tv Bloomberg Markets Americas Bloomberg August 31, 2017 10:00am-11:00am EDT
>> we will cover tax reform and hardy recovery in the next two hours. we start with breaking economic data. desk are looking at a pending home sales for july, month over month basis, down a 10th of 1% and a survey had called for a gain of 3/10 of 1%, a decline of half a percent. the survey had called for a gain of half a percent. maybe not entirely surprising --sidering that july;s po july's pop had been an anomaly. missing the survey. ,ains for the major averages the dow, s&p 500, nasdaq solidly higher after the rally yesterday.
the nasdaq yesterday had been up more than 1% and the s&p 500 more than half of your percent. the geopolitical tensions earlier this week, that briefly took a toll on the markets being shaken off as buyers are stepping in. when we look at the breadth of the market, there may be some reason to be concerned and think that perhaps the rally we have seen for two days could be short-lived. .his is a one-year chart in white, the s&p 500 and in blue the percentage of members above the 50 day moving average. yesterday, the s&p 500 moved above the moving average, considered to be bullish and saying buyers are moving back in. in blue, the percentage of the members over the 50 day moving , thege, 43%, declining market internals are deteriorating is what that is telling us. suggesting that the rally we see for stocks today -- this week could be short-lived.
let's look at a sector doing well, homebuilders. bid. all getting a decent credit suisse estimated they could lose $1.1 billion in the wake of the devastation of harvey. holmes has been upgraded. -- homes has been upgraded. , gas look at gas and oil is higher in a big way. up about 11%. nymex crude up for the first time in four days, up 2%. investors taking a different view on oil which had been down in the wake of harvey because refineries are shut down in texas and that means less demand for oil. today, a rebound and not surprisingly, that is weighing on two of the refineries, bolero
and holly frontier. -- 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 reading in four months with the acceleration almost exclusively down to the increased an energy prices, following stronger than expected inflation readings from
the likes of germany, spain. ,he blue line's core inflation which strips out volatile elements such as food and fuel, holding at a tepid 1.2%. food for thought ahead of the next thursday ecb meeting. interesting day in the euro today after a report that various ecb governors are beginning to worry about the euro strength, raising chances of a slower qe taper. the european central bank meets next thursday. on monday, the ecb temporarily cross $1.20. bank of america merrill lynch says they shot the positive economic data out of the region and disappointing inflation surprises .2 downside risk. currency strategies revising forecast highs and keeping them below the current levels. morgan stanley is the most bullish for the end of this
year. cannot wait for the ecb next thursday. vonnie: it will be the event of the week. fomc not long after that. let's get to the first word news. >> two explosions rocked a chemical plant in the houston area, they lost power in harvey. arkema had one of the plant was without power to referred rate chemicals that become volatile as the temperature rises. arkema makes organic peroxide at the plant. flood waters are receding in houston today, firefighters plan to conduct a block by block search in areas that have been not accessible. the death toll has risen to 31. harvey has knocked almost one fourth of u.s. oil refining capacity off-line. department has
responded to disruptions in the oil market, authorizing the release of half a million barrels of oil from the strategic petroleum reserve. it will be refined at the phillips 66 facility in louisiana. global news 24 hours a day, powered by more than 2700 journalist and analysts in more than 120 countries. i am emma chandra. this is bloomberg. vonnie: thank you. president donald trump kicked off his effort to sell the american public on his tax plan yesterday in missouri. we are here to: launch our plans to bring back main street by reducing the crushing tax burden on our companies and on our workers. trump: before president launched into the latest goal for major tax cuts, he offered support to texas and louisiana in the wake of harvey. that moment revealed how the storm, which is claimed several dozen lives, and cost as much as
$90 billion in damage, may i knew limits to his goals of historic tax cuts. instead of telling people what will be in it, he made a point of saying that this is on congress, he does not want to be disappointed by congress. he listed the support. he said he did not want to be disappointed. why? >> there are two reasons, he wants congress to act, and he does not want to be blamed if congress does not deliver what he has promised. when you hit a president, this has been consistent, talk about what he envisions for tax relief, it is broad things, closing loopholes, streamlining and simplifying the tax code. cuts,rm category of tax
one is reducing corporate tax , aes to 15%, down from 35% huge asked in a year when money is in short supply. and middle-class tax relief, exact details to be determined but when you put them together, probably in the range of $3.7 trillion over 10 years. mark: well the this corruption -- will the destruction in tropical storm harvey limit the deliver ittruck to -- donald trump to deliver these historic's tax cuts? >> it may, the impact of the storm takes the ability to control it out of the president's hands and leaves it into the hands of mother nature, texas lawmakers, and the american public. here are the particulars, looking at around $90 billion in terms of assessed costs. when lawmakers come back next week after the august recess, many want to attach relief to a short-term spending bill and/or
to a debt ceiling extension or expansion. president trump had talked earlier about forcing a government shutdown, if his border wall funding is not met. conservativesal who want any spending increases to be offset in some way. we have a new dynamic entering the mix. this may reduce the chances of a shutdown, because of the optics and reality of lawmakers not wanting federal services to be suspended. but also as more costs have to be offset from somewhere if fiscal conservatives carry the day. vonnie: thank you. according to one republican lawmaker, the need to address damage from harvey could result in a "veneer of bipartisanship that helps the tax reform effort."
