Lets kick off with first word news, with mark crumpton. Mark an encouraging sign for texas, as it struggles to return to normalcy. Hasus christi ship channel reopened, after being shut down nearly a week. Port Officials Say the reopening is a step toward resuming operations at seven refineries, and transporting that fuels to market. The channel was closed when harvey slammed into Corpus Christi last week. Are inan 1500 people louisiana, and officials expect that number to rise as more people are a black evacuated from flooded communities. 1000 people were flown to dallas from a shelter in beaumont, where residents have no drinking trump will visit texas for the second time on saturday. Officials in houston expect most of the floodwaters to receive by late today, or early tomorrow. Gone, theater is rebuilding can start. And of this an estimated 136,000 structures were flooded in harris county. Up 10 sinceces are a gallon after the nations largest refineries shut down due to flooding from Hurricane Harvey. Cars are lining up at stations in dallas, amid a shortage in gas. The federal government is releasing 500,000 barrels of oil from the Strategic Petroleum reserve. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. Lisa. U. S. Markets closing, in just under two hours. The markets, shaking off a disappointing jobs report. Lets get the latest with abigail doolittle. Abigail markets are not only shaking off that disappointing job report, but some of the uncertainties we faced earlier this week. Political tensions, all but forgotten, moderate gains for the averages. The longest daily winning streak, since may. The biggest gains for the s p 500 and nasdaq, since the middle of july. Investors are pretty bullish. Is Oil Services Sector index up 1. 8 , on pace for its best day in six weeks. Lets take a look at what is helping that Oil Services Sector index. All these stocks are up in a big way. This could have something to do with Hurricane Harvey. Oil is starting to level out a ,ittle bit more, but also yesterday, capital one did upgrade transocean to an overweight. So these stocks had been down on the year, not so long ago, so some analysts out there are seeing that as an opportunity. Lets take a look at another space that is perhaps impacted by Hurricane Harvey. The plastic stocks, a number of them are trading much higher. Huntsman, the ceo peter huntsman, into an interview expectingrview, hes divergence in the next few years. Company and management has donated 500,000 to the red cross, to help with Hurricane Harvey efforts. A bright spot there. And finally, taking a look at the dollar, and its initial, very bearish reading of the jobs report that was disappointing, that you mentioned, lisa. When it came in at 156,000 jobs, versus the survey calling for 180,000 jobs added, a big drop, but now, right about even. And the recovery could have something to do with the fact that 36,000 manufacturing jobs were added, matching a fiveyear high. A bright spot in the jobs report. Lisa yeah, a lot of conflicting movement on the market. It was a big week for Economic Data all over the world. The spotlight today, of course, was on the jobs report for august. Employers added 156,000 jobs last month, fewer than forecast. The jobless rate climbed to four point 4 . Wage gains, also disappointed, yet again. But, will this data shake faith in the u. S. Labor market . President trumps talk Economic Advisor gary cohn, spoke with bloomberg about the report. Is part of the natural growth we are seeing in the economy. We had a gp number of 3 this week. We have a job number that is still very good. If i would have told you at the beginning of the year that we would be at 3 gdp at 4. 4 unemployment, you would have said, those are great numbers, that would be an amazing accomplished by labor day. Well, we are there. We are very pleased where we are the economy, and in the cycle. We know there is a lot of work to do and a lot more upside, and the president is very focused on that. That is why we launched our tax agenda this week. We think we can really grow the economy much further from here. You point out that jobs are solid, but wages are not going anywhere. To a half percent, year on year. And inflation, really stagnant. What is the right Monetary Policy for Something Like that . We are concerned about the wages. That has a lot to do with our tax policy. If you listen to what the president outlined, he talked about our corporate taxes and our business tax system, and how inefficient our business tax system is, and how we penalized businesses to be in america. When you penalized businesses to be in america, they dont hire american workers. We need our tax rates to be down, to be competitive with the rest of the world. And we then complete and we then compete for labor. You compete for labor, you drive up wages. We are concerned about weight growth. You are at solely right. When i saw the numbers, the first thing i look that was the wage number, and it has been flat at two and a half percent, for what some time. We need to put more money back in consumer pockets. And that is what we were trying to do, by weight growth and by tax efficiency. It is a fiscal policy issue, and not a Monetary Policy issue area you feel Monetary Policy can help with the Wage Inflation debate . I think weight inflation has to come through demand for more workers, at a higher price. At the way we create more workers, is we create a better operating environment in the United States. You do that by making the United States more competitive. You create competition by lowering the business tax rate. And you have businesses that have to be year, and want to be here in the United States. Thats what the president laid out earlier this week. Lets go to tax reform. We been hearing a lot of mixed messages from the white house