They keep him gas surges to the highest in 2 years that would be gasoline petrol Hoyle declines is flooding from Harvey inundates refining centers all along the Texas coast it's shut down 10 percent of the u.s. Fuel making capacity u.s. Stocks had been mixed now edging into the green paltry come March regardless of strategies tells me he still sees some opportunities in and merging markets on the debt side and on the equities side especially with regard to longer term real estate and private equity This is nice info that is 1st of all on the Sean Combs site that fed these looks like it is going to mean d.c. So you see me cannot afford to reduce exposure pointis is too much because the util is going to strengthen even more than that case so in the emerging markets I getting a pass from the devil of a country central banks we check the markets every 15 minutes or at the trading day here on Bloomberg Radio s. And p. $500.00 is up a 10th of a percent up 3 The Dow Jones Industrial averages a little change down 14 while the Nasdaq is up 4 tenths of a percent of 25 the 10 year is a little change the yield 2.17 percent West Texas Intermediate Step 2.4 percent or 4672 a barrel Gold's up one per cent at $131050.00 and Alex the ends a $1.92 the euro $1.95 the pound a $1.29 business watch Bloomberg Markets continues with Lisa into him thank you so much Greg Jarrett it is that time of day we're taking a closer look at small and mid-cap shares and looking right now at the Russell 2008 is here lining and I'm wondering whether there's something more going on underneath the surface and of course the person to tell us is Dave well simply Mark Sachs editor and columnist as well as blogger at am live go on the Bloomberg Dave what is going on under this incredibly calm surface Wow a little bit more turbulent than what we're seeing with larger companies if you want to put it that way because the Russells up to 10 percent of the s. And p. $500.00 is only higher. By a 10th of a percent cancer drug developers in the Russell are climbing after kite pharma agreed to a Levin point $9000000000.00 takeover by Gilead Sciences telecom pharmaceuticals is ticker is b l c m has risen 60 percent in Talia therapeutics ticker and t l a as advance 14 and a half percent Bloomberg biotech or blue is up about 10 percent and pharma by the way the ticker on that one kite has gate 28 and a half percent that's the 2nd biggest advance in the Russell the largest also belongs to a takeover target the chip maker Ixus whose ticker matches its name I x. Y. Yes it's up $36.00 and a half percent after agreeing to be bought by little fuse for about $750000000.00 in cash in stock now one of the Russell steepest drops belongs to the shoemaker and retailer Jeanette's goes to Korea's g.c. Oh it's down almost 9 percent after being cut to neutral from the Kona by it's a square Hanna and now 2 boats to go m b u u as lost 6 percent the maker of recreational boats was lowered to neutral from Buy b. Riley thank you very much Dave Wilson blue work stocks comma send him an email sign up for his daily free e-mail newsletter just write him an e-mail at the Wilson at bloomberg dot net our let's turn our attention now to a new chief executive for an a perhaps $28200.00 rather $200000000.00 pay bonus and here to tell us more is the man deep thing he is our technology analyst for Bloomberg intelligence man deep Always a pleasure thanks for coming into the studio and Daraa cost Rochelle he is tapped to be the new chief executive formally of expedient formally of Barry Diller Allen and Company Brown University what can you tell me about the challenges that Darra faces so clearly he is a very qualified candidate he has proven himself at Expedia you know scaled expedience from less. Small online travel agent vendor to the largest vendor by bookings and I think what he'll find is he can repeat the same playbook over here because when you think about Hoover there's a lot of similarity with online travel companies you know we're also deals with price conscious customers it has the same kind of now for a good fax as an online travel company does it has to overcome regulatory hurdles which online travel vendors did as well so there's a lot of similarity and I think I feel personally who were is where o.t.s. Vendors like expedient Priceline were 10 years back so he can repeat the playbook where did he come from in the running for the new c.e.o. Because I heard a lot of me to be the potential new chief executive here including Meg Whitman I did not hear his until this weekend I was as surprised as you are Elisa he definitely was not in the running or at least no one heard about him up until Sunday where Meg Whitman It seems the board couldn't agree so that's the thing about Hoover is the board is very small and it's divided into 2 parts one pro co-founder Travis County like the other one isn't not supportive of him and I think it came to a point where Darren was the least offensive choice somebody who could pacify you know both sides Well that's the least offensive I don't think of Jeffrey Immelt and Meg Whitman necessarily as being offensive but whatever it is that floats your boat I mean I guess that the other question is a political question and you know we know that. That Hoover has come under fire for some controversial political leanings and dark comes in and has been an outspoken opponent of President Trump does that matter at all to I think it does because Hoover is a global company. Think about it it's operating in you know woold wide 83 countries and as a global company you can be very narrow in your views so the c.e.o. Really sets the bar and I think it's a good thing for her to have such a c.e.o. Who is vocal about these kind of things and really I think is setting up a good precedent if he carries on that way one of the issues I believe that right now has to do with the lawsuit that has been filed by benchmark about Travis Kalanick having a hand in appointment of 2 additional board members does this make it easier to solve