>> live from three in san francisco, welcome to "bloomberg west," were recover innovation, technology, and the future of business. u.s. and u.k. investigators are using high-tech tools in the search for james foley's killer, the american journalist executed in iraq or the east london accent and his hood are being analyzed in hopes of getting an identity to the person in the video and the video of the beheading is being scrapped for metadata and much more than we will discuss. burning mange to

begins today as legions of silicon valley employees make their way to the nevada desert. the event officially begins on monday, but the controversy has already started with complaints that the tech elite are dramatically upping the luxurious nest of their accommodations. this year's camps reportedly include air-conditioning and you -- world-class chefs, costing $25,000 a person. tom hanks is the latest celebrity to be involved with a app that comes from his nostalgia for typewriters. it makes the characteristic typewriters on when you type on the ipad and is number one in the productivity app app store. the the hunt is on for islamic extremist who brutally murdered american journalist james foley here the killer inch -- and the task with not be easy by cloaking himself in black clothing, leaving only his eyes and the bridge of his nose

visible. without a face, officials in the u.s. and u.k. are using modern technology, along with old-fashioned police work, to analyze the british accent in the video. for more, want to bring in cory johnson. also with us is a professor in the department of computer science and engineering at michigan state, known as the researcher able to identify one of the boston marathon bombers using facial recognition technology here it and we have our chief washington correspondent peter cook with us. i know you have been diving into the story, peter. what tools are available to researchers, and how useful will they be? >> i have been talking with former and current members of the intelligence and law enforcement communities as do exactly what they are looking for. bottom line, it is a difficult challenge, but they have some clues. they will be looking at everything from the shadows in the background on that videotape to even the style of the cameraman, because i could be

distinctive in and of itself. first and foremost, they will have technicians going over the video itself and looking for metadata, anything that might provide a timestamp or a location on the equipment used to shoot it and upload it. they will also look at production. the production style of the entire video. it was shot on a panoramic, very unusual. been seen before, and shot in broad daylight with the desert background, open and. that is unusual because there was not any fear that they might be hit by an airstrike. int suggests perhaps it was syria and they thought they were unsafe territory. they had the video, and they will focus on the suspect himself, the images, the little we can see of him safe -- of his face. professor jane knows about facial recognition. >> professor, you can see the eyes and the bridge of the nose,

but you cannot see the eyebrows. how much information is what is , and what does that provide? what can facial recognition problems, you want to match the image to a very large database of one million individuals. it will be a very difficult problem. but if we know who the suspect might be or have a short list of possible suspects, than it is possible to at least rule out some of the suspects. ofis not a useful amount information, but in this instance, provisional information about the face is minimal. as peter pointed out, sometimes the fusion of many sources of information is really helpful in making an identification of the suspect. one thing i would like to suggest is to make use of the forensic artist to draw a composite of the suspect.

the forensic artists often utilize other information about the suspect like the height, weight, and ethnicity, age, and that can render a good impression. this could possibly help against the database. test -- cansic eye you really see that much information in the eye? >> the eyes have fairly distinct information. at least for a well-known personality. if they just showed you the eyes of a well-known personality, it is often possible to recognize. looking at the capability of recognition, you look at the sketch artist. every morning in the newspaper you say cartoon of some famous personality, and just a few strokes, whether it is the nose, eyes, or years, it can reveal a

lot of information about the person of interest. >> professor, i have heard in my conversations with both former and current intelligence folks who have looked at this video, one thing you will not get out match. is a retinal the image is not close enough to the camera to be able to see carefully enough the retina, and that would have been something that would have been very advantageous to investigators. does not look like it is an option here. >> that is correct. i do not think you can characterize it by the written of thet rather the iris eye. to capture the retina, you have to shine a bright source of light. it is really the iris of the eye which is not really ethical. if that was visible, it would be possible to do an id. all this assumes that the

suspect's iris or face image or resides on a government database or social media database. >> if it is not in a database already, how do you find a pattern or find a match? wonder -- obviously, technology has its limits, but there are so many different avenues to pursue, as you imagine, from simply the location, the way the video was shot, metadata, whether cell phones were on in the area. this is the kind of data that the nsa and britain's intelligence agency collects. did the killer make a mistake by showing too much? bold, the fact it was in daylight. they left some telltale signs. executioner had worn sunglasses? would that make it that much more difficult for the analyst? they did leave a lot out there, but this will still be a

difficult challenge. your suggestion about the nsa and the surveillance question -- if they can get the date stamped and the location, then they can go back and look at the issue of what communication devices were in the area at that time. it looked like an isolated area. that may not be as difficult as it sounds. killing daniel pearl's in pakistan all those years ago, there have been hundreds, perhaps thousands, of people by terrorists way in the middle east. i wonder of the propagation of these videos on the internet has led to a bigger problem that washington finally realizes they will have to confront? killing has this changed this debate in washington and changed the tone in washington. all you had to do was watch defense secretary chuck hagel yesterday talk about the imminent threat isis now poses to america, not language we were necessarily hearing before the death of james foley.

