1 00:00:02,520 --> 00:00:05,920 Speaker 1: Global business news twenty four hours a day at Bloomberg 2 00:00:05,960 --> 00:00:09,040 Speaker 1: dot com, the Radio plus Mobile Act and on your radio. 3 00:00:09,280 --> 00:00:13,840 Speaker 1: This is a Bloomberg Business Flash. Arron, Bloomberg World Headquarters. 4 00:00:13,840 --> 00:00:16,759 Speaker 1: I'm Charlie Howett. Stocks are retreating from records and this 5 00:00:16,840 --> 00:00:21,080 Speaker 1: subtate is brought to you by Celebrity Motor Car Company, 6 00:00:21,200 --> 00:00:25,200 Speaker 1: the luxury of BMW, the performance of Maserati, the innovation 7 00:00:25,239 --> 00:00:27,800 Speaker 1: of Lexus. Walk the red carpet and get the status 8 00:00:27,840 --> 00:00:32,400 Speaker 1: you deserve at the Celebrity Motor Car Company. Visit Celebrity 9 00:00:32,520 --> 00:00:36,920 Speaker 1: Motor Car dot Com. Stocks are lower, with the SMP 10 00:00:37,120 --> 00:00:40,440 Speaker 1: five hundred index falling ten points to sixty four, a 11 00:00:40,520 --> 00:00:43,320 Speaker 1: drop there of five tenths of one percent. Nan stack 12 00:00:43,479 --> 00:00:45,760 Speaker 1: is down eight points, the drop of two tenths of 13 00:00:45,800 --> 00:00:49,360 Speaker 1: one percent down, Industrials down one hundred nine points, a 14 00:00:49,440 --> 00:00:52,440 Speaker 1: drop of six tenths of one percent, the tenure down 15 00:00:52,479 --> 00:00:55,360 Speaker 1: one thirty second, the yield there one point five six percent, 16 00:00:55,440 --> 00:00:59,520 Speaker 1: Gold down five eighteen to drop of four tenths of 17 00:00:59,520 --> 00:01:02,400 Speaker 1: one percent, and crude oil falling a dollar nine of 18 00:01:02,480 --> 00:01:06,319 Speaker 1: barrel ten right now on West Texas Intermedia crude that 19 00:01:06,440 --> 00:01:08,720 Speaker 1: is a drop of two and a half percent I'm 20 00:01:08,840 --> 00:01:15,360 Speaker 1: Charlie Podell. That's a bloom Bright business flash. You're listening 21 00:01:15,360 --> 00:01:19,320 Speaker 1: to Taking Stock with Kathleen and Pim Fox on Bloomberg Radio. 22 00:01:20,360 --> 00:01:24,640 Speaker 1: Turning now to the Democratic a National Convention. It is 23 00:01:24,680 --> 00:01:30,520 Speaker 1: getting underway officially today. Hillary Clinton's campaign wants to portray 24 00:01:30,600 --> 00:01:34,000 Speaker 1: a unified Democratic Party in contrast to some of the 25 00:01:34,080 --> 00:01:38,520 Speaker 1: discourse we saw last week in Cleveland at the Republicans convention. 26 00:01:38,560 --> 00:01:42,240 Speaker 1: But this is getting tougher and tougher as calls grow 27 00:01:42,319 --> 00:01:47,000 Speaker 1: louder for cheerwoman Debbie Wasserman Schultz to step down immediately 28 00:01:47,400 --> 00:01:49,840 Speaker 1: rather than give a couple of big speeches and wait 29 00:01:49,920 --> 00:01:53,160 Speaker 1: till the end of the week to leave her post. Well, 30 00:01:53,240 --> 00:01:55,320 Speaker 1: let's put all of this in front of someone who 31 00:01:55,440 --> 00:01:58,480 Speaker 1: is following it very very closely. Are Washington d C 32 00:01:58,640 --> 00:02:02,360 Speaker 1: Bureau Chief Megan Murphy. Well, Megan, welcome back to the show. Boy, 33 00:02:02,400 --> 00:02:04,480 Speaker 1: oh boy. In case anybody thought that the d n 34 00:02:04,520 --> 00:02:07,320 Speaker 1: C would have a boring convention, they were all wrong. 