tv Bloomberg Markets The Trump Economy Bloomberg August 28, 2017 1:00pm-2:00pm EDT
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 harvey, which has now
been downgraded to a tropical storm. it came ashore late friday northeast of corpus christi as a category four hurricane. it has caused catastrophic flooding in texas. >> a lot of people are frustrated and don't understand why we are seeing trucks -- unfortunately, those trucks can only go so far. and hopefully today, we will get to the rest of you. up on us.'t give none of us are going to give up. mark: the houston mayor added that nearly 6000 people have moved into city shelters. -- major airports out texas in south texas has reopened. corpus christi international today.service harvey made land for as a category four hurricane late friday 30 miles away. two other major airports in the region, george bush intercontinental and houston hobby airport have been closed since midday sunday.
taxes won't be the only state suffering from the storm. -- texas won't be the only state suffering from the storm. louisiana could get 20 inches of rain in the southern part of the state. aesident trump has declared state of emergency for louisiana and declared federal assistance. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more over 120 countries. i'm mark crumpton. this is bloomberg. en called's be historic as floodwaters continue to rise, roads are impassable and many metro residents are struggling to find their way to safety. john culberson was born and raised in houston, he represents district and you joins us by phone. map on the at a bloomberg showing the predicted path of that storm.
you can see the dots in red indicate refineries that have closed as a result of this storm. i want to know what you are looking at. what have you seen as the rain continues in houston? we'vessman culberson: already had approximately 10 inches to 15 inches in the houston area. some areas we are seeing 30 inches of rain over the last couple of days. we are praying and hoping that the worst of it is over with. this storm is very slow moving and is backing out into the gulf the same way it came in, and that is going to make a turn to the north. it looks like the latest track is going to take it -- the center of the storm to the east side of houston. the worst of the rain has moved off to the north and east, although we are still getting heavy bands of rain. this is an events that i have had some experts tell me this may go down as a 1000 year flood events. no one could have ever predicted or expected a catastrophe of this magnitude to descend on the
houston area. point, wes at this are working to help rescue her neighbors and our friends. strangers into our homes and we have people being rescued by kayak and vote -- boat. we have areas that never flooded before have water in their homes. david: i imagine you have reached out to your colleagues by phone and folks in the administration. what have you conveyed about the damage and what you need to see happen, and what needs to come to texas as a result of all this? we do putn culberson: together an emergency supplemental appropriations bill, i will be a key part of that as a member of the appropriations committee and i will be working with my colleagues from the houston area , regardless of party, to make sure that we have an emergency supplemental funding down to the houston area to take care of .ictims of this horrific flood the we make sure that the army
corps of engineers and harris county flood control district need, tothe funds they clean up the damage and help make sure that we mitigate any future flood. this is something that no one has ever really seen before. it's hard to even wrap your mind around the scale of this. you have got areas -- we had literally 20 inches to 30 inches of rain, and some areas could still see another 10 inches to 15 inches of rain. we are not out of this yet. it is just unimaginable. and we are immensely grateful to our first responders. thank god for the first work -- the great work they are doing, and the good nature of houstonians, taking care of neighbors and friends. it is very encouraging to see how people have just stepped up to help each other in the midst of this catastrophe, david. we are immensely grateful the president signed the emergency
declaration and the governor has dedicated these counties in southeast texas as disaster areas. that will expedite the flow of funds into this area. david: best wishes to you and your constituents. john culberson represents parts of western houston. major effect on the energy sector, refineries have been idle and you have seen u.s. steel capacity reduced by 10%. craig. us is grigori -- what you looking at as you try to gauge the damage that has been done so far? prices935 looking at gas , we saw a real surge is the storm rolled in and we now see it at a two-year high. what you watching for the level of damage in the gulf? craig: this is basically the energy breadbasket of america in the houston area. it's also right by the coastal region that often floods.
we saw that a lot of refineries have been taken off-line. that is where you will see gas prices potential spike in the days and weeks to come. we know it's a big transit point for a lot of oil that comes from inside the united states and other parts of the north america -- right through there. it's been taken off-line and shut down. they will have to assess the damage on those refineries and those depots. i think if you are driving a car and you are thinking about what this is going to mean for the rest of the year, it could be really bad news if they can't get those refineries back online soon. david: a logical eagerness see how the president would react to a crisis like that. my inbox is full of emails from the white house over the weekend. what did we learn about the latest president act when he has to respond to a crisis like this? craig: no news is good news for donald trump. as we recall from the hurricane katrina disaster, it was apparent that fema was falling down on the job and george w.
