"Because of hurricane, we need to expedite tax reform" - President Trump

President Trump said on the weekend that he will be asking the Republican controlled congress to speed up the U.S. tax code due to the impact of Hurricane Irma. If they reduce taxes it could help businesses get back on their feet faster than they normally could, hence could be beneficial to the states that are impacted by hurricane.

  He said, “I think now, with what’s happened with the hurricane, I’m going to ask for a speed up,” he said. “I wanted a speed up anyway, but now we need it even more so. So we need to simplify the tax code, reduce taxes very substantially on the middle class, and make our business tax more globally competitive. We’re the highest anywhere in the world right now”.

http://www.cnn.com/2017/09/09/politics/trump-irma/index.html

Farmers Across the US stand to lose following record flooding in Texas

Hurricane Harvey has threatened Texas’ agricultural economy and is having devastating effects on farmers in the area. Texas produces high volumes of cotton, wheat, rice and soy and is a huge exporter of crops to many states in the United States.  As the flood waters rose the likelihood of damaging unharvested produce increased.  Described by farmers as a once in a decade crop, meaning a great cotton season.  

About 98 percent of the cotton had been harvested before the hurricane but produce stored in bulk is likely to be contaminated by flood waters. It was projected to be a highly profitable year for cotton before the hurricane. The 2 percent that had not been harvested is likely to be destroyed by highly contaminated water from flooding.  Not only was the cotton at risk but any other produce that has been harvested is at risk.  Any damaged products should not be used for human or animal food according the FDA.  Some farmers are now describing this as the worst season they have seen yet, due to the loss of produce.  Due to the significant loss Texas is taking on produce, the prices will likely increase.

https://www.cnbc.com/2017/08/29/farmers-across-the-us-stand-to-lose-following-hurricane-harvey.html

The recent Hurricane Harvey that has left Houston and many other regions of Texas and neighboring states devastated is expected to be the costliest natural disaster in our country’s history. While having an increasing personal impact to those affected, economists believe that the overall economy’s growth won’t take as big of a hit as initially thought. Harvey has caused about $160 million in insured losses in USD, which is $80 million more than the second worst natural disaster the US has faced, Hurricane Katrina in 2005.

            Texas’ oil refinery industry produces nearly one-third of the country's crude oil and due the slowed down the flow of gas from here to the rest of the country, gas prices have, on average, rose from $2.34 to $2.40 within just a week nationwide. This has caused the demand for crude oil because Texas simply cannot use it due to the damages they’ve incurred, West Texas Intermediate crude has fallen 4% this week. This has caused the real GDP growth to drag by -20 bps due to the disruption in exports.

            It is also expected that jobless claims are going to rise dramatically in the coming weeks. Harvey is also expected to have an immediate impact on the auto sector due to almost half a million cars/trucks having to be scraped due to the flooding. Auto insurers will be dealing with claims for several months on.

http://www.businessinsider.com/hurricane-harvey-economic-impact-2017-8/#the-cost-of-harvey-1

Saudi Arabia's vague economic shift leaves huge oil IPO on track

Saudi Aramco, formally known as the Saudi Arabian Oil Company, is about to do something unprecedented in the petroleum and natural gas industry due to its record breaking financial size. The national company is planning on putting the country’s number one export and backbone of the Saudi Arabian economy, in the hands of future public shareholders. This partial sale of the company is part of a plan to boost the Saudi economy and reduce dependence on oil. Aramco CEO Amin Nasser confirmed that the plan for the IPO release date is on schedule.

The original proposal of $26 a barrel created a huge hole in the country’s budget, forcing a revision process of the deal. The Saudi government stated that the goal of these revisions is to “improve efficiency and effectiveness of delivery across institutions.” Oil prices in the Saudi kingdom have not yet recovered from overhaul, leaving the economy in stagnation. The International Monetary Fund projects GDP growth at a meek 0.1% this year. Economic stabilization is top priority right now.

Saudi officials are expecting the Aramco IPO value to be around $2 trillion. If the market follows suit, selling only 5% of Aramco would raise a whopping $100 billion – quadrupling the “Chinese Amazon” Alibaba’s public offering debut in 2014, making it the largest to date.

http://money.cnn.com/2017/09/10/investing/saudi-economy-revision-aramco-ipo/index.html?iid=hp-stack-dom