this has changed the debate. the other thing i have heard from the intelligence community is that this was a video destined, designed specifically for the u.s. audience, the english-speaking audience, and that is different from a lot of these videos in the past. >> shocking and tragic, it is. peter cook in washington, and professor jain of michigan state, thank you both. deafening accounts of users who posted pictures related to the killing of james foley this week. extremists are moving to another lesser-known social network. we discuss the dark social net, next. ♪

>> welcome back to "bloomberg west." islamic state militant group continues to wage war in northern iraq, they have been

pushing ahead with their social media campaign. twitter has upped its efforts to block isis-related accounts. earlier this week, they said it would suspend ending -- any accounts related to the death of james foley could the militant group has now moved on to a community-run decentralized social network that spreads extremists content to what is it and is it part of the larger darknet of the web? joining me is a researcher at the center for the analysis of social media. thank you for joining us. pora and who uses it? >> it is a decentralized network of computers. basically, it is kind of an untraceable and anonymous social media network. it is part of a larger group of services and platforms that

allow people to communicate andymously on the internet on the darknet. it is important that if it goes is it is allowing -- it harder for security services to understand what they are doing weird at the same time, we should regard this as a kind of eight part victory, because when off ofroups are forced the more public platforms like twitter, facebook, youtube, and so on, it reduces the contact they have with the public. therefore, it reduces their propaganda reach. really, this is a victory for them that they have been forced into this network. however, having said that, whether it is through things like diaspora or other things like the dark net or virtual , whatevertworks technology is being used, it makes it much, much harder for

us to understand and know what they are saying. >> right. still, we did speak with diaspora. they posted about this saying that they are trying to take this stuff down but they cannot because it is a completely decentralized network. there is no central server. i cannot manipulate or remove content from the network. that may be the reason it attracted activists to their network. i question is -- who else is on there? who are they reaching? what are other people on the darknet doing? at it,ing more broadly there is a certain culture surrounding these sites, surrounding these kinds of services that we can examine. on the darknet, in general, it has everything from people selling and buying drugs, child ,er in agra fee -- pornography

and political dissidents often from countries like egypt where they might be afraid to talk openly about liberal democracy and secular values. there is a huge range of communities that use these kinds of platforms. you mentioned that it is decentralized and is difficult to control content on diaspora, in fact, impossible. that is the case on all these virtual networks for the content cannot be controlled by the people who created the technologies. that is really important to understand to having invented these technologies and put these tools in place, the content cannot be controlled. >> how many people are using ?hese networks, this darknet tens of millions of people? hundreds of millions?

>> estimating who uses the darknet and how many people is extremely difficult. one way to look at it is at the amount of money going to online drug websites which makes up a significant lurch portion, although not all and not the majority. of dollarss billions .oving for cocaine alone it is externally difficult to tell who is using it and where. but its use is significant and is growing in the light of these revelations and in the light of increased concern about cryptography in these groups, be they terrorists or the craddick reformers in difficult states. >> all right, the rising internet underworld, fascinating. usnks so much for joining from london. do you have a hard time distinguishing fact from fiction on social media?

facebook is trying to help you out by tagging some posts as satire. find out why, next. you can watch us on your phone, tablet, bloomberg.com, apple tv, and amazon fire tv. ♪

>> i am emily chang, and this is "bloomberg west." a new study reveals that babies are stupid, and the world health organization has confirmed that the world death rate is still 100%. hmm? of course these are not real headlines, but when the onion posted just posted satirical articles like these on facebook, some users got confused. facebook places the word "satire " in front of periodicals in the

related article box in your newsfeed now. what does this reveal about the way we read news on social media? cory johnson is with us, and a journalism director is joining us from boston. cory is shaking his head here. i mean, is it part of opening satirical articles and not knowing and discovering that this must be a joke? you know what "the onion" is and i do, but not everyone knows what it is a they are trying to clear up for the large universe of people who do not quite know what they're getting into, you know, what they are actually seeing her just the other day i noticed a story on the onion site on a parity of buzz feed, the actor, was some sort of byern day nostradamus embedding messages into his movies. some people on twitter and

