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00:00SAY YOU NEED THEM IN CERTAIN KINDS OF CRIMINAL CASES AND TERRORIST THREATS? DOES THAT ARGUMENT RESONATE WITH YOU THAT COMES FROM SILICON VALLEY? BEN: I THINK ANYBODY IS POTENTIALLY VULNERABLE. I THINK WE HAVE TO DO IT BETTER JOB. THE SNOWDEN DISCLOSURES ALONE DEMONSTRATED VULNERABILITIES IN OUR OWN SYSTEMS. I WAS SKEPTICAL ABOUT THE ENCRYPTION DEBATE FOR DIFFERENT REASONS. IF ESSENTIALLY IT IS KNOWN WORLDWIDE THAT THE U.S. GOVERNMENT HAS A TYPE OF BLANKET CAPABILITY TO BREAK ENCRYPTION OF ALL THESE DIFFERENT TECHNOLOGIES, I THINK THAT DISADVANTAGES U.S. BUSINESSES. FRANKLY, IT WILL ATTRACT PEOPLE TO OTHER TECHNOLOGIES THAT ARE ENCRYPTED THAT ARE DEVELOPED ELSEWHERE. BETTER TO DO IT THROUGH THE RULE OF LAW AND THE TYPE OF PROCESS AMERICANS ARE FAMILIAR WITH WHERE YOU SEEK ACCESS TO SOMETHING AND WORK WITH THE LEGAL SYSTEM TO GET IT. I THINK THAT'S AT THE HEART OF THE ENCRYPTION DEBATE. CHARLIE: ONE LAST QUESTION. HOW FAR AHEAD IS THE UNITED STATES AND THE WORLD OF CYBER SPACE? DAVID: WE ARE AHEAD IN OFFENSIVE CAPABILITY. JUST THINK OF WHAT WE HAVE REPORTED IN THE PAST COUPLE YEARS OR WHAT THE U.S. GOVERNMENT HAS ADMITTED TO. THERE WERE THE OLYMPIC GAMES ATTACKS ON IRAN, KOREA. ASH CARTER WHEN SECRETARY OF DEFENSE TALKED OPENLY ABOUT USING CYBER AGAINST ISIS. WE THINK THERE HAVE BEEN OTHER CASES. AS BEN POINTS OUTCOME OF THE NUCLEAR EXAMPLE TELLS YOU THAT LEAD DOESN'T STAY FOR VERY LONG. WE EXPLODED THE BOMB THE FIRST TIME IN A ROW SHEMA AND NAGASAKI IN 1945. AND THE SOVIETS HAD THE WEAPONS BY 1949. THE AMAZING THING IS, THERE ARE ONLY NINE IN NUCLEAR POWERS TODAY. IN CYBER, IT IS MUCH MORE COMPRESSED. THE OTHER THING WE LEARNED IS THAT THE COST OF ENTRY IS SO LOW THAT POOR POWERS CAN DEVELOP THESE. THE SONY ATTACK WAS DONE BY NORTH KOREA. IF I WAS THE NORTH KOREANS LOOKING AT THE FLOTILLA OFF OF MY COAST AND THE AMERICAN OVERWHELMING PRESENCE, MILITARY PRESENCE IN ASIA, I WOULD BE THINKING THAT CYBERATTACKS ON THE UNITED STATES WOULD PROBABLY BE THE MOST THREATENING.

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2 Billionaires Yet to Approve Flipkart, Snapdeal Pact

Flipkart Online Services is nearing a final agreement to acquire rival e-commerce provider Snapdeal after winning support from the startup's three primary venture investors. Bloomberg's Peter Elstrom reports on "Bloomberg Markets." (Source: Bloomberg)

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