Under no circumstances would i resign. Mark after last months shooting in orlando. They notify next of kin. They report released today says the rush to get to the scene, agents didnt bring the proper equipment. 49 people were killed during the june 2016 shooting at was the worst mass shooting in modern u. S. History. Local news 24 hours a day powered by more than 2700 journalists and asked him and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Abigail live from bloomberg headquarters in new york. Joe julia chatterley is on assignment. Higher, butcks are the dollar is slumping after fed chair janet yellen and the euro higher after ecb president mario draghi. Joe the question is, whatd you miss . The storm julie ofld generate billions dollars in economic losses. Sanctions on venezuela with President Trump having to restrict the access to the Financial System but stopped short of imposing a full oil embargo. And if you are in the market to buy a home, rising home values are cutting into affordability. Suggesting the housing momentum could be temporary. Hurricane harvey bears down on texas as it strengthens to a category three hurricane toward the texas gulf coast. Closing the day out higher. In joe carroll, bloomberg Houston Bureau chief and joining us on the phone. As to what latest you are seeing in houston and what is expected. We are waiting for the heaviest rain and wind to hit the city proper. We are seeing giant waves and heavy rain. Everybody is evacuating down along the coast. We have yet to see the worst of it but a lot of gas stations dontlready run out, they have bread or bottled water anymore. Its about time for folks to just hunker down. Joe i see there is just an extraordinary amount of rainfall expected. It is a catastrophic amount of rain. Every few hours, the forecast comes out. And this point yesterday, we thought it would be four Straight Days of rain. The storm is just going to sit over southeast texas. Just keep dumping water. It is really a flooding trend. It will knock out one billion. Arrels of gasoline demand because everybody will be frozen in place. And then once it starts to [indiscernible] andd there are julie there are already gasoline shortages across texas. Mario draghi is taking center stage so lets get to Kathleen Hays for all the headlines. Kathleen . Julie, mario draghi took this occasion not to deliver a policy message. Not to signal with the ecp does or does not do next, or when. He took this as an occasion to talk about what the big challenges are globally. Hes especially concerned about openness. Protectionism. Hes concerned about how to make multilateral cooperation sustainable. It fair and equitable. But when it comes to currency, what you can take away is either mario draghi is not concerned about the euro because he didnt explicitly single it out. Hes not worried. Mario draghi will wait for the next ecb meeting. Of the bull by indicating they will try to slow them down. , mario draghi gave an interesting speech. He talked about the nice regulation. Echoing janet yellen just a bit. Its clear hes holding his fire until the next opportunity to speak and send a message. 4 reporting from julie reporting from jackson hole, wyoming. We appreciate it, kathleen. Joining us from our washington bureau, good to see you. Thanks for joining us. You put out a note earlier today that said it was possible that mario draghi would make some sort of lastminute tweak to his remarks that would indicate he wasnt necessarily supportive of the euro strengthening. That didnt seem to happen. We saw quite the opposite effect in the market. Do you think that was the rational reaction to what draghi had to say . I think coming into jackson hole, what we wrote and what others have said is that draghi was going to try to stay away from the policy decisions. Try to avoid taking on the euro question headon. Cooling things down by staying mediumterm. Waiting to address these issues. Making some kind of lastminute question to see if they can give a green light to the euro. The advisors decided they would not make that lastminute course correction and to some degree, they are paying the price now with the euro through 119. Joe if you look at the euro chart right now, a you have those two spikes versus the dollar. The first after yellen and then after draghi. I get the impression that neither yelling nor draghi talk about Monetary Policy. And yet it was interpreted as Monetary Policy by virtue of the fact that they didnt talk about it. It theres kind of nothing they can do. Theres no way for them to just talk about other issues without it being turning into the shadow of a Monetary Policy speech, is there . Its a very important point you make and i discussed it in my earlier commentary. Here we have now to Central Bank Chiefs that deliberately set out to say basically nothing on Monetary Policy. They are the messages they want to deliver. The line, the importance of maintaining regulatory reforms put in place since the crisis. On Monetary Policy is interpreted as dovish. Asghi is interpreted hawkish. Its probably a slight oversupply occasion here. In yellens case in particular, waywasnt giving it either that they would be raising rates in december or more broadly continuing with the gradual pace of rate hikes. I think she just wanted to get the message across and stay focused on financial regulation. And to avoid complicating matters at all, ahead of what is an announcement in september. Marios speech we might interpret a little bit differently. He did have the opportunity to come in here on the one hand and give a Mission Accomplished speech. Or on the other extreme, pushing back against the euro, the tightening and financial conditions. It would lean against concrete actions. In the event, he seems to try to get away with something in between. Not talking about Monetary Policy and not sounding too shrill about Mission Accomplished. Stuff,king about