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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning.

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Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 3: stories we're following today.

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Speaker 2: Karen will have more on the Republican National Convention and

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Speaker 2: Donald Trump's speech from last night in just a moment,

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Speaker 2: But we begin with outages sweeping the world. Banks and

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Speaker 2: airlines are reporting technical glitches after Microsoft reported an outage

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Speaker 2: across its online services. Bloomberg's Ewan Pots joins us with

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Speaker 2: the details from London.

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Speaker 4: Good morning, Ewan, Nathan and Karen.

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Speaker 5: Global disruption today as a software glitch takes down computer systems.

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Speaker 5: Airlines in the America's, Europe and Asia suspending flights on

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Speaker 5: an unprecedented scale as a widespread computer outage causes chaos.

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Speaker 5: The problems are reported to be related to crowdstrikes cyber

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Speaker 5: security software operating on Windows computers. And it's not just

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Speaker 5: the airlines. The disruption affecting companies as divert us, as, JP, Morgan, McDonald's,

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Speaker 5: and the London Stock Exchange. Live in London, I'm you

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Speaker 5: in Pots Bloomberg Radio.

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Speaker 3: All right you and thank you, and will continue to

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Speaker 3: follow this story all morning long for you.

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Speaker 4: But we do want to.

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Speaker 3: Turn back to politics. Former President Donald Trump accepted the

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Speaker 3: Republican Party's nomination for president last night for the third time.

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Speaker 3: His keynote address was his first public speech since the

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Speaker 3: assassination attempt last weekend. Trump says he rewrote this speech

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Speaker 3: after the near death experience, aiming to strike a uniting tone.

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Speaker 6: The discord and division in our society must be healed.

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Speaker 6: We must heal it quickly. As Americans, we are bound

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Speaker 6: together by a single faith and a shared destiny. We

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Speaker 6: rise together, or we fall apart.

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Speaker 3: After addressing the assassination attempt, at the beginning of his speech,

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Speaker 3: Trump launched into a broad pitch for a second term.

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Speaker 6: I will end the devastating inflation crisis, immediately, bring down

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Speaker 6: interest rates, and lower the cost of energy.

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Speaker 4: We will drill, baby, drill.

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Speaker 3: And While former President Trump made multiple calls for unity,

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Speaker 3: he also directed criticism at his political rival.

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Speaker 6: If you took the ten worst presidents in the history

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Speaker 6: of the United States, think of it, the ten worst,

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Speaker 6: added them up, they will not have done the damage

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Speaker 6: that Biden has done. Only going to use the term

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Speaker 6: once Biden, I'm not going to use the name anymore,

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Speaker 6: just one time, more than.

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Speaker 3: An hour and a half. Trump's speech was the longest

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Speaker 3: ever for a nominee in the modern era.

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Speaker 2: And Karen Trump's keynot address closes a Republican convention that

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Speaker 2: demonstrated momentum and confidence that the former president will return

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Speaker 2: to the White House in November. Bloomberg Politics contributor Jeanie

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Speaker 2: Shanzano says while Trump's polling ahead of President Biden on

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Speaker 2: several key issues, his rhetoric and selection of JD. Vance

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Speaker 2: as a running mate could create an opening for Democrats.

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Speaker 7: Democrats are happy with what they've heard because they thought

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Speaker 7: this was going to be a unifying Trump trying to

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Speaker 7: present a new and improved Trump, and what they got

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Speaker 7: after the beginning of that speech was more of the same.

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Speaker 7: And I think that's what Democrats have been warning of

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Speaker 7: people about. This man, at seventy eight years old, has

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Speaker 7: not changed at all.

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Speaker 2: And Bloomberg Politics contributor Rick Davis says Trump's speech ultimately

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Speaker 2: sounded disjointed at.

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Speaker 8: The very beginning, when he talked about the assassination attempt

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Speaker 8: last Saturday night. I think that that's when most people

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Speaker 8: were probably tuning in. The rest of the speech became

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Speaker 8: sort of this combination platter of his favorite tropes from

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Speaker 8: the rallies and then a set speech and he would

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Speaker 8: just move in and out of them. And I would

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Speaker 8: like to say flawlessly, but it was not flawless.

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Speaker 2: And Bloomberg Politics contributor Rick Davis says the second half

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Speaker 2: of the speech did not effectively communicate Trump's message or

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Speaker 2: strike a unifying tone well Nathan.

