Transcripts For FBC Countdown To The Closing Bell With Liz Claman 20170828

For all that heb and walmart, lowes, and soon to be home depot are doing. So there is much to do, and those are just the most immediate steps. Importantly, this is a place that texas and fema will be involved in for a long, long time. We will be here until we can restore this region as back to normas possible. Or as we discussed in our meeting earlier, we need to recognize its going to be a new normal. Will be a new and different normal for this entire region. But we will not stop until we get as far as we can. I want to provide some important details and then pass the mic to senator. And then to the national fema administrator. I want to explain a couple of details that citizens need to know about. As governor, i have made a state disaster decoration for 54 counties across the state of texas. In order for a disaster decoration to become a federal disaster decoration, it requires certain financial thresholds to be met. Those financial thresholds have been met in 18 counties. There are 18 counties in the state of texas made a federal disaster decoration that the president has granted. With that president ial grant triggers the involvement of fema. Because there are a lot of people in your viewing area who may not know if they are on the federal disaster decoration list, i want to read these counties out for you. Bee county, nueces, calhoun, chambers, fort ben, galveston, harris, jackson, liberty, victoria, and warton. Those are the counties that currently qualify for a federal disaster decoration. Depending on what is learned in weeks and days going forward, there may be more counties added to that list. The reason why this is important is because if a county is on the federal disaster decoration list, there will be an abundance of resources that come from the federal government to aid people in those counties. I want to provide you an address on the website that hopefully you will hear everybody else speak about because this needs to be every persons go to location on the internet. It is disasterassistance. Org. Gov. Im sorry. Gov. Sorry. Thats my fault disasterassistance. Gov. And this is brock who is the national fema administrator who will be reemphasizing that and telling you more about it. I brought it up because Everyone Needs to know this because there are people out there who are desperately trying to get funds they need to be able to stay in a hotel because they have no place to reside. One of the places you can go is to disasterassistance. Gov. Brock will explain more about ways in which people can access the assistance they need. But i want to provide that to you now. I will be happy to in moments to participate in question and answer. But at this time, i would like to turn it over to senator john. Thank you, sir. Governor, thank you for inviting me to join you here today, and i want to join you in echoing the incredible leadership that weve seen here at the local level, here at the county and city level, the mayors, everybody pulling together in a typically texas fashion. A few years ago, i was at the disaster in west texas, and i had a county commissioner come up to me who said texas isnt just a place youre from, it describes who your family is. And i remember that regularly and especially on occasions like this because were pulling together as one family as texans to try to help those whove lost their lives and their families, those who lost their properties, their houses, and those that are and those that are in a bad way right now as a result of a hurricane. But i have to say Governor Abbott and his team working out of the Emergency Management Operation Center in austin, texas have done a tremendous job, but it would not be possible work without the support not only leadership by Governor Abbott but also folks throughout the state and local government. But it is youll hear in a moment from the fema administrator, the federa federal Emergency Management agency. This is going to be a long hall. Were going to save peoples lives. Were going to make sure they have a place to live with sewage, electricity, and the like. But this is going to be a challenge. And in addition to the website, the governor mentioned disaster assistance. Gov. Some people may not have access to internet coverage because they dont have electricity. But if they can make a phone call, they can call 1800621 fema. Did i get that right . Yeah. You sure did 1800621 fema. Thats the first step that people need to take in order to get the assistance through the federal Emergency Management agency. Theyre going to want to have if they qualify. So, again, let me just close with this. Thanks, governor, for your tremendous leadership, and i know President Trump and his entire cabinet have been very forward leaning and very aggressive in their response. But the only way were going to get through this together is the texas family is to make sure that we are latched together at the local level, at the state level, and at the federal level, and i can assure you that we are. Thank you. Thank you, senator. Good day, folks. As ive been saying, Emergency Managements about partnership. And the bottom line is these guys around me, these county judges, these mayors, these First Responders, the disasters always begin and end with these guys. And when their capacitys been exceeded, the governor steps in with his support in providing tremendous leadership and capacity and my support is designed to backfill the governors needs and to make sure that we are here to support you guys, and were going to be here for several years helping you guys recover. I have guys on the ground already here in Corpus Christi and around the area. And while all eyes are on houston watching the unfolding flooding just north of Corpus Christi, were fully aware that rockport took the brunt of a category four