facebook thought that was a completely real phenomenon. it is understandable that his book would want to try and improve the arians by letting improve thenot -- experience by letting their users not feel quite so stupid. quite it is not. it is completely ridiculous. the point of satire is to make fun of people who cannot think. i think this is a horrible thing . labeling satire? >> if you do not get the label anywhere else, why would you get it on facebook? >> google has actually labeled onion news stories in google news as satire for a number of years. on the web you see a complete loss of context. if you read "new york times" before the web can along, you knew what the content was. on the web, everything is a series of url's that exist on set everything else. facebook, it is even more

jumbled. your best friend's baby pictures are right next to terrible news in the middle east next to some funny picture of a cat. >> but people just need to think. think, you know, adam sandler is nostradamus? nostradamus is not even nostradamus. the point of understanding things at putting it into context is what your brain is supposed to do and what your experience as a human being is supposed to allow you to do. >> i would at least note that they have said many times that the key part of an onion story is the headline. they come up with the headline first and then write the story .ased on that so if you see the headline, maybe you just skip over the satire tag. >> as few, should we be concerned that facebook has the power to do this?

we have been having a discussion about his book and twitter and youtube removing content related to extremists. obviously a complete different story, but it speaks to the power of these social networks that are now ubiquitous. >> absolutely. there is a tension between being a publisher and being a platform. a lot of folks would love it if twitter and facebook decided they would be open platform and would not interfere with content. every time you do something in they showdirection, tension 30's c tension on this issue. twitter and facebook are trying to make sure their users have a good experience. i a user feels tricked something or feel they were not given what they were expected by something, they can use that against facebook or against twitter and use that as a reason to not go back. the folks producing the content just want to get it straight to the users and the intermediaries

want to moderate that experience in some sort of way. >> there was a moment when kim jong-un was named one of the sexiest man alive by the onion. s show that it was taken seriously. linecluded the wonderful about kim jong-un, dictator killer of his own people, saying with his devastatingly handsome round face and boyish charm, he is a heartthrob. i mean, i think that people who do not get satire -- that is one of the great joys of satire. here is my real hope -- that facebook is doing this as satire for people that do not get satire. >> facebook says this is just a small test. they received feedback that people wanting something like

this. >> if this were april 1, we would not believe it. >> cory johnson and joshuabenton, thank you. next, we will be talking about burning man. ♪ . .

x you are watching bloomberg west. gathering burning in is that kickoff and monday. the weeklong attempt as been a big draw. the tech community has also brought its tech dollars for things like private jets, suxurious air-conditioned yurt and rvs, even world-class chefs. of tech moneylux

changing the burning man experience for better or for worse? joining us as brian doherty, who is attended the event the last the author of the book "this is burning man." cory johnson is still with us. as someone who has been to burning man for two decades, -- for people who are burners, what is so special about it? is the place we you tend to meet people celebrating creativity. feeling good about themselves. free to express themselves in ways that maybe they are not free to express themselves in day-to-day life. it's a place where everyone is really happy. and everyone is really amazed, because everyone around them are building amazing pieces of , that you would never see in a museum. they are dressed in a flash your color for way. they are putting on shows with

spontaneously and staged. people are having fun and feeling free, and it is a great time. people are willing to pay a lot to go, and put themselves through a lot of trouble to go. it is held in this alkali salt flat, the black rock desert in nevada. the temperature can easily get above 100 degrees during the day. he can get below freezing at night. and these wind dust storms are very common. they might not denver shelter you have built. people feel very attached to it. i struggle a lot to be there. to why the tech thing bothers some people. they feel if you helicopter yourself to mount everest, have you really done mount everest? if you are not suffering at burning man, maybe you are not really doing it right. >> i thought it jumped the shark 10 years ago. shows what i know. i'm number when the editor of time magazine was flying out from new york to attend burning man, i wondered if it was a

mormon -- a moment that already past. i caught a documentary called "park -- a burning man story." i really didn't know. i don't really get the connection between technology people and burning man. technology executives. it's not just the tech workers, it's the ceo. >> this is been going on since at least 1996. when the event only had 4000 people, in the mid-90's. wired magazine put it on the cover. it's just a matter of them arising from the same culture. burning man to gain -- began in san francisco. this culture of people into underground art and expression, there was overlapping personalities. the tech people caught on to an early. love it.ned to a lot of them got superrich between 1996 and now.

