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tv   Bloomberg Markets Americas  Bloomberg  August 28, 2017 12:00pm-1:00pm EDT

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from bloomberg world headquarters in new york, here are the top stories on the bloomberg and around the world we are following in the next 60 minutes. the remnants of hurricane harvey hammering houston. floodwaters in america's fourth-largest city shuttering refining capacity and two of the biggest ports in the united states. amazon is putting its stamp on whole foods. the largest online retailer spending its first day as owner of a brick and mortar grocery chain, slashing prices. our details on the grocery wars this hour. and uber is set to pick the expedia boss for its new ceo. can he turn around consistent losses, tarnished brands, and low employee morale. taylor riggs is with us. we were directionless at the
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start of the trading day. how are things now? s&por: the dow and the mostly unchanged. what is catching my eye is the nasdaq. a few things pushing the nasdaq higher. we have apple coming out september 12. screens.oled on a smaller version, we have some other biofarma appears -- peers. the transportation index outperforming the dow industrial. let me touch on transportation. we will dig a little bit into that. we can see the s&p index higher. bonnie mentioned products in corpus christi and houston being shut down. or have's our new mode of transportation would be in tracking. airlines are getting canceled in houston, texas, and the surrounding area. sticking with harvey, i want to
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look at gasoline over the last five days. this highlights a big jump. today up 3.4%. that is translating into higher prices at the pump. i mentioned the nasdaq and the biotech. my favorite this morning was gilead's takeover. you are seeing some other small pharmaceutical companies trading in sympathy a little bit higher after the $12 billion purchase of kite by gilead. vonnie: taylor riggs, thank you for the market check. for more on where things stand, the spring and houston bureau chief joe carroll on the phone. he has been there since the hurricane made landfall saturday morning. the texas governor has said 12,000 national guard members are to be deployed. it had been 3000, with the hope
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of another thousand. what does this signify, 12,000? joe: i think the scope of the needs for rescues has sort of blown everybody away. days into people being hauled out by boat and helicopter, and there are still thousands of residents trapped by the flood. that explains the huge increase in the governor's employment. do national guard members help in instances like a huge, does it take coordinated effort with hardware and fema assistance, federal aid and all sorts of other things, for this to be effective, for 12,000 people to go in and rescue people there? around thes happen country, especially when there is flooding. the useful thing is, they have trucks.
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they are young. they are strong. they can help. this is as on the ground as it gets. you are talking about picking people up and putting them in boats. vonnie: how sure can we be of what is happening right now? people report from different districts. can they find people who are still stranded? joe: it really depends. wherever you were when the flooding began is where you are now. houston, everybody is trapped. the city is completely paralyzed . it does not matter if you have a car. you cannot go anywhere. boat is the only way to get around. vonnie: we are hearing the first lady and the president will be there tomorrow. does it help when federal officials and -- obviously the resident is more than a federal official -- arrive on scene like this? the energy secretary in the ukraine right now. do people want to see their leaders, both corporate and federally elected leaders, on
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site? or is it just enough to have messages coming through? can go either i remember one of the hurricanes that hit louisiana, and the president chose to stay away because his security detail is so intrusive. he felt it would be a distraction. hand, it may depend on who you vote for. some folks would be thrilled to see the president come here. others might not be. vonnie: phenomenal photos. that is joe carol, houston bureau chief. guard's, theal entire national guard, is being sent to help in the recovery effort for hurricane harvey. the second act across southern turning into an economic catastrophe as it slams homes and the entire infrastructure of the u.s. energy sector are. i want to bring in tina davis, managing director for commodities in the americas.
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anything in the -- has anything gotten worse, or did the initial impact caused the damage and now we are reeling? this a have been calling slow-motion disaster. we had the initial impact of the category four, which is one level below the highest possible level on the scepter since in scale. -- on the simpson scale. cometorm, since it has ashore, has stopped moving, essentially. that has resulted in the two feet of rain, the pictures of cars stranded and high was completely flooded. changing.t really we might see the storm come off into the sea again and then circle back onto land and make second landfall near houston. that is what is causing another possibly two feet of rain to hit the city. it will continue to move east from there. vonnie: if you talk about the instruction, the function rafo
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-go in the bloomberg's refineries, and it updates constantly. if you look at texas, you can see 2.8 million barrels per day of capacity are already out. , wehis spreads to louisiana could see a lot more damage done. tina: louisiana has big refineries, so it is something we will need to watch closely. the fact this did not make a direct impact on corpus christi was very good in the short term, but now you have the lingering power outages in the region, and without power, you will not have refineries running. vonnie: things like having their debt downgraded, bankruptcies, and so forth -- are companies getting afraid of this? tina: if you are a refiner, this is pretty big news for you, if you look at some of the stocks. emergence have been spreading. having a lack of capacity helps in terms of driving up the spread.