hurricane when it comes to the winds and the storm surge. And theres a tremendous amount of damage. You know, to this point, we are continuing to support the life safety efforts. We personally have rolled in 8500 federal Staff Members, people from around the federal government to be in texas and some of those are in louisiana just making sure that were anticipating any additional issues that occur there. Although the 8,500, about 1,100 are out performing searchandrescue. Its my job to coordinate the resources of the federal government. Youve seen the coast guard choppers, were backfilling National Guard support as well from National Guard to we have customs and Border Patrol in town. We have all kinds of people providing security to all types of things that are going on from the federal government. The other thing that youre starting to see is the state of texas, you guys are very capable state. We all know it, and you guys have tremendous capabilities of providing lifesustaining commodities. We are also backfilling that. We have brought in two million litters worth of water, two million meals, tens of thousands of tarps to backfill, and just north of here in rockport, trucks are already arriving. Were pushing them out through the points of distribution on behalf of our state and local partners as well, and this is the way its supposed to work. Were a unified effort, you know, were a team, and we all depend on each other going forward. As the governor said in the 18 counties, its incredibly important, and i want to continue to push this message. The first step to do if you reside in one of those 18 counties under the individual assistance disaster decoration that the president swiftly approved for the governor, start to register now online first. Disaster assistance. Gov. If thats not working, then, again, as the senators suggest, 1800621 fema and start the process there. Additionally, ive got over 1,300 Staff Members connected to the nfip, the National Flood Insurance Program in the state. Obviously, those people are starting to disburse through the state. We would also ask if youre an ffip holder, go ahead and contact your Insurance Agent to active ate your policy, and were ready to go ahead and process claims on that as well. Right now, were also continuing to help with power restoration and, you know, as the senator suggests, this is going to be a very long event. Youre going to get frustrated, youre going to be tired, your routine is going to be disrupted for weeks. We are striving for a new normal here. But femas with you, and were here for you to support you, governor, as well as all the local judges and mayors. Were doing our best. Thank you. A few last things and then some questions. One piece of news, and that is today i authorized the deployment of all of the texas National Guard to address the challenges that texans are facing all the way from Corpus Christi to houston, texas. That would include all of the 12,000 available members of the texas National Guard. We want to ensure that were doing all we can to maintain that safety and security of everybody in the entire state of texas. Lastly, and that is one thing that often say, and that is our lives are not determined by the ways in which we are challenged, but by how we respond to the challenges we face. Every time i see texans challenged, im always impressed to see the way that we respond. To see the way that our fellow texans would take out their own boats and go rescue stranded houstonians who otherwise could have drown. There are so many heroes in houston who literally saved the lives of their fellow texans. The same is true of what happened in this region where the hurricane first hit texas. Texans helping texans. That is what we do as a state. And i dont think anybody does it better. Im so proud to be a texan, and im proud to be associated with the men and women who have helped their friends and neighbors during this catastrophe over this past week. Knowing who we are and what we are, i know that we will get through this even strong than where we were before the storm hit. With that, i would be happy to take some questions. Yes . Marty told fox news that his firefighters are being underutilized as a lack of planning from the city, which is why so many civilians had to take part in the rescues. Have you heard that . Or do you have any information on that . I would have to direct you to the city of houston on that. Governor, obviously still a work in progress, but so far, how would you grade the government . Well, the state of texas has been dealing with the federal government for about seven to ten days, at least, before the hurricane hit. On a daily basis. Frequently multiple times during the day. Ive spoken with the president on multiple occasions with his cabinet members ranging from the secretary of health and human services, homeland security, transportation, energy. Im leaving some out. But also the fema administrator. And i would have to grade the federal governments response as an aplus. This is if not the largest, it has to be categorized as one of the largest disasters america has ever faced. And to see the Swift Response from the federal government is pretty much unparallel. So we are grateful for whats happened so far, but we know were still early in the process. We need to maintain this. But second component of it is the way that leaders at the local level have responded. These are people who are living off of just a few hours of sleep a night. And they have one concern, and that is for the men and women they represent in their towns and counties, and it is because their commitment to the people they represent that that couple with the federal governments response that were doing as well as we are. Yes . Some of your advice to people in houston was seen as contradictory to what the mayor said. Do you think people in houston should have evacuated . Decisions about evacuation are something that are behind us. We are where we are right now, and we need to focus on first protecting life and doing all we can to rescue those who are in danger. Second, get them to an evacuation center. And third, help them build a bridge to where their feature would be. Two more, everyone. Whats the biggest challenge . Well, listen, the biggest challenge, first, is making sure we get every person to a secure place. And then second, is going to be the long period of rebuilding our communities. Thats something you cant just snap your fingers and make happen. Its something that everybody that you see up here together with us. Were all going to be in this together. And its going to take a long time doing it. And so we will need the patience and cooperation of everybody in this region as we go through that process to rebuild the community governor, have you spoken to mexican officials, have they offered support . Yes. I personally have spoken with mexican officials and my staff has also spoken with officials from the government of mexico. And, yes, they have offered assistance. In what way . They said in whatever we need, they said whether it could be boats, whether it could be food, they said that they have been participants in helping with katrina, and they were going to give some more precise ways that my staff will be communicating with them about specific needs. One more right here, and then were out. Governor, about rockport, what will be offered to those residents who are still there, have lost their homes, their cars. Will they be moved to a shelter, but said somewhere else venezuela . Whats the plan for those people . Im going to answer some of that. You have come here, you may or may not know, but we will be departing here going to rock part. So i will see firsthand what challenges they are facing. But you mention buses. We do have buses available where we are evacuating people, and there are multiple locations. I personally greeted people who got on those buses from Corpus Christi and other areas around here that went to san ontonio. There are also buses that go to austin, to dallas, to other locations. So there are multiple evacuation centers. People can get on buses and go to at no charge. So thats one. Two is for those who are still here, there obviously is a need for food and water as quickly as possible. We will be establishing its not already established, which i think it is. Points of distribution for water and all the supplies they need. Separate from that, part of your question must be answered by the fema administrator. Sure. So let me take a second to explain this goal. The state of texas is about to undergo one of the largest Recovery Housing missions that the nations ever seen. Once you start to wrap up the life safety mission, and youre moving citizens who may be trapped or isolated, youre trying to get them to a shelter. Youre trying to minimize the time that they spend in that shelter, and the governor proactively turned on whats called the Transitional Shelter Assistance Program under individual assistance. This allows anyone in a shelter or someone who does not have financial means thats within these 18 counties to be able to receive assistance to hopefully find a hotel or motel or to be able to eventually rent. The goal of this is to if we cant put you back in your home because its destroyed or because the floodwaters are there, and theyre going to be there for a while, we want to get you out of the longterm sheltering, we want to try to find, you know, rent them if youve got them is kind of what we say. Lets try to rent out, you know, different facilitates and be able to place people in those types of places. And in some cases, we have to look at alternative, you know, Housing Solutions as well, and then the last resort is to bring in manufactured homes and travel trailers, which we are utilizing the defense production act to help us purchase and have priority to be able to amass those, bring them into the state. But that is a long process. We dont just start dragging in manufactured homes and travel trailers right off the bat. Theyre not going to be on your property tomorrow by any means. This is a process where you have to be into the individual assistance. The goal is to try to find you a temporary a lasting solution that works, thats within, you know, where your job is. And thats what were working on. So its a long process. Housings going to be very frustrating in texas. And we have to set the expectations. But we already have disaster Housing Assessment teams onsite. Were already working in a very proactively with the state. I just got off the phone with secretary carson at hud. Theyre going to be actively involved in this as well. Thank you, guys. Thank you. Thank you. All right. That was Texas Governor gregg abbott with the latest on Tropical Storm harvey. He was joined by fema chief and texas senator. Giving a state of the state. Focusing on the basics here. Food, water, supplies, and returning power to hundreds of thousands of people. Praising the response and rescue teams for their leadership giving the federal government a grade of a plus for their help and adding that texas and fema will be on the ground for a long, long time. Thanks for joining us, everybody, im Lauren Simonetti in for liz claman. This is countdown to the closing bell. Lets get straight to our storm chaser jeff flock on the ground in houston, the epicenter of all of the destruction, surveying the rising water and the flood as you have been all day. Jeff, you know, youve seen some of the deadliest and the costliest storms in our nations history. What youre seeing today, how is that stacking up . Ive been to a lot of disasters. Ive been to every major hurricane since the mid80s. Ive been to floods. All sorts of natural disasters, but ive got to tell you, this one i believe just