Kuroda feeling cautious. They tell bloomberg the nations cannot keep up its current growth rate, but how long can it continue this a comet is Monetary Policy accommodating Monetary Policy . It is looking to promote expedia ceo to run the global firm. He was not on the list apparently, but it looks like he could be the man. We are less than a half hour away from the European Market open. What are we looking at . Couldthe question is, not get anybody else to come in and run the business . Uses it a lot of the time, but it has come under fire lately for other issues, scandal , issues of the like. We are not showing the ftse futures because it is a bank and hopefully everybody in Great Britain is still asleep. We do see euro stocks, futures down, dax futures down, cap futures down. A littleresting after bit of weakness today. Take a look at bunds. It looks like investors have been selling ones, driving yields up. If i just show you the oneday chart, you can see there has not then a lot of movement. This morning, there was a spike in the trade. In the slick summative put in us order, put in a sell pushing the yield up. Now we are down at 0. 38. I have broadened the gmm as far as it can go in terms of encompassing everything. This is the global setting up here. You can pull it up from your bloomberg. What i want to focus on is what is going on here in the commodities section. Gasoline, this is the effect of harvey. The effect is fairly substantial. It is trading up a bike 4. 67 by 4. 67 . We will see more of that as we figure out what the effect will be on texas with the flooding we have seen. What impact will it have on an industrial point of view . That is the effect we can see at large. You are seeing it into the rest of the complex, as well, but very clearly on your gmm this morning. Click on the global setting and you can see it coming up that. Lets get a bloomberg for sport update with juliette saly. Tropical storm harvey continues to inundate southeastern texas. Americas fourthlargest city has seen unprecedented levels of rainfall which crippled the gasoline industry. It has a surge the highest for two years. The bank of japans governor has pledged to forge on with very accommodating Monetary Policy. Corona warned inflation target remains distant and the current pace of growth in the worlds thirdlargest economy looks unsustainable. Growth is excellent. Growth cant think 4 be sustained. Likely and the amount of growth inflationary look gradually climb up to 2 . With four weeks left in the election, the leader of the social Democratic Party in germany has leveled his harshest criticism at Angela Merkel. Of comments offer a taste next sundays only tv debate between the candidates. With thelks resume , the Opposition Labor Party has tried to leeward critics to their side. It wants written to stay in the eu Single Market and Customs Union four years after it leaves the block, a proposal that will delight business leaders. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Matt and guy. President has urged her colleagues to look past the inflation data to stick to the gradual pace of lifting Interest Rates. Speaking on the sideline for the retreat, we expect one more increase in rates for the end of this year. Monetary policy is still accommodative, so the gradual path of normalization is really a gradual pass. My argument for why we want to stay on it is because we are in normal economy. Inflation is not to percent, but we have to move policy before we get to goals otherwise we will be behind. Guy lets bring in mark cranfield, who joins us from the mliv team, one of the strategists on the blog. Good morning. Im looking at the opportunity probability of a rate hike in december, we are some 40 . Do you think the data will start to change the story around . We have the payroll coming through at the back end of the week. Is the data going to tell us any story . It guest if the data tells us something, it will be the qe. If that would take up, it would help with the argument that the inflation drop will be a temporary one. From the investors point of view, i dont the data in the next couple weeks, it is the september fed meeting and what they will say about Balance Sheet normalization. This is what we have been waiting for. The fed it looks as though they want to continue with signal on that and how the market reacts to Balance Sheet tapering is really very important for everybody and it will have a lot to say about whether the fed has the confidence to go for another rate hike later in the year. Matt it doesnt look like the market believes one is coming soon, mark. We are looking at a 10 year yield of 2. 16 right now. I wonder, how much of that is the reaction to jackson hole and how much of that is an incredibly solo incredibly slow august . Guest a bit of both and obviously concerns that the discussions so far on the u. S. Government budget and possibility of a Government Shutdown dont appear to be going well. People are cautious about that and treasuries of the first line of defense if you are worried about that sort of thing. All of those factors together are playing into it. Do Say Something about tapering, it does not get a good reaction from the market, you can see volatility in treasury in the coming weeks. Guy how do i price in . How do i figure out what is going on in texas right now . It is clearly having an impact on the energy complex. The cleanup effort required is going to be close to a shovel ready Infrastructure Project as it is going to get. It has to happen and the federal government is going to have to spend huge amounts of money. Walk