Typically have over the past several months after the north Korea Foreign minister says that President Trumps comments over the weekends have amounted to a declaration of war. The dow and the s p have recovered to some degree, although they are still down one third of 1 . We are seeing a selloff in Technology Stocks today. Microsoft,etflix, all taking a steep hit today. Its an interesting disconnect we are seeing here. Atr a doll by heimer over oppenheimer, tough me about how this has been doing better. This looks postelection, we have seen this rally in the smallcap relative to the large cap. Getting done as the domestically Oriented Companies are seeing it potentially benefiting from that. Will continue to watch that trend as we get more details. Tenor seeing a risk off in the wake of those north korea comments. The yield reversing some recent games now. Recent gains now. It has been accelerating throughout the day. Still at historically suppressed levels. Oil is continuing its rally. The latest for Oil Prices Going as the kurdish independence referendum is seen as causing supply disruption. Nymex crude oil is up more than 20 . We are seeing Energy Stocks rally. You have the likes of helmerich and payne. Helmerich and payne within that group. The National Association of business economics meeting is underway in ohio. Correspondent Michael Mckee is there and joins us now with someone who is calling for a fed rate hike in december. Take it away. Much. Nk you very its a bit of a different call for you to be in line with the fed in terms of how many rate increases are due in the next few months. Much more sobering what the fed would do and what markets were expecting. We expected one hike in 2015 and one in 2016. We have been pretty adamant about three hikes next year. Yet thethe tail and fed was able to surprise us a little bit and the Company Materials that they might down there and marked down there inflation forecast. Really driving home that message the low inflation is disconnected from the economy. Staying on a gradual tightening path. Rate islly the fed choking off inflation. It. Yet we dont see tool rate at their value,n at face tightening conditions to slow and overheating economy. The fed the leaves if it were raising rates more aggressively, then it would be raising rates to slow and overheating economies. It is growing ahead of its potential. Paceintaining a gradual they are trying to not fit into that typical cycle we have seen in the past where they are raising rates weekly to keep the economy or to slow what is already an overheating economy. That is disconnected between policymakers and the market. Allowing them to continue with a gradual pace. You be the decider, when do we get 2 inflation . Itwe only forecast through through 2018. Policymakers are coming around to that realization. They keep reminding us that that 2 gold is symmetric. I think the band is going to obviously be constantly tested at the low end or below that 2 . Do they have the right policies in place to constantly encourage inflation pressures to build . And allowing financial recommendations to not fight against that too much. They are not going to get to their 2 gold. We are a conference of economists. A lot of exhaustion this impact tax cuts, they are going to be announced this week. See tax cuts affecting the economy growing between two and 3 right now with unemployment at 4. 1 . Growth doesnt boost does it boost growth . I think we will get a broad outline of what that tax policy will look like. Most economists hold the same view as chairman yellen. If you do that, just bald fiscal cycleus, this late in the , you can create that boom bust cycle where you punch the economy across the face. They are going to have to raise rates more quickly. The cycle is not going to last that long. Watchful ofre very what types of policies are included in this legislation. Will it permanently raise investment so the productivity rises and perhaps potential growth and equilibrium rates will rise . That the policy we look for late in the cycle. This is part of why am so excited to be at conferences like this. You do a capex indicator, you look at how much Business Investment is being made. Companies have been have record levels of cash. Interest rates are extremely low. They bring down the Corporate Tax rate, life would we think we have some kind of investment boom . This is your regardless of tax policy. If you look at spending in the u. S. , it picked up smiley on the back of the rebound of global growth, which global trade indicators started going through last summer. We have seen domestic drivers. This is an area that has upward surprise. We think we are in the midst of a durable cyclical upturn in investment in the u. S. That is not something that is the effects of what congress may deliver. I much i can point to many ceos out there to look at what congress may deliver and look at these 10 year investments. Guiding on that. That is very important on here because it means some complete fiscal failure, im not so convinced thats going to damage this cyclical upturn we have investment going. For the nextk out jobs report and we have some numbers presented yesterday about the impact on euston and do have the florida hurricane as well. What is Morgan Stanley see for the jobs report for september when you factor in the hurricane . The run rate was 180. Tend to overestimate the impact to headline