35 00:02:08,240 --> 00:02:10,720 Speaker 1: Now and actually in just the last half hour, Debbie 36 00:02:10,720 --> 00:02:14,000 Speaker 1: Wassonman Shoulton, it has been confirmed, will not be speaking 37 00:02:14,040 --> 00:02:17,359 Speaker 1: at the convention and will not even gabble into the convention. 38 00:02:17,840 --> 00:02:20,639 Speaker 1: She is this is now which is become sort of 39 00:02:20,639 --> 00:02:24,120 Speaker 1: the overriding distraction from this message of unity of the 40 00:02:24,160 --> 00:02:28,040 Speaker 1: Democrats would like to project. We've had very extraordinary scenes 41 00:02:28,120 --> 00:02:31,560 Speaker 1: this morning, first with h speaking up front of her 42 00:02:31,600 --> 00:02:35,080 Speaker 1: constituents and actually you know, booing, chanting, And then we 43 00:02:35,120 --> 00:02:39,280 Speaker 1: had Bernie Sanders, Hilly Clinton's rival, also getting booed when 44 00:02:39,320 --> 00:02:42,440 Speaker 1: he suggested his supportership now turning their attention to voting 45 00:02:42,480 --> 00:02:44,880 Speaker 1: for Hillary Clinton and defeating Donald Trump. But yes, if 46 00:02:44,880 --> 00:02:47,680 Speaker 1: we thought Cleveland was a hot mess, Philadelphia is competing 47 00:02:47,800 --> 00:02:49,760 Speaker 1: right there up with it now, Maigan, And wonder if 48 00:02:49,760 --> 00:02:53,240 Speaker 1: you could describe what happened at this delicate breakfast in 49 00:02:53,320 --> 00:02:59,639 Speaker 1: Philadelphia with the Florida Democratic delegation and the congresswoman from Florida, 50 00:03:00,240 --> 00:03:04,320 Speaker 1: Wie Wasserman Schultz. So what happened was she had taken 51 00:03:04,360 --> 00:03:07,240 Speaker 1: to the floor to address her delegates and it broke 52 00:03:07,320 --> 00:03:11,160 Speaker 1: out into a series of both pro um washerman shild 53 00:03:11,800 --> 00:03:14,880 Speaker 1: chanting and against her and people saying she had to go. 54 00:03:15,120 --> 00:03:17,520 Speaker 1: And and that's what we saw, you know, it really visible. 55 00:03:17,600 --> 00:03:20,000 Speaker 1: But the Bernie standers addressed as well as to his 56 00:03:20,040 --> 00:03:23,959 Speaker 1: own supporters was equally stunning in that there's clearly many 57 00:03:24,000 --> 00:03:28,240 Speaker 1: of his delegates who were just unwilling to transfer their intense, 58 00:03:28,360 --> 00:03:31,640 Speaker 1: you know, following behind him to Hillary Clinton. Now, to 59 00:03:31,720 --> 00:03:34,880 Speaker 1: be fair, that doesn't necessarily represent the majority of the 60 00:03:34,880 --> 00:03:38,400 Speaker 1: Democratic Party or even you know, a large minority of 61 00:03:38,400 --> 00:03:40,560 Speaker 1: the Democratic Party. It's it's it's a base, it's the 62 00:03:40,600 --> 00:03:43,520 Speaker 1: Bernie supporters, it's his hardcore followers. But it's still just 63 00:03:43,600 --> 00:03:47,000 Speaker 1: shows we still have a very fractured party heading into tonight, 64 00:03:47,040 --> 00:03:49,520 Speaker 1: which is supposed to be all about, you know, drawing 65 00:03:49,600 --> 00:03:52,800 Speaker 1: a sharp contrast with the Republican message of gloom and doom. 66 00:03:52,840 --> 00:03:54,520 Speaker 1: They really wanted to put a positive spin on this, 67 00:03:54,720 --> 00:03:57,520 Speaker 1: a message of optimism, and they're having trouble getting out 68 00:03:57,560 --> 00:03:59,480 Speaker 1: of the gate. Well. Of course, what really seemed to 69 00:03:59,520 --> 00:04:05,920 Speaker 1: seal uh, Debbie Washerman Schultz's fate was the release of 70 00:04:06,160 --> 00:04:10,880 Speaker 1: nearly twenty thou DNC emails by wiki leagues on Friday. 