Speaker 1: Broadcasting live to New York Bloomberg elvon Frio to Washington,
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Speaker 1: and Bloomberg dot Com. This is Bloomberg Markets, Carl Master
Speaker 1: and our bloombergol even three oh studio in New York City.
Speaker 1: Right here on Bloomberg Markets are most read story in
Speaker 1: the past eight hours. New cyber attack goes global. We're
Speaker 1: gonna talk a bit about that and the reach and
Speaker 1: the company's hit. You're gonna know some of those names.
Speaker 1: We'll get to that in just a moment right here
Speaker 1: on Bloomberg Radio. Back though, to what's going on in
Speaker 1: the world of business, and look at the closing numbers
Speaker 1: on Wall Street. Here is Duck Risner, Yeah, Carroll, more
Speaker 1: than eighty companies in that cyber attack. I'll be listening
Speaker 1: to hear what the discussion is like. Kind of a
Speaker 1: curious story this breaking over the Bloomberg terminal. Just now.
Speaker 1: CVS healthcore of the biggest retailer of a prescription drugs
Speaker 1: in the States planning to sell its specialty distribution unit
Speaker 1: our ex Crossroads, and we are told this deal could
Speaker 1: fetch more than five hundred million dollars. Insofar as equity
Speaker 1: trading concerned, for today, a lot of weakness in the
Speaker 1: text space. Applied material stock hard hit down about five percent.
Speaker 1: Class A shares in Google actually Alphabet, the Google parent
Speaker 1: uh stock was hard hit today after that record find
Speaker 1: from the European Union. Class A shares weaker by two
Speaker 1: and a half percent, down Industrial average minus one half
Speaker 1: of one percent, the SMP gave back about eight tenths
Speaker 1: of one percent, and in the Nasdaq market, the Composite
Speaker 1: index was down about one point six percent. Some FED
Speaker 1: speakers have shaken up things just a bit. Fed's Vice
Speaker 1: chair Stan Fisher saying that high asset prices may lead
Speaker 1: to future stability risk and John Williams, he is the
Speaker 1: president of the San Francisco FED Banks, saying he's somewhat
Speaker 1: concerned about complacency and markets. In his words, the stock
Speaker 1: market seems to be running very much on fumes. Earlier
Speaker 1: in the session that we had, the President of the ECB,
Speaker 1: Mario drag Is suggesting that the head winds to inflation
Speaker 1: in a Eurozone or temporary that started this backup in
Speaker 1: US long term interest rates that we saw today the
Speaker 1: ten year last quoted in New York at the yield
Speaker 1: of two point to zero recovery and crewde at the
Speaker 1: same time. Although right now in the electronics session, we're
Speaker 1: off the session highs w T I up about one
Speaker 1: percent right now trading forty three eighty four. Let's get
Speaker 1: back to Carol for more Bloomberg markets. All right, Christners,
Speaker 1: thank you so much. You're listening to Bloomberg Markets, brought
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Speaker 1: i A dot net. This is Bloomberg Radio. Well, we
Speaker 1: did have another uh cyber attack, a new one going global,
Speaker 1: spreading from Europe to the United States. Ransomware attack. Tom
Speaker 1: Beardsley is director of research at the I T Security
Speaker 1: from Rapid seven, ruining us on the phone from Austin, Texas. Todd,
Speaker 1: thanks for joining us once again. Another attack. I feel like,
Speaker 1: you know this is the norm um if I just
Speaker 1: kind of look at you know, you do a Google
Speaker 1: search every morning, uh and look for stuff on cyber attacks.
Speaker 1: There's always something out there. This, though, is similar to
Speaker 1: Want to Cry spreading from Europe to the US, hitting
Speaker 1: port operators in New York and Rotterdam UH and disruption
Speaker 1: government systems in Kiev. UM affecting companies like Ross Neft,
Speaker 1: uh w P p U and the Chernobyl Nuclear facility. UH.
Speaker 1: I don't know what to take away that this is
Speaker 1: just going to become more commonplaces, is just the way
Speaker 1: the world is, or should we be getting more nervous
Speaker 1: about the seriousness of some of the places they're affecting
Speaker 1: and hitting, like the Chernobyl Nuclear facility. Uh. Well, I
Speaker 1: do take your points that this does seem awfully familiar.
Speaker 1: We just went through an exercise like this with the
Speaker 1: Want to Cry ransom worm that that that back in May. Uh.
Speaker 1: That is a very similar attack using exploit wise, it's
Speaker 1: using almost all the same exploit um that that wanta
Speaker 1: I did. UM. So if people have been preparing against
Speaker 1: Want to Cry, they're in a pretty pretty good position
Speaker 1: today against uh PETA or pet the PETA related Uh.
Speaker 1: I mean this is a case where I guess a
Speaker 1: lot of large companies have been out there safeguarding their systems. Um.
Speaker 1: Although w PP is a large company, ross Neft is
Speaker 1: a lot large company. UM, I don't know how should
Speaker 1: we equate this, Like I said, is this just a
Speaker 1: normal part of doing business at this point? Uh? And
Speaker 1: there are safeguards that can be put in place to
Speaker 1: protect companies, to protect utilities and the like. Well, Um,
Speaker 1: the Internet's a hostel place. It was designed um many
Speaker 1: decades ago, back in the seventies, with the notion that
Speaker 1: any computer should be able to talk to any other computer.