jobs. The bars very high for being counted as unemployed. Your hours may be cut. As are probably not counted unemployed. There is no hit to headline perils. Mapmates are all over the from 100,000 to an estimate of over 200,000. It is going to be all over the place, which tells you know when knows what to anticipate on the payroll report. Markets understand are going to be hurricane effects and any data is going to be dismissed. I may as well stay home that morning. Thank you very much, chief economist at Morgan Stanley. We going back from cleveland to new york. A great interview. And fed chair janet yellen is said to speak on it late in Monetary Policy tomorrow. Lets could she checked on bloomberg first word news with emma chandra. The rhetoric escalated further today with a direct warplanes by. North koreas prime minister. Since the u. S. Has made a declaration of war we will have every right to make thetermeasures, including right to shoot down the United States strategic bombers, even if they do not come into our airspace. Flew closest to the korean korean Demilitarized Zone than any in a century. Following a surprise in the german elections, incumbent chancellor Angela Merkel must now begin the daunting task of forming a new coalition. That is after democrats announced they will not join mark for her fourth term. We will no talk about what our approach will be to the other parties, looking to the top with the ftp and other parties. It is important that we have a stable and could government in germany. The antiimmigration party also won parliamentary seats for the first time. Florida key Officials Say the island chain will reopen to tourists october 1 after an estimate of 25 of homes across were destroyed two weeks ago. Power is now restored to themmers that can receive and a boil water notice has been lifted. A crew ship returned to qs for the first time. Search teams are still digging through piles of rubble, hoping to find survivors trapped in collapsed buildings. Only 1 of mexico city schools reopen today. The 7. 1 magnitude earthquake killed at least powered by 2700 journalists and analysts in more than 120 countries. This is bloomberg. , an exclusive interview with one of the largest coal miners in the world. Joining us from the denver gold forum. This is bloomberg. s. North korea prices continue to climb as investors turned safe havens. At the denver gold form which is underway in colorados rings, and has an exclusive interview with one of the largest gold miners in the world. Much imyou very joined by the ceo of the goldcorp company. Since then you have done a few of them. To you see the company doing more . We have three projects in execution right now. We have something in the expectterm copy which we late next year. We are likely to make a capital decision there. Representing longterm options. Model ofe that collaboration. The collaboration and sharing the technical financial risk in these largescale projects. You dont need to do more acquisitions and partnerships. Do you think youd will do more . I wouldnt say them and they is impure to four us right now. Sold four assets in the last year and a half and we realized half 1 billion of consideration. Capital. Oyed that any large assets we think we will dispose of in the short term. You have been granted approval to move ahead with some conditions around water. How stringent are they . We are rethinking the entire project district. We are combining to largescale deposits that werent combined before. That freshwater license gives us some additional flexibility. Is there an appeal process important to you at all . We are not relying on that whatsoever. Across the entire organization we are looking to drive water consumption down as dramatically as possible. Object if. Pirational we drive down water consumption as a company and an industry. To you have a timeframe for that goal . 10 years. When do you expect to reap the rewards of that investment and is there a price that is required for it to be viable . Were assuming we can develop that project below today. Accommodation of two assets in close proximity to each other. Than building to industrial complexes, build one. By doing that you are likely to make you much Stronger Economic position. Generating cash flow, what is your estimate for that . We are likely to conduct a for a couple of years before we get into feasibility stage. We are looking at a fiveyear plus horizon. They are likely to get sanctioning for that. You are an Interesting Company because for the past or quarters you have met your production targets. What is it shareholders are missing . Gold is out of favor for general equity investors. Even smallscale m a or capital investment. They are looking to employ them back in the technology sector, Financial Service sector. Courage tolot of build and buy. You should be buying low and selling high. Bullishw you guys are longerterm, but nearterm what are the key drivers . Political uncertainty and risk is a key driver. Even though nominal rates are going up, we think inflation is going to outpace that. Real rates will go down. Back to you in new york. Collect thank you so much for that interview. Sarah Huckabee Sanders is at the White House Press briefing. She says it is appropriate for the president to defend the flag. On tv go. Tch that live from new york this is bloomberg. This is about the president being this is bloomberg markets. Its time for