Speaker 1: Broadcasting live to New York, Bloomberg eleventh to Washington, d
Speaker 1: C Bloomber to Boston, Bloomberg Well under It, to San Francisco,
Speaker 1: Bloomberg nine to the country, zoos A General one nineteen
Speaker 1: and around the globe the Bloomberg Radio Plus happened Bloomberg
Speaker 1: dot Com. This is taking stock. I'm Kathleen Hays along
Speaker 1: with p M. Fox. Let's like, just about anything and
Speaker 1: everything can be hacked this in this day and age.
Speaker 1: But what about the coming presidential election? Is the proper
Speaker 1: cybersecurity infrastructure in place? And oh boy, how about maybe
Speaker 1: updating some outdated voting machines A special guest look at that,
Speaker 1: PIM guess we'll be speaking with David Carty about cybersecurity
Speaker 1: and the upcoming election. Right now, though, let's go to
Speaker 1: Katherine Caterin and the Bloomberg News from for Bloomberg Business Flash.
Speaker 1: Thank you, Pam Well. There could be more records on
Speaker 1: Wall Street today. Socks are advancing as traders pushback bets
Speaker 1: on high or interest rates in it uneven economic growth
Speaker 1: in the US. A report today showed a homebuilder confidence
Speaker 1: is up. Bloomberg's Viney del Judais has a details Steady
Speaker 1: job growth and low interest rates are boosting prospects for
Speaker 1: the housing market. The home builder confidence in DEX rose
Speaker 1: to sixty this month from July's reading a fifty eight.
Speaker 1: Readings above fifty suggests the market is good. The report
Speaker 1: is sponsored by the National Association of home Builders and
Speaker 1: Wells Fargo Looking Ahead. Tuesday, the Commerce Department issues data
Speaker 1: on actual starts of new construction in July at the
Speaker 1: Bloomberg First Word Desk on Veni del Judais Bloomberg Radio.
Speaker 1: We check the markets every fifteen minutes throughout the trading
Speaker 1: day on Bloomberg Radio. DAL industrial average is up seventy
Speaker 1: one points four tens of a percent at eighteen thousand,
Speaker 1: six hundred forty seven smp F I founded up seven
Speaker 1: points a third percent. Trading the NAZAC is up thirty
Speaker 1: one point six tents of a percent of fifty two
Speaker 1: sixty three plus. Texas Intermedia crude oil up a dollar
Speaker 1: thirty three a barrel, that's a gain of three percent.
Speaker 1: Trading at two sparkled up two dollars and ounce at
Speaker 1: and the Tenure Treasury is down eleven thirty seconds with
Speaker 1: yield of one point by five percent. Among today's talk
Speaker 1: business stories. Some US endowments and foundations are souring on
Speaker 1: hedge funds. Hedge fund fees and lagging performance are caused
Speaker 1: for concern for nonprofit investors who are reducing their allocation.
Speaker 1: That's according to a survey published by n EPC of
Speaker 1: Boston based consulting firm with one eighteen endowment and foundation clients.
Speaker 1: The private equity firm TPG IS agreed to buy two
Speaker 1: small cable providers r C and Telecom Service and Grand
Speaker 1: Communications Networks. And now let's get an update of some
Speaker 1: of the other stories we're following today. Thank you Catherine
Speaker 1: from the Bloomberg Newsroom. I'm Jill Schneider. This news update
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Speaker 1: Republican presidential nominee Donald Trump is in Youngstown, Ohio, where
Speaker 1: he's delivering a speech on foreign policy. Trump talked about
Speaker 1: the growth of Islamic State in two thousand and fourteen.
Speaker 1: Isis was operated in seven nations who were in seven nations. Terrible,
Speaker 1: but that's what it was. Today, they're fully operational in
Speaker 1: eighteen countries, with aspiring branches in six more, for a
Speaker 1: total of twenty four and many believe that number is
Speaker 1: actually twenty eight to thirty countries. Vice President Joe Biden
Speaker 1: campaigned alongside Hillary Clinton today in Scranton, Pennsylvania. He said
Speaker 1: Donald Trump can't relate to middle class Americans. This guy,
Speaker 1: don't you care about the middle class. And I don't
Speaker 1: even blame him in a sense because he doesn't understand it.