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you are a refiner right now, the best thing you can do is get your machinery running as quickly as possible to take advantage of oil and gasoline prices. are at five dollars and change of a spread between wti and brent, because of all of this. completelyld end up ruining your equipment if you start early. dance.t is a delicate a lot of things could explode in refineries, so you have to be careful in the restart. for anybody who suffered major flooding, that is weeks, not days to recover. you will be looking at varying levels, depending on how they were shut down and how quickly they are able to get power, and how much of the machinery was damaged. that will decide when the capacity is back online. vonnie: we are talking about crude oil. we have not talked about things like cotton. tina davis, we will be talking to you all week.
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a quick note. the american red cross is asking for your help with the disaster in texas. the organization already has dozens of shelters running cup -- running, but it expects the crisis to grow. thousands of texans will rely on the red cross for food, water, and a place to stay. your donations will help. go to the red cross website for the details, please. all donations are tax-deductible. let's get more on the situation in texas. checking in on the first word with mark crumpton. tropical storm harvey is being called a tragedy of epic proportions. it continues to batter southwestern texas. record amounts of rain falling. inches before it is over days from now. floodwaters continue to rise in parts of houston. is safer to stay in place on the storm had. thousands are asking to be rescued. released from houston area
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reservoirs in a move aimed at protecting downtown from devastating floods. aergency officials said controlled release could cause additional street flooding, but that if steps were not taken, rising water levels and continuing rain could cause the dams to break. president trump and first lady melania trump choosing to visit texas tomorrow to get a firsthand look at the devastation caused by harvey. in a series of tweets, the president said his administration was handling his responsibilities, and he praised the spirit of texans as they cope with the storm. national first major disaster of mr. trump's presidency. into anas turned economic disaster for texas. damages are likely to rise to tens of billions of dollars. early estimates are that an unusually large share of victims do not have enough insurance. one insurer says less than 1/6 of the homes in houston had federal flood coverage.
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that will leave more than one million homes in the area unprotected. global news 24 hours a day, powered by 2700 analysts and journalists in over 120 countries. i am mark crumpton. this is bloomberg. vonnie: coming up, whole foods may not be called "whole paycheck" anymore. amazon cut prices at the grocery store today. we will bring you the details. ♪
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vonnie: this is bloomberg markets. amazon is spending its first day as the owner of whole foods cutting prices by as much as 43%.
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mark was reading all foods and amazon. kaplan,o bring in jenny who is outside a whole foods here in manhattan. they certainly do not waste time. part of amazon's strategy. they want to change the reputation of whole foods. they better do it now. jenny: they certainly have not wasted any time. amazon owninge, whole foods. they have cut prices on some items. a lot of whole food staples like , farm raisedfresh tilapia, and different grains and proteins they have cut prices on already, day one. vonnie: that is jenny kaplan outside 57th street, whole foods in manhattan. for more analysis on how amazon is changing the grocery industry, i want to bring on a
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senior research analyst, who is in manhattan. is great at getting in there and slashing prices. at what point does it worry about margins? >> i think they're all about market share and going after it. we found around 32 items in the store this morning that were about 25% lower than they were the other day. i don't think they are really too worried about it. i think that until wall street really puts pressure on them to make more of a profit on the goods they are selling, i have the opportunity to keep doing this. vonnie: how will whole foods gain market share as it >> continues with low prices? it will definitely drive some traffic into the store. they have to communicate this to everybody. i think they will see a little bit of an increase in share for those items.
