Another 1 in europe, the impact of the euro, now it is 1. 20 yeah. Most of it happened friday i cant say it was that much of a move, felt like the cap stone of a huge move it was almost a parody earlier this year. Now at a buck 20 theres the euro, 1. 193 it was 1. 17 and change, just under 1. 18, then went up to 1. 20, led by a pound at some point, and all based on comments from jackson hole. Doesnt say things are awful, i guess the implication, take it another 10 higher. She didnt say things were great. People know all right. Well get to texas in a minute first, an important corporate story to tell you about after a bizarre ceo search, wasnt it . Finally chosen, uber has, expedia Ceo Dara Khosrowshahi to be the next chief executive, he has been with expedia since 2005, credited with expanding the global presence. He immigrated to the United States from iran in the late 70s. He says he was the truth pick for uber he has been very inquisitive, visionary, i guess barry diller met him when there was something going on with paramount, and he was impressed with the way this gentleman was able to crunch numbers, brought him over to his shop, now here we are. And he did okay at expedia, although it wasnt that outsized, 95 million his comp. Would be 95 million. Couple years ago, that was the incentive price if he stayed through 2020, which now he wouldnt unclear, i cant imagine that uber would be lucrative to attract him there and of course its already richly valued, not even profitable. So if you come in valued at 70 in private markets, thats a lot of pressure to take it public with a valuation like that. Former ceo withdrew when it became clear he didnt have enough support on the board. And what does that mean, i have decided not to pursue a leadership position or they have decided i am not pursuing a leadership position at uber. Reads weird. Which was it it is a bit like the trump stuff. Thats what i thought thats what i thought. Are you leaving or pushed out. New york times says another finalist meg whitman couldnt agree on terlms wait a minute, she was talking to them . She gave a presentation saturday this happened in a previous job, too, had to be begged and cajoled to come along. Corporate america, we watch corporate america, youre part of it. Anything you say today, do we have to say well, he said that, but it was like spin or sort of sugar coating . Can we believe you today thats all i want to know. She swore six times over but at some point, they say she said im not going there. Of course but at some point. She made a presentation want to be in that position of saying we desperately want you. I wouldnt know he said he thought they were not i think company focused enough, after everything that played out, you could believe him. Again, he said he said, but dara is a rock star this is a guy thats been at expedia 12 years lately arguably theyre under pressure they have home away, saw the air bnb thing coming. Smart guy, financial type is he up to the challenges the company has in terms of dealing with key shareholder base, key constituency, existing shareholders and potential shareholders Going Forward, not his customers. Customers dont care who the ceo is they want to get from a to b potential investors, future shareholders want to know what are you going to do for surge pricing. Are you going to alienate customers, how are you going to manage what do you think he will do . What does that background bring to a company like uber. Public appreciation for various stakeholder interests. He knows how to get a share price. Having managed for future expectations so he doesnt offend future Hurricane Harvey is a Tropical Storm, the flooding is incredible Angie Lassman joins us with the latest forecast. Good morning. Were keeping an eye on harvey, continuing to be a problem for folks in Southeast Texas you can see what we are watching as far as radar goes still, heavy rain on it. Good news, houston is not seeing heavy rain overnight we, however, are seeing plenty of torrential rain into portions of beaumont, lake charles area dealing with that as well. We continue to watch for tornado watches as well as flash flooding the flooding the big story the past couple days still tornado watch in effect later this afternoon you can see flash flood warnings from bay city, houston, galveston to portions of louisiana, lake charles area included, and we have flash flood watches extended further out of there we watch for continued heavy rainfall in the forecast in the next couple days this is a marathon, not a sprint we continue to see over 30 plus inches in areas of houston thats two feet of rain in many spots, watching for another 15 to 20 inches of rain we will watch for officials, they have to make a hard decision to open dams, areas that havent seen as much flooding will be watching for flooding as they continue to let water levels decrease. Still much more to come on this. Youll notice rainfall amounts, record breaking in many areas, houston area all the way extending to portions of louisiana, we are watching for conditions to last the next couple days. Continuing to see the flash flood warnings and watches in effect and tornado watches as well much more to come on this. Back to you guys unbelievable. Thank you. Lets get to galveston Crucial Point for the shipping channel for port of houston. Brian sullivan joins us from there live brian . Reporter good morning. Thank you very much. The galveston ship channel, busiest in the country remains closed port of houston which is four separate ports basically remains closed refineries that are all along there effectively remain closed. Thats taken 15 of the Refining Capacity theres enough gasoline to last about 23 days. A lot of gasoline we get in