71 00:04:10,920 --> 00:04:13,920 Speaker 1: It showed pretty blatantly that party leadership was leaning in 72 00:04:13,960 --> 00:04:20,520 Speaker 1: support of Hillary Clinton's presidential campaign during the Democratic primary. Now, 73 00:04:20,760 --> 00:04:23,240 Speaker 1: Bernie Sanders had complained about this for a long time. 74 00:04:23,279 --> 00:04:25,920 Speaker 1: A lot of people brushed it off. Is there anything 75 00:04:26,360 --> 00:04:28,680 Speaker 1: new you can tell us about the source of that 76 00:04:28,760 --> 00:04:31,000 Speaker 1: league about what people in the party are saying about 77 00:04:31,040 --> 00:04:35,479 Speaker 1: we this is politics. You know what enemy of Debbie 78 00:04:35,520 --> 00:04:39,000 Speaker 1: Washerman Schultz could have been involved. I mean, look, this 79 00:04:39,040 --> 00:04:42,200 Speaker 1: is the subject that's dominating the convention. But in terms 80 00:04:42,200 --> 00:04:45,000 Speaker 1: of the actual source of that league, obviously there's a 81 00:04:45,040 --> 00:04:48,880 Speaker 1: tremendous amount of speculation about Russian hackers, people associated with 82 00:04:49,120 --> 00:04:52,560 Speaker 1: people supporting Donald Trump, sort of in the cyber world, 83 00:04:52,600 --> 00:04:55,159 Speaker 1: that this is intentionally happen and then released at a 84 00:04:55,200 --> 00:04:58,479 Speaker 1: moment that would have like maximum possible damage. That is 85 00:04:58,720 --> 00:05:01,080 Speaker 1: the speculation. The FBI I announced the days they would 86 00:05:01,120 --> 00:05:03,919 Speaker 1: investigate the hack. It's the White House is also looking 87 00:05:03,920 --> 00:05:05,920 Speaker 1: into it. And and look, I think but I think 88 00:05:05,920 --> 00:05:08,840 Speaker 1: it's a core feeling is people shouldn't write stupid things 89 00:05:08,839 --> 00:05:10,919 Speaker 1: and emails. I'm sure if you went back through the 90 00:05:11,120 --> 00:05:14,160 Speaker 1: r nteering as a candidates, I mean, Hillary Clinton has 91 00:05:14,200 --> 00:05:16,640 Speaker 1: had our own trouble with her own emails, and what 92 00:05:16,880 --> 00:05:19,039 Speaker 1: was revealed in those emails, as you said, was just 93 00:05:19,360 --> 00:05:22,360 Speaker 1: very overt biased towards the Sanders campaign as something they 94 00:05:22,400 --> 00:05:25,240 Speaker 1: had longed respected, as something they had long complained about, 95 00:05:25,279 --> 00:05:28,040 Speaker 1: agitated against. And there it was in in black and 96 00:05:28,120 --> 00:05:30,560 Speaker 1: white or in you know, text on the screen um 97 00:05:30,600 --> 00:05:33,920 Speaker 1: for everyone to see. And you know, his supporters feel jipped, 98 00:05:34,120 --> 00:05:36,440 Speaker 1: and they feel like it was rigged, and and there's 99 00:05:36,480 --> 00:05:38,840 Speaker 1: no question that they have ground to believe that given 100 00:05:38,880 --> 00:05:41,080 Speaker 1: what we saw on some of those emails tell us 101 00:05:41,120 --> 00:05:44,960 Speaker 1: what we can expect from today's opening of the Democratic 102 00:05:45,040 --> 00:05:48,680 Speaker 1: National Convention. So tonight we have a pretty mor key 103 00:05:48,720 --> 00:05:50,960 Speaker 1: lineup as of every night we're