1
00:00:03,960 --> 00:00:08,440
Speaker 1: Broadcasting live to New York, Bloomberg eleventh to Washington, d

2
00:00:08,480 --> 00:00:13,360
Speaker 1: C Bloomber to Boston, Bloomberg Well under It, to San Francisco,

3
00:00:13,480 --> 00:00:17,720
Speaker 1: Bloomberg nine to the country, zoos A General one nineteen

4
00:00:17,840 --> 00:00:21,360
Speaker 1: and around the globe the Bloomberg Radio Plus happened Bloomberg

5
00:00:21,360 --> 00:00:25,560
Speaker 1: dot Com. This is taking stock. I'm Kathleen Hays along

6
00:00:25,600 --> 00:00:27,840
Speaker 1: with p M. Fox. Let's like, just about anything and

7
00:00:27,960 --> 00:00:31,360
Speaker 1: everything can be hacked this in this day and age.

8
00:00:31,400 --> 00:00:36,680
Speaker 1: But what about the coming presidential election? Is the proper

9
00:00:36,800 --> 00:00:40,800
Speaker 1: cybersecurity infrastructure in place? And oh boy, how about maybe

10
00:00:40,920 --> 00:00:44,080
Speaker 1: updating some outdated voting machines A special guest look at that,

11
00:00:44,120 --> 00:00:47,600
Speaker 1: PIM guess we'll be speaking with David Carty about cybersecurity

12
00:00:47,720 --> 00:00:50,320
Speaker 1: and the upcoming election. Right now, though, let's go to

13
00:00:50,400 --> 00:00:53,479
Speaker 1: Katherine Caterin and the Bloomberg News from for Bloomberg Business Flash.

14
00:00:53,840 --> 00:00:56,080
Speaker 1: Thank you, Pam Well. There could be more records on

15
00:00:56,160 --> 00:00:59,600
Speaker 1: Wall Street today. Socks are advancing as traders pushback bets

16
00:00:59,640 --> 00:01:02,240
Speaker 1: on high or interest rates in it uneven economic growth

17
00:01:02,280 --> 00:01:05,560
Speaker 1: in the US. A report today showed a homebuilder confidence

18
00:01:05,680 --> 00:01:09,480
Speaker 1: is up. Bloomberg's Viney del Judais has a details Steady

19
00:01:09,560 --> 00:01:12,920
Speaker 1: job growth and low interest rates are boosting prospects for

20
00:01:12,959 --> 00:01:16,200
Speaker 1: the housing market. The home builder confidence in DEX rose

21
00:01:16,280 --> 00:01:19,480
Speaker 1: to sixty this month from July's reading a fifty eight.

22
00:01:19,880 --> 00:01:23,440
Speaker 1: Readings above fifty suggests the market is good. The report

23
00:01:23,520 --> 00:01:26,200
Speaker 1: is sponsored by the National Association of home Builders and

24
00:01:26,240 --> 00:01:30,600
Speaker 1: Wells Fargo Looking Ahead. Tuesday, the Commerce Department issues data

25
00:01:30,640 --> 00:01:34,040
Speaker 1: on actual starts of new construction in July at the

26
00:01:34,040 --> 00:01:37,279
Speaker 1: Bloomberg First Word Desk on Veni del Judais Bloomberg Radio.

27
00:01:37,560 --> 00:01:39,759
Speaker 1: We check the markets every fifteen minutes throughout the trading

28
00:01:39,840 --> 00:01:43,160
Speaker 1: day on Bloomberg Radio. DAL industrial average is up seventy

29
00:01:43,160 --> 00:01:45,720
Speaker 1: one points four tens of a percent at eighteen thousand,

30
00:01:45,800 --> 00:01:48,800
Speaker 1: six hundred forty seven smp F I founded up seven

31
00:01:48,800 --> 00:01:53,040
Speaker 1: points a third percent. Trading the NAZAC is up thirty

32
00:01:53,040 --> 00:01:55,160
Speaker 1: one point six tents of a percent of fifty two

33
00:01:55,200 --> 00:01:58,240
Speaker 1: sixty three plus. Texas Intermedia crude oil up a dollar

34
00:01:58,320 --> 00:02:00,400
Speaker 1: thirty three a barrel, that's a gain of three percent.

