Syrian Electronic Army?: Bloomberg West (08/28)

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Aug. 28 (Bloomberg) -- Full epsiode of "Bloomberg West." Guests: Impermium CEO Mark Risher, former San Francisco 49er Jerry Rice, Greylock Partners' Josh Elman and the University of Washington's Andrea Stocco. (Source: Bloomberg)

"bloomberg west" is up next.

. . live from pier 3 in san francisco, welcome to the early edition of "bloomberg west" where we cover the technology and media companies that are reshaping our world.

I'm cory johnson in for emily chang let's get straight to the rundown.

The syrian electronic army claiming responsibility for the hacking attack that took down the "the new york times" and also hit twitter.

How did they do it?

Cbs has been dark on time warner cable for nearly a month.

The government may be stepping in to buy but does the fcc really have the power to bring this fight to the end?

And we will look at the mega battleship's for the defense department or in setting a research facility to see how warships for the future are designed.

But first commodity you -- the "the new york times" web site is still down.

It has been 20 hours since it was still -- first disrupted in a cyber attack.

Twitter is back up.

The theory and electronic army is claiming responsibility.

It says it hacked into the company that registered the domain names for both companies.

Possible military -- this is a response to possible military action against syria oppose the government pick who exactly is this year in electronic army and what do they hope to gain?

Michael, i this is pretty amazing within the context of what is going on in syria.

Yes, it is.

It is not just a particularly -- it is not a particularly sophisticated hack, but a pretty clever one pitted we now live in it -- but a pretty clever one.

We now live in an era where cyber action before use of military action is an idea.

It leads you to wonder what else they have up their sleeve.

This is a business impact.

It is this the kind of thing we might expect in a new era where nation states are working on cyber attacks?

They took out one of the most popular news websites in the world and created quite a bit of chaos doing so.

They will not go after hardened military networks or target, but targets that are easier to hit, including commercial.

In this case, they did not even have to get into the "the new york times" networks or twitter networks, but go after the domain registrars instead.

What kinds of businesses are at risk in its new form of warfare?

Clearly, they are going after the big brand names that represent, at least to them, the face of the west.

The "the new york times" has been reporting on being a possible chemical attack and the retribution that is possible.

And twitter is a global brand, but associated with the u.s. commercial targets of all sorts are now targets, including a range of banks that have been hit by a pretty sophisticated attacks that have been attributed to the iranians.

All bets are off.

The possibility that this is only going to worsen, especially if tomahawk missiles strike syria, is a pretty good bet.

The focus of businesses in america becoming the target, even if the defense system is well defended from a cyber security standpoint.

Absolutely, because it is not as of the nsa or any other defense network is going to come to the aid of the "the new york times" or twitter.

Unless there is potential for severe economic demands -- damage or severe loss of life, these companies are on their own.

In some cases, you have state- sponsored hackers in going after these companies.

But the nsa capability to defend those companies by policy and by law, it cannot do so.

I'm sure they have stories that they do not want to see published some days, but thank you.

The ceo of a cyber security firm joins me now the -- now.

What were the techniques used?

It appears the techniques used were the attackers change the domain name for these sites.

That is basically the url.

They redirected it everywhere?

Explain how dns works.

It works similarly to the phone book.

And the phone book, just to be clear, were books with pages.

It's a long story.

Correct that is right.

-- that is right.

When you find someone on a page, that is how they reach them.

Similar to that, when you type in someone's domain name, the servers map that to a physical computer bank.

The cracks before you get to the actual raw registry of names, these are companies that sell registries and claim to manage them.

Is it significant that it was in mel bourne?

Correct know, i don't think so it is a very large -- no, i don't think so.

It's a very large company that registers domains for many companies.

Why does it take so long to fix this?

Because anyone who accesses the url need to make weary to drop the ip address.

And user.


And not every request after all the way to the mother ship.

They store local copies.

They take a long time to turn over.

These companies distribute the stuff across the web.

It is a form of distributing it and i also storing a local copy.

Those can take hours or days to clear out, and that is the trade-off between being able to respond quickly versus the performance benefits.

Greg is it clear what the group wanted?

It is not.

From my personal knowledge, i don't know who was responsible.