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Speaker 3: As Republicans closed out their convention, President Biden remains committed

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Speaker 3: to running, but now reports indicate he might be open

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Speaker 3: to hearing concerns about his Campaignlombergh Amy Morris reports from Washington.

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Speaker 9: President Biden has reportedly asked for polling on how Vice

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Speaker 9: President Kamala Harris would do against Trump. That according to

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Speaker 9: an ABC reporter in a post on x citing an

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Speaker 9: unidentified senior White House official, ABC reports, the President now

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Speaker 9: appears to be more receptive to hearing out calls for

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Speaker 9: him to bow out of the race. This as a

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Speaker 9: new CBS News you Gov survey shows Republican Donald Trump

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Speaker 9: has widened his lead against President Biden by five points nationwide,

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Speaker 9: and he leads Vice President Harris by three points. Amy Morris,

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Speaker 9: Bloomberg Radio.

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Speaker 2: Right, Amy, thank you and the Democratic pressure is mounting

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Speaker 2: on the president. The Associated Press is reporting the Biden

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Speaker 2: campaigns holding an all staff meeting today. That follows a

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Speaker 2: Washington Post report that former House Speaker Nancy Pelosi thinks

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Speaker 2: Biden is close to being convinced to end his campaign.

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Speaker 2: Pay Brad's. Former president Barack Obama told allies that Biden's

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Speaker 2: pathway to victory is greatly diminished. On top of all

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Speaker 2: of that, the New York Times says several people close

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Speaker 2: to President Biden think he had it has begun to

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Speaker 2: accept the notion he may not be able to win

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Speaker 2: in November. As all this is happening, the President is

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Speaker 2: still recovering from COVID nineteen. The White House says his

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Speaker 2: symptoms are mild.

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Speaker 3: But publicly, Nathan not all Democrats are calling on the

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Speaker 3: President to step aside. Here's New York Governor Kathy Hochel

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Speaker 3: speaking with Bloomberg yesterday.

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Speaker 4: He has delivered for New York in extraordinary ways. I

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Speaker 4: look forward to talking about even more, and I believe

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Speaker 4: in his vision for our country. So I am with

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Speaker 4: him as long as he wants to do this.

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Speaker 3: New York Governor Kathy Hochel added that she believes Biden

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Speaker 3: has been an extraordinary president.

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Speaker 2: Certain company news now karen an earnings smash from Netflix.

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Speaker 2: The streaming giant added eight million new subscribers in the

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Speaker 2: second quarter, nearly double the average estimate, and it also

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Speaker 2: upgraded sales and profit forecasts for the year. Bloomberg Intelligence

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Speaker 2: analyst Keith the Ronganathan calls the Netflix report a complete blowout.

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Speaker 10: Remember they had first predicted twenty four percent operating margin

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Speaker 10: for the whole of twenty twenty four. They took that

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Speaker 10: up to twenty five percent, and last quarter now up

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Speaker 10: to twenty six percent. That's a five hundred basis point

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Speaker 10: increase from last year. Very likely that we can see

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Speaker 10: up to thirty percent margins, maybe even as early as

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Speaker 10: next year.

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Speaker 2: Gate the wrong Anathan with Bloomberg Intelligence says Netflix's surgeon

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Speaker 2: growth comes as most streaming competitors slow down.

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Speaker 11: Elsewhere.

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Speaker 3: In company news, Nathan Broadcom shares gained almost three percent

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Speaker 3: yesterday after the Information reported that the chip designer discussed

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Speaker 3: making an artificial intelligence chip for Open Ai, and shares

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Speaker 3: of Hawaiian Electric are higher this morning, up forty percent.

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Speaker 3: It comes as Bloomberg News reported Hawaiian Electric is among

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Speaker 3: companies that tentatively agreed to pay more than four billion

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Speaker 3: dollars to resolve lawsuits over last year's Maui wildfires. Other

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Speaker 3: defendants include a unit of cable provider Charter Communications.

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Speaker 2: And as for the broader market, Karen we saw a

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Speaker 2: pullback in megacap tech stocks broadening out to a wider

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Speaker 2: sell off yesterday. Concerns about a weakening economy and political

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Speaker 2: uncertainty are moving into focus. Bloomy Berg macro strategist Mark

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Speaker 2: Cudmore says market voluntility did increase, but probably didn't mark

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Speaker 2: a big turning point.

