Transcripts For CNBC Squawk Alley 20170907

Welcome to squawk alley for thursday were at post 9 of the New York Stock Exchange were getting some Oil Inventories in a moment here Hurricane Irma makes its way to florida as a category five storm, slamming into several islands in the caribbean overnight. We have Team Coverage this morning. Wmaq meteorologist is back at hq phil lebeau is in chicago. Lets start with you we have a very strong category 5 hurricane that is going to churn over warm waters and low sheer, those help keep the hurricanes moving at the intensity that they have if you look behind me, you can see a very strong, very wide large hurricane first going to be moving towards turks and cake yoes as it moves forward tonight. Then eventually going to be making it to the southeastern part of the bahamas. And then the eye set on south florida. Still, were watching some questions and some points that we have for you as we move forward in the next few days the potential path as of right now could have this storm moving right through miami sunday morning, wind gusts potential for the miami area could reach 129 with gusts up to 159 Miles Per Hour how far west does irma get before the turn north . That is going to be the question kit not be answered right now. We are going to have to wait wlachlt is happening with the storm is its being steered by the High Pressure over the atlantic until it gets further to the west, we wont know when it takes that sharp turn. But georgia, South Carolina land fall potential is going up so a lot of the questions with this a hurricane watch has been added to south florida just in the last few minutes that is the multibillion dollar question. Thank you very much. We are getting crude inventories as we mentioned. Dom chu is back at h. Q. Watching that we have a build of 4. 6 Million Barrels of gasoline. Economists are on average looking for a build of 3. 8 Million Barrels. Oil prices holding relatively steady right around that 49 mark for west texas intermediate also with gasoline inventories, a drawdown of 3. 2 Million Barrels. That is smaller than the expected drawdown of 5. 8 Million Barrels. Of course, all of this in focus given the fact that refineries on the gulf coast trying to get back to some sense of normalcy and operations there well keep an eye on that oil trade. For now, those are the statistics a better than expected build in crude. A smaller than expected draw in gasoline carl, back to you. All right dom, thank you for that. Back to irma. Were monitoring the impact of travel on irma good morning. Good morning. Miami international airport, that is what a lot of people are focused on there are long lines there people are waiting to get on flights and get out of there heres whats happening at that airport. Airlines are preparing to stop their flights most are stopping them starting tomorrow 7 of miamis flights are canceled today what are the plans not only for miami but all of florida whether it comes to American Airlines . The flights into miami and out of miami as well as ft. Lauderdale, west palm beach, south florida, those will stop tomorrow afternoon american is then stopping flights on saturday afternoon for orlando and also monitoring the situation in Tampa Jetblue has a large presence down in florida. Ft. Lauderdale is where a number of the flights goes. Can you look at jetblue and say it goes up the east coast. 8 of the flights have been canceled for today take a look at the rental cars companies. Hertz and avis, the stocks have had a nice move over the last couple of months they have seen heavy demand not only because of what is going on in florida, but remember, they had heavy demand in houston with people who needed a car to get out of town or needed a car to replace the one that was damaged in that hurricane. Hertz said theyre waiving certain fees for vehicles that are returned not to the original destination or the original airport but up to 100 miles away carl, were going to see a lot of cancellations increase over the next 24 to 48 hours. Phil lebeau, thank you very much for that getting word from the National Hurricane senter that a hurricane watch has been issued for south florida and the keys nearly 30 of gas stations in the ft. Lauderdale west palm area are out of gas with little hope for new deliveries before land fall. Florida governor rick scott addressed that fuel shortage in the past hour. Heres what he said. One of our Top Priorities right now is fuel availability we know there are problems with supply gas stations and working around the clock to get fuel to you. Last i spoke with all of the fuel retailers and i just got off the phone just a couple minutes ago with all the Oil Companies. Ive been very clear to the retailers and Oil Companies that we have to know we have to get the fuel as fast as we can out to everybody has the fuel to evacuate for more, lets bring in Gas Buddy Senior Petroleum analyst, its good to see you again good morning good morning, carl. Gas buddy gives some statistics to the journal this morning. 