We have seen this year.

Electronic army -- we have seen the syrian electronic army defaming or harassing a lot of companies, especially when they run stories that are negative about the regime of bashar assad.

The notion that businesses, particularly american businesses, are now targeted in waging war is a new era.


You do not have to run faster than the bare.

Not to run faster than everyone else the bear is chasing.

-- you have to run faster than everyone else the bear is chasing.

This is a charter that is easier for the bad guys to go after as opposed to -- a target that is easier for the bad guys to go after as opposed to the military target.

Correct as we enter a new era, i don't know that anyone is quite to want to hack into my fit bid or my up band, but i wonder with google glass, or apple wearable device, either are hackers salivating for these things to get to the market?


People always find a way to abuse any piece of technology.

Systems are so powerful that they proved too attractive to hackers.

On the defense side, we need to look at a continuum of risk.

The way that the bad guys got into the millboard i.t. is that they were able to -- the mel bourne i.t. is that they are able to sniff out the user password.

Companies need to take a risk- based approach to evaluating who is accessing this device, this computer, this system, is it the appropriate person?

And it's what they are trying to do a great in the context?

-- and is what they are trying to do appropriate in this context?

Correct i wonder if these devices -- i wonder if these devices open themselves up for more risk.


Something like glass, which admittedly is very early stage, you have a very powerful video camera that is transmitting.

It also knows your location and even the orientation of your head.

If bad guys could gain control of that, they could monitor the person as well as anything they're looking at.

I have been trying to get control of my own had for decades now.

Thank you very much.

Fantasy football fans are gearing up for the draft this weekend.

Former san francisco hall of famer jerry rice will be joining as to talk about the explosion of fantasy sports.

? this is "bloomberg west" on bloomberg television, also streaming on your phone, tablet, and at

I'm cory johnson.

The sec is getting involved in a dispute between time warner cable and cbs as the nfl fall season approaches is engaged in the highest levels to get things resolved, but would not offer any other details.

It has been blacked out since august 2nd.

25 million people will draft players to fantasy football teams.

In the lead out to the draft, many will use analytics and crunched big data to show the best picks for their dream team.

We look to a lodge -- unlock the intelligence behind these picks.

Hall of famer jerry rice to my greatest player in the history of the game is here.

It is so daunting, but a huge, huge thing.

Correct back in the day when i played, that was a long time ago.

They would talk about fantasy football.

They would say, well, i have you on my fantasy team.

I did not know the background behind it at that time.

The the but now, fantasy football has gone to a whole different level could you have over 30 million people playing fantasy football and is a $1.1 billion industry.

And 75% of fantasy football players want a real stab at that moment.

-- the real stats at that moment.

It has to do with the way people's viewing has changed.

They're watching with their ipad and they've got a tv and is experienced all at once.

80 television, the sights and sounds, the crystal clear detail -- high-definition television, the sights and sounds, the crystal clear detail, you can watch it at home or at the local starbucks or on your laptop.

You can put that information on your smartphones and tablets.

There's a lot of technology and that is right partnered up with intel.

They're one of the leading brand.

I feel like football is one of the most intellectually challenging sports to understand what is happening, not just with the players, but with the place.

But also with the players, when the fans are in tennessee football, there -- in fantasy football, they are learning so much data.

And a breakdown to whether someone functioned well in cold weather, plays better in a dome, personal issues -- things like that might impact your decision on bringing this guy on to your team.

And it is all in that data.

As a player -- because you played for a long time, and i wonder if the data you would give as a player would change a lot during that time.

I think it changed a lot.

What was it like when you first came into the league?

When i first came into the league, it was just hard work and dedication.

I think players can be a little bit smarter now with all the data that is out there.

You are aware of all technology that can -- you have technology that you can wear that can monitor your heart.

There are all those things.

All those things factor into a fitness program to be beneficial to you.

First, hard work and dedication.

When i first came to the bay area in 1998 and i went to see this baseball player named barry bonds about working on -- working out.

He said it was during workouts with you.

He is famous for his time in the gym.

He just shook his head and said, jerry, the way that i worked.

He would give me a hard time and say, look, i'll have to be run to third base.

