Trump and democrats. It suspends the debt limit and keeps the government open through december 8. President trump spends the weekend at camp david hosting members and their spouses. The press secretary called it a working weekend and says updates on Hurricane Irma are on the agenda. The transportation secretary who is married to Majority Leader Mitch Mcconnell may not attend. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Emily i am emily chang and this is bloomberg technology. The fallout from equifax. The data of 143 million customers may be compromised by a massive data breach at one of the largest credit monitoring agencies. We discussed the unprecedented damage control operation underway and the potential risks ahead. Chinas cryptocurrency coup de grace. After dealing the market a major blow, chinese regulators behind the great wall. We examine the ripple effects. With just a few days to go until apples most significant Product Launch in years, we will preview the event and new technology. First to our lead. The massive cyber attack on the facts may have compromised the privacy of more than 140 million u. S. Customers or half the u. S. Population. The Stock Plunged nearly 13 today amid mounting outrage over the breach. Thursday evening, a proposed classaction lawsuit was filed in oregon in federal Court Alleging equifax was negligent in failing to protect consumer data. There is News Executives sold nearly 2 million in corporate stocks before disclosing the attack. It is one of the three biggest Credit Reporting Companies that generated 3. 1 billion in revenue last year. Congress said it will probe the attack. The new York Attorney general said in a letter to the company this. The breach has potentially exposed Sensitive Information of nearly everyone with a Credit Report and my office intends to get to the bottom of how and why this is occurred. Joining us, our guest host, bob odonnell, as well as tom giles. You have been following this for the last 24 hours. If you have a credit card, should you assume you are affected . Yes. This is the Credit Rating agency that keeps every piece of information about every financial decision you have made, good and bad. Every credit card you open or close, it is their job. It is there one job to safeguard this information, to store it, and to disseminate it. We have no control over that. They have let the public down in the most profound way. This is what lawmakers are saying. This is what the public is saying. There are some which outrage over this. In a time when d. C. Cannot agree on anything, everyone is in agreement over the fact these guys have blown it, massively botched things, and need to be regulated. That is the message we are getting uniformly from d. C. Emily they have a website you can log onto to see if you have been affected. The website did not work and you were signing away your rights to sue them in the fine print. Ridiculous. This is their job. This is the most massive cyber attack we have seen and the most important in the fact that the type of data hit was so critical. This is not just email addresses. This is your Social Security card. Exactly. It raises huge questions not only about regulation but we also have to start thinking about different ways of doing identification. These are issues that have come up in the past. Why are we still using things like Social Security numbers . We have to think about digital identities of a different sort, all the things we have been talking about. If this does not drive that forward, i am not sure what is going to. Emily you may not know equifax even has your information because they get this information from banks, retailers. They may not be getting this information directly from you. We are talking about Social Security numbers, drivers license numbers. Talk about the stock situation. Executives sold stock. They found out about this in may. Executives sold stock. The Company Found out july 29. Within a few days, Senior Executives at the company were selling stock. These were not part of prearranged sales like we see many times. To be fair, the company has said to us those individuals, the c. F. O. And a couple of other highranking individuals, did not know about the breach. Emily why not . Why did they not tell us sooner . General counsel knows. You would hope the c. E. O. Knows. What equifax is saying is they did not know about it. It is a great question. Why shouldnt all of the Senior Executives know about something . It is possible maybe equifax did not know the scale of the breach. People are attacked all the time. We are constantly fending off people trying to penetrate our system. We dont know exactly whether there was wrongdoing. Even if we did not know how much was done, the fact it is a Credit Reporting agency that took this long is clearly not ok. I understand your point. You are right because they do not often know, but fundamentally they knew they had been attacked. That is going to affect a lot of people. They did not tell people. Over the last month, who knows what could have happened to people who did not know about it. Emily exactly. People are feeling helpless. What can you do . There is a website. Theres a phone number. Equifax is offering monitoring services. It is offering emily without waiving your right to sue . When you go in there, you automatically by signing up are agreeing to arbitration. How enforceable that is because there is already a massive class action brought against them, how enforceable, i am not sure. I dont know whether you will be able to sign up. Lawmakers are incensed over this. It does feel underhanded and sneaky. You, in desperation, are trying to find out if you are affected. People may not be reading the fine print. I was one of