because of the enormity of this. And it struck me and, by the way, were onboard as boat here as local authorities, the constable of Harris County here goes through and try to make sure that everybody in this neighborhood is out because we still have an unfolding disaster. What was striking me as we listen to the governor and the fema administrator and senator, you know, typically you would be talking about cleanup right now. Well, now were talking about still an unfolding disaster. And constable, youve been through this neighborhood. You think you got everybody out. You tell me people are staying in this neighborhood . Youll see them on the second floor window. They say they want to stay here. Theyve got enough food and water. As long as they want to stay, theyve got enough food and water until this water goes down, were just letting them stay there for now you dont pull people out or anything if they feel secure, were going to let them stay there so folks in that window. If youre able to see that window there with the curtains are tied up. You okay . Thumbs up youre going to stay, huh . So far. Theyve got their address put there, i guess, in case you know, they were telling people to put your name on your arm just in case you had to be identified. Thats a little scary. But rocks right here, imitation rocks. Theyve got snakes, little coral snakes floating on them and stuff like that. Its really dangerous out here people walking through this, this is not a good idea were telling people not to walk through this. This is crazy. The bayou is so close to us, i mean, theres snakes and all kinds of other, you know, animals and stuff like that. Yep. Yep. Guys, this gentleman, by the way, volunteering his boat to bring the constable out, and thats what houston has been doing, in addition to First Responders. Houston is saving itself through this one, and i just leave you with a picture that we wouldnt be able to get otherwise on a boat. Its what this looks like. This is rough stuff, folks. Thats the latest. Jeff, thank you so much for bringing those pictures to us. And please thank that gentleman him volunteering his time for us. What youre seeing from jeff flock, at least 2,000 recoveries, were still in the rescue mode right now. I mean, you saw the woman in the top of the house over there with a sign this is my address. Theyre being told to put their names on their body. Thats just unprecedented, historic, epic situation that Tropical Storm harvey is. Houston, as you can see under water as the storm dumps 15 trillion gallons of water on texas, and guess what . More is on the way. No let up for the residents of the Lone Star State in what could rank as the most expensive natural disasters in the nations history. So far, the deadly storm taking at least five lives. But that could change as the rain could last most of the week. 50 counties expecting 50 inches of rain by thursday. The roads are impassable, the power is out, the oil refiners are closed down, the stores, restaurants, everything is closed. Houstons two main airports are also shut down as authorities focus on the safety right now of the residence. The government is expecting 30,000 people in local shelters. 450,000 to seek disaster assistance, insurance companies, they could get hit hard, gas prices across the country. Not just in the region. But across the country, theyre going to rise as President Trump prepares to view the devastation firsthand tomorrow for himself as he heads to texas. As were talking about the Economic Impacts on all of this, businesses both big and small, theyre struggling right now. Just announced, all houston port facilitates, theyre going to be closed tomorrow. They were shut today because of the destruction of the Tropical Storm, but its going to last. And the impact is going to be more than just on at that local economy. Thats why were going to bring in the executive director of the port of houston rodger joining us now by phone. First to you, sir. Thank you, and i hope everybody in your family and friends are safe. If you can characterize the situation on the ground right now for us well, lauren, thanks for having us out. I just want to first say that our thoughts and prayers with those who have been severely impacted, youve been hearing from the governor and the senator about this storm. Not only in our region, but along the texas coast. And after this rescue efforts done, were going to look forward to recovery from this significant event because the safety and the security of our people is the main priority. So it is a significant event. One, all of these storms are different for our region. Were preparing for a direct hit. We didnt get that, but we got something very significant in terms of rain. And its not over. Weve got a Tropical Storm sitting right off the coast right now, and its going to keep coming. The port of houston is the largest in the state. 1. 2million jobs, 265 billion in economic output. These are just numbers. But if you could kind of just describe what exactly is offline right now and the affect it could have and then when do you think you could bring this back online well, you know, lauren, this is not only to the state, but its the busiest waterway in the nation. And 25 of the gasoline is produced here, largest petrol industry in the nation. And it has been shut down since friday at noon. And the channels still shut down. Weve closed public facilities, as you mentioned the Container Terminals in the facilities that the port runs through tomorrow. And take data by day. But if you think about the dependence on vessels in this busy waterway 40 or 50 vessels a day are coming to this port, and we havent seen any since we took them all out on friday. Its going to be quite a recovery are any of those sitting in port with critical supplies on them that could be used to help people . No. Basically, on friday, the captain of the