Safety around the world. She said he has good advisors. In israel, the wife of Prime MinisterBenjamin Netanyahu is facing indictment on suspicion of misusing public fans funds. She allegedly overspent at private on private meals at their residence. She called the charges absurd. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Abigail live from eric. New york. Quiet but therly dollar at its weakest level in more than two years. Eric the question is what you miss . The hurricane continues its barrel toward florida with millions and the potential path of destruction. Billioncould reach 200 tapping hurricane katrina. Investors have almost 9 billion in funds but hedge funds are asking clients to remain calm. Congress passes a shortterm debt ceiling go that republicans in congress are blaming House Speaker paul ryan for letting democrats get the upper hand. Our top story, authorities are ordering more than 650,000 people to evacuate the miami area as hurt and irma churns closer. The storm has left 21 people dead in the caribbean and trends to be the most expensive storm in u. S. History. Nathan crooks joins us live from miami. Thank you for joining us. What are you saying down there in miami at this point . Nathan we are getting into the final stages of preparation for the storm. By tomorrow we will have some wins and sunday is the big day. People are in a final rush. You can see some lastminute people checking in to ride out the storm. The streets are mostly deserted time in that part of down downtown miami. The local government has said they are opening up more arounds for up to 100,000 people. We are seeing the final stages of preparation. Where are they going, are they trying to get deeper into georgia and some of the states are the, how far evacuees trying to get . It depends on how you are going to evacuate. The people staying have been encouraged by if you are living in a mandatory evacuation zone they have been encouraging people to seek shelter with friends or coworkers and people who are driving went to tampa or orlando people are getting in their cars and going north. The people that were flying with getting tickets anywhere. I know people went to new york, houston, gla,as, people were going to the airport in getting on planes wherever they could find a ticket. Possible is it for someone who has until now the site to statement their way out. If they get on the road and presumably get somewhere to safety in the next six to 12 hours . Brexit window of opportunity has narrowed. The airport is going to close at 135 milestain an hour. If youre getting in your car ,ou have to look at the map were about to see the effects of the storm. The authorities are saying it is time to get where you are going to get that it is time to hunker down and write this out. Couldt Hurricane Irma cause tens of billions of dollars in damages before he gets to the florida keys. Howard just joins us from savannah, georgia. Thanks for joining us. Give us a sense of what the 10 to 20 million in damages and, what is involved in what is included and what is not included, what is insured and not insured. That is in the caribbean. Covered, some of it is by various programs, there is some insurance caribbean but a lot of that we are looking at, i pulled up the latest estimate, impacts3 billion and across the region we can account for. A lot of that is infrastructure, some of the smaller in the french territory quite devastating. The u. S. Landfall is a scary thing from a Financial Economic standpoint. The numbers are astronomical, it was hung 150 billion in u. S. And florida impacts. Which is a nightmare for the Insurance Markets because a lot of that would wind and wind damage is what its the insurance industry. Right now were looking at 92 billion if it follows the current track. If the storm continues to slide westward and goes up through the sarasota matinee bills naples, tampa area of the amounts go to the one 20s. Eric could you tell us what goes into the art and science of risk modeling, what are the key inputs that go into your models . Is beyond entrails but not much better. We looking at a set of sophisticated computer models. We start with a representation all of the infrastructure property, Economic Activity on the entire earth. We do this modeling worldwide. For every one kilometers land surface as well as offshore we have a representation of how much property is in that grid cell, how much it is worth, the value it produces to the economy. That is the first component which is a sophisticated model. We then run very sophisticated weather models, in this case hurricane models across that economic surface or landscape. Much wind, water, on each onesurges of the one kilometers squares. From that calculate how much damage it can cost and how long infrastructure is likely to be out of service. Complicated calculation for irma. You have to run all the way from the peninsula. This storm runs like we are looking it will be hard to get storm supplies down to the florida area. Scarlet i have been reading and you referenced it about the turn that irma could make on saturday. What are your models suggesting right now . Trex we tend to go carefully with what the National Hurricane center guidances. Those guys in miami are professional, they do this every day so we stick with their forecast track. We do look at run the other models to see what the variation is. On the current forecast track it. S splitting the difference it is going and between hitting miami and the big infrastructure in miami and tampa. It is called calling for the devastation. Orlando gets hit no matter what. That is the one were looking at. We do not know. At the satellite imagery there is a friend coming through that was expected to start the storm turning. It has not started turning it. They do not know, were not sure either is it going to turn it is getting late for it to turn into miami so are