Duritz names the ingredients for a long and satisfying career in the Music Industry. First, headlines with carol massar. Casinos taking a hit. Shares of wynn resorts dipping 2 after Cameron Mcknight said the growth is a negative else single digits. The 2. 6 billion hotel casino was trying to find a buyer in bankruptcy. The next two weeks will see the closing of chung plaza. Television programmer a e is set to be close to a deal to buy 10 of the vice media for 250 million. Shares of Software Maker slack surging after raising its fullyear Sales Forecast or if the company said it signed more than 500 new customers, including dell. The stock has more than tripled since its ipo in 2012. Thanks very much. If you work in technology security, a cyber attack such as the one at jpmorgan chase, it is your worst nightmare. The hackers planned the attack in advance and used sophisticated tools to access Customer Account information. For more details, i want to go to washington, d. C. , where i am joined by jordan robertson. Also with us, Emilian Papadopoulos. He is of good harbor. Good harbor provides a cyber risk management. Great to have you both here. Give us an idea of what it is that happened at jpmorgan. Do we have any specific ideas . We have a lot of specifics now. We know a lot more than we did earlier in the week. These were professional attackers, highly skilled. They were inside jpmorgans network for at least three months, siphoning off data slowly and ultimately acquiring gigabytes of Customer Data from the web facing properties as well as the corporate network. We dont have numbers yet. We are under the impression it is a lot of Customer Data. They knew what they were looking for . It seems like it. The information we are getting is they have layer upon layer of custombuilt malware built specifically for jpmorgans networks. They wanted to be inside this network and they wanted to acquire a lot of data. They knew the Network Inside and out. Some folks suggested to me there may have been an insider element as well. We dont know that for sure, but they were highly sophisticated and very well prepared. Emilian, if you were asked to produce a profile of one of the individuals or group of individuals responsible for this, where would you start . Thinking about the group of individuals responsible, theres been a lot of reporting about russian backed hackers, and speculation about the russian government backing hackers here. It is important to know that we are beginning to get facts, but it is still early in the investigation and it is technically complex and difficult to answer those questions. If this were the russian government, there is a good probability we still would not know about this event. There are russian and Eastern European criminal organizations that are quite sophisticated and would be capable of a lot of what jordan described. That is the first place to look. We learned from a number of incidents in the past that you have to take the time to collect the data and information first. Emilian, jordan mentioned the possibility might exist there is someone on the inside of jpmorgan, current or in the past. Would you concur that is a satisfying area of investigation . It is worth investigation if the attackers knew about details about the inside of the network, how to navigate it and how to avoid triggering alarms, how much data they could accumulate. Jpmorgan, like all the big banks, is going to have extensive logs and data they will be able to go back and look at the networks. Jordan, how proprietary is the Jpmorgan Technology infrastructure compared to other banks . The signals we are getting is the jpmorgan has a highly advanced network infrastructure. One of the numbers that sticks out to me is they have 1000 people working on Cyber Security. It is a staggering number. Google has 400. Google has a very advanced Cyber Security shop. The network is highly sophisticated and well protected trade they hire the best of the best and they spent a quarter of a billion dollars a year on security. This is a well protected network. Is there a way to put this into context that would in a sense say, this attack was going to happen somewhere at some time, we ought to understand that things could be a lot worse if all a security was not already implemented . Thats right. This is an organization that knows what it is doing and cares about this issue. The numbers jordan cited came from jamie dimons ceo annual letter to shareholders. What we can take from this is, consider the fact that jpmorgan is under attack every day. All the big banks here. This attack seems to have gotten through. I think the important thing is to note that it is not just the big banks that are getting attacked. It is community banks, regional banks, companies in every sector. Most ceos dont have 250 million to spend on Cyber Security. The real question here is, what are the ceos supposed to do . What are they supposed to do if they call good harbor and get Emilian Papadopoulos on the telephone . Calling is a great first step. Ceos need to do a couple of things. First, make sure they have a point person who is in charge of this. That is not a decision you want to be making