port issued a condition whereby ships had to vacate. They do better at sea than they do at docks in the event of high winds. Theres a few left, but primarily its going to be a prioritization of vessels whether its crude, tankers, or feedstock to refineries or container ships or bringing supplies and, you know, domestic goods, consumer goods, or ready for export and some of the product thats produced here. Theyre all waiting outside, and when its safe and secure and determined by the coast guard, then well start that process rodger, thank you so much. Best of luck to you, and please ceps updated with your progress thank you, lauren. Lets get in a quick market check here. Were not seeing dramatic moves, despite the major events along the gulf coast. Well off session lows. Down 18 points at the moment. The nasdaq is down higher for the first time in four sessions. Its up 14 points. Let me show you some of the stormrelated stocks today. These are moving higher as investors anticipate a pick up in business as residents start to rebuild and repair their homes. Were not there yet, but these stocks will see a bump as that begins to happen. Sheetrock makers, and Continental Building products sharply higher. Hardwood flooring maker that stock hitting a two and a half year high. Up almost 5 today. Also getting a boost . The provider of lumber and sheet products. Builders first source. That stock up 5. 5 . Youre going to see damage to the rooftops. Thats going to raise damage to owen installation and roofing products. Owens hitting a new high today. So these are some of the stocks that are doing well. Were seeing a different picture when it comes to travel for the airlines. Harvey grounding flights at both of houstons major airports right now. Nearly 1,500 Flights Canceled at the main airport, the hub for United Continental and the smaller airport hobby as well. This combines inbound and outbound trips 5,000 trips canceled, most of them because of harvey. So as the airlines grapple with the chaos coupled with one of the most powerful storms we have ever seen, are the stocks reacting to all of this today . Lets go to the New York Stock Exchange and Nicole Petallides with that side of the story. Hi, nicole hi, lauren, were seeing the market to the downside because nasdaq news on the green, the dow is down 20. And we have different sectors reacting to harvey, more so than the general market. We know energy is on the move, weve watched everything from shipping. And now taking a look at airlines. Airlines have been under pressure for the most part today with the exception of delta. You can see southwest airlines, up 1 and as we noted the two houston airports very busy airports as were looking at the two of them that is the houston bush intercontinental. Both of those have seen the cancelation and these particular now companies have to deal with the cost that theyre going to face. Of course, all the people that have had flights going in and out, those have been now canceled almost 5,000 since last week. And you can see here a mixed bag. But whats interesting whether or not youre going to have to pay any fees or anything like that, all of the big airlines have waved the fees for the travelers that were ticketed to fly in or out of the region. But no one knows the extent of the damage of harvey, especially since this wont be over until the end of the week. So each sector will have to digest its own news. For example, we know that the retailers and the insurers and in this case the airlines. So it will be one by one as we break it down. But the major markets holding on pretty nicely. The dow down just 20. Lauren all right. Nicole petallides, thank you. And of course whenever, and its expected on thursday, and that could change. When the houston airports reopen. They have to make sure that they can get the staff there. Lets take a look once again. Dow down 20 points on this first day of the trading week. Harvey has dumped 15 trillion gallons of water on texas as businesses and residents struggle to survive. Hillary vaughan live in texas for us. Shes going to tell us how the people there are dealing with this once in a lifetime epic storm. This is the type of storm that people are going to talk about for years to come. Countdown coming right back so let me get this straight. Youre a rabbit . Im vern, the orange money retirement rabbit, from voya. Riiight. And that means. . Im the money you save for retirement. I help you get organized so your money could multiply. See . Got it. Whos he . Hes green money for spending today. You know, paying bills, maybe a little online shopping. Makes it easy to tell you apart. That, and i am better looking. I heard that. When its time to get organized for retirement, its time to get voya. Over 2,000 people have been rescued from texas so far. Hundreds of urgent requests still pending. Local police as well as the coast guard and even new Jersey Task Force one, helping all of those stranded by Hurricane Harvey. Hillary vaughan joining us right now from houston, texas to tell us how long these rescues are going to last for. Hey, hillary. Hey, lauren. Well, theyre on going that theres no sign after the rain is stopping. And as long as the rain is coming down, the floodwaters are rising. Weve been walking through this neighborhood with bill and scott up from dallas helping out, helping rescue people in this neighborhood and just in the two trips that weve already taken, the floodwaters have risen about i would say 12 inches. So what i want to im here with scott today and what i wanted to talk to him about is what youre seeing and the kind of reception youve been getting. Youre in the first and last line of defense for these people. Yeah. Some people cant stand the stop of leaving their home. How many rescues have you made today . Me and other people probably between 35 and 40. Kind of explain your decision to come