that's for sure. i know i'll see her again someday. that's what keeps me going. [music playing] ♪ you are still watching "squawk box. a major cyber outage impacts users around the world as crowdstrike rushes to rollback a software update. global airlines ground flights and european airports report they're affected too. and the down detecter showing useable ports where

people are impacted. and the concerns to global output after more selling on wall street and in asia. ♪ major global outages impacting companies across the world. nbc has confirmed an update issued by cybersecurity firm crowdstrike has caused the outage the company is in process of rolling back the update. according to user reports, the list of global companies include microsoft, advivisa and a numbef airline groups and amazon web services and phone services of g-mail and banking microsoft has a service outage for 365 suite causing turmoil for users around the world in a statement, it said its

services are seeing improvements and taking mitigation action the london stock exchange is experiencing a global issues and it does say the stock exchange will operate as normal arjun is with us we thought it was just us, internal services with an issue, but a lot of sectors are having problems some have safety issues. there are security implications and operational issues >> we understand that crowdstrike, a major cybersecurity firm, attempted to rollout an update this morning here across the world. they are seeing an issue with the update which is causing, perhaps, many of us around the world to see on the laptops, the so-called blue screen of death on the laptop. now crowdstrike is trying to roll that update back in order to mitigate the effects of this. it has caused outages across the

world. banks and airlines and broadcasters affected by the safety issues as you mentioned given there are airplanes in the air. many airlines have said they have comms with the airplanes. we are expecting major delays across airports affected by team t people taking off and checking in it is something i have not seen before it is unprecedented and huge it shows the reliance for the software. >> let's show the crowdstrike which at the epicenter of the tech that we are seeing today. what sort of negligencative att does this bring to crowdstrike and what answers once we get past this? >> we will have a big postmortem on this. why is this software update allowed? this update has impact anned

windows and that's where a lot of the issues lie. we often, as users of the systems, might not know what is running in the back end of the system, but we know that something has affected windows at this point because we're seeing it on our laptops imagine you are wasorking at th airport or bank and your pc crashes. you don't know what is happening in the background. that issue is something that has happened in the back end that is directly affecting the front end. crowdstrike will have a lot of questions to answer about this why it was allowed to roll the update out and why wasn't it perfect? why has it taken so long where minutes in the business world is cri critical we have no indication as of yet that the systems are up and running again normally so, there's a lot of questions for crowdstrike to answer and i think it will bring attention from investors today when the markets open in the u.s. and

focus on the competitors. >> a ton of ramifications here microsoft as well has issues with its suite of products microsoft is the forefront of the a.i. story convincing us to trust them even more to give them more information to go into the cloud to maximize a.i. services in the future it puts questions over how much trust we put in the technology services. >> when businesses are considering investment in a.i. and cloud products where the whole trend is we have to move processes on to the cloud to have, you know, a more up to date and futuristic business, but also to take advantage of the brand new a.i. applications. i wonder if this gives business leaders a moment to pause. we were going head-first in a.i. and cloud, but actually there are risks associated >> we are not hearing it is a cybersecurity problem as such,

but there are cybersecurity implications here. what we have is a wake-up call of how inner connected software is and google parental alphabetn an 3bid to by wizz. >> there are in the market these cyclical trends that the investors want to play into the a.i. and migration to cloud and cybersecurity which there are many analysts saying these are the big area where is we are expecting growth in the next few years as more and more businesses go online and go to the cloud, they need protection in the cloud which is cybersecurity. at the same time, you look at crowdstrike and you can see those cybersecurity firms may have certain vul nerabilitivuln, not from cyberattacks, but questions around that.

>> arjun, we are watching the cloud and the skies. the federal aviation administration has issued a statement saying united airline, delta and american airline ans have issued a ground stop due to communications issues. phil lebeau is live with us. phil, run us through the latest here >> reporter: two things. one is that we talked with both american and united airlines both have said, yes, they are in a ground stop right now. they are trying to pinpoint exactly what happened in terms of the software outage and how long it will take to correct that and whether or not we will get an update, let's say n the next 30 minutes or the next hour remember, once you get to 10:00 a.m. central european time and 5:00 a.m. on the east coast, that is the next wave of flights of the east coast of the united states still unclear if we see the ground stop lifted at that time. this is global in nature we heard reports of australia

