To watch. Plenty of investors telling us they like the story in europe but is that overdone . We have a bit fiscal promised overnight from germany, and extension. Tom let me get right to it. Or can laura in a moment and then we will go to Dennis Gartman. Your first word news in new york. From theing today National Hurricane center, and says that hurricane laura will rapidly strength into a category 4 storm with winds of at least one of the 30 Miles Per Hour. The storm is expected to make landfall late today or early tomorrow morning along the louisianatexas coast. It has already disrupted oil and natural gas operations throughout the region. On the second night of the Republican National convention, speakers try to humanize President Trump and highlight his leadership. First Lady Melania Trump spoke from the white house rose garden. I dont want to use this precious time attacking the other side. Because as we saw last week, that kind of talk only serves to divide the country further. I believe that we need my husbands leadership now more than ever in order to bring us back, once again, to the greatest economy and the strongest country ever known. Secretary of state mike pompeo said the president had made historic progress toward middle east peace. I know wisconsin, the governor has declared a state of emergency. There was a third night a violent protest in kenosha over the Police Shooting of a black man stub businesses were vandalized and buildings were set on fire. Shots were fired in a confrontation between protesters and a group of armed men. One person was killed and two were wounded. The trade deal with china may pay offer farmers in the u. S. Bloomberg has learned that beijing is said to fight a acord amount of to buy record amount of soybeans, around 25 more than in 2017, which is the baseline you for the trade deal will stop chinas taking advantage of a drop in soybean prices. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Tom yields higher today. Right now up three basis points. The real yield stable, which means we got nominal yield up, Inflation Expectation up as well. We have a turn in the equity markets. Anna edwards . Anna lets look at what we have happening here on European Equity markets. We are up by. 3 on the stoxx 600. The dax providing some support. That fiscal stingless overnight with the extension the job support scheme, the furlough scheme, essentially, from germany adding to appetite for risk assets here in europe. We are off our highs. Some of these markets just typically to negative territories. Eurodollar down. Tom very good. Right now we what to bring in some when i worked with over a decade. Rob carolan is given me wonderful, wonderful nonhysterical weather coverage with Bloomberg Radio and we are thrilled he could join us for this important hurricane today. Rob carolan, i want you to explain how i storm hits cuba twice just with jamaica, turns rate, and heads up near louisiana and texas and gathers that force, the physics of how it gets so strong so fast. How does it do that . The scary part was the fact that it was able to hold itself together as it moved along the south coast of cuba. Over the week it was of the circulation maintain itself and began to become alarmed because doing the water temperatures are close to 90 degrees in the gulf of mexico and theres a big high over the full. We knew it was probably going to be a dangerous storm. What it is doing is it is moving along the southwestern periphery of the bermuda high. That is the driving force in the Atlantic Ocean during the summer months. It strengthens and brings heat and community to the eastern and Central United states or in the summer. This term is tracking along its periphery and coming around the southwestern side. That has allowed it to make that turn in the call. With water temperatures between 85 and 90 degrees ahead of the system, a big high over the top of the gulf, it is in the right place at the wrong time. It is going to intensify very rapidly. The air force reconnaissance has been showing steady, rapid pressure falls and we do expect it to be a category for big hurricane wind makes landfall tonight, very close to port arthur, texas, on the louisianatexas border. Anna good morning. Tell me a little bit about some of the detail of the damage we would expect to see created here. The National Hurricane center this morning saying it could be lifethreatening, of course, talking about a storm surge , extremewinds, flash flooding. A whole catalog of expected effects, negative effects from this hurricane. Exactly. The storm surge is the greatest threat because the border levels along the southern texas and southwestern louisiana coast are likely to rise 15 to 25 feet with this store. They will see storm surge flooding as part of the west as houston and possibly as far to the east as areas outside of new orleans. Storm surge watches is in effect for those areas. Is, how intense does the storm get by the time it makes landfall right now we expect the winds to be at least 130 Miles Per Hour sustained with gusts at 150 Miles Per Hour. A category 4 goes all the way up to 155 Miles Per Hour. The storm is getting a large circulation. The air force is finding the Hurricane Force winds are about 70 miles out from the center of circulation. The Tropical Storm force winds, 175 miles out in the center. The folks in lake charles are distance, but there is potential damage as far east as lake charles area and potentially some of the cities off to the east of the houston area could see Tropical Storm so it will have a big impact along the texaslouisiana border. And they have the tendency to produce tornadoes so we will probably see tornadoes tonight in the area stop in the