up here, bring your own boat and how did you get looped into really getting involved . One of the people in our company said, hey, lets do it. Ive got some john boats and then next thing we knew about six hours later we were headed to houston. This is one of the efforts thats underway all across this area. The reason why this neighborhood is particularly hit hard and why the floodwaters are so fast is because there is a creek and a dam on the western and northern side of this neighborhood and a lot of those floodwaters are coming in and creating kind of like a bathtub effect. So you can see, theres a lot of rescue efforts underway in this neighborhood alone. We walked with bill and scott, rescued an elderly couple with their dog. We just dropped off a family, two children with their cat and their dog, and theyre headed back out to do it again because there are people still inside that arent able to get out. And First Responders arent always able to get in with their equipment, so people are really volunteering their time, volunteering their boats, going out there and helping people wherever they can. Lauren. Yeah. Thats the texas spirit. Ive been in houston many times and what you are describing is how the people are there. And its interesting because if you look at houston, were expecting much more rain throughout the week. If you go northeast of houston, 12 to 20 more inches of rain is expected. So this is a situation that will get worse before it gets better. Hillary vaughan on the grounds right there. Stay safe and thank you for bringing us that. Lets take you to blake burman right now because President Trump has been getting briefings on this most powerful storm to hit the u. S. In a dozen years and tomorrow, hes going to visit texas to survey the damage himself. But, blake, right now, its all about Foreign Policy at the white house. Thats where the president is meeting with finlands president. Ahead of the joint News Conference at the top of the hour, we expect the president of finland to arrive any moment now. He might be there right now. Blake burman, how are you . Doing well. The finnish president is indeed here at the white house with President Trump, lauren. Expect a News Conference between the two leaders in about a half hour or so from now. And i can tell you right off the top, you can expect from President Trump comments related to Hurricane Harvey. This will be the first time, of course, we hear from the president on camera since this storm. We know hes been out there on twitter tweeting the like. But we do expect the president to address Hurricane Harvey and then also questions from reporters, two from each side that will be posed. Presumably the president will be asked about the on going efforts there. As for the issues that these two leaders will talk about, according to folks at the white house, you can expect afghanistan to come up, finland has a monetary commitment to afghanistan. Other military issues, the two countries, the United States and finland have a joint exercise later this summer. But also, russia, of course, as you know. Finland, russia share a border. Vladimir putin had met with the finnish president they really year. Now President Trump gets his turn right now in that News Conference in about a half an hour or so. Lauren. And were looking at pictures of the meet and greet, if you will, moments ago. Thank you. Thanks. The president s News Conference, thats coming up at the top of the hour. Coming up after the bell, so stay in with fox business. And tune in to lou dobbs tonight. Stuart varney is in for lou with more coverage on the dramatic event unfolding in houston. That at 7 00 p. M. Eastern time. Well, its far too early to assess exactly the cost that the rain from Tropical Storm harvey continues to pound texas. However, here are the estimates. You can see as little in quotes as 30 billion in damage to as much as 100 billion. To put this into perspective for you, hurricane katrina, that was the most expensive storm ever clocking in at 160 billion of damage. Based on that, harvey could fall somewhere in the top five most expensive storms. Joining us now to discuss, analytic ceo, fred. This is a whopper we have on our hands. Wow. This is one for the books. Theres no doubt about it. Of course, our hearts and our thoughts and our prayers are with those who are struggling to be rescued at this point to those who have lost their homes. And were still in that rescue effort right now. But when can we know the damage that were expecting to see . When can we better be able to tell . Is it at the end of this week . Are we going to have to wait longer . You know, i think that if you look at past storms that have occurred, youre looking at several weeks before we know the full extent of the damage. I mean, well know more after this week, but youre looking at the fourth largest city in america with over 4 million People Living around it. And we ought to know what percentage of those areas have been affected. Were looking at a im sorry. Go ahead, fred. Oh, no. I mean, so, you know, in terms of the business side versus the personal side, they tend to be very different. We were looking at a citgo station obviously under water. And, you know, if you look at the Energy Aspect that is houston, that is texas, houston is responsible for 31 of the economic output of texas and texas is responsible for a tenth of u. S. Economic output. So this is a powerhouse of our country that will be devastated. Yeah. I mean, you know, it really depends, again, on how many areas. What percent of that 4 million is really affected . We just dont know right now. So were seeing it unfold, and its obviously going to be the biggest disaster that weve ever seen in america. But not all areas of houston are under water. So what parts are going to be able to come back rather quickly . What parts are going to take months or years to