil pricing. is there anything to suggest this is the kind of rising wti prices we would see, and a line for that, how quickly would we adapt, even if prices went up $10? we would shift it around, get oil from other sources. how quickly would oil prices come down? >> i think barclays came out with a report last week that couldted that oil prices jump five dollars to seven dollars. i do not think the refiners number is way too out of whack. they are making their case aggressively to the administration. the white house, i think it knowledge is -- acknowledges it. there would be impacts in the u.s. and

crude is declining more than expected natural laggers are valero and hess as well that does it for thisthe street. let's go downtown to nyc >>> good morning, it is 8:00 a.m. at the disney headquarters in burbank, california it is 11:00 on the east coast. and "squawk alley" is live ♪

we don't have a current update from valero. they're saying their under gulf refineries continue to operate corpus christi, no but i'm wondering -- they've been the guy who has given me the best information now. >> let's take a quick break. we'll come back to cramer's mad shs count you down to the opening bell than your health. so if you're on medicare or will be soon, you may want more than parts a and b here's why. medicare only covers about 80% of your part b medical expenses. the rest is up to you. you might want to consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any medicare supplement insurance plan, these help pick up some of what medicare doesn't pay. and, these plans let you choose any doctor or hospital that accepts medicare patients. you could stay with the doctor or specialist you trust... or go with someone new. you're not stuck in a network... because there aren't any. so don't wait. call now to request your free decision guide and find the aarp medicare supp

valero says two corpus cristi refinery are not operational we were there earlier today.would not give you a clear answer they don't give updates for security reasons effectively we don't see a lot of cars in the parking lot. baytown facility, 540,000 capacity there we should have videos of one or two cars of what should have been 7,000 workers coming in out of that facility so about 2 million barrels a day. lets not forget of the export market melissa, you talk about these, it is chemicals. it is not just oil that we can refine in gasoline and jet fuel. it is chemicals that go into everything else that we may use from paint to roofing materials as well, you got 3.3 million workers here and roughly 6.5 metro area population and gdp of 500 millions we have been talking about it a lot. we got to get more updates on the status and figure how long these folks are going to be out of work. you had the interview earlier today in the show where the gentleman, i cannot remember his name, my brain is fried, i apologize. he says it could be months before people can go back to work t

refining capacity there the biggest refinery in america shut down this morning exxon-mobil, total and valero all shuttered, taking more refining capacity offline. here closer to houston, a bit of a different story. that's the petro pasadena facility behind us, 100,000 barrels a day. currently offline. this water guys is about 9 feet higher than it should be and you can see that water went in see where those sort of sleds or whatever they are called, there's water in that and there should not be water in that. there should be a wall that you see here but the water has overtopped the wall. that is one of the refineries shut down here i guess the good news is the water is -- and contessa as hey better view, it's beginning to recede down. you can clearly see the high water mark and unfortunately the high water mark is marked by a lot of garbage the water here slowed down but i think this is probably representative of a lot of the cleanup that is to come, this is just one small sliver. we'll come back in a few minutes and talk about the chemical plants, not just oil and gas. >> thank you very muc

exxon mobil during this circumstance not looking too good others are up just a little bit marathon valero philip sixty six but again it depends where you are and what you know the impact of this hurricane on your refining capabilities as you say depending on where you are with some of the these refineries shut down limiting gasoline cracks and shipping. going out to fill up their cars and trucks right now i would i did i mean this is a normal thing at this time of year right labor day week and people will go and fill up but even now more than ever like i said the average cost nationwide is two dollars and thirty seven cents that's up four cents in a week but it's one of the larger price surges we had this summer the other day when we were talking about the storm coming in i said that you know estimates were from five to fifteen cents a gallon those estimates are up to ten to twenty cents a gallon but quite frankly when i look at what's going on in the reduced capacity of these refineries you know i could see thirty cents a gallon more and that could last for a long time too it could last