the Bloomberg Business flash, a look at some of the biggest business stories in the news. Pretty bonds dropped the most in two years. Prices. Save on asestructuring cleaning debris and reopening ports. Could taker says it up to six months to fully restore power. President trumps criticism of nfl players connex during the players conduct during the national ad them National Anthem have some criticism is your. I think they should dan donald trump. A behavior that is very counter to the terms of service, and yet he continues to begin at a huge platform to dominate to encourage the same bad behavior. Click starting at 5 30 p. M. Wall street time. That is your business flash update. From new york, this is bloomberg. In midtown manhattan this is bloomberg markets. Commodity markets are closing in new york. Lets get you caught up with what is going on with oil. Turkeyat 60 per barrel, shutting down Oil Shipments because of an impending kurdish referendum vote. It has seen more than 100 of implemented 9 , on a 10 recovered from this month. Opec and International Energy agency says oil is improving. Of a uti above 50 per barrel. Gold spikingt after north koreas foreign minister says his country can shoot down u. S. Warplanes in international airspace. Fueling a rush to haven assets as investors wave geopolitical uncertainties. Angela merkel secured a fourth term as german chancellor. The win was overshadowed by her party receiving force receiving more shares of votes than expected. Ast posted a surprisingly strong surprisingly strong result. The euro dropped on that german result. We give you a look at what is going on. On the euro. A sense of on the big stories in europe. See the result of the votes in the collection. That was a led bloc that one. You can see the party that one ,hing the secondmost votes they are very antagonistic. Coalitionve been in a with Angela Merkel for many years now. We were questioning whether or not they would decide to distinguish themselves here. Saying we would be in opposition party. A strong support for the party. A number of elements that will delay coalition building. And Angela Merkels relationship with President Trump has been screened. Trump has been critical of merkels immigration policies. To issueled on jimmy more to native spending. Nato spending. It began by asking merkels about the evolving relationship in the u. S. Shes going to stay calm and collected on german interest and bother her. Icism she will have different coalition partners. Green them will be the party. One will be more angry about that. The other will be more business oriented. Its not quite clear. Far as merkel is going to as far as merkels concerned nothing is going to change. She would beceived stronger and her election results. Issue week and havent put together this coalition . Manye doesnt have as seeking parliament as before. There she is weekend. Unavailable that there really isnt anyone on the horizon who can replace her. To she need to move to the right on immigration . We will see. Profile andy high prorefugee statements she actually moved far away from one ofready area merkels talents is to change policies without ever seemingly changing them. The question will be whether she or her Bavarian Sister Party feel like they have to meet them point for point on the conservative rhetoric. Where does this leave the populism conversation in new york and the u. S. . I think the populism conversation has been overdone. There has been this backandforth all the time. He went directly to the people, pushed aside all the Political Parties but we dont consider him to be a problem. I think the problem is a different one. I think the structure of politics in europe, the Party Systems are starting to break apart. Germany now has six parties in the parliament. 20 years ago it had four, 30 years ago they had three. You can say thats them a chronic. It takes apart the very firm unmoving structure that has guided germany for a long time. That will be a big fit big issue in the future. You have been an observer for many years. All much of what you described is based in economics . That is to say people feeling like their income is not growing, their prospects are not getting any better . A lot of it is based in economics. It shows how difficult this is even to judge. Its Unemployment Rate is about 4. 5 . The United States is mad at it because we export too much. What there is is a sense in germany and other countries and somehow the system is coming apart. This is a strong in germany as anywhere else. Former ambassador from germany speaking with daybreak america. Europe, toed across get more than 30 of the vote after 12 years and one million migrants coming into germany, that is a pretty strong result. Lets get you some other headlines. Hashe Supreme Court canceled arguments in a dispute of President Trumps travel ban. The order from the justices asked both sides to weigh in by october 5 on what to do. The court have been ready to hear arguments about the dan. Ity on then 90 day new policyaced by that affects each countries and has no Expiration Date the chief negotiator says the u. K. Government must abide by all rules during a transition period following brexit. Last week theresa may proposed a two year after leaving the block and 2019. Regulations, enforcement, financial conditions must be maintained without any exceptions. House Speaker Paul Ryan is promising that washington