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Speaker 12: This is just a mini mini correction and I probably

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Speaker 12: have a little bit more to play it, but I

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Speaker 12: don't see it being drastic. I think the bigger story,

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Speaker 12: the one that's maybe the chance to be sustainable, is

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Speaker 12: the bigger kind of change of leadership that might be

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Speaker 12: taking place. But there's a chance here that we could

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Speaker 12: see the stock market have increased volatility, but overall we

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Speaker 12: could see the big cup tech name suffer.

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Speaker 4: A lot more.

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Speaker 2: Bloomberg's Mark Cudmore says traders could revive positive sentiment next

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Speaker 2: week when several big tech companies report earnings.

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Speaker 3: And it's time now for a look at some of

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Speaker 3: the other stories making news in New York and around

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Speaker 3: the world. And for that we're joined by Bloomberg So

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Speaker 3: Michael Barr, Michael, good Morning.

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Speaker 13: Good Morning, Care and Russian court officials said closing arguments

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Speaker 13: have begun in the trial of Wall Street General reporter

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Speaker 13: Evan Gerskovich. Prosecutors are seeking eighteen years in jail facis

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Speaker 13: charges are spying that he The journal and the US

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Speaker 13: government have vehemently denied. Kriskovich has remained in custody since

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Speaker 13: his arrest in March of twenty twenty three while on

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Speaker 13: a reporting trip to the Ural Mountains. A New York

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Speaker 13: City council member who was arrested during a protest on

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Speaker 13: Wednesday is talking about what happened. Councilwoman that Susan Jung

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Speaker 13: was charged after allegedly biting an NYPD chief during a

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Speaker 13: protest against a proposed men's shelter in the benson Hurst

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Speaker 13: neighborhood yesterday at a community center in Gravesend, she told

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Speaker 13: the crowd she does not think she should have been

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Speaker 13: arrested in the first place.

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Speaker 10: Miss treatment IOPD while with support, it must be stop.

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Speaker 9: Any four must.

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Speaker 13: The witness, says Hung was trying to prevent an eighty

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Speaker 13: one year old woman from getting hurt. However, City council

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Speaker 13: Member Adrian Adams called at all disturbing.

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Speaker 9: Violence is completely unacceptable and respect for our city workers

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Speaker 9: doing their jobs is It's just not negotiable.

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Speaker 13: Audio courtesy of ABC seven. New York Mayor Eric Adams

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Speaker 13: called the injury to the officer a pretty nasty bite.

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Speaker 13: A pre trial hearing scheduled in New York today for

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Speaker 13: the retrial of disgraced movie mogul Harvey Weinstein. In April,

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Speaker 13: Weinstein's rape conviction was thrown out by the New York's

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Speaker 13: Court of Appeals after it was determined the trial judge

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Speaker 13: unfairly allowed testimony against him based on allegations from other

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Speaker 13: women that were not part of the case. Weinstein remained

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Speaker 13: in custody at Rikers Island Jail Complex. A comedy legend

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Speaker 13: has died. Bob Newhart, who had several stand up albums

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Speaker 13: and sitcoms, including The Bob Newhart Show, has passed away.

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Speaker 13: Bob Newhart was ninety four years old, and Lou Dobbs,

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Speaker 13: the conservative political pundit and veteran cable TV host who

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Speaker 13: was a founding anchor for CNN and later was a

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Speaker 13: nightly presence on Fox Business Network for more than a decade.

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Speaker 13: Has died. No word on the conse of death given.

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Speaker 13: Lou Dobbs was seventy eight Global news twenty four hours

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Speaker 13: a day and whenever you want it with Bloomberg News Now.

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Speaker 13: I'm Michael Barrn. This is Bloomberg. Karen.

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Speaker 3: All right, Michael barr thank you, and it's time now

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Speaker 3: for the Bloomberg Sports Update with John Stashauer. John, Good morning, Good.

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Speaker 11: Morning, Karen. Daniel Brown and England Shane Lowry of Ireland

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Speaker 11: had the two best rounds to begin the Open Championship

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Speaker 11: in Royal True, both at early tea times today. In

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Speaker 11: the second round, Brown relative unknown shot sixty five. Lowry,

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Speaker 11: who won the Open five years ago, was sixty six.

