More, but we are about 30 minutes into the trading day. Abigail doolittle is here, with a mixed direction for the session so far. Certainly the dow in the s p 500, fractionally lower, the s p 500 fractionally higher, but the nasdaq being helped by technology and not seeing the drag from energy the other indexes are seeing more so. Lets take a look at that. Oil on the day along with a few energy movers. 1 ,is down about 1 , almost down for a third day in a row. This reflect Hurricane Harvey, and in the wake of the storm that many of the refineries in texas have inkind. There is less demand for crude. That is weighing on the price turn weighing on some of the other names. This is an interesting dynamic to take a look at. Lets look at it in the bloomberg. Refineryhe total amount of oil processed by refineries in the u. S. , and we see through august 18, we see that about 4 Million Barrels per day are coming off line from these refineries being shot, so this processing is coming right down. That is a drag on oil. There is less demand for oil. Where there is a lot of demand, vonnie was talking about apple. Hitting another intraday high, five days now. Lots of excitement for iphone 8, and a great article on the bloomberg detailing what may be ahead. We will hopefully have a Product Launch date coming soon. We will be reporting on that, but analysts sarver he excited here, more so than what the staff is reflecting right now. ,ets take a look at this chart we have the price of apple, and in blue we have a price target of the analyst. Pretty amazing. That suggests that apple has a market cap of 900 billion, almost one children dollar almost 1 trillion. 1 trillion, that is the big question. Every Industry Group is grinning on the stoxx 600. It is up 7 10 of 1 , gaining after that measured response from donald trump to the news korean north Korean Missile launches. But the top, utilities are the weakest performer, but everything is rising today. These stocks slowed a little bit rising that percent yesterday when we sell equity , a bitsaw equities down over a verse for that trend today. Low, 16. 6n alltime is the level today. The fear index, the vix index is falling a tad today. Eye on the boe governor, because sterling is weakening to. He lowest level since october this is sterling based on the trade weight, the next boe calculated and Effective Exchange rate the reason i have highlighted this date range is because back then, the governor and his colleagues warned that they were in different on the exchange rate. Most boeent officials have indicated the willingness to look through the initial inflationary impact of the pounds decline since the referendum. Theirat may test tolerance against the euro. Sterling your the weakest its near theterling weakest since 2009. Economic confidence is writing to the highest level in decades, the wide line. The blue lines is services, yellow line, consumer confidence. The purple line ecb policymakers next week prepare to or discuss deal with the future path of qe next week. With a booming economy showing a few signs of being sustained by inflation and policymakers probably will not rush and exit. Majories improved in all u. N. Area economies except for germany. This data set this up nicely for next spurs a meeting. Vonnie, breaking news . Vonnie yes, it relates to this pharmaceutical company. Was named ascht the new ceo. She founded one of those companies. Singer has been raising his stake in the company. Stada set, start a in Claudia Albrecht set to o albrecht as the new ceo. This storm made it second indfall today, and landed the southeast part of louisiana. Blameorm has been the for 18 deaths in louisiana, and at least 14,000 people have been rescued. Damages could hit 80 billion, the second costliest nastier disaster Natural Disaster in u. S. History. Increasesstic product in annual rates of 3 , and Household Spending was stronger. Business investments facing a bigger game. From north koreas kim jongun, saying the test fire of a missile over japan was a meeting will meaningful prelude to the firing on the u. S. Territory of guam. Military to his conduct more exercises in the pacific ocean. Germany, inflation grows more than expected, Consumer Prices increasing in august to a rate of 1. 8 . The European Central bank has been trying to get inflation on the path to 2 . Policymakers discuss whether to remove the monetary stimulus. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im emma chandra, this is bloomberg. Vonnie thank you. One day after visiting storm ravaged texas, President Donald Trump will kick off the campaign to overhaul u. S. Tax policy. He is heading to springfield, missouri today. This is the first what white house officials have said will be several stops in the midwest. Timeline has seen some setbacks. Here is what treasury secretary Steven Mnuchin told us yesterday at a white house news briefing. First of all, we have been very focused on tax reform, working with the leadership since january. I think you know earlier in the year, i said i thought we would get it done by august, and i was wrong. I am now going to say that i am very hopeful and i think we could get the sum by the end of the year, but we will continue to revisit that. Join our analyst outside of the white house. Swing states are the focus on this tour for the president , right . Why is that . He has a two full domitian. He wants to galvanize americans around his tax reform, but also mission. Twofold he wants to galvanize americans around his tax reform, but also wants to push back against the leadership in these swing states. He wants to convince democrats to abandon other democrats and but with republicans, or face political consequences. It is a strategy to put forward his tax plan and get it in front of the american people, get Political Support for this tax plan as it goes before congress. So he will not face the same type of trouble he faced with the Health Care Bill in getting enough votes to get it through both the health house and senate. Obviously congress have a lot on its plate when they return from recess next week, such as the debt ceiling and that spending bill. How realistic is a taxable plan by the end of the year . Remains to be seen. Congress has not revealed the actual plan yet, and that is a sign that there are a number of things that need to be worked out. They do not have a lot of time given Everything Else they have to do, so we could see this shift into a more simple tax cut , not a overhaul of the entire tax code, but something that could get enough support to get through by the end of the year. We heard from steve mnuchin, the treasury secretary, that the white house will revisit the , which is aneed be sign is the push into the early part of 2018 if they are not able to coalesce around a plan. There is some shifting going on with this timeline, given all the other things that they how have on theirs plates tax form could be pushed into next year. Vonnie obviously it will be supporters of donald trump that will return to these rallies, ending the rigged economy is one of the themes he is going to be discussing. What does he tell them about ending socalled rigged economy, the tax writers have not even revealed what they are writing yet . It to be expect similar to some of the Campaign Rallies toward the end of the Campaign Last year. He talked in broad strokes, not necessarily getting into specific details. There are a few things they have come into an agreement on, including increasing the standard induction for families, adding you child tax credit. They have not put the muscle around the skeleton, but there are a lot of details that have not been worked out yet. President trump has shown he can take a few nuggets and make a Great Campaign rally out of them, and that is what he did on the campaign trail. We can expect into talking broad generalities, and he will have a lot of supporters there in missouri, so you can potentially expecting to go off script and talk not only about tax form, but a number of Different Things on his mind. This will be very similar to some of the Campaign Rallies we have seen from the president in the past, and tax reform is the focus but you can never predict exactly what hes going to do. We will be staying tuned to see if he talks about other things as well. So what was the takeaway from the texas trip that President Trump did yesterday . The white house was happy to get the images of the president in commander in chief mode, down on the ground in texas. He did not visit houston or any of the hardest hit areas, he stayed away from some of the areas where ongoing rescues and Recovery Efforts are continuing. But the white house wanted to show that the president is engaged in the process. He met with the governor of texas as well as local officials, and held sort of an impromptu rally with supporters down there. He will be going back to texas on saturday, and getting closer to some of the action, closer to some of the places where the hurricane has done the most damage. But the overall impact of the white house wants to show is that the president is engaged, involved, and will be providing federal support that is needed in texas in order to recover from the storm. Thank you very much. And we will of course bring you live coverage of President Trumps remarks on text reform tax are from, starting at 2 30 eastern, 7 30 p. M. London time. Mark oil under pressure today ahead of u. S. Crude Industry Data published. This is bloomberg. Mark live from london, im mark barton. Vonnie and im vonnie quinn. This is bloomberg markets. And gold falling today, Tropical Storm harvey halting cruderies and reducing demand. Gold is falling from a tenmonth high as north korea years fears abate for the moment. Tim, we have seen another refinery shutdown, and it looks like we are not done yet. Timeall for a second earlier today. What is that doing to the market . Obviously, crude oil is jumping, but there seems to be a bit of a floor their . The news continues. This is a very fluid situation, and it will continue to be that way. Last night, the announcement a refineryotiv shutting down, that is a big development. That takes u. S. Capacity down by about. 