rebuild is what well be finding out in the next several weeks. Okay. Were hearing that 50 counties could see 50 inches of rain. The flood damage expected here is expected to equal that of katrina, which was 15 billion. Now, as i understand it, the issue is the federal government, which many people get their Flood Insurance from, doesnt have the money for this. Well, yeah. I mean, they are 25 billion in the hole now for their Flood Insurance program. So if you assume that about a quarter of People Living in houston have Flood Insurance, thats threequarters that dont. And so where are they going to get that money from . And clearly, the federal government is going to be leaned upon to pick up a big part of that tab. And yet their own Flood Insurance program just from sandy as well as katrina are already 25 billion in the hole. So clearly, the federal government is going to have to find more ways to put money i in. Meteorologists, fema, theyre saying this is epic. There is no forecast for this. Do you think it could reach the cost of katrina at 150 billion . Oh, i think its going to be more. Just because of the size. I dont know what new orleans is in terms of size of cities. But its way down the list, you know . Youre looking at, again, americas fourth largest city. You just said 30 of the economy of texas, which is our biggest state or second biggest state comes out of there. Just the geographical area and number of people i think katrina will look fairly small compared to houston. Yeah. And just to refresh peoples memory, katrina august of 2005, there were more than 1,800 deaths. But 80 of new orleans was flooded and 95,000 people out of work. So the question is does this become a National Issue . Does this damage start to affect our gdp; right . Yes. And we just dont know. I mean, from a retailing point of view, the impacts are fairly localized and fairly concentrated. So the bulk of the tab is going to be in loss productivity just from businesses. Mainly Small Businesses, by the way. Right. I think that are going to be hurt the most. So if youre a Small Business owner, youre pretty much going to be crushed by this, unless you have some type of insurance. All right, fred, thank you very much for your time. Thank you very much. All right. Well, as the random flooding of Tropical Storm harvey continue to wreak havoc on the nations most Important Energy hubs, multiple key refineries along the gulf coast shutting down. So far, ten major plants in the houston area as well as Corpus Christi, theyve closed. That includes exxons baytown facility. That is the second largest refinery in the United States. The ten plants collectively. They have the capacity to refine about 2 Million Barrels of oil a day. How is all of this impacting the price that you pay at the gas pump . Lets go to the floor of the cme. Weve got todd and phil standing by. Give you each 20 seconds here. Phil, what do you make of the oil market today . You know, i think really they were focused on the refineries being out and demand destruction and oil prices are down. But we are getting good news. Theres two refineries in galveston that are going to attempt to restart. And weve actually seen production come back in the gulf of mexico. So the u. S. Energy industry is amazing. We look at this devastation, and theyre already planning a come back. And todd, futures spiking today. Yeah. We did get that spike earlier this morning. We saw a little bit of a retracement. But i think ultimately its about getting those refineries back online, a lot of the data were getting is still very skewed and unclear. However, if you look at the price of oil, the fear factor not priced or the markets looking for some kind of recovery in the shorter term than what were hearing out of news reports. Todd, please stay with us. President trump meeting with the president of finland right now. Lets listen in. Thank you ill be going to texas tomorrow. I look very much forward to it. Things are being handled really well. The spirit is incredible of the people. The coordination between all the Different Services as you know has been going very well. Great respect for the governor. Hes done an incredible job, and i look forward to the trip. So ill be going there tomorrow. Were leaving at about 8 30 in the morning. We dont know exactly what sections. Well be notifying you soon. But well be traveling throughout certain parts, and we may actually go back on saturday, depending on where the storm goes, we may also go to louisiana on saturday. The biggest ever. Theyre saying its the bisque, historic. Its really like texas if you think about it. But it is a historic amount of water, in particular. Theres never been anything like it. So the people are handling really well and the people of texas, as you know, have really persevered. And as you watch the spirit and the enthusiasm and helping each other, the team work, its really been something for people to say. I think even in finland it has been incredible what theyve been able to do. We have noticed that. Yes. Its wonderful. So well be leaving tomorrow at about 8 30 in the morning. Well, weve done quite a few cabinet meetings to make sure everythings coordinated. Were dealing with congress, as you know. Its going to be a very expensive situation. We want to take care of the people of texas and louisiana when that happens. Well see what happens with the flow. The flow seems to be heading toward louisiana right now as we speak. But well be there for the people much louisiana also very much. So well see you tomorrow, and i guess youll see both of us in a couple of minutes in the east room. Thank you, all, very much. Thank you. All right. That was President Trump speaking about the situation in texas calling it historic, obviously, coordinating their plan for tomorrow with many cabinet members in the white house. Lets bring back todd and phil who are