here is what he said yesterday on bloomberg markets. >> the hurricane event that is taking place in houston, while incredibly significant as that is, it does not slow down the congress capacity to operate on a dual track and i do not think you will see the slowing things down. vonnie: joining us is the head of washington policy research at renaissance macro research. you heard what the congressman had to say. you pointed out that this potentially could be a time for reevaluating as many as half a dozen fiscal policies. not likely to happen. >> that is right. when you look at the schedule in front of congress, there are five to six separate but related physical items that have to be down with -- fiscal items that have to be dealt with.
overarching, would be issues such as physical balance -- fisal balance, what will be paid for and added to the deficit? what the congressman said, the pace of legislating in washington has already been numbingly slow. it will speed up by necessity as they have to address the debt ceiling, the fiscal year begins october 1. they will have to address what to do about health care, spending for insurers and providers to make sure the markets do not get worse and suffer blowback politically in 2018. and they want to talk about tax policy, which will possibly necessitate the passage of a budget resolution. there is a lot of work congress has for itself in the fourth quarter. harvey only adds to the weight.
if they come together in separate entities that congress will deal with, a lot of it will be the focus on what does it mean for the fiscal balance and what does it mean for the people. vonnie: you say, as part of the challenges, they need to build functional trust. the president is meeting with gop leaders and tax writers on tuesday, can any functional trust be addressed at that meeting? so, the firstope time the president and senate majority leader, and bigger ryan will be face-to-face -- bigger ryan will be face-to-face and 3, 4 weeks, in that time have been skating tweets from the president about members of congress, not just the leaders, but other members. the political business is one of relationships, as is most businesses. that will matter going forward. for the functional trust to be restored and for it to lead to action on some of the calendar there willda items,
have to be a better relationship between the president and some of the leaders on capitol hill. mark: can we talk about the corporate tax rates. donald trump vision is 15% versus 35%, can you outline for corporateod is a 50% -- corporate tax rate -- it -- 15% corporate tax rate is, somebody says it is a race to the bottom, what are your thoughts? >> i agree in large part because the tax code is complicated, overly complicated, but highly interconnected. it is difficult to imagine cutting the statutory -- the marginal rate of taxes for corporations from 35% to 15% without there being a host of intended and unintended consequences. there are very few people and i cannot think of anyone watching this space with background in fiscal policy, who believed in a
50% corporate is a likely outcome. -- 15% corporate is a likely outcome. unless you offset it. there has been a talk of offsetting by closing loopholes, that phrase closing loopholes is tried and true to the pillars of marble that stand in this town and the $1.7 trillion per year that u.s. taxpayers forgo collecting for the loopholes is growing, not shrinking. a good one to watch, if you are looking for an indicator of whether or not congress get ,erious about closing loopholes right now there is a mortgage interested actions for principal residence and second residence. if congress takes away the interested action for the second home, i would be more inclined to believe they may tackle the first one. tax expenditures are broad and large for corporations, but mainly for individuals, there has never been a lot of serpas -- local support for cutting them. mark: the president has yet to
sign a signature law of his own. when will it happen? [laughter] >> that is pure guesswork. i imagine before the 2018 midterm elections and maybe as soon as the end of september, beginning of october, because congress will have to send him legislation on debt ceiling and -- in fy 2018. on tax reform, my senses you are looking at december and well into the first quarter before we know whether the president will actually receive a meaningful tax policy bill to sign. did notthey president make mention of territoriality, is that still part of the plan? >> i do not think so.