My conditioning, i had to take it to a whole different level because i wanted to be able to excel in the third quarter, the fourth quarter.

Correct -- i wonder if the data when you were with the raiders is the same quality of data.

Yes, it will give you an accurate analysis of a player's speed, the vertical leap, the potential for injury.

All of that is going on -- and then you've got the coaches using that technology . what are they looking for?

But they are looking for certain tendencies, let the the -- they're looking for certain tendencies.

Like the way a guy plays on the line?

Yes, and that will help them to prepare for the next team airplane.

What kind of information which you look for a on a wide receiver or something that you know about?

Correct probably how he comes -- probably how he comes off the line of scrimmage.

And i would try to make everything look the same.

Of the could not tell what was coming?


And i was always working the defensive and on the backside just in case, to get a feel for -- last question, if you have to pick three wide receivers.

Come on, audrey johnson, kevin johnson, and fitzgerald.

Very nice.

Still to come, the place where every navy ship is on its design test.

? welcome back.

President obama has held his first panel after edward snowden sneak information about the program.

Megan hughes is in washington what is going on with this panel?

Let's talk about first who's on it.

The white house did can -- did confirm those names could we do with veteran and former white house officials.

Richard clarke is a former u.s. cyber security adviser under president bush.

Michael morrell, recent acting head of the cia where he worked for 30 years.

Jeffrey stone, a chicago law professor.

And you also have a harvard law professor, cass sunstein, and peter swire the the news served on the national economic council.

This group is part of a series of steps that he laid out this month.

The white house is facing a lot of criticism about these programs.

It the group is charged with providing the president with information within 60 days and following up with a report.

The point is to discuss how the government can conduct a national security while still respecting the privacy.

The president in early august said it is not enough for me to have confidence in these programs.

The american people need to have confidence in these programs.

That is what this group is about.

I wonder what can actually happen with all of this.

Greg is a good question.

First, let's talk about the programs.

We have two and as a programs collecting millions of phone records.

And also looking at cross border internet traffic.

It is monitored by a secret court.

It is all laid out by the page.

Act, which passed after september 11th.

-- the patriots act, which passed after september 11th.

The president said he would like to see the page.

Act amended, and he also said he would like to see an adversary appointed to the court.

To speak about privacy issues as far as the court goes.

And there was also funding in the house that goes to the nsa.

They had a vote on that late last month, but nothing so far, no changes.

Megan hughes, thank you very much.

The time for on the market from a look at what is moving at the markets every hour.

What is going on in maastricht?

-- on wall street?

We're looking at where stocks are climbing.

The dow trading up by about 72, the s&p up by nine after a two- month low yesterday.

And the nasdaq up by 26. in terms of sectors, it is energy stocks leading the markets.


Because of west texas intermediate crude is trading in a two-year high on concerns of what is happening in syria and that could disrupt supply out of the middle east.

Two that i want to highlight for you, the first is aztec pharmaceutical.

Promising results in a phase two trial.

And george global, -- joy global is off its lows for the day after an expected improvement for the year.

More "bloomberg west" coming up after the break.

? this is the early edition for "bloomberg west" and nine cory johnson in for emily chang.

You can also check out at 6:00 p.m. eastern.

Thousands are gathered on the national mall to mark the 50th anniversary of martin luther king jr.'s fame as i have a dream speech.

President obama will speaking of a little over an hour from the steps of the lincoln memorial.

We will carry that the entire speech live.

Also former president bill clinton and jimmy carter will be speaking.

Slow progress against the massive wildfire in yosemite park.

It is 20% contained, but has still burned 187,000 a.. it is also burning closer to the head to head cheap -- reservoir the thethat provides water to san francisco.

A famous pteridophyte.

They charged 10 euros to throw tomatoes at each other.

Every tomato will help.

It former ticketmaster president nathan hubbard is hired on at quarter as head of commerce spyridon.

Jon ehrlichman brook this story yesterday.

He joins us now with the latest cuts maybe they can sell tickets to the tomato fight on twitter.

-- he joins us now with the latest.

Maybe they can sell tickets to the tomato fight on twitter.

Someone who knows a lot about the growth of twitter is -- elman, -- josh elman, who recently became a partner in his company.

