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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: They say it's the Bloomberg Daybreak Europe podcast, available every

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Speaker 2: morning on Apple, Spotify or wherever you listen.

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Speaker 3: It's Friday, the twenty third of August in London. I'm

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Speaker 3: Stephen Carroll and I'm Credie Gupta.

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Speaker 1: Coming up today, Kamala Harris vows to be a president

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Speaker 1: for all Americans as she accepts the Democratic nomination.

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Speaker 2: Federal Reserve officials argue that gradual right cuts should begin

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Speaker 2: soon ahead of Jerome pals Jackson Hole's speech.

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Speaker 1: Plus, just weeks after being cleared on fraud charges, the

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Speaker 1: British tech tycoon Mike Lynch confirmed to have died in

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Speaker 1: the sinking of a yacht off the Italian coast.

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Speaker 3: Let's start with a round up of our top stories.

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Speaker 1: Vice President Kamala Harris has formally accepted the Democratic presidential

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Speaker 1: nomination and delivered a convention speech that set out her

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Speaker 1: vision for leading the United States. Building on her background,

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Speaker 1: Harris sought to offer a unifying message to voters.

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Speaker 4: I know there are people of various political views watching tonight,

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Speaker 4: and I want you to know I promise to be

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Speaker 4: a president for all Americans. You can always trust me

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Speaker 4: to put country above party and self.

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Speaker 1: Harris's must have speech to contrast her agenda with that

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Speaker 1: of her Republican rival Donald Trump, who she said would

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Speaker 1: only prioritize himself. In a lengthy critique of the former president,

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Speaker 1: she described him as an unserious man who presents a

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Speaker 1: serious threat to democracy.

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Speaker 2: Kamena Harris also vowed to prioritize the fight for the

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Speaker 2: middle class and Americans reproductive rights, Framing the debate over

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Speaker 2: the issue as a fight for freedom. The Vice president

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Speaker 2: warned the crowd about what she believed another Trump term

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Speaker 2: would mean.

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Speaker 4: He plans to create a national anti abortion coordinator and

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Speaker 4: force states to report on women's miscarriages and abortions. Simply put,

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Speaker 4: they are out of their minds.

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Speaker 2: Although light on policy detail, the Democratic nominee said she

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Speaker 2: would pass a middle class tax cut that would benefit

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Speaker 2: more than one hundred million Americans and provide more access

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Speaker 2: to capital for small business owners. Harris's speech caps an

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Speaker 2: extraordinary candidate swap that had her pick up the mantle

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Speaker 2: from President Joe Biden following his Disasters debate performance just

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Speaker 2: weeks ago. The latest polling suggests Harris has a slim

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Speaker 2: but growing lead in the polls, although still within the

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Speaker 2: margin of error.

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Speaker 1: The n rose after Bank of Japan Governor Coswell Uuida

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Speaker 1: signaled the central bank is still on the path to

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Speaker 1: raise interest rate. Speaking in the country's parliament, Yuada said

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Speaker 1: the BOJ stance had not changed provided inflation and economic

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Speaker 1: data continue in line with its forecasts. The comments come

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Speaker 1: after his deputy had sought to reassure markets that further

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Speaker 1: hikes would depend on the state of the market. In July,

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Speaker 1: the central Bank's rate increase triggered a massive cell off

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Speaker 1: in global equities.

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Speaker 2: Two Federal Reserve officials say they believe it's a operate

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Speaker 2: for the US Center Bank to begin lowering interest rates soon.

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Speaker 2: Boston Susan Collins and Philadelphia's Patrick Harker both called for

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Speaker 2: a quote gradual and methodical series of interest rate cuts

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Speaker 2: to start in September. That chimes at market thinking, where

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Speaker 2: investors are pricing in right cuts at each remaining meeting

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Speaker 2: this year, But Kansas City Fed President Jeffrey schmidtel Bloomberg

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Speaker 2: he wasn't ready yet to support a cut.

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Speaker 5: This mandate on the inflation site's really important. I think

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Speaker 5: we seem to be getting some really good movement that direction.

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Speaker 5: But before we act, at least before I act or

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Speaker 5: recommend acting, I think we need to see a little

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Speaker 5: bit more.