will make sure that the people of hurricane devastated puerto rico have what they need. Authorities are struggling to provide adequate relief to the 3 in the islandns territory. Tens of billions of dollars more are sure to be needed in the weeks and months ahead. Killing oneged with in a church in tennessee will have a Court Appearance on wednesday. He is facing one count of murder the police say additional charges are expected. According to an arrest affidavit he waived his right and told police he arrived to the church armed. No motive is being determined. Powered by 2700 journalists and analysts in more than 120 countries. This is bloomberg. Some of the nfls major sponsors are speaking out. What they have to say with trumps rift with the league. This is bloomberg. One of the most important movers of the day, facebook shares have been picking up throughout the session. Julie hyman is here with more. This is a story you broke after the close on friday. Zuckerberg was abandoning his retain most would of the controls even a he sold his shares. He is now saying hes and 10 to sell shares. Shares5 million facebook in the next year and a half or so. Sale,e had that kind of a he also talks about the companys current valuation allowing him to do so. Showing the various holdings of facebook and zuckerbergs history. You can see the green line he already has done some selling of his shares as is. Interesting reaction. Im glad you picked up on that. The stock is not the lowest 50 Day Moving Average as a result. Tough week for facebook. The nfls Corporate Partners are waiting in. Ford motors issued a statement saying we respect individual rights to express their views, even if they are not wanting to be shared. A statementssued emphasizing the importance of free speech. During and boycotting nfl games. Great to have you on. What you make of it . He has been a lifelong friend of mine. This is about the anthem. This is about charlottesville. In inuths last day boston. We played the starspangled banner. Reemphasizing in the template and the olympics. About the tragedy we saw in charlottesville. For allm sport looking and basketball it is not surprising the teams good together. A large amount of africanamerican heritage were hurt by charlottesville. They are not protesting. Express theing to concern they have with race relationships in the United States. Whether it is ford, whether it is nike it puts you in a difficult position. You could face a backlash from either side. I admire any chief executive who stands up for these issues. Mind that yesterday was actually a positive for the sport. Together armoming and arm. Implications some to ratings. The youngere generation is backing away from bet wall they are going to offended by this. I think that is they are discredit. It is an inappropriate forum. Can you question the forum . Colin kaepernick has why is this different . Hes no longer working i believe. Figures,are public they are standing up for a concern that manifested itself throughout the entire population. They are troubled. The speech we have more unemployed africanamerican males. And they did into anything destructive. Somehow the arms of their teammates and they didnt protest in any offensive way. They were trying to send a message to the president. This stuff matters. Donald m has a competent history with the nfl. He had sued the league and tried to merge with the u. S. Football league. He won on the merits of that argument. There is a little bit more to the backstory. There is a history. The more interesting story is 2017 he blamed the nfl. It is gratifying to see them stand with their players. Dead wrong. In a public setting as they are entitled to do, there are public concerns. I thought they handled themselves with great midi. Intermedia, thank you so much for joining us. Up, we take a look at why hiring people with disabilities Margaret Keane has some realworld proof of that area this is bloomberg. Hiring disabled workers can be seen as a charitable offer but for businesses it is the right thing to do. A boon to the bottom line. Bloombergs ongoing causation about diversity in the workforce, i spoke with Margaret Keane, ceo of synchrony financial. They launched a hiring initiative that has surpassed the tiring goal. I asked what makes this wetiative so important . Want to create a competitors diverse and inclusive. One of the areas that is ensive, people with a disk you with Disabilities Network and Threat Initiative we think about how we can hire people with disabilities. We begin in ohio. Sure we have the environment right, the tools right and trade our employees to make sure these people want to feel really included. Hot mention this mentioned this ohio location. You hired a few people. We have trained 32 people in our organization who can do something which today. The expanded twohour phoenix site. This is an incredible workforce. 