Against terrorism. The Trump Administration is proposing to open almost all u. S. Coastal waters to oil drilling, including those off of california and florida. The proposal released today by the interior department proposes 47 possible auctions of drilling rights. They are in more than 90 of the u. S. Outer continental shelf. The department of justice has issued a memo rescinding an obama era policy that helped states legalize Recreational Marijuana use. In states where marijuana is legal, attorney general Jeff Sessions has directed federal prosecutors to use their own discretion in enforcing federal law. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Bloomberg technology is next. Emily i am emily chang and this is Bloomberg Technology. Coming up, fall out from the intel chip saga, how a design flaw could impact almost every computer, smartphone, and server out there. We will tell you what you need to know. Plus startup is looking to take , one up the likes of tesla, google, and uber in autonomous driving. How startup aurora is already Testing Systems on audi suvs. Industry watchers are closely following apple next step but its future iphone batteries could cost the company billions. Intel stocks under pressure as followed continues from the flaw discovered in the chip design. The company and other chipmakers and Software Companies are coming to grips with the vulnerability that leaves and incomparably massive number of devices susceptible to hacking and slowdowns. Google discovered it could give hackers unauthorized access to Sensitive Data and the remedy could drag device performance. Intel says fixes are coming over the next few weeks and no Material Impact to its business. Microsoft says it has issued a , amd, andix for intel arm chips. Joining us is our tech reporter ian king. Put this into context. Walk us back through the timeline. When did intel find out and how long has the Tech Industry thing then keeping this a secret . Google and academic researchers found that this may be a problem going back to the middle of last year. The idea was to get together and find a fix, then we put that fix in place, and then we say, this is what happened and we sorted it all out. Do not worry. Unfortunately, news intervened and people found out. Now they are in this scramble mode where intel was forced to come out and say it was not just us. And now we do not have all of these fixes in place. We do not know the impact on computers. A lot of concerns. Emily are there any legal issues . Nobody has said anything yet , but this is the kind of thing that classaction lawsuits are designed for. Regulators might look at this and say, hold on a minute. You have one or two companies who everything depends on. Why are we giving them so much power and so much influence and the potential to damage . Emily we are talking about almost every computer, smartphone, and server out there. What are the impacts . What does this flaw mean . There are no reports that anybody has exploited this vulnerability yet. People did not know about it, maybe they were working on it and maybe now they are working on it. The important thing is that if you have a computer at home, you have areas on the computer where passwords are stored, where Encryption Keys are stored, in a normal course of events, programs you use do not have access to that data. This feature of chips allows, in theory, access to the data for highlevel programs and makes it more vulnerable result. Emily intel says they will not have a significant Financial Impact from this. How could that be . In the past they have recalled chips like a carmaker. This time they say this is a feature of chips and it makes them faster and they work as they should. We have no liability. Emily now another thing that does not look good is that intel found out about this six months ago. The ceo sold a very large part of his stock later in the year. What happened . This has created a lot of attention. If you look at the filings as we did, this was a regularly announced plan. Executives usually set out a plan where they say in advance, i am going to sell this amount of shares, and that ensures them against accusations they are trading on insider information. The timing of this and whether intel knew this would be such a big deal and affect the stock, that is all up in the air and we cannot say with concrete basis that he knew it was coming. Emily is it true that he now holds the minimum amount of stock . That is correct. Emily is that typical . We are at the lowest point in five years in terms of his holdings. Emily ok. Apple, google, microsoft, all working on fixes or have completed fixes. There are people who say, they the software will completely fix this, however not everyone is going to update their devices. Right . What are the longerterm implications of it . As you said earlier, this may affected the performance of computers. Fix it and maybe your older machinery slows down in a way that is no longer useful. It is a difficult situation for a lot of computer owners and computer operators to be in. At the same time, there are some details, and we do not know how it will play out. One of the biggest concerns is how data centers will be impacted. Because what they do naturally on the have three users same computer. One of the concerns is that this issue makes that less safe. That could have a big impact. Emily all right. Our tech reporter ian king who covers the chip industry. Onnow there will be more this. Thank you so much for that update. We will talk about this after the next break. But first, Mark Zuckerberg said his personal goal for 2018 is fixing facebook. Zuckerberg posted his objectives on his facebook page. The social network has come under criticism for failing to prevent russia from meddling in the 2016 u. S. Election and not doing enough to curb cyber hate. Zuckerberg said his company has a lot