Earlier down about 0. 1 . Not so long ago down 0. 4 percent and perhaps of the continuation of yesterday selloff and loss of uncertainty to deal with and the headline that vicechairman of the Federal Reserve resigning and looking at that on the market in a moment. In terms of the underperforming relative to the nasdaq and it has the higher momentum stop that react more so on a risk offer and today is not really risk off but you would think so. Look at apple down after yesterdays 1 decline. Investors taking profits on one of this years top stocks and expedia is lower by 3 after , loadedvo trivago their full year profit. Nonetheless, one of the big drags and tesla is down more than 1 after nissan has released its first refurbished electric vehicle and seven years saying they will double cells and giving tesla a bit of a decline. An intraday chart and we are going to see the trend is down. This is about a 7 range and not too big. When the announcement came that Stanley Fischer is resigning, we saw a tiny, tiny 2 point drop and investors are dealing with a lot of factors, the geopolitical tensions and d. C. , Stanley Fischer is one more. Where was a decent reaction to the announcement that Stanley Fischer is resigning, the bloomberg dollar index. We are going to see the dollar index is down on the day about 0. 3 and the first leg lower since the number of missed ever so slightly and a number lower on Stanley Fischer resigning. Investors, machines do not like a vacuum and thats the reason we are seeing the selling. To the point of the dollar going 5536 andk at the tv this is the story of the year. The bloomberg dollar index in a blue down on the year. The dollar index having the 5536 year since 2003, britain in white, the net position a speculative investors above the yellow line. Here we see the vet of the bloomberg dollar index, the net short at the lowest level in quite some time weighing on the index. Todays decline is on the trend we have been seeing. Julie very bearish sentiment. Mentionedncy at abaco , vicechairman Stanley Fischer is resigning effective mid october and the move could give President Trump momentum to reshape the bank. Botheene and Michael Mckee with me now to discuss this change for abigail mentioned the drop we saw in the u. S. Dollar. What are the takeaways from this in terms of what it could mean for policy . Michael in the short term, not a whole lot because the fed was not expected to make any changes until at least december and that does not play into it. Probably plays into september they will probably wind it down the Balance Sheet to get it out of the way and get it going. And he departs in october. In a december, probably still about the data and janet yellen drives what they are doing and she is indicated she like to get one more rate increase and. It may not change significantly. If Stanley Fischer leaves and Randy Quarles is not confirmed yet to be said board by then, how much credibility does the fed that what to raise rates have with wall street . And a minority view they are raising rates. That might cause a bit of friction. In the longer run, it could have a longer impact because he has been a more hawkish fourth and gives donald trump a chance to add somebody more dovish. The positioning of the person who replaces stan fischer, but also the chops, for lack of a better word, of the person. You have gary cohn as a potential front runner as a chair but what of the complains if he does not have an economic academic background. Does this increase pressure to find a person to fit that profile . Tom nothing sophisticated about it and janet yellen has academic chops as we see from vicechairman Stanley Fischer and they have a different set of history and generation and front rate economists they even the most conservative type would agree with. What i would suggest is it is a changing, he is 73. Again, it cannot be repeated enough, a phd advisor for draghi , theres a meeting in frankfurt and a guy named bernanke. He has been incredibly vital for a long time. It is a real significant generational moment. Michael it is but most of the people who come to the fed has been around for a while. It may make it harder to appoint somebody not an economist because you do not have that person to steer them through the first months of the administration and a Stanley Fischer probably would have left in june. One more thing of the monetary side we should note, he was vice chairman of the board of governors and not vice chair of the open market committee, that is a separate job and by rule, it goes to the new york fed affectnt and does not the actual monetary process. Julie i see you have a chart. Tom can you pull it up . Julie i am sure you can. Tom in the middle is paul volcker and the years of skyhigh inflation and Michael Mckee, the 10 year yield and the great moderation down to the lower right corner which is the volatility we have seen. The generational scope of stan fischer and others has been exceptional success in definitely the inflation of another time and place. The fed has this rather steep job to do as they always do to figure out a rather to raise rates in december or Going Forward and maybe a little too touchyfeely. Tom why are you looking at me . [laughter] julie how much more difficult is it when you are getting new people, a new dynamic to figure out the personalities . Yes, you can have all the background but you have to figure out how to make Big Decisions with your