80 of people in this arent employed. If you like it is continuing to society. Its also having the right workers as well. Our retention rate is much higher with his population. Disabilities do you most often see . We look at physical and cognitive. We work with notforprofits and other groups to map out what job it would be best that. Why you need to make sure you have the right physical environment for people to come in in terms of access, doors , and softwarely that allows them to do their job more effectively. Can you give me an example of a person in a right position . Call center. Theres no reason people with disability cant answer phones. We have tools in place with bigger screens or special keyboards. This is an area where we found great employees. There is accommodation you have to make. What kind of operating cost is that results in . I think this has been a great pool for us to attract. How can we create a really inclusive environment, how can we make this an engagement workforce . Its really an investment. Nevertheless there is a cost involvement in your workspace. Doing things all the time, it is accommodating a group of people that has special tools and special needs. The fact we have been able to repay more of it pays off. One other area that has been key all seven of the networks come. Showcaseay for us to to our organization all the inclusion efforts we are working on in the company. We include all levels of our organization. Engagerd members get to and see the difference with how we are engaging. Talk about the training for managers and other employees. We do a lot of sensitivity training. We train our managers. The most important thing is making people coming into the company feel like they have an opportunity to grow in the company. How do you create a career path for people . Thingsl those kinds of that we do. Does my conversation with Margaret Keane. Is time for the Bloomberg Business flash. 70 million in the case findinga federal court a copycat drug infringing on todays ruling follows the u. S. Drug in ministrations second rejection of the drug in july. Jim went up to 7 million up to 70 million in damages. Most of the drugs treat rare diseases. The spinoff will allow drugs to have it better chance of being approved. Include bainrs capital. Houston is in talks to require drilling units. This acquainted people familiar with assets valued as much as 4 billion. That is your business flash update. Coming up we will have the latest on President Trumps legislative agenda as they prepare a tax reform plan. Effortsnce committees to replace obamacare is nearly written possible. Nearly impossible. This is member. This is bloomberg. Is 12 00 p. M. In San Francisco and 8 00 p. M. In london. Scarlet welcome to bloomberg markets. Julia we are live in bloomberg World Headquarters in new york. Over the next hour, here are the top stories we are covering on the bloomberg and around the world. In washington, the republican policy agenda hangs in the balance. President donald trump and gop lawmakers are giving up to unveil the frameworks of their tax plan this week, but the Health Care Reform bill is in limbo. Houston is on the road to rebuilding after Hurricane Harvey. Businesses in the area could be having an easier time getting back on track after the price tag on the damage came in lower than expected. Monetary policy and Central Banks are at the heart of plans of action. A chief economist and former undersecretary of the u. S. Treasury tells us what to watch during the big week for central bankers. We are one hour from the close of trading. Lets have a check on markets with julie hyman. Julie we have been pretty steady throughout the day post that, from the north Korean Foreign minister that President Trumps recent comments have amounted to a declaration of war. We saw it go down and then climb sideways the rest of the session, but really, it seems to be more tech focused today than general risk aversion in the market. The nasdaq is falling more than double the declines of the s p 500. The dow to talk about north korea for a second, i want to look at the end, south korean won cross here. When we see the yen declining versus the won, that shows less concerned perhaps about what is going on. What we have seen happen in todays session is we have the yen gaining versus the south korean won. A little bit more concern being reflected, although not nearly the lows we saw back in may. So something to keep an eye on as we continue to watch the backandforth. Getting back to tech, though, we talked in the last hour about facebook and its declines in the wake of Mark Zuckerberg announcement that he is not going to have a dual share structure and also that he will be selling shares to fund his philanthropic efforts. The shares now down 4. 5 . It is not just facebook. We have seen a lot of selling the technology today. Lot of talk of what is can mean for Tech Companies and companies general. Will discourage this dual structure because we have seen companies and media employ it as well . Microsoft and amazon both down. Netflix shares declining as well. There to content been accelerating throughout the day. As you can see now down by nearly 5 . According toings Bloomberg Intelligence that might be pressuring is the story that fx network is persuading operators to sell an alternative fx plus. The ceo of the company has been a critic of netflix. That could be pressuring the shares. Also, we are watching apple to the iphone 8 introduction. A lot of analysts were watching the lines. A lot of reporters were the lines and observing that there was perhaps less demand than there was for the 7. Speculation about whether customers are waiting for the iphone x or just not buying. Apple is down more than 1 . A lot of suppliers are down. Ships generally, the Philadelphia Semiconductor industry down 2 . Scarlet thank you so much. A crucial week for President Trumps agenda. Republican leaders went to release a tax