of work to do. Coming up, more on the bug that may impact every computer processor made since how should 1995. Companies and consumers react . And Bloomberg Technology is Live Streaming on twitter. Check us out 5 00 p. M. In new york and 2 00 p. M. In san francisco. This is bloomberg. Emily sprint has hired Michele Cohen as president and chief financial officer. The 65yearold left a company as investors grew unsettled over their profit outlook and debt load. Sprint shares falling 5 on the news in thursday trading session. Fallout continues from the intel chip saga. The company says it is working with hardware makers and operating systems on the issue and will design future chips to avoid this problem. Tech giants like microsoft, google, and amazon say they have issued updates for their cloud and software systems. We are still waiting to hear from apple on this flaw. We reached out for comment from apple. Joining us now is brian white and bob odonnell. Bob, as you say, this story has more nuanced than intel did not tell us something. How so . What we are talking about is a future, feature that has been a processes for over 10 years and nobody discovered it until now and it is used in intel, arm , amd designs, and arm licenses to apple, qualcomm, everybody is impacted. What i find fascinating about this whole story is that i was brought in a couple of weeks ago by the companies to get a sense, because they knew it was a big deal, and in 20 years as an industry analyst, i have never seen Companies Come together in three a briefing to talk about the issue and how they are addressing it as an industry. To me, that is a very important side of the story that has not been told. There are a lot of problems to be clear, but there are interesting ways the issue will be mitigated. I think we will see discussions from apple and other people. Emily do you think they should have told consumers . I think they were going to. Emily it has been six months . The transparency of the industry is working. Together. Working it was responsible disclosure, which is important. They found the vulnerability and inform the manufacture and working on a patch and were planning to announce it. We believe next week, but somebody leaked the information, and now it is public. It shows that the community is taking more seriously security and this is ubiquitous, the processors are in everything we operate. If there are issues at this level, where are there not issues . Is thisow serious issue in terms of impacts . We do not know anyone exploiting this flaw, but we also dont know a lot things about attacks happening as we speak. It is a fair point. It still remains to be seen. There are some variants are worse than others. Very three allows people to get access to private data. That is the most people are one trying to address immediately. This has been out there forever. We are seeing it being addressed now. In theory, there are bad things that can happen, but the fact it took 10 years to discover it , should give you a sense of how hard it is to exploit it. Emily who could exploit this vulnerability and what could they do with that information . I would suggest that those who have significant resources, for example, google has significant Security Team and they can spend the time necessary to find this vulnerability. Those actors such as nation states may have the capability to know how to actually access and take advantage of this flaw. And i also think what is important here is that there are no known attacks that are ongoing right now. We are still unsure if you can execute this remotely or you need to be on the user machine. So there is a lot we dont know, but i do think that it reinforces two things to me. One, increasingly the software they are operating is secure. We are looking at kernel level problems. We know that if a determined adversary wants to gain access to our machines, they will gain access. There is no way they will not find a way in. This is another way they may potentially be able to exploit. Emily what should consumers do . I think the consumers need to update. There will be two types of updates, Software Updates and hardware updates. It is very easy to take down your software update. We do it often on our iphone and everything in the house. I think the hardware update may be more difficult, depending on how they push it out. It is going to be straightforward given the attention this has received. I think the manufacturers are all over this and we will be protected. However, what is important is that it reinforces that you need to protect your data and you need to understand who is accessing that data. Just like we do with our personal data at home, do precautionary measures for what is most important and make sure that only certain people have access to it. This what do you think foreshadows for the year ahead in cyber . I think it will focus a lot of attention, in some ways, i have seen people write articles, that say, as bad as this is, it will lead to Better Things , because what you do when you find weaknesses is you redesign ways, in different rearchitect software, rebuild the hardware to do this. To raise a point you raised earlier, it is common in the security world for people to tell people about an issue and give them time to fix it. Actually, normally what project zero does is give people three months. Because this was deep level stuff, they needed more than three months, and they were in fact scheduled to do it january 9. Next tuesday was the scheduled date, which was six months pass when they got it because they knew they needed extra time. We will see more awareness of how the process occurs and more sensitivity to what is going on and people figuring out how they do this. We need better update policies , because it is going to be hard. The firmware stuff can be hard update. Apple will do it with a os combined. With a