and now they are roughing it. but they are still there, they are still contribute. they are helping fund to some of the amazing art. burner who you are a feels like your neighborhood is being gentrified, i don't begin should ruin your good time that someone who you don't even know is living in an air-conditioned trailer and paying people to serve them food. that shouldn't ruin your ability to appreciate the event. it's as great as it ever was. >> and adjusting piece from the " about theimes line being drawn between the tech elite and everything else. does it feel that way? does it feel like there is a division at burning man? >> if you are just there, if you are someone who bought a ticket, you wouldn't have anyway of knowing that anyone you see -- ifing the open playa you walk by their camp, the wall of rvs, whatever.

you just walk by it. the average person going would have no reason to know there is tons of tech money, except when they are seeing the cool things the tech money helped fund. >> are people upset about it? it sounds like they are. >> they are more upset about it because they read about it. media sort of fees on these things. a lot of people have this idea that it should be a challenging experience. it should test you. you should be self-reliant instead of spending money to have other people take care of you. that's cool, if that's the we want to do burning man, that's great. but it don't see why you think peoplethe way others should have to do it. >> what is the drug of choice at burning man? >> officially, if you asked the , thereers or the police

is no more illegal drug use out there than anywhere else. >> there's also no more sand than there is anywhere else. >> is really like electronic dancers at culture. your psychedelics are probably using -- being used out there on a higher percentage. that to thetant is experience of earning men for most people? >> there is no way of knowing. even as a reporting, not everyone will talk about it. druggy, vibe that feels but it is a strange looking and happy place. no one knows the answers your question. one of the things you mentioned is that the tech community is also helping to fund things like the artwork. how involved are some of these ceos that we know of in contributing to this event and

try to make it better or ensures longevity? >> one things that the higher-ups a googled it was contributed a bunch of free community bikes. planned, art projects starting next week, there is supposed to be a giant mobile glowing brain, with nuance flashing. flashing. a mobile tesla coil, a dance dome. in the age of kickstarter, the minions of the tech world who ,ave money to spend on things get to fund things in a less correlated way. it's not so much that they're writing a check for $1 million, but lots of little bits of tech money make every thing out there possible. even though you buy a ticket to be there, most of the art that is there is completely self-funded by the people who make it. some of it is incredibly elaborate. some of it cost in the high six

or even seven figures now. a burning man without the money of the wealthy funding into it would be a far less colorful and less adjusting burning them. >> i think the art aspect is under discussed. they talk about the art. as we go around the bay area, i see people getting their cars festooned it and starting to build sculptures. >> people talk about the feelings and the experiences. if i could stay in a condition geared -- an air-conditioned yurt. brian doherty, thanks so much. have a great time there. well, you have heard about outsourcing. but what about the impact? how tech companies are expanding the digital economy to some of the most impoverished

areas of the world, next on "bloomberg west." ♪

>> i'm emily chang, and this is bloomberg west. it's called impact sourcing, and it is very different from outsourcing. instead of sending digital work to big shops in india, impact sourcing is a unique model that brings tech jobs to women and youth in impoverished committed his around the world. cory johnson is back with more. >> micro work, they call it. in 2008, andtarted some of the biggest tech companies are using this. main -- thename name meen?

>> it's the root word for same in english. >> we believe the talent is globally distributed. as a shortfall of 1.8 million jobs. ask low income women and youth to work over the internet. down projects into very small units of work, and train people to do things like image tagging from small computer centers. >> you find this project in and the marketre out who might be. talk about the training and how labor-intensive that is great that seems like some of the hardest stuff. >> you would be surprised. young people in places like kenya and uganda, or we have over 800 workers now, they are able to do things like image tagging relatively easily. they have exposure to cell phones. our work involves releasable

things like letting us know which celebrity is an image. for someone in numeral part of uganda is the best kind of work to do. we have had a lot of success training and people from local high schools and universities there. >> i love the expanse and scope of the notion of this. we talk endlessly about unemployment, willoughby and 6% or 6.3%. what kind of statistics are we talking about in africa? >> extremely high rates of unemployment. 60% 80% in some of the communities where we work. people don't understand that that is one of the key drivers of terrorism in the region. >> it seems like an impossible to get around if you are so surrounded by this, particularly a young person without education. have you ever overcome it? >> there are a lot of talented graduates in these communities. we are finding that employing them through the internet is much easier than employing them through traditional means.