framework while continuing to push for repeal of obamacare. Senate finance Committee Chairman orrin hatch now says passing the Health Care Bill will be nearly impossible. Joining us now from Washington Bureau is shannon pettypiece, and also from washington is kevin, bloombergs had a congressional coverage. Of congressional coverage. That was a hearing interrupted today because of protesters. That seems to be an indication going withgs are this effort to repeal obamacare. Kevin that here now has resumed that that hearing has not resumed. Going with this that hearing has now resumed. Protesters enraged. A lot of anger from democrats, but also a surprisingly unified opposition from the health care industry. Doctors groups, hospital groups, insurers all got on the same letter to basically say this bill will cause a lot of trouble. You saw some revisions over the weekend and with the new version out this morning, but most of those revisions appear aimed at trying to win over the handful outs who have not yet said they can support this bill. Julia we also had ted cruz over the weekend saying he is still on offense. As you have said, we pulled together some amendments here to try to provide extra funding for the moderately complex ability for the conservatives here. How is that difference from the first commitment they made to the first bill they tried and that failed anyways . I dont see a difference. Kevin on some level, it is the same problem they have had all along. You make too many changes for the moderates and you lose the conservatives and vice versa. Definitely the same problems. It is not present anything is different this time. Frankly, they have had less time to make sense of this bill, to analyze it, to figure out what it is going to do. Cbl is supposed to come out later this afternoon, but only a partial estimate. It will be an outdated version of the bill, not even the very latest version. There is a lot of concern, obviously, from democrats in particular, but also some of the holdouts that they will not have time to evaluate this and they are facing a deadline by september 30 or this chance will pass them by. Scarlet that is the main distention between the last effort in this effort, there is a hard deadline. Julia no deficit, no premium adjustments, and you cannot really talk about the pricing difference and what value added that will be. On. Non, great to have you lets start with korea because we have the north Korean Foreign minister today saying the way they are perceiving Donald Trumps latest comments is tantamount to a decoration of war. The rhetoric between the two sides or at least the two leaders continues to amp up. Where are we on this and the diplomacy front . Shannon welcome of the white house was already trying to well, the white house was already trying to soften the statements today. Sarah Huckabee Sanders saying we have not declared war on north korea, downplaying that whole comment. White house Officials Saying, no, we are still looking for a peaceful solution here. We are trying to do diplomacy despite all the rhetoric. A continuation of what we have seen where you have the president playing this sort of crazy man school of diplomacy trying to make these threats and get china on board and rattled north korea while you have the rest of the establishment that comes in like secretary mattis and tries to cool the temperature and continue working for some diplomatic solution. But the response i was hearing today either from people on the hill, people on the show, on twitter, from Foreign Policy officials from past administrations, they are this rhetoric is really getting scary. They are getting scary and concern here that the temperature has gotten too hot and needs to be brought down. I feel like the concern has reached a new level of fever pitch about as heading on an unavoidable collision course at this point. Some action needs to be taken. Scarlet you obviously see that in the way markets react. Gold prices shooting up. Speaking of north korea, the white houses new travel ban includes north korea along with some other countries that are not muslim majority countries, which broadens the original travel ban by substantially. Shannon that ikevin that is r. One country fell off. Several new countries including north korea and venezuela on, stretching the definition, the original definition and concept of terrorism behind this. Now also an indefinite time frame. Not be limited 90 days. What you have seen for now, the Supreme Court had been scheduled to hear arguments and appeals against the earlier travel ban. The courts now said those will be put off. They have asked for briefs to figure out whether the entire case is moot or not. You can expect a whole new series of legal challenges to the new ban. Julia thank you so much. That was shannon and kevin. Lets get a check on headlines on the bloombergs first word news this afternoon. Hi. The government of chad and venezuela are expressing disappointed today over the Trump Administrations expanded travel restrictions. Joinedtions other countries sunday under the list of impacted nations. It goes into effect october 18. Ae says the restrictions are violation of International Law. And will require cities to reques the 10 people suspectf being undocumented immigrants and people being jailed on nonimmigration offenses. The judge has blocked much of the law with would have taken effect august 31. Defense secretary james mattis is headed to india for talks expected to focus on afghanistan, defense deals, and maritime security. The first cabinet level official under the Trump Administration to visit the country. Presented trump reached out last month to assist in the campaign against the taliban. The Human Rights Office says russia is violating International Law in crimea. According to a report out today, russia is opposing citizenship on its people and deliberately transferring hundreds of prisoners and detainees to present in russia. The report urges russia to investigate alleged torture, objections, and killings. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Scarlet thank you so much. Coming up, as the cleanup and recovery from Hurricane Harvey continues, we will take a closer look at the economic costs to the houston area. From new york, this is bloomberg. Scarlet this is bloomberg markets. Thea it is time for Bloomberg Business flash, a look at some of the biggest business stories in the news right now. Puerto ricos bonds drop the most in two years following hurricane maria, losing 4 last week. Analysts say bond prices will continue to fall. Debt restructuring can be delayed as other needs take priority. One person said it can take up to six months to fully restore power. , thatof one nfl jersey is the loan pittsburgh steeler who stood for the National Anthem. The jersey has been a bestseller on phonetics. Fanatics. Com. An exarmy ranger. President trumps criticism of an ipo players during the income have some questioning his behavior on twitter. Social impacts adjusted his behavior was inappropriate, one said. That, you can catch up on bloomberg technology. That is your Bloomberg Business flash. Scarlet lets turn our focus now to Hurricane Season and Economic Impact of recent storms, including Hurricane Harvey, which took place in texas. Correspondent Michael Mckee standing by at the National Association for business economics annual meeting in cleveland. Michael thank you very much, scarlet. We are here with patrick from the greater houston partnership. There were some horrific numbers thrown around in the wake of Hurricane Harvey in terms of damage to the houston area, and you came here with a report that showed exactly what you found so far. Patrick yes, now that we have had a little more time to look at the damage and assess, we are getting a better understanding. As of last friday, 500,000 claims with fema with individuals or households that suffer damage. Were looking at about 100,000 homes in the houston region that have significant damage. Another 65,000 have damage that are still a habitable. Apartment numbers, we are looking at 13,000 Apartment Units that have been damaged, so we are looking at about 2 of the housing stock. About 2 of the apartment stock. That is significant damage in the houston region. Michael that is worse than you would want it to become a bit better than the initial numbers suggested. Patrick immediately after the storms, it is hard to figure out what is going on, but this is the situation where, yes, it is significant, yes, a large amount of damage. Most of the burden has fallen on the homeowner, the individual family, not as much on the Business Community. Michael what happened to the Business Community . How Many Companies had to shut down or were unable to occupy their offices . Patrick for about a week, there was very little activity because the storm was there and people were cleaning out from the storm. There has been a survey done of the Office Buildings in the houston region. Of the 1200 Office Buildings in the houston region, only 46 suffered significant damage. That represents about 9 million square feet of space, about 5 of the office inventory. The nature of the damage is different. Harvey was a water event as opposed to a wind event. The wind event blows at windows, damages the building from top to bottom, by this flood event, this inundated the basements, the ground floors, so the buildings which are diminished are the ones that had water flow in and affected the Electrical Systems or their elevators. The same sort of thing that happened with the homeowners where the waters rose up into their houses. Michael what about cars . Half a million cars. Ae person says she noticed spike in pickup truck sales. Patrick we are texans. We love our pickup trucks. Id drive one myself. I drive one myself. Thre300,000 vehicles damaged in Hurricane Harvey, 11 of all the vehicles in the msa. I wish i can say it may traffic better and houston, but industry much the same. Michael what does this mean for the houston economy . Do you have figures yet on what the total damage is or how it will impact the economy . Patrick most of the businesses are up and operating. A vast majority opened up the tuesday after labor day weekend. Almost all of them the following monday. Airports are open and operating. Almost all the refineries started up except for one or two. Most of the Chemical Plant started up. We have seen some with sandbars form in the port, those are being drenched out. The city back business burden remains on the homeowner and families. We are looking at the estimate of the damage right now about 97 billion in damage, which is half of the original estimates of damage. Michael where does that come from, and how does that impact houston over the longer run . Patrick Comerica Bank has a similar number. Somer as the longterm, things