coworkers. Michael vick maybe only one more michael maybe only one more member. You can that what he is confirmed, janet yellen will be reaching out on regular basis and a chatting about his beliefs and trying to steer him and the direction she wants to go. The Bank President s are all pretty much set in their ways and views. It is really an open call and a december and maybe this makes it harder to get through but will depend on the data and what janet yellen thinks should be done. Julie ok. We believe it there. Tom keene and Michael Mckee. Thanks so much. Check of first word news. Mark crumpton has more. Mark planning for the worse in florida which could line of the path of the most powerful storm to form in the atlantic ocean. Hurricane irma hasnt made landfall in the caribbean with winds up to 185 Miles Per Hour and some models project it could hit florida this weekend. This has the potential for significant storm surge and we did not have that in andrew. Last year, it happened in an area where there were citizens but not like in a major area. We have a 10 foot storm surge. That there are projections it could cause more damage is than hurricane katrina, the costliest Natural Disaster in u. S. History. Is advisingayor visitors to cut short their vacations and leave. U. K. Prime minister is calling on employers to train more british workers to fill vacancies after brexit and she said a low skilled immigration has her to british wages and she promised to control the number of people coming in after the uks leaves of the European Union in 2019. Investigatorsted said serena president bush are on the sides air force un mandated investigators said srena president Assad Air Force carried out a sarin attack. These are among the strongest allegations. Officials have denied responsibility. Global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries, i am mark barton mark crumpton. This is bloomberg. Julie the house has started voting on the aid package for Hurricane Harvey relief. 8. 5 billion aid package and the voting is beginning and we will keep you posted on the tally to let you know if it passes and that should help have an end coming our or hours. We will go to houston for the latest on Hurricane Harvey response from business and community leaders. This is bloomberg. Julie this is Bloomberg Markets and i am julie hyman. As washington gears up for a let us harvey funding, go to houston were jason kelly is standing by with more on the efforts. Jason . They arere in houston, very much watching what is happening in washington and i am joined by bob harvey, the ceo of the Greater Washington dutch Houston Partnership that worked with ceos all around houston and he has been a huge part of this recovery. What to do you point to of the key element from a business perspective and the Immediate Response . Bob harvey they have been impacted heart hard. The first Thing Companies are doing is giving those employees time over off to deal with their issues and the other anders volunteering to help help others. Companies have been generous financially unlike any storm with seen. We have raised almost 50 mother dollars in the houston area from corporate givers. 50 million in the houston area from corporate givers. Jason kelly what was different about this storm . Bob harvey the scale of this print 52 inches of rain and we it affected the entire region and will you think about 10 of employees, we have a 3 million a payroll and taxes and as a Large Population of about 150,000 homes impacted. I think the scale got everybodys attention at it impacted all communities, high income, low income, all ethnic groups, uniformity of impact we have not seen before. Jason kelly when you think about the 10 and you said 90 of the city is back to work in a lot of ways and we see evidence right behind us in downtown houston, what will it take for the last 10 , what is the timeline . Bob harvey days for some and months for some. We have seen other communities how long the rebuilding effort takes. For the most part, we are taking out sheet rock and getting more sure out of the homes but months before we did a homes rebuilt. It will be a huge labor issue as we bring the workforce to their. Long recovery and does not count of the infrastructure, the buildings and facilities around the town that will take months and he years to build. Jason kelly lack of to about the workforce because a city requires a different type of worker and a scale of workforce and how do you see that evolving . Bob harvey we have had a shortage of what people refer to as skilled workers, other skilled trades. We have been addressing it. We will have a pressing need and opportunities for people to gain construction skills that we would hope they would use more permanently and the heavy construction and commercial construction. We will be involved and get a Community College is involved in getting the word out of how you get these positions. Jason kelly do you feel like the workers are here or people from other parts of texas and the country . Bob harvey they will come in. There is an influx of labor construction per there will be great for the poorly employed or unemployed for them to get jobs. We needed an influx of that kind of labor. When you think about industrial mix, the sector mix, oil and gas as a primary and bestknown, but you of the Medical Center and real estate, do you see that makes changing over the comment mix changing . Not really. We are becoming a more