bush famously saying a heckuva job. --were member news anchors we remember using are still in after them on the air. that federal government didn't seem to know there was a storm or the scope of it. that isn't happening this time. donald trumps fema director is on the scene and he is considered a pro and really knows his stuff on disasters. trump himself got the video briefings in camp david and we know he is going to taxes -- taxes tomorrow -- texas tomorrow. based on the fact that fema is not the story, that's good news for donald trump. david: let me ask you about the perils of a trip like this one. timing is hugely important, george w. bush was criticized for how long it took him to get to the gulf coast after hurricane katrina. when you watching for as the president makes his way to corpus christi? make: he said he wouldn't
the trip if you thought it would be disruptive to the rescue and recovery efforts. he is flying into corpus christi, that airport is back open. he is probably far enough from the eye of the storm to not be in the way. that is what you want to be careful of. you don't want grumpy local officials are trying to save folks in houston that are still stranded feeling like the president is missing out. --will be quite a distance messing that out. -- that up. there is still lots more rain to come. by wednesday or thursday, who knows what's going to look like? he's making himself part of the story and taking political ownership of it. with something so unpredictable, i would say his advisers should hope for the best. it is a little risky for him. david: what is his relationship like with the governor of texas, greg abbott? craig: greg abbott has been going out of his way to say how
good a job the u.s. government is doing on this. everyone is trying to lock arms, there are pretty conservative republicans concerned about border issues the way donald trump is, and immigration. i think right now is the time for them to stand together as republican teammates. a difference from katrina where you had a lot of democratic local officials and a republican in charge with george bush. not the case here. i think they can sing from the same songbook. when they gol come to congress and ask for recovery aid, the budget is down to $1.8 billion. in the face of the storm, not a lot of money. it was a tricky political dance during the sandy storm in the new york area. a lot of the congressman, some from texas, did not want the federal government to put that money in without offsetting it from other funds somewhere, so it was revenue neutral, deficit neutral. i don't think that's an argument that taxes will be making -- texas will be making.
as we look ahead, those of the five to come and the things to take -- those are the fights to come in the things to take care of. we will see if the unity can persist. david: a quick note, the american red cross is asking for your help. the organization has dozens of shelters up and running, but it expects prices to grow exponentially and thousands of texans will rely on the red cross for food, water, and a place to stay. cross.org for more. the congressional recess continues and a handful of republican lawmakers and administration officials try to hammer out a plan for ,omprehensive tax reform something the president is expected to push for publicly later this week. this is bloomberg. ♪
david: this is "bloomberg markets," balance of power. i'm david gura. abigail doolittle has a check of the markets. abigail: we are looking a very small moves for the major averages on this monday trading session. the dow and the s&p 500 ever so slightly lower, failing to hold onto the gains we saw around the open, but the nasdaq is ever so slightly higher. of about .2%. down,p 500 being dragged the nasdaq has less exposure, being held by biotech. it's worth noting, it's been about three weeks since we have seen a record high for major averages. it is showing in a breakdown. this measures the number of new 52-week highs for new york stock exchange listed stocks. we see right at the end of 2016, very high and the yellow circle, around 500.