after something has happened. The second thing is, decide what is most important to protect and figure out strategies to protect that. We have to shift how we think about this, not a fortress mentality of keeping bad guys out. If you spend 250 million, a determined adversary can get in. Training for that and other executives in how to respond in a situation like this is a good use of time. What reaction have you gotten from Law Enforcement officials in the Government Regarding cyberattacks . Who minds the minders . This is something that everybody is looking at right now, all the big tanks, all the Law Enforcement agencies. We have reported there were four other banks that were hit as part of allegedly the same cyber attack. It points to a broader scale of the operation. You have a lot of folks trying to figure out if everything is where it is supposed to be. Do you put your personal Information Online . Oh, sure. This is one of my favorite subjects. Consumers do have a lot of protections online. Breaches like this are scary. This breach will be far worse for jpmorgan then it will be for their customers. Customers have protections under the federal law. You can get Text Messages to your phone when somebody tries to log into your account. There are pretty good protections for consumers. Businesses have fewer protections. For the average consumer, there are protections you can put in place. Thank you very much, jordan robertson. Also joining us, Emilian Papadopoulos of good harbor. Coming up on taking stock, welcome to the drone wars. Google is taking to the skies, highlighting a rivalry with amazon. And, counting crows the musical band will be delivering its seventh studio album on tuesdsay stay tuned for my interview with adam duritz. This is taking stock. Google takes its rivalry with amazon to a new level, into the skies. The search giant is testing a delivery drone force. Google is calling it project wing. Joining me is michael toscano, the president of unmanned Vehicle Systems international. How significant is this move by google to get into the air . This is another example of how serious the tech world is about utilizing Unmanned Systems to do the two things they do very well. One is situational awareness. The other is delivery. What does this mean for the industry, other than large orders for drones from google . For these Big Tech Companies to get into this field and put their best foot forward means they understand the challenges facing the aviation world. It is all about safety when you are using unmanned aerial vehicles. This is a case where they understand that anything that flies in the national or global airspace has to detect and avoid anything else in the National Airspace or global airspace. We have got to believe they understand that and are going to work on the Technology Necessary to bring that to fruition. It cannot fall out of the National Airspace and do any harm. As long as there is another company i hear sony is getting interested in having Unmanned Aircraft vehicles as well. Are they also going to be working on lawmakers in washington, d. C. To come up with consistent policy when it comes to governing airspace for unmanned vehicles . Pimm, as many people recognize, the technology has outpaced the regulatory. It is around the world. We have got to determine what are the right regulations that will allow for the utilization of this technology. The other factor you have here is there is a wide spectrum from the very large to those that weigh less than five pounds. You have to look at not just one regulatory law will fix everything, but you have to look at it on a case to case basis. You can contend that things that weigh less than five pounds dont need to be regulated at all. What would prevent another company from somehow hacking into the system of a drone force operated by amazon or google and actually taking over control of that drone . Thats a very big concern. That is a concern we have with computers, with cars that have computers. Anything that has an electrical system in it, you run the risk. Secure wireless is going to be key for any system that we have. This one happens to be flying in the air. As far as the actual Computer Technology that governs these kinds of Unmanned Systems, who is the leader in producing them . Thats a very interesting question. Theres a lot of manufacturers out there. The number being shipped on a monthly basis is something over 18,000 are being shipped every month, which is over 215,000 every year. People are buying these systems. Obviously you have dgi phantoms, the parrot drones, a lot of systems that are the favorite ones. If you go onto amazon, google, even facebook, you will see a wide variety of different platforms that are available. They operate from having six wings and to those having rotary wings. You can have a single helicopter or you can have 12 roto copters. These drones have photographic capability. Who then owns the photographs of various geographical areas . Someone takes a photograph of your backyard. You just hit the nail on the head. This is all about big data, the collection, analysis, storage, dissemination and destruction of information. How do you