this or I mean is is this and we're just going to wait and see what benchmark thinks of the new c.e.o. Yeah we'll have to wait and see the board structure like I said is very complex but based on how he has run expedient on my gut feeling is he's going to diversify the board he's going to add people who have experience running $1000000000.00 plus companies this board is very new right now 5 appointees are new you know they've been over for less than one year so he may want to add people who have that experience running a multinational multibillion dollar company and I think he also needs a c.f.o. Bret that's the other vacuum that is there in the company there is no c.e.o. There is no c.f.o. So maybe one of those 2 guys could be on the board as well. So the price tag for this new chief executive officer is quite large. Again it's a tough question because obviously he had a lot of options. In expedients so to get a guy like bad who has been running the company successfully for 12 years yes you've got to pay up but that's not a problem for over has all that you know cash and they can attract any candidate so it's really about getting the right one so $200000000.00 which is the currently reported feed at the. I'll have to pay their new chief executive to leave Expedia That's a drop in the bucket for them I mean it's not a draw but they can you know rest those options they can create a package for him that kind of vessel over time and I mean in the grand scheme of things it's not really a big deal just as I'm just taking a look at the Bloomberg at the cash at the total compensation cash non-cash and so on $31600000.00 for a car cost for 0 shocks he had like speech here you just want to keep saying the name show me that you can say it and I'm going to try Bloomberg Radio saying thank you so much for joining us Monday's thing is industry analyst covering technology for Bloomberg intelligence and he joined us here in our Bloomberg 1130 studios right now let's go get a check on world and national headlines with Nancy Lyons the Bloomberg $9091.00 News I'm in Washington d.c. Nancy thanks lisa damage from Harvey could reach the 10s of billions of dollars when disaster modeler Chuck Watson with the research tells Bloomberg the cost could mount to $30000000000.00 When you look at the impact on the labor force the power grid transportation and energy about a quarter of all oil and natural gas production in the Gulf and more than 10 percent of u.s. Refining capacity has been shut down crops livestock drinking water they are all under threat and rail shipments near Houston have been delayed Well nearly 30000 people have been displaced by the flooding which is expected to continue throughout the week Houston officials say there have been 2000 water rescues in that city alone and hundreds more need help Texas governor Greg Abbott tells c.b.s. This morning he and fema director Brock long will be touring the hardest hit areas later today this is going to take years for us to be able to build out the repairs that are going to be needed to overcome this flooding and hurricane disaster President Trump in the 1st lady are scheduled to visit Texas tomorrow details of that trip still being worked out the American Civil Liberties Union is filing a lawsuit challenging President Trump's. Ban on transgender individuals joining the military the federal lawsuit stone versus Trump was filed this morning in Maryland on behalf of Petty Officer 1st Class Broadstone an 11 year Navy veteran who served in Afghanistan the lawsuit says Trump's policy violates the equal protection rights of transgender service members who now have grave reason to fear for their careers Global News 24 hours a day powered by more than $2700.00 journalists an analyst in more than 120 countries I'm Nancy Lyons. Thank you Nancy from the Bloomberg 960 News Room I'm Greg Jarrett and I'm 60 market driver supported by your Bay Area Mercedes-Benz dealers and the 2800 with a suite of innovative technologies it's one of the most intelligent cars on the road go to m.b. USA dot com or visit your local dealer to test drive one today though a rally described as anti Marxist by founders and all right by opponents was cancelled yesterday a few conservatives showed up anyway only to be overwhelmed by all right protesters some of the majority were black hoods and attacked the smaller group police were visible in large numbers according to media reports from the scene 13 of the violent protesters were arrested according to Berkeley police thousands in the South Bay spread a message of love acceptance and tolerance during the annual Silicon Valley Pride Festival yesterday downtown sounds it was full of crowds gathering along the parade . Area Business Times 812 times the Bloomberg Bay Area and d.c. Sports update lots of stuff in social media about the Niners looking good Jeff Biggs What do you think. Well enough not to bed last night Greg you know we're not going to see the 40 niners on Sunday night football during the regular season but we did last night from Minneapolis where the Niners actually led 31 to 17 in the 4th quarter only to allow the Vikings to end up coming back to win it on a walk off 2 point conversion with no time left 32 to 31 but Brian Hoyer as you mentioned looked very good in the 1st half throwing for 176 yards and 2 touchdowns . Often still a great after a rough start to the preseason but before the game Niners safety Eric Reed back in the headlines read decided to kneel for the national anthem even though he had said he was not going to do so what Collins did was a peaceful protests fueled by faith in God to help make a concert better place and I feel I need to regain control of the narrative and not let people say that what we're doing is wrong or came because it's not just conclude American we're doing because we want equality for everyone comes to be a better place so that's why it's such a process that Ayers will wrap up the preseason Thursday night against the Chargers it was a lost weekend for the Giants they