35
00:02:00,480 --> 00:02:04,880
Speaker 1: Trading at two sparkled up two dollars and ounce at

36
00:02:05,880 --> 00:02:08,240
Speaker 1: and the Tenure Treasury is down eleven thirty seconds with

37
00:02:08,360 --> 00:02:11,800
Speaker 1: yield of one point by five percent. Among today's talk

38
00:02:11,800 --> 00:02:15,919
Speaker 1: business stories. Some US endowments and foundations are souring on

39
00:02:16,080 --> 00:02:19,600
Speaker 1: hedge funds. Hedge fund fees and lagging performance are caused

40
00:02:19,639 --> 00:02:23,200
Speaker 1: for concern for nonprofit investors who are reducing their allocation.

41
00:02:23,600 --> 00:02:26,079
Speaker 1: That's according to a survey published by n EPC of

42
00:02:26,160 --> 00:02:30,920
Speaker 1: Boston based consulting firm with one eighteen endowment and foundation clients.

43
00:02:31,440 --> 00:02:34,160
Speaker 1: The private equity firm TPG IS agreed to buy two

44
00:02:34,200 --> 00:02:37,560
Speaker 1: small cable providers r C and Telecom Service and Grand

45
00:02:37,560 --> 00:02:41,400
Speaker 1: Communications Networks. And now let's get an update of some

46
00:02:41,440 --> 00:02:45,800
Speaker 1: of the other stories we're following today. Thank you Catherine

47
00:02:45,800 --> 00:02:48,880
Speaker 1: from the Bloomberg Newsroom. I'm Jill Schneider. This news update

48
00:02:48,960 --> 00:02:51,160
Speaker 1: is brought to you by the Jeep Grand Cherokee, the

49
00:02:51,200 --> 00:02:55,040
Speaker 1: most awarded suv ever. The Grand Cherokee continues to raise

50
00:02:55,080 --> 00:02:58,359
Speaker 1: the bar with its luxurious interior and legendary four by

51
00:02:58,360 --> 00:03:01,519
Speaker 1: four capability drive, one that your local jeep dealer today.

52
00:03:01,880 --> 00:03:05,839
Speaker 1: Republican presidential nominee Donald Trump is in Youngstown, Ohio, where

53
00:03:05,840 --> 00:03:09,000
Speaker 1: he's delivering a speech on foreign policy. Trump talked about

54
00:03:09,000 --> 00:03:11,680
Speaker 1: the growth of Islamic State in two thousand and fourteen.

55
00:03:11,760 --> 00:03:16,960
Speaker 1: Isis was operated in seven nations who were in seven nations. Terrible,

56
00:03:17,360 --> 00:03:21,680
Speaker 1: but that's what it was. Today, they're fully operational in

57
00:03:21,880 --> 00:03:26,720
Speaker 1: eighteen countries, with aspiring branches in six more, for a

58
00:03:26,800 --> 00:03:29,840
Speaker 1: total of twenty four and many believe that number is

59
00:03:29,880 --> 00:03:33,800
Speaker 1: actually twenty eight to thirty countries. Vice President Joe Biden

60
00:03:33,840 --> 00:03:38,000
Speaker 1: campaigned alongside Hillary Clinton today in Scranton, Pennsylvania. He said

61
00:03:38,040 --> 00:03:41,360
Speaker 1: Donald Trump can't relate to middle class Americans. This guy,

62
00:03:41,400 --> 00:03:44,440
Speaker 1: don't you care about the middle class. And I don't

63
00:03:44,480 --> 00:03:46,920
Speaker 1: even blame him in a sense because he doesn't understand it.

64
00:03:47,160 --> 00:03:50,600
Speaker 1: He doesn't have a clue. No, he really, I mean

65
00:03:50,600 --> 00:03:53,760
Speaker 1: he really doesn't. He doesn't have a clue. Biden said

66
00:03:53,800 --> 00:03:57,560
Speaker 1: Trump is quote totally unprepared to lead the country. Volunteers

67
00:03:57,560 --> 00:03:59,760
Speaker 1: with both are part of the rescue effort in Badly

68
00:04:00,080 --> 00:04:03,400
Speaker 1: Did parts of Louisiana. State officials say about twenty thousand

69
00:04:03,400 --> 00:04:05,680
Speaker 1: people have had to be rescued and ten thousand or

70
00:04:05,720 --> 00:04:08,840
Speaker 1: staying at shelters. The flooding has killed at least six people.

71
00:04:09,320 --> 00:04:11,440
Speaker 1: Friends and families said goodbye today to a New York

72
00:04:11,480 --> 00:04:13,840
Speaker 1: City woman who was found dead after going for a

73
00:04:13,960 --> 00:04:17,560
Speaker 1: run near her mother's Massachusetts home. Vanesa Marcotte was twenty

74
00:04:17,600 --> 00:04:20,200
Speaker 1: seven and worked for Google. No arrests have been made.