what is possible in washington on tax policy right now is relatively wide from a theoretical standpoint. largely because nothing has been done to date. in terms of political reality and in terms of physical reality , my sense is that the tax package, whether at the end of this year or next year, will be constrained by a number of the events we discussed and others have discussed this morning. i sent is that you are not -- my sense is that you are not reform,at meaningful just a few tax cuts and the prospect of that bill will depend on the relationship between managers of the legislation, their ability to gain the votes for a plan, and the purpose of that plan. all of that work is in front of us. thing, it ise more difficult to imagine, politically, that a tax bill will make it through the house and senate and to the president without people knowing the impact on the president and his businesses. vonnie: we believe that there.
great to see you. where does this gasoline futures rally take us, the eight day of gains. >> we will have to see how much more news we will get out of harvey. in the last few minutes, we saw that the big refinery is going to be off-line for the next few weeks. we are seeing an acceleration in the spike in gas. we are probably near the top of what we will see. not only is it the tragedy of harvey that is causing a lot of this, coming into the labor day weekend, one of the more heavily traveled weekends of the year. the combination is what is fighting the gas prices. -- spiking the gas prices. i see a topping off quickly. mark: weaker oil prices which is wising -- rising. mid-$42 to $43, why are you
bearish? >> it is rising and i think it is rising in concert with a little bit of the gas prices. overall demand is still terrible. it is very low. opec continues to produce more and more. most of the countries are not abiding by the limits that had been set. i think there is major downward pressure on the oil market. the $42 level, $43 level is where the next significant support trend is. change, up aittle quarter of 1%. is geopolitics going to be the main driver of gold in the short-term? >> you have two things, geopolitics and the dollar. the gold has rallied on geopolitics and the weakening dollar. the dollar seems to be stabilizing somewhat. the wildcard, along with much
other economic news, is geopolitics. if things do, down with north korea -- if things do called withwith -- calm down north korea, that will put pressure on gold. if something happens, there could be a big spike up. i think chances are pretty minimal and the economic factors in play, the dollar stabilizing, that is putting pressure on the gold rally we have seen her i .ould not b 1290 is the level i am looking for. mark: great to see you. vonnie: -- mark: expedia wasting no time naming a new chief executive after his old one unexpectedly quit to join uber. we will meet the new chief executive later.
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the storm may be a roadblock for tax-cut plansp's as he calls on congress to quickly deliver a harvey a package. -- aid package. u.s. consumer spending rose by less than expected last month. of the 3/10 of 1%. an upward revision to june cuts and rising income but the economy on a stable footing and consumer spending makes up about 70% of the economy. be goinglks appear to nowhere as the eu chief negotiator says the talks are far from making progress needed to move to a trade deal. the u.k. has refused to reveal its hand on crucial issues and forth -- accused the eu of being too rigid. china has announced the start date of the congress party reshuffle that happens twice a decade went 2300 delegates will gather on october 18. the president of china will
reorder scores of top positions, as many as five of seven officials on the politburo's and each committee could be replaced. global news 24 hours a day, powered by more than 2700 journalist and analysts in more than 120 countries. i am amit chandra. -- emma chandra. this is bloomberg. vonnie: back to harvey, a fire plant,es to burn at a following an earlier explosion, the company says the best course is to let the fire burn out and the sure of says the smoke is a nontoxic irritant as a vital fuel point between texas and the east coast is being forced to maybe not shut down, but to shut down in part. gas prices rising for an eighth straight day to a two-year high. on the harvey impact on oil and gas is a veteran of the industry.