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Speaker 2: Despite Smid's caution, minutes from the la fed's last meeting

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Speaker 2: show a vast majority of policymakers expected to start eating

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Speaker 2: in September. Investors will be listening closely for any hints

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Speaker 2: about how quickly policymakers expect to move when FED charge

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Speaker 2: your own. Powell speaks later.

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Speaker 1: Nesslie CEO Mark Schneider is being replaced after eight years

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Speaker 1: running the consumer goods giant. The company's Latin American chief

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Speaker 1: Freaks will take over the top jobs starting next month.

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Speaker 1: Bloom'rex James Wilcock has the story.

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Speaker 3: It was a surprise move.

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Speaker 6: Mark Schneider was set to speak at three different events

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Speaker 6: next week before his departure was announced. But he's not alone.

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Speaker 6: Former CEO of UNI Leaver Alan job step down last year.

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Speaker 5: You know, winning in fast moving consumer goods doesn't come

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Speaker 5: from doing one thing right.

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Speaker 7: You have to do lots of things right all the

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Speaker 7: time every year.

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Speaker 6: And just last week another boss was felled.

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Speaker 3: A new leader on the way for Starbucks.

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Speaker 1: The coffee chain has named Chipotle chief executive Brian nicol

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Speaker 1: as its new CEO and chairman.

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Speaker 6: Bloomberg data shows six of the largest consumer companies have

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Speaker 6: announced new CEOs in the last year. The change at

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Speaker 6: the top speak to a sector trying to win back

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Speaker 6: the confidence of investors in a difficult market. Consumers globally

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Speaker 6: are keeping a tight grip on spending after post pandemic

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Speaker 6: price rises and high rates. In London, James Wilcock Bloomberg Radio.

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Speaker 2: UK, consumers are becoming increasingly optimistic about their personal fine

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Speaker 2: since the Bank of England's first rate cut. GfK says

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Speaker 2: the household's perceptions of their financial situation and their willingness

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Speaker 2: to spend both rows. In August, the British Economy as

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Speaker 2: I performed all of its group of seven peers so

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Speaker 2: far this year, with growth of points seven percent in

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Speaker 2: the first quarter and one point six percent in the second.

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Speaker 1: Mike Linch, the tech entrepreneur dubbed the British Bill Gates,

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Speaker 1: has died aged fifty nine. Bloomberg understands the businessman did

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Speaker 1: not survive the sinking of a yacht and a severe

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Speaker 1: storm off the coast of Italy. Giovanni Constantino, boss of

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Speaker 1: yacht company the Italian Sea Group says the incident was mismanaged.

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Speaker 7: The storm is on the weather chart that everyone could read.

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Speaker 7: The event was absolutely readable and expected. First of all,

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Speaker 7: everyone had to be in the assembly point, which is

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Speaker 7: in the main lounge, not in the cabins.

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Speaker 1: Giovanni Constantino from the Italian Sea Group there speaking through

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Speaker 1: a translator. Now small group of Lynch's advisors were on

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Speaker 1: board the vessel, celebrating his recent acquittal on fraud charges.

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Speaker 1: During his career, the tycoon co founded Autonomy, the UK's

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Speaker 1: second largest technology company, and advised two British Prime ministers,

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Speaker 1: who was described as quote one of the brightest minds

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Speaker 1: the technology sector has ever seen by Illuminance, a company

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Speaker 1: he helped found.

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Speaker 2: At a moment, we will look ahead to that key

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Speaker 2: speech by fed Charger, own Pallett Jackson Hole and reflect

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Speaker 2: on the life of British entrepreneur Mike Lanch. But let's

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Speaker 2: start Cretty in Chicago, Kamala Harris accepting the Democratic Party's

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Speaker 2: nomination for the presidential rate, capping off the convention that

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Speaker 2: we've been talking about all week on the program. I mean,

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Speaker 2: there was lots going on in that hole. Quite frankly,

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Speaker 2: building up to this huge crescendo for Kamala Harris. I mean,

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Speaker 2: you know, you can take your pick of the fun facts.

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Speaker 2: Apparently one hundred thousand red, white, and blue balloons fell

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Speaker 2: on the convention after her speech ended. You know, there

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Speaker 2: was a huge, obviously huge amount of organization that went

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Speaker 2: into Beyonce wasn't there in person, despite some rumors that

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Speaker 2: were circulating online. But it was her song Freedom that

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Speaker 2: Kamala Harris walked on to stage four and came off

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Speaker 2: stage as well. And I liked this that it was

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Speaker 2: thirty nine minutes her speech, which was half as long

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Speaker 2: as Donald Trump's to the RNC.

