When people feel fear, they rush for safety. We had the yield on the tenyear below 2130 earlier today. Selling of stocks across the board. The dow down 117 points off just slightly yesterday. That is half of 1 . The biggest and hardest it is then not back down almost 1 this hour. In europe, losses across the board as well. Heavy selling in england, france, germany being the hardest hit, 1. 5 right now. Asia overnight, markets mostly lower. All of that and so much more coming up this morning. With me all morning long, fox news correspondent lee gabriel. Wall street economics editor Jon Hilsenrath and democratic strategist michael star hopkins. Welcome one and all. To you first come of this missile test is not the first time north korea has shot a missile over japan, but again, this is a different situation given the fact we know that its nukes have been miniaturized. Absolutely. The last time was in 2009. They said it was a satellite they are launching them. This basically into three pieces, landed 1200 kilometers east of japan. I think the u. S. Showed a lot of restraint. We do have the ability to track the missiles. From what i understand, we could get a good sense of where they are heading. How this broke up over japan, what would we have done . North korea is really pushing limits in japan and south korea really trust him and send a close ally weight now. Does japan have been Missile Defense system that needs to send off a system kind of weapons from north korea . Japan does have Missile Defense systems that i cant go into specifics about what they have in their capability could start korea. In south korea right now were working on that. South korea was supposed to that the new leadership was in all the sudden it was like north koreas developing this technology. Maybe we want to have this year. At the end of the day, each time Something Like this happens, u. S. Intelligence will watch and track what north to rear does not improves our intelligence about their capabilities. There is a point where you have to go this is too dangerous. In japan, people were getting warnings. They were told the shelter. Dagen john, well talk about the Market Reaction as the morning the sun. Coming up this money will the texas congressman retired general jack keane to weigh in on the latest missile test in north korea. Former Shell Oil President and the mayor of dallas, mike rawlings. You dont want to miss any of this fine gentleman. First, top stories of the morning. In houston, no one in sight. Floodwaters continue to rise in the nations fourthlargest city. Authorities warning that the worst may be yet to come with nearly two more feet of rain expected on top of 30 plus inches in some areas. Jeff flock on the ground in houston with the very latest. What are you seeing . It just keeps coming. Overnight and today again, we are not too far from the Buffalo Bayou. Look at the road right here. This is water rushing out of the value across the road in washing cars essentially off the road. Look at what has happened over here. These cars washed out. We had to rescue about an hour ago from someone driving in high water trying to get through. If you woke up and go far through this, you walk away a sheer waste and that is why we have the thousands of recipes that have taken place. They are hopeful today, hopeful that this will be the last day of it getting worse. You report it may well worse before it gets better. They are hoping this is the last day you can say that because at this point it looks like the storm is moving away. After today that we dont have as much rain. Its just continued to fall in on that note we like the situation, but it just keeps falling. There is nowhere for this water to go. They continue to release water yesterday with the teams are in jeopardy that they had back over there next hour and show you what the situation all day long yesterday. Ive never seen this much water. Truly incredible. We should point people out. Covering hurricanes and Natural Disasters and for you to say that, talking about the addicts in the reservoirs, that puts the army corps of engineers in such a tough spot because they dont want the dams to break obviously, theyre releasing water from those reservoirs needs country means more flooding in parts of houston. Talking to the people we talked to yesterday in the neighborhoods affected by that that we understand. People have been very understanding about this. They know that if they lose the ability to control the output from those reservoirs that can be just a huge flash flood that would potentially, could make it a whole lot worse. So they and as much as its a very difficult situation. Jeff flock on the thank you for your reporting. President trump and First Lady Melania Trump heading to Corpus Christi this morning near where harvey came ashore at the category four storm late friday. Joining us now by skype, republican congressman Blake Farenthold of texas, the district includes Corpus Christi. Congressman, what are you hoping to hear from the president when he visits your area today . I want to leave an impression and the president signed how severe the devastation is the sum of our area towns like rockport imported myakka. It is beyond the rescue headlines. Just last week and we were devastated to the plaintiff, crop port. You cant look anywhere without seeing buildings almost completely destroyed. Trade to congressman, what does your district need most right now . Right now we are getting the food and water that we need for most areas, getting the Electric Company in, power restored. That is the key to our business. A city can survive