Begin in august. The state of michigan is paying all the water bills for flint residence this month. Hell wait toays debate the official president ial nominee and not candidate bernie sanders. The senators campaign released a statement reiterating its interest in debating trump, saying the campaign has received two offers by tv networks. Global news 24 hours a day powered by our 2400 journalists in 160 news bureau around the world. I am mark crumpton. Bloomberg west is next. Emily im emily chang and this is bloomberg west. Coming up, the plot thickens around the 81 million heist be a bangladesh central bank. Is the infamous group behind the sony hack behind it . Plus well speaking to a former employee about his experiences in the facebook unit. Plus are cell phones increasing our risks of cancer . Some scary findings for the very first time. But first to our lead and i report from the Cyber Security firm that suggests a recent hack on the central bank of bangladesh in which delrds 81 million was stolen. This may be just the latest in a string of attacks on a swiss network. The report links the bangladesh breach to an october attack on a bank in the philippines and the same group are blamed for stealing millions from an ecuadorean group. So how vulnerable is the rest of the financial industry . Im joined by symantecs technical director and security c. E. O. Eric, i will start with you. So your research linked the swiss hack of the central bank of bangladesh to this philippines bank. Tell us more about the connection you found . Thanks, emily. Yes, we found the malicious applications in bangladesh as well as vietnam and in the philippines now had similarities and shared code with code used in south korea to wipe a variety of banks and broadcasters there as well as the sony attack. Emily the chairman of the s. E. C. , mary jo white, has said she believes Cyber Security may be one of the biggest threats to the industry. She says policies and procedures are not tailored to their speck rinks. So how do you think, how vulnerable is everybody else . Two great questions. It really doesnt matter who is behind it. Thats for Law Enforcement to figure out who the criminals are. What does matter is that this organization has been broken into, and whether its lazarus or somebody else, theyve exposed flaws in how they handle their swift data. I think the criminals did something intelligent in going after easy to pick institutions without a lot of international stature. Its a really elegant hack. What it really proves, the swift is 32 years old and its based on a 1970s and 1980s trust model where banks were very small entities. No one predicted in 1973 that today a bank would have thousands of partners. Every bank is highly porous. You have so many mobile employees. Very few organizations have done a proper risk analysis. Theyre still working on 5, 10, 15yearold risk models that need to be updated for the modern era. Emily what is the evidence that this particular hack could be linked to north korea and this particular group linked to the sony attack . Yeah, well, specifically the code inside the incident in bangladesh, there was a little bit of code inside there and its been traced back to multiple other attacks including the sony attacks. The sony attacks were attributed by the u. S. Government to north korea. You cant tell if it is north korea itself, but the fact that this is potentially a nationstate really raises the bar now, changes the threat model. Weve never seen a nationstate go after direct financial gain in the past. Typically theyre things like espionage or sabotage against other countries. Now we have one going after financial gain directly. Emily what do you make of that . It does seem particularly unusual for a statesponsored attacker especially to go after money rather than data . I agree. I dont know that this is north korea or somebody else doing it. It could be it was sold or licensed to somebody else. At the end of the day, who is behind it is really not my concern. How we can protect our clients and the industry is what we focus on. At the end of the day it doesnt matter if a kid carjacked your car or a sophisticated gangs. What is important is theres been a breach of multiple organizations and every Organization Needs to review their policies and protections and decide what is the comfortable level of risk for them. A lot of reluctant because it is painful, expensive and at the end of the day its usually embarrassing and thoughtprovoking because most people dont realize just how open and vulnerable they are. Emily could other big banks be at rive, like the fed . Yeah, absolutely. This is not the first time. Weve seen banks including u. S. Institutions breached in the past. This simply raises the stakes now. They tried to transfer 1 billion. They were only able to transfer about 80 million out of bangladesh. They need to review their security even more so today than before. Emily so where do you think this money could be going . And if somebody is holding on it this money, isnt that something that could be easily tracked down . I agree. The biggest challenge they have is not getting too greedy. Had they actually not committed the typo and gotten the 1 billion, id be really curious to see how they could launder the money. There is an old saying in criminal organizations, its not how much you steal, its how much you get away with. Unless they have already built an infrastructure for serious largescale Money Laundering through panama, caymans, or elsewhere the it could be a trial run for much larger thefts or could just be a gang of opportunists who planned really well and attacked lowhanging banks that got caught with their security around their ankles. Emily interesting. Thank you both for sharing your thoughts with us today. A story we will continue to physical. To follow. Shares of apple fell slightly in trading friday after the shares were slashed. But before that the shares had been making a bit of a comeback. Apple considered a bid for timewarner last year, sparking