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Speaker 3: So there you go.

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Speaker 1: Can I give my own fun fact there? My favorite

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Speaker 1: little snippet of it was that the two stars of

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Speaker 1: the show Scandal were there, Kerrie Washington and her co

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Speaker 1: star who.

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Speaker 3: Play does the process of the show. They made a little,

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Speaker 3: a little on stage appearance.

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Speaker 1: Well, yeah, my favorite bit, you know, besides the nomination of.

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Speaker 2: Course, indeed, of course, well look let's get into the

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Speaker 2: content of the speech then.

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Speaker 3: I mean, this was a big moment for Kamala Harris.

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Speaker 2: There were lots of comparisons being made to of course,

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Speaker 2: when she accepted the vice presidential nominee four years ago.

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Speaker 2: I'm interested in your thoughts on this, Crittie. This is

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Speaker 2: obviously a story that you've been living inside and out

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Speaker 2: for a long time. When you listen to what Kamala

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Speaker 2: Harris was saying, do you felt that she rose to

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Speaker 2: the occasion. I suppose in this time around.

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Speaker 1: Well, she's sticking to kind of the messages that are

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Speaker 1: resonating with the people. It's a very clearly choreographed campaign

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Speaker 1: in that she is she knows her weak points, so

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Speaker 1: she's speaking to She actually very quick did mention the

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Speaker 1: Gaza conflict as well, which I think she's largely been avoiding.

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Speaker 1: We'll get to that in a moment. But she's sticking

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Speaker 1: a lot to that kind of making America affordable for

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Speaker 1: the middle class narrative. So she really harped on things

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Speaker 1: like what a Trump tax cut might look like for

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Speaker 1: the wealthy. She actually advocated for a middle class tax cut.

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Speaker 1: Now it's unclear if that's an actual tax cut. If

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Speaker 1: she means that through some of the measures that she's doing,

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Speaker 1: it would equal the same savings as.

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Speaker 3: A tax cut.

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Speaker 1: But the fact that she's really harping on the idea

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Speaker 1: of housing affordability, price gouging in terms of groceries, price

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Speaker 1: gouging in terms of prescription drugs. Those are all things

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Speaker 1: that were mentioned even her nomination and have been mentioned

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Speaker 1: all week long by her allies.

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Speaker 2: Yeah, indeed, so there wasn't any major new policy announcements.

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Speaker 2: But it is interesting, as you pointed out, that she

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Speaker 2: did talk about the war in Gaza. This is an

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Speaker 2: issue that's been quite controversial at the convention. That's been

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Speaker 2: protests outside, There's been lots of criticisms that wasn't enough

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Speaker 2: said inside the convention hard about it.

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Speaker 3: What did you make of the language that we heard

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Speaker 3: from the Vice president.

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Speaker 1: Well, she stuck to the party line, but she did

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Speaker 1: acknowledge it. And I have to say this is I

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Speaker 1: think maybe the first or one of the very few

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Speaker 1: times throughout the dam and See this is day four,

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Speaker 1: basically we're coming off of for the DNC where you

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Speaker 1: have actually heard it being addressed. And this is largely

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Speaker 1: something that the R and C certainly did not address

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Speaker 1: from a gas up perspective. So this is really interesting

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Speaker 1: when it comes to that. What also really stood out

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Speaker 1: to me is that the way she kind of described

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Speaker 1: herself She really used her speech as a way of

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Speaker 1: explaining who she was. She's had so much written about her,

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Speaker 1: so much by kind of being in the shadow of

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Speaker 1: Joe Biden as kind of her VP. This was her

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Speaker 1: opportunity to kind of create her own narrative about herself.