were swept out of Arizona 11 to nothing but how about the A's lowering the broom on the Texas Rangers 8 to 3 cotton beating former aides starter a.j. Griffin I'm Jeff Biggs that you Bloomberg Bay Area n.b.c. Sports update they can Jeff Berry Business Times 814 traffic and weather next on Bloomberg 60 I'm Greg Jerry. From the Oval Office politics learn more Redhat tame today tomorrow. Bay Area Business Times 816 time for the Bay Area's best traffic and weather every 15 minutes we had a few early problems Larry and things settling down a little bit and you kind of let's go out to slaughter County West 80 north Texas left lane shut down for a problem that was East 88 North Texas they're doing some emergency guardrail repair work there in the left lane West eighty's jammed all the way to them from the 505 interchange over to North Texas doesn't get any better the Bay Bridge lights are on we are stacked up in the maze and getting to the Bay Bridge on Wednesday to going to slow and go from Highway 4 to the span 30 minute delay getting to the Richmond Samara fell bridge 5 us going to be clogged up from 23rd as you travel on over to the toll plaza your Bloomberg 3 day weather forecast more such up today especially hot in the inland areas triple digit temperatures sunny and hot through Wednesday with the Bay Area's best travel aerials of Bloomberg not 613.7 f.m. H.d. To go rake indeed thank you Larry Olsen let's look at the city right where I'm at now it's fair but it is hazy we've got some some pollution issues going on when's west southwest at 5 miles an hour and there's a lot of water droplets in the year to collect that particulate matter humanities 96 percent Berkeley $62.00 the sun is shining but again it's it's hazy You're listening to Bloomberg $960.13 f.m. H.d. To time to check the markets. I've a little business news 24 hours a day. Going to the radio global to hear radio Bloomberg Business flash the u.s. Equity market edges just barely into positive territory investors are assessing the fallout from Hurricane Harvey and health care stocks advance energies the biggest loser in the s. And p. Down 7 tenths of one percent we check the markets every 15 minutes trading day here on Blue Murder radio s. And p. 500 is a little changed up one down a 10th of a percent down 17 while the Nasdaq is up 3 tenths of a percent up 22 the 10 years a little change 2.17 percent West Texas Intermediate is down 2.6 percent or 4661 a barrel Comix Gold's up over one percent at $131130.00 and Alex the m's a $1.92 the euro dollar 1959 of the pound $1.29 only our stock recreational vehicles there's a bright spot in that industry Thor industries is up as much as 9.7 percent intraday to its highest since March 6th l.c.i. Industries was largest customers is up as much as 10 percent and when a bag goes up as much as 7 percent why well Street cites unexpected positive effects on the r.v. Industry in the wake of Hurricane Harvey Fema evidently purchased 145000 bees to house emergency personnel and displaced citizens of Katrina and investors are remembering in the wake of Harvey that's a Bloomberg Business 5 markets continues with Lisa and Tim thank you so much Greg chariot Well one story that has been fascinating over the past few years to me anyway is Hertz the car rental company that has been plagued with low resale values of some of its cars that it's trying to recycle off its fleet and in order to get new bigger cars in now it has a new problem to explain is David Welch bureau chief for Bloomberg News and he is based in Detroit David we found out that hurts. Sended its offer to use the proceeds of a recent bond offering to buy back some of his existing bonds there was a report on Friday that questioned whether perhaps hertz which is controversial move actually defaulted on its debt this said to its shares spiraling downward more than 7 percent David based on the people that you're talking with why would a default be so negative for Hertz as an overall company oh the worst case scenario would be that the holders of the 2019 bond to most of the bonds that were supposed to be redeemed basically refinanced enjoyed 20 ninth's a little bit by bit that's the redemption that that hurts rescinded they basically said you know we borrowed a bunch of money with a 2nd lien to take out this these bonds and now we're not going to do that. Some people in the bond community believe that if you rescind the redemption it's the same thing as missing a principal payment therefore you're in the fault it's. Too little unclear if that's exactly the case in the bondholders themselves would have to trigger the default which is. Something that they may not want to do simply because that's going to mature in 2019 and they've got a couple of coupon payments to us going to see as long as you think her does good for between now and then you may as well pick up those 2 coupon payments and do it but the worst case scenario on this is if they did sort of default and the other 7. Issues that hurt has all of those bondholders can say hey you're in default on one and they can demand accelerated payment on their bonds and then you basically have a run on the dad and the company that already used you know they're not dealing with both quiddity crunch but there are you know they're definitely in a situation where they need cash to fund the restructuring and anything other than a restructuring that starts to take away that cash particular Rama dead like that. Would be a really bad situation for a lot of ifs to get there right that's what investors were panicking about so basically that if there were there was a default then Hertz would have to pay out the ample amount of debt that they have outstanding and they would have to do it quickly eating into their cash cushion right now looking in it looks like they have a little bit more than $5000000000.00 of debt outstanding I want to be in Jodi as you client is a corporate finance and distressed debt reporter for Bloomberg News and Jody today do you have any more color about the