1 of overall u. S. Ofining capacity 21 overall u. S. Refining capacity offline. Lead to the market being very backed up, but the argument i have been making to our clients was that the intermediateterm fundamentals of actually improved. This is a very bearish, unexpected, unplanned for event. This negative price movement, but to the point that you are suggesting i think you are seeing some support in the market, and that is reflected in the more intermediateterm fundamentals, which we think are more bullish. So the premiums for gasoline over crude is that a 16 month high. Do you anticipate that premium going higher, and also the spread between brent and wti. World are go for the time being . It will be difficult for funds, large investors to bring the kind of volume that can turn the tide of the crude oil or bring spreads down between true crude and distilleries, so we think there will still be a few more days of these spreads possibly widening. If you look at the contract, from a technical standpoint we think we are headed to technically overbought levels, so we could be seeing a blowout there in the next few days. We will be looking for these spreads, but it is a bit early to begin acting on that today. Gold is off the highs, and there are probably many reasons, that one of the reasons it reached about 1300 was north korea, obviously. President trump tweeted to them this morning and it was not the friendliest of tweets, so why is the market relaxing . The u. S. Dollar, there has been a Strong Negative correlation between the u. S. Dollar index, gold, and when the u. S. Dollar index broke below that 93 handle, that is when gold was finally able to make that run through the 13. 3 1300. 3 level. That clear the path for upward movement, and that is where we stand now. I think the development, with respect to north korea, has quieted down a little bit, so gold is consolidating based on that, but as long as that level holds, we can look at a challenge for the highs that we saw on the night of the elections in november at 1353. Vonnie tim evans at longleaf taken Group Trading group, thank you. Mark a time for the Bloomberg Business flash. This japanese maker is investing in graph, the top right healing operator ride hailing operator in southeast asia. They hope to raise 2. 5 billion. Might beine industry on the verge of a fair wall fair war. This is threatening to derail the industrys growing recovery. Still ahead on bloomberg markets, another bloomberg scoop , we will tell you what new tricks chief executive tim cook might have up his sleeve when he gets on stage next month. This is bloomberg. Markets,s is bloomberg im mark barton in london. Vonnie and i am vonnie quinn in new york. Apple shares reach highs, head of the companies anticipated next month in San Francisco. Last week, bloomberg was the first to report on several new features of the new iphone, including a facial recognition sensor to unlock the phone with your face. Today, we have a new scoop on how apple plans to change the way people use the next generation of the iphone. We have images of the new device, and are joined now from San Francisco with all of the details. What stands out, mark . Mark this will be one of the biggest year over your changes for the iphone since the original model was introduced in 2007, which just so happens to make this new phone the 10th Anniversary Version of the iphone. The biggest changes the iconic buttonat in you click you click for siri, getting home, cameras, where you can swipe up with your finger to get to the home screen. Many iphone users are used to the home button. Might the elimination to turn buyers . Deter buyers . Mark i am sure it will not deter many people, but they will complain about it like they did with the inone headphone removal jack 2017. Are they going to talk about this after the phone comes out . No. Im sure they will find it cool, i will have some videos apple ite some videos to show how works, and it is not that big of a deal. Vonnie will people embrace facial recognition . It is getting awfully personal at this point. Mark right. They liked at a security elements to every new feature. They have a team and said the company that focuses 100 on privacy and security and the implications of new features. This team has the capability to veto or change any future if it gols that the feature will past the privacy that people are willing to give up. I think that feature would not have made cut if it was a real concern. It will be really cool. It will be like an ambient Security System where the phone knows it is you, and if they understand it is you, it will unlock with the swipe of a thumb. Mightmike the details the details be slightly different when the phone is ultimately released . Mark of course. Apple has several Different Software designs and features, even in the few weeks leading up to those devices announcements device announcements. , this will be similar to what we are reporting and pretty spot on. What we are hearing is that this is the case. The 3d scanner will be there for unlocking the phone, the removal of the home button, but what you are seeing here is most likely what you will see. Mark reporting from San Francisco for bloomberg. In the next hour, with we have an interview with Berkshire Hathaway chairman and ceo warren buffett. You do not want to miss that. This is bloomberg. Live from bloomberg World Headquarters in new york and london, i am mark barton should mark barton. Alix and i and vonnie quinn. This is bloomberg markets. We are expecting a drawdown of harvey to Tropical Storm in houston should in houston. We are expecting a drawdown for the number of barrels last week. The actual drawdown was about 5. 