for a while, but eventually you need a grocery store. What is the outlook on power . How on earth did shut down and what is the outlook on the refineries . Right now, the delay in the refineries is the ship channel. The army corps of engineers is too dredges that are stuck in houston that open up our channel by this weekend. They were able to get down there. We had the offshore oil rig break it boring thing float away. The coast guard needs to survey the chip channel to make sure it is sufficient and where does that come at the army corps of engineers. They are talking about bringing wind down from mississippi, but theres a new modern bridge under contract in houston that could probably be here tomorrow or the next day. Officials tell me we could have those refineries back online as early as saturday. Congressman, lea gabrielle. I went to Flight School of Corpus Christi, wonderful area. Our thoughts are with you all as we go through this. The estimate is more than 50 of homes in the houston area that may be flooded were not in a federally mandated flood areas where they had to have insurance. People thinking about rebuilding and losing their homes in trying to rebuild them. Was it look like in your area in terms of insurance and coverage . Fortunately, we dont get get hurricanes as often as houston gets floods. Texans are resilient. We are going to build in rock park, where we correctly predict it will port would be open for business soon and by next summer would be back in the commission you would want to visit on a vacation. Congressman, michael hawkins. Im wondering if houston starts to rebuild itself, what do cities need to do about urban planning and how they are dealing with flooding and these Historic Events . Well, houston has a flood problem because like most of coastal texas, its relatively flat. They go up quickly from the water. Not a lot of hills. Those tend to flood first. It is an interesting conundrum of what you do with places that flood every year. It makes sense that we should have some way of encouraging folks to relocate their own rather than rebuilding or repairing every few years. Dagen are you going to see the president and first lady today . That is the plan. We dont have the complete itinerary yet. Weve been told by the light has to be flexible with your schedule and we are willing to do that because they think it is critical that the presidency of the devastation in some of the areas right around Corpus Christi. Thankfully, Corpus Christi dodge double at it and weve got stores open in life is slowly getting back to normal. I finally got power back in the house about 10 00 last night. Train to what is going to be the first thing you say to the president . I will say welcome to Corpus Christi, we need your help. We have been getting great support from the white house in feedback. Ive spoken at length with Vice President and in on behalf of President Trump the support we need from the federal government with whats going on in houston now, its just becoming a bigger and bigger project. This is a disaster of historical proportions. Weve never seen anything like this. Normally a hurricane will come, the winds will be here for a day and then it will be gone. This hurricane just wont leave. Dagen congressman, be safe, be well. Things are being here this morning. Congressman Blake Farenthold. Thank you. Coming up, Global Markets rattled over north korea. We followed the market actions and of course the economic fallout from harvey. In a houston state of mind here in new york. A tribute to the heartbreak caused by harvey. Its time for the biggest sale of the year with the new sleep number 360 smart bed. It senses and automatically adjusts on both sides. The new 360 smart bed is part of our biggest sale of the year where all beds are on sale. And right now save 50 on the labor Day Limited Edition bed. You have cancer . Start with a specialist. Start where youll find advanced technology, precision Treatment Options and truly compassionate care. Start here with a team of experts who treat only cancer. Every stage. Every day. Its not one thing we do. Its the only thing we do. Start at Cancer Treatment centers of america. The evolution of cancer care is here. Learn more at cancercenter. Com experts Appointments Available now. Dagen multiple deaths and injuries after a bombing at a busy Commercial Area of kabul today. Cheryl casone has the details. Good morning, dagen. Five people killed, eight wounded in a suicide bombing near the u. S. Embassy in kabul. This happened today. The explosion likely targeted the bank. U. S. Embassy compound located about 500 yards from the bank. The taliban claimed responsibility. Republican governor signed legislation that would limit cooperation with federal immigration officials. Local officials from detaining anyone solely on the basis of a federal request for months as a criminal war. It creates a sanctuary state in the Governors Office says it does not prohibit communication between federal and local officials. Finally here in new york city, the devastating effects of a major storm. Showing some love for the folks of houston. The empire state elvin went dark last night for the victims of Tropical Storm harvey. New york city sending 120 emergency workers to houston and Governor Cuomo deployed more than 100 Air National Guard personnel to the houston area. The zero headlines. Its incredible. I know youve been covering a dozen rescues just yesterday. Going on as well. People are in both kayaking. Dagen thank you so much commissioner wrote. Unprecedented north korea firing a missile over japan. With the latest act of