On the front lines -- "the new york times" and twitter, targets for shock and all -- shock and by the syrian electronic army.
Trading up -- an exclusive interview with the ceo that will lead the combined company into the future of trading.
You sunk my battleship -- general dynamics and huntington angles have billions on the line when it comes to shipbuilding for uncle sam.
We will take a deep dive into the facilities where designs come under fire before they even leave the dock.
It is wednesday here in new york city.
You are watching "market makers ." i am erik schatzker.
I am stephanie ruhle.
. to be back.
Let's begin with housing.
The data has been mixed.
Pending home sales for july are out and judy -- julie hyman has been in the newsroom.
They are disappointing.
People were wondering between existing home sales and new home sales, what was really going on with housing, and this gives new evidence to pessimists as pending home sales fell 1.3% in july versus .4% the prior month.
We see an accelerating decline.
Economist estimated no change.
This does give evidence to the idea that as consumers see rising rate they are more reluctant to jump into the market, or at the very least, they are uncertain about where rates are going, just as market participants are uncertain about what the fed will do next and when.
Again, a decline of 1.3% in july.
Thank you, julie hyman with the latest on home sales.
The disappointments continue.
Let's move to the top story, a major hacking attack knocked "the new york times" offline and the british version of twitter.
The syrian electronic army is claiming responsibility.
It is raising new concerns about cyber attacks on major american companies in modern war.
We have two experts on the issue.
Tom kellerman serves on the white house commission on cyber security and jim lewis has work that has been read by president obama and he is a senior fellow at the center for strategic and international studies.
Tom kellerman, why are media companies being targeted?
The implicit trust in the u.s. media is allowing for hackers to make a statement against not only the articles being published, but also against u.s. and american viewers of those articles.
Jim, to you, is this the future?
In the years and months ahead, are we watching that if america does something and somebody does not like it, retaliation is against corporate america, not the u.s. government?
The skills to carry out these attacks are spreading around the world, and groups like this year in electronic army do not look like they are at the higher end of the hacker groups, but they have enough to beat out "the new york times." how good do you have to be if you do not have to be that good?
One positive sign out of the event is that they went after the times provider of the domain name, which is an australian company.
That might suggest that after being whacked two or three times, they have improved their defenses.
The problem is the network is big and they could go after customers, suppliers, there are so many opportunities.
You need to appreciate there is a lot of weaponry people can download to leverage these attacks and much of the best is distributed by eastern european hackers and there are sympathetic eastern europeans to the cause of bashar al-assad.
These allow anyone to essentially shoot guns at websites that will.
If it is easy to shoot guns at websites at will, what do american companies need to do about it?
Asked a need to think about their defenses.
-- they need to think about their defenses.
There are some basic things they need to have in place -- due diligence, duty to shareholders -- that is one of the changes you will see in the next 12 months, a better idea of the minimum corporations will have to do for cybersecurity.
We need to recognize and appreciate that publicly traded organizations and large, name brand u.s. organizations reputations are being impacted.
If they impact your database, not only steal intellectual property, but use your website as a watering hole to attack visitors, that is a far greater problem.
Tom kellermann, to your point, we know "the new york times is down" because we cannot go to their site, but what about the things that we do not know?
Google has been attacked before, sony has been attacked, and sometimes it has taken weeks before we found out what has happened.
It takes 200 days typically.
As "the times" rush to bring themselves online, somebody might have gotten in the back room window, and they might now attack their constituency by having cervical articles be polluted, for example, with mall where -- malware.
Some have learned, some have not.
It is just how things are.
You think this will have been the case -- there will have been an attack through the side door while they are trying to clean up the front?
I think so.
I think this is an example of the escalation.
It is stage three of a longer- term campaign and the end result will be to punish americans who certifies with the syrian people and to do that best through cyberspace would be to attack them through the website.
If you look at the attacks on american banks from iran, at least in one case, the noisy, frontal attack was cover for a criminal operation that operated in the background.
These are sophisticated groups.
There are some basic kids doing political things, most of them are pretty good.
Xt why for joining us.
Special thanks to -- thank you for joining us.
Special thanks to tom kellermann and jim lewis.
We come back, move over -- when we come back, move over nasdaq.
I spoke with the ceo of bats and that is coming up next.
The martin luther king "i have a dream" speech is in the history books, but the words are not priceless.
They -- there is a large price tag.
This is "market makers" on bloomberg television.
Welcome back to "market makers pickup i am stuck --"market makers." i am stephanie ruhle.
The drought -- is it a thing of the past?
Or is it.
Weather is hot.
Alix steel has been tricked -- digging into the crops.
Compared to last year, it is a drop in the bucket, but there is something significant in the midwest.
It is a trifecta of weather issues.
I had a lot of rain in the spring.
That delayed the planting season.
It was a cool summer for crops.
Now it is getting too hot.
Soybeans need 87 degrees.
They need cool evenings.
They are not getting that.
They are in a key growing phase.
They are developing those , may -- pods.
Compare it to last year.
Last year was a disaster.
In indiana, it was heartbreaking.
Corn and soybeans were a mess.
The court has pollinated.
That is a good thing.
In the soybean fields, that is where the issue is.
It is trading at a record premium to corn, nine dollars.
They tend to track each other.
We have not seen that.
How likely is it the recent trend will continue, and what are people saying about whether soybean futures will challenge the highest set last year?
Analysts are set to call a bullish market because we still expect a record crop, to put that in perspective.
It has only been a couple of days of the heat wave.
If you look at the southern hemisphere, we are looking at record soybean reduction of 152 million tons next year.
We are not crying for soybeans to meet the man.
However -- and demand.
However, nobody was expecting this.
We are great on the supply side.
What does the demand look like?
China is such a voracious consumer of soybeans, they imported 20% more they did in 2012, but the concern comes in inflation.
Soybeans are also used for industrial select higher diesel.
There is an issue there.
It could also trickle down to talk, poultry and beef producers.
Will this move feed prices up, and will they be in a situation like they were in last year?
This time last, we love to see you on the farm, and we might need you back there.
Thank you, alix steel, with the latest on soybeans.
When we come back, it will be the second biggest equity exchange in the u.s.. we're talking about the merger between b.a.t.s. and direct edge . erik schatzker said down with the ceo exclusively right here on "market makers." we will have that coming up next.
? move over nasdaq --b.a.t.s. is merging with direct edge to become america's second largest stock market.
Ceo joe ratterman said down with me for an exclusive you will see only here on "market makers." direct edge had been exploring a merger for years but they could not pull the trigger.
I asked joe what changed.
This time it had a lot to do with the final configurations and what was important to us was to have the shareholders behind direct edge behind the combined effort.
In the past, there was not as much discussion about how they would join around the table, and this time it is how they wanted to go, so we were able to join goldman, said adel and knight along with existing shareholders.
Some say you are reducing competition.
How is that good for the market?
We do not think it is reducing competition by any stretch.
These are innovative firms focused on customers, and the larger scale will help us compete more than we have in the past.
We believe this is a competitive play that will accrue to our customers.
I can see how it is good for you, but how is a good for your customers?
Scale will be passed onto customers customers.
We are already efficient, but when we are together, will be more efficient in terms of pricing, innovation and focus.
With a 20% market share, what can you do that you were not able to do as an independent company?
The size we were independently, the market data offering did not have the
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