going to have this week. 104 00:05:51,000 --> 00:05:54,680 Speaker 1: We have Michelle Obama, we have Elizabeth Warren speaking. Both 105 00:05:54,680 --> 00:05:58,000 Speaker 1: of those speeches will be really closely watched to see, 106 00:05:58,120 --> 00:06:00,640 Speaker 1: you know, what they say in particularly Miss l Obama 107 00:06:00,680 --> 00:06:03,240 Speaker 1: in terms of what he brings to the floor and 108 00:06:03,320 --> 00:06:05,400 Speaker 1: sort of how they're really going to look to her 109 00:06:05,560 --> 00:06:08,239 Speaker 1: to energize it, and and and and sort of bring 110 00:06:08,279 --> 00:06:10,640 Speaker 1: back the nostalgia of the best of the Obama years. 111 00:06:10,680 --> 00:06:13,120 Speaker 1: And then of course we also have Bernie Sanders themselves, 112 00:06:13,160 --> 00:06:16,279 Speaker 1: and I think there are still people who are somewhat 113 00:06:16,320 --> 00:06:18,880 Speaker 1: a little bit nervous about what he is actually going 114 00:06:18,920 --> 00:06:21,479 Speaker 1: to stay now. In his endorsement of Hilly Clinton, he 115 00:06:21,560 --> 00:06:23,960 Speaker 1: was very eloquent, he was very firm with his support. 116 00:06:24,040 --> 00:06:27,360 Speaker 1: He was you know, very gracious in that actual endorsement, 117 00:06:27,400 --> 00:06:29,039 Speaker 1: But it took them a long time to get there. 118 00:06:29,240 --> 00:06:30,920 Speaker 1: He's got a lot of supporters who are going to 119 00:06:30,960 --> 00:06:33,200 Speaker 1: be in that hall tonight, and whether or not he's 120 00:06:33,200 --> 00:06:35,520 Speaker 1: going to be as both rodd in his support is 121 00:06:35,560 --> 00:06:37,279 Speaker 1: what everyone's going to be watching. Of course, one of 122 00:06:37,279 --> 00:06:40,000 Speaker 1: the pieces of tape, piece of video and running on 123 00:06:40,040 --> 00:06:45,320 Speaker 1: Bloomberg Television today shows him saying quite adamantly, we must 124 00:06:45,320 --> 00:06:50,039 Speaker 1: elect Hillary Clinton. And we can understand that for many Democrats, 125 00:06:50,279 --> 00:06:53,760 Speaker 1: whatever you may feel or think about Hilly Clinton, how 126 00:06:53,760 --> 00:06:58,320 Speaker 1: she got the nomination, you know, and ardent Democrat is 127 00:06:58,320 --> 00:07:01,320 Speaker 1: going to do everything they can to not have Donald 128 00:07:01,360 --> 00:07:03,800 Speaker 1: Trump occupy that seat in the White House. You know. 129 00:07:03,880 --> 00:07:06,200 Speaker 1: The issues here though, is that in so many ways 130 00:07:06,240 --> 00:07:08,479 Speaker 1: this has been one of the true phenomenons of the 131 00:07:08,880 --> 00:07:12,280 Speaker 1: sixteen cycle, which is that in some cases Bernie supporters 132 00:07:12,280 --> 00:07:15,320 Speaker 1: are actually more aligned with some and I emphasize the 133 00:07:15,400 --> 00:07:19,240 Speaker 1: statements some of the principles backed by Donald Trump. You know, 134 00:07:19,600 --> 00:07:22,880 Speaker 1: whether it's anti free trade deal, is it's this economic insecurity, 135 00:07:22,880 --> 00:07:26,640 Speaker 1: it's bringing um wage listing wages among the white working class, 136 00:07:26,920 --> 00:07:29,960 Speaker 1: addressing sort of inequality. These are themes that actually Donald 137 00:07:30,000 --> 00:07:32,040 Speaker 1: Trump talks a lot about as well. And people have 138 00:07:32,080 --> 00:07:35,080 Speaker 1: always Jonald Trump has