collect it, whether you did it from a man helicopter an umnanned unmanned helicopter, thats not really the issue. Who controls this data . How long will it be utilized, and when does it get destroyed . Michael toscano is the president of the association for unmanned Vehicle Systems international. Coming up next, meet stew leonard. How he created the disneyland of dairy stores. This is taking stock on bloomberg. Shopping for food in a grocery store, not always a lot of fun. My next guest is changing all that. Stew leonard has been described as the disneyland of dairy stores. Joining me now is the companys chief executive. I want to know that you took over the company in 1991, but you have been in the grocery business for much longer. Tell people little bit about your history. Its a family business. My grandfather started it. My father taught me. We try to stand on everybodys shoulders. I have a brother and two sisters who work in the business. We have people who have worked there 20, 30 years. It is as much of a family as it is a business. Right. Its fresh food. My grandpa started with a dairy. We bottled milk. We went to farms and got all the milk, and thats how i grew up. My father delivered it and decided to open a little retail store in 1969. It has gone from one retail store to many locations. You also have wine stores. We have four food stores we all run, and millions of customers a year go through the stores. This weekend will be real exciting with labor day. Labor day a big time for shopping people, stocking up, wanting to cook. What are some of the items that will fly off the shelves . Right now lobsters. We are 4. 99 a pound. We get them from maine. We have a lobster cam in our stores. It is a live feed right to the lobster dock. You get to see the lobsters being unloaded. You see the boats unloading the lobsters. We had one of our guys waved to us today. We are going to sell 50,000 lobsters this weekend. 50,000 lobsters. Labor day weekend, you know some of the products people will want to have. How do you manage the inventory . It is a lot different from 1969. You now have Computer Systems and more expertise. How do you manage what goes into Different Stores . Its amazing how similar it is to last year. Unless there are big weather changes and there is a big rainstorm one day, you can have a pretty good feel of what you will be ordering. There is daily deliveries of lobsters. If we dont think the sales are going to be where they are, we can ask a truck not to come down. As far as getting shelf space for all the other products in the store, that is competitive. People want to be where the customers are. How do you balance what you think will sell with what you think might sell based on new products . The key thing is seeing what customers are trending right now. For instance, pretzel rolls are really trendy and hot right now. Instead of a hamburger roll, it is a pretzel roll. You put your burger in it. Delicious. You will have a big display of pretzel rolls in the store this weekend. We will sell thousands of packages. Is this something where you put things out and then you get a response and say, i had no idea . Like today, i was down in the city. Im Walking Around and looking at these fresh vegetable juice stores. I saw one today that was a cool idea. They had an allergy remedy. We just saw this new item coming down today. I got to thank you for this. Trying to get the Fresh Produce that everybody wants. Everybody is interested in locally sourced products. What are you seeing . Organics is a trend, the local is even bigger. If you can get local stuff from local farms, people love knowing about that. We are sourcing all our local firms right now. I brought some corn down. You can eat that corn today. You dont need butter or salt on that. You dont even have to cook it. What is it like to go through a stew leonards store with stew leonard . I love stopping and talking to the customers. The team members we have, we have been in the fortune 100 best companies to work for. We have 2000 employees. I will be traveling to the stores this weekend. Walking to the stores to me is fun. They are making everything fresh. I love taking one of the lobsters. I stick it on my shoulder. I do a lobsters show for the kids. As far as the kinds of foods being prepared, not just stuff to take home but the prepared food in the grocery stores, is that growing . Very much so. People dont want to prep today. You can take a brussels sprout and if you shave it, slice it up and sell it, that is one of our best items right now. People are getting ready for brussels sprouts and lobsters. Stew leonard. This is taking stock on bloomberg. Im pimm fox. Lets go right to my radio cohost, carol massar. In ukraine, insurgents made more gains as russia dismissed nato allegations of its involvement. Vladimir putin says the rebel offensive is protecting civilians from army shelling. Ukraine says the separatists are receiving reinforcements from russia as they battle government troops. Argentine notice having a big impact on the bond market. The nations debt lost more of its value than any other developing nation. Venus williams was defeated at the u. S. Open today. Today, williams