rainfall. Several inches likely along the path of the storm as it moves inland overnight along the texaslouisiana border and eventually takes a turn toward the Tennessee River valley over the weekend. Tom i know it is harder than predicting the next red sox win, but what does the rest of Hurricane Season look like . Can you take a crystal ball and estimate what september, october, november look like . We are in the height of the season. It usually occurs around september 11. We are still we still have time to get more storms. The interesting thing about this season, we knew it was going to be active because of a developing lending yet la nina, but the oneandone has been the saharan dust that has been blowing off the sahara and across the atlantic. What it has been doing is keeping the storms from developing far out in the atlantic or when they have been doing so, theyve been developing further south than we normally see. What that may end up meaning is we dont get big storms that we saw with say hugo or marilyn in years past, but we may see storms that develop more in the central or western caribbean or gulf, which means the western caribbean, the coast of mexico, central america, and the entire gulf coast may be more at risk through the remainder at this seas and then say the areas of the east coast. If that saharan dust continues to come off this era, which it is doing, it may mean we are seeing more of an impact further west than the Atlantic Basin rather than the east. Anna really good to speak to you. Rob carolan, bloomberg meteorologist joining us with great detail of this particular hurricane and hurricanes still to come perhaps as well. Later today, Kansas City Fed president Esther George speaks to bloomberg 7 00 a. M. In new york, 12 00 p. M. In london. All of that in the runup to jackson hole. Will we get the same beautiful backdrops we normally get of those interviews that we bring to you from jackson hole . We will have full coverage. This is bloomberg. Tom bloomberg surveillance. Good morning. Were are looking at a turning up, sbx flat this morning. We will see where we are in a few hours. Right now it is simple to say, potential football coach at his North Carolina state, but far more, Dennis Gartman is the mother of all gold calls over the last 20 years. For a while he was a pinata. Gold was not working out. He said own gold in yen and euro and it is been a gartman moonshot, one of the great successful traits of a generation. What are you doing with gold right now, Dennis Gartman . Goldstead of being long on in yen, i am not long in u. S. Dollar terms. As ive said for years, there are times when i want us to be bullish and times when i want us to be bears with gold. Im not a gold bug. I dont think you should always own gold. But i think given the expansionary monetary policies here by the fed, by the bank of england, the ecb, the bank of china, the reserve bank of russia, the bank of canada all of those monetary authorities of consequence have been expansionary and i think that is what is driving gold prices higher. Gold is still unable market. The highest correction in the past two weeks or so. I think you should belong on gold, period. Tom do you have a support level for gold where you load the proverbial gartman grain banks . Is it is there level where dennis says this is support . 19. 25 should be support. I think between 1900 and 1925, there has been, should be, and continued to be supportive. We start to take 1900 on the low side, i will reduce my position just a tad. Not dramatically, just a tad. Anna denis, good morning. I was interested in a story i read this morning called hoarding gold, bitcoin, and whiskey. Are you nervous about inflation . Does that make you want to hoard the other stuff, the bitcoin and whiskey . Yes, and beginning to become quite concerned about inflationary pressures. Take a look at the grain market. The grades have made lives and continue to move higher. Youre seeing strength in copper and tin and aluminum stuck crude oil is a little stronger. Not higheresting is because of what is going on in the goal. Gulf. Livestock prices have been moving higher. Of course, what happened and it of course of the past humans in lumber is something to Pay Attention to. Thought it was interesting he was. Rosenberg, said going to be amenable to and would allow the movement of inflation about 2 for protected period of time as long as the Unemployment Rate remains above 10 stop certainly, that is going to happen. The monetary authorities have been expansionary. [indiscernible] that is interesting, the positioning of inflation relative to unemployment. A lot of people on the other side would suggest if for percent unemployment 4 percent unemployment did not generate inflation, why would 10 . Nobodys paying much attention to the fact we have become very protectionist around the world stuff i think that is going to drive wage rates higher over the course of the next year, to, or three. We are trying to bring employment or production back from china to the United States. Automobile workers in the u. S. An hour. 80 to 10 per hour. As long as trade protectionism is rising in the industrialized nation, i think that will drive wage rates higher. Dennis, one final question and i want to go to the back end of your newsletter, which has been retired. You have been a sharp critic of this president. What would you look for here that mr. Biden needs to do to take suburban votes your North Carolina state . What is the gartman prescription for Vice President biden . He has sent a decent job of taking those votes. I think what really has to happen is the president of the United States and i will vote for him, lets be blunt, i will do it, lb reticent