with impacts there ryanair on social media saying if you have a flight today, show up at least three hours ahead of time and be prepared to check-in at the airport because you cannot check-in due to the software outage on your mobile phone. this is what we're seeing the industry trying to work its way through. for the flights that are already in air, we should point that that the airlines have communications with those flights. they have been able to do a work around those flights will continue as planned. it's simply those that are scheduled to take off. for the big three u.s. care cars united, delta and american, the ground stop is in effect for at least a half hour or 45 minutes continuing from here we will see if we get some kind of an update from them that they are confident they have resolved the issue. >> phil, we have been debating on the set the idea of

resilience in the tech world you see more and more reliance on the technology when it comes to checking in and digital boarding passes and you go to drop your bags off, areyou are doing it yourself with the computer fewer and fewer people interactions that means there are not an army of people to manage the relations today if there is a problem with the software. >> reporter: correct when you have one part of that system goes down, it will impact the entire system. whether or not that is software for checking passengers in at an airport, once that goes down, that's the domino effect from there. it starts to impact everything, including flights that are scheduled to take off. the prudent thing to do, which is what the airlines did, they went to the faa and said we want a global ground stop if there is any good news in this is delta and united and america, it happened in the middle of the night for the bulk

of the flights in the united states have they impacted the issue and do they feel it is confident it is resolved and they are okay to lift the ground stop, please. >> thank you for checking in with us, phil lebeau we are focused on europe some of the early plflights were looking to takeoff this was a busy day from the uk lens where schools are wrapped up and holidays begin. ryanair and wiz air are all reporting issueses in spain, the operator said all spanish airports are impacted. to the netherlands, they have been experiencing issues silvia is keeping track of what is the moving pieces this morning. it looks like delays are inevitable, but what about the safetyissue you first and foremost >> we heard from klm

they said for now they are forced to suspend most of the operation. to answer your question, this is behind concerns of safety here as we are experiencing this global outage. klm said airlines and airports are being affected by this global computer outage like i said earlier, they are saying as well that it's impossible to handle flights for the time being as a result, they are forced to suspend most of the operation. this is from klm in the last couple of minutes here really. to give you some more context, we did hear earlier this morning, excuse me, from ryanair, suggesting that passengers should allow for more time at the airport exactly because of the issues. ultimately, though, we don't know whether passengers will be able to get on these flights as well so, if you have plans to travel today, allow for more time to get to the airport exactly

because of these issues. on top of that, make sure you check the communications from the airline you are supposed to travel with because several airlines are coming out with different messages at this point. so far, we are only hearing from klm in terms of grounding their operation thus far also worth looking at airports and which airport you are traveling to or from at this stage here in london, gatwick with delays on average of 28 minutes. stensted with an average of 35 minutes. all in all, an issue of passengers not able to check-in online airlines suggesting they are having issues managing the bookings as well ultimately, with question marks, whether passengers will be able to get on these flights and reach their destinations a brief look at what we're seeing in the stock market at this stage for some of the

airlines lufthansa down 2%. airline france and klm down 2.3% easyjet is a company we reached out to early this morning. we haven't heard from hthem as f yet. down 1%. we are seeing significant amounts of pressure on airlines as we try to put together what this all means also for this sector in particular the safety of passengers, too. >> at one point, 1.6 million seats this weekend that is the amount of volume we're talking about over what is one of the busiest weekends of travel so far this year for the uk the good news is you can get to the airport because we have been checking on the travel services there and rail services. they seem to be working. maybe not the taxi services. our guest earlier had issues with the taxi services. >> absolutely. >> even getting to the airport at this stage is worth checking before you leave your house and how you get to the airport

we are not seeing significant issues there, but also worth checking, naturally. >> arjun, you want to bring us up to date on crowdstrike? you have been watching the pre-market action >> it is pretty heavy in the u.s. down 14% in the pre-market on the news because of the issues that been caused as well. it is interesting to see how the sector fares broadly today the cybersecurity sector across the u.s. with big names over there as well. microsoft is down just around 2% at this point. i think there was an earlier issue late thursday night when microsoft's cloud services, but that is a separate issue that doesn't appear to be linked with crowdstrike however, some issues users are using on the pcs and laptops with the blue screen is related to crowdstrike you are also seeing some other cybersecurity names moving as