Thanks for joining us.

What do you think about this push into commerce?

I think it is very exciting for twitter.

There is a natural affinity for people to buy impulse items for things like tickets, things that they are a fan of, as well as developing a long-term relationship with france.

-- brands.

May be explained that in a little more detail.

The mind set on trigger -- twitter, maybe there will be imposed by it, but how the market is that?

On a platform that people in more about, let's say, news, discovery, and what is up in the world?

Greta think it was three years ago when conan o'brien got kicked out of nbc, he did one tweet that he was going around the country on tour and it sold out in about three hours.

If you were on twitter at the time, you had the chance to buy those tickets.

It will be the kind of purchases that we are not even thinking about making now that people make in those snap decisions.

An interesting point.

There is so much buzz about whether twitter is going to go public.

What do you think about that prospect?

Do you think the company will go for an initial public offering by the end of this year the the dax next year?

It is a great question.

-- by the end of this year?

The next year?

It is a great question.

I think it some.

Being on the public markets will help the company grow and expand, but i don't think there any hurry to rush it before it is natural for the company.

We watched the i.p.o. for facebook and the stock has recovered in a big way, but coming back to the issue of commerce and the approach that facebook had taken, which is a sort of the initial stage for twitter.

How would you compare and contrast with the two companies are doing?

On facebook, you're there to interact with your friend and see what they're up to in the world.

On twitter, you are doing what you said earlier, going to find what is happening right now in the world and all the things that might be of interest.

In facebook, at the experience a lot of things like the gifts, and on twitter i think you will see a lot more happen around commerce the the way things were fans of and interested in.

I did with book, we will see this top of the final, where people are -- with both, i think we will see this top of the final, where people are fighting about -- finding out about things.

And a final question about how this could work for twitter to how other retailers are plugging into the platform.

We make it sound so simple.

Is it that easy to do?

You know, it really is.

If you have a web page any purchase flow, there's no reason why when you see a tweet you cannot click through on a sweet and make a purchase without fully having to authenticate.

I think we are just at the beginning of how easy it can be when you think about it on your mobile phone.

And when you think about the natural engagement that it's happening every day on twitter.

Let's talk about where you're doing over at greycroft.

Some people would say, there are some big social companies out there already.

Haven't we talked out this market?

Obviously, you do not think it -- of it that way.

What you think is the next big thing where you want to swap some money down?

The way we think about it is that it is a chance for us to get involved.

We have gotten to build a lot of these companies in the past.

And we can help build the company's of the future.

We thought twitter was the last one and then pinterest or facebook with the last one, and now we are seeing is not chat rise.

We have an investment in the company called next door.

We think people will connect with mobile phones and tablets in their living rooms.

We want to get a chance to help build that, just the way we have worked with linkedin and facebook and twitter to get there.

The plate -- the gridlock -- graylock strategy is to speak to big bowl so they can build the same business.

What is the first question?

The first question i would say is, why did you go to the dockside -- the first question i faced was, why did you go to the dark side?

It is not about going to the dark side.

I have gotten to help the company's early and help them scale.

I want to do the same thing as a board member and a colleague and helping them higher great people and work with them as they build a great company.

Thank you.

Back over to you.

The correct coming up, -- coming up, we'll go to where they are developing designs for a huge battle ships.

? this is the early edition of "bloomberg west" and i'm cory johnson.

You can also catch as letter read 6:00 p.m. eastern, 3:00 p.m. pacific.

You can find one of the largest ship testing facilities in the world cannot open in the 1940's where the navy tests its ships before they ever had to open water.

But every navy ship has been tested here at the naval surface warfare center.

Computer models are used to read the flow of wind and water.

High-speed cameras capture under were explosions.

The three printers have been used for decades . they are basically a technical adviser for the navy for mechanical and electrical engineering for the navy's ships, submarines, come back and crafts, and unmanned vehicles.

But the highlight of the campus is the base in, one of the largest facilities out of its kind in the world.

The navy open the base in 1940, after finding that the bethesda, md.

5 have a solid bedrock to support the pools, access to water, and proximity to the navy's washington offices.