3 Million Barrels which was much more than the previous week which was at about 3. 3 Million Barrels. This is an intraday chart on oil. There is some volatility here, but it will be weeks before we see the effects of Hurricane Harvey on the inventories. Relative to the gasoline inventories, it is much more important that the gasoline inventories which are more important to the Energy Market right now, we are seeing a bit of a bearish trend. Oil is trading lower. We are looking at a small build of about 35,000 barrels. A bit of relief for those paying at the pump. We will see a shortage due to refineries ares offline in texas. The price of oil going to be down about 6 10 of 1 . Lets look at a chart which could show the effect of Hurricane Harvey on the inventory in weeks to come. Ite, we have the price of motor oil. In orange, we have been moving average of gasoline inventories. As you can see, the gasoline has been going down. More portly, we are seeing it flattening. Michael bloomberg saying this is the market trying to rebalance. In fact, Hurricane Harvey could take these and the tories down. In the near torn, could take these inventories down. In the near term, it could play out quite interestingly in the u. S. Alix some interesting numbers. Abigail, it should get even more interesting next week. That was abigail doolittle. Staying with oil now, Tropical Storm harvey is making landfall once again in the heart of the gas industries. Is the bloomberg editor for energy and commodities. This just seems to begetting getting worse and worse every few hours. We are in the rear transition now. The worst seems to have passed in houston. Is out innally houston which is some good news for that city at least. It is never good news when your refineries go down, but the refineries in Corpus Christi will start to come back. For now, it is like a rolling blackout on the gulf coast for oil refineries. Alix some companies have announced that they are trying to get those refineries back on track. What we are seeing in Corpus Christie is best in Corpus Christi is encouraging. We will have to see what happens with the gulf coast near the texaslouisiana border. We are seeing a huge influx of saltwater which will not be great for those refineries and could cause extended outages. Right now, the forecast does look a little bit better than it did a few days ago. These facilities are typically hardened for some sort of storm should of storm. Mark what are the assets we should be watching closely . I think you want to watch closely what is going on with the pipelines including the Colonial Pipeline which is a conduit from the gulf to the northeast. After katrina, there was effort to make sure that the power the pipeline would have enough power to stay pumping so that stations in the northeast would not run out of supplies. First of all, we have to make sure the Colonial Pipeline has enough supply in it to carry the market. We also have to make sure it has enough compression along the lines to move things along. Fieldsould oil eventually shut down for weeks . That is one of the things we are where we are looking at. Definitely saw some effects in south texas near san antonio. The mostt see this in exciting place for Oil Producers to be right now, but it looks like it will have limited effects. We have seen pipelines which have suffered major damage in interim houston which is one of the major arteries for moving oil around before getting to market. So, we need to make sure that these refineries can come back and that they are not total losses. Monitor each you can type in hurr monitor theberg to refineries coming back online. We do not just refined u. S. Oil, that we also refine Saudi Arabian refine Saudi Arabian and other countrys oil. What is happening now is that we, for a long time, have kind of been the refiner for the world. So, we have seen a lot of our product moved into south america and mexico. Now, it is going to be a little more of our former customer being our competitor for europe. Vonnie tina davis, you are doing fantastic work. Thank you. Lets check in now on the first word news with emma chandra. Emma harvey is now louisianas problem should the store made landfall in the southwest portion of the state today. It will be continuing to move north. About 18 people have died in more than 13,000 had to be rescued. Floodwaters are still rising in parts of southeast texas. President trump pitches tax reform. If the bill passes, it may benefit high earners the most. He will go to missouri today to push tax