normally, based in houston, but because of the events, you are stuck in new york. lucky to have you in our new york studio, even though your thoughts are in houston. you say there are some development regarding the colonial pipeline. >> it originates in houston and other locations in louisiana and delivers product through the mid-atlantic and southeast, it is receiving product from louisiana refineries. refineries that are operating in lake charles and new orleans, and mississippi, they are delivering product into colonial pipeline. colonial pipeline is not operating in texas. in houston and beaumont, port arthur where there is not enough product to make the pipeline operations, they are waiting refinery -- refinery restarts. vonnie: why is this pipeline so important, and the idea it is only shut down in part, does that make it better for gas
prices? >> a public and consumers will feel better knowing that supplies are not completely shut off from the gulf coast. it will still impact gasoline prices, futures market up over $.20 per gallon because the bottom line is that refineries have cut back operations so significantly. vonnie: you mentioned that one thing people have not talked about too much yet is airline fuel. it will impact airline fuel. >> exactly, because of the refineries cutting throughputs by 5 billion barrels per day. that accounts for about 500,000 barrels a day of jet fuel. airports in charlotte or atlanta that are dependent on jet fuel from houston and new orleans areas will see tighter supplies. mark: a knock on effect across the world, mexico is buying lots of gasoline from the u.s..
are they all looking for alternative supplies? is a scramble in the market with mexico buying 350,000 barrels per day of gasoline from the u.s.. they are turning to european suppliers. at the same time, european consumers are buying several hundred thousand barrels a day of diesel from gulf coast refineries. the european prices for diesel are rising. at the same time, jet fuel which of the coming out of the middle east and other locations going to europe is now being diverted to the u.s. mark: there is disrupted exports of liquefied petroleum gas, which is causing prices to rise in asia, will that continue? the u.s.l continue, has been exporting over 800,000 barrels a day of propane to a variety of markets around the world. we are seeing this trickle-down effect between north america, asia, as well as the european
markets as a scramble goes on. because we have lost so much refining capacity. vonnie: january 30 years, you have -- in your 30 years, you have seen many catastrophes, ,his is different, they all are but houston is one of the epicenters of energy in the u.s. do you imagine this will get resolved and markets will go back to pretty much normal within weeks, or will this take a lot longer? >> this will be a month-long phenomenon. there is good news, the corpus christi refinery's are starting up. they should be back on line in a few weeks and houston-area refineries, with the exception of exxon baytown, which had flooding, expect them to restart in the next two weeks to three
+++ i am concerned about the beaumont-port arthur area where a press release was issued, saying it will take them two weeks to assess the damage. vonnie: arkema chemical plant explosion, should we expect more of those types of events in the next few days? >> it is difficult to say whether that was a one-off situation but one would have to be concerned about a similar type event and beaumont-port arthur where there is so much water. and the loss of the external utilities could cause a similar type event. mark: can we talk prices? gasoline surging above two dollars a barrel in new york and today you have the brent, wti spread at almost five dollars. give me some prices in the next week for gasoline for that spread for the oil price. ,> starting on gasoline prices we have seen the wholesale gasoline price in the pipeline market, it is up $.50 per gallon compared to 10 days ago. as far as the retail consumer goes, they have only seen
increase of about one dime. they by day, the retail price of about five cents per gallon over the next week. spread, the big issue is getting me wt -- the wti to the refineries and it will stay lot -- unti. and of the permian basin pipelines have restarted, delivering oil into houston. the refiners in the houston area, marathon and valero, they will get crude oil surprise. mark: brandon versus on -- vonnie: brandon versus unbranded, it will end up -- will independent producers feel it more and be put out of business? >> they are being cut off because there is not enough supplies to go around and i would imagine that the branded suppliers are on allocation,
meaning they cannot get their full contractual volume. because it is not there. vonnie: about the colonial pipeline once again? >> the initial reports were probably misinterpreted or confusing, indicating it was entirely shut down which is not the case. the correct situation is that colonial pipeline is receiving petroleum products from louisiana, lake charles, new orleans, and mississippi refineries. they are unable to receive petroleum products from houston and beaumont-port arthur because it is not there. vonnie: we were happy that you were with us in the studio, as much as the sorry event let you stay here. mark: coming up on bloomberg expedia,the new ceo of aboutkerstrom, tells us