this hoping that it would be enough to calm things down. But its not. Not commenting is being read as a green light. I think the ecb is puzzled by the strengthen the euro. Obviously. Factor playingp as well. It can move well beyond fundamental analysis at times. The ecb is going to have to at least offset this to some degree by leading leaning a bit more dovish. Abigail one comment that stood out to me. With Monetary Policy very expansionary, regulators should be wary of rekindling the incentives that led to the crisis. Why do you think he made that comment . I would connect this with what janet yellen was saying. You are seeing a concerted push back from a central bank community. There is concern that the pendulum may swing too far in the direction of deregulation. The regulations put in place by the financial crisis. As far as yellen or draghi or others are concerned right now, having this financial regulations in place is actually very helpful. Why is it helpful . , ineans they can tolerate some cases, elevated asset market valuations wellbeing confident that the system itself is solid it solid enough. It has been stress tested. The system is robust enough. Bond market crash or some other asset market selloff, the Financial Stability would not be impaired. What that means is it allows Monetary Policymakers to continue to focus on the economy. If you weaken the stability of the system, then Monetary Policymakers have to start to balance Financial Stability considerations versus Monetary Policy considerations. Notewant to mention the that you were out with. Her comments or an obstacle to reappointment as chair. Are you pricing into your models or trying to model out what a gary cohn led fed looks like . Are trying to think through what kind of changes in the fed reaction function we could get next year and beyond. As potentially a new chair takes office and the fed board of governors more broadly has pretty extensive turnovers. About tying it to any one individual. It still seems fairly open. Hes had his own issues around charlottesville. In which he said that it was a concern. Yellen is not advocating for her own reappointment. It may and that being somebody beyond that group. Dark course, potentially. Thank you very much, krishna guha. We take a look at the newly announced u. S. Sanctions and what they mean for investors. From new york, this is bloomberg. Joe the euro is pulling back from the highs a little bit and taking the jackson hole. Its a significant degree of accommodation still warranted. , recovery is gaining on guard. The euro Area Recovery is gaining ground however. A sickly, we are having a conversation about how we talked about the euro or inflation. It wasnt a Monetary Policy speech and it looks like some of the comments are suggesting dialing back the hawkishness a little bit by saying there is still more work to do on inflation and that the ecb must remain on guard on these things. And these were answers to questions from participants. Time to look at the stock of the hour. Hertz, the car rental company, tumbling by about 7 . Down as much is 11 . All of this on an analyst bid . It is a Research Analyst who says that hurts may have breached the terms of some of its debt. It goes back to may of this year when hertz had 1. 2 billion dollars worth of lien debt. As it proceeds would be used for 2018 and 2019 debt. If you go back last month, they suddenly said we are not going to redeem the 2019 debt. In which you can see there is a big dropoff in the stock at the end of july. And they thought it was secondquarter earnings. What the analysts note today is that by canceling plans to hertzm that that debt, risks defaulting on its debt and it could be viewed as missing a payment. The same analyst did go on to say that it is unlikely that it will decide to take action. They recover things like that. Interesting. It there has been a lot of struggling. We appreciate it. What you miss . New rules will prohibit the purchase of newly issued venezuelan debt and equity and apply similar restrictions to state oil companies. Will bee existing bonds affected. For more on this, its bring in Bloomberg News investing reporter. Talk to us about what exactly this means for various u. S. Entities that hold that from venezuela. Steven mnuchin commented on how all this will work today. They will be fine. The existing debt will be fine. They dont have to sell. There will not be a plunge in the market. But we dont know what this means for future debt, right . If there are any more restrictions in the future. It means venezuela cant issue new debt or restructure existing debt. That is another question we need to ponder. Venezuela is very much struggling and in a bad position right now. Default has been floated around for a long time. Joe were there prospects of venezuela issuing new debt . Was there an appetite for venezuelan debt . Are 30 so irrational government would not be issuing debt that they could be engaging and liability management, the engagement of the debt swap to extend maturities and that would be off the table now. It is definitely restricting their ability to prevent a default. The other thing it restricts is they have been lowkey issuing debt. That goes onand the secondary market. It can be a central bank or estate bank. That is what they did twice already. That is what will be choked off with these measures. That is what gets them by. Abigail the trump has stayed away from export sanctions. That would probably be really painful for that economy. It would be extremely painful. The word around is that the oil lobbyists, those types of people have been saying, please dont do that. U. S. Imports really heavy crude from venezuela so it could be very detrimental locally. It would completely ground their ability to absolutely do anything. It is the only thing venezuela does. They only export oil. It would be extremely crippling. They are in extremely dire situations, they dont have basic money for goods. Money for basic goods. Abigail thank you so much. Our Bloomberg News investing reporter. I want to reiterate some of the headlines we got a few minutes ago from ecb president mario draghi. In response to some questions after his speech in jackson hole, he said that euro inflation convergence has not yet self sustained. Is gainingcovery ground. But the ecb is not there yet on inflation and it must remain on guard. Intradayok at the chart, you see a tiny pullback from the highs on the comments that are a little bit less than hawkish. 