diversified economy. We have weathered the oil better than in the past. We get more of the start of. It is still energy, health care, manufacturing, trade and logistics are the things of the drive a houston economy and i do not see it changing. The Medical Center was not hit hard. The first major flood that reflects the improvements made under Tropical Storm allison. We have over 100,000 workers in the medical industry across of the community and that group is largely back to work. Jason kelly when you think light regulation, do thing that changes, do the regulations change in how does this is respond . Bob Harvey Houston is always been high growth and over 850,000 for our population and we will not cease to be that. We are a business friendly city and that is why business, here. We always look at our standards and that is not always appreciated. That will continue to happen with the fact we do not have the water absorption capacity will be looked at. With 52 inches of rain, none of that matters. When we look at it will rain, those standards will continue to evolve but not in a way that will inhibit the growth of the city. Jason kelly bob harvey, greater Houston Partnership ceo, thank you for a pretty nice day in houston. Julie, back to you. Julie jason kelly and bob harvey with him, greater Houston Partnership ceo. U. S. Stocks largely shrugging off Hurricane Irma approaching as a global threat. Our next guest express how to find or sustainable growth. From new york, this is bloomberg. Julie we have news the house does have the votes to pass the harvey aid package, more than 7 billion package and the vote continues and it seems to have the vote to pass. This is one of potential agenda item that is going through here in washington, one of less thing for congress to consider and we will keep you posted and at the details and bring you an update and a little bit. We have to get that to the markets which is stabilizing tour the Hurricane Irma through the caribbean and a key member of the fed announced he would be resigning. They do not messily matter to our next guest and he said chasing trends could hurt. Christopher brightman provides Investment Strategy for assets. Thank you for coming in. You are talking about enacting a strategy and sticking with it and not looking at these various, daily, monthly, even annual events. What is the appeal of doing that . Christopher brightman theres a considerable amount of research ands what other academics practitioners that help us understand the predictability or lack thereof of returns and securities market, price changes. If one were to trade over the short run, perhaps the most useful signal is short rise in momentum and the stocks going up versus the rest of the market with a past few weeks and a little more likely to continue. O go up the next few months but then, after a year, we have a powerful mean reversion is outperforming, it is likely to underperform in the future and the same for Investment Strategies as well. Whether smart etf or actively managed mutual funds, the strategies outperforming over the last two or three years or four or five tended to be more likely to underperform in the future. The problem is we have people, momentum chasing trends over periods of year where mean of version is more powerful than the trend and this is a systemic process of wealth destruction by many retail investors. Julie i was looking at one of funds andcross asset it has various weightings of other pimco funds and the biggest is emergingmarket currencies. That some of a human goes in and say we will wait it in a particular way for a strategy you are going by that determines if the waist . Weight . Chris brightman it is primarily model driven and we like to use a process at that ensures we do the right thing even when uncomfortable and we started adding substantial amount of assets to emerging markets stocks, bonds and currencies as they were extraordinarily cheap over the last couple of years. It is the right thing to do but emotionally difficult. You read horrible press about russia. Theres political scandal and recession in brazil. Crackdowns in china. It is these sort of scary conditions that create the bargains that pay also handsomely if you have the discipline to be a contrarian investor and that model gives us at the discipline. Julie and also presumably if you have the time, what is the time horizon you are looking at . Chris brightman we try to operate the longer term than many other quantitative investors. Julie what does it mean . Multiyear, five to 10 year horizon. Very interesting to see the organization of the industry by time horizon in the split second, the highfrequency traders which are todays market makers. Then the people operating in hours and days and weeks and those are shortterm trading houses, great quantitative firms, but very, very competitive arms race. We are operating at the longer horizon in which we think is more appropriate to a large Institutional Investor and most retail as well. This if i am looking at weighting toward bonds and other types of instruments, what is attractive . What in your models have pointed you to emerging markets . Chris brightman we have three factors pointing to outstanding returns for emerging markets assets was the equities, the bonds or just the currencies. One is valuation. They are cheap. If we look to the yells, the real Interest Rates are much higher in these countries. The equities are priced, schiller pe is less