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i am not sure the average customer that has already been used to shopping for organic and natural goods while they are at their large conventional grocer is going to start to come back because a few items are a little bit lower in price. i do think amazon will help whole foods lower prices more broadly, going down the road. cannot get diet coke and frosted flakes at the same time as you can get organic apples at whole foods. you can at a conventional grocer. vonnie: is their strategy here, or is amazon just slashing prices without concern for what products they are slicing prices on? >> i think they were careful to lower prices on key items. fish, other meat products. things like that are basic household items that people are buying on a regular basis. that would send a message they have lower prices, that it is the more affordable place to
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shop. they're going to integrate with if you go to the landing page, they are talking about whole foods, and you can get some of the 365 brand items online. they are starting to integrate. the profit from other online pricing chance -- are these one-off prices? are they deals like you would have for any new internet service? or can they be maintained. be --y should be able to able to maintain these prices. they're bringing them to a lower level, closer to walmart or kroger prices. still not all the way there in some prices. they are in some, but not in all. there is room. if you look at the profit margins of whole foods over the years relative to walmart,
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costco, or others, they are much higher. it is because they have been charging more for their goods. vonnie: they have a rotisserie chicken down four dollars. reporter jennyr is outside and one amazon product is there. has amazon been pushing other products in seoul food stores? >> i think we will see other products in the stores. they had the echo in the stores. they were definitely starting to cross pollinate those products. i think we will see more of that, more marketing. they will probably talk about amazon prime. within whole foods stores and vice versa, on the amazon wholee, talking about foods -- you will see pickup points down the road. shipping from whole foods stores.
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there is going to be more to come, and they will integrate this fairly well. vonnie: joe, thank you. a senior research analyst joining us. it is time for the latest bloomberg business flash, a look at some of the biggest stories in the news right now. up to $1 trillion could shift from stocks to bonds over the next five years, according to a wells fargo spokesperson. many pensions look to shrink their equity portfolios. interest rates create incentives. wells fargo says so far the shift has been muted. samsung is investing $7 billion in flash memory chips. will go toward china. it's investments helped it become more profitable than apple last quarter. the ceo's appeal against a five-year prison sentence for
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bribery and embezzlement. a product launch announcement next month. the company is expected to release new iphones and a smart watch in time for the holiday shopping season. the journal says one of the iphones will be a showcase device to mark the 10th anniversary of the phone. that is related bloomberg business flash. still ahead, merger monday. gilead science is buying kite pharma for nearly $12 billion. we will bring you the details, next. ♪
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vonnie: this is bloomberg markets. gilead sciences is buying kite pharma for nearly $12 billion, making its biggest ever deal for a new cancer treatment that will help diversify the company. gilead's ceo is looking for more deals in the pharmaceutical
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sector. i am bringing in drew armstrong. a major deal today. was it expected? drew: to an extent. gilead has been saying more than a year or that it needs to go out and do something big. it was planning on taking billions of dollars in cash which is earned from hepatitis c drugs, looking for how it was going to diversify the company. did we expect it was going to be kite? it is one of many names that have been talked about as a potential takeover for somebody. to an extent, yes. the announcement is definitely a surprise for a lot of people out there. vonnie: kite employs fewer than 500 people. a crown jewel? drew: it is a breakthrough cancer therapy. they have not been approved by the fda. what they do is for people with untreatable blood cancers -- non-hodgkin's lymphoma. they have done chemo, a stem canceransplant, and the
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comes back. these are fatal cases. they extract people's immune system cells, modify them in a lab to learn how to go and attack those cancers that they have been failing to do so, inject them back into the patient, and the body is able to -- thanks to this very complicated therapy -- clear the cancer. it is a really revolutionary type of science. they are boutique. they are hard to manufacture. they're going to be very expensive. but they are also a medical breakthrough, the likes of which have been pretty impressive. how many of these companies are out there? drew: novartis is closest to having something on the market. kite is very close in that race. we will see what the fda does. we expect approvals this year. we have other companies like that are a little further back in the race.
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this is a very exciting area. there are a number of smaller companies, and the data has been trickling out for the last several years, getting more and more convincing on the subsets of dire patients. vonnie: for those for whom it works, do they get cured of cancer? drew: that appears to be the case so far. it does retrain the body on how to -- the immune system is something that is incredibly powerful. there is no better drug than the immune system. and killearns to go in a virus or a cancer or some other disease, that is hard to stop. that is where the power comes in. they carry significant side effects. you take a patient whose body is riddled with cancer -- think about what happens when you have the flu. a lot of the symptoms are your body and the immune system reacting to going in and killing those things.
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pervades your body, it is incredibly severe. we have seen patients die from some of the side effects. hospitals are getting better at managing those. there are intense, risky therapies. vonnie: a fantastic synopsis of what kite does. our conversations, no doubt, about these car-t therapies. drewberg's health reporter armstrong. we talked to be acting secretary of the department of homeland security, elaine duke, about how the department's handling the devastations being wrought by hurricane and tropical storm harvey. this is bloomberg. ♪
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vonnie: a view of sunny, beautiful, midtown manhattan. i am vonnie quinn.