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Speaker 11: Neither had a single bogie. Justin Thomas overcame a double

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Speaker 11: bogie on the twelve pot shot sixty eight and eighty

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Speaker 11: two in round one. Last year PGA winners Andrew Shopley

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Speaker 11: as two under masters, Champ Scottie chef re Minus won

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Speaker 11: the recent US Open winner Rice of the Shambo five over,

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Speaker 11: Parry McElroy seven over, and Tiger Woods plus eight, fourteen

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Speaker 11: shots behind. As he starts playing today, Yankees and everyone

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Speaker 11: else back playing tonight, Yanks at the stadium against Tampa Bay.

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Speaker 11: Garrett Cole on the mound. Yanks him up their first

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Speaker 11: winning series in a month. Aaron Judge hoping that several

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Speaker 11: week long slump is over.

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Speaker 14: But each team goes through it where you have a

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Speaker 14: couple in down weeks, some high moments, But I think

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Speaker 14: the most important thing is just start just staying consistent.

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Speaker 14: We've lost a couple games with some crazy plays, and

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Speaker 14: you know that comes down to us being consistent. Man's

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Speaker 14: that's the number one thing.

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Speaker 11: Judge with thirty four home runs at the All Star

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Speaker 11: for eighth that's one more than he had at this

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Speaker 11: time two.

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Speaker 13: Years ago when he finished with sixty two.

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Speaker 11: Mets the Red Sox both playing well lately the season

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Speaker 11: edited now they make the playoffs. Mets have won seven

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Speaker 11: last nine play Tonight in Miami, Socks have taken a

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Speaker 11: nine of twelve. They're in LA against Sho Hey Otani

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Speaker 11: and the Dodgers, speaking of whom they just learned they'll

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Speaker 11: start the twenty twenty five season in Japan. So Otani

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Speaker 11: will come home. They'll face the Cubs. Russell Westbrook apparently

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Speaker 11: had to do yet another team. Eleven years with Oklahoma

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Speaker 11: City wants the MVP. Westbrook has played for four teams

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Speaker 11: the last five years. Now done with the Clippers, they

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Speaker 11: traded him to Utah and the Jazz Wire reportedly buy

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Speaker 11: out his contract in westbrookfold sign with Denver. Jason Wright,

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Speaker 11: who became president of the Washington football team in twenty twenty,

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Speaker 11: first Black to hold such a position. Now out with

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Speaker 11: the Commanders, he had been hired by the former owner,

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Speaker 11: Dan Snyder Johns Dasheward. Bloomberg Sports Karynthan.

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Speaker 13: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 13: and around the world on Bloomberg dot Com and the

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Speaker 13: Bloomberg Business app. This is Bloomberg.

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Speaker 2: Daybreak, Good morning of Nathan Hager, as we continue to

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Speaker 2: monitor the rapidly cascading series of software glitches sweeping the globe,

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Speaker 2: hitting everything from airlines to banks and markets. For the

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Speaker 2: latest were joined by Bloomberg's Critty Gupta in London. Critty,

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Speaker 2: good morning. I know this has been going on for hours,

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Speaker 2: but for those who are first waking up to this news,

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Speaker 2: when did this start?

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Speaker 3: What?

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Speaker 2: Has been happening.

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Speaker 4: Good morning, Nathan.

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Speaker 1: This happened really over in Asia. This all started with

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Speaker 1: the reports, especially on down Detector, coming out of Japan

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Speaker 1: and Australia talking about issues with one the CrowdStrike platform

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Speaker 1: and two the Microsoft offerings in that region. Now we

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Speaker 1: still don't know at the moment whether or not these

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Speaker 1: are two issues that are related or simply happening at

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Speaker 1: the same time, but it has.

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Speaker 4: Since spread globally predominantly.

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Speaker 1: We're trying to see it show up in the airlines,

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Speaker 1: with a lot of these kind of airlines in the

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Speaker 1: state for initially issuing groundhoults, the likes of Delta, American

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Speaker 1: Airlines as well as United It looks like American Airlines

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Speaker 1: has now released that groundstop. You have airports around the

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Speaker 1: world that are talking about several IT outages as well.

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Speaker 4: But it doesn't just go into the airline space.

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Speaker 1: You're now seeing it show up in the likes of banks,

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Speaker 1: for example, even the folks over at JP Morgan saying

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Speaker 1: there are employees that are unable to log on. Several

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Speaker 1: broadcasters right here in the UK as well, unable to

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Speaker 1: broadcast their network operations.