been quite overt about saying, I 139 00:07:35,120 --> 00:07:38,120 Speaker 1: am targeting Bernie voters in those Russbolt swing states that 140 00:07:38,120 --> 00:07:40,720 Speaker 1: are going to make the difference, the Ohio, the Pennsylvania's, 141 00:07:40,960 --> 00:07:43,680 Speaker 1: even in Michigan's. You know, going through those states they're 142 00:07:43,720 --> 00:07:47,360 Speaker 1: actually have they have crossover effects. So what Hillary Clinton's 143 00:07:47,400 --> 00:07:50,240 Speaker 1: people really are focused on is how do we get 144 00:07:50,280 --> 00:07:53,000 Speaker 1: them on our side, first of all from up sure 145 00:07:53,080 --> 00:07:56,760 Speaker 1: optics optics perspective this week, but also from getting the 146 00:07:56,960 --> 00:07:59,880 Speaker 1: enthusiasm and the momentum behind her. It is something she's 147 00:08:00,000 --> 00:08:02,360 Speaker 1: as it was throughout the campaign. She just hasn't had 148 00:08:02,360 --> 00:08:05,520 Speaker 1: the enthusiasm that he has had, and that's what they're 149 00:08:05,560 --> 00:08:08,440 Speaker 1: really focused on. They don't believe they necessarily need all 150 00:08:08,440 --> 00:08:11,280 Speaker 1: those voters given the demographic advantage they have, but they 151 00:08:11,400 --> 00:08:14,720 Speaker 1: certainly want to build a groundshel enthusiasm coming out of convention. 152 00:08:14,760 --> 00:08:16,800 Speaker 1: And look, look at the polls this morning that we've 153 00:08:16,800 --> 00:08:19,360 Speaker 1: had and Donald Trump is up five points in one 154 00:08:19,360 --> 00:08:21,880 Speaker 1: of the poles that this morning, so they know there 155 00:08:21,960 --> 00:08:25,640 Speaker 1: is really everything to play for this week. Terry mccauliffe, 156 00:08:25,640 --> 00:08:29,840 Speaker 1: who is the governor of Virginia former Democratic National Committee chair, 157 00:08:30,560 --> 00:08:33,880 Speaker 1: said that, well, there's no evidence that anything was done 158 00:08:33,880 --> 00:08:36,640 Speaker 1: that affected the actual nominating process of going back to 159 00:08:36,960 --> 00:08:39,760 Speaker 1: those emails and the d n C. But he also 160 00:08:39,800 --> 00:08:43,640 Speaker 1: said that people should be fired over this email leak. 161 00:08:44,400 --> 00:08:48,920 Speaker 1: Will that distract from what goes on at the convention. 162 00:08:50,000 --> 00:08:52,000 Speaker 1: I think that this is going to be a little 163 00:08:52,000 --> 00:08:54,920 Speaker 1: bit of a Milani at Shump type moment in the 164 00:08:54,960 --> 00:08:58,199 Speaker 1: sense of we came into that, you know, Cleveland convention 165 00:08:58,280 --> 00:09:00,280 Speaker 1: expecting it to be newsy. We didn't expect this one 166 00:09:00,280 --> 00:09:02,800 Speaker 1: to vias Newsy. But the news cycle is moving so fast. 167 00:09:03,000 --> 00:09:06,240 Speaker 1: So what they're really hoping is, now that Debbie Washman 168 00:09:06,320 --> 00:09:08,800 Speaker 1: ChIL has formally given up her role, they have almost 169 00:09:08,840 --> 00:09:12,440 Speaker 1: a sacrificial lamb to offer up over this scandal and 170 00:09:12,480 --> 00:09:14,520 Speaker 1: people can move on. They can draw a line, and 171 00:09:14,559 --> 00:09:17,079 Speaker 1: they'll try to reset tonight. They've got to lose this Warren, 172 00:09:17,120 --> 00:09:20,000 Speaker 1: you know, a great speaker, Michelle, as we've discussed, but 173 