determination about whether Hertz did in fact default with this controversial move last week Sure yeah so the matter of fact is that defied actually happened so based on the dot document of their bonding danger that soon as they cancelled the redemption of the 29000 notes that default in theory has happened and that also triggered a so-called cross the fog which means that as soon as the $21000.00 notes notice asked for companies to pay back its debt immediately all of the rest of the holders will have the option to do. So as well so if that happens it can cascade very quickly in a push a company potentially into bankruptcy that hasn't happened if you could you'd look at the stock price this morning actually recovered quite a bit and what it says to us is that. People recognize the chance of lenders demand immediate payback isn't high and there are a couple of reasons for that one is what David just said that there are several payment are coming to do their way one is coming due as soon as 6 weeks so why not wait the 2nd is the 1000 notes are being redeemed at par not at a premium if you look at the trading level of these notes they are trading at par close to par so if you wait until maturity you probably going to get paid out same amount and crude interest so you're not really gaining a lot of money by asking for it number 3 is the cash is robust you have more than a $1000000000.00 probably close to $2000000000.00 at this point so. Decon paid off rate it's not a immediate bankruptcy situation away or lenders just want to be paid out immediately in case the cash goes somewhere else that David is it also because it hurts has a strategy that investors and bond holders are willing to say All right let's see what you've got. You know there is a theory out there that 3rd quarter for all rental companies tends to be pretty robust for travel and it's one of their better quarters in terms of earnings we did start to see in July prices around cars going up and the reason that's important is not only is that a seasonal thing investors are betting that because her 2 neighbors have been selling some of the cars in their fleet albeit at a loss in many cases and that's what's what's been hurting their earnings but they're getting the fleet right sized right so they don't have a lot of cars sitting on the lot there isn't a lot of discounting anymore to get the cars around and they can have things in line with demand and if they can start to all get better pricing then they can get better returns on the business they're doing and also you know once you when you get your your fleet to the size of the market. You don't have to sell cars at a discounted auctions began are a big part of the business around car companies is reselling these vehicles and once you sort of take it on the chin then then the pricing for what you rent terms of and the person for the cars are still perms up and you can start to make some money and that's what people are betting on that's the strategy going forward thanks very much David Welch bureau chief Bloomberg News in our Detroit bureau talking about automobiles Jody Klein corporate finance distressed debt reporter for Bloomberg News this is Bloomberg Markets. Bloomberg Radio Bay Area index is currently up one half of one percent eeks is Corp is the best performer up over 36 percent now Fitbit sub 6 percent ubiquity is down 3 and a half percent. Here's a word from the. Asset Management about building a portfolio at the beginning of a Great Recession I got a call from a chief investment officer at a large corporation it was really just. 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Business 29 type of radio is best radical weather for 15 minutes you might as well just to Vacaville aerial aerial some good with it let's say me out to our headquarters in Fairfield traffic property was. Not a bad place to be West 80 north Texas is right now because of the Sigler the left lane there doing some of the guardrail repair work to that having the least bad record. Over our way back to police. Get a photo from Richmond Park way over to the Bay Bridge where the likes of Robbins traffic should be back to the bays. Bad $85.00 blocks mill that's a 2 car accident in the left lane $85.00 votes could be $87.00 up to d.m.v. . People face a difficult decision continue their dream of education or drop out to help support their families if you can help the revenue story. Of the. Areas extravagantly real civil liberties 613.7 f.m. a look at how most people in Houston we're not insured for flooding and we're going to wonder where is the money going to come from. All of these repairs also speaking with Internet pioneer Alan Meckler talking about why he believes that artificial intelligence is the next Black Swan But right now let's go to Greg and get a check on the markets big women to splash. Little changed at this hour oil's down the gold investors are weighing the damage from Harvey hold steady after rising to its strongest level since January 2015 against the dollar has a new boss and it's a bit of a surprise the board lady yesterday off of the c.e.o. Job today. Who spent 12 years at the helm of Expedia man deep saying it Bloomberg intelligence tells Bloomberg was new c.e.o. Is going to have to get to work immediately to fix the image of. The Dave Phoenix started mending a Latino they can they have this driverless car investment having that IP issues with the. And then the whole cultural aspect I think the board can be expanded right now they're just 8 members so you could add more people add more diversity to the board add more experience for the board and really start off with a clean slate we check the markets every 15 minutes at the trading day. P. 500 changed just barely in the green Dow Jones Industrial Average is down to 10 percent down 23 while the Nasdaq is up 3 tenths percent up 21 the 10 year is little change the yield is 2.17 percent West Texas Intermediate is down 2.4 percent at $4672.00 a Gold's up 1 point one percent of $131250.00 and Alex the