26 of stations in miami ft. Lauderdale no gas. 18 in ft. Myers and naples, no gas. Is that situation going to get any better before landfall well, were seeing some volatility but overall the numbers are not looking good its been harder to find gasoline in south florida. Weve seen the number jum top about 43 of stations in miami without fuel gainesville is at 33 . And the numbers are starting to climb in terms of more stations outages. How bad can this get . Could we see a majority of gas stations in miami completely dry . Well, you know, as evacuations continue to ramp up, there is demand for gasoline in south florida. As you heard from the governor, there is a lot of wheels moving to get gasoline to the market. Gas buddy being one of those wheels trying to relate information that state is getting in terms of what stations will be resupplied i think its going to be very touch and go it could become very challenging. There is fuel showing up to pumps. A lot of major stations are refueling key location ands gas buddy certainly a key in trying to deliver that Vital Information to motorists trying to get out of the way. Patrick, what is normal ahead of a crisis like this . An area like florida thats, you know, perhaps more used to evacuations than houston, it is probably a little bit better off. Harvey just bowled into the gulf coast and really impacted shipmentes of gasoline to the affected areas so there is not a whole lot on record when you have harvey that is impacting the gulf coast which by the way is where florida gets a considerable amount of gasoline supply. There is a lot of gasoline trying to flow to florida. Theres a question of when irma make land fall what will the coast guard do the fuel is coming, but there is challenging to getting it into motorest gas tanks. What is happening with prices as we continue to seat fuel shortages spread across florida . The only good news is that irma is not a gas price vent we are not seeing massive increases in prices, thankfully, theres not a whole lot of Energy Infrastructure here thats at risk and thats why irma across the country is not going to be a gas price event. You may see localized impacts and prices south florida as availability becomes a little tighter, you could see a little bit of an effect in georgia and care lines yaz as well. Again, its a very localized impact the National Average is starting to slow down as a result of harvey being out of the way. Finally, patrick, is gouging a serious concern of yours or not . It is a concern that were watching there a challenge in florida the price gouging law is weaker. We saw Hurricane Matthew and stations, the way the price gouging law is, doesnt really offer a whole lot of help to motorists. Some stations near orlandos airport as long as they dont raise the prices after harvey, they can still continue to charge 5. 99 a gallon. In times like this, it is really important to have a price gouging law that is strong at least whether it comes to gasoline but the gasoline prices were not seeing a lot of widespread reports on gouging patrick, thank you for your guidance as always you know this business better than virtually anybody patrick from gas buddy joining us on irma when we come back on squawk alley, amazon is on the hunt for a second headquarters. Well speak to the head of Amazon Services and how hes helping sellers make money in the new retail landscape and social capital ceo is filing for an ipo so others dont have. To details on that coming up then later, House Speaker paul ryan holding the weekly press briefing, tax reform, fema funding and a lot more on the table. Because, when you really, really want to be there, but you cant. At cognizant, were helping todays leading Media Companies create more immersive ways to experience entertainment with new Digital Systems and technologies. Get ready, because were helping leading companies see it and see it throughwith digital. Amazon in search for a second north american headquarters and could hold up to 50,000 people this as the internet giant continues to transform shopping. Our next guest is a former amazon insider helping brands navigate the new retail environment. Were joined by james thompson, former head of Services Sales . Selling . Amazon services. Indeed. A Consulting Group supporting brands now selling on amazon so wondering what your handicapping as far as the likely location. You know, i would throwin cincinnati, northern kentucky. I like that i know, youre from there you have p g nearby. Its right at the intersection of a lot of major highways what do you think . John, right now we have a situation in seattle where there are 9,000 job openings there are increasing rents on both residential and commercial real estate at levels that are basically unsustainable. You have to move to a lower cost city you have to move to a city that has a lot of space for big skyscrapers. I definitely think that youre going to see in the midwest where there is a lot of technology capabilities, local university thats can help to support this huge amount of demand for technology employees. Why is amazon doing this when apple built another headquarters in coopertino, goinging is looking to expand in san jose. Why cant amazon find somewhere else say in Washington State which i believe was our top state for business why not stay there you have a situation now where in seattle all of the other major Silicon Valley companies have also set up shops in seattle theyre all competing for the same employees if amazon puts a facility in another location that doesnt have that same kind of demand on employees, hightech employees, youre going to see potentially two to three year advantage that amazon can enjoy as they start to ramp up and put 30, 40, 50,000 people in this facility this is a massive, massive develop ment of hightech