the northeast comes from this region via Colonial Pipeline. Right now, that pipeline is fine, theyve reported no issues at all, but it is early. Obviously you have the humanitarian issue nothing is more important than that from an economic perspective, this is not only a heavy oil region, gasoline region, but heavy gasoline region for us lot of people dont realize that in the northeast because a lot of this goes there to get oil refined, you need a couple of things you need oil and people. Yesterday we tried to get to some refinery areas. We got so far until the roads were blocked you may have seen images last night. We were some of the first on the scene in the morning where we are driving up 45 north toward houston, the road just stopped people were coming the wrong way on the interstate, generally a good sign something is not well up ahead and roads are flooded. Most side roads are flooded, some significantly so. People were putting in boats, tried to make it up there in the afternoon, obviously that didnt work as well i bring it up not only because it is fairly dramatic, there were a lot of individual heroes, people with boats and driving buses, going to rescue people, but lets not forget to run refineries and ports, you need people if you cant get to work, if the home is underwater, youre worried about your family, theres a labor issue along with the humanitarian issue that we need not forget about. Brian, how much Refining Capacity are we talking about all together reporter it is hard to know. The whole southern texas region is about 2. 2 Million Barrels per day. That includes where Jackie Deangelis is in Corpus Christi half of that in houston area most refineries are off line i say i dont know exactly some of the Companies Wont give you the total. Exxon shut down bay town, 560,000 barrels a day. Shell, 340,000 gallons marathon with a massive refinery just over the bay from where we stand says theyre not giving operational updates, basically the safety of workers is what matters. Theyre not being clear as to what the status is well try to get up there later today. Starting to rain here again. This is not what this area needs, guys, more rain going to try to make it back that way through the day today, see if things are opening up or getting worse. Theres nowhere for the water to go theres a bay on one side and bayou on the other were on galveston, on an island, and you cant get off it you get off it, the roads stop see if things change today its tough we have it better than most people to be honest. Brian, well check back shortly. Brian sullivan. More on the economic and Financial Impact of Hurricane Harvey, joining us, chuck watson, hazard analysis expert and founder of anke holdings this is shaping up to be like allison in terms of water, probably worse at this point in todays dollars and severity of the event, too good morning. Its amazing you hear words like epic, monumental around these storms sometimes it is exaggeration i was crunching numbers and it is hard to exaggerate. Allison is a pretty good comparison, but numbers are overwhelming it was in todays dollars, probably about 12 billion. Some of the model runs show harvey in the 30 billion range. It is going to blow out allison in terms of total impact apples to apples, allison was 12 billion back then in 1992, or are you already putting that in todays dollar those are adjusted 2016 dollars. This would be two and a half times that thats what it is starting to look like. Theres a couple of reasons for that it is important to realize how big the area this is covering. People focus on the reports from houston area, some are pushing 30 inches, may get another 15 inches this is Something Like 30,000 square miles of texas getting ten inches of rain or more, all the way into austin, gauge reports over ten inches. Thats a phenomenal amount of water. It has to go somewhere and where it is going are into rivers and channels and roads and houses, and so in terms of the area thats being inundated, significantly larger, plus with growth in the houston area, thats adding to it as well. It is shaping up to be just an amazing dollar value human suffering aside. Right and we are right in the middle this is not the recovery effort, still in the rescue stage. Oh, absolutely. In terms of estimates, all these estimates are based on the model. Theres no way you can get in there to do a proper Damage Assessment we are running computer models which tend to be fuzzier for this kind of flood modeling, with a normal hurricane, even 24 hours out, you can get an estimate within 10 or 15 on the damage and losses would be with this kind of event with so much flooding, suffers from what i call the trash can, fish problem. You have a minor blockage of train aj outflow can cause water to back up and flood places that wouldnt order necessarily, this case you have cars blocking drainage it is tough to get an estimate on at this stage. Chuck, question for you now that we see so much water being the issue, does that mean National FloodInsurance Program is on the hook to the extent, 25 billion in the red already, but isnt it the case that if this were wind mostly that caused damage, it would be a lot of private insurance, but if it is all this water, thats on the government, right . Exactly thats going to be a huge political issue coming up. Just to give you an idea, you look at historical storms, generally in modern era since the mid 2000s, for a wind event, 50 to 60 coverage between total losses versus private insurance sector you look at allison, for instance, about 30 was covered by private insurance things like Business Interruption and some wind damage you look at a storm like harvey, looking at probably 25 in the private sector private sector