could not take advantage of her own power, just making 30 of her first serves. Back to you. When it comes to taking the road less traveled, counting crows front man adam duritz can navigate the way, with a career that spans more than two decades and over 20 million albums sold. Duritzs 14 hour workday helps make him a lasting figure in the Music Industry. I sat down with duritz and we discussed the secrets to his musical and career success. I go in a 10 30 or 11 00 in the morning. The rest of the band does not get there until midday. That gives me time with the producer to do extra work that needs to get done. We all get there and we Start Playing together. We will talk about stuff sometimes. A lot of the work we do on the record, it is all of us in a room together playing. Try to figure out how to turn this little skeleton, which is some chords and words, into a song that will work on the record. It is really collaborative and really driven. We beat the crap out of each other to do it. Its not personal. You have to demand a lot to make stuff that will last through any period of time. It seems like something is good enough and it usually is not. What have you learned from your work in film . Shrek 2, you cowrote a hit song there. And you been able to take anything from that experience and apply it to your music . The biggest thing i learned from film is to avoid working in film if possible. Why is that . In our situation, its very clean. Nobody else has anything to do with it except for us, never. From the beginning we have had Creative Control. There are a lot of people. I dont just mean creative people involved in making a movie. There is level after level of executives and everybody has to have a reason for existing. They will put opinions down there that are pointless and useless. It is understandable, theres way more money involved in making movies than there is in making music. There are levels of bureaucracy. I like making records because from the beginning we have been able to do it all by ourselves. No interference. Nobody having anything to do with it except for us. I really like that. Im curious about staying power. You guys have been around for more than 20 years, and popular. Some of your contemporaries dont have that kind of durability and track record. Do you think it is something in the music that was appealing to people over a long period of time . Is it something about the band where you guys just kept at it . When we first started we had a bidding war for us. Basically every company in the world offered as a contract. There were millions of dollars on the table. We traded all of that away. We went to geffen because they gave us a higher royalty and complete Creative Control. That seemed like a really good idea. It seemed like a better idea to invest in yourself than just owe a bunch of money. The Creative Control was what really saved us. Being able to do our own thing. A lot of my friends that late in bands, and played in bands, good bands theres a lot of pressure from the outside on what to do. You want to be a musician. Its nearly impossible. Theres no way you can support yourself. And then you suddenly get a possibility to do it and its like a miracle. It rarely happens anyway. The next thing you know they are telling you, you have got to do this and this, or else. A lot of people dont realize the power. You have the power to say no. No one will make you do anything, but theres a lot of consequences to that area we were too arrogant or stubborn to think that way. We got that control early on and kept it, and as a result we made the records that we wanted to make. I think people have responded to that. Our records, they are what we meant them to be. Im not looking back and thinking, if only we had not done this, this, and this. Its hard enough to stay in a creative thing like a band with 6, 7 people. You have to fight all the time because thats the only way to get creativity out there in front of everybody. If on top of that you have things like shame and regret over how you handled things, it just festers. We dont have that. When youre looking at the Music Industry now in general, are there any trends you find particularly encouraging or discouraging, whether it is the quality of the music you are seeing or the way the music business operates right now . Music is a different thing from the music business. This is a great time for music he cousin when i was younger, because when i was younger, when we were starting out, it was nearly impossible to be in an indie band. You could make one record. You could afford a tour once. Distribution and recording making a living. It was impossible. The advent of recording to computers, the inexpensive nature of that, and the fact that you no longer have to press up cds and send them around the country. Now you can just upload your music onto bandcamp. You dont have to worry about taking things back. For a young band, it means there are a lot of bands out nowadays who have made three, four, five records. They have had time to get really good, to mature. You still lose your job every time you go on tour. I dont want to minimize how hard it is for those bands. For a