75
00:04:20,520 --> 00:04:23,040
Speaker 1: Global News twenty four hours a day, powered by more

76
00:04:23,040 --> 00:04:26,320
Speaker 1: than twenty d journalists and analysts in more than one

77
00:04:26,680 --> 00:04:30,040
Speaker 1: twenty countries. I'm Jill Schneider and this is Bloomberg. Catherine,

78
00:04:31,400 --> 00:04:33,120
Speaker 1: thank you, And now let's get a quick check of

79
00:04:33,160 --> 00:04:36,360
Speaker 1: the market. Stole Industrial laverage up seventy points at eighteen thousand,

80
00:04:36,360 --> 00:04:40,880
Speaker 1: sixty six, smp F I founded up seven point, the

81
00:04:40,960 --> 00:04:44,039
Speaker 1: NASTAC up thirty points at fifty two sixty three, and

82
00:04:44,120 --> 00:04:49,320
Speaker 1: that's a Bloomberg business slash. This is taking stock with

83
00:04:49,440 --> 00:04:54,360
Speaker 1: pim Box and Kathleens on Bloomberg Radio. Over the weekend,

84
00:04:54,400 --> 00:04:58,320
Speaker 1: Congressional Democrats, they scrambled to figure out the scope of

85
00:04:58,360 --> 00:05:01,679
Speaker 1: an unprecedented leite that we're view the personal cell phone

86
00:05:01,760 --> 00:05:05,479
Speaker 1: numbers and email addresses of nearly two hundred current and

87
00:05:05,600 --> 00:05:10,440
Speaker 1: former Democrats in the House of Representatives. The posting of

88
00:05:10,480 --> 00:05:15,520
Speaker 1: an online spreadsheet contained this personal information with lawmakers as

89
00:05:15,520 --> 00:05:19,000
Speaker 1: well as senior staffers. Is this something that could affect

90
00:05:19,080 --> 00:05:22,200
Speaker 1: the election, and indeed, could the election itself be hacked?

91
00:05:22,480 --> 00:05:24,880
Speaker 1: We turned now to David Garretty. He is a principal

92
00:05:24,920 --> 00:05:31,240
Speaker 1: at g v A Research, a columnist at Investopia Investopedia,

93
00:05:31,360 --> 00:05:34,320
Speaker 1: and he can be followed on Twitter at g v

94
00:05:34,560 --> 00:05:38,600
Speaker 1: A Research. David, thanks for being here, Thanks for making

95
00:05:38,600 --> 00:05:43,799
Speaker 1: me stumble on investopedia. UM, tell us about hacking and

96
00:05:44,360 --> 00:05:48,400
Speaker 1: we've learned about this revelation of cell phone numbers and

97
00:05:48,480 --> 00:05:52,520
Speaker 1: email addresses from Democrats in the House. Is it possible

98
00:05:52,600 --> 00:05:55,080
Speaker 1: that that could also mean that the computer and the

99
00:05:55,160 --> 00:05:58,839
Speaker 1: tallying system for our national election could be hacked. Well,

100
00:05:59,360 --> 00:06:02,479
Speaker 1: him to sort of address the issues. Um, if we

101
00:06:02,520 --> 00:06:05,040
Speaker 1: go back to the two thousand election, we remember hanging

102
00:06:05,120 --> 00:06:07,799
Speaker 1: Chad's down in the state of Florida. We were basically

103
00:06:07,920 --> 00:06:10,560
Speaker 1: reminded of the fact that, uh, the election in two

104
00:06:10,640 --> 00:06:13,279
Speaker 1: thousand was decided by the Supreme Court voting in favor

105
00:06:13,279 --> 00:06:16,120
Speaker 1: of George W. Bush. Now, Congress in two thousand two

106
00:06:16,160 --> 00:06:19,839
Speaker 1: passed an act called the Help America Vote Act, and

107
00:06:20,400 --> 00:06:23,040
Speaker 1: this made available but four billion dollars with the funding

108
00:06:23,240 --> 00:06:26,360
Speaker 1: which was used to go out and purchase voting machines. Um.