00:09:20,080 --> 00:09:23,080 Speaker 1: they will overhang the rest of the convention. People are 174 00:09:23,080 --> 00:09:24,600 Speaker 1: certainly going to try and make it you know, the 175 00:09:24,600 --> 00:09:26,760 Speaker 1: Republicans are going to try and make it overhang. Some 176 00:09:26,840 --> 00:09:29,600 Speaker 1: of Bernie's supporters are going to continue to agitate about this, 177 00:09:29,880 --> 00:09:31,960 Speaker 1: but I think they will be able to reset more 178 00:09:32,040 --> 00:09:36,679 Speaker 1: because in this crazy cycle. The news cycle just moves 179 00:09:36,720 --> 00:09:40,160 Speaker 1: so fast. What does Hillary Clinton have to do this week? What? 180 00:09:40,160 --> 00:09:42,959 Speaker 1: What is she what? What is her goal? What? What 181 00:09:43,240 --> 00:09:46,200 Speaker 1: would be a win for Hillary Clinton? Last week, Donald 182 00:09:46,240 --> 00:09:50,040 Speaker 1: Trump's challenge was appearing presidential and convincing the American public 183 00:09:50,080 --> 00:09:52,360 Speaker 1: that he actually could hold the job as commander in chief. 184 00:09:52,480 --> 00:09:55,000 Speaker 1: That was his task. That is less of her struggle. 185 00:09:55,280 --> 00:09:59,400 Speaker 1: More many people believe that she can be presidential. That's 186 00:09:59,400 --> 00:10:02,839 Speaker 1: not her issue. Her issue is likability and true humanity. 187 00:10:03,160 --> 00:10:05,320 Speaker 1: The issue with her always is she just is not 188 00:10:05,440 --> 00:10:07,839 Speaker 1: connecting with some of those voters she needs to connect with. 189 00:10:08,160 --> 00:10:10,560 Speaker 1: They still don't know who she is, even after all 190 00:10:10,600 --> 00:10:13,040 Speaker 1: this time in the public life. What she really needs 191 00:10:13,080 --> 00:10:16,040 Speaker 1: to do is inspire people. She's got over the highest 192 00:10:16,080 --> 00:10:18,800 Speaker 1: hurdle of whether or not people think she's she's she 193 00:10:18,880 --> 00:10:20,840 Speaker 1: can do that office. For her, it's an issue of 194 00:10:20,880 --> 00:10:24,840 Speaker 1: winning back voters trust, making them believe that she is 195 00:10:24,880 --> 00:10:27,640 Speaker 1: a person of integrity and honor and can move this 196 00:10:27,679 --> 00:10:30,080 Speaker 1: country forward in the right direction. That's going to be 197 00:10:30,120 --> 00:10:32,400 Speaker 1: her challenge and send her challenge all along. Get those 198 00:10:32,440 --> 00:10:36,160 Speaker 1: favoritabilities up, get more people behind her, and really draw 199 00:10:36,600 --> 00:10:39,960 Speaker 1: the sharpest of sharp contrasts with Donald Trump over issues 200 00:10:40,000 --> 00:10:42,640 Speaker 1: like the plan for the economy, their plan for national 201 00:10:42,679 --> 00:10:46,120 Speaker 1: security present an optimistic vision for America's future, not a 202 00:10:46,120 --> 00:10:50,640 Speaker 1: pessimistic one. Thank you very much. Megan Murphy, Bloomberg's a 203 00:10:50,760 --> 00:10:56,120 Speaker 1: Washington bureau chief, giving us details about the Democratic National Convention, 204 00:10:56,640 --> 00:11:02,840 Speaker 1: which begins today in Philadelphia. Featured speakers include Elizabeth Warren, 205 00:11:03,080 --> 00:11:08,400 Speaker 1: Michelle Obama, and Bernie Sanders. I'm pim Fox, along with 206 00:11:08,520 --> 00:11:11,400 Speaker 1: Kathleen Hayes and this his Bloomberg Radio