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Speaker 1: She did that, explaining that she's from a mixed background,

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Speaker 1: she's from a lower income family, she had time at

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Speaker 1: at the prosecutor's desk in California, of course during her

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Speaker 1: time as Attorney General, even going to a point of

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Speaker 1: talking about the immigration story in the border story again

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Speaker 1: no clear policy eject is, but just saying this is

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Speaker 1: a issue where she's actively prosecuted on. So I think

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Speaker 1: again she's highlighting the issues. It's a very conscious approach

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Speaker 1: in terms of what the voters want to talk about,

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Speaker 1: the economy, the border, reproductive right. She didn't mention gun

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Speaker 1: control there, but she didn't mention Gaza, So you are

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Speaker 1: seeing that this is very again a choreographed take. Did

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Speaker 1: she rise to the occasion perhaps, Do we still need

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Speaker 1: to hear more about her policies?

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Speaker 8: Absolutely?

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Speaker 2: Yeah, I mean the language around Gaza was interesting because

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Speaker 2: she talked about President Biden, her working to end the

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Speaker 2: war so that Israel is secure, that the hostages are released,

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Speaker 2: the suffering in Gaza ends, and that the Palatinine people

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Speaker 2: can realize their right to dignity, security, freedom, and self determination.

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Speaker 2: So that was what we heard from the Vice President

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Speaker 2: on that quite sticky topic we talked about. You know,

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Speaker 2: the economy did feature in the speech, perhaps not as

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Speaker 2: prominently as it could have, but thinking about what's next

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Speaker 2: for the US economy. We've also got Jeron Powle speaking

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Speaker 2: at Jackson Holle later on as well. We're looking at markets,

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Speaker 2: you know, very much expecting a rat cut from the

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Speaker 2: Fed in September. It's been penciled in by many. What

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Speaker 2: should we expect to hear from Jerome Powell that mice

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Speaker 2: either you know, confirm that or otherwise.

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Speaker 1: Well reiterating a lot of that September rate cut kind

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Speaker 1: of that we've talked about. It's already something that we

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Speaker 1: saw in those fem semen. It's in fact, so many

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Speaker 1: participants actually wanted to cut back in July, and that

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Speaker 1: was really seen as kind of the dubbish maybe plot

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Speaker 1: twist of the last forty eight hours. I think what's

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Speaker 1: really interesting about about this one in the September rate

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Speaker 1: cut is we really need to figure out what the

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Speaker 1: reason for a rate cut is. Are we talking about normalization?

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Speaker 1: Are we actually worried about a slowdown? If you look

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Speaker 1: to a lot of financial experts right now, there's saying

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Speaker 1: a twenty five rate cut would be normalization. It's going

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Speaker 1: back to everything. It's kind of coming back to the

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Speaker 1: neutral rate, a fifty with signal panic. So that's the

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Speaker 1: kind of line that Jay Powell has to walk, and

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Speaker 1: it's also crucial that we're talking about it in fact

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Speaker 1: of whether or not some of the data that we

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Speaker 1: are seeing that is a slowdown. Is it a slowdown

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Speaker 1: that could lead to a recession. I think Neil Dutta

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Speaker 1: over a Renaissance Macro Group put it best, which is

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Speaker 1: that not all slow downs lead to a recession, but

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Speaker 1: every recession starts with a slowdown. And it's Jay powell

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Speaker 1: job to figure out where we are in that spectrum.

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Speaker 3: Yeah.

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Speaker 2: Indeed, what we've been hearing so far from those fight

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Speaker 2: officials like Susan Collins and Patrick Carker as well as

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Speaker 2: this gradual and methodical approach to rate cuts as well.

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Speaker 2: So that's what we'll be in focus. Will of course

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Speaker 2: bring you that speech from Jerome Powell later on Bloomberg Radio.

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Speaker 2: We're also going to be hearing from the likes of

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Speaker 2: Andrew Bailey from the Bank of England is giving a

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Speaker 2: speech in Jackson Hole as well. Eight pm London time

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Speaker 2: for that, and the ECB's Philip Plane will be speaking

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Speaker 2: on a panel later today as well. So plenty more

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Speaker 2: to come from Jackson Hole throughout the day. Let's turn

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Speaker 2: some other needs now and the British tech entrepreneur Mike

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Speaker 2: Lynch has been confirmed dead after the yacht that he

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Speaker 2: was on sank off the coast of Italy. Also among

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Speaker 2: the confirmed victims was Jonathan Bloomer, the chairman of Morgan

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Speaker 2: Stanley International, his wife Judy Chris Morvello, who was a

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Speaker 2: defense lawyer who'd represented Mike Clinch, and more Vella's white

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Speaker 2: wife Nada. Lynch's daughter Hannah is among those missing from

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Speaker 2: the yacht. Bloomberg's two Adebayo is here with more on

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Speaker 2: this story. And we had the confirmation that Clinch was

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Speaker 2: indeed on board that art and that he has he

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Speaker 2: did die in that storm. How will he be remembered?