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Speaker 2: So while we wait to get an idea of what's

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Speaker 2: behind this, how this started. I mean, it speaks, if

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Speaker 2: nothing else to the vulnerabilities that we could continue to

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Speaker 2: face just from having so much operations of businesses, not

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Speaker 2: just in the tech sector but broadly relying on the cloud.

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Speaker 1: It does, and it almost has a little bit of

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Speaker 1: deja vous I amagined for a lot of the airline

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Speaker 1: watchers as well of what we saw a couple of

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Speaker 1: years ago back with the Southwest kind of infrastructure and

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Speaker 1: technical issues there as well. Right now, I should very

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Speaker 1: quickly mention that some of the airports in the States

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Speaker 1: that initially so they were having issues have since pulled

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Speaker 1: back on it. A heat throw right here in London

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Speaker 1: as well, saying they're having issues but they're dealing with

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Speaker 1: and their contingency plan and flights are operational. But to

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Speaker 1: your point, Nathan, about this broader infrastructure spend and transition

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Speaker 1: to the cloud, it brings a lot of concern. We

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Speaker 1: talk about it really accelerating into the world of AI

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Speaker 1: in this kind of AI age, but we have to

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Speaker 1: remember that not everyone is even on the cloud yet,

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Speaker 1: where not everyone has even.

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Speaker 4: The cybersecurity and for ructure.

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Speaker 1: For those who are looking at the fallout of the

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Speaker 1: issues with the crowd strike update as well, So there

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Speaker 1: are concerns here, but it might more accelerate that spend

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Speaker 1: rather than have people scare away from.

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Speaker 2: It and just to pass along a headline breaking right now.

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Speaker 2: Microsoft is saying it is aware of the issue affecting

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Speaker 2: Windows devices and says it it's due to an update

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Speaker 2: from a third party software platform. Anticipating that a resolution

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Speaker 2: is forthcoming. That might get us a little bit closer

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Speaker 2: pretty to getting something of an idea of what could

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Speaker 2: be behind this. But it's having a market impact as well.

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Speaker 2: I mean, we did see the tech sell off this week.

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Speaker 2: Is it adding to that.

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Speaker 4: Is definitely magnifying it.

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Speaker 1: And I should mention when we started covering this story,

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Speaker 1: we've still seen European features. The markets hadn't opened yet,

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Speaker 1: we had seen them pointing decidedly lower, but on these

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Speaker 1: headlines as they rolled out, we first saw a delay

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Speaker 1: in the openings of the stock markets here in Europe

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Speaker 1: as well. Traditionally it takes no more than sixty seconds

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Speaker 1: for the footsage to get prices on the foots one

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Speaker 1: hundred to a couple of minutes to do that.

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Speaker 4: But you know, in this industry time time is of

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Speaker 4: the essence.

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Speaker 1: But it also started to see some issues when it

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Speaker 1: came about in terms of bids for Haven assets for example.

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Speaker 1: So you immediately saw risk sentiment turn around, some of

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Speaker 1: the airline stocks of course taking the biggest hit, the banks, HSBC, Barkleys,

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Speaker 1: even the London Stock Exchange that is publicly listed all

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Speaker 1: took some pretty big hits in trading, at least in

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Speaker 1: the early opening trades as well. And then of course

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Speaker 1: you did have the bids into your classic or save

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Speaker 1: Haven to Japanese Yen, the Swiss Frank treasuries even catching

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Speaker 1: a bid as well, and of course US futures turning lower.

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Speaker 1: It looks like some of those gains or some of

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Speaker 1: those moves have been paired, but that was the knee

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Speaker 1: jerk reaction.

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Speaker 13: All right.

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Speaker 2: Well, of course we're going to be monitoring this throughout

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Speaker 2: the morning. Thank you for this, Bloomberg's pretty goop to

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Speaker 2: do with us from London. Want to turn now to

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Speaker 2: the final night of the Republican National Convention. Donald Trump's

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Speaker 2: returned to the stage, a return to near total control

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Speaker 2: of the GOP after the attempt on his life last weekend.

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Speaker 2: Joining us for more on that as Bloomberg New senior

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Speaker 2: editor Bill Ferries, Bill, good Morning. We had heard from

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Speaker 2: the former president that he had changed his speech to

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Speaker 2: make it more of a message of unity. Is that

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Speaker 2: what we heard last night in this ninety three minute

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Speaker 2: address to the crowd in Milwaukee.

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Speaker 13: Four and a half.