immediate action in timewarner stocks. It sounded like a oneoff comment in a single meeting that didnt go very far. If you look at apple and the scale. Businesses that they would want to be looking at, i would think if theyre looking to get into video they would be looking at a platform more than a content business. Emily coming up, does twilios i. P. O. Mean something . And how to make your own music videos. Work, work, work, work. Emily one of the largest strikes in u. S. History is over. Verizon reached a deal with its two labor unions on a new deal. This means 32,000 land line employees may return to work next week. Full terms were not disclosed. The Company Likely did not add any fios or broadband customers during the strike. It may way on the monthly jobs report set to release next week. Rare i. P. O. In the technical landscape. Twilio filed papers with the s. E. C. It works with major tech players like uber. It plans to list on the New York Stock Exchange under the Ticker Symbol twl. The slowest i. P. Rate since the recession, 73 Companies Went public lick in the same period last year. When you look at the financials of twilio theyre losing money. Did they want to go public or did they have to, max . Probably a little bit of both. Normally when there is a little bit of risk in the market and people are nervous, a business to business play that doesnt have the vicissitudes of having to mace off is preferred and theyre trying to get debt or suck it in and jump out this and hope that the i. P. O. Market is kinder to them than subsequently to folks who went out in 2015. Emily there have only been a couple tech i. P. O. s next year and out the next six months, maybe six more. Will twilio open the door for other companies . Or are they just not going to go . Definitely an all eyes scenario. If this is a runaway success, it will inspire folks who are in need of going out but havent yet. Some got their first funds 10 years ago, which means theyre sitting there and need and want liquidity. But we dont know how many are out there. Its a little more secretive approach than it used to. We do not expect 2016 to be one for the record books. Emily reports are that they hired bankers to look into this. The only company we think may actually go public is bluecoat, and what do you actually watch . Any specks . We definitely watch nutanix. There is going to be activity at some point. There are a lot of Big Companies that would have been public in other eras, nearing or over 10 years in age. Normally the v. C. Funds that back these companies have about a 10year duration with two plus companies. They can add a year without runing a foul of partners or investors. We see a lot of big names that would normally be public, like uber or lyft. We definitely think nutanix has a chance to come out. Private company multiples are a little bit higher than Public Company multiples and we need to see that worked out better than it was last year before the key names that can track their own course are ready to hold their breath and jump here. Emily as always, max, thank you so much for joining us. Thank you. It was a pleasure to be here. Emily in this edition of out of this world, space x has Just Launched its fifth rocket of the year. Landed it on a barge 400 miles off the florida coast eight minutes after liftoff. They had already successfully landed three of the rockets. The falcon 9 blasted off carrying a commune satellite, taking space,closer to their ultimate goal. No other company has managed to launch an orbital rocket. Astronauts tried to figure the bigelow air space pod approximate with air on thursday but gave up after two attempts. Officials say friction between the two layers kept the chamber from expanding to its 10foot size. Its hoped it will one day help astronauts orbiting earth. Coming up, a c. E. O. Wlage the allimportant question for Tech Companies these days. The shift to the cloud . Emily a potential deal in the making. Marchetto shares soared friday on two separate reports of a potential acquisition of the cloudbased software. Street insiders cited people familiar with the matter saying microsoft is ready to bid. Bloomberg had reported earlier this month that they were exploring a potential sale. Their customers including charles schwab. One of its smaller rivals was also out with results. Today, netap was out with earnings. While the initial selloff didnt last long, shares were still down about 20 from a year ago. Joining us with more on the health of netap, george kurian. Thank you for joining us. Thank you. Theres been a lot of changes in the market, one the move from solid state or flash storage and then how people want to manage data and the cloud. Weve seen real strong acceleration in that part of the business. Emily youre saying that this is just temporary for now . Weve laid out a plan to transition from the Pure Products which were the pro dominant part of our business a couple years ago to the strategic products the were really pleased with the strategic products. Emily the problem is there are a lot of competitors now. How do you compete . Its always been competitive. The most important thing when you think about competition is think, focus on the customer. Were enabling them to take advantage of. New ways to manage datea. Hike hybrid clouds. What we allow them to do particularly is to store their data protected and to meet the requirements of data sovereignty. Emily theres been a slowdown . Certainly in the macro environments. And that does affect peoples planning for the rest of. Fiscal year, so they do transformative projects that move their business forward. Were really focused on capitalizing on those trends and growing with them. Emily one of your most direct rivals is e. M. C. , which is about to merge with dell in the largest merger in tech history. What do you think of that . Its a very commex complex transaction. Its a great deal for the investors but were not sure its great for the customers. With you saw some of that in the results of the Fourth Quarter this