the people that got hit by one of the previous credit card attacks. Ironically, i already had an account with equifax given to me for free by i forget which one. Emily what are you doing . Im going to check. I have not checked in a while. The bottom line is all you can do is monitor all of your credit card charges and everything else. That is very tedious. It is still not a great answer to the fundamental problem. It is very important you keep track of what is coming in and out of your accounts. Check your credit cards. Check your bank balance. Keep close tabs on it. It is a pain, no question about it. But you need to be vigilant. Emily so upsetting. Tom giles, thank you. Keep us posted. Bob odonnell of technalysis, you are sticking with me. Qualcomm lost the bid. A federal judge in san diego denied the request for an order that would make the contractors resume payments after apple stopped reimbursing them. The judge rejected qualcomms proposal to limit the legal fight with apple to the u. S. Say not all the issues can be resolved by american court. Apple has accused them of monopolizing the market for chips and withholding 1 billion in retaliation for cooperating with south korean authorities. A major wrench has been thrown into chinas cryptocurrency market. This is bloomberg. Emily now to bitcoin, falling as much as 7. 3 in the u. S. Friday after a report claimed the Chinese Government is planning to ban exchanges. It is a blow to the Global Cryptocurrency market. Earlier this week, china outlawed initial coin offerings. Joining us to discuss, olaf carlsonwee. Still with us, our guest host for the hour, technalysis president bob odonnell. You run the largest Cryptocurrency Hedge Fund in the world. What does this mean . I think it is still unclear what the full picture looks like out of china. It is clear the Chinese Government has banned ipos or initial coin offerings. I think it is still unclear what the status is of Cryptocurrency Exchanges in china. I do know that many exchanges have proactively delisted coins in response to that regulation. Emily i know you are no stranger to volatility, but what does this mean for your business . We operate in high volatility markets. We are prepared for this sort of volatility. If you look historically, this is not that unusual for the large cryptocurrency space. Emily we were talking a couple of weeks ago about regulatory issues. Do you think other countries will follow china . Bob it will be interesting to see. China went this way and russia went the other way. There is a lot of discoveries to going on. There are still a lot of fundamental questions. You have issues with people not understanding this. Whenever there is a lack of understanding, that creates uncertainty. Of course, there is the association with anonymous payments for nefarious purposes. The other issue people have to reconcile and even i admit im curious about. When we look at the different currencies, it feels like everyone has decided we will mint our own money and build up this club of people. It feels a little pyramid like in a way. Emily i want your response to that. Before you do, russia getting into Bitcoin Mining this week is what bob was alluding to. What do you make of the skeptics perception . I do think there is a lot of noise in the space. There are a lot of people working on a lot of different things. It is often unclear what is happening. Amidst a lot of this noise and lots of different people working on different projects, there are within this some really brilliant technological visionaries building the future of our Financial Systems. Not just in the United States but globally. Emily how much value is it going to have . Is there more value in the blockchain or in the actual monetary value of bitcoin and other cryptocurrencies . This technology is much bigger than any individual company. I think this is one of the major killer applications of the internet. In my mind, the opportunity space is in the trillions of dollars. The value of the underlying protocols that power the future Financial Systems of the world over the internet i think will be worth trillions of dollars. Bob i can see that happening. One of the questions i have and still struggle with is, how many blockchains of different currencies can the world support . It is the classic case of this may be a great idea but a great idea times one million becomes a lot less great idea. That is what it feels like we are heading for. I agree right now there is a lot of competition in the space. It is a lot of Different Developers launching protocols vying to create the platform that becomes the primary one used for future applications. There is a lot of competition right now. I think that is part of why there is so much noise. What that leads to is the best technology and teams rising to the top. Bob does it lead to the fact that as there is one internet, there is ultimately one blockchain . Not quite. There are lots of websites, like there might be lots of different tokens or cryptocurrencies. Emily would all of those be on the same internet . It gets complicated. You have individual blockchains which are basically individual ledgers. Now a lot of technology is coming out that will allow you to interact between the various blockchains. You can have logic on one and trigger an event on another. I think the future is hard to foresee what will happen because this technology moves so quickly. Emily we know how china is approaching this and now how russia is approaching this. What line do you have on how the u. S. Government will approach this . It is obviously a great interest to you knowing where to put your money. In general, regulators in the United States have created thought the legislation around this