we looking into the hes and the everglades which helps little bit or is it going to slide into the naples area and into tampa . Either way, it is a lot of very valuable infrastructure and looks to be a big financial hit. Scarlet great insights, we will all be waiting to see how the hurricane does play out. Chuck watson, thank you so much. Coming up, while florida races , houston is still recovering from the devastation of Hurricane Harvey. With the Energy Capital of the world underwater, how is the power sector doing question mark alix steel sat down to find out. We will ring that to you next. This is bloomberg. X cleanup efforts in houston followed after the catastrophic flooding of Hurricane Harvey and with two more category for storms in the horizon, should Energy Section they worried . The Energy Sector be worried . We as a company have always wanted to risk to the extent we could prevent these things from impacting laredo. We had multiple places we could take our crude, places we could wet gas. Ask, we we had almost no description. There was a fair amount of scrambling making sure we had these of fracking crews and our ranks but as far as though i is concerned, we did not lose production or flair much gas. The bad part is already there and the recovery has started on that. Those kinday no to of questions but i do not think we will be impacted. Lets talk about quarter. The responseeel from wall street was, you didnt have an increase in production and oil but it was lower than sequentially. Talking aboutn gor in our properties and guidance is in the range of 45 to 47 . We have increased our growth production amount. In the First Quarter 17, we said we were at a 45 , the Second Quarter because we had completed a number of wells at the end of the First Quarter, we got the benefit of those in the Second Quarter. The oil content at 47 . It is now back to 45 but over time, it will be at 45 , 47 as far as we can tell and we have been talking about this for three or four years. It is a function of cadence on completions, if they happen first in the quarter you get the benefit of that flush production longer. At the end of the quarter you do not get that benefit. Alex wells were getting more expensive. The worry is that companies are over drilling and making mistakes and they use that mistake and move on to other wells before the understand what that mistake is. What are you doing to prevent that . Ve been talking for a long time that the right cadence is not just your financial ability or acreage requirements created is making sure you do not run out in front of your data and your interpretation of the data. We set a long time ago that we had significant inventory and we did not have to drill close. Productionacreage years ago. We had a cadence that allows us to make sure we do not outrun our data. Ofstarted drawing packages drills, and so for us that has governingf our beliefs in how the business should be, you need to be capital efficient and growth for growths sake is not necessarily the right way of doing it. Alex different from some of your peers. Communicate a lot, i am not sure how well it is received. We are going to grow more or less within cash flow, sometimes more, sometimes less but we will be the most capital efficient we will be longterm. Flow,you mentioned cash you need money to do all of this. The pipelinein that you cohn is looking to sell, you have some midstream assets, which you be looking to monetize those and use that to drill . Randy the thing about the midstream asset, we are a 40 nonoperator and we said for a core to us in is how we think about the business and we invested in that so we could take our crude outside of the base and wheeled the crude in a couple of places. We are not subject to huge basin differential. A couple of years ago we sold most of our crew to the gulf coast. That you doncern is not have the capacity to take it out because there is so much coming on stream. Randy the midstream guys, if they see demand for pipes they will put it in the ground. That is not an issue longterm. For us we have created, made investments in our infrastructure for years. It is now we can document how well it is paying off. Thater we on ebitdaructure, use the or turn it over, we have created real value, we have potentially , and we talked about that in our presentation and that is a result of S Investments we have made. Alex what would you need to see to accelerate meeting also what would you need to do to buy more land because the way you are, land swaps will be hard. You would have to buy and permit is expensive now. Most of ourught acreage very early. We stopped dying when acreage cost got to 1000 an acre. We started buying in 2007. We bought about an 80 mile long trend and 20 miles wide, that was the deepest part of the basin at the time of the position. The recent has moved so we have a lot of section to look at. We did not really participate in process ative land all because we did not need to. Inventory. Stantive we have seen this boom bust cycle five times now. As ceo of the company i founded it. We did make some acquisitions. Our view is that for us to go out and buy significantly more to be as good or better than we have and that is a high hurdle. If we can buy and we did make an acquisition earlier this year them a 100 million which allowed us to make an increase in our working interest and extend core doors, it allowed us to do what we do best which is bring capital efficiencies to bear. Fauch. T was randy of the hour. Stock from new york, this is bloomberg. Scott we are focusing on target now down more than 2 . It is cutting prices on thousands of on it. It has come off the lows. Julie it has come off the lows. It was going to do this. It was that it did out to consumers in a more formal fashion and it is trying to get away from the promotional cycle where it is offering sales on select items. The way it is