than half the price of multiple of u. S. Stocks. Second, there is positive economic momentum. You will notice the long, deep recession in brazil has come to an end. Producedure on, duties on, oddities producers, we have seen the bottom of the price of oil. The third factor is price momentum. Over the very short run, price momentum is your friend. It has turned. Where two years ago, you could say yes, ok, yes, very cheap, what is the catalyst, when is it going to turn . It is hard to figure out ahead of time but not hard to sell the chart that the prices have turned and emergingmarket currencies are appreciating and outperforming u. S. Equities or over the last year or so. Those are the three things we see. Cheap assets, improving economic fundamental and positive pricing. Julie chris, we have to leave it there down. Thank you. Chris brightman, cio for research affiliates. Some more insight on what is happening in washington from Kevin Cirilli. He is at the white house. And our National Political reporter on capitol hill as that this vote on going on at this harvey aid package. Kevin, what are we learning now about the numbers of this vote in what is it going to be doing . Kevin the vote is expected to pass in what will the senate to do . Will they try to lock lump the funding to the debt limit . That is where this is look like it is going to be heading. Behind me outside the white house, marine one taking off where thenorth dakota president will deliver remarks presumably on tax reform but we could get aggressive rhetoric on his side of things and whether or not lawmakers should of has the debt limit with harvey funding. The freedom caucus, the ultraconservatives, they want this a vote separate. Just to back up, the vote happening now is effort, right . The harvey aid package exists on its own and was at the senate will reconcile the 2 . Durant yes, leave it to washington to overcomplicate things. What exactly this means. Kevin yes, leave it to washington overcomplicated things for the senate is having conversations about tying the 2 together and there could be some fighting between republicans when they tried to advance this on word. I have spoken with Financial Services in washington and they anticipate for lawmakers to eventually kick the can down the road and they are good at kicking and leaving this to a larger debate and a. Julie Kevin Cirilli, thank you, appreciate it for the update on that harvey aid relief package. Florida governor rick scott is giving a Hurricane Irma update on what residents of his state should do. I assume we have had life. Senator marco rubio is speaking giving that of data here. The latest from the National Hurricane center as of the earth indeed, Hurricane Irma is headed for the state of florida Hurricane Center is it that Hurricane Irma is headed for the sake of florida. We will get more and the winds are hitting as high as 185 Miles Per Hour and a category five hasnt the potential to become the most expensive than as has the potential to become the most for how the storm could impact the economy, lets bring an Michael Mckee, his day has been a busy one. Mike, already this is the strongest storm ever to form in the atlantic, is that correct . Outside of the caribbean. When you say 185 Miles Per Hour, those are maximum sustained winds. Scale, a category five is 157 and higher. Ifuld say this is there were a category six or 7 would easily fit that right now. Julie plenum we look at what happened with Hurricane Harvey, there was damage from that. Most of that was not from the storm itself but rather from the flooding that resulted from the storm. When you are talking about Hurricane Irma, what kind of damage are we talking about . Miami already, floods on a semi regular basis. You are talking about both. If a hurricane were to make a direct hit, the results could be catastrophic. I have seen a survey by insurance people up to 300 billion in damage. That would be destructive and tear down houses, hurricane andrew in 1992, hundred 65,000 houses destroyed. What hundred 65,000 houses destroyed. All of that water would come across the peninsula. At the same time, you would have rains, 13 to 15 inches in the day that it hits are forecasted. You have a triple grammy whammy that would do enormous amounts of damage. The one thing we are keeping an eye on is the track of the story. You go into the bloomberg, hurricane go, it shows us the latest track as of 11 00 this morning has it hitting miami and then sort of going up the coast and out into open waters. That is bad news for miami. A little better for the rest of florida. Unfortunately, you see that wide cone. They are four days away from when it is supposed to hit the average error in the track. A major difference. It could wobble back to the west. The hope is maybe it wobbles further to the east. Julie there are questions about the strength of when it hits as well. There is the predictability or lack thereof of that. What about not just for the local economy, but for broader gdp growth, as we mentioned, we the effect ofe hurricane gdp. Mike houston is the fourth largest city, obviously there is going to be a lot of Economic Activity disrupted. There is going to be a lot of activity that pours into the area as people rebuild. What we have seen in the past is in the national gdp figures, we have not had backtoback hurricanes like this. It could be a real hit to the economy that takes longer to recovery to recover. It could have an