insurance, not so good for public institutions, we are looking there at 25 billion of losses that wont be covered by private sector insurance. Some will be covered by flood, but National Flood insurance system is in a mess. Yeah. Where is that money going to come from, chuck is this something that washington has to put special funds aside for, they have to find somewhere yeah. And theres the rub. In the current political climate, with the debt ceiling coming up and budget arguments going on, i have mixed feelings about that in one sense it could be a deadlock or excuse folks need to get past the debt ceiling, saying oh my god, natural disaster, we will be budget hawks next year. It is hard to see how that will theres no way doing prediction of storms is easy compared to predicting what goes on in washington, d. C. That was Tricky Enough without Hurricane Harvey these people need funds right away thank you for joining us youre welcome. Chuck watson, founder of Enki Holdings for more on the hurricane impact, bring in founding partner, a lot of focus, understanding this properly, oil is input into refining gasoline is the output whats happening with that whats the biggest impact for harvey i have the total of refinery outages about 2 Million Barrels. Based on information that i have that means 2 Million Barrels a day Less Crude Oil demand, why you see prices on that side of the ledger lower i think this will be a steady climb higher and higher and higher for gasoline as the realization dawns that these units arent coming online any time soon as Brian Sullivans video showed awhile ago. You cant get the people there to turn the units on typically with the hurricanes it is a glancing blow theyre built to withstand category three, category four hurricanes they can handle the wind, they can handle temporary flooding, they can handle temporary Power Outages that come with this kind of situation they cant handle not having folks on the ground to get things restarted thats going to be the big problem. It will put upward pressure on gas prices. It could be a slow but steady climb that becomes all of a sudden eye popping. How long are we talking for outages. Theres another 20 inches of rain coming, nobody is going anywhere, any time soon. Wont be able to restart in my estimation for at least another week, at least to the weekend until they can safely secure the roads and the people and get them back to some normalcy in their own lives before they can get back to the plant. From there, takes another several days for plants to come online good news there, that will be quicker than folks assume at the moment, doesnt look to me especially from video and other things i have seen that there was real damage to the refineries from the storm itself it is flooding thats the issue. John, how does this change the curve for gasoline and crude, short and versus further out . Will tighten things in the front. This will be a slow but steady, march to u. S. Gasoline shortage for the eastern twothirds of the country. It will put us back and if theres other refinery issue, fire or outage, had several of them in the past couple weeks that got gas Prices Higher as it is, so were starting to get a little tight, thats going to make us more vulnerable. Only good news is that come october 1st on futures board, we start trading winter blend of gasoline, more plentiful, easier to make, and not as stressed on the system, so were at an interesting time period in that consumers may catch something of a break for awhile, but this is going to be slow and steady climb higher. Global market, too, even though were producers and consumers, apparently we export a lot of product, mexico, latin america could be dealing with shortages as well . Absolutely. Were all now competing for international barrels. Typically historically you could see the northeast would probably be the best off, can get a lot of european supplies, but southeast is where the pain will be felt, as brian also mentioned, Colonial Pipeline and other pipelines feed out major amounts of that houston area refining product to the southeast, thats going to be impacted not real easy to get asian barrels to there or other latin america type product from there, and also, too, some of the caribbean refineries are having issues, in particular venezuela major refinery because of problems going on in the country there. Thank you coming up, check out the markets and Everything Else thats happening on this monday. Well get you up to speed on that, some of the biggest movers programming note, wednesday, Warren Buffett joins becky quick live in new york at 11 00 a. M. Eastern on squawk alley. Anyway, squawk box will be right back ronoh really . Gs going on at schwab. Thank you clients . Well jd power did just rank them highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to wealth management. What should i watch . Show me sports. Its so fluffy look at that fluffy unicorn hes so fluffy im gonna die your voice is awesome. The x1 voice remote. Xfinity. The future of awesome. Welcome back to squawk box. Lets check the broader markets with chief investment strategist for Fifth Third Bank and trading specialist for mk partners put in context storm of harvey what about the markets more broadly . Typically these events are fleeting in terms of macro economics and market impact. This time could be different, couple things well be watching for. We focus on Energy Complex, petro chemicals, these are important part of the u. S. Economic supply chain. Could there be disruptions, too early to tell. The other thing to keep in mind is these kind of disruptions are inflationary, fleeting but when you have Inflation Expectations so well anchored, staying suppressed, despite tight labo