We work with our industry partners to develop the the different aspects of using advanced compositional -- computational tools.

We also developed physical models of the ship to scale.

They use the unit facility with specialized consultants.

We have an agreement with industry to come in and work with our engineers for the difference experimentation required to advance and develop the navy ship design.

Every two years, the base and hosts the international submarine race, to challenge kids in high school science and engineering.

Correct they had a look at dynamics, a boy and see and wait.

A look at systems engineering and a myriad of real world designed and challenges.

Correct those students may not come up with the ship of the future every time, but chances are, the navy's next war ship will sail here in the maryland suburbs before it ever reaches the sea.

Interesting stuff.

That was peter cook.

It is the stuff of science fiction movies, but now it is bought for one person to control the behavior -- it is thought possible for one person to control the behavior of someone else.

? this is "bloomberg west" streaming on your tablet and phone and at

Scientists at university of washington say they have figured out how to transmit brain signals through the internet.

Jon ehrlichman, wait, i'm just going to think about you.

Is it working?

You could have all sorts of powers over me.

No, just imagine sending brain waves that could cause me to move my hand.

One of them was using a brain reading cap and the other colleague was on the other end and he triggered the actual motion.

One of them joins us via sky the from the university of washington.

That must have felt weird.

What was that like?

It did not feel that weird.

It is now work -- more weird than when you have the involuntary motion of your hand.

I was quite happy to see my and living without my control because it meant the experiment worked.

Explain to people why you're doing is and how long it has taken to get to this place.

We reason -- we believe in the future it will be able to transfer it into more complex patterns of movement.

For example, and more complex pattern of movement, or even more complex thing by performing surgery.

They are much more direct from one brain to another.

There was one narrow scientist who said this is like using a phone signal to drag your -- trigger a man in a joke magnetic jolt to the brain.

How would you respond to that?

Even when they did a brain drain communication between the rat brain and [indiscernible] there will always be some kind of interface between the two brings proof in this case, the idea was to make the interface known.

And as far as we know, we did that.

The funding comes from the university of washington, but also from the army's research office and the national institutes of health.

What do they want to get out of this?

They're hoping to control artificial things like computer screen and press public lands.

That is also the kind of research -- and prosthetic limbs.

That is off the kind of research that students are using as well.

And transmitting from ranger brain the the to deliver a signal -- from grain to brain to deliver a scene -- a signal, this is all part our research progress at the end of the day, how long?

Guys like me and core have been doing the same kind of stuff that you have been doing at the university of washington.

If you come here to washington, you couldn't get permission from the review board.

-- you could get permission from the review board.

The interesting thing will be when people will be able to transmit more sophisticated things.

It corrects plenty of possibilities.

It -- plenty of possibilities.

Thank you for sharing your research with us.

Cory can i send it back to you.

I was just thinking you were going to say that.

That is so weird.

More "bloomberg west" coming up just after the break.

? welcome back.

Coming up on a later edition of "bloomberg west", 6:00 on the east coast, while global maintained its lead on advertising mobley -- on mobil, facebook is quickly catching up.

We will break down a brand new numbers at 6:00. on the market is right here.

It i've got to good news for you.

All the major indices are trading in the green right now.

The dow was up about 76, the s&p trading higher by about 9.5, and the nasdaq up about 26 points.

The leading sectors, energy stocks.


Because of what is happening to oil.

It is spiking on concerns that tensions in syria could spill over the rest of the region and disrupt the oil supply.

Two stocks we also want to highlight at this hour, first, the deep water drilling seadrill.

They will be able to finance operations without additional shares.

Also, tiffany and company is down.

It was downgraded from a buy after reporting its earnings out yesterday.

Moving from rocks to crops, should only be preparing for record crops?

It is really a thing of the past?

The crops are in important growing phase, and the weather is turning pretty hot.

Alix steel has been digging into the crops.

How dire is the situation?

Compared to what we saw last year with corn, nowhere near there.

But there are some issues.

First, we had some heavy rain in the spring, which pushed back some planting of corn and soybeans.

Next, we had cooler temperatures, which was a surprise.

But now the hot weather is helping, but it is getting a little bit too hot.

Illinois and indiana are headed

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