well. >> just to put this in context, that 14% move lower in after hours trade in the context of stock that would be in the a.i. trade. up 117% over the past year and up 39% so far year to date looking to give a chunk of that to the market with the issues. the banks and payment companies have been having problems charlotte, very few of us carry cash what does it mean for the banks? >> we reached out to the banks to see how they are impacted by the outage we looked at down detector to look at what is affected santander and barclays and net wear is showing outages. mastercard and visa as well with out acknowledgeacknowledge outas

it looks like the staff is coming to the desks and having problems accessing the systems we reached out to other european banks. at the moment, no reports of impact on payments it looks like its web sites and internal systems staff having difficulties reaching systems internally. we bring you the latest when we get comments from the banks and the impact on the outage. >> thank you very much for that, charlotte. i want to take you to the media stocks we had an issue which we thought was ours, but it was not to get to the video content and playing tape and the live breaking news on wires is not coming through the audio queue went down at one

point. logging on and getting past the blue screen. in the meantime, it is not just us, media and users groups impacted by the outage dan is joining us with more. dan, we do get a lot of information from wire services that really relays so much information around the globe and gives us the main breaking stories and ap has had disruption today, too. >> reporter: absolutely, karen look, everyone should know that media and technology are intrinsically linked without that, it is almost impossible to do their job karen, you have been doing an excellent job walking viewers through the impactoutage i wanted to give you insights of the impact in the middle east as well i've just spoken with the representative from emirates airlines this is critical

emirates is the world's largest long-haul carrier. the person on the phone told me it is an evolving situation. the airline is aware of the outage and monitoring the impact across the global network, but has nothing to add at this point. emirates, the long-haul carrier operates out of dubai airport. 23 million people passing through that airport in q1 alone. it is one of the busiest weekends for the summer travel season of the year i've reached out to dubai airport asking for a comment as well they yet to issue a response meanwhile, i've spoken to a representative at turkish airways. d due to a global technical issue, we are experiencing problems with ticketing and reservation processing our team is working diligently to resolve the issue as soon as possible karen, with regards to some of

the other media outages that we see right now, sky news in the uk has been on air and off air through the course of the morning. at one point, if you turn on sky news, you see a quote we apologize for the disruption of the broadcast. the sky news executive chairman tweeting sky news have not been able to broadcast live tv this morning. they are currently telling viewers they apologize for the disruption much of the news report is available online and we are working hard to restore all services that gives you insight into the challenges of reporting exactly what's going on right now. clearly, key nesky news featurig disruption here and others around the world feeling the impact i want to talk about australia a lot of the news flow of the outage was coming from down

under. we are cigusignificant disruptin the abc and sky australia also confirming they are having broadcast difficulties sbs, channel 7, channel 9 and news corp australia are the largest media organizations on the continent with significant disruption the national security coordinator is now involved saying there is no information to suggest this outage is a cybersecurity incident that is an angle we are continuing to follow the australian banks, nab west pac and common wealth and sun corp confirming they are impacted by this outage. we'll tell you more as it comes to hand. >> dan, thank you so much for that it is just significant key services are down when you need to communicate to what is happening to people impacted by an outage and see the broadcast as many are taken off line thank you for the update, dan. it really is about teams today,

the old fashion version, not through the technology platform. we will rely on each other today. silvia, bring us up to speed on markets. we are watching closely, but it is very nuance with the market is taking this in its stride today. >> exactly we have been mentioning how banks and how airlines and media stocks have been impacted this morning. let's get a check on the overall picture for european equities at this stage as you can see in the wall behind me, it is mostly red across the board we have the stoxx 600 at this stage down by .7%. the benchmark here in europe is on track to end the week lower by about almost 2% before equities opened here in europe at this stage, the sentiment we are seeing so far this morning is fuelling that negative performance for the week before we were dealing with these reports on the outage from crowdstrike, also the context here is related to that selloff

from tech with investors looking now at smaller and medium caps, too. let me show you how european bourses are trading as well to get a picture whatis what is happening across the continent at this stage, all of the bourses trading in negative territory. we are seeing more pronounced moves to the down side in germany with the dax down .10% similar in france with the cac 40 by about .7%. what we are seeing here is also in relation to this cyber -- to the crowdstrike outage i want to dive into the sector so you get a bit of a communication of what we are seeing in this sector performances so far into today's session. the worst performer at this stage is travel and leisure down by 2.6%.