employees. You cant just snap your fingers and expect to be able to find that number of employees in any one city you have to do it quickly and you have to do it with some advantage over all the other i. T. Companies that welcome looging for the same employees you say midwest is this a call for tax incentives kansas city . Wisconsin . Amazon is very good at making sure they extract as many tax dollars as possible. This say little different than most situations because were not talking about getting tax benefits to build a warehouse and drive a lot of what i call minimum wage warehouse jobs. This is hightech. This is an opportunity for a city and the state to instantly become a little more mini Silicon Valley to get this incredible concentration of High Technology its an unusual situation. And for the right state that they will step up and have to pay dearly for it. I want to ask you about the amazonwhole foods deal. How do you see amazon transforming whole foods and the own grocery business which hasnt made end roads in terms of delivery in the last few years. The whole foods deal as far as im concerned is about data access to prime customers, shopping data off line if you can combine what they do online on amazon, can you combine that with the purchase behavior they do off line. You have ability to put that together and create an amazing opportunity to optimize what is in the store physically and whats on the store online and so i see a situation where all of the other Grocery Stores who dont have access to the same online data or dont have as ses to as much opportunity to sell products at low margins, they are in an industry they havent done well so far. Part of the business is consulting brands that sell on amazon. Yes we talk a lot at this december become the nike deal, how that how they managed to get over some of the reservations on how the products are presented. Is amazon making that more comfortable or not amazon is a strategic brand to amazon the opportunities to reduce the number of sellers selling the products, that is highly unusual. And so certainly a lot of press around that deal its certainly not a deal that most brands will be able to negotiate with amazon. James, quickly, im interested in what you said about data being the key in the whole foods deal therefore, should the nonperishables be perhaps more concerned . Because this may be more about figuring out what amazon can ship to people who shop for certain groceries versus selling them eggs. I expect whole foods will not be carrying just grocery items on day one, we saw pal et cetera of alexa equipment showing up in the stores i fully expect that amazon will push the private label brands which are not consumables, not grocery items. Youll start to see some of the items that amazon knows the prime customers are interested in buying. And youll start to see some of that less well used shelf space get stocked with nongrocery items. Yeah. Exciting stuff james, thanks. Thanks for having me on james thompson. Former head of services. New comments now from eli lilly. Were standing by with that. Meg . Sayer yashgs i just spoke with eli lilly ceo on the phone briefly after the companys announcement that they plan to cut about 3500 jobs including about 2,000 in the United States thats about 8 of the total workforce. The ceo telling me really this is part of a new time of growth for eli lilly. They need to free up resources in order to do that. They expect the 3500 job reductions will save about 500 million annually starting in 2018 they do expect to take a charge bf 1. 2 billion in the second half of this year related to those job cuts really saying that this is because they need to free up new investment for the new period of growth that theyre n separately, we also talked briefly about tax reform and the companys plans for Capital Allocation in the midst of that we heard from the pfizer ceo that company was holding off on big business develop ment decisions. Waiting for clarity on tax policy we heard similarly from eli lillys ceo. He said theyre not looking at big mega mergers anyway. Theyre taking a pause in terms of purchases, returning capital to shareholders as they await more clarity on repatriation specifically there so eli lilly up there 2 on the heels of these job cut announcements. Were hearing theyre going to take a pause at least waiting for clarity on tax reform in terms of Share Repurchases it is influencing corporate decisions, thats for sure meg, thank you for that perspective and color around the announcement we head to break check out shares of gopro. Theyre upping the Third Quarter guidance revenue and Gross Margins are expected to come necessity high end of expectations. The stock is responding, up 15 . Still a long way to go from the highs. Making its way slowly but surely higher not rebalancing your portfolio. Pursuing your passion, not reacting to market downturns. Focused on what you love, not how your money will last through retirement. Let us help you with those decisions, and get on with your life. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Dad molly, can you please take out the trash . sigh dad molly trash whoo mom hey, molly . Its time to go bell ringing class, lets turn to page 136, recessive traits skip generations. Who would like to read . molly i reprogrammed the robots to do the inspection. Its running much faster now. See . Its amazing, molly. Thank you. looking for a hotel that fits. Thank youwhoooo. Your budget . Tripadvisor now searches over. 200 sites to find you the. Hotel you want at the lowest price. Grazi, gino find a price that fits. Tripadvisor. Bob eger making comments about the new streaming service. Were going to turn it over to julia who is watching the headlines cross. Thats right. Eger speaking at the bank of america conference and he announced more details about the streaming disney app that will launch in late 2019. He announced that they decided that they will put marvel and star wars movies on the app as well when he first announced the app in the works last month. He said they were still evaluating that. So this is a big deal to include those marvel and star wars movies as well as the disney and pixar branded movies that will be on that app he also revealed more details of the original programming that theyre going to be putting on that disney app and the work saying theyre developing four to five original films exclusively for the app primarily live action. There will be about 400 to 500 Library Films as well as disney branded tv shows for the app the tv library around 7,000 episodes plus developing new original tv shows for the app. He went on to talk a little bit about the espn app which will launch this coming spring. There are 10,000 live events that are not live on espn, mlb, hockey and college sports, he said that he expects this to evolve to be a service where people can sign up and pay for sort of more one at a time sports that theyre most interested in seeing he made the comparison to itunes said it is more like itunes but for sports so that is the vision for the espn app down the line thats a little different from what we heard before well continue to listen and well come back. Disney is largely unchanged hard not to Pay Attention to this quote on Cable Company relationships, they will remain relatively consistent for the near term what happens in the long term im not sure yes, he said for the near term they expect to generate more revenue from the digital bun bundles. They have seen impact from that but if theyre going direct to consumer, disney has the brands like espn and sports, like disney for families that really mean something to the consumers and as eger said in the past, he thinks they have a specific value there really be able to go direct to consumer julia, thank you for. That we continue dissecting p g and details the push for change, we want to show you an item of note, peltzs filing on july 27th, it says cramer wonlders why p g is spending so much of your money on a proxy fight. Were wondering too. Take a listen. Thats a lot there are people advising them on this proxy fight they can take all the fees and save them and put this man on the board who has done more home work than anyone else and give you the home work for free memo to Procter Gamble peltz is cheaper than the darn advisors that note from pepper though the other day. He said maybe we dont want the home work for free the fact that pepper weighed in and sent that letter to 100,000 employees and alumni shows that theyre fighting not just for the board but as he said, pepper in that note, for the future of this company, the board firmly believes that adding peltz to the board would derail the current progress theyre making under the 20yearold ceo. That is continuing to be the fight. And thats going to be the question that investors have to decide for themselves after reading now 94 pages with a lot of good charts showing chronic underperformance and interesting ideas. From inside p g, why wouldnt you want this nice wooden horse sculpture. If you look at what theyre proposing going to a structure of three autonomous units, it sounds like preparation for a breakup. So perhaps he would say theyre trying to make the company operate more effectively, efficiently, leaner, Decision Making at a local level. By the way, disney is taking a tumble eps for the year is roughly in line with fiscal 2016. So disney is now suddenly down 2 dont miss mad money tonight at 6 00 p. M. Eastern time social capital kicking off an ipo road show today. Our leslie picker is watching that leslie thats right. He is meeting with investors in new york today and those in boston tomorrow. Pitching a concept that is never really been done before. If he successful, it could alter the way private companies especially Venture Backed Companies tap the markets. The firm social capital are asking investors to essentially write a 500 million blank check. This type of vehicle is known as a special Purpose Acquisition Company or spac. Investors give them the money up front and they then use it to acquire startups ownersst target business would exchange their shares for shares of the spac and this allows the target to be public without marketing road show and reporting expenses im told by sources that early feedback from the socalled testing the waters meetings was very strong and it makes sense startups have been avoiding ipos or seeking alternative ways for getting public for years now his perspective is highlights he issues with the traditional processing including manage ment distraction and the difficulty of finding the right price they describe the mission to create an alternative path for stra decisional ipo for Technology Companies to acheest long term objectives overcome deter ents it will be listed and the warrants associated with it will be ipoa space ws it is set to begin