year. Emily its interesting because h. P. Went in that direction, then now went in another direction. Is that good . We believe that in times of really rapid market change, focused companies are set up better because you can rapid lir respond to customer requirements. Thats what were doing. Were pivoting to where customers warrant to take their i. T. Journey. Emily we talked about the lull in the industry. What is your take on what you have seen in the Public Markets and what impact thats hag having on the private side . You have to have really great resources, a scalable Business Model and many of the private Companies Just arent ready to be in the market. Its vetting out the real strong, survivable players from the weak ones. Emily it certainly seems like amazon is just so far head of everyone else. We think its the first inning of a nineinning ballgame. Hybrid clouds are being built around the world. The data rules that Different Countries demand different ways in different parts of the world and thats something were helping our derls companies do. We announced a large win for our Telecommunications Provider in the Pacific Region which allowed them to, their customers to take advantage of all the different clouds, whether the alibaba, amazon, or googles cloud. Thats a very important part of the world going forward. Emily thats net aps george kurian. Thank you very much for joining us on the show. Thank you. Emily thermal fisher will continue to beef up its suite of testing and other services. The deal expected to close early next year. The shares rose almost 14 on the hope that the deal with go through. Coming up, his take on the trending topics in controversy. That is next. Mark i am mark crumpton. You are watching bloomberg west. President obama made history friday in japan. He became the first sitting american president to visit hiroshima, where the u. S. Dropped the first atomic bomb in 1945. The president said the bombing shows that mankind has means to destroy itself. President obama we come to ponder a terrible force unleashed in the not so distant past. We come to mourn the dead, including over 100,000 japanese men, women, and children. Thousands of koreans, a dozen americans held prisoner. Mark it is estimated the hiroshima blast killed 140,000 people. The president met with those who bore witness to the bombing. Survivors praised mr. Obama for, as one said, touching peoples hearts. Without apologizing u. S. Action in world war ii, the president said the hiroshima bombing demonstrated that mankind does possess the means to destroy itself. Japans Prime Minister shinzo abe says he will decide this summer whether to go ahead with the planned increase in the sales tax. In the past he said the tax hike would be delayed only if there was a major earthquake or a huge corporate collapse. At the g7 meeting, abe warned the Global Economy faces a significant risk of another crisis. Russian president Vladimir Putin is criticizing western policy towards moscow during a press conference in athens with greek Prime Minister alexis tsipras. President putin described a u. S. Missile Defense System in romania as a threat to russian security, telling reporters of course it is a threat to us. It can easily be modified to have an aggressive capability. The Olympic Committee says that athletes from the 2012 games have failed doping retests. The ioc keeps doping samples for 10 years. The government is out with a forecast for the atlantic hurricane season. There is a 45 chance it will be normal. Last year was slightly below average with 11 named storms including hurricane joaquin, which killed 33 sailors. The new season begins tuesday and ends on november 30. Memorial day weekend flyers say security lines are moving faster than expected. Bombsniffing dogs are being used at busier airports to speed up lines. From bloomberg World Headquarters in new york city, i am mark crumpton. Emily facebook has concluded there is no evidence of bias against conservative stories in its trending topics unit, but questions over its power in media persist. Facebook maintains trending topics are determined by algorithms, but humans make the algorithms and certain decisions in the process. Joining me to discuss, one of those humans, jonathan koren, a former Facebook Software engineer who worked on the algorithmic system for the trending news section. He joins us from beijing. With me in the studio is mark milian. Thank you so much for joining us. What exactly was your role in the trending topics group . Jonathan i worked on the algorithmic personalized ranking. For those who have not been following this completely, people are kind of in the middle of a threelayer sandwich. There is the algorithmic portion that determines what kinds of topics are trending and people go through that list and decide, yes, this is one we want to potentially show to people. The third layer was my layer, which would say that of the things people had marked as yes, these are things facebook would potentially show to the audience, i would then choose what would be the top five or top 10 whatever that you would actually see listed on the site. Emily so a human would make the final decision . Jonathan the ultimate decision, what i actually saw, was by a computer. If you look at this, you would have thousands of things detected and then a human would cut that down to a few hundred or so that could potentially be shown and the algorithm i worked on would actually show the top five, top 10. Emily first of all, did you ever feel there was bias against any topics, specifically conservative news . Jonathan no, i never saw anything like that. There certainly isnt a conservative penalty in the algorithmic ranking, there was never anything like that. We talked about having a mix of topics, such as we wanted more hard news topics, sports topics, entertainment news, things like that, where you didnt want to have it just be constantly we didnt want it like the wall street journal but we also didnt want it to be a People Magazine type thing. We wanted a mi