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Speaker 15: So there were moments where the president former president talked

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Speaker 15: about unity and saying he said, you know, at one point,

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Speaker 15: the discord and division in our society must be healed.

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Speaker 15: And he started off his speech giving a very kind

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Speaker 15: of detailed, moment by moment description of the shooting over

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Speaker 15: the weekend and what he was thinking, what he went through.

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Speaker 15: But you know, it definitely veered off script for many moments,

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Speaker 15: and there were a lot of harsh attacks on Democrats,

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Speaker 15: the media, migrants to the US, There was a lot

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Speaker 15: of It was kind of this mix of on script

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Speaker 15: and offscript that anyone who has watched some of Donald

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Speaker 15: Trump's rallies has become accustomed to scene. So not a

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Speaker 15: lot of not a lot of a focus on that unity.

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Speaker 15: And and you know, there wasn't a hugely changed tone

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Speaker 15: that you know, we'd been led to believe was coming

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Speaker 15: in the days after the shooting.

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Speaker 2: And I would imagine not a hugely changed policy idea

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Speaker 2: coming from the former president as well, talking about, you know,

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Speaker 2: building the wall, getting away from clean energy, cracking down

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Speaker 2: on immigration. What did we hear in terms of policy

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Speaker 2: in a potential second Trump administration.

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Speaker 15: Well, there was this I think pitch to almost like

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Speaker 15: a nostalgic pitch to where America was, where the economy

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Speaker 15: in particular was before the pandemic hit during Trump's presidency.

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Speaker 15: You know, he talked about inflation had been low, economic

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Speaker 15: growth had been strong, unemployment had been low. Economists would

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Speaker 15: tell you that's kind of the situation America is in

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Speaker 15: now as well. But yeah, you're right, he talked about

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Speaker 15: he talked about the wall, rebuilding the wall. There were

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Speaker 15: not specifics about a lot of specifics about what a

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Speaker 15: second Trump term would bring beyond he said he would

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Speaker 15: you know, he would continue building the wall. He would

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Speaker 15: he would cut taxes, he would get rid of credits

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Speaker 15: for electric vehicles. But if you were looking for, hey,

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Speaker 15: what's the what would the first hundred days of a

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Speaker 15: new Trump presidency look like? You weren't going to get

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Speaker 15: a lot of those kind of details.

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Speaker 2: So does that provide an opening of some sort for Democrats,

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Speaker 2: who are you know, really seeing the current president's campaign flounder.

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Speaker 2: It's like it's hanging on by a thread for President Biden.

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Speaker 15: That was actually some of the feedback you heard from

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Speaker 15: Democrats in the hours after that speech ended. They said,

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Speaker 15: you know, there were a lot of people online saying,

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Speaker 15: you know, this is a candidate we can beat. But

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Speaker 15: of course, what was almost overshadowing the entire RNC on

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Speaker 15: this last day was the status of the Biden campaign

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Speaker 15: and whether he will be the candidate that Donald Trump

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Speaker 15: is facing in November.

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Speaker 4: There's a lot of doubt about that.

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Speaker 15: And I think that may have even played into Trump's

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Speaker 15: decision with one exception not to mention Joe Biden by name.

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Speaker 2: So in our last minute bill, what have we confirmed

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Speaker 2: about the pressure that is on the president to potentially

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Speaker 2: step aside?

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Speaker 15: Well, what we know. You know, every few hours, it

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Speaker 15: seems like you have another senior Democrat. We had two

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Speaker 15: more senators coming in, John Hickenlooper and John Tester coming in.

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Speaker 15: We have a report from the Associated Press that the

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Speaker 15: Biden campaign is scheduling an all hands staff meeting for Friday.

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Speaker 15: So that has only fueled more space that there may

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Speaker 15: be a change coming. You'll listen. The President is at

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Speaker 15: home isolating with his COVID nineteen situation that has kind

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Speaker 15: of prevented him from doing the counter programming that normally

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Speaker 15: he would be out there trying to do, and is

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Speaker 15: just more and more senior Democrats coming forward, including now

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Speaker 15: Barack Obama apparently getting involved in some of the discussions

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Speaker 15: and raising concerns about whether Joe Biden will be the

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Speaker 15: strongest candidate the Democrats can put forward in November.

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Speaker 2: This is Bloomberg day Break Today, your morning brief on

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Speaker 4: And I'm Karen Moscow.

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Speaker 3: Join us again tomorrow morning for all the news you

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