m's a dollar 921 the euro a dollar 1968 and the euro is a dollar might add to the euro $1.96 of the pound us $1.29 that's a Bloomberg Business Week markets continues with Lisa and Tim thank you very much Greg at the cost of Hurricane Harvey could end up being more than $24000000000.00 when you include the effects. Flooding on the labor force the power grid transportation and other elements of the region's energy sector plus the residential toll here to tell us more about the insurance angle is Jonathan Adams our senior insurance industry analyst for Bloomberg intelligence Jonathan I want you to begin if you can by just describing the different kinds of insurance because there's flood insurance wind insurance hurricane insurance there's a multitude that goes into this picture and just dissect it for us and tell us what's going on sure a standard homeowner's insurance will cover hurricane wind and many other perils but it has a specific exclusion for flood so the standard homeowners policy does not cover this type of event for many of the people on fortunately and in the around 27 The good news is that there is a national program National Flood Insurance program that allows individuals to buy a separate policy through the n f I p which is the name for that program and they can have special coverage I will say that auto policies do cover flood so. That particular peril it will would be covered for your auto policy but in the case of home which of course is that it's a significant asset. Individuals need to go to the end of 5 p. To get coverage Well Jonathan do you have any sense of how many people in Houston had already gone to the n f I p to the National Flood Insurance Program. Prior to this storm and if they didn't What's their what's their recourse now. But that's an excellent question and unfortunately. There's not a good figure on individual areas although if you analysis was done after Hurricane Sandy here in the northeast. And not surprisingly what's called take up rates people who decide to. Cover themselves with a particular type of protection are pretty good close to the coastline so I would expect that individuals close to Galveston gabble send cap of and he sees me in Corpus Christi. That that take up rates would be close to 7080 percent close to the areas in Houston where flooding has been. An occasional of event again pretty good take up rates outside of that area are probably quite low and on average I believe the number is close to one in 6 or about 20 percent so that is quite low and for those that do not have coverage really there's very little option . It did did you know that there could be some federal or state support given but that type of support is not really replacing damaged property it's more along the lines of interest free loans or things of that nature that the government tries to put in place in order to allow individuals to get back on their feet but if you don't have any coverage it it really isn't a good picture I was just reading actually an article talking about how after disasters like this the percent of people in poverty typically does increase and state elevated are higher than it was before for a low prolonged period can perhaps it's part of the reason why if people lose a lot of the value that they have been storing in the form of their homes what about the national program itself how well funded is that. Unfortunately not well funded they're $25000000000.00 in debt to the u.s. Treasury it's a very unfortunate and simple situation where they don't collect enough premium for the risk that they are incurring. When I say that it's the the n f I p and there are certainly limitations that Congress puts on the program so that it's difficult for the administrators to put in place a program that is actuarially sound that program is up for renewal as we speak it expires at the end of September and unfortunately for the next 6 years based upon the bills that are currently being discussed it's unlikely the program will be able to charge an actually sound actuarially sound rate and that will ultimately come back to haunt us because the tax payers obviously need to cover that $25000000000.00 in debt to the Treasury had some point Jonathan and one of you just outlined 1st quickly in looking at the big commercial insurers the ones that maybe are used by the energy industry what effect bank does have on them. So the good news of this storm is that the very high winds. Dropped very quickly after landfall and my channel checks show that many of the refiners and other industrial entities in that area suffered relatively modest damage again that's that's a relative term but. The likes of travellers which provides a great deal of commercial property coverage a.i.g. Chubb will probably not incur the same percentage of loss given the total loss here as they would have if this was a more traditional wind driven loss of and so those are the names that are likely participating in that type of coverage and frankly there'll be some claims but it won't be too bad for them thank you very much Jonathan Adams is our senior insurance industry analyst for Bloomberg in. Teligent time now to go in Washington d.c. In our 991 newsroom with Nancy Lyons for world and national headlines Nancy thanks Jim Houston officials say at least 2000 people have been rescued from flooding in the city rescue teams still face nearly 200 more requests today extra helicopters are due to arrive to help with those evacuations making matters worse though is the fact residents are not out of the woods yet Bloomberg meteorologist Rob Carroll and with the latest on the storm's path the precipitation intensity has come down a bit and that's a little bit helpful but the bad news is with Harvey's potential reemergence over the Gulf of Mexico further strengthening is a possibility he says Texas could see rain through the rest of the week President Trump and 1st lady millennia Trump will be traveling to Texas tomorrow Well President trouble is issuing an executive order today lifting