♪ mark: live from london, i am mark barton. vonnie: in new york, i am vonnie quinn. sienna third quarter revenue came in line with expectations and projections for revenues this quarter were disappointing. that was reflected in the share price. shares fell as much as 10% in premarket trading. joining us with more on the communication equipment supplier is taylor riggs. >> revenue for the last quarter looks like 720 million come in line with expectations but the
fiscal fourth-quarter, revenue low. million,ons were $770 the ceo said from $720 million to $750 million. they are expecting lower spending from at&t, at&t said there would be lower. and the federal government, their ceo said they are reducing their spending in the second half of this year, putting pressure on the top line of sienna. -- ciena. it has been a little bit of point of contention on how they can diversify perhaps more into the software that only makes up about 5% of their revenue as they look to go into more optical side. perhaps there is room to grow in the software side. vonnie: tell us about what hadened because citi
positive things to say about the stoxx, momentum. -- stock, momentum. citi said itike was a buy. they risk-reward pitcher of the stock going into earnings seemed good. i think people are still hopeful, despite the decline, that some of the revenue will pick up. and any weakness from the at&t or federal government will be offset by the new segment of revenue for growth for them. vonnie: thank you. another stock we are watching is expedia, shares tumbling after chief executive dara khosrowshahi announced he was leaving the online travel company to lead uber. expedia did not waste time
naming a new ceo, mark okerstrom got the top job. joining us with more as emily chang. >> joining us is the new ceo of expedia, mark okerstrom from their headquarters in redmond, washington. thank you for joining us and congratulations. from your perspective, how did dara tell you he was considering this job and what was your reaction? mark: you talk about these things for years. like a sports analogy, you prepare the team for the big game and get a call on sunday night, the game is not two weeks from now, this tomorrow. it unfolded like that. we were ready for this eventuality. i think we are pretty excited around expedia, very happy for ata and happy for the people
uber. he will do a fantastic job. >> their regular says no one was considered for your job. -- barry diller said no one was considered by you for the job. -- for the job. >> i have involved -- been involved in the strategic direction and dara and i have been involved in strategic decisions, along with barry diller, i do not have a lot of things i am dying to change. we have priorities, becoming more international is one of our key priorities and i will be focused on expanding globally. the transition at homeaway is a big priority. you will see a lot more for us and if i do my job well, maybe we will go faster. >> you now have deep ties to the youuber ceo, what are ways could work together, like free
uber rides for expedia customers. a long time talked about possible ways we could work with uber and integrating their services into our apps. i am hopeful, in the future, the talks may be easier now that we have a direct connection. andara is walking into incredibly challenging situation, lawsuits, we have heard about how he can do with big personalities. tell us more quite you think he has what it takes to take on these personnel challenges. mark: above all, dara has one of the highest levels of emotional intelligence i have ever seen. he knows people, he is humble, he listens. above all, he makes people around him better. people want to be around him and think like he does.
he is a great role model. he is a man of high integrity. he values diversity and gender balance. he stands for a lot of the great things that, from what we read, maybe lacking at uber. i have come -- confidence uber will be a better place. >> a report said you would go with him to uber but the point he has a lot of executive positions to fill, are you concerned that a number of executives from expedia will follow him? mark: i think we feel very good about our executive team. i think we have one of the most talented executive teams out there. we have been together for a very long time. they are really excited about the prospects around expedia. they are highly engaged and committed. we have been working together on a strategy that we are not yet done. there is a lot of work to do
ahead of us. we feel pretty good about our team. is becoming a bigger potential threat to expedia, they are making bigger moves in the travel business. do you see more opportunity to take them on from a u.s. antitrust perspective as they make these moves? and given the political climate, the skepticism around big check -- tech in general? mark: we will continue to protect our interest as we always have. google has been and we expect to continue to be a great partner for us. they have a very powerful position in the industry, both in the u.s. and around the world. we encourage regulators to keep them in check so that we can continue to have a healthy economy. , we aree, organically focused on making sure we execute strategies to make sure we are always the first place people to come to shop and book