we have been discussing how some of those airline names have been impacted so far by the outage. for instance, with ryanair and klm and air france coming out with the statements highlighting how their operations are impacted at this stage let's not forget klm actually said they are not flying some planes today exactly because it is impossible for them to manage that for the time being. we know that overall, though, there's a broader concerns when it comes to the airlines not just about the safety of the passengers, but also with the day-to-day work like checking in and managing bookings overall. let me show you how u.s. futures are shaping up as well whether this is likely to have ramification on wall street, too. at this stage, wall street will open in the red. so, we are seeing a different mood here in terms of what we had in u.s. futures earlier today. we are likely to hear from two

fed officials today as well. that's another important market development. on top of that, the u.s. political scene still very, very competitive at this stage. we heard from donald trump earlier as well and, of course, a lot of pressure on joe biden with some reports suggesting he might not survive the presidential campaign beyond this weekend for now, back to you, karen. >> this is an extremely fluid situation. i hope we get answers over what is going on. nick frances is joining us now you eliminate out amgsoutage how does something like this happen what are we dealing with >> hi, karen it is difficult to see what is exactly happening. this is a perfect storm with microsoft's cloud services last night and now the crowdstrike

security software. many use it and store it on their machines across the nation when it has an update, it causes a problem when people reboot and people want use the computers. it is locking everybody out. i heard airlines and payment systems are simply not working with safety and they can't get into their machines to do the work. >> good morning. just a quick one from me just layout to many of viewers simply what does crowdstrike do how integral is it to global businesses at this point >> i think it is very integral t. integral it is an end-point user. there are lots of security threats. you need something that is complicated and advanced security system now given all the threats we face as users of the internet and connected organizations. it sits on every single desktop

and laptop and server and device and prevents malware running and prevent viruses and keeping the organization safe. it certainly is one of the better pieces of software to do that there are millions of customers and perhaps, tens if not millions of customers running this software. >> what we heard from crowdstrike so far is it is trying to rollback the update. how hard is it to do something like that and how long does it take >> i think it depends on the nature of the bug and what's causing it here. hopefully it is something to be done with a simple update that causes machines to restart and go back to northmal. the worst case is to have people physically touch the machines and do manually. hopefully they can roll this out remotely >> any idea about the link between overnight what we heard from microsoft and the outages

around azure and their cloud software and this morning regarding crowd ststrike and the issues with its update one of the things that the crowdstrike problem has caused we have seen here is the so-called blue screen of death on the laptops that error screen on windows-based laptops. can you give us a sense of the links between the two companies and anything you can glean at this point >> sure. i think it is difficult to say at the moment if they are linked we may not find out for days, weeks or longer. microsoft may use crowdstrike. it does seem a little bit interesting these two issues happening at the same time attribution and determining the root cause of the issues is something to take a long time. people forget these systems we are talking about is complex millions of lines of code for software or millions of lines of

service. i'm finding out if something goes long takes time and a lot of investigation >> nick, we do appreciate your expertise. nick france, cto of setigo. coming up, more on the outage affecting global markets. we'll be back with you after this short break we'll be back with you after this short break we'll be back with you after this short break we'll be back with you after this short b thiswhat is recirkul? cirkul is what you hope for when life tosses lemons your way. cirkul is your frosted treat with a sweet kick of confidence. cirkul is the effortless energy that gets you in the zone. cirkul, available at walmart and drinkcirkul.com.

a major global outage impacting millions around the world. crowdstrike shares plunge as they go to rollback a software update and microsoft with the 365 suite reels from the disruption. and the broader equity markets. u.s. futures dip adding to the losses we're seeing in early european trade ♪

we are trying to keep you up to speed with the fast moving events the london stock exchange is experiencing a global issue from views being published. some trading has been impacted in the meantime, deutsche bank said trading started normally at the open, but it was making further checks and unx said the outage is not affecting its trading venues so, it is scattered in terms of the impact and what this is doing for the stock trade at the open let's get to charlotte for more. >> you are saying how this outage has impacted the different stock exchanges. lseg says the work space and news and data platform is suffering so users cannot access this at the moment they mentioned this outage means the company updates were not published to market through its regulatory news service. that is where it is impacting. we saw a late opening, but the lse, the london stock exchange