Obama era limitations on the use of surplus military equipment by police departments around the country equipment like high caliber weapons grenade launchers armored vehicles Attorney General Jeff Sessions announced the program to the national Fraternal Order of Police one of the groups that had long urged Mr Trump to restore it they used restrictions I had been opposed went too far we will not put superficial concerns about public safety we will do our best to get you but hear me President Obama had argued against using the militarized gear saying it would alienate and intimidate local residents the American Civil Liberties Union has filed a lawsuit challenging President Trump's ban on transgender individuals joining the military a federal lawsuit was filed in Maryland today by the a.c.l.u. Of Maryland on behalf of several service members who are transgender Global News 24 hours a day powered by more than 2700 journalists an analyst of more than 120 countries I named sea lions Thank you Nancy from the Bloomberg 960 News Room I'm Greg Jarrett an army of anarchists in black clothing in masks ragged a small group of right wing demonstrators who were gathered in Berkeley on Sunday to rail against the city's famed progressive politics driving them out sometimes by . A while overwhelming a huge contingent of police officers extremely intoxicated man was forcibly removed from a Mexico City to s.f.o. Flight the Mercury News reports the Mexico flight diverted to. Where it reportedly took over 40 minutes to get the man off the plane he was fighting as the plane arrived 40 minutes late into s.f.o. Bay area this time. A 42 time for the Bloomberg n.b.c. Sports update as often happens in times of crisis Jeff begs the eyes of even the sports world turning toward Houston Texas. Yeah that's right and the amazing thing is the human spirit never fails and it's good to see the big story in the real world the top story in the sports world as well and with more rain heading to Houston in the aftermath of Hurricane Harvey athletes are starting to step up including Houston all pro and former defensive player of the year Texans star j.j. Watt doing his part by starting a fundraiser that's our city it's very tough to watch your city. Storm and not be there. For the recovery not be there to help with the process it is very tough So what I do want to do. Because I know these recovery efforts are going to be massive You can donate something small if you can donate something big whatever you can donate please donate to help these people out pizza is a great city and we're going to come out of his stronger than ever and you can also give the Red Cross j.j. a Watch started with $100000.00 of his own money the Texans are scheduled to host the Cowboys on Thursday night but right now they're in Dallas as are the Astros who are supposed to return to Houston to take on the Rangers beginning tomorrow night we should find out what the plan is for both those games later today tonight the Giants will continue their road trip in San Diego with just some margin on the mound against the Padres the A's will be just up the 5 in Anaheim to take on the Angels and today day one of the u.s. Open Venus Williams is going to play later today I'm Jeff Biggs that you Bloomberg area n.b.c. Sports update thank you Jeff the news time is 843 I will check our local traffic and our weather coming up next a lot of haze out there is it going to cause some problems we'll find out on Bloomberg 1613.7 f.m. H.d. 2. The price of housing up again energy it's 50 percent more here upgrade today. 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Bay Area Business Times 846 time for the Bay Area's best traffic in weather every 15 minutes some a throw in a curve let's go to the nut tree. Greg I'd love to go to the nut tree hopefully we get to hang out there someday West 80 or not right now though because of the heavy traffic Wednesday the North Texas left lane shut down 1st emergency guardrail repair work we had a problem East 80 in north Texas it's now backing up West 80 all the way to lead your town road westbound 80 headed Richmond right at hill top drive 2 cars and motorcycles all tangled up the 2 left lanes are taken up it just happened westbound is going to slow from Richmond Parkway on and off all the way to the Bay Bridge where the lights are on and traffic is essentially backed up to the maze northbound one of when it might be that some of you know Greg it's reports of a car fire in the 2nd lane from the left or Bluebird 3 day weather forecast such a good today hot specially in the inland areas sunny and hot for the next few days with the Bay Area's best traffic on Larry Olsen Bloomberg 901 and 3.7 f.m. H.d. 2 Greg think Larry m I 5 kids still remember going to desert at the nut tree and they're all grown now they want to take their kids there Cupertino $69.00 in Fair Winds northwest at 3 Those were the days when they humid it is 73 percent we've got a lot of particulate matter and smoke and stuff attaching itself to the water droplets in the air creating a lot of haze so be careful out there you're listening to Bloomberg Bank 1613.7 a $1.29 Bloomberg Markets continues with Lisa Abramowitz and kept box Thank you Greg Jarrett artificial intelligence the market for artificial intelligence and its various components is estimated to hit about $37000000000.00 by the year 2025 Well there's a lot of money to be made between now and then Alan Meckler managing partner of Asimov ventures is here to tell us perhaps how to make some of it Alan thank you very much for being here happy to be here tell us about artificial intelligence and what you consider to be the market because as a growing market it is encompassing more then just asking Alexa to send you a re you know refill on your paper towels supply or something like that and of course the line Musk is worried about it taking over the world and in a way it will because obviously so many devices will be working with artificial intelligence my my particular area of expertise