Speaker 1: He doesn't have a clue. No, he really, I mean
Speaker 1: he really doesn't. He doesn't have a clue. Biden said
Speaker 1: Trump is quote totally unprepared to lead the country. Volunteers
Speaker 1: with both are part of the rescue effort in Badly
Speaker 1: Did parts of Louisiana. State officials say about twenty thousand
Speaker 1: people have had to be rescued and ten thousand or
Speaker 1: staying at shelters. The flooding has killed at least six people.
Speaker 1: Friends and families said goodbye today to a New York
Speaker 1: City woman who was found dead after going for a
Speaker 1: run near her mother's Massachusetts home. Vanesa Marcotte was twenty
Speaker 1: seven and worked for Google. No arrests have been made.
Speaker 1: Global News twenty four hours a day, powered by more
Speaker 1: than twenty d journalists and analysts in more than one
Speaker 1: twenty countries. I'm Jill Schneider and this is Bloomberg. Catherine,
Speaker 1: thank you, And now let's get a quick check of
Speaker 1: the market. Stole Industrial laverage up seventy points at eighteen thousand,
Speaker 1: sixty six, smp F I founded up seven point, the
Speaker 1: NASTAC up thirty points at fifty two sixty three, and
Speaker 1: that's a Bloomberg business slash. This is taking stock with
Speaker 1: pim Box and Kathleens on Bloomberg Radio. Over the weekend,
Speaker 1: Congressional Democrats, they scrambled to figure out the scope of
Speaker 1: an unprecedented leite that we're view the personal cell phone
Speaker 1: numbers and email addresses of nearly two hundred current and
Speaker 1: former Democrats in the House of Representatives. The posting of
Speaker 1: an online spreadsheet contained this personal information with lawmakers as
Speaker 1: well as senior staffers. Is this something that could affect
Speaker 1: the election, and indeed, could the election itself be hacked?
Speaker 1: We turned now to David Garretty. He is a principal
Speaker 1: at g v A Research, a columnist at Investopia Investopedia,
Speaker 1: and he can be followed on Twitter at g v
Speaker 1: A Research. David, thanks for being here, Thanks for making
Speaker 1: me stumble on investopedia. UM, tell us about hacking and
Speaker 1: we've learned about this revelation of cell phone numbers and
Speaker 1: email addresses from Democrats in the House. Is it possible
Speaker 1: that that could also mean that the computer and the
Speaker 1: tallying system for our national election could be hacked. Well,
Speaker 1: him to sort of address the issues. Um, if we
Speaker 1: go back to the two thousand election, we remember hanging
Speaker 1: Chad's down in the state of Florida. We were basically
Speaker 1: reminded of the fact that, uh, the election in two
Speaker 1: thousand was decided by the Supreme Court voting in favor
Speaker 1: of George W. Bush. Now, Congress in two thousand two
Speaker 1: passed an act called the Help America Vote Act, and
Speaker 1: this made available but four billion dollars with the funding
Speaker 1: which was used to go out and purchase voting machines. Um.