109
00:06:26,560 --> 00:06:29,280
Speaker 1: These were put in place, but there hasn't been much

110
00:06:29,480 --> 00:06:32,599
Speaker 1: investment made in terms of the infrastructure, if you will,

111
00:06:32,640 --> 00:06:35,839
Speaker 1: of the vote casting system. Since so we're operating in

112
00:06:35,839 --> 00:06:38,839
Speaker 1: a situation right now where in two thousand sixteen, we

113
00:06:38,920 --> 00:06:42,239
Speaker 1: have forty three states that are using electronic voting machines

114
00:06:42,279 --> 00:06:45,240
Speaker 1: that are at least ten years old, and out of

115
00:06:45,279 --> 00:06:48,680
Speaker 1: those number, fourteen of those states have voting machines that

116
00:06:48,720 --> 00:06:52,200
Speaker 1: are fifteen years or older. Now, bear in mind that

117
00:06:52,279 --> 00:06:56,760
Speaker 1: most of these voting machines rely upon a Microsoft Windows

118
00:06:56,800 --> 00:07:00,560
Speaker 1: operating system, except the operating system that they're using is

119
00:07:00,760 --> 00:07:05,719
Speaker 1: most likely Windows XP, which Microsoft stops supporting back in

120
00:07:05,839 --> 00:07:10,280
Speaker 1: April of two thousand fourteen, which from a practical standpoint

121
00:07:10,360 --> 00:07:14,760
Speaker 1: means that there have been no security updates, no patches,

122
00:07:15,480 --> 00:07:19,640
Speaker 1: no support for these systems since April of two thousand fourteen,

123
00:07:19,920 --> 00:07:23,640
Speaker 1: which raises the question that if there were an interest,

124
00:07:24,560 --> 00:07:27,240
Speaker 1: someone could probably find a way to degrade the operating

125
00:07:27,280 --> 00:07:30,360
Speaker 1: performance of those machines, not so much as to change

126
00:07:30,400 --> 00:07:33,600
Speaker 1: the votes, us most likely to impede the ability of

127
00:07:33,720 --> 00:07:37,320
Speaker 1: voters to actually cast their ballots through an electronic machine,

128
00:07:37,520 --> 00:07:40,000
Speaker 1: which is why you're seeing people say, look, we need

129
00:07:40,000 --> 00:07:43,920
Speaker 1: to ensure for this presidential election coming up in November,

130
00:07:43,960 --> 00:07:47,880
Speaker 1: that there's a sufficient supply of paper ballots available. So

131
00:07:48,360 --> 00:07:51,320
Speaker 1: enter hacking. I get that the voting machines are obsolescent,

132
00:07:51,360 --> 00:07:53,200
Speaker 1: not mode. And I love the fact you point out

133
00:07:53,200 --> 00:07:55,200
Speaker 1: that they're you know, they're running on an old, outdated

134
00:07:55,240 --> 00:07:58,200
Speaker 1: Microsoft system. But you know this is this the state

135
00:07:58,240 --> 00:08:00,640
Speaker 1: of the world, and we forget sometimes is how far

136
00:08:00,680 --> 00:08:03,640
Speaker 1: behind a lot of things are. How could we be

137
00:08:03,760 --> 00:08:06,960
Speaker 1: hacked Someone just goes in and changes the votes from

138
00:08:07,000 --> 00:08:10,240
Speaker 1: Clinton to Trump or Trump to Clinton. There have been

139
00:08:10,280 --> 00:08:12,840
Speaker 1: experiments that have been done, you know, by the government

140
00:08:12,920 --> 00:08:15,840
Speaker 1: in terms of there's the Argonne Lab, which is part

141
00:08:15,880 --> 00:08:18,679
Speaker 1: of the system of nationwide labs. We have Lawrence Livermore,

142
00:08:18,800 --> 00:08:22,600
Speaker 1: Sandy are others where they've actually run experiments or tests

143
00:08:22,640 --> 00:08:25,480
Speaker 1: as a sort of a weekend experiment, and they've been

144
00:08:25,520 --> 00:08:29,960
Speaker 1: able to hack into voting machines and actually change votes. Now,

145
00:08:30,360 --> 00:08:32,720
Speaker 1: the point I'm raising here isn't so much the fact

146
00:08:32,800 --> 00:08:35,800
Speaker 1: that votes are changed, but the fact that you degrade

147
00:08:35,840 --> 00:08:39,400
Speaker 1: the system. If people look at past elections and people

148
00:08:39,400 --> 00:08:44,559
Speaker 1: look at questions of voter disenfranchisement, people have raised concerns

149
00:08:44,600 --> 00:08:47,640
Speaker 1: about voter ID laws, But most of these older machines

150
00:08:47,679 --> 00:08:50,080
Speaker 1: are in districts that are less well off, that can't

151
00:08:50,120 --> 00:08:53,360
Speaker 1: afford to won't spend the money to upgrade the infrastructure.

152
00:08:53,600 --> 00:08:57,440
Speaker 1: And clearly where there has been voter disenfranchisement in the past,

153
00:08:57,800 --> 00:09:02,599
Speaker 1: it's been in terms of lower socio economic classes or districts.