we are looking at and trying to assess the damage. We are going from recovery to repair and now looking at, how do we move forward . We do not think it will have longterm impact on houston. We work with corporations. My organization which with corporations try to get them to relocate or expand to the region. At any one time, we may be working with 100 companies in the pipeline or more. So far, only one company said to take them off the short list. Michael what about rebuilding . How long will that take given how tight labor markets are . Patrick rebuilding for homeowners is hard to tell. Permits were down 25 compared to last year. There was some excess capacity. It is a question of when you get your fema check, your Flood Insurance check, and housing you can get started. We have concerns about shortage of labor. The labor market is a little different than everyone else, but i expect a year from now, most everybody will be back in their homes, hopefully six months from now. Michael you have basically the rebuilding washes out the damages that are done. Is that an indication of the long run in houston or will you bear the economic stars for some time . Patrick i look at houston and how we all came together. Not just neighbor helping neighbor but stranger helping stranger. There was a great cover on the new yorker or time magazine. The sort of people we have in houston, we run into the fire. Problemand, and image with flood damage and coming together on the other hand. Michael good luck to you and the people in houston. Patrick thank you very much. Michael we will send it back to new york. Julia thank you very much. Michael mckee at the National Association of economics meeting in cleveland. Still ahead, settlements are taking center stage. The former undersecretary of the u. S. Treasury tells us what to expect from janet yellen speech on Monetary Policy and plenty more. From new york, this is bloomberg. Julia this is bloomberg markets. Scarlet it is time now for options insight with julie hyman. Julie thanks. Joining us today is jim streeter of mk m holdings. We are not even through september yet, but you are looking towards the end of the year, trying to figure out your positioning, trying to stay one step ahead of us are at the year we have seen thus far and looking at to the next few months, how are you sort of going to position yourself going to the end of the year . Jim obviously, has been a good year for stocks. S p still up 12 year to date. A couple metrics were throwing out there, 171 components of the s p 500 are up at least 20 and about 45 are up 40 or more. When we talk about yearend for professional investors, if you are sitting on these gains, you want to do something, something that makes a lot of sense in terms of Options Strategy and stop replacement when you look at monetizing these gains and replacing those positions in terms of economic value synthetically with options. We can dig into that a little bit more over the next couple of weeks, but it is worth going out there. We put that in a note this morning. Of thisr question all begets is where to position into yearend that gets us to where we are talking about today . It is obvious with todays market that energy we think and houston upside. We wrote this last week we think can have some upside. We wrote this last week and over the weekend. We are restricting additional upside we think in the yearend. Julie the trick when you have in years to keep it up through the end of the year. If you look at oil yourself, it has already had a 20 or so bounce from the lows in june. These Energy Stocks are starting to gain some momentum this year. Sounds like you think that momentum is going to potentially continue. Jim we do. Just to give a little background here, Energy Equities of the last couple of years have been wrong at times. Tough group. The sector is down 10 year to date, the worst performer again with the s p up more than 10 . Brent, crude hires have broken out. Wti looks to be supportive as well. Julie you are looking at oih for your trade today, right . Jim exactly. Etf down more than 20 year to date. Implied volatility very low relative to itself. A nice way to buy cheap upside here. Specifically what we want to do is go out to january and just straight calls out right when we price that over the weekend at about . 59 or so, but a very clean way to get long directional exposure and energy. Julie thanks a lot. Back to you. Julia still ahead, Angela Merkel has had her decision day. Shinzo utleys future abes future hinges on the snap election held in the country. We will be discussing. From new york, this is bloomberg. Sarah sanders is pushing back against pyongyangs claim. Trump says that kim jongun wont be around much longer and said that the u. S. Would destroy the country if it is forced to defend itself or its allies. The u. S. And north korea are still technically at war. Both sides agree to an armistice after the korean war. The island chain reopened to tourists on october 3. That is after 25 of homes were destroyed two weeks ago by hurricane irma. A spokesman said Power Services are now restored to customers that could not receive them. The marathon in key west arports are reopened and cruise ship returned to key west for the first time on sunday. There have been protests of the Dakota Access pipeline. They are borrowing an additional 5 million to cover the enforcement costs. That will