or interest is in robotics with the Venture Fund we have as a mother enters and we've seen an incredible application with say that it doesn't sound too sexy but a garbage arm and industrial garbage Erm it was created by a young team in Barcelona Spain. And sata co. Spent over 5 years creating the artificial intelligence to direct this arm This arm is now in a machine that is being spread all over the world by a large private one of the largest waste management companies called bulk and willing services they said it's called the Macs a high and it sells for about $200000.00 and what it does is these large garbage companies sit ups loose ways. And up until now the sluice ways have humans that look for valuables good picker could find 40 pieces a minute this machine can find 100. And the ai that's involved in running this garbage arm is so sophisticated it obviously will be. I think the standard for a lot of industrial applications such as someone at at Amazon. It's a Brunswick New video of chips in fact a video just a big write up on it and it's one of the most amazing things I've ever seen but a lot of people don't associate robots with how they think well I want to talk a little bit about how the nature of that garbage arm attracted you and what other areas there could be a dramatic innovation that changes the way we think of the industry you are saying as my Fancher is an early state capital firms here looking for new ideas that create potential pollution ery Are there other areas other industries that are ripe for a revolution that is driven by artificial intelligence will virtually in any industry it's much like the beginnings of the Internet when it came along. Most people really didn't think of it more but text kind of coming through with information and of course we now know you know what's happened in the creative destruction that it's caused So the key with this article shouldn't intelligence with the sort of go Team in Barcelona is that it's designed in such a way or has been I'm not an expert on coding or whatever one does but I can spot things and the way they've created. It can be used over and over again but obviously it has to be rejiggered depending on the application and the type of hand the might be or grip or that might be on the end of this arm so there are special specialty right now is any kind of industry or application where a human had. Who picks pick something whether it be large or small they can over time adopt their their technology to make more and more of these now it's not going to help run a vehicle or anything like that but there's what I've learned in the last 30 years in technology is it's all vertical everything is vertical as it goes back to almost my my early beginnings as in research library it's everything is based on a calendar there's always so artificial intelligence a big horizontal play but it's all the vertical applications that can come along and would that include things like the medical industry of course like able to read multiple cat scans or being able to offer automated diagnosis and of course we've already seen cancer surgery prostate surgery with adventure I mean who would have thought of that something like that could happen so it just goes on and on. Again I'm not I think best way to what's the someone listening to this is yeah you know I keep hearing about artificial intelligence and robots and I know about Final Cut the Japanese robotic hump and but I want to invest in I want to be on the cutting edge What do you do where do you go and what are your reach. Well right now there's not. That there aren't a lot of pure investments that's why a company like new video is such a hot stock because. Obviously the chips and other chip companies that are creating what but powers these devices is where the future is it's again and I know him go back with you quite a bit it's like Intel Inside you're going to have other types of chips that are going to control the robots which will obviously be all around artificial intelligence. I'm wondering if the progress sort of the pace of progress certainly within autonomous vehicles has been slower than some people thought as far as seeing actual self driving cars that would go around and all of the ecosystem around that is there something that you see that would accelerate the adoption of artificial intelligence in every facet of people's life in other words do you think that in 10 years for example our conversation it would be entirely different and that it already would be adopted by a whole host of things and that people's mindsets will have changed completely. Certainly. Again I can only go back to I have a Ph d. In history so I tend to see things historically but nobody really thinks twice today about online banking I can remember in the early days of the Internet people saying I would never never put my checking account number or my credit card number on and you don't do you don't think about it and it's the Internet essentially is the Internet of Things is imbedded in everything well artificial intelligence just moves hand in hand with it so you you won't even be thinking about it in a few years I have to confess when I originally thinking I want even be thinking maybe we can end it. Alan Meckler thank you so much for joining us Alan Meckler is a managing partner at Asimov ventures which has offices in New York and Seattle talking about the revolution of artificial intelligence coming up politics policy and power with Amy Morris and Derek Wallbank Amy what do you have going on today well as now tropical storm Harvey is still creating havoc along the Gulf Coast we're going to talk to a representative from Texas like for a whole we'll also be talking to the mayor of New Orleans Mitch Landrieu and as you know President Trump is scheduled to be on the Gulf Coast tomorrow so we're going to learn more about that and his push this week for tax reform what details we have about that plan so far thank you so much politics policy and power coming up Amy Morris will be