now less than 100, which means investors are less enthusiastic. something to keep an eye on, considering there hasn't been these records in three weeks. that take a look at stocks are helping those, apple's trading higher as the wall street journal reports. it is said to hold a product launch event on september 12. shares of home depot getting a .id on the harvey storm and then gilead sciences up by 2.4% after the company said it is acquiring tighten pharmaceuticals for $11.9 billion in a cancer megadeal. and then rounded out with energy , we do have the energy complex trading off of harvey, and oil is trading lower as refiners are shutters. -- are shutters. gas is higher, the tax break not helpingay, it's the driller. overall energy is down is a sector. david: abigail doolittle, without market update. members of the so-called six
released ag six have statement of principles for tax reform, and the indicated we will get more details soon. president trump has been quiet on the issue, but the white house suggest that is about to change. he is revealing a big speech on tax reform, something my next will benext guest paying attention to. shawn golhar jointly from new york. we had some supplement to that original document, and we do know the adjusted taxes are off the table. what are you listening for as the president prepares for tax reform? mr. golhar: ironmr. golhar: --mr. golhar: i am interested in how is going to get this through congress. i'm interested to see if you ,ill reach through to democrats trying to do some repatriation tax tighter infrastructure spending? end up tryingld
to focus on a handful of those. david: michael mckee was in jackson hole, wyoming for the fed policy symposium. he spoke with the father of the so-called border adjustment tax and he asked if he thinks by doing tax reform, he could get to 3% growth. to 3% from just under 2% is a pretty big lift. it's hard to think of any realistic policy option that would make that big change. david: calling a pretty big lift. it is hugely important for the prospect for growth. when you look at models, do you see that happening? mr. golhar: we do. 2%y see trend growth in the instead. but what is the process to get this done? we have to do a debt limit hike sometime in the fall, and we published research saying we think you can see modest tax cuts by the end of q1 18, probably not some comprehensive
tax reform. issues like him for sector spending, we've seen very little detail on that, so i'm not optimistic. david: you mentioned when lawmakers get back downtown in september, it's a lot of mandatory stuff, funding the government and make sure the lights stay on. it's raising the debt limit so the u.s. can pay bills. how much flexibility to lawmakers have to make that something the tackle in the deal -- in the near term? mr. golhar: number two is tax reform on the list. it's extremely important. republican leadership do not want to walk into a midterm election having failed on health care and tax reform. they want to get something done. for the administration, there's trade reform policy. the nafta renegotiations, we have two more rounds in september. and the administration has been very aggressive on its trade policy. david: what is your advice to clients to see what the president leads or hear him talk and raise the specter of having to shut down the government or
throwing out nafta entirely. how much credence do you give that and how much credence should investors give what the president is saying, versus what the official line is from other members of the administration? mr. golhar: it's important to resist whatever. you will find out better what we are about this, but take a look -- take a step back and remember congress has to pass. he may talk about the use of tariffs and the tax code, but some of these issues will reside in congress. on other issues, it is very important to see what the president is thinking. how does he feel about after renegotiation? the budget will come down to the border wall with mexico and how it gets funded. that is something that is very important to the administration. david: there was a sense the foundation had shifted in washington, and with that came opportunity. republicans on both
sides of congress and in the white house, that was going to lead to things changing. does that change landscape make the calculus different for the debt ceiling? how confident are you that that is going to be raised in a clean fashion? mr. golhar: very confident, but i don't begin will be in a clean fashion. we looked at government shutdowns or funding gaps over the last 30 years, and we looked at them, we only have a handful or three syria shutdowns that happened in the 90's as well as the last one under president obama. before that, they were funding in a very short nature. is very uncommon to have it happen under one-party rule. for the president to fight with his own republican congress to say we are going to have a shut down would be extremely unusual. my view is i still think it is less than 50% chance we will see a shut down. i know some of my peers in other places think differently. i think they will find some way to get a compromise solution. david: we talk about political risk, there is still a lot brewing.
how worried should investors be about the uncertainty? mr. golhar: it was a very busy friday. is on the pardon and issues of military service, north korea tested missiles. it's always front and center for clients, extremely important. it's hard to handicap odds on these things. there's no great option on that. i think it is something for investors to watch over and spend a little more time on. i seen as well. a lot of clients have come to the team asking about what do you think about north korea were u.s. china relations? it is becoming more and more important. -- shawnan dollar golhar joining me in new york. nafta renegotiations continue. congressman mark walker weighs in on the issue of trade. at a chance for angela merkel and french president emmanuel macron or holding a news conference -- are holding a news conference in paris as we speak. this is bloomberg. ♪
david: welcome back to "bloomberg markets," balance of power. i'm david gura. is indicating he is considering scrapping the north american free trade agreement altogether. he tweeted we are in the nafta worst trade deal ever renegotiation process. we may have to terminate. trade is a hot button issue in north carolina's sixth district issue. bignsboro is to be a manufacturing hub. republican powers been mark walker -- republican congressman mark walker used to represent that district. >> the district i represent in central north carolina at one time was the largest textile district in the country. when the president talks about getting these trade deals correct, the people i represent are fully supportive of that. they understand that, rightfully or wrongfully, leaning think on