and the lawmakers, in terms of that next step area are you going to have to release additional tax details . I think you are all acutely mnuchin andtary myself, the leadership of the senate, the leadership of the house, we have been working and december on a tax blueprint. We have met nonstop, since then. The six of us have agreed on an outline blueprint skeleton. We agreed on what we need to do for tax reform. There now working with house ways and Means Committee and the Senate Finance committee to finalize what that blueprint will look like. That is going to get released in the next weeks or months. Those committees will get together and finalize all the details. And that is when you start next week. Is the legislation in the hands of the taxwriting committee, right now . Gary the legislation is in all of our hands. We are working together. The six of us will be in the white house next week with the president. Gary, i get that. Have you passed it off to the taxwriting committee yet . There is a communal effort here. We are working very collegially, together, to get tax reform done in a way that everyone buys in, on every step of the way. Beimately, tax reform has to voted on in the house and senate. So, yes, we are working with the house and senate to do that. Julia that was gary cohn, speaking with bloomberg in that coyrview, and also playing about his willingness to take over for the chairman of the Federal Reserve next year, saying, i really excited to be doing what im doing. Good answer. Economic policy correspondent for Bloomberg News, and he now joins us from our d. C. Bureau. Mike, great to have you on the show. Gary cohn was talking about wages there, and we see an outer utterf them and lack of them in this report. Argument among economists about whether this would happen or not, that companies would try to hold down their costs because their margins are squeezed in a time of very low prices. ,nd if they get a tax break they will be able to pass that on to workers. Others say, it is a Global Economy now, you are competing with wages around the world, and we can find cheaper labor elsewhere. Im confused by the market response to todays report. The classic market response that you would expect, risk off sentiment, all around, the dollar, going lower, it took about 20 minutes that to be erased. Report isnk that the more positive than the headline appears, or, people are just trying to view everything with the most optimism that they can, to justify the rally . All of the about. And, the ecb leak today that suggests they might not do anything until the summer. That is all playing into what is going into the markets today. This is not a terrible report. It is just not as good a report as we have seen in response, and that has people concerned. The big disappointment was wages. We thought they would be higher. But there may be a statistical reason for that. This is a very early survey week , in the calendar, and when that happens we tend to see lower wage growth that, then rebounds in the following month. If we have to wait to see september comes back, because there were also seasonal adjustment problems in the number of jobs that were created. If you see two months of this, you might have a reason to be concerned and maybe the market would take a different view. Julia we have to be too careful we have to be careful about reading too much into one number, anyway. It is quite normal, isnt it, for the august number to be revised higher . Seven years in a row, we have had the number come in below expectations. You can see it, in particular, in the school numbers. Only 300 teachers hired . I dont think so. Not with schools getting underway, across the country. That will show up in the report in september. So, we should see a rebound, and it is not going to look as bad as it did today. Id like the point you make about what we see in the education sector. Do i make my point once again, do we have to be a little bit cautious . Is one data point. It is hard to tell what is going on and services. They wantamazon said to hire 50,000 people in the warehousing and Transportation Services areas, along with perhaps some on the retail side. They did not show up. If they get higher anything near that, we see we should see it start to show up in the september report. Report, youember have to realize, is going to be distorted by what happened with Hurricane Harvey. Mom and pop businesses may be in trouble, down there. That may lead to losses in the september report. Mike, one reason why the manufacturing report was treated with such optimism is that it was clear manufacturers are hiring more people, and actually found more people to hire. What does this mean about labor supplies . It doesnt suggest that there are at least the kind of workers that can be put to work in factories. You have to go deeper into the data am a to tell exactly what is happening, because manufacturing is a very broad definition right now. Is it people on the Assembly Line . Is a people who are bookkeepers and accountants working for a factory firm . It depends how they are classified. But the august numbers did show a strong hiring in the manufacturing area, and we saw 38,000 jobs created. That is good news. The september Balance Sheet reduction begins . Yes. Jobsget a number of reports before september, including inflation data we will be watching. You cant really make a determination right now, of what theyre going to do. Lisa thank you so much michael mckee. And of course we are seeing, in the data, the expectations for that rate hike are staying about the same today as they were yesterday. Up, President Trump says he will make a funding request for hurricane ravaged texas soon. But, will the tie it to the debt ceiling bill. From new york, this is bloomberg. Julia this is bloomberg markets. Im