area. Recently for example, the sec put out a memo regarding initial coin offerings and tokens. I thought it was really thoughtful and a wellresearched memo. I am optimistic coherent regulation will be put in place. That will be good for innovation and the industry because it will create a framework through which entrepreneurs can act in good faith. On top of that, i dont foresee that regulation being draconian and squelching what is an Emergent Technology with a lot of potential. Bob do you think it drives the need for some sort of centralization . Even with the internet, you have icann that gives out addresses. There are a few centralized organizations. That seems to be lacking in blockchains and cryptocurrency. It is a complicated question. I fully agree with that. Governance of the underlying blockchain protocols is very interesting. A lot of development is going into how to determine the path forward for the protocols. Some new protocols, for example, one has voting using the underlying cryptocurrency to determine the path forward for those protocol rules. Emily im going to try to digest everything you just said. Olaf carlsonwee, thank you for continuing to school us in cryptocurrencies. Great to have you on the show. Bob odonnell is sticking with me. Football season has kicked off. Fanduel is gearing up for a busy season. Next, we hear from c. E. O. Nigel eccles on his productions for upcoming matchups. This is bloomberg. Emily blue apron has lost its second biggest investor. Capital world investors has sold a 12. 9 stake in the company. Blue apron has struggled with production issues and recently imposed a hiring freeze. Shares have fallen more than 45 since going public in june. Thursday nights game between the patriots and chiefs marks the kickoff of the 2017 nfl season. The matchup served up a surprising result. The start of the season also means daily fantasy football is back in full swing. Scarlet fu caught up with fanduel c. E. O. Nigel eccles in new york and started by asking about the upset win and effect on fantasy leagues. I think we will see a lot of exciting stories. From a fantasy angle, that is what you get excited about. Suddenly, i need to have that guy on my fantasy team. What kind of links have you seen between declining nfl tv ratings and engagement in daily Fantasy Sports . Very interesting. Last year, we saw significant declines in nfl ratings. A lot of talk was about the election and a onetime event. I think the more interesting thing is viewing among millennials has declined for three straight years. We are seeing a shift among younger fans who are saying i will not sit for 3. 5 hours and watch sports on television. It needs to come to me. I think we will see a continued decline unless the leagues focus on away of engaging the millennials to grow their audience. It was a shock for the nfl to see that kind of decline in ratings last year. What league do you think understands it the best . The nba has a strategy of we need to be where the millennial is. We want to be on facebook. We need to be on snapchat. Some say theyre giving away too much content. I dont think they have a choice. They need to be where the consumer is. I will give you another example. Nbc made a Huge Investment in snapchat. They said when the olympics come around, our biggest fear is they do not even know what happened because they were on snapchat. They were not on tv. Nbc has done a great job of being on snapchat where the audience is so they know the olympics is coming. Many offerings for the sports fan. You and draftkings called off the merger in july. Both companies are going at it on your own. What are you doing differently now from before the planned merger . There are a number of things we have been working on for years. One of the biggest ones is social. In Fantasy Sports, most people play because they want to play in a league for social reasons. A variant of that created excitement with big prize pools. What we felt was missing was the ability to do that with your friends. What we have launched this year allows you to create to play with friends but play in a daily format. You are not stuck with an injured player for the season. Next week, you can pick a new player. You can play through the season with your friends. More flexibility for each player. And playing with your friends. We have seen a lot of ads pop up. You and draftkings spent a lot of money on advertising. What did you learn and what adjustments are you making . 2015 was about getting the brand out there. 2014, people have not heard about us. 2015, that changed. It was very successful. It brought on other challenges we worked through. What we have done on marketing since then is to focus on why you play and put the product front and center in the ad. You will see the product is in every shot. Our players love the product experience. On nfl sunday, our players will spend at least an hour on our app on average. They have it open all the way through the game. They love it. We talked to our players and say if you had to delete apps, it is one of the top seven apps that gives them so much excitement and enjoyment that they need that. Emily the fanduel c. E. O. , nigel eccles. Coming up, more on the equifax hack that may have struck nearly half the size of the american population. We take a look at the state of Global Cybersecurity next. This is bloomberg. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. Mark i am Mark Crumpton in new york. You are watching bloomberg technology. Lets begin with a check up first word news. Florida gov. Rick scott is urging residents ordered to evacuate to get out now. Scott says people should do the right thing for their families. Irma could be the most destructive storm to hit flo