154
00:09:02,679 --> 00:09:05,960
Speaker 1: So if there were efforts to not only impede turnout,

155
00:09:06,280 --> 00:09:09,240
Speaker 1: but to impede the performance of those people who do

156
00:09:09,360 --> 00:09:12,760
Speaker 1: turn out to vote, obviously finding a way to degrade

157
00:09:12,800 --> 00:09:15,520
Speaker 1: the performance of the voting machines would be one way

158
00:09:15,520 --> 00:09:18,319
Speaker 1: to do that. For eighty two dollars, I understand that

159
00:09:18,360 --> 00:09:21,360
Speaker 1: you can buy a Sequoia, a VC advantage machine. It's

160
00:09:21,400 --> 00:09:25,040
Speaker 1: one of the oldest machines still in use. Voting machines

161
00:09:25,080 --> 00:09:28,920
Speaker 1: such as these are in views in places like Louisiana, Virginia,

162
00:09:28,960 --> 00:09:34,880
Speaker 1: and New Jersey, Pennsylvania. Took a Princeton, a computer science professor,

163
00:09:35,760 --> 00:09:41,000
Speaker 1: about five minutes to hack into the machine. Right now,

164
00:09:41,040 --> 00:09:44,000
Speaker 1: the challenge that we have here in the United States,

165
00:09:44,040 --> 00:09:46,440
Speaker 1: and so we've got about, you know, nine thousand different

166
00:09:46,480 --> 00:09:49,360
Speaker 1: districts that have controlled either on a local level or

167
00:09:49,360 --> 00:09:54,120
Speaker 1: a state level with respect to supporting voting machines. Now

168
00:09:54,240 --> 00:09:57,240
Speaker 1: there there, there are, there's not a standard of machines

169
00:09:57,280 --> 00:09:59,839
Speaker 1: that are being used. So arguably from a hacking standpoint,

170
00:10:00,120 --> 00:10:04,080
Speaker 1: the fact that you've got this heterogeneous infrastructure. Maybe some

171
00:10:04,200 --> 00:10:07,000
Speaker 1: extent serves to impede any efforts to hack. But the

172
00:10:07,080 --> 00:10:09,520
Speaker 1: point can be made here and is made here that

173
00:10:09,559 --> 00:10:12,240
Speaker 1: this is something we should be concerned about. From the standpoint,

174
00:10:12,480 --> 00:10:14,880
Speaker 1: we look at a voting process that should be transparent,

175
00:10:15,240 --> 00:10:17,880
Speaker 1: it should have high integrity, and it should be one

176
00:10:17,920 --> 00:10:21,520
Speaker 1: which in the current environment, is not capable of being

177
00:10:21,840 --> 00:10:26,120
Speaker 1: rigged ten seconds. Donald Trump has famously said, I'll look

178
00:10:26,120 --> 00:10:28,319
Speaker 1: out the election could be rigged to stay. Garritty agree that,

179
00:10:28,360 --> 00:10:31,040
Speaker 1: at least in terms of cybersecurity, it could. I think

180
00:10:31,040 --> 00:10:33,640
Speaker 1: that this argues very much for using paper ballots in

181
00:10:33,679 --> 00:10:36,920
Speaker 1: the upcoming election. All Right, did Garritty? You can find

182
00:10:36,960 --> 00:10:39,080
Speaker 1: the terrific essay he wrote a couple of weeks ago

183
00:10:39,160 --> 00:10:42,880
Speaker 1: on Investopedia. Dave Garrity is principle at g b A

184
00:10:43,120 --> 00:10:45,160
Speaker 1: Research joining us today in our New York study. Thinks.

185
00:10:45,160 --> 00:10:47,840
Speaker 1: So much for coming in, Dave. I'm Catheine Hayes along

186
00:10:47,880 --> 00:10:52,040
Speaker 1: with PM Fox. This is taking Stock on Bloomberg Radio.

187
00:10:52,160 --> 00:10:54,200
Speaker 1: We're going to be looking at the stock market and

188
00:10:54,240 --> 00:11:02,400
Speaker 1: where it goes next. This is Bloomberg coming up on

189
00:11:02,520 --> 00:11:07,480
Speaker 1: taking Stock. Jonathan Gollub, chief US market strategist for RBC

190
00:11:07,760 --> 00:11:11,120
Speaker 1: Capital Markets. He's got a call of a target on

191
00:11:11,200 --> 00:11:13,880
Speaker 1: the SMP at two thousand two twenty five