music fan, it means a band like me come along and they have made four or five records. Theyre like the rebirth of the pixies. I dont know if they will ever be really successful because the business even for successful bands is not that many records anymore. Thanks to adam duritz of counting crows. Also my thanks to bloomberg poisson julie hyman. The counting crows studio album will be released september 2. Coming up, build muscle by snacking. Meet the cofounder of Quest Nutrition. Cookies and chips that pack a punch. And coming up, i will introduce you to the founder of bareburger on what makes his organic orders fly out of the kitchen and onto the plates of consumers. This is taking stock on bloomberg. Im pimm fox. The u. S. Weight loss market is a 60 billion a year industry. One path to weight loss could be packed in the protein, eat more protein, eat less fat, cut the carbs. Tom bilyeu grew up in tacoma, washington with a family with morbid obesity. He cofounded Quest Nutrition, making highprotein, lowfat items looking to help you stay full and lose weight. He joins us from los angeles. Thank you for being with me on taking stock. Tell us about Quest Nutrition and the products you have created. For sure. We really do have that Global Mission that harkens back to how i grew up. My partners and i have come to the company for different reasons. My partner really wants to solve nutritional challenges, metabolic challenges that other people have given up on, deemed unsolvable. My goal is to help those people that are sliding towards ill health. That problem has become global. My third partner is the one that really makes that happen from a production standpoint. The three of us attack it from people, process and product, and then specifically the products we actually make, we have two lines right now, some Amazing Things imagine for 2015. Right now we have the protein bars and the protein chips. What is inside these cookies and chips and bars . We start with a little bit of magic, hope, and joy. [laughter] that is silly, but if you follow our community, that is how people respond. What we did was simplify it. We wanted to strip things out. If you look at how we came into the market and really took over rapidly, it was by not having things in the bars versus putting some magical formula in there. It was a simplification process. How do we take highquality proteins, and creating something that tastes amazing and allows you to control your macronutrient intake. Very lowcarb, highprotein, moderate to low fat. Where does the protein come from . There are a variety of ways that protein is derived. Where does your protein come from . The vast majority of all our proteins come from whey protein, which is a pretty fascinating relationship that anybody out there paying attention to the food space in terms of Investment Opportunity what is happening in protein, protein growth is outpacing cheese growth. It is going to be interesting in the coming years to see what happens as more and more people make protein by skipping the cheese step, which up to this point has been a very small number of hyper niche layers, but out of necessity you will see a lot of growth in that space. Tell us about the growth at Quest Nutrition. Are you 650 employees right now, 82 million in sale last year . Yeah, its phenomenal. The e magazine named as the second Fastest Growing private company in america, which is an incredible honor. We have had 57,000 growth in our first three years. 2014 is no exception. We continue to grow at an amazing rate, and doesnt show any signs of letting up. How many different types of products did you go through to hit on the flavors that you thought would be acceptable to the consumer . Theres a lot of proteins food out there, and some of it is downright awful. Yeah, and you really put your finger on one of the most important questions. We consider ourselves a research and Development Company first and foremost, and where we allocate our revenue to is echoed by that. Our R D Department is massive. It is completely unparalleled by companies our size in this industry. I dont think anybody has as much might and muscle thrown at that problem as we do. We really believe in that. We are a group of guys who are completely passionate about solving these problems and actually bringing value to the end customer, and that notion really is the essential theme. Bring value to the end customer, no matter how hard it is. I know one of your customers is former governor of california Arnold Schwarzenegger. Where do people like Arnold Schwarzenegger buy your product . Where is it available . Now our distribution is really beginning to get fairly wide. We started out in health and fitness channels, gnc, 24 hour fitness, places like that where you would expect to find a highprotein product like ours. We are going beyond that as well and were available at 711, is just one example. Continuing to very intelligently growing that Distribution Channel in a way that is respectful to the health and fitness channel, but also getting more ubiquitous. This comes back to as a company, we are missionbased. Our goal is not just to make a lot of money. Our goal is to end the