me through how i figure that is going to impact markets. Is it going to the inflationary . Is he going to have an impact on the labor market . Is it wrong to live in gdp . More medium to longterm than shortterm . Potentially it is. We keep being told there is no slack in the labor market, that it is a tight situation. If they do takeaway workers that could be in other fields, it could drive wait cost of weather is set in demand. Pushed up which the fed would not be to unhappy about. They have been complaining about low wages for some time. It will have a boost to certain sectors of the economy and show up and construction related things and the equity market, so possibly more initially, and equity market story than anything else. The size of the infrastructure is big enough that it plays into other areas. It has implications for the yield curve, as well. Equities first followed by the yield curve. Matt thank you for joining us, mark. Like marketow insights on the bloomberg at any time, just type in mliv to get those insights. Floodwaters have been rising across houston as Tropical Storm harvey continues to inundate texas, pounding americas fourthlargest city with rainfall. Two deaths have been confirmed from the storm and dollar terms tended to stretch into tens of billions, including the core of the u. S. Energy industry. Lets focus on the impact of the energy sector. Dan murtaugh. Why is this so vital to the Global Industry . Guest the gulf coast has americas half of the refining capacity. The gulf of mexico is a major producer of oil and gas. The u. S. Shall boom is centered around texas and the eagle for shell plate is in south texas right next to houston where Tropical Storm harvey is loitering and spewing out untold amounts of rain everywhere. All the stuff is producing oil and gas, refining it, there is huge changes to Global Demand and supply flows going on right now because of the storm. Guy just give me a sense of when will get an understanding of how big an impact we will see . Weather carrythe on as green as it is right now . Guest unfortunately, we still have a couple more days of grim weather. The National Weather service is saying the storm is inching its way hes across houston toward the gulf of mexico, where it might actually restrengthen and come back and hit again. We have had two feet of rain, possibly to more feet coming. It will be a while before we find out what the actual extent of damage an impact is. Thanks very much indeed. Up next, what can we learn about uber . They have not confirmed who the new boss will be. Get thisbe done to company out of the trouble it found itself in . We will have the latest on who can be in the drivers seat here. Dont miss our 30 minute germany decides special which starts today at 8 30 a. M. U. K. Time. We will read the latest runup. Thats coming up. This is bloomberg. Guy 14 minutes until the cash open in europe. Here is a bloomberg is flush with juliette saly. Juliette 40 growth in first half profit. The profit rose to 4. 2 billion. That is than it that are earnings from its chemical business as well as a narrower loss from producing oil and gas and lower financing costs. Cbs has agreed to buy and network, beating out a rival bid by lachlan murdoch. The network will collapse after pledged Financial Support to keep it open. Forcost of buying programs the u. S. As advertising revenue plunged. He was sentenced to five years in prison, according to the news that did not cite the source for the information. He was jailed on friday for investment and perjury, accused of calling millions of dollars to a friend for favors. It is the harshest sentence ever given to a prominent korean figure. That is your Bloomberg Business flash. Matt the bank of japans on buying program has left the central bank owning 4 40 of japanese sovereign debt. Governor kuroda told Kathleen Hays it will ultimately make yield curve control easier. Carefully been watching the markets. Hase market liquidity. Educed or not the spread and so and so. Always we are carefully Monitoring Market conditions. There are some indications of that show markets on the whole, the market is functioning quite well. Bank of japan has acquired 40 of gdp outstanding. Is still out there. And come control also is not connected to the amount of purchase. Its targeted at two point Interest Rate. Since gdb is remaining in the withing to be one unit of purchase, the impact on the Interest Rate could be bigger. In the coming months, there will be less and less need to purchase gdps in order to maintain income. So at this stage, markets is functioning. ,e have already acquired 40 but 60 is still remaining in the market and third, thanks to the control, we are not required ourselves to purchase this amount of gps irrespective of the impact on the market. Speaking to Kathleen Hays exclusively at jackson hole. Fantastic interview. Lets change gears to excuse the pun. Uber is recording a new ceo. According to people familiar ofh the matter, the x ceo expedia will take the top job. He will replace the pound the founder who was forced to resign. Lets get to bloomberg tech reporter that joins us out of tokyo. Questions jumpck straight to mind. What does this mean for uber . I havent even heard this name on the list. Ay are we now talking about person that nobody expected . Process we have seen, how did this happen . In terms of what this means in terms of timing, this really is the end of a certain phase for uber. The end of a period of hyper Aggressive Growth at all costs, massive fundraising. Now we are looking at this as a sort of a transition into a period