co-hosting with her guest host Wallbank I'm Lisa Abramowitz along with my co-host Pym Fox This is Bloomberg. Area Business Times 857 it's time for the Bay Area's best rather good weather every 15 minutes check in with Larry Ellison. Let's do it Gregg traffic brought to us by the foundation for a better life it's still really heavy heading into Fairfield West Indies could be Jim from leisure town over to north Texas where they're doing some road work in the left lane to clear up an earlier Sigler in the eastbound direction west 80 a hilltop in Richmond to Carson a motorcycle of all tangled up that in the 2 left lanes if you do eventually make it over the Bay Bridge you can find those lights on in traffic backed up into the maze down to the South Bay northbound what it Matilda reports of a car fire in the 2nd lane from the left northbound want to once going to get back to the 28680 Mr Rogers passed a long friendship hoping we would to friendship pass it on from the foundation for a better life and values dot com where the Bay Area's best traffic and Larry Olsen Bloomberg night 63.7 f.m. H.d. 2 Greg thank you very much Rob Carol Lin is here Rob you've had your eyes cast toward used in Texas most of the day how's it look in there well it's not looking good Greg of the storm system is trying to get back out into the Gulf may strengthen a little bit though the western side is very dry so that may help prevent it from getting too strong Here's the doesn't need any more rainfall they will see some more rain several days this week which keeps the flooding high in throughout all of the upper Texas coast for us it's high pressure warm temperatures Wazza sunshine we do have some patchy clouds over parts the North may even parts of the central northern part of the peninsula that will burn off $75.00 to $85.00 along the Bay Illinois 100 either side of that that's why those excessive heat warnings are in effect for the in the areas could and 55 to 61 to high pressure tomorrow to lots of sun 75 to 85 along the bay the in the areas in the ninety's of close to 100 for Wednesday sunshine not quite as warm 70 to 80 along the bay and let's watch could be as warm as 95 during Wednesday afternoon traffic and weather every 15 minutes all morning long I'm Rob Carolyn and Bloomberg nice 60 and one of 3.7 f.m. H.d. 2 Greg why thank you and I need. To remind everybody that we do have a spare the air day in effect today for all you people who like to run 16 miles every morning before you go to work like my coworker Johnson It's one of those days when you may not want to do that because we've got a lot of pollution in the air and it's going to stick around for a while not only the fares fires that are going on in Oregon but we have our own fire going on in the East Bay and the high heat dome that's trapping all that smoke in the area so be careful currently in Cupertino $69.00 and fair you're listening to Bloomberg 960 and 3.7 f.m. H.d. 2 good morning. For support from Butler University. And on the radio plus global muses Cairney w. Okla was there were no $3.00 f.m. H.t. To San Francisco politics at the very interesting fight within the Republican Party itself policy to articulate federal regulations in place the White House had been issued a statement on the bill is that yes we use you so I can't analysis from Bloomberg politics in itself seemed like an unconventional reality Labor government a kind of radical agenda the breaks with democratic tradition Bloomberg beyond a heated rhetoric in Washington a nation wide these views public policy I'm told with a more Bloomberg Radio coming to you live from the Bluebird 991 studios in Washington d.c. In today's guest host we welcome back Bloomberg 1st word editor Derek Wilding and coming up this hour the catastrophic flooding caused by it now tropical storm Harvey with Texas Congressman Blake Farenthold and we'll talk also with New Orleans Mayor Mitch Landrieu Well also look at Trump's pardon of former Arizona County Sheriff Joe Arpaio Trump also spending the next few weeks leading a public campaign for a tax overhaul we're going to see how that's going but before we do anything else let's check the markets with Bloomberg. I'm here for yeah me stocks are little changed boils down to gold investors are weighing the damage from tropical storm Harvey the effects are being felt from the Walliams all the way to San Antonio bureau holds steady after rising to its strongest level since January 25th against the dollar Anthony cresent see exactly vice president portfolio manager program code says the global economy strength is help the stock market performance not washing over 2 years I think the global economy could grow about 10 percent to 12 percent plus in nominal terms which is a big boost for profits and has stock market performance and so it's not all about Washington it's about the strength of the global economy we check the markets every 15 minutes of the trading day here on Bloomberg Radio s. And p. 500 is little changed up about one. Dow Jones Industrial Averages little change down about 5 but as dac is up 3 times percent of 22 the 10 year is up to 30 seconds the yield is 2.17 percent West Texas Intermediate down 3.3 percent or $4628.00 a barrel Comix Gold's up 1 point one percent at $1312.00 and Alex the yen is a $1.92 the euro dollar in 1974 the British pound at $1.29 that's a Bloomberg Business flash now it's time for the market drivers report with Dave Wilson an energy takes a hit from Harvey and we're not talking about a giant fluffy imaginary rabbit Dave No we are not that's for sure I mean you look at the 11 main industry groups in the s. And p. 500 and you see the energy definitely not doing the market any favors that's for sure. And you look at individual companies within the s. And p. 500 you see at the moment. Basically 4 stocks down for every 3 that are up so on balance moving lower but nonetheless Like I said we'll look at the industry groups and energy is definitely a standout as well as individual companies go biggest gain Yes.