WEBVTT - Bloomberg Markets: Beardsley on Global Cyberattack

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<v Speaker 1>Broadcasting live to New York Bloomberg elvon Frio to Washington,

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<v Speaker 1>d C, Bloomberg to Boston, Bloomberg twelve hundred, to San Francisco,

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<v Speaker 1>Bloomberg nine six, to the country serious XM chental one

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<v Speaker 1>nineteen and around the globe the Bloomberg Radio Plus app

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<v Speaker 1>and Bloomberg dot Com. This is Bloomberg Markets, Carl Master

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<v Speaker 1>and our bloombergol even three oh studio in New York City.

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<v Speaker 1>Right here on Bloomberg Markets are most read story in

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<v Speaker 1>the past eight hours. New cyber attack goes global. We're

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<v Speaker 1>gonna talk a bit about that and the reach and

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<v Speaker 1>the company's hit. You're gonna know some of those names.

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<v Speaker 1>We'll get to that in just a moment right here

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<v Speaker 1>on Bloomberg Radio. Back though, to what's going on in

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<v Speaker 1>the world of business, and look at the closing numbers

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<v Speaker 1>on Wall Street. Here is Duck Risner, Yeah, Carroll, more

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<v Speaker 1>than eighty companies in that cyber attack. I'll be listening

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<v Speaker 1>to hear what the discussion is like. Kind of a

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<v Speaker 1>curious story this breaking over the Bloomberg terminal. Just now.

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<v Speaker 1>CVS healthcore of the biggest retailer of a prescription drugs

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<v Speaker 1>in the States planning to sell its specialty distribution unit

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<v Speaker 1>our ex Crossroads, and we are told this deal could

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<v Speaker 1>fetch more than five hundred million dollars. Insofar as equity

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<v Speaker 1>trading concerned, for today, a lot of weakness in the

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<v Speaker 1>text space. Applied material stock hard hit down about five percent.

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<v Speaker 1>Class A shares in Google actually Alphabet, the Google parent

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<v Speaker 1>uh stock was hard hit today after that record find

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<v Speaker 1>from the European Union. Class A shares weaker by two

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<v Speaker 1>and a half percent, down Industrial average minus one half

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<v Speaker 1>of one percent, the SMP gave back about eight tenths

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<v Speaker 1>of one percent, and in the Nasdaq market, the Composite

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<v Speaker 1>index was down about one point six percent. Some FED

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<v Speaker 1>speakers have shaken up things just a bit. Fed's Vice

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<v Speaker 1>chair Stan Fisher saying that high asset prices may lead

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<v Speaker 1>to future stability risk and John Williams, he is the

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<v Speaker 1>president of the San Francisco FED Banks, saying he's somewhat

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<v Speaker 1>concerned about complacency and markets. In his words, the stock

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<v Speaker 1>market seems to be running very much on fumes. Earlier

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<v Speaker 1>in the session that we had, the President of the ECB,

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<v Speaker 1>Mario drag Is suggesting that the head winds to inflation

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<v Speaker 1>in a Eurozone or temporary that started this backup in

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<v Speaker 1>US long term interest rates that we saw today the

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<v Speaker 1>ten year last quoted in New York at the yield

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<v Speaker 1>of two point to zero recovery and crewde at the

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<v Speaker 1>same time. Although right now in the electronics session, we're

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<v Speaker 1>off the session highs w T I up about one

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<v Speaker 1>percent right now trading forty three eighty four. Let's get

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<v Speaker 1>back to Carol for more Bloomberg markets. All right, Christners,

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<v Speaker 1>thank you so much. You're listening to Bloomberg Markets, brought

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<v Speaker 1>to you by National Reality Managers of New York, New Jersey, Philadelphia,

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<v Speaker 1>to six returns on cash. See them at n r

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<v Speaker 1>i A dot net. This is Bloomberg Radio. Well, we

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<v Speaker 1>did have another uh cyber attack, a new one going global,

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<v Speaker 1>spreading from Europe to the United States. Ransomware attack. Tom

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<v Speaker 1>Beardsley is director of research at the I T Security

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<v Speaker 1>from Rapid seven, ruining us on the phone from Austin, Texas. Todd,

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<v Speaker 1>thanks for joining us once again. Another attack. I feel like,

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<v Speaker 1>you know this is the norm um if I just

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<v Speaker 1>kind of look at you know, you do a Google

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<v Speaker 1>search every morning, uh and look for stuff on cyber attacks.