-- blaming things on nafta. after it was passed, we lost many textile jobs. we want to make sure that it is something that is bringing back -- to continue bringing back manufacturing jobs to north carolina. david: let me ask you about some of these tweets and the commentary focused on trade. the president over the weekend that reason specter he might pull out of nafta. you and i talked about the trade riskier and the health of the u.s. economy. how would you give credence to that versus looking at what the secretary of commerce is doing in the u.s. trade representative is doing and the fact that these negotiations continue with mexico and canada? >> there's a lot of heat and light and noise. i don't think there is likely to be a severe all-out trade war. relativelyeen some in-depth reporting suggesting he
does want something at least symbolic to hang his hat on. i think that leaves us with something that is going to be a little dysfunctional, but we aren't going to see the worst case scenario, in terms of really aggressive over trade wars. we are likely to see some actions on trade and will certainly affect certain industries. willoughby was nafta or chinese steel? nafta is too important and too broad and really far-reaching in the u.s. economy. conversationf my with mark walker from earlier today on bloomberg intelligence. you can watch that interview in its entirety and all programming on the bloomberg with the function tv . this is bloomberg. ♪
floodwaters have reached the roof lines of single-story homes as harvey continues to drench the city, after a chaotic weekend of rising water and rescues. the nation's fourth-largest city is still largely paralyzed, there is no relief in sight from the storm that slammed into texas is a category four hurricane, and then parked itself over the gulf coast. an additional two feet of rain is expected. collects working with red cross and other partners to make sure we have the supplies, the food, people are needing clothing. people are coming in wet, they need clothing. we have asked for things like diapers, baby formula, things of that nature. , babies, all the way up to senior citizens. they are needing everything. downgradedy has been to a tropical storm. the white house says president trump will visit texas on tuesday, accompanied by melania
trump. they have kicked off a third round of negotiations in brussels. further talksto for a trade relationship, it the eu negotiator says the administration needs to be more forthcoming about where it needs -- where it stands on the terms of the separation. concerned -- time passes quickly. i welcome the u.k. government papers, and we have read them very carefully. positions on.k. all separation issues. this is needed to make progress. the mark: almost five months after the two-year process began , discussions and made little headway. the u.k. released a batch of position papers last week to outline its position.
the american civil liberties union is suing president trump for banning transgender americans from serving in the military. -- suit says the processes the president's order violates equal protection cause of the constitution. the president has given the pentagon six months to return to the previous policy that hard transgender officers. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. david: treasury secretary steven mnuchin continues to urge congress to raise the debt limit as soon as possible. but his estimation, the u.s. government will have trouble paying its bills on or around september 29. the bipartisan center does its own analysis and it says the x date is likely to be in early to mid october. steve bell is joining me. we ask you to give away the secret sauce.
how does your analysis differ from what the cbo is doing or the treasury department is doing? mr. bell: very close. we do daily analysis, the team does a daily analysis of all the treasury statements. we've been doing this for seven years or eight years now. the cbo, department of treasury, lates at the bpc, september, august really has to act. something early october, depending on impact of harvey, could be a day or two early. but that is where we are. early to mid october. september activity is absolutely necessary. infusei don't want to too many politics into the natural disaster, but you bring up tropical storm harvey. what effect did not have? good that make this -- that make this more untenable? was is goinghink i
to be much more anxious -- i think congress is going to be much more inches to get all this done. the president has a very consequential decision to make. is he going to insist on the wall between mexico and the united states, to the extent that he would veto a continuing resolution -- continuing spending, which has to be passed by the first of october? or will you say i will take a or a-term spending bill short-term debt extension because of what's happened in texas. i think it is an unknowable answer, whether the president will say i want that wall, despite what happened in texas because of harvey. david: i'm going to pull up a 9426, this chart going back several decades looking at the u.s. debt ceiling over time. it takes a precipitous rise over
the last couple of decades. now at $19.8 trillion. it seems like we are reaching this point more frequently than we did in the past. mr. bell: oh, yes. it's all demography. , morea is getting older people applying for disability, social security, the care, medicaid. we have a serious problem that congress has refused to confront for the past 20 years. we know that from the social security trustees and all they have said about social security and medicare. those of the things that are really happening that caused this debt to go up despite the sequester cap's, despite all the fights we have had over the so-called continuing spending bills. that is the smallest part of the budget, and probably the least problematic. the biggest part is what congress and the president don't want to touch. is scarye x date sounding. what happens when the treasury department runs out of cash? mr. bell: all it will have is
money that comes in that day to pay as many of the debts that came in that day. at some point over the next two or three days after that, they simply are going to get further and further behind. at some point, they are going to be paying something like 23% of .hat is owed in the first day it will get worse from then on. kind ofabout this casually, but this has not happened to the united states. we are the reserve currency of the world, our 90 day g bill is supposed to be the basic store of value against which all derivatives and swaps and other kinds of calculation the made. -- are made. this has the potential to be as catastrophic to the markets as harvey has been so far to the houston area. david: help us with what dates we should be looking to going forward? i look forward to october 2, because it is my birthday, but the markets are looking forward