20 more to come from new york. This is bloomberg. Plenty more to come. From new york, this is bloomberg. Joe i want to go to mike, our economics correspondent, Michael Mckee out in jackson hole where mario draghi just made those the ecb having more work to do to get to the inflation goals. Michael, thanks for joining us. What was the message he was trying to send . Awayel he had to get without any market moving comments, but he was asked about the efficacy of the qe program that he announced in jackson hole in 2014. He says it has worked very well. It pulled the eurozone out of recession and out of its crisis. That wascrisis underway in 2012 and 2013 and 14. He said we are not completely there yet. Were still seeing the recovery gain strength. We are not seeing inflation move as the recovery gained strength. It should converge towards the 2 target. Until that point, the ecb must remain on guard and in his words, a significant amount of accommodation is still necessary. What we are getting is a comment from him not unlike what he said that they are looking to a recovery. They are looking for the day when they can dial back. But they are not there yet. He buying bonds. He didnt say that, but its ok. Julie we saw, initially, when he was speaking about nothing to do with Monetary Policy, it took a pretty sharp leg up and even , itgh it came down a bit only came down a very small amount. Just quickly here, it looks like the interpretation is still that the accommodation is going to be withdrawn. Not change theid timetable for what the ecb is talking about. The expectation is that they will end the Bond Buying Program and keep the accommodation in place. He did not change anything there. It is a direct thatnt on the ecbs policy nobody was expecting here. Julie Michael Mckee keeping us abreast of the events in jackson hole. Market close is next. If you look at the major julie Michael Mckee keeping us abreast of the events in jackson hole. Market close is next. If you look at the major averages, we have a mixed picture here to close out the week. From new york, this is bloomberg. Julie Michael Mckee keeping us abreast of the events in jackson hole. Market close is next. If you look at the major averages, we have a mixed picture here to close out the week. From new york, this is bloomberg. Whatd you miss . After mario robbie reporters in jackson hole the inflation is not the same. Im abigail doolittle. Julie im julie hyman. Emma you to our to join closing bell coverage. Julie let us look at our stocks today. The dow and s p gained ground in technology as technology lags. Once again, we solve volumes falling here on this august friday. Down 16 for the s p versus the 20 day average. Ulta beauty having its worst single session. We talked about this late yesterday, nearly fell short of estimates and the Company Sees Sales growing as much as 11 . And Analyst Report suggested go down. Res gamestop having his worst day since march. Analyst estimates but the year numbers are potentially short of estimates. Is that the worst space since june. Down about 4 . The numbers the analyst estimates. Joe lets take a look at government bonds in the u. S. The twoyear not moving at all. 10year ending down on the day. Some of the action after yellen speaking. You can see the drop at 10. She didnt say anything about Monetary Policy, but debt in itself seen as a bit dovish. Nothing too dramatic. Turning to currency, the central bank is the main story today. With an intraday chart of the euro, we see the pop after draghis speech came out. Nothing new came out of this amend moments ago, we had headlines of draghi saying accommodation is still warranted and the ecb has reached inflation targets. We see a tiny pink down from the spike. If we take a look at an intraday chart of the bloomberg dollar index, we will see it as an inverse picture. It is down more than 0. 6 after janet yellen gave dovish comments. We have the dollar down on paper, its worst day since july 14. Look at this chart of dxy down 9. 9 . Its worst year on paper since 2003. Whether this reflects the fed President Trump, extraordinary. Joe that is remarkable. Lets take a look at commodities. We have oil moving a little bit higher. There has been questioned whether there will be and affects from the hurricane. It does not seem like it is having a big effect one way or the other on west texas. Old catching a little bit of a bit today. 5 n is slimmeddown by about down by about 5 . Let us look at in intraday chart at an intraday chart of gold. It wasnt necessarily on the headlines. You can see weird stuff going on. It ended up normalizing, but no one seems to have a clear idea what happened you can see it was very exciting for a few minutes. [laughter] will take the excitement where we can get it. Whatd you miss . Not much of jackson hole. For donald trump, it is a constant figure of the background in the background. N is a macro strategist for Bloomberg News. Us. Thank you for joining we have this conversation all the time. When is he going to have an effect on the market . It may be showing up in currencies a little bit. Not with volatility, per se. You have a chart. Will need to walk us through. It looks at europe you have a chart here you will need to walk us through. Looks att trumps trumps approval. In france, the communist would win the presidency. You can