trading a week from today. Thank you very much for that. Leslie picker back at hq dont miss them delivering alpha next tuesday september 12th. For more on that, go to actually deliveringalpha. Com seema mody is here a very interesting session indeed european stocks mostly higher following Mario Draghis News Conference the ecb president said the central bank will probably make the bulk of the decisions on unwinding stimulus next month. The euro, it initially spiked about 120 against the dollar heres what draghi said. The recent volatility in the Exchange Rate represents a source of uncertainty which requires monitoring with regard to the possible implications for the medium term outlook for price stability. Now just reading throughout notes, barclays is retaining the view that in october the ecb will announce the extension of the program to the first half of 2018 but at a reduced pace of 35 to 40billion euros a movement the analyst there also writing that the euros strength puts significant downward pressure on inflation as weve been discussing but that impact on European Growth is limited meantime, german bund yields following which added to market expect sagss of an imminent tapering were seeing the yield spread tighten between the u. S. Tenure and the german bund. That is providing a ka catalyst for the euro guys, a very interesting session. Back to you. Absolutely. Thank you. And whether we come back, were walting for comments from paul ryan. Well bring it you to live when it happens at fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. A hurricane watch is in effect for the florida keys. As of now, miami is right in the path of irmas destructive eye with less than 06 hours until first impact irma is forecast to only slowly weaken, an off shore track is still possible new satellite images captured the strength of irma it went across several islands with devastating winds and heavy rains. Irma is the strongest Atlantic Ocean hurricane ever measured. The latest detonation was a hydrogen bomb. Servicemen gathered at the square which was also attended by National Defense scientists south korea meanwhile in the u. S. Adding four more launchers to its thaad Missile Defense system several military vehicles carrying pay loads covered with black sheets heading to a former golf course. Thats where the system has been installed. That is the news update this hour back downtown to squawk alley. Were keeping our eye on disney bob eger making comments blt disney app, not going to have advertising. Booking softness ahead of Hurricane Irma but what is taking the stock down 3 is this guide for basically flat earnings on eps versus fiscal 16. Theres a few reasons. Some are topical but that is the reason for a stock that really didnt move much in the wake of the comments until he got to eps. And when you look at the uncertainty that theres got to be of course Walt Disney World being in or land yoeshgs a love the cruises for the caribbean leaving from ports in that area. I mean, i suppose theres hope that they could recover. But you never know what people are going to do, what the Hurricane Season is going to be like and some of the bookings you dont get back much its a time when people had off and they do Something Else well see how much disney can make up that. Worst performer in the dow. Were also waiting House Speaker paul ryan who is hoelgd his weekly press briefing. Well bring it you to live as soon as it begins, especially after that deal that President Trump made with the democrats on the debt ceiling tax reform, hurricane relief, the debt limit among the items on the speakers agenda. Joining us now dougla aiken. We await the House Speaker doug, first you to on tocax reform do the odds change after that deal was made between the democrats and President Trump and leadership i think so there is going to be a bit of distrust in the room as they hammer out what the tax reform bill will be since the clock is the enemy, anything that slows down ability to get a deal and start moving on it is significant so for me, you know, tax reform is the single most important thing on their agenda. They were sent to washington theyre going to be judged next november on whether they deliver on that or not and if you want that to happen, you probably have to get the tax bill done by thanks giving so you see something in q1 and q2. So theres a lot of pressure as a fiscal expert, are you advising some of the republicans on their house on the tax plans . I spent a lot of time with the house tax forces when they delivered the speakers better way plan and have stayed in touch with the members of the committee since. How does this deal that president has made kind of politically effect the landscape. Some see irt as a way to get back to Mitch Mcconnell and some republicans in congress. But is this perhaps the kind of bipartisanship that the country has been waiting for im not sure thats what it is i think doug got it right. Theres a reason why we havent o done tax reform, major tax reform for 30 years. And thats because conditions have to be right and the conditions got more and more difficult after that deal for a couple reasons one is the calendar. Second is youve got daca now thrown on the agenda that is another distraction for congress third, by giving more leverage to democrats, the president made sure this was likely anyway, that theyre going to extract higher nondefense spending to go with the higher