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<v Speaker 1>There's always something out there. This, though, is similar to

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<v Speaker 1>Want to Cry spreading from Europe to the US, hitting

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<v Speaker 1>port operators in New York and Rotterdam UH and disruption

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<v Speaker 1>government systems in Kiev. UM affecting companies like Ross Neft,

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<v Speaker 1>uh w P p U and the Chernobyl Nuclear facility. UH.

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<v Speaker 1>I don't know what to take away that this is

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<v Speaker 1>just going to become more commonplaces, is just the way

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<v Speaker 1>the world is, or should we be getting more nervous

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<v Speaker 1>about the seriousness of some of the places they're affecting

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<v Speaker 1>and hitting, like the Chernobyl Nuclear facility. Uh. Well, I

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<v Speaker 1>do take your points that this does seem awfully familiar.

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<v Speaker 1>We just went through an exercise like this with the

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<v Speaker 1>Want to Cry ransom worm that that that back in May. Uh.

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<v Speaker 1>That is a very similar attack using exploit wise, it's

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<v Speaker 1>using almost all the same exploit um that that wanta

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<v Speaker 1>I did. UM. So if people have been preparing against

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<v Speaker 1>Want to Cry, they're in a pretty pretty good position

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<v Speaker 1>today against uh PETA or pet the PETA related Uh.

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<v Speaker 1>I mean this is a case where I guess a

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<v Speaker 1>lot of large companies have been out there safeguarding their systems. Um.

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<v Speaker 1>Although w PP is a large company, ross Neft is

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<v Speaker 1>a lot large company. UM, I don't know how should

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<v Speaker 1>we equate this, Like I said, is this just a

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<v Speaker 1>normal part of doing business at this point? Uh? And

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<v Speaker 1>there are safeguards that can be put in place to

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<v Speaker 1>protect companies, to protect utilities and the like. Well, Um,

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<v Speaker 1>the Internet's a hostel place. It was designed um many

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<v Speaker 1>decades ago, back in the seventies, with the notion that

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<v Speaker 1>any computer should be able to talk to any other computer.

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<v Speaker 1>And now we're in two seventeen and it turns out

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<v Speaker 1>every computer can talk to every other year. So UM,

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<v Speaker 1>that's just kind of a design. And UM, we do

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<v Speaker 1>see that there are some things on the Internet that

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<v Speaker 1>really ought to be there. UM. Most importantly UM for

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<v Speaker 1>this issue is SMB, which is the Windows file Sharing Protocol. Um,

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<v Speaker 1>there is I can think of no earthly reason to

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<v Speaker 1>expose this to the Internet at all. That should only

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<v Speaker 1>be on like a local network. And so enterprise I

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<v Speaker 1>t admns should be triple checking their filewow rules to

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<v Speaker 1>make sure that they're not allowing um, you know, out

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<v Speaker 1>externally for connection to their FB file servers. You know,

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<v Speaker 1>Tom I recently moderated a panel that was looking specifically

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<v Speaker 1>it's cybersecurity. Uh, talking with the bank, talking to a

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<v Speaker 1>tech from this involved in security, talking to chief investment

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<v Speaker 1>investment but information officers and they, you know, reminded me

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<v Speaker 1>that it's not only just about protecting your own systems,

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<v Speaker 1>but you gotta also think about the third party vendors

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<v Speaker 1>that you work with. That's where a flaw can happen

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<v Speaker 1>and a problem can happen very very often. UM. Yeah,

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<v Speaker 1>Like it's your own i T is your business, but

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<v Speaker 1>everybody else's i T is also kind of your business.

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<v Speaker 1>I mean we saw that with the Maria thought that

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<v Speaker 1>um that hit o GE that's would have been October.

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<v Speaker 1>UM this last sect over where we were up until Maria,

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<v Speaker 1>we were all worried about like how are we going

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<v Speaker 1>to secure all of our Internet of Things devices? And

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<v Speaker 1>then after Maria, we were all asking how are we

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<v Speaker 1>going to secure ourselves from all these Internet of Things

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<v Speaker 1>devices that are out of the network. UM, So the

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<v Speaker 1>threat does come from this kind of this this mass

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<v Speaker 1>of kind of unconfigured or lightly administered UM network devices

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<v Speaker 1>out there that in in combination do cause like some

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<v Speaker 1>pretty serious how it is, and some some serious disasters

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<v Speaker 1>like the want of the see today, this is your business.

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<v Speaker 1>I mean, so you're dealing with companies they consult you.