julie chatterley. Julia chatterley. Lisa im lisa abramowicz. Republican leaders expect a vote next week for President Trumps expected 6 billion a package request for Hurricane Harvey. But they dont plan to tie that to the debt increase. White house reporter for Bloomberg News joint is now from our washington bureau. This is an interesting thing. Does this make it less certain that we are going to pass some some kind of debt ceiling raise, to head off the u. S. Default . This definitely makes it something that wont happen until the and of the month. This could get his right up to that deadline. The white house wanted to originally pair the rba with the debt ceiling, and have that come up to quickly so the deadline would not come upon us and basically risk of defaulting on our debt, for the first time in u. S. History. Now, it seems like the house once to wait, as the harvey eight on its own, and eventually deal with the debt ceiling at the end of the month, which would get us staring at that deadline and potentially getting to a place of default. Lisa this surprised me. It seems like a nobrainer to go through with this kind of thing, a political cover for the conservative wing of the gop party. Why did the original plan fall apart . House republicans have been waiting for the moment, where they have a republican president the white house, a republican house, a republican senate, and using that opportunity to rein in spending. And even if they have to compare it with the debt ceiling, they want reforms. But they went along with a when president obama was in office because there was a democrat in the white house. Now that there is a republican in the white house, they believe there should be those spending reforms, and they are looking at that 20 trillion debt out there and hoping to rein some of that in. Julia we understand they are not going to include funding for the mexico wall, as well. Thei want to ask you but dreamers, a sensitive subject that has been speculated about over the next couple of days. Listen to what donald trump had to say but the dreamers earlier today. Sometime today or of the weekend, we will have a decision. We love the dreamers. We love everybody. Julia we love the dreamers. Donald imagine that trump would want to follow through on this policy, which has been so divisive, it seems, within the administration. What are we expecting here . Talk us through some of the background on this. You have two camps in the white house. You have the more nationalist camp of people like stephen miller, and the attorney general jeff sessions, saying this program put in by the Obama Administration to protect young, undocumented immigrants, is unconstitutional and should be scrapped. And then, you have people who are more moderate saying, maybe we should continue the program, as we have for the first eight months of this administration, and look for a way to get congress to weigh in and make this the law of the land, rather by executive order. The president has gone backandforth. He said he was going to get rid of this program on his first day in office. He called it constitute he called it unconstitutional. And when he got into opposition to was a tough decision and he wants to deal with it with great heart. And the dreamers, he referred to them as terrific hits, terrific people, and they should rest easy. Now he faces a deadline, trying to come up with a decision before the end of the weekend. And he said earlier today, he is going to make that decision and announce it over the next couple of days. He could be butting heads again with some big ceos in this country. Toulouse, thank you for your insights. Ecb may delight its decision until december. We will discuss. This is bloomberg. Lisa this is bloomberg markets. Im lisa abramowicz. Lisa im julia chatterley. Dupont began trading today. The 130 billion deal overcame scrutiny and antitrust concerns before gaining approval in june. Next up, the companys been carved up into three separate businesses. The European Central bank may not be able to decide on its bond program until the current one expires. Thecials familiar with matter say that would only lead traders with 10 days to adapt. Theyre already concerns about paring back bond buying. And, the suspense builds in the eu. This leads traders with very little window to adapt. Lisa the way the market interpreted this is, the ecb is not going to make any radical changes. Euro,w a weakening of the you saw some of the benchmark bonds go down, but the ecbs between a rock and a hard place here. You were saying earlier, inflation is not picking up, so they should keep this going. They are running out of assets to buy. And they are battling euro strength. Still ahead, gasoline falling for the first time in nearly two weeks. We will get the details. From new york, this is bloomberg. From bloomberg World Headquarters, this is bloomberg markets. Im julia chatterley. Commodity prices are almost are falling for the first time in two weeks. Refineries closed by harvey are starting to reopen. Oil is down for the day, pound for the week. Crude, up by one half percent this week up by 1. 5 this week, after the u. S. Cap to the Strategic Petroleum reserve for the first time in five years. Lets look at what is going on in gold, rising, off of highs in the session. The futures are pricing in a better chance of a fed rate hike this year, than they were yesterday. Turning back to harvey and its impact on the oil and gas Bloomberg David gura spoke to Energy Secretary rick perry, and he asked what the heads of Energy Secretarys are telling him, about their needs on the ground. We had Conference Calls with the oil and gas industry. We have a call scheduled almost every afternoon, with the utility industry. We have been coordinating putting this all together. The events are ongoing,