impact in the fourth quarter. It could make a difference we were talking about what the fed does in december, it could have and what on washington happens there because if we had to have 400 or 500 billion in hurricane relief, that is an enormous amount for washington. There is a lot financially writing on this storm where it hits and how much damage it does. Julie that is a scary picture of irma heading toward the caribbean islands. Thank you so much, Michael Mckee, our International Economic and policy correspondent for bloomberg news. Continuing with Hurricane Irma, autonation, the biggest Car Dealer Group of the u. S. Is starting to prepare for the categories dorm storm. Lets bring in jamie butters, he covers the Auto Industry for bloomberg in detroit. Doublely if this is a whammy, autonation among them. What is the company doing . Car dealers have such high big ticket inventory. Autonation is so focused across everything, they catch every Hurricane Season heavily. It is a big deal for them. They have a big plan, they try to work on it every year, a go through a storm, try to out manage it as best they can, go back to what worked and what did not. They are meeting twice a day to keep track on it. And decide when you need to pull the trigger on executing the storm is your plan. Julie hang on one second, we do now have the headlines of the house has passed the bill to fund that first crunch of hurricane aid Hurricane Harvey aid. This first assistance package is 7. 8 5 billion. This is the first crunch. Remember, as kevins really was telling us Kevin Cirilli was telling us, it there is a question of whether it will be linked to the debt ceiling. We are going to continue to monitor those developments. Back to the corporate side of the story. You said they are having meeting several times a day. People in florida are paring as well, they are going to buy their proverbial bread and toilet paper. On a corporate level, as you say, what do they do . Do they shut down, do they provide assistance for their employees . Jamie i talked with autonation, and what they really try to do is they get a big team, 50 people to houston before harvey hit, and they try to make sure they have everybodys Contact Information up to date. Their cell phone, there a mail addresses, they use an app contactinger for everyone in their group. They try to make sure they know how to reach everybody so they can make sure they are safe and have a place to live. After the storm is over, they want to get their stores cleaned up and let everyone who needs to replace their vehicle no to come down and get a new one. Julie jamie butters, we will see what happens there. Thank you so much. Jamie butters is bloombergs auto reporter. Lets get to bloombergs first word news with mark crumpton. Mark thank you. More on Hurricane Irma, the state departments warning american citizens to reconsider travel to cuba, haiti, or the until therepublic expected impact of the storm. Officials born in the category could five hurricane bring flooding, flash flooding, mudslides, and storm surges. The department is authorizing a voluntary departure of u. S. Government employees and their family members from the three countries due to the hurricane. House Speaker Paul Ryan backs President Trumps plan to give congress six months to come up with a solution to the socalled dreamers. Trump was right in his decision. He made the right call. I am encouraged by the fact that he gave us time to work out a consensus. To find a compromise. Because these kids, for the most part, do not know any other home and then the United States. I think the president was right to give us the time we need to find that compromise. Mark President Trump announced yesterday that he was resending the program that prevented the deportation of young people brought illegally to the United States. He says the matter is now up to congress. The president is speaking with World Leaders about north koreas latest test. The white house released details of calls with theresa may and australian prime minister. President trump stressed that all options remain open to defend the United States and its allies. The white house says mr. Trump and mr. Turnbull could confirmed confirmed that their two countries will intensify efforts to denuclearize north korea. President trump is scheduled to speak today with chinas resident. President. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Julie . Thanks so much, mark. We do have pictures of marine one which is landing at angers airport space. President trump will be boarding air force one to head to north dakota where he will be giving a speech about tax reform. On air force one with him will not only be republican from north korea from north dakota, but the congresswoman from that state. Heidi heitkamp. As the president tries to lobby over towin moderates his cause on tax reform. We will beginning you updates as he had said. And has he makes that speech. Coming up next, refiners are looking toward recovery after Hurricane Harvey. We are going to hear from our interview with Pioneer Natural Resources ceo tim death. That is next. From new york, this is bloomberg. Julie President Trump walking to air force one through a rainy angers airport space from marine one to head to north dakota to give that speech on tax reform that we were discussing. President trump boarding a plane. He will be writing with members of congress from north dakota, both republican and democrat as he