global slide towards ill health. To do that, ubiquity is one of the problems we will have to solve. That is a big part of our ongoing distribution rollout. I want to congratulate you on your quest, tom bilyeu, cofounder and president of Quest Nutrition. Coming up, the founder of a burger chain that is not serving you a simple allbeef patty. Think lamb, elk, and bison. Coming up on bloomberg west, apple is expected to be huge product introductions but what about the new wearable device that apple may introduce . Will apple be able to push into mobile payments . All those questions will be revealed september the ninth at an apple event. Find out more right now coming up at bloomberg west. This is taking stock on bloomberg. Im pimm fox. The fast casual dining industry grew by 11 . It was led by such giants as panera bread, chipotle, panda express, and bareburger won a seat at the table two. They make organic burgers that are locally sourced. They started in 2009 and expanded to 19 locations. Theyre looking to add another seven by the end of the year. Im joined by the chief executive and founder, euripides pelekanos. We have got to start off with your history in the food service industry. You say you have been in the food business for two decades. Two decades. I used to stock the shelves, stocking sodas for about five years when i was 12 years old. Sort of the old immigrant story of the kids stocking the shelves in the deli. I have been working in cafes my whole life in new york. Even when i was in school, i was always working in restaurants. I took a little hiatus and became a teacher for two years. I opened up a nightclub in brooklyn before brooklyn was brooklyn. Ran it for seven years, had a great time. That was my mba in the real world. I ran a nightclub that never made any money, but i had a ton of fun. That is where bareburger was born, in that basement in brooklyn. What made you decide that was something you had to do . You dont want to be in any business unless you really love the business. It was out of necessity. 2008 rolls around. You know what happened in this country and most of the planet. I was broke. We were selling organic burgers in the nightclub and it was a huge hit. Thats the only reason people was coming it wasnt for drinks, it was for music, it was to eat the burgers. It totally collapsed in 2008. My brother and some of my neighborhood friends said, why dont you take the burgers and lets open up a restaurant just about the burger. Did you say yes immediately . I said, where my going to find money . What did you do . Maxed out all my credit cards. Borrowed some money for my mom and some friends. Put in my share. I did not expect much. It was a small restaurant, 45 seats. Opened up in the middle of the recession. People thought we were crazy, selling a 12 burger. But it was gangbusters. There were 200 people waiting outside the day we opened. It steamrolled from there. I was flipping burgers. I remember peeking through the window and seeing 200 people waiting outside and im like, how are we going to serve all these people . We are doomed. Its a good problem to have. Its more than typical beef burgers. Far from it. Describe what you would get if you went into bareburger . I can walk into any of our restaurants and i can see a vegan, vegetarian, somebody on a paleodiet, someone on a glutenfree diet and somebody who just likes a good burger and they can all sit at the same table. That has been the secret of our success. The organic, sustainable almost comes natural to us. You come to our restaurant and is a full experience. Fullblown restaurant. We want people to sit there for 45 minutes, an hour and enjoy the whole experience. How many locations, 19 . 19. We have one opening in philadelphia. I will be there shaking hands and making sure everyone is on top of their game. You want to add seven more . Seven opening this year. One of our most exciting projects is we are building a restaurant from shipping containers. I have ketchup running through my veins, and that is what gets me excited, to build a sustainable restaurant from the ground up. Not your typical brick and mortar building. Where will it be . Plainview, long island, sitting on one of the busiest lofts in long island. If euripides pelekanos went in and started ordering off the menu to showcase the food, what kind of food would you recommend people try . For the adventurous, i would say go for the elk and the ostrich. Go for the wild boar. For those who are not as adventurous, definitely go with the bison. Our beef is phenomenal, but you come to our restaurants for not your typical beef burger. Where did you go to get ostrich . There used to be ostrich. There was a handful of farmers raising ostrich in this country, probably about 15 years ago. It is such a fickle animal. The only place we can get it now is overseas, and we want to remain a local and sustainable company. We refuse to bring it in. Congratulations and well done. What are you going to eat this weekend . Im gaining a little bit of weight, so i think i will stick with the salad. Euripides pelekanos, the chief executive officer and the founder of bareburger. Thanks for taking stock. Im pimm fox. Goodnight