to a different reason. mr. bell: happy birthday. over $80ay, a little billion has to be transferred to the veterans retirement system. that's $80 billion, statutorily required. the next day is the personal security payment and data statutorily required. be reallyoing to early october, i would keep a watch out for those two dates. that is why steve mnuchin has said very clearly let's try to do this in september. they may do it in september, but i think it's a possibility that they will extend the debt for maybe 90 days as they wheel this so-called continuing resolution for 90 days and try to get some time to figure out what they are going to do about tax reform, -- changes to the obamacare they have such a loaded plate. the smartest thing would be to do the following -- extend
everything for 90 days and give us time. bell, former staff director of the senate budget committee joining me from washington is afternoon. coming up, president trump's response to what happened in charlottesville in couple of weeks ago draws criticism from members of his own administration. this is bloomberg. ♪
oliver: it's got one of the highest volumes of shares are about twice the 30 day average. this is a company that just close above the 200 day moving average last week, so it had a decent amount of momentum. there were two different stories that happened with a natural disaster like harvey, once the hurricane, now the tropical storm. this is basically the idea of some of their plants might be disrupted and the actual locations that are along the texas coast line are getting battered. the actual market aspect over the crack spread, the spread between the margin of an oil producer or will refinery to take this -- will refinery -- oil refinery is jumping up. function, a way to look at crack spread. oil is downright, and gasoline is up. the white line here is that spread.
, and theee the jump idea that maybe a company like valero is going to have somewhat limited operations along the coastline right now, but because of the higher crack spread, they can up the distribution and what they are doing all their other locations. this is sort of helping refiners as a whole throughout the industry. if you look at these events as it typically does happen. david: i wonder how long it would it take to play out? in terms of timing, it is fortuitous in one sense, inventories have been built up in these refineries are not going to be caught as ham-handed as they might have been. oliver: we had an article out today, one analyst was saying that shares of refiners have been outperforming major indexes by 6% to 20% in the 10 to 20 days following landfall of the major hurricane or major event like this. the question is what refinery you want to begin in, which takes us to the second function. blue here's valero in the
training about 14 times the bloomberg forward pe. if you look about where that is relative to its historic standard, you have the orange dots showing the historical average for each of these companies. here's where valero sits. the blue 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 state and the president right now? not great. secretary tillerson is meeting with donald trump at the white house today for a working lunch. there is an increasing divide in this administration between donald trump and the people who work for him. gary cohn being a perfect example of openly criticizing this president, but still serving him. david: let me pull up a bit from i one point gary
cohn says citizens a standing up for equality and freedom can never be equated with white supremacist, neo-nazis, and the kkk. strong words from gary cohn. what have we learned about how that interview that he gave is playing within the inner sentiment the white house? -- inner sanctum of the white house? marty: silence is the telling thing. they'll trump has never hesitated to attack people who criticize him -- donald trump has never hesitated to attack people who criticized and cover that he has been silent how would suggest that he either respects or is ignoring those comments and needs gary cohn to push his agenda, so he has decided he's going to keep in there and not say a word. david: are we seeing variations on the same old thing? we've heard a lot on the divide between the so-called globalists and traditional republicans and the so-called nationalists within the administration would countriese tariffs on
. this is just another chapter in that story? marty: i think it is another chapter, yeah. don't forget, steve bannon is gone and so are a number of his allies. that voice, the disruptive, nonconventional aggressive narrative is gone from the white house. it is still there in donald trump. we will wait and see just how much he says he doesn't agree with these views, and he may do so as early as this afternoon in his press conference. david: when you look at national security, let me go back to secretary of state rex tillerson who was complaining that he was thatng forward nominees the white house was shutting down other was conversations about a so-called loyalty pledge or the white house rejecting nominees who said something bad about the president when he was a nominee. how empty is foggy bottom here in 2017? marty: it's it's pretty empty.
there were a lot of overseas leaders that tell us they don't know who to talk to in the state department. on some very important issues. number of true that a his nominees were sort of sidelined by the white house and at the same time, tillerson is not without critics himself, about how he is conducting business. it's not clear just who is in ascendancy, others just one president. there is speculation that tillerson's not going to be there much longer. david: what can we learn about the way the secretary of defense james mattis talks about this administration over these last few days? we got an official memo instructing james mattis to begin to work on reversing an order that allowed transgender individuals to serve in the military. do we have a sense of how he is going to react to that? i get are yes and flexibility in terms of how that is implemented -- i gather that he has some
flexibility in terms of how that is of limited. marty: he certainly has some wiggle room. he has been outspoken after donald trump famously tweeted his transgender bad about of hole in the values of the military, which has been at the forefront of inclusiveness for decades. i would suspect that it will be a soft rule change, something that mattis can live with, morally, and still support the president's view. david: we talked about the way the president -- the secretary of state responded to the presidents comments after charlottesville. he told his troops to hold the line, he nodded to the discord here in the u.s. that we have seen over the last few weeks. how much importuned we place on that? -- import should we place on that? marty: i think james mattis and a number of the other military people in the white house have clearly decided that it is their job to protect this country.