cuts for the middle class and small business. Still, it is congress who will actually write the legislation. Kim jongun ones that the latest Missile Launch might just be the start. He says that the test of the missile over japan was a prelude to containing the u. S. Territory of long. Of guam. He says he is waiting to see the u. S. Reaction. In japan, the Prime Minister may want to persuade the worlds thirdlargest economy to advocate a trade do with the u. K. Frommay be due to doubt the japanese on how theresa may is handling brexit. Global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries. I am emma chandra. Vonnie thank you. Why the tax preparation powerhouse is falling. More on that coming up next. This is bloomberg. Mark live from london, i am mark barton. Vonnie live from new york, i am vonnie quinn. This is bloomberg markets. Are saying that expectations for h r block are high with 27 this year. Joining us now with more is taylor riggs. Why the move . Liner earnings were in with estimates, so some are concerned about the drop this morning. Mark palmer said that there was a lot to consider with the runup of about 27 this year. It is really reflecting some of the full devaluations. At a peook at it valuation basis, it really does affect the full valuation hear from investors. Company ist the going to continue to build on the competition that they have had and continue to grow. They are also facing some competition from turbotax. Some of that competition starting to come in. This is a pretty seasonal business. Most of their revenue comes in soing the 2018 tax season, this is a little cyclical here. On the tax reform news, it certainly is a little soft. Looking at percent of revenue, you can see just how much of that revenue does, from their tax operation of services. Rom their taxf operation tax preparation services. Vonnie what about their competitors . I would think they are all in the same camp as far as some sort of tax reform. There will always be some sort of used for these tax operation services. In the case of this stock, management did not comment so much yet on the 2018 tax season. Instead, they did say there could be some pressure as trump signals that tax code. If you look, we have a chart indicating the correlation with the tax code and stock. Well done for making that happen. Wow. That is a stunning number. There is your bedtime reading. Time for the Bloomberg Business flash. Answeringd gamble are customer requests for more productive closure. They plan to list the ingredients in everything. The move is in response to customer requests, and they have said they have look at the information. Thet and centralbank Russian Central Bank is tried to keep the crisis from spreading. Just a month ago, they build out the countrys largest lender. Economic confidence in the eurozone has risen to its highest level in a decade. That is according to a european consumer sentiment. Next week, policymakers will decide whether or not to pare back the monetary stimulus. That is your Bloomberg Business flash. President trump says that talking is not the answer when it comes to conversations with north korea. Stephen engle has more from tokyo. Japanese Prime Minister shinzo abe has been in business busy man after that north korean test Missile Launch over hokkaido. He has been having meetings with several World Leaders as well as welcoming theresa may on her visit to japan. All leaders agreed with abe that more pressure needs to be applied to north korea to end these threats. Any see china as having a key role in pressuring north korea. The Un Security Council also seeing it is strongly also saying that it strongly condemns the Missile Launch and they are calling on pyongyang again to end their Nuclear Ballistic missile program. Kim jongun is not backing down. Instead, he said the latest test was a meaningful prelude to containing the u. S. Territory of guam. The Chinese Foreign minister did say that beijing is working with the u. S. The u. N. Security council to contain the threat, but they do not favor unilateral sanctions on north korea. Have the sanctions could an impact on china. With more on china, we have alexander wolfe. Think you for joining us. How do you solve the problem called north korea . Good question. Unfortunately, i do not have the answer. It seems that current policy is not the solution. It is clear that what has been done so far not just with the Current Administration but the past couple of decades has not worked. It is clear that a military solution is also probably not the answer. Though, we could see some form of more sanctions coupled with diplomacy. Has not quite shown in appetite for further unilateral sanctions, what it has not seemed a enough but it has not seemed enough to deter kim jonguns behavior. Instead, you need broader sanctions which could affect chinese banks. Theres just not a clearcut solution. It is a problem numerous administrations have had to deal with. Lets talk about pmi data released in the next 24 hours or so. What will it tell us about the health of the chinese economy . It will probably tell us what we have