their travel. , we willnation of that be fine and have a constructive and positive relationship with google for many years to come. >> airbnb continues to grow. you have homeaway. are you happy with your home runs a business, or to you have a long way to go to catch up with airbnb? mark: we are never happy with anything. we want our business to be significantly larger. this is a $100 billion of the vacation rental bookings, probably an understatement of the opportunity ahead. airbnb has done an exceptional job of creating awareness around the category and we are fortunate to be in the position where we have a business that is on a phenomenal trajectory to step up alongside airbnb. irish parents has been, there is all -- our experience has been there is always room for two. we think everybody will be a
success and also homeaway will be a success -- airbnb will be a success and homeaway will be a success. >> title would you characterize competition from priceline and its intensity? mark: it has been intense for the last 15 years, since the beginning of our competition. -- toct that continue continue. no major change, priceline, booking.com, exceptional companies and we have the utmost respect for them. a are making good progress in the u.s. we are making good progress in europe and asia and latin america. again, i think there is room for both of them -- both of us and we have great futures ahead of us. >> dara was outspoken about politics, especially when it came to president trump, will
you take a similar approach, when it comes to not just policy issues, but moral issues? mark: i think we have a very important role as senior , toutives of companies speak out against the things that are against our companies interest and the interests of our employees. role asake as an active required going forward. >> when it comes to global growth, other companies making moves, around the world, where do you see the biggest competition coming from? mark: i think china and asia is the competitive grounds for s iraq sought competitor. ,s industry as largest travel for online penetration around and thed is shy of 50% opportunities are so huge. you will have competitors that
are fierce competitors and strong competitors everywhere you look. we have many of them and i expect that to continue for a long time. we are happy with our progress. , new ceo ofstrom expedia. thank you for joining us. i will send it back to you. mark: great job, thank you. newy chang speaking to the ceo of expedia. and a wide-ranging, exclusive with erik schatzker, the bank of america chief executive this gust harvey relief efforts and warren buffett's stake in his back, and current business conditions. he showed this assessment of regulatory reform taking place in washington -- share this assessment of right mature reform taking place in america. >> it would be good. takinglatory reform
place in america. >> it would be good. the leadership of the agencies, they will propose people that have to get through congress. and rules that have been pulled back or rethought. does that have to be changed, and legislation. what the secretary did, for investors, analysts, companies, advocates, professors, he said here is a set of principles we have to fix with the key one being capital for us. liquidity requirements and the technical rules in capital. more access to our capital account when we have $20 billion after the stress test. let us put that back at the market so somebody else can use the capital. those are the most important things for us, capital liquidity and things like that. it may be something different to other people. >> trading book oversight? >> the volcker rule is too
complex. the question is, what was the principles you are trying to stop to make it a more straightforward execution? probably a good idea, five or six agencies now working on different sets of principles, and they all know it is too complex, the question is how to go about it. we have to figure out what we mean by that and keep the principles and praise. -- place -- in place. >> as you probably know, the buy side is beginning to freak out about these new european financial rules. how they a deal is it for bank of america -- big of a deal is it for bank of america? >> it costs us money to implement it. if you think about it, we have the number one resort platform in america -- research platform in a row for six years. $80,000 per year?
>> i assume they will pay. for customers who do so much -- as, to me it is not is big a fish you need to worry about, i am worried about the hurricane. it will be fine. it is disruptive. i am not sure we agree with all of them but you go on with life and people will adjust. mark: an exclusive interview with the ceo of bank of america. check out bloomberg go, all sorts of wonderful functions. it is a compendium of functions, questions, quick you
should always go to, if you need any help. catch a new program on bloomberg television, the ever-changing regulatory landscape. bloomberg markets rules and returns talked about regulatory change with our editorial experts on the frontline. the first episode is friday 8:00 p.m. london time. do not miss it. , gaining forrising a second consecutive day with stoxx europe 600 up a tense of 1% -- 8/10 of 1%. this is bloomberg. ♪
close on "bloomberg markets." mark: here are the top stories we are covering from the bloomberg and around the world. massive extent of the flood damage is becoming more clear. we will speak to a risk modeling expert who says that damage could get close to $19 billion. inflation gathers pace. how could it influence mario draghi and company when the ecb holds a policy meeting next week? the latestvers warning to the grocery business ripe for destruction. shares fall to the lowest on record as they have a tough time with competition.