Speaker 1: These were put in place, but there hasn't been much
Speaker 1: investment made in terms of the infrastructure, if you will,
Speaker 1: of the vote casting system. Since so we're operating in
Speaker 1: a situation right now where in two thousand sixteen, we
Speaker 1: have forty three states that are using electronic voting machines
Speaker 1: that are at least ten years old, and out of
Speaker 1: those number, fourteen of those states have voting machines that
Speaker 1: are fifteen years or older. Now, bear in mind that
Speaker 1: most of these voting machines rely upon a Microsoft Windows
Speaker 1: operating system, except the operating system that they're using is
Speaker 1: most likely Windows XP, which Microsoft stops supporting back in
Speaker 1: April of two thousand fourteen, which from a practical standpoint
Speaker 1: means that there have been no security updates, no patches,
Speaker 1: no support for these systems since April of two thousand fourteen,
Speaker 1: which raises the question that if there were an interest,
Speaker 1: someone could probably find a way to degrade the operating
Speaker 1: performance of those machines, not so much as to change
Speaker 1: the votes, us most likely to impede the ability of
Speaker 1: voters to actually cast their ballots through an electronic machine,
Speaker 1: which is why you're seeing people say, look, we need
Speaker 1: to ensure for this presidential election coming up in November,
Speaker 1: that there's a sufficient supply of paper ballots available. So
Speaker 1: enter hacking. I get that the voting machines are obsolescent,
Speaker 1: not mode. And I love the fact you point out
Speaker 1: that they're you know, they're running on an old, outdated
Speaker 1: Microsoft system. But you know this is this the state
Speaker 1: of the world, and we forget sometimes is how far
Speaker 1: behind a lot of things are. How could we be
Speaker 1: hacked Someone just goes in and changes the votes from
Speaker 1: Clinton to Trump or Trump to Clinton. There have been
Speaker 1: experiments that have been done, you know, by the government
Speaker 1: in terms of there's the Argonne Lab, which is part
Speaker 1: of the system of nationwide labs. We have Lawrence Livermore,
Speaker 1: Sandy are others where they've actually run experiments or tests
Speaker 1: as a sort of a weekend experiment, and they've been
Speaker 1: able to hack into voting machines and actually change votes. Now,
Speaker 1: the point I'm raising here isn't so much the fact
Speaker 1: that votes are changed, but the fact that you degrade
Speaker 1: the system. If people look at past elections and people
Speaker 1: look at questions of voter disenfranchisement, people have raised concerns
Speaker 1: about voter ID laws, But most of these older machines
Speaker 1: are in districts that are less well off, that can't
Speaker 1: afford to won't spend the money to upgrade the infrastructure.
Speaker 1: And clearly where there has been voter disenfranchisement in the past,
Speaker 1: it's been in terms of lower socio economic classes or districts.
Speaker 1: So if there were efforts to not only impede turnout,
Speaker 1: but to impede the performance of those people who do
Speaker 1: turn out to vote, obviously finding a way to degrade
Speaker 1: the performance of the voting machines would be one way
Speaker 1: to do that. For eighty two dollars, I understand that
Speaker 1: you can buy a Sequoia, a VC advantage machine. It's
Speaker 1: one of the oldest machines still in use. Voting machines
Speaker 1: such as these are in views in places like Louisiana, Virginia,
Speaker 1: and New Jersey, Pennsylvania. Took a Princeton, a computer science professor,
Speaker 1: about five minutes to hack into the machine. Right now,
Speaker 1: the challenge that we have here in the United States,
Speaker 1: and so we've got about, you know, nine thousand different
Speaker 1: districts that have controlled either on a local level or
Speaker 1: a state level with respect to supporting voting machines. Now
Speaker 1: there there, there are, there's not a standard of machines
Speaker 1: that are being used. So arguably from a hacking standpoint,
Speaker 1: the fact that you've got this heterogeneous infrastructure. Maybe some
Speaker 1: extent serves to impede any efforts to hack. But the
Speaker 1: point can be made here and is made here that
Speaker 1: this is something we should be concerned about. From the standpoint,
Speaker 1: we look at a voting process that should be transparent,
Speaker 1: it should have high integrity, and it should be one
Speaker 1: which in the current environment, is not capable of being
Speaker 1: rigged ten seconds. Donald Trump has famously said, I'll look
Speaker 1: out the election could be rigged to stay. Garritty agree that,
Speaker 1: at least in terms of cybersecurity, it could. I think
Speaker 1: that this argues very much for using paper ballots in
Speaker 1: the upcoming election. All Right, did Garritty? You can find
Speaker 1: the terrific essay he wrote a couple of weeks ago
Speaker 1: on Investopedia. Dave Garrity is principle at g b A
Speaker 1: Research joining us today in our New York study. Thinks.
Speaker 1: So much for coming in, Dave. I'm Catheine Hayes along
Speaker 1: with PM Fox. This is taking Stock on Bloomberg Radio.
Speaker 1: We're going to be looking at the stock market and
Speaker 1: where it goes next. This is Bloomberg coming up on
Speaker 1: taking Stock. Jonathan Gollub, chief US market strategist for RBC
Speaker 1: Capital Markets. He's got a call of a target on
Speaker 1: the SMP at two thousand two twenty five