build a big factory, in a location like northern uganda -- it would be really difficult. but with fiber-optic connectivity, we can set up an internet center inside shipping containers. we have over 100 people working. we get around a lot of the ever structural problems. -- infrastructure problems. >> what kind of work do you see that will be perfect for this? >> online work is expected to get about $5 million by 2018. we are doing work that includes things like image tagging, we , wee content for websites are able to write product disruptions for big e-commerce sites. >> give me an example of image tagging? ouretty images is one of biggest client, and we help them tag images in the database. they need to assign labels region these images, so that when your reporter -- when you are a reporter looking for an image, you can find it. >> if i were in you got a come

on a try would know congressional. have use in the shipping containers tagging pictures of rihanna and kim kardashian, and similar celebrities. it was a surreal experience. ex i thought the most depressing story about culture would be labeling satire. >> the social impact of this is enormous. the poverty rates are extremely high, we are talking about countries where the average income is between two and three dollars a day. we have now employed over 6000 people around the world are there able to double their incomes are just two months. after they do this work, they tend to stay out of poverty because they become savvy about ways to do work online. >> fascinating. thanks, it's great to see you. emily? >> i want to look at what is coming up in the top of the hour. we are bring in mark crumpton

from new york. mark, what you guys following today? >> we will examine janet yellen's remarks in wyoming. she suggested she was concerned about slack in the labor market. i will also be joined by bloomberg's columnist. >> we have been continuing to follow the situation in iraq. i know willem marx is there. >> the violence is having an impact on business. marx ms. been -- willem has been taking a look at how real estate deals are effective. >> margaret and in new york, bottom line, coming up. move over kim kardashian, and other celebrity is out with a nap. .- an app

weeks by my tom hanks gets into the app world, next on "bloomberg west." ♪

>> welcome back to "bloomberg west." i'm emily chang. when you type in your ipad, do you miss typewriters? or the sound of typewriter makes? there is an app for that. the free ipad app from tom hanks that shot to the top of the ipad charts. mills, me is ed cofounder of the company that help tom hanks designed that app. >> were about 10 to 20 people that worked on this project. it was exciting to be on the

phone with tom hanks and here is input. -- here is input. >> what did he say? to give something to his fans that love to typewriters. he wanted to bring back the sound of creativity. it wasn't about typing on your phone hearing a click, but actually hear the symphony of the typewriter as it passed, and bring that to life. >> the symphony of the typewriter, that's quite a metaphor. he himself is a typewriter enthusiast. 20 people, that sounds like a lot. it seems so simple. doingorld peace. people -- what were all of these people doing? programminge people, but at the testing people, we get the 3-d animators. it was a fun process. >> have seen kim kardashian's videogame become a big hit.

our celebrity sponsored apps the big -- the next big thing? >> we work closely with a lot of celebrities. we are trying to get to that space where you get to social and viral success that tom did by between to his friend. way tosort of a fun bring an app to the public. >> how long the been working on this? >> normal projects are about six months. layour offices located in a -- in la. any other celebrities you would like to work with? >> there is a big list. the way they work in hollywood is, when it is in the app store, you can talk about it. >> so a lot of celebrities are currently working on apps that we don't know. and he had -- any hints?

>> that's monday's segment. >> [laughter] what you see in terms of trends? it's surprising to me that a n app as simple as this could be such a great hit. >> have 9 million developers on the apple developer network. they are all trying to find their space. we felt this passion that some of the has -- that somebody has. passion andnd his bring it to the app store? there's been tremendous outpourings of gratitude from his fans about bringing this to life. >> will remain involved -- will he remain involved? >> he owns like to enter typewriters. 200 typewriters. i think he is pretty passionate about us may be doing an update.

>> when will it come for the iphone? >> if i could have a dollar for rated asked that -- >> i would be wealthy. we just have to see if we can work it out. it's a great thing for the end-user. >> ed mills, talking about a new app. thanks so much. bwest is time for the byte. it's a friday, it better be good. >> how about this -- 8. average american attention span last year was eight seconds. in 2000, it was 12 seconds. that puts the average american in second place behind goldfish. goldfish have an average attention span of nine seconds,

which is not changed in the last 13 years. if people can think about , maybeng for 12 seconds they realize it is a joke. eight seconds, they don't get it. >> obviously, you have to wonder how much smart phones and ipads have had to do with this. obviously, it enables our attention span to be shorter. >> is a serious issue. i was reading a study today that talked about how short attention spans lead to poor ability to to evend poor ability see things as well and visually understand information. that leads to a dumber populace. and i have to admit that i read the abstract, i didn't read the full study itself or it. i don't have the attention span. >> if your attention span is short, and you're tired of watching "bloomberg west," don't worry, it's over. have a wonderful friday, stay

tuned to bloom or television for more news throughout the day. ♪

>> i'm mark crumpton. this is "bottom line." the intersection of business and economics with a mainstream perspective. today, janet yellen says too many americans are still out of work. then, analysis of dr. yellen's remarks from former pimco ceo. we will great this summer's movies box office and look ahead to the fall. to our viewers here in the united states, and to those of you joining us from around the world, welcome.