is continuing to run as normal this morning when it comes to the german market, the dax trading started normally it is making further checks on i.t. overall and unx which operating paris, berlin and amsterdam and lisbon, they are aware of the current outage and not impacting trading across their venues. they are closely monitoring the situation there. it looks like lseg, work space, news and data, but trading is operating nowhermally >> charlotte, thank you for walking us through the european bourses. the uk government is not treating the global outage as a global security issue. we are hearing that from a number of different sources pushing back this is not a cybersecurity related issue. what we also heard from

crowdstrike, a major global cyber outage, impacting global issues around the world. nbc reported that crowdstrike caused this outage and the company is in the process of rolling back that update according to web site down defect or. the companies impacted are microsoft, visa and a number of airline groups amazon web services and g-mail and banking companies. microsoft has completed mitigation efforts to address the configuration change within the azure service which contribute d to the incident. ar arjun, we are looking at the news. >> crowdstrike is down there around 13% a huge drop there. one of the fascinating things is crowdstrike is one of the winners in the cyberspace stocks over in the u.s. it is up around 117% over the

last 12 months now, if you compare that to palo a alto, it is up 31% on the year a company like fortinet, down 26%. if you look at these, they are getting a bid up with the view of the issue with crowdstrike and it continues for longer and they begin to lose customers or the trust in that company has dented, you may see businesses look elsewhere to the other cyber firms for some of the services as well that's probably what's driving the pre-market action in the names of palo alto and cloudflare that is quite interesting as well i think the question is how much damage is this going to do to crowdstrike's reputation because som cyber, as we have been told, is critical with more data and more and more information and software systems, cyber needs to be at the heart to protect that.

>> we are talking about names that enterprises are familiar with because they are thinking about security a lot of viewers may not have heard of these names, but such far-reaching implications. it makes you wonder what regulation looks like. you can't necessarily have one player the security implications in you are handing over that information for more and more players to look at it is hard to see how you get around the resilience problems. >> a lot of the cybersecurity players -- cybersecurity is such a complicated part of a business process. it is not just about, for example, you know, the interaction between employee, but all of the things that happen on the back end what you see is companies try to offer what they call end-to-end solutions. we can do everything for you for businesses, that is an easy solution this is great. we can pay you one fee yearly. you do everything and that's everything sorted. perhaps these kind of episodes

do put the point forward and question whether actually do we need more suppliers in our cybersecurity? is it safer than having one or more complicated these are the questions you will see businesses look to grapple with going forward as they think about what their cyber strategy and protection looks like. >> break down the stack rather than bundling it all together is the wtake away message. we have our senior staff engineer with us you are more acknoknowledgeablef what is happening here how significant is this? >> this is affecting companies around the world and on me as i'm in the hospital setting with a loved one and it affected me directly tonight >> i just want to talk about that we are hearing about different

sectors impacted the hospital back drop what is going on where you are >> systems are offline patient records cannot be accessed you can switch to paper systems, but you have to be careful with thedosage. it has a critical impact on the hospitals and airports it is having a profound um impat >> the situation is live what will it take to crowdstrike to rollback that update. what will it take? >> i mean, it is very far reaching and we're still just in the beginnings of this right now. a lot of companies and organizations are trying to deal with the impact of this right now. rolling back the updates is part of it. manual updating as well to rollback the faulty updates which is likely the cause of the issue. it will take time. we have hundreds of thousands of

systems out there. it is a painstaking process. >> could you give us an indication of the scale of crowdstrike and its importance to businesses? what does it do? how engrained is it in the systems cyber response and cybersecurity? >> well, security software in general is very important for organizations across the globe the challenge here is that security software, because it is doing its job to protect organizations, it has to have more privileged access to these machines while people may see these as windows failures and see the blue screen pop up, it is not actually a windows issue, but related to a faulty or bad update to the security software. it needs that requisite access to protect the systems and a bad or faulty update can impact it like this. we have never seen anything like this before. it is very unprecedented. >> when it comes to the aftermath of this, as someone

who is looking at an organization's security and protection, how easy is it then to think about what to do next in terms of do you change providers? do you diversify your supply chain when it comes to cybersecurity software firms would you have more to increase the efficiency what do you do >> we stillare still trying to throughout the initial stage and there is a lot to learn through the incident and it will change the landscape going forward. you know, it is still very early on in this process so, i think right now the goal should be focusing on trying to get the critical systems back online so it is not having an impact in the hospitals and transportation and what not. >> arjun and i were debating