where they will consolidate and stabilize things , but prepare for uber as a big mature company. Dara, he is not unknown within the tech circles. The first thing to note is, he is coming from the travel industry. And uber is trying to disrupt the Transportation Industry and so, there is a lot of probably skills there that are transferable. He also has a background with idc interactive. He has been in this industry for a while. He may not have been the obvious choice given the caliber of other candidates such as meg whitman and Jeffrey Immelt out there. But on several levels, this makes a lot of sense to the uber board, especially when they are looking for stability. He also runs a Public Company and that is very important. Matt that is a key point, as well. Read, thank you so much for your time. Reed stevenson joining us in tokyo on this uber story. Minutes away from the castrating on the comment it is of course the holiday in the u. K. Next, harvey hammerson houston as the Tropical Storm hit the heart of u. S. Energy. Shelton says there is no timeline for when its deer park operations will resume. Thats next. This is bloomberg. The open just eight minutes away. Matt we are minutes away from the open, lets get your stocks to watch this morning. First off, shall has confirmed its Texas Refinery will face a controlled shutdown as it looks to limit the damage caused by the storm, Hurricane Harvey of course in the u. S. In houston. Location, deer park, has a refinery capacity of 316,000 barrels a day. And you are really seeing the results of that shutdown in the tech in the gas price, which is up 6 to an alltime high. A big come up jump in gas as Hurricane Harvey basically shut down refining desk Refinery Operations in americas fourth biggest city. Guy petrel, gasoline, call it what you will. You can find that chart 417 on your bloomberg. You can see this jumping up. You can also find it, funny enough, lets go to gmm. You can find it quickly here. It has come up a little bit from an earlier height of the. 74, where they are trading currently. 3. 74, where they are trading currently. London is shut down, it is a National Holiday in the u. K. The rest of europe is up and running and we will show you what it looks like. This is bloomberg. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. Guy lets talk about where we think European Markets will be trading today. London is closed. Lets go to bloomberg and talk about what we are looking at here. London will not be trading, but look at the rest of europe and down half of 1 this morning, a softer open. Keep an eye on what is happening with some of these energy stocks. That is something to be paying attention to. What impact will harvey have on all of this when it comes to what is going on . Gasoline prices are shooting higher or it matt absolutely. I want to show you something. A lot of people were let down the mayweather fight and also by jackson hole. Nonetheless, i will focus not on boxing or mma, but currencies here. Chart. A euro you can see the strength here in blue. This shows you the number of contracts net long are the highest they have been since 2011. Guy European Markets are opening. We changed the screen a little bit. The ftse end, that is the ftse mid there are that is what you will be seeing opening up very shortly. Here is the first trait of the date coming through. The stoxx 600 down by 2 10 of 1 . The rest of europe we think will be down about 1 . 2 10 of 1 . Looks like we will see a slow open. There is the ibex coming through. A little bit of a softer open, down as you can see, half of 1 . Whats find out what is going on with nejra cehic. Nejra at this point, i usually do the gilt market, but the gilt market are closed because of the holiday. Lets start with equities. The stoxx 600 overall down by about 2 10 or 3 10 of a percent. It is red across the board as we look at various Industry Groups. Tech is down come up followed by utilities, but every Industry Group there is in red. Energy not one of the worst performers despite we are seeing wti crude and gasoline prices surging to a twoyear high. Ime interesting commentary had on radio with one of our guests about why we are seeing the divergence between cpi and brent. It is about shell, those inland producers producing the oil for the company on the shore. That is why we are seeing cpi falling and brent tracking the gasoline price. I have the same chart here met just showed you. This is about long euro positions climbing the highest since 2011. This is after the euro hit a fresh to your height with mario draghi saying nothing about a stronger currency. Ite say it took nothing for to move higher and it could take nothing for it to move lower. On the other hand, people are saying it can go right through 21 25 before we get pushback. Im taking a look at peripheral stocks here. Great to show you looking at the ratios. Athens in purple, portugal in yellow, spain in white, perhaps some of these piigs looking attractive broader stoxxe 600, maybe not so much for athens. Guy thank you amit very much indeed. Lets figure out what thank nejra. Y much indeed, lets figure out what is going on. Down 1. 23. The any in the Financial Sector is the league gainer. Is trading up by 1 . Up by 1 . Rading we are seeing a few losses coming through. A clear sense of direction coming out of your seems to be lacking and that is an interesting story to figure out exactly what this weekend will bring. Jackson hole in the rearview mirror, a lot of data out this week. Matt we will be watching very ,losely as well because although we have not seen such big moves, we are in