Speaker 1: And now we're in two seventeen and it turns out
Speaker 1: every computer can talk to every other year. So UM,
Speaker 1: that's just kind of a design. And UM, we do
Speaker 1: see that there are some things on the Internet that
Speaker 1: really ought to be there. UM. Most importantly UM for
Speaker 1: this issue is SMB, which is the Windows file Sharing Protocol. Um,
Speaker 1: there is I can think of no earthly reason to
Speaker 1: expose this to the Internet at all. That should only
Speaker 1: be on like a local network. And so enterprise I
Speaker 1: t admns should be triple checking their filewow rules to
Speaker 1: make sure that they're not allowing um, you know, out
Speaker 1: externally for connection to their FB file servers. You know,
Speaker 1: Tom I recently moderated a panel that was looking specifically
Speaker 1: it's cybersecurity. Uh, talking with the bank, talking to a
Speaker 1: tech from this involved in security, talking to chief investment
Speaker 1: investment but information officers and they, you know, reminded me
Speaker 1: that it's not only just about protecting your own systems,
Speaker 1: but you gotta also think about the third party vendors
Speaker 1: that you work with. That's where a flaw can happen
Speaker 1: and a problem can happen very very often. UM. Yeah,
Speaker 1: Like it's your own i T is your business, but
Speaker 1: everybody else's i T is also kind of your business.
Speaker 1: I mean we saw that with the Maria thought that
Speaker 1: um that hit o GE that's would have been October.
Speaker 1: UM this last sect over where we were up until Maria,
Speaker 1: we were all worried about like how are we going
Speaker 1: to secure all of our Internet of Things devices? And
Speaker 1: then after Maria, we were all asking how are we
Speaker 1: going to secure ourselves from all these Internet of Things
Speaker 1: devices that are out of the network. UM, So the
Speaker 1: threat does come from this kind of this this mass
Speaker 1: of kind of unconfigured or lightly administered UM network devices
Speaker 1: out there that in in combination do cause like some
Speaker 1: pretty serious how it is, and some some serious disasters
Speaker 1: like the want of the see today, this is your business.
Speaker 1: I mean, so you're dealing with companies they consult you.
Speaker 1: How often is it that they consult you only for
Speaker 1: there's been some problem? How many are really kind of
Speaker 1: putting insurance policies in place ahead of everything? Um? Well,
Speaker 1: I can't really speak to the fiber insurance market. Um.
Speaker 1: But well, but by insurance, I mean by insurance that
Speaker 1: right there you're and you're right there is that cipher
Speaker 1: insurance problem market that's out there and it's growing. But
Speaker 1: I mean in terms of putting you know, taking safeguards
Speaker 1: to protect their I T systems. So we we do
Speaker 1: get like a small percentage of our customers like start
Speaker 1: off in panic mode, like like today, right like they
Speaker 1: have a compromise and they call Rapid seven and say,
Speaker 1: oh mg, I'm totally compromised. What are you guys gonna
Speaker 1: do for me? Um? But most of the time we're not,
Speaker 1: we're not operating like that. We were very much into um,
Speaker 1: you know, detection and defense rather than you know, mediation response.
Speaker 1: It's way better, um, you know, it's it's cheaper. You
Speaker 1: can do it on your schedule, um and it and
Speaker 1: it kind of just gets you like we can help
Speaker 1: companies get into the habit of having decent security and
Speaker 1: think their backups and testing their defenses through like you know, scanning,
Speaker 1: like vulnerability scanning through all the way through like a
Speaker 1: sense of security exercises where we like you know, kind
Speaker 1: of parachute in on site and attack the network for
Speaker 1: you all of that together to take the let's let's
Speaker 1: let's you be prepared for like that next. All right,
Speaker 1: good to know and good to get some time with you.
Speaker 1: Todd Beardsley, director of research at Rapid seven, joining us
Speaker 1: on the phone from Austin, Texas. Right now you are
Speaker 1: listening to Bloomberg Markets on Bloomberg Radio. Time for another
Speaker 1: check on your latest world of national news headlines. Let's
Speaker 1: head on over to Nathan Hagar in our Bloomberg nine
Speaker 1: and nine one newsroom in Washington. Hige, Nathan, Hi, Carol. Thanks,
Speaker 1: We're getting very close on healthcare. That from President Trump
Speaker 1: meeting White right now with Senate Republicans at the White
Speaker 1: House after majority leader Mitch McConnell delayed the vote on
Speaker 1: his party's Affordable Care Act replacement until after the July
Speaker 1: four break. Very complicated subjects. I remember how challenging it
Speaker 1: was for the Democrats when they were acting back in
Speaker 1: twenty nine and twenty town the big complicated subject. We've
Speaker 1: got a lot of discussions going on, and we're still optimistic.
Speaker 1: The growing number of Republicans came out against this bill
Speaker 1: after the Congressional Budget Office estimated it would mean twenty
Speaker 1: two million Americans losing coverage over a decade. Along debate
Speaker 1: is said to begin this week over the size of
Speaker 1: the US military. Tomorrow, the House Armed Services Committee begins
Speaker 1: writing the Defense Authorization Bill. It's a six hundred thirty
Speaker 1: one and a half billion dollar measure, twenty eight and
Speaker 1: a half billion more than President Trump asked for, but
Speaker 1: even that was well above the only five hundred forty
Speaker 1: nine billion dollar cap in military spending under the Budget
Speaker 1: Control Acts. The ranking Democrat called it fantasy island money, because,
Speaker 1: I mean authorizers can can prescribe and they can say
Speaker 1: this is how much we authorize you to spend in
Speaker 1: a certain year. But where the you know, the rubber
Speaker 1: hits the road is on the Spending Committee and Bloomberg
Speaker 1: Government Congressional reporter Rock Santa Toron says there is no
Speaker 1: viable plan to lift that budget cap. You can follow
Speaker 1: the debate. It's just getting started. At beak of dot
Speaker 1: com Global news twenty four hours a day, powered by
Speaker 1: more than twenty seven hundred journalists and analysts in more
Speaker 1: than one hundred twenty countries. I'm Nathan Hagar. This is Bloomberg.
Speaker 1: Thank