defiance made for the u. S. And its allies in the region. Old markets are shaken by north koreas latest missile tests. Losses across the board. A flight to safety, fate to treasury, selling of stocks. Watching and waiting for investors keep their eye and oil and gasoline prices as harvey continues to grip texas and louisiana. I no longer live with the uncertainties of hep c. Wondering, what if . I let go of all those feelings. Because i am cured with harvoni. Harvoni is a revolutionary treatment for the most common type of chronic hepatitis c. Its been prescribed to more than a quarter Million People. And is proven to cure up to 99 of patients who have had no prior treatment with 12 weeks. Certain patients can be cured with just 8 weeks of harvoni. Before starting harvoni, your doctor will test to see if youve ever had hepatitis b, which may flare up and cause serious liver problems during and after harvoni treatment. Tell your doctor if youve ever had hepatitis b, a liver transplant, other liver or kidney problems, hiv or any other medical conditions and about all the medicines you take including herbal supplements. Taking amiodarone with harvoni can cause a serious slowing of your heart rate. Common side effects of harvoni include tiredness, headache and weakness. Ready to let go of hep c . Ask your hep c specialist about harvoni. Dagen Global Markets shaking by north koreas latest missile test. The midrange Ballistic Missiles over japan yesterday sending a clear message to promote south korea. The united dates and quite frankly the world. Future syncing across the board on the dow futures as investors rushed to safety through global prices climbing to a 9. 5 month high, gaming 11 an ounce. We also see money moving into u. S. Treasuries as well. Joining us now to us now is the fra chief investment try to just stand still while. Is this surprising you come in this reaction . No, not surprising. What is going to be happen so they sell first, ask questions later. The question they typically asked is will this lead to recession . Usually things like this dont. It ends up being more of a localized event but not something that will affect the national or the worldwide gdp. Dagen even when you look at previous acts of aggression, terror attacks, when you Start Talking about nukes, this is an altogether different scenario. It quantifies the potential impact of rising tensions with north korea and how we might respond the next 10 north korea does Something Like this. When youre dealing with irrational leaders, its hard to come up with a rational conclusion as to whats going to happen. The storm is a lot easier to ascertain the korean situation. Put it in for a moment the storm on one hand in north korea on the other. What are the underlying fundamentals for the market in for the Global Economy . Is their upward momentum there . A Solid Foundation of profits to build on if these events go away, get back to some state of normalcy . Looking at the storm, north korea commandos are headlined events. Right now the market is priced to perfection if you will trading at 23 times, trailing jack burning, very expensive on a forward racist as well. But only if you look at Isolation Company valuations without considering inflation. Inflation being 1. 7 , historically we are right in the target of where we normally are. Each of the last 22 quarters exceeded the estimates at the beginning of the quarter. The fundamental church or very. We had a story late last week about how this is the First Time Since the late 1980s when all of the worlds Major Economies are growing at the same time. The first synchronized upturn weve seen in decades. That helps explain my markets have been rising not just in the u. S. , but elsewhere around the world. How do you see that over the months ahead . Do you think thats a Sustainable Development . I think its sustainable. I also think is supportive of the market direction in the u. S. The developing International Benchmark has underperformed the s p 500 in seven of the last nine years. Basically investors so you dont want to go overseas at all. Now we see more of the rising tide with a broadening of participation rather than a narrowing, which would normally do when markets come to an end. Spain and italy is and italy iraq where the two best performing in the world this year. Dagen i want to talk about houston, the storm harvey. This is a way that we can quantify this horrific Natural Disaster for the entire country. Exxonmobil shut down the second largest in the country in the roof sagged due to heavy rain there. We are talking about 15 roughly of all Refining Capacity in the United States is shot. It could go up to 30 as the storm moves into louisiana. What about the potential . When you weigh the Economic Impact of this, you have to look at Property Damage. How much of that is insured, that the impact on the Energy Sector is the first major storm we had since the takeoff of the oil, the shale boom if you will since we really have become stronger in our Energy Sector. How do you think this plays out, longterm affect on energy and on the economy. The first thought is how expensive is the storm likely to be . Estimates are 100 billion. I would rank number two behind katrina and the best india 75 billion. This is going to end up being an expensive storm. Not necessarily as catastrophic in terms of lives, et cetera, but Property Damage because of all the rain for such a long period of time. We estimate 50 of u. S. Refinery capacity is in that area. The vulnerability is tremendous. You really only have special situations like a company hollie frontier that is