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<v Speaker 1>How often is it that they consult you only for

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<v Speaker 1>there's been some problem? How many are really kind of

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<v Speaker 1>putting insurance policies in place ahead of everything? Um? Well,

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<v Speaker 1>I can't really speak to the fiber insurance market. Um.

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<v Speaker 1>But well, but by insurance, I mean by insurance that

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<v Speaker 1>right there you're and you're right there is that cipher

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<v Speaker 1>insurance problem market that's out there and it's growing. But

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<v Speaker 1>I mean in terms of putting you know, taking safeguards

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<v Speaker 1>to protect their I T systems. So we we do

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<v Speaker 1>get like a small percentage of our customers like start

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<v Speaker 1>off in panic mode, like like today, right like they

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<v Speaker 1>have a compromise and they call Rapid seven and say,

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<v Speaker 1>oh mg, I'm totally compromised. What are you guys gonna

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<v Speaker 1>do for me? Um? But most of the time we're not,

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<v Speaker 1>we're not operating like that. We were very much into um,

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<v Speaker 1>you know, detection and defense rather than you know, mediation response.

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<v Speaker 1>It's way better, um, you know, it's it's cheaper. You

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<v Speaker 1>can do it on your schedule, um and it and

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<v Speaker 1>it kind of just gets you like we can help

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<v Speaker 1>companies get into the habit of having decent security and

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<v Speaker 1>think their backups and testing their defenses through like you know, scanning,

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<v Speaker 1>like vulnerability scanning through all the way through like a

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<v Speaker 1>sense of security exercises where we like you know, kind

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<v Speaker 1>of parachute in on site and attack the network for

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<v Speaker 1>you all of that together to take the let's let's

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<v Speaker 1>let's you be prepared for like that next. All right,

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<v Speaker 1>good to know and good to get some time with you.

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<v Speaker 1>Todd Beardsley, director of research at Rapid seven, joining us

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<v Speaker 1>on the phone from Austin, Texas. Right now you are

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<v Speaker 1>listening to Bloomberg Markets on Bloomberg Radio. Time for another

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<v Speaker 1>check on your latest world of national news headlines. Let's

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<v Speaker 1>head on over to Nathan Hagar in our Bloomberg nine

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<v Speaker 1>and nine one newsroom in Washington. Hige, Nathan, Hi, Carol. Thanks,

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<v Speaker 1>We're getting very close on healthcare. That from President Trump

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<v Speaker 1>meeting White right now with Senate Republicans at the White

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<v Speaker 1>House after majority leader Mitch McConnell delayed the vote on

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<v Speaker 1>his party's Affordable Care Act replacement until after the July

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<v Speaker 1>four break. Very complicated subjects. I remember how challenging it

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<v Speaker 1>was for the Democrats when they were acting back in

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<v Speaker 1>twenty nine and twenty town the big complicated subject. We've

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<v Speaker 1>got a lot of discussions going on, and we're still optimistic.

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<v Speaker 1>The growing number of Republicans came out against this bill

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<v Speaker 1>after the Congressional Budget Office estimated it would mean twenty

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<v Speaker 1>two million Americans losing coverage over a decade. Along debate

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<v Speaker 1>is said to begin this week over the size of

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<v Speaker 1>the US military. Tomorrow, the House Armed Services Committee begins

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<v Speaker 1>writing the Defense Authorization Bill. It's a six hundred thirty

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<v Speaker 1>one and a half billion dollar measure, twenty eight and

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<v Speaker 1>a half billion more than President Trump asked for, but

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<v Speaker 1>even that was well above the only five hundred forty

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<v Speaker 1>nine billion dollar cap in military spending under the Budget

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<v Speaker 1>Control Acts. The ranking Democrat called it fantasy island money, because,

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<v Speaker 1>I mean authorizers can can prescribe and they can say

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<v Speaker 1>this is how much we authorize you to spend in

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<v Speaker 1>a certain year. But where the you know, the rubber

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<v Speaker 1>hits the road is on the Spending Committee and Bloomberg

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<v Speaker 1>Government Congressional reporter Rock Santa Toron says there is no

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<v Speaker 1>viable plan to lift that budget cap. You can follow

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<v Speaker 1>the debate. It's just getting started. At beak of dot

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<v Speaker 1>com Global news twenty four hours a day, powered by

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<v Speaker 1>more than twenty seven hundred journalists and analysts in more

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<v Speaker 1>than one hundred twenty countries. I'm Nathan Hagar. This is Bloomberg.

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<v Speaker 1>Thank