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Speaker 3: He well, Our.

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Speaker 8: Own reporting has characterized his career as impressive, but also unfinished.

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Speaker 8: There's no doubt about the impact that he made on

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Speaker 8: the technology sector. He was known as the British Bill Gates.

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Speaker 8: He co founded Autonomy, the UK's second largest software company,

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Speaker 8: which he went on to sell for eleven billion dollars.

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Speaker 8: He then set up a venture capital firm which churned

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Speaker 8: out even more successful tech companies, including dark Trace. So

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Speaker 8: in terms of recognition he was also really well respected

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Speaker 8: by peers in the world of tech. He was named

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Speaker 8: Entrepreneur of the Year by the Confederation of British Business,

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Speaker 8: for example, and outside of the tech sphere he advised

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Speaker 8: two British Prime Ministers. He was also a non executive

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Speaker 8: director of the BBC and received an OBE for services

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Speaker 8: to enterprise.

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Speaker 3: But as one.

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Speaker 8: Tech analyst put it aptly yesterday, he said, goodness knows

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Speaker 8: what he could have achieved next. There is this sense

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Speaker 8: of his career being cut short, of course, in a

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Speaker 8: very tragic way, So that too will be part of

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Speaker 8: how he is remembered in part of his legacy, the

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Speaker 8: question really of what might have been.

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Speaker 2: Michaelinch had been celebrating his acquittal in a criminal trial

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Speaker 2: in the United States of o HP's purchase of his

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Speaker 2: company Autonomy.

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Speaker 3: What had he been accused of.

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Speaker 8: Yeah, Well, part of the reason why his career is

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Speaker 8: being described as upended is this decade long fraud case

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Speaker 8: that he was acquitted from just ten weeks ago. It's

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Speaker 8: a case that actually saw him extradited to the US

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Speaker 8: after he was accused by Culett Packard of boosting the

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Speaker 8: financial results of Autonomy during the sale. He was ultimately

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Speaker 8: found guilty of that in the United States, but there

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Speaker 8: was a UK based civil case about this which came

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Speaker 8: before that. It was one of the longest and most

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Speaker 8: expensive trials in British history. It actually did end up

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Speaker 8: with a judge ruling that he had fraudulently boosted the

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Speaker 8: value of his company in twenty twenty two, and it's

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Speaker 8: something that really affected him until the very end of

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Speaker 8: his life. Actually, when he died, he was still waiting

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Speaker 8: to hear how much he'd have to pay in damages

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Speaker 8: in that UK civil trial as well.

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Speaker 1: What do we know about what he was planning to

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Speaker 1: do next or what his peers were saying about him.

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Speaker 8: Well, actually, after he did win that criminal trial in California,

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Speaker 8: Mike Linch did release a statement and he said that

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Speaker 8: he was looking forward to returning to the UK and

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Speaker 8: getting back to what he loved the most, which he

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Speaker 8: said was his family and innovating in his field. So

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Speaker 8: you can only imagine that he did have significant professional

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Speaker 8: plans in mind as well, but tribute to have really

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Speaker 8: been rolling in from the business world and beyond. Actually,

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Speaker 8: his Autonomy co founder said he was the brightest man

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Speaker 8: I've ever met in my life. David Yellen, who's the

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Speaker 8: former editor of The Sun newspaper here in the UK,

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Speaker 8: was perhaps referring to his ex tradition to the US

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Speaker 8: in that case, and said he was failed in life

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Speaker 8: by his country and his peers when he needed them

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Speaker 8: the most.

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Speaker 3: We've also heard from Lord.

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Speaker 8: Brown, the former chief executive of BP, who said that

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Speaker 8: Lynch was the person who catalyzed a breed of deep

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Speaker 8: tech entrepreneurs in the UK.

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Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 2: stories making news from London to Wall Street and beyond.

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Speaker 3: I'm Caroline Hipka and I'm Stephen Carroll.

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Speaker 2: Join us again tomorrow morning for all the news you

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