seen so far this year which is that the economy is chugging along. It is certainly above most economists expectations. Even though they have the approaching party congress, they have been remarkably above favor. We have expectations growing rapidly. We are seeing stable demand in Corporate Cash flow in china. Some in thectuate summertime, but it will only be a little bit. Seene alexander, we have them a strengthened dramatically against the dollar partially due to dollar weakness. Offshore and9 now onshore. What does that do to chinese imports and exports as well as trade . Traditionally, there has not been a very strong relationship between revenue strength and relation relative to export in china. Market china has a large share and economy to scale on the economies on what they export. I think it is somewhat surprising that they have exported as much as they have. I think part of it is politics and trying to defend their claims of being a currency manipulator. Whether it will have that large of an impact remains to be seen from an export perspective. Vonnie will this end in some sort of intervention . Shifted,policy has maybe even just over the past couple of months, they would try to point it is stable against the dollar, but recently they have shown an appetite to let it appreciate against the dollar. If they get uncomfortable, they could revert back to following the dollar down. So, they could weaken more claimingn trade while that their policy is stable. So, i think they shift backandforth on what their priorities are and trying to shift attention in where they are maintaining stability. Mark this is a great chart showing us the four nonperforming biggest banks which all for Beat Estimates of net income when they released earnings. Was the crackdown on shadow financing. How is that process going . I think it has progressed well. They have been able to make clear progress in terms of regulatory tightening being put in place and reducing some of the systemic risks without having a Significant Impact on growth. Withurse, there is a lag credit tightening. Early next year, we could see a lag from the tightening, they have moved more of the lending to the banks which has been in the favor of the big four banks. Part of that is just better Corporate Cash flows. They are trying to do is reduce that web, because it has become so fragmented that, in the event of a Liquidity Risk in the system, it is harder to react than if it weres more concentrated to the than fif it was more concentrated in the banking system. Mark alexander, the q for joining us. Thank you for joining us. Be sure to stop by the you are in town. Bynie be sure to stop the next time you are in town. Vonnie a new diesel version of its highend suv. This is bloomberg. York andive from new london, i am vonnie quinn. Mark and i am mark barton. This is bloomberg markets. Met miller was at the horse event in stuttgart germany. Of her bloom all about the future of diesel. Diesel has a big important in europe. Are all very good for the automotive industry. Unfortunately, it is not so important worldwide. Porsche does not develop or produce diesel engines, and therefore the car is designed with a different engine. The base model will come out with the gasoline model, the v6, and then you will have the electric model with the more artful v6. A move towardsee more hybrid alternative power trends . We have a lot of options we will follow. We see engines with richard 40 you withand then 300 and then you can take about with 340 horsepower, and then you can think about the hybrid integration range. You do have diesel engines still being sold in the mcconnell which is a very in an which is a very successful car in germany. Is diesel spill an important part of the german auto industrys goals . Of course it is. For the whole automotive industry, it is very important. It is less important for porsche, because we are more in the future of electric car design. Mark that was all of her bloom speaking with matt miller all of her bloom speaking with matt that was oliver bloom speaking with matt miller little bit earlier today. Coming up, you will not want to miss the european close. We are following stocks. They are rebounding from a fourmonth low yesterday. Check out the currency board. The euro still below 120 against the dollar. The close is next. This is bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Mark 30 minutes left in the trading day today. In london, i am mark barton. Vonnie in new york, i am vonnie quinn. This is the european close on bloomberg markets. Mark here are the top stories we are covering from the bloomberg and around the world. Tropical storm harvey strikes again along the eastern border of texaslouisiana. We could see some massive rainfall tying into its u. S. Economy going forward. Ecb get set to review policy next week. There are concerns about overshooting euro. How vulnerable is it to a correction . Meanwhile in the u. S. , the dollar is gaining. Aning in moments, we have interview with warren buffett. We will talk about his latest investments and his annual Charity Lunch in manhattan