pitching this is that you come in and there are low prices, they will do some sales but it sounds like they will be a little bit more selective with the sales. Those promotions were to get people back in the store after the credit card reach and spur their come back and that has helped to some extent. If you look at their samestore sales a saw the rebound last quarter. In the most recent earnings report, they reported that rebound that was better than estimated and that helped finish shares higher after they saw quarters of declining samestore sales. Even though the stock is down it is not necessarily a big surprise and the irony is that amazon announced it would be cutting prices for whole foods excited thatwas target says the same thing and stocks go down. Targets about that experience. I do not want to go to something that is like walmart. Julie they are competitive with the walmarts of the world. It is a matter of trying to cyclicality. E i want to talk about Gross Margins. It is a question of how much flexibility these players have with margins at a time of rising is cutting into their margins as well as what is going on with food. This is Gross Margins of the various companies. You have whole foods in purple, it has relatively hefty margins and it is known as being overpriced tomorrow hope a check. When theyre cutting prices it is dramatic for target. Target is in white and walmart on the bottom and there is amazon his Gross Margins have which isdily climbing, interesting. They are getting their revenue from other sources, not just from selling stock it also selling web services. It is interesting to look at the gross margin picture. Cuts pricesn investors like it. It is the perception they are doing it from defense. When amazon does it it is a power move. Julie when people look at amazon they see what they perceive as a roast Growth Company and something that is dominant and when they look at target it is seen as an older company, something that is trying to compete with the walmarts of the world. It is all about a lot of it has to do with perception. Scarlet maybe target is seen in the same way. Has always been seen that way. Is time for the Bloomberg Business flash. A look at the biggest stories in the news, one of the biggest tax in history. Jeopardizing 143 Million Consumers in the u. S. , the access to names and Social Security numbers and credit card numbers. They face multiple state and federal probes and Congress Plans hearings. Hasthe drugmaker transferred rights to the saint regis mohawk tribe. The move puts intellectual property charges out of reach and could save the company aliens of dollars. They will pay the tribe 13. 75 million and an additional 50 million a year in royalties. That is your Bloomberg Business flash. Scarlet we will take a look at the major indexes with less than four minutes to go before the close. Little changed in the major indexes. This is bloomberg. Scarlet whatd you miss . Changed overittle the week. At dollars think to its lowest level in more than two years. All eyes are on Hurricane Irma as it heads toward florida. Abigail i am abigail doolittle. Scarlet i am scarlet fu. Joe i am joe weisenthal. Julia chatterley is on assignment. If youre watching on twitter, you can watch our live coverage. Atrlet when you look equities, not a whole lot happening in terms of major indexes. Although the nasdaq had its worst week in the month. Joe so much news between the , theics, weather earthquake, geopolitics. For the most part, not a lot of headline action for equities. Scarlet and in nice round number for the dow, 21,800. Abigail we do have big movers on the day starting out with equifax. Down 13 , its worst day since 1999. There was a massive Online Security breach of the credit bureau. Hackers may have gotten the information on as many as 143 million. And there is evidence executives sold shares the day after the hack. Investors clearly not liking any of it. Turning to big movers, read resources down 7 . Emp downgraded to neutral. It is now down to 52 this year. Freeport mcmoran having a rough day, down 6 . Copper down 3 on the day. They say that is about profit taking. Copper had been doing well this year. Take a look at xl capital and chubb. Investors not worried about irma. Chubb action higher on the week. Joe lets take a look at the u. S. Government bond market, the twoyear and 10 year. Yesterday we saw a dramatic move lower in Government Bond yields everywhere. Some of that after dovish fed comments. Twoyear yields unchanged at 1. 27 . . Year at 2. 06 scarlet u. S. Dollar now down for a seventh straight day. Not a fresh 32 month low. Closing out its worst month since may. Trading is fairly light ahead of weekend risk. You have Hurricane Irma bearing down and possibility of another north Korean Missile test. The loonie all over the map after a mixed job report. A net increase in jobs and a drop in the jobless rate. The bank of canada unexpectedly raised Interest Rates and left the door open potentially from our rate increases. Over the longerterm term, the loonie has been on a steady rally. That is a threeyear chart i am sorry, i meant for a different time period. As of late, the loonie has been on a rally. Joe lets take a look at commodities. Lots of interesting moves going on. Nymex crude selling off today, down 3 . Texas intermediate below 40 a barrel. Gold not doing much. Orange juice has been all over the map this week, with traders trying to position, figuring out how Hurricane Irma will or wont affect the florida orange crop, up 5 . All the Industrial Metals having a bad day today, the third worst day this year. Trade data out of china causing people to question underlying sources of demand. Nickel got hit. Ugly day for Industrial Metals, including copper. Abigail lets take a deep dive into the bloomberg. You can find the following chart using the function at the bottom of the screen. I would li