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we will get a quick check on the major averages before we go someplace a little less sunny. the dow is down about a 10th of a percent. the s&p 500 is down three points. the nasdaq composite is still higher. up 0.2%. here is mark crumpton. mark: houston has never seen a storm like this one, and it may get worse. tropical storm harvey continues to pound southeastern texas. some areas may get more than four feet of rain before the down for ends later this week. record flooding has turned highways into rivers. crippled houston's energy industry, which refines 40% of the nation's gasoline. officials say they will be in the region for years to come. there will be a lift on restrictions at surplus military
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equipment being passed on to police. civil liberties groups fear that will lead to more violent confrontations, but the trump administration believes the program is necessary for public safety. the obama administration put their assertions in place after the police shooting of an unarmed man in ferguson, missouri three years ago. in poland, the government is defying european union pressure over its legal system. last month, the you warned it would take legal action poland does not change laws the organization says compromise the independence of the court system. poland says the overhauls should not be judged until it is completed. toood and drug warning companies has fallen on the trump administration. the agency sent 265 warning letters to companies alleging serious violations of federal laws. that is the lowest tally for the first six months of any year since 2000 eight, according to a
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review of letters posted on the fda website. news 24 hours a day powered by journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. vonnie: let's get back to one of the top stories on the bloomberg today and get the latest on the fallout from this historic storm in texas. of theing secretary homeland security department joins us from fema headquarters in washington with the latest on recovery efforts. secretary, thank you for joining. tell us the biggest challenge for fema and the department of homeland security at this hour in texas. biggest challenge for fema in supporting the governor and the state and local officials is still search and rescue. we are still continuing those operations and they are our number one priority. vonnie: we just heard from governor greg abbott that the entire national guard, 12,000 members, are being called up. why suddenly this surge in
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national guard members being called out? for 4000 asng recently as a couple hours ago. elaine: i think it is prudent to be prepared. the storm is ongoing. we expect additional rain, which means additional flooding. i believe the governor is being forward leaning like we are at the federal level. vonnie: that is a big increase, more than triple the 3000 originally called out. is that necessary? are there problems being anticipated? elaine: there are no specific problems. i am sure the governor is making sure people are safe and the move toward recovery as soon as possible. secretary, have the president and vice president men working closely with the dhs and fema on this? elaine: absolutely. i spoke with the president this morning and the vice president was just here at the national
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response center and left about 30 minutes ago. and firste president lady, we are hearing, are going to texas tomorrow. is the state capable of such a visit? whether be additional pressure on the search and rescue effort? the trip has been planned to support the state while making sure that there is no issue with the ongoing recovery, search and rescue effort. president is going to show his support. he will be in areas with the first lady, ensuring that support. vonnie: how much will the storm cost the federal government? any preliminary estimates? elaine: there are no estimates at this time. at this point, we are doing what the president asked us to do. people first and paperwork later. we are really looking at search and rescue. vonnie: we are reporting now
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that the dilemma -- disaster relief fund has $1.8 billion remaining as of right. congressional aides that spoke with bloomberg, $1.8 billion. is that enough to respond to this kind of disaster? will there be a need for a request of emergency funding? elaine: we cannot predict that. if we need additional funds, we will be working with congress to obtain the necessary funding. vonnie: is there bipartisan support on this issue? elaine: the persons i spoke with before, absolutely bipartisan. we are talking about the life and safety of people in america. we definitely have bipartisan support. vonnie: do you know how much it has cost so far? elaine: we do not have those numbers. vonnie: you are not seeing any numbers at all? you are just spending on what needs to be spent upon? elaine: we do not have those numbers right now. we are looking at the number of people we are deploying, the assets, and making sure
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everybody is safe. vonnie: we have a number of 30,000 people displaced. is that -- what is that number now? elaine: about 30,000 people in official shelters. many more are displaced. int is the number we have official shelters. will some of these be permanently displaced? elaine: that is a question that probably depends on the area. we are starting a transitional housing program and a rental assistance program to help people get out of shelters and into temporary housing. but with the flooding the way it is, we cannot predict at this point how long it will be before people can get back to their actual homes. vonnie: when will we be out of the danger zone? when is fema looking to start helping the reconstruction effort as opposed to search and rescue? it is terrifying that that is going to be ongoing for another day or two. elaine: we think the rain.