makes his case here. As we await details of that tax reform plan, you see the president going onto the plane en route to north dakota. Are working to restore operations after Hurricane Harvey torrent through the gulf of mexico. Oils rising to a threeweek high as markets turn their focus to Hurricane Irma. Fastforward, it is that the top of the agenda. Dove aboutasked tim the impact on his company. Prayerse first say our go out to the people who are affected by this. Dear to ournd hearts. We have people who lost their homes as well. That is a major priority to take care of people. When you look at the company and its impact, we shut in all our wells and shale just as a precautionary measure for our employees. Now we are back on full production. In terms of the downstream thoses, the issues of liquids are fractionated. We are have had to shut a few wells here and there. Those are relatively small impacts as of today. Hopefully as things continue to improve, the overall impact the company and the industry. Are you worried about cruising getting back to work . Does this in masturbate it . Tim dove we use most of our own employees. We are pumping those wells. We feel like we are in good shape in terms of people. I think there is a bigger and thing for the industry as in terms of rebuilding. How youre going to get people to work in those arenas versus those were working elsewhere. To you think there is going to be a labor battle between the rebuilding and oil and gas . Tim dove certainly a could happen. We are short of people, especially experienced people. What does it mean for your space . Tim dove if labor costs go up, it affects us all. The poll on people and how much more we are paying to keep them in the oil patch. I would expect to have inflationary. , cheap can you sustain based on your efficiencies how much can you sustain a stun your efficiencies . Tim dove we are not inflect affected by inflation very much. We want to make sure our employees are complemented compensated fairly for their work. Our total cost to put these it ison production is highly economic. Lets move onto your quarter. Great insight in terms of the effect that the hurricane has. For your quarter, the headlines were that pioneers differing you had driller delays, you still expect to increase production by 16 . How . Tim dove we have a Drilling Campaign with 18 rigs running today. We are still going to be putting 230 wells on production this year. 30 wells we differ from december into january and february. As a result of this activity, we have a Significant Growth rate. We have a 10 year plan out there. It is growing 15 plus of for many years. We continue to have that as the basis of our go forward plan. If you are drilling wells slower and is spending more money, how do you keep your target . Tim dove a lot of wells are waiting to be put on production. It is a matter of timing. Add rigs, we we are going to enhance our growth rate from there. Can you continue with your longterm cash flow . Tim dove it would be Free Cash Flow neutral as of next year. If we are in a 50 case, that is more like 2020. One of our goals is to become cash flow neutral. The cash flow generator, as we go through the plan. Part of the issue is that your guests to oil ratio, you have got more natural gas and oil. Your oil does not fall. The natural Gas Production rose. The concern is that your Oil Production might end up falling. Can you relate those concerns . Tim dove if you look at the history of our drilling, we have drilled 7000 wells over many decades. The data shows that the Oil Production is spot on, even today, all those wells produce over 60 oil. The data is clear. Oil production is easy to estimate Going Forward. Is that the seen gas comes out faster. That leads to an increase in the ratio of gas to oil produced or this is a good thing because we saw we sell the gas. An increase in revenue earlier than we thought. It does not affect a longterm oil curves. Some might say that other companies have the same issue and they have been able to mitigate it better and a technology of pioneer is not the best it could be coming even though your assets are. What do you say to that . Tim dove this is a matter of physics and chemistry. You have these Melydia Clewell molecules in the reservoir, when you reduce the pressure in acrosservoir, this is the pace. It is a very common known fact about how oil is produced. All we are doing is seeing it come early. Nevertheless, with that and all your well deferrals, have you learned anything about drilling that makes you rethink the zones where you drill, how much sand you use, how you structure your operations . Tim dove we are pushing the envelope in terms of how big the completions we have pumped that these wells. We are at our 3. 