let's talk to alfonso valero from nottingham trent university, who's an expert on european law.c]? there is an eu directive that there should be no vat charged on the entry fee of sport, but there is no clear definition of sport. when the government most recently included their definition, they included bridge. but hmrc were not applying it, so it was referred to the european court for a clearer definition on what it meant by sport. so it ruled in your favour though, so you are presumably delighted? we are, there has been a recommendation, but it still needs to be approved in october. alfonzo, i want to bring you in because this isa i want to bring you in because this is a hugely corrugated issue, and people at home might be scratching their heads thinking, why is this releva nt to their heads thinking, why is this relevant to me and my everyday life? the role of the ec] as such is quite relevant, insofar as it rolls on the right situation for example to consumer legislation, data protection, and things as maybe it would seem originally as remote as the composition of chemical p

which ones valero, endeavor and holly frontier, one of these mid-continent plays.hat coupled with the move in biotech, which we talked about before, you mentioned that leukemia drug, the technology, the science behind these companies works. now, gilead paid up for kype 100% but this breaks the seal. i think you'll see more deals in the space. juno comes in play blubert comes in play. >> because of the advances that we are seeing in the science -- >> the valuations are crazy, the science is real. now i think it opens the flood gates. >> blue bird, is that what you said >> like the blue bird of paradise >> i don't know the company, there's gilead huge market cap, right >> look at what they have done the last 18 months it's finally breaking out. why? because they put their balance sheet to work. yes, they paid up but they had to do it. >> there's an article in "the wall street journal" about novartis coming out with this amazing cancer treatment it's individualized cancer treatment. the journal points to the high price tag, but it's a lower price tag than a lot of ana

refiners like valero, chevron, phillips 66, are in extremely precarious situation, heavy sour crude oil oil from other sources. in the long run should oil go missing from u.s. oil, venezuela will have to sell the oil elsewhere. the quality of the venezuelan oil, it is essentially mud. u.s. refineries most sophisticated of the world are natural buyer of this oil. should venezuela have to sell the oil elsewhere, they will have to greatly discount it because of lower quality and longer tanker hauls required. stuart, here is the interesting part which many viewers probably don't realize. the u.s. is also significant supplier of oil to venezuela and this is really what the trump card is for the united states. so last year 30,000 barrels of light crude oil were sold to the state-owned oil refinery for venezuela. should the u.s. ban export of oil to curacao. they have to go to africa to pay the higher price for longer tanker hauls. u.s. sold 75,000 barrels a day to venezuela. should those exports are missing. venezuela will be stuck, going to europe, paying higher prices for tanker hauls. vene

we have a gas station here, this valero corner store that's turned into a parking lot. when they realize they can't go further, they have taken refuge here, and a lot of folks are asleep in their car because they have been up all night long trying to make it hope. now, if there is any -- somewhat sort of good news this, i can tell you that the freeways for the most part are passable. the exits are not. so once you are on the freeway, you're stuck. and so that's why we've seen a lot of people on the freeways actually having to pull over and just spend the night there because there's no way for them to go any further because the exits are blocked off. now, there are certain portions of the freeways that are underwater. as i get up here, you can see, oh, this is how we're able to broadcast live is we hopped the curb here, our news vehicle is up here. todd, i'm going to walk back here and talk to these folks in this pickup truck who have been here all night long. trying to get home. clayton: fox 26 coverage. we were stepping in for a moment to listen to their coverage. than

you have got citgo, flint pills resources, valero, they shut down before harvey hit as a precaution.olds up texas like the state everybody is moving to, right you? are seeing boom town. you are seeing the economy there and some people are excited about texas' economic growth. $40 billion of potential damage here goods and services coming out of that region. do you see this might affect the dow more broadly in the stock market over the coming weeks more broadly than we already saw it this week? >> definitely. we could be looking at oil prices, you know, what's going to happen there. everyone is going to be focusing. we are not going to know until monday. until we really get a full scope of all of the damage. abby: you think of that area, thousands of people that work for these companies. you're talking about these oil plants, for example. >> millions of barrels. abby: millions of barrels not just flipping off a switch off and on. this is something that is going to last for days being shut off and who knows how much longer after that it's t. is before they are up and running and get th