before about the digital first strategy that really embraced the i.t. changes the companies most impacted today. do you want to weigh in on that? if you are more advanced, you have more information in the cloud and more impacted by crowdstrike today. >> i think it is not just affecting crowdstrike, but other infrastructure as well security software is available on systems all across globe. whether it is in the crowd or on premises it will have an impact across multiple or different organizations, institutions. that's why we're seeing a broad impact reports from japan, india, germany, uk, the united states it is a profound impact we are seeing from this event it's still something i think we're just now getting our heads around >> from the corporate perspective, it feels like this has to be a wake-up call of how quickly we have been moving toward an a.i. future. the stock market had been trading on a single theme for

many months now of stretching out valuations what sort of stepback do we need to take here with resilience, not just hallucinations with a.i., but general resilience in technology >> i mean, the thing is from the perspective of technology, companies need to protect their systems. we see it every day. the breaches that get post in the news almost daily. organizations are being impacted by cybersecurity threats and rans ransomware it is still a big problem for organizations. it is still a delicate balance we need to take into consideration. they need the software to protect them those threats can have a pretty big impact to an organization, especially if they get hit with a ransomware attack. >> thank you very much for joining us at this hour. we do hope that things go weapon for you where you are on the ground senior staff research engineer

at tenable silvia let's check on the european equities at this stage because what we are seeing is those declines extending at this stage. we have red across all of the major bourses in europe. we are seeing more pronounced moves to the down side in germany with the dax down .8%. to put it all in context to give you an idea, the stoxx 600 at this stage, is actually on track for the longest losing streak since october. so, we are seeing the stoxx 600 on a negative footing at this stage. we already were expecting that going into today's trading session with the stoxx 600 almost down 2% for the week. today's moves are actually making that even more pronounced let's see what will be the picture by the close, but nonetheless, significant moves to the down side over in european bourses when it comes to fx, this is

what we are looking at this stage. also several factors at play we did hear from the ecb yesterday basically keeping rates unchanged and giving no guidance about when they would cut rates again. with that in mind, euro/dollar with the euro slightly lower against the u.s. briefly looking at the yen, with the weakness in the market we have 157 with the euro/dollar marginally lower when it comes to the treasury market, this is what we are looking at in europe it is worth keeping in mind that we saw the german bund yields dropping to moulti-week lows after the ecb meeting. you look at the benchmark in europe, the yield is 2.42%.

when it comes to the u.s. futures, we are seeing a spillover effect into what we are seeing in europe translating into also some of the action stateside. to give you an idea of the back of this outage, we are seeing microsoft shares down in pre-market as well as crowdstrike shares also significantly lower in pre-market. let's see what we'll have once wall street is actually opened. karen. thank you, silvia. coming up on the show, airlines and airports across the world are grounded as the outage hits e ct hd. i'm andrea, founder of a boutique handbag brand - andi - and this is why i switched to shopify. it's the challenges that we don't expect, like a site going down or the checkout wouldn't work. what's nice about shopify is when i'm with my family, when i'm taking time off, knowing that i have a site up and running and our business is moving forward because we have a platform that we can rely on. that is gold to us. start

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a real challenge if you are a broadcaster today. we have seen outages impacting broad broadcasters. we had issues in terms of accessing systemsand building rundowns and putting live tape out there and market signals and live breaking news and the auto queue. a number of media outlets have been hit. dan is with us. dan, run us through what you are witnessing out there.

>> reporter: karen, any news or media organization that is running a microsoft system has been impacted. we have learned in the last few minutes that sky news in the uk has been able to restore its services. of course, a critical function when it comes to informing the public what's going on. however, they are still experiencing some technical issues, but that broadcaster is back up and running. earlier today, you would have seen a message on screen if you turned on sky news saying we apologize to the disruption to the broadcast. other networks across the uk and europe are experiencing issues and in australia, we have been following the reaction where the impact has been very significant. the broadcasters abc and sky australia also confirming they were having broadcast difficulties as well as sbs, channel 7, channel 9 and news corp australia. these are the largest media organizations on the continent. the national security coo

coordinator saying this is aware of the situation, but nothing to s suggest this is a cybersecurity incident. that is an angle we are pursuing here. i want to update you on the impact across the middle east and what we are seeing from the gulf governments. the uae telecommunications regulation has issued a statement that says it is closely monitoring the situation and telling anyone using a microsoft system to hold off on any updates of any crowdstrike software until we learn more. of course, i've also been hitting the phones and reached out to representatives at emirates, the world's largest long-haul carrier. we are following the impact on the cairline ans here. it has not issued a statement yet. we do not understand fully the impact of these disruption.