not necessarily from the president, but to support the president, and to keep them on track for the good of the nation. i think that is exactly what he is doing. he has decided to be patriotic and serve this president in the best way he can. and in doing so, serve the country. david: i will return to the name you would vote -- -- you invoked -- steve bannon. how much has changed since steve bannon left the white house? is there a different feel to that place now that they are out of the building? marty: i think there is. we journalists do have our ways into the white house, and one of those ways is now gone. it is a little more disciplined. kelly as chief of staff is making a difference. there is a different atmosphere around this white house since steve bannon is gone. david: marty shanker, senior
david: this is "bloomberg markets," balance of power. i'm david gura, just after 4:00. to watch thise press conference on bloomberg television and listen on bloomberg radio as well. it marks the beginning of a busy week for the president. we bring in kevin cirilli. a moment ago, the president sat down with the secretary of state after that exchange with chris wallace yesterday. he has to meetings with the finnish president today. address thet him to thing going on in texas? we are definitely hearing
from president trump this afternoon on his admin's rations effort to see and help what's in the horrific flooding going on in texas. the president will head to corpus christi tomorrow, where he will be on the ground seeing what exactly the damage from now tropical storm harvey has done to the area. from there, he will head to missouri, and is anticipated to provide new details involving his tax policy overall. the treasury department has been in constant contact, particularly within the republican party on capitol hill , even during this august recess. we are a little over a week from when lawmakers return to congress next week. they have to get through two things before they can get the tax reform -- first is raising the debt limit as well as patching of -- having a partial government funding bill two aboard is shut down. taxpassing tax returns --
reform. the presidentng has been trying to do, the president was up at camp david for the weekend. he was in teleconferences wearing the usa had and being engaged with what was going on in taxes -- in taxes. -- in texas. what would make this a good trip, outside of seeing the devastation you mentioned? the illustration from senator chuck grassley, republican from iowa who tweeted at the president do not make the same mistake that former president bush did during katrina. senator grassley's charter -- chairman of the judiciary committee. it illustrates this administration really wants to avoid any type of headline of being elusive to the problem going on in texas. it's more of a local political storyline that has developed, the issue of whether or not houston should have been evacuated.
from the more myopic version here in washington, 1600 pennsylvania avenue, the administration is pushing out really being hands-on on this to avoid any type of appearance he is not. david: you mentioned the speech he is scheduled to give a missouri on wednesday. is this a continuation of the story we have seen before? the president and white house saying they want to make tax reform a big event for the weekend that other events intercede. we've have a major storm drawing a lot of attention away from other things that are happening in this country. is this another example of the white house being unable to hold onto to what they would like to see the narrative the going forward? kevin: remember infrastructure weak during the charlottesville debacle? they would like to centralize their message and i think what's interesting is that just several days ago, the president tweeted criticism against mcconnell about not being able to pass health care reform as was promised on the campaign trail. , according toears
the financial services sources i've spoken with in the past week or so, they believe the white house has successfully pivoted onto tax reform and they are hungry for this. from president trump's perspective, if the republican-controlled congress can't get tax reform done heading into midterms, it from their argument could mean this figure is out. -- the speaker is out. david: kevin cirilli, joining us from outside the washington -- outside the white house. you can watch that coverage right here on bloomberg with the function tv and of for the balance of power newsletter at bloomberg.com/politics. is the latest on global politics in your inbox every day. this is bloomberg. ♪
scarlet: we are live and bloomberg world headquarters in new york over the next hour. here are the stories we are covering. tropical storm harvey looking to be an economic catastrophe. we will be speaking with the former fema administrator on the to be inecovery said the tens of billions of dollars. uber has settled on a new ceo. we will look at how he addresses persistent losses. amazon is having its newly acquired cut prices on everything from autocad to bananas. we will ask a coetitor how this iweighi on th indust. let's get you started with bloomberg first word news at this hour with mark crumpton. mark: thank you. is going toet worse befor it gets better. that warning fr the