defense spending that republicans want. That combined with spending on Hurricane Irma and harvey are going to make it more difficult to cut taxes since some members want a an actual tax cut that might expand the deficit so all of that is hard to keep the Republican Team together not to mention the fact that you now have steve bannon on the outside shooting at gary cohn who is trying to crack the tax plan its a mess right now. Its possible the political imperative to get something done before the 2018 elections will propel this across the finish line its getting harder. When it comes to the nittygritty, where are the republican budget hawks for so many years worried about the mounting debt . Are they going to disappear . Before you answer that, stick around we want to listen to the House Speaker paul ryan. Good morning. Yesterday i spoke with Governor Abbott of texas. Discuss the Recovery Efforts following Hurricane Harvey i relaid how inspired that we all are by the people of his state. It really is something to see. And i expressed our commit ment to quickly provide resources to the region i spoke with our delegates from puerto rico and the Virgin Islands about the devastation that is occur right now with Hurricane Irma and this morning i spoke with President Trump about the urgency of our relief efforts. Its a good thing but with new technology, fema is moving money faster than ever before. And so that is why there is a sense of urgency to get this relief package done. Right now were just thinking about everybody in irmas path and this hurricane, 185 Miles Per Hour so our thoughts and our prayers are with the people who are in the path of this current hurricane. This morning we had another productive meeting we had another productive meeting between the house, senate, and white house on tax reform our tax writing committees are working on the details this is our number one priority this fall. As you may have heard me say earlier, we want americans to begin the new year a new tax system it is high time. We havent done this since 1986. The rest of the world passed our country on its time were back in the game of being competitive and we will get faster Economic Growth when we do this its about growth. Its about fairness. Its about finally giving American Families tax breaks lastly, i want to take a moment to highlight a new report from the commission on evidence based policy making. This is something that i consider very, very important. This is a personal project of mine senator petty and murray and i came together to start this panel. The mission here is to completely reexamine the way government solves problems you look at Something Like the war on poverty you look at Something Like that weve been at this for decades but the needle has barely moved. Washington is just stuck in this endless feedback loop where we measure success based on effort, based on input how much money are we spending how many programs did we create . How many people are on the programs yet, we claim to that when we ought to be focusing on outcomes our r. These programs working . Are in this case we getting people out of poverty . So this report, the promise of evidence based policy making, this report lays out a blueprint for doing that im excited about the potential for more bipartisan progress here what we should be doing is policymakers is focused on outcomes and results not just based on input and effort. Petty and i are talking about this later on the capitol today. This is high time and coming with big data, with analytics and the tools we have and technology we ought to be able to get our policy focus and actually achieving the results that we intend not just hoping but actually doing i hoepe the Democrats Join us o tax reform were going to continue with this plan. I heard from quite a few democrats lately that they like what were talking about [ inaudible question ] do you believe that you have a [ inaudible i do. I do look, i know there is a lot of interpretations and all this stuff about the meeting yesterday. Isnt it a good thing that congressional leaders talk thats probably a pretty good thing. Number one number two, the president made it really clear and what he was aiming for in that meeting yesterday was a bipartisan moment while the country is facing two horrible hurricanes and so what he made clear to us is he didnt want to have look, personally, i think the debt limit and the credit markets, the longer the better for the stability of the credit markets. Thats my strong opinion but he was interested in making sure that this is a bipartisan moment while we respond to the hurricanes he made that clear i think thats what his motivation was [ inaudible question ] i didnt describe it that way. I described a short term debt limit. Im worried about the credit markets and doing this on a short term basis we cant keep doing it that way. But i think what the president basically expressed is at this moment when we just had a massive hurricane hit texas and louisiana, we have one that just hit the Virgin Islands and puerto rico and now florida. If you look at the cone of this hurricane, it could be anywhere from georgia to South Carolina so that is a tough moment for our country of we need to make sure that government responds to people and so the president wanted to make sure that we are going together as republicans and democrats to respond to this i was making economic point which is with