of course, this is critical. the world's largest long-haul carrier and operating out of dubai airport. turkish airlines with delays and problems with the ticketing and check-in and reservation process. with will continue to follow the impact here in the media pace where the challenges of broadcasting have been put on full display today, karen. >> dan, thank you for that. from one industry to another, the federal aviation administration issued a statement saying united airlines and delta and american airlines have issued a grouped stop due to the communications issues. let's get to phil lebeau for more. phil, run us through the developments. >> we are waiting to find out whether or not we see movement in potentially lifting this ground stop. we're coming up on 5:00 a.m. eastern time in the united states. this is when the flights accelerate in the ones leaving

domestically in the u.s. there is no indication this ground stop is going to be lifted anytime soon. as a result, how much does this discorruptrupt what the airline dealing with. go to the airport and check-in for the flight and get there three hours ahead of time. having said that, karen, there is no guarantee we will see this lifted anytime soon. as a result, how much of this is a cascading affect with flights starting primarily 5:00 a.m. on the east coast of the united states and you move west, more and more flights. the longer this goes, the greatest thegreater the impact would be. when we talked to american and united, they said the same thing. software irssues with microsoft but they have not gotten to the point where they say let's lift

the ground stop and go to the faa and get back in the air. >> we have heathrow delayed and others on time. thank you for the update. let's get to chris gilmore at axios uk. chris, we are scrambling to work out what this outage means. what are we dealing with right now? >> i feel for microsoft and crowdstrike and these companies do a lot of good and then everyone judges them on the odd chance with a bad day. the fundamentally from what i can see, this is a crowdstrike update and some patch has been released and the sense that is deployed to the end point that manages the end point detection and sense platform seems to be the cause of the problem. the irony is the senses to stop your data from being attack is the element attacking the

system. i said, i really feel for them. it's -- it's symptomatic of how wide spread the use of cloud and cloud platforms has become and it just shows you how integral these tools and platforms are to businesses globaglobally. in the uk, we heard aviation and trains systems have shutdown and there's manufacturing plants which have shutdown. there are all kind of knock-on effects from this. i think if this was a pure microsoft issue, you would see a much wider challenge than we are currently facing. the fact it seems to be the crowdstrike and microsoft combination limits exposure to those deployed environments, but still a real pain for anyone involved. >> any idea at this point how long these issues might take to be resolved as they start to try to roll back this update and get things stabilized?

>> well, crowdstrike released on twitter, they released a work around. it's a limited one from what i can see. it won't work for everybody. they are trying to work out how to resolve this. the patch was rolled back, so that should hopefully trickle down. the challenge is a lot of people would have taken their systems o offline to resolve it thinking it is a centrally based attack. the minute you get the fix, it is back on the net. it's going to take a lot of time for this to unravel and then you will have the inn variable backlog of challenges with the system offline for a couple of hours. the processes in the last couple hours will hit in one go. you will have ongoing challenges for the rest of the day with this, at least, until they can unpick it. yeah, it's not, not an

insignificant challenge. >> thank you. chris with us from axios uk. it depends where you are flying. italy and germany and berlin updating us. some are on time and others delayed. >> if you are traveling today, make sure you check what the airline is saying and the airport you are plenty to fly to and from are saying as well. the message is a bit mixed. it depends where you are traveling to. let's see what we'll have throughout the morning. some of them bringing their planes to a halt today. >> thank you to silvia and charlotte and dan and arjun. stay with us on the channel. plenty of updates. "worldwide exchange" is up next. . ldwide exchange"or ldwiwhat is nge"or cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at

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good morning. welcome to "worldwide exchange." we are following breaking news. a global software outage. airlines and stock exchanges and media companies all grounded to a halt this morning. crowdstrike says a major outage is impacting systems globally. microsoft suffering blackouts. you see the show is different today. nbc universal, our parent company, impacted. we will bring you the latest developments in the story that is impacting millions of people and an untold number of companies globally. microsoft and crowdstrike tell us they are working to