pc, you have to do a bios update. Emily quickly, we know companies are cooperating and we know that vulnerabilities being discovered are more specific, that hackers are Getting Better at their jobs. If anything changing . Less or more of a threat . It inis important to keep perspective, understand your threat and understand what you need to do to make sure you are adequately protected. And remember to protect the data. That is where security needs to live. It is not about protecting the kernel, the software. It is understanding the data and understanding Human Interaction with the data. Just keep in mind that it is a layered approach. It is also basic training. It is all of the elements together that over time will increase our cyber hygiene and make us better. Brian white,ght, great to have you back on the show. Bob odonnell, you are sticking with me for the hour. Coming up, the race for fully Autonomous Cars is on. Annual global sales could reach 1 billion by 2025. This is bloomberg. Privaten deal news, Equity Firm Silver Lake has taken a majority stake in wp engines. Silver lake invested 250 million to help the web tech startup. Engines they built tools to betr operate websites based on wordpress and opensource to use and manage websites and applications. Driverless cars are prepared for liftoff. According to a new study the company says Autonomous Cars are launching first in the u. S. In the next couple of years and will reach one million in annual global sales by 2025. That number will increase drastically with analysts Jeremy Carlson still with us is bob odonnell. What makes you think they will run up so fast, multimillions in 2040 . We took a close look at a lot of factors. Technology, regulation, consumer interest, and all of them will help bring the technology to market early on. We expect over the later parts of the forecast, into the 30s, that the servicebased Business Model, mobility as a service is really going to start to drive demand for a lot of the alternatives to vehicle ownership. Emily are these cars that still need a human driver in the driver seat . Know, these will be fully Autonomous Vehicles. In the industry, we align to a standard called the levels of automation by the society of automotive engineers. These are level four and level five, which means they can go places without a human driver behind the wheel supervising or controlling or anything. Early on, they will be limited to certain areas and certain speeds and certain neighborhoods. But we will certainly expect that to expand over time, and relatively quickly. Emily bob, do you agree with these numbers . First of all, that is seven years from now. Most people cannot think two years from now. It is interesting, you have the auto and Tech Industry going, we have Autonomous Cars and they are here, and people say 2021 and some people say 2022 and now it is 2025 before we get to 1 million. It is possible to see the numbers by then, but so much has to happen between now and then. Here is my concern. My big concern is around any fatalities or injuries caused by these cars. If that happens early on, unfortunately you will see regulation after regulation, and that will push all that stuff out. They could completely change this. Emily when it comes to regulation and safety, what needs to happen between now and 2032 hit your target . There are two parts to the regulatory puzzle we have to solve. Bob is right. There is work that needs to be that needs to be done initially and plenty of work that will need to happen over time to continue to create these paths for deployment and allow deployment at scale. There are two factors, the autonomous technology, allowing rules that would regularly govern drivers to govern a machine. And second is the Business Model side, where we are seeing some restrictions in some markets around the ride hailing Business Model that we expect will contribute to quite a bit of that demand early on. And a good portion of it over the length of the forecast. Emily bob, there are so many issues as we have discussed, so many different manufacturers and companies vying for a piece of yet, event, and though many of the cubbies have been working on the cars for a long time, we are still not nearly there . No, it is incredibly hard to be this right and we are talking about people lives. Talking about computers and data. Now add in the equation of this stuff impacting peoples lives. It is significantly Higher Standards for safety and for backup and everything else, backup systems i should say. And so, i just think it will be a very challenging path. You have plenty of Tech Industry observers that has said this is a 20 year thing, a 30 year thing, and we are getting too far ahead of ourselves and setting unrealistic expectations. I think the Ridesharing Services and robo taxis will be the most, wait most people will interact with this first. Emily how many cars are personal transportation and how many are robo taxis and airport shuttles and the like . Exactly. Early on, we expect the vast majority of these fully of pharmaceuticals will be deployed, Autonomous Vehicles will be deployed, mobility fleets which allow manufacturers and operators to do more with the vehicles. You understand where they are being operated, who is operating them, and you can better understand the economics of repairs and maintenance of the vehicles. It means you are able to learn from what the vehicles are doing much easier than you could if they were in the hands of consumers. Fundamentally, there are a lot of reasons that make us believe mobility as a service, specifically the ride hailing Business Model, is the way the vast majority of consumers will interact with fully Autonomous Cars for the first several years, and probably well into the middle of the 2020s. But certainly over the end of the forecast horizon, again 20 years out from this point, we would expe