respect to the credit markets, i think stability and longevity are key. Yesterday at the meeting [ inaudible question ] there is a legitimate role for the person in power and thats something we defend here in congress. Texas has about [ inaudible question ] i wont get into what they have or arent doing with their legislative session. I spoke with the Governor Abbott last night what we know is that the Disaster Reserve fund which this isnt just for harvey. This is for all disasters. And weve got more than just one disaster occurring in this country, especially today. What is happening is unlike katrina where i dont think iphones even existed then, people on their smart phones are quickly applying for their fema relief and those applications are being approved and then that money is going out the door at such a faster pace than we had ever experienced before to the point that theyre telling us that fema could run out of money as early as tomorrow those are the projections that were getting from homeland and omb. We have a treasury secretary who is worried about the Borrowing Limit to cash flow these payments to fema particularly now that theres a new hurricane hitting this country today and so those are the concerns that trump Everything Else no pun intended. Those are the concerns that prevail over Everything Else that is why we have this issue right in front of us im sure theyre going, to chad. [ inaudible thats a good question. [ inaudible question ] i think its in our interest to have a new one. I want to make sure that we have one that works for our war fighters i want to make sure that we have one that works for our men and women that we ask to go in harms way and do it in such a way that doesnt put them in jeopardy i think the administration should take the lead i didnt like the one that obama wrote. There is multicontent. We have isis in libya. We have isis in the arabian peninsula. Weve got central asia so we have a lot of fights on our hands that we have to engage in in order to keep the American People safe. I think the president recognizes this threat. I it this president through a long analysis recognizes the need to go a better different way in afghanistan i think in afghanistan i think the best description of the last 16 years in afghanistan is weve had 16 one year strategies in afghanistan. We need to have a real strategy in afghanistan that shows what victory looks like on how we keep ourselves safe and deny terrorist safe havens and that should reflect that. It shouldnt tire. Carrie [ inaudible question ] i think the administration agrees that daca is a symptom of a problem. We dont have control of our borders. So while we deal with this issue which the president Gave Congress time to deal with, i think its only reasonable that we deal with the root cause of the problem, open borders, uncontrolled borders we need to control our borders while we deal with this problem so that we dont have the same problem ten years from now that is perfectly reasonable it wasnt too long ago that i think a lot of democrats agreed with of controlling the border [ inaudible ] well, we havent done the wip on this so i dont know the answer to your question about the vote count we all thought we had more time obviously to deal with the debt limit issue and thats before the hurricanes hit when these hurricanes hit and we saw the new numbers coming in from fema, that changed the entire calculation and so the president made a game call yesterday that he thought it was in our countrys interest to have bipartisan support in a bipartisan package to deal with these ongoing hurricane disasters. So that is where we are right now and, look, hurricanes dont discriminate between republicans and democrats. Hurricanes just hit people, they hit americans, and we have an obligation to respond to this so thank you very much, everybody appreciate it. House Speaker Paul Ryan there talking everything from tax reform to hurricane relief, bracing for irma, talking about that deal that was made with the democrats and President Trump on harvey relief. He said he would have preferred a longterm debt ceiling deal but he said that he understood the president wanted to make it clear that he wanted to bring together both parties, bipartisan moment when it comes to providing relief to victims of harvey. Back with us, American Action forum doug holtz aiken also joining us from washington our own john harwood House Speaker ryan playing down the division there between he and Mitch Mcconnell and President Trump when it comes to reaching this deal does that give you faith that as the House Speaker said theyre working on some of the deals on tax reform and its his number one priority for the fall . Its in their interest to get the tax reform done, theres no question about it. That causes everyone to rise above their differences in the near term. This is a matter of daytoday tactics. You know you have to raise the debt limit, you know you have to fund the debt limit. Theyre going to happen, this is just an issue of over what time periods and how many times you take these votes they obviously disagree with that they would have liked to have kicked the debt limit past it. The president went another place. Its, a, probably not surprising in another picture its surprising it took this long to happen i expected President Trump to reach out to democrats from the beginning and now were seeing that b, we saw what it did with daca. Hes