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in about two days and the waters will peak by thursday and slowly start receding. at that point, we will transition more into recovery. vonnie: what areas are you concentrating on right now? what areas are you keeping an i on? elaine: we are keeping an eye on all the areas. area for us.major with the work of relieving the dams, we are making sure the coordination is done in the houston area currently. to elainer thanks duke, acting secretary of the department of homeland security. we wish you the very best of luck. coming up, bloomberg is tapping expedia's ceo. can this help push the issues plaguing the company behind us? this is bloomberg. ♪
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vonnie: this is bloomberg markets. i am vonnie quinn. we focus now on a notable stock you need to be watching. of the biggest decliners in the s&p are insurers as investors weigh the impact of home and auto damage is tied to hurricane harvey. as 3%s was down as much earlier this morning. joining us with more is taylor riggs. taylor: the ninth worst performer in the s&p 100. this shows how awesome it is. map of thea hurricane. almost $30 billion in damages. two thirds of that will not be paid out. that is due to flooding, backed
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by the u.s. government. but the remainder could hurt travelers and its peers due mainly to wind and storm surge. want you to hear about travelers. they have had quite years as far as losses paid relative to their premiums. that will help you. they have been anywhere from the 2% range to the 3% range in terms of losses paid out as a percent of premium. helping them boost a little bit of their capital buffer as they come into this. this is a cool terminal i want showingyou, catastrophic losses they have had relative to other competitors like aig and allstate. travelers here in yellow. aig down in white. allstate up in blue.
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relatively stable here. except for a few spikes over the last few years. i will look at morgan stanley put out a note, when you look at the stock price. ,ypically, it sells off relative to losses you need to pay out. the share price stabilizes over the next few months. or have slows losses come in lower than estimated, so to speak. losses come ine lower than estimated, so to speak. vonnie: it is now official. expedia has confirmed its ceo top job atfered the uber. he has been asked to lead uber. expedia is saying nothing has been finalized. the ceo'sy believes intention is to accept that role. he beat out competition from meg whitman and jeff immelt. he succeeds co-founder travis
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kalanick, who left the global startup in june amid investor pressure. eric newcomer has covered this ceo search from the beginning, and joins us from san francisco. eric, is this a good fit? eric: of the candidates, it seems at least the company he was running is the most logical fit. expedia -- we are talking travel, general electric, hewlett-packard. there is some logic there. the ceo of expedia is a dealmaker. that is very important. the logic behind this is there. at the same time, uber faced a lot of problems for its perceived closeness to the trump administration. --has certainly been
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probably one of the most outspoken tech leaders against trump's presidency so far. vonnie: this is coming at the same time we are seeing over co-founder travis kalanick argue that vc firms are challenging his right to appoint three board members and should be heard outside of court. he wants an arbitrator to resolve this. it enter into a good arrangement with this new ceo? eric: hard to say what the courts will decide. it does seem so far that there was not some sort of grand bargain. meg whitman had a lot of conditions for trying to be uber ceo. there was a chance that maybe the board would have shaken off some of these other issues resolved. this seems more like the compromise candidate from everything we have seen so far. it does not seem to have resolved the benchmark lawsuit against travis.
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the softbank deal, we have not heard anything on that either. this is a ceo who fills a leadership vacuum. there are a lot of major questions uber needs to resolve, going forward. vonnie: it could get a lot messier. let's focus on expedia for a second, though. the stock is dropping. it took a while for the start to get going. this leadership, it has done very well. willr concerns his leaving leave a void at expedia? eric: it has been on amazing stock run. sure uber's board of directors look favorably on that. a note from an analyst attributed a fair amount of the company's success to the ceo. i think it will be interesting to see who they pick as a ceo. we had one very contentious ceo
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surge. searchesd to imagine anywhere near as contentious. he is leaving a big void. that is why he was so desirable to uber's board of directors. what strategy might he start working out at uber? we will talk in a second. here is a sound we had from an interview with him a little while back. >> the visibility into the landscape has definitely gone down. there is a lot more uncertainty. in general,think, more volatility, although capital markets reflect that. the environment is more volatile. as a company, you have to stay flexible. you cannot get to set in your ways. you cannot get too comfortable. vonnie: we all know he has been a very, very vocal opponents and critics of the current
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administration, and in particular the president. any chance he will run into problems with regulators or any kind of agency, given his vocal critiques of the president? eric: it is a good question. uber, in the united states, seems to have solved a lot of regulatory problems, but they selftill trying to pursue driving car testing, and they ran into problems in california doing tests that were potentially against the rules or the law. they had to abandon them. that is at the state level. there could be some national legislation they are interested in, some driving research or car sharing more broadly. relationship matters. from uber's perspective, they have city dwelling driver and writer basis. -- rider bases. those people are much less likely to support trump.