but i will do it if you were adopting more adult posture, a list tweeting posture, a quieter posture, i think it would help him a lot with those voters that he seems to be losing. Mr. Biden, by remaining quiet, has done himself a service. The president , by remaining loud, has had a disservice. I think the president can get those voters loud if you would become a little more adult, little more president ial, little more right ronald reaganesqu e. Tom Dennis Gartman, thank you. Gartman on gold. You heard him say support here, 1900, 1920 five level. Futures are mixed today. Jerome powell tomorrow at the jackson hole conference. Michael mckee on top of that story. Coming up in the 9 00 a. M. Hour, morgan stanley. This is bloomberg. Healtht now our economic is coming back with emergency spending and tax cuts. Americans are going back to work. There is a housing boom, an auto boom, a manufacturing boom, a Consumer Spending boom. Stocks are in record territory. A vshaped recovery is pointing to better than 20 growth in the second half of this year. Anna white house Economic Advisor larry kudlow describing the recovery as vshaped, though many economists see a bumpy road ahead. Still with us is Dennis Gartman. Dennis, one thing that does look vshaped if you squint a little bit is the recovery in the s p. We see new highs there and new highs on the nasdaq. Just how out of kilter come out of your range of possibilities is the positivity we are seeing in equity markets right now . The problem we have or i have in the stock market is how narrow it has been. Everyone is talking about that and they should be. The fact we have five or six stocks that have led the entire market higher, take a look at the broad stock market itself, the s p 500, about 400 of these stocks are lower for the year. Five or six or higher. In higher dramatically. That is bothersome. When you see the narrowing of rotation, yet to be concern. It reminds me of the early 1970s when the nifty 50 took the market higher and the at the market collapsed in september, october, november that year. It bothers me it has become this small, this tight, this narrow, and i think it should be paying attention to that fact. Anna is it all about Retail Investors . I think it is somewhat about Retail Investors. It is bothersome to me as a longtime pro in the market that you have got robinhood taking the lead on some so many things. You have people saying this is a business, buy stocks and they go up. That is not exactly true. If you bought microsoft, apple, any of the yes, they go up. If you bought banks, not so. Energy, not so. If you bought agricultural stocks, not true. Narrowness bothers me a great deal and makes me less enthusiastic about stock prices at these levels. Tom dennis, there seems to be two americas. Mr. Kudlow talking about the prosperity out there. We see that in the equity markets. A lot of valuations. That is all fine and well, but how do we pick up the rest of america right now . Are you in support of immediate stimulus . Physically toat the right of genghis khan when it comes to most circumstances, but given the events that prevailed and given the pandemic that is curtailed Economic Activity around the world and here in the United States, we have no choice but that monetary expansion and fiscal expansion. Get together a pass more legislation. Normally i would never say anything like that but given the circumstances that prevailed, we have no choice. We need it badly. Fangs right buy the now . Ill let someone else who is wiser, more courageous than i am and probably younger than i am do that. God bless them. I wish them well. Is there any value in stocks . Some people talk about a kshaped recovery. Some have gone skyward and others have gone down. Maybe those maybe there are some value stocks that need to pick up. Do you see any of that . If you made me buy something, i would probably like to buy general motors, ford, exxon, chevron, the banks. They seem relatively inexpensive, relatively cheap, and likely to do better over the course of the next 2, 3, 4, 5 years. Will i buy the faang stocks . Not with toms money. I will let someone else do that. Im a believer this will be a w or i like this k version of economic rebound. We are bouncing a bit but will we have the same number of hotels and restaurants come the same number of Small Clothing operators that we had eight months ago . Not for very long period of time in the future, im afraid. Anna what happens to our cities is a big question. Thank you so much for joining us, Dennis Gartman. The gartman. Of elector. , salesforce. Com ceo joins us later. This is bloomberg. Donald will not rest until he has done all he can to take care of everyone impacted by this terrible pandemic. He has in of the unfair trade arrangement with china that punched a hole in our economy. Those jobs are coming back home. Right now our Economic Health is coming back with emergency spending and tax cuts. Americans are going back to work. Looking ahead, more tax cuts and revelatory rollback will be in store. I dont want to use this precious time attacking the other side. Because as we saw last week, that kind of talk only serves to divide the country further. I believe that we need my husbands leadership now more than ever in order to bring us back once again to the greatest economy and the strongest country ever known. Tom the first lady, secretary of state speaking at the original National Republican convention. We have with is the original emily wilkins. Congressional reporter as well. Emily, i am fascinated. I know a few people have spoken from the hill and a supported stagednt trump in this convention. Great. But there seem to be so many people missing. What is the response of