0 plus which features more water and sand, and therefore we have shown more productivity. That is very important. The second thing i would comment on his we are using different casing designs to solve the drilling related problems. We have drilled 6 drilled 55 wells this year. That is working beautifully. We pretty much have issues behind us. Moving on, lets talk about hedging. When oil prices ran up, did you take a advantage of that . Tim dove we have been hedging pretty substantially. We are at a point where we are 70 hedged on oil. That is a threeway structure that protects us at 50 and below. Also a gives us an upside of 55. Thes important to provide upside to get to 55. We are very well protected now. Even more so, we will do it more toward 85 as we get as we add over the next few wait a few weeks. Be doing it as we get closer to that time frame. The real question is 2019 pricing is a long way away, we do not know what to say. We can say we feel like this head structure is going to work for us, but it will take a look it will take time. Like the Trump Administration is for filling the oil and gas industry . Tim dove we have seen a rollback in some of these more environmental requirements. We are a company that is not focused on environment on measures, we are. Stringente more administrative requirements, that is a positive change. You see pipelines being approved faster which is a good thing. Reasons tolot of believe the administration is on point to say the United States powerhouse and energy can be enhanced by some of their actions. Julie pioneer Natural Resource ceo tim dove on bloomberg television. We have got headlines crossing from a conference being held by the german newspaper. Atdman sachs ceo is speaking that President Trumps first few months could have gotten gone better. Says theyf europe, he should consider making labor laws less rigid. Comments oneresting Goldman Sachs and government. He says Goldman Sachs alumni and government do not look back. Typically, he talks about gary cohn. He said gary if gary cohn got the fed chair job, he would do very well. Has an that cohn unmatched view on how policy impacts the market. Interesting comment to make. The feds job is not explicitly there is talk that they do keep a close eye on what happens on the market as a result of policy decision. Easy you see him speaking at that conference at germany. We will keep an eye on it and bring you headlines that come from it. Earlier, john cryan spoke at the same conference and he made headlines as well speaking among other things, he called for an end to the era of cheap money in europe. Interesting commentary there. In another type of Financial Express iserican targeting millennials with its credit card. It is the blue Delta Skymiles card. It is out this week. It will have no annual fee. It will offered to bank miles two mileswill offer per dollar. And delta targeting millennials . They are saying they are looking for folks knew her to travel. A deviation from their existing portfolio which is targeted toward those heavy travelers, people who travel thing julie premium customers. Exactly. They say dont forget about them, but we are also looking to get in with of these younger customers were not traveling much now with an eye toward and they do travel later, they can upgrade them to products. Julie in theory, anyone can get the card. It does not have to be a millennial. Jenny that is what they say. Thee amex recovering from loss of that partnership with cosco, which was a blow. Does this signify a shift in direction to make up for that loss . They lost cosco, they have been tinkering with a lot of different offers. Eye have and i toward toward building up their cards. A very important partnership. Obviously, they would one to keep them happy. And also generate those loss and loans that they lost with cosco. Julie it is important not just for amex but delta as well. Delta expects the partnership to yield 4 billion in revenue per year by 2021. How does that revenue structure work and why are these deals important to the airlines . Interesting, for a lot of airlines their Loyalty Programs generate more than half of their profits. These are important to the airline. Focus is now on ensuring they have this longterm profitability. That is probably why youre seeing them turn to millennials. Delta and amex were out with their cards. Theyd and chase announced will be doing a card as well. We are seeing them dig deep and looking for these makes and crannies with a might not have nooks and crannies. Julie they are betting that the millennial will not just search on google for the cheapest flight, but rather use their miles, go to the brand that they are now most familiar with. Jenny exactly. A lot of millennials today, they dont have a lot of loyalty to one airline. They love kayak and priceline and all the other comparison websites. The airlines see this and they say, how do we combat it . And they say, lets give them this note fee card no fee card. Julie jenny, thank you so much. Still ahead, we are going to talk to terry haines about the president s push for tax reform. From new york, this is bloomberg. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. Julia we have got breaking news crossing the bloomberg app. A statement from House Democratic leader nancy pelosi, also check schumer, they are saying the democrats and President Trump have agreed a harvey aid debt limit extension and a continuing resolution through december 15. All of the issues that Mitch Mcconnell laid out same the iternment needed to achieve, looks as though this same and we have got from Chuck Schumer and have preempted the governments statement on this. We are waiting for the government to announce something. So far, this is what we are seeing. Herejoined by megan murphy , and Michael Mckee. Just a quick comment on this, if this is true, a lot of work but we are anticipating being achieved done in one go. Were is a lot of talk had nancy pelosi speaking this morning, talking about this, talking about coming up with a unified solution. We also had paul ryan, the speaker of the house saying he did not think the democrats proposal to do