not shy about roiling republican politics. He tossed a grenade into them earlier this week. In the big picture this isnt shocking. John, also the House Speaker there yeah, go ahead. But i also wanted to bring up the fact that speaker ryan did say that some of the democrats are liking what theyre hearing on certain tax issues. I dont know what the specifics of that is, but i dont know what the likelihood you get with democrats being on board with this tax reform package but maybe theres a spirit of bipartisanship. I dont know if its a spirit of bipartisanship as opposed to practicality President Trump and his aides have taken to describing the purpose of their tax bill as to cut middle class taxes and help the struggling families in the middle of the income scale that has not been the effect of the plans that House Republicans or candidate trump proposed in 2016 we know that steve bannon on the inside was talking about dealing with the question about republicans favoring the rich by advocating a higher top rate he appears to have lost that fight, but internally are there changes in the tax plan that make it more middle class friendly democrats would like that better than the earlier iterations of the plan, but we dont know until they lay something out the other point i just wanted to make on speaker ryan, he correctly points out that he would have liked a longer extension of the debt limit, an increase that would last a longer time. Everybody would like that. The problem is that within his caucus republican members will not vote for one thats why they need democratic votes and thats why democrats have leverage to get things that they want. Thats thats one reason we just got a report on the back that the Republican Study Committee has come out against the debt ceiling deal in a letter to ryan chair mark walker outlines 19 ideas for spending cuts that would help republicans secure more republican votes on a debt limit hike let me ask you go ahead you have something on that. I think everyones jumping to quickly the notion that somehow the president has now weakened Mitch Mcconnell and paul ryan. Paul ryan has had a hard time keeping all the republicans together, thats obvious it was trouble for his predecessor as well. If the wing recognizes that if they dont help get things done, the president is going to go play with the democrats, that might actually strengthen paul ryans hand. He needs something to get them to govern and not have all these votes which are, you know, principle votes, im not going to do that well see how this plays out. But ryan talks about a bipartisan approach to all of this hes still the one saying 15, 16 on corporate depending on whose view you take, the president s or the Freedom Caucus does it work as a general statement everything everyones saying about tax reform is really interesting and utterly unbelievable until you see it. Like, you know, i mean, people love to cut taxes for the middle class, theyd love to have a 50 corporate rate theyd love to have investment incentives id love that, too, but how do you do it . Thats what im looking for. Does this speed, leave unchanged or slow the process of putting something on the table in the ways and Means Committee and taking a vote . Because in the end that has to happen. Youre the math guy we look to you for that. Well have to have you back on because today was dominated by the politics of it well talk nittygritty taxes. John harwood, thank you as well. John harwood, thank you as well. Squau oh. Back with the dow down so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. Chances are, the last time yoyou got robbed. An, i know i got a loan 20 years ago, and i got robbed. Thats why i started lendingtree the only place you can compare up to 5 real offers side by side, for free. Its like shopping for hotels online, but our average customer can save twenty thousand dollars. At lendingtree, you know youre getting the best deal. So take the power back and come to lendingtree. Com, because at lendingtree when banks compete, you win. Watching disney this morning, bob iger presented at the bank of America Media conference they had a bunch of comments about upcoming streaming but it was the Earnings Guidance that derailed the stock they see fiscal eps in line with 2015 the shares fell 3 recovering slightly one of the worst laggards on the dow and dragged us down a little further than we were. Long view shall, the news of bundling all of these brands together certainly interesting five or so however years alone, there was a thought that the disney brands might be toxic to the marvell and lucas film customers. That hasnt been the case. Disney has managed to build a big tent taking a shortterm hit on weather and other factors. Only stock thats taking more is goldman sax the financials get hit hard again as the ten year treasury yield drops below 205. New lows for the year. Keep our eye on that. For now lets get over to the half back at hq welcome to the halftime report. Im scott wapner where we are following a number of developing stories this hour. The sudden drop in disney shares plus two key calls on two widely held and closely followed stocks, amazon and General Electric lets get the latest on Hurricane Irma as she bears down on florida lets go to Kaylee Dionne whos with us today. Kaylee the latest update as of noon today. We have 175 mile per hour winds west northwest at 16 Miles Per Hour for Hurricane Irma,