watching the oil market because this is very much where the story is today. So, flynn, if you look at our offshore operations, the platforms and the rigs in the gulf of mexico, how have they been affected . Well, i mean, you know, just yesterday over a quarter of both oil and Gas Production were offline. And because the storm has moved inland, the u. S. Energy industry, theyre out in the gulf of mexico. Theyre bringing some of these platforms back online, and weve actually seen a big improvement from yesterday. Both oil and gas are now about 18 offline. Thats an improvement of about 6 for gas and 3 for oil. So theyre already working hard. And this is incredible because were going to need this oil and Gas Production to come back online to help rebuild houston, and its amazing how they can do this. Now, theres also good news on the refinery front in galveston. Two major refineries that were shut down. The damage was not as bad as feared. Theyre getting ready to restart. Now, if we can get the houston shipping channel to open so that we can move it, we might actually see some of the impact not as bad as feared. Yeah. Thats interesting, todd. Because if you really center in on houston, so many of their gas stations are either out of gas or out of water, and the trucks cant get it to them. What do you do in a situation like this . How much higher are prices going to go . Well, yes, youre right. Logistics are going to be an issue. But when the water subside, and i think they can get a better assessment of whether theyre going to go, the cost of what its going to be to have to rehab and refit many of these stations, its all going to come in the next couple of days. To throw out numbers we heard anywhere from 30 billion to over 100 billion right now is a little bit reckless. So i think we need to wait and see where things go when time goes by. We havent had that time yet. Certainly, we want to wish everyone out there a debt of gratitude whos providing service and volunteering for those in houston. And right now until we get past that, i think its not going to be real clear as to the cost. And that will be the bottom line. All right. The refiners putting in a good day today. Todd, phil, thank you so much for your expertise today. Well, the closing bell rings in about six minutes from now. Insurance companies in line of fire as harvey destruction continues. Were live at the New York Stock Exchange next with the report on this sector. Countdown coming right back you know how painful heartburn can be. For fastacting, longlasting relief, try doctor recommended gaviscon. It quickly neutralizes stomach acid and helps keep acid down for hours. Relieve heartburn with fast acting, longlasting gaviscon. I had frequent heartburn, but my doctor recommended. Prilosec otc 7 years ago, 5 years ago, last week. Just 1 pill each morning, 24 hours and zero heartburn. Its been the number 1 doctor recommended brand for 10. Straight years, and its still recommended today. Use as directed. Lauren closing bell rings in less than three minutes. Nasdaq up 14 points. First time in four days. Dow down 13. Breaking news right now. Freddie mac says number of mortgages it guaranties reached 167,000. In 18 counties affected by harvey but the number could grow if they identify additional counties. Both texas and louisiana need help. Shares of property and casualty insurers take a hit what could be one of, if not the costliest disaster in history. Go to the New York Stock Exchange and Nicole Petallides. Were watching these insurers because now as we talk about this we have to watch those, particularly those with exposure to texas. 15 trillion gallons of water have fallen on texas. We know that will continue. Taking a look at names with texas exposure, like all state, united insurance. Allstate down 1 1 2 . But the extend of the damage cant even begin to be calculated at this time until later in the week. Obviously well start to get some more but we all remember katrina, 2005, 80 billion. Sandy 2012. 36 billion. Well see where this stacks up in the money side of it but obviously a catastrophe any way you describe i had. Back to you. Lauren Nicole Petallides. Thank you. We have a Kathleen Fisher from bernstein just to spin this forward a little bit. It is the summer. Volume is very light, 20 below the onemonth average but we have major market moving events this week. Yes. We think the numbers will be pretty solid. There can be lots of blips along the way. Fundamentals of the use global economy. Lauren august gdp and jobs report. Exactly. Lauren you like other countries to invest your money. Where are you optimistic about . We do. We have a sin crow necessaritic global recovery. It helped european and emerging Market Companies benefiting from Stronger Economic growth and export growth as well as local companies overseas. Valuations are better than the u. S. And we think there is a Good Opportunity to keep investing in overseas markets. Lauren speaking of the u. S. , your good luck charm, zap has turned positive. Dow was down 48 points at low of the session t could be higher close. Who knows. Kathleen fisher, thank thank yor your perspective this morning. Thank you. Lauren we have a lot to look forward to. [closing bell rings. Ashley webster, Cheryl Casone. Cheryl a busy news day. Were well off session lows at least. S p is fighting for gains in the final moments of trading. Nasdaq closing solidly in the green. Im Cheryl Casone in for melissa francis. Ashley im Ashley Webster in for david asman. This is after the bell. Well have more on big market movers. Here is what else were covering this very busy hour. Houston, americas fourth largest city crippled by unprecedented floods. Can you believe this . Overwhelmed by more than 11 trillion gallons of water. Turning streets into rivers, the rain is still coming down. More than 30,000 people are expected to use city shelters