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uber has taken a stand against trump and that will be seen favorably by some of its riders and drivers in a super-polarized time. vonnie: what will he have to do in the first one hundred days, assuming he does take the job? are hearing from expedia that it looks like he wants to, and that stock is down 4%. what would his first 100 days be like? eric: i think rallying employee morale has to be number one. i think figuring out the company, saying we have a chief strategist again, and i am going to make decisions around our investments in india, south asia, figure out the softbank deal, which has implications for some of the money-losing companies, figuring out self driving -- it is putting leadership in place, hiring a cfo, chief marketing officer, a
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general council. there are anti-positions, so hiring, rebuilding trust, and probably getting out of the news for a little bit. saying something been laying low, getting the company back on track, saying, here is what we have done to fix our cultural problems and values. that, he has to figure out what his relationship with travis kalanick is going to be, going forward. that is a big question right now. vonnie: what a revolutionary strategy. it seems many other people could benefit from that strategy. in santo eric newcomer francisco. it is time now for our latest business flash on the biggest stories in the news now. facebook will block ad payments for sites that continue sharing false news. the offenders will not be allowed to advertise on its platform. currently, facebook does not runw advertisements to unless the story is linked by back-checking organizations.
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estee lauder has responded to takeover rumors, saying it is not for sale. the lauder family and the board say the company is strong, with excellent forward momentum. several reports have recently forested possible suitors estee lauder, including unilever and l'oreal. -- oracle is hiring. salesforceting with to generate $10 billion in cloud revenue and become market share leader. that is your latest bloomberg business flash update. coming up, how the destruction and flooding left behind after hurricane harvey is significantly impacting retail, this during the school shopping season. ♪
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vonnie: this is bloomberg
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markets. i am vonnie quinn. --tinuing on the impact specifically the economic impact -- of hurricane harvey. stores with significant exposure in texas will definitely take a hit. arrival during the school shopping season may disrupt third quarter discretionary retail sales. i want to bring in bloomberg intelligence senior analyst for u.s. retail. it is not to downplay the obviously human impact, but this is going to have a pretty devastating economic impact on cities like houston and the state of texas in general. how much does retail play into that? >> it plays a lot into it, actually. the retail stores that are in texas and have a huge presence there will be shut during the peak back to school season, and will have lost the sales. for them, same-store sales will suffer in third quarter. august is the largest month of the third quarter for retailers.
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what retailers have a large footprint in texas? poonam: topping the list is stage stores. then we have dillards. we also have other retailers in the midteens including stein mart, ross, buckle. you have dillards. you have burlington. you have the traditional off-price retailers that have done so well. they may have something negative to say when they report third quarter, especially burlington and ross. they have significant exposure to texas. vonnie: did any of the ceo's make comments on planes of how they were prepping for things like waste and flooding in their stores? beforere lots of things customers start shopping again before it is all over. poonam: no one is talking about it yet, but i am sure they will preannounce third quarter in november. a lot of these costs will be
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taken as one time. there is definitely more than a handful. inventory, it is possible, might be affected, if it is in warehouses. typically, do these retailers by a a lot in advance, or does it depend on individual retailers? poonam: it depends on each individual one, but they are already buying for holidays, so holiday may be in their warehouse. willat is damaged, that affect possibly the fourth quarter. texas's gdp was growth last quarter? do we know? i can get up on one of our functions, but it has been doing pretty well as a state overall in the united states, right? obviously, shopping plays quite the part in this. been doing well, but shopping is important for texas. it is one of the oil states.
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exposure to the oil industries is very important. we get 45% of the oil production along the gulf coast, according to an energy analyst. that is probably not going to get hit as much. i think there they have some cushion or some really. some industry is not going to be as under the water as it seems like it is right now. vonnie: thank you. it is a tough situation. bloomberg intelligence senior analyst for retail, thank you. coming up, we are going to be speaking with texas congressman john culbertson about recovery in the state following harvey. a quick reminder. you can always watch our programs and interviews on the function tv . ♪
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kong,s 1:00 a.m. in hong i'm david gura. welcome to "bloomberg markets," balance of power.
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here's the top stories we are talking about. harvey bears down on texas, it could cause -- cost 100 and $30 billion of damage. president trump is excited the press for copperheads of tax reform. -- expected to press for comprehensive tax reform. -- economic very advisor gary cohn indicates he was not pleased with